Search found 204 matches

by coachd50
Sun Jul 21, 2019 9:07 pm
Forum: Personal Investments
Topic: Continue 403b or start roth ira
Replies: 65
Views: 1908

Re: Continue 403b or start roth ira

I saw briefly a quick mention of the variable annuity fees...something else the OP needs to look into is PLAN FEES. As a teacher I forego any 403(b) contributions in my district and just fully fund my ROTH IRA because the 403(b) plan includes 1.25% "mortality expense fee" as well as the individual f...
by coachd50
Sun Jul 21, 2019 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

I can think of no simpler, more effective lesson to the power of compound interest than the 'would you rather have a million dollars today or a penny doubled every day for a month? question. Stole the words out of my mouth. Pretty telling. With some good visuals it would be highly effective to a cl...
by coachd50
Sun Jul 21, 2019 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

I can think of no simpler, more effective lesson to the power of compound interest than the 'would you rather have a million dollars today or a penny doubled every day for a month? question. Stole the words out of my mouth. Pretty telling. With some good visuals it would be highly effective to a cl...
by coachd50
Sun Jul 21, 2019 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

I think the worst obstacle is that kids think math is simply boring. And it should be anything but. So tread carefully. You are not wrong about that. I see lots of examples of classrooms that are boring and lots of classrooms that are not boring. The feedback I get is that whatever else, no one was...
by coachd50
Sat Jul 20, 2019 9:27 pm
Forum: Personal Investments
Topic: Just sat through a wealth-management sales pitch.
Replies: 96
Views: 10103

Re: Just sat through a wealth-management sales pitch.

Cash in the bank is a straw man. Deceptive practices is exactly what we are talking about. But I am not going to say more because this conversation is already readily available all over the place. I do have no problem respecting your argument, but I do not agree. Why would you say it is a strawman ...
by coachd50
Sat Jul 20, 2019 8:04 pm
Forum: Personal Investments
Topic: Just sat through a wealth-management sales pitch.
Replies: 96
Views: 10103

Re: Just sat through a wealth-management sales pitch.

Cash in the bank is a straw man. Deceptive practices is exactly what we are talking about. But I am not going to say more because this conversation is already readily available all over the place. I do have no problem respecting your argument, but I do not agree. Why would you say it is a strawman ...
by coachd50
Sat Jul 20, 2019 5:52 pm
Forum: Personal Investments
Topic: A little discouraged with earnings, is it really this slow?
Replies: 66
Views: 9445

Re: A little discouraged with earnings, is it really this slow?

You realize you are asking this during a great bull market? But seriously, you are doing awesome. https://www.forbes.com/sites/greatspeculations/2019/03/07/can-the-bull-market-run-for-another-10-years/#3dc3db127069 I was going to mention something along those lines too. If this is SLOW for you, you...
by coachd50
Sat Jul 20, 2019 5:27 pm
Forum: Personal Investments
Topic: A little discouraged with earnings, is it really this slow?
Replies: 66
Views: 9445

Re: A little discouraged with earnings, is it really this slow?

I would say you are light years ahead of most of your contemporaries. Now, it does depend on your goal though. Are you going to be on a List with Bezos, Gates, Buffett at this rate? NOPE. Are you going to be on a list with Beyonce, Lebron, Paul McCartney at this rate? Nope. Will you have a 200 ft ya...
by coachd50
Sat Jul 20, 2019 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: What do I need to know about becoming a teacher in California?
Replies: 25
Views: 2135

Re: What do I need to know about becoming a teacher in California?

I agree no one should enter the profession for the big bucks, but it doesn’t sound like that’s OP’s motivation. Rather, OP understands there would be a pay cut and wants to clearly understand the financial implications. I’m not intimately familiar with CalSTRS but I believe it is more secure than t...
by coachd50
Sat Jul 20, 2019 2:47 pm
Forum: Personal Investments
Topic: Just sat through a wealth-management sales pitch.
Replies: 96
Views: 10103

Re: Just sat through a wealth-management sales pitch.

