Search found 1157 matches

by averagedude
Tue Aug 25, 2020 8:51 pm
Forum: Personal Investments
Topic: Intermediate bond index versus Total Bond Index
Replies: 34
Views: 3830

Re: Intermediate bond index versus Total Bond Index

Both are good and each has it's pros and cons. Intermediate bond has a bit more risk, so in theory you should get a higher return for bearing this risk. On the negative side, when the stock market crashes, Intermediate bond will not hold up as well as total bond, which is not what you want if you pl...
by averagedude
Tue Aug 25, 2020 8:41 pm
Forum: Personal Investments
Topic: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stock?
Replies: 166
Views: 11771

Re: As a 30 year old with extremely high risk tolerance should I even be holding bonds any more or should I go 100% stoc

I was always a 100% stock guy until just the last couple of years because I am close to retirement. I recommend it only to people who contribute at least monthly, have a long time horizon, and is the type of person who is more happy when stocks are down than when they are up.
by averagedude
Tue Aug 25, 2020 8:31 pm
Forum: Investing - Theory, News & General
Topic: A Beater Truck and a FAT 401k...
Replies: 104
Views: 10285

Re: A Beater Truck and a FAT 401k...

Great article. This is what I would call the big three for average folks like me. I attribute these 3 things as the foundation of my success. 1. Buy used cars and drive them until the wheels fall off. 2. Buy a modest house. 3. Invest at least 15% of your gross pay, make it automatic, and start doing...
by averagedude
Sun Aug 23, 2020 8:15 pm
Forum: Personal Investments
Topic: How much you lost/gain since Feb 20,2020 ?
Replies: 349
Views: 29988

Re: How much you lost/gain since Feb 20,2020 ?

I really hate to brag, but since Feb 20th, I am down 15 pounds.
by averagedude
Sun Aug 23, 2020 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Do you talk to your friends/family/coworkers about this stuff?
Replies: 210
Views: 16564

Re: Do you talk to your friends/family/coworkers about this stuff?

As a high school graduate, I love talking about wealth building. Unfortunately, my college educated friends have twice my income and a fourth of my net worth. [OT comment removed by moderator oldcomputerguy]
by averagedude
Thu Aug 20, 2020 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: Should I become a Professional Gambler?
Replies: 84
Views: 8306

Re: Should I become a Professional Gambler?

I play hold'em a couple times a year; have for decades. In fact when I first started playing hold'em was the rare game spread - 7-card stud was the common game. I enjoy it, great fun. I'm quite good at it, and have read plenty of strategy and other ancillary things like bankroll management, etc. Th...
by averagedude
Thu Aug 20, 2020 7:57 pm
Forum: Investing - Theory, News & General
Topic: Tilting to International
Replies: 178
Views: 14369

Re: Tilting to International

The vanguard outlook has international outperforming U.S for the next 10 years, would it be worth tilting to international? Is anyone else doing this? The real answer is that nobody actually knows. I personally have the opinion that International will outperform US over the next 10 years, but over ...
by averagedude
Tue Aug 04, 2020 4:45 pm
Forum: Investing - Theory, News & General
Topic: What happens if you run out of money in retirement?
Replies: 175
Views: 15426

Re: What happens if you run out of money in retirement?

I could easily live off of social security, especially if i delay benefits until 70 years old. There also is medicaid, food stamps, utility assistance, and subsidized housing. There are many 85 year olds with no savings and little income, yet you rarely see one homeless. There are 85 year old millio...
by averagedude
Sun Aug 02, 2020 9:47 pm
Forum: Personal Investments
Topic: Total Bond Fund for Short Term Savings?
Replies: 25
Views: 2297

Re: Total Bond Fund for Short Term Savings?

I would agree that for most 14 month periods, total bond makes alot of sense. With that being said, I have the opinion that the next 14 month period does not pay you for the risk you are taking for a fund that has a 6 year duration that has a 30 day SEC yield that is lower than an online high yield ...
by averagedude
Sun Aug 02, 2020 9:25 pm
Forum: Investing - Theory, News & General
Topic: Do financial advisors, themselves, use financial advisors?
Replies: 15
Views: 1479

Re: Do financial advisors, themselves, use financial advisors?

