Search found 338 matches

by bgf
Fri May 25, 2018 7:26 am
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?
Replies: 85
Views: 8044

Re: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?

I would pay off the mortgage, once you do that the house is yours and yours only, no one can take it away. What happens if you lose your job? On a related note, if I lost my job tomorrow, I would rather have $210K in the bank and a mortgage payment due every month, than $0 in the bank and a paid-of...
by bgf
Fri May 25, 2018 7:24 am
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?
Replies: 85
Views: 8044

Re: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?

On a related note, if I lost my job tomorrow, I would rather have $210K in the bank and a mortgage payment due every month, than $0 in the bank and a paid-off mortgage but nothing to cover property taxes and other expenses. why? you can always take out a HELOC with a paid off house IF an emergency ...
by bgf
Thu May 24, 2018 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?
Replies: 85
Views: 8044

Re: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?

I would pay off the mortgage, once you do that the house is yours and yours only, no one can take it away. What happens if you lose your job? On a related note, if I lost my job tomorrow, I would rather have $210K in the bank and a mortgage payment due every month, than $0 in the bank and a paid-of...
by bgf
Thu May 24, 2018 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?
Replies: 85
Views: 8044

Re: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?

I would pay off the mortgage, once you do that the house is yours and yours only, no one can take it away. What happens if you lose your job? On a related note, if I lost my job tomorrow, I would rather have $210K in the bank and a mortgage payment due every month, than $0 in the bank and a paid-of...
by bgf
Wed May 23, 2018 7:51 am
Forum: Investing - Help with Personal Investments
Topic: All else aside - General Allocation Thoughts
Replies: 9
Views: 686

Re: All else aside - General Allocation Thoughts

I'd dump the REIT and just go with large, small, and international. Large: 40 Small: 10 International: 30 I just recently did this. I had a REIT allocation originally, but as they were added as their own sector to US Total, i struggled to justify WHY i was allocating a larger than market weight to ...
by bgf
Tue May 22, 2018 7:06 am
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 3696

Re: Are high dividend stocks advantageous for the 15% tax rate?

[...] I'm actually surprised there is some positive feedback on my idea that is not in line with the common wisdom. Thanks to everyone and any more opinions would be welcome. In my opinion , what you're seeing is a few very vocal supporters of high dividend strategies. I suspect (but cannot prove) ...
by bgf
Mon May 21, 2018 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 3696

Re: Are high dividend stocks advantageous for the 15% tax rate?

I dont know a thing about the DOW other than: its been around a long time, its price weighted, its stocks change over time. So i doubt i admitted anything about it. Im still waiting to hear how you made tens of millions through DGI though. Especially considering your old posts show that you started ...
by bgf
Mon May 21, 2018 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 3696

Re: Are high dividend stocks advantageous for the 15% tax rate?

"Either 1) your selection of DGI stocks beats the market, in which case, like i said, you are awesome and can do what many active managers cannot, or 2) your selection of DGI lags the market." What is the "market"? Is it the DJIA? That's just 30 mostly DGI stocks just like I advocate. If you mean t...
by bgf
Mon May 21, 2018 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 3696

Re: Are high dividend stocks advantageous for the 15% tax rate?

i dont understand why this idea of 25-50 DGI stocks is so popular right now. you are, by definition, selecting companies that are returning more cash to shareholders than the market average through dividends. this means that these companies are on average reinvesting less money into their operation...
by bgf
Mon May 21, 2018 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 3696

Re: Are high dividend stocks advantageous for the 15% tax rate?

i dont understand why this idea of 25-50 DGI stocks is so popular right now. you are, by definition, selecting companies that are returning more cash to shareholders than the market average through dividends. this means that these companies are on average reinvesting less money into their operations...
by bgf
Sat May 19, 2018 7:20 pm
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 78
Views: 10067

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

Buffett is an investor, not a personal financial advisor. He has always said, first and foremost, do not invest what you cannot afford to lose. His remarks on LTCM drive this home. This, anyway, is how i have read his advice and his lessons. To assume that Buffett advises your average 70 year old wh...
by bgf
Sat May 19, 2018 5:04 pm
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 78
Views: 10067

