Search found 208 matches

by averagedude
Sun Nov 11, 2018 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: [Financial] Habits of the Rich
Replies: 98
Views: 10992

Re: [Financial] Habits of the Rich

I would also like to add how luck has played a role in my success. 1. Im lucky that i was born in the US. 2. Im lucky that i had good parents. 3. Im lucky that my family has good mental and physical health. 4. Im lucky to have married a great spouse. I would also like to add that the harder i work, ...
by averagedude
Sun Nov 11, 2018 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: [Financial] Habits of the Rich
Replies: 98
Views: 10992

Re: Habits of the Rich

Im an average wage, blue collar worker who will retire in my 50's with no pension. This is what i have done. 1. Set written goals early in life with an action plan. 2. Didn't have any unplanned pregnancies. 3. Lived below my means when purchasing housing and transportation. Never went into debt exce...
by averagedude
Sun Nov 11, 2018 1:59 am
Forum: Investing - Help with Personal Investments
Topic: Is it a waste keeping money in a money market account?
Replies: 33
Views: 6968

Re: Is it a waste keeping money in a money market account?

I have about $60K in a money market account, with $15-20K of that being allotted for emergency fund and the rest for a down payment. I hate leaving this much in a money market account however I may need it within the next few years. Is this a suitable place to store this much money given my goals o...
by averagedude
Sun Nov 11, 2018 1:29 am
Forum: Investing - Help with Personal Investments
Topic: Is it a waste keeping money in a money market account?
Replies: 33
Views: 6968

Re: Is it a waste keeping money in a money market account?

I have about $60K in a money market account, with $15-20K of that being allotted for emergency fund and the rest for a down payment. I hate leaving this much in a money market account however I may need it within the next few years. Is this a suitable place to store this much money given my goals o...
by averagedude
Sun Nov 11, 2018 1:23 am
Forum: Investing - Theory, News & General
Topic: What's Your Fixed Income Strategy?
Replies: 89
Views: 8506

Re: What's Your Fixed Income Strategy?

Not really happy with my fixed income strategy but here it is. 30% in short term CD'S with the thought of putting it in bonds when the fed hits the brakes on raising rates. The other 70% in bonds with 70% total bond, 20% Vanguard intermediate corporate, and 10% Vanguard high yield.
by averagedude
Sun Nov 11, 2018 12:35 am
Forum: Personal Finance (Not Investing)
Topic: If expenses are low, are some of us over saving?
Replies: 120
Views: 11427

Re: If expenses are low, are some of us over saving?

I do think the original poster makes a good point that it is possible that many people can live on social security alone. Actually it is going to be a reality for a vast amount of people living in the US. It is my opinion that social security will be there in the future because it is political suici...
by averagedude
Sun Nov 11, 2018 12:06 am
Forum: Investing - Help with Personal Investments
Topic: Help to understand bonds maturity vs investment timeline
Replies: 3
Views: 376

Re: Help to understand bonds maturity vs investment timeline

Just me, but i would feel more comfortable investing in long term bonds when interest rates are above their historic averages than below their averages. Where interest rates are and where they likely will be in future should be more important than what your time horizon is. Of course determining whe...
by averagedude
Sat Nov 10, 2018 11:46 pm
Forum: Investing - Help with Personal Investments
Topic: Mid and Small Caps?
Replies: 38
Views: 3061

Re: Mid and Small Caps?

I have always invested in midcaps but i do believe you can ignore them by splitting between large and small. If i could only invest in only large, mid, or small i would choose midcap. I believe over a long time horizon, midcaps have a decent chance of outperforming both small and large, but i also b...
by averagedude
Sat Nov 10, 2018 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Index Fund Admiral Shares Question
Replies: 22
Views: 2362

Re: Vanguard Index Fund Admiral Shares Question

I would pick VTSAX because it has smaller companies in it. Im not an oddsmaker, but pulling a number out of my behind i would guess that VTSAX has a 70% chance of outperforming the 500 index over a 20 year period. The difference would be small either way.
by averagedude
Sat Nov 10, 2018 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency fund in my situation
Replies: 17
Views: 1513

Re: Emergency fund in my situation

I believe you have thought it out well.
by averagedude
Sat Nov 10, 2018 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency fund in my situation
Replies: 17
Views: 1513

Re: Emergency fund in my situation

You make some sound arguments for keeping less than 6 months in emergency savings. It usually is a personal choice. Me personally, we always kept a years worth of expenses in emergency savings in fixed income and my retirement accounts we invested 100% in stocks. I did this to remain debt free and i...
by averagedude
Sat Nov 10, 2018 10:10 am
Forum: Investing - Theory, News & General
Topic: Whats your number to walk away?
Replies: 301
Views: 45239

Re: Whats your number to walk away?

