Search found 685 matches

by JonnyB
Mon Jul 20, 2020 8:20 pm
Forum: Investing - Theory, News & General
Topic: From lender's perspective, why would they lock in such low long-term debt?
Replies: 61
Views: 5990

Re: From lender's perspective, why would they lock in such low long-term debt?

Substantially all residential mortgages in the US are purchased by one of a number of governmental or quasi-governmental organizations, secutitized, and sold to investors as mortgage backed bonds. Only about half of mortgages go through GSEs. The rest are packaged up in private mortgage securities ...
by JonnyB
Mon Jul 20, 2020 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited owner of S Corp
Replies: 3
Views: 421

Re: Inherited owner of S Corp

Thanks for the response. All debts have been satisfied, so no issue there. I don't see these disbursements as taxable income to the corp. I'm also a bit concerned from a liability standpoint with all of the cash in the account. We're still adequately insured, but still it worries me. Also, I want t...
by JonnyB
Mon Jul 20, 2020 6:19 pm
Forum: Investing - Theory, News & General
Topic: From lender's perspective, why would they lock in such low long-term debt?
Replies: 61
Views: 5990

Re: From lender's perspective, why would they lock in such low long-term debt?

From a curiosity standpoint: do the originators in Canada securitize and sell directly to the bond market or are the private clearing houses that function similar to the US GSEs? Canada has a small amount of government securitized bonds from a trust something like the FHA, about 15% of mortgages. T...
by JonnyB
Mon Jul 20, 2020 5:16 pm
Forum: Investing - Theory, News & General
Topic: 4% rule - confidence poll
Replies: 457
Views: 26695

Re: 4% rule - confidence poll

I believe I am right. That Bengen & Trinity both allow for “re-retirement” after positive years. This discussion comes up every so often and has been exhaustively been discussed, somewhere. The bottom line is that the portfolio doesn’t know you retired before. Think on that. Keep in mind that the s...
by JonnyB
Mon Jul 20, 2020 9:26 am
Forum: Investing - Theory, News & General
Topic: From lender's perspective, why would they lock in such low long-term debt?
Replies: 61
Views: 5990

Re: From lender's perspective, why would they lock in such low long-term debt?

You answered your own question right here. Most lenders don't keep these loans in their balance sheet, they sell them to a buyer with basically unlimited pockets and a mandate to support the housing market (the government, through various means including Fannie, Freddie, and Ginnie Mac) Only about ...
by JonnyB
Sun Jul 19, 2020 5:22 pm
Forum: Investing - Theory, News & General
Topic: From lender's perspective, why would they lock in such low long-term debt?
Replies: 61
Views: 5990

Re: From lender's perspective, why would they lock in such low long-term debt?

we should all offer our appreciation to this humble instrument when we mail off our monthly mortgage payments. Should we, though, since this subsidy causes house prices to inflate? I tend to think that without this government support, my house would cost $300k instead of 400k because everyone would...
by JonnyB
Sun Jul 19, 2020 4:58 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey - 12% per year from mutual funds?
Replies: 118
Views: 5069

Re: Dave Ramsey - 12% per year from mutual funds?

Treat Dave Ramsey as an entertainer, not a financial authority. Then things make a lot more sense. This is probably the most important thing to remember. Ramsey screens hundreds of calls to get the one that seems to demonstrate that the "average" person is dumb and Ramsey is smart. The addictive en...
by JonnyB
Sun Jul 19, 2020 2:54 pm
Forum: Investing - Theory, News & General
Topic: From lender's perspective, why would they lock in such low long-term debt?
Replies: 61
Views: 5990

Re: From lender's perspective, why would they lock in such low long-term debt?

Substantially all residential mortgages in the US are purchased by one of a number of governmental or quasi-governmental organizations, secutitized, and sold to investors as mortgage backed bonds. The “lender” is effectively everyone buying these types of bonds, including pension funds, endowments,...
by JonnyB
Sun Jul 19, 2020 11:42 am
Forum: Investing - Theory, News & General
Topic: From lender's perspective, why would they lock in such low long-term debt?
Replies: 61
Views: 5990

Re: From lender's perspective, why would they lock in such low long-term debt?

If you want to know why lender rates are so low just look in the mirror. If you own the Vanguard Total Bond fund, for example, you are one of those lenders.

The simple answer is that there is a savings glut and nobody wants your stinkin' money. Why would they pay you for it?
by JonnyB
Sun Jul 19, 2020 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Unexpectedly taking on parents' debt: pay it all or?
Replies: 33
Views: 4128

Re: Unexpectedly taking on parents' debt: pay it all or?

