Search found 628 matches

by msk
Sat Feb 17, 2018 2:17 am
Forum: Personal Finance (Not Investing)
Topic: Monthly Stipends (Now) to Future Heirs?
Replies: 4
Views: 835

Monthly Stipends (Now) to Future Heirs?

First, thanks to all the BHs who commented on my tortuous quandary regarding how to structure a "trust" that will help my grown-up kids (and the grand kids) while I am still alive. Advised to steer clear, for numerous reasons. Done; hence revised approach. We live a fairly frugal lifestyle given our...
by msk
Fri Feb 16, 2018 2:04 am
Forum: Personal Finance (Not Investing)
Topic: How to get child's skin in the game for college?
Replies: 132
Views: 5731

Re: How to get child's skin in the game for college?

I find all this skin in the game for college education rather sad. IF you can afford paying 100%. You were happy to support her 100% for the past 17 years; why baulk at the final year in college? At college it becomes clearer as to what turns her on, hopefully not drugs. She will pay full attention ...
by msk
Thu Feb 15, 2018 8:21 am
Forum: Investing - Help with Personal Investments
Topic: 4% rule and early retirement?
Replies: 69
Views: 8147

Re: 4% rule and early retirement?

We all wish to have some rule that will last forever, even if one lives to 120 :shock: An excellent strategy is having the WR as a percentage of the portfolio, not as a percentage at some, possibly decades ago, retirement date. Taking a percentage of that year's portfolio value will last forever, bu...
by msk
Thu Feb 15, 2018 12:37 am
Forum: Investing - Help with Personal Investments
Topic: Gut check: is this lifestyle creep?
Replies: 37
Views: 5371

Re: Gut check: is this lifestyle creep?

YOLO! Save and invest 30% of all after tax income. Payment of principal (not interest) on your home's mortgage counts as saving and investing, not on consumables like cars. Blow the rest on any toys you desire. Worked for me. Retired at 55.
by msk
Wed Feb 14, 2018 12:40 am
Forum: Personal Finance (Not Investing)
Topic: The value of car body repairs/upkeep of older cars?
Replies: 32
Views: 2554

Re: The value of car body repairs/upkeep of older cars?

There is a huge difference between repairing for cosmetic looks and repairing because a significant portion of the body is rusting away in unseen places. The colder your climate is, the worse the situation. Many years ago when I was living in Canada, I had some rust spots appearing on top of the fro...
by msk
Sun Feb 11, 2018 1:26 am
Forum: Personal Consumer Issues
Topic: Does it ever make sense to buy a new car?
Replies: 103
Views: 6308

Re: Does it ever make sense to buy a new car?

On the upside I make over 200k and could easily pay it off quickly, I’d be getting every safety/convenience feature I want, and would get the benefit of the new warranty. You make $200k p.a. Let me assume it's after tax. Board and lodging costs, say, $70k, saving and investing another $60k (30%). W...
by msk
Sun Feb 11, 2018 12:41 am
Forum: Investing - Theory, News & General
Topic: Help me understand the low volatility premium
Replies: 7
Views: 813

Re: Help me understand the low volatility premium

These are the prices I see right now. SPY is at 262.4 (i.e. SP500 is at 2624) so, let's say you wish to benefit bigly from a rise above SPY 260: within one year to Jan 18 2019 Price of Call is $20 or 7.7% within 2 years to Jan 17 2020 Price of Call is $29 or 11% within 3 years to Dec 18 2020 Price o...
by msk
Sat Feb 10, 2018 2:49 am
Forum: Investing - Theory, News & General
Topic: Help me understand the low volatility premium
Replies: 7
Views: 813

Re: Help me understand the low volatility premium

Let's be blunt. We don't care about volatility upwards (we love it!) but we do feel great pain from volatility downwards :mrgreen: There are hundreds/thousands of quants who make their living by calculating the price of volatility minute by minute. What one can do to limit volatility downwards to ze...
by msk
Sat Feb 10, 2018 1:46 am
Forum: Investing - Help with Personal Investments
Topic: Can non US citizen create corporation in US to invest in vanguard
Replies: 39
Views: 3400

Re: Can non US citizen create corporation in US to invest in vanguard

Trading on Ireland based ETFs close earlier in the day (UK local time?) than US based ETFs (Eastern US time?). That may explain minor differences in daily gains/losses following sessions with great volatility.
by msk
Fri Feb 09, 2018 7:44 am
Forum: Personal Finance (Not Investing)
Topic: Do Trust Deeds have to be registered by a government?
Replies: 7
Views: 781

Re: Do Trust Deeds have to be registered by a government?

