Search found 657 matches

by NightOwl
Thu Dec 31, 2015 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: A dead year, never get it back
Replies: 90
Views: 14392

Re: A dead year, never get it back

Actually, my hedge fund posted a 15.9% return -- I'd be happy to have you as an investor. :D

NightOwl
by NightOwl
Thu Dec 31, 2015 5:52 pm
Forum: US Chapters
Topic: Where is YDNAL?
Replies: 57
Views: 15724

Re: Where is YDNAL?

I remember that poster well -- username is YDNAL, but YDNAL always signed posts "Landy" (reversal of letters, obviously). When I posted for portfolio help years ago, Landy helped me a great deal. I don't post much now that I have everything set up and humming along pretty much on autopilot (tax loss harvesting aside), but I do very much hope that Landy is well and posts again soon.

NightOwl
by NightOwl
Mon Jul 20, 2015 11:22 pm
Forum: US Chapters
Topic: livesoft surpasses 40,000 posts!
Replies: 74
Views: 10441

Re: livesoft surpasses 40,000 posts!

Congratulations, livesoft - you have helped a lot of people on this forum. I look forward to the next 40k posts - see you on this thread in 2023?
NightOwl
by NightOwl
Wed May 13, 2015 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth: Schooling my CPA and getting charged for it!
Replies: 134
Views: 18144

Re: Backdoor Roth: Schooling my CPA and getting charged for it!

I too had to teach my tax preparer about the Backdoor Roth the first year it became available. I also had to tell her about the I-bond refund form -- she said she'd never had anyone request that before. She asked where I heard about these strategies, and I said, "Oh, Bogleheads.org -- you should check it out." So now I wonder if one of these "cpa" usernames is hers! I hope so.

NightOwl
by NightOwl
Sat Apr 25, 2015 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: Poll: Late-starters, check in with portfolio status
Replies: 4
Views: 1395

Re: Poll: Late-starters, check in with portfolio status

I was 35 when I joined Bogleheads 6 years ago, with a significantly negative net worth (~$70,000 in student loans) and very little investing experience. In my case, I decided to to stay in school until my early 30s (Ph.D.), then had a couple of roughly break-even years before my earnings took off in my non-Ph.D.-related job. I was lucky to get a job that pays as well as my current job. With the Bogleheads' help, I am more or less on track in terms of retirement investments, though getting there has entailed remaining a renter -- purchasing Manhattan real estate would essentially turn all of my taxable savings into a single illiquid investment, and I don't want to take that risk. Given projected Social Security (best for us not to discuss th...
by NightOwl
Fri Mar 27, 2015 12:03 pm
Forum: Personal Investments
Topic: Can you really know your AA until you've hit a bear market?
Replies: 74
Views: 9543

Re: Can you really know your AA until you've hit a bear mark

Frankly, I don't know if 2008 is a good example of investing in a bear market since it recovered so quick, especially if you were a young investor with a small portfolio. Although, in the midst of the downturn, one did not know if the market was going to come back. One should not assume that the next bear will be the same. The market could stay flat for 10-20 years after that. Could your retirement plans handle that? This. I don't think that 2008 was a particularly good test because of the V-shaped recovery. I've read so many self-congratulatory posts here about staying the course in the aftermath -- good, but it's not like we had to hold out for years. Having invested through that period, most days were eventful: down, up, big moves. Down...
by NightOwl
Tue Mar 17, 2015 10:39 pm
Forum: Investing - Theory, News & General
Topic: Vanguard - The New Bond King - WSJ
Replies: 27
Views: 9434

Re: Vanguard - The New Bond King - WSJ

From the WSJ article:
Mr. Barrickman said he doesn’t care to compete for the biggest personality in the business. “That’s not my style,” he said.
Love it.

NightOwl
by NightOwl
Mon Mar 02, 2015 4:30 pm
Forum: Personal Investments
Topic: it it too late buying more stocks and bond ??
Replies: 18
Views: 4689

Re: it it too late buying more stocks and bond ??

