Search found 262 matches

by RAchip
Sat Nov 10, 2018 9:29 pm
Forum: Investing - Theory, News & General
Topic: Whats your number to walk away?
Replies: 301
Views: 45130

Re: Whats your number to walk away?

I am 53. my NW is over $30mm (stocks, bonds, cash and realeastate and no debt) not countining my 401k and an inherited ira which are a few million more. Thats enuf for me. My portfolio is conservative but still produceses about $700k per year in dividends and interest which is enuf for me. plus my p...
by RAchip
Tue Oct 09, 2018 9:51 am
Forum: Investing - Theory, News & General
Topic: “It’s probably wise to sell to the sleeping point.” - Jack Bogle
Replies: 83
Views: 11728

Re: “It’s probably wise to sell to the sleeping point.” - Jack Bogle

It's easier if you have a portfolio of dividend stocks. That way you just say to yourself, who cares about the ups and downs of the market prices. You get paid quarterly (at least) and the amount generally goes up 3-5% every year.
by RAchip
Mon Oct 08, 2018 3:38 pm
Forum: Investing - Theory, News & General
Topic: "Safe" Withdrawal Rate for Early Retirees (or any retiree)
Replies: 226
Views: 19453

Re: "Safe" Withdrawal Rate for Early Retirees (or any retiree)

The unprecedented low interest rates over the last decade are ending. MMF rates are now about 2.2% and rising. With the projected fed rate increases the rest os this year and next year I expect MMF rates to at least get up to 3% so you can certainly pull out 3% for the tome being even if you are ult...
by RAchip
Sun Sep 09, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: 3 fund portfolio with Money Market instead of Bonds
Replies: 26
Views: 2886

Re: 3 fund portfolio with Money Market instead of Bonds

“With money market yields slightly over 2% and short-term bond distributions not significantly different, is it worth taking the that risk?“

I dont think it makes sense. MMF is the way to go. Basically zero risk to principal, 2+% interest and instant liquidity. No brainer.
by RAchip
Sun Sep 09, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: 3 fund portfolio with Money Market instead of Bonds
Replies: 26
Views: 2886

Re: 3 fund portfolio with Money Market instead of Bonds

“With money market yields slightly over 2% and short-term bond distributions not significantly different, is it worth taking the that risk?“

I dont think it makes sense. MMF is the way to go. Basically zero risk to principal, 2+% interest and instant liquidity. No brainer.
by RAchip
Fri Sep 07, 2018 8:47 pm
Forum: Investing - Theory, News & General
Topic: What experts say about "Stay-the-Course"
Replies: 21
Views: 8570

Re: What experts say about "Stay-the-Course"

I can accept that “trading” doeant work but you could have gotten very very rich by just buying faang.
by RAchip
Sun Sep 02, 2018 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Do you have an umbrella policy?
Replies: 278
Views: 30250

Re: Umbrella insurance..who has it? Is it recommended?

If you are uhnw, its more difficult. If you have multiple homes, 10 cars, boats, jet skis and 3+ teenage drivers it becomes a big project to get a 10mm umbrella policy and its expensive I cant get coverage anywhere near my nw.
by RAchip
Sat Aug 11, 2018 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Diversification with cash held in vanguard money market
Replies: 23
Views: 2679

Re: Diversification with cash held in vanguard money market

I think that since interest rates seem to be heading up, keeping fixed income money in The VG prime mm is a good choice. It pays you over 2% and you have near instant liquidity with no meaningful chance of loss of principal. You can get a little higher rate putting the money in a bomd fund but you c...
by RAchip
Fri Aug 03, 2018 9:23 pm
Forum: Investing - Theory, News & General
Topic: Will dividend spending only portfolio last forever ?
Replies: 90
Views: 6250

Re: Will dividend spending only portfolio last forever ?

There are plenty of companies who didnt cut their dividend during the last recession. There are many great companies who are committed to their dividend and committed to growing it. You can greatly reduce the risk that your dividends will be cut by putting together a portfolio of these types of comp...
by RAchip
Thu Jun 28, 2018 8:00 am
Forum: Investing - Help with Personal Investments
Topic: Umbrella Policy: Right amount for $7 mil net worth?
Replies: 76
Views: 11253

Re: Umbrella Policy: Right amount for $7 mil net worth?

