Search found 496 matches

by Riprap
Tue Jul 28, 2020 7:49 pm
Forum: Investing - Theory, News & General
Topic: Are dividends a reliable source of income for retirees?
Replies: 36
Views: 4922

Re: Are dividends a reliable source of income for retirees?

Yes, dividends are a reliable source of income. In fact our mentor John Bogle said retirees should focus on income and not worry about the market.

Chart of SP500 dividends

https://www.multpl.com/s-p-500-dividend

Chart of growth of SP500 dividends

https://www.multpl.com/s-p-500-dividend-growth
by Riprap
Sat Jun 27, 2020 11:03 pm
Forum: Personal Consumer Issues
Topic: Perpetual vs Subscription License - Microsoft Office
Replies: 41
Views: 2375

Re: Perpetual vs Subscription License - Microsoft Office

CurlyDave wrote:
Sat Jun 27, 2020 10:56 pm
Is the perpetual license for one user or for one machine? I.e. what happens when you update the computer?
I'm wondering the same thing. I'm the only one in my household now who uses Excel.
by Riprap
Sat Jun 27, 2020 10:45 pm
Forum: Investing - Theory, News & General
Topic: International Dividends Got Crushed in Q2 2020
Replies: 23
Views: 2821

Re: International Dividends Got Crushed in Q2 2020

The timing of March 2020 dividends were a couple of weeks earlier than normal for the 500 Index fund which seems to have caused a pretty sharp drop from 2019. Mar 2019: $1.4561 Mar 2020: $1.1794 -19.0 % Jun 2019: $1.3893 Jun 2020: $1.4350 +3.3% 1st Half 2019: $2.8454 1st Half 2020: $2.6144 -8.1% So ...
by Riprap
Wed Jun 03, 2020 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Wife's expectations of subsidizing her friends' lives
Replies: 82
Views: 4532

Re: Wife's expectations of subsidizing her friends' lives

That's your side of the story, likely her's is much different...as in you're cheap.

If you don't have kids, move on. It will get worse before it gets better.
by Riprap
Wed Mar 18, 2020 11:50 pm
Forum: Personal Investments
Topic: Time to Move Vanguard MM Funds to Local Bank? (B of A)
Replies: 12
Views: 1638

Re: Time to Move Vanguard MM Funds to Local Bank? (B of A)

I'm moving cash from Vanguard MM funds to a couple of banks I have accounts with mainly for the insurance. I'll worry about how to invest that cash once it gets there. I'll probably just leave it in savings accounts for now.
by Riprap
Thu Mar 12, 2020 10:40 am
Forum: Personal Investments
Topic: Who is staying course and how are you dealing with net worth going down?
Replies: 359
Views: 26672

Re: Who is staying course and how are you dealing with net worth going down?

I am staying the course because there is no real alternative. If it gets catastrophic for me, then it's probably going to be pandemonium, chaos, and even anarchy for society at large. I deal with it knowing that dividends are generally pretty steady. If history is any guide, if the markets drop 50-6...
by Riprap
Fri Mar 06, 2020 8:44 pm
Forum: Investing - Theory, News & General
Topic: Could this selloff be nearly over?
Replies: 68
Views: 5289

Re: Could this selloff be nearly over?

Could this selloff be nearly over?

Everyone would like an answer to the unknowable.

I'm guilty of it too even though I know better. I suppose it's why I looked at this thread.

It's a fascinating aspect of investing behavior.
by Riprap
Sun Mar 01, 2020 9:01 pm
Forum: Personal Investments
Topic: Markets In Turmoil - Boring Responses
Replies: 65
Views: 5711

Re: Markets In Turmoil - Boring Responses

Dividends, that's my boring response.
by Riprap
Fri Feb 28, 2020 10:51 am
Forum: Investing - Theory, News & General
Topic: The Calm Post - Stay the course thread.
Replies: 511
Views: 45877

Re: The Calm Post - Stay the course thread.

