Search found 359 matches

by 9-5 Suited
Sat Aug 24, 2019 4:31 pm
Forum: Personal Investments
Topic: Age 92 Dad Wants to Boost stocks
Replies: 66
Views: 10125

Re: Age 92 Dad Wants to Boost stocks

My father, 92 years young, told me today that he wants to raise his allocation from 30% stocks to 50%. After talking to him again about the dangers of market timing, he's willing to moderate his stance a bit. For someone his age and with an adequate portfolio to meet his needs, do you think 50-50 i...
by 9-5 Suited
Sat Aug 24, 2019 4:10 pm
Forum: Personal Investments
Topic: Does anyone use TIPS mutual funds for 100% of their LMP allocation?
Replies: 14
Views: 723

Re: Does anyone use TIPS mutual funds for 100% of their LMP allocation?

How can a mutual fund act as "liability matching"? What happens when the capital value of the bonds goes down? I thought the whole idea of LMP was to say "I need $X at Y time, so I'll invest in an asset guaranteed to return $X at Y time." $X can be in either real or nominal terms depending on the na...
by 9-5 Suited
Fri Aug 23, 2019 10:54 pm
Forum: Personal Investments
Topic: Allocation to tax deferred vs taxable?
Replies: 15
Views: 947

Re: Allocation to tax deferred vs taxable?

Not an answer to your question, but congrats on your unbelievable success. I love seeing examples of entrepreneurship that casts aside the image of a 20 something in his garage. How did you make the leap into your current business venture?
by 9-5 Suited
Fri Aug 23, 2019 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: How to help an employee who is in debt and requesting a loan
Replies: 72
Views: 3960

Re: How to help an employee who is in debt and requesting a loan

One other option I have seen is setting up a credit limit of sorts. You say “we will loan you $1,000, but no more loans whatsoever until that one is paid back.” And that becomes kind of a standing offer that limits your risk. I don’t really like the idea personally, but it seemed better than most id...
by 9-5 Suited
Fri Aug 23, 2019 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: How to help an employee who is in debt and requesting a loan
Replies: 72
Views: 3960

Re: How to help an employee who is in debt and requesting a loan

You guys are very kind. I would never give a loan to any friend, employee, or family member. It so rarely seems to be a one time event, as you are experiencing. They need to figure this out on their own for the long-term. Getting bail outs from a dependent relationship helps put out the fire of the ...
by 9-5 Suited
Fri Aug 23, 2019 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: Getting equity out of home
Replies: 17
Views: 1298

Re: Getting equity out of home

HELOCs and reverse mortgages, as noted above, are technically the non-selling options, but they aren’t cheap. I see a bunch of HELOCs hovering around 5-6% interest. That kinda sucks as a casual method of extracting your equity unless you truly needed to do it. Reverse mortgages are also a much worse...
by 9-5 Suited
Fri Aug 23, 2019 4:06 pm
Forum: Investing - Theory, News & General
Topic: Bond appreciation is impossible without market timing.
Replies: 94
Views: 4310

Re: Bond appreciation is impossible without market timing.

This thread is pretty tedious, but is it seriously being argued that bonds require market timing in order to achieve growth? That’s self-evidently untrue and any debate on the subject is sure to lead to nowhere just like arguing about flat earth or some such thing. It is a good point though that rea...
by 9-5 Suited
Fri Aug 23, 2019 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Should I refinance mortgage and heloc to 1 ln.
Replies: 2
Views: 199

Re: Should I refinance mortgage and heloc to 1 ln.

