Search found 136 matches

by usnaron
Sat Feb 17, 2024 9:04 am
Forum: Personal Finance (Not Investing)
Topic: 14%+ Used Car Loan
Replies: 44
Views: 3469

Re: 14%+ Used Car Loan

how about a plugin hybrid or electric car with under 35k miles that will allow him to receive a 4k tax rebate....like a 2017/18 chevy volt or bolt, Honda clarity, Prius prime, Bmw i3, etc....these care will be between 10k-16k after rebate from a brand name reputable dealer
by usnaron
Sat Jan 13, 2024 4:42 pm
Forum: Personal Consumer Issues
Topic: North Central Italian towns in March
Replies: 1
Views: 276

Re: North Central Italian towns in March

Modena was fun for the Ferrari and Lamborghini museums. We also loved the balsamic vinegar tour at over 400 year old Giuseppe Giusti.
by usnaron
Thu Jan 11, 2024 3:51 pm
Forum: Investing - Theory, News & General
Topic: Article - $600K and live off dividends "forever"!
Replies: 66
Views: 15481

Re: Article - $600K and live off dividends "forever"!

If dividends didn't lower the stock price, you could buy the stock the day before ex-div, collect the dividend, and sell it off the next day. You'd have an infinite money printing machine. Don't you have to own the stock for a while to qualify? Nope. As long as you own it one day before the ex-div date, you get it. You could buy it in Tuesday, sell it on Wednesday, and get the dividend. If you don't pay attention you can inadvertently "buy the dividend", which generates a short-term taxable event. Stock dividends are not interest, like on a bond. It's the company taking its cash (which you have a right to already, since you're a stockholder) and transferring it to you. (This is why I said it's the same as moving money from your r...
by usnaron
Sat Sep 16, 2023 8:47 am
Forum: Investing - Theory, News & General
Topic: Berkshire Hathaway and Dividends
Replies: 92
Views: 8943

Re: Berkshire Hathaway and Dividends

If I understand correctly, WB invests in dividend paying stocks and they uses that money as he sees fit, which is to invest in companies for better return. Many BH approve of this. Why then is it a bad move for a BH to invest in dividend paying stocks and use the money as they see fit? If dividends are so verboten why would WB even buy them for the BRK portfolio? Obviously there is some value to dividend stocks. :D He invests in some companies that happen to pay dividends but his decision to invest in them has nothing to do with the fact thatcher pay a dividend. If he had the choice to buy Apple A shares with a dividend and Apple B shares with no dividend, based on his interviews on Thai topic, I believe he would choose the B shares becaus...
by usnaron
Fri Jul 28, 2023 4:41 am
Forum: Investing - Theory, News & General
Topic: Anyone Noticing Kids Getting Addicted to CashApp Trading
Replies: 74
Views: 7836

Re: Anyone Noticing Kids Getting Addicted to CashApp Trading

Uniballer wrote: Wed Jul 26, 2023 11:08 am
retiringwhen wrote: Wed Jul 26, 2023 10:37 am ...
BTW, I have to remember to buy my Mega Millions ticket today since the odds are now showing a positive expected return. :twisted:
The expected return at this time is not commensurate with the outlay. The net present value (cash value) is $464.2 million, and a ticket costs $2, and the odds are 1 in 302,575,350. So when the cash value is over $605 million then the expected return will be approximately $2. Of course, this assumes that you don't have more than one jackpot winner.
This also assumes you don't have to pay any taxes
by usnaron
Mon Jun 19, 2023 9:28 am
Forum: Investing - Theory, News & General
Topic: Tell me again, why dividends are not useful ?
Replies: 1156
Views: 90646

Re: Tell me again, why dividends are not useful ?

All of these arguments against dividends based on tax inefficiency are completely missing the point. Sure, you can find "inefficiencies" with dividends in that regard. But paying taxes is always an inefficiency whenever you make money . It is what it is: the price you pay for modern civilization. The point is that, regardless of the tax inefficiency argument, dividends remain the best and most reliable way for corporations to return the maximum amount of value to shareholders. The argument that stock buybacks serve the same function is COMPELTELY FALLACIOUS. There is a very good reason that stock buybacks used to be ILLEGAL. They are clearly market manipulation, and in the modern era they are horribly abused to enrich management ...
by usnaron
Mon Jun 19, 2023 9:22 am
Forum: Investing - Theory, News & General
Topic: Tell me again, why dividends are not useful ?
Replies: 1156
Views: 90646

Re: Tell me again, why dividends are not useful ?

