Search found 1238 matches

by JackoC
Tue May 19, 2020 10:29 am
Forum: Investing - Theory, News & General
Topic: Social Security is an asset....yet again
Replies: 129
Views: 5689

Re: Social Security is an asset....yet again

Since this is a financial forum, we should use a definition for asset from finance. Here is a definition for assets in terms of accounting from the IFRS Framework: An asset is a resource controlled by the enterprise as a result of past events and from which future economic benefits are expected to ...
by JackoC
Tue May 19, 2020 10:28 am
Forum: Investing - Theory, News & General
Topic: Social Security is an asset....yet again
Replies: 129
Views: 5689

Re: Social Security is an asset....yet again

These are thoughtful comments, even though I completely disagree with your POV. Treating SS as something with great -utility- is really the point, and I think it's spot on to say that trouble starts when you conflate SS with something "bond-like". However..... SS isn't just illiquid. It's frozen so...
by JackoC
Tue May 19, 2020 10:19 am
Forum: Investing - Theory, News & General
Topic: Social Security is an asset....yet again
Replies: 129
Views: 5689

Re: Social Security is an asset....yet again

Since this is a financial forum, we should use a definition for asset from finance. Here is a definition for assets in terms of accounting from the IFRS Framework: An asset is a resource controlled by the enterprise as a result of past events and from which future economic benefits are expected to ...
by JackoC
Tue May 19, 2020 10:17 am
Forum: Investing - Theory, News & General
Topic: Social Security is an asset....yet again
Replies: 129
Views: 5689

Re: Social Security is an asset....yet again

These are thoughtful comments, even though I completely disagree with your POV. Treating SS as something with great -utility- is really the point, and I think it's spot on to say that trouble starts when you conflate SS with something "bond-like". However..... SS isn't just illiquid. It's frozen so...
by JackoC
Tue May 19, 2020 10:06 am
Forum: Investing - Theory, News & General
Topic: Social Security is an asset....yet again
Replies: 129
Views: 5689

Re: Social Security is an asset....yet again

Here are a couple articles about financial assets: https://www.investopedia.com/terms/f/financialasset.asp https://en.wikipedia.org/wiki/Financial_asset A financial asset is a liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank d...
by JackoC
Tue May 19, 2020 10:02 am
Forum: Investing - Theory, News & General
Topic: Social Security is an asset....yet again
Replies: 129
Views: 5689

Re: Social Security is an asset....yet again

So if someone buys a SPIA with part of their portfolio, is the annuity an asset or not? It’s an asset in the general sense of the word, as opposed to a liability, but one that has an unknown value because you don’t know how long you will live. It could have a negative value if you don’t very long. ...
by JackoC
Tue May 19, 2020 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Discarding old tax returns
Replies: 62
Views: 5477

Re: Discarding old tax returns

I keep the returns (and all computer form worksheets) in .pdf form from Turbotax, many years already and I see no reason I'd ever delete those. Some day maybe Adobe Acrobat and computers like now's will be completely unavailable but I don't see that as a serious concern about returns. I dump the env...
by JackoC
Tue May 19, 2020 9:20 am
Forum: Investing - Theory, News & General
Topic: Social Security is an asset....yet again
Replies: 129
Views: 5689

Re: Social Security is an asset....yet again

So if someone buys a SPIA with part of their portfolio, is the annuity an asset or not? It’s an asset in the general sense of the word, as opposed to a liability, but one that has an unknown value because you don’t know how long you will live. It could have a negative value if you don’t very long. ...
by JackoC
Tue May 19, 2020 9:16 am
Forum: Investing - Theory, News & General
Topic: Social Security is an asset....yet again
Replies: 129
Views: 5689

