Search found 226 matches

by 9-5 Suited
Thu Aug 16, 2018 10:50 am
Forum: Investing - Help with Personal Investments
Topic: Octogenarian father in law's idea of balance: AAPL + CASH
Replies: 35
Views: 3249

Re: Octogenarian father in law's idea of balance: AAPL + CASH

Seems like a solution without a problem. The guy is in his 80's with a net worth of about six million bucks. The AAPL is only 10% of his net worth. If it crashed and burned to nothing, he could sell a property and get millions of dollars of cash in his hand. Why not just let it be? Moving from Apple...
by 9-5 Suited
Fri Aug 10, 2018 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage....risk?
Replies: 14
Views: 1072

Re: Paying off mortgage....risk?

This may be an eye-roll generating response, but I am not a fan of any strategy that relies on welching on legitimate debt as the payoff. I get that it’s possible and legal depending on your state, but I just don’t like it. So I would plan my life as if that were not an option and manage my risk acc...
by 9-5 Suited
Fri Aug 10, 2018 12:33 pm
Forum: Investing - Theory, News & General
Topic: The Bigger Story: Fidelity Expense Ratios
Replies: 91
Views: 8312

Re: The Bigger Story: Fidelity Expense Ratios

I believe pretty strongly in rewarding Vanguard as much as I can for being the reason behind these changes, even at Fidelity. I think it’s good for consumers to reward the right behaviors and structures, not just run to absolute lowest fees. Fidelity makes clear in their comms that they do this in o...
by 9-5 Suited
Thu Jul 19, 2018 9:33 am
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 78
Views: 5472

Re: Why Take Risk on Equity Side?

Using Portfolio Visualizer, you can see (for the one dataset of returns from 1970 mind you) that there's an issue of the assets not mixing quite as well in terms of risk-adjusted return. 50% TSM/50% Int. Treasuries: 9.90% CAGR | 0.66 Sharpe Ratio | 21% Max Drawdown 50% TSM/50% HY Corp Bonds: 10.15% ...
by 9-5 Suited
Thu Jul 19, 2018 7:54 am
Forum: Investing - Help with Personal Investments
Topic: High Crypto Allocation
Replies: 37
Views: 3071

Re: High Crypto Allocation

Reminds me of the idiotic platitudes my broke relatives say before going to the casino. "Go big or go home baby!!" "Put it on black and let it ride!" If you believe in something enough to have 5% of your portfolio in it, why would that imply you should have any more than 5% of your portfolio in it? ...
by 9-5 Suited
Thu Jul 19, 2018 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Reevaluating mortgage payoff strategy
Replies: 63
Views: 6052

Re: Reevaluating mortgage payoff strategy

I have remarkably similar situation down to age, location, portfolio size, and mortgage characteristics (though at 3.5% mine is a little more expensive). I have found that with no other debt, a manageable mortgage, and a strong income, I have a preference for liquid money. At least to a certain exte...
by 9-5 Suited
Mon Jul 16, 2018 1:39 pm
Forum: Personal Consumer Issues
Topic: Why own a bed?
Replies: 140
Views: 9721

Re: Why own a bed?

Elevating the bed gives more floor space to store boxes of lentils and packaged ramen.

If you like sleeping on the floor then do that, but don’t do it to save money unless you’re on the verge of bankruptcy. I mean, come on!!
by 9-5 Suited
Sun Jul 15, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: A different take on retirement income: time segmentation
Replies: 179
Views: 12169

Re: A different take on retirement income: time segmentation

After reading twice, I’m still not sure how this isn’t just mental accounting. Why wouldn’t a standard asset allocation approach that takes account of the individual’s need, willingness, and ability for risk yield the same result? I can pick my stock/bond/cash allocation to ensure enough FI to meet ...
by 9-5 Suited
Sun Jul 15, 2018 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: want to improve returns by 1%/year on a portfolio
Replies: 6
Views: 844

Re: want to improve returns by 1%/year on a portfolio

(1) What will she do if stocks decline by 20-40% over the next few years? Remember that the average returns quoted on stocks don’t imply the market goes up neatly by that amount on a consistent basis. She is invested heavily in stocks and could easily have a large portfolio DECLINE in 7 years. Does ...
by 9-5 Suited
Sat Jul 14, 2018 7:38 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 206
Views: 15041

Re: Why is leveraging property good but leveraging stocks bad?

