Search found 622 matches

by bmb
Wed Oct 28, 2009 10:54 am
Forum: Personal Investments
Topic: Why not buy the highest yield CD offered?
Replies: 28
Views: 5055

Unless we choose individual stocks and bonds and vet them thoroughly, the very act of investing is an amoral activity. All of index equity and bond investors (and that includes me) implicitly support certain large international corporations and other institutions that bribe governments, employ captive labor, finance dictatorships and racist states, pollute the atmosphere, and otherwise kill people directly or indirectly. We also support tobacco companies that sell a product that kills many thousands annually and lies about it. We sell short, hoping corporations will crash and burn. Some of us even show our love by buying diamonds from companies that use slave labor. That's all fine according to all you ethicists. But buying a CD from a trou...
by bmb
Tue Oct 27, 2009 4:28 pm
Forum: Personal Consumer Issues
Topic: Good wines for < $10. Add yours here.
Replies: 52
Views: 11490

Although I don't drink wine every day, my vote goes to Spanish red wines, which can be quite good for $10 or so and I usually like better than similar "bargain" South American wines. For example, Tres Ochos Garnacha 2007, lots of flavor, not too much tannin, high alcohol, goes for $7-$10.
Also, I like many Washington State (non-Chardonnay) whites are good, cheap and reliable.
by bmb
Tue Oct 27, 2009 4:01 pm
Forum: Personal Consumer Issues
Topic: College Football Thread 2009
Replies: 331
Views: 45800

The docs doing these studies were not football players, so I suppose we should ignore their findings. They were probably engaged in nerdy activity, like studying medicine, while the football players were busy damaging their brains.
Any more rank-pulling from the brain-dead, er, I mean ex-football players?
by bmb
Tue Oct 27, 2009 3:57 pm
Forum: Investing - Theory, News & General
Topic: Can you afford to retire without social security?
Replies: 48
Views: 6812

SS will probably be there in 22 years in some form, but given actuarial reality it's hard to believe it will be as generous as at present.
The good news is that people will probably be living longer; the bad (to some) news is that they will probably have to work longer.
by bmb
Tue Oct 27, 2009 3:52 pm
Forum: Personal Consumer Issues
Topic: College Football Thread 2009
Replies: 331
Views: 45800

No loss, since you never cite any supporting facts for your disagreements.
by bmb
Tue Oct 27, 2009 3:47 pm
Forum: Investing - Theory, News & General
Topic: Can you afford to retire without social security?
Replies: 48
Views: 6812

Crapshoot?
Uh, when you and your dependents are dead, you really really don't need any money.
by bmb
Tue Oct 27, 2009 3:28 pm
Forum: Personal Consumer Issues
Topic: College Football Thread 2009
Replies: 331
Views: 45800

Reread the post for the full story. It supports everything I posted. Where are your facts Mr. Ad Hominem Lawyer?
by bmb
Tue Oct 27, 2009 3:10 pm
Forum: Personal Consumer Issues
Topic: College Football Thread 2009
Replies: 331
Views: 45800

Again, you absolutely don't know what you are talking about. Of course, the NFl is worse than college and college is worse than high school, ifmonly becasue of the length of the careers, but they all have similar indications of brain injury. This report by Malcom Gladwell supports this: http://www.newyorker.com/reporting/2009/10/19/091019fa_fact_gladwell/ A couple quotes: This about a college player in PRACTICE: He has an 80-g hit to the front of his head. About ten minutes later, he has a 98-g acceleration to the front of his head.” To put those numbers in perspective, Guskiewicz explained, if you drove your car into a wall at twenty-five miles per hour and you weren’t wearing your seat belt, the force of your head hitting the windshield w...
by bmb
Tue Oct 27, 2009 3:00 pm
Forum: Personal Consumer Issues
Topic: College Football Thread 2009
Replies: 331
Views: 45800

The replays I have seen on youtube seem to bear out the claim it was a bad call. From some angles, it looks like a good call, but the best angle shows no interference. Perhaps that is why the official closest to it called it incomplete, another called the interference. Dave Perry, retired Big ten head of officials, recently admitted as much. So what conference was that official from? (I don't know, just asking) It is no secret that officials appear to favor front-runners in their conference. This week, some SEC officials were suspended. Until recently when the program has faltered, favored Michigan routinely got the calls in close games in Ann Arbor. A step in the right direction would be to have a national pool of officials, rather than co...
by bmb
Tue Oct 27, 2009 2:29 pm
Forum: Personal Consumer Issues
Topic: College Football Thread 2009
Replies: 331
Views: 45800