I'd like to think Warren Buffett pulled his elephant rifle out of the gun case. He's probably booking a Safari right now.
by Riprap
Mon Feb 24, 2020 2:12 pm
Forum: Personal Investments
Topic: Study CFA just for personal investment and portfolio management knowledge
Replies: 55
Views: 4285

Re: Study CFA just for personal investment and portfolio management knowledge

I am a CFA charterholder. It taught me a lot, it’s been helpful in my career, but it has not changed my personal investing approach. I use a 3-fund portfolio. I would not take it unless it helped your career in some way. It is a huge time commitment, and it isn’t really designed for personal invest...
by Riprap
Mon Feb 24, 2020 1:56 pm
Forum: Personal Investments
Topic: Study CFA just for personal investment and portfolio management knowledge
Replies: 55
Views: 4285

Re: Study CFA just for personal investment and portfolio management knowledge

I considered doing the same thing but didn't mostly for the reason 123 posted above. I never saw a path to actually becoming a CFA charterholder as I never planned on gaining the requisite work experience. In hindsight (+10 years), that seems like a good decision. Preparation for the exams would hav...
by Riprap
Fri Feb 21, 2020 11:03 am
Forum: Personal Consumer Issues
Topic: Do You Have a Long Term Travel Strategy?
Replies: 67
Views: 6078

Re: Do You Have a Long Term Travel Strategy?

We (spouse and I) think travel should be infrequent enough so that when we do travel, it's a very special treat. Delayed gratification.
by Riprap
Sun Feb 09, 2020 10:48 am
Forum: Personal Consumer Issues
Topic: Becoming more reclusive as I age - is it OK to be OK with it?
Replies: 101
Views: 7317

Re: Becoming more reclusive as I age - is it OK to be OK with it?

so I joined a few social clubs based on my hobbies (outdoor activities) but I felt I'd forced myself to do this and though I had an OK time I actually wished I'd done the activity on my own! Just my observation, but the problem with social clubs like you describe (and volunteer organizations) is th...
by Riprap
Sun Feb 09, 2020 9:54 am
Forum: Investing - Theory, News & General
Topic: [Professor Jeremy Siegel says 75/25 in retirement]
Replies: 63
Views: 5714

Re: [Professor Jeremy Siegel says 75/25 in retirement]

Yay! A stealth dividend thread. :D

“It cannot maintain spending streams at all. Dividends on stocks are going to be the new bond in terms of thinking about retirement.”
by Riprap
Sun Feb 09, 2020 9:34 am
Forum: Personal Consumer Issues
Topic: Becoming more reclusive as I age - is it OK to be OK with it?
Replies: 101
Views: 7317

Re: Becoming more reclusive as I age - is it OK to be OK with it?

virgingorda wrote:
Sun Feb 09, 2020 9:30 am
but as a woman, I would so much rather not have drama, and I don't watch any of those channels or programs.
in any group there are usually outliers... :D

I better stop, I'm going to get into trouble with the mods.
by Riprap
Sun Feb 09, 2020 9:24 am
Forum: Personal Consumer Issues
Topic: Becoming more reclusive as I age - is it OK to be OK with it?
Replies: 101
Views: 7317

Re: Becoming more reclusive as I age - is it OK to be OK with it?

However, their wives have NOT been OK with it, especially when it creates tension about hosting guests, going on vacations, and inviting family to visit. You’ll need to find a happy middle point with your wife so her needs are being sufficiently met. I wouldn’t be surprised if there are a fair numb...
by Riprap
Sun Feb 09, 2020 8:40 am
Forum: Personal Consumer Issues
Topic: Becoming more reclusive as I age - is it OK to be OK with it?
Replies: 101
Views: 7317

Re: Becoming more reclusive as I age - is it OK to be OK with it?

I think responses are going to be skewed here. Not that there's anything wrong with that.

This site is likely populated with INTJ types, if you believe in that mumbo jumbo.
by Riprap
Fri Feb 07, 2020 10:11 am
Forum: Personal Consumer Issues
Topic: Cheap Black Only Printer
Replies: 26
Views: 1151

Re: Cheap Black Only Printer

Another vote for Brother Laser printer, scanner. I have the DCP L-2540DW

I bought one for same reasons as you. It came to a head late one night when my inkjet printer wouldn't print something in black because I was out of red ink. I threw it in the trash on the spot.
by Riprap
Fri Feb 07, 2020 9:26 am
Forum: Personal Consumer Issues
Topic: What is the best concert you ever witnessed?
Replies: 385
Views: 27795

Re: What is the best concert you ever witnessed?

My daughter's high school jazz band concert.

