Search found 589 matches

by averagedude
Sat May 18, 2019 12:41 pm
Forum: Personal Investments
Topic: IRA Question: VTWAX instead of VTSAX + VTIAX
Replies: 9
Views: 639

Re: IRA Question: VTWAX instead of VTSAX + VTIAX

Doing this would increase your international holdings slightly. Both are reasonable.
by averagedude
Tue May 14, 2019 8:41 pm
Forum: Investing - Theory, News & General
Topic: Episode 009: "Bogleheads on Investing" with guest Dr. Wesley Gray, host Rick Ferri
Replies: 14
Views: 2252

Re: Episode 009: "Bogleheads on Investing" with guest Dr. Wesley Gray, host Rick Ferri

Great podcast Rick! Blows my mind how this guy took a 4 year sabbatical (marines) while pursuing his PHD. Wish i had just a tenth of this guys drive when i was his age. Wonderful job of listening to your guest's when you interview them.
by averagedude
Tue May 14, 2019 8:29 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Long Term Bond Index to charge 0.50% fee on purchases
Replies: 64
Views: 5651

Re: Vanguard Long Term Bond Index to charge 0.50% fee on purchases

Could be wrong, but if you plan on holding this investment for 20+ years, you should profit from this fee since the fee goes to the fund itself. If you plan on this being a short term trade, you should purchase the etf. Vanguard puts this fee in place not to profit, but to discourage short term trad...
by averagedude
Sun Apr 21, 2019 11:51 am
Forum: Personal Investments
Topic: Inheritance With Zero Income, Zero Expenses
Replies: 35
Views: 4207

Re: Inheritance With Zero Income, Zero Expenses

You need health insurance. You are probably in a position where you will pay little or nothing at all for it. One medical emergency could wipe out all of your emergency savings and future inheritance. This could put you in a situation where you become destitute later in life.
by averagedude
Sun Apr 21, 2019 11:28 am
Forum: Personal Investments
Topic: Investing for siblings
Replies: 21
Views: 2130

Re: Investing for siblings

Not really enough info to give a good answer. You could average your siblings likely retirement date and put the money in a target dated fund from Vanguard, Fidelity, or Schuab. This way no one could say that you invested the money in an unreasonable manner and you won't have to make any further dec...
by averagedude
Fri Apr 19, 2019 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on How to Find Competent Social Security Advisors (St Louis area)
Replies: 7
Views: 923

Re: Advice on How to Find Competent Social Security Advisors (St Louis area)

Mike Piper has a book and a social security calculator that could be good resources for them. They could also pay for a couple of hours of fee only advice from the Garrett Planning Network.
by averagedude
Fri Apr 19, 2019 11:44 am
Forum: Investing - Theory, News & General
Topic: This could be the biggest risk that retirees face?
Replies: 117
Views: 8492

Re: This could be the biggest risk that retirees face?

I would be willing to bet that for the average boglehead that will be living in their eighties, the biggest item they will be"spending" their money on is legacy spending for their heirs, yet they will continue worrying about running out of money. Withdrawing less than 5% of your investable assets in...
by averagedude
Fri Apr 19, 2019 11:27 am
Forum: Personal Investments
Topic: Net Worth where it should be?
Replies: 49
Views: 6746

Re: Net Worth where it should be?

You are doing way better than the average American. Only you can answer this and i hope you can do so, but how is your progress in achieving your written short and long term goals?
by averagedude
Fri Apr 19, 2019 11:11 am
Forum: Personal Finance (Not Investing)
Topic: In Laws Retirement Nest Egg
Replies: 156
Views: 14410

Re: In Laws Retirement Nest Egg

Your in laws are fine. I seriously doubt that you will be in a position, that you will have to financially support them. There are numerous people who would love to financially support their in laws, but are instead having to be care givers due to poor health. This should be a bigger concern, as it ...
by averagedude
Fri Apr 19, 2019 10:29 am
Forum: Investing - Theory, News & General
Topic: Hedging against hyperinflation scenario
Replies: 47
Views: 3127

Re: Hedging against hyperinflation scenario

Hedging against hyperinflation:
1. Don't pay off a fixed rate mortage.
2. International stocks
3. US stocks.
4. TIPS.
5. Gold and precious metals.
6. Commodities.
7. Real estate.
Hedging against total financial collapse.
1. None, and the answer will only be known in hindsight.
by averagedude
Fri Apr 19, 2019 10:01 am
Forum: Personal Investments
Topic: 401k help!! Which of these is most similar to VBMFX?
Replies: 23
Views: 668

Re: 401k help!! Which of these is most similar to VBMFX?

