Search found 808 matches

by msk
Sun Jul 15, 2018 1:36 am
Forum: Personal Finance (Not Investing)
Topic: Would you trade experiences in your youth for early retirement
Replies: 81
Views: 5136

Re: Would you trade experiences in your youth for early retirement

Save and invest 30% of your after-tax income, from right out of college. There is very little you have to forego if your income were 30% less than it is today. Is your buddy who is a school teacher and who makes 50% less than you missing out? When I got married we had to sleep on a mattress on the f...
by msk
Sat Jul 14, 2018 9:26 am
Forum: Investing - Help with Personal Investments
Topic: Received $1m windfall with additional upside; looking for feedback on plan to hedge against market correction
Replies: 36
Views: 5314

Re: Received $1m windfall with additional upside; looking for feedback on plan to hedge against market correction

Slight inconsistency: looking forward to equity grants in the next couple of years but terrified of a stock market collapse. A major stock market collapse ought to threaten both the equity grant and your job? OK, that sounds excessively pessimistic? But only with such extreme pessimism should one go...
by msk
Tue Jul 10, 2018 12:56 am
Forum: Personal Finance (Not Investing)
Topic: Estate Planning and Charity
Replies: 18
Views: 1309

Re: Estate Planning and Charity

I am averse to the idea of bequeathing to charities upon my death and strongly believe that MY charitable donations should be while I am alive and I am actually sacrificing something of value to me, giving it to somebody less fortunate. My biggest donation to date was to my alma mater, 7 figures. Th...
by msk
Tue Jul 10, 2018 12:26 am
Forum: Investing - Help with Personal Investments
Topic: Want to diversify account held in my name [inherited Canadian stock]
Replies: 8
Views: 385

Re: Want to diversify account held in my name [inherited Canadian stock]

Personally, at your age, I would NOT sell the stock. If you sell, you'll get clobbered for tax. You are just starting out in life; treat that as your Extreme-Emergency Fund. You can, if you wish, activate Margin on that brokerage account. When you have a minor Emergency you simply take a Margin Loan...
by msk
Sun Jul 08, 2018 3:23 am
Forum: Personal Consumer Issues
Topic: Which advanced tech is necessary in cars?
Replies: 86
Views: 4301

Re: Which advanced tech is necessary in cars?

We own a 2018 Lexus LS500 and a 2018 Mercedes S560, both bought on special order and as loaded with toys as possible (except for a fridge in the Mercedes. I felt they were charging too much for that). Lousy on both: Searching the Navigation systems for a location you wish to go to. Google Maps far s...
by msk
Sat Jul 07, 2018 10:18 am
Forum: Investing - Theory, News & General
Topic: Which is the best calculator?
Replies: 8
Views: 1197

Re: Which is the best calculator?

Yes. That is the median forecast (50 percentile). Think of it this way. You ALWAYS have 95% of your portfolio reinvested to grow in subsequent years. It can never be withdrawn to nil. The more pessimistic 25 percentile forecast allows a 3.5% WR of the annual value of the portfolio, i.e. your portfol...
by msk
Sat Jul 07, 2018 9:38 am
Forum: Investing - Theory, News & General
Topic: Which is the best calculator?
Replies: 8
Views: 1197

Re: Which is the best calculator?

https://www.portfoliovisualizer.com/monte-carlo-simulation I have a good feel for Monte Carlo simulations from my job prior to retirement. Others may not feel as comfortable with handling probabilities and uncertainties. I am 100% in stocks and I plan on never withdrawing >5% of my portfolio in any ...
by msk
Sat Jul 07, 2018 9:29 am
Forum: Personal Finance (Not Investing)
Topic: What rate of return are you using for retirement projections?
Replies: 99
Views: 8859

Re: What rate of return are you using for retirement projections?

What matters is the REAL rate of return. It's lousy with bonds and better with stocks. Normally negative with cash. Your AA matters. Market behavior matters. I suggest you use https://www.portfoliovisualizer.com/monte-carlo-simulation to gauge the probability distribution of likely outcomes. Persona...
by msk
Sat Jul 07, 2018 1:09 am
Forum: Investing - Help with Personal Investments
Topic: Can you help me figure out how much emergency fund $ I REALLY need?
Replies: 38
Views: 2838

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

Zero Emergency Fund would be my approach. Activate Margin in your brokerage account and that can serve as an EF without having to sell anything. IB has very low interest rates on Margin loans, currently under 3.5% on small amounts dropping to under 2.5% on large amounts. Besides, your wife will sur...
by msk
Fri Jul 06, 2018 3:09 am
Forum: Investing - Help with Personal Investments
Topic: Can you help me figure out how much emergency fund $ I REALLY need?
Replies: 38
Views: 2838

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

Zero Emergency Fund would be my approach. Activate Margin in your brokerage account and that can serve as an EF without having to sell anything. IB has very low interest rates on Margin loans, currently under 3.5% on small amounts dropping to under 2.5% on large amounts. Besides, your wife will sure...
by msk
Thu Jul 05, 2018 4:11 am
Forum: Personal Finance (Not Investing)
Topic: Can I finance a new home abroad (Carribean)???
Replies: 53
Views: 4244

Re: Can I finance a new home abroad (Carribean)???

