Only about half of mortgages go through GSEs. The rest are packaged up in private mortgage securities peddled by the big investment banks. Remember all those CDOs that blew up the banks back in 2008? Those were private bank mortgage securities, mostly sub-prime.
Search found 685 matches
- 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: 7083
Re: From lender's perspective, why would they lock in such low long-term debt?
- Mon Jul 20, 2020 7:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Inherited owner of S Corp
- Replies: 3
- Views: 560
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 to get on with winding the business down and distributing assets. S-corporations don't have taxable income. The shareholders of the S-corp are taxed on the income. But the question is whether this cash is income or capital gains. This will depend on your ownership basis in the corporation. The pre-existing basis in the company would be determined by your father's accountant. Any cash distributed in excess of the basis would be taxed as long term c...
- 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: 7083
Re: From lender's perspective, why would they lock in such low long-term debt?
Canada has a small amount of government securitized bonds from a trust something like the FHA, about 15% of mortgages. These are called Canada Mortgage Bonds. Banks have tried offering private mortgage securities but there is little interest from investors. Most mortgages are carried by the lending banks.
Even without the help of GSEs and deduction of mortgage and property taxes, Canada has an owner-occupied housing rate of 68% compared to 67% in the U.S.
It goes to show that "financial innovation" isn't necessary to a functioning market.
- Mon Jul 20, 2020 5:16 pm
- Forum: Investing - Theory, News & General
- Topic: 4% rule - confidence poll
- Replies: 457
- Views: 32597
Re: 4% rule - confidence poll
Keep in mind that the study results are a standard distribution of results from all possible retirement dates over the study period. By continually resetting your retirement date in positive years, you are biasing towards samples on one edge of the distribution.Leesbro63 wrote: ↑Mon Jul 20, 2020 4:58 pm 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.
- 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: 7083
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 half of home mortgages go through GSE agencies. The GSEs are for-profit public corporations, listed on the New York Stock exchange, owned by shareholders like you to whom they pay dividends. You own shares of the GSEs in your Vanguard Total Stock Market and S&P 500 funds and receive their dividends. The GSEs do not have unlimited pockets. As any other corporation they have to borrow the money they use to buy mortgages from investors like you....
- 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: 7083
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 be paying 5% interest and $2000/mo payments instead of 3% interest and smaller payments from cheap 30yr mortgages. Or maybe my house wouldn't exist at all because SFH wouldn't be economical otherwise. You may be exaggerating just a bit. There has been a lot of economic analysis on the effect of GSE operations, including default insurance, on mortgage interest rates. It is believed to lower mortgage rates by 0.25 to 0.40 percent. As an example, t...
- Sun Jul 19, 2020 4:58 pm
- Forum: Investing - Theory, News & General
- Topic: Dave Ramsey - 12% per year from mutual funds?
- Replies: 118
- Views: 7863
Re: Dave Ramsey - 12% per year from mutual funds?
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.whodidntante wrote: ↑Sun Jul 19, 2020 12:04 pm Treat Dave Ramsey as an entertainer, not a financial authority. Then things make a lot more sense.
The addictive entertainment value is that you as a listener get validation that you are smarter than "average" and morally superior. Ramsey is a master of emotional manipulation. It's entertainment.
- 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: 7083
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, and mutual funds. Rates track 10 year Treasury bonds for a variety of reasons, but ultimately a loan originator is going to do their best to sell you a loan so they can sell it to a larger bank who then sells the debt to the Feds and takes a slice for servicing. The US federal government has encouraged home ownership as a matter of policy for decades. 30 year fixed rate mortgages with no call option are the biggest policy tool in their shed, alo...
- Sun Jul 19, 2020 1:22 pm
- Forum: Investing - Theory, News & General
- Topic: Financial brokers must act in your "Best Interest" Ha! (NYTimes on new rules)
- Replies: 9
- Views: 1523
Re: Financial brokers must act in your "Best Interest" Ha! (NYTimes on new rules)
Hey, don't blame me if you end up sleeping in the garage.
- Sun Jul 19, 2020 1:09 pm
- Forum: Investing - Theory, News & General
- Topic: Financial brokers must act in your "Best Interest" Ha! (NYTimes on new rules)
- Replies: 9
- Views: 1523
Re: Financial brokers must act in your "Best Interest" Ha! (NYTimes on new rules)
You might start first seeing if you can get your spouse to sign it.
- 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: 7083
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?
The simple answer is that there is a savings glut and nobody wants your stinkin' money. Why would they pay you for it?
- 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: 4598
Re: Unexpectedly taking on parents' debt: pay it all or?