Re: Social Security is an asset....yet again

1. The author has one glaring error in the article (which he is correcting), stating "I’m also not assigning any value to the favorable tax treatment that Social Security retirement benefits get. They’re exempt from state and local income taxes," Which is just wrong; SS is taxed in 12 states, inclu...
by JackoC
Tue May 19, 2020 8:52 am
Forum: Investing - Theory, News & General
Topic: Wall Street says stocks are very overvalued
Replies: 45
Views: 3862

Re: Wall Street says stocks are very overvalued

The problem is that there is no objective metric to determine when stocks are overvalued. That said, when a valuation metric like CAPE is up around 90, like Japanese stocks were at their peak, it seems very safe to call that grossly overvalued. But the CAPE for U.S. isn't even remotely close to tha...
by JackoC
Wed May 13, 2020 10:14 am
Forum: Investing - Theory, News & General
Topic: Dividends and Earnings during Recent Bear Markets
Replies: 45
Views: 2986

Re: Dividends and Earnings during Recent Bear Markets

Like any other market indicator, those are the 2021 future dividend levels investors are willing to put real money on. Who would be the idiots transacting the futures for 2021 at steep discounts to recent dividends if that was an obviously wrong estimate? Seems to me it's something to at least cons...
by JackoC
Wed May 13, 2020 10:03 am
Forum: Personal Finance (Not Investing)
Topic: $2 million dollar house pre requisites
Replies: 109
Views: 9740

Re: $2 million dollar house pre requisites

But your scenario 1 does assume non recourse whether you were thinking of it or not. You only have 13% in real estate with 1.5mil house, 2 mil non house assets and 1.2 mil mortgage if the mortgage is non recourse. In that case your risk allocation to your house is (1.5-1.2)/((1.5-1.2)+2)=13%, right...
by JackoC
Wed May 13, 2020 9:28 am
Forum: Investing - Theory, News & General
Topic: Anyone considering Commodity futures?
Replies: 16
Views: 690

Re: Anyone considering Commodity futures?

Unlike stock market, futures market is a zero-sum game. For every winner, there's a loser. That's not really relevant. As you must know, there's also a big stock index futures market. There's a short for every long and zero sum game between them, but a person who had the cash to buy ~500 shares of ...
by JackoC
Wed May 13, 2020 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Should you include home equity in Net Worth?
Replies: 160
Views: 7598

Re: Should you include home equity in Net Worth?

And, there is a reason those mailers ask, "Do you have over $500,000 or $1,000,000 in investable assets?" As a qualified or accredited investor, my home equity was NOT allowed in the calculations. There's a reason for that. The reason in case of regulations making them focus on 'investable' assets ...
by JackoC
Wed May 13, 2020 8:03 am
Forum: Personal Consumer Issues
Topic: Should I purchase my end-of-lease Audi A4?
Replies: 58
Views: 3400

Re: Should I purchase my end-of-lease Audi A4?

1. As a general rule, people who avoid buying GM and Ford products because of reliability concerns have no business owning European cars. Consumer Reports shows that European cars aren't more reliable than American cars. 2. To add insult to injury, maintenance and repairs on European cars are FAR m...
by JackoC
Wed May 13, 2020 7:21 am
Forum: Personal Finance (Not Investing)
Topic: $2 million dollar house pre requisites
Replies: 109
Views: 9740

Re: $2 million dollar house pre requisites

But your scenario 1 does assume non recourse whether you were thinking of it or not. You only have 13% in real estate with 1.5mil house, 2 mil non house assets and 1.2 mil mortgage if the mortgage is non recourse. In that case your risk allocation to your house is (1.5-1.2)/((1.5-1.2)+2)=13%, right...
by JackoC
Wed May 13, 2020 6:56 am
Forum: Investing - Theory, News & General
Topic: Dividends and Earnings during Recent Bear Markets
Replies: 45
Views: 2986

Re: Dividends and Earnings during Recent Bear Markets

Like any other market indicator, those are the 2021 future dividend levels investors are willing to put real money on. Who would be the idiots transacting the futures for 2021 at steep discounts to recent dividends if that was an obviously wrong estimate? Seems to me it's something to at least cons...
by JackoC
Tue May 12, 2020 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: $2 million dollar house pre requisites
Replies: 109
Views: 9740