Your "math" is not wrong. Your are just comparing apples and oranges. One company lost $90m, the other company lost $100m. They are not the same performing company. There are no magical dollars. No. I just showed, using math (I mean using actual math, not in double-quotes, thank you) how it's false to say that dividends being paid or not makes no difference to equity investors (which you and others have said repeatedly, and ad nauseum). And at the same time, I showed that there are no magical dollars. My suggestion is to not make false statements anymore. Lol. I am beginning to agree with Nedsaid. These conversations are useless. Enjoy paying unnecessary taxes on your forced sales. I'm done with this silly conversation. +1000
by usnaron
Sat Jun 10, 2023 12:57 am
Forum: Personal Consumer Issues
Topic: How to negotiate new car purchase in today's market?
Replies: 19
Views: 3441

Re: How to negotiate new car purchase in today's market?

It has been 8 years or so since I've bought a new car. At that time the approach was get invoice price for the car you want, find out what other's are paying, and negotiate up from there, usually just a little bit to get the car. And then decide if you want financing, trade in etc. I have bought with cash, no trade in because I drive cars until they are done. Last purchase I did take a 0% finance offer, after price agreed to. So now, is the right approach to just do the best you can on price, armed with information about what the car is selling at to others, inventory info, etc.? I never have leased, have always thought it was not a good way to go for someone who drives cars to the end. The car I am buying is a Kia EV6, so I am wondering i...
by usnaron
Fri Jun 09, 2023 4:59 pm
Forum: Personal Consumer Issues
Topic: How to negotiate new car purchase in today's market?
Replies: 19
Views: 3441

Re: How to negotiate new car purchase in today's market?

It has been 8 years or so since I've bought a new car. At that time the approach was get invoice price for the car you want, find out what other's are paying, and negotiate up from there, usually just a little bit to get the car. And then decide if you want financing, trade in etc. I have bought with cash, no trade in because I drive cars until they are done. Last purchase I did take a 0% finance offer, after price agreed to. So now, is the right approach to just do the best you can on price, armed with information about what the car is selling at to others, inventory info, etc.? I never have leased, have always thought it was not a good way to go for someone who drives cars to the end. The car I am buying is a Kia EV6, so I am wondering i...
by usnaron
Sat May 20, 2023 2:33 am
Forum: Personal Consumer Issues
Topic: Car oil leaking?
Replies: 19
Views: 1982

Re: Car oil leaking?

AQ wrote: Fri May 19, 2023 8:18 pm I purchased a brand new car several months ago. Last week, I took the car to the dealership for its initial oil change. However, I have recently observed oily spots on the ground where I usually park my car, leading me to suspect a possible oil leak. This is an unfamiliar occurrence for me, and I would appreciate your insights on the matter. What could be the potential cause of this issue, and what should I do?
Could be a car that requires crush washer on drain plug and they forgot to put it on before tightening
by usnaron
Sun May 14, 2023 4:14 pm
Forum: Personal Consumer Issues
Topic: EV Lease Questions
Replies: 19
Views: 1991

Re: EV Lease Questions

ame around 2017, with the Bolt, which was the first reasonably affordable (<$40K) EV with around 250 miles of range. More than 5 years later, that's still about the range you get at that price point, although given inflation the price has effectively dropped, but not dramatically. To take another example, the base Model 3 came onto the market in 2018 with 260 miles of range, today the base Model 3 has just a tiny bit more - 272 miles. Sure, there are Lucid EVs with 500+ miles of range, but they also cost around $150K. Any new battery technology (i.e., other than lithium-ion) that would be in affordable EVs in 3 years would have to be much farther along in development and mass production already. It ain't happening in 3 years and shouldn't ...
by usnaron
Sat May 13, 2023 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Retiring Overseas/Out-of-State and Escaping Californian Income Taxes?
Replies: 209
Views: 14183

Re: Retiring Overseas/Out-of-State and Escaping Californian Income Taxes?

