Search found 573 matches

by golfCaddy
Wed Jul 18, 2018 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: New book based on Millionaire Next Door
Replies: 35
Views: 5138

Re: New book based on Millionaire Next Door

I still think lawyers and Dr's represent higher than their proportion of millionaires in America. They may do less with more, but they still are at that level in absolute terms relative to their proportions in the workforce I believe. Obviously small business owners that don't have to flaunt it mak...
by golfCaddy
Tue Jul 17, 2018 6:05 pm
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 108
Views: 6041

Re: A different take on retirement income: time segmentation

Part of this chart is weird. Housing goes down quite a bit as you age. Unless the assumption is most people enter retirement with a mortgage payment, it's not clear why this would be the case. Downsizing would be one reason. In California, Proposition 13 limits on property taxes would apply also --...
by golfCaddy
Tue Jul 17, 2018 6:02 pm
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 108
Views: 6041

Re: A different take on retirement income: time segmentation

There are ways to skin that cat. If retirees want to pay for long-term care insurance, that can be factored into their essential spending. Or if their discretionary portfolio is large enough, they can use it to self-insure against the risk of significant long-term care. From what I've seen regardin...
by golfCaddy
Tue Jul 17, 2018 5:36 pm
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 108
Views: 6041

Re: A different take on retirement income: time segmentation

willthrill81 wrote:
Sun Jul 15, 2018 10:52 pm
Image
Part of this chart is weird. Housing goes down quite a bit as you age. Unless the assumption is most people enter retirement with a mortgage payment, it's not clear why this would be the case.
by golfCaddy
Tue Jul 17, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 152
Views: 9766

Re: Why is leveraging property good but leveraging stocks bad?

In the forum people are always asking "why not 100% stocks," but an equally good question is "why not 200% stocks," "why not 1000% stocks," why not 100X leverage (some real-world situations, like LTCM, come close to that), etc. If not for daily margin calls, 100x leverage would make a lot of sense ...
by golfCaddy
Mon Jul 16, 2018 11:24 pm
Forum: Personal Consumer Issues
Topic: Travel to Mainland China - Cyber Security
Replies: 25
Views: 1919

Re: Travel to Mainland China - Cyber Security

This thread is ridiculous in multiple ways. What makes the OP so special? Is he the first boglehead Congressmen? Why does the OP think the Chinese government has a particular interest in his personal email account? Then, the responses are equally ridiculous. The Chinese government effectively contro...
by golfCaddy
Mon Jul 16, 2018 7:58 pm
Forum: Investing - Theory, News & General
Topic: A different take on retirement income: time segmentation
Replies: 108
Views: 6041

Re: A different take on retirement income: time segmentation

You're ignoring the cost of assisted living or nursing home care. For many people, assuming they live long enough, their spending will spike near the end of their life or their spouse's life.
by golfCaddy
Mon Jul 16, 2018 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Unusual asset protection strategies
Replies: 11
Views: 1318

Re: Unusual asset protection strategies

Rich people have always practiced asset protection and sheltering for various reasons. Think of all the US tax evaders with Swiss bank accounts. I doubt many people, even the extremely rich, have Malta passports unless they're preppers or engaged in criminal activity. The one significant change is w...
by golfCaddy
Sun Jul 15, 2018 9:51 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Look Past Expense Ratios
Replies: 71
Views: 5951

Re: Larry Swedroe: Look Past Expense Ratios

Right but the quality explanation is more of a behavioral thing. Its coming up with a risk based explanation that is difficult. To me value has both behavior and risk based explanations that are plausible. Small has a risk story that makes sense. Momentum and quality seem to really have more behavi...
by golfCaddy
Sun Jul 15, 2018 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: How often do you buy a primary residence?
Replies: 46
Views: 3720

Re: How often do you buy a primary residence?

Homes built before the mid 1970s may contain asbestos and not meet modern electrical codes. If a home was 50+ years old, I would have more safety concerns.
by golfCaddy
Sun Jul 15, 2018 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Are Credit Cards Actually Convenient?
Replies: 65
Views: 3658

Re: Are Credit Cards Actually Convenient?