25 times my expense, including taxes and healthcare.
by averagedude
Sat Nov 10, 2018 9:54 am
Forum: Investing - Theory, News & General
Topic: Roth Investment Theory
Replies: 45
Views: 3529

Re: Roth Investment Theory

The optimal strategy has been to invest it all on the first day you are allowed (Jan 1). No, the optimal strategy is to invest money when you have it. Waiting until Jan 1 is worse. You are correct that as soon as you have it, invest it. The first day that you can make a 2019 tax year contribution i...
by averagedude
Sat Nov 10, 2018 8:25 am
Forum: Investing - Theory, News & General
Topic: Roth Investment Theory
Replies: 45
Views: 3529

Re: Roth Investment Theory

The optimal strategy has been to invest it all on the first day you are allowed (Jan 1).
by averagedude
Sat Nov 10, 2018 8:22 am
Forum: Investing - Help with Personal Investments
Topic: Strategy during the last stock market decline
Replies: 44
Views: 4196

Re: Strategy during the last stock market decline

We upped our percentage in our employer's 401k plan.
by averagedude
Fri Nov 09, 2018 6:03 pm
Forum: Investing - Theory, News & General
Topic: "Rules-Based Risk Management System" = Market Timing = Momentum/Trend Following?
Replies: 60
Views: 2659

Re: "Rules-Based Risk Management System" = Market Timing = Momentum/Trend Following?

This looks like one of many brilliant strategies to boost returns. It is so easy to come up with a market timing strategy that worked in the past. The hard part is developing a strategy that will work in the future. There is no strategy that is guaranteed to work in the future. Most active managers ...
by averagedude
Fri Nov 09, 2018 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: 401k Help. They are removing index funds.
Replies: 56
Views: 3953

Re: 401k Removed Index Funds

In my opinion, most trustees who oversee work retirement plans are always performance chasing. That is why alot of them replace funds yearly. If i was sitting in the room, i would advocate for low fee passive asset classes (large,mid,small,developed,emerging,total bond,stable value). My two biggest ...
by averagedude
Fri Nov 09, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: Bond alternative to balance portfolio?
Replies: 20
Views: 1674

Re: Bond alternative to balance portfolio?

If your concern is getting negative real returns from bonds, TIPS may be something to look at.
by averagedude
Sat Nov 03, 2018 5:04 pm
Forum: Investing - Theory, News & General
Topic: Brett Arends: Here's a simple way to beat a bear market
Replies: 38
Views: 5191

Re: Brett Arends: Here's a simple way to beat a bear market

Jack Bogle quote on market timing.. "After nearly 50 years in the business, I do not know of anybody who has done it successfully and consistent. Actually i don't know anybody that knows somebody that has done it". Me personally, i respect Jack Bogle's opinion more than Brett Arend's.
by averagedude
Sat Nov 03, 2018 7:51 am
Forum: Investing - Theory, News & General
Topic: Total expense of my portfolio
Replies: 4
Views: 512

Re: Total expense of my portfolio

Vanguard has a portfolio watch tool that could tell you.
by averagedude
Sat Nov 03, 2018 4:27 am
Forum: Investing - Theory, News & General
Topic: Brett Arends: Here's a simple way to beat a bear market
Replies: 38
Views: 5191

Re: Brett Arends: Here's a simple way to beat a bear market

Im sure there were some people who did this after the Trump election. If someone had a million dollars in stocks and tried this strategy then, they would had easily lost 100k doing this. Plus if you assume an 8% return, the opportunity cost over 30 years of losing 100k would come up with a million d...
by averagedude
Fri Nov 02, 2018 9:33 pm
Forum: Investing - Help with Personal Investments
Topic: Bad? All bonds in VFIDX VG intermediate Invest-Grade
Replies: 8
Views: 560