It's not a good idea to refi a 40k mortgage. Mortgages have closing costs, and no bank really wants to loan 40k for 15/30 years so they'll give you bad quotes to make you go away, or will just say no. How about refi with just enough cash out to make it interesting to the banks, then turn around and...
by JonnyB
Sat Jul 18, 2020 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Protective Claim for Tax Refund Regarding ACA SC Review
Replies: 21
Views: 1116

Re: Protective Claim for Tax Refund Regarding ACA SC Review

The fourth I had not thought of but if you are a fiduciary and do not do this then you are likely not looking out after the person's best interest. What about 2014 and 2015? The lawsuit has been around for over two years. What was their fiduciary duty then? They missed those deadlines without a pee...
by JonnyB
Sat Jul 18, 2020 1:09 pm
Forum: Investing - Theory, News & General
Topic: Forbes: The Fed Is Going To Buy Stocks
Replies: 11
Views: 1329

Re: Forbes: The Fed Is Going To Buy Stocks

I think you shouldn't link to a random article on the internet unless you know anything about the authors track record. Thanks! I googled the author before posting, and he is a professor at UC Berkeley Haas school. Also, a bit harsh to say its random when it's not a subjective blog, but is on relat...
by JonnyB
Sat Jul 18, 2020 12:50 pm
Forum: Personal Investments
Topic: When to sell individual stock after run up?
Replies: 51
Views: 3786

Re: When to sell individual stock after run up?

The standard answer is "If you had the cash value equivalent in your pocket today, would you buy the stock at its current price tomorrow?" If not, you should sell. Taxes should not bias your decision. You can think of it as having the after-tax cash equivalent in your pocket if that makes it simpler.
by JonnyB
Sat Jul 18, 2020 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Protective Claim for Tax Refund Regarding ACA SC Review
Replies: 21
Views: 1116

Re: Protective Claim for Tax Refund Regarding ACA SC Review

Again, my deal holds for everyone here when we get to 2017 (if it is not settled). I will pay your postage and you sign the rights over to me for all the money should it settle in your favor. Well, that's pretty weak. Let's find out your real beliefs. You send me $100 up front and I'll sign over my...
by JonnyB
Sat Jul 18, 2020 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Protective Claim for Tax Refund Regarding ACA SC Review
Replies: 21
Views: 1116

Re: Protective Claim for Tax Refund Regarding ACA SC Review

Just an FYI as you are saying it is an "Internet Meme". Our company auditors who are one of the big accounting firms brought this to our attention for any employee who may be in this situation. Our tax department then alerted everyone to it. That's hilarious, if true. Even the big accounting firms ...
by JonnyB
Fri Jul 17, 2020 9:59 pm
Forum: Personal Consumer Issues
Topic: Stainless steel appliance cleaner - need recommendation
Replies: 42
Views: 2033

Re: Stainless steel appliance cleaner - need recommendation

Kind of makes you wonder why stainless steel appliances are so popular. They are high maintenance and start looking bad again five minutes after you polish them up. c.f: black cars. Good point. But not too many options out there except the plain white and some black ones. Or the high end models tha...
by JonnyB
Fri Jul 17, 2020 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Protective Claim for Tax Refund Regarding ACA SC Review
Replies: 21
Views: 1116

Re: Protective Claim for Tax Refund Regarding ACA SC Review

The lawsuit claims that the ACA became invalid in 2019 because the insurance mandate was removed. There is no claim that the law was invalid before then, and in fact the Supreme Court found that the law was constitutional. I'm trying to imagine the universe in which a law that became invalid only b...
by JonnyB
Fri Jul 17, 2020 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Protective Claim for Tax Refund Regarding ACA SC Review
Replies: 21
Views: 1116

Re: Protective Claim for Tax Refund Regarding ACA SC Review

The lawsuit claims that the ACA became invalid in 2019 because the insurance mandate was removed. There is no claim that the law was invalid before then, and in fact the Supreme Court found that the law was constitutional. I'm trying to imagine the universe in which a law that became invalid only be...
by JonnyB
Fri Jul 17, 2020 2:25 pm
Forum: Investing - Theory, News & General
Topic: What to do with significant index changes, e.g., S&P 500 adding Tesla
Replies: 126
Views: 10878

