Search found 55 matches

by UKFred
Thu Jul 11, 2019 5:25 am
Forum: Non-US Investing
Topic: Have recently acquired lump sum to invest [UK]
Replies: 17
Views: 1032

Re: Have recently acquired lump sum to invest [UK]

You can only put as much into a SIPP as your taxable income in the year (subject to 40K or less annual allowance + carry forwards). So unless your annual income and your lump sum are of similar magnitude, you can’t put much of the lump sum into a SIPP. The other thing to think about is that with a S...
by UKFred
Wed May 29, 2019 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Fun paid jobs after FIRE
Replies: 180
Views: 17917

Re: Fun paid jobs after FIRE

I prefer the acronym FIRE = Financial Independence/Recreational Employment
by UKFred
Sat May 25, 2019 1:54 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage almost paid off
Replies: 31
Views: 3599

Re: Mortgage almost paid off

In the US, the deed will generally be recorded in a "book" held by some unit of government. (For me this is the county government building which is paradoxically located in the biggest city in the county even though the county doesn't control the city.) As the owner, you'll get some sort of paper d...
by UKFred
Fri May 24, 2019 12:50 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage almost paid off
Replies: 31
Views: 3599

Re: Mortgage almost paid off

First of all, congrats. In the UK, you are generally advised to leave a small amount outstanding on the mortgage (say £100). The bank then continues holding the deeds because you haven't paid off the mortgage. Secure storage for a tiny amount of interest. Is that not something followed in the US?
by UKFred
Sat May 11, 2019 3:25 am
Forum: Personal Consumer Issues
Topic: 256 Gbytes for IPhone! How much further?
Replies: 29
Views: 2295

Re: 256 Gbytes for IPhone! How much further?

An IBM 5MB hard drive in 1956...

Image
by UKFred
Wed May 01, 2019 12:31 am
Forum: Personal Consumer Issues
Topic: EXTREMELY frugal things from our parents and grandparents
Replies: 110
Views: 10375

Re: EXTREMELY frugal things from our parents and grandparents

One of my uncles used to borrow the previous day's newspaper from a neighbour and read it. One day I offered to give him that day's paper and my uncle refused, saying that he wouldn't have anything to read the next day.
by UKFred
Wed Apr 24, 2019 11:44 am
Forum: Personal Investments
Topic: Techniques for doing NOTHING?
Replies: 48
Views: 4972

Re: Techniques for doing NOTHING?

Great question and something I recognise in myself as well. I think the best way to beat this is to embrace it. Put most (95%) in your preferred low cost funds for your preferred AA. Then play with your other 5% and try to beat the other 95%. You’ll learn a lot about yourself and the markets in the ...
by UKFred
Sat Apr 13, 2019 7:59 am
Forum: Investing - Theory, News & General
Topic: ETFs vs. Mutual Funds ("Bogleheads Mentioned in the NYT")
Replies: 59
Views: 8937

ETFs vs. Mutual Funds ("Bogleheads Mentioned in the NYT")

In the UK, most platforms charge a percentage fee to hold mutual funds and a flat fee to hold ETFs. It makes more sense to use ETFs than their equivalent funds.

Just because they can be traded doesn’t mean that they have to be.
by UKFred
Sat Apr 06, 2019 2:58 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Benefits Of International Diversification
Replies: 86
Views: 7401

Re: Larry Swedroe: Benefits Of International Diversification

Today the US market capitalisation is approximately 50% of world market capitalisation. One can easily imagine a scenario in which the US market cap percentage goes to 30% (say) in 20 or 25 years, not because the US has done badly, but because other countries have done better. In that case, would yo...
by UKFred
Sat Apr 06, 2019 2:36 am
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 9531

Re: The "dividend preference anomaly"

I have a theory: if you think that you own 100 shares of Apple, the price of which bounces up and down in ways that you cannot predict or control, spending a dividend makes sense (psychologically) because you haven’t lost anything when you do so. You still own 100 shares of Apple. Moving on from psy...
by UKFred
Mon Mar 11, 2019 6:23 pm
Forum: Personal Investments
Topic: Why not 50 Stocks- 50 Bonds, wait for crash then go 90-10?
Replies: 54
Views: 4538

Re: Why not 50 Stocks- 50 Bonds, wait for crash then go 90-10?

