Search found 228 matches

by North Texas Cajun
Tue Feb 09, 2021 3:59 pm
Forum: Personal Consumer Issues
Topic: Cash vs. Credit
Replies: 189
Views: 9515

Re: Cash vs. Credit

As a senior entering my 8th decade, I place a high premium on my time. So I use whatever takes the least amount of my time. That’s usually a card, but not always. When I buy a $3.50 beverage out on the golf course, it’s much quicker to just hand over a $5 bill and walk on. We travel a lot and need b...
by North Texas Cajun
Wed Aug 19, 2020 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Jitters Anyone ??
Replies: 87
Views: 6897

Re: Social Security Jitters Anyone ??

Historically, we have been here before, and congress has seen fit to make many changes to SS during the 20th century. See https://www.ssa.gov/history/reports/crsleghist2.html I count about 30 different amendments to the law from 1935 to 2000. During the last crisis in the late '70s (I believe - my ...
by North Texas Cajun
Wed Aug 19, 2020 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Jitters Anyone ??
Replies: 87
Views: 6897

Re: Social Security Jitters Anyone ??

I started Social Security as soon as possible, since my Dad did at 62. Up until next year, age 78, I am ahead of the game. I don't regret my choice. Social Security will be fully funded up to 2032 if no games are played reducing SS taxes, and fully funded ad infinitum if the salary cap on wages bei...
by North Texas Cajun
Sun Feb 09, 2020 8:07 am
Forum: Personal Finance (Not Investing)
Topic: long term care insurance versus self-insuring
Replies: 110
Views: 7277

Re: long term care insurance versus self-insuring

I'll be the pedantic twit and say that "self insure" isn't a thing. Insurance spreads the risk between multiple parties. You would be assuming all the risk of paying for care. Anyway, six years ago, nursing home care for dad, in a reasonable but not fancy place in Denver was $329/day. A M...
by North Texas Cajun
Fri Jan 31, 2020 3:36 pm
Forum: Personal Consumer Issues
Topic: Amazon price gouging
Replies: 61
Views: 4059

Re: Amazon price gouging

Both the 4 and 6 packs are significantly cheaper. So the demand for 4 and 6 packs is lower. So what? Not sure I understand your point. Can you enlighten me? [/quote] My point is if the OP is concerned about price buy the 4 or 6 pack. Both are roughly $22. [/quote] Oh, I agree. I thought you were ar...
by North Texas Cajun
Fri Jan 31, 2020 3:30 pm
Forum: Personal Consumer Issues
Topic: Amazon price gouging
Replies: 61
Views: 4059

Re: Amazon price gouging

I was looking for a hand sanitizer in Amazon, since every single store in our area is out of stock. And I was shocked to see the prices, especially this one, 8 oz for $8.99. Then I checked price history, it sells for around $3 normally. So they jacked up the price by 200%. Wow. https://www.amazon.c...
by North Texas Cajun
Fri Jan 31, 2020 3:00 pm
Forum: Personal Consumer Issues
Topic: Amazon price gouging
Replies: 61
Views: 4059

Re: Amazon price gouging

I was looking for a hand sanitizer in Amazon, since every single store in our area is out of stock. And I was shocked to see the prices, especially this one, 8 oz for $8.99. Then I checked price history, it sells for around $3 normally. So they jacked up the price by 200%. Wow. https://www.amazon.c...
by North Texas Cajun
Thu Jan 30, 2020 8:58 pm
Forum: Investing - Theory, News & General
Topic: The Demise of the 4 Percent Rule? -- Wade Pfau
Replies: 179
Views: 15202

Re: The Demise of the 4 Percent Rule? -- Wade Pfau

Into our 2nd year of retirement we're ticking along at 5% SWR of annual portfolio balance but fully prepared to end up residing at a 3% inflation-adjusted floor if and only a very poor sequence of returns dictates that to be a prudent action. So you have a possible 40% reduction in spending built i...
by North Texas Cajun
Tue Jan 28, 2020 9:18 pm
Forum: Investing - Theory, News & General
Topic: The Demise of the 4 Percent Rule? -- Wade Pfau
Replies: 179
Views: 15202

Re: The Demise of the 4 Percent Rule? -- Wade Pfau

“Other factors suggest that sustainable spending may be even higher than traditional studies imply. Reasons for this include that actual retirees may tend to reduce their spending with age, that they build more diversified portfolios than used in the basic research studies, that real-world retirees...
by North Texas Cajun
Tue Jan 28, 2020 7:42 pm
Forum: Investing - Theory, News & General
Topic: The Demise of the 4 Percent Rule? -- Wade Pfau
Replies: 179
Views: 15202