Also, when we create a trust, it must be signed by the grantor(s) (the person(s) putting assets into the trust) in the presence of a notary who also signs and uses a government-issued stamp to mark the signature page. The notary first verifies the identify of the signers using a government-issued p...
by msk
Fri Feb 09, 2018 1:13 am
Forum: Investing - Theory, News & General
Topic: RBD alert [Really Bad Day]
Replies: 86
Views: 9999

Re: RBD alert [Really Bad Day]

So far only -10% from peak? Yawn. Wake me up when it reaches -20%, first little action in my investment plan; next at -30%, more aggressive action, next at -35%, next at -40%... Each BUY will get steadily more aggressive (buying Calls using margin). I am already 100% stocks :mrgreen: I am absolutely...
by msk
Fri Feb 09, 2018 12:48 am
Forum: Personal Finance (Not Investing)
Topic: Do Trust Deeds have to be registered by a government?
Replies: 7
Views: 781

Re: Do Trust Deeds have to be registered by a government?

In the US, there is no such thing as registering your trust with the government, so we probably can't relate to the stories you've heard. And I don't think it is possible to compare an informal trust created 50 or 100 years ago with once that might be started now. Society is different. Laws are dif...
by msk
Thu Feb 08, 2018 3:02 am
Forum: Personal Finance (Not Investing)
Topic: Do Trust Deeds have to be registered by a government?
Replies: 7
Views: 781

Re: Do Trust Deeds have to be registered by a government?

My stance is shaped by my numerous contemporaries (ages 70 to 85) who have experienced Family Trusts. ALL had pleasant experiences with "informal" trusts that were managed by family members (from the times of their grandfathers 50 to 100+ years ago. None complained of untrustworthy trustees. Yes, an...
by msk
Thu Feb 08, 2018 1:50 am
Forum: Investing - Help with Personal Investments
Topic: Can non US citizen create corporation in US to invest in vanguard
Replies: 39
Views: 3400

Re: Can non US citizen create corporation in US to invest in vanguard

SWDA is quoted in GBP (Pence!), IWDA is quoted in $. I have not checked but I expect that any moment the conversion of GBP pence to USD will give you the same price.At this time Bloomberg quotes are: SWDA 3939.5 IWDA 54.715 USD/GBP 1.3898 Convert the SWDA GBP pence to USD, you get $54.75 Close enoug...
by msk
Wed Feb 07, 2018 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Can non US citizen create corporation in US to invest in vanguard
Replies: 39
Views: 3400

Re: Can non US citizen create corporation in US to invest in vanguard

I have a very similar situation but with no tax treaty with the USA. What I did: Liquidated all my holdings in TDAmeritrade, opened an account at IB. This account is Joint with Survivor Rights (with my wife) Mulled over between VWRD and Black Rock/iShares, all Ireland domiciled. Chose iShares becaus...
by msk
Wed Feb 07, 2018 1:56 am
Forum: Personal Finance (Not Investing)
Topic: Do Trust Deeds have to be registered by a government?
Replies: 7
Views: 781

Do Trust Deeds have to be registered by a government?

Scenario: I wish to set up a irrevocable trust for the benefit of my children, grandchildren and their offspring. Because they are scattered in various countries, each with its own tax systems, I do not wish for any government to be involved in setting up the trust. It so happens that my chosen two ...
by msk
Wed Feb 07, 2018 12:29 am
Forum: Personal Finance (Not Investing)
Topic: Am I saving too much for retirement?
Replies: 102
Views: 10960

Re: Am I saving too much for retirment?

