Search found 1626 matches
- Thu Jan 23, 2025 12:29 pm
- Forum: Personal Finance (Not Investing)
- Topic: If you are a safe driver, how are you reducing car insurance costs?
- Replies: 36
- Views: 3361
Re: If you are a safe driver, how are you reducing car insurance costs?
In California insurers can offer discounts if you allow them to monitor the vehicle(s). Some people may not be frugal enough to agree to that. Not all insurers offer it, Progressive might be one example. Check with your broker to see if that's an option.
Check with other parents, but I think you will find these rates are typical for a 16 year old driver in California especially for a household where there is a car for her to drive. If she has an accident it will be much higher.
I think your next hope is the "student away at school" discount, presuming she does not take a car with her to college.
Good point about the monitoring vehicle. Can you get it monitored by driver? The kid drives 20 to 30 miles a week (to/from school) so it's ...
- Thu Jan 23, 2025 11:18 am
- Forum: Personal Finance (Not Investing)
- Topic: If you are a safe driver, how are you reducing car insurance costs?
- Replies: 36
- Views: 3361
Re: If you are a safe driver, how are you reducing car insurance costs?
Maybe I am misunderstanding things.
The teenager is assigned only to one car. The premium for that car did go up from $1200 to $2K a year. Will she affect the premiums of the other cars?
But you are right the Umbrella did go up about $200 so she cost $1K.
The sixteen year old cost about $800 a year. The biggest issue I think is that our insurer (state farms) seems to give very little discount to that we have not made any claims in 25+ years.
Who is your insurer Mike? Maybe there are others.
The sixteen year old cost about $800 a year. The biggest issue I think is that our insurer (state farms) seems to give very little discount to that we have not made any claims in 25+ years.
Who is your insurer Mike? Maybe there are ...
The teenager is assigned only to one car. The premium for that car did go up from $1200 to $2K a year. Will she affect the premiums of the other cars?
But you are right the Umbrella did go up about $200 so she cost $1K.
The sixteen year old cost about $800 a year. The biggest issue I think is that our insurer (state farms) seems to give very little discount to that we have not made any claims in 25+ years.
Who is your insurer Mike? Maybe there are others.
The sixteen year old cost about $800 a year. The biggest issue I think is that our insurer (state farms) seems to give very little discount to that we have not made any claims in 25+ years.
Who is your insurer Mike? Maybe there are ...
- Tue Jan 21, 2025 12:11 pm
- Forum: Personal Finance (Not Investing)
- Topic: If you are a safe driver, how are you reducing car insurance costs?
- Replies: 36
- Views: 3361
Re: If you are a safe driver, how are you reducing car insurance costs?
Regarding 2. Maybe I'm misunderstanding. The teen is only added to one car and that car's premium did go from $1200 to $2K a year. The teen doesn't list our other car premiums do they (also listed as $2K a year). I understand it does affect Umbrella insurance.dcabler wrote: Tue Jan 21, 2025 11:52 am I have to be reminded that every time I've gone through this exercise there are only a few "big knobs" I can turn.
1. Own fewer vehicles
2. No teen drivers
3. Vehicles old enough where the only insurance is liability
Most everything else I've looked at such as increasing deductibles, etc. have been for us, small knobs and not worth fiddling with.
YMMV.
- Tue Jan 21, 2025 12:09 pm
- Forum: Personal Finance (Not Investing)
- Topic: If you are a safe driver, how are you reducing car insurance costs?
- Replies: 36
- Views: 3361
Re: If you are a safe driver, how are you reducing car insurance costs?
Not quite. She is added to only one car and that premium jumped from $1200 to $2000 a year. What we don't understand is why the other cars cost the same to insure. We are essentially paying 10% of the car value each year and haven't used a policy for 20+ years.hoofaman wrote: Tue Jan 21, 2025 12:07 pm Isn't most/all of your increase attributable to the teen driver being recently added to the policy? If you don't have an umbrella it might be a good idea to consider one as well
For the teen driver, look into available discounts. For us the "good student" discount lowered premium by 25% which was signifiant for us, there are others as well
- Tue Jan 21, 2025 12:08 pm
- Forum: Personal Finance (Not Investing)
- Topic: If you are a safe driver, how are you reducing car insurance costs?
- Replies: 36
- Views: 3361
Re: If you are a safe driver, how are you reducing car insurance costs?
If your broker did a good job, then there is not much to do. Ask your current carrier if there are additional things you can do. The 16 year old is likely your biggest cost.
Our combined insurance package is up maybe 10% total over the last five years. I do have a 39 year continuous history with a single insurance company with a hefty discount as well as always placing the most expensive car on the oldest policy line. So we have a 2 year old truck on a 39 year old accident free policy history. It still seems like a lot but nobody can beat the rates we get when comparison shopping.
The sixteen year old cost about $800 a year. The biggest issue I think is that our insurer (state farms) seems to give very little discount to that we have ...
- Tue Jan 21, 2025 11:30 am
- Forum: Personal Finance (Not Investing)
- Topic: If you are a safe driver, how are you reducing car insurance costs?
- Replies: 36
- Views: 3361
If you are a safe driver, how are you reducing car insurance costs?
So we just got the renewal premiums for our three cars: nothing fancy 2 x 2020 cars worth $30K when new and a 2023 EV worth $50K when brand new.
All three cars cost $2K+ *each* per year in insurance premiums up about 100% from 2020. We shopped around with a broker and have the best rates.
Sure, there are some caveats (our 16 year old kid is a driver) and our limits are very high 250k/500k. But we've not had a car insurance claim in 25+ years and the kid drives all of 10 mile a week (to/from school).
Any suggestions on how to reduce car insurance? Can you reduce the coverage but increase Umbrella insurance?