We live in CA but plan to retire out of state or even out of the country in the next few years. Wondering if we can even escape paying CA taxes. Our retirement income will be $110K in pensions and another $60K from passive investments so it's a about $13K a year in CA taxes. The challenge is that the CA franchise tax board documentation doesn't give any relevant examples or seem to cover retirees retiring out of state. https://www.ftb.ca.gov/forms/2022/2022-1031-publication.pdf 1) We will retain our CA home for our kids to use and for us to meet up with for holidays/summer. In totality, we plan to spend at MOST 3-4 months a year in CA. So essentially it will be a holiday home. 2) We will also retain our relatively cheap CA HMO retiree insu...
by usnaron
Mon Oct 31, 2022 3:27 am
Forum: Investing - Theory, News & General
Topic: Dividend Stocks: Port in a Storm?
Replies: 433
Views: 42733

Re: Rob Berger on Dividends. [Why Dividends Don't Increase Your Wealth]

I don't understand what you mean by "your equity remains the same." If I owned $1000 in stock before the dividend, and $990 in stock plus $10 in cash after the dividend, my equity clearly does not remain the same. The number of shares stays the same -- is that what you mean by "equity"? Pre dividend: 100 shares XYZ @ $10 per share = $1,000 equity Post dividend: XYZ pays a dividend of 10 cents per share. 10 cents X 100 shares = $10 dividend income Share price of XYZ is reduced by the 10 cents per share dividend to $9.90. You still own 100 shares of XYZ. 100 shares X $9.90 = $990 equity $990 + $10 dividend = $1,000 You're back to the original value of your holdings: $1,000. That is the point Rob Berger is making in his vi...
by usnaron
Mon Oct 31, 2022 3:23 am
Forum: Investing - Theory, News & General
Topic: Dividend Stocks: Port in a Storm?
Replies: 433
Views: 42733

Re: Rob Berger is wrong on Dividends Claiming [Why Dividends Don't Increase Your Wealth]

Oh boy. Very enlightening. Makes me uncomfortable. Free Dividend Fallacy--Why Dividends Don't Increase Your Wealth [Link formatted by admin LadyGeek] The thing is, he's wrong. Dividends do increase your wealth. If you collect them today, they're yours. The market could crash tomorrow and you can lose everything else. But the dividends are in your pocket. The market is highly speculative in the short term. Dividends, once received by the shareholder, are irretrievably the property of the shareholder. That portion of his wealth is no longer subject to the whims of the stock market. This is incontrovertibly true. Yes, the same as if you were to sell 10 dollars worth of the stock. However, most dividends from a stock or mutual fund are ordinar...
by usnaron
Wed Oct 12, 2022 3:28 pm
Forum: Personal Consumer Issues
Topic: Marine Corps NROTC program for daughter
Replies: 67
Views: 6639

Re: Marine Corps NROTC program for daughter

bh_lalew wrote: Sat Oct 08, 2022 1:02 am Why not just apply to one of the service academies? West point for the US army or Annapolis for the Navy - naval academy when you graduate you
can select to go into the US Navy or the USMC.

NROTC is Navy ROTC program and there is the ROTC for the Army - those plans are usually available and done at the college. There are usually corresponding classes at the college teaching leadership etc.
NROTC in A normal college is a much more enjoyable experience for 99% of people. No need to suffer at an academy (personal experience here)
by usnaron
Sun Oct 09, 2022 4:20 am
Forum: Personal Consumer Issues
Topic: 2023 Honda Odyssey EX-l
Replies: 38
Views: 3837

Re: 2023 Honda Odyssey EX-l

bottlecap wrote: Tue Oct 04, 2022 10:37 pm The Odyssey is a proven vehicle. You've got nothing to worry about but the wait.

JT
Read about all the issues Hondas have had with their variable cylinder management (vcm) system over the past 10-12 years….class action suit involved. I needed an engine rebuild at 70k miles due to vcm warping engine seals over time.I also love how Toyota is the only company that has not given into the turbo and direct fuel injection (as opposed to port injection) technology. All about longevity for Toyota and not about getting an extra 1-2 mpg with suspect technology.
by usnaron
Thu Jun 02, 2022 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: What is the Worst Financial Decision/Mistake You Have Made?
Replies: 657
Views: 133096

Re: What is the Worst Financial Decision/Mistake You Have Made?

