Search found 1464 matches

by msk
Mon Feb 17, 2020 8:26 am
Forum: Investing - Theory, News & General
Topic: At what age did you begin adding bonds?
Replies: 138
Views: 7489

Re: At what age did you begin adding bonds?

Never bought a single bond. Now age 75. Dabbled in individual stocks, Options and rental RE but also fell into a good job that promised a COLA pension. Was lucky. Ended up with a nice :moneybag I sincerely believe that I could have ended up with :moneybag :moneybag :moneybag if I had taken even more...
by msk
Mon Feb 17, 2020 8:13 am
Forum: Personal Investments
Topic: Future inheritance asset allocation
Replies: 14
Views: 1327

Re: Future inheritance asset allocation

I am 75 and can live comfortably on my COLA pension, so in a similar situation to your Dad. I am not tax resident in the USA so I have nil tax complications. My entire portfolio is in VT (Vanguard World by free market weight) and equivalents for non US tax payers. I liquidate 3.5% every year and han...
by msk
Mon Feb 17, 2020 7:57 am
Forum: Personal Investments
Topic: Single stocks... would you?
Replies: 125
Views: 8391

Re: Single stocks... would you?

Almost everyone has dabbled in single stocks until they matured and went diversified. We almost always have to learn the hard way. Nevertheless, doubling an investment in AAPL or whatever is not worth much if all you had put into it was just a few percent of your Net Worth. Did you have the nerve to...
by msk
Fri Feb 14, 2020 8:30 am
Forum: United Arab Emirates
Topic: Tax on European domiciled ETF's
Replies: 5
Views: 585

Re: Tax on European domiciled ETF's

Or you can buy VWRA (Vanguard World Accumulative, based in Ireland), and never worry about taxes at all. Vanguard sorts it all out to various countries, at maximum efficacy, and reinvests all dividends after tax and fees. And neither New Zealand nor the UAE tax you on income outside their borders. I...
by msk
Fri Feb 14, 2020 3:01 am
Forum: Investing - Theory, News & General
Topic: ETF to Hold for 50 Years
Replies: 118
Views: 10438

Re: ETF to Hold for 50 Years

+1 for VT My several adult kids live in different countries, so they need different versions of VT, e.g. I told my kids in Canada to go for 5% VCN (Vanguard Canada) + 95% VXC (Vanguard world excluding Canada), my kids in countries where they do not pay income tax to go for VWRA (Vanguard World Accum...
by msk
Fri Feb 14, 2020 2:49 am
Forum: Personal Finance (Not Investing)
Topic: $2-2.5M House?
Replies: 77
Views: 7583

Re: $2-2.5M House?

I think many BHs who have high incomes sooner or later wonder whether they are too stingy and are letting their lives drift at a lifestyle that is much lower than they can afford indefinitely into the future. My rules of thumb since my 20s, 50 years ago, and I have yet to see anything to point out t...
by msk
Fri Feb 14, 2020 2:21 am
Forum: Personal Investments
Topic: best use of 750k Cash
Replies: 12
Views: 2040

Re: best use of 750k Cash

3. Pay off the mortgage on my current home and invest rest in VTI/FSTVX. 4. Spend a 100K to finish a basement in our home and use the rest in VTI/FSTVX For peace of mind and adding more room as the kids grow, I would do these two. Many of us think of "forever home" as possible. Not sure whether suc...
by msk
Wed Feb 12, 2020 11:30 pm
Forum: Investing - Theory, News & General
Topic: Indexing versus real estate for low income investors
Replies: 21
Views: 1606

Re: Indexing versus real estate for low income investors

For RE you have to be right on location, in space and time. Almost any location has had or will have its time. I am sure that investors are raking in millions right now in war torn areas, Kabul, Idlib, Tripoli, etc. You make a lot of money in the locations that people are loathe to invest in. Perhap...
by msk
Wed Feb 12, 2020 11:06 pm
Forum: Personal Finance (Not Investing)
Topic: Where to leave money when we die
Replies: 68
Views: 5340