First, the person above who mentioned that umbrella insurance is mostly insuring for a truly CATASTROPHIC auto accident (multiple deaths and long term injuries) is correct in my view. So if you don't own a car, you probably don't need it. The thing with umbrella insurance is that $5mm and under is p...
by RAchip
Wed Jun 13, 2018 8:27 am
Forum: Investing - Theory, News & General
Topic: VMMXX (Vanguard Prime MM) risks
Replies: 71
Views: 11402

Re: VMMXX (Vanguard Prime MM) risks

Remarkable to me that folks worry about such things with a Vanguard MMF! If wanted risk, wouldnt be in MMF. We started into the abyss / seen MMF break the buck. Rules gave changed. While Prime is low risk, Federal MM is lower, as has been discussed above. Putting money in the Vanguard PMMF involves...
by RAchip
Mon May 21, 2018 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 4705

Re: Are high dividend stocks advantageous for the 15% tax rate?

“I consider the market to be the US total stock market, though its easy to talk about the SP500 because people are more familiar with it. I would never refer to the DJIA as "the market," and i think reference to it is basically more out of habit and tradition than anything else.” So since you admit ...
by RAchip
Mon May 21, 2018 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 4705

Re: Are high dividend stocks advantageous for the 15% tax rate?

"Either 1) your selection of DGI stocks beats the market, in which case, like i said, you are awesome and can do what many active managers cannot, or 2) your selection of DGI lags the market." What is the "market"? Is it the DJIA? That's just 30 mostly DGI stocks just like I advocate. If you mean th...
by RAchip
Mon May 21, 2018 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 4705

Re: Are high dividend stocks advantageous for the 15% tax rate?

i dont understand why this idea of 25-50 DGI stocks is so popular right now. you are, by definition, selecting companies that are returning more cash to shareholders than the market average through dividends. this means that these companies are on average reinvesting less money into their operation...
by RAchip
Sun May 20, 2018 11:14 am
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 83
Views: 11179

Re: $1,700,000 from family trust...

"OP inherited this money. Why is a joint account suggested by welderwannabe?" I agree. It is VERY important not to co-mingle inherited money. Inherited money is not a marital asset unless you comingle it. You may believe you will be married forever but one never knows. I would put the money in the V...
by RAchip
Fri May 18, 2018 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 4705

Re: Are high dividend stocks advantageous for the 15% tax rate?

"For instance, if you carved out a portion of your portfolio for a set of, say, 25-50 individual dividend paying stocks and used the dividends and occasional sale of these stocks (hopefully long-term-held ones) for income, wouldn't that create an income stream at the low tax rate?" This is my approa...
by RAchip
Wed May 09, 2018 11:55 am
Forum: Personal Finance (Not Investing)
Topic: [Car accident claim exceeds coverage, send to collection agency?]
Replies: 67
Views: 5563

Re: [Car accident claim exceeds coverage, send to collection agency?]

There is no "debt" that can be collected from a negligence liability claim until there is a judgment from a court finding liability and damage. Did the at-fault insurance policy pay the other side an amount in excess of the policy and is trying to collect the difference from its insured? That makes ...
by RAchip
Tue May 08, 2018 4:32 pm
Forum: Investing - Theory, News & General
Topic: How does stock buyback benefit investors?
Replies: 78
Views: 7033

Re: How does stock buyback benefit investors?

The repetitive assertion on this site that you can just sell shares to create your own dividend is seriously misguided in my view. A dividend is a distribution of profits to stockholders. Selling shares is selling shares. These are most certainly not the same. If I sell 5% of my shares I get 5% less...
by RAchip
Tue May 08, 2018 4:19 pm
Forum: Investing - Theory, News & General
Topic: How does stock buyback benefit investors?
Replies: 78
Views: 7033

Re: How does stock buyback benefit investors?

I personally do not like buy-backs. I would rather have the cash dividended to me so I can decide what to do with it. Why would a buy back preclude you from selling shares you've held for 12 months as opposed to a dividend taxed at ordinary income? I think the correct question is: "Why would money ...
by RAchip
Tue May 08, 2018 2:07 pm
Forum: Investing - Theory, News & General
Topic: How does stock buyback benefit investors?
Replies: 78
Views: 7033

Re: How does stock buyback benefit investors?