I have dabbled in RE in various countries, and also in stocks and index funds. For somebody under 40 I'd say go for it but do be careful! What I learnt over the past 40 years of owning multiple homes and rental units: Take NO loans except in the country where the property is located, secured against...
by msk
Thu Jul 05, 2018 3:16 am
Forum: Investing - Theory, News & General
Topic: What are equivalent total market index funds for foreigners?
Replies: 7
Views: 705

Re: What are equivalent total market index funds for foreigners?

Avoid all US based funds and ETFs because of the 30% withholding tax on dividends and the dreaded threat of estate tax. Ireland based funds and ETFs should be OK, but check for Mexico/Brazil tax issues separately. I use two approaches in different brokerage accounts: Vanguard VWRD as an ETF to cover...
by msk
Wed Jul 04, 2018 8:22 am
Forum: Personal Finance (Not Investing)
Topic: anyone working overseas? pros-cons?
Replies: 22
Views: 2380

Re: anyone working overseas? pros-cons?

I worked all over the world employed by the same mega corp, a Fortune 10. Your acquaintances/friends tend to be fellow employees and their families. You meet, say, in Saudi Arabia and 15 years later in Australia, or wherever. Compensation is always as expected, the more difficult the assignment/loca...
by msk
Wed Jul 04, 2018 2:39 am
Forum: Investing - Help with Personal Investments
Topic: Few Questions About Early Retirement
Replies: 13
Views: 1952

Re: Few Questions About Early Retirement

At age 35 and working in tech you must be quite relaxed about market volatility, or employment security. Personally, I would just put all my assets (less dwelling) into 100% stocks and let it grow. You have flexibility as to when you retire, so volatility is no big deal. I would retire very early wh...
by msk
Wed Jul 04, 2018 1:59 am
Forum: Investing - Help with Personal Investments
Topic: Why not go 100% stocks?
Replies: 116
Views: 11434

Re: Why not go 100% stocks?

I see no negative against 100% stocks except nervousness. I am 100%, worldwide by free market weight. Age 74, NW in low 8 figures. During the past two market collapses I used margin to purchase one-year Call Options once the collapse fall went beyond 25% from peak. You do not need cash nor bonds to...
by msk
Tue Jul 03, 2018 4:10 am
Forum: Investing - Help with Personal Investments
Topic: Why not go 100% stocks?
Replies: 116
Views: 11434

Re: Why not go 100% stocks?

I see no negative against 100% stocks except nervousness. I am 100%, worldwide by free market weight. Age 74, NW in low 8 figures. During the past two market collapses I used margin to purchase one-year Call Options once the collapse fall went beyond 25% from peak. You do not need cash nor bonds to ...
by msk
Tue Jul 03, 2018 3:53 am
Forum: Investing - Help with Personal Investments
Topic: Expected returns for 80/20 stock bond for next 10 years.
Replies: 169
Views: 12072

Re: Expected returns for 80/20 stock bond for next 10 years.

I spent part of my career working with probabilities and Monte Carlo simulations. I realize that some BHs feel it's all bunk, but I love to use such simulations in decision making. Opinions differ... Anyway, starting with a single $ and using 80% Total US Stock Market and 20% Total US Bond Market an...
by msk
Mon Jul 02, 2018 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Business valuation opinions
Replies: 17
Views: 1233

Re: Business valuation opinions

Sorry for being abrupt, but frankly I fail to see what it is that you have to sell. A client list? Patented, hard to reproduce software way ahead of the market? As far as I can see, the two partners ARE the business. Once they leave, abruptly at the time of sale? the business is worth nothing. I hav...
by msk
Mon Jul 02, 2018 7:39 am
Forum: Personal Finance (Not Investing)
Topic: Affording a $1.8-2M house
Replies: 54
Views: 9112

Re: Affording a $1.8-2M house

Buying a house worth @ 2.5x combined income for a couple is fine. 3x single income is also fine. If one of you loses his/her job it's going to be miserable anyway, regardless of the financial mess. YOLO! Do not spend a major chunk of your life in a miserable commute.
by msk
Sun Jul 01, 2018 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Smart to transition to rental property?
Replies: 10
Views: 1263

Re: Smart to transition to rental property?