My childhood buddy and I decided at around age 30 that we were saving and investing too much, and that we should limit saving and investing to 30% of after tax income. YOLO. We both did well, both retired at 55, now at 73, and both have 8 figure NW from, like for most people, essentially zero NW in ...
by msk
Tue Feb 06, 2018 3:45 am
Forum: Personal Consumer Issues
Topic: Sent a letter without country
Replies: 6
Views: 702

Re: Sent a letter without country

Should get there fine provided the same city name does not occur in numerous countries! Once DW addressed a letter to me with the address: My Name, Montreal. I received it with the normal postage delay. Obviously the kind postman did not have to choose between 5000 Smiths...
by msk
Tue Feb 06, 2018 3:10 am
Forum: Investing - Theory, News & General
Topic: Where Are The 100% Equity Bulls? BND up .44%
Replies: 47
Views: 4659

Re: Where Are The 100% Equity Bulls? BND up .44%

Hmmnnn. Strange that stocks go down because, supposedly, there is fear that interest rates are about to go up. Interest rates going up means that bonds will go down :oops: Perhaps there is something I am missing in all this. Or perhaps the talking heads have no clue as to why stocks went down :confu...
by msk
Tue Feb 06, 2018 12:24 am
Forum: Personal Consumer Issues
Topic: Life Balance of spending and saving
Replies: 54
Views: 4523

Re: Life Balance of spending and saving

If you ever wish for a pool, get it asap before the kids grow up and lose all interest in it. From my own and friends' experiences, pools seem to have a lifespan of desirability of around 3 years. Beyond 3 years there is so little use that a pool becomes just a money pit. The 3 years will extend so...
by msk
Mon Feb 05, 2018 10:41 pm
Forum: Personal Consumer Issues
Topic: Potential employer wants me to give offer - how to respond?
Replies: 58
Views: 4937

Re: Potential employer wants me to give offer - how to respond?

You are reasonably happy at your current job. There is always a comp level that would make you "consider" a move but still turn down the offer. There is also a much higher level that would make you jump at the offer. You decide somewhere between the two and ask for that. You get it, you move. Otherw...
by msk
Mon Feb 05, 2018 10:15 pm
Forum: Investing - Theory, News & General
Topic: Request perspective on career, life, and finance
Replies: 16
Views: 3376

Re: Request perspective on career, life, and finance

Just a side comment about AI. Some of the above discussion reminds me of my undergrad buddies and their careers over the past decades. We all did Honors degrees in Physics, Class of 1966. Recently we had a reunion. I was astonished that the majority had ended up in IT, because in the 1960s physicist...
by msk
Sat Feb 03, 2018 1:21 am
Forum: Investing - Help with Personal Investments
Topic: Have Enough, Should I now time market?
Replies: 31
Views: 3957

Re: Have Enough, Should I now time market?

Would appreciate thoughts! If you have enough to support yourself in retirement (assuming 3% annual inflation) and you know there will be a correction to the economy and market, should you cash out at some point and watch from the sidelines. If I understand Merriman, even he market times to a degre...
by msk
Sat Feb 03, 2018 12:33 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford this house?
Replies: 50
Views: 4305

Re: Can I afford this house?

I am 73, retired at 55. Looking back since my pauper days youth 5 decades back, I followed a few rules-of-thumb that worked well for me while living in HCOL and LCOL locations worldwide and I preach endlessly to my kids (unfortunately I don't think they listen): 1. Save and invest 30% of after tax i...
by msk
Sat Feb 03, 2018 12:15 am
Forum: Personal Consumer Issues
Topic: Life Balance of spending and saving
Replies: 54
Views: 4523

Re: Life Balance of spending and saving

If you ever wish for a pool, get it asap before the kids grow up and lose all interest in it. From my own and friends' experiences, pools seem to have a lifespan of desirability of around 3 years. Beyond 3 years there is so little use that a pool becomes just a money pit. The 3 years will extend som...
by msk
Wed Jan 31, 2018 2:53 am
Forum: Investing - Theory, News & General
Topic: Request perspective on career, life, and finance
Replies: 16
Views: 3376