Very efficient - a post that neatly answers its own question :sharebeer Margin calls are a huge risk with a volatile asset like stocks, and of course not everyone has the iron constitution to see through the worst of times. The leverage on the home is also risky, but avoiding disaster is more manage...
by 9-5 Suited
Fri Jul 13, 2018 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Dave Ramsey made me laugh today
Replies: 63
Views: 6794

Re: Dave Ramsey made me laugh today

Obviously in considering the source, Dave has a very religious objection to debt as a principle. Taking him at his word, he never uses debt in his business or personal life and advises all others to do the same. He always rejects callers requests for his approval to take out business loans. So it sh...
by 9-5 Suited
Tue Jul 10, 2018 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Where do you keep your Emergency Fund?
Replies: 50
Views: 5641

Re: Where do you keep your Emergency Fund?

It's a very liberating thing to realize that an 'emergency fund' doesn't really exist except as the outcome of a mental accounting process. What everyone has is (1) an asset allocation that includes all of their assets and (2) a certain need for liquidity to account for running their day-to-day life...
by 9-5 Suited
Sun Jul 08, 2018 12:10 pm
Forum: Investing - Theory, News & General
Topic: Girls and investing
Replies: 115
Views: 5789

Re: Girls and investing

A princess book where the sleeping beauty can only be saved by Prince Charming leaving his high cost brokerage and purchasing shares of VTSAX would be pretty awesome :) I would think the same lessons that work for young children should apply regardless of gender. If the child is interested, then gre...
by 9-5 Suited
Fri Jul 06, 2018 10:47 pm
Forum: Investing - Theory, News & General
Topic: Active Management Justification
Replies: 33
Views: 2014

Re: Active Management Justification

These posts make me more angry than they probably should. There’s no way the salesman doesn’t know this is a BS argument that is purely in his own interest. Get a job you can be proud of man, jeez.

Wow one fund beat the index and you can even show it on a chart! Eat that old man Bogle.
by 9-5 Suited
Fri Jul 06, 2018 2:28 pm
Forum: Investing - Theory, News & General
Topic: Comparing bonds with different maturities
Replies: 6
Views: 522

Re: Comparing bonds with different maturities

I would normally assume the market is efficient. Thanks for the great context Grabiner. It was actually your common posts on comparing loan rates to equivalent duration fixed income investments that raised this 'what if' question for me. My takeaway from your (and others) notes is that in that situ...
by 9-5 Suited
Fri Jul 06, 2018 8:16 am
Forum: Investing - Help with Personal Investments
Topic: Can you help me figure out how much emergency fund $ I REALLY need?
Replies: 38
Views: 2997

Re: Can you help me figure out how much emergency fund $ I REALLY need?

I would say that if you are confident and comfortable with only 10k in your emergency fund, then you are OK. You give valid reasons for your personal circumstances. Me personally, i chose to invest aggressively (100% stocks) and have a rather larger emergency fund. I choose to invest aggressively a...
by 9-5 Suited
Thu Jul 05, 2018 8:02 pm
Forum: Investing - Theory, News & General
Topic: Comparing bonds with different maturities
Replies: 6
Views: 522

Comparing bonds with different maturities

What considerations do you all give to the relationship between bond yields and maturities when deciding on fixed income investments? An easy example might be a 10 year bond yielding 3.00% vs. a 5 year bond yielding 2.99%. Seemingly very few retail investors would prefer the 10 year bond risk at tho...
by 9-5 Suited
Thu Jul 05, 2018 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: paying off mortgage while I have high income?
Replies: 11
Views: 1964

Re: paying off mortgage while I have high income?

Anything wrong with this analysis? Nope, I'd definitely take a 4%+ return risk-free and not feel bad about it. I know there are some folks who really don't like this heuristic, but in this case it seems clear as day that you would never choose to borrow money at that rate to invest in a taxable acc...
by 9-5 Suited
Thu Jul 05, 2018 7:25 pm
Forum: Personal Consumer Issues
Topic: How to tip
Replies: 87
Views: 5623

Re: How to tip

Nicolas wrote:
Wed Jul 04, 2018 5:32 pm
15% pretax. But if terrible service -- nothing.
If the waitress is pretty and smiles at me, a little bit more.
Love the honesty :) The data on the topic suggest this is true, but most people don't admit it.
by 9-5 Suited
Thu Jul 05, 2018 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: How to "retire" in your 30's article
Replies: 110
Views: 14867

Re: How to "retire" in your 30's article

I think this demonstrates the differences between the FI and the RE element of FIRE. Seems pretty clear the his family is Financially Independent in that they are frugal enough and have saved enough to live their life without working. The article sounds like they live a bit Spartan for my taste in o...
by 9-5 Suited
Sun Jul 01, 2018 6:07 pm
Forum: Investing - Theory, News & General
Topic: Do Advisers Add $$$ Value?
Replies: 71
Views: 5695

Re: Do Advisers Add $$$ Value?