[Edit. We are Northern California so MCOL area]
All three cars cost $2K+ *each* per year in insurance premiums up about 100% from 2020. We shopped around with a broker and have the best rates.
Sure, there are some caveats (our 16 year old kid is a driver) and our limits are very high 250k/500k. But we've not had a car insurance claim in 25+ years and the kid drives all of 10 mile a week (to/from school).
Any suggestions on how to reduce car insurance? Can you reduce the coverage but increase Umbrella insurance?
[Edit. We are Northern California so MCOL area]
- Sun Jan 19, 2025 3:10 pm
- Forum: Personal Investments
- Topic: Gifting Shares (To a Child or Someone/Thing Else) Without Capital Gains?
- Replies: 15
- Views: 1750
Re: Gifting Shares (To a Child or Someone/Thing Else) Without Capital Gains?
Thanks. The note I got said they have to be divested from husband and wife. It said nothing about children or brothers or sisters or other relativesGrt2bOutdoors wrote: Sun Jan 19, 2025 3:03 pmEven if the children are not minors, they are not likely to be viewed as disinterested parties. particularly if the parent can influence their decision making process. The OP should ask the organization if divesting to an interested party such as a child/adult child is considered a complete divestiture.TA_Lurker wrote: Sun Jan 19, 2025 2:58 pm
Are your children minors? If yes, this probably won’t pass the smell test for your employer if you control these accounts...
- Sun Jan 19, 2025 3:10 pm
- Forum: Personal Investments
- Topic: Gifting Shares (To a Child or Someone/Thing Else) Without Capital Gains?
- Replies: 15
- Views: 1750
Re: Gifting Shares (To a Child or Someone/Thing Else) Without Capital Gains?
No they can keep them and use them while they're in college or somethinggatorking wrote: Sun Jan 19, 2025 2:53 pm Maybe the child gift the shares back after the consultancy gig?
- Sun Jan 19, 2025 1:15 pm
- Forum: Personal Investments
- Topic: Gifting Shares (To a Child or Someone/Thing Else) Without Capital Gains?
- Replies: 15
- Views: 1750
Re: Gifting Shares (To a Child or Someone/Thing Else) Without Capital Gains?
gifting stocks with unrealized gain normally passes the basis and tax liability to the recipient. Of course, if the recipient is a charity, it doesn't pay taxes so it becomes a tax-free gain for them. For anyone else, the tax consequence of the gain you give them depends on what they do with the security and other aspects of their tax return. They can avoid the tax by holding it until they give it away or by dying. They do not get a "step up" unless you die and they inherit it.
Thanks, but to be clear I pay no capital gains now and the kid will only pay them when they sell the stock?
That works, I really don't want to sell the stock.
Also, how does one logistially do this? The stock is at Schwab, the kid's accounts are at Fidelity.
- Sat Jan 18, 2025 12:30 pm
- Forum: Personal Investments
- Topic: Gifting Shares (To a Child or Someone/Thing Else) Without Capital Gains?
- Replies: 15
- Views: 1750
Gifting Shares (To a Child or Someone/Thing Else) Without Capital Gains?
So I have the opportunity to do a consultancy. It's a nice 1 month gig that pays very well, but I don't need the money. It would also be fun.
But the organization is asking me to divest of several stocks (they are in the area they operate in). The challenge is I bought some of these stock back in 2020 so am sitting on 200+% capital gains. Indeed the capital gains tax would be almost half the consultancy fee.
Can I gift these shares to my children without any tax consequences. Kind of like a 1031 Step up basis but for stocks?
But the organization is asking me to divest of several stocks (they are in the area they operate in). The challenge is I bought some of these stock back in 2020 so am sitting on 200+% capital gains. Indeed the capital gains tax would be almost half the consultancy fee.
Can I gift these shares to my children without any tax consequences. Kind of like a 1031 Step up basis but for stocks?
- Tue Jan 14, 2025 10:59 am
- Forum: Personal Investments
- Topic: Buying Undervalued Bond Funds As A Buy And Hold for 10 Year Investment?
- Replies: 4
- Views: 469
Buying Undervalued Bond Funds As A Buy And Hold for 10 Year Investment?
I have 90% of my portfolio in stock ETFs. And to be quite honest though I'm happy their valuation is a bit scary right now.
To diversify and also as a good long term buy and hold I was thinking of venturing into buying a bond ETF and holding it for 10+ years. In particular TLT (https://seekingalpha.com/symbol/TLT) which buys and holds 20+ year treasuries.
TLT is currently yielding 4.4% and is down 50% from it's highs in 2020 (before inflation kicked in). My thoughts are I don't mind waiting for a few years and getting 4% return and then when inflation gets under control I'll get a NAV increase and can sell it when I retire for income.
To diversify and also as a good long term buy and hold I was thinking of venturing into buying a bond ETF and holding it for 10+ years. In particular TLT (https://seekingalpha.com/symbol/TLT) which buys and holds 20+ year treasuries.
TLT is currently yielding 4.4% and is down 50% from it's highs in 2020 (before inflation kicked in). My thoughts are I don't mind waiting for a few years and getting 4% return and then when inflation gets under control I'll get a NAV increase and can sell it when I retire for income.
- Fri Jan 10, 2025 9:56 am
- Forum: Personal Finance (Not Investing)
- Topic: Asset Protection in California
- Replies: 15
- Views: 2414
Asset Protection in California
I saw the excellent thread on asset protection in MA. After reading thru it, it seems this issue is very state specific? I say that because someone mentioned in that thread moving to NH would solve all the OP problems.
Anyway, can people chime in regarding assset protection in CA w.r.t. to these three questions and other questions I should be asking?