Re: $2 million dollar house pre requisites

And other people have one heck of a comfort level in sinking the majority of their net worth into a single non-diversified illiquid hard asset. No thanks. You've probably answered this question before, but isn't the majority of your net worth sunk into the house whether or not you pay off the mortg...
by JackoC
Mon May 11, 2020 10:49 am
Forum: Personal Consumer Issues
Topic: Should I purchase my end-of-lease Audi A4?
Replies: 58
Views: 3400

Re: Should I purchase my end-of-lease Audi A4?

Thank you Adam and Golden. Out of curiosity, what year Audi’s did you have? Mine was 2008, which was a long time ago, but the memories of taking the car into the dealer are fresh in my mind. I really loved many aspects of the car itself, but it was so unreliable and very expensive to maintain. Mayb...
by JackoC
Mon May 11, 2020 10:17 am
Forum: Personal Finance (Not Investing)
Topic: $2 million dollar house pre requisites
Replies: 109
Views: 9740

Re: $2 million dollar house pre requisites

And other people have one heck of a comfort level in sinking the majority of their net worth into a single non-diversified illiquid hard asset. No thanks. You've probably answered this question before, but isn't the majority of your net worth sunk into the house whether or not you pay off the mortg...
by JackoC
Sun May 10, 2020 11:06 am
Forum: Personal Finance (Not Investing)
Topic: $2 million dollar house pre requisites
Replies: 109
Views: 9740

Re: $2 million dollar house pre requisites

If someone wanted to buy a $2 million dollar house in a HCOLA A few months ago you were asking about buying a $1.5 million house. https://www.bogleheads.org/forum/viewtopic.php?f=2&t=297035 jus Did you happen to find one for $2 million that you're particularly interested in? 8-) The previous thread...
by JackoC
Sun May 10, 2020 9:57 am
Forum: Investing - Theory, News & General
Topic: Why are the yields on brokered CDs so much less than those available directly
Replies: 14
Views: 1331

Re: Why are the yields on brokered CDs so much less than those available directly

I'd argue that it's a liquidity premium. You can get a brokered CD at any brokerage, but you have to register at the bank or credit union and make a transfer to get a direct CD. It's a little bit more work, so the yield has to be higher to compensate. I look at it the other way. A brokered CD trans...
by JackoC
Sat May 09, 2020 5:55 pm
Forum: Personal Consumer Issues
Topic: COVID-19 has revealed the stark deficiencies in long-term care facilities regardless of ratings.
Replies: 80
Views: 5322

Re: COVID-19 has revealed the stark deficiencies in long-term care facilities regardless of ratings.

If you need the care, you either go to a SNF or you bring the SNF to your home. The second costs much more than the first. People in this thread have said "Don't go to a SNF under any circumstances" without any discussion of the alternative.es. You probably will too. I think people who say "never a...
by JackoC
Sat May 09, 2020 5:23 pm
Forum: Personal Consumer Issues
Topic: Audi A8 or keep looking?
Replies: 30
Views: 2355

Re: Audi A8 or keep looking?

the A8 is not that sporty more of a luxo barge. I would look at the Lexus LS460 of a similar year. they are much more reliable and just as luxurious. BMW 7 and Audi 8 try I think to combine 'sport' with luxury in a big car. Lexus LS and Mercedes S go more for straight luxury with less pretense at s...
by JackoC
Sat May 09, 2020 10:49 am
Forum: Investing - Theory, News & General
Topic: Why are the yields on brokered CDs so much less than those available directly
Replies: 14
Views: 1331

Re: Why are the yields on brokered CDs so much less than those available directly