How about refi with just enough cash out to make it interesting to the banks, then turn around and use the cash to pre-pay the mortgage? Payments on $100K at 3% for 30 years are better than payments on $145K at 6.25 for 30 years. It helps the immediate cash flow problem.whodidntante wrote: ↑Sun Jul 19, 2020 2:31 am 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.
But probably impossible while unemployed.
- 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: 1722
Re: Protective Claim for Tax Refund Regarding ACA SC Review
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 peep. And why weren't they barking about this back in February when the original filing deadline was April 15?WolfgangPauli wrote: ↑Sat Jul 18, 2020 8:23 pm 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.
The reason is that it was just a recent internet frenzy and all the cowardly accountants jumped on board in June and July. Really an embarrassing episode that discredits the entire profession.
- Sat Jul 18, 2020 1:09 pm
- Forum: Investing - Theory, News & General
- Topic: Forbes: The Fed Is Going To Buy Stocks
- Replies: 11
- Views: 1592
Re: Forbes: The Fed Is Going To Buy Stocks
Let's parse that, shall we. He is not a professor. He is a retired hedge fund manager who is a part time lecturer.
And widely circulated magazine does not automatically equate to reputable.
- Sat Jul 18, 2020 12:50 pm
- Forum: Personal Investments
- Topic: When to sell individual stock after run up?
- Replies: 55
- Views: 6038
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.
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.
- 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: 1722
Re: Protective Claim for Tax Refund Regarding ACA SC Review
Well, that's pretty weak. Let's find out your real beliefs.WolfgangPauli wrote: ↑Sat Jul 18, 2020 11:23 am 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.
You send me $100 up front and I'll sign over my rights to a refund. Not just 2017, I'll throw in 2018 for free. That's potentially thousands of dollars for a trivial investment!
I have a feeling your beliefs are worth exactly what you said -- 55 cents.
- 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: 1722
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 are falling prey to internet frenzy. This case has been going on for two and a half years and not a peep from the CPAs and tax accountants until about two weeks before the 2016 deadline. Then someone somewhere wrote a blog entry and the frenzy was started. It spread like wildfire. Why not the 2014 or 2015 deadlines? You really missed an opportunity there. As I said, I would fire any CPA or tax lawyer swept up in this internet frenzy. Th...
- Fri Jul 17, 2020 9:59 pm
- Forum: Personal Consumer Issues
- Topic: Stainless steel appliance cleaner - need recommendation
- Replies: 42
- Views: 2836
Re: Stainless steel appliance cleaner - need recommendation
Whatever happened to Harvest Gold and Avocado Green?JAZZISCOOL wrote: ↑Fri Jul 17, 2020 5:47 pmGood point. But not too many options out there except the plain white and some black ones. Or the high end models that have those fancy covers that match your cabinets.
- 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: 1722
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 because of a change in the law that took effect in 2019 allows one to claim a refund for 2016. I know there are some cosmology physicists who claim to mathematically show that time can run in reverse, but this retroactive refund stuff is just loony tunes crazy. You may be right, but the IRS appears to be taking the matter seriously. Three days ago on its website, the IRS clarified that July 15, 2020 would be the deadline for filing a protective cl...
- 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: 1722
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 because of a change in the law that took effect in 2019 allows one to claim a refund for 2016.
I know there are some cosmology physicists who claim to mathematically show that time can run in reverse, but this retroactive refund stuff is just loony tunes crazy.
I know there are some cosmology physicists who claim to mathematically show that time can run in reverse, but this retroactive refund stuff is just loony tunes crazy.
- Fri Jul 17, 2020 2:25 pm
- Forum: Investing - Theory, News & General
- Topic: Tesla added to S&P 500 index
- Replies: 310
- Views: 36097
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 joins the S&P500 it will leave the completion index. VEXAX/VXF will need to sell its shares. Those trades will be settled in-house at Vanguard (without any external trading). (Later in the video, the speaker mentions this and just guesstimates a percentage to be acquired that way). This doesn't entirely eliminate the issue. Vanguard can't just gift shares from one fund to another. There is a conflict of interest. Shareholders of the...
- Fri Jul 17, 2020 1:18 pm
- Forum: Personal Consumer Issues
- Topic: Stainless steel appliance cleaner - need recommendation
- Replies: 42
- Views: 2836
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.
- 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: 1722
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 higher. Thanks for the tip. Just to be clear, I wasn't joking when I said the information about price of stamps was the most useful part of this post. If my CPA had come to me with this recommendation, I would fire him. I would assume he was in the same category as the tinfoil hat, gold fringe flag, admiralty law wackos. He would obviously be spending too much time on fringe websites. To expand on bsteiner's likelihood of success, here are all of the...
- 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: 1722
Re: Protective Claim for Tax Refund Regarding ACA SC Review
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 higher. Thanks for the tip.
