Search found 538 matches

by 9-5 Suited
Sat May 30, 2020 8:02 pm
Forum: Investing - Theory, News & General
Topic: What Is the Stock Market Even for Anymore?
Replies: 25
Views: 3401

Re: What Is the Stock Market Even for Anymore?

Weird strawman argument. Perhaps one lesson this crisis can reinforce is that we should stop thinking of the stock market as a barometer of national prosperity. Maybe it served that function in the past, but it doesn’t now. Instead, the market has become an emblem and engine of American inequality....
by 9-5 Suited
Wed May 27, 2020 9:02 pm
Forum: Investing - Theory, News & General
Topic: Swedroe’s Bond Advice - no total bond index
Replies: 165
Views: 11556

Re: Swedroe’s Bond Advice - no total bond index

The investor may have OTHER risks (e.g. inflation risk, shortfall risk, etc.), but matching bond duration to investment horizon is an important part of making sure you aren't taking on more risk than you need to and that you are compensated for the risks you DO take. This is the part that terrifies...
by 9-5 Suited
Wed May 27, 2020 8:47 pm
Forum: Personal Investments
Topic: Paying Off/Down Mortgage vs Investing
Replies: 15
Views: 1748

Re: Paying Off/Down Mortgage vs Investing

Since you are taking standard deduction, the 2.625% you are paying, is break-even with a CD yielding 2.625/0.78 = 3.37% for 8 years. It's a decent return, certainly more than what you will be getting from Total Bond Market Index fund. At the same time, it's also a rate that can be reasonably expect...
by 9-5 Suited
Tue May 26, 2020 1:46 pm
Forum: Investing - Theory, News & General
Topic: Swedroe’s Bond Advice - no total bond index
Replies: 165
Views: 11556

Re: Swedroe’s Bond Advice - no total bond index

If I recall, Larry is not a fan of corporate bonds because of their correlation with equity performance and frequent use of call features embedded in the bonds. He also does not like the mortgage-backed securities, I believe because of pre-payment risk and the fact that if rates rise those are long-...
by 9-5 Suited
Mon May 25, 2020 1:19 pm
Forum: Investing - Theory, News & General
Topic: Value of Liquidity
Replies: 12
Views: 742

Value of Liquidity

In threads regarding the merits of paying down debt, one critical element to the decision matrix is liquidity. This has prompted me to think about the extent to which I personally value liquidity and what the limits to that value are. To simplify a hypothetical scenario to get at the philosophy, ass...
by 9-5 Suited
Sun May 24, 2020 8:10 am
Forum: Personal Consumer Issues
Topic: If Jeep has such poor reliability, how come they are everywhere?
Replies: 155
Views: 11479

Re: If Jeep has such poor reliability, how come they are everywhere?

Reliability is valued very highly among the population of Bogleheads. In the general population I am sure other factors, like how cool a car looks or how it handles unusual road conditions, are higher in the decision matrix. There is nothing wrong with you prioritizing things other than reliability ...
by 9-5 Suited
Sat May 23, 2020 10:26 am
Forum: Investing - Theory, News & General
Topic: Ally lowers APR on savings from 1.5% to 1.25%
Replies: 79
Views: 9071

Re: Ally lowers APR on savings from 1.5% to 1.25%

Making extra payments on my 2.9% mortgage feels like raking in the dough now :D
by 9-5 Suited
Sat May 23, 2020 10:21 am
Forum: Investing - Theory, News & General
Topic: Examples of why NOT to hold individual stocks
Replies: 93
Views: 7364

Re: Examples of why NOT to hold individual stocks

I don’t know how compelling additional lists of companies will be here. People who invest in individual stocks typically understand that some companies go bust, so listing off those companies isn’t likely to change their mind. I tend not to concern myself with the investment choices of others unless...
by 9-5 Suited
Fri May 22, 2020 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: CapitalOne Venture would not forgive annual fee
Replies: 32
Views: 1859

Re: CapitalOne Venture would not forgive annual fee

I think it was reasonable for them to charge you, and reasonable for you to cancel. Waiving the annual fee because you aren’t able to use the card how you like would be a nice thing if they saw long term value in your business, but it’s a big investment on their part to do that across a huge cardhol...
by 9-5 Suited
Fri May 22, 2020 5:58 pm
Forum: Personal Investments
Topic: Does Capital one send emails when their interest rate decreases?
Replies: 25
Views: 1090

Re: Does Capital one send emails when their interest rate decreases?