Godot wrote: Fri Dec 18, 2020 12:51 pm
JiggsJazzCar wrote: Fri Dec 18, 2020 12:41 pm
Godot wrote: Fri Dec 18, 2020 12:29 pm Selling 1,000 shares of Apple for $10 a share, after buying them for $8 a share in the 90s.
Not to make you feel sick or anything.... but how much would that be worth today?
A lot more than 10k.
Over 4 million bucks
by usnaron
Tue May 17, 2022 3:03 pm
Forum: Personal Investments
Topic: 40% dividend yield how is that priced correctly? (Petrobras PBR/PBR.A)
Replies: 62
Views: 7557

Re: 40% dividend yield how is that priced correctly?

It makes $40B of free cash flow per year after investing in new oilfields for growth. So it’s a $90B company that pays you $40B cash and grows oil production every year. If all else held equal (oil price doesn’t change) it will be worth more than $90B next year because it produces more oil next year than this year. If PBR.A held onto those $40B cash I’m pretty sure it won’t be worth $40B more. So I don’t agree with you that the dividends come out of of the value of the company directly. Dividends come out of the balance sheet of the company. 40% dividend yield plus growth probably has a higher expected return than the market (which returns 9% historically). Since you're heavily invested in this company, you probably heard about this (which...
by usnaron
Tue May 17, 2022 4:52 am
Forum: Personal Finance (Not Investing)
Topic: Tales from this insane real estate market [Home sales]
Replies: 2906
Views: 515477

Re: Tales from this insane real estate market

fishandgolf wrote: Mon May 16, 2022 9:18 pm I haven’t followed the rates lately…..what are the current mortgage rates for 15 and 30 year fixed?
For today, Tuesday, May 17, 2022, the current average 30-year fixed-mortgage rate is 5.42%, down 15 basis points from a week ago. If you're looking to refinance, the current average rate for a 30-year fixed refinance is 5.35%, declining 18 basis points over the last week.
by usnaron
Tue May 17, 2022 3:29 am
Forum: Personal Investments
Topic: 40% dividend yield how is that priced correctly? (Petrobras PBR/PBR.A)
Replies: 62
Views: 7557

Re: 40% dividend yield how is that priced correctly?

gougou wrote: Sun May 15, 2022 5:02 pm PBR.A Petrobras is a $13.6 stock that pays $1.2 to $1.4 of dividend every quarter so over $5 per year giving about 40% dividend yield. How is that even possible in an efficient market…
The dividend comes out of the value of the company, from its cash. If the company pays out 40 billion in dividends, it loses 40 billion of value (all else held equal). No free lunch
by usnaron
Wed Jun 30, 2021 8:38 am
Forum: Personal Consumer Issues
Topic: Flaunt Your High-Mileage Car
Replies: 945
Views: 150307

Re: Flaunt Your High-Mileage Car

plasticofantastico wrote: Tue Jun 29, 2021 1:48 pm 2004 BMW e46 with 275,000 miles. Bought new and mostly self-serviced.
Any expensive repairs on this beamer?
by usnaron
Fri Apr 23, 2021 2:57 pm
Forum: Investing - Theory, News & General
Topic: How to Invest in Crypto like a Boglehead?
Replies: 232
Views: 42310

Re: How to Invest in Crypto like a Boglehead?

Hello, my first topic here! This thread is not to debate the pros and cons of crypto but rather, assuming I've already decided that some % of my asset allocation should consist of cryptocurrency, how can I invest in crypto like a Boglehead ? By "like a Boglehead" I mean: 1. Minimize costs as much as is reasonably possible (trading spreads, transaction or withdrawal fees, taxes, etc.). 2. Manage my investments in a way that is mostly passive. I don't want to read crypto news every day or have to study new blockchain developments. 3. Diversify my investments so that the majority of my gains or losses come from overall crypto market movements rather than the individual risks of a particular coin. I've come up with some ideas on my o...
by usnaron
Sat Mar 13, 2021 7:22 am
Forum: Investing - Theory, News & General
Topic: Dividends...please explain
Replies: 131
Views: 12481