Re: The Demise of the 4 Percent Rule? -- Wade Pfau

Amazing how many publications someone can get out of an idea that no one actually ever uses. Who just withdraws a certain amount each year without paying any attention whatsoever to market conditions around them? Pretty much nobody. Any "withdrawal study" that doesn't allow for the retire...
by North Texas Cajun
Tue Jan 28, 2020 6:12 pm
Forum: Investing - Theory, News & General
Topic: The Demise of the 4 Percent Rule? -- Wade Pfau
Replies: 179
Views: 15202

Re: The Demise of the 4 Percent Rule? -- Wade Pfau

Here’s another paper where Wade Pfau acknowledges that few clients of an investment advisor would ever cling to the absolute safe withdrawal rate. In this paper Pfau reviews ten different variable withdrawal rates. https://papers.ssrn.com/sol3/papers.cfm ... id=2579123 I think it would be incorrect ...
by North Texas Cajun
Tue Jan 28, 2020 5:52 pm
Forum: Investing - Theory, News & General
Topic: The Demise of the 4 Percent Rule? -- Wade Pfau
Replies: 179
Views: 15202

Re: The Demise of the 4 Percent Rule? -- Wade Pfau

Besides this, Pfau, Karsten from Early Retirement Now, and many others overlook the reality that no retirees are actually using fixed real dollar withdrawal strategies like the '4% rule'. Everyone makes adjustments as they go, especially when their portfolio suffers. With regard to estimating what ...
by North Texas Cajun
Sun Jan 26, 2020 12:10 pm
Forum: Personal Consumer Issues
Topic: Mechanics of maintaining two homes
Replies: 37
Views: 3683

Re: Mechanics of maintaining two homes

I live in the Dallas suburbs. Of my two dozen regular golf buddies, I know that four have second homes. DP owns a condo in Steamboat Springs. He drives there when he visits about four or five times a year. The condo is fully furnished, and several relatives regularly use it. DP has had to coordinate...
by North Texas Cajun
Fri Jan 24, 2020 10:54 pm
Forum: Personal Consumer Issues
Topic: Benefits of buying things secondhand?
Replies: 93
Views: 7567

Re: Benefits of buying things secondhand?

masterchief wrote: Tue Jan 21, 2020 10:18 pm Hi Bogleheads!

Any pros and cons of second hand items like, wrist watches, shoe etc

Many thanks
Andrei
My sister picked up a second hand husband. Seems to be working OK.
by North Texas Cajun
Fri Jan 24, 2020 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Torn Between Aggressive Home Payoff or Investing
Replies: 67
Views: 7371

Re: Torn Between Aggressive Home Payoff or Investing

Primary anxiety is locking that money up in a home and not having the diversification of investing across multiple fund classes and categories. Yeah, I would be anxious about that. We increased our mortgage loan payments by about $6K annually - about ten years before retirement. At your age, though...
by North Texas Cajun
Fri Jan 24, 2020 2:37 pm
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

Again, how is your software app cost experience - which is contrary to what most of the world has experienced - relevant when deriving the CPI? The general concept I was trying to illustrate with my poor example was: When the World is moving forward, if you are standing still, you will fall behind....
by North Texas Cajun
Fri Jan 24, 2020 11:17 am
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

Great discussion! I used to perceive COLA adjusts included rise in living standards. Thanks for correcting my perception, Grayfox. I agree with other poster - Housing, transportation, childcare, medical and college trounce all expenses. This is where inflation is highest with childcare, medical and...
by North Texas Cajun
Fri Jan 24, 2020 9:49 am
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

I do not understand how this example is relevant to an inflation rate for the entire population. Do you think that very many households have experienced similar difficulties? For most households, software application costs have dropped dramatically since 1999. There are millions of free and very lo...
by North Texas Cajun
Fri Jan 24, 2020 9:18 am
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

I told you I would give more examples of how by not upgrading, I lost current capability. Here is one that could not use public intenet or smartphone. I had a program that processed transactions. It was a really old DOS program. It was so old that it came on a floppy disk. It recall that it cost ab...
by North Texas Cajun
Fri Jan 24, 2020 9:05 am
Forum: Personal Consumer Issues
Topic: Mechanics of maintaining two homes
Replies: 37
Views: 3683