Refinancing two loans into one typically makes sense if you can reduce your weighted average interest rate across the portfolio of debts being consolidated. You’d have to check with the lending institutions to see if this is possible and what rate they would quote you. I don’t know. It also (if it’s...
by 9-5 Suited
Fri Aug 23, 2019 1:50 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 11852
Views: 2026682

Re: U.S. stocks in free fall

willthrill81 wrote:
Thu Aug 22, 2019 10:44 am
*awesome image of reasons to sell and 257% gain*
What a fantastic picture for all the doomsday comments on social media :)
by 9-5 Suited
Fri Aug 23, 2019 1:25 pm
Forum: Personal Investments
Topic: Trying to help a relative "see the light"
Replies: 36
Views: 2105

Re: Trying to help a relative "see the light"

Some people really do need advice from a financial professional. Just keep that in mind. Definitely not this guy and preferably one that charges hourly or has a low (under 50 basis points) fee and does good professional work aligned to the client’s philosophy. But I think there can be too much bias...
by 9-5 Suited
Fri Aug 23, 2019 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Do you categorize additional contribution to debt repay as saving?
Replies: 96
Views: 3292

Re: Do you categorize additional contribution to debt repay as saving?

The reason many people consider principle payments as "savings" is because that money is not lost but is buying an asset that could be sold and recovered. As compared to groceries that you eat, you are consuming the value to zero. At the risk of being pedantic on this point, it's a slightly differe...
by 9-5 Suited
Fri Aug 23, 2019 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Do you categorize additional contribution to debt repay as saving?
Replies: 96
Views: 3292

Re: Do you categorize additional contribution to debt repay as saving?

Yes this is saving as you are increasing your net worth. Again, no, you are not increasing your net worth. If you have $1,000 in your checking account and you use that to pay $1,000 toward your mortgage principal, your net worth remains unchanged. You reduced your assets by $1,000 but you simultane...
by 9-5 Suited
Fri Aug 23, 2019 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Do you categorize additional contribution to debt repay as saving?
Replies: 96
Views: 3292

Re: Do you categorize additional contribution to debt repay as saving?

Nope, I don't agree with that. Paying back debt is simply paying back debt. If one had saved, they wouldn't have had to take out the debt. (Ignoring the use of debt to get CC rewards, or having a mortgage when one could pay it off but invests instead) Are some arguing it is savings because they wou...
by 9-5 Suited
Fri Aug 23, 2019 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Do you categorize additional contribution to debt repay as saving?
Replies: 96
Views: 3292

Re: Do you categorize additional contribution to debt repay as saving?

I have never said there is ANOTHER expense by paying back a debt. I'm not sure why you're bringing that up. You spent $1000 on dinner. You either pay cash or borrow money to buy it. It's not savings if you put it on a CC to pay it off at a later time. You simply spent $1000 either way. OK so we agr...
by 9-5 Suited
Fri Aug 23, 2019 10:55 am
Forum: Personal Investments
Topic: Trying to help a relative "see the light"
Replies: 36
Views: 2105

Re: Trying to help a relative "see the light"

Some people really do need advice from a financial professional. Just keep that in mind. Definitely not this guy and preferably one that charges hourly or has a low (under 50 basis points) fee and does good professional work aligned to the client’s philosophy. But I think there can be too much bias...
by 9-5 Suited
Fri Aug 23, 2019 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Do you categorize additional contribution to debt repay as saving?
Replies: 96
Views: 3292

Re: Do you categorize additional contribution to debt repay as saving?

So, if you pay cash for the $1000 dinner that night, it's an expense... but, if you put it on a CC and pay it off by the end of the month, it's savings??? Got it..... No you have this completely wrong. It is a $1,000 expense that night regardless of how you finance it. But then when you pay back th...
by 9-5 Suited
Fri Aug 23, 2019 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Do you categorize additional contribution to debt repay as saving?
Replies: 96
Views: 3292

Re: Do you categorize additional contribution to debt repay as saving?

