Bogleheads.org

I suggest putting the money in a high-yield savings account.

Two scenarios. Which would you prefer: 1) Stocks drop 50% and stay down for 3 years. After 5 years they are up 20% over where you started. 2) Stocks go up 4% a year for 5 years. In the end you are up 20% over where you started. (Ignoring compounding to keep it simple). In the end, you wind up at the same place financially. But investing isn't only about finance. People aren't robots. I think the vast majority of people would prefer a calmer, smoother ride even if the end result is the same. It really doesn't matter unless I need to sell a lot of stock all at once. No one should need to do that (though I understand sometimes it's unavoidable). And the first option is far more preferable to the second: I'd love to buy stocks at a 50% discoun...

How funny you should post this, tennisplyr, as I'm going to tennis camp.

Who cares how the portfolio performed over 12 months? I don't. And neither should you, OP. Two scenarios. Which would you prefer: 1) Stocks drop 50% and stay down for 3 years. After 5 years they are up 20% over where you started. 2) Stocks go up 4% a year for 5 years. In the end you are up 20% over where you started. (Ignoring compounding to keep it simple). In the end, you wind up at the same place financially. But investing isn't only about finance. People aren't robots. I think the vast majority of people would prefer a calmer, smoother ride even if the end result is the same. It really doesn't matter unless I need to sell a lot of stock all at once. No one should need to do that (though I understand sometimes it's unavoidable). And the...

Why are you so worried about the commingling of assets? Are you assuming your kids are going to marry ne'er-do-wells? This seems really premature...

Who cares how the portfolio performed over 12 months? I don't. And neither should you, OP. Two scenarios. Which would you prefer: 1) Stocks drop 50% and stay down for 3 years. After 5 years they are up 20% over where you started. 2) Stocks go up 4% a year for 5 years. In the end you are up 20% over where you started. (Ignoring compounding to keep it simple). In the end, you wind up at the same place financially. But investing isn't only about finance. People aren't robots. I think the vast majority of people would prefer a calmer, smoother ride even if the end result is the same. It really doesn't matter unless I need to sell a lot of stock all at once. No one should need to do that (though I understand sometimes it's unavoidable). And the...

Who cares how the portfolio performed over 12 months? I don't. And neither should you, OP.

hudson wrote: ↑Fri Feb 10, 2023 11:28 am

Yesterdaysnews wrote: ↑Thu Feb 09, 2023 2:01 pm Now that trash is no longer trash - what percentage of the portfolio are people holding in cash or cash equivalents?

I'm starting to think 15% might be reasonable if 20+ years from retirement, since real yield can be had.

I never thought that cash was trash.
My cash is around $1K in currency $2-5K in checking, and $10-20K in a problem solving account paying out almost 4%.
What percentage? probably under one percent.
If I had 15% in cash, most would be in duration matched TIPS and nominal treasuries. Then I wouldn't count it as cash.
I would think that many portfolios could be converted to cash in 2 days.

Bottom line: I like just keeping operating expenses in cash.

What's a "problem solving account"?

I have a hard time keeping any significant amount of cash on hand, maybe $500 or so at a time. I invest whatever a make minus my credit-card bill. I'm sure I'll get burned by an unexpected expense one day.

CletusCaddy wrote: ↑Fri Feb 10, 2023 8:24 pm My wife & I have 20 financial accounts between the two of us. I keep track of them all on a spreadsheet. It works fine.

I could consolidate to 15 or so but that would involve rolling over old 401ks and being out of the market for certain period of time. And 15 is not materially different from 20.

an_asker wrote: ↑Fri Feb 10, 2023 4:15 pm

Pinacoladapopsicle wrote: ↑Fri Feb 10, 2023 3:57 pm Actually I just realized that my CDs are in a ladder, so it will be five years before I could actually close Marcus.

Am I doing something wrong? Why is my situation so insane?!?

We have about 15-20 accounts. I wouldn't worry about it if I were you, lol.

If I may piggyback on this thread with a question related to some of the conversation here: what do people think of the Toyota RAV4 hybrid vs the Lexus UX or NX hybrid? I'm also looking for a compact (not super-fancy) hybrid SUV. As best I can make out, the newer models of these vehicles get about 40 miles per gallon (a stat which matters to me), but I wonder what people's experiences have been driving them.

How about you spend nothing and don't get the $1,000 bonus, but also don't have $10,000 of debt?

All best, and thank you for your financial wisdom, Mr. Larimore!

Apathizer wrote: ↑Wed Jan 25, 2023 4:00 pm

mikejuss wrote: ↑Wed Jan 25, 2023 3:51 pm

UpperNwGuy wrote: ↑Wed Jan 25, 2023 3:45 pm I think the stock market is a better investment than real estate.

