Search found 63 matches

by OutOfCyan
Wed Sep 17, 2014 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Buying First Home Questions
Replies: 29
Views: 2294

Re: Buying First Home Questions

Keep on saving until you have an amount equal to 20% downpayment on the house, plus maybe 15k for things like closing costs, furniture, move-in expenses, initial repairs/painting, etc, plus an emergency fund equivalent to 6 months' worth of your expenses including the upcoming monthly house payment...
by OutOfCyan
Tue Apr 29, 2014 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Did (will) you pay off your mortgage by retirement?
Replies: 68
Views: 6464

Re: Did (will) you pay off your mortgage by retirement?

mhc wrote:
Call_Me_Op wrote:Where's the category "I have paid-off my mortgage and I am not yet retired."
+1

I used None of the Above.
+1. I paid off my mortgage at age 28.
by OutOfCyan
Mon Apr 21, 2014 2:48 pm
Forum: Personal Investments
Topic: Investing in taxable account
Replies: 17
Views: 4491

Re: Investing in taxable account

All bond funds (and the value of all outstanding bonds, for that matter) are impacted by changes in interest rates. The impact of interest rate changes on a bond fund can be calculated easily: -1 * duration * change in interest rates. Supposing interest rates rise by 1%, a bond fund with a duration...
by OutOfCyan
Sun Apr 20, 2014 11:23 pm
Forum: Investing - Theory, News & General
Topic: Total bond vs intermediate tax exempt
Replies: 12
Views: 2992

Re: Total bond vs intermediate tax exempt

Here's a Wikipedia page with some statistics on the historic default rate for municipal and corporate bonds. Municipal bonds have a much lower rate of default than corporates of the same rating. In my mind, a fund of ~100% investment-grade munis is less risky than a fund that has 35% investment-gra...
by OutOfCyan
Sun Apr 20, 2014 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: paydown strategy for mortgage
Replies: 43
Views: 5842

Re: paydown strategy for mortgage

I am considering the option of building up mortgage pay off fund for piece of mind and then keep investing until we have $1M in liquid funds before paying off the mortgage. If the time horizon to pay off is 5-7 years and it takes 2 years to build up mortgage payoff fund, do you still recommend muni...
by OutOfCyan
Sat Apr 19, 2014 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Looking at top 1% for actionable insight
Replies: 73
Views: 11325

Re: Looking at top 1% for actionable insight

I think being in the top 1% is mainly luck but you can do things to increase the likelihood you will be lucky. One way is to take as much math as possible. Even in non-mathematical occupations, the reasoning ability mathematics give you will serve you well. I have to respectfully disagree with the ...
by OutOfCyan
Mon Apr 14, 2014 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Amazon 10% Fed refund bonus with TurboTax
Replies: 30
Views: 8140

Re: Amazon 10% Fed refund bonus with TurboTax

I spent about $5K last year on stuff from Amazon. This was a no-brainer for me. I took $1K of my refund as a gift card (1st refund in several years, accidentally overpaid SS due to switching employers). The only annoying thing for me is that I'll have to take what I bought into account when determin...
by OutOfCyan
Mon Apr 14, 2014 8:26 am
Forum: Investing - Theory, News & General
Topic: What exactly is a risk premium?
Replies: 14
Views: 1378

Re: What exactly is a risk premium?

1) If risk is bad, and people want their money to be protected, then a 100% bond (or other "safe" investment) makes sense. But very few advocate this for the accumulation stage because returns are so low. 5) Why then, should a disciplined 20yr old buy a total market fund? If they are willing to ris...
by OutOfCyan
Mon Oct 14, 2013 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Potential Employer delays 401(k) for one year
Replies: 20
Views: 2214

Re: Potential Employer delays 401(k) for one year

This is a traditional 401(k). Participation requires 2,000 hours of service (50 full-time weeks). Any increase in salary will make me an HCE. My negotiated salary is $114,999. I am trying to avoid this. I'm already coming in above the going rate for my career path and ahead of the guy who I'm replac...
by OutOfCyan
Mon Oct 14, 2013 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Potential Employer delays 401(k) for one year
Replies: 20
Views: 2214

Re: Potential Employer delays 401(k) for one year

This is confusing. The Roth IRA phaseout is $10,000 wide. Maxing your 401k puts you under it for 2013, but your concern is that you'll be over it in 2014 despite the pay cut, is that right? How much is the pay cut? Have you taken the inflation adjustment of the Roth phaseout into account? Have you ...
by OutOfCyan
Mon Oct 14, 2013 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Potential Employer delays 401(k) for one year
Replies: 20
Views: 2214

