Search found 2150 matches

by dknightd
Tue Mar 31, 2020 10:36 am
Forum: Investing - Theory, News & General
Topic: Mortgage - Keep balance as High as Possible
Replies: 162
Views: 11488

Re: Mortgage - Keep balance as High as Possible

We've got a 15-year mortgage, at 3.5% or so. We're 5 years in and just paying it off on schedule. I expect money in excess of that to do better in stocks, over the long-term, so that's where it goes. Seems bizarre not to consider the standard payoff rate as a "reasonable" plan. :) Perfectly reasona...
by dknightd
Tue Mar 31, 2020 9:18 am
Forum: Investing - Theory, News & General
Topic: Mortgage - Keep balance as High as Possible
Replies: 162
Views: 11488

Re: Mortgage - Keep balance as High as Possible

Loopty doopty diddly do. Do what feels right to you :)
by dknightd
Tue Mar 31, 2020 8:56 am
Forum: Investing - Theory, News & General
Topic: Mortgage - Keep balance as High as Possible
Replies: 162
Views: 11488

Re: Mortgage - Keep balance as High as Possible

I guess what I'm doing is "unreasonable", then. :confused I do not know what you are doing. What is reasonable for you could be completely different than what is reasonable for me. And both could be considered reasonable to somebody else. Or perhaps some consider both "unreasonable". Heck, I do not...
by dknightd
Tue Mar 31, 2020 8:20 am
Forum: Investing - Theory, News & General
Topic: Mortgage - Keep balance as High as Possible
Replies: 162
Views: 11488

Re: Mortgage - Keep balance as High as Possible

I am 96 and have most of my money tied-up in my condominium's equity. I am currently applying for a mortgage so that I can increase my heirs inheritance before I die. A paid off house may sound great but many homeowners would prefer less home equity and more money in the bank. Best wishes. Taylor T...
by dknightd
Tue Mar 31, 2020 7:38 am
Forum: Investing - Theory, News & General
Topic: Mortgage - Keep balance as High as Possible
Replies: 162
Views: 11488

Re: Mortgage - Keep balance as High as Possible

I learned from my dad to do the opposite of whatever he did. It's worked out for me on a personal and financial level. :sharebeer edit: I was lucky to have have learned some good things from my dad. I also learned some things I would do differently. I hope my kids have learned to do the same thing....
by dknightd
Tue Mar 31, 2020 7:31 am
Forum: Investing - Theory, News & General
Topic: I thought I had it all figured out....advice please
Replies: 42
Views: 5295

Re: I thought I had it all figured out....advice please

One simple step is to get out of any fund that is less than 5% of your holdings and put that money in a similar fund you already own. That will likely cut your number of funds nearly in half.
by dknightd
Tue Mar 31, 2020 7:24 am
Forum: Personal Finance (Not Investing)
Topic: House Buying Advice - Contract Already Signed
Replies: 39
Views: 3656

Re: House Buying Advice - Contract Already Signed

ljax1979 wrote:
Sun Mar 29, 2020 6:46 pm
We love the house, we love the town
Then I see no need to reconsider. I'd proceed as planned.
by dknightd
Sun Mar 29, 2020 9:42 pm
Forum: Investing - Theory, News & General
Topic: Mortgage - Keep balance as High as Possible
Replies: 162
Views: 11488

Re: Mortgage - Keep balance as High as Possible

I figure there are two reasonable choices. Pay the mortgage off as soon as possible, or, have a mortgage that you will never be able to pay off (i.e. have the mortgage pay off date likely be longer than you will live - refinance for another 30 years as needed). Bingo. Interest only mortgage is like...
by dknightd
Sun Mar 29, 2020 9:29 pm
Forum: Investing - Theory, News & General
Topic: Mortgage - Keep balance as High as Possible
Replies: 162
Views: 11488