I had a lump sum of money equivalent to 10% of my portfolio become available last Thursday, and I invested according to my AA last Thursday. I am confident that 30 years from now I will be glad that I did so.

NightOwl
by NightOwl
Mon Mar 02, 2015 4:27 pm
Forum: Investing - Theory, News & General
Topic: Market Beating Recipe
Replies: 19
Views: 3035

Re: Market Beating Recipe

Faster computers and better algorithms than anyone else. Good luck.

NightOwl
by NightOwl
Wed Jan 07, 2015 4:25 pm
Forum: Personal Investments
Topic: All my eggs in one basket?
Replies: 11
Views: 1727

Re: All my eggs in one basket?

At the very least, I'd strongly consider adding enough to the Vanguard account to get Flagship status ($1 million), as I've heard that Flagship reps can be particularly helpful.

Personally, I'd have everything at Vanguard if I could -- I'll eventually roll my Fidelity 401k to a Vanguard IRA. I do think there's a somewhat reasonable fear of being locked out of one's accounts for a few days, so I'd keep some money in a bank checking or savings account, but I don't see much need to diversify brokerages or fund companies.

NightOwl
by NightOwl
Mon Jan 05, 2015 9:47 pm
Forum: Investing - Theory, News & General
Topic: Bogleheads 2015 Hedge Fund Contest
Replies: 227
Views: 48967

Re: Bogleheads 2015 Hedge Fund Contest

Rannumgen Capital is back after a one-year hiatus.

Longs:
CTG, Computer Task Group
DMND, Diamond Foods
THRX, Theravance

Shorts:
AKAO, Achaogen
AOSL, Alpha and Omega Semiconductor
TGH, Textainer Group Holdings

NightOwl
by NightOwl
Sun Jan 04, 2015 10:23 am
Forum: Personal Investments
Topic: The riskiest (Bogleheads) portfolio you can think of
Replies: 15
Views: 2564

Re: The riskiest (Bogleheads) portfolio you can think of

Riskiest in the long run? It might be 100% cash. Not the most aggressive, but those are different things.

NightOwl
by NightOwl
Fri Dec 26, 2014 11:22 pm
Forum: US Chapters
Topic: My Christmas Message To You -- 70 Years Ago.
Replies: 58
Views: 8978

Re: My Christmas Message To You -- 70 Years Ago.

Thank you, Taylor, for what you did then and for what you are doing now.

NightOwl
by NightOwl
Fri Dec 26, 2014 11:20 pm
Forum: Personal Investments
Topic: Do I-Bonds Count (as part of your bond allocation)?
Replies: 24
Views: 3953

Re: Do I-Bonds Count (as part of your bond allocation)?

I call my currently owned I bonds my "emergency fund." Now that I have moved my e-fund into I bonds over the past few years, future purchases of I bonds ($15k/year including $5k/year tax refund in paper I bonds) will be counted as part of my fixed income allocation. But really it's all one pot of money, and the names I assign subsets of dollars are fairly immaterial.

NightOwl
by NightOwl
Fri Dec 26, 2014 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: What price are you planning to pay for your next car?
Replies: 91
Views: 11314

Re: What price are you planning to pay for your next car?

I think that there's an excellent chance that I will live and die without ever having owned a car. If you gave me one now, I'd give it back. Maybe I'll get one in retirement. Who knows? I suppose my answer is therefore $0, but I didn't vote.

NightOwl
by NightOwl
Wed Dec 24, 2014 11:33 am
Forum: Investing - Theory, News & General
Topic: Have you ever hoped for a correction?
Replies: 52
Views: 5912

Re: Have you ever hoped for a correction?