Your case sounds unusual. Every year or two, there will be a fraudulent charge, and a card will need to be closed. That's inconvenient, but still more convenient than going to the ATM and getting cash out for all my purchases.
by golfCaddy
Sun Jul 15, 2018 9:42 am
Forum: Personal Consumer Issues
Topic: Suit Alterations - chain vs local tailor
Replies: 16
Views: 1135

Re: Suit Alterations - chain vs local tailor

I would imagine any tailor could perform simple alterations like adjusting the sleeve length and adding non-working buttons, finishing the pants, and adjusting the waist by an inch. I've never had more complex alterations done. At most department stores, basic alterations would be free. You would b...
by golfCaddy
Sat Jul 14, 2018 7:19 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Diversifying Through Reinsurance And Marketplace Lending Interval Funds
Replies: 50
Views: 3346

Re: Larry Swedroe: Diversifying Through Reinsurance And Marketplace Lending Interval Funds

Larry is more qualified to answer this than I am, but from what I've seen and experienced, I'd say that a well diversified portfolio of P2P loans is close to the same risk as investment grade corporate bonds. Consumer credit, in general, is far less volatile than high-yield bonds. The former was in...
by golfCaddy
Sat Jul 14, 2018 12:21 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 152
Views: 9766

Re: Why is leveraging property good but leveraging stocks bad?

Simplest answer (though not necessarily correct) is that leverage is not good for property, it's just (generally) a necessity to afford one. People who can pay in cash usually do. +1 If most people waited until they could pay cash for their house, their kids would be in college by the time they cou...
by golfCaddy
Fri Jul 13, 2018 9:51 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Diversifying Through Reinsurance And Marketplace Lending Interval Funds
Replies: 50
Views: 3346

Re: Larry Swedroe: Diversifying Through Reinsurance And Marketplace Lending Interval Funds

In discussing diversification, I wonder whether anyone here invests in catastrophe bonds. If you want an asset class whose returns are almost entirely uncorrelated with anything else, that seems to be a great choice. It's an interesting concept? Are there any mutual funds invested primarily in cat ...
by golfCaddy
Fri Jul 13, 2018 8:03 pm
Forum: Personal Consumer Issues
Topic: Suit Alterations - chain vs local tailor
Replies: 16
Views: 1135

Re: Suit Alterations - chain vs local tailor

I would imagine any tailor could perform simple alterations like adjusting the sleeve length and adding non-working buttons, finishing the pants, and adjusting the waist by an inch. I've never had more complex alterations done. At most department stores, basic alterations would be free.
by golfCaddy
Fri Jul 13, 2018 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Should we sell our business?
Replies: 61
Views: 4696

Re: Should we sell our business?

How much work do you and your spouse have in running the business? If you hired someone to do everything you did, how much would be left in profits out of that $300k?
by golfCaddy
Fri Jul 13, 2018 7:38 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Look Past Expense Ratios
Replies: 71
Views: 5951

Re: Larry Swedroe: Look Past Expense Ratios

I think the value of Larry’s factor book is way more generalizable (is that a word?) than the factors themselves. His 5 criteria for evaluating factors can be used to evaluate the possible benefit of any potential portfolio addition. Appreciating that all components of the portfolio meet the persis...
by golfCaddy
Thu Jul 12, 2018 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: How to help parents "see the light" with index investing?
Replies: 17
Views: 1336

Re: How to help parents "see the light" with index investing?

Reading a Random Walk Down Wall Street is what first introduced me to indexing. If they won't read anything you give them, I would leave it alone. It's their money to invest as they choose, even if it leaves you with a lower inheritance.
by golfCaddy
Thu Jul 12, 2018 7:29 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation for High Net Worth (>$3M) Individuals
Replies: 26
Views: 4556

Re: Asset Allocation for High Net Worth (>$3M) Individuals

Most people don't want $5,000,000 in order to possess it; they want it in order to spend it (e.g. most lottery winners, celebrities, and pro athletes). Exactly, I view it as a Scrooge-like illness to aspire to be the richest man in the graveyard. Even if you have a bequest motive, whether heirs or ...
by golfCaddy
Wed Jul 11, 2018 5:53 pm
Forum: Personal Consumer Issues
Topic: Which advanced tech is necessary in cars?
Replies: 86
Views: 4298

Re: Which advanced tech is necessary in cars?