If you are looking for the fund that will track closely with total bond, i would look no further than the Pimco total return fund.
by averagedude
Fri Apr 19, 2019 9:51 am
Forum: Personal Investments
Topic: investing beyond the three fund portfolio
Replies: 7
Views: 710

Re: investing beyond the three fund portfolio

Smart investing is suppose to be boring. If you want some excitement with your money, go to Vegas with a small amount.
by averagedude
Fri Apr 19, 2019 9:43 am
Forum: Investing - Theory, News & General
Topic: American Funds vs Vanguard
Replies: 69
Views: 4242

Re: American Funds vs Vanguard

American funds are probably the largest actively managed mutual fund family in the world. Overall, most of their funds have beat their benchmarks and the past performance of their funds are well respected. I would still choose index funds, because the problem with active management is there is no wa...
by averagedude
Fri Apr 19, 2019 9:24 am
Forum: Investing - Theory, News & General
Topic: This could be the biggest risk that retirees face?
Replies: 117
Views: 8492

Re: This could be the biggest risk that retirees face?

Im an average wage earner, so this may not apply to typical bogleheads. We have no debt now and we plan to take social security at 70 years old. If we should be lucky enough to be healthy and live to 100 years old, we wont be worrying about running out of money. At that age, social security should b...
by averagedude
Fri Apr 19, 2019 8:58 am
Forum: Personal Investments
Topic: Asset Allocation - 34 year old worth $1.2M
Replies: 21
Views: 3242

Re: Asset Allocation - 34 year old worth $1.2M

At 34 years old, this is a no brainer. Lump sum it into the markets. If this makes you feel uneasy, then lump sum the amount after paying off your mortage. After paying off mortage, you should have plenty of monthly savings to invest in tax deferred accounts if possible.
by averagedude
Wed Apr 17, 2019 7:37 am
Forum: Personal Finance (Not Investing)
Topic: "When Adding to Your Retirement Account is a Bad Idea"
Replies: 29
Views: 3869

Re: "When Adding to Your Retirement Account is a Bad Idea"

If you are equity heavy and expecting a high rate of return on stocks in the future, RMD's from your traditional accounts can be a good problem to have. You never hear this, but the best thing to happen if you are trying to transfer assets to the next generation, is to have stocks have a major decl...
by averagedude
Wed Apr 17, 2019 12:05 am
Forum: Personal Finance (Not Investing)
Topic: "When Adding to Your Retirement Account is a Bad Idea"
Replies: 29
Views: 3869

Re: "When Adding to Your Retirement Account is a Bad Idea"

You also need to take account the tax bracket that you may have and the tax brackets that your heirs will have in the future. If you have been successful, your tax brackets will be higher than what your heirs will inherit if they are low wage earners. There are many complexities in the tax code, and...
by averagedude
Tue Apr 16, 2019 11:48 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: The Factors That Plague Factor Investing
Replies: 44
Views: 3172

Re: Larry Swedroe: The Factors That Plague Factor Investing

I am a skeptic of factor investing, even though i may tilt to value and size. If quality, size, momentum, and value was a no brainer, wouldn't every investor invest in these products. Time will tell, but the difference in returns will be closely correlated in my opinion. Perhaps there is no premium ...
by averagedude
Tue Apr 16, 2019 11:29 pm
Forum: Personal Investments
Topic: Ditching Edward Jones...but need some advice & guidance
Replies: 9
Views: 1407

Re: Ditching Edward Jones...but need some advice & guidance

Figure your AA. Asset placement should be 100% stock in Roth. Congrats of getting smart and moving away from Edward Jones. It is hard to ignore the 5% plus load fees that you have paid in the past. They suck!
by averagedude
Tue Apr 16, 2019 11:21 pm
Forum: Personal Investments
Topic: Retirement Advice - Annuity or Not? RMD?
Replies: 27
Views: 1683

Re: Retirement Advice - Annuity or Not? RMD?