This is kind of a random thought I have. I think I'd be happier if the market corrected. Hi EarlyStart, It's not at all a random thought, nor is it idiosyncratic to you. William Bernstein (poster wbern on this forum) has said : For the young investor in the saving phase, stocks aren’t that terribly risky; in fact, the young investor should get down on his or her knees and pray for a brutal bear market, which will enable him or her to buy stock shares cheaply. A couple of points to consider, however: 1. Obviously, the market doesn't care what you root for, so I think in general it's better just to take what comes and not invest any energy in wishing for a particular outcome. 2. When one (not necessarily you) openly roots for a correction, i...
by NightOwl
Wed Dec 24, 2014 11:15 am
Forum: Personal Investments
Topic: delete [Edward Jones rep trying to pull me away from lazy 3]
Replies: 37
Views: 5665

Re: Edward Jones rep trying to pull me away from lazy 3 fund

Anyway, I kindly tell him thank you but today most of my funds are in this lazy 3 fund portfolio (VTI,VXUS,BND) all through Vanguard, with extremely low expense ratios, just covering the total US, and total intl', and total us bond markets. I just add to those to keep it about a 60/20/20 split and kick back. I told him I appreciate his effort, nice to see, but I'm not a likely prospect for him, because it's probably hard to beat what I have now with my indexes. Well, he's ambitious. Hand written cards to me regarding his services and suggestions, and a packet with a note to me arrived in the mail today with an article on 'beating the index' Hi YoungBoglehead, You're obviously doing a lot of things well, so congratulations on getting starte...
by NightOwl
Tue Dec 23, 2014 10:37 pm
Forum: Investing - Theory, News & General
Topic: Who tilts to Small Caps but not REITs?
Replies: 44
Views: 5449

Re: Who tilts to Small Caps but not REITs?

Browser wrote:Not to mention that many SCV funds have a significant allocation to REITS. For example, IJS and VBR both have about 11% in REITs.
I tilt to small value which, as noted above, includes a heavier REIT allocation than a TSM investor has. I simply don't have room in tax-advantaged for a REIT fund once I've reached my bond and small value targets. Not sure I'd add a standalone REIT fund even if I did have space, but it's likely to remain a moot issue for me.

NightOwl
by NightOwl
Wed Dec 10, 2014 2:00 am
Forum: Investing - Theory, News & General
Topic: Harvey paper says re-balancing adds risk
Replies: 73
Views: 8185

Re: Harvey paper says re-balancing adds risk

I've read a lot of threads about rebalancing -- doesn't it always come down to whether we're in a mean reversion world or a momentum world? Do we ever know which one we're in? Do we pay Mr. Harvey to assume we're in a momentum world and act accordingly?

NightOwl
by NightOwl
Wed Dec 10, 2014 1:38 am
Forum: Investing - Theory, News & General
Topic: What is your opinion about "tilting?"
Replies: 116
Views: 16077

Re: What is your opinion about "tilting?"

I have a moderate tilt to small value domestically (my Roth is 100% VG small value), and a somewhat heavier tilt to small within my international equities allocation. I consider my domestic small value tilt a form of REIT tilt as well, though I don't hold a separate REIT fund. I'm not at all evangelical about tilting, though having started out as a tilter, I do plan to stay the course throughout my investing career, come hell, high water, or underperformance. I think these tilts work, if at all, over a long period of time, and I'm fully aware that even over that long period of time I might underperform the 3-fund portfolio.

The poll was fun! I choose the "I like to participate in polls" options whenever Nisi offers it.

NightOwl
by NightOwl
Tue Dec 09, 2014 9:52 pm
Forum: Investing - Theory, News & General
Topic: Poll: Dividend income to match annual salary?
Replies: 39
Views: 5344

Re: Poll: Dividend income to match annual salary?

OP, the way you are asking the question, it seems as though you think that achieving this goal would be common for members of this forum, whereas it seems to me that it would be an incredibly rare accomplishment (at least for people who got there by saving salary, not via inheritance or other major windfall).

I would consider it impressive enough for dividends to cover spending needs beyond those covered by social security and (should one be so blessed) pension -- we're talking about a roughly 2% withdrawal rate (whether achieved through dividends or total return is of small relevance). I think that very few people will get there.

NightOwl
by NightOwl
Tue Dec 09, 2014 9:40 pm
Forum: Personal Investments
Topic: Where do I start?
Replies: 17
Views: 2579

Re: Where do I start?