Re: Where to leave money when we die

There are so many worthy causes, but I recommend against a unique scholarship. A) A pain to administer--someone has to pick the worthy candidate. B) No one applies. A stunning lesson I learned as a professor, students don't bother applying for scholarships. My department had a full-year tuition sch...
by msk
Wed Feb 12, 2020 1:02 am
Forum: Investing - Theory, News & General
Topic: Equity allocation for young investors: am I missing something?
Replies: 47
Views: 2386

Re: Equity allocation for young investors: am I missing something?

Just wondering... Has anyone ever felt that "currently the stock market looks cheap"? I started dabbling in stocks in the early 1980s. The P/E for stocks looked ridiculously high compared to my local RE market. Then came the 1986(?) collapse. Since it wasn't clear to me as to why the market collapse...
by msk
Tue Feb 11, 2020 2:46 am
Forum: Personal Finance (Not Investing)
Topic: HS senior to-be is telling us he is thinking about majoring in Economics...
Replies: 75
Views: 6326

Re: HS senior to-be is telling us he is thinking about majoring in Economics...

He can study anything that turns him on but he ought to be aware that computer science is not the same as coding when it comes to making $ and that economics is not the same as a CPA. Fortunately he can learn coding while studying any subject, at any level, and become a CPA if salaries are not high ...
by msk
Tue Feb 11, 2020 2:19 am
Forum: Investing - Theory, News & General
Topic: I have a wild [asset allocation] theory. Poke some holes in it.
Replies: 39
Views: 6556

Re: I have a wild theory. Poke some holes in it.

The one regret I have in my investing life (5 decades so far) is that I was not more aggressive in my younger days. I would have learned what I have to date much earlier and gotten much richer by now. I took more risks than the BH philosophy, but in retrospect not enough. A 25 year-old can lose ALL ...
by msk
Tue Feb 11, 2020 2:00 am
Forum: Investing - Theory, News & General
Topic: Non-US investor looking to invest in US
Replies: 8
Views: 479

Re: Non-US investor looking to invest in US

"There are 2 issues if the amount is many million$. India may need to be satisfied that the money is legit and already taxed. The US will need to know the purpose of the transfer. Usually saying "Investment" is enough. Experience (from elsewhere, not India) shows that it takes no more form filling t...
by msk
Tue Feb 11, 2020 1:34 am
Forum: Investing - Theory, News & General
Topic: Equity allocation for young investors: am I missing something?
Replies: 47
Views: 2386

Re: Equity allocation for young investors: am I missing something?

Sigh. Most of these AA arguments are based on the imagining that anyone learns from others' wisdom and experience. Maybe true for the 50 year-olds who have already missed the get-rich boat; almost certainly not true for many of us when we were in our 20s and 30s. Any 25 year old "knows" that it is p...
by msk
Sat Feb 08, 2020 4:00 am
Forum: Investing - Theory, News & General
Topic: How much to hold in cash during retirement?
Replies: 51
Views: 5264

Re: How much to hold in cash during retirement?

I feel that many BHs have an unjustifiable fear of having to sell stocks when the market is down. Firstly, unless you have "just" invested in stocks, you are not selling at a loss (long term gains, etc.). Secondly, you are selling a trivial amount annually anyway. The OP is, presumably, in good time...
by msk
Sat Feb 08, 2020 3:17 am
Forum: Personal Consumer Issues
Topic: Parents' would like fabulous 80th birthday family trip
Replies: 33
Views: 3586

Re: Parents' would like fabulous 80th birthday family trip

Frankly most tourist areas around the world would do quite well. We have done such family trips with and without elderly couples. Our recipe is to book a house/apartment or rooms in a 4 star hotel/resort plus a vehicle that can accommodate the full tribe. Depending on the country we either book a dr...
by msk
Tue Feb 04, 2020 6:40 am
Forum: Personal Investments
Topic: Am I calculating Inflation correctly?
Replies: 6
Views: 626

Re: Am I calculating Inflation correctly?