Re: Mortgage - Keep balance as High as Possible

My dad was a trust fund baby and worked a lucrative job. He always said it is best to have as much debt as possible cause then everyone you owe is pulling for you to succeed. This reminds me of him. He died destitute. So, I'm guessing you are not a trust fund baby. There is a difference between 1) ...
by dknightd
Sun Mar 29, 2020 9:17 pm
Forum: Investing - Theory, News & General
Topic: Mortgage - Keep balance as High as Possible
Replies: 162
Views: 11488

Re: Mortgage - Keep balance as High as Possible

I figure there are two reasonable choices. Pay the mortgage off as soon as possible, or, have a mortgage that you will never be able to pay off (i.e. have the mortgage pay off date likely be longer than you will live - refinance for another 30 years as needed). Or, I suppose you could rent. While I ...
by dknightd
Sun Mar 29, 2020 9:05 pm
Forum: Personal Consumer Issues
Topic: Convince me to choose a Suburban over a Sequoia
Replies: 87
Views: 35941

Re: Convince me to choose a Suburban over a Sequoia

This is so weird. I had a dream about a Suburban last night. I have no use for such a vehicle. But if you do, my dream says it would be the one to choose. I wonder what the OP chose, and how it has worked out.
by dknightd
Sun Mar 29, 2020 8:54 pm
Forum: Investing - Theory, News & General
Topic: Market will be at all time high by year-end
Replies: 121
Views: 11676

Re: Market will be at all time high by year-end

I have a prediction that the market will be at an all time high by 12/31/2020. This thread will be revisited on that date to show the genius that I am. I hope you are right. I also hope that one correct prediction does not convince you that you are a genius. Or one wrong prediction makes you think ...
by dknightd
Sun Mar 29, 2020 8:41 pm
Forum: Investing - Theory, News & General
Topic: How Much Return Is Needed To Recover A Stock Market Loss?
Replies: 35
Views: 3215

Re: How Much Return Is Needed To Recover A Stock Market Loss?

No, it doesn't - unless you are accounting for evaporation during the interim. ;) If you are only taking money out, and spending it, then evaporation is occurring ;) If you are only putting money in, then your bathtub might overflow :) There are so many ways of looking at this. Everything I've read...
by dknightd
Sat Mar 28, 2020 7:47 am
Forum: Personal Finance (Not Investing)
Topic: What have you learned from this situation that you will take action on?
Replies: 158
Views: 14391

Re: What have you learned from this situation that you will take action on?

I learned I need to read thread titles more carefully. Or was "that you can take action on" added while I was reading? Action: read thread titles more carefully before reading whole thread and responding. I'm learning lots of stuff, and will continue learning, I like learning. Action: continue. I'm ...
by dknightd
Fri Mar 27, 2020 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: How are you going to use your stimulus money?
Replies: 222
Views: 12680

Re: How are you going to use your stimulus money?

Probably donate. Some to food bank. Not sure about the rest yet.
by dknightd
Thu Mar 26, 2020 12:31 pm
Forum: Personal Investments
Topic: What does it mean to have X years of expenses in cash/fixed-income?
Replies: 54
Views: 2403

Re: What does it mean to have X years of expenses in cash/fixed-income?

I have wondered similarly to this. You have 12 months of expenses as an emergency fund, say in cash. Unfortunately for you, the markets are down and you lose your job. Six months later, you have not found work and you have spent half this fund. At what point do you sell assets to rebuild your cash ...
by dknightd
Thu Mar 26, 2020 12:22 pm
Forum: Personal Investments
Topic: What does it mean to have X years of expenses in cash/fixed-income?
Replies: 54
Views: 2403

Re: What does it mean to have X years of expenses in cash/fixed-income?

For instance, if you had your entire portfolio in a target fund or balanced index fund, would you not continue to draw from that monthly for expenses? I guess I'd have to continue to draw down for monthly expenses. Then cut down on my spending. Then file for bankruptcy. Instead I have enough cash l...
by dknightd
Thu Mar 26, 2020 11:57 am
Forum: Personal Investments
Topic: What does it mean to have X years of expenses in cash/fixed-income?
Replies: 54
Views: 2403

Re: What does it mean to have X years of expenses in cash/fixed-income?