I find it generally fascinating that this industry has been able to normalize an ongoing percentage fee for advice. Think of all the professionals who advise or help us on a regular basis and how absolutely, utterly absurd it would be if one of them requested a never ending percentage of your financ...
by 9-5 Suited
Sun Jul 01, 2018 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Debt to asset ratios
Replies: 14
Views: 885

Re: Debt to asset ratios

I am 32 and the ratio is 30%, all of which is my home mortgage. I tend to use a slightly different version of the figure which is total assets / net worth (another way of thinking about leverage ratio). That number is about 1.42. I find that a more “actionable” number because it tells me how sensiti...
by 9-5 Suited
Sun Jul 01, 2018 9:50 am
Forum: Personal Consumer Issues
Topic: Airbnb - cleaning fee, service fee, occupancy fee....???
Replies: 81
Views: 6766

Re: Airbnb - cleaning fee, service fee, occupancy fee....???

I recall a few years ago StubHub A/B tested all-in pricing vs. teaser + extra fee pricing on the final landing page for their event tickets. This reminds me a lot of that. As much as consumers say they want transparency in pricing, the bait and switch strategies create lower price perception and dri...
by 9-5 Suited
Thu Jun 28, 2018 8:04 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey against index funds?
Replies: 57
Views: 5869

Re: Dave Ramsey against index funds?

I listen to Dave regularly because I think he’s an entertaining guy and they do a good job running a call-in based show. He’s also a really smart businessman/entrepreneur so I enjoy when he talks about that stuff as well. But as far as investing ... well those calls I “hate listen” :) His advice is ...
by 9-5 Suited
Wed Jun 27, 2018 12:37 pm
Forum: Investing - Theory, News & General
Topic: Are we just way over complicating this?
Replies: 113
Views: 7335

Re: Are we just way over complicating this?

There are basically a handful of never-ending debates that are introduced constantly for entertaining banter. Because the questions have no actual verifiable answer, the debates shall continue :) Tilting to small and value International exposure Mortgage payoff vs. investing How to structure an emer...
by 9-5 Suited
Wed Jun 20, 2018 10:21 am
Forum: Investing - Theory, News & General
Topic: Is the Dow Jones Industrial Average a useful metric?
Replies: 28
Views: 1578

Re: Is the Dow Jones Industrial Average a useful metric?

The Dow is a historical anacronism. But the long term correlation to the SP500 is 0.9557, according to this article: https://www.marketwatch.com/story/the-dow-and-the-sp-500-havent-been-this-disconnected-since-2003-2017-07-06 So, while its use is frustrating, the Dow is a good proxy for the market ...
by 9-5 Suited
Mon Jun 18, 2018 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Shorting Amazon
Replies: 44
Views: 4537

Re: Shorting Amazon

There are probably forums other than Bogleheads that will give you more detailed thoughts on how to go about this. 90% of the people reading this post rolled their eyes and said "boy, this won't work out well." Even starting on Reddit in r/investing would be a good option. I don't bother gambling on...
by 9-5 Suited
Wed Jun 13, 2018 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 504
Views: 109003

Re: Anyone regret paying off mortgage early?

The quantity and length of mortgage payoff threads is causing me to consider this the best strategy: Meditate on the subject for an hour, make a choice, and go for it. It's an endless loop of debate because the outcome can't be known, only the potential risks and rewards can be. This will cause a lo...
by 9-5 Suited
Tue Jun 12, 2018 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Three fund portfolio in 401K vs taxable
Replies: 1
Views: 198

Re: Three fund portfolio in 401K vs taxable

The only "change" would be that traditional advice suggests treating your whole portfolio mix as one whole entity and placing investments in the most tax-efficient location. That tends to mean put all your fixed income in the IRA and stocks in taxable. The reason for that is most fixed income is tax...
by 9-5 Suited
Mon Jun 04, 2018 8:50 pm
Forum: Investing - Theory, News & General
Topic: To be or not to be complex, that is the question
Replies: 146
Views: 12343