So, I can take out a bunch of loans and push my CC balances to the limit, and as long as I pay some extra on 'em each month I'm "saving"? Well, that's good to know. Let's party! :happy If you purchase something but don't charge it or take out a loan, did you save money making the purchase? Paying d...
by 9-5 Suited
Fri Aug 23, 2019 8:45 am
Forum: Personal Investments
Topic: Trying to help a relative "see the light"
Replies: 36
Views: 2105

Re: Trying to help a relative "see the light"

Some people really do need advice from a financial professional. Just keep that in mind. Definitely not this guy and preferably one that charges hourly or has a low (under 50 basis points) fee and does good professional work aligned to the client’s philosophy. But I think there can be too much bias ...
by 9-5 Suited
Thu Aug 22, 2019 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: Do you categorize additional contribution to debt repay as saving?
Replies: 96
Views: 3292

Re: Do you categorize additional contribution to debt repay as saving?

You have money sitting in your checking account. Spending that money reduces your net worth. Saving that money maintains your net worth (immediate net impact is $0). Paying down liabilities like mortgage principal is saving. Hard to dispute this IMO.
by 9-5 Suited
Thu Aug 22, 2019 8:22 pm
Forum: Personal Investments
Topic: Do I Need an Emergency Fund And How Much
Replies: 36
Views: 2776

Re: Do I Need an Emergency Fund And How Much

Don’t need a dedicated emergency fund. Just need to be able to access a reasonable amount of liquid money in an emergency situation. If you have enough to experience a loss and still pull out cash to meet emergency needs, then a stock index fund in a taxable account is an “emergency fund”. The “emer...
by 9-5 Suited
Thu Aug 22, 2019 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Anybody else enjoy sitting around and doing little in retirement?
Replies: 64
Views: 6942

Re: Anybody else enjoy sitting around and doing little in retirement?

I once took a week off in between jobs and thought I’d lose my mind. Zero chance this lifestyle would suit me, but I see nothing wrong with it suiting you!
by 9-5 Suited
Wed Aug 21, 2019 11:32 am
Forum: Personal Investments
Topic: Cash Investment Question.
Replies: 22
Views: 1055

Re: Cash Investment Question.

I don't think you'll go too wrong either way, meaning your financial situation will be pretty similar regardless of choice. The total bond market fund 30-day yield is 2.32% with a 6 year duration. So the 2.75% for three years is a fine rate. The CD doesn't have the opportunity for increase in price ...
by 9-5 Suited
Wed Aug 21, 2019 11:13 am
Forum: Investing - Theory, News & General
Topic: Why investment complexity is appealing and simplicity isn't
Replies: 65
Views: 3407

Re: Why investment complexity is appealing and simplicity isn't

It's never quite so easy to define the right action based only on a simplicity vs. complexity scale. There has to be an underlying intellectual basis for the simplicity. For example, Dave Ramsey gets brought up a lot on the forum. When he says "no one should ever use a credit card under any circumst...
by 9-5 Suited
Mon Aug 19, 2019 12:02 pm
Forum: Personal Investments
Topic: When Did You Ease Up On Saving Aggressively?
Replies: 170
Views: 12737

Re: When Did You Ease Up On Saving Aggressively?

Easing up on savings means you need more savings. Let’s pretend you make $100,000 and are saving $45,000/yr meaning you’re spending $55,000/yr. 25x of $55,000 is $1,375,000. If you decide to cut back your savings to 20% and increase your spending to $80,000/yr 25x is now $2,000,000. Congrats on hav...
by 9-5 Suited
Sun Aug 18, 2019 9:24 am
Forum: Personal Finance (Not Investing)
Topic: How are you finding "no cost" refis?
Replies: 20
Views: 2299

Re: How are you finding "no cost" refis?