Q1. What are the main threats to assets in CA. Is it just civil law suits or is there something else? If it's civil lawsuits is it mainly going to be personal injury
Q2. What federal and CA protections automatically exist and what do they mean in practice.
a) Main home. I believe there is a homestead act to cover this in CA upto $600K. But what does this mean if most homes in CA are closer ...
Anyway, can people chime in regarding assset protection in CA w.r.t. to these three questions and other questions I should be asking?
Q1. What are the main threats to assets in CA. Is it just civil law suits or is there something else? If it's civil lawsuits is it mainly going to be personal injury
Q2. What federal and CA protections automatically exist and what do they mean in practice.
a) Main home. I believe there is a homestead act to cover this in CA upto $600K. But what does this mean if most homes in CA are closer ...
- Fri Jan 10, 2025 9:27 am
- Forum: Personal Investments
- Topic: Which Broker/Investment Company Offers The Best Protection Against Fund Theft/Mis-Use and Mitigation Strategies?
- Replies: 1
- Views: 501
Re: Which Broker/Investment Company Offers The Best Protection Against Fund Theft/Mis-Use and Mitigation Strategies?
It looks like there has been quite a few changes in the last few years.
I'll partially answer my own question.
Schwab has a very clear and strong policy closest to a Visa-style no-fault policy.
"Schwab will cover losses in any of your Schwab accounts due to unauthorized activity."
https://www.schwab.com/schwabsafe/security-guarantee
Fidelity has a good one as well.
"Fidelity will reimburse you for losses from unauthorized activity in your Covered Accounts occurring through no fault of your own."
https://www.fidelity.com/security/customer-protection-guarantee
Vanguard's one has some exclusions. In particular doesn't cover 529 and annuitiies and seems to put stronger hurdles on you in terms of password protection etc.
https://investor ...
I'll partially answer my own question.
Schwab has a very clear and strong policy closest to a Visa-style no-fault policy.
"Schwab will cover losses in any of your Schwab accounts due to unauthorized activity."
https://www.schwab.com/schwabsafe/security-guarantee
Fidelity has a good one as well.
"Fidelity will reimburse you for losses from unauthorized activity in your Covered Accounts occurring through no fault of your own."
https://www.fidelity.com/security/customer-protection-guarantee
Vanguard's one has some exclusions. In particular doesn't cover 529 and annuitiies and seems to put stronger hurdles on you in terms of password protection etc.
https://investor ...
- Tue Jan 07, 2025 4:12 pm
- Forum: Personal Investments
- Topic: Need Some Help - The Mechanics of a Roth Conversion From a Tax Deferred Account?
- Replies: 3
- Views: 404
Need Some Help - The Mechanics of a Roth Conversion From a Tax Deferred Account?
Does anyone have any experience or pointers to this from a variety of tax deferred sources that I have:
a) 457b/403b held at Fidelity
b) 403a held at TIAA-Cref
c) SEP IRA held at Vanguard.
I only have a Roth set up at Fidelity. Can I do a conversion from say the TIAA-Cref 401a account to the Fidelity account? Is the conversion a paperless transaction or do I literally get a check that I the have to deposit in the Roth account.
Also, a) and b) have very strong limits on the funds I can hold in them (i.e. no individual stocks, no CEF no ETFs even). Once I do the roll-over do those limitations go away?
a) 457b/403b held at Fidelity
b) 403a held at TIAA-Cref
c) SEP IRA held at Vanguard.
I only have a Roth set up at Fidelity. Can I do a conversion from say the TIAA-Cref 401a account to the Fidelity account? Is the conversion a paperless transaction or do I literally get a check that I the have to deposit in the Roth account.
Also, a) and b) have very strong limits on the funds I can hold in them (i.e. no individual stocks, no CEF no ETFs even). Once I do the roll-over do those limitations go away?
- Tue Jan 07, 2025 9:44 am
- Forum: Personal Investments
- Topic: Which Broker/Investment Company Offers The Best Protection Against Fund Theft/Mis-Use and Mitigation Strategies?
- Replies: 1
- Views: 501
Which Broker/Investment Company Offers The Best Protection Against Fund Theft/Mis-Use and Mitigation Strategies?
Like most of us here I'm counting on my retirement accounts to be there. With things like ID theft and even simple embezzlement rising this raises the real concern of money being stolen from retirement accounts.
Q1) Has anyone done a recent deep dive to determine if any of the broker/investment companies have better protection? Ideally, you'd want a "visa-style" protection where they make you whole if the transaction was fraudulent (i.e ID theft) and even due to your own error (i.e. Lost credit card gets mis-used) if reported in a timely fashion. When I looked at this a few years ago, it wasn't clear at all if any stood out and infact it was quite alarming that most had clauses that said if your account is hacked then it's probably your ...
Q1) Has anyone done a recent deep dive to determine if any of the broker/investment companies have better protection? Ideally, you'd want a "visa-style" protection where they make you whole if the transaction was fraudulent (i.e ID theft) and even due to your own error (i.e. Lost credit card gets mis-used) if reported in a timely fashion. When I looked at this a few years ago, it wasn't clear at all if any stood out and infact it was quite alarming that most had clauses that said if your account is hacked then it's probably your ...
- Fri Jan 03, 2025 9:59 am
- Forum: Personal Investments
- Topic: New Money - Value or Growth For the Next 10+ years? What Funds To Execute With?
- Replies: 7
- Views: 539
Re: New Money - Value or Growth For the Next 10+ years? What Funds To Execute With?
Right. The latest round of AI tools is nothing short of spectacular.visualguy wrote: Fri Jan 03, 2025 9:57 amHighly valued is not the same as over-valued. Growth companies have been producing technologies and products which have been world-changing, and all signs are that they will continue to do so.MrCheapo wrote: Fri Jan 03, 2025 9:43 am
Perhaps, if you believe in reversion to the mean, then value has to eventually come back because growth is over-valued right now.