1. Markets don’t fall in a straight line. The day after a significant drop and just as you are thinking of getting into the game, the market will post one of its biggest gains ever. And then it will crash again. And rise. Redux. 2. It’s psychologically very difficult to increase allocation into a fa...
by UKFred
Sun Mar 10, 2019 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: simple will for a catastrophic event
Replies: 88
Views: 3817

Re: simple will for a catastrophic event

In a way, making a 'simple' will is likely to cause more problems than actually dying intestate. Given that it seems to be a nuclear family with no ex spouses or step children involved, the intestacy laws will be mostly fair. Though of course there will be delays in getting probate and lawyers will ...
by UKFred
Sat Feb 23, 2019 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: I have the answer - 4% plus 2 years (or 3.7% if you prefer)
Replies: 81
Views: 6931

Re: I have the answer - 4% plus 2 years (or 3.7% if you prefer)

It’s a good idea. I would modify it slightly to say that you are FI at 4%. Then you work for eighteen months. If the market tanks big time and your portfolio tanks, you have the option to continue working because you haven’t yet left the workforce. Otherwise, you retire as planned. This would give y...
by UKFred
Tue Feb 19, 2019 1:58 am
Forum: Investing - Theory, News & General
Topic: NYT opinion piece calling for more investigation of index providers
Replies: 21
Views: 3842

What's in your index?

[merged into existing thread - moderator prudent]

I can't make out whether this is self-serving or not... https://www.nytimes.com/2019/02/18/opin ... e=Homepage
by UKFred
Sat Feb 16, 2019 2:35 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 3353
Views: 307569

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Has anyone implemented (or considered implementing) this strategy in Europe? If so, which ETFs are you using? These days most europeans do not have access to US domiciled ETFs, so I was wondering if anyone knows good Europe domiciled ETFs to implement this strategy? I am implementing this with 3UKL...
by UKFred
Mon Feb 11, 2019 1:46 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 3353
Views: 307569

Re: Strategy Optimization

To replicate that result, you would go to rolling portfolio optimization and use the ticker UPRO and TMF, not the constructed indexes going back to the 80s. You would then select monthly (or quarterly or annual, all show the same 100% cash in this case) optimization with a 12 month lookback period....
by UKFred
Mon Feb 11, 2019 3:36 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 3353
Views: 307569

Re: Strategy Optimization

Within the mostly fun department. The best portfolio is the one optimizing monthly based on previous 12 months. Provided Portfolio == 40/60 3x Levered. Incidentally, since cash is an option. The model is in cash now. Cheers :greedy Hdas- your analysis is quite interesting. Could you elaborate a bit...
by UKFred
Sun Feb 03, 2019 4:15 pm
Forum: Investing - Theory, News & General
Topic: The most important driver of retirement portfolio success (having enough nestegg at retirement)
Replies: 52
Views: 5999

Re: The most important driver of retirement portfolio success (having enough nestegg at retirement)

A high savings rate (rather than absolute amount saved) is a better indicator of retirement success because the savings rate works in two different ways to guide you to success: first, and obviously, a higher savings rate means you are saving more money, and all things being equal, more money is bet...
by UKFred
Wed Jan 30, 2019 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Why doesn't a lot of money feel like a lot of money?
Replies: 205
Views: 22645

Re: Why doesn't a lot of money feel like a lot of money?

If it helps, convert it to brand new Cadillacs. They run around $50,000 so think of the bonus as how many ever brand new Cadillacs it would buy. If it is quite a large number them and you are overwhelmed, bump it up to Mercedes-Benzes ($100,000), Bentleys ($300,000) or modest NYC apartments ($1MM)....
by UKFred
Sun Jan 13, 2019 2:10 pm
Forum: Investing - Theory, News & General
Topic: Anyone beating the index instead of buying it?
Replies: 51
Views: 5654

Re: Anyone beating the index instead of buying it?