Re: Dividends...please explain

Non-dividend paying stock isn't really all that different from Bitcoin or Pokemon Cards. It relies on the Greater Fool theory. ...when you buy a stock that doesn't pay a dividend, that is not an investment, that is a speculation ...(b)ecause the only way you can make money is it has to go up. --- Kevin O’Leary https://www.wsj.com/articles/shark-tanks-kevin-oleary-talks-about-his-best-and-worst-personal-investments-11549249740#:~:text=%E2%80%9CYou%20should%20understand%20that%20when,it%20has%20to%20go%20up Don't agree with this at all. Just because a company isn't paying a dividend now, it doesn't mean they won't ever pay a dividend. +1 Also when a company has earnings and doesn't pay a dividend, that means they are retaining those earnings...
by usnaron
Sat Mar 06, 2021 3:05 am
Forum: Personal Investments
Topic: Military home buying opportunity in Portugal
Replies: 13
Views: 2069

Re: Military home buying opportunity in Portugal

navyitaly wrote: Tue Mar 02, 2021 3:33 pm pocket your utility allowance, max your OHA, and pocket your OCOLA, go travel and enjoy life..don't complicate life. I did 3.5 years in Naples, Italy.
I think you are right. But I also think I could clear $100k with less than 60 hours of work if I buy and then sell for same price before I leave....but there would be land mines.
by usnaron
Mon Mar 01, 2021 11:20 pm
Forum: Personal Investments
Topic: Military home buying opportunity in Portugal
Replies: 13
Views: 2069

Re: Military home buying opportunity in Portugal

I think it's cool that you're thinking about it, thank you for your service! Lisbon is an amazing destination. Can you rent for the first year to check out the situation, then switch to the condo plan later? My other thought is about a much lower cost condo? Like in the 150 K range? Any chance you will leave service after three years and stay in Portugal? Then it might make sense to.but if you're definitely getting transferred again in three years, then it makes sense to rent . Finally, could you continue to rent to servicemembers? Maybe there is a network already… My main concern would be getting taken advantage of given that you posibly don't know the language or know the ins and outs of buying in Europe… This is the kind of thing you wo...
by usnaron
Mon Mar 01, 2021 1:55 pm
Forum: Personal Investments
Topic: Military home buying opportunity in Portugal
Replies: 13
Views: 2069

Military home buying opportunity in Portugal

I will be stationed in Lisbon Portugal for 3 years at the end of the year. I am able to rent any place in the area (up to $2700 euro per month) on gov dime, or I could buy a place. If I buy, They will pay me 1/120th of homes purchase price per month up to $2700 euro per month, regardless of financing. I’m thinking about buying a condo in the 330k euro range, 200 euro per month in condo fees and taxes (all cash using money I have in CDs that are paying 1.2%). I can then either sell before I leave or rent it out for about 2k per month after I leave. Seems like I’ll be getting close to a 10 times greater yield for parking the money in a condo vs parking it in CDs. What could go wrong?
by usnaron
Sun Mar 22, 2020 3:35 am
Forum: Personal Investments
Topic: How much you lost/gain since Feb 20,2020 ?
Replies: 366
Views: 38588

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

Was 30 equities / 70 bonds/cd/cash and still dropped a years worth of pay.
by usnaron
Fri Jul 19, 2019 2:53 am
Forum: Personal Consumer Issues
Topic: Has anyone seen the documentary "Playing with FIRE?"
Replies: 217
Views: 25900

Re: Has anyone seen the documentary "Playing with FIRE?"

runner3081 wrote: Thu Jul 18, 2019 9:50 am
cableguy wrote: Thu Jul 18, 2019 8:57 am The rush to "retire" before age 40 is really laziness in disguise and potential mental health issues if you ask me...
That is quite an accusation there. Who says we are meant to work most of our lives? What if money and things don't matter to these people?

Obviously, the lifestyle is not for you, but that doesn't mean people who pursue and achieve it are lazy or have a mental illness.
I agree. Working 50-60 hours a week at a job that does not bring you happiness or satisfaction while your family lives their lives at home, only to buy a bunch of unnecessary stuff that gives you a short term dopamine rush after purchase......now that is closer to a mental illness than FIRE.
by usnaron
Thu Jun 06, 2019 5:39 am
Forum: Personal Investments
Topic: TSP Loan for Real Estate Investment
Replies: 18
Views: 1114

Re: TSP Loan for Real Estate Investment

The interest is paid to yourself, so it is not actually a fee. The only fee associated with a TSP loan is $50 transaction fee, no mater what the size of the loan is. Quote below is from TSP website.....

