Search found 94 matches

by TheAncientOne
Mon Jan 22, 2018 12:03 am
Forum: Personal Finance (Not Investing)
Topic: Does anyone here with net worths north of $1 mil use financial advisors?
Replies: 193
Views: 21759

Re: Does anyone here with net worths north of $1 mil use financial advisors?

My only dealing with a FA was when I took control of my mother's account at Fidelity when she was in her mid 80s. As i recall they charged something like 1% and would also on a regular basis move money from one Fidelity mutual fund to another. Between paying the AUM fee, paying for active management...
by TheAncientOne
Sun Jan 21, 2018 11:52 pm
Forum: Investing - Help with Personal Investments
Topic: Please recommend an allocation now ( age 31) if retiring in 20 years ?
Replies: 22
Views: 1317

Re: Please recommend an allocation now ( age 31) if retiring in 20 years ?

You sound like a physician. If you haven't already, spend time at whitecoatinvestor.com. They specialize in situations like yours. Main thing you need to do is to come out of the box saving lots of money before your lifestyle creeps up to your new income. Second, refinance that student loan debt to ...
by TheAncientOne
Sat Jan 20, 2018 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help Late Early Accumulators Be Comfortable Right Now with (Bogle-appropriate) Aggressive AA
Replies: 27
Views: 1459

Re: Help Late Early Accumulators Be Comfortable Right Now with (Bogle-appropriate) Aggressive AA

Going from 90/10 to 80/20 is fine if it makes you feel better but it won't change things much. I'd argue that if you feel that the market is frothy (and most all of us do) then take it upon yourself to go to 50/50 for the next two years. See where you are then and possibly readjust. Lots of us thoug...
by TheAncientOne
Mon Jan 15, 2018 6:58 pm
Forum: Investing - Theory, News & General
Topic: Anyway to compare metrics of today w stock bubble in 2000
Replies: 26
Views: 2253

Re: Anyway to compare metrics of today w stock bubble in 2000

I don't have hard data for you but I was active in the late 1990s market. The thing about it was that outside of stocks in the dot com bubble along with related tech and "concept" stocks, the market then was very cheap. If you look at the Berkshire Hathaway annual report for 1999, which came out in ...
by TheAncientOne
Mon Jan 15, 2018 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: 29 years old, newly married. Need help allocating ~$3300/month
Replies: 8
Views: 1391

Re: 29 years old, newly married. Need help allocating ~$3300/month

Lrt, I only wish I had been on the ball as much as you are at your age. I'd guess you're at the 95th percentile plus in terms of money management for a couple still in their twenties. It's been my perception that too many people here get so carried away with minimizing taxes that they lose track of ...
by TheAncientOne
Mon Jan 15, 2018 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: pay off 401k loan or not?
Replies: 17
Views: 1200

Re: pay off 401k loan or not?

Pay back the 401K loan. I'm not a believer in loans from that account at all but I can understand why people do that in order to buy a home. If you must do that, pay it back ASAP which in your case means adding to the HELOC. However, once you do that you need to be very aggressive in paying that off...
by TheAncientOne
Mon Jan 15, 2018 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: 50/50 AA recommended by Benjamin Graham
Replies: 26
Views: 2156

Re: 50/50 AA recommended by Benjamin Graham

The Intelligent Investor was written in 1949 when the Dow Jones was at 180. Twenty years earlier, the Dow peaked at 380 in September 1929. Graham wrote at a time when the idea of being in stocks at all was widely considered to be incredibly risky. His idea of a good stock was one that had $20 in cas...
by TheAncientOne
Fri Jan 12, 2018 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Pay off student loans after kid graduates?
Replies: 35
Views: 2170

Re: Pay off student loans after kid graduates?