Insurance rates is an actuarial calculation based on costs. It has nothing to do with the severity of an injury or loss of life. In fact, if you lose your life, that is even better for insurance rates. So, no, looking at insurance rates is not a great way at all to assess how good a safety feature ...
by golfCaddy
Tue Jul 10, 2018 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: How much should i expect to pay for car insurance?
Replies: 22
Views: 1263

Re: How much should i expect to pay for car insurance?

The only way to get realistic pricing is to get a quote. There's too many variables: age, marital status, zip code, driving history, bundling discounts, vehicles, driving frequency, deductibles, limits, ... for anyone else to give you a reasonable number, unless there's a NJ insurance agent lurking ...
by golfCaddy
Tue Jul 10, 2018 6:52 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Diversifying Through Reinsurance And Marketplace Lending Interval Funds
Replies: 50
Views: 3346

Re: Larry Swedroe: Diversifying Through Reinsurance And Marketplace Lending Interval Funds

Second re leverage. What you want to consider is the volatility of the fund and how leverage impacts it. We think vol of LENDX is about 5 (being conservative) which is about same as 5 year high quality bonds. 1. Stock crashes are correlated with high unemployment, although there's some debate about...
by golfCaddy
Tue Jul 10, 2018 5:40 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Diversifying Through Reinsurance And Marketplace Lending Interval Funds
Replies: 50
Views: 3346

Re: Larry Swedroe: Diversifying Through Reinsurance And Marketplace Lending Interval Funds

1.49% of the ER is the cost of borrowed funds, so it might be reasonable to exclude that from the ER. However, if you want to compare its performance to that of a mutual fund, comparing a bond fund leveraged 40% to LENDX is closer to a fair comparison. Comparing an unleveraged bond fund to a 40% lev...
by golfCaddy
Mon Jul 09, 2018 6:24 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Diversifying Through Reinsurance And Marketplace Lending Interval Funds
Replies: 50
Views: 3346

Re: Larry Swedroe: Diversifying Through Reinsurance And Marketplace Lending Interval Funds

Reinsurance is interesting because natural disasters should theoretically be uncorrelated with everything else. LENDX has several issues. The prospectus reports an eye-popping 4.57% EXPENSE RATIO. From the article: For example, LendingClub, the largest U.S. platform, had shifted from 100% retail fun...
by golfCaddy
Sun Jul 08, 2018 10:35 pm
Forum: Investing - Theory, News & General
Topic: Girls and investing
Replies: 115
Views: 5608

Re: Girls and investing

But what about you also take another route: making money through a job? How young is too young for a girl to get a job and make some money from it???? A combination of child labor laws at the state and federal level, and more aggressive enforcement of the laws on the books, means it's almost imposs...
by golfCaddy
Sun Jul 08, 2018 2:36 pm
Forum: Personal Consumer Issues
Topic: Tipping in a hotel room/cruise ship room
Replies: 57
Views: 3987

Re: Tipping in a hotel room/cruise ship room

Being a hotel maid is unskilled labor. In a LCOL to MCOL area, $22k/year seems more than reasonable compensation for that type of work. It is fascinating how smart people of good will can have such different views. Since this figure is an average, many maids likely make less than that. Andy. 13 sta...
by golfCaddy
Sun Jul 08, 2018 1:44 pm
Forum: Personal Consumer Issues
Topic: Tipping in a hotel room/cruise ship room
Replies: 57
Views: 3987

Re: Tipping in a hotel room/cruise ship room

No, I view it as the hotel's job to pay their cleaning staff. US News reports that, in 2016, the average salary for maids and housekeepers was below $22,000 per year. https://money.usnews.com/careers/best-jobs/maid-and-housekeeper/salary I don’t know how much of that populations is comprised of hot...
by golfCaddy
Sun Jul 08, 2018 1:10 pm
Forum: Personal Consumer Issues
Topic: Tipping in a hotel room/cruise ship room
Replies: 57
Views: 3987

Re: Tipping in a hotel room/cruise ship room

No, I view it as the hotel's job to pay their cleaning staff.
by golfCaddy
Sun Jul 08, 2018 11:48 am
Forum: Investing - Theory, News & General
Topic: Girls and investing
Replies: 115
Views: 5608