"Loan Fee. The TSP charges a loan fee of $50 for administrative expenses. The TSP deducts the fee from your loan proceeds. For example, if you request a loan for $1,000, the amount paid to you will be $950.

Interest. The interest rate on your TSP loan is the G Fund rate at the time your loan application is processed. This rate is fixed for the life of the loan. Although TSP loan interest is not tax-deductible, all of the interest goes back into your TSP account."
by usnaron
Fri Dec 21, 2018 12:29 am
Forum: Personal Consumer Issues
Topic: Buying used car
Replies: 36
Views: 2770

Re: Buying used car

Hi, I am doing a little research in trying to buy a new (used) van for our family. We have found a van we LOVE, a 2015 Honda Odyssey. My concern is that it has 74k miles on it. I know these vans are supposed to last a long time, but that much mileage is making me nervous. It has a great carfax report, and seems to be kept in great condition. I have no on hand dealing with these vans, so If anyone has any suggestions, please comment. Thank you! Before you buy, read about the known VCM (variable cylinder management) issues with these vans. After mine had issues and got fixed under warranty (65k miles) I installed a VCMuzzler which prevents the car from turning off cylinders, haven't had any issues since. If I had to do it again, I'd buy a Si...
by usnaron
Wed Aug 15, 2018 1:11 pm
Forum: Personal Investments
Topic: FIRE within 5 years with high income?
Replies: 16
Views: 5493

Re: FIRE within 5 years with high income?

Do all Voya funds have a "sales charge" like the website says?

Site says " max sales charge of 5.5%"
by usnaron
Tue Aug 14, 2018 5:06 pm
Forum: Personal Consumer Issues
Topic: Cleaning gas grill
Replies: 40
Views: 4812

Re: Cleaning gas grill

I like using a metal scraper and not a wire brush. Eventually those tiny wire pieces can fall off and get in food. There are quite a few cases each year of people requiring surgery due to those metal bristles getting stuck in esophagus or intestine walls.
by usnaron
Wed Jul 04, 2018 9:57 am
Forum: Non-US Investing
Topic: Can I finance a new home abroad (Carribean)???
Replies: 53
Views: 5595

Re: Can I finance a new home abroad (Carribean)???

In April you told us you had $700k sitting in a bank account. No need to borrow money, then. I am not comfortable purchasing a home cash and much less in another country. Got too little ones at home a large amount of my liquidity to that amount of risk I don’t think is a smart decision. You think you need $700,000 of liquid cash for 2 kids? Lucky kids. No. But I don’t need 50% of that cash sitting in land and concrete in a 3rd world country when I don’t actually plan on living the home for another 20 to 30 years. Would much prefer to use the banks money and rent the home over those 20 to 30 years so someone else is paying for my retirement home. After accounting for all the expenses associated with taxes, opportunity costs, property manage...
by usnaron
Sun Jun 03, 2018 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 1367
Views: 207817

Re: How much money do you want to retire?

Have to include federal pension of 50k per year starting at age 44. Retire at 44 with an additional 1.8 Mil on top of pension.
by usnaron
Mon May 28, 2018 8:06 pm
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 199
Views: 23315

Re: Renting vs Owning Your Home

For the vast majority of households in the US, their home is their most valuable asset by far. What does that tell you? What it doesn't tell you is that there are tens or scores of millions of households with large (mid to high-six figure) portfolios that they accumulated by renting, saving the difference, and investing it. There have been numerous studies about redlining and how wealth has been passed down to generations, or not. What these have shown is those who were unable to buy a home and were forced to rent ended up with less family wealth, period. Strict correlation and causation. This is still happening. To be blunt I don't want to be like most US households. Most US households suck at savings and investing so the "forced&quo...
by usnaron
Mon May 28, 2018 5:01 pm
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 199
Views: 23315

Re: Renting vs Owning Your Home

I’ve been renting a 1500 sqft, two story townhouse in a very HCOL area in SoCal for the past 7 years. Similar ones are selling for 700-750k with 750/month HOA and 1.25% property tax. My rent is $2400 (was $2250 7 years ago). Appreciation has been negligible over the past 7 years. My monthly rent is only about $1k per month short of the hoa and tax bill each month. There is no way that buying would make financial sense for me. Instead I just continue to invest the extra $2k per month rental equity I’m earning.
by usnaron
Thu May 17, 2018 12:00 am
Forum: Personal Investments
Topic: Urgent: escrow situation in bay area
Replies: 50
Views: 4444