- Thu Jul 16, 2020 11:45 pm
- Forum: Personal Finance (Not Investing)
- Topic: Delaying Social Security: is the wisdom still relevant
- Replies: 190
- Views: 15889
- Thu Jul 16, 2020 9:47 pm
- Forum: Personal Consumer Issues
- Topic: Health insurance for trip during coronavirus?
- Replies: 6
- Views: 633
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.
Half a century ago we went to the moon. Now we can't even go to Canada.
- Thu Jul 16, 2020 9:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Give new doctor a SSN?
- Replies: 86
- Views: 8714
- 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: 790
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 Fidelity or Schwab, no more and no less. As alex_686 pointed out, the Vanguard Group appoints each fund's managers and the funds managers appoint the Vanguard Group managers. And in at least some cases they are both the same people. They appoint themselves. Vanguard is a privately held for-profit corporation. There are something like 400 shareholders in the closely held corporation, one share for each fund. These funds and their managers ...
- Wed Jul 15, 2020 8:25 pm
- Forum: Personal Finance (Not Investing)
- Topic: FLSA exempt - I disagree...maybe
- Replies: 21
- Views: 1504
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?
- Wed Jul 15, 2020 4:11 pm
- Forum: Personal Investments
- Topic: Moderna
- Replies: 62
- Views: 10468
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 sold 400,000 shares this year.
Maybe they know something you don't.
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 sold 400,000 shares this year.
Maybe they know something you don't.
- Wed Jul 15, 2020 10:45 am
- Forum: Personal Finance (Not Investing)
- Topic: Delaying Social Security: is the wisdom still relevant
- Replies: 190
- Views: 15889
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 inconsistently applied. Supposedly you must plan for a 25% cut in social security because that is current law. But you are not supposed to plan for the default of U.S. treasuries when that is the current law.
And that notion is inconsistently applied. Supposedly you must plan for a 25% cut in social security because that is current law. But you are not supposed to plan for the default of U.S. treasuries when that is the current law.
- Wed Jul 15, 2020 10:27 am
- Forum: Investing - Theory, News & General
- Topic: [Vanguard partners with Infosys for Defined Contribution recordkeeping]
- Replies: 265
- Views: 21703
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 what most people who are laid off try to do, get a new job. The new company, if they choose to take the new job offer, will cut their pay after 12 months. Their contract would be with Infosys, not Vanguard. They will be Infosys employees, not Vanguard employees. The BLS has a specific category for this: "involuntary separation." Layoffs with no intent to rehire Discharges because positions were eliminated Discharges resulting from mergers,...
- Wed Jul 15, 2020 12:27 am
- Forum: Investing - Theory, News & General
- Topic: [Vanguard partners with Infosys for Defined Contribution recordkeeping]
- Replies: 265
- Views: 21703
Re: Vanguard laying off 1300 employees as part of outsourcing deal with Infosys
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 guaranteed for 12 months but after that they either take the big pay cut or leave.
I'm guessing most will see the writing on the wall and be seeking other jobs before the 12 months is up. Vanguard knows this, Infosys knows this and the employees know this. It's a slow motion layoff and Vanguard doesn't take a hit on unemployment insurance taxes if employees leave voluntarily.
- Tue Jul 14, 2020 10:55 pm
- Forum: Personal Finance (Not Investing)
- Topic: Delaying Social Security: is the wisdom still relevant
- Replies: 190
- Views: 15889
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.
- Tue Jul 14, 2020 9:42 pm
- Forum: Personal Finance (Not Investing)
- Topic: Delaying Social Security: is the wisdom still relevant
- Replies: 190
- Views: 15889
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 that the status quo is not it. Making plans for a change in the law to occur that has not yet occurred is, at best, speculation and, more likely, gambling. That's why discussion of proposed legislation is not allowed on the forum. That is not a logical argument. The reason for not discussing proposed legislation is to prevent prevent bitter arguments as forum policy, which is fine. It has nothing to do with the validity of those argument...
- Tue Jul 14, 2020 8:42 pm
- Forum: Personal Finance (Not Investing)
- Topic: Delaying Social Security: is the wisdom still relevant
- Replies: 190
- Views: 15889
Re: Delaying Social Security: is the wisdom still relevant
Assuming that nothing will change is also daydreaming. Why should that be your default assumption? It seems no more valid. Nothing's going to change? To me that seem extremely unlikely.afan wrote: ↑Tue Jul 14, 2020 6:10 pm 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 law for IRMAA. Simply deciding that something else will happen is not planning. It is daydreaming.