In a recent study of 50 players, all had signs of possible premature dementia. The problem is not concussions per se, but the repeated blows to the head occurring even in practice - the equivalent of colliding with your windshield without a seat-belt in a 25 mph car accident thousands of times over a typical career. Watching games at any level, you will see that helmet-to-helmet collisions have become routine, are seldom flagged, and are praised as "great hits" by the moronic broadcasters. And there is little reason to believe that simply improving helmet padding will help.
There is no solution currently available. The only (no doubt unacceptable) answers are changing the game radically or artificially limiting career lengths.
by bmb
Tue Oct 27, 2009 2:19 pm
Forum: Personal Investments
Topic: Why not buy the highest yield CD offered?
Replies: 28
Views: 5055

Please! I really don't buy the idea that trying to maximize your yield among FDIC-insured banks is somehow a moral issue. Hey, buying a CD from them can be considered as lending a helping hand! In case of failure, some other bank will probably take over the bank's assets, including your CD, and the FDIC will lose almost nothing. ("Socializing" your losses my foot. This ethical advice from people who think nothing of investing in index funds with holdings in tobacco companies and other sleazy endeavors.) The risk of losing your money is nil, zero, zilch. The only risk is temporary loss of liquidity and the "call" risk, since either you get your money and accrued interest back prematurely or the new bank asks you to take o...
by bmb
Mon Oct 26, 2009 4:15 pm
Forum: Personal Consumer Issues
Topic: College Football Thread 2009
Replies: 331
Views: 45800

The only reason Pitt would be the "most dangerous team" is if they all have swine flu.
by bmb
Thu Oct 22, 2009 3:28 pm
Forum: Personal Consumer Issues
Topic: Washington D.C. Hotel Recommendations
Replies: 21
Views: 4359

tripadvisor.com and hotels.com usually has fairly accurate reviews and give you a good perspective on the hotel, especially if there are a large number of them for the property. Check it out.
by bmb
Thu Oct 22, 2009 3:21 pm
Forum: Personal Consumer Issues
Topic: Unemployment
Replies: 1
Views: 930

Well, given his "business strategy", you can see why he was fired as a "business strategy consultant".
by bmb
Thu Oct 22, 2009 3:18 pm
Forum: Personal Consumer Issues
Topic: What's with car rental prices?
Replies: 15
Views: 3142

I see Florida is tripling the rates for the holidays: Cheapest rate in Miami Christmas week per Orbitz is $726 for an off-airport "economy" car! Fort Myers $874 for the same car!
Better most other places in FL, but still most well over $400.

A little shopping is in order.
by bmb
Thu Oct 22, 2009 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Is buying a house a good idea for older people?
Replies: 25
Views: 4564

Lynn, it depends.
From the CALRTA website:
"In fact, income replacement ratios from the past six years have increased from as low as 58 percent for 1998 retirees’ with 30 years of service at age 60 to 69 percent replacement for 2004 retirees with the same age and service. A 2004 retiree with 35 years’ service retiring at age 63 would replace 90 percent of their income. The same 1998 retiree would replace just 67 percent of their income."
I bet many other states are just as generous since it's a way for the pols to garner political support from the teacher's unions, the cost is deferred so they don't have to pay right away, and in any case the taxpayers are clueless about it.
by bmb
Thu Oct 22, 2009 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Jack's 2008 performance
Replies: 5
Views: 1933

Sound like the 30%-40% range I remember him being quoted at. (Or a little higher than his "age in bonds".)
by bmb
Thu Oct 22, 2009 2:51 pm
Forum: Personal Investments
Topic: Charitable Remainder Trusts
Replies: 12
Views: 1957

No experience here, but waiting makes sense not only for the higher payout but similar to an immediate annuity, it reduces the risk of failure of the donee and the impact of inflation.
by bmb
Thu Oct 22, 2009 2:43 pm
Forum: Investing - Theory, News & General
Topic: Watch Frontline tonight
Replies: 38
Views: 7526

Alan's prescription for fraud reminds me of Uncle Milty Friedman's for pharmaceuticals: We don't need the FDA because companies making bad drugs would suffer in the marketplace. (You know, people might die from the drugs, but eventually the market in its wisdom would get around to discovering what was killing them and the company would suffer!)
by bmb
Thu Oct 22, 2009 2:34 pm
Forum: Personal Investments
Topic: Charitable Remainder Trusts
Replies: 12
Views: 1957

http://www.acga-web.org/whatisga.html
American Council on Gift Annuities
by bmb
Thu Oct 22, 2009 2:23 pm
Forum: Personal Investments
Topic: Charitable Remainder Trusts
Replies: 12
Views: 1957