Re: Girls and investing

au con·traire I wouldn't call it an "absolutely' terrible idea. I think an individual stock on a brand that a kid can touch and feel provides a momentum and a literal, tangible expression of what a share of stock means. Watching snail walk or paint dry (indexing) that takes months and years is not ...
by golfCaddy
Sun Jul 08, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: Girls and investing
Replies: 115
Views: 5608

Re: Girls and investing

It's almost better if we just buy 1 share of Nvidia, Netflix, or Chipotle, a stock that's quite volatile but with a good prospect, and let her watch the share prices that go up and down so she sees that something is HAPPENING. This is an absolutely terrible idea. What if the stock goes up? Then, th...
by golfCaddy
Sun Jul 08, 2018 10:39 am
Forum: Investing - Theory, News & General
Topic: Why 3-funds and not 4-funds or even 2-funds?
Replies: 56
Views: 4386

Re: Why 3-funds and not 4-funds or even 2-funds?

If you believe markets are efficient, VTWSX is a reasonable choice for stocks. The problem with unhedged international bonds is the currency risk, which is uncompensated. The problem with hedged international bonds is the costs of hedging.
by golfCaddy
Sat Jul 07, 2018 11:05 pm
Forum: Investing - Theory, News & General
Topic: Girls and investing
Replies: 115
Views: 5608

Re: Girls and investing

When we look at the roster of all the famous legendary investors in the world, NOT A SINGLE WOMAN. Maybe it's too late for our generation, but I hope not for the next! What's the goal here: to teach the basics of investing or to groom her into the next Warren Buffet or Ray Dalio? For the former, gi...
by golfCaddy
Sat Jul 07, 2018 10:43 pm
Forum: Investing - Theory, News & General
Topic: Girls and investing
Replies: 115
Views: 5608

Re: Girls and investing

I would think that Boglehads approach is a subset of investing in equity, like a smaller circle in a Venn Diagram. I think it's important for someone to understand the principles of investing (company, stock markets, earnings, shares, shareholders, dividends, etc.) and then decide what kind of appr...
by golfCaddy
Sat Jul 07, 2018 10:25 pm
Forum: Investing - Theory, News & General
Topic: Girls and investing
Replies: 115
Views: 5608

Re: Girls and investing

Also, if 7-8 is too young, when do you think would be a good age to start teaching our girls how to invest? Warren Buffet started when he was 7. You're asking on the wrong message board. If learning to invest means learning how to select individual stocks like Buffet did, the answer from 99% of thi...
by golfCaddy
Sat Jul 07, 2018 3:58 pm
Forum: Personal Consumer Issues
Topic: Tipping at non sit down places
Replies: 94
Views: 7789

Re: Tipping at non sit down places

[*]But I generally tip in cash. [*] This article says cash is preferred because payment by credit card is delayed, and the credit card processing fee might be deducted. [/list] Contrary to what that article says, I think the real reason servers prefer cash is it provides them an opportunity to chea...
by golfCaddy
Sat Jul 07, 2018 12:23 pm
Forum: Personal Consumer Issues
Topic: Which advanced tech is necessary in cars?
Replies: 86
Views: 4298

Re: Which advanced tech is necessary in cars?

One way to look at this is how do these extra safety features affect insurance rates? The discounts for most of these safety features is slim to none. While these features do reduce the frequency of accidents, they can paradoxically drive up the severity. https://www.freep.com/story/money/personal-f...
by golfCaddy
Fri Jul 06, 2018 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: How to find reputable person for Will/Trust?
Replies: 45
Views: 3821

Re: How to find reputable person for Will/Trust?

This whole thread is a terrible example of an OP who doesn't provide much information and then posters give replies, assuming a mirror image of their own circumstances. There are some people who have complex estate planning needs and need to hire someone of bsteiner's caliber either to avoid estate/...
by golfCaddy
Fri Jul 06, 2018 7:42 pm
Forum: Investing - Help with Personal Investments
Topic: Tech tilt as hedge against rising cost of living in Bay Area
Replies: 37
Views: 2860

Re: Tech tilt as hedge against rising cost of living in Bay Area

Were you saying that they 'overpay' their employees and the market will correct this by dropping share prices, or am I misunderstanding? Yes, although I wouldn't necessarily call the employees overpaid if demand exceeds supply for their skill sets. Suppose a hypothetical tech company earns $100B a ...
by golfCaddy
Fri Jul 06, 2018 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: Tech tilt as hedge against rising cost of living in Bay Area
Replies: 37
Views: 2860