Just to make clear on Diogenes' question, the exemption on gift limits applies only to education and medical costs paid directly to the school or health care provider. Paying a lender or credit card company doesn't count.
by TheAncientOne
Thu Jan 11, 2018 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Cash-out Refi Mortgage Deduction new Tax rule
Replies: 2
Views: 305

Re: Cash-out Refi Mortgage Deduction new Tax rule

Nage, I don't know what the new law is but under the old one, you were limited on refinances to an additional 100K of cash out for income tax deduction purposes, regardless of what your mortgage balance was. Given that the general theme of the new law has been to reduce deductions while lowering tax...
by TheAncientOne
Thu Jan 11, 2018 7:40 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Working Mom needs advice
Replies: 8
Views: 770

Re: Newbie Working Mom needs advice

having done my taxes for my daughter last year here in CA, I was shocked to find that her marginal state tax rate for a taxable income of $65K (she's a physical therapist) was 9.3% Assuming your husband makes around the same as you, I'd bet that you're paying a similar marginal rate, even though you...
by TheAncientOne
Thu Jan 11, 2018 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off student loans after kid graduates?
Replies: 35
Views: 2170

Re: Pay off student loans after kid graduates?

I can see going either way on this. It sounds like he's off to a good start with his job and career so whatI think I'd do is give him $30K (the maximum you can in one year without using up part of your exemption) and let him take care of the remaining 20K himself. Sit him down and talk about the val...
by TheAncientOne
Tue Jan 09, 2018 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Dad's Portfolio
Replies: 6
Views: 1078

Re: Help with Dad's Portfolio

I agree with you regarding moving fixed income investments into governments. The purpose of fixed income positions is to hedge against declines in equities and to have funds available to invest when the market is down. Corporate bonds are likely to decline as well if the market decline is connected ...
by TheAncientOne
Sun Jan 07, 2018 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Relocation Package - Pay 2 points for 3.5 30 year?
Replies: 14
Views: 900

Re: Relocation Package - Pay 2 points for 3.5 30 year?

Eight year payback. If you plan on keeping this mortgage for 30 years, not moving, not prepaying, not refinancing, then it is a no brainer. Life has a way of surprising you though.
by TheAncientOne
Fri Jan 05, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Contribute to 401k or pay off fixed 20yr 7.625% HELOC?
Replies: 21
Views: 1136

Re: Contribute to 401k or pay off 7.625% HELOC?

I agree with the posters who suggest paying off the HELOC with the emergency cash, then building that back up ASAP this year. If there absolutely, positively is no way to do that quickly without making this year's 401K contribution less than the max, then trim that a bit. A non-deductible 7%+ debt s...
by TheAncientOne
Fri Dec 22, 2017 11:20 pm
Forum: Personal Finance (Not Investing)
Topic: Student loan forgiveness
Replies: 12
Views: 1661

Re: Student loan forgiveness

You can refinance the loans at much lower rates if you don't want to use up that much cash on loan repayment. This will take away any opportunity for loan forgiveness as you will no longer have government loans.
by TheAncientOne
Fri Dec 22, 2017 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Maximizing Two Years of Low Income Question
Replies: 5
Views: 511

Re: Maximizing Two Years of Low Income Question

More info needed. Being able to sell stocks at zero capital gains rate is also valuable. Which one is better (or do you even need to choose) requires data.
by TheAncientOne
Fri Dec 22, 2017 4:44 pm
Forum: Investing - Theory, News & General
Topic: Will you take this Fidelity bait ?
Replies: 126
Views: 13258

Re: Will you take this Fidelity bait ?

One easily forgotten benefit of Fidelity or Schwab is that most of us have an office nearby that we can go to when a problem arises. That's been useful for me, especially when managing my mother's account in her last couple of years and after her death. Even for my account, I've had a couple issues ...
by TheAncientOne
Fri Dec 22, 2017 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Paid Off $340K in Student Loans in 4 Years!
Replies: 21
Views: 1657

Re: Paid Off $340K in Student Loans in 4 Years!

A fabulous and inspiring story. It reminds me that we need to not just preach to the converted here but to encourage friends, family, and coworkers to spend less than they make and to invest those savings intelligently and consistently over the long term.
by TheAncientOne
Sun Dec 17, 2017 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Terminology: condo vs apartment
Replies: 26
Views: 2126

Re: Terminology: condo vs apartment

Daniel, you've got it right. The term condominium refers to a form of ownership. I've seen single family detached home projects in Florida for the elderly that have a condominium ownership, as the HOA does all landscape and exterior structure maintenance. The term apartment simply means a multiunit ...
by TheAncientOne
Fri Dec 15, 2017 10:07 am
Forum: Personal Consumer Issues
Topic: To buy or not in the SF Bay Area (yes another one)
Replies: 24
Views: 2422

Re: To buy or not in the SF Bay Area (yes another one)