I owned 30 rental units for some 30 years and my suggestions are: You have already made a mental assessment as to whether this unit is attractive to keep for decades or not. If you are so positive about it, are you attracted enough to purchase another ten units? No? Then get out of the rental busine...
by msk
Fri Jun 29, 2018 9:23 am
Forum: Investing - Help with Personal Investments
Topic: Help an international graduate student
Replies: 12
Views: 855

Re: Help an international graduate student

Not Ameritrade. You will be restricted to buying ETFs that are buy-able by US citizens. Better go for Interactive Brokers. If and when you move abroad you will be able to continue using the same account to buy ETFs that are not open to US citizens (or tax residents). Let us say you buy Vanguard Tota...
by msk
Wed Jun 27, 2018 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Charity giving how much? How much do other retirees give?
Replies: 44
Views: 3952

Re: Charity giving how much? How much do other retirees give?

I never benefited tax-wise from charitable giving, but I feel that a lot depends on your age. While employed I used to give around 5% of my job income, but for many years my investment income was considerably higher and I wanted that to accumulate further. Post retirement, I felt that I had been too...
by msk
Wed Jun 27, 2018 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: MBA Options
Replies: 46
Views: 4178

Re: MBA Options

I'd mainly use this MBA as a way to get deeper into the finance field. Right now I'm Quality/Payroll. I'm not sure why UMD doesn't have concentrations, I could easily do ACTG, BA, FM, or PM concentrations and do more work at my company. I think you will be wasting a lot of time, money and effort to...
by msk
Mon Jun 25, 2018 8:34 am
Forum: Investing - Theory, News & General
Topic: reliable investment calculator with dividends reinvested
Replies: 13
Views: 1759

Re: reliable investment calculator with dividends reinvested

is this something that i can write in simple Excel? LoL. You can write almost anything in Excel. It may not be the most efficient way, but it'll get you there. I even drew up the plans for a 14,000 sq ft house using Excel. Because I was too cheap to pay $700+ on Autocad and then learn how to use it...
by msk
Sun Jun 24, 2018 8:39 am
Forum: Investing - Theory, News & General
Topic: Heavy in equities?
Replies: 46
Views: 4690

Re: Heavy in equities?

Given current valuations: If one were (oddly) required to sell all of their equity holdings, with no restrictions on subsequent actions: would you buy back into the stock market and at what percentage? I don’t know how I would react, but I suspect that it would be at a level lower than my current A...
by msk
Sat Jun 23, 2018 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Can you retire on $2M?
Replies: 173
Views: 20664

Re: Can you retire on $2M?

What is important is to be able to cut back annual expenditure following a major market fall. I checked this against history for 1966 to 2016 (50 years) and also using MonteCarlo simulations as Median Forecast. Withdraw 5% of the then CURRENT 100% Stocks portfolio annually. The remaining portfolio w...
by msk
Sat Jun 23, 2018 11:24 am
Forum: Investing - Theory, News & General
Topic: Heavy in equities?
Replies: 46
Views: 4690

Re: Heavy in equities?

One could put 30% in cash under the mattress. The returns would not be much worse than 30% in bonds. I am 100% in stocks and have been so with my liquid funds since the 1980s. Since the 1970s I also had RE but sold it all off upon retirement. Happy to be 100% stocks and waiting for a 30% to 50% mark...
by msk
Sat Jun 23, 2018 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Minimizing my money worries in retirement
Replies: 17
Views: 2695

Re: Minimizing my money worries in retirement

Too complex and unnecessary. My way: simple spreadsheet listing my NW updated monthly (nothing better to do but quite unnecessary anyway; annual frequency is enough). At each end year check total current NW against NW a year ago. That gives a sort of WR. Retired for past 18 years and NW has been gro...
by msk
Thu Jun 21, 2018 6:36 am
Forum: Investing - Help with Personal Investments
Topic: What should be my stock/bond allocation?
Replies: 21
Views: 1593

Re: What should be my stock/bond allocation?

If you can live and fund your kids' college with only 5% p.a. withdrawal of your NW today, I 'd put aside one year's expenditure (CD quarterly ladder) and put the rest in 100% stocks. Repeat each year till kids are all out of college. But that's my tolerance of market volatility. YMMV. Nevertheless ...
by msk
Thu Jun 21, 2018 6:26 am
Forum: Personal Finance (Not Investing)
Topic: Is the first 100k really the hardest?
Replies: 156
Views: 42872

Re: Is the first 100k really the hardest?