- Fri Jan 03, 2025 9:43 am
- Forum: Personal Investments
- Topic: New Money - Value or Growth For the Next 10+ years? What Funds To Execute With?
- Replies: 7
- Views: 539
Re: New Money - Value or Growth For the Next 10+ years? What Funds To Execute With?
Perhaps, if you believe in reversion to the mean, then value has to eventually come back because growth is over-valued right now.visualguy wrote: Fri Jan 03, 2025 9:39 amLooks like you answered well your own question.MrCheapo wrote: Fri Jan 03, 2025 9:27 am
Right. It seems for the last 20+ years growth has really trounced value. Predominantly as computers/AI/tech are all growth companies and their growth is cheap (i.e. no need for more bricks and mortar stores).
- Fri Jan 03, 2025 9:27 am
- Forum: Personal Investments
- Topic: New Money - Value or Growth For the Next 10+ years? What Funds To Execute With?
- Replies: 7
- Views: 539
Re: New Money - Value or Growth For the Next 10+ years? What Funds To Execute With?
Right. It seems for the last 20+ years growth has really trounced value. Predominantly as computers/AI/tech are all growth companies and their growth is cheap (i.e. no need for more bricks and mortar stores).
- Fri Jan 03, 2025 8:58 am
- Forum: Personal Investments
- Topic: New Money - Value or Growth For the Next 10+ years? What Funds To Execute With?
- Replies: 7
- Views: 539
New Money - Value or Growth For the Next 10+ years? What Funds To Execute With?
I've got a few more years of contributing to my tax advantaged funds and was tossing up between tilting towards value or growth.
Q1: Value Vs Growth
To me it seems like a no-brainer to tilt towards value because:
1) Historically Value has outperforemd Growth. As per this article, since 1927 on average value has out-performed growth by 4.4% each year (on average). https://www.dimensional.com/ca-en/insights/when-its-value-versus-growth-history-is-on-values-side
2) However, in the last decade growth has kiled value. https://www.gurufocus.com/economic_indicators/4528/annualized-return-difference-between-russell-1000-value-and-growth
So it seems inevitable that value funds will stage a comback.
What Funds
Fortunately with value ...
Q1: Value Vs Growth
To me it seems like a no-brainer to tilt towards value because:
1) Historically Value has outperforemd Growth. As per this article, since 1927 on average value has out-performed growth by 4.4% each year (on average). https://www.dimensional.com/ca-en/insights/when-its-value-versus-growth-history-is-on-values-side
2) However, in the last decade growth has kiled value. https://www.gurufocus.com/economic_indicators/4528/annualized-return-difference-between-russell-1000-value-and-growth
So it seems inevitable that value funds will stage a comback.
What Funds
Fortunately with value ...
- Tue Nov 05, 2024 3:44 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone else suffering from paralysis when making financial decisions on large discretionary purchases?
- Replies: 51
- Views: 3883
Re: Anyone else suffering from paralysis when making financial decisions on large discretionary purchases?
Ah, you mean, buy the bargins? That matches my philosophy (and name).rockstar wrote: Tue Nov 05, 2024 3:42 pm My last car went over 150k miles, and I started looking. Took me about three months to figure out what I wanted. I used age and mileage as my guide.
I’m buying a new TV this week because it hit my price point.
Using quantitative measures removes the guess work for me.
- Tue Nov 05, 2024 3:44 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone else suffering from paralysis when making financial decisions on large discretionary purchases?
- Replies: 51
- Views: 3883
Re: Anyone else suffering from paralysis when making financial decisions on large discretionary purchases?
But I can't make the decision on which car to get and when I think I have a car in mind, I can't pull the trigger. The challenge is that the problem is not well defined (unlike say your roof fell in and you need it replaced) and finding the optimum decision is near impossible (how to decide on the best car after test driving each for 10 minutes and then buying one to hold for 10 years)! Further, there is always a trivial solution (don't buy a luxury car, just rent one as needed, let the kids use Uber etc.).
Post on here your wants and budget and you’ll get a lot of ideas. There are many car people on here.
Okay, but to warn you I've test driven literally 20+ cars.
My needs are inline with a premium but not luxury cars that ...
- Tue Nov 05, 2024 3:29 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone else suffering from paralysis when making financial decisions on large discretionary purchases?
- Replies: 51
- Views: 3883
Re: Anyone else suffering from paralysis when making financial decisions on large discretionary purchases?
Yes, the money is completely discretionary. I'm in one of those enviable solutions where my pension will cover all my retire expenditures so funds are not the issue.KlangFool wrote: Tue Nov 05, 2024 3:23 pm OP,
A) I am not a car person. I am not interested in luxury car. We reduced from two cars to one.
B) I spent 8K on an electric cargo bike and 2K on a coffee roaster. That were my luxury spendings.
C) I have no problem spending that money because it is part of the discretionary portion of my annual expense. Not other explicit action is needed.
D) Can you buy the car as part of your annual expense?
KlangFool
I'm curious how did you decide what coffee roaster and bike to buy? Aren't there lots of options there as well?
- Tue Nov 05, 2024 3:27 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone else suffering from paralysis when making financial decisions on large discretionary purchases?
- Replies: 51
- Views: 3883
Re: Anyone else suffering from paralysis when making financial decisions on large discretionary purchases?
Yes I can afford it. The challenge is understanding what makes you happy? I can write it down (nice stereo, good handling, quiet cabin etc) but finding the best solution is hard because you test drive a car for 10 minutes and then buy it and own it for 10 years!smitcat wrote: Tue Nov 05, 2024 3:22 pm If you can afford it and it makes you happy or less stressful just buy it.
That is how we make these decisions.