I personally do not like buy-backs. I would rather have the cash dividended to me so I can decide what to do with it. Why would a buy back preclude you from selling shares you've held for 12 months as opposed to a dividend taxed at ordinary income? I think the correct question is: "Why would money ...
by RAchip
Tue May 08, 2018 12:59 pm
Forum: Investing - Theory, News & General
Topic: How does stock buyback benefit investors?
Replies: 78
Views: 7033

Re: How does stock buyback benefit investors?

"The short answer is that share buybacks increase shareholder/investor value if the buybacks occur at a price below intrisinc value of a share, and they destroy shareholder/investor value if they occur at a price above the intrinsic value of a share." This may be technically correct but is largely i...
by RAchip
Tue May 08, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 168
Views: 18725

Re: What Percentage CASH are you?

I have a considerable percentage of my fixed income assets (more than 50%) currently sitting in Prime MM Fund. Unlike longer term bond funds it has not suffered principal loss in this rising rate environment and hence it has significantly outperformed all Vanguard bond funds YTD. As long as interes...
by RAchip
Sat Apr 21, 2018 2:21 pm
Forum: Investing - Theory, News & General
Topic: Upper Tax Bracket Folks...where to park cash?
Replies: 11
Views: 2205

Re: Upper Tax Bracket Folks...where to park cash?

I keep a good bit of cash in the VG PMMF. I am in the highest tax bracket also (but in a state that is small and has no state specific muni fund). To my eye, the difference in net yield between PMMF and Municipal MMF is relatively small over time. With rates rising pretty quickly, I prefer to just p...
by RAchip
Sat Apr 21, 2018 2:04 pm
Forum: Investing - Theory, News & General
Topic: NYT article: Everyone should hire a financial planner
Replies: 103
Views: 10862

Re: NYT article: Everyone should hire a financial planner

In my opinion the real issue is not the damage you might suffer if you don't seek professional advice. The real issue is the all too great likelihood you will suffer severe financial damage because you sought advice. There are very few areas of life where asking for help is more likely to hurt you ...
by RAchip
Fri Apr 20, 2018 10:55 am
Forum: Investing - Help with Personal Investments
Topic: How much is too much in a Fidelity or VG account?
Replies: 24
Views: 5019

Re: How much is too much in a Fidelity or VG account?

Vanguard sends you a text when there is any transaction on your account. If there were to be any unauthorized transaction you get a txt and can call and stop it.

I wouldn't hesitate to hold any amount of money at Vanguard.
by RAchip
Thu Apr 19, 2018 3:07 pm
Forum: Investing - Theory, News & General
Topic: Goof? Prime MM, "retail," "Admiral," $5 million minimum?
Replies: 20
Views: 3160

Re: Goof? Prime MM, "retail," "Admiral," $5 million minimum?

"But I suppose that if you have $5 million you have to put it someplace, and you aren't going to open twenty different bank accounts to get it all FDIC-insured, so a money market mutual fund might be the obvious choice." Correct. There are people with a lot of money. FDIC insurance is pretty much m...
by RAchip
Thu Apr 19, 2018 11:27 am
Forum: Investing - Theory, News & General
Topic: Goof? Prime MM, "retail," "Admiral," $5 million minimum?
Replies: 20
Views: 3160

Re: Goof? Prime MM, "retail," "Admiral," $5 million minimum?

"But I suppose that if you have $5 million you have to put it someplace, and you aren't going to open twenty different bank accounts to get it all FDIC-insured, so a money market mutual fund might be the obvious choice." Correct. There are people with a lot of money. FDIC insurance is pretty much me...
by RAchip
Tue Apr 17, 2018 1:24 pm
Forum: Investing - Theory, News & General
Topic: Cash instead of bonds?
Replies: 59
Views: 9325

Re: Cash instead of bonds?