i thought this was a family friendly website that had no curse words. Annuity is a word that should not belong on this website. Is there any three fund proponents that are annuity friendly and are not ashamed of admitting it and believe it is a better alternative than a three fund portfolio? Please ...
by averagedude
Tue Apr 16, 2019 11:07 pm
Forum: Personal Investments
Topic: Short Term Bond Index vs. Prime Money Market
Replies: 30
Views: 3412

Re: Short Term Bond Index vs. Prime Money Market

You'll probably be fine with either. I like this answer. The Ivy league smart people that spend 50 hours a week pricing in what should be the yields in the various credit risks in the bond market should be the answer to your question. The markets are fairly efficient, and the people that are pricin...
by averagedude
Tue Apr 16, 2019 10:53 pm
Forum: Personal Investments
Topic: Help deciding how much & where to invest
Replies: 8
Views: 404

Re: Help deciding how much & where to invest

Since you are a frugal pharmacist, I would suggest that you save 20% of your gross income which is $44000 a year. Put this money in a tax deferred account, preferably at least half in a ROTH. I suggest that you both have written goals with action plans to accomplish these goals and savings 20% of yo...
by averagedude
Tue Apr 16, 2019 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: Jury Duty questions
Replies: 20
Views: 2101

Re: Jury Duty questions

I know nothing about this, but i would send back my application with your intentions of your travel plans. Im sure they will accommodate you as they have numerous options to accomplish their goals of finding people to do their intended plans. I have had numerous letters in the past, and i have sent ...
by averagedude
Tue Apr 16, 2019 10:34 pm
Forum: Investing - Theory, News & General
Topic: Home equity as % of AA
Replies: 41
Views: 2973

Re: Home equity as % of AA

Do not include your home equity as a percentage of your AA. If you have insufficient funds to support you if you happen to live a long life expectancy, than i would include it as a fixed income investment, but using your house in a reverse mortgage as part of a financial plan should be a last resort...
by averagedude
Tue Apr 16, 2019 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: My life insurance company wants to "help me save money"
Replies: 26
Views: 2250

Re: My life insurance company wants to "help me save money"

Insurance is all about protecting you or a dependent from a financial catastrophe. You only need enough coverage to protect you or a dependent from this. I have never experienced having coverage from an insurance company that was only interested in helping me and not having their interest in mind. L...
by averagedude
Tue Apr 16, 2019 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: "When Adding to Your Retirement Account is a Bad Idea"
Replies: 29
Views: 3869

Re: "When Adding to Your Retirement Account is a Bad Idea"

If you are equity heavy and expecting a high rate of return on stocks in the future, RMD's from your traditional accounts can be a good problem to have. You never hear this, but the best thing to happen if you are trying to transfer assets to the next generation, is to have stocks have a major decli...
by averagedude
Tue Apr 16, 2019 9:57 pm
Forum: Investing - Theory, News & General
Topic: High turnover funds in 401K?
Replies: 8
Views: 499

Re: High turnover funds in 401K?

High turnover means nothing inside of a tax deferred account, but tax efficient funds do have higher correlations to better returns according to academic research.
by averagedude
Tue Apr 16, 2019 9:51 pm
Forum: Personal Consumer Issues
Topic: Boglehead Beer
Replies: 909
Views: 164503

Re: Boglehead Beer

There is no boglehead beer because bogleheads believe in a three ingredient approach. Now if you are Rick Ferri with a core four approach, you may be able to answer this question because beer has 4 main components. Grain, hops, yeast, and water. Perhaps this is a question for Rick. Me personally, I...
by averagedude
Tue Apr 16, 2019 9:47 pm
Forum: Personal Consumer Issues
Topic: Ready to buy a new cheap smartphone - any gotchas?
Replies: 40
Views: 3454

Re: Ready to buy a new cheap smartphone - any gotchas?

My 2 cents from a technology illiterate person. If you have plenty of money and only care about the latest technology, buy the most expensive phone you can afford. If you are frugal there are other options out there where you can save some money and experience a good quality cell phone. Check out Cl...
by averagedude
Tue Apr 16, 2019 9:39 pm
Forum: Investing - Theory, News & General
Topic: Junk bonds undervalued due to boglehead popularity?
Replies: 51
Views: 4681

Re: Junk bonds undervalued due to boglehead popularity?