Re: Mechanics of maintaining two homes

We don’t (yet) own a second home but we’re maintaining one we will likely own. My mid-90s father-in-law is in a rehab center recovering from a stroke. He may never again be living on his ranch, but is unlikely to sell it. So we drive 120 miles to check on the property about once a month. It’s a nice...
by North Texas Cajun
Wed Jan 22, 2020 10:15 pm
Forum: Investing - Theory, News & General
Topic: Retirement Income - planning for inflation vs. planning for general increases in living standards
Replies: 16
Views: 1657

Re: Retirement Income - planning for inflation vs. planning for general increases in living standards

. . . All of that said, I think there are two big caveats to all of this. One, while I agree this line of thinking is important for an early retiree, I'm less sure how much a "normal" retiree should care about it. They're usually not going to live long enough for it to matter much and a l...
by North Texas Cajun
Wed Jan 22, 2020 9:41 pm
Forum: Investing - Theory, News & General
Topic: Retirement Income - planning for inflation vs. planning for general increases in living standards
Replies: 16
Views: 1657

Re: Retirement Income - planning for inflation vs. planning for general increases in living standards

When planning for retirement, do you plan for your retirement income to keep pace with inflation (i.e., CPI) or to keep pace with general increases in living standards? This question was motivated by another interesting thread going on right now: “Isn’t Inflation Much Larger than 2%”. As discussed ...
by North Texas Cajun
Sun Jan 19, 2020 9:35 pm
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

You still have to come up with more money. Suppose you have just two expenses and there are two items in CPI: Rent is 1000 per month and car payments is 500 per month. Total expense 1500 per month paid by social security. Both increase by 50%. Rent is now 1500 and car payment is 750. Total expenses...
by North Texas Cajun
Sun Jan 19, 2020 1:14 pm
Forum: Investing - Theory, News & General
Topic: Question About the U.S. "Lost Decade".
Replies: 49
Views: 2670

Re: Question About the U.S. "Lost Decade".

. . . Of course everyone is different, but I would like to see and have never seen some kind of data on the average profile of contributions by age... real dollars, of course. It's not like investing a lump sum at the start of your career and letting it grow for forty years, but it's also not like ...
by North Texas Cajun
Sun Jan 19, 2020 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Types of Income in Retirement
Replies: 5
Views: 887

Re: Types of Income in Retirement

I believe that pension income, distributions from IRAs, and distributions from annuities are all reported on IRS form 1099-R.

https://www.irs.gov/forms-pubs/about-form-1099-r
by North Texas Cajun
Sun Jan 19, 2020 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Why retire?
Replies: 267
Views: 17579

Re: Why retire?

Hi everyone, This forum is primarily focused on a comfortable secure retirement and many members look forward to early retirement. At my age of 38, I do not see why should I aim for a retirement at 50, 55 or 60. I feel good at my work and life seems comfortable. My question is- what changes happen ...
by North Texas Cajun
Sun Jan 19, 2020 12:15 pm
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

Here are median home prices for some great American cities. City Median Under 100K Median Income Gary IN 83K 65% 36K South Bend IN 81K 65% Akron OH 80K 68% 36K Rochester NY 79,400 67% 33K Youngstown OH 78,900 68% Toledo OH 77,600 67.5% 36K Lansing MI 77K 72% 39K Cleveland OH 67K 76% 27K Dayton OH 6...
by North Texas Cajun
Sun Jan 19, 2020 8:46 am
Forum: Investing - Theory, News & General
Topic: Question About the U.S. "Lost Decade".
Replies: 49
Views: 2670

Re: Question About the U.S. "Lost Decade".

I'm hoping someone can help me with a math problem. I know the first decade of the 21st century was terrible for US stocks. I think the loss of $10,000 invested in 200 was something around -1%? My question is: what if one were to have dollar-cost-averaged throughout the decade? Would they have expe...
by North Texas Cajun
Sat Jan 18, 2020 3:20 am
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

Was just watching this, when I was reminded of this thread. https://www.youtube.com/watch?v=X_t6fa4xeJA High housing prices are pushing out millennials where the average cost of a house is now $481,000, but the average price of a home from 1976 adjusted for inflation would only be $210,000. To put ...
by North Texas Cajun
Sat Jan 18, 2020 2:35 am
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

Was just watching this, when I was reminded of this thread. https://www.youtube.com/watch?v=X_t6fa4xeJA High housing prices are pushing out millennials where the average cost of a house is now $481,000, but the average price of a home from 1976 adjusted for inflation would only be $210,000. To put ...
by North Texas Cajun
Fri Jan 17, 2020 4:10 pm
Forum: Investing - Theory, News & General
Topic: How can we know whether the market's overvalued?
Replies: 53
Views: 4395

Re: How can we know whether the market's overvalued?