I think it's called a Charitable Gift Annuity. Interesting quantitative presentation on the benefits of such:
https://www.glpresents.com/calc.jsp?WebID=6&P=5
by bmb
Thu Oct 22, 2009 2:11 pm
Forum: Personal Consumer Issues
Topic: New Macs
Replies: 24
Views: 3762

I have heard from some early adopters that Windows 7 runs better on Apple than their own OS.
by bmb
Thu Oct 22, 2009 2:01 pm
Forum: Personal Investments
Topic: about high yield bonds
Replies: 13
Views: 2073

I see nothing wrong with them as long as you treat them as part of your equity allocation. I personally avoid them for the sake of simplicity.
Diverting some of your equity investments to HY provides additional diversification, but I do not really have any stats that show how such tactics have historically affected portfolio volatility and return.
by bmb
Thu Oct 22, 2009 1:54 pm
Forum: Personal Investments
Topic: Charitable Remainder Trusts
Replies: 12
Views: 1957

Charitable Remainder Trusts

I am surprised there has been little discussion of these types of investments on this board. They provide income and substantial tax benefits to the living, and a contribution to a worthy cause at death. It appears to me that one potential pitfall is expenses.
Anybody here using them or have recommendations or opinions, pro or con, on the matter?
by bmb
Thu Oct 22, 2009 1:41 pm
Forum: Personal Investments
Topic: Does this portfolio make sense for a 78 year old widow?
Replies: 31
Views: 5471

Much better than the original IMO.
Consider junk bonds as a surrogate for domestic equities.
I don't know why she would put any in real estate, especially if she owns her home. Use that for equities instead.
The sum of equities, HY and RE puts her high risk exposure at 20%, not out-of-line for her age.
Why no TIPs? The biggest threat to the portfolio is sudden high inflation. Understand that since TIPs are inflation-protected, their maturity could be up to 20 years, to get a good real yield. (TIPs funds generally have a duration of 10 years.) In general, buy TIPs at auction for tax-protected assets, a fund for taxable.
Consider fixed annuities as well. She doesn't have to leave all her money to others.
by bmb
Thu Oct 22, 2009 1:26 pm
Forum: Personal Investments
Topic: Help with my 80 year old mothers retirement assets
Replies: 7
Views: 1799

My take: 56% is way too much in equities at her age. Anything over about 15% is questionable, even 0% would be OK. A $100K immediate annuity should pay almost $1K/month, not inflation-adjusted. They are a good alternative for many people over 70 or so. I don't know why you are negative on them - don't confuse them with variable annuities, which are usually a rip-off at any age. TIPS (10 to 20 years), an IT bond fund, and CDs (2-7 years) are also appropriate. TIPS would provide inflation protection and bonds/CDs additional safe income. Her property represents a source of emergency funds in case of assisted living needs (reverse mortgage for home care/sale for assisted living) , and represents additional inflation protection. Worst case is th...
by bmb
Wed Oct 21, 2009 3:12 pm
Forum: Personal Consumer Issues
Topic: Washington D.C. Hotel Recommendations
Replies: 21
Views: 4359

This site is helpful for formulating Priceline bids.
I would try for the 4* hotels downtown/WH.

http://www.betterbidding.com/index.php? ... washington
by bmb
Wed Oct 21, 2009 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Would you refinance mortgage to max out 401k?
Replies: 16
Views: 3316

No need to overcomplicate. It largely depends on (1) whether your employer is matching your contributions and (2) you need liquidity.
If you get no match and already have more than adequate liquidity, then ask yourself whether you could get a substantially better after-tax (federally) guaranteed return (from bonds or CDs) with similar maturity. (The fudge here is how you define "substantially". I'd guess at least .5%)
by bmb
Wed Oct 21, 2009 2:42 pm
Forum: Investing - Theory, News & General
Topic: muni bond funds in taxable - reinvest dividends?
Replies: 26
Views: 8525

For some of us, a bigger nightmare, tax or otherwise, is constantly using the MM funds to make new investments. Rebalancing need not be continual.
It will not be a tax nightmare if you keep your annual reports from the fund to compare with what your brokerage computes. It can easily be tracked on a very simple spreadsheet. All the reinvestments simply reduce the cost basis.
If the brokerage doesn't compute it, change brokerages - what are they charging you for, anyway?
by bmb
Wed Oct 21, 2009 2:35 pm
Forum: Investing - Theory, News & General
Topic: New Medicare Premiums Part B/Higher Incomes
Replies: 25
Views: 4058