We have done one “no cost” refi. Keep in mind it is actually very expensive despite the name. My interest rate was 0.125% higher than it would have been had I paid the closing costs. Just ask the lender what rate they will charge you if they pay the closing costs. They are only 'very expensive' if ...
by 9-5 Suited
Sun Aug 18, 2019 9:20 am
Forum: Investing - Theory, News & General
Topic: Bloomberg: U.S. Weighs Selling 50- and 100-Year Bonds
Replies: 36
Views: 3601

Re: Bloomberg: U.S. Weighs Selling 50- and 100-Year Bonds

As the objective of a treasurer is to source funds as cheaply as possible, with interest rates plunging around the globe it seems to make eminent sense for borrowers to extend maturities if they can. The question for bond index investors/lenders is, if such long term bonds are part of, say, total b...
by 9-5 Suited
Sat Aug 17, 2019 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: How are you finding "no cost" refis?
Replies: 20
Views: 2299

Re: How are you finding "no cost" refis?

We have done one “no cost” refi. Keep in mind it is actually very expensive despite the name. My interest rate was 0.125% higher than it would have been had I paid the closing costs. Just ask the lender what rate they will charge you if they pay the closing costs.
by 9-5 Suited
Fri Aug 16, 2019 8:27 pm
Forum: Investing - Theory, News & General
Topic: Lawsuit suggests MIT allowed Fidelity to pack retirement plans with high-fee funds
Replies: 54
Views: 4460

Re: Lawsuit suggests MIT allowed Fidelity to pack retirement plans with high-fee funds

Yet another reason why I prefer to reward Vanguard with my business even if Fidelity undercuts their ERs by a few basis points. Integrity is hard to come by in the financial industry.
by 9-5 Suited
Thu Aug 15, 2019 1:52 pm
Forum: Investing - Theory, News & General
Topic: Why Zero (or Negative) Interest Rates Could Someday Make Sense
Replies: 92
Views: 6500

Re: Why Zero (or Negative) Interest Rates Could Someday Make Sense

I still don't buy it. Why would I ever invest $100 in a bond for the chance (<100% - from default) that it would mature at $99 (or less) if I could instead hold cash for 100% chance of maturing at $100? Even if there was no default risk, it doesn't make sense to me. Where would you store your stack...
by 9-5 Suited
Wed Aug 14, 2019 3:49 pm
Forum: Personal Investments
Topic: Continue contributing to 401k or pay off debts
Replies: 14
Views: 922

Re: Continue contributing to 401k or pay off debts

Assuming a 25% effective total tax rate on your $265K gross income, you are earning $192,000 net of taxes. I would do the following with that: 1. Invest ~$38,000 to max out your available retirement account contributions (401K, Backdoor Roth IRA) 2. Invest ~$75,000 to pay down debt 3. Live on ~$79,0...
by 9-5 Suited
Tue Aug 13, 2019 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance car as layer of emergency funding?
Replies: 33
Views: 1934

Re: Refinance car as layer of emergency funding?

I’m a bit confused. Cash out refinancing is done on the equity one has in real property. How can you get a cash out refinance on an underwater vehicle? It’s just an unsecured loan at that point and no way will be at a super low prime rate. The MSRP doesn’t matter to the lender, only the market value...
by 9-5 Suited
Mon Aug 12, 2019 10:49 pm
Forum: Personal Consumer Issues
Topic: Breakfast Menu After Retirement
Replies: 73
Views: 9486

Re: Breakfast Menu After Retirement

I want to hear from the Bogleheads who are still eating some childhood favorites like Lucky Charms :)

Far from retirement and far from consistent, but the plurality of my breakfasts are two scrambled eggs with hot sauce and an English muffin.
by 9-5 Suited
Mon Aug 12, 2019 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Are you refinancing now?
Replies: 73
Views: 6745

Re: Are you refinancing now?

BlueCable wrote:
Mon Aug 12, 2019 12:41 pm
Just signed for a 15 year at 2.875% at a state-wide credit union.
Wow, this is fantastic. Exactly the loan terms I'm looking for. Did you have to pay any points to get that rate? What were the closing costs? Would be awesome to know the specific credit union if you'd be willing to share.
by 9-5 Suited
Sun Aug 11, 2019 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a car, does it make sense to use 401k loan instead of an auto loan?
Replies: 37
Views: 2546

Re: Buying a car, does it make sense to use 401k loan instead of an auto loan?