Re: To be or not to be complex, that is the question

https://www.gsb.stanford.edu/insights/research-how-fear-missing-out-makes-investors-risk-blind Completely agree and that’s an interesting article. Seems logical to assess wealth on a relative scale. People who make $30K in the US usually aren’t giddy about being in the top 1% of global wage earners...
by 9-5 Suited
Mon Jun 04, 2018 12:26 pm
Forum: Investing - Theory, News & General
Topic: To be or not to be complex, that is the question
Replies: 146
Views: 12343

Re: To be or not to be complex, that is the question

FOMO (fear of missing out) is a major driver of complexity. I know that I've fought against that demon many times. When you hear enough people calling out the risks or benefits of a particular choice, you start to wonder what if they are right? What would be the consequences? The natural inclination...
by 9-5 Suited
Fri Jun 01, 2018 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Why have a savings account at all?
Replies: 153
Views: 11131

Re: Why have a savings account at all?

True, although you're paying income tax every year on the interest accrued by your savings account... That's a good call since the bond fund would be bought in tax-advantaged and the savings account money moved to taxable stock. I just get really lazy at tax time and like to have as few sale transa...
by 9-5 Suited
Fri Jun 01, 2018 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Why have a savings account at all?
Replies: 153
Views: 11131

Re: Why have a savings account at all?

I’ve been planning on ditching my savings account for the same reasons. It’s mostly just mental accounting to have an “emergency fund”. That said, I do kind of like the simplicity of being able to withdraw the money without triggering a taxable event. The difference in yield between a high yield sav...
by 9-5 Suited
Mon May 28, 2018 9:26 pm
Forum: Investing - Theory, News & General
Topic: Can anyone recommend Any Social Responsible fund/s?
Replies: 17
Views: 1386

Re: Can anyone recommend Any Social Responsible fund/s?

Probably need to build your own mutual fund with individual stocks if you are really serious about this. Otherwise you will naturally end up outsourcing the morality to a mutual fund company, and it is guaranteed you will disagree with some of their choices. Or you could opt to invest in real estate...
by 9-5 Suited
Sat May 26, 2018 11:43 am
Forum: Investing - Theory, News & General
Topic: Rebalancing Slice-'N-Dice Equities: Isn’t That Buying Low & Selling High?
Replies: 8
Views: 715

Re: Rebalancing Slice-'N-Dice Equities: Isn’t That Buying Low & Selling High?

A couple thoughts: - The rebalancing happens when asset class performance differs substantially from one another, but you could still be rebalancing from a loser into a worse loser - The short-term performance difference that triggered the rebalance isn’t guaranteed to revert in the future. So you c...
by 9-5 Suited
Sat May 26, 2018 7:11 am
Forum: Investing - Theory, News & General
Topic: Contango and backwardation
Replies: 1
Views: 409

Re: Contango and backwardation

Khan Academy actually has great videos on these subjects. Google ‘Khan Academy contango’ and a few will come to the top.
by 9-5 Suited
Fri May 25, 2018 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 45
Views: 4844

Re: Do I pay towards my mortgage or invest?

I wouldn't borrow to invest, but I would definitely hold off on paying down my mortgage if (1) I wasn't currently maxing out my tax advantaged space (i.e., tax-deferred compounding potential not wasted) OR (2) if my interest rate was low enough that I thought there was a better than decent chance t...
by 9-5 Suited
Thu May 24, 2018 3:00 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey Retirement Calculator
Replies: 14
Views: 1754

Re: Dave Ramsey Retirement Calculator

1) Everything works out fine 2) I follow his advice blindly and end up woefully unprepared for retirement 3) I follow his advice and discover the flaws of the later steps, therefore having me question the validity of the whole process from step 1 I think it's #3 where there's actually a good number...
by 9-5 Suited
Thu May 24, 2018 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 45
Views: 4844

Re: Do I pay towards my mortgage or invest?