I'm not aware of any banks that notify account holders when interest rates drop. Cap. One recently dropped from 1.5% to 1.3% APY on their Performance Savings account (within the last week or days, I think). Well, they certainly like to notify us when the rate increases. Agree that I have not receiv...
by 9-5 Suited
Sun Apr 12, 2020 9:06 am
Forum: Personal Investments
Topic: Ponzi Scheme?
Replies: 215
Views: 17353

Re: Ponzi Scheme?

Unpopular idea incoming. Remember that money is fungible. So if your parents lose $300K they needed for retirement, they may try to get you and other family members to provide that $300K over time after they lose it all to this scam. That means by implication your money is at risk too if you intend...
by 9-5 Suited
Sun Apr 12, 2020 8:28 am
Forum: Personal Investments
Topic: Ponzi Scheme?
Replies: 215
Views: 17353

Re: Ponzi Scheme?

Unpopular idea incoming. Remember that money is fungible. So if your parents lose $300K they needed for retirement, they may try to get you and other family members to provide that $300K over time after they lose it all to this scam. That means by implication your money is at risk too if you intend ...
by 9-5 Suited
Sat Apr 11, 2020 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Auto financing vs. mortgage rate
Replies: 6
Views: 408

Re: Auto financing vs. mortgage rate

Not sure what car brand you are considering, but DD received .9% for her new Corolla. Broken Man 1999 Thanks for the reminder to shop it around - I was being lazy and just going with my credit union's rate for simplicity :) Although all these rates are so low I grant the interest involved in this e...
by 9-5 Suited
Sat Apr 11, 2020 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Auto financing vs. mortgage rate
Replies: 6
Views: 408

Re: Auto financing vs. mortgage rate

No reasons, I have done the same. But to be clear you're not talking about a lot of money. Like a difference $200 per $10,000 I think over 48 months. The other question is if you have so much liquid dollars why haven't you already put that to the mortgage? On the second part, the liquid dollars are...
by 9-5 Suited
Sat Apr 11, 2020 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Auto financing vs. mortgage rate
Replies: 6
Views: 408

Auto financing vs. mortgage rate

Just want to make sure I'm not missing something beyond what seems obvious here. We have a 2.99% 15 year mortgage that projects to be paid off in 7 years. We're also in the market for a new car and can secure a 1.99% loan for a 48 month term. Is there any reason not to finance as much of the auto pu...
by 9-5 Suited
Sat Apr 11, 2020 8:53 am
Forum: Personal Finance (Not Investing)
Topic: 32 year old couple w/newborn checkup
Replies: 23
Views: 1681

Re: 32 year old couple w/newborn checkup

What do you want out of life? If you keep on going like this, then you may not get it. This won't be a popular advice, but I would try to live off the lower-paid spouse's income and save/invest all the higher-paid spouse's income for many years, then retire early, go backpacking, and post on Bogleh...
by 9-5 Suited
Fri Apr 10, 2020 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: [Government stimulus payments]
Replies: 351
Views: 27203

Re: just got my $1200 stimulus payment

Are there some Bogleheads out there for whom the checks will help you manage through a hardship? So far we just see the (expected, given the site demographic) use cases of vacation funds, savings/investing, and charitable giving. Definitely highlights the inefficiency in the recipient criteria from...
by 9-5 Suited
Fri Apr 10, 2020 9:12 pm
Forum: Investing - Theory, News & General
Topic: Why do investors say stock picking is risky?
Replies: 79
Views: 4277

Re: Why do investors say stock picking is risky?

Investing only 10% of your portfolio in virtually any legitimate investment - so long as it isn't highly leveraged - is not very risky. The question framing set up the answer. Doing it with 90% of your portfolio on the other hand ... well you can read some pretty heartbreaking stories of people who ...
by 9-5 Suited
Fri Apr 10, 2020 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: [Government stimulus payments]
Replies: 351
Views: 27203

Re: just got my $1200 stimulus payment

Are there some Bogleheads out there for whom the checks will help you manage through a hardship? So far we just see the (expected, given the site demographic) use cases of vacation funds, savings/investing, and charitable giving. Definitely highlights the inefficiency in the recipient criteria from ...
by 9-5 Suited
Fri Apr 10, 2020 1:14 pm
Forum: Personal Investments
Topic: How do you define "tilt"?
Replies: 7
Views: 263

Re: How do you define "tilt"?