But some people knowledgeable about CD's on this forum have said they've seen times where best brokered rates are higher than best direct. I think this happened when rates were going up. I became aware of the existence of the brokered CD market, when I was rolling over a retirement account from my ...
by JackoC
Sat May 09, 2020 10:41 am
Forum: Investing - Theory, News & General
Topic: Why are the yields on brokered CDs so much less than those available directly
Replies: 14
Views: 1331

Re: Why are the yields on brokered CDs so much less than those available directly

My guess is that because there are so many people like yourself who prefer to keep their money in as few places as possible, there is not as much incentive to offer the most competitive rates on brokerage CD's. They can sell plenty of those CD's at substandard yields. Harder to do this with direct ...
by JackoC
Sat May 09, 2020 9:42 am
Forum: Personal Consumer Issues
Topic: Does anyone have faucets or appliances hooked up that they never run?
Replies: 7
Views: 887

Re: Does anyone have faucets or appliances hooked up that they never run?

No appliances, but a bathroom in the laundry room extension (to 1901 stone row house) on the ground floor, with only electric resistance heater. At one point the pipes, which ran under the floor, froze and burst when we forgot to turn on the heater. I redid the piping to run along the wall and insta...
by JackoC
Sat May 09, 2020 9:18 am
Forum: Investing - Theory, News & General
Topic: Why are the yields on brokered CDs so much less than those available directly
Replies: 14
Views: 1331

Re: Why are the yields on brokered CDs so much less than those available directly

The title says it all. Would like to keep the number of open accounts as small as possible. Just curious why the yields on brokered CDs are so much lower than those available directly from banks and credit unions. I think you answered the question with that statement, at least as to why best broker...
by JackoC
Fri May 08, 2020 3:00 pm
Forum: Personal Consumer Issues
Topic: Audi A8 or keep looking?
Replies: 30
Views: 2355

Re: Audi A8 or keep looking?

There is a 2013 Audi A8L 4.0 with 70,000 miles for sale near us. I think I can get it for just a little under $20,000 plus my trade-in would get me to around $14000 all in. This seems like a steal for such a large luxury car that has a lot of get up and go which would be fun for me. The only downsi...
by JackoC
Fri May 08, 2020 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Easy $200 from Penfed?
Replies: 52
Views: 5399

Re: Easy $200 from Penfed?

I just don't like the low interest rates. I suppose you could invest the minimum and the shortest allowable term. Otherwise, you'll give some or all back. $200 / $1,200 = 16.7% return in 4 months. That is 50% return annualized. Not sure how the interest rate even matters at that point; although it ...
by JackoC
Fri May 08, 2020 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Easy $200 from Penfed?
Replies: 52
Views: 5399

Re: Easy $200 from Penfed?

I just don't like the low interest rates. I suppose you could invest the minimum and the shortest allowable term. Otherwise, you'll give some or all back. $200 / $1,200 = 16.7% return in 4 months. That is 50% return annualized. Not sure how the interest rate even matters at that point; although it ...
by JackoC
Fri May 08, 2020 9:40 am
Forum: Investing - Theory, News & General
Topic: My theory about FIRE
Replies: 419
Views: 30545

Re: My theory about FIRE

I would like to see the data on skyrocketing salaries. There's a misconception all STEM majors get FAANG level compensation. According to this, the starting salary for engineering majors is about $70k, depending on the major. That's not terrible, but it's still peanuts compared to what a first year...
by JackoC
Thu May 07, 2020 10:54 pm
Forum: Personal Consumer Issues
Topic: Cross Country Drive-Best route? Safest way to do it?
Replies: 40
Views: 3780

Re: Cross Country Drive-Best route? Safest way to do it?

