Search found 583 matches

by msk
Thu Jan 18, 2018 10:22 am
Forum: Investing - Help with Personal Investments
Topic: Taking advantage of conservative equity allocations?
Replies: 4
Views: 124

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: 35
Views: 1921

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: 20
Views: 1362

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: 39
Views: 4245

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: 380

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...
by msk
Fri Jan 12, 2018 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Getting your spouse on the same page
Replies: 52
Views: 4679

Re: Getting your spouse on the same page

It’s very common for married couples to disagree about money. I used to be a reckless spender but have completely turned it around and I am now a committed BH. I am having trouble getting on the same page with my wife. Has anyone else experienced difficulty in getting their spouse to follow a plan ...
by msk
Fri Jan 12, 2018 9:14 am
Forum: Investing - Help with Personal Investments
Topic: Brazilian Boglehead needs help with Ireland Domiciled ETFs
Replies: 9
Views: 380

Re: Brazilian Boglehead needs help with Ireland Domiciled ETFs

I put my money where my mouth is. All my NW is in stocks. Apart from a few carried-over individual stock picks (that I am steadily selling off to buy the same ETFs) I am invested 90% in IWDA (same as SWDA) and 10% in EIMI. I have enough $ in those two ETFs that my two ETF portfolio went up by 7 figu...
by msk
Fri Jan 12, 2018 3:38 am
Forum: Personal Finance (Not Investing)
Topic: How much/little money to give kids in will so they continue to work
Replies: 95
Views: 7903

Re: How much/little money to give kids in will so they continue to work

What I would do with a 8 figures is not what I would do with under $10 million. Below $10 million I would choose some simple all-out inheritance at a certain age formula. 25 to 35 all sound fine to me. Some aunt/uncle management for younger heirs. At $100+ million I would be fully aware that the pro...
by msk
Fri Jan 12, 2018 2:26 am
Forum: Investing - Theory, News & General
Topic: Profiles Of Some Successful Investors
Replies: 26
Views: 3526

Re: Profiles Of Some Successful Investors

You cannot repeat successful investment strategies of yesterday. Unfortunately we go through life only once. What I have learnt over the past 4 decades: Broad-market ETFs will get you to 7 figures by retirement age. Picking individual stocks is pure luck. You have to be on the inside to make a ton o...
by msk
Fri Jan 12, 2018 2:00 am
Forum: Investing - Help with Personal Investments
Topic: Ideas for Investing 100k
Replies: 5
Views: 391

Re: Ideas for Investing 100k

I have 2 college age kids, final semester this Spring. My recipe for each is: 1. Sort out your tax status as soon as you know which country you are going to be tax resident in the next 5 years and learn what are your best tax-shielded opportunities; so that you can maximize those. If you see yoursel...
by msk
Thu Jan 11, 2018 6:46 am
Forum: Investing - Help with Personal Investments
Topic: Help me stop my addiction to stock market peeping!
Replies: 66
Views: 4399

Re: Help me stop my addiction to stock market peeping!

It is easy to look frequently, especially when the market is going up. Once the market heads down I think it becomes easier not to look so frequently. +1 It's GREAT to look twice daily while the market is going up. Two doses of cheer daily :greedy The time to NOT look is when the market slides down...
by msk
Thu Jan 11, 2018 6:01 am
Forum: Personal Consumer Issues
Topic: Sell Sports Car and Invest or Keep for Fun Factor
Replies: 25
Views: 1149

Re: Sell Sports Car and Invest or Keep for Fun Factor

This invariably works:
Save and invest 30% of after tax income. Blow the rest on any toy you want. YOLO.
by msk
Thu Jan 11, 2018 2:38 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 309
Views: 26522

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

The reason I asked is: I' am a young guy (23 years old) that is 100% stocks. No pension, however I do have a matching 401K plan. I have built up my portfolio to $300,000. with the help of the Bogleheads. I have thought about bonds but at age 23 I think they would just be a drag on performance. My p...
by msk
Wed Jan 10, 2018 6:34 am
Forum: Investing - Theory, News & General
Topic: What your 2017 returns would look like if you listened to these financial websites
Replies: 18
Views: 3704

Re: What your 2017 returns would look like if you listened to these financial websites

End 2016 I decided to simplify my portfolio to only two ETFs, both accumulative of dividends:

90% in IWDA (World Developed), up 22.7%
10% in EIMI (Emerging Markets), up 37.1%

Makes one feel very smug. Until the next crash.
by msk
Wed Jan 10, 2018 6:08 am
Forum: Investing - Help with Personal Investments
Topic: Options on World Stocks similar to Options on SPY?
Replies: 8
Views: 306

Re: Options on World Stocks similar to Options on SPY?