- Tue Nov 05, 2024 3:19 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone else suffering from paralysis when making financial decisions on large discretionary purchases?
- Replies: 51
- Views: 3883
Anyone else suffering from paralysis when making financial decisions on large discretionary purchases?
I've made some momentous decisions in my life with relative ease: i) eloping, ii) moving to a foreign country, iii) giving up a lucrative career to follow my passion etc.
But lately I've been suffering from paralysis when making some financial decisions on large discretionary items. I'll give you one example and I'd really appreciate feedback on how to deal with this.
My wife and I have have two newish cars in total. Our two kids have just gotten their licenses and so far we just share the two cars. It's a bit inconvenient some times but mostly it works with minimal waiting as my wife and I tele-work most of the week.
So I figured why not give one of our cars to the kids to share and I'll buy a nice luxury one. I moved the money from ...
But lately I've been suffering from paralysis when making some financial decisions on large discretionary items. I'll give you one example and I'd really appreciate feedback on how to deal with this.
My wife and I have have two newish cars in total. Our two kids have just gotten their licenses and so far we just share the two cars. It's a bit inconvenient some times but mostly it works with minimal waiting as my wife and I tele-work most of the week.
So I figured why not give one of our cars to the kids to share and I'll buy a nice luxury one. I moved the money from ...
- Tue Oct 29, 2024 8:59 am
- Forum: Personal Finance (Not Investing)
- Topic: Are There Guard Rails In Place To Prevent a Great Depression Style Collapse?
- Replies: 9
- Views: 1022
Are There Guard Rails In Place To Prevent a Great Depression Style Collapse?
LIke many of you I've heavily invested in the stock market (I would estimate 80% of net worth) and my pension also heavily relies on the stock market health.
My investments are of course diversified across small/mid/large caps (15/25/60) and international/domestic (20/80) but I carry very little bonds as my pension plan covers my annual retirement expenses by 100% and when social security kicks in 15 years my pension + SS will be 150% of my annual expenses.
But if there is a chance of losing 50%+ (like during the Great Depression) in the next 25+ years I may move some money to bonds.
So what guard rails are in place? I understand the currency is no longer tied to gold which it was not during the great depression which caused severe ...
My investments are of course diversified across small/mid/large caps (15/25/60) and international/domestic (20/80) but I carry very little bonds as my pension plan covers my annual retirement expenses by 100% and when social security kicks in 15 years my pension + SS will be 150% of my annual expenses.
But if there is a chance of losing 50%+ (like during the Great Depression) in the next 25+ years I may move some money to bonds.
So what guard rails are in place? I understand the currency is no longer tied to gold which it was not during the great depression which caused severe ...
- Thu Oct 10, 2024 7:15 am
- Forum: Personal Investments
- Topic: Does any fund mirror this strategy?
- Replies: 9
- Views: 1031
Does any fund mirror this strategy?
Over the last four years I've been following this strategy.
a) Look for individual stocks of large-cap iconic companies that are undervalued due to being out of favor for some temporary reason
b) Buy and hold them.
Some recent examples of my buys include: MMM, Pfizer (PFE), Roche Pharm (RHHBY), PayPal. I'll probably buy Boeing (BA) soon as well.
So far this strategy has worked quite well and I've accumulated about 50+ stocks but I'm sure a professional fund manager could do the same thing better and it will save me time.
However, I think most value funds don't do b) and instead sell once technicals improve.
Further most value funds are passive. Where as I do look beyond financials and so some simple analysis looking at the reason ...
a) Look for individual stocks of large-cap iconic companies that are undervalued due to being out of favor for some temporary reason
b) Buy and hold them.
Some recent examples of my buys include: MMM, Pfizer (PFE), Roche Pharm (RHHBY), PayPal. I'll probably buy Boeing (BA) soon as well.
So far this strategy has worked quite well and I've accumulated about 50+ stocks but I'm sure a professional fund manager could do the same thing better and it will save me time.
However, I think most value funds don't do b) and instead sell once technicals improve.
Further most value funds are passive. Where as I do look beyond financials and so some simple analysis looking at the reason ...
- Fri Sep 20, 2024 5:50 pm
- Forum: Personal Finance (Not Investing)
- Topic: Windfall Elimination Program (WEP) for Social Security Applicable To Small Foreign Pensions?
- Replies: 5
- Views: 953
Re: Windfall Elimination Program (WEP) for Social Security Applicable To Small Foreign Pensions?
My very first job was in another country (which I'm also a citizen off and has a tax treaty with the US). I have two options with the retirement benefits of that job:
a) Take the defined benefit as a pension of about US$10K a year.
b) Take a lump sum of about US170K a year. ...
The SS WEP screening tool has this hard to parse question:
"Are you entitled to, or eligible for, both a U.S. Social Security benefit and a foreign pension not based on employment before January 1, 1986?"
"Pension" refers to the equivalent of Social Security in other countries. For example, the British equivalent of Social Security is called the State Pension. The United States is one of the few countries that doesn't call it a pension.
The question is ...
- Tue Sep 10, 2024 4:16 pm
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
But the way I see it, I am accumulating, for the next generation just not me.Claudia Whitten wrote: Tue Sep 10, 2024 12:06 pm In retirement, for me, it's about asset preservation, not accumulation. That's a young person's game.
- Tue Sep 10, 2024 4:15 pm
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
Fair question. Pensions will be $120K a year so if we live until 80 will net us $3M in today dollars (pensions are COLAed). Our current investments are above $5M but below $10M (hard to measure accurately). So yes, I would go 100% in stocks because if you treat the pension as a bond in the best case I'm 75/25 Stock/Bonds.Retirement Nerd wrote: Tue Sep 10, 2024 12:43 pm I am no expert in finance or human behavior, but I wonder if you calculated the present value of your pensions and added it to your portfolio value, in that scenario would you still invest 100% in equities?