If I were moving across the country today, I would fly and have my car shipped. Much less opportunity to get exposed in a five hour flight than on a weeklong drive. Not only that, but you eliminate the most likely source of risk - a car accident. Right now COVID-19 is blowing everything else out of...
by JackoC
Thu May 07, 2020 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Sibling's Undergrad or Refinance Parent's Mortgage
Replies: 52
Views: 3150

Re: Pay Sibling's Undergrad or Refinance Parent's Mortgage

Community college is a great idea for many majors, but in almost all cases it is far less than optimal for STEM majors. ... Not to mention if the STEM student is at all bright, they are likely to be massively bored and under challenged in a community college. Yeah if the brother is genuinely bright...
by JackoC
Thu May 07, 2020 5:46 pm
Forum: Personal Consumer Issues
Topic: Cross Country Drive-Best route? Safest way to do it?
Replies: 40
Views: 3780

Re: Cross Country Drive-Best route? Safest way to do it?

NP all closed for business. Most business too. Best way now is take the fastest route to get to your destination. Bring a lot ready to eat food in case cant find restrurant. But might be much less so in June or July than now (let's stay away from should or shouldn't be). I'm planning a road trip fo...
by JackoC
Thu May 07, 2020 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Sibling's Undergrad or Refinance Parent's Mortgage
Replies: 52
Views: 3150

Re: Pay Sibling's Undergrad or Refinance Parent's Mortgage

Community college is a great idea for many majors, but in almost all cases it is far less than optimal for STEM majors. ... Not to mention if the STEM student is at all bright, they are likely to be massively bored and under challenged in a community college. Yeah if the brother is genuinely bright...
by JackoC
Thu May 07, 2020 4:46 pm
Forum: Investing - Theory, News & General
Topic: My theory about FIRE
Replies: 419
Views: 30545

Re: My theory about FIRE

You completely misunderstand why I-bankers and teachers, at the k-12 level, get paid vastly different wages. It's because teachers are government workers and their salaries are set by elected officials. If NYC's city council or the state legislature in Albany set the pay for I-bankers, I guarantee ...
by JackoC
Thu May 07, 2020 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: State Farm Safe Driving App
Replies: 45
Views: 3120

Re: State Farm Safe Driving App

Maybe there's something to that, but the most dangerous driving, especially for big payouts from really bad accidents rather than city fender benders, is smaller rural roads. I don't see how the device would distinguish those from interstates, by how often you completely stop at least. I tend to th...
by JackoC
Sat May 02, 2020 8:23 am
Forum: Investing - Theory, News & General
Topic: Do you keep moving your cash around chasing yield?
Replies: 56
Views: 5317

Re: Do you keep moving your cash around chasing yield?

I'm retired, living off my investments until I finally start Social Security at 70 in a few years. I keep on average about 2%, one year's expenses, in cash (mostly my money market settlement fund) for convenience, so I don't have to sell shares of stock or bond funds too often. It keeps my taxes si...
by JackoC
Sat May 02, 2020 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Podcast - Wade Pfau: The 4% Rule Is No Longer Safe
Replies: 162
Views: 10093

Re: Podcast - Wade Pfau: The 4% Rule Is No Longer Safe

i actually enjoyed this podcast and I liked (didn't always agree) his perspective on financial planning. The hosts of this podcast has had multiple financial planners as guests, and the questions seem to be the same, with the guests having different answers. I do realize that bond yields are low no...
by JackoC
Fri May 01, 2020 10:25 pm
Forum: Investing - Theory, News & General
Topic: Do you keep moving your cash around chasing yield?
Replies: 56
Views: 5317

Re: Do you keep moving your cash around chasing yield?

No, but I do move it around chasing bank bonuses. That pays more than the disinterest rate. I do both but sometimes it partly overlaps if it's a savings account bonus requiring a fairly large deposit. As opposed to opening lots of new checking accounts with small balances. As another response menti...
by JackoC
Fri May 01, 2020 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Podcast - Wade Pfau: The 4% Rule Is No Longer Safe
Replies: 162
Views: 10093

Re: Podcast - Wade Pfau: The 4% Rule Is No Longer Safe

i actually enjoyed this podcast and I liked (didn't always agree) his perspective on financial planning. The hosts of this podcast has had multiple financial planners as guests, and the questions seem to be the same, with the guests having different answers. I do realize that bond yields are low no...
by JackoC
Fri May 01, 2020 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: State Farm Safe Driving App
Replies: 45
Views: 3120