Re: What to do with significant index changes, e.g., S&P 500 adding Tesla

An inaccuracy in the video is the claim that the index providers managing S&P500 funds need to buy all of the shares that they add to the S&P500 index because they don't currently have them. Tesla currently is in the S&P Completion Index. The Vanguard fund VEXAX/VXF tracks this index. When Tesla jo...
by JonnyB
Fri Jul 17, 2020 1:18 pm
Forum: Personal Consumer Issues
Topic: Stainless steel appliance cleaner - need recommendation
Replies: 42
Views: 2033

Re: Stainless steel appliance cleaner - need recommendation

Kind of makes you wonder why stainless steel appliances are so popular. They are high maintenance and start looking bad again five minutes after you polish them up. c.f: black cars.
by JonnyB
Fri Jul 17, 2020 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Protective Claim for Tax Refund Regarding ACA SC Review
Replies: 21
Views: 1116

Re: Protective Claim for Tax Refund Regarding ACA SC Review

The question is whether the amount involved x the likelihood of success is more than the 55 cents cost of a stamp. I'm always interested in actionable news like this. Who knew that stamps were 55 cents now? I haven't bought any in a couple of years. I'm going out for more before the price goes high...
by JonnyB
Fri Jul 17, 2020 12:09 am
Forum: Personal Finance (Not Investing)
Topic: Protective Claim for Tax Refund Regarding ACA SC Review
Replies: 21
Views: 1116

Re: Protective Claim for Tax Refund Regarding ACA SC Review

The question is whether the amount involved x the likelihood of success is more than the 55 cents cost of a stamp. I'm always interested in actionable news like this. Who knew that stamps were 55 cents now? I haven't bought any in a couple of years. I'm going out for more before the price goes high...
by JonnyB
Thu Jul 16, 2020 11:45 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: is the wisdom still relevant
Replies: 190
Views: 13012

Re: Delaying Social Security: is the wisdom still relevant

KarenC wrote:
Thu Jul 16, 2020 11:02 pm
In American English, bills, notes, bonds, and securities issued by the United States Department of the Treasury are Treasurys­. […]
Hmmm. So how about Treasury securitys.
by JonnyB
Thu Jul 16, 2020 9:47 pm
Forum: Personal Consumer Issues
Topic: Health insurance for trip during coronavirus?
Replies: 6
Views: 438

Re: Health insurance for trip during coronavirus?

Europe? You can't even go to Canada now. Nobody wants to see infected Americans.

Half a century ago we went to the moon. Now we can't even go to Canada.
by JonnyB
Thu Jul 16, 2020 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Give new doctor a SSN?
Replies: 86
Views: 7160

Re: Give new doctor a SSN?

atikovi wrote:
Thu Jul 16, 2020 8:48 pm
Just transpose the middle numbers. Chances are they will never check, and if they do, just say it was a typo.
You realize that you could be potentially screwing up someone else's life by impersonating them?
by JonnyB
Wed Jul 15, 2020 9:15 pm
Forum: Investing - Theory, News & General
Topic: When does Vanguard schedule proxy votes for board of directors etc.?
Replies: 10
Views: 530

Re: When does Vanguard schedule proxy votes for board of directors etc.?

There is a fallacy often promoted that Vanguard investors "own" the company. They no more own the company than you own Fidelity or Schwab. Here are your ownership rights at Vanguard as an investor: If you don't like what they are doing you can sell your shares. Exactly the same rights you have at Fi...
by JonnyB
Wed Jul 15, 2020 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: FLSA exempt - I disagree...maybe
Replies: 21
Views: 880

Re: FLSA exempt - I disagree...maybe

Just go home after 40 hours and enjoy your new freedom. Worst case they demote you back to paying for overtime and making more money. Why work for free?
by JonnyB
Wed Jul 15, 2020 4:11 pm
Forum: Personal Investments
Topic: MODERNA
Replies: 40
Views: 4104

Re: MODERNA

Moderna executives have sold $90 million worth of their shares since February. The chief medical officer sold all 100,000 of his shares then exercised his options and sold those too. He now holds no shares. The chief technical officer also sold all of his shares in the last few months. The CEO has s...
by JonnyB
Wed Jul 15, 2020 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: is the wisdom still relevant
Replies: 190
Views: 13012

Re: Delaying Social Security: is the wisdom still relevant

I certainly understand the forum rule that you aren't supposed to discuss changes to current law. That is for the comity of the site. But somehow this gets translated into the notion that you are not supposed to even think about changes to current law. That's nonsense. And that notion is inconsisten...
by JonnyB
Wed Jul 15, 2020 10:27 am
Forum: Investing - Theory, News & General
Topic: [Vanguard partners with Infosys for Defined Contribution recordkeeping]
Replies: 260
Views: 16181