Cash in the bank is a straw man. Deceptive practices is exactly what we are talking about. But I am not going to say more because this conversation is already readily available all over the place. I do have no problem respecting your argument, but I do not agree. Why would you say it is a strawman ...
by coachd50
Sat Jul 20, 2019 2:33 pm
Forum: Personal Investments
Topic: Just sat through a wealth-management sales pitch.
Replies: 96
Views: 10103

Re: Just sat through a wealth-management sales pitch.

When still in my twenties, to celebrate a promotion, I bought a beautiful used Mercedes. Totally inappropriate ... outrageous maintenance needs, ridiculous repair and parts costs, insurance through the roof and it handled no better than my traded-in Mercury Capri. Was I ripped off by the persuasive...
by coachd50
Sat Jul 20, 2019 1:42 pm
Forum: Personal Investments
Topic: Just sat through a wealth-management sales pitch.
Replies: 96
Views: 10103

Re: Just sat through a wealth-management sales pitch.

WOW.. while I understand that members of this board generally don't see value in the financial services industry, the level of disdain is somewhat surprising. I am sure you could make similar claims to almost any group of professionals. Petroleum engineers -- those people are helping destroy the Ea...
by coachd50
Sat Jul 20, 2019 12:29 pm
Forum: Personal Investments
Topic: Just sat through a wealth-management sales pitch.
Replies: 96
Views: 10103

Re: Just sat through a wealth-management sales pitch.

WOW.. while I understand that members of this board generally don't see value in the financial services industry, the level of disdain is somewhat surprising. I am sure you could make similar claims to almost any group of professionals. Petroleum engineers -- those people are helping destroy the Ear...
by coachd50
Sat Jul 20, 2019 11:29 am
Forum: Personal Finance (Not Investing)
Topic: What do I need to know about becoming a teacher in California?
Replies: 25
Views: 2135

Re: What do I need to know about becoming a teacher in California?

Hi everyone, I’ve been reading bogleheads for a while now and greatly respect its collective wisdom. I hope you can impart some of it on me. I currently work in a completely different field and am considering switching careers and becoming a teacher in California. I am 29 and have an undergraduate ...
by coachd50
Fri Jul 19, 2019 6:29 pm
Forum: Investing - Theory, News & General
Topic: What are the benefits of 403(b) over IRA?
Replies: 17
Views: 1356

Re: What are the benefits of 403(b) over IRA?

Advantage IRA: In an IRA you are free to move the money around as you wish whenever you wish. If you have a 403(b) your money is generally locked in with your employer's plan for the duration of your employment and can only be rolled into another plan or IRA after you leave. I think this is changin...
by coachd50
Thu Jul 18, 2019 2:51 pm
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 101
Views: 5617

Re: From ex-dividend to distrubution where is my money?

Exactly, they are not "taking value". They are saying that on August 1, they are going to take the dividend out of the stock and pay it. And they make this official on July 9th, so the market says "hey, this company is going to have less cash soon, because it will pay a dividend out, so it will be ...
by coachd50
Thu Jul 18, 2019 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Why Personal Finance is not taught in Schools in the US
Replies: 59
Views: 2936

Re: Why Personal Finance is not taught in Schools in the US

High School teacher here. Personal Finance is offered at the schools where I have taught, but is no longer a required class. Couple things to keep in mind 1. In most states (if not all states) graduation requirements are set at the state level. The State Departments of Education determine how many ...
by coachd50
Thu Jul 18, 2019 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

The OP only has 15 minutes. Not only that, but it isn't a personal finance class, and he isn't teaching investments. He is just hoping to slip a little " A-ha" moment into his class. I thought that was part of the point of my note. Simplicity + efficiency = speed? Plus, easy awareness? If you can't...
by coachd50
Thu Jul 18, 2019 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Why Personal Finance is not taught in Schools in the US
Replies: 59
Views: 2936

Re: Why Personal Finance is not taught in Schools in the US

High School teacher here. Personal Finance is offered at the schools where I have taught, but is no longer a required class. Couple things to keep in mind 1. In most states (if not all states) graduation requirements are set at the state level. The State Departments of Education determine how many ...
by coachd50
Thu Jul 18, 2019 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