The point is, the world does not end just because of a market panic, no matter how large the drop is. There are numerous threads already on this board about selling NOW and retreating to cash/bonds. If you are stoic enough and indeed believe that the world is not ending, you can profit a lot from, e...
by msk
Wed Jan 10, 2018 5:48 am
Forum: Investing - Theory, News & General
Topic: Bogleheadish investing books in Australia?
Replies: 7
Views: 553

Re: Bogleheadish investing books in Australia?

I used to go for my annual long vacations to Australia and ran across a book on building up a real estate portfolio by some lady. She explained, step by step, how to go about it, including all that bonanza from negative tax, etc. It sounded absolutely fantastic and I gave the book to an Australian f...
by msk
Wed Jan 10, 2018 5:24 am
Forum: Investing - Help with Personal Investments
Topic: Options on World Stocks similar to Options on SPY?
Replies: 8
Views: 306

Re: Options on World Stocks similar to Options on SPY?

Thanks! Looks great. I normally buy Calls after at least a 25% drop from peak, and then buy more Calls when the drop goes further to 30/35%... I think we'll all see the panic that sets in on this board when that happens. While history does not really repeat, my previous attempts on SPY turned out ve...
by msk
Wed Jan 10, 2018 3:55 am
Forum: Investing - Help with Personal Investments
Topic: Options on World Stocks similar to Options on SPY?
Replies: 8
Views: 306

Options on World Stocks similar to Options on SPY?

I'd like to be prepared for the next major stock markets fall. In previous market collapses I bought one-year Calls on SPY after a major fall. I have now shifted my holdings from primarily US to whole world. I use Interactive Brokers and have access to both US and UK or European Options exchanges. C...
by msk
Wed Jan 10, 2018 3:27 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 309
Views: 26522

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

MSK, Your post was very interesting...thank you. 1 Question: Would you have been able to do the same if you didn't have a pension paying (only 56% of your job income)? As you know pensions are going away (lucky for you that you received one). If you removed the pension how would a 100% stock fund t...
by msk
Tue Jan 09, 2018 4:37 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 309
Views: 26522

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

A constant, real terms withdrawal rate, 4% is IMHO very silly. You have to be an absolute idiot if you see your portfolio halved overnight and you insist on withdrawing the same amount as the previous year PLUS inflation! All sane BHs will withdraw less. The 4% rule is a useful theoretical construct...
by msk
Tue Jan 09, 2018 12:16 am
Forum: Personal Consumer Issues
Topic: New mattress
Replies: 71
Views: 6693

Re: New mattress

Hmmmnnn. Nobody seems to have mentioned the age of the user? IMHO most people can solve their mattress issues by shopping around till age 70. Beyond that we all seem to have issues no matter what choices we make. I had access to a mattress factory. Visited the place and talked to the engineer in chi...
by msk
Sat Jan 06, 2018 3:37 am
Forum: Personal Finance (Not Investing)
Topic: [How to determine budget for toys/luxuries?]
Replies: 41
Views: 2673

Re: [How to determine budget for toys/luxuries?]

Way back when we were both around age 30, me and my buddy decided that we were too stingy and saving too much (30++% of meagre incomes) and not spending enough on toys. So we resolved to save no more than a third of net income and even bought our top-of-the range Mercedes S Coupes together, but dif...
by msk
Fri Jan 05, 2018 8:56 am
Forum: Investing - Theory, News & General
Topic: international: low ER, low TCR, but not both
Replies: 21
Views: 955

Re: international: low ER, low TCR, but not both

My own choices after endless study: Taxable: VT covers the entire world including Emerging Markets Tax free status (individual is not liable for taxes anywhere in the world): 90% IWDA, 10% EIMI (both accumulative, World Developed and Emerging Markets). VWRD covers similarly but I did not want the nu...
by msk
Fri Jan 05, 2018 8:39 am
Forum: Personal Finance (Not Investing)
Topic: [How to determine budget for toys/luxuries?]
Replies: 41
Views: 2673

Re: [How to determine budget for toys/luxuries?]