Invest the money into a Savings Account (FDIC Insured to $500K) paying as much interest as you can find (It will be less than 1%). Then spend your leisure time reading and studying things before you invest in riskier assets. There is no Rush to do anything. It is better to not lose money now than make money. FDIC insurance covers only $250k per depositor per bank. The OP should open two savings accounts at two different banks. Hi AviN, My husband and I From the FDIC website : Joint Accounts: Two or more people who are co-owners of funds can have FDIC deposit insurance coverage under the joint ownership category. To qualify, each owner must have equal withdrawal rights to the funds and there cannot be beneficiaries named on the account. Und...
by NightOwl
Wed Dec 03, 2014 6:31 pm
Forum: Personal Consumer Issues
Topic: GMAT prep
Replies: 28
Views: 6363

Re: GMAT prep

Hi n00b_to_investing, I think it makes sense to prepare for an exam using materials written by the people who write that exam. I recommend going here and purchasing what the official GMAT site calls the Premium GMAT Study Collection. It is on sale for $250 (perhaps someone wants to purchase this for you as a holiday gift?) and contains: The Official Guide for GMAT® Review, 2015; The Official Guide for GMAT® Verbal Review, 2015; The Official Guide for GMAT® Quantitative Review, 2015; GMAT® Paper Tests I, II, and III; GMAT Focus® Online Quantitative Diagnostic Tool, set of three; and GMATPrep® Question Pack 1, GMATPrep® Exam Pack 1, and IR Prep Tool. The Premium GMAT® Study Collection is our all-inclusive set of study products, featuring more...
by NightOwl
Tue Dec 02, 2014 3:26 pm
Forum: Investing - Theory, News & General
Topic: POLL: Should investors have a separate emergency fund?
Replies: 58
Views: 7303

Re: POLL: Should investors have a separate emergency fund?

Individual circumstances matter a lot here.To give just one example, I'd say that an investor whose investments are all in tax-advantaged accounts needs a separate emergency fund, while an investor with a large taxable account probably does not. I do maintain a separate emergency fund, though I've spent the last few years moving it into I Bonds.

NightOwl
by NightOwl
Sun Nov 30, 2014 9:22 am
Forum: Personal Investments
Topic: IRA 100% bonds inevitable??
Replies: 46
Views: 5942

Re: IRA 100% bonds inevitable??

Hi Everlearning,

Do you not have a 401(k), 403(b), or similar workplace retirement account? I hold my bonds in my 401(k), and use my Roth for small value (highest expected return, though of course that could easily go awry).

NightOwl
by NightOwl
Fri Nov 28, 2014 11:26 am
Forum: Investing - Theory, News & General
Topic: Why do we like dividends?
Replies: 159
Views: 22392

Re: Why do we like dividends?

I don't like dividends in my taxable account, and I try to minimize them as much as possible while remaining invested in equities. Instead of that money staying within my mutual funds and ETFs and coming out taxed as long-term capital gains, it comes out as income taxed (in my case) at a rate much higher than the capital gains rate. And it is offset by a NAV decrease, often obscured by other market action, and no, the price doesn't necessarily "go back up." I am indifferent to dividends in my tax-advantaged accounts (they get re-invested), and I would be indifferent to dividends if I were in a lower tax bracket. I can't think of many cases in which my emotion toward a dividend would be more positive than "indifferent." N...
by NightOwl
Sun Nov 23, 2014 9:19 pm
Forum: Personal Investments
Topic: My 2015 goal is to get to $100k NW. Is it attainable?
Replies: 5
Views: 1697

Re: My 2015 goal is to get to $100k NW. Is it attainable?

niceguy7376 wrote:You plan on contributing 17.5K for 401k
$18,000 for 2015: IRS 2015 Limits

NightOwl
by NightOwl
Sun Nov 23, 2014 9:17 pm
Forum: Personal Investments
Topic: My 2015 goal is to get to $100k NW. Is it attainable?
Replies: 5
Views: 1697

Re: My 2015 goal is to get to $100k NW. Is it attainable?