5% real is a good, even a quite optimistic, view of returns over next 35 years. Almost exactly the return for global, USD, portfolios since 1900 (Dimson Marsh Staunton data). 1% real is a reasonable long term bet for bonds - unfortunately almost all government bonds are trading at lower real yields...
by msk
Sun Feb 02, 2020 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Need help with valuation of small company
Replies: 12
Views: 885

Re: Need help with valuation of small company

You could auction your share to the other four through secret bidding? Or semi-open bidding like on eBay? I.e. you put a time limit, say, one week, and inform all of the highest bid received each day.
by msk
Sun Feb 02, 2020 10:33 am
Forum: Personal Consumer Issues
Topic: Living in the UK for 3-6 months
Replies: 1
Views: 233

Re: Living in the UK for 3-6 months

Like much of Britain, the Lake District is superb in fine weather but gets tiresome quite quickly in lousy weather. Unfortunately all that nice greenery in the Lake District demands a lot of rain and fog. 3+ months might end up seeming excessively long for somebody not used to that kind of inclement...
by msk
Sun Feb 02, 2020 8:46 am
Forum: Non-US Investing
Topic: 40 y.o. European expat, UAE resident, high 7 figures
Replies: 4
Views: 780

Re: 40 y.o. European expat, UAE resident, high 7 figures

After 40 years investing I have decided on 100% stocks worldwide by market weight. No bonds because my portfolio is large enough to weather, say, a 50% drop for several years. After many plays with long term data and Excel, I have come to the conclusion that I can safely withdraw 5% of portfolio bal...
by msk
Wed Jan 29, 2020 3:20 am
Forum: Personal Consumer Issues
Topic: Buying a new-construction home
Replies: 28
Views: 2925

Re: Buying a new-construction home

I built around 10 houses/buildings using various contractors over the decades. Any contractor knows far more about what matters than you do. If you have a good rapport with him from Day 1 it will pay huge dividends. If you have a major quibble from the start you will be penalised and pay through the...
by msk
Sun Jan 26, 2020 2:34 am
Forum: Personal Consumer Issues
Topic: Most inexpensive places to buy new cabinets and countertops
Replies: 21
Views: 2468

Re: Most inexpensive places to buy new cabinets and countertops

I have experience with probably 50+ kitchen installs/replacements over the decades, rental and own occupancy. Hands down, if there is an Ikea near you, then Ikea is the best option. Fairly priced and a 25 year warranty. Pay them to do the installation. When you visit them go with a detailed plan of ...
by msk
Sat Jan 25, 2020 2:12 am
Forum: Personal Consumer Issues
Topic: Mechanics of maintaining two homes
Replies: 37
Views: 3542

Re: Mechanics of maintaining two homes

If you want this lifestyle for many years duplicate everything, including cars once the long drive gets boooooring. A suitcase per person back and forth is tolerable. DW packs her favorite teas/herbs/etc. into her suitcase for use fresh the first few days. I have friends with 3 homes. They triplicat...
by msk
Sat Jan 25, 2020 1:50 am
Forum: Personal Finance (Not Investing)
Topic: Prepping for retirement 3 yrs out - what to do?
Replies: 39
Views: 3760

Re: Prepping for retirement 3 yrs out - what to do?

If you have the option to continue working, I would until I can afford my "minimal" living standard with 2.5% of my portfolio. Why? Because the markets may drop 50% the day I retire and stay down for a decade. So define the gap between your current standard of living (3.7%) and "minimal". If the gap...
by msk
Sat Jan 25, 2020 1:33 am
Forum: Personal Investments
Topic: Our first investment property - any advice?
Replies: 13
Views: 955

Re: Our first investment property - any advice?