LOL. There is no magical threshold. The first $10k makes it easier to get to $20k. But one day in the far future you may have such high NW that your annual expenditure is small by comparison; say, when your NW gets to $10million. Annual investment income roughly at $500k real terms and you spend onl...
by msk
Wed Jun 20, 2018 7:50 am
Forum: Personal Consumer Issues
Topic: Air conditioner compressor replacement cost
Replies: 31
Views: 2861

Re: Air conditioner compressor replacement cost

Get a second quote. If still high $ get a quote for a completely new unit. If the repair quote is more than half of the new replacement I'd just go all new. But that would be very unusual for a large unit. One third cost of new probably more typical. I recently replaced a 2 ton split unit at around ...
by msk
Mon Jun 18, 2018 6:41 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 152
Views: 11894

Re: Which boglehead rule do you break--and are ok with

FIBoston wrote:
Mon Jun 18, 2018 6:34 am
100% equities. yolo.
+1
by msk
Mon Jun 18, 2018 6:35 am
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 63
Views: 3968

Re: A different theoretical view of SWR

I suspect that many people who discuss WR in detail already have more than enough to retire on. And are already retired. The query to myself (before I discovered this forum) was how high should my WR be so that I neither expose myself to ever running out of money no matter how long I live, and also ...
by msk
Fri Jun 15, 2018 8:27 am
Forum: Personal Finance (Not Investing)
Topic: best way to receive large sum of money from another country
Replies: 34
Views: 2442

Re: best way to receive large sum of money from another country

Too much attention is being paid to the currency exchange charges compared to daily or monthly variations in the exchange rate itself. I regularly transfer 6 figure sums into CAD. The currency charges amounto a third of one percent or less but the exchange rate can often fluctuate more than a full p...
by msk
Tue Jun 12, 2018 5:35 pm
Forum: Investing - Help with Personal Investments
Topic: Investing when someone else gets all dividends
Replies: 80
Views: 5009

Re: Investing when someone else gets all dividends

If the future will imitate history over the past 50 years, then a 100% stocks portfolio can pay out 5% of portfolio value (including dividends) annually and the remaining portfolio should keep up with inflation forever. I suspect that the person who had set up the trust was thinking of more like a b...
by msk
Tue Jun 12, 2018 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: Why don't we index the Nasdaq too?
Replies: 16
Views: 2105

Re: Why don't we index the Nasdaq too?

Recall the dot com fever? I had a load of QQQ because I could not fathom which tech stock to go heavy on. Then the crash of the dot com bubble? If I recall correctly, I lost about 60%. Now I go Whole Market Whole World :greedy
by msk
Tue Jun 12, 2018 11:51 am
Forum: Investing - Theory, News & General
Topic: You Can Market Time At Valuation Extremes
Replies: 64
Views: 7357

Re: You Can Market Time At Valuation Extremes

The problem is that what is considered "extreme" has changed over the years... Really? Humans, in seemingly all countries where records are available, seem to have demanded 5+% as real return on capital for the past 300 years. If you believe that we are not going to get that in the present environm...
by msk
Mon Jun 11, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Home equity as part of retirement asset
Replies: 24
Views: 1527

Re: Home equity as part of retirement asset

If it makes a difference to your plans, include it. Let us assume you have $2 million paid off equity in your home. That makes a difference to most people's planning. But, say, it's only $100k. Nope. You still have to live somewhere. With the former $2 million you can always move to a lower cost hou...
by msk
Mon Jun 11, 2018 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Balancing the Burden and the Benefit of Wealth
Replies: 11
Views: 1557

Re: Balancing the Burden and the Benefit of Wealth

LoL. Stage 1: have enough to be FI. A few million $ Stage 2: Have enough to ensure your kids have comfortable lives. 10+million $ Stage 3: Have enough to ensure that your grandkids have comfortable lives. 50+million $ It never ends... Start with few kids to get there quickly. 7 kids? you have a prob...
by msk
Mon Jun 11, 2018 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Strategy for a prolonged bear market
Replies: 65
Views: 5603

Re: Strategy for a prolonged bear market

I have a COLA pension that meets all my basic needs. My portfolio is 100% stocks. If the market drops 30 to 40% from peak I spend $50k to buy one year Calls. Dropping further to 40 to 50% from the same peak I buy another $50k (all on margin since I do not keep cash or bonds) one year Calls. Each $50...
by msk
Sat Jun 09, 2018 11:43 am
Forum: Personal Consumer Issues
Topic: ?$ Bid for Upgrade to Business Class (per flight hour)
Replies: 17
Views: 1575