Hi Jetf, I like your savings plan -- why not think in terms of "savings goals" rather than "net worth goals"? As you note, you have control over your savings, not over market returns -- whether you end 2015 below or above $100k net worth is too heavily dependent on the latter. As one who spent a few years setting and tracking net worth goals, I can tell you that it's a weird feeling to exceed ambitious savings targets but still feel like one has failed to reach a set goal due to returns. Alternately, when market returns are good, one can be tempted to think, "hey, I'm gonna reach that net worth goal without saving quite as much -- maybe I can spend this money on x, y, or z instead of saving it!" I suppose I cou...
by NightOwl
Thu Oct 30, 2014 1:35 pm
Forum: Personal Consumer Issues
Topic: A Little Common Core Math problem
Replies: 97
Views: 7626

Re: A Little Common Core Math problem

I'm all for pragmatism -- if it's a multiple-choice test, why not try the answer choices? It's a very effective approach.

That said, if I were going to do algebra, I'd say that the cat is x and the dog is 8x. 8x + x = 63, so 9x = 63, so x = 7. Dog is 8x, so (8)(7) = 56.

The longer conversation is that this is a ratio question. The ratio of cat to dog is 1:8. You can solve ratios by turning the numbers into algebraic quantities (1x and 8x), adding them together, setting them equal to the total, solving for the multiple (x), and then looking back to the question to see which quantity they want (the 1x or the 8x).

I have no idea why the YMCA teachers couldn't solve this question -- that would give me pause.

NightOwl
by NightOwl
Wed Oct 29, 2014 4:08 am
Forum: Personal Investments
Topic: Is a 0.9% wrap fee too high to consider?
Replies: 8
Views: 1310

Re: Is a 0.9% wrap fee too high to consider?

Hi Eschaef,
Please check the Wiki entry 401k: Expensive and Mediocre Choices. [Edited to add link.] I believe this topic is (David) grabiner's work.Here's what I think is the most pertinent text:
A reasonable rule of thumb is to consider investing in a taxable account if the product of the extra costs and the number of years you will stay in the plan exceeds 30%. That is, if you pay 1.70% expenses rather than 0.20%, you should still invest in the plan unless you are reasonably certain that you will stay with the employer for more than 20 years. The reason is that a long-term investment, even in a tax-efficient stock fund, is likely to lose 30% or more of its value to taxes on the dividends and capital-gains tax when you sell.[18]
NightOwl
by NightOwl
Sat Oct 25, 2014 1:56 pm
Forum: Investing - Theory, News & General
Topic: 100% of [surveyed] economists were dead wrong about yields
Replies: 33
Views: 5805

Re: 100% of [surveyed] economists were dead wrong about yiel

And if someone surveys these same economists again today, they will all be chastened by their prior failure and admit that they don't know what will happen to yields gladly provide yet another prediction so that we can have more hand-wringing threads here beginning "Given the consensus among economists that interest rates have to go up in the near future…" :D

NightOwl
by NightOwl
Fri Oct 24, 2014 11:34 pm
Forum: Personal Investments
Topic: Is Wells Fargo misleading my friend?
Replies: 21
Views: 3901

Re: Is Wells Fargo misleading my friend?

I think the "20% in a single stock" is the really disturbing part. Since this is "inherited money" I'm assuming it is a reasonably substantial sum... and come to think of it, these days, isn't it perfectly reasonable to buy odd lots? In a portfolio of, let's say, $100,000 or more, I can't think of any sensible reason for putting 20% of a substantial portfolio all into a single stock--as opposed to, let's say, 4% in each of five different stocks (even Jim Cramer says you need five!) I mean, I might make an exception if the single stock were Berkshire Hathaway. I'd say "That's not my thing, I think it's a mistake, but it's not crazy." But all of it in the stock of a) one b) bank? All in the financial sector? And...
by NightOwl
Thu Oct 23, 2014 11:13 am
Forum: Investing - Theory, News & General
Topic: What Are We Doing To Our Young Investors?
Replies: 29
Views: 5233

Re: What Are We Doing To Our Young Investors?