My portfolio is split into two - half in broad UK and Global ex-UK funds that I let run and the other half in individual stocks that I manage myself by buying in and out. I have been doing this for about fifteen years, but initially the amounts were so small in relation to my salary that I didn't re...
by UKFred
Fri Jan 11, 2019 2:54 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Historical Data Can Comfort
Replies: 6
Views: 864

Re: Larry Swedroe: Historical Data Can Comfort

If you're a German in December 1941, and you see Germany declare war on the United States, you convert your life savings to gold and bury it someplace on the family farm. But then you would have the bogleheads telling you to stay the course and your decision to bury gold will be wrong for the next ...
by UKFred
Sun Jan 06, 2019 12:11 pm
Forum: Personal Consumer Issues
Topic: travel to UK and Brexit
Replies: 8
Views: 786

Re: travel to UK and Brexit

If you are not travelling to or from the EU, it should be no different to now. Even the EU has decided to keep aeroplanes flying as normal for at least six months (though they have reserved the right to change their minds unilaterally). The UK will be absolutely determined to minimise disruption at ...
by UKFred
Sun Dec 30, 2018 1:05 pm
Forum: Personal Investments
Topic: Am I retirement ready?
Replies: 63
Views: 8132

Re: Am I retirement ready?

It looks like you have only been making serious money for the last few years and it seems a shame to walk away from that too quickly unless you really want to or have to. Your real issue could be the weekly commute. Have you explored whether your wife could move to where you work? If so, that could ...
by UKFred
Fri Nov 09, 2018 4:02 am
Forum: Personal Finance (Not Investing)
Topic: How much money are you leaving your kids after you die?
Replies: 234
Views: 16661

Re: How much money are you leaving your kids after you die?

I will tell you when I find out:
1. How long my wife and I live
2. How inflationary those years are
3. How the markets perform
4. Whether we need long term care and for how long...

:confused
by UKFred
Fri Nov 02, 2018 4:39 pm
Forum: Personal Investments
Topic: Easy retirement income method.
Replies: 20
Views: 4046

Re: Easy retirement income method.

UKFred, From your name, I'm assuming you are not from the United States. (I didn't look at your profile until just now.) In the U.S., dividends from most U.S. companies are "qualified" dividends which are taxed the same as long term capital gains, normally 15% at the U.S. Federal level, not as ordi...
by UKFred
Wed Oct 31, 2018 5:29 pm
Forum: Personal Investments
Topic: Easy retirement income method.
Replies: 20
Views: 4046

Re: Easy retirement income method.

Relying on dividend income rather than share sales keeps cropping up. Relying on dividend income can work - mainly because that keeps the WR low. There are three main issues with relying on dividends for retirement income: 1. You know what income you need. Dividends are decided by company boards who...
by UKFred
Sun Oct 28, 2018 4:24 am
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1247
Views: 117719

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

- Adding back assumed dividend yield of 2.5% gets me very close to the total return of international stocks for US investor of 4.4% I mentioned earlier, so the math works out. .... The main culprit outside Japan is the UK - Valuethinker may have some insight into that. I do think that the European ...
by UKFred
Thu May 31, 2018 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Intra-family Mortgage Considerations
Replies: 3
Views: 588

Re: Intra-family Mortgage Considerations

I think that if you discuss upfront what happens in various circumstances - interest rate changes, parents needing money, you moving house, death in family - and these are written down, then an intra-family mortgage can make sense. This is especially the case when you are a single child as this take...
by UKFred
Thu Mar 15, 2018 3:21 am
Forum: Personal Consumer Issues
Topic: Stephen Hawking - how would he have fared in America
Replies: 9
Views: 1947

Re: Stephen Hawking - how would he have fared in America

Agreed, it’s only tangentially related to investing. I only asked here because I am not on any other American forum and there is a lot of interesting discussion here related to healthcare and long term care with regards to retirement.
by UKFred
Thu Mar 15, 2018 2:19 am
Forum: Personal Consumer Issues
Topic: Stephen Hawking - how would he have fared in America
Replies: 9
Views: 1947