Re: Request perspective on career, life, and finance

Value my opinions as you wish. My background: Physics PhD as an immigrant into Canada. Now retired from a Fortune 10 corporation working worldwide. 1. Long term, your job satisfaction is more important than compensation. Short term, the opposite is true. I enjoyed technical challenges but for purity...
by msk
Tue Jan 30, 2018 11:25 pm
Forum: Investing - Theory, News & General
Topic: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk
Replies: 49
Views: 5227

Re: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk

I must be missing something... If I sell a Jan 2019 call @ 315 strike and buy a Jan 2019 put @ 260 strike, then the worst case outcome is for the market to drop to $260, at which point my put is still worthless but I now owe $55/share to whoever exercises the call, on top of the $25/share depreciat...
by msk
Tue Jan 30, 2018 10:58 am
Forum: Personal Consumer Issues
Topic: Is this new car the smarter option?
Replies: 24
Views: 1631

Re: Is this new car the smarter option?

Hmmnnn. I just sold my 10 year old Lexus LS460 to my sister-in-law for $13k. 95k miles. Cosmetically 100% perfect inside and 99% outside (scratches on one tail light). Lexus never seems to try escaping warranty claims. I was shopping for a new Lexus and mentioned to the sales manager that I hesitate...
by msk
Tue Jan 30, 2018 1:49 am
Forum: Investing - Theory, News & General
Topic: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk
Replies: 49
Views: 5227

Re: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk

I prefer a simple, transparent insurance policy. Put the entire investment into the SP500, e.g. buy SPY. Insure annually by buying one-year Puts, current prices: 0% downwards acceptable: cost is 5.2% 5% downwards acceptable: cost is 3.7% 10% downwards acceptable: cost is 2.7% You are going to be pa...
by msk
Mon Jan 29, 2018 9:07 am
Forum: Investing - Theory, News & General
Topic: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk
Replies: 49
Views: 5227

Re: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk

aj76er wrote:
Mon Jan 29, 2018 1:23 am
msk wrote:
Mon Jan 29, 2018 12:18 am
Insure annually by selling one-year Puts
Don't you mean buying puts?
Yes. Buying :greedy Edited...
by msk
Mon Jan 29, 2018 12:18 am
Forum: Investing - Theory, News & General
Topic: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk
Replies: 49
Views: 5227

Re: The ''Bulletproof'' Wait and See Portfolio - Anti-Inflation and Minimum Risk

I prefer a simple, transparent insurance policy. Put the entire investment into the SP500, e.g. buy SPY. Insure annually by buying one-year Puts, current prices: 0% downwards acceptable: cost is 5.2% 5% downwards acceptable: cost is 3.7% 10% downwards acceptable: cost is 2.7% You are going to be pai...
by msk
Sun Jan 28, 2018 11:52 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking About Timing the Market
Replies: 75
Views: 5615

Re: Thinking About Timing the Market

We tend to focus on the "recent" in discussions of this sort. The best source for really long term data that I came across is "Capital in the 21st Century" by Thomas Piketty. His findings covering the past 300 years and all countries with significant recorded statistics: Largely passive investments ...
by msk
Fri Jan 26, 2018 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Buying a home - Financial Benefits? HCOL
Replies: 75
Views: 3394

Re: Buying a home - Financial Benefits? HCOL

VHCOL areas have a HUGE number of people betting that house prices will go up and up forever. They are willing to rent out these homes at half or less rents that would justify them as simple investments. Basically they are betting on individual growth stocks that show little or negative net income. ...
by msk
Fri Jan 26, 2018 7:47 am
Forum: Investing - Help with Personal Investments
Topic: Thinking About Timing the Market
Replies: 75
Views: 5615

Re: Thinking About Timing the Market

is there a chart for the modern era say 1970-2018? I do not have a chart but I crunched these numbers myself from published tables. SP 500 and US Inflation, averaged from 1967 to 2017. I was trying to derive a spending (withdrawal) strategy for my heirs, before I discovered BHs, that will preserve ...
by msk
Thu Jan 25, 2018 11:05 pm
Forum: Personal Consumer Issues
Topic: Strategies to combat the urge to spend?
Replies: 68
Views: 3658

Re: Strategies to combat the urge to spend?