I do not know how much exactly you would net if you sell, but let us assume $80k. Invested in 100% stocks that's good for 5% to 6% real terms, forever. $o at 5% real, net, $80k is good for $333 per month. Real terms, forever, nil effort. Fluctuates; so what? Over 30 to 50 years it should average tha...
by msk
Fri Jan 24, 2020 5:07 am
Forum: Personal Consumer Issues
Topic: When to Change Car Battery?
Replies: 120
Views: 8761

Re: When to Change Car Battery?

- Very hot climate: change after 3 summers, regardless. Very computerised car: you'll be very sorry when you suddenly get tens of urgent, inexplicable, incomprehensible, error messages and your dealer attempts to resolve them because "the battery tests OK". You pay for the work time (BMW 6 series). ...
by msk
Thu Jan 23, 2020 2:22 am
Forum: Personal Consumer Issues
Topic: Spain in July with kids
Replies: 49
Views: 3503

Re: Spain in July with kids

With young kids I would say opt for beach with only a bit of "culture". I did this kind of trip many times to many countries with young kids. For Spain I had opted once for an extensive drive tour; Madrid/Barcelona/Costa Brava etc. Not a good idea.Too much packing/unpacking. Next variation was to fl...
by msk
Sun Jan 19, 2020 5:51 am
Forum: United Arab Emirates
Topic: New UAE-based Investor seeking advice!
Replies: 7
Views: 2014

Re: New UAE-based Investor seeking advice!

Since US-Stocks and Bonds are subject to withholding tax (whether in different percentages between the US/Ireland domiciles), Are non-US stocks (international markets) traded vis US broker (IB) also liable to withholding tax? This query is more complicated than appears at first sight and, to be pro...
by msk
Sun Jan 19, 2020 1:03 am
Forum: Personal Finance (Not Investing)
Topic: $400,000 Cash: Pay Off Rental v. New Home Down Payment
Replies: 18
Views: 1628

Re: $400,000 Cash: Pay Off Rental v. New Home Down Payment

I would put it all on primary residence. +1. I find it baffling that a BH at your age and income is still carrying a mortgage on his home. As for the beach property it's either an investment or a toy. Nothing wrong with either approach in my view. Decide which and act accordingly. If investment the...
by msk
Sun Jan 19, 2020 12:51 am
Forum: United Arab Emirates
Topic: New UAE-based Investor seeking advice!
Replies: 7
Views: 2014

Re: New UAE-based Investor seeking advice!

Worldwide by market weight is roughly 55% N.America 45% rest of the world. IMHO one ETF is better than splitting and then wondering about the ratios every year. Let the world's markets and MSCI or FTSE calculate. E.g. China is almost as large an economy as the USA yet China's weighting for stocks is...
by msk
Sat Jan 18, 2020 7:12 am
Forum: Personal Finance (Not Investing)
Topic: Life advice for recent graduate
Replies: 67
Views: 5029

Re: Life advice for recent graduate

I lived by these rules and retired 20 years ago at 55: -save and invest 30% of after tax income. Paying the principal on your home mortgage counts as investing, not the interest part and not paying for consumer items like cars. To save 30% simply continue living like a student for another year or tw...
by msk
Thu Jan 16, 2020 1:04 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 717
Views: 103716

Re: Year 2000 retirees using the '4% rule' - Where are they now?

CPI for 1999 to 2019 went from 100 to 154. Cheers for stocks! Am I reading this correctly in that $40k in 2000 is $61,600 today (I.e. what was withdrawn on 12/31/2019) and a million then is $1,540,000 today? Yes. US inflation from 1776 to 2020 is instantly available on your smartphone using the fre...
by msk
Wed Jan 15, 2020 3:04 am
Forum: Personal Investments
Topic: advice on retirement portfolio for a $20m windfall
Replies: 56
Views: 9784

Re: advice on retirement portfolio for a $20m windfall

I have a portfolio larger than $10m, all in stocks worldwide, all in ETFs similar to VT. I am not tax resident in the US so I bought, e.g. VWRD, VWRA, IWDA+EIMI+WSML (no need to look them up, each lot mirrors 4000 stocks out of the 8000 in VT). I give away 3.5% of my portfolio annually, as monthly s...
by msk
Wed Jan 15, 2020 1:15 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 717
Views: 103716

Re: Year 2000 retirees using the '4% rule' - Where are they now?