Re: Bad? All bonds in VFIDX VG intermediate Invest-Grade

I dont know about bogleheads but i looked at total assets at Vanguard. They have two TIPS funds with a total of 55 billion in assets. The total bond index has 200 billion in assets. Just looking at these bond funds, TIPS would account for 22% and total bond would be 78%. If you counted all bond fund...
by averagedude
Fri Nov 02, 2018 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: Inquiry on Target Funds
Replies: 6
Views: 396

Re: Inquiry on Target Funds

Quick question fellas, I'm curious about how target date funds rebalance, and I am worried about them locking in a loss from a stock allocation into a bond allocation. What I mean is: Say you have $100K in a Target Date Fund 2055. -Between now and 2030, there is a major bear market -- 50% loss. -Fr...
by averagedude
Fri Nov 02, 2018 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Bad? All bonds in VFIDX VG intermediate Invest-Grade
Replies: 8
Views: 560

Re: Bad? All bonds in VFIDX VG intermediate Invest-Grade

I think it is fine. Keep in mind the risk in this bond fund is that roughly 90% is corporate bonds. It is high grade and not long term so there should be very low default rates. Over a 20+ year time horizon, this fund SHOULD easily outperform the total bond index. One downside that i see is if we en...
by averagedude
Fri Nov 02, 2018 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: My Grandmother has 80% stocks
Replies: 39
Views: 3257

Re: My Grandmother has 80% stocks

An 80/20 portfolio isnt age appropriate for an 84 year old, but she could have the capacity to carry this risk. If she haves way more than she needs and her goal is to leave a gift after she shall pass, then she has invested her money in a prudent way. Im sure she is an amazing woman and i wish her ...
by averagedude
Fri Nov 02, 2018 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Getting on track; Edward Jones & Vanguard advice
Replies: 31
Views: 3136

Re: Getting on track; Edward Jones & Vanguard advice

Great advice from previous posters. If you want to be an above average investor and have maximum deversification, just pick the Vanguard target date fund. If you believe in your Dad's advice with a high risk tolerance and you have a conviction that being an owner instead of a loaner is wise i will s...
by averagedude
Fri Nov 02, 2018 7:29 pm
Forum: Investing - Theory, News & General
Topic: How low can BND go?
Replies: 65
Views: 7667

Re: How low can BND go?

The increase for Dec is baked into BND, so I wouldn't expect any major impact unless their guidance changes. I somewhat agree with this statement, but since the fed came up with their dot plot over a year and a half ago, an investor who put their fixed income into an online savings account has outp...
by averagedude
Fri Nov 02, 2018 7:02 pm
Forum: Investing - Theory, News & General
Topic: How low can BND go?
Replies: 65
Views: 7667

Re: How low can BND go?

The increase for Dec is baked into BND, so I wouldn't expect any major impact unless their guidance changes. I somewhat agree with this statement, but since the fed came up with their dot plot over a year and a half ago, an investor who put their fixed income into an online savings account has outp...
by averagedude
Wed Oct 31, 2018 9:49 pm
Forum: Investing - Theory, News & General
Topic: Is market cap weighting a dumb idea?
Replies: 64
Views: 2976

Re: Is market cap weighting a dumb idea?

Meb Faber has run a few funds, and a lot of us are familiar with his name and media exploits despite none of his funds doing particularly well. I would say Faber has some smarts at marketing despite his many failures investing. He's a great example of the type of things investors do that makes doin...
by averagedude
Wed Oct 31, 2018 8:32 pm
Forum: Investing - Theory, News & General
Topic: Core-4 Investing is LIVE! It really is this time!
Replies: 122
Views: 8591

Re: Core-4 Investing is LIVE! It really is this time!

Rick, i like your model portfolios. Four asset classes just like Dave Ramsey. Could you please tell us which portfolio will earn 12%.😁
by averagedude
Wed Oct 31, 2018 8:05 pm
Forum: Investing - Theory, News & General
Topic: Is market cap weighting a dumb idea?
Replies: 64
Views: 2976

Re: Is market cap weighting a dumb idea?