Way back when we were both around age 30, me and my buddy decided that we were too stingy and saving too much (30++% of meagre incomes) and not spending enough on toys. So we resolved to save no more than a third of net income and even bought our top-of-the range Mercedes S Coupes together, but diff...
by msk
Fri Jan 05, 2018 2:55 am
Forum: Investing - Theory, News & General
Topic: Article claims: Housing was the world’s best investment over the last 150 years
Replies: 14
Views: 1503

Re: Article claims: Housing was the world’s best investment over the last 150 years

I went from zero Net Worth to $1.5 million by investing in RE in 3 countries during my wage earning years, despite my DW not being a saver. But she never once even suggested skipping a mortgage payment... Yes, RE can be very lucrative but you have to be right about location, in both space and time. ...
by msk
Fri Jan 05, 2018 2:19 am
Forum: Investing - Help with Personal Investments
Topic: 1m in Stocks looking to Simplify to Indexes
Replies: 11
Views: 1445

Re: 1m in Stocks looking to Simplify to Indexes

I manage a portfolio for one of my sisters. Only two holdings: BRK.B and VT. Doing very well and no intention to mess with it :moneybag The VT (Vanguard World Total) is an attempt at some diversification from pure USA. Do folks realize that Emerging Markets (included in VT) have shot up 30+% in the ...
by msk
Fri Jan 05, 2018 2:02 am
Forum: Investing - Theory, News & General
Topic: Hitting The Sell Button
Replies: 215
Views: 22772

Re: Hitting The Sell Button

I posted this on another thread, but this de-risking theme is recurrent. You can insure a 100% stock portfolio by paying the following premia, take your pick, no need for bonds, etc. and you will still benefit from dividends and any further upward movements in the market. Cost of one-year Puts: 0% l...
by msk
Fri Jan 05, 2018 12:02 am
Forum: Investing - Help with Personal Investments
Topic: Can I retire now?
Replies: 44
Views: 4598

Re: Can I retire now?

If you actually want to retire, my suggestion would be to sell the RE and put $3million in VT (Vanguard World Total). I can't see a situation in which the US market collapses 50+%, stays down for years and years, and drags the entire world that far down with it. Temporarily? Possibly, but not in a s...
by msk
Thu Jan 04, 2018 11:23 pm
Forum: Investing - Theory, News & General
Topic: Hitting The Sell Button
Replies: 215
Views: 22772

Re: Hitting The Sell Button

I have enough funds to pay for college for my two kids at in-state schools (at today's prices) thank to the bull market. The problem is that college is 11/13 years away and that the kids are invested 90%/10% and 100%/0% for stocks/bonds by way of age based portfolios. The stock portion is 60% US, 4...
by msk
Mon Jan 01, 2018 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: Really risk adverse, advise please ...
Replies: 14
Views: 1818

Re: Really risk adverse, advise please ...

0% losses tolerated from the value of SPY today, but all gains and dividends will be received. Premium is 5.2% of portfolio Max loss exposure is 10%, i.e. 90% value of portfolio at 1.1.2018 is insured, but all gains and dividends will be received. Premium is 2.6% Max loss exposure is 20%, i.e. 80% ...
by msk
Sun Dec 31, 2017 1:44 am
Forum: Investing - Help with Personal Investments
Topic: Really risk adverse, advise please ...
Replies: 14
Views: 1818

Re: Really risk adverse, advise please ...

Getting rid of risk costs something, basically an insurance premium, but of course all of us would like full, 100% exposure to any upside the market may offer next year. Here are the premiums insuring a stock portfolio 100% invested in the SP500 (=SPY) for a full year, using option prices as at clos...
by msk
Sat Dec 30, 2017 3:54 am
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 7578

Re: Paying off mortgage before investing at all?