Re: Potential Employer delays 401(k) for one year

In the big scheme of life, if this is a better job (career growth, salary growth, etc.) this really isn't that horrible a situation. I'm not claiming I wouldn't be frustrated. Force yourself to save ~$18K in taxable and move on. I'd be taking a pay cut to switch jobs, though the upward mobility may...
by OutOfCyan
Sun Oct 13, 2013 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Potential Employer delays 401(k) for one year
Replies: 20
Views: 2214

Re: Potential Employer delays 401(k) for one year

I had thought about that as a possibility, but I'd most likely be losing out on considerable 401(k) space next year. If they allow me to contribute 100% of my pay next year, I'd be hard-pressed to max out my contributions. Also, the requirement is technically 2,000 hours (50 work weeks). I have 4 we...
by OutOfCyan
Sun Oct 13, 2013 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Potential Employer delays 401(k) for one year
Replies: 20
Views: 2214

Potential Employer delays 401(k) for one year

Hello, I'm considering switching jobs. However, my prospective employer delays their 401(k) for a year (I think due to regulations about non-discriminatory policies). This is causing both side (me and the employer) a headache. Deferring a portion of my income puts me in a lower tax bracket and makes...
by OutOfCyan
Sun Aug 12, 2012 4:48 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle on Long-Term Returns for Stocks, Bonds
Replies: 35
Views: 7231

Re: Jack Bogle on Long-Term Returns for Stocks, Bonds

It is kind of shocking that Gross cannot understand the difference between total returns and price appreciation. Even more ridiculous is his ad hominem attack on Jeremy Siegel. I myself think the Prof tends to be perpetually bullish, but at least he understands basic financial math, No wonder PIMCO...
by OutOfCyan
Sun Aug 12, 2012 4:05 pm
Forum: Investing - Theory, News & General
Topic: 'Target retirement 2050" beating my index funds?
Replies: 13
Views: 4977

Re: 'Target retirement 2050" beating my index funds?

Well, I don't have many other holdings haha. I haven't touched bonds yet, mostly because I don't fully understand them. Check out the Bogleheads' wiki page for bonds for an intro. They mention all the risks. You might not be able to best Bill Gross when you're done, but it's a pretty good primer. B...
by OutOfCyan
Sun Aug 12, 2012 8:10 am
Forum: Personal Investments
Topic: Yet another portfolio allocation question...
Replies: 7
Views: 1203

Re: Yet another portfolio allocation question...

OutOfCyan, the idea of holding bonds only in my Roth is interesting, but based on the contributions outlined above, I wouldn't be able to maintain the 80/20 stock/bond split without bonds in my 401(k)... although opening an IRA for my wife like Duckie suggested could help with that. I see that Pimc...
by OutOfCyan
Sat Aug 11, 2012 2:25 pm
Forum: Personal Investments
Topic: Yet another portfolio allocation question...
Replies: 7
Views: 1203

Re: Yet another portfolio allocation question...

I'm going to assume you've met the debt-free and emergency fund requirements. As you pointed out, you have some good domestic equity choices, one fairly expensive international fund, two cash options, and (from what I can tell) no decent bond funds. The money market and stable funds are more like ca...
by OutOfCyan
Sat Aug 11, 2012 7:47 am
Forum: Investing - Theory, News & General
Topic: how often do you check your portfolio?
Replies: 94
Views: 9763

Re: how often do you check your portfolio?

I check a few times per month. On two particular days of the month, I use a DCA and value averaging combo plan to buy VTSAX and VTIAX (contributing a fixed amount plus a variable amount depending on asset class performance, multiplied by a fixed percentage to account for market momentum and help kee...
by OutOfCyan
Sat Aug 11, 2012 7:31 am
Forum: Personal Finance (Not Investing)
Topic: If You Are A Saver, Renting Superior To Buying
Replies: 51
Views: 5677

Re: If You Are A Saver, Renting Superior To Buying

As always, the rent vs. buy question depends on what the rent-to-buy ratio is where you live. Renting doesn't pay off here - you don't save anything. I live in a small city (Population density of about 4000 per square mile in my zip code). My home is worth about $160K. Two houses down from me is a s...
by OutOfCyan
Sat Apr 21, 2012 7:25 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets
Replies: 73
Views: 5730

Re: Correlation Tables

Investors seeking to reduce volatility by collecting low-correlated funds should find these two Correlation Tables interesting (green is good) All of the things I'd like in the equity portion of my portfolio are highly-correlated (and the trend is ugly) :oops: The cynical side of me says that some ...
by OutOfCyan
Wed Feb 08, 2012 7:26 am
Forum: Personal Investments
Topic: Investors under 35, what % of your portfolio is cash?
Replies: 50
Views: 4907

Re: Investors under 35, what % of your portfolio is cash?