Financial advisors, financial planners, academic researchers, stock analyst's, average Joe's,or boglehead posters have no idea what will happen in the future. All of us are human, and we all have our flaws. Nobody knows nothing, but past history has suggested that people who place their bets that t...
by averagedude
Sun Aug 02, 2020 9:06 pm
Forum: Investing - Theory, News & General
Topic: Are Financial Advisors a Complete and Total Waste of Money?
Replies: 153
Views: 9282

Re: Are Financial Advisors a Complete and Total Waste of Money?

The correct amount of time that it takes to properly hire the correct financial advisor is about the same amount of time to correctly educate yourself on how to handle your own financial affairs. It does take some time, but it isn't rocket science and it certainly isn't worth a 1% fee that can easil...
by averagedude
Sun Aug 02, 2020 8:49 pm
Forum: Investing - Theory, News & General
Topic: Do financial advisors, themselves, use financial advisors?
Replies: 15
Views: 1479

Re: Do financial advisors, themselves, use financial advisors?

Financial advisors, financial planners, academic researchers, stock analyst's, average Joe's,or boglehead posters have no idea what will happen in the future. All of us are human, and we all have our flaws. Nobody knows nothing, but past history has suggested that people who place their bets that th...
by averagedude
Sat Aug 01, 2020 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Unmotivated daughter and son in law.
Replies: 115
Views: 9659

Re: Unmotivated daughter and son in law.

I feel it is unfair to reward an unmotivated kid, while doing nothing for your other kids that have made good decisions. Have you thought of how your other kids feel about this?
by averagedude
Wed Jul 15, 2020 5:13 pm
Forum: Investing - Theory, News & General
Topic: Almost half of BRK's portfolio in publicly traded companies is AAPL
Replies: 26
Views: 4085

Re: Almost half of BRK's portfolio in publicly traded companies is AAPL

With Warren's money, we could care less about the stock portion of my portfolio. Both of us frugal folks could easily live off of his 10% in US treasuries.
by averagedude
Wed Jul 15, 2020 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: is the wisdom still relevant
Replies: 190
Views: 13412

Re: Delaying Social Security: is the wisdom still relevant

I believe the smart people who are healthy has done a good job of delaying social security. I believe the dumb people are those that take social security at the earliest age and put all or most of their retirement savings in an annuity that someone sold them.
by averagedude
Wed Jul 15, 2020 4:38 pm
Forum: Personal Investments
Topic: 2% Real Returns, 2% inflation reasonable for estimating?
Replies: 42
Views: 2646

Re: 2% Real Returns, 2% inflation reasonable for estimating?

In my opinion, this seems like conservative, but yet reasonable numbers to run your projections. Kinda like the same projections that I am using. Isn't it odd how just 1% difference of real returns can have huge discrepancy's in the outcome of your financial plan?
by averagedude
Wed Jul 15, 2020 4:34 pm
Forum: Personal Investments
Topic: Lump Sum -or- DCA approach always petrifies me
Replies: 47
Views: 2387

Re: Lump Sum -or- DCA approach always petrifies me

I alway's say lump sum is best and statistics and past history proves that this is best. With that being said, if I was fortunate to receive a lump sum of money that equaled my net worth, it would still be difficult for me to lump sum it all into the market. I believe it still is best to lump sum in...
by averagedude
Sun Jul 12, 2020 9:10 pm
Forum: Investing - Theory, News & General
Topic: Reasons for Optimism about bonds?
Replies: 63
Views: 4453

Re: Reasons for Optimism about bonds?

As someone who has had a large emergency fund since my early 30's, I must say they are overrated, especially for people with stable jobs. I have never had to use it. I wish I had just put all of my emergency savings in stocks, but as far as looking at risk/reward, I believe a short term corporate bo...
by averagedude
Sun Jul 12, 2020 8:50 pm
Forum: Investing - Theory, News & General
Topic: Long list of Lazy Portfolios
Replies: 9
Views: 1179

Re: Long list of Lazy Portfolios

Thanks for sharing. I spent quite a bit of time going over some of these. Could you please tell me which of these portfolios will perform the best over the next 40 years? Answer this question with 100% accuracy and I will never waste another minute on the topic of investing.
by averagedude
Sun Jul 12, 2020 8:33 pm
Forum: Investing - Theory, News & General
Topic: Were You Around During Dotcom Bubble?
Replies: 182
Views: 11626

Re: Were You Around During Dotcom Bubble?