JBTX wrote:
Thu Mar 26, 2020 11:47 am
3. If you are in retirement, but before social security, it may make sense to draw down safe assets and hold on to stocks until you get to social security.
That is my plan. I hope it works out. Likely it will
by dknightd
Thu Mar 26, 2020 11:46 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 5703
Views: 487126

Re: U.S. stocks continue to soar!

up up and away :)
by dknightd
Thu Mar 26, 2020 11:09 am
Forum: Investing - Theory, News & General
Topic: So bottom is probably behind us....right?
Replies: 709
Views: 63109

Re: Have we hit bottom? Time to buy?

Obviously no one can predict the future but do you guys think we've hit bottom? My portfolio took a huge hit, well into the six figures. I've got 125k in Fidelity and Merril Edge sitting in cash accounts just waiting. Tried grabbing the falling knife once already and got cut. Buy now or wait longer...
by dknightd
Thu Mar 26, 2020 7:38 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 18822
Views: 2630396

Re: U.S. stocks in free fall

I'm starting to think that I'm not on Bogleheads.org anymore. Did the whole community just throw their investment philosophy out of the window? Lol. You are boglehead, they are not....they are day trading in a volatile market. It would be a pretty boring forum if we all did the same thing :) edit: ...
by dknightd
Thu Mar 26, 2020 7:27 am
Forum: Personal Investments
Topic: Do ppl who rebalance annually do anything different in this type of market?
Replies: 20
Views: 1121

Re: Do ppl who rebalance annually do anything different in this type of market?

Personally, I have never understood rebalancing according to a calendar. Markets don’t follow a calendar. It has always made more sense to me to rebalance when needed (when AA gets out of balance and predetermined balancing bands are hit). Some fund managers will automatically rebalance for you onc...
by dknightd
Thu Mar 26, 2020 7:10 am
Forum: Personal Consumer Issues
Topic: My treadmill broke. Now what?
Replies: 36
Views: 1716

Re: My treadmill broke. Now what?

You could buy a used one. There are many low use machines available on the used market ;)
by dknightd
Thu Mar 26, 2020 6:55 am
Forum: Investing - Theory, News & General
Topic: So bottom is probably behind us....right?
Replies: 709
Views: 63109

Re: So bottom is probably behind us....right?

I hope the bottom is behind us. But I guess there is a 50% chance it is not.
by dknightd
Thu Mar 26, 2020 6:47 am
Forum: Investing - Theory, News & General
Topic: Why don't investors like "boring"?
Replies: 29
Views: 1809

Re: Why don't investors like "boring"?

Most people do not like boring because, well, it is boring ;)
Investing in index funds is more exciting than investing in bank CDs. Especially lately.
by dknightd
Tue Mar 24, 2020 11:31 am
Forum: Personal Investments
Topic: Why does the 4% rule work when the markets have huge corrections
Replies: 51
Views: 3383

Re: Why does the 4% rule work when the markets have huge corrections

Is it a good idea to plan retirement with enough cash reserves on hand to avoid taking withdrawals during large market correction years like 2020? The '4% rule of thumb' worked in the Great Depression, WW2, 1970s stagflation, the Dot-Com bubble, and the Great Financial Crisis. The bottom line is th...
by dknightd
Tue Mar 24, 2020 9:48 am
Forum: Personal Investments
Topic: Why does the 4% rule work when the markets have huge corrections
Replies: 51
Views: 3383

Re: Why does the 4% rule work when the markets have huge corrections

James, John's twin brother, retires in March 2020 on a 800k capital. Does he have to apply the "safe 4% rule" and plan to live on measly 32k/yr, or can he draw 40k/yr as safely as John will be doing ? I've always been curious about this. I assume at some point they had the same amount of money. I w...
by dknightd
Mon Mar 23, 2020 10:43 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 18822
Views: 2630396

Re: U.S. stocks in free fall

If stocks stay down today my plan calls for me to buy. So I will
by dknightd
Sun Mar 22, 2020 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Upside down car: advice [car loan]
Replies: 57
Views: 2918