Re: Tech tilt as hedge against rising cost of living in Bay Area

Again, I'd want some evidence that linked the cost of living in that area to tech stocks. Something must be causing cost of living increase. Tech compensation explains it, I can't think of other reason at the moment. In the long run, you can't assume tech compensation and tech stock performance are...
by golfCaddy
Tue Jul 03, 2018 6:42 pm
Forum: Investing - Help with Personal Investments
Topic: Tech tilt as hedge against rising cost of living in Bay Area
Replies: 37
Views: 2860

Re: Tech tilt as hedge against rising cost of living in Bay Area

I think it is not just housing. It is also childcare and education, food, insurances and transportation etc. It is almost like Bay Area is a small country where inflation is skyrocketing, fueled by a specific industry. So your local real return is always lower than the rest of US. In this case, doe...
by golfCaddy
Tue Jul 03, 2018 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Tech tilt as hedge against rising cost of living in Bay Area
Replies: 37
Views: 2860

Re: Tech tilt as hedge against rising cost of living in Bay Area

I've posted before that differences in cost of living are almost entirely housing. A much more direct hedge would be to buy a house you might want to live in eventually, and rent it out until you move to the Bay area.
by golfCaddy
Tue Jul 03, 2018 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: What happens if your Vanguard account has been hacked.
Replies: 21
Views: 2807

Re: What happens if your Vanguard account has been hacked.

This is all theoretical. If you did have $1M+ stolen, the FBI would investigate.
by golfCaddy
Tue Jul 03, 2018 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: What happens if your Vanguard account has been hacked.
Replies: 21
Views: 2807

Re: What happens if your Vanguard account has been hacked.

I think Vanguard's language it is more akin to a home insurance company excluding coverage of your home if you say, have your uncle burn the place to the ground. Or maybe a don't leave the wolf alone in the chicken coop, with a fryer and BBQ sauce and a bib and expect him not to eat a chicken sort ...
by golfCaddy
Mon Jul 02, 2018 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Umbrella Policy: Right amount for $7 mil net worth?
Replies: 54
Views: 6681

Re: Umbrella Policy: Right amount for $7 mil net worth?

I have seen similar things happen to friends with money on a few occasions and, without their insurance company's lawyers getting involved, they would have been out a 5-figure sum just for the lawyer fees to go through discovery before it even got to trial, irregardless of the outcome of the case. ...
by golfCaddy
Sun Jul 01, 2018 9:53 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 9725

Re: Stocks vs. rental property

Make sure you have seen the 100 year forecast. 100 year forecasts are interesting to think about in another way. In 100 years, AI might replace most of our jobs. Long before that, most white collar employees could telecommute. What happens to real estate markets, when your job no longer requires yo...
by golfCaddy
Sat Jun 30, 2018 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: Umbrella Policy: Right amount for $7 mil net worth?
Replies: 54
Views: 6681

Re: Umbrella Policy: Right amount for $7 mil net worth?

I'm not really sure why you pasted that since it states you can be held negligent if you were distracted. That reminds me of a Dave Barry quote: “The one thing that unites all human beings, regardless of age, gender, religion, economic status, or ethnic background, is that, deep down inside, we all...
by golfCaddy
Sat Jun 30, 2018 8:56 pm
Forum: Investing - Theory, News & General
Topic: Equity Risk Premium over Two Centuries, 1825-2017
Replies: 24
Views: 2256

Re: Equity Risk Premium over Two Centuries, 1825-2017

We have found that from 1900-2000, the annualized equity risk premium relative to bonds was 5.0% in the United States and 4.4% for the United Kingdom. Across all sixteen countries, the cross-sectional average risk premium relative to bonds was 4.5%, while for the world index it was 4.6%. It's alway...
by golfCaddy
Sat Jun 30, 2018 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: What is/ was your career and would you recommend it now?
Replies: 345
Views: 32141

Re: What is/ was your career and would you recommend it now?

That is all a far cry from saying the PhD is useless because the Dissertation does not produce some earth shattering result. That was the only point I was trying to make. If we set that as the criteria for doing a PhD, maybe we would get a dozen of them a year. I think the market probably wants mor...