I remember the dotcom bubble. I was early in my investing career and I had a close family member that was buying any technology company that Motley Fool was recommending. I warned him that buying stocks from company's that had no earnings just didn't make any sense and that this time was not differe...
by averagedude
Sun Jul 12, 2020 8:20 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Wellesley Income fund is incredible
Replies: 590
Views: 121797

Re: Vanguard's Wellesley Income fund is incredible

Keep in mind that the long term performance of the Wellesley Income fund has a survival bias. Just look at the incredible amount of active mutual funds that didn't survive a long longevity due to being shut down due to underperforming the market. I'm sure if I started 20 different mutual funds that ...
by averagedude
Sun Jul 12, 2020 7:50 pm
Forum: Personal Investments
Topic: Early 30s investing advice on taxable accounts
Replies: 12
Views: 1633

Re: Early 30s investing advice on taxable accounts

It all really depends on your goals. For most people I would recommend VTSAX or VTIAX or their etf equivalants for taxable accounts due to their low turnover and tax efficiency.
by averagedude
Sat Jul 11, 2020 10:18 pm
Forum: Investing - Theory, News & General
Topic: I tilt toward small. But why would tilting toward value likely persistently outperform total stock market?
Replies: 57
Views: 3745

Re: I tilt toward small. But why would tilting toward value likely persistently outperform total stock market?

From the historical research that I have seen, value has given you higher returns than small capitalization stocks. I would say both could give you higher returns in the future, but I wouldn't bet the farm on it and don't be surprised if you are wrong. I would recommend that you keep your tilts reas...
by averagedude
Sat Jul 11, 2020 10:04 pm
Forum: Personal Consumer Issues
Topic: Tip Dental Hygienist for Teeth Cleaning? Thanks everyone.
Replies: 72
Views: 4987

Re: Tip Dental Hygienist for Teeth Cleaning? Thanks everyone.

I believe most dental hygienist would be more happy with you expressing your appreciation with words instead of cash out of your pocket.
by averagedude
Sat Jul 11, 2020 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: How Much Does a Car Salesperson Make on a New Car Sale?
Replies: 102
Views: 11503

Re: How Much Does a Car Salesperson Make on a New Car Sale?

In a bad market and economy, some car salespeople will sell a car with very little commission just to keep their job. They usually profit from people who just have to have that special vehicle with their particular color. They know most people are like this, thus the reason they can negotiate a nice...
by averagedude
Sat Jul 11, 2020 9:46 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Wellesley Income fund is incredible
Replies: 590
Views: 121797

Re: Vanguard's Wellesley Income fund is incredible

I've never owned the Wellesley income fund, but Willthrill you know as well as I do that past performance isn't an indicator of future returns. The stock portion of this fund is a bit concentrated as it has less than 70 individual stocks. Someone could easily make the argument that the future of thi...
by averagedude
Sun Jul 05, 2020 9:45 pm
Forum: Investing - Theory, News & General
Topic: A Must Listen! Dr. Burton Malkiel is my guest on the "Bogleheads on Investing" podcast.
Replies: 112
Views: 9620

Re: A Must Listen! Dr. Burton Malkiel is my guest on the "Bogleheads on Investing" podcast.

Great interview of one of the giants of investing. I don't necessarily agree with everything he say's, but I still recognize him as a face on Mount Rushmore alongside with Jack Bogle as a hero for small investors like me.
by averagedude
Sun Jul 05, 2020 9:38 pm
Forum: US Chapters
Topic: The Declaration of Independence
Replies: 66
Views: 10295

Re: The Declaration of Independence

A big thank you to brave people like Taylor Larimore who fought for our country, and also the brave founding fathers of our country who declared "give me liberty or give me death".
by averagedude
Sun Jul 05, 2020 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 1884
Views: 462078

Re: Share your net worth progression

I got wealthy on an average income by SSI. Not social security, but sacrificing, savings, and investing.
by averagedude
Sun Jul 05, 2020 9:23 pm
Forum: Personal Consumer Issues
Topic: Buying house without realtors
Replies: 84
Views: 5090