I see the opinions, now some facts: Historically, the real reason that Medicare rates have not been tied to income is the fear that doing so would weaken the approval consensus. Today Medicare is more popular than ever, but it is also going broke, so the need for more money is more critical than garnering consensus. Medicare Advantage is seeing some price drops because the insurance companies want to keep it alive - it is a very profitable government-guaranteed business for them. Want to guess what happens when the current debate is over? Medicare charges are increasing while SS payments stay the same because health care has a much higher rate of inflation than most other services and commodities, and if you don't understand that, yes, you ...
by bmb
Wed Oct 21, 2009 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Getting Rid of Cable???
Replies: 179
Views: 31363

The proportion of junk to quality on TV is increasing rapidly, but the choices are also growing fast, so 1% quality yields a variety of good programming.
You just have to sift out the 99% junk.
I watch sports (this is junk to some and I understand that), good movies (without commercials), news, a few music concerts, and HBO. If you are interested in public affairs and politics, one can watch CSPAN to get it unfiltered or the Comedy Channel for the proper perspective. Network drama and comedy series are all junk. Unfortunately, almost the only high quality broadcast programming is on PBS, but aside from that you need cable for any quality. A DVR also helps a lot.
by bmb
Wed Oct 21, 2009 1:50 pm
Forum: Personal Consumer Issues
Topic: The big bad monster megabanks are at it again
Replies: 60
Views: 8518

Jesus chased the money lenders from the Temple and the Bible inveighs against usury.
Who do they think they are interfering with free markets?
by bmb
Wed Oct 21, 2009 1:48 pm
Forum: Personal Consumer Issues
Topic: What's with car rental prices?
Replies: 15
Views: 3142

Probably the time of year - holidays and all - is making it worse.
I agree that Priceline is a very good idea if you are absolutely sure you will not cancel, or have trip insurance. No real difference among car rental agencies.
by bmb
Wed Oct 21, 2009 1:35 pm
Forum: Personal Consumer Issues
Topic: New Macs
Replies: 24
Views: 3762

Brad, didn't mean anything political.
The point is intent, and the common image with many Apple fans of Apple and Steve Jobs as a kinder and gentler alternative to the "greedy" MS and Bill Gates.
Not saying Apple is not worth the big $ differential, especially with users who are willing and able to pay for additional ease of use and better security - to my mind at the expense of flexibility.
by bmb
Wed Oct 21, 2009 1:23 pm
Forum: Personal Consumer Issues
Topic: What's with car rental prices?
Replies: 15
Views: 3142

What's with car rental prices?

Is it me, or did the rates jump 100% since this summer?
by bmb
Wed Oct 21, 2009 10:28 am
Forum: Personal Consumer Issues
Topic: New Macs
Replies: 24
Views: 3762

Quality aside, what I never understood is that the elitists called Microsoft a bullying monopoly and consider Apple sort of a non-conformist democracy, yet MS only wanted to dominate some of the software market, while Apple would have had us buy all their proprietary hardware and software. And at a much higher price.
by bmb
Wed Oct 21, 2009 10:20 am
Forum: Personal Finance (Not Investing)
Topic: curious about using credit card to pay for a car
Replies: 17
Views: 3767

If the dealer agrees to accept a credit card, you have not obtained the lowest price possible.
by bmb
Wed Oct 21, 2009 10:08 am
Forum: Personal Consumer Issues
Topic: The big bad monster megabanks are at it again
Replies: 60
Views: 8518

I doubt many will do this because if they do, most people like me will:
Complain long and loud
Transfer to other cards
Cancel their credit cards and pay cash instead, despite all the inconvenience
Cancel any related accounts in those banks
Absolutely refuse to pay any fees appearing on my bill, no matter how trivial - so sue me
by bmb
Wed Oct 21, 2009 10:01 am
Forum: Personal Investments
Topic: Frontline: 10.20.09: The Warning and my portfolio
Replies: 61
Views: 11667