Try some actual PortfolioVisualizer backtests. Use some proposed portfolio that really makes sense to you, that includes "high-yield" bonds, then replace them with a mixture of about 2/3rds investment-grade bonds, 1/3rd stocks, and see how much difference it makes. For example, Portfolio 1 is the r...
by averagedude
Tue Apr 16, 2019 9:27 pm
Forum: Personal Investments
Topic: Help me understand buying individual bonds/notes/etc. w/Vanguard
Replies: 5
Views: 442

Re: Help me understand buying individual bonds/notes/etc. w/Vanguard

In the bond market, higher yield means higher risk. Don't ever buy individual bonds unless you can diversify enough where your highest bond position is only 5% of your total bond holding, and even then I would be cautious.
by averagedude
Tue Apr 16, 2019 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Job Offer Evaluation - FANG
Replies: 99
Views: 9302

Re: Job Offer Evaluation - FANG

I would do what a sports athlete would do. Go where the money is. To hell with what will bring me accolades and job satisfaction, especially if you think it will be a short career. Spend less than you earn though.
by averagedude
Tue Apr 16, 2019 9:10 pm
Forum: Personal Investments
Topic: $1.1 million rental portfolio, but tired of being a landlord
Replies: 87
Views: 10857

Re: $1.1 million rental portfolio, but tired of being a landlord

As an average wage earner, i would suggest you selling all of your real estate holding and invest in a three fund portfolio. Passive income from the stock and bond markets beats real estate. No getting phone calls in the middle of the night to fix things, no showing property to potential buyers, not...
by averagedude
Tue Apr 16, 2019 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Young Couple Seeking Financial Advice From Bogleheads
Replies: 27
Views: 2696

Re: Young Couple Seeking Financial Advice From Bogleheads

Im not going to give you advice, but i am amazed to see a 27 year old couple that are spending less than they earn and have written goals. These two things are the building blocks to having success in a marriage and life. I wish you both health and happiness.
by averagedude
Tue Apr 16, 2019 8:42 pm
Forum: Personal Consumer Issues
Topic: Boglehead Beer
Replies: 909
Views: 164503

Re: Boglehead Beer

There is no boglehead beer because bogleheads believe in a three ingredient approach. Now if you are Rick Ferri with a core four approach, you may be able to answer this question because beer has 4 main components. Grain, hops, yeast, and water. Perhaps this is a question for Rick. Me personally, I ...
by averagedude
Tue Apr 16, 2019 8:29 pm
Forum: Investing - Theory, News & General
Topic: Why does the stock market go up in the long term?
Replies: 62
Views: 4612

Re: Why does the stock market go up in the long term?

These are my two reasons, but no one really knows what the future will bring. I do know that investors that have been optimists have been rewarded handsomely. 1. Returns and risk have correlations. If you take higher risks with low fees, you should be rewarded with higher returns. 2. Being a owner i...
by averagedude
Tue Apr 16, 2019 8:11 pm
Forum: Personal Investments
Topic: Where to hold 2-3 years of living expenses
Replies: 28
Views: 5570

Re: Where to hold 2-3 years of living expenses

I'm three years away and after many years of saving I am slowly increasing my cash holdings in my taxable portfolio, tax deferred 401K, rollover IRA, and slightly in my Roth. I never see it being more than 10% (probably 2% now) and plan to have at least 3 years worth of cash to draw from when the d...
by averagedude
Sun Apr 14, 2019 10:06 am
Forum: Investing - Theory, News & General
Topic: Does international small cap matter?
Replies: 14
Views: 1717

Re: Does international small cap matter?

I personally have a 25% tilt to International small caps in my portfolio and i estimate that it will give me a gain or loss annualized return of 0.25% over the long haul. So the answer to your question is no, especially if you are not in your 20s or 30s. I use (VFSAX), the Vanguard FTSE all world ex...
by averagedude
Sun Apr 14, 2019 9:48 am
Forum: Personal Investments
Topic: how to invest in taxable account for 6 years
Replies: 16
Views: 1442

Re: how to invest in taxable account for 6 years

I would be wary of having much in stock. I would recommend 20% to 30% in stock with the rest in fixed income. I would use the Vanguard Life Strategy Income (VASIX) fund or a three fund portfolio (20-10-70). The life strategy fund has 20% in equities. You may also benefit by having your fixed income ...
by averagedude
Sun Apr 14, 2019 9:36 am
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 7182

Re: If you have plenty of money, why not 100% stocks in retirement?