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

I think if you read his shareholder letters you'd be less unsure of what he says. Also, there would be no question as to context or his audience. The shareholder letters are written to Berkshire shareholders. What he says on CNN or whatever in sound bites should be largely ignored for what he says i...
by bgf
Sat May 19, 2018 11:23 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 78
Views: 10067

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

I've yet to read a convincing argument anywhere by anyone that an internationally diversified portfolio of 10,000+ stocks across dozens of countries presents such a systemic risk that government bonds, which are backed by the economies made up by those very same companies and also subject to currenc...
by bgf
Sat May 19, 2018 8:09 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 78
Views: 10067

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

I still think bond allocation should be 100% tied to one's near term cash flow needs. if you don't have near term cash flow needs, then you don't need bonds. with bonds you are paying a price for the decreased volatility. that price is not cheap. it comes in the form of decreased expected return in ...
by bgf
Sat May 19, 2018 7:29 am
Forum: Personal Finance (Not Investing)
Topic: What’s your phone/internet bill?
Replies: 92
Views: 5646

Re: What’s your phone/internet bill?

30mbps internet $36
Verizon 4gb shared plan for 2 people ~$100.

No landline, no cable tv subscription (we use hulu live tv). We saved nearly $100 per month dropping our cable tv sub for hulu live.
by bgf
Fri May 18, 2018 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio management programs?
Replies: 2
Views: 186

Re: Portfolio management programs?

mint is good for budget tracking but awful for my investments. i completely ignore it as it has not even correctly stated my portfolio balance for years.
by bgf
Fri May 18, 2018 12:32 pm
Forum: Investing - Theory, News & General
Topic: Are you including annual increases in contributions in your projections?
Replies: 36
Views: 1583

Re: Are you including annual increases in contributions in your projections?

my wife and I are ~32. i do not project increases in our income. my wife is a high school teacher, and so her salary will increase but not substantially. i am an attorney but not for a large firm or company. i would say my compensation is more likely to increase substantially than her's, but i have ...
by bgf
Thu May 17, 2018 12:44 pm
Forum: Personal Consumer Issues
Topic: how do you tip on wine at a restaurant
Replies: 185
Views: 9863

Re: how do you tip on wine at a restaurant

20% of the entire bill, including wine, beer, cocktails, whatever. i've never ordered a bottle of wine over, probably, $75 at a restaurant. the only time i don't tip is when i am picking up takeout or ordering at the register and walking my food to a table. at coffee shops, it depends on the order, ...
by bgf
Wed May 16, 2018 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Would you send your children to private school in my situation?
Replies: 93
Views: 6014

Re: Would you send your children to private school in my situation?

Those are too subjective to even try to start making that decision IRREGARDLESS of how much money you have. Is irregardless a real word? Although etymologists continue to debate it, irregardless is commonly accepted as a substitute for regardless in the American vernacular. :D disirregardless is ma...
by bgf
Wed May 16, 2018 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Would you send your children to private school in my situation?
Replies: 93
Views: 6014

Re: Would you send your children to private school in my situation?

I woke up this morning with $27 in my checking account. My boss telling me overtime is getting cut because someone making your salary or more made a bad executive decision. I wish I had wealthy people problems. Here is what I would do. If your family is religious I would send them to a decent faith...
by bgf
Tue May 15, 2018 9:39 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6550
Views: 1406666

Re: U.S. stocks in freefall

Sorry man. I don't think that way. About the only thing I do consistently is NOT follow the crowd. Been doing it all my life. Retired from work at 42 in 2007. I invest my money for a living. Basically, I study conventional wisdom, then reject it. It's a great way to get rich. Enough money to retire...
by bgf
Tue May 15, 2018 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Are bonds really needed - why not 100% stocks?
Replies: 71
Views: 5356

Re: Are bonds really needed - why not 100% stocks?