Having said all this, I really wonder if these investors are removing money because of downturns or just because they needed some money and didn't have any other funds--nothing for short term goals, nothing for emergencies. Or because they assumed it was part of severing ties with their previous employer and aren't aware of the possibility or benefits of rolling it into an IRA. Yes, that too. It's really surprising how little help some companies provide employees on 401k rules and procedures. Paul I was asked to serve on my company's 401k committee by virtue of being the only employee who has ever requested the plan documents. My reward was to be told essentially never to tell a fellow employee anything about the plan -- I need to send emp...
by NightOwl
Mon Oct 20, 2014 1:53 pm
Forum: Personal Investments
Topic: How do so many HCEs contribute the max to 401k
Replies: 30
Views: 4958

Re: How do so many HCEs contribute the max to 401k

Hey all- I might have brought this up in the past, but I repeatedly read, mostly on portfolio check threads, how people with high income contribute 17.5k to their 401k. It seems so common but from everything I've read it seems like a rarity for this to be possible. Is there something I'm missing? My handbook at work states that I have a 3% limit as a HCE but what would happen if I did more? Why can so many people on the forum do this? Thanks! This is really a company policy issue. There are ways to remedy a non-discrimination test failure -- increasing the employer match and/or employing a "safe harbor" plan (which essentially increases the employer match) have already been mentioned. A company can also auto-enroll employees in t...
by NightOwl
Thu Oct 16, 2014 9:59 am
Forum: Investing - Theory, News & General
Topic: Poll: which portion of the chart shows higher volatility?
Replies: 26
Views: 2983

Re: Poll: which portion of the chart shows higher volatility

That person is either having a heart attack or telling a lie -- not sure which.

NightOwl
by NightOwl
Wed Sep 24, 2014 1:38 pm
Forum: Investing - Theory, News & General
Topic: Can Active Fund Strategy Beat Vanilla Index Fund?
Replies: 26
Views: 4275

Re: Can Active Fund Strategy Beat Vanilla Index Fund?

Can it? Yep.

Has it? Yep.

Will it? Dunno.
by NightOwl
Tue Jul 29, 2014 1:28 am
Forum: Personal Finance (Not Investing)
Topic: Buying property - frank responses requested
Replies: 30
Views: 4738

Re: Buying property - frank responses requested

Legacy you have to make your own peace with that. My view is leaving your spouse in a reasonable position at your death is very important, legacy to kids less so (assuming they don't have large student loans). Hi Curious1, One of my parents is currently thinking through a similar scenario, and in that analysis I am one of the "kids." I see that up thread you say that your children are are gainfully employed with no loans. I can also speak to the "from a previous marriage" thing; that's my experience too, and I know that it can be a complicating factor. From my pov, I would want to see your spouse taken care of, and I would want you to enjoy the money you have earned and saved; if there's an inheritance at the end of tha...
by NightOwl
Sat Jul 12, 2014 9:12 am
Forum: Personal Consumer Issues
Topic: SAT preparation
Replies: 33
Views: 5833

Re: SAT preparation

My daughter will be a junior this year. She is very good student (IB student, takes numerous AP, straight A, does research in Univ of Miami Breast Cancer Institute, was spelling bee champ in Broward and list goes on) She thinks that she needs SAT coaching. I wanted to find out from those who have scored well on SAT /PSAT or whose kids have scored very well or who otherwise know the tips to prepare . Can you share if kids do practice tests alone via say Kaplan, College Board books or do they go for individual coaching? If you know good tutors in South Florida area you may share that as well. Cheers, Amit Hi Amit, Here's a link to a post from 2010 -- it would still be my advice today: http://www.bogleheads.org/forum/viewtopic.php?p=788910#p7...
by NightOwl
Sun Jun 01, 2014 10:22 pm
Forum: Personal Consumer Issues
Topic: Heading to Sonoma next week, recommendations please
Replies: 15
Views: 1320