You could make the same argument, why not 100% in bonds. It is best to take an approach that accomplishes your goals and at the same time sleep well at night. If you have legacy goals, having a high stock allocation is reasonable if you have plenty of money. For most people, taking a balanced approa...
by averagedude
Wed Apr 10, 2019 5:57 pm
Forum: Personal Investments
Topic: Help me make the most of a bad 401K!
Replies: 17
Views: 1159

Re: Help me make the most of a bad 401K!

When you say that your 401k choices were bad, you wasn't joking. Do you have any clout in the company where you could promote change? If it was me, I would write a letter to the owner to display my appreciation of the company offering a tax deferred plan to its employees, but would recommend a bette...
by averagedude
Wed Apr 10, 2019 5:44 pm
Forum: Personal Investments
Topic: Reasonable plan for tilting?
Replies: 17
Views: 1606

Re: Reasonable plan for tilting?

Sound completely reasonable to me, but the problem is tinkering. I am almost positive that you will tinker with this in the future. Just make sure that you are not performance chasing when you tinker in the future.
by averagedude
Tue Apr 09, 2019 7:57 pm
Forum: Personal Consumer Issues
Topic: How Much Do You Pay For Haircut?
Replies: 115
Views: 6408

Re: How Much Do You Pay For Haircut?

Im pretty much bald, so i have clippers and spend zero. I remember when i had hair, i would go to barber shops and guys would come in and pay $7 for a haircut and they had less hair than i do now. Most of these guys were blue collar like me and they always wore hats. I never have understood this. I ...
by averagedude
Mon Apr 08, 2019 7:10 pm
Forum: Personal Investments
Topic: The 2-fund strategy for a beginner late-to-the-game investor
Replies: 12
Views: 1397

Re: The 2-fund strategy for a beginner late-to-the-game investor

I am a huge fan of Paul Merriman, but i have the opinion that his portfolios are better suited for young investors. I would recommend a target date fund, a life strategy fund, or the boglehead three fund portfolio for a late to the game investor like yourself. A target date fund would be a great sim...
by averagedude
Mon Apr 08, 2019 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgages Pro's and Cons
Replies: 23
Views: 1398

Re: Reverse Mortgages Pro's and Cons

Here a couple of thoughts that i have about reverse mortgages. 1.Consumer reports and Clark Howard are not fans of these products. These are two resources that have good track records of good advice. 2. Why do some states impose regulations that consumers of these products must go thru consumer coun...
by averagedude
Mon Apr 08, 2019 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgages Pro's and Cons
Replies: 23
Views: 1398

Re: Reverse Mortgages Pro's and Cons

Here is a link that could be a good read to determine other options. https://clark.com/homes-real-estate/4-a ... e-mortgage
by averagedude
Mon Apr 08, 2019 6:28 pm
Forum: Personal Consumer Issues
Topic: Is there a good website(s) or resources for used car reviews?
Replies: 24
Views: 1502

Re: Is there a good website(s) or resources for used car reviews?

Not really a lot of resources out there where they have your best interest in mind. If i was going to trust a resource, it would be CR.
by averagedude
Mon Apr 08, 2019 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgages Pro's and Cons
Replies: 23
Views: 1398

Re: Reverse Mortgages Pro's and Cons

Not knowledgeable on the details, but i do know that this should be looked at as a last resort only. Alot of high fees associated with this product.
by averagedude
Fri Apr 05, 2019 5:31 pm
Forum: Investing - Theory, News & General
Topic: Is there a relatively stable junk bond fund?
Replies: 43
Views: 4860

Re: Is there a relatively stable junk bond fund?

I would recommend VWEHX also, but there is no such thing as a stable junk bond fund. I would recommend that you never put over 20% of your fixed income in junk bonds. The only way to get higher yields in the bond market is to take higher risk.
by averagedude
Wed Apr 03, 2019 7:14 pm
Forum: Personal Investments
Topic: A CD matured. Now what?
Replies: 13
Views: 2259

Re: A CD matured. Now what?

What about total bond. Over the last year and a half, i thought this fund would had gotten crushed after a half dozen rate hikes, but hasn't done as bad as i thought. What do you think it will do in the next 5 years if their are no rate hikes? Do you see a scenario where the fed raises rates a half ...