I'm 29 and hold < 1% cash (I've looked through my funds and a few of them hold 0-1% cash). My emergency fund and short-term financial goals are met by a taxable short-term bond fund. In my checking, I maintain enough to cover my CC and utility bills. The rest is invested.
by OutOfCyan
Tue Feb 07, 2012 9:33 am
Forum: Personal Finance (Not Investing)
Topic: Amazon + Diehards = $$$$$$
Replies: 13
Views: 3249

Re: Amazon + Diehards = $$$$$$

This should really go in the OP's message: Boglehead Amazon link
by OutOfCyan
Mon Feb 06, 2012 7:54 pm
Forum: Personal Investments
Topic: To those that have bought a house..Are you happy?
Replies: 142
Views: 13565

Re: To those that have bought a house..Are you happy?

Here, I pay $2200/mo rent for a house that as of now would probably fetch $520k or so. It's interesting how different things are in different areas. Buying is more favorable than it once was but it's a little difficult for me to justify just on a monetary basis. -janet If you multiply the house pri...
by OutOfCyan
Mon Feb 06, 2012 7:34 pm
Forum: Personal Investments
Topic: To those that have bought a house..Are you happy?
Replies: 142
Views: 13565

Re: To those that have bought a house..Are you happy?

The house two down from mine rents for $1400. I went there for a recent open house; it needs a little remodeling, but is the same exact layout as my house. The owner couldn't sell it with an asking price of $140K. I'd guess it needs about $20K worth of remodeling and new appliances to get it up to s...
by OutOfCyan
Mon Feb 06, 2012 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Amazon + Diehards = $$$$$$
Replies: 13
Views: 3249

Re: Amazon + Bogleheads = $$$$$$

LynnC: Keep up the good work. There may be a number of new Forum members ( and lurkers) who are not familiar with that feature so keeping it "in our face" is a great idea. Shawcroft +1. I use Adblock everywhere and had never seen the Amazon advert before. I had to dig around the site a bit to find ...
by OutOfCyan
Fri Feb 03, 2012 3:49 pm
Forum: Personal Investments
Topic: vanguard aa - advice
Replies: 24
Views: 2438

Re: vanguard aa - advice

If your goal is to keep it simple, then what you're doing is considered just fine by many Bogleheads. Others believe that you increase your expected returns by adding one of the sub-asset classes to your portfolio, probably with increased risk. Small-cap value and REITs are two of the most popular ...
by OutOfCyan
Wed Jan 25, 2012 7:08 am
Forum: Personal Investments
Topic: Why the difference?
Replies: 9
Views: 910

Re: Why the difference?

Looking at Morningstar's analysis of these two funds, the trend puts VTSAX slightly above FSTMX. The biggest differences I can see between the two funds are the amount of cash they hold (FSTMX holds slightly more) and growth/value (FSTMX is slightly more value-oriented). FSTMX has had slightly lower...
by OutOfCyan
Sun Jan 15, 2012 2:12 pm
Forum: Personal Investments
Topic: Where to allocate bonds and emergency funds?
Replies: 13
Views: 2546

Re: Where to allocate bonds and emergency funds?

Just a correction to the above: VFSTX is not 70% govt bonds. I had it confused with TBM, which is 70% govt. VFSTX is 11.5% govt. Sorry about this misinformation.
by OutOfCyan
Sun Jan 15, 2012 8:39 am
Forum: Investing - Theory, News & General
Topic: What fund(s) do you have in your Roth IRA?
Replies: 40
Views: 4825

Re: What fund(s) do you have in your Roth IRA?

Therefore, if your 401(k) has better bond than stock options, it may make sense to have all your bonds in the 401(k), and if it has better stock than bond options, it may make sense to have all your bonds in the Roth. This is true. At my first 3 post-college jobs, nearly all of the fund options wer...
by OutOfCyan
Sun Jan 15, 2012 8:19 am
Forum: Personal Investments
Topic: Where to allocate bonds and emergency funds?
Replies: 13
Views: 2546

Re: Where to allocate bonds and emergency funds?

But I cannot help but look at performance. It's fine to look at performance, but don't let it be a strong indicator as to whether a fund is right for you. It's a poor predictor of future performance. Each of your funds should play a specific role in your investment goals. For many investors, the po...
by OutOfCyan
Sat Jan 14, 2012 8:06 pm
Forum: Investing - Theory, News & General
Topic: What fund(s) do you have in your Roth IRA?
Replies: 40
Views: 4825

Re: What fund(s) do you have in your Roth IRA?