I'm genuinely perplexed by (or perhaps ignorant of) how it's possible that real estate, with all of its associated costs (property taxes, everyday maintenance, etc.), could be a better investment than stocks.

Unless someone has massive capital, it's practically impossible to be nearly as well diversified with real estate. Almost anyone can use one auto rebalancing fund to invest globally in stock, bonds, and real estate with little or no maintenance or oversight. Even if I had massive capital I wouldn't bother with direct real estate at all.

I feel the same way, but one hears so much about the upside of real estate that it almost sounds tempting.

UpperNwGuy wrote: ↑Wed Jan 25, 2023 3:45 pm I think the stock market is a better investment than real estate.

I'm genuinely perplexed by (or perhaps ignorant of) how it's possible that real estate, with all of its associated costs (property taxes, everyday maintenance, etc.), could be a better investment than stocks.

A recent article in the Wall Street Journal describes an investor named David Malm buying properties on Martha's Vineyard and Nantucket worth almost $100 million. (For those who can view it, here's a link to the article: https://www.wsj.com/articles/investor-buys-homes-nantucket-marthas-vineyard-11674675814.) One quotation jumped out at me: "'I don’t invest in the stock market,' said Mr. Malm, a private-equity investor in the healthcare sector." In what world is it advisable to forego investing in stocks in favor of real estate? I personally think Mr. Malm's approach to investing is highly risky, but I don't work in finance. What do other Bogleheads think? It would be interesting to know where he got the funds from to get into pr...

A recent article in the Wall Street Journal describes an investor named David Malm buying properties on Martha's Vineyard and Nantucket worth almost $100 million. (For those who can view it, here's a link to the article: https://www.wsj.com/articles/investor-buys-homes-nantucket-marthas-vineyard-11674675814.) One quotation jumped out at me: "'I don’t invest in the stock market,' said Mr. Malm, a private-equity investor in the healthcare sector." In what world is it advisable to forego investing in stocks in favor of real estate? I personally think Mr. Malm's approach to investing is highly risky, but I don't work in finance. What do other Bogleheads think? It would be interesting to know where he got the funds from to get into pr...

A recent article in the Wall Street Journal describes an investor named David Malm buying properties on Martha's Vineyard and Nantucket worth almost $100 million. (For those who can view it, here's a link to the article: https://www.wsj.com/articles/investor-b ... 1674675814.) One quotation jumped out at me: "'I don’t invest in the stock market,' said Mr. Malm, a private-equity investor in the healthcare sector."

In what world is it advisable to forego investing in stocks in favor of real estate? I personally think Mr. Malm's approach to investing is highly risky, but I don't work in finance. What do other Bogleheads think?

Wolveraider wrote: ↑Tue Jan 24, 2023 3:59 pm No, we don't have any other funds saved (or any investments) for retirement.

So you have nothing saved for your retirement? If not, I highly recommend you save every penny of this inheritance. Planning to live on Social Security alone is very risky.

tradez wrote: ↑Wed Jan 18, 2023 5:52 pm I’ve spent far too much time now reading about passive investing, and I’m very intrigued to pull the money out and invest it myself. Question I have is why the bank (and most other wealth managers) would invest in so many funds.

If you don't know the answer to this question, then you haven't spent "far too much time now reading about passive investing."

halbschatten wrote: ↑Wed Jan 18, 2023 1:21 pm Thanks to a somewhat unconventional career, I've worked for companies that often didn't provide 401ks and at salaries above the Roth IRA limits.

With regard to the Roth IRA, there are no income limits, OP. Check out the threads on this site dedicated to backdoor Roth IRA contributions. Start maxing out a Roth IRA account as soon as you can.

Depending on what you have saved up for retirement, OP, it may not be advisable for you to use most of the inheritance on travel.

ChiKid24 wrote: ↑Tue Jan 10, 2023 10:37 am

mikejuss wrote: ↑Tue Jan 10, 2023 9:21 am

ChiKid24 wrote: ↑Mon Jan 09, 2023 6:43 pm - W2 income for both of us hit $600k (up 30% Y/Y) as a result

Are you at $600,000 each, or as a household? Your wealth growth has been tremendous. Congrats!

Oops. I can see how that was confusing. It's combined income. Just edited. Thank you!

Holy mackerel. How much are you saving each year? Your NW jumps, year to year, are outstanding.