Two additional points that I don't believe have been covered here. First, the growing congestion combined with the geography of jobs can put you at a severe disadvantage if you want/need to look for a new position. The last thing you want to do is to buy a home convenient to your job in Cupertino on...
by TheAncientOne
Thu Dec 14, 2017 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: I’ve made huge errors and hope it’s not too late
Replies: 35
Views: 4929

Re: I’ve made huge errors and hope it’s not too late

The key to long term success is to keep investing in good markets and bad. Nothing can be quite so disheartening as finally investing in equities just before the bear market begins. Notwithstanding all the talk on this site about the importance of low management fees, studies have shown that the ave...
by TheAncientOne
Sun Dec 10, 2017 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: Newlyweds in West Los Angeles
Replies: 8
Views: 1078

Re: Newlyweds in West Los Angeles

1. You won't be able to buy anything in or near (within one hour's commute) of West LA with that income. 2. Use your next couple months of free rent to find a rental that works for the two of you. 3. Start cranking up those retirement savings. If you want compound interest to be your friend, the mor...
by TheAncientOne
Sun Dec 03, 2017 11:30 am
Forum: Investing - Help with Personal Investments
Topic: Want to sell my Bitcoin, but when?
Replies: 90
Views: 8718

Re: Want to sell my Bitcoin, but when?

I'd sell first thing tomorrow morning. Forget about tax planning, you tripled your investment in something which you (and everyone else who's bought them) know nothing about.
by TheAncientOne
Sat Dec 02, 2017 8:56 pm
Forum: Investing - Theory, News & General
Topic: Which crash have you seen it before it is coming?
Replies: 134
Views: 10079

Re: Which crash have you seen it before it is coming?

I have a friend who went to work for a hedge fund in 2003 or 04. His first day there, the general partner had a meeting to discuss how the fund could best play what the partner saw as a bubble in housing prices. Not only was he way early, they misplayed how to invest on that theory and the fund went...
by TheAncientOne
Tue Nov 28, 2017 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: I'm worried the Vangaurd Target Retirement 2035 (VTTHX) might be too conservative
Replies: 27
Views: 1913

Re: I'm worried the Vangaurd Target Retirement 2035 (VTTHX) might be too conservative

As long as you're continuing to add money to your accounts, a heavy stock allocation is perfectly appropriate even if worried (as we should be) about the length of the bull market. Just accept that timing your investments is usually a losing game and that a new bear market will allow you to buy more...
by TheAncientOne
Mon Nov 27, 2017 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: Can I afford a $1,400,000 house
Replies: 93
Views: 8893

Re: Can I afford a $1,400,000 house

What interest rate are you paying on what appear to be medical school loans? Have you looked at refinancing them at lower rates if you haven't already? Unless this is absolutely, positively a unique home opportunity, I'd defer buying for a couple of years until the two of you burn down those loans. ...
by TheAncientOne
Thu Nov 23, 2017 11:09 am
Forum: Investing - Theory, News & General
Topic: Kass: Is This the End of Warren Buffett?
Replies: 138
Views: 23834

Re: Kass: Is This the End of Warren Buffett?

CyclingDuo, Kass actually called the bottom of the market when the S&P 500 hit the low at 666. How well he's done since then, who knows? For someone who loves to trade so frequently, I suspect he's missed out on much of the upswing since then. As Charlie Munger has pointed out, the best way to make ...
by TheAncientOne
Wed Nov 22, 2017 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: 501(c)(3) Public-Charity or a Private Foundation?
Replies: 32
Views: 1507

Re: 501(c)(3) Public-Charity or a Private Foundation?

We use the Fidelity donor advised fund for our donations. When I looked into the question of setting up a private foundation a few years ago, the answer given me was that it's usually not cost effective until you get into the 8-10 MM range. As I said, we didn't go down that route and those who have ...
by TheAncientOne
Tue Nov 21, 2017 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: Help DW gets fired, but then next day her boss offers her job back
Replies: 156
Views: 12360

Re: Help DW gets fired, but then next day her boss offers her job back

Given that you've got an infant at home, how about her countering with a 20% pay cut for a four day workweek? She should still look for a new job because whatever deal is struck, job stability can not be counted on.
by TheAncientOne
Tue Nov 21, 2017 11:24 am
Forum: Investing - Help with Personal Investments
Topic: My parents just received a large inheritance and I need to help them keep it
Replies: 12
Views: 2050