If you believe that markets are effecient, indexing by market cap isnt dumb and will more than likely be in the top half of performance among the many different ways to index. I listen to Meb Faber and he is way smarter than i am, but i believe i get better returns by strategically allocating my por...
by averagedude
Tue Oct 30, 2018 9:23 pm
Forum: Investing - Theory, News & General
Topic: GE: We Bring Bad News To Life!
Replies: 35
Views: 4706

Re: GE: We Bring Bad News To Life!

There is a GE plant where i live and i know a few people who retired from there who have huge holding in this stock. Most of them are in the hold and hope mode, hoping one day they will break even. Luckily they are doing fine since they have SSI and rather large pensions from this company. It is yet...
by averagedude
Sun Oct 28, 2018 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Becoming frugal
Replies: 81
Views: 10521

Re: Becoming frugal

When it comes to expenses, controlling the big ticket items has the biggest impact. 1. Kids. Make sure that all pregnancies are planned. 2. Housing. Buy or rent a place that is below your means. 3. Vehicles. Keep them till the wheels come off. 4. College. Make decisions on return on investment inste...
by averagedude
Sun Sep 30, 2018 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Warren Buffet Portfolio Critique
Replies: 56
Views: 4572

Re: Warren Buffet Portfolio Critique

I think a 90/10 asset allocation for a billionaire sounds reasonable to me. I see no issues of him running out of money. He should feel confident that he can continue to drive his 4 year old car to McDonalds and buy his three dollar breakfast.
by averagedude
Sun Sep 30, 2018 7:21 am
Forum: Investing - Help with Personal Investments
Topic: Desperate for FInancial Help
Replies: 11
Views: 1270

Re: Desperate for FInancial Help

Like many new retirees, it is difficult to flip the switch from saving your whole life to spending what you have accumulated. The resources you are using are great and should give you a snapshot of your finances that will help you plan for your financial future. Since you have been a diy investor, y...
by averagedude
Fri Sep 14, 2018 10:44 pm
Forum: Investing - Theory, News & General
Topic: Help w/ large annual bonus
Replies: 16
Views: 1953

Re: Help w/ large annual bonus

This is the classic lump sum vs. dollar cost averaging question. The short answer is that investing immediately wins about 2/3 of the time, but DCA is fine if that better suits your risk tolerance. Either way the key is to eventually get it invested. I totally agree with Afty. I would also say the ...
by averagedude
Fri Sep 14, 2018 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond or Total Bond/short-term
Replies: 48
Views: 4857

Re: Total Bond or Total Bond/short-term

I believe that people that ask this question is really asking if i should be strategic or tactical with their bond portfolio. Of course if you know that interest rates are going to go up it probably is best to be in a short term bond fund rather than a total bond fund. Both approaches has their meri...
by averagedude
Sat Aug 18, 2018 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Teachers Who Have Net Worth of $1 million +
Replies: 105
Views: 13814

Re: Teachers Who Have Net Worth of $1 million +

Seems to be some gloom and doom in this post on being a teacher in the US. To put it in perspective, if you and your spouse are teachers, you are in the top quartile in wage earnings. If both of you save just 10% of your income when you get out of college and invest it the boglehead way, when you re...
by averagedude
Tue Jul 31, 2018 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: 88 Year old IRAs are in VBTLX
Replies: 13
Views: 1587

Re: 88 Year old IRAs are in VBTLX

Seems completely reasonable to me. I think it is important for an old investor to keep things simple where there is minimal decisions to make with their investments. When some people approach into their 90's they start to lose some of their cognitive function. Im glad to hear that your dad is in goo...
by averagedude
Tue Jul 31, 2018 5:06 pm
Forum: Investing - Theory, News & General
Topic: Do you tilt value?
Replies: 12
Views: 824

Re: Do you tilt value?