Re: Heading to Sonoma next week, recommendations please

Flying to SFO Wednesday, renting a car and heading up to Sonoma after a stop at Muir woods. Our rental is just outside of Windsor. I know there are a wealth of places to eat and multiple wine tasting rooms in Healdsburg. Does anyone have any specific recommendations for this area? Looks like J vineyard and wineries is very close to where we are staying and it's pretty well rated so we may stop there if we have time on our way up. We will be a group of five. Taking a wine tour on Thursday. I'm planning on spending the bulk of the time wine tasting, dining, and floating in the pool. Hi JonnyDVM, Well, this is something that I know way TOO much about; I had to hold myself back! Right off the bat, I will tell you that I am a Pinot Noir enthusi...
by NightOwl
Tue May 27, 2014 11:32 pm
Forum: Personal Consumer Issues
Topic: in-laws/student loans
Replies: 57
Views: 5040

Re: in-laws/student loans

Hi VGSailor, It seems to me as though you were put from the start of this mess in a no-win situation; at this point I think we're strictly in damage-control mode. I'm guessing that you have what your in-laws consider to be "lots of money"? They certainly seem to be treating you as a piggy bank that should pay out and keep silent. I want to say right off the bat that I am not of the "never co-sign" mindset. I would co-sign for my siblings for sure. And, if my wife asked me to (did your wife ask, or did her parents ask?), I would co-sign for her siblings. So here we are. If I were you, I'd start by planning how best to handle the worst-case scenario -- paying the entire amount of the loans you've co-signed -- and coming to...
by NightOwl
Tue May 27, 2014 8:42 pm
Forum: Personal Investments
Topic: Wait to DCA During Recession
Replies: 17
Views: 3009

Re: Wait to DCA During Recession

Focus on a robust college experience also, for enhanced longterm financial security... This^. At age 17, you should focus on maximizing your income so that you can save as much as possible. That way, whether returns over your lifetime are robust or muted, you will still have more than enough money for retirement and won't have to worry about timing the market -- and that's a good thing, because you can't time the market even if you spend lots of time trying. I agree with the suggestion that you should read recommended books from the Wiki; that will help you come up with a simple but effective plan. Ten years from now you might want to tweak that plan, but you probably won't, as the more you learn, the more you'll value what one of our foru...
by NightOwl
Sun May 11, 2014 12:16 am
Forum: Investing - Theory, News & General
Topic: Poll: Do you own Total Bond Market?
Replies: 50
Views: 6612

Re: Poll: Do you own Total Bond Market?

I hold 100% of my bond allocation in my 401(k) in Advantage Class shares of Fidelity's Spartan U.S. Bond Index Fund (FSITX), which I consider a near-equivalent to Admiral shares of Vanguard's Total Bond Fund Index Fund (VBTLX).

NightOwl
by NightOwl
Tue Apr 08, 2014 3:16 pm
Forum: Investing - Theory, News & General
Topic: Market falling emotions
Replies: 31
Views: 3400

Re: Market falling emotions

Got my monthly paycheck yesterday. Investable money went into the market today. I looked at my spreadsheet last night to determine what I needed to buy. Other that its effect on what I need to buy once per month, market movement rates a big "don't know, don't care" from me.

NightOwl
by NightOwl
Thu Mar 20, 2014 2:07 am
Forum: Personal Consumer Issues
Topic: Less is Beautiful
Replies: 29
Views: 5695

Re: Less is Beautiful

It's funny for me to read these threads, because I have the opposite problem (if one wishes to term it that). I've always been abnormally uninterested in owning things - I'm living now in a mostly empty apartment that I love for its uncluttered lightness. But I've been trying to learn to buy more things to at least minimally connect with people"s expectations for the sorts of things one ought to own (a dresser, for instance - people seem to feel very strongly that one should own a dresser). So maybe the downsizers and simplifiers and I will all meet in the middle. I will say that I don't love the term "minimalist," as I think the design connotation there is white plastic and cold metal - very modern and industrial. That's not...
by NightOwl
Sat Mar 08, 2014 11:16 pm
Forum: Investing - Theory, News & General
Topic: The Stock Market's Relentless Bid, Explained
Replies: 22
Views: 4314