This worked for me. Now aged 73 with a NW in 8 figures (100% stocks), retired 18 years ago at 55, put 4 kids through private school and college, paid cash for my first luxury car at age 39 (Mercedes S-Class Coupe) and owned multiple luxury cars thereafter: 1. Save and invest 30% of after-tax income....
by msk
Wed Jan 24, 2018 3:10 am
Forum: Investing - Theory, News & General
Topic: Calling all stats and math gurus...monte carlo in excel or online program
Replies: 13
Views: 1071

Re: Calling all stats and math gurus...monte carlo in excel or online program

I don't see how anyone can guarantee a 3% minimal return in a new investment today, with such low interest rates currently. Perhaps that was guaranteed way back in the 1970s/1980s? All guaranteed stock investments that I am aware of start off by putting the principal in a bond, e.g an x-years bond b...
by msk
Wed Jan 24, 2018 1:33 am
Forum: Personal Finance (Not Investing)
Topic: Working in the real world
Replies: 118
Views: 8761

Re: Working in the real world

Possibly actionable: Your daughter who works in finance. Many business/accountancy graduates believe that they ought to make the same as Accountants. Not true! One of my daughters with a BCom from a top university worked for a Fortune 10 company for several years and was even evaluated by the CEO as...
by msk
Wed Jan 24, 2018 12:36 am
Forum: Investing - Theory, News & General
Topic: Bond Portfolio for High Net Worth Individuals - Different Rules?
Replies: 56
Views: 5657

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

I have heard of various approaches to how much one should have in bonds [...] But, what about for high net worth individuals? I only know a few high net worth individuals but all of them got there by being more risk-taking than the average Boglehead. I know a handful of self made VHNW individuals (...
by msk
Tue Jan 23, 2018 6:00 am
Forum: Investing - Theory, News & General
Topic: Bond Portfolio for High Net Worth Individuals - Different Rules?
Replies: 56
Views: 5657

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

If you can stomach a 50% drop in portfolio I see nil need for bonds. I am 73 and 100% stocks. RE got to be too much bother so I sold off 30 rental units. I agree that the markets worldwide are very frothy but I do not want to miss a minute of this exuberant ride up. Last year I decided that I will d...
by msk
Tue Jan 23, 2018 5:48 am
Forum: Personal Finance (Not Investing)
Topic: Currency Exchange - Living Internationally Off A US Dollar Portfolio
Replies: 14
Views: 611

Re: Currency Exchange - Living Internationally Off A US Dollar Portfolio

Seems to me very straightforward for somebody with an IB account. Convert to currency of your choice, wire transfer. I tried it out to see how long the transfer appeared in my local account. It wasn't the same day but certainly within 3 days. Wire transfer cost was not excessive ($20-$30?). In case ...
by msk
Sun Jan 21, 2018 1:53 am
Forum: Investing - Help with Personal Investments
Topic: Pull back on retirement saving to increase savings for kids' college?
Replies: 31
Views: 2430

Re: Pull back on retirement saving to increase savings for kids' college?

Stuff your savings into 100% stocks ETFs in the most tax-advantaged accounts you have available. I put aside $200k when my 2 youngest kids were in grade school. They are now in college but I can continue giving each a stipend equal to Minimum Wage for the rest of their lives. From the same initial i...
by msk
Sun Jan 21, 2018 1:35 am
Forum: Investing - Theory, News & General
Topic: Fear of dying with too much money?
Replies: 137
Views: 8284

Re: Fear of dying with too much money?