Re: Buying house without realtors

Whenever their is a huge load, commission, or fee rendered for a service, expect some pain in the anal or wallet region.
by averagedude
Sun Jul 05, 2020 2:49 pm
Forum: Personal Consumer Issues
Topic: Buying house without realtors
Replies: 84
Views: 5090

Re: Buying house without realtors

We sold a family house last year without a realtor. We had 3 realtors look at the home and each gave us a market assessment of the property. We sold the house "as is" to someone we knew and we took 9% off (6% fees, 3% expected maintenance issues and typical home price negotiating} of the recommended...
by averagedude
Sun Jun 21, 2020 8:09 pm
Forum: Personal Consumer Issues
Topic: Old Cars & the expenses that go with them
Replies: 69
Views: 5231

Re: Old Cars & the expenses that go with them

I could care less about vehicles and this is how I have done it for many years. 1. Compute how much money you spend on vehicles per year. Me personally, if I spend $7000 for a vehicle, I expect to get 7 years out of it. This computes to $1000 per year. 2. Compute how much you spend to maintain a use...
by averagedude
Wed Jun 03, 2020 7:38 pm
Forum: Investing - Theory, News & General
Topic: Dr. Burton Malkiel is my next "Bogleheads on Investing" podcast guest
Replies: 10
Views: 1617

Re: Dr. Burton Malkiel is my next "Bogleheads on Investing" podcast guest

An unbelievable lineup of guests so far. I will be looking forward to this future podcast with Burton Malkiel.
by averagedude
Fri May 29, 2020 8:55 pm
Forum: Personal Investments
Topic: Why not fund selection based on P/E, P/B?
Replies: 11
Views: 492

Re: Why not fund selection based on P/E, P/B?

Every sector, asset class, or index's P/E is priced for a reason. The question is are these things being priced differently than they were in the past? If this has changed, perhaps their is no premium in value, small, momentum, quality, or any other factors that you may believe in. The smart people ...
by averagedude
Fri May 29, 2020 8:36 pm
Forum: Investing - Theory, News & General
Topic: 70/30 - Expected Real Return?
Replies: 69
Views: 5295

Re: 70/30 - Expected Real Return?

I think if you are an accumulator, a 5% real return would be a good assumption because it is a good thing to be an optimist because you can smell some roses as you are living your life and you can always work longer if you happen to be wrong. If you are retired and need the income, a 2% real return ...
by averagedude
Fri May 29, 2020 8:16 pm
Forum: Personal Investments
Topic: DraftKings?
Replies: 25
Views: 1982

Re: DraftKings?

An Ivy league study concluded that their is more inefficiencies in sports betting than their is in picking individual stocks. The only difference between the two is that one has a vig (fee) that must be overcome which results in a negative expected value, and the other has a positive expected value,...
by averagedude
Fri May 29, 2020 8:01 pm
Forum: Personal Investments
Topic: Why not fund selection based on P/E, P/B?
Replies: 11
Views: 492

Re: Why not fund selection based on P/E, P/B?

I have tilted to small and value over the last several years and I have not received a risk premium for doing so. I really don't know if I ever will see it, but I have chosen to stay married to it. There is something to be said of staying the course with a total market or 500 index. It probably is t...
by averagedude
Fri May 29, 2020 7:36 pm
Forum: Personal Investments
Topic: Sold Stocks to Reduce Portfolio Risk
Replies: 23
Views: 2038

Re: Sold Stocks to Reduce Portfolio Risk

Sounds completely reasonable to me. I'm just glad you didn't do this on March the 23rd.
by averagedude
Thu May 28, 2020 8:41 pm
Forum: Investing - Theory, News & General
Topic: Sitting on a bunch of cash; what to do with it if I believe we're headed for SPX 1800 and protracted recession?
Replies: 206
Views: 21784

Re: Sitting on a bunch of cash; what to do with it if I believe we're headed for SPX 1800 and protracted recession?

You do know that their is a possibility that the market may never see 1800 again. This means that this strategy may cause you to never invest in stocks again in your lifetime. Hopefullly you will have no problem meeting your goals by investing in cash that will undoubtedly give you a negative real r...
by averagedude
Thu May 28, 2020 8:16 pm
Forum: Personal Consumer Issues
Topic: Tips to stick to a weight loss diet?
Replies: 183
Views: 10198

Re: Tips to stick to a weight loss diet?