Re: The Stock Market's Relentless Bid, Explained

it's called a theoretical question, or a thought experiment, if you will.(Snip) i haven't seen it asked anywhere on this forum. Hi ERMD, I'd recommend searching for "what if everyone indexed?", specifying site:bogleheads.org. It is a good question, in that it signals an interest in the theory behind indexing, but alas it is a relatively common one. I have posted my typical answer in several of those threads. In short, my typical answer finds the hypothetical highly unlikely: "You guys are hanging out in classier company than I am. I am not only the only person I know who indexes, I am one of a few people I know who own mutual funds rather than single stocks. My peers all think that I am crazy to index - smart people should b...
by NightOwl
Fri Mar 07, 2014 3:14 pm
Forum: Personal Consumer Issues
Topic: Does a Car Lease Make Sense in this Situation?
Replies: 8
Views: 1470

Re: Does a Car Lease Make Sense in this Situation?

DFWinvestor wrote:I am normally not a fan of leasing but for her situation it might just be a reasonable option, or the best option----if she can get a short enough term to not be stuck in a lease after the move.

I think it would be worth exploring buying a used car in the 10K-15K range and selling it when she is ready for the move. A five year loan on a car at that price point would be a very low monthly expense and could potentially be cheaper and after 1.5-2 years she could probably get what is left on the loan for the car.
Excellent suggestion -- thanks for the reply. I too dislike the thought of leasing a car, but it's probably better on balance than paying thousands per year for a parking space in NYC!

NightOwl
by NightOwl
Fri Mar 07, 2014 3:12 pm
Forum: Personal Consumer Issues
Topic: Does a Car Lease Make Sense in this Situation?
Replies: 8
Views: 1470

Re: Does a Car Lease Make Sense in this Situation?

Leesbro63 wrote:The other issue is that generally you can't lease a car "for a year or two"....a unless you are willing to pay a huge amount. Most leases are 36 months. Maybe buy a Honda Civic or Toyota Corolla. If she decides to do the NYC thing, the depreciation will be low compared to most other cars. If she's used to a Saab, she might not be comfortable in a car that small. She could do a low-end Toyota Camry or Honda Accord for not much more. I hope this helps, but there really are no cheap solutions in her situation.
I like the Camry/Accord option -- I'll see what she thinks about that. Thanks for the helpful reply.

NightOwl
by NightOwl
Fri Mar 07, 2014 3:08 pm
Forum: Personal Consumer Issues
Topic: Does a Car Lease Make Sense in this Situation?
Replies: 8
Views: 1470

Re: Does a Car Lease Make Sense in this Situation?

Watty wrote:A big question is how your state handles sales tax on cars. The problem is that if she buys a car and has to pay 7% sales tax then buying and selling it a year later would be expensive.

Leasing has a lot of pitfalls that can cause problems like if the car is in a major accident, even if it repaired well that will likely cause problems then the car is turned in.

For just a year I would shop around and find out if you can get a good deal on a monthly car rental instead of leasing or buying. Be sure to check a lot of digerent companies since monthly prices will likely vary widely.
6% sales tax (Pennsylvania). Oof. Thanks for alerting me to that issue. I'll look into monthly rentals -- thanks for the suggestion!

NightOwl
by NightOwl
Thu Mar 06, 2014 10:57 pm
Forum: Personal Investments
Topic: Your stock/bond mix for those ~20 yrs from retirement
Replies: 42
Views: 4851

Re: Your stock/bond mix for those ~20 yrs from retirement

40 years old, 20+ years from retirement. I'm 80-20. I've decided to pursue a strict age-20 bond allocation from here on out, so will increase bonds 1% per year to a retirement portfolio of 60/40. But we'll see if I actually retire in 20 years. Money-wise I will probably be in good shape, but I like what I do.

NightOwl