Re: ?$ Bid for Upgrade to Business Class (per flight hour)

Just an update. Finally did not bother to make a bid for an upgrade. The 5 hour flight out of Toronto was Air Canada Rouge (the cheapo version of Air Canada?) Ended up seated next to the Business Class section. Glad I saved my $. The Business Class is very basic, wider seats and free food, but I dou...
by msk
Sat Jun 02, 2018 3:59 pm
Forum: Personal Consumer Issues
Topic: Home elevator
Replies: 23
Views: 2115

Re: Home elevator

If you are building a house and do not need an elevator now you can prepare the house by putting in the shaft and pit. A shaft can be disguised as stacked closets until you need to install the elevator hardware. Actually I did consider this. Until I asked how long it would take to install one if my...
by msk
Sat Jun 02, 2018 3:52 pm
Forum: Personal Consumer Issues
Topic: Home elevator
Replies: 23
Views: 2115

Re: Home elevator

I have an elevator in my home, built 6 years ago; and I have several friends who also have home elevators. Before cutting corners in the design, I suggest you verify what are you really saving. E.g. a 3-stop elevator costs very little more than a 2-stop elevator; so I installed one that has 3 stops,...
by msk
Tue May 29, 2018 3:25 am
Forum: Personal Consumer Issues
Topic: Solid Raw wood from South Africa infestation?
Replies: 23
Views: 2503

Re: Solid Raw wood from South Africa infestation?

I had a small carving from India that had similar boreholes. No soaking with insecticides worked, so I boiled it in water for several minutes. That worked. Did not think of freezing it. But if freezing works, then it's less likely to damage the carving. Try freezing first, at least several hours, th...
by msk
Sun May 27, 2018 1:43 am
Forum: Investing - Help with Personal Investments
Topic: Indexing [investor in Emerging Market country]
Replies: 7
Views: 820

Re: Indexing [investor in Emerging Market country]

Opening an account with Interactive Brokers will very likely solve all your problems. E.g. If your local taxes target dividends, then just buy accumulating (non dividend paying ETFs) so you have only capital gains taxed only when you start cashing in after retirement. I am very wary of funds that ta...
by msk
Sun May 27, 2018 12:20 am
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 152
Views: 12680

Re: Helping Adult Children (but not too much)

As the parents age there is less time for tinkering. I am 74 :annoyed 4 kids, ages 44, 41, 22, 20. Oldest pair got the lump-sum treatment (college paid + lump sum at marriage. Value today around $160k each to cover wedding and/or deposit on home. They used the money wisely, mostly on their homes not...
by msk
Fri May 25, 2018 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest $1.4 million inheritance?
Replies: 32
Views: 4451

Re: How to invest $1.4 million inheritance?

You already have your finances sorted out before receiving the inheritance. If it were me, I would just put the whole lot into VT, today. Worldwide stocks by free market weight. Post retirement I will be looking forward to plenty of capital appreciation, and as long as I keep my annual WR to 5% or l...
by msk
Fri May 25, 2018 4:23 am
Forum: Investing - Theory, News & General
Topic: Is inflation the greatest risk to retirement portfolios?
Replies: 100
Views: 8386

Re: Is inflation the greatest risk to retirement portfolios?

Tips would protect what you have already earned. But it's HARD to earn through labor! All other investments are targeted at generating earnings over and beyond what you can earn in a daily-grind job. My personal target in my youth had been that my job income during my 40s should be smaller than my "...
by msk
Fri May 25, 2018 4:08 am
Forum: Investing - Theory, News & General
Topic: If the US market cap was 5% instead of 52%, would the US vs International conversation change?
Replies: 40
Views: 3027

Re: If the US market cap was 5% instead of 52%, would the US vs International conversation change?

Pension funds are also a major factor. I suspect that in most countries government pension funds are directed to invest primarily, if not entirely, in local markets, be it stocks or RE.
by msk
Fri May 25, 2018 3:55 am
Forum: Investing - Theory, News & General
Topic: If the US market cap was 5% instead of 52%, would the US vs International conversation change?
Replies: 40
Views: 3027

Re: If the US market cap was 5% instead of 52%, would the US vs International conversation change?

As is often the case, it all depends... I am resident in a country with a very, very tiny stock market. Which means that I can pay attention to ALL the stocks, on the daily news, quarterly reports, etc. This market is so tiny that it does not even appear as Frontier. Yet, because of the lack of soph...