Yes, i tilt to small (25%) and value (85% blend 15% value). I try not to go overboard with it. I believe it is ok to do if you dont tinker, have a long time horizon, and comfortable if you should be wrong.
by averagedude
Sun Jul 29, 2018 8:09 pm
Forum: Investing - Theory, News & General
Topic: Some skeptical thoughts on real estate crowdfunding
Replies: 1
Views: 608

Re: Some skeptical thoughts on real estate crowdfunding

I absolutely know nothing about real estate crowd funding, but i do know that Clark Howard says to stay away from them for the reasons you state (fees). Ive listened to Clark Howard for several years and his advice has no conflicts of interest and is spot on.
by averagedude
Sun Jul 29, 2018 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: When mortgage rates are high, why invest in stock market?
Replies: 36
Views: 4608

Re: When mortgage rates are high, why invest in stock market?

I bought my house in 1999 with an interest rate slightly above 7%. I saved roughly 20% of my income to tax deferred accounts and also payed more on the mortage and payed it off in 2010. I believe it is best to buy a house that you can pay off in 15 years and also be able to save 10% of your income f...
by averagedude
Sun Jul 22, 2018 7:41 pm
Forum: Investing - Theory, News & General
Topic: Inflation — Perspectives from Two Centuries, 1800-2016
Replies: 33
Views: 3433

Re: Inflation — Perspectives from Two Centuries, 1800-2016

I agree 100% with your assessment of inflation risks and the reasons behind it. Regardless of the gloom and doom that some people have espoused, the present and future seems less risky and more peaceful than the past. Investors who have been optimistic have been compensated well. With that being sai...
by averagedude
Sun Jul 22, 2018 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: My meeting with the Vanguard PAS [Personal Advisor Services]
Replies: 23
Views: 3561

Re: My meeting with the Vanduard PAS

I think trying to work your numbers to last till 100 is way too conservative. Most retirees net worth have increased as they have got older and many of them were retired during the great recession. All of my older uncles and aunts in their 90s don't even spend their ssi and pension income, not to ev...
by averagedude
Sun Jul 22, 2018 9:22 am
Forum: Investing - Theory, News & General
Topic: My BH Experience
Replies: 1
Views: 494

Re: My BH Experience

That is the beauty of simplicity and the bogleheads way of investing.
by averagedude
Sat Jul 21, 2018 3:10 pm
Forum: Investing - Theory, News & General
Topic: Good Books on Investment?
Replies: 14
Views: 1128

Re: Good Books on Investment?

The Bogleheads reading list is a good source of book titles that you may wish to investigate whether you want to read them or not. I believe that this is the reading list that livesoft refers to: https://www.bogleheads.org/wiki/Category:Books_and_authors I also think that Taylor's investment "Gems"...
by averagedude
Sat Jul 21, 2018 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Help me understand Morningstar ratings please!
Replies: 14
Views: 901

Re: Help me understand Morningstar ratings please!

If i was using morningstar to select funds, i would look at fees and expenses way before i would their star ratings. Any savings on expenses is a guaranteed rate of return.
by averagedude
Sat Jul 21, 2018 10:35 am
Forum: Investing - Theory, News & General
Topic: I may have understood why it's so hard to save and invest
Replies: 75
Views: 11459

Re: I may have understood why it's so hard to save and invest

Hello everyone, I recently have the opportunity to save a 1-month equivalent paycheck (1500$) and invest it through my brokerage. However, although it cost me a "lot" of effort, my net worth of my portfolio only increase by 2% (portfolio of 75k$). I found it very discouraging actually because my ef...
by averagedude
Sat Jul 21, 2018 7:39 am
Forum: Investing - Theory, News & General
Topic: Short versus Intermediate Term Bond
Replies: 57
Views: 5611

Re: Short versus Intermediate Term Bond

Vanguard shows that the Short Term Bond ETF (BSV) has an estimated YTM of 2.8 years and a duration of 2.7 years, while the Intermediate Term Bond ETF (BIV) has an estimated YTM of 3.4% but a duration of 6.4 years. Given thyat it is a given that the Fed will continue increasing short term rates, why...
by averagedude
Thu Jul 19, 2018 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Help Picking Funds 25 Year Old
Replies: 10
Views: 798

Re: 401k Help Picking Funds 25 Year Old

Good fund choices. This is my recommendation for your 80/20 allication. VINIX. 34% 500 index VEXAX. 22% extended market VTIAX. 24% total international VBTLX. 20% total bond This portfolio would give you 30% in international. Your domestic holdings will give you 60% in large companies and 40% in mid/...