Stephen Hawking - how would he have fared in America

One of the most brilliant minds of all time, the physicist Stephen Hawking, died earlier this week. He was in his early twenties when he was diagnosed with ALS, the progressive motor neurone disease that crippled him and eventually left him unable to move anything except a finger and his eyelids. He...
by UKFred
Wed Mar 14, 2018 5:11 pm
Forum: Non-US Chapters
Topic: Is there a U.K bogleheads Chapter??
Replies: 29
Views: 5368

Re: Is there a U.K bogleheads Chapter??

Has anyone volunteered to be the coordinator?
by UKFred
Tue Mar 13, 2018 3:17 pm
Forum: Non-US Chapters
Topic: Is there a U.K bogleheads Chapter??
Replies: 29
Views: 5368

Re: Is there a U.K bogleheads Chapter??

And me!
by UKFred
Wed Jan 31, 2018 9:45 am
Forum: Personal Finance (Not Investing)
Topic: How much have kids added to your personal finance/expenses?
Replies: 111
Views: 11204

Re: How much have kids added to your personal finance/expenses?

24.5% of your income, whether that is 10K or it is 10M. :D
by UKFred
Fri Jan 26, 2018 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Warning on "free" Morningstar trial
Replies: 37
Views: 9475

Re: Warning on "free" Morningstar trial

... I used a disposable credit card number with $1 limit and one-time use just in case they attempt to charge it. Is there any reason to think that Morningstar will charge your card after you’ve cancelled the account? Or that your bank will not reverse the charges if Morningstar do make that charge?
by UKFred
Wed Jan 24, 2018 12:52 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 12414
Views: 2144398

Re: U.S. stocks in freefall

sreynard wrote:
Wed Jan 24, 2018 12:48 pm
S&P 500 down 28%! It's a blood bath!

[Edit] Oh! That's 0.28%.
28% would be a bloodbath!
by UKFred
Mon Jan 22, 2018 2:54 am
Forum: Personal Investments
Topic: 4% Rule Clarification in regard to taxes
Replies: 6
Views: 1218

Re: 4% Rule Clarification in regard to taxes

PFInterest wrote:
Sun Jan 21, 2018 10:34 pm
Everything must be included in expenses....including taxes.
And asset management fees, if any... so, suddenly that 1% AUMF is a quarter of your entire annual income :oops:
by UKFred
Mon Dec 11, 2017 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off a mortgage with an almost non-existent rate
Replies: 15
Views: 1799

Re: Paying off a mortgage with an almost non-existent rate

From a purely financial point of view, it makes no sense to pay off the mortgage because you can probably earn more (post tax) than your monthly payments. But there is another aspect to consider: How likely is it that you will diligently invest that money month-on-month? Will your expenses slowly cr...
by UKFred
Thu Nov 09, 2017 7:03 pm
Forum: Personal Investments
Topic: Best Retirement Planning Software?
Replies: 6
Views: 1540

Re: Best Retirement Planning Software?

Microsoft Excel? :mrgreen:
by UKFred
Mon Oct 23, 2017 2:29 am
Forum: Investing - Theory, News & General
Topic: Wade Pfau’s new book: How Much Can I Spend in Retirement?
Replies: 58
Views: 16372

Re: Wade Pfau’s new book: How Much Can I Spend in Retirement?