There are several ways that people express their tilt, which are different degrees of simplification. Percent of Portfolio: This would be something like "10% of portfolio in small cap value." This is a high level simplification, as the fund choice will create different small and value exposure. 10% ...
by 9-5 Suited
Thu Apr 09, 2020 4:32 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 18828
Views: 2631508

Re: U.S. stocks in free fall

Why would I want to be calculating valuations while I'm running for my life? There's a movie "Life of Brian". At the end, there's a song "Always look on the bright side of life." Try it, maybe? Look! If it ends, it ends. We either make it or we don't. Why do we have to be afraid all the time? Many ...
by 9-5 Suited
Wed Apr 08, 2020 9:23 am
Forum: Personal Investments
Topic: Follow Bernstein or Bogle
Replies: 99
Views: 7362

Re: Follow Bernstein or Bogle

One other thing I would definitely give a hard look is your spending. You are a conservative investor and financial worrier, so it should be disconcerting (if I’m reading it correctly) that $95,000 is only 4-6 months of expenses with a paid for home. You could vastly improve you long term financial ...
by 9-5 Suited
Tue Apr 07, 2020 9:57 pm
Forum: Personal Investments
Topic: Diversification
Replies: 40
Views: 2267

Re: Diversification

There isn’t a very compelling rationale to own individual sector funds like you are proposing. You’re being guided too much by past performance. That’s not going to lead to a strong portfolio construction that stands the test of time. Splitting out value and growth also isn’t really necessary. You c...
by 9-5 Suited
Tue Apr 07, 2020 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Does anyone use Goldmoney?
Replies: 33
Views: 2742

Re: Does anyone use Goldmoney?

The value of gold in USD fluctuates considerably. So your checking/savings account that you use to spend money could be down 50% vs. 6 months ago without you spending a dime. That’s not what I want in my liquid spending GC accounts. If you constantly have a certain amount of gold in your portfolio a...
by 9-5 Suited
Mon Apr 06, 2020 10:39 pm
Forum: Investing - Theory, News & General
Topic: What percentage of your paycheck do you invest?
Replies: 268
Views: 16350

Re: What percentage of your paycheck do you invest?

I guess we have found the answer to the age old question "how do you get everyone with a 40%+ savings rate to rush to their keyboard?"
by 9-5 Suited
Sun Apr 05, 2020 10:40 pm
Forum: Personal Investments
Topic: Vanguard Vs Fidelity Index funds
Replies: 29
Views: 1617

Re: Vanguard Vs Fidelity Index funds

My retirement accounts are at Fidelity. I like their user interface and customer service tools better than Vanguard. My taxable account is at Vanguard. Tax efficiency aside, I like keeping my money with a company whose structure and principles are most aligned with my interests. It’s a good idea to ...
by 9-5 Suited
Sun Apr 05, 2020 1:25 pm
Forum: Investing - Theory, News & General
Topic: Your Investment Adviser’s Dirty Secret
Replies: 77
Views: 9618

Re: Your Investment Adviser’s Dirty Secret

It’s not to say that as assets grow there aren’t unique client needs that require more expertise and justify a higher cost. But why not just agree on an annual or hourly fee based on specific services provided? I suppose it is an attempt to try and align interests. The more they make for you, the m...
by 9-5 Suited
Sun Apr 05, 2020 1:08 pm
Forum: Investing - Theory, News & General
Topic: Your Investment Adviser’s Dirty Secret
Replies: 77
Views: 9618

Re: Your Investment Adviser’s Dirty Secret

There is no other professional advice other than financial advice where we would ever remotely consider payment for services in the form of a % of our personal assets. If your doctor, lawyer, accountant, repair man, or any other advice-giving professional said “yeah I’ll help you for 1% of everythi...
by 9-5 Suited
Sun Apr 05, 2020 12:28 pm
Forum: Investing - Theory, News & General
Topic: Stock/Bond Allocation For Those With Investment Property
Replies: 10
Views: 457

Re: Stock/Bond Allocation For Those With Investment Property

If including real estate directly in an AA, it should be part of the equity component. The illiquid nature does mean it’s hard to maintain a fixed %, however. So bear that in mind. If not including in “investment AA” it should still be a consideration on the resulting stock/bond mix you choose becau...
by 9-5 Suited
Sun Apr 05, 2020 12:14 pm
Forum: Investing - Theory, News & General
Topic: Your Investment Adviser’s Dirty Secret
Replies: 77
Views: 9618

Re: Your Investment Adviser’s Dirty Secret

There is no other professional advice other than financial advice where we would ever remotely consider payment for services in the form of a % of our personal assets. If your doctor, lawyer, accountant, repair man, or any other advice-giving professional said “yeah I’ll help you for 1% of everythin...
by 9-5 Suited
Fri Apr 03, 2020 1:23 pm
Forum: Personal Investments
Topic: Move away from Small and Mid-Caps?
Replies: 23
Views: 1671

Re: Move away from Small and Mid-Caps?