Also, don't forget to explain diversification, and why. Not to keep all your eggs (assets) in any one basket. If/when one of them collapses, the rest of the portfolio survives. In fact, some of the other parts of the portfolio may actually thrive. The OP only has 15 minutes. Not only that, but it i...
by coachd50
Thu Jul 18, 2019 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

That's a good one. I'd also do the "How Did Warren Buffet Get So Rich?" chart found here: https://www.marketwatch.com/story/from-6000-to-67-billion-warren-buffetts-wealth-through-the-ages-2015-08-17 It really shows that the reason the richest man in the world got that way is, in no small part, due ...
by coachd50
Thu Jul 18, 2019 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Why Personal Finance is not taught in Schools in the US
Replies: 59
Views: 2936

Re: Why Personal Finance is not taught in Schools in the US

For the most part I don’t think it really matters. Personal finance basics can be taught in 15 minutes and written on 1 piece of paper. People need to make a choice. Do I want a new purse or save for retirement? Do you want to go bar hopping every weekend or pay down your student loans? I mean is p...
by coachd50
Thu Jul 18, 2019 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Why Personal Finance is not taught in Schools in the US
Replies: 59
Views: 2936

Re: Why Personal Finance is not taught in Schools in the US

What would you drop from existing school curricula to make room for a personal finance course? Been a long time since school, but I took algebra, geometry, trig, calculus. I would vote for a semester of statistics with an emphasis on finance ahead of all of them. Ditto that. Few people use geometry...
by coachd50
Thu Jul 18, 2019 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Why Personal Finance is not taught in Schools in the US
Replies: 59
Views: 2936

Re: Why Personal Finance is not taught in Schools in the US

When they try, they teach it wrong! I have friends who live in NJ in a district where the schools teach kids investing. The school runs competitions using some kind of fake money "points" and ask the kids to trade virtual stocks "using daily real prices" and within a couple of weeks, they call the ...
by coachd50
Thu Jul 18, 2019 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

Also, don't forget to explain diversification, and why. Not to keep all your eggs (assets) in any one basket. If/when one of them collapses, the rest of the portfolio survives. In fact, some of the other parts of the portfolio may actually thrive. The OP only has 15 minutes. Not only that, but it i...
by coachd50
Thu Jul 18, 2019 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

OP, Or, you could use what my mother told me. There is a limit that how much money you can earn by exchanging your time for money. You have to sleep X hours per day and there are only so many hours in a day. But, there is no limit on how much you can earn by investing your money. Your money will ea...
by coachd50
Thu Jul 18, 2019 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

And that's exactly the point that I am trying to make, perhaps a bit subtly. When I was young in my career, I hardly had any money. However, I set aside $2000 for retirement even though I could have used a different car back then. Thought that the $2,000 would make a huge difference in retirement b...
by coachd50
Thu Jul 18, 2019 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

But if you put in $2,000 at the start of your career vs $50,000 ten years later, your yearly contributions will dwarf the compound interest. When the rates are relatively low (2-5%), compound interest takes quite a few years to magnify. I think that was the point he was trying to make, particularly...
by coachd50
Thu Jul 18, 2019 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

Whatever you do, do not use the word "magic" because it is not magic. It is math. A point I would emphasize also. Not sure I agree. Math is real magic. The wizards in Harry Potter are make believe. The real magicians are teachers, professors and researchers. To expound on that, if you can get someo...
by coachd50
Thu Jul 18, 2019 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Invest in career change to Accounting for 37 yr old? Would it be foolish?
Replies: 145
Views: 7828

Re: Invest in career change to Accounting for 37 yr old? Would it be foolish?