Yes, I have read the book and it is an excellent summary of many different withdrawal strategies from a portfolio. It takes Bengen's 4% + inflation as the baseline (while examining why it is inefficient). The early chapters summarise the issues faced in financing a long retirement from a fixed pot o...
by UKFred
Mon Oct 09, 2017 12:56 am
Forum: Non-US Investing
Topic: Moving to the UK from the US: tax advice requested
Replies: 10
Views: 1110

Re: Moving to the UK from the US: tax advice requested

If you are resident in the UK, you have to pay tax on UK income or any money you bring into the UK. You should read this note from Her Majesty's Revenue and Customs (HMRC): https://www.gov.uk/tax-foreign-income/n ... -residents
by UKFred
Tue Sep 26, 2017 12:37 pm
Forum: Personal Consumer Issues
Topic: Lifestyle Creep
Replies: 142
Views: 15649

Re: Lifestyle Creep

The English footballer George Best said it best(!): I spent half my money on women and wine. The rest I wasted.
by UKFred
Thu Sep 14, 2017 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Brother in College Co-Signing w/ Buddy for Duplex
Replies: 41
Views: 4012

Re: Brother in College Co-Signing w/ Buddy for Duplex

I may be mistaken, but from the description, it sounds a bit like mortgage fraud. Now that's a strong accusation, so let me explain my assumptions: The 5% down payment (deposit in UK terms) is for owner-occupiers, which is why your friend is looking for married co-workers to co-sign. Once you buy it...
by UKFred
Thu Sep 14, 2017 11:27 am
Forum: Personal Finance (Not Investing)
Topic: The 10 year car ownership "rule"
Replies: 95
Views: 13610

Re: The 10 year car ownership "rule"

We buy a one-year old car and sell it the second time it breaks down. That tends to be around the 7 year mark. What kind of cars are you buying that have 2 breakdowns by year 7?? It's been varied. Ford, Peugeot, Toyota. They are maintained regularly, so the breakdowns are usually fairly straightfor...
by UKFred
Thu Sep 14, 2017 11:21 am
Forum: Non-US Investing
Topic: Buying a new home in London but concerned about Brexit
Replies: 6
Views: 1236

Re: Buying a new home in London but concerned about Brexit

House price slowdown in London (so far anyway) has been more about stamp duty increases and changes to taxation rules and mortgage availability for buy-to-let landlords. By contrast, Brexit has had a much smaller impact. £1M is NOT a large budget for a house in London, by the way!
by UKFred
Wed Sep 13, 2017 5:22 am
Forum: Personal Finance (Not Investing)
Topic: The 10 year car ownership "rule"
Replies: 95
Views: 13610

Re: The 10 year car ownership "rule"

We buy a one-year old car and sell it the second time it breaks down. That tends to be around the 7 year mark.
by UKFred
Sat Sep 02, 2017 11:25 am
Forum: Non-US Investing
Topic: how British youth can invest in UK
Replies: 5
Views: 794

Re: how British youth can invest in UK

I can recommend youinvest.co.uk. Their fees are reasonable and have had no problems with their service.
by UKFred
Sat Sep 02, 2017 11:11 am
Forum: Non-US Investing
Topic: Differences between UK and US retirement planning
Replies: 24
Views: 3670

Re: Differences between UK and US retirement planning

#3 is interesting. Is that contribution pre-tax income? or post-tax income? Maybe someday they'll increase the Roth contribution limits here to give the average Joe here a similar option. what percentage of the average persons take-home pay goes to taxes in the UK? 50%? 30%? ISAs are invested from ...
by UKFred
Sat Sep 02, 2017 5:30 am
Forum: Non-US Investing
Topic: Differences between UK and US retirement planning
Replies: 24
Views: 3670

Re: Differences between UK and US retirement planning

@Valuethinker, sorry. The nested quotes were too deep for me to keep track of!
by UKFred
Sat Sep 02, 2017 4:54 am
Forum: Non-US Investing
Topic: Differences between UK and US retirement planning
Replies: 24
Views: 3670

Re: Differences between UK and US retirement planning

It's a bit of a mess. Not The only country ;-). Thank you for that information which was very interesting. Yes, Duckie, thank you for the information. In fairness to politicians, the reason that retirement schemes are a mess in most countries is that they last a long time. A young person starting w...
by UKFred
Fri Sep 01, 2017 12:56 pm
Forum: Non-US Investing
Topic: Differences between UK and US retirement planning
Replies: 24
Views: 3670

Re: Differences between UK and US retirement planning

@Alex_686, thanks for the clarification.