ChiKid24 wrote: ↑Mon Jan 09, 2023 6:43 pm - W2 income for both of us hit $600k (up 30% Y/Y) as a result

Are you at $600,000 each, or as a household? Your wealth growth has been tremendous. Congrats!

"Sedaka's Back," by Neil Sedaka. Good stuff...

The market does what it wants. We follow Bogleheads principles and hope for the best. I suppose it may be an interesting hypothetical then: if we can envisage situations in which the investment case for certain assets becomes tenuous, how flexible should one be with the original plan? With regards cash and bonds, I don't think we're talking about the market. I think we're talking about Fed policy. We've got a market that's principally trying to predict what the Fed will do. Real yields on bonds and cash would indicate that we've been in one of the world's worst recessions for the past 12 years. A main tenet of Boglehead-ism is that one cannot "envisage situations" with any degree of accuracy--and that trying to do so is a waste o...

Please explain how the "returns [are] locked in," OP?

Why do you want minute-by-minute info, OP, if, like a good Boglehead, you invest in stock-index funds? :wink: I am invested totally in popular index funds. But am keeping an eye on how bad the trend is. Some days it's up, some days it's down. That got me looking into "minute-by-minute" tracking and see that large, virtually instantaneous changes are responsible for the day-day fluctuations. Ideally the minute-by-minute indexes would be a smooth slope with very little ripple. But it is not smooth; there are rapid changes and I can't always determine why. I'm still unclear on why this matters to you. How close are you to retirement? If you own no bonds and are close to retirement, the issue isn't the stock market, it's your asset a...

Three words: just keep buying.

Why do you want minute-by-minute info, OP, if, like a good Boglehead, you invest in stock-index funds?

Hulu wrote: ↑Thu Jan 05, 2023 12:50 pm I'm six years out from the physical separation and two months removed from the legal conclusion.

May I ask: do you think the separation was worthwhile, or do you wish you'd reached the "legal conclusion" sooner?

Financially speaking, you didn't have $1M. You and your wife is entitled to half of that. So you had $500k. Market downturn made it $375k. After divorce, you still have $375k. As I have been saying, when you plan for your retirement with your spouse, double it. If your goal is $1M, get to $2M ($1M for you and $1M for your spouse). If you can't get to $2M, set your expectation that you don't have $1M, you only have 500k and your spouse has 500k. Strictly financially speaking. This strikes me as pretty conservative thinking, from a time when most wives were homemakers. Nowadays, things aren't so clear-cut; the split is rarely a clean 50-50 because often both partners work. As others have noted, OP, you should consult with a lawyer on these m...

One small thing, OP: you assume that, should you divorce your wife, you will lose 50% of your net worth. Isn't this true only if she has no savings herself? Does she have any?

Maybe the financial side of things isn't as grim as you think. Wishing you an amicable resolution in whatever form it takes.

Brother MFCL2750DW Monochrome All-in-One Wireless Laser Printer: I have one connected to my MacBook Pro through WiFi, and it works flawlessly.

One-year rate of return: -16.5%

Lifetime rate of return (since May 2017): +1.9%

You can do this with Sonos. Connect the equipment to a Sonos Port https://www.sonos.com/en-us/shop/port as part of a larger Sonos system. You would drop the Yamaha receiver and use a Sonos connect to drive your external wired speakers. Yes it gets expensive quickly. There are probably cheaper Bluetooth options. Interesting--so the Sonos port plugs into the receiver, and then Sonos speakers can be detected by the port and the receiver? Yes—you can connect the receiver directly to the Sonos Port and it adds the receiver to your Sonos system. Then you can have wireless Sonos speakers wherever you want. I have invested in a Sonos Port--but now I'm unclear: where on the Yamaha receiver does the audio cable from the Sonos connect into? Your rece...

Hi, folks-- I apologize if this question has been addressed before now, but I didn't find it using the Google search box. Is it possible to play non-streaming music (LPs and CDs) across multiple rooms with wireless speakers? My current receiver is a Yamaha R-N303. I have wired speakers connected to it, but would like to add another speaker, in another room, without drilling through the wall in order to pass a wire through it. You can do this with Sonos. Connect the equipment to a Sonos Port https://www.sonos.com/en-us/shop/port as part of a larger Sonos system. You would drop the Yamaha receiver and use a Sonos connect to drive your external wired speakers. Yes it gets expensive quickly. There are probably cheaper Bluetooth options. Intere...

the_wiki wrote: ↑Wed Dec 07, 2022 11:09 am For a single remote room, something like this should work: https://www.amazon.com/Wireless-Transmi ... B09MCGQ8S2

Thank you. I think this is where I got confused: my receiver is able to receive Bluetooth signals from my iPhone, but it isn't able to transmit a signal to a Bluetooth speaker. Thus the need for a Bluetooth transmitter (as well as Bluetooth speakers).

telemark wrote: ↑Wed Dec 07, 2022 10:42 am You don't need an adapter for the speakers you already have, you can still drive those directly from the Yamaha.