I am in my early 40's and this is a very interesting thread! The bond allocation is to provide a cushion to draw from in the event that there is a market crash/correction and $$ is needed. Better to draw from the bond rather than equity funds, correct? However, bonds ideally sit in a tax advantaged...
by bgf
Tue May 15, 2018 7:58 am
Forum: Investing - Help with Personal Investments
Topic: Are bonds really needed - why not 100% stocks?
Replies: 71
Views: 5356

Re: Are bonds really needed - why not 100% stocks?

a portfolio with infinite duration and no cash flow requirements should be fully invested in the highest returning assets. sometimes bonds are priced to outperform equities, but far more often equities are priced to outperform bonds. we never know ahead of time which will outperform, but i would bet...
by bgf
Tue May 08, 2018 3:48 pm
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 168
Views: 16931

Re: What Percentage CASH are you?

Emergency fund cash is a little under 5% of net worth. None of our portfolio is allocated to cash.
by bgf
Tue May 08, 2018 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Best cash-back credit card right now?
Replies: 42
Views: 4602

Re: Best cash-back credit card right now?

Yes, those numbers are with the 75% for platinum honors. Without the bonus, the cards aren't terribly attractive. also, the 75% bonus applies to the new account bonus, e.g., $150 for spending $x in y months. i did not know this initially and was presently surprised when i cashed in my first rewards.
by bgf
Tue May 08, 2018 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Best cash-back credit card right now?
Replies: 42
Views: 4602

Re: Best cash-back credit card right now?

I don't really want to travel anymore than I currently do, so I don't want airline points. I believe that mostly just leaves me with cash-back credit cards as a second best option right? So, for cash-back cards, and a person who has an annual CC spending of about $15,000, what gets you the most cas...
by bgf
Tue May 08, 2018 8:47 am
Forum: Investing - Theory, News & General
Topic: Why do so many Americans not own stocks?
Replies: 44
Views: 3541

Re: Why do so many Americans not own stocks?

investing in stocks is just allocating a portion of one's wealth/net worth to a specific asset, stocks. to do this, you must first have wealth. most americans have little, if any, net worth, and those who do have a positive net worth have most of it in their home + vehicles.
by bgf
Fri May 04, 2018 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Another payoff Loan or Invest question
Replies: 22
Views: 1151

Re: Another payoff Loan or Invest question

No debt other than the new car and house. I don't have a dedicated emergency fund - but have been contemplating it... My thought is that the car interest rate is lower than what I may expect returns over 6 years so I would invest instead of paying off the car. Of course I may end up not earning mor...
by bgf
Thu May 03, 2018 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Auto loan or dip into emergency fund?
Replies: 48
Views: 3373

Re: Auto loan or dip into emergency fund?

assume you have an emergency fund but do not want to touch. no current savings allocated for a car purchase. you need a car. assume also that you have taxable accounts, with some blocks showing a current loss. what are the concerns with tax loss harvesting, using those funds to purchase the vehicle,...
by bgf
Wed May 02, 2018 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Berkshire Hathaway B
Replies: 65
Views: 6336

Re: Berkshire Hathaway B

And as Larry Swedroe has taught us, you should never confuse outcome with strategy. Just because the outcome for BRK.B over the past 11 years worked out, does that mean it was the right strategy? there has been significant multiple expansion in the sp500 over that period. in 2008, berkshire traded ...
by bgf
Mon Apr 30, 2018 10:44 am
Forum: Personal Consumer Issues
Topic: Would you buy this? (Phone Question)
Replies: 18
Views: 1179

Re: Would you buy this? (Phone Question)

good deal. they seem to be selling for much more used.

https://swappa.com/buy/apple-iphone-8-a1863-unlocked
by bgf
Thu Apr 26, 2018 8:21 pm
Forum: Investing - Theory, News & General
Topic: CAGR & Sharpe Ratio
Replies: 22
Views: 927

Re: CAGR & Sharpe Ratio

The theoretically best portfolio according to Edward Thorp is the one with the highest Sharpe Ratio and leveraged as much possible to maximize a utility function. The sharpe ratio is mostly useless since we live in the real world where people can't borrow that easily and past returns don't predict ...
by bgf
Thu Apr 26, 2018 3:33 pm
Forum: Investing - Theory, News & General
Topic: CAGR & Sharpe Ratio
Replies: 22
Views: 927

Re: CAGR & Sharpe Ratio

The theoretically best portfolio according to Edward Thorp is the one with the highest Sharpe Ratio and leveraged as much possible to maximize a utility function. The sharpe ratio is mostly useless since we live in the real world where people can't borrow that easily and past returns don't predict ...
by bgf
Tue Apr 24, 2018 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Managed Beating Index?
Replies: 35
Views: 2596

Re: Managed Beating Index?