- Tue Jul 14, 2020 6:00 pm
- Forum: Personal Finance (Not Investing)
- Topic: Delaying Social Security: is the wisdom still relevant
- Replies: 190
- Views: 15889
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 there is no agreement to raise the debt ceiling. People like to say that to make it sound as if something horrible would necessarily result. The US could choose to default on other spending bills, but there is no guarantee it would. It's up to the discretion of the treasury secretary and the president which debts to prioritize. There was very serious discussion of defaulting on the treasury debt by certain members of congress and the president in t...
- Tue Jul 14, 2020 5:36 pm
- Forum: Personal Finance (Not Investing)
- Topic: Delaying Social Security: is the wisdom still relevant
- Replies: 190
- Views: 15889
Re: Delaying Social Security: is the wisdom still relevant
Under current law, unless Congress and the President act to raise the debt ceiling, U.S. Treasuries will default in 2021. Do you avoid Treasury bonds based on current law. Do you value them at zero in your portfolio under current law?afan wrote: ↑Tue Jul 14, 2020 4:12 pm 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.
- Tue Jul 14, 2020 2:19 pm
- Forum: Investing - Theory, News & General
- Topic: S&P - Dow spread
- Replies: 11
- Views: 1167
Re: S&P - Dow spread
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 markets did on any given day, getting the DOW number is about as good as getting the S&P number. I wouldn't call it worthless.
- 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: 5867
Re: Bored to Tiers
Yes, it can.scophreak wrote: ↑Tue Jul 14, 2020 10:40 amCouldn't this exact argument be made when talking about credit card rewards? The typical BH usage is to charge items, collect (and maximize the rewards), and pay off the statement balance monthly. These rewards are subsidized by those that don't use credit in the same way, and pay monthly interest and late charges.JonnyB wrote: ↑Sun Jul 12, 2020 12:56 pmI 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."inverter wrote: ↑Sun Jul 12, 2020 9:51 am Wells Fargo class action. https://www.nbcnews.com/news/all/wells- ... l-n1140541
Some people have standards.
- Tue Jul 14, 2020 11:24 am
- Forum: Investing - Theory, News & General
- Topic: Tesla becomes most valuable car company in the world
- Replies: 396
- Views: 44078
Re: Tesla becomes most valuable car company in the world
If true, that would be very bad news. The Tesla Model S has decreased sales every year, going from 29,000 in 2016 to less than half, 14,000 in 2019.
- 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: 237
- Views: 30271
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 other things. Real estate developers lobbied for a loophole which amended the Fair Housing Act in 1988 and created an exemption for housing for adults age 55 and over as long as it provided facilities and services designed to meet the physical and social needs of the elderly. In 1995 real estate developers lobbied for another amendment which eliminated even those requirements. So here we are today, no assisted living in most of these communities. The...
- Mon Jul 13, 2020 5:54 pm
- Forum: Personal Consumer Issues
- Topic: “Surviving” a Florida panhandle vacation
- Replies: 38
- Views: 5449
Re: “Surviving” a Florida panhandle vacation
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 have good business reasons for driving through Canada and make unnecessary stops.
Half a century ago we went to the moon. Now we can't even go to Canada.
https://www.cbc.ca/news/canada/calgary/ ... -1.5621452
- 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: 75
- Views: 10314
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.
- 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: 57
- Views: 5176
Re: Where do you keep your money for quarterly estimated tax payments?
Liability matching is a pretty good plan. Keep enough cash for short term liabilities. A forced sale of stock when the market it down makes you less wealthy also. You have to get your cash for current bills from somewhere.vineviz wrote: ↑Sat Jul 11, 2020 10:33 am 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?
- 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: 237
- Views: 30271
- Sun Jul 12, 2020 3:39 pm
- Forum: Investing - Theory, News & General
- Topic: Reasons for Optimism about bonds?
- Replies: 63
- Views: 5242
Re: Reasons for Optimism about bonds?
What's to like? At 0.3% interest taxes are going to be very low. A $1000 bond would be taxed less than a dollar.midareff wrote: ↑Sun Jul 12, 2020 12:07 pm 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 month over month inflation rate for May(s) was .12% but the year over year 12 month rolling was 1.65% .. pick your poison and then tack on your tax rate. OK, what's to like?
- 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: 237
- Views: 30271
- 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: 5867
Re: Bored to Tiers
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."inverter wrote: ↑Sun Jul 12, 2020 9:51 am Wells Fargo class action. https://www.nbcnews.com/news/all/wells- ... l-n1140541
Some people have standards.
- Sat Jul 11, 2020 9:08 pm
- Forum: Personal Investments
- Topic: Current problems with 3 fund approach
- Replies: 45
- Views: 4182
Re: Current problems with 3 fund approach
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. That notion didn't age well.