Well, I am not the OP, and I have never done anything like that with as small a sum as $10K, but with much greater amounts I have: taken out HELOCs to upgrade my residence, done cash out refinances to make down payments on rental properties, and used the proceeds from other cash out refinances to i...
by 9-5 Suited
Thu May 24, 2018 2:23 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey Retirement Calculator
Replies: 14
Views: 1754

Re: Dave Ramsey Retirement Calculator

It's just that everything he does seems to be misleading on the high side...high growth rates, high withdrawal rates, high risk portfolio. My favorite Ramsey quote is "if I'm half wrong you'll be fine!" It's just that if he's half wrong and you earn 6% instead of 12% your portfolio will be 1/3 - 1/...
by 9-5 Suited
Thu May 17, 2018 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 45
Views: 4844

Re: Do I pay towards my mortgage or invest?

I still disagree. The frictional costs are not strictly monetary. it's primarily time & hassle. For example, last time I took out a mortgage I spent more than 10hrs gathering documents, preparing P&L statements for a tiny side business, signing paperwork. I had a similar experience refinancing a st...
by 9-5 Suited
Thu May 17, 2018 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 45
Views: 4844

Re: Do I pay towards my mortgage or invest?

I still disagree. The frictional costs are not strictly monetary. it's primarily time & hassle. For example, last time I took out a mortgage I spent more than 10hrs gathering documents, preparing P&L statements for a tiny side business, signing paperwork. I had a similar experience refinancing a st...
by 9-5 Suited
Thu May 17, 2018 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 45
Views: 4844

Re: Do I pay towards my mortgage or invest?

Anyone who has ever applied for a HELOC, a mortgage or even a credit card understands this. A lot of people lean on this to justify not paying down debt because it doesn't feel as good as leveraging into stocks. But the transaction costs to take out a $10K loan are simply not that high. Of course t...
by 9-5 Suited
Thu May 17, 2018 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Re-Balancing in Tax-Advantaged Accounts
Replies: 4
Views: 375

Re: Portfolio Re-Balancing in Tax-Advantaged Accounts

Your analysis looks spot on to me. Selling stocks to buy bonds in any of those tax advantaged accounts is fine since you'll avoid triggering any taxes that would occur if selling from a non-retirement account. I think any difference between the 401k, tIRA, Roth, etc. is likely to be very minimal. Wh...
by 9-5 Suited
Thu May 17, 2018 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: Favorite Passively Managed Funds
Replies: 4
Views: 468

Re: Favorite Passively Managed Funds

As long as the funds have similar expense ratios and track similar indices and the Vanguard funds, any major family should be OK. Based on some general themes in Boglehead portfolios, I would think the following would be of interest: Total Stock, Total International, 500 Index REIT Index Small Cap, ...
by 9-5 Suited
Thu May 17, 2018 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 45
Views: 4844

Re: Do I pay towards my mortgage or invest?

Hi everyone, I got a good tax refund this year - a little over $10k. I have a mortgage of $480k @ 3.875% (30 yr fixed). Here's one way you may have already (accidentally) answered this question for yourself. At any point since you get your mortgage, you likely had the option to borrow $10K against ...
by 9-5 Suited
Thu May 17, 2018 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: Friend says "Stock market will crash, invest in silver" - thoughts?
Replies: 127
Views: 8922

Re: Friend says "Stock market will crash, invest in silver" - thoughts?

Just in case this hasn't been posted yet. I need to remember to come back to this post in March and October of next year. That's a highly specific prediction!

viewtopic.php?t=222796
by 9-5 Suited
Wed May 16, 2018 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Better to be in debt to yourself or others?
Replies: 25
Views: 1764

Re: Better to be in debt to yourself or others?

This is something I've wondered as well. It sure seems to make sense to pay yourself interest rather than pay another lender, and the savings in interests rates feel like they stack -- if you are paying yourself 5 percent interest and avoiding paying 6 percent interest, isn't that an effective retu...
by 9-5 Suited
Tue May 15, 2018 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Bringing individual assets into joint account
Replies: 27
Views: 1251

Re: Bringing individual assets into joint account

Keep in mind retirement accounts cannot ever be joint, so not very many couples ever completely merge assets. Also income in retirement from pensions and Social Security is clearly designated to a primary account holder and beneficiary, spousal, etc., holder. The person who mentioned intentions reg...
by 9-5 Suited
Tue May 15, 2018 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Bringing individual assets into joint account
Replies: 27
Views: 1251

Bringing individual assets into joint account

Seeking wisdom from folks who may have been down this path before. I have $130K in a taxable account that was (and still is) held as separate property. All other assets/debts are joint. My wife and I (both 32) have a joint net worth of $590K not counting this individual money I brought into the marr...