I think it’s important to go back to first principles on why you invested in small companies in the first place. The generally accepted rationale is that small companies face unique risks that command a premium in returns. You are observing that risk in action. If you bail on the strategy now, regar...
by 9-5 Suited
Wed Apr 01, 2020 11:08 pm
Forum: Investing - Theory, News & General
Topic: How do famous people invest?
Replies: 22
Views: 1843

Re: How do famous people invest?

I’m guessing in aggregate they invest fairly similarly to the general public, with the exception of probably investing in more “vanity projects” like restaurants, bars, movies, fashion labels, etc.
by 9-5 Suited
Wed Apr 01, 2020 10:47 pm
Forum: Investing - Theory, News & General
Topic: Is Bogleheads suffering a derivatives epidemic?
Replies: 40
Views: 3244

Re: Is Bogleheads suffering a derivatives epidemic?

4 of the 5 threads I read today were started by people have no clue about how they work or the risks. Why do novices here at BH think this is the place to get coaching on Options? Do you think they are wrong? It actually does seem like a decent place to get coaching on them. The worry I see is that...
by 9-5 Suited
Wed Apr 01, 2020 1:35 pm
Forum: Investing - Theory, News & General
Topic: What is your age/AA during this crisis?
Replies: 138
Views: 6317

Re: What is your age/AA during this crisis?

My wife and I are both 45. Our asset allocation was rough 77/23 before and is now around 5% less in equities. I haven’t rebalanced at this stage as I don’t tinker much unless things are looking really out of whack. Our net worth was around $1.1 million a few weeks ago and is now closer to $1 millio...
by 9-5 Suited
Mon Mar 30, 2020 10:12 pm
Forum: Personal Investments
Topic: Another way Edward Jones gets you
Replies: 43
Views: 4644

Re: Another way Edward Jones gets you

Thanks for the insider tip - always good to keep up with the ways EJ positions itself directly behind the customer. As an aside, isn't there a midpoint solution here where you use hourly advisors for you and your wife? Not so impersonal like Vanguard, but actually charging a fair value for services ...
by 9-5 Suited
Mon Mar 30, 2020 9:23 pm
Forum: Personal Consumer Issues
Topic: Tipping in new reality?
Replies: 80
Views: 4659

Re: Tipping in new reality?

I’m very torn on this. I try to be fairly generous as a tipper in general, but with deliveries the reality is that any more than $5 or so on the tip and I genuinely would be priced out of the service and would go pick up the purchase instead. So is it better for the delivery services and drivers if ...
by 9-5 Suited
Mon Mar 30, 2020 9:10 pm
Forum: Investing - Theory, News & General
Topic: Great example of someone who should have never invested in factors
Replies: 119
Views: 8143

Re: Great example of someone who should have never invested in factors

A related arena to SCV is the superior diversification benefits of long-term US Treasuries vs. short- or intermediate term bonds. A small minority of Bogleheads have been making the case for LTTs for several years, largely to ridicule or simply silence. Fast-forward to 2020 and a bear market, and a...
by 9-5 Suited
Mon Mar 30, 2020 11:27 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 18828
Views: 2631508

Re: U.S. stocks in free fall

I love when I visit bogleheads.org main page and the top two threads in the list are "U.S. Stocks in Free Fall" and "U.S. Stocks Continue to Soar" :) Sign of the times.
by 9-5 Suited
Sun Mar 29, 2020 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: how much cash do you keep at home?
Replies: 130
Views: 8596

Re: how much cash do you keep at home?

$350 in a sock drawer, which has come in handy a few times to pay service people, when I need $20 and don't want to stop at an ATM, and most recently when I messed up the timing on my checking account transactions (I try probably too hard to keep as little in there as possible) and a late night $200...
by 9-5 Suited
Sat Mar 28, 2020 8:48 pm
Forum: Personal Investments
Topic: Borrowing to invest in the market
Replies: 33
Views: 1820

Re: Borrowing to invest in the market

Hello, I am thinking of borrowing, to invest in this market! I see my local Credit Union, is offering a rate of 8.25%. Are there better options? What about a balance transfer promo on a credit card? I am renting, so home equity loans are not an option. I have a sneaking suspicion, that this is not ...
by 9-5 Suited
Sat Mar 28, 2020 8:45 pm
Forum: Personal Investments
Topic: Borrowing to invest in the market
Replies: 33
Views: 1820