Save and invest 30% of after tax income, religiously. Common avenues for saving and investing: Tax sheltered/employer-match accounts (can be so ridiculously attractive that you would be silly not to maximize) ETFs in taxable accounts Real Estate. The best tenant you can ever hope for is yourself, so...
by msk
Wed Dec 27, 2017 2:25 am
Forum: Personal Finance (Not Investing)
Topic: Miata as second car
Replies: 94
Views: 3787

Re: Miata as second car

Save and invest 30% of after tax income, religiously. Paying off principal on a home is included, not interest, and certainly not a car purchase. Beyond that IMHO feel free to purchase any toy that turns you on. I paid $50k for my astronomical equipment, excessively bizarre to most BHs, but I did no...
by msk
Tue Dec 26, 2017 7:18 am
Forum: Personal Finance (Not Investing)
Topic: EU Passport For Cheap College and Other Benefits
Replies: 52
Views: 3493

Re: EU Passport For Cheap College and Other Benefits

AFAIK. Each country in the EU has its own rules for acquiring its citizenship. Each country in the EU then has its own rules on who gets free education or low tier academic fees. But any rule about fees has to apply to all EU citizens. E.g. in the UK you pay the lowest university fees if you have be...
by msk
Tue Dec 26, 2017 2:26 am
Forum: Personal Consumer Issues
Topic: Which cell phone to buy--need good camera?
Replies: 32
Views: 2264

Re: Which cell phone to buy--need good camera?

I have always used high end cameras, e.g. Canon 1Ds, but since I bought a Samsung S6 I do not even bother to carry a camera on vacations any more. I have absolutely been astounded at the quality of a 24"x36" print. Most phones these days do a good job of images displayed on PC monitors but the deal ...
by msk
Tue Dec 26, 2017 1:52 am
Forum: Investing - Help with Personal Investments
Topic: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds
Replies: 96
Views: 11268

Re: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds

An alternative view to AA that makes the cost of sleeping-at-night more obvious than using bonds: I restrict myself to the history of the SP500 between 1966 and 2016, 50 years that encompassed Vietnam and several short and longer market collapses, but of course not the 1930s: SP500 price compounded ...
by msk
Sun Dec 24, 2017 10:13 am
Forum: Personal Consumer Issues
Topic: Mercedes S Class: Reliability and Extended Warranty
Replies: 14
Views: 1396

Re: Mercedes S Class: Reliability and Extended Warranty

Lexus are entirely in a reliability/dealer-service class of their own. I have a 10 year old LS460 that started having the black vinyl dashboard, etc sweating in 100 deg weather. Mentioned this to the local manager (I was placing an order for the new, ugly-grill LS500) and he admitted that it was a k...
by msk
Sun Dec 24, 2017 9:31 am
Forum: Personal Consumer Issues
Topic: Where to stay - Venice & Rome
Replies: 21
Views: 1230

Re: Where to stay - Venice & Rome

IMHO, hotels in both Rome and Venice (and Paris and London and...) are expensive compared to similar-sized cities in the US, so a bit of realism to moderate expectations somewhat will be sensible. Apart from that get your buddies to learn how to use Google Maps on their smart phones. Turned out supe...
by msk
Sun Dec 24, 2017 9:03 am
Forum: Investing - Help with Personal Investments
Topic: S&P 500 Accumulation - What about the big dips?
Replies: 24
Views: 3133

Re: S&P 500 Accumulation - What about the big dips?

There are always ways of hedging in such a manner that you never lose the principal. Many years ago when I was still considering mutual funds there used to be a number of such guaranteed funds from Barclays, HSBC, etc. The idea is quite straightforward. Put the principal in an interest bearing accou...
by msk
Sat Dec 23, 2017 2:38 am
Forum: Investing - Help with Personal Investments
Topic: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds
Replies: 96
Views: 11268

Re: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds

And where, may i ask, will you get the money to buy cheaper shares? I thought many people here on this forum have said they would sell a portion of their bond funds to take advantage of less expensive stock funds. Having no bond funds to sell makes it pretty difficult to buy cheap stock shares. I e...
by msk
Fri Dec 22, 2017 4:20 am
Forum: Investing - Help with Personal Investments
Topic: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds
Replies: 96
Views: 11268

Re: Feels dumb to hold bonds - Currently 70% Stocks 30% Bonds

I was aged 33 40 years ago, and from what I have learnt in those 40 years this is what I would do at age 33: 1. Save and invest 30% of my after tax income, monthly, religiously. 2. Do I expect to stay near Manhattan over the next several years? Buy myself a home worth no more than 3x income; even if...
by msk
Thu Dec 21, 2017 4:08 am
Forum: Investing - Help with Personal Investments
Topic: Just downsized at age 60...input appreciated
Replies: 56
Views: 5058

Re: Downsized at age 60. Input appreciated.