I remember in 1992 when most of the pundits were talking how overvalued the stock market was. From 1992 to 1999, the 500 index compounded at 19% per year. A $1M portfolio would had become a $4M portfolio during that time. As someone who graduated college and started working in the year 2000 this su...
by North Texas Cajun
Fri Jan 17, 2020 3:29 pm
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

I don’t think the BLS uses only prices in detrrminibg the inflation rate for autos. No, they don't, and that's the key. It's like adjusted EBITDA for corporations, where you count certain expenses only, but you leave out others. In the real world, where most people must own a car, they must pay wha...
by North Texas Cajun
Fri Jan 17, 2020 2:48 pm
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

I would suspect technology, regulations, in addition to manufacturing union expenses (pensions, health care) have been the main reason for the auto cost increases. I think you are correct with technology and regulations being a part of the answer. Not sure the legacy car manufacturers can pass alon...
by North Texas Cajun
Fri Jan 17, 2020 2:31 pm
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

3.724% of the CPI-U is weighted on this. I can never get a straight answer from anyone who believes the CPI is accurate how they can explain this new car pricing factor, when it's easily refuted by looking up MSRPs from 1996 and 1997 and comparing them with today. What part of the BLS factsheet on ...
by North Texas Cajun
Fri Jan 17, 2020 11:28 am
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

The thread is way outnumbered by others discussing how to loosen up and spend more indulgently. This is a group whose affluence is increasing faster than society as a whole, discussing a subject that's really hard to be objective about. Why is it hard to be objective about the rate of inflation? Is...
by North Texas Cajun
Fri Jan 17, 2020 10:02 am
Forum: Investing - Theory, News & General
Topic: Isn’t Inflation Much Larger Than 2%?
Replies: 289
Views: 19833

Re: Isn’t Inflation Much Larger Than 2%?

As we watch this stock market melt up and experience an unemployment rate that hovers near record lows, it seems like the fed funds rate should be raised. The main reason I hear for why it is being held so low (and juicing the economy further, possibly blowing asset bubbles) is because “inflation i...
by North Texas Cajun
Thu Jan 16, 2020 9:55 am
Forum: Investing - Theory, News & General
Topic: Why not go all aggressive? The risk seems about the same....
Replies: 51
Views: 4596

Re: Why not go all aggressive? The risk seems about the same....

Sure and pop in the numbers since 2003 and get a much different story. Everyone knows (or should know) the history of the internet/ tech bubble.... and it's basically totally irrelevant to what the industry looks like today. If you believe that, then go ahead. But if you have read very much about f...
by North Texas Cajun
Wed Jan 15, 2020 5:48 pm
Forum: Investing - Theory, News & General
Topic: Rich people are hoarding cash
Replies: 233
Views: 35493

Re: Rich people are hoarding cash

Not sure if anyone pointed it out before, but this is a global aggregate. I couldn’t find the 2019 report, but I did look at the 2018 version. At about 22%, the cash allocations of both North America and Europe are well below those of Japan (45%) and Latin America (27%). 22% allocation to cash stil...
by North Texas Cajun
Wed Jan 15, 2020 4:58 pm
Forum: Investing - Theory, News & General
Topic: Rich people are hoarding cash
Replies: 233
Views: 35493

Re: Rich people are hoarding cash

Not sure if anyone pointed it out before, but this is a global aggregate. I couldn’t find the 2019 report, but I did look at the 2018 version. At about 22%, the cash allocations of both North America and Europe are well below those of Japan (45%) and Latin America (27%). 22% allocation to cash still...
by North Texas Cajun
Wed Jan 15, 2020 1:58 pm
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part VI
Replies: 4982
Views: 1315816

Re: What Book Are You Currently Reading? Part VI

theicecreamman wrote: Wed Jan 15, 2020 10:44 am Where are the Customers' Yachts? by Fred Schwed, Jr. Even better than I thought it would be.
I’ve got that in my library, and had planned to read it this year. Thanks for the recommendation.
by North Texas Cajun
Sun Jan 12, 2020 7:00 pm
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part VI
Replies: 4982
Views: 1315816

Re: What Book Are You Currently Reading? Part VI

Vacationed in Miami Beach last week and read two Wall Street books about boom and then bust years for telecoms: Wall Street Meat by Andy Kessler Confessions of a Walk Street Analyst by Dan Reingold Both accounts make good cases against Salomon Smith Barney and Jack Grubman. I enjoyed Kessler’s book ...
by North Texas Cajun
Fri Jan 10, 2020 9:34 am
Forum: Investing - Theory, News & General
Topic: Need advice on investing in stocks (for a dummy)
Replies: 7
Views: 642