Re: My parents just received a large inheritance and I need to help them keep it

If they plan on living in a HCOL area like yours, can one or both get jobs to help with their expenses?
by TheAncientOne
Fri Nov 17, 2017 5:57 pm
Forum: Investing - Theory, News & General
Topic: An hour with David Swensen at Council of Foreign Relations
Replies: 25
Views: 2782

Re: An hour with David Swensen at Council of Foreign Relations

Doing a quick search, I can't find an article that describes Yale's asset allocation but I recall that they have a very small portion in domestic equities. What Swenson did, and others managing large endowments have followed, is to put a large percentage of their portfolio in illiquid assets such as...
by TheAncientOne
Wed Nov 15, 2017 9:47 pm
Forum: Investing - Theory, News & General
Topic: Do you subscribe to taking risk only on the equity side
Replies: 40
Views: 2622

Re: Do you subscribe to taking risk only on the equity side

Preferred stock is almost never suitable for individual investors. It has the return characteristics of bonds and the risk profile of equity. I believe that the primary purchasers of preferred stock are corporations who get to deduct 85% of dividends paid from taxable income. At least that's what it...
by TheAncientOne
Wed Nov 15, 2017 8:26 am
Forum: Personal Finance (Not Investing)
Topic: Sobering article for my 25 year old self
Replies: 57
Views: 7137

Re: Sobering article for my 25 year old self

Excellent point. For all the discussions about asset allocations, S&P 500 vs. Total Stock Market, how much to put into international funds, lowest possible fees etc., the most important factor for most will be a) what percentage of their income that they save, and b) the willingness and ability of p...
by TheAncientOne
Tue Nov 14, 2017 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Borrowing from parents - what interest rate?
Replies: 52
Views: 3921

Re: Borrowing from parents - what interest rate?

We are in the position that your parents are. We used the Applicable Federal Rate as posted each month by the IRS. You would be in the 3-9 year loan category. Here are the numbers for October 2017. Your parents will have to report the interest income on their income taxes while you do not get to ite...
by TheAncientOne
Mon Nov 13, 2017 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance
Replies: 8
Views: 1112

Re: Umbrella insurance

I have auto insurance and umbrella with Amica. They've never asked me to move my homeowners insurance which is with Farmers although I believe that when I first started with them, I sent them a copy of my coverage.
by TheAncientOne
Mon Nov 13, 2017 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: Help with daughters first investments
Replies: 12
Views: 804

Re: Help with daughters first investments

While I have a Vanguard account, I recommend Fidelity or Schwab for those just starting out. The ability to go to a nearby office is not to be discounted, especially for someone not familiar or comfortable with the world of investments. Definitely a Roth IRA for her.
by TheAncientOne
Sun Nov 12, 2017 2:58 pm
Forum: Personal Consumer Issues
Topic: Investing HOA reserve money?
Replies: 24
Views: 1307

Re: Investing HOA reserve money?

I'd stay away from equity investments in this situation. If you don't have immediate need for most of the money, CDs in the six month to two year range might make sense.
by TheAncientOne
Sat Nov 11, 2017 10:30 am
Forum: Investing - Theory, News & General
Topic: What percentage in state municipal bonds?
Replies: 9
Views: 994

Re: What percentage in state municipal bonds?

I've closed out my position in a municipal bond (CA) fund. I believe that the pension and retiree health care burdens facing state and local governments will be insurmountable and that part of the solution will be defaults and haircuts on a wide range of their bonds. Since I view my bond and cash po...
by TheAncientOne
Fri Nov 10, 2017 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: $23k credit card emergency
Replies: 76
Views: 8717

Re: $23k credit card emergency

One thing to add is, just like when you need to lose weight, you want to get your friends helping, not undercutting you. Let all your friends and your coworkers know that you need to get the credit card debt monkey off your back and that you need their help to encourage you to slash your spending. T...
by TheAncientOne
Sat Nov 04, 2017 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 10
Views: 1345

Re: Portfolio Review

Maybe I missed this in one of the posts but why are you taking until next August to pay off credit card debt? Pay it off today out of your emergency fund, then use the savings to rebuild that.
by TheAncientOne
Fri Nov 03, 2017 7:46 am
Forum: Investing - Theory, News & General
Topic: History of World Stock Market Bubbles, 1900-2014
Replies: 38
Views: 3788