OP is very well off considering he needs only $90k p.a., of which $54k already comes from a pension. I.e. he needs $34k p.a. from his portfolio. My own stance will be far less conservative. Stick the $2.3 million in 100% stocks (US only or worldwide depending on individual appetite/taste). Withdraw ...
by msk
Tue Dec 19, 2017 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Mentally loosening the strings
Replies: 36
Views: 3740

Re: Mentally loosening the strings

Splurging after a lifetime of frugality sometimes leads to woes rather than pleasure. E.g. coughing up for first class air fares would make me more miserable than contented. OK, I compromise onto Business Class. Of course there is stuff out there that one can splurge on without much guilt, perhaps j...
by msk
Tue Dec 19, 2017 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford it: Dodge Challenger
Replies: 122
Views: 6388

Re: Can I afford it: Dodge Challenger

My rules-of-thumb that delivered me to retirement at 55, now 73: 1. Save and invest at least 30% of after tax income. Paying off principal in a mortgage counts in. Interest payments are not saving. Buying consumables like cars is also not saving. 2. Never buy a home worth more than 3x income 3. Neve...
by msk
Tue Dec 19, 2017 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Can rental home generate small income?
Replies: 56
Views: 4157

Re: Can rental home generate small income?

Cashing out 5% of portfolio value annually should last forever and keep up with inflation. What portfolio is this? 100% Total US stock? or some combination of Total US and Total World? Thanks. The 50 year history data I quoted is SP500, but my own gut feeling is that the US has had a tremendous run...
by msk
Tue Dec 19, 2017 2:50 am
Forum: Investing - Help with Personal Investments
Topic: No withholding tax with Interactive Brokers
Replies: 19
Views: 1528

Re: No withholding tax with Interactive Brokers

Perhaps it has something to do with WHAT you hold? E.g. you could experience withholding tax at 30% of dividends from RDS.A (Royal Dutch Shell), but nothing (or at least less than 30%) if you hold RDS.B. It seems that RDS.B dividends are taxed in the Netherlands at 15%(?) rather than sent gross to y...
by msk
Tue Dec 19, 2017 1:02 am
Forum: Personal Finance (Not Investing)
Topic: Buy home with structural issues
Replies: 51
Views: 3697

Re: Buy home with structural issues

Sorry I was not clear. Both first floor and second floor are sinking. They have sunk about 1.5 inches in two years. The crack is in the dry wall and is about 2 feet long, wider than 1/16th of an inch. It’s only on the inner wall, not the outer wall. Doors and windows close without a problem. I will...
by msk
Sun Dec 17, 2017 8:07 am
Forum: Investing - Help with Personal Investments
Topic: 28 Years Old: In the current market, what % into bonds?
Replies: 56
Views: 3616

Re: 28 Years Old: In the current market, what % into bonds?

+1 Young BHs are not looking for a get-rich-quick scheme (define rich...). They are resigned to saving and investing for decades in order to retire relatively early but comfortably. Basically investing in ETFs; and not in individual stocks or highly geared RE or some ridiculously risky project set u...
by msk
Sun Dec 17, 2017 7:32 am
Forum: Personal Finance (Not Investing)
Topic: Buy home with structural issues
Replies: 51
Views: 3697

Re: Buy home with structural issues

Everything was smooth, closing was scheduled for next week, but went to see the home one final time before purchase and I see a crack in the wall. I hired a foundation contractor right away and was told of multiple structural problems in the house including not enough column support in the crawl sp...
by msk
Sat Dec 16, 2017 11:05 pm
Forum: Investing - Help with Personal Investments
Topic: Can rental home generate small income?
Replies: 56
Views: 4157

Re: Can rental home generate small income?

Cashing out 5% of portfolio value annually should last forever and keep up with inflation. What portfolio is this? 100% Total US stock? or some combination of Total US and Total World? Thanks. The 50 year history data I quoted is SP500, but my own gut feeling is that the US has had a tremendous run...