Search found 248 matches

by RAchip
Sun May 20, 2018 11:14 am
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 30
Views: 2352

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: 9
Views: 776

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: 4819

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: 5960

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: 5960

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: 5960

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: 5960

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: 16784

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: 1902

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: 9050

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: 4643

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: 2748

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: 2748

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: 6970

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: 6970

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: 5599

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: 5599

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: 3098

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: 90
Views: 10264

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: 90
Views: 10264

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: 4832

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: 1041

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: 7165

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: 7165

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: 47
Views: 8117

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: 34408

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: 34408

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: 34408

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: 34408

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: 34408

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: 34408

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: 1578

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: 6958

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: 6502

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: 2639

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...
by RAchip
Wed Jan 31, 2018 12:11 pm
Forum: Investing - Theory, News & General
Topic: Living on Dividends and Interest
Replies: 58
Views: 8106

Re: Living on Dividends and Interest

"If a given company had two classes of stock identical in all ways except for the fact that one paid a dividend and one did not, you'd end up with an equivalent amount pre-tax at the end of the day because the non-dividend stock should have more share appreciation equal to the amount of the dividend...
by RAchip
Wed Jan 31, 2018 11:04 am
Forum: Investing - Theory, News & General
Topic: Living on Dividends and Interest
Replies: 58
Views: 8106

Re: Living on Dividends and Interest

What would be correct or wrong about living on the dividends and interest of your portfolio if you were able to do so with a 30% surplus or more? For this exercise, consuming capital by selling shares/individual bonds/cd's would be prohibited. I'd be curious as to what this group thinks about it. T...
by RAchip
Mon Jan 29, 2018 3:13 pm
Forum: Investing - Theory, News & General
Topic: If you're really rich you're probably not an index-fundi Boglehead
Replies: 61
Views: 11215

Re: If you're really rich you're probably not an index-fundi Boglehead

"Why would they need more than 200 million dollars in liquid assets?" Because if you are a billionaire you own a plane (or planes) many residences and have lots of staff and all of that produces a crazy cash burn. I think you can put people with over $100mm in a different category. They have so much...
by RAchip
Mon Jan 29, 2018 11:16 am
Forum: Personal Finance (Not Investing)
Topic: $100k+ Credit Card Spend Per Year: What card offers the best return?
Replies: 44
Views: 4855

Re: $100k+ Credit Card Spend Per Year: What card offers the best return?

In addition to all the other comments, you must spend $50k on "Merchandise Purchases." I would bet this does not include paying your contractor.
by RAchip
Sat Jan 27, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: Starting to feel like the late 1990s?
Replies: 145
Views: 13152

Re: Starting to feel like the late 1990s?

The charts are very misleading. Going from 5 to 10 is exactly the same as going from 20 to 40.
by RAchip
Sat Jan 27, 2018 3:18 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Rising Rates Increase Worries
Replies: 86
Views: 13496

Re: Larry Swedroe: Rising Rates Increase Worries

"30 year Treasuries currently offer a yield of 2.85%"

I would be worried. The Vanguard prime MMF is yielding about 1.45% and rising rapidly. Who would tie up money for 30 years now at 2.85% when interest paid for fully liquid ultra short term is 1.45% and is not locked in? It makes no sense to me.
by RAchip
Thu Jan 25, 2018 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: High Yield Savings Account Recommendations?
Replies: 48
Views: 4236

Re: High Yield Savings Account Recommendations?

If you have a meaningful amount of money I would just put it in the vanguard prime mmf. Why? :confused Because I think the best place to hold a large amount of cash and get a decent return is one of the top mmf's in the world, particularly if you have cash that significantly exceeds the FDIC insura...
by RAchip
Tue Jan 23, 2018 3:39 pm
Forum: Investing - Theory, News & General
Topic: Vanguard CEO - "4-4.5% Market Returns Over The Next Decade"
Replies: 35
Views: 5368

Re: Vanguard CEO - "4-4.5% Market Returns Over The Next Decade"

This just proves that even the "experts" have no clue. The gains they said would take 5 year happened in 9 months.
by RAchip
Tue Jan 23, 2018 3:28 pm
Forum: Investing - Theory, News & General
Topic: Bond Portfolio for High Net Worth Individuals - Different Rules?
Replies: 67
Views: 7528

Re: Bond Portfolio for High Net Worth Individuals - Different Rules?

Where is the line that makes you an HNWI?

I am coming around to the view that bonds are mostly a scam at this point. MMF are getting close to 1.5% and rising. Keep some needed cash in a mmf and longer term money in an s&p 500 fund. very simple. But I am no expert.
by RAchip
Tue Jan 23, 2018 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: High Yield Savings Account Recommendations?
Replies: 48
Views: 4236

Re: High Yield Savings Account Recommendations?

If you have a meaningful amount of money I would just put it in the vanguard prime mmf.
by RAchip
Sun Jan 21, 2018 4:24 pm
Forum: Investing - Theory, News & General
Topic: Fear of dying with too much money?
Replies: 137
Views: 8764

Re: Fear of dying with too much money?

"There is an underlying assumption here, faulty in my opinion, that NOT spending at least 4% is foolishly depriving yourself of additional happiness." I actually made that quote, not RAchip) I think it depends on how much money you have and how old you are. If you have $25mm+ and are 50+, it seems ...
by RAchip
Sun Jan 21, 2018 2:17 pm
Forum: Investing - Theory, News & General
Topic: Fear of dying with too much money?
Replies: 137
Views: 8764

Re: Fear of dying with too much money?

"There is an underlying assumption here, faulty in my opinion, that NOT spending at least 4% is foolishly depriving yourself of additional happiness." I actually made that quote, not RAchip) I think it depends on how much money you have and how old you are. If you have $25mm+ and are 50+, it seems ...
by RAchip
Sun Jan 21, 2018 12:07 pm
Forum: Investing - Theory, News & General
Topic: Fear of dying with too much money?
Replies: 137
Views: 8764

Re: Fear of dying with too much money?

"There is an underlying assumption here, faulty in my opinion, that NOT spending at least 4% is foolishly depriving yourself of additional happiness." I think it depends on how much money you have and how old you are. If you have $25mm+ and are 50+, it seems to me that you can be more aggressive in ...
by RAchip
Sun Jan 21, 2018 12:00 pm
Forum: Investing - Theory, News & General
Topic: Fear of dying with too much money?
Replies: 137
Views: 8764

Re: Fear of dying with too much money?

If you have significantly more than the estate tax exemption, this is a concern. I am disappointed that Trump didn't follow through with his promise to eliminate the estate tax. The things the lawyers want you to do to avoid estate taxes are not really that attractive. They involve giving up control...