Re: Urgent: escrow situation in bay area

Read this short article and let me know what you think.
Mortgages in the Bay Area are way out of line when compared to equivalent rents. Prices could continue to go higher but I believe it is only based on the belief that people can sell it for more later, kind of like bitcoin.

https://www.gocurrycracker.com/how-i-ma ... al-estate/
by usnaron
Fri May 11, 2018 12:46 am
Forum: Personal Investments
Topic: move out of bonds into money market and online savings
Replies: 19
Views: 3478

Re: move out of bonds into money market and online savings

Jimsad wrote: Thu May 10, 2018 6:52 pm In a TSP plan , people seem to love the G fund which is like a money market fund and many seem to prefer this over the bond fund .
I was thinking the same principles apply to what I am planing to do . Agree?
G fund has a larger expected value than f fund because it is taxpayer subsidized. It has an average yield of about a ten year treasury with the interest rate risk of a 2-3 day bond. It is one of the few free lunches in the investment world.
by usnaron
Sun Apr 29, 2018 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: AF pilots and retention bonus, glad you stayed or happy you went?
Replies: 27
Views: 5457

Re: AF pilots and retention bonus, glad you stayed or happy you went?

A 20 year O5 retirement is worth about the same as a $1.25 mil annuity with no inflation increases. When you consider the fact that it is indexed to inflation and the cheap healthcare that comes with retirement, the package is definitely worth over 1.5 mil. Pretty hard to pass that up for another 10 years of work.
by usnaron
Sun Apr 29, 2018 12:19 am
Forum: Personal Finance (Not Investing)
Topic: Would you make this financial decision??
Replies: 18
Views: 2405

Re: Would you make this financial decision??

If your comfortable in the $1350 per month place, I’d stay there for sure and invest the extra money that’s not going towards the big mortgage, maintenance, insurance, and heating/cooling of a big house. My favorite “don’t buy a house article” is this one .... https://www.gocurrycracker.com/how-i-ma ... al-estate/
by usnaron
Fri Apr 27, 2018 12:16 am
Forum: Personal Consumer Issues
Topic: Extended Warranty for Honda Odyssey - worth it?
Replies: 23
Views: 12170

Re: Extended Warranty for Honda Odyssey - worth it?

You can buy a Honda care warranty at cost from saccucci Honda in Newport, RI over the phone at cost. They sell so many warranties that they get kickbacks from Honda. Big dealers sued them because they were taking so many warranty customers, all that changed after the suit is that you can’t buy over the internet anymore, you must call now. I paid around 1200 for an 8 year 120k warranty on my Honda Odyssey. These Honda’s with the VCM technology have a lot of problems and you should definitely get a warranty. I had the typical vcm spark plug fouling issues at around 65k (Honda has lost a class action suit surrounding this problem). After they fixed the issue I installed a vcmuzzler, which causes the car to use all 6 six cylinders at all times ...
by usnaron
Tue Apr 24, 2018 12:33 am
Forum: Personal Finance (Not Investing)
Topic: How old are you and how much do you save for retirement a year
Replies: 244
Views: 42788

Re: How old are you and how much do you save for retirement a year

36 and save about 60k per year, family of 4 spending 80k per year in HCOL area in SoCal. Very low taxes and free healthcare due to military job.
by usnaron
Sat Apr 07, 2018 1:17 am
Forum: Investing - Theory, News & General
Topic: Bill Bernstein, new podcast
Replies: 56
Views: 10114

Re: Bill Bernstein, new podcast

It’s actually #1 on that link you posted....
VictoriaF wrote: Thu Apr 05, 2018 6:05 pm
azanon wrote: Thu Apr 05, 2018 3:17 pm Zvi Bodie says stocks get riskier with time, not less risky. With a PhD in Economics from MIT, i'm going to trust he's not mistaken.
MIT is not a top school in economics. According this list https://www.topuniversities.com/univers ... omics-2015 , it's not even in top 10.

More to the point:
1. You can find a prominent economist on every side of every debate.
2. "Riskier" must be defined. With time, stocks are more likely to perform better, but the magnitude of both positive and negative outcomes increases, and one can have higher losses in the long run.