"How do you determine what percentage to take from your cash reserves?" Again, I think it depends on your situation. Lets say you need $100k per year to cover expenses and you have a total portfolio of $3mm. So you have $2.8mm in and S&P fund and $200k in a MMF. The dividends from your S&P fund will...
by RAchip
Tue Apr 17, 2018 11:39 am
Forum: Investing - Theory, News & General
Topic: Cash instead of bonds?
Replies: 59
Views: 9325

Re: Cash instead of bonds?

I can see this strategy working fine for most periods, but what if stocks lose money for a decade, like 2000-2009? When do you deplete your cash reserves? When do you replenish them? These are important details that are rarely provided by those espousing this strategy, probably because they often h...
by RAchip
Tue Apr 10, 2018 8:12 pm
Forum: Investing - Theory, News & General
Topic: Retirees: Who's increasing their equities as they age?
Replies: 74
Views: 6611

Re: Retirees: Who's increasing their equities as they age?

Just our 2 cts. DW and I may be bogleheads with an aversion to risk-aversion?? If such a thing exists... DW and I have always been 95+% equities since we started investing, back when we were in our mid to late 30's. 401Ks, trad and Roth IRAs, taxable, didn't matter. Kept 95+% during entire working ...
by RAchip
Tue Apr 10, 2018 1:00 pm
Forum: Investing - Theory, News & General
Topic: Retirees: Who's increasing their equities as they age?
Replies: 74
Views: 6611

Re: Retirees: Who's increasing their equities as they age?

My parents passed away recently (both in their 80's). They were 100% equities (mostly individual stocks) their whole lives up until they died except they built up a little more cash than normal when it became apparent they were getting sick. Through this approach they amassed a large amount of wealth.
by RAchip
Thu Apr 05, 2018 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Second home [buy with retirement funds?]
Replies: 51
Views: 3680

Re: Second home [buy with retirement funds?]

2d homes make life so much more enjoyable for us; we think they are worth every penny.
by RAchip
Mon Apr 02, 2018 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Retire at 55, what's the magic number
Replies: 169
Views: 24477

Re: Retire at 55, what's the magic number

“I think that since the OP is postulating retiring at 55, they wouldn't want to plan on 25x, that will only carry them to age 80, which probably is significantly below their life expectancy.“ How do you figure 25x expenses only gets you to 80? Even if you spend 1/25 of your savings per year you are ...
by RAchip
Sun Apr 01, 2018 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Retire at 55, what's the magic number
Replies: 169
Views: 24477

Re: Retire at 55, what's the magic number

I definitely want to be retired by 55 if not sooner. Im 53 now. Most people would probably say Im UHNW but with a lot of kids (some very young) health care is a big issue no matter how much money you have. I need more clarity on whether I can buy it and how much it will cost b/c I will need it for m...
by RAchip
Thu Mar 29, 2018 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Total return vs dividends
Replies: 54
Views: 6263

Re: Total return vs dividends

Around 2014 I built a portfolio of individual stocks paying dividends at the time of over 3%. The core of the portfolio is MSFT, LMT, INTC, JNJ, MCD, MO, AMGN, LLY, UPS, VZ. My “dividend” portfolio pays me a lot more cash now than when I bought it and the market value of the portfolio is up dramatic...
by RAchip
Tue Mar 13, 2018 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Cash? Company purchased
Replies: 5
Views: 1130

Re: Cash? Company purchased

Vanguard Prime Money Market
by RAchip
Tue Mar 06, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Another "Should I self-insure" for LTC Question
Replies: 119
Views: 8133

Re: Another "Should I self-insure" for LTC Question

I just went through this with my parents. They did not want to be a burden even though they were HNW and bought very high end LTC insurance that paid over $5k per month for care for life including in home care. They both ended up with medical conditions that tapped into it but what we learned is th...
by RAchip
Mon Mar 05, 2018 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Another "Should I self-insure" for LTC Question
Replies: 119
Views: 8133

Re: Another "Should I self-insure" for LTC Question

I just went through this with my parents. They did not want to be a burden even though they were HNW and bought very high end LTC insurance that paid over $5k per month for care for life including in home care. They both ended up with medical conditions that tapped into it but what we learned is tha...
by RAchip
Mon Mar 05, 2018 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: For retirement at 55 what is a good multiplier?
Replies: 65
Views: 12447

Re: For retirement at 55 what is a good multiplier?