Re: Borrowing to invest in the market

Hello, I am thinking of borrowing, to invest in this market! I see my local Credit Union, is offering a rate of 8.25%. Are there better options? What about a balance transfer promo on a credit card? I am renting, so home equity loans are not an option. I have a sneaking suspicion, that this is not ...
by 9-5 Suited
Sat Mar 28, 2020 6:28 pm
Forum: Investing - Theory, News & General
Topic: Mortgage - Keep balance as High as Possible
Replies: 162
Views: 11493

Re: Mortgage - Keep balance as High as Possible

Yes because the sole consideration involved in this decision is trying to slightly reduce the likelihood of foreclosure.

There are valid, well thought out reasons for maintaining a high mortgage balance. This is not one of them.
by 9-5 Suited
Fri Mar 27, 2020 7:59 pm
Forum: Investing - Theory, News & General
Topic: Does anyone else think this is a once in a lifetime opportunity to buy treasuries?
Replies: 68
Views: 8447

Re: Does anyone else think this is a once in a lifetime opportunity to buy treasuries?

Contrary to popular opinion on how awful current nominal rates are.... If some of the academic papers about the long term effects of pandemics on interest rates are correct, we may eye the current Treasury yields as "the good old days" 20 years from now. Well if yields go too much lower it would be...
by 9-5 Suited
Thu Mar 26, 2020 3:30 pm
Forum: Personal Investments
Topic: What does it mean to have X years of expenses in cash/fixed-income?
Replies: 54
Views: 2403

Re: What does it mean to have X years of expenses in cash/fixed-income?

I feel like some people throw it around as demonstration of their supposed intellectual acumen. Definitely true, though I think it cuts both ways. Some people get overly defensive about accusations of mental accounting, when its totally fine to just say "yeah, I'm not a cyborg, so flippin what?" Th...
by 9-5 Suited
Thu Mar 26, 2020 3:16 pm
Forum: Personal Investments
Topic: What does it mean to have X years of expenses in cash/fixed-income?
Replies: 54
Views: 2403

Re: What does it mean to have X years of expenses in cash/fixed-income?

I feel like some people throw it around as demonstration of their supposed intellectual acumen. Definitely true, though I think it cuts both ways. Some people get overly defensive about accusations of mental accounting, when its totally fine to just say "yeah, I'm not a cyborg, so flippin what?" Th...
by 9-5 Suited
Thu Mar 26, 2020 3:12 pm
Forum: Personal Investments
Topic: What does it mean to have X years of expenses in cash/fixed-income?
Replies: 54
Views: 2403

Re: What does it mean to have X years of expenses in cash/fixed-income?

If one is a strict rebalancer who views the entire portfolio holistically, then "number of years of expenses in fixed income" is just a descriptive fact about the current portfolio, but subject to massive change. If equities crash, this person is obligated (again assuming he is a strict rebalancer) ...
by 9-5 Suited
Wed Mar 25, 2020 1:03 pm
Forum: Investing - Theory, News & General
Topic: Smarter approach to "emergency funds"?
Replies: 114
Views: 9177

Re: Smarter approach to "emergency funds"?

For me the thing that cuts through this, but is philosophically aligned to the OP’s proposal, is to just treat asset allocation/location decisions holistically across the portfolio including whatever dedication one wants to short -term assets like cash or short bonds. Seems easier that having VASIX ...
by 9-5 Suited
Wed Mar 25, 2020 9:06 am
Forum: Investing - Theory, News & General
Topic: If a mortgage is a negative bond . . .
Replies: 23
Views: 1822

Re: If a mortgage is a negative bond . . .

A mortgage is not a negative bond. Make your decision with that assumption. Regardless of that debate where people will entrench on each side, it’s more fundamental to just acknowledge the pros and cons directly. Holdings bonds is more liquid and better for rebalancing if one is concerned with that...
by 9-5 Suited
Tue Mar 24, 2020 5:02 pm
Forum: Personal Investments
Topic: [Differences in strategies: Ramsey vs Bogle]
Replies: 60
Views: 3821

Re: Ramsey or Bogle?

I agree with everyone on Dave Ramsey threads ... that's the fun of them :) I will say that the *average* person could do a lot worse than being debt free, emergency fund in place, avoiding whole life insurance and other scammy products, investing 15% of their income into American Funds or similar st...