But as I stated in the OP, the caveat is that pension fund can go under.
- Tue Sep 10, 2024 4:12 pm
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
So I'm curious. If you do not need your RMDs why are you at 50/50?friar1610 wrote: Tue Sep 10, 2024 12:29 pmjebmke wrote: Mon Sep 09, 2024 9:00 am We are at 50/50. My pension + our SS cover our normal expenses. I'm no longer re-balancing on the upside so equity will rise naturally. I really should put all our funds on dividend reinvestment, mainly to eliminate cash build up. I could actively go higher equity but finally decided that we are getting compensated fairly for the investments we have and they are ultra-low cost. When RMDs start we will be shoveling funds out the door so fixed income will start to drop naturally.
Very close to our situation except that we’re drawing RMDs (which are banked or given to charity). 50-50 suits us just fine at 79/78.
- Tue Sep 10, 2024 12:06 pm
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
I understand your point. Do you hold actual bonds or bond funds. Because bond funds can be voltaile. I have a variety of different funds (small/mid/large cap) vs growth/value/balanced and I was going to pull from what-ever one is fairly valued to cover the emergency costs you mention.rockstar wrote: Mon Sep 09, 2024 4:57 pm I’m still of the mindset to not go above 90%. That gives you a couple of years in expenses in bonds, which should cover emergency home repairs or big items like HVAC and roof.
- Tue Sep 10, 2024 12:04 pm
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
Ms Cheapo and I just got nice pay increases which push our pensions above *all* our retirement expenses (including health care) by about 10%. Both our pensions are COLAed and our retirement expenses are very generously estimated. We'll retire in our early 50s and take social security at 67 which will give us another 50% expense cushion.
Given that, I've decided to go with a 100% Stock Asset Alloocation being 80% domestic and 20% international with a medium sized tilt to small/medium caps. I think that will give us the largest potential return given we are unlikely to touch the stocks until well into our 70s when we may need LTC (we are self insuring) or paying for grand kids tuition etc.
The caveat is that we are in California and the ...
- Mon Sep 09, 2024 12:39 pm
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
I don't trust my kids with money, I won't count on them to care for me later in life, and I really don't even expect them to outlive me. If they get anything it would have to be via trust and doled out over time, to protect from creditors, predators and their own bad behavior.
"I don't trust my kids with money, I won't count on them to care for me later in life, and I really don't even expect them to outlive me"
This summarizes your choice well....it does not apply to everyone.
To be fair to @popoki I think a lot of people believe in the first two to some degree. And I don't think it's necessarily the results of parenting. Modern society teaches our kids all sorts of values that don't align with our generation's.
But I have to ...
- Mon Sep 09, 2024 9:43 am
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
This is my biggest concern that the pension fund goes belly up. But you are investing like with a 100% chance it will, is that right?the_wiki wrote: Mon Sep 09, 2024 9:04 am My pension should cover my expenses, but I'm investing like it won't. Never know what can happen.
Also if you don't need more money, why take more risk? What's the end goal here? More money you won't spend?
I'm putting it more like a 5% chance of 75% of our pension (my part) going away. Why? Because my wife's part (25%) is covered by the California Rule and I work for a huge pseudo government entity.
- Mon Sep 09, 2024 8:57 am
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
Mr. Cheapo, youve been around here a while. I can sorta imagine you in real life……
Although you don’t need your portfolio, it seems likely to me that will be despondent if it loses 50% someplace along the way. Does that make sense? Will you be kicking yourself if that happens?
Other than emotional impacts, I see no reason not be 100% equities in your situation. Although 70/30 gives a great return with a lot less volatility.
@Normchat. I'd be very interested in hearing your thoughts on what I am like in real life. Please do shoot me a DM on this. I'd be fascinated to read it.
Going back to your astute question, I'm thinking of it from the perspective of the kids. If they inherit $5M vs $10M will there be despondent. I doubt it as it ...
- Mon Sep 09, 2024 8:45 am
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
55M 58F retired. 1 pension with COLA. Our pension covers our regular monthly expenses with surplus of about $2k a month. Our brokerage is our fallback to cover lumpy expenses, big trips , larger purchases , remodels, roth conversion taxes etc. IRAs untouched and probably will remain so for quite a while.
Our current asset allocation post-retirement is 85% Equities , 10% intermediate Treasuries, 5% short treasuries. TBH Im second guessing this allocation. I'm seriously considering increasing bond allocation by at least 10% maybe more and continuing to ramp it up into our 60s.
One factor is the projections and monte carlo modeling is throwing out some ridiculous high numbers for our 60's, 70, 80s, even with conservative return estimates ...
- Mon Sep 09, 2024 8:42 am
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
Same situation, in our mid 60’s.
The pension and SS can act as a standin for bonds, in my mind. So we allocate almost 100% to equities. 65% S&P/Total Stock Mkt, 10% Mid Cap, 10% Small Cap, some International, some individual stock picks, 7% 2025 Target Date Fund, 2% Bonds and 1% Money Mkt Funds.
This has worked out well over a long time period. But we don’t need much to be content. Simple living with the protection of a large war chest is our sweet spot. I think that helps me let the money run, trusting in a continuation of strong macro-economic forces over time. We’ve been through some big market downturns and we’re comfortable doubling down on buying more equities when that happens. It’s worked well for us, and we’re unconcerned ...
- Mon Sep 09, 2024 8:40 am
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
Same situation, but at 40/60 and the 40 is entirely U.S.
If you've won the game, why keep playing?
Who’s in the game? I’m at 95/5 and my children are in the on-deck circle, and we feel we’re investing for them since our pensions and SS cover all living expenses, including travel and gifting, and we have LTC covered. Our 5% is in cash, which gets supplemented by savings from our pensions and SS.