"Understand that you need 150 hours of college credit to sit for the CPA" Is this total number of college credits (e.g., credit from math, science, engineering, and non-business or non-accounting courses) )? Is there a minimum requirement of credits from accounting courses? You'd need to check the ...
by coachd50
Thu Jul 18, 2019 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

I was taught about the magic of compound interest when I was a teenager. I have yet to see the benefits in real life. While my initial retirement contribution in Year 1 of my professional career ($2000 or so) certainly has increased in value, it's dwarfed by my current year's contribution (around $...
by coachd50
Thu Jul 18, 2019 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 5918

Re: Explaining the magic of compound interest to teenagers

Hi everyone, I've recently started teaching a course in a local college on a subject that has nothing to do with personal finance, but includes some basic math and critical thinking concepts. From conversations with the students, I can see why so many people complain that the lack of personal finan...
by coachd50
Tue Jul 16, 2019 7:30 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8459

Re: Switching from passive to active management

Dang, I would love to buy some of their shares (Bessemer Trust). Privately held company and they publish an annual report with financials. They make a LOT of money and make no bones about it in their annual report. But they did turn down BM when he was courting them in 1997 because he seemed shady ...
by coachd50
Tue Jul 16, 2019 7:30 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8459

Re: Switching from passive to active management

Dang, I would love to buy some of their shares (Bessemer Trust). Privately held company and they publish an annual report with financials. They make a LOT of money and make no bones about it in their annual report. But they did turn down BM when he was courting them in 1997 because he seemed shady ...
by coachd50
Tue Jul 16, 2019 7:21 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8459

Re: Switching from passive to active management

Dang, I would love to buy some of their shares (Bessemer Trust). Privately held company and they publish an annual report with financials. They make a LOT of money and make no bones about it in their annual report. But they did turn down BM when he was courting them in 1997 because he seemed shady ...
by coachd50
Tue Jul 16, 2019 6:56 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8459

Re: Switching from passive to active management

As I’m considering the switch from my passive investments at Vanguard to active management at a multi-family office [...] Today I learned what a multi-family office was. https://en.wikipedia.org/wiki/Multi-family_office :shock: It's on days like this that I'm glad to fly ***way*** under their radar...
by coachd50
Tue Jul 16, 2019 6:40 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8459

Re: Switching from passive to active management

As I’m considering the switch from my passive investments at Vanguard to active management at a multi-family office [...] Today I learned what a multi-family office was. https://en.wikipedia.org/wiki/Multi-family_office :shock: It's on days like this that I'm glad to fly ***way*** under their radar...
by coachd50
Tue Jul 16, 2019 5:15 pm
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 101
Views: 5617

Re: From ex-dividend to distrubution where is my money?

Verizon has the money, they always had the money. The drop in stock price did not generate any money. I'm OK with that. Holding the money, I'm reinvesting in stock, for three weeks is excessive. I think then it becomes a matter of perception. Are they Holding anything? They plan to pay dividends on...
by coachd50
Tue Jul 16, 2019 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Invest in career change to Accounting for 37 yr old? Would it be foolish?
Replies: 145
Views: 7828

Re: Invest in career change to Accounting for 37 yr old? Would it be foolish?

Accounting degree is a fine track to into a long-term business career. CPA can get you in the door to every industry that exists. The exam is somewhat time consuming, but it's not overly difficult....as long as you prepare. Some of the replies here are based upon the idea you will work as a staff a...
by coachd50
Tue Jul 16, 2019 12:54 pm
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 101
Views: 5617

Re: From ex-dividend to distrubution where is my money?

Does the price of the stock drop to pay the dividend? Yes it does. Repeating it does not make it true. Are you trolling us? It feels like you're trolling us... Price drops because of [the market reaction to] the dividend, not to pay the dividend. The price drops because "market specialists" reduce ...
by coachd50
Tue Jul 16, 2019 11:31 am
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 101
Views: 5617

Re: From ex-dividend to distrubution where is my money?

Does the price of the stock drop to pay the dividend? Yes it does. "Ex-dividend date The date when a distribution of dividends and/or capital gains is deducted from the share price of a mutual fund or stock. On the ex-dividend date, the share price drops by the amount of the distribution (plus or m...
by coachd50
Mon Jul 15, 2019 6:43 pm
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 101
Views: 5617

Re: From ex-dividend to distrubution where is my money?