I am bemused by the whole idea that a BH would be so stupid as to keep increasing his cash withdrawals to keep pace with inflation even after a major market collapse. Does not happen. I actually did retire on 1.1.2000, with a "satisfactory" COLA pension. Here is my history since then: - started reti...
by msk
Sun Jan 12, 2020 3:19 am
Forum: Personal Investments
Topic: 70 Years Old, $50000 to invest
Replies: 14
Views: 2270

Re: 70 Years Old, $50000 to invest

My grandmother is very risk averse, though in my view she really doesn't have to be -- but then again, I'm not 70 years old (I'm 18). So I understand that living through multiple recessions can scare you into thinking that your timing could be bad and you could lose your savings. She's had some fri...
by msk
Sun Jan 12, 2020 3:00 am
Forum: Personal Investments
Topic: Networth- in diversified assets vs mainly in investment portfolio
Replies: 18
Views: 1115

Re: Networth- in diversified assets vs mainly in investment portfolio

Great advice. I feel like selling my 2 rentals that I'm never managed, let alone even seen because I'm tired of them. But I balk at the capital gains and depreciation recapture. How did you deal with the taxes on your properties when you sold? As a wise man once said, to be taxed means that you hav...
by msk
Sat Jan 11, 2020 8:04 am
Forum: Personal Investments
Topic: Networth- in diversified assets vs mainly in investment portfolio
Replies: 18
Views: 1115

Re: Networth- in diversified assets vs mainly in investment portfolio

You will get as many opinions on this as there are bogleheads. My personal one is that, through personal experience of owning non-tradeable assets, I have come to strongly value the liquidity in stocks and bonds. My concern with investments is , it feels great when they are doing well but when ther...
by msk
Sat Jan 11, 2020 7:45 am
Forum: Personal Investments
Topic: 70 Years Old, $50000 to invest
Replies: 14
Views: 2270

Re: 70 Years Old, $50000 to invest

Enjoy the feeling of gifting while your alive, it'll most likely be more enjoyable for the both of you. +1. I give all my kids monthly stipends. Fortuitously, because of our varied and assorted tax residences scattered all over the globe, there are no tax implications for any. All of them can retir...
by msk
Thu Jan 09, 2020 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Donating $1M
Replies: 66
Views: 9581

Re: Donating $1M

Just food for thought for those donating very large amounts. A friend of mine is the grand nephew of the largest charitable foundation in Europe, something akin to the Ford Foundation. He was the last direct blood link to the founder and he was ousted from the Board of Directors for reasons I am not...
by msk
Wed Jan 08, 2020 12:56 am
Forum: Personal Finance (Not Investing)
Topic: Donating $1M
Replies: 66
Views: 9581

Re: Donating $1M

$2 million is very easy to waste, hence, personally, I would give it in small chunks. Invested in ETFs it's good for between $70k and $90k per annum. Forever! See my earlier post regarding my endowment. Unfortunately anyone of us can die tomorrow so you need an ongoing, trustworthy trust to hand it ...
by msk
Thu Jan 02, 2020 2:08 pm
Forum: Personal Investments
Topic: Average portfolio withdrawal rate...
Replies: 11
Views: 1254

Re: Average portfolio withdrawal rate...