Re: Need advice on investing in stocks (for a dummy)

My two cents: When a person realizes that he (or she) will probably need to take a little more risk in order to earn enough to grow his savings, he is no longer a dummy. So congratulations on no longer being a dummy. Investing in a broad index fund, IMO, is only taking a little more risk. Investing ...
by North Texas Cajun
Fri Jan 10, 2020 1:26 am
Forum: Investing - Theory, News & General
Topic: Schiller's article on CAPE in NYT today
Replies: 147
Views: 12066

Re: Schiller's article on CAPE in NYT today

The article has nothing to do with the comments that have been posted, i.e. whether CAPE is a good predictor or not. A certain person is mentioned by name 8 times in the article. That's what the article is about. Schiller is saying that the U.S. stock market is high on animal spirits because of tha...
by North Texas Cajun
Wed Apr 11, 2018 1:56 am
Forum: Personal Consumer Issues
Topic: [What UN-frugal thing do you do? What do you splurge on?]
Replies: 590
Views: 52650

Re: Name something you bought that wasn't cheap and glad you did

A Sawstop table saw. I have twenty digits and I'm very attached to them. Bonus content: a set of Festool sanders and a Festool shop vac to assist them. These things are unbelievably great, I can sand all day long and it's like it never happened (observably, except on the work.) I'm retired, I've be...
by North Texas Cajun
Mon Mar 12, 2018 2:26 am
Forum: Personal Consumer Issues
Topic: structured vs. unstructured time in retirement
Replies: 18
Views: 2586

Re: structured vs. unstructured time in retirement

I’ve been retired 5 years. I didn’t want a structured life, but I did develop a pattern for my activities the first three years: golf on Tuesday, Thursday, and Saturday; health club on Sunday, Wednesday, and Friday; finances and visits with friends on Monday. Then I got hit with health problems: mis...
by North Texas Cajun
Mon Feb 12, 2018 10:33 pm
Forum: Personal Investments
Topic: Anybody else Age - 10 in bonds, rest in stocks
Replies: 127
Views: 15719

Re: Anybody else Age - 10 in bonds, rest in stocks

For those of you not in retirement who have a cash position, is the cash largely your emergency fund? If not, and apologies if this is a dumb question, but why bother with it? I think for my last 20 working years I had 6 months post-tax income in cash. Yes, it was our emergency fund. By the time I ...
by North Texas Cajun
Mon Feb 12, 2018 9:43 am
Forum: Personal Finance (Not Investing)
Topic: How does it make sense to buy a condo/house in Texas?
Replies: 97
Views: 13813

Re: Why would people buy condos/SFH in Texas?

I live in Dallas and my effective average property tax rate is ~2.5% after the homestead exemption. There are many areas that are higher. Quoting the rate for Highland Park or UV is laughable since those are very wealthy areas with starting SFH prices of $1mn with many homes in the $2-3mn range - w...
by North Texas Cajun
Sun Feb 11, 2018 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: How does it make sense to buy a condo/house in Texas?
Replies: 97
Views: 13813

Re: Why would people buy condos/SFH in Texas?

I work downtown. Downtown proper is absolutely dead after about 6. Sure there are some nice restaurants and various happy hours but if you compare actual downtown to anywhere else between downtown and west beltway 8 you will see sparce it is. After about 7 pm, during weeknights 60% of the people I ...
by North Texas Cajun
Sun Feb 11, 2018 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: How does it make sense to buy a condo/house in Texas?
Replies: 97
Views: 13813

Re: Why would people buy condos/SFH in Texas?

Yes, I'm aware that each municipality has its own rate. My point was that 2.6% is not an insane assumption: it's actually quite close to actual for one of the largest cities. I was referring to the city of Dallas, which have a 2.7% rate. For everyone's reference, here's a good list: https://www.dav...
by North Texas Cajun
Sun Feb 11, 2018 11:45 am
Forum: Personal Finance (Not Investing)
Topic: How does it make sense to buy a condo/house in Texas?
Replies: 97
Views: 13813

Re: Why would people buy condos/SFH in Texas?

Where are you getting 2.6% as the property tax rate? I live in Texas and my overall property tax rate is 1.6%. (And a quick Google search says that the average in the state is 1.9%.) Six different entities levy a tax where I live. Five of those six entities offer exemptions, so I pay tax to those e...