I sense the process of rationalization happening very clearly in this thread whereby a bad idea (taking out a 401K loan to buy a new car) magically becomes a good idea by virtue of a few dubious assumptions about a lack of alternatives. Buying a new car isn’t a better value over the next 15 years th...
by 9-5 Suited
Sun Aug 11, 2019 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Buying a car, does it make sense to use 401k loan instead of an auto loan?
Replies: 37
Views: 2546

Re: Buying a car, does it make sense to use 401k loan instead of an auto loan?

I would challenge a few assumptions if I were in your shoes just to make sure all the options are on the table before taking a 401K loan ... 1. Do you need a $25K car or want a $25K car and would a $15K car meet your need just as well? 2. Do you need a 5 year loan or could you focus enough resources...
by 9-5 Suited
Fri Aug 09, 2019 3:59 pm
Forum: Investing - Theory, News & General
Topic: threshold for paying debt
Replies: 41
Views: 2693

Re: threshold for paying debt

1. That article was a long and repetitive assertion of the obvious fact that leverage works out great when investment returns exceed the cost of borrowing. Nothing new there. It’s just a matter of risk tolerance and one’s ability to tolerate the potentially horrific consequences of things turning ou...
by 9-5 Suited
Thu Aug 08, 2019 9:05 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 110
Views: 6819

Re: First 20% of bonds in long-term Treasuries

This won’t be the most intellectual thing I’ll ever post, but it’s just hard to believe that I’ll reap much meaningful financial gain from locking into a bunch of 2% nominal long term treasuries as a 33 year old. You could have said the same thing in January when long term rates were at 3%. If you ...
by 9-5 Suited
Thu Aug 08, 2019 8:11 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 110
Views: 6819

Re: First 20% of bonds in long-term Treasuries

This won’t be the most intellectual thing I’ll ever post, but it’s just hard to believe that I’ll reap much meaningful financial gain from locking into a bunch of 2% nominal long term treasuries as a 33 year old. You could have said the same thing in January when long term rates were at 3%. If you ...
by 9-5 Suited
Thu Aug 08, 2019 5:35 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 110
Views: 6819

Re: First 20% of bonds in long-term Treasuries

This won’t be the most intellectual thing I’ll ever post, but it’s just hard to believe that I’ll reap much meaningful financial gain from locking into a bunch of 2% nominal long term treasuries as a 33 year old. Without using a backtest (because of the specific bond regime it will cover) what is th...
by 9-5 Suited
Thu Aug 08, 2019 1:26 pm
Forum: Personal Investments
Topic: Shifting from bond buying to debt reduction
Replies: 8
Views: 499

Re: Shifting from bond buying to debt reduction

If we're talking in a taxable account then it makes sense. If you're not maxing pre-tax retirement accounts then the math is different, no? You'd have to account for your tax rate also. Yep, we max out 401K/IRA/HSA so there isn't a tax consideration. The effective outcome would be a reduction in ta...
by 9-5 Suited
Thu Aug 08, 2019 12:26 pm
Forum: Personal Investments
Topic: Shifting from bond buying to debt reduction
Replies: 8
Views: 499

Shifting from bond buying to debt reduction

With the fairly sharp decline in intermediate treasury yields (down to 1.76% as of today), holding bonds while also having a 3.5% mortgage loan feels like a pretty large losing proposition. The negative carry was tolerable when the spread was closer to 50 bps, but now that math looks way less favora...
by 9-5 Suited
Thu Aug 01, 2019 11:43 pm
Forum: Personal Consumer Issues
Topic: luxury vehicle: what income/asset range
Replies: 75
Views: 4564