They sounded like professional musicians. The parents were stunned their children could produce such music. It was electrifying. How the band director pulled it off...one of life's mysteries. It was THAT good.
by Riprap
Wed Feb 05, 2020 10:47 am
Forum: Personal Finance (Not Investing)
Topic: I am unable to complete my tax return without professional assistance
Replies: 27
Views: 2308

Re: I am unable to complete my tax return without professional assistance

You may say "Well you work in a gravel pit. Of course you need help with your taxes." Well it is presumptuous of you to assume that people who work in gravel pits are unintelligent. My buddy Barney works alongside me and he is one of the smartest people I know. I resemble your remarks. :shock: Than...
by Riprap
Sun Feb 02, 2020 8:49 pm
Forum: Personal Consumer Issues
Topic: Books that changed your life
Replies: 207
Views: 16893

Re: Books that changed your life

Not exactly "life changing" but each influential The One Minute Manager - Ken Blanchard and Spencer Johnson How to Win Friends and Influence People - Dale Carnegie A Random Walk Down Wall Street - Burton Malkiel Schaum's Calculus Outline - Not sure who wrote it, but was responsible for a major "ah h...
by Riprap
Wed Jan 29, 2020 9:29 pm
Forum: Investing - Theory, News & General
Topic: How do Dividends Benefit an Investor?
Replies: 178
Views: 9347

Re: How do Dividends Benefit an Investor?

It's amazing that anyone on this forum could misunderstand the math on dividends. And yet they do. I would have thought that almost no one believed dividends were free money. But it seems like a modified version of that belief is prevalent. I guess I don't see that belief here on Bogleheads. There ...
by Riprap
Wed Jan 29, 2020 8:41 am
Forum: Investing - Theory, News & General
Topic: How do Dividends Benefit an Investor?
Replies: 178
Views: 9347

Re: How do Dividends Benefit an Investor?

Sorry.This constant argument is just so annoying. Some people like dividends for whatever reason. They can have their opinions and beliefs and it does not matter. Then you have the people who always want to make the academic argument and love to put down the posters who prefer dividends,usually wit...
by Riprap
Tue Jan 28, 2020 5:54 pm
Forum: Investing - Theory, News & General
Topic: How do Dividends Benefit an Investor?
Replies: 178
Views: 9347

Re: How do Dividends Benefit an Investor?

For example, consider Alphabet (GOOG). It's current share price is about $1440. It's Price/Book is 5.1, so the Book Value per share is about $282. Of that, $176 is cash. Without the cash, the Price/Book would be about 13.6. I don't imagine GOOG shareholders would be pleased if all that cash was giv...
by Riprap
Mon Jan 27, 2020 8:54 pm
Forum: Investing - Theory, News & General
Topic: The Demise of the 4 Percent Rule? -- Wade Pfau
Replies: 179
Views: 14984

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

willthrill81 wrote:
Mon Jan 27, 2020 8:51 pm
Insurance companies are investing SPIA premiums in Treasuries, so SPIA payouts say nothing about insurance companies' expectations of stock returns.
Thanks, I did not know that.
by Riprap
Mon Jan 27, 2020 8:28 pm
Forum: Investing - Theory, News & General
Topic: The Demise of the 4 Percent Rule? -- Wade Pfau
Replies: 179
Views: 14984

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

What do payouts of SPIAs tell us about what insurance companies think of future returns?

It's difficult for me to get a grasp of because I don't know how mortality credits figure in.

But I would think the competitive nature of the insurance business could tell us something.
by Riprap
Thu Jan 16, 2020 10:02 am
Forum: Personal Investments
Topic: 25x-50x living expenses?
Replies: 104
Views: 10298

Re: 25x-50x living expenses?

willthrill81 wrote:
Thu Jan 16, 2020 9:42 am
I created it using data from FIRECalc.
Thanks, Appreciate the quick reply.
by Riprap
Thu Jan 16, 2020 9:07 am
Forum: Personal Investments
Topic: 25x-50x living expenses?
Replies: 104
Views: 10298

Re: 25x-50x living expenses?

willthrill81 wrote:
Mon Jan 13, 2020 5:41 pm
Correct. The historic SWR has decreased at a decreasing rate as the withdrawal period has lengthened. Eventually, the 'safe' withdrawal rate and the perpetual withdrawal rate are basically equal.

Image
Would you mind sharing the source of this graph please?
by Riprap
Sun Jan 12, 2020 9:13 am
Forum: Investing - Theory, News & General
Topic: Why are Dividend Stocks pushed so hard?
Replies: 129
Views: 6815

Re: Why are Dividend Stocks pushed so hard?

I would prefer stocks with no dividends at all. You can find plenty of statements similar to this when it comes to dividends. I don't know many people who would disagree with that statement. But my interpretation of what Bogleheads' think is different from yours. I don't think Bogleheads are anti-d...
by Riprap
Sun Jan 12, 2020 1:29 am
Forum: Investing - Theory, News & General
Topic: Why are Dividend Stocks pushed so hard?
Replies: 129
Views: 6815

Re: Why are Dividend Stocks pushed so hard?