If you are very very nervous, the best choices are federally insured or guaranteed Treasury bonds, TIPS and CDs. The yields on all these, especially Treasuries, are now quite low. Yes, the government could some day collapse or default, but (tinfoil hatters to the contrary) the odds on it are extremely low and would probably occur only after some sort of domestic coup or unprecedented international calamity in which everything else has already failed.
Most historical models advise everyone to have at least 15% or so in equities, but if you fear a historical meltdown even that may be too much. I personally think at 20% nobody should lose sleep and you can get some worthwhile potential growth at modest risk.
by bmb
Tue Oct 20, 2009 8:33 pm
Forum: Personal Investments
Topic: If you were 25 again...
Replies: 36
Views: 5708

Chase more women and worry about money later.
by bmb
Tue Oct 20, 2009 8:30 pm
Forum: Investing - Theory, News & General
Topic: Brazil to levy 2% investment tax
Replies: 25
Views: 4896

[off-topic comments deleted by admin alex]
by bmb
Tue Oct 20, 2009 8:24 pm
Forum: Investing - Theory, News & General
Topic: Fact Check - Even The WSJ Perpetuates Investing Myths
Replies: 33
Views: 5640

"Even"?
The WSJ news reporting is pretty good. But when it comes to interpretation, it is a mouthpiece for overpaid execs in the business community in general and on Wall Street in particular.
So why does Roth think they are interested in providing to us peasants good advice in general and profitable investment advice in particular?
by bmb
Tue Oct 20, 2009 8:18 pm
Forum: Investing - Theory, News & General
Topic: Maudlin says we will be Japan...
Replies: 27
Views: 5423

He thinks we're going to bomb Pearl Harbor?
by bmb
Mon Oct 19, 2009 4:40 pm
Forum: Personal Consumer Issues
Topic: Of Vitamins, labels, and verification
Replies: 77
Views: 9575

Getting the vitamins "naturally", that is the way we and our ancestors got it, seems to be the most evolutionarily sound approach. For example, with Vitamin D. per wikipedia: "(In contrast to vitamin D supplements), exposure to sunlight for extended periods of time does not normally cause vitamin D toxicity. This is because within about 20 minutes of ultraviolet exposure in light skinned individuals (3–6 times longer for pigmented skin) the concentration of vitamin D precursors produced in the skin reach an equilibrium, and any further vitamin D that is produced is degraded." So your body "knows" how much you can take, and takes steps to reduce it. On the other hand, if you don't get enough sunlight or have spe...
by bmb
Mon Oct 19, 2009 4:23 pm
Forum: Investing - Theory, News & General
Topic: Why Investors Should Bet Against the Dollar
Replies: 54
Views: 9528

I hate the dollar, too.
I am burning all my real ones in anticipation of hyperinflation, devaluation, death panels, terrorism, socialism, China.
It's the end of the world but my tin-foil hat will protect me!
by bmb
Fri Oct 16, 2009 7:08 pm
Forum: Personal Consumer Issues
Topic: Traveling to Europe in May, 2010--buy Euros now?
Replies: 28
Views: 5130

What if you have to cancel the trip? What if the dollar rallies?
Last I heard (this summer), Capital One had an ATM card and a credit card with no fees.
The ATM card works well in most Europe and is all you should need, and their FDIC-insured MM from which you can draw with the card usually gives better than average yields.
by bmb
Fri Oct 16, 2009 7:05 pm
Forum: Personal Consumer Issues
Topic: Move to Brazil?
Replies: 22
Views: 3864

Rio? It is the murder capital of the world. A third of it is literally run by violent drug gangs residing in favela slums that ring the city. About 100 people a day are killed in Rio, half of them drug-related - that's about 50 times the murder rate of NYC. The cops have their own vigilante gangs: Annually, more people are killed by cops in Rio than in the entire US. You can be kidnapped on the highway from the airport.
by bmb
Fri Oct 16, 2009 6:57 pm
Forum: Personal Investments
Topic: Cash Value Life Insurance for my 6-month-old?
Replies: 29
Views: 5686

Get a new agent.
by bmb
Fri Oct 16, 2009 6:55 pm
Forum: Personal Investments
Topic: What allocation to hedge US hyperinflation risk?
Replies: 12
Views: 3626

Do what all the other hyperinflation/default pessimists do: Buy a tinfoil hat. It will send get a signal when hyperinflation is imminent.
by bmb
Thu Oct 15, 2009 2:27 pm
Forum: Personal Investments
Topic: I Bonds
Replies: 43
Views: 8810

Core inflation up about 1.5%. Top bank MMs at less than 2%.
So 0% Ibonds maybe not so great (even if not terrible), except in comparison with 5 year TIPS or mutual fund MMs.
OK for cash.