Re: Vanguard laying off 1300 employees as part of outsourcing deal with Infosys

Your headline is dead wrong. The 1300 employees are all being offered jobs at Infosys. There's nothing wrong about the headline. They are being involuntarily terminated from their jobs at Vanguard, a layoff. The fact that they can get offers for jobs at a different company is irrelevant. That's wha...
by JonnyB
Wed Jul 15, 2020 12:27 am
Forum: Investing - Theory, News & General
Topic: [Vanguard partners with Infosys for Defined Contribution recordkeeping]
Replies: 260
Views: 16181

Re: Vanguard laying off 1300 employees as part of outsourcing deal with Infosys

Where does it say that they are getting laid off? Well, it's not exactly rocket science. Vanguard is transferring 1300 employees to another company to save money. The only way you save money on 1300 employees doing the exact same job is by cutting their pay -- a whole lot. They claim pay is guarant...
by JonnyB
Tue Jul 14, 2020 10:55 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: is the wisdom still relevant
Replies: 190
Views: 13012

Re: Delaying Social Security: is the wisdom still relevant

Head in the sand can be a useful strategy for some people and I won't say it is wrong for them. But personally I put it in the same category as the Efficient Market Hypothesis. No thanks.
by JonnyB
Tue Jul 14, 2020 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: is the wisdom still relevant
Replies: 190
Views: 13012

Re: Delaying Social Security: is the wisdom still relevant

Because you have to make some kind of assumption in order to make a plan, and the most logical assumption is usually the status quo. That is not "logical." It is merely your opinion and you are welcome to it. Meanwhile, I will make reasonable assumptions about the future, and I am quite confident t...
by JonnyB
Tue Jul 14, 2020 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: is the wisdom still relevant
Replies: 190
Views: 13012

Re: Delaying Social Security: is the wisdom still relevant

When planning SS claiming strategy, it is wise to take into account what will happen under current law. Current law for taxation of benefits, current law for income tax rates including the scheduled increase in rates, and current law for future SS benefits. Current law for Roth conversions, current...
by JonnyB
Tue Jul 14, 2020 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: is the wisdom still relevant
Replies: 190
Views: 13012

Re: Delaying Social Security: is the wisdom still relevant

If worst came to worst, even without raising the debt ceiling, the US could direct money intended for other spending into debt service. Layoff employees, sell assets, cancel purchases... Not something it does with any regularity, but it could be done if needed. So, no, the US need not default if th...
by JonnyB
Tue Jul 14, 2020 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security: is the wisdom still relevant
Replies: 190
Views: 13012

Re: Delaying Social Security: is the wisdom still relevant

But there would be trillions of dollars at stake and strong efforts opposed to spending more. No one knows what a future Congress might do, but it would be foolish to base a retirement plan on wishful speculation of some sort of bail out at variance with current law. Under current law, unless Congr...
by JonnyB
Tue Jul 14, 2020 2:19 pm
Forum: Investing - Theory, News & General
Topic: S&P - Dow spread
Replies: 11
Views: 881

Re: S&P - Dow spread

Ignore the Dow. It's a worthless "index" - it's weighted by the component companies' share prices, even though share price is totally meaningless. Regardless of the DOW's theoretical shortcomings, as constituted and managed, it does quite well in tracking the S&P 500. If you want to know how the ma...
by JonnyB
Tue Jul 14, 2020 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Bored to Tiers: banking perks don’t seem worth it
Replies: 40
Views: 5021

Re: Bored to Tiers

Wells Fargo class action. https://www.nbcnews.com/news/all/wells-fargo-pay-3-billion-over-fake-account-scandal-n1140541 I think it goes: "I love all the free stuff I get from my bank paid for by the money they steal from dumb people not as clever as me." Some people have standards. Couldn't this ex...
by JonnyB
Tue Jul 14, 2020 11:24 am
Forum: Investing - Theory, News & General
Topic: Tesla becomes most valuable car company in the world
Replies: 150
Views: 13361

Re: Tesla becomes most valuable car company in the world

The best thing I've read, with regards to valuation, is the following quote "Drive a Tesla Model S with the dual-motor configuration and all the bells and whistles and you'll understand why the valuation is what it is." If true, that would be very bad news. The Tesla Model S has decreased sales eve...
by JonnyB
Tue Jul 14, 2020 9:40 am
Forum: Personal Consumer Issues
Topic: Are 55+ Communities a Baby Boomer Thing Only? If so, who will buy when Boomers want to sell?
Replies: 195
Views: 16079

Re: Are 55+ Communities a Baby Boomer Thing Only? If so, who will buy when Boomers want to sell?