The answer is buyback stock. A buyback is the same as a dividend. If company does dividend payment that is 2% yield it is no different than them buying back their stock in lieu of dividend and of you wanted 2% cash returned then sell that many shares. At least you only pay tax on portion of the sal...
by Riprap
Sun Jan 12, 2020 12:03 am
Forum: Investing - Theory, News & General
Topic: Why are Dividend Stocks pushed so hard?
Replies: 129
Views: 6815

Re: Why are Dividend Stocks pushed so hard?

Dividends are good for budgeting, but inefficient otherwise. IF you're investing in a taxable account, if you want $X dollars of capital, just sell that much stock, and at least only a portion is taxable (as gain, only if there is a gain), but if it is a dividend, the whole thing is. Dividends are ...
by Riprap
Sat Jan 11, 2020 11:28 pm
Forum: Investing - Theory, News & General
Topic: Why are Dividend Stocks pushed so hard?
Replies: 129
Views: 6815

Re: Why are Dividend Stocks pushed so hard?

If dividend stocks are so great, then why are the total returns of Vanguard High Dividend Yield Index (VHDYX) and Vanguard Total Stock Market Index (VTSMX) so similar? See e.g. the Morningstar comparison growth chart in the following post. https://www.bogleheads.org/forum/viewtopic.php?f=10&t=29421...
by Riprap
Sat Jan 11, 2020 11:14 pm
Forum: Investing - Theory, News & General
Topic: Why are Dividend Stocks pushed so hard?
Replies: 129
Views: 6815

Re: Why are Dividend Stocks pushed so hard?

Dividends are irrational. The key bit here is miller & Modigliani capital structure theory. 1950s, won the Noble, a foundational bit of investment and finance. It is considered a intermediate topic since you need some knowledge of investment and accounting to understand it. However it is ironclad. ...
by Riprap
Sat Jan 11, 2020 10:12 pm
Forum: Investing - Theory, News & General
Topic: Why are Dividend Stocks pushed so hard?
Replies: 129
Views: 6815

Re: Why are Dividend Stocks pushed so hard?

bhsince87 wrote:
Sat Jan 11, 2020 10:04 pm
That was true for close to a hundred years. But not so much any more.
Why? What has changed about the concept of company paying a dividend in those 100 years?
by Riprap
Sat Jan 11, 2020 9:13 pm
Forum: Investing - Theory, News & General
Topic: Why are Dividend Stocks pushed so hard?
Replies: 129
Views: 6815

Re: Why are Dividend Stocks pushed so hard?

One of the most puzzling aspects of Bogleheadism for me is the nearly universal dogma espoused here that dividends are irrational. I've read over and over again here that creating your own dividend by selling appreciated shares is far superior to forced dividends imposed by a company's board of dire...
by Riprap
Wed Jan 08, 2020 8:58 am
Forum: Investing - Theory, News & General
Topic: Following Vanguard [Principles]
Replies: 18
Views: 1320

Re: Following Vanguard Principals

JoMoney wrote:
Wed Jan 08, 2020 8:55 am
I'm more "concerned" about the number of threads showing up with people being "concerned about Vanguard".
It's propaganda don't ya know. Disinformation campaign by Vanguard's enemies.
by Riprap
Wed Jan 08, 2020 8:53 am
Forum: Investing - Theory, News & General
Topic: Following Vanguard [Principles]
Replies: 18
Views: 1320

Re: Following Vanguard Principals

RickBoglehead wrote:
Wed Jan 08, 2020 8:34 am
I didn't know that Vanguard had Principals, nor do I see the need to follow them around all day. :D
By golly there are principals at Vanguard :mrgreen:

https://www.vanguardjobs.com/career-blo ... -vanguard/
by Riprap
Wed Jan 08, 2020 8:33 am
Forum: Investing - Theory, News & General
Topic: Following Vanguard [Principles]
Replies: 18
Views: 1320

Re: Following Vanguard Principals

meh...they still have the same low cost index funds.

Vanguard's marketing noise isn't much different than market noise. Tune it out and get on with more important things.
by Riprap
Thu Jan 02, 2020 1:32 am
Forum: Personal Investments
Topic: Dividends not working how I thought they did.
Replies: 69
Views: 10573

Re: Dividends not working how I thought they did.

Actually, as a company gets more mature, the best strategy might be to return excess cash to shareholders rather than make foolish acquisitions. Peter Lynch called it diworseification. Can't tell you how much time and effort gets wasted on acquisitions that fail. A lot of this is simply management ...
by Riprap
Wed Jan 01, 2020 12:46 pm
Forum: Investing - Theory, News & General
Topic: Why all the angst about RMDs and taxes?
Replies: 177
Views: 13088

Re: Why all the angst about RMDs and taxes?