Interesting--so I can run my regular wired speakers, and add the adaptor and a powered speaker or two, all through the receiver?

Take a look at the Audioengine W3 . You will need powered speakers or else an amplifier on the receiving end. Disclaimer: I haven't used this product, but I have a pair of the A5+ speakers, and wouldn't exchange them for anything. This looks interesting, but how does it work--i.e., how does the adapter plug into the receiver and how are the speakers recognized by the adapter? The sending end connects to the line out on your Yamaha R-N303, using a cable like this . Now that I look again, I see that cable is already included. The receiving end has another mini jack that you would connect to the line input on your amplifier or powered speaker in the other room. You pair the two ends by pushing the pairing buttons, similar to Bluetooth pairing...

bwalling wrote: ↑Wed Dec 07, 2022 8:09 am

mikejuss wrote: ↑Wed Dec 07, 2022 7:53 am

bwalling wrote: ↑Wed Dec 07, 2022 7:44 am There are also other speakers you can get that will wire a transmitter into the surround or zone 2 connections on the back of your receiver and then it will transmit to a remote speaker in another room.

Thanks. Can you explain how that works?

Either your receiver supports Bluetooth (which your model appears to), or you get a Bluetooth transmitter (https://www.crutchfield.com/shopsearch/ ... tereo.html) and connect it to the speaker outs.

How does the pairing of the receiver and the speaker happen?

bwalling wrote: ↑Wed Dec 07, 2022 7:44 am There are also other speakers you can get that will wire a transmitter into the surround or zone 2 connections on the back of your receiver and then it will transmit to a remote speaker in another room.

Thanks. Can you explain how that works?

Hi, folks-- I apologize if this question has been addressed before now, but I didn't find it using the Google search box. Is it possible to play non-streaming music (LPs and CDs) across multiple rooms with wireless speakers? My current receiver is a Yamaha R-N303. I have wired speakers connected to it, but would like to add another speaker, in another room, without drilling through the wall in order to pass a wire through it. You can do this with Sonos. Connect the equipment to a Sonos Port https://www.sonos.com/en-us/shop/port as part of a larger Sonos system. You would drop the Yamaha receiver and use a Sonos connect to drive your external wired speakers. Yes it gets expensive quickly. There are probably cheaper Bluetooth options. Intere...

telemark wrote: ↑Tue Dec 06, 2022 9:48 pm Take a look at the Audioengine W3. You will need powered speakers or else an amplifier on the receiving end.

Disclaimer: I haven't used this product, but I have a pair of the A5+ speakers, and wouldn't exchange them for anything.

This looks interesting, but how does it work--i.e., how does the adapter plug into the receiver and how are the speakers recognized by the adapter?

Hi, folks-- I apologize if this question has been addressed before now, but I didn't find it using the Google search box. Is it possible to play non-streaming music (LPs and CDs) across multiple rooms with wireless speakers? My current receiver is a Yamaha R-N303. I have wired speakers connected to it, but would like to add another speaker, in another room, without drilling through the wall in order to pass a wire through it. You can do this with Sonos. Connect the equipment to a Sonos Port https://www.sonos.com/en-us/shop/port as part of a larger Sonos system. You would drop the Yamaha receiver and use a Sonos connect to drive your external wired speakers. Yes it gets expensive quickly. There are probably cheaper Bluetooth options. Intere...

Hi, folks--

I apologize if this question has been addressed before now, but I didn't find it using the Google search box. Is it possible to play non-streaming music (LPs and CDs) across multiple rooms with wireless speakers? My current receiver is a Yamaha R-N303. I have wired speakers connected to it, but would like to add another speaker, in another room, without drilling through the wall in order to pass a wire through it.

AK59 wrote: ↑Tue Nov 29, 2022 6:36 pm I invest a small percentage of my portfolio in single stocks, but that risk is very high and doesn't fit towards my goals.

I mean stock index funds, not individual stocks.

Why don't you invest in stocks, OP?

Auream wrote: ↑Fri Nov 18, 2022 11:20 am For those with a relatively high income but no backdoor Roth, who are maxing out their tax deferred space, I can see the appeal. But this seems like a very narrow slice of people (most people to not have enough income to realistically max out a 401k+IRAs and still have any money left over to save in a 529).

Um, it sounds like you haven't been here long.