Make sure your active fund is giving you CAGR and not arithmetic/simple mean. If over 2 years you had a 50% loss and then a 60% gain, your arithmetic return would be +5%, but in reality youd have lost 20% value over that span. the arithmetic mean is the mean you learn in middle school. add up all t...
by bgf
Tue Apr 24, 2018 9:34 am
Forum: Investing - Help with Personal Investments
Topic: Managed Beating Index?
Replies: 35
Views: 2596

Re: Managed Beating Index?

If you did not lump sum in 5 years ago you will need to look at when you made contributions and calculate return from those points. I knew I was probably doing it wrong. So in theory if I had invested 3M in the Vanguard funds 5 years ago. My portfolio would be worth $3,218,040.00. What you are sayi...
by bgf
Mon Apr 23, 2018 1:41 pm
Forum: Investing - Theory, News & General
Topic: Floating Net Worth w/ VT after 5 Years
Replies: 52
Views: 6553

Re: Floating Net Worth w/ VT after 5 Years

While VT would most likely underperform small and midcap ETFs, and perhaps the S&P 500 (US markets still have highest ROE of all countries), I wanted something that would preserve purchasing power. VT has been a stud. Not sure why you think VT has been a "stud". It's a good solid way to invest, for...
by bgf
Mon Apr 23, 2018 10:17 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: How Investors Undermine Returns
Replies: 8
Views: 1755

Re: Larry Swedroe: How Investors Undermine Returns

based on the statistical distribution of stock returns, you are best off buying and holding. let the losers die off even, if you have to. over long periods of time, your portfolio return will be most affected by the major outperformers, and the others that failed or did poorly will have little effect.
by bgf
Sun Apr 22, 2018 7:45 am
Forum: Investing - Theory, News & General
Topic: Floating Net Worth w/ VT after 5 Years
Replies: 52
Views: 6553

Re: Floating Net Worth w/ VT after 5 Years

Yes, I use VT as my portfolio benchmark, which my actual portfolio tracks closely.

Bonds have expected returns of less than 4%, and I dont think the benefit of decreased short term volatility is worth the cost of lower return given my time horizon.
by bgf
Mon Apr 16, 2018 8:51 am
Forum: Investing - Theory, News & General
Topic: 140% Stocks (or why the Kelly criterion is cool)
Replies: 98
Views: 10572

Re: 140% Stocks (or why the Kelly criterion is cool)

I just finished Fortune's Formula, just read through this entire thread, and my brain is mush. Add onto the already incredibly long list another instance of 1) my math skillz are so so insufficient, 2) there are some really intelligent, knowledgeable people on this board, and 3) optimization in the ...
by bgf
Sun Apr 15, 2018 11:47 am
Forum: Investing - Help with Personal Investments
Topic: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)
Replies: 22
Views: 1599

Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

I just did the same thing. 1% everything, 2% groceries and wholesalers, 3% gas. Thats not that great. What makes it good is the 75% bonus boost to your cash back rewards. I am guessing OP also gets that max boost. The only part of that that makes sense is 3% gas (which becomes 5.25%?). You can get ...
by bgf
Sat Apr 14, 2018 6:29 am
Forum: Investing - Help with Personal Investments
Topic: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)
Replies: 22
Views: 1599

Re: From Vanguard To Merrill Edge (Should I transfer Mutual Funds to ETFs First?)

I just did the same thing. 1% everything, 2% groceries and wholesalers, 3% gas.