At that point, I joined a few others in telling people they can save too much in tax deferred accounts. So I'm one of the ones who you may think of as spreading angst. :happy I had this conversation with my CPA several years ago when he wondered why I wasn't contributing to retirement accounts anym...
by Riprap
Sat Dec 14, 2019 9:27 am
Forum: Personal Consumer Issues
Topic: What are you giving (or asking) for Christmas?
Replies: 77
Views: 5501

Re: What are you giving (or asking) for Christmas?

Asking: that no one purchase anything for me.

Giving: a larger donation than usual to a Christian based charity that helps local people in need.
by Riprap
Mon Sep 09, 2019 10:58 pm
Forum: Investing - Theory, News & General
Topic: "Warren Buffett's Investing Plan for His Family: Why It's a Good Plan for Your Family, Too"
Replies: 78
Views: 9444

Re: "Warren Buffett's Investing Plan for His Family: Why It's a Good Plan for Your Family, Too"

:sharebeer My IPS is enough cash (T-Bills) to sleep well at night. The rest of my investment goes into a super low cost S&P 500 index fund (FXAIX - Fido 500 index). I do not keep an AA, but instead keep an X number that works out to at least 2 years of emergency fund - living expenses and extra for...
by Riprap
Sat Aug 24, 2019 9:54 am
Forum: Investing - Theory, News & General
Topic: Is the S&P 500 good enough?
Replies: 48
Views: 6834

Re: Is the S&P 500 good enough?

it is
by Riprap
Thu Aug 22, 2019 10:18 pm
Forum: Investing - Theory, News & General
Topic: Why do dividends still exist?
Replies: 204
Views: 13255

Re: Why do dividends still exist?

Interesting post from the Dividend Growth Investor on why Warren Buffett loves to receive dividends. In the article the author says that corporations pay taxes on capital gains at the marginal corporate tax rate while dividends are taxed differently, much lower and in some cases zero when one corpor...
by Riprap
Sun Aug 11, 2019 7:29 pm
Forum: Investing - Theory, News & General
Topic: Warren Buffett and Bonds
Replies: 18
Views: 2294

Re: Warren Buffett and Bonds

WB is known for considering the time value of money. He's likely referring to the erosion of purchase power from inflation with fixed income. Long term bonds are very sensitive to interest rates. Edited to add: He's not opposed to short term U.S. Govt debt. Berkshire has plenty of that to deploy for...
by Riprap
Sun Aug 11, 2019 10:26 am
Forum: Investing - Theory, News & General
Topic: Why do dividends still exist?
Replies: 204
Views: 13255

Re: Why do dividends still exist?

That's not at all the assumption, it doesn't matter if the company is overvalued or not. The math remains the same. After all, you would be reinvesting your dividend in an overvalued company. Now we're making some progress. Maybe I choose to spend my dividend money some other way. Maybe I'm WB and ...
by Riprap
Sun Aug 11, 2019 8:52 am
Forum: Investing - Theory, News & General
Topic: Why do dividends still exist?
Replies: 204
Views: 13255

Re: Why do dividends still exist?

A buyback is the same as a reinvested dividend. This is the mathematical truth. I see folks like you giving math lessons all the time. Your idealized assumption is that management is buying back $1 worth of stock for $1. This almost never happens. Corporations almost always overpay for their own st...
by Riprap
Fri Aug 09, 2019 5:59 pm
Forum: Investing - Theory, News & General
Topic: Why do dividends still exist?
Replies: 204
Views: 13255

Re: Why do dividends still exist?

Capital gains are more tax efficient than dividends in the US. Presumably, that is why Berkshire Hathaway doesn’t generate dividends. Berkshire doesn't pay them because WB has been able to reinvest cash generated by Berkshire very successfully. He's been very clear about his views on dividends. And...
by Riprap
Thu Aug 08, 2019 9:13 pm
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 536
Views: 35976

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

Here's the best way that I can think of to describe why dividends are not 'free money'. Imagine that you are the sole owner of a business that has $10,000 in its checking account. You transfer that $10,000 into your personal checking account. Has your net worth increased at all? No, because you own...
by Riprap
Thu Aug 08, 2019 10:14 am
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 536
Views: 35976

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

I'm a "total return" person, but to those that advocate "living off dividends" I'm curious why you all don't just ladder CDs and US Treasuries, Bonds, etc, get your 2% and call it a day. Isn't that the same thing as building a portfolio of dividend paying stocks but with less risk? Maybe I'm missin...