Inherited wealth typically gets blown quickly. Maybe your kids will be the exception. I'm not interested in enriching descendants such that they don't have to work and contribute to society. They'll get something via trust in periodic payments and the rest goes to charity.
Yeah, that sounds a bit unusual. Don't make lots of money ...
- Mon Sep 09, 2024 8:38 am
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
Fair question.popoki wrote: Sun Sep 08, 2024 1:56 pm Same situation, but at 40/60 and the 40 is entirely U.S.
If you've won the game, why keep playing?
The way I see it. I have won the game due to the pensions. I'm playing the game for my heirs and if my aggressive investing comes off it produces generational wealth otherwise it just sets up the next generation nicely.
- Mon Sep 09, 2024 8:37 am
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Re: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
We retired at 56, two pensions, and slowly reduced our AA to 65/35. We are using the fixed income to pay taxes on Roth conversions using cash and for lumpy expenses. We started with 2/3rds of the portfolio in tax deferred. We are not rebalancing. I guess you would say we are going with a reverse glide slope since we are not balancing unless there is a big market crash.
Our kids are both 100% equities, but that is a bit too extreme for us as a retiree. Plus Mrs Wiggums would never approve of your allocation. You can still make a bigger pile of cash with some fixed income in your portfolio. We also use extra cashflow to buy more stock to give to our children.
But did the pensions cover your annual expenses? If so why not go more ...
- Sun Sep 08, 2024 1:01 pm
- Forum: Personal Investments
- Topic: Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
- Replies: 91
- Views: 7773
Going to a 100% Stock Asset Allocation Due to Nice Pension - Anyone else doing this?
Ms Cheapo and I just got nice pay increases which push our pensions above *all* our retirement expenses (including health care) by about 10%. Both our pensions are COLAed and our retirement expenses are very generously estimated. We'll retire in our early 50s and take social security at 67 which will give us another 50% expense cushion.
Given that, I've decided to go with a 100% Stock Asset Alloocation being 80% domestic and 20% international with a medium sized tilt to small/medium caps. I think that will give us the largest potential return given we are unlikely to touch the stocks until well into our 70s when we may need LTC (we are self insuring) or paying for grand kids tuition etc.
The caveat is that we are in California and the ...
Given that, I've decided to go with a 100% Stock Asset Alloocation being 80% domestic and 20% international with a medium sized tilt to small/medium caps. I think that will give us the largest potential return given we are unlikely to touch the stocks until well into our 70s when we may need LTC (we are self insuring) or paying for grand kids tuition etc.
The caveat is that we are in California and the ...
- Fri Sep 06, 2024 2:02 pm
- Forum: Investing - Theory, News & General
- Topic: Careers in Investing/Finance/Business etc. Can Someone Point To a Nice List?
- Replies: 19
- Views: 2163
Re: Careers in Investing/Finance/Business etc. Can Someone Point To a Nice List?
Thanks for the informed answer. I did notice, though, that many people involved in the management of companies went to far from elite universities. So is it fair to say that in IB you need an elite degree but it's not necessary for other areas?
What skills or interests do they have?
Math, current events/debate being vaguely tied into economics, foreign languages, soft skills (sales/managment). High risk taker or not?
The Vault Guides are (were) useful.
One thing that one should be wary of. Jobs in investment banking or asset management, say, sound glamorous (nobody normal who has spent 2 years as an IB analyst thinks it is "glamour". In fact in business school, they were all trying to find an alternate career to get out of IB - I ...
What skills or interests do they have?
Math, current events/debate being vaguely tied into economics, foreign languages, soft skills (sales/managment). High risk taker or not?
The Vault Guides are (were) useful.
One thing that one should be wary of. Jobs in investment banking or asset management, say, sound glamorous (nobody normal who has spent 2 years as an IB analyst thinks it is "glamour". In fact in business school, they were all trying to find an alternate career to get out of IB - I ...
- Thu Sep 05, 2024 6:44 pm
- Forum: Investing - Theory, News & General
- Topic: Careers in Investing/Finance/Business etc. Can Someone Point To a Nice List?
- Replies: 19
- Views: 2163
Re: Careers in Investing/Finance/Business etc. Can Someone Point To a Nice List?
@Sandtrap Thanks for the detailed reply. They are just exploring so wanted a long list of potential careers. Something at the Investopedia level (i.e. conceptual) would be ideal but I didn't find anything.
Thanks again.
Thanks again.
- Thu Sep 05, 2024 5:37 pm
- Forum: Investing - Theory, News & General
- Topic: Careers in Investing/Finance/Business etc. Can Someone Point To a Nice List?
- Replies: 19
- Views: 2163
Careers in Investing/Finance/Business etc. Can Someone Point To a Nice List?
So I have a kid who is interested in a career involving money. But no one in our family or our friends works in the area. Can someone point to a list they can explore and ideally add some commentary on what careers are likely to grow in the next decade or so?
I wanted something broad to include not even the retail side such as investment advisors (whom we adore
) but also other careers such as those involved in running a company and even analysts.
I wanted something broad to include not even the retail side such as investment advisors (whom we adore

- Thu Sep 05, 2024 9:36 am
- Forum: Personal Investments
- Topic: Can I afford to retire at 57, please help
- Replies: 39
- Views: 7410
Re: Can I afford to retire at 57, please help
Hello, everyone
I really need some advice for my situation, I think I’m okay but unsure
I am 57 and single
I have a paid off house in Vegas, worth $725k and currently being rented for $2600 a month, currently living in Pennsylvania at my son’s second house with no rent but paying everything else
I’m currently spending around $2000 a month, car paid for and no debt
I have 401k , right now it’s worth $1.090000 million and a personal Roth $190k , plus a brokerage account about $57k
But only have $5000 in cash for spending but I can sell in brokerage accounts for spending money, I know that’s not a smart move
Please let me know what you guys think, thanks
I don't mean to sound harsh. But I don't think you should retire until you:
a ...