Many of the 55+ communities are not assisted living places... They are just normal (smaller) homes with maintenance provided, and kick-butt facilities (and HOA fees to match of course). The Fair Housing Act in the Civil Rights Act of 1968 prohibited discrimination in housing based on age among othe...
by JonnyB
Mon Jul 13, 2020 5:54 pm
Forum: Personal Consumer Issues
Topic: “Surviving” a Florida panhandle vacation
Replies: 38
Views: 5043

Re: “Surviving” a Florida panhandle vacation

No obvious issues with AK to FL, The abbreviation for Arkansas is AR. Alaska is AK. Not only that, you can't even drive from Alaska to Florida. Canada wants nothing to do with crazy infected Americans. Canadians have managed to control the pandemic. They are fining Americans $1,200 if they do not h...
by JonnyB
Mon Jul 13, 2020 5:26 pm
Forum: Investing - Theory, News & General
Topic: SP500 is top heavy - Alternatives to cap weighted - equal weighted or Mid cap fund?
Replies: 56
Views: 5399

Re: SP500 is top heavy - Alternatives to cap weighted - equal weighted or Mid cap fund?

I never understood the appeal of buying equal dollars of Apple and Joe's Storm Door Company. It's like buying lottery tickets with a random number generator.
by JonnyB
Mon Jul 13, 2020 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Where do you keep your money for quarterly estimated tax payments?
Replies: 50
Views: 3272

Re: Where do you keep your money for quarterly estimated tax payments?

The thing to remember is that the tax bill is the same amount of $$ no matter what kind of performance your brokerage account has. But keeping a large sum of money in accounts earning nothing makes you less wealthy than keeping it in accounts earning something. Right? Liability matching is a pretty...
by JonnyB
Sun Jul 12, 2020 5:32 pm
Forum: Personal Consumer Issues
Topic: Are 55+ Communities a Baby Boomer Thing Only? If so, who will buy when Boomers want to sell?
Replies: 195
Views: 16079

Re: Are 55+ Communities a Baby Boomer Thing Only? If so, who will buy when Boomers want to sell?

HomerJ wrote:
Sun Jul 12, 2020 4:37 pm
Why are you worried about selling?

That's a problem for your kids after you're dead.
You might not be dead. You might need to move to an assisted living facility and your home is your only major asset.
by JonnyB
Sun Jul 12, 2020 3:39 pm
Forum: Investing - Theory, News & General
Topic: Reasons for Optimism about bonds?
Replies: 63
Views: 4416

Re: Reasons for Optimism about bonds?

I simply have no optimism about bonds... now or going forward. Let's start with what is considered the safest.. the 5 year treasury is yielding about .3% and the ten year about .674% at Friday's close.. or thereabouts. An Ally Bank High yield savings account (insured) is paying 1.0% now. The year's...
by JonnyB
Sun Jul 12, 2020 1:26 pm
Forum: Personal Consumer Issues
Topic: Are 55+ Communities a Baby Boomer Thing Only? If so, who will buy when Boomers want to sell?
Replies: 195
Views: 16079

Re: Are 55+ Communities a Baby Boomer Thing Only? If so, who will buy when Boomers want to sell?

28fe6 wrote:
Sun Jul 12, 2020 1:08 pm
So far nobody asked--what is a 55+ community?
I've heard it described as a place where old people tired of living in the real world go to die.
by JonnyB
Sun Jul 12, 2020 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Bored to Tiers: banking perks don’t seem worth it
Replies: 40
Views: 5021

Re: Bored to Tiers

inverter wrote:
Sun Jul 12, 2020 9:51 am
Wells Fargo class action. https://www.nbcnews.com/news/all/wells- ... l-n1140541
I think it goes: "I love all the free stuff I get from my bank paid for by the money they steal from dumb people not as clever as me."

Some people have standards.
by JonnyB
Sat Jul 11, 2020 9:08 pm
Forum: Personal Investments
Topic: Current problems with 3 fund approach
Replies: 45
Views: 3688

Re: Current problems with 3 fund approach

Welcome, where did you get the idea that the U.S. stock market contains a lot of international? This used to be a popular idea a couple decades ago. Pundits said that U.S. companies got a high percentage of their income from overseas sales. It was common to say that all you needed was GE stock. Tha...