I would say legally, it's not your money until August 1. I leaglly owned the stock on July 9th when the value dropped by the cost of the dividend. Verizon moves my money from stock to cash and takes three weeks to reinvest it. Vanguard is the one that’s actually holding your money from you. The com...
by coachd50
Sat Jul 13, 2019 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: What would you charge if you were a FA?
Replies: 29
Views: 2101

Re: What would you charge if you were a FA?

Thanks for all of the replies... I'm still quite a few years away from retirement so this is more of a thought experiment for me currently. However, it did get me thinking of how much would be "fair" to charge even though I know that I personally wouldn't pay someone to be a FA for me. I like the "...
by coachd50
Sat Jul 13, 2019 5:20 pm
Forum: Personal Investments
Topic: my mom is a "financial advisor"
Replies: 66
Views: 7485

Re: my mom is a "financial advisor"

Your mom's financial advice is paid either by fixed hourly fee, AUM fee, or front end loads. Your mom doesnt work for free so if people want her to do work then they need to pay for it. Even if your mom put them in an SP500 fund there would still be some type of charge for her time meaning it is no...
by coachd50
Sat Jul 13, 2019 2:38 pm
Forum: Personal Investments
Topic: OH no, ANOTHER "Should I pay off my Mortgage with Taxable acct" question, with a bit of a twist?
Replies: 40
Views: 4198

Re: OH no, ANOTHER "Should I pay off my Mortgage with Taxable acct" question, with a bit of a twist?

The decision to pay off the mortgage or not really comes down to your own goals. Do you want to have no mortgage with a smaller bank account or a mortgage with a larger bank account? Deciding to invest the money instead of paying off the house will give you the ability to make considerably more on ...
by coachd50
Fri Jul 12, 2019 3:42 pm
Forum: Personal Investments
Topic: OH no, ANOTHER "Should I pay off my Mortgage with Taxable acct" question, with a bit of a twist?
Replies: 40
Views: 4198

Re: OH no, ANOTHER "Should I pay off my Mortgage with Taxable acct" question, with a bit of a twist?

I find myself is a somewhat similar situation. I can't pay off my mortgage with my taxable account - but I have a decent chunk of change left over after I max out my 403b, roth, HSA, etc. So, I can either put money into a taxable account (I have 150k in it) or I can pay more towards my mortgage (22...
by coachd50
Fri Jul 12, 2019 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: What would you charge if you were a FA?
Replies: 29
Views: 2101

Re: What would you charge if you were a FA?

My wife sometimes suggests that when I retire that I should become a FA because I’m so knowledgeable and passionate about the topic. I generally brush that off but it got me thinking about what would a fair rate be. I know that I would never pay an advisor a 1-2% AUM rate plus whatever commissions ...
by coachd50
Thu Jul 11, 2019 8:37 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation of the Ultra-Wealthy, can I copy their portfolio with index funds?
Replies: 63
Views: 5076

Re: Asset Allocation of the Ultra-Wealthy, can I copy their portfolio with index funds?

Note this is NOT all "Ultra wealthy" this is the Tiger 21 members. Tiger 21 requires you to have $10M in assets (minimum) and also be willing to pay their fee of $30,000 annually in dues. A lot of smarter folks don't part so easily with $30,000 even if they do have $10M or $100M in assets. Why simu...
by coachd50
Thu Jul 11, 2019 7:27 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation of the Ultra-Wealthy, can I copy their portfolio with index funds?
Replies: 63
Views: 5076

Re: Asset Allocation of the Ultra-Wealthy, can I copy their portfolio with index funds?

drk wrote:
Thu Jul 11, 2019 10:31 am
I don't understand your goal. That's not how they became ultra-wealthy.
I was about to post the same thing before I saw this reply. Investing like the ultra wealthy is just as illogical as spending like the ultra wealthy.
by coachd50
Wed Jul 10, 2019 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Should I be applying the money I am saving towards homes principal or am I doing it right by saving it?
Replies: 21
Views: 2995

Re: Should I be applying the money I am saving towards homes principal or am I doing it right by saving it?

Here is how I do it. I save money every month and that goes towards the next years mortgage. So around May I am done with the current year and saving for the next year. I leave it in a savings account earning a little over 2% with ally bank. Should I put that money towards the principal instead? I ...