Losing or maintaining weight is just like building wealth, and the concept is simple. Consume less calories than you burn and spend less than you earn.
by averagedude
Thu May 28, 2020 7:57 pm
Forum: Investing - Theory, News & General
Topic: Swedroe’s Bond Advice - no total bond index
Replies: 195
Views: 17397

Re: Swedroe’s Bond Advice - no total bond index

Just my two cents. With a 60/40 portfolio or a more aggressive asset allocation, total bond is a reasonable if not optimal investing strategy for your fixed income investments. If you have a 40/60 portfolio, or a portfolio that is invested heavily in fixed income, perhaps you may benefit by diversif...
by averagedude
Thu May 28, 2020 7:42 pm
Forum: Personal Investments
Topic: Pension: Lump Sum vs. Annuity
Replies: 20
Views: 1582

Re: Pension: Lump Sum vs. Annuity

Two things to consider when making this decision.
1. What is my likely life expectancy? Are you healthy and at what ages did my parents, siblings,uncles, and aunts pass away.
2. Is leaving a legacy to my heirs important to me.
by averagedude
Thu May 21, 2020 7:26 pm
Forum: Personal Investments
Topic: What will the effect be on VBTLX after $6T Fed & gov stimulus?
Replies: 8
Views: 1102

Re: What will the effect be on VBTLX after $6T Fed & gov stimulus?

No one really knows, but in my opinion don't expect your bond fund to experience 3% long term real returns like it did in the past.
by averagedude
Wed May 13, 2020 9:36 pm
Forum: Investing - Theory, News & General
Topic: Why is total market weighted index best?
Replies: 61
Views: 4568

Re: Why is total market weighted index best?

Really don't know which will outperform in the future, but market cap weighting follows the principals of the efficient market hypothesis. This is enough reason for me to choose it.
by averagedude
Wed May 13, 2020 9:21 pm
Forum: Personal Consumer Issues
Topic: How to look for a good Primary Care Physician (PCP), and no price transparency...
Replies: 35
Views: 2156

Re: How to look for a good Primary Care Physician (PCP), and no price transparency...

This is a very good question and I am looking forward to the answers. It seems to me that the "best doctors" have a large client base which means they have less time to spend with each customer. Me personally, I would rather have a doctor that has time to spend on my current concerns that may be les...
by averagedude
Wed May 13, 2020 8:56 pm
Forum: Personal Investments
Topic: Reducing Risk Due to High Stock Valuations
Replies: 6
Views: 481

Re: Reducing Risk Due to High Stock Valuations

I do agree that the stock market is overvalued and priced to perfection for the next 12 months. Do you really think that over the next 20 years that the bond market will produce better results than the stock market? The dividend yield on stocks is higher than long term treasuries right now, and if t...
by averagedude
Wed May 13, 2020 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Does Delaying Social Security Deliver an 8% Return?
Replies: 92
Views: 7658

Re: Does Delaying Social Security Deliver an 8% Return?

To me, delaying social security to get 8% increases isn't about maximizing payouts. It's about mitigating longevity risk. As a middle income US citizen, the payout at 70 gives me a floor of income that I can be content with if need be. I also love the fact that this income is inflation adjusted fore...
by averagedude
Mon May 11, 2020 7:22 pm
Forum: Investing - Theory, News & General
Topic: Reacting to low interest rates
Replies: 80
Views: 6377

Re: Reacting to low interest rates

Seems like you understand basic investing principals. Assuming your job is stable and your savings rate is in the double digits, option B seems reasonable to me.
by averagedude
Mon May 11, 2020 7:16 pm
Forum: Personal Investments
Topic: How to adjust for inflation in retirement planning?
Replies: 19
Views: 1145

Re: How to adjust for inflation in retirement planning?

I have been retirement planning since my mid 20's. I have always used real returns in today's dollars. In my opinion, this is the correct way to plan, and it is also easier to comprehend the numbers.
by averagedude
Mon May 11, 2020 6:01 pm
Forum: Investing - Theory, News & General
Topic: Ally lowers APR on savings from 1.5% to 1.25%
Replies: 79
Views: 9701

Re: Ally lowers APR on savings from 1.5% to 1.25%

Surely, we all knew this was coming soon.