Victoria
by usnaron
Mon Aug 07, 2017 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: When does renting make sense
Replies: 112
Views: 14906

Re: When does renting make sense

Use the New York Times rent vs own calculator, pretty good estimate if you use reasonable investment gain projections and housing appreciation projections.
by usnaron
Thu Jul 27, 2017 1:56 pm
Forum: Investing - Theory, News & General
Topic: Living Off Dividends
Replies: 285
Views: 32606

Re: Living Off Dividends

The "living off dividends" idea just makes me bang my head off a brick wall. I have a well diversified P2P loan portfolio (asset backed loans only), that pays around 12% - 13% annually, in monthly installments. I have not had any losses in 3 years. If you were obsessed with living off dividends relating to dividends for shares, which is just the same as selling down your capital, whyg not switch to a high income portfolio based on something similar to above, and then you would need save much less money to retire. Main disadvantage, requires a bit more time and effort than boglehead share investing, which is why most of my money still goes into boglehead equity portfolio. When I am > 70 I don't think I will have the inclination to...
by usnaron
Thu Jul 27, 2017 1:27 pm
Forum: Personal Investments
Topic: Why are they beating S/P? What am I missing?
Replies: 72
Views: 7125

Re: Why are they beating S/P? What am I missing?

My family has been reviewing my MILs investments as she is unable to do it herself. MILs spouse (passed away long time ago) put her with this wealth management group in Minnesota in 1998. Basically a large roll over IRA, so when the group sells something, there is no capital gains other than some small selling fees like $20. What baffles me how well they have done w respect to Mid cap and Large Cap since 1998. I have attached a return profile. http://i.imgur.com/9tAMSMn.jpg?1 http://i.imgur.com/zQqXH9b.jpg http://i.imgur.com/F5cHCyh.jpg http://i.imgur.com/uLCTiER.jpg This is the IRR prepared for the account. According to it it has made 12.06% (Equity portion) in 19 years vs 6.76% of S/P or 8% of MidCap. I am just trying to figure out how h...
by usnaron
Thu Jul 13, 2017 4:46 pm
Forum: Personal Investments
Topic: EE bonds for kids
Replies: 1
Views: 385

EE bonds for kids

I know that there is a $10k limit per year per social security number when purchasing EE bonds - does that mean I can buy $40k per year (me, wife, 2 kids)? Or does it only apply to people that are working?
by usnaron
Thu Jun 15, 2017 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Buying cost vs renting (specifically for me)... can anyone fact check this?
Replies: 36
Views: 4363

Re: Buying cost vs renting (specifically for me)... can anyone fact check this?

“Hey I’ve got an idea. We’re always talking about good investments. What if we came up with the worst possible investment we can construct? What might that look like?” Well, let’s see now (pulling out our lined yellow pad), let’s make a list. To be really terrible: •It should be not just an initial, but if we do it right, a relentlessly ongoing drain on the cash reserves of the owner. •It should be illiquid. We’ll make it something that takes weeks, no – wait – even better, months of time and effort to buy or sell. •It should be expensive to buy and sell. We’ll add very high transaction costs. Let’s say 5% commissions on the deal, coming and going. •It should be complex to buy or sell. That way we can ladle on lots of extra fees and reports...
by usnaron
Thu Jun 15, 2017 4:02 pm
Forum: Personal Consumer Issues
Topic: Highlander vs. Pilot
Replies: 30
Views: 9152

Re: Highlander vs. Pilot

don't buy a Honda with variable cylinder management (VCM), like the Pilot has, until you research the issues with it and the class action VCM suit that Honda lost.
by usnaron
Wed May 10, 2017 2:34 pm
Forum: Personal Investments
Topic: Live off dividends or sell securities during retirement?
Replies: 9
Views: 2032

Re: Live off dividends or sell securities during retirement?

dividends were nice back in the day when transaction costs were high and there was no such thing as a discount broker. now, they are just a tax inefficient drag on your taxable portfolio, which is why high dividend investments should be kept in your tax advantaged account. the media makes it sound like dividends are some magic money making machine that you should look for when making investment decisions. Bottom line, when millions of people vote on a company's value (by buying stock at a certain price), the amount of cash the company has on hand, is one of the factors considered. When the company pays out $100 million in dividends, the company's value just dropped $100 million (if you were able to keep all the other value determining varia...