Thats not that great. What makes it good is the 75% bonus boost to your cash back rewards. I am guessing OP also gets that max boost.
by bgf
Fri Apr 13, 2018 1:53 pm
Forum: Personal Consumer Issues
Topic: How Far is too Far, Commuting?
Replies: 211
Views: 12309

Re: Work Commute: How far is too far?

My max is 10 miles each way. username checks out. also, i don't make the kind of salary i would if i lived in the closest large city (Atlanta), but i also have the benefit of a 10 minute max commute to my daughter's daycare, which is just a few blocks away from where i work. i can eat lunch at home...
by bgf
Wed Apr 11, 2018 12:42 pm
Forum: Investing - Theory, News & General
Topic: Emerging markets tilt
Replies: 37
Views: 3250

Re: Emerging markets tilt

i just split my international exposure equally between developed markets and emerging markets. at this time, that means i am overweighting or tilting towards emerging markets. over the years, this 50-50 split will either get more or less out of whack with market weighting. not sure which will happen...
by bgf
Wed Apr 11, 2018 8:16 am
Forum: Investing - Help with Personal Investments
Topic: Is refinancing to 30 year worth it?
Replies: 20
Views: 2075

Re: Is refinancing to 30 year worth it?

we have nearly identical mortgage loans. our loan was for $193,000 at 2.875%. when we stopped paying escrow and started doing it ourselves, our monthly payments dropped down to $1,325 per month. of course, i have to pay my annual insurance premium and property taxes all at once, but it gives a bit m...
by bgf
Wed Apr 11, 2018 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Any aggressive index funds in your portfolio?
Replies: 35
Views: 3429

Re: Any aggressive index funds in your portfolio?

No, but I do own a few individual stocks. I think picking and choosing sector or factor ETFs is more difficult than finding a few good companies to invest in. In both instances, I don't know whether the ETF/Stock will outperform the Total Market, but at least I can analyze an individual company by r...
by bgf
Tue Apr 10, 2018 7:07 am
Forum: Personal Finance (Not Investing)
Topic: Bank of America/Merrill Edge - Preferred Rewards
Replies: 465
Views: 91704

Re: Bank of America/Merrill Edge - Preferred Rewards

What I'm curious about is if her new ME IRA balance would be combined with my existing accounts (IRA and taxable) for Preferred Rewards purposes. If they are kept separate then moving her IRA to ME doesn't make much sense. Feedback appreciated from anyone who has ME accounts in their name and their...
by bgf
Mon Apr 09, 2018 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Are there any simple strategies that can help us squeeze better returns?
Replies: 45
Views: 3109

Re: Are there any simple strategies that can help us squeeze better returns?

If you are already 100% equities then you can use leverage. Either margin or options.

For example, you could purchase november calls for VT to "boost" returns of a market weight US and International portfolio.
by bgf
Sat Apr 07, 2018 2:59 pm
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 12149

Re: What is your AA, given your age? and, Why?

32. 100% equities. I see the lower expected payoff of a bond allocation as the price/cost for decreased short term volatility. I have no desire to decrease short term volatility at the expense of higher return, so I am 100% equities.
by bgf
Fri Apr 06, 2018 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Your Monthly Cost of Living
Replies: 66
Views: 7049

Re: Your Monthly Cost of Living

What is your total monthly cost of basic living? 1. Housing: $1325 mortgage + ~$1200 annual insurance + ~$3400 property taxes + ~$300 in utilities 2. Transportation: ~$95 car insurance + $50-$75 in gas (2-3 fillups) 3. Food: $600-700 groceries + $100-$200restaurants 4. Other $500+?? wipes, diapers,...
by bgf
Fri Apr 06, 2018 9:32 am
Forum: Investing - Theory, News & General
Topic: The "American companies I invest in already have international exposure" argument --- valid or not?
Replies: 139
Views: 10670

Re: The "American companies I invest in already have international exposure" argument --- valid or not?

the benefit of diversification for me is not reduced volatility through uncorrelated assets. the benefit of diversification for me is generating the highest probability of catching ALL of those very rare long term superperforming companies that generate the gross majority of index returns. i think ...