Re: luxury vehicle: what income/asset range

DesertDiva wrote:
Thu Aug 01, 2019 11:35 pm
And I sincerely hope you enjoy your new purchase :sharebeer
Ha, thanks. Probably a 25% chance I'll end up preaching about how over-rated it is when the 8 years are up ;)
by 9-5 Suited
Thu Aug 01, 2019 11:30 pm
Forum: Personal Consumer Issues
Topic: luxury vehicle: what income/asset range
Replies: 75
Views: 4564

Re: luxury vehicle: what income/asset range

Did I say that there is anything predictive about an individual's situation? No. My point is merely that Toyota is a solid choice. There is no reason to feel socially inferior if one chooses a Toyota over a Lexus. I can afford a luxury car (and have owned them in the past), but there is no one on t...
by 9-5 Suited
Thu Aug 01, 2019 11:11 pm
Forum: Personal Consumer Issues
Topic: luxury vehicle: what income/asset range
Replies: 75
Views: 4564

Re: luxury vehicle: what income/asset range

Get a copy of "Stop Acting Rich and Act Like a Real Millionaire" by Thomas Stanley and read Chapter 7. Spoiler alert: "The Toyota make was found to be number one in market share among both engineers and millionaires in general... engineers are more than twice as likely to drive Toyotas as others in...
by 9-5 Suited
Thu Aug 01, 2019 10:55 pm
Forum: Personal Consumer Issues
Topic: luxury vehicle: what income/asset range
Replies: 75
Views: 4564

Re: luxury vehicle: what income/asset range

I have a slightly different way of thinking about this than % of income or % of net worth. Every year we have an annual spending budget. We can spend that total on whatever we want, but can't spend more than that. So with a car, we take the purchase price (e.g. $40,000) and the expected residual val...
by 9-5 Suited
Tue Jul 30, 2019 12:55 pm
Forum: Personal Investments
Topic: The new 1 fund portfolio
Replies: 57
Views: 8108

Re: The new 1 fund portfolio

Right and wrong isn’t a helpful framework for investing choices... Can we carve out an exception for Variable Annuities inside an IRA? :annoyed I think the full quotation helps solve that one. "Right and wrong isn’t a helpful framework for investing choices like that so long as the person understan...
by 9-5 Suited
Sat Jul 27, 2019 3:28 pm
Forum: Personal Investments
Topic: The new 1 fund portfolio
Replies: 57
Views: 8108

Re: The new 1 fund portfolio

Bonds don't belong in a taxable Brokerage account. So all the people recommending Lifestrategy funds are wrong. Don't do that. I have no confidence in International - thus i use VTI in my taxable brokerage. VTSAX would be my recommendation. Total world would be fine choice as long as you realize in...
by 9-5 Suited
Fri Jul 26, 2019 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Help me convince the board that our company needs a budget!
Replies: 13
Views: 785

Re: Help me convince the board that our company needs a budget!

I don't know how far you'll get with the "what", which is telling them they need a budget. A budget is a tool to solve a set of problems and/or create growth opportunities by more efficiently allocating resources. So you might wait until your wife expresses a mild concern related to one of these are...
by 9-5 Suited
Thu Jul 25, 2019 2:20 pm
Forum: Investing - Theory, News & General
Topic: Risks in holding various funds for 6-month periods
Replies: 14
Views: 805

Re: Risks in holding various funds for 6-month periods

David Jay wrote:
Thu Jul 25, 2019 1:53 pm
A $130 loss on a $10,000 investment looks like a Vanguard index fund ER.
$130 on $10,000 looks more like an Edward Jones management fee to me :)
by 9-5 Suited
Tue Jul 23, 2019 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Off Mortgage Question
Replies: 77
Views: 6566

Re: Paying Off Mortgage Question

Of course if you take more risk you can achieve a higher expected return. That’s like saying what if I skip out on bond investing until my stock portfolio is big enough to buy all the bonds I want in retirement. Well that’s fine if you have the risk tolerance to do it. The big problem here arises fr...