Re: Upside down car: advice

deanmoriarty wrote:
Sun Mar 22, 2020 12:39 pm
Should I advise him to suck it up for 3 more years and pay it off, or to sell the car at a loss, pull a loan to cover the amount that’s underwater and buy for himself a used $5,000 car?
In three more years he'll have a $5000 car. Problem solved :)
by dknightd
Sun Mar 22, 2020 9:19 am
Forum: Personal Investments
Topic: Why does the 4% rule work when the markets have huge corrections
Replies: 51
Views: 3383

Re: Why does the 4% rule work when the markets have huge corrections

IMO the 4% rule of thumb works because if the markets have huge corrections one way, they tend to move the other way later. I think it is a useful rule of thumb, but certainly should not be a rule you have to follow. As a recent retiree I like to have several years expenses in cash like things. It h...
by dknightd
Sun Mar 22, 2020 8:41 am
Forum: Personal Consumer Issues
Topic: How to get Toilet Paper ? seriously.
Replies: 684
Views: 55553

Re: How to get Toilet Paper ? seriously.

I've got a roll I'll sell you ;) I assume OP has solved the problem by now ?!?!?
by dknightd
Sun Mar 22, 2020 8:26 am
Forum: Personal Consumer Issues
Topic: Need a new car, please help given COVID-19
Replies: 44
Views: 2960

Re: Need a new car, please help given COVID-19

In terms of timing (due to COVID-19), do you all think it would be better to get something now, in a month, or in a few months. We have the luxury of waiting - I wasn't sure if there was a time where car prices may be cheaper. I'd wait. Not because price might be higher or lower but just to avoid u...
by dknightd
Fri Mar 20, 2020 9:54 am
Forum: Investing - Theory, News & General
Topic: Variable Percentage Withdrawal (VPW)
Replies: 992
Views: 333767

Re: Variable Percentage Withdrawal (VPW)

There are many ways to slice a loaf of bread. What I like about the various VPW spread sheets is they estimate what my future SS and other future income might be worth in today's dollars. There are a lot of assumptions involved in doing this, and there a lot of assumptions in what future growth of o...
by dknightd
Wed Mar 18, 2020 3:18 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds falling?
Replies: 236
Views: 5677

Re: Why are bonds falling?

pretty much the only things you can control are your savings rate and your spending rate. All the rest is who knows, hope for the best.
by dknightd
Wed Mar 18, 2020 3:05 pm
Forum: Personal Consumer Issues
Topic: How can bogleheads help during this crisis?
Replies: 20
Views: 1273

Re: How can bogleheads help during this crisis?

This is a timely question for me. If the government sends us a check. How can we best help people who are suffering?
Thanks
by dknightd
Wed Mar 18, 2020 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: How would you mentor STEM college students/grads?
Replies: 15
Views: 802

Re: How would you mentor STEM college students/grads?

save early, save often, have an emergency fund
by dknightd
Wed Mar 18, 2020 12:04 pm
Forum: Investing - Theory, News & General
Topic: Why not liquidate?
Replies: 48
Views: 4371

Re: Why not liquidate?

Novice10 wrote:
Wed Mar 18, 2020 11:10 am

If the market for sure is falling for at least a few weeks
If you are sure, then go ahead.
by dknightd
Wed Mar 18, 2020 11:45 am
Forum: Personal Investments
Topic: TIAA Real Estate Movement
Replies: 76
Views: 4733

Re: TIAA Real Estate Movement

I want to keep about 10% of my assets in TREA. Because of changes in other parts of my investments, I'll probably sell a little TREA today, and move it into stocks. I like that TIAA real estate (TREA) moves a little slower than other assets. I'll probably always keep about 10% in it. It is more liqu...
by dknightd
Wed Mar 18, 2020 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Can’t believe I am about to Pay-off a 2.75% Mortgage
Replies: 25
Views: 3447

Re: Can’t believe I am about to Pay-off a 2.75% Mortgage

A couple of points: 1. My mortgage is NOT deductible at this point — file MFJ and take the STD Deduction. 2. My only choice if I move forward is to use the assets in Roth, there are no taxable assets. 3. I am converting from my IRA to Roth into the 24% bracket, my Marginal rate is 33.5% (CA residen...
by dknightd
Wed Mar 18, 2020 10:42 am
Forum: Investing - Theory, News & General
Topic: Anybody else hoping for stocks to plummet?
Replies: 20
Views: 1121

Re: Anybody else hoping for stocks to plummet?