Re: State Farm Safe Driving App

We used the Progressive equivalent once and it was too strict on stopping, no way to drive maximally safely in our area and not get dinged fairly regularly for 'too rapid' stops at the innumerable traffic lights. You'd either have to try to make it through yellow lights every time and occasionally ...
by JackoC
Thu Apr 30, 2020 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Podcast - Wade Pfau: The 4% Rule Is No Longer Safe
Replies: 162
Views: 10093

Re: Podcast - Wade Pfau: The 4% Rule Is No Longer Safe

He thinks that a “3% rule” is more realistic than a 4% rule in today’s environment. This seems a little silly when a TIPS ladder should get you 3.3%. You can’t get 3.3% if you set up a ladder when TIPS yields are negative, like they are now. Even beside that, you buy stocks to get upside, for which...
by JackoC
Thu Apr 30, 2020 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Podcast - Wade Pfau: The 4% Rule Is No Longer Safe
Replies: 162
Views: 10093

Re: Podcast - Wade Pfau: The 4% Rule Is No Longer Safe

I hate this kind of statement because it violates the whole premise of what safe withdrawal rules were supposed to be and were said to be. They are not supposed to be based on the current situation. They are supposed to be based on time periods that include the full credible range of situations, of...
by JackoC
Thu Apr 30, 2020 10:09 am
Forum: Personal Finance (Not Investing)
Topic: State Farm Safe Driving App
Replies: 45
Views: 3120

Re: State Farm Safe Driving App

I use it. It incorporates the low mileage discount as well so if you already receive that your bill won't be as low as you think. You have to put a small white box on the windscreen and it connects via bluetooth to your phone. The box is small (2.5" ish square) but not that discreet. The progressiv...
by JackoC
Thu Apr 30, 2020 9:45 am
Forum: Personal Finance (Not Investing)
Topic: [One stop shop with BoA / Merrill Edge]
Replies: 34
Views: 1983

Re: [One stop shop with BoA / Merrill Edge]

I have used BofA/ML for about two years and have been pleased overall. But I would not consider it a one stop shop. The main issues, discussed above, are the poor cash management options and the cost structure is higher than competitors (solo 401Ks are an example). I view BofA/ME as a method to max...
by JackoC
Thu Apr 30, 2020 9:08 am
Forum: Investing - Theory, News & General
Topic: ??? Thomas Stanley - Stop Acting Rich book
Replies: 121
Views: 13270

Re: ??? @Thomas Stanley - Stop Acting Rich book

On Page 54 of Thomas Stanley's Stop Acting Rich book he writes It takes only 54 high-income generating farmers to produce 100 who are millionaires. But it take 383 high-income generating physicians to produce just 100 millionaires. Where do the remaining 46 farmers come from to produce 100 milliona...
by JackoC
Wed Apr 29, 2020 5:43 pm
Forum: Personal Consumer Issues
Topic: Tire Mileage Warranty - what's it worth?
Replies: 24
Views: 1474

Re: Tire Mileage Warranty - what's it worth?

I do not consider tire warranties when purchasing tires. As others have noted, I assume its impossible to get them honored. And even if they do honor them, I am unwilling to do all the record keeping to get them honored. I consider them, but don't take them literally. For example I just ordered a s...
by JackoC
Wed Apr 29, 2020 5:18 pm
Forum: Personal Consumer Issues
Topic: Toyota vs. Kia Quality & Longevity
Replies: 82
Views: 5664

Re: Toyota vs. Kia Quality & Longevity

The resale value tells you everything. Just go with that, forget all the noise. Resale value tells you what used car customers tend to think. As shown on this thread lot of people in the US market still *think* Toyota is way ahead of Kia on reliability/durability. But that's pretty questionable. Mi...