GratefulinNC wrote:
Mon Mar 05, 2018 2:55 pm
Maybe y'all are overthinking this.

Just do a 4% per year SWR. You Will be fine of at least the next 30 years.

After that time:
(A) Most likely you either will be dead; or
(B) so out of your mind as not to care.

The fact is most people don't live as long as they think they will.
+1
by RAchip
Sun Mar 04, 2018 11:50 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 37618

Re: What if you only live off dividends?

I mean the AMOUNT of the dividends increases every year. If you put together a $1mm portfolio of quality companies committed to payind AND growing a solid dividend it could easily pay you total dividends of $33,000 per year. In year two of owning that portfolio you can expect to recieve about $35,0...
by RAchip
Sun Mar 04, 2018 7:39 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 37618

Re: What if you only live off dividends?

most years the amount of your dividends goes up by 5% (give or take) every single year. Is this really true? I have meager experience with stock dividends and as far as I remember, the dividend rate did not go up but only went down. And when it went down, it was lot more than 5% I think he means th...
by RAchip
Thu Mar 01, 2018 11:11 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 37618

Re: What if you only live off dividends?

"I mean...you can define it however you want in your head but that has no meaning in the real world, because the two are still equivalent. Getting a dividend and selling off stock = the same exact thing" Again, not everyone agrees with this (I certainly don't). You can never be certain what the mark...
by RAchip
Fri Feb 23, 2018 11:13 pm
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 37618

Re: What if you only live off dividends?

"When a company pays a dividend, the value of the company goes down by that exact amount (think about it, the company gave away a bunch of money so it doesn't have it anymore). So yes, you got $50k in dividends, but your shares are now worth that much less." This is a common misconception [OT commen...
by RAchip
Thu Feb 22, 2018 5:17 pm
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 37618

Re: What if you only live off dividends?

If we are really talking about living off of dividends, we are talking about people with very large stock portfolios. If you have a $10+ million stock portfolio, those people don't sell their stock. Most of those people got very rich by following a simple rule: never sell your stock. My guess is tha...
by RAchip
Wed Feb 21, 2018 10:33 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 37618

Re: What if you only live off dividends?

Living off of dividends is exactly the same as selling off your stocks though. So you could rephrase your question as, "What if you only live off selling off your stocks?" I dont agree. Receiving dividends is not “exactly the same” as selling your stock. Nobody can say for sure what would happen to...
by RAchip
Mon Feb 12, 2018 10:04 pm
Forum: Investing - Theory, News & General
Topic: SWR — Can You Include Real Estate as Part of Your Portfolio
Replies: 24
Views: 1955

SWR — Can You Include Real Estate as Part of Your Portfolio

I assume you dont include the value of your primary residence in your portfolio but what if you have a $1mm home and could easily downsize to a $500k home in the future if needed? Can you include the $500k difference in calculating SWR? How about vacation houses that could be sold or rented later in...
by RAchip
Mon Feb 12, 2018 2:20 pm
Forum: Investing - Theory, News & General
Topic: I think US interest rates could drop.
Replies: 62
Views: 8076

Re: I think US interest rates could drop.

I am in the camp of the OP. It makes no sense that the US 10yr could yield 3+% when the German 10yr yields .75%. If US bonds start yielding well above what the rest of the world’s “safe” bonds pay, the demand for US bonds will increase and driving the price up and yield down. It just makes no sense ...
by RAchip
Wed Jan 31, 2018 10:58 pm
Forum: Investing - Theory, News & General
Topic: Wow: Shiller PE is 34.52
Replies: 52
Views: 7152

Re: Wow: Shiller PE is 34.52

Its simpler to look at dividend yield. It seems unusually low to me. Which means stock prices are unusually high.
by RAchip
Wed Jan 31, 2018 10:41 pm
Forum: Investing - Theory, News & General
Topic: Are dividends really the same as capital gains?
Replies: 18
Views: 2950

Re: Are dividends really the same as capital gains?

The reality is that "the market" does not know how much cash is held by a company on a daily basis. That figure is disclosed quarterly. And nobody knows for sure how "the market" values cash held in a company at any particular time. So, in my view, you know exactly what a dollar dividended to you is...