I'm sure there is somebody else out there that hopes stocks will plummet. I'm not one of them.
Plummeting stocks are usually an indication that something is really wrong, or that enough people think that something is really wrong. Honestly I'd like to see them settle down a bit.
by dknightd
Wed Mar 18, 2020 10:29 am
Forum: Investing - Theory, News & General
Topic: Algorithmic trading
Replies: 6
Views: 337

Re: Algorithmic trading

It is weird, one day up, next day down, almost like clockwork. I think these daily changes are too slow to be due to high frequency algorithmic trading. I have no idea why the market does what it does. . .
by dknightd
Wed Mar 18, 2020 10:25 am
Forum: Forum Issues and Administration
Topic: Giving thanks to our moderators
Replies: 91
Views: 4967

Re: Giving thanks to our moderators

ResearchMed wrote:
Wed Mar 18, 2020 10:23 am

Thanks again, and we hope you all stay well!

RM
Well said. I'll add, I hope everybody stays well.
by dknightd
Wed Mar 18, 2020 10:23 am
Forum: Personal Investments
Topic: Rebalancing Today - Saw Bonds are being sold off - Should I wait?
Replies: 48
Views: 3095

Re: Rebalancing Today - Saw Bonds are being sold off - Should I wait?

I'm still rebalancing when it looks like when the market closes I'll be below my desired band. I only do 1% which keeps me just above the bottom of my band. I like slow and gradual since we do not know where this will end up.
by dknightd
Mon Mar 16, 2020 12:11 pm
Forum: Personal Consumer Issues
Topic: Are you in the mood to buy anything?
Replies: 62
Views: 5006

Re: Are you in the mood to buy anything?

I'm thinking buy beer and vodka
by dknightd
Mon Mar 16, 2020 10:03 am
Forum: Personal Investments
Topic: 5/25 and Annual Rebalancing -> Recommendation
Replies: 15
Views: 680

Re: 5/25 and Annual Rebalancing -> Recommendation

Hi, This is an unusual time. As per my IPS, I do both 5/25 and annual rebalancing on the first weekend of August. My 5/25 band based rebalancing only triggered once every few years. Now, it looks like it may be triggered twice in a year. My basic information A) AA = 60/40. B) Portfolio size of 21 t...
by dknightd
Mon Mar 16, 2020 9:43 am
Forum: Investing - Theory, News & General
Topic: One-way rebalancing: typical practice?
Replies: 35
Views: 1579

Re: One-way rebalancing: typical practice?

PS. this thread is about clarifying one-day rebalancing procedural details. Please refrain from posting judgments about the adequacy or lack thereof of such procedure. To give you some thing to test, try this. An investor wants to stay near 50/50. They spend only bonds. If stocks get above 50% they...
by dknightd
Mon Mar 16, 2020 9:22 am
Forum: Investing - Theory, News & General
Topic: One-way rebalancing: typical practice?
Replies: 35
Views: 1579

Re: One-way rebalancing: typical practice?

PS. this thread is about clarifying one-day rebalancing procedural details. Please refrain from posting judgments about the adequacy or lack thereof of such procedure. To give you some thing to test, try this. An investor wants to stay near 50/50. They spend only bonds. If stocks get above 50% they...
by dknightd
Mon Mar 16, 2020 8:58 am
Forum: Investing - Theory, News & General
Topic: One-way rebalancing: typical practice?
Replies: 35
Views: 1579

Re: One-way rebalancing: typical practice?

... but I pretty much eyeball things. . . I think this is pretty a typical practice for a one way rebalancing. Just take something off the top when you can, and when it looks like a good time to do it. I call it chi-by-eye While I was de-risking for retirement I sold about 1% of my stock holdings e...