Re: History of World Stock Market Bubbles, 1900-2014

Turning 70 in January so I signed up for myself. Spoke to a SS representative regarding my wife, age 63. She told me that as long as you're born by 1955 that the best way for her to take her benefits was to get spousal benefits at 66, then switch to full benefits at 70. This loophole has apparently ...
by TheAncientOne
Thu Nov 02, 2017 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio questions - 5 years from retirement (maybe)
Replies: 8
Views: 885

Re: Portfolio questions - 5 years from retirement (maybe)

I'd not spend too much time counting on the inheritance. Your Uncle Vinnie could drop dead tomorrow or he could spend the next ten years in a dementia unit. Big impact on what you'll get.
by TheAncientOne
Tue Oct 31, 2017 11:10 am
Forum: Investing - Theory, News & General
Topic: Roth IRA for children
Replies: 38
Views: 2873

Re: Roth IRA for children

Our children had the usual high school jobs (restaurant, shoe store) and we funded their Roth IRAs entirely so that they could use the money they earned for spending. We continued this while they were at college. They knew we were doing it and understood that this would be funds for a period in thei...
by TheAncientOne
Mon Oct 30, 2017 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: 401k beneficiary - whether or not to designate
Replies: 14
Views: 927

Re: 401k beneficiary - whether or not to designate

The beneficiary designation of a tax sheltered account (same for life insurance as well) overrules whatever your will or trust says. In the example you give, the niece would be recipient of your 401k funds and would be seen as gifting what is now her money. Is your 401k large enough that you will be...
by TheAncientOne
Mon Oct 30, 2017 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Bond Ladder
Replies: 7
Views: 618

Re: Muni Bond Ladder

I am increasingly skeptical as to the wisdom of investing in municipal bonds. The dawning recognition that state and local governments have made promises of pension and retiree health care to their employees that they will have no ability to fulfill should fill those holding municipal bonds with fea...
by TheAncientOne
Tue Oct 24, 2017 8:05 pm
Forum: Investing - Theory, News & General
Topic: I can't believe I am thinking this [Panic and Survival 2008-09]
Replies: 247
Views: 73146

Re: I can't believe I am thinking this [Panic and Survival 2008-09]

I hope someone remembers to bump this post up when the next bear market hits. Nothing like reading remarks from investors as they're going through the downward cycle rather than relying upon their memories several years later.
by TheAncientOne
Tue Oct 24, 2017 6:18 pm
Forum: Investing - Help with Personal Investments
Topic: No Cap on Match for 401K - Need Advice
Replies: 37
Views: 2674

Re: No Cap on Match for 401K - Need Advice

This is the easiest question posted here. You do whatever you have to max out a 401K account with a 50% match. Forget about Roth IRAs and asset allocation discussions. Since the 18K will be coming off the top of her paycheck, the loss in her paycheck will be less than she thinks because it will be c...
by TheAncientOne
Tue Oct 24, 2017 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell stock if it would eat through my carryover losses?
Replies: 4
Views: 474

Re: Should I sell stock if it would eat through my carryover losses?

With such a large carryover loss, why not sell mutual funds and/or stocks to use it up. You can then reinvest those funds into the exact same funds or stocks if you so desire, only with a much higher basis. No wash rule for gains.
by TheAncientOne
Tue Oct 17, 2017 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: 18 Year Old - Starting Investment
Replies: 8
Views: 806

Re: 18 Year Old - Starting Investment

I agree that a low cost index fund, 100%, makes the most sense for someone this young. If you can convince him to fund a Roth IRA with half his savings, that would be great. Alternatively if your parents are in a position to fund it for him (which is what we did with our kids), he can get off to a g...
by TheAncientOne
Tue Oct 10, 2017 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: [Boglehead vs Mr Money Mustache philosophies]
Replies: 203
Views: 16310

Re: [Boglehead vs Mr Money Mustache philosophies]

Notwithstanding MMM's idiosyncracies, there's a powerful message there that should resonate with BHers. Spending much less than you make is possible and does not necessarily mean diminishing the quality of your life. Saving 30% of your after tax income (MMM advocates for 50% or more) will have a far...