I've been blessed with more than enough. So I invest for the security of an educational "legacy" trust for my heirs . . . and the heirs of my heirs.. . and their heirs :shock: . j :D If you do not mind, how did you set this up? I am very tempted to do something similar but ran into a hurdle. My des...
by msk
Sun Jan 21, 2018 12:57 am
Forum: Investing - Help with Personal Investments
Topic: Help with my investments. Too much cash
Replies: 16
Views: 2030

Re: Help with my investments. Too much cash

Age: His 48, Her 45 What I would do (and what I did at your age). At your ages I was 100% invested in RE and stocks. In your current position I would go simply for 100% stocks (and I still am at 100% stocks at age 73). Your portfolio is already in 7 figures and you ought to be saving and investing $...
by msk
Fri Jan 19, 2018 4:27 am
Forum: Personal Finance (Not Investing)
Topic: Considering PhD...but so much to consider...
Replies: 51
Views: 3576

Re: Considering PhD...but so much to consider...

I did a PhD in Physics, aiming for a research job in industry. Bad timing! Most of my PhD cohort ended up teaching in Junior Colleges. Stuff happens. I was lucky. Rode out the major PhD job slump (early 1970s post the Moon landings PhD lay-offs) through 2 post-docs and ended up in industry. Only do ...
by msk
Fri Jan 19, 2018 3:30 am
Forum: Personal Consumer Issues
Topic: Short Commute or Nicer House?
Replies: 142
Views: 7674

Re: Short Commute or Nicer House?

A word of warning regarding very HCOL cities, e.g. London UK. Decide up front how much commuting time you are willing to tolerate. For myself when I moved to London it was 30 minutes. I only looked at rentals with that much commuting time. Found a comfortable home, 5 bedrooms with nice garden; moved...
by msk
Thu Jan 18, 2018 10:22 am
Forum: Investing - Help with Personal Investments
Topic: Taking advantage of conservative equity allocations?
Replies: 5
Views: 329

Re: Taking advantage of conservative equity allocations?

I like the Monte Carlo Simulations of https://www.portfoliovisualizer.com/monte-carlo-simulation to test various scenarios. As an aside, if you are awfully nervous you can always simply insure a 100% stock portfolio by buying one-year Puts. For nil drop in value of portfolio it'll cost you 5.2%. E.g...
by msk
Thu Jan 18, 2018 9:56 am
Forum: Personal Consumer Issues
Topic: How to overcome the fear of spending money? (Buying a car)
Replies: 55
Views: 3837

Re: How to overcome the fear of spending money? (Buying a car)

Save and invest 30% of your after tax income and spend the rest. Include payment of principal on your home mortgage under savings, not interest. Otherwise you are just short-changing yourself. Life is for living. You only live once. YOLO. Whether you spend the rest on cars or yachts is immaterial. I...
by msk
Wed Jan 17, 2018 3:19 am
Forum: Investing - Help with Personal Investments
Topic: Investing Windfall (no country bias) [Non-US]
Replies: 22
Views: 1671

Re: Investing Windfall (no country bias) [Non-US]

With $10 million I feel it's somewhat wasteful to go for bonds, emergency fund, etc. as per traditional advice for a smaller portfolio. But from my homework and conclusions, I'd say: Sort out your tax residence and tax exposure first, to determine which country your ETFs should be based in, situs. A...
by msk
Sun Jan 14, 2018 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Adding 200k to Portfolio, don't want boring old VTSAX again -your criticism, suggestion for a little extra risk?
Replies: 46
Views: 5669

Re: Adding 200k to Portfolio, don't want boring old VTSAX again -your criticism, suggestion for a little extra risk?

OK, everyone gives wise advice, leading to boredom. I would suggest that to introduce some excitement, learn how to use options. Put the 200k in the usual boring, profitable stuff. I would put it into Vanguard Total World (including Emerging Markets), VT. Activate margin in your brokerage account an...
by msk
Fri Jan 12, 2018 10:39 am
Forum: Investing - Help with Personal Investments
Topic: Brazilian Boglehead needs help with Ireland Domiciled ETFs
Replies: 9
Views: 408

Re: Brazilian Boglehead needs help with Ireland Domiciled ETFs

There are no personal taxes where I live, neither on capital gains nor on income. There are about 10 countries worldwide where this is the case. Emerging Markets constitute, roughly, 10 to 12% of world free-float stocks, so any more weighting than that is a personal tilt. I decided to go simply with...