- Wed Sep 04, 2024 12:14 pm
- Forum: Personal Investments
- Topic: Anyone looking at investing in a Land Bank (i.e. blocks of vacant land)?
- Replies: 22
- Views: 2712
Re: Anyone looking at investing in a Land Bank (i.e. blocks of vacant land)?
I was a ‘land baron’ for exactly two days way back in 1988. A bank had bought and sub-divided a tract in the late 60s but never developed. Expansion into the Inland Empire was expected, and parcels were being sold. The growth and building rate were as promised, but just not in that location. It ranks as my worst financial/investment decision ever, not because of the damage it did but because of the damage I would still be paying for had I not rescinded. It is posted in the thread.
https://www.bogleheads.org/forum/viewtopic.php?p=7200945#p7200945
36 years ago, there was no internet of Google view as there is today. What was my wonderful parcel is still a dustbowl of wasteland with no development or infrastructure. The game back then was ...
- Wed Sep 04, 2024 12:11 pm
- Forum: Personal Investments
- Topic: Anyone looking at investing in a Land Bank (i.e. blocks of vacant land)?
- Replies: 22
- Views: 2712
Re: Anyone looking at investing in a Land Bank (i.e. blocks of vacant land)?
Raymond wrote: Wed Sep 04, 2024 9:32 amIt's an "emotionally driven sentiment" in the same way that a homeowner would likely prefer not to be burned to death in their house.retired@50 wrote: Wed Sep 04, 2024 8:41 amYou think insurance companies make emotionally driven decisions?MrCheapo wrote: Tue Sep 03, 2024 7:20 pm ... That's because they are nearby areas which have been hit by wild fires and people and insurance companies have fled. It's a classic emotionally driven sentiment that creates tremendous buying opportunities.
Regards,
But maybe OP can make this land speculation work.
I meant the home owners were emotional. Insurance rates went up 50% in one year and this was interpreted as a yearly event which it won't be.
- Wed Sep 04, 2024 12:09 pm
- Forum: Personal Investments
- Topic: Anyone looking at investing in a Land Bank (i.e. blocks of vacant land)?
- Replies: 22
- Views: 2712
Re: Anyone looking at investing in a Land Bank (i.e. blocks of vacant land)?
Investing in raw land is tricky since even if it is buildable now it might not be in the future because of changes in rules about water, sewer, septic system, zoning, etc.
I heard of a situation where someone bought land to eventually build their retirement home on. Decades later when then wanted to build there was a 5 acre minimum lot size but their land was only 4.8 acres. They could not get a variance or buy 0.2 acres from an adjacent landowner so they ended up with a very expensive campsite.
In another case I heard of someone who was trying to build on some land but they could not get a permit to attach a driveway to the road. The problem was that the road designation had been upgraded so that was no longer allowed. Neighbors had ...
- Wed Sep 04, 2024 12:04 pm
- Forum: Personal Investments
- Topic: Anyone looking at investing in a Land Bank (i.e. blocks of vacant land)?
- Replies: 22
- Views: 2712
Re: Anyone looking at investing in a Land Bank (i.e. blocks of vacant land)?
1. The blocks of land are all below $40K each so I would buy several for $100K in total.
2. I have working capital, but I would only build if it makes sense from my personal perspective.
4. These are vacant blocks in developed areas. Some blocks were just undeveloped as people got spooked off by the wild fires
Where I live in CA there are lots of empty blocks of land selling for a fraction of what they were going for 20 years ago. That's because they are nearby areas which have been hit by wild fires and people and insurance companies have fled. It's a classic emotionally driven sentiment that creates tremendous buying opportunities. These are still pristine areas within a few hours of major metropolitan areas but the cost of fire ...
2. I have working capital, but I would only build if it makes sense from my personal perspective.
4. These are vacant blocks in developed areas. Some blocks were just undeveloped as people got spooked off by the wild fires
Where I live in CA there are lots of empty blocks of land selling for a fraction of what they were going for 20 years ago. That's because they are nearby areas which have been hit by wild fires and people and insurance companies have fled. It's a classic emotionally driven sentiment that creates tremendous buying opportunities. These are still pristine areas within a few hours of major metropolitan areas but the cost of fire ...
- Tue Sep 03, 2024 7:20 pm
- Forum: Personal Investments
- Topic: Anyone looking at investing in a Land Bank (i.e. blocks of vacant land)?
- Replies: 22
- Views: 2712
Anyone looking at investing in a Land Bank (i.e. blocks of vacant land)?
[Edit. I should have mentioned. These are blocks of land in developed areas with water/electricity/gas at the boundary. For example a subdivision was created blocks sold, some blocks developed but then the fires came and people froze their development plans.]
Where I live in CA there are lots of empty blocks of land selling for a fraction of what they were going for 20 years ago. That's because they are nearby areas which have been hit by wild fires and people and insurance companies have fled. It's a classic emotionally driven sentiment that creates tremendous buying opportunities. These are still pristine areas within a few hours of major metropolitan areas but the cost of fire insurance is $5K+ for $300K homes and home insurance is ...
Where I live in CA there are lots of empty blocks of land selling for a fraction of what they were going for 20 years ago. That's because they are nearby areas which have been hit by wild fires and people and insurance companies have fled. It's a classic emotionally driven sentiment that creates tremendous buying opportunities. These are still pristine areas within a few hours of major metropolitan areas but the cost of fire insurance is $5K+ for $300K homes and home insurance is ...