I would just pay attention to historical inflation and compare the portfolio 20 years ago to today, in real terms. The CPI from 1999 to 2019 has gone from 100 to 154. A heavily-into-stocks portfolio with 5% of balance withdrawn at the end of each year should easily have grown to over 1.54x what it w...
by msk
Thu Jan 02, 2020 8:35 am
Forum: Non-US Investing
Topic: Favorite country to live in after FIRE?
Replies: 191
Views: 18709

Re: Favorite country to live in after FIRE?

cap396 wrote:
Wed Jan 01, 2020 7:36 pm
Wannaretireearly wrote:
Wed Jan 01, 2020 12:17 pm

Love to hear more. Got a blog? ;)
Yes we do: snailtravelers.com
:sharebeer
by msk
Wed Jan 01, 2020 1:58 am
Forum: Personal Investments
Topic: 10 Years of CDs or SP500 ???
Replies: 9
Views: 1242

Re: 10 Years of CDs or SP500 ???

What really matters is what will you have in REAL terms, after inflation. I find the Monte Carlo simulator at https://www.portfoliovisualizer.com/monte-carlo-simulation#analysisResults useful. I pay attention only to the 25 percentile, median, 75 percentile. These are the results of investing $15k e...
by msk
Tue Dec 31, 2019 2:24 pm
Forum: Personal Consumer Issues
Topic: Bidding with airline carrier to upgrade seats
Replies: 22
Views: 1568

Re: Bidding with airline carrier to upgrade seats

This past summer I flew return across the Atlantic. I was reasonably content to sit in Premium Economy for the daytime leg, so I bid low. For the return, overnight leg, I bid higher. I won both legs and still saved around $2500+ from the Business Class return fare. Oh, and there were still one or tw...
by msk
Tue Dec 31, 2019 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Help me get my young-adult daughter to save.
Replies: 30
Views: 2409

Re: Help me get my young-adult daughter to save.

Two routes: 1. Explain to her why saving and investing 30% of after tax income should be a lifetime strategy. It can be painless since I expect that 70% of her after-tax income once she gets a job will probably be more comfortable than how she lived as a student. So, it could be a seamless transitio...
by msk
Tue Dec 31, 2019 1:52 pm
Forum: Personal Consumer Issues
Topic: New Zealand Train trip
Replies: 77
Views: 3667

Re: New Zealand Train trip

NZ cities are like many Canadian and Australian cities, but the landscapes are right up there with the world's best. One alternative: fly to major scenic centers, e.g. Queenstown, and take guided excursions from there, i.e. conducted bus tours. Tripadvisor can fill in all the blanks.
by msk
Tue Dec 31, 2019 5:49 am
Forum: Personal Consumer Issues
Topic: New Zealand Train trip
Replies: 77
Views: 3667

Re: New Zealand Train trip

We rented a campervan and drove all around the South Island. Great vacation some 25 years ago.
by msk
Tue Dec 31, 2019 3:04 am
Forum: Personal Consumer Issues
Topic: Question about computers with two hard drives (SSD and regular hard drive)
Replies: 36
Views: 2566

Re: Question about computers with two hard drives (SSD and regular hard drive)

I've had my current desktop for a few years already and I have an annual subscription to Windows. That comes with One Drive allocations. What's wrong with depending on One Drive for everything other than program files (on a C Drive) and restore files (on D Drive)? My One Drive is at 300+ GB while th...
by msk
Tue Dec 31, 2019 2:26 am
Forum: Personal Finance (Not Investing)
Topic: How much were you able to spend this year?
Replies: 53
Views: 2857

Re: How much were you able to spend this year?

Spent $100k on myself and DW. Includes ample domestic help and one holiday trip to the other side of the world. Gave away $300k to potential heirs and charity. At age 75 I think I get enjoyment of my life-long hard earned savings in a ratio reflecting that expenditure ratio. Only the second year I m...
by msk
Sat Dec 28, 2019 3:14 am
Forum: Personal Finance (Not Investing)
Topic: Donating $1M
Replies: 66
Views: 9581

Re: Donating $1M

I gave an endowment a few years ago to my alma mater, to aid students in dire straits similar to what I was in my youth, from a 3rd world country. I did not have any tax deductions to chase, so I simply advised the college what my target student population was and they drew up a 2-page legal documen...