1) Is tax efficiency the same for 401k and Roth IRA? Is it ok if I move my bond allocation from 401k -> IRA? 2) What funds do you have in your Roth IRA? 3) What's the standard bond fund Bogleheads invest in? Is it VBMFX / VBTLX ? Would this be a good fund for my Roth IRA? It's not a horrible thing ...
by OutOfCyan
Sat Jan 14, 2012 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Lifestyle/Residence/Job...Chchchchanges, appreciate opinions
Replies: 5
Views: 634

Re: Lifestyle/Residence/Job...Chchchchanges, appreciate opin

Also...I am in the market for a new (or used) vehicle - I will be driving fewer miles, but do need more cargo space fdue to my sports hobbies (currently drive a sedan).... Any suggestions on a vehicle that will be driven maybe 5K miles/year - is reliable, not too much of a gas hog and a decent amou...
by OutOfCyan
Sat Jan 14, 2012 1:55 am
Forum: Personal Investments
Topic: Where to allocate bonds and emergency funds?
Replies: 13
Views: 2546

Re: Where to allocate bonds and emergency funds?

The only bond funds I'm confident I want to add for the riskier 25% are junk bonds. I probably don't want the entire "riskier" bond allocation in junk bonds, though, but I am thinking 10 to 15% of total assets in junk bonds makes sense. The funds I am eyeing are Fidelity High Income - SPHIX, and Va...
by OutOfCyan
Thu Jan 12, 2012 7:07 am
Forum: Personal Investments
Topic: low cost index funds >>> active managed funds
Replies: 2
Views: 534

Re: low cost index funds >>> active managed funds

Regardless of whether or not the market is efficient, costs matter. Bad advice will cost him more than advisement fees. If you're using the "age in bonds" rule of thumb for portfolio 3, adding inflation-protected bonds to the bond allocation might be a good idea. It really depends on how close your ...
by OutOfCyan
Wed Jan 11, 2012 6:55 pm
Forum: Personal Investments
Topic: vanguard aa - advice
Replies: 24
Views: 2438

Re: vanguard aa - advice

One reason to use an ETF is that certain ETFs are much cheaper than their fund counterparts. Admiral Shares of funds tend to be close in cost to their ETF counterparts. However, for a fund like VFSVX that doesn't have Admiral Shares, its ETF (VSS) might be worth the trouble. The fund has a 0.55%, a ...
by OutOfCyan
Wed Jan 11, 2012 7:23 am
Forum: Personal Investments
Topic: AA @ 28 years
Replies: 32
Views: 2432

Re: AA @ 28 years

Suppose you have $1,000 of stocks in a TIRA and $1,000 of bonds in a Roth. Now suppose the stock market tanks by 50% just when you've retired. Say bonds rise 10% because of flight to safety. Now you have $500 in your TIRA and $1,100 in your Roth. You withdraw both and pay $125 (25%) tax on the TIRA...
by OutOfCyan
Tue Jan 10, 2012 8:58 pm
Forum: Personal Investments
Topic: AA @ 28 years
Replies: 32
Views: 2432

Re: AA @ 28 years

Take your time, think through your plan, and run it by a number of knowledgeable people before putting it into action. Pick an AA plan and stick with it. If a Roth is definitely something you want to do (and based on your situation, I think it's a great idea), contributing regularly is advised. Doll...
by OutOfCyan
Tue Jan 10, 2012 8:02 pm
Forum: Personal Investments
Topic: AA @ 28 years
Replies: 32
Views: 2432

Re: AA @ 28 years

Using the MorningStar X-RayI played around with the following. 100% Vanguard Total Stock Market Index Fund (VTSMX) 25 24 23 6 7 7 3 3 3 87% SSgA S&P 500 Index Instl (SVSPX) 11% iShares S&P MidCap 400 Index (IJH) 7% iShares Russell 2000 Index (IWM) 24 25 22 6 7 7 4 3 3 Am I doing this correctly? Alm...
by OutOfCyan
Tue Jan 10, 2012 7:51 pm
Forum: Personal Investments
Topic: AA @ 28 years
Replies: 32
Views: 2432

Re: AA @ 28 years

1. I would like to take my 401k out of the age based fund and allocate myself. Thoughts on my available options? I have the option to open a Self Managed Account which will give me access to ~1600 no sales fee funds. However, I do not think I want to go this route right now. Is 20% international to...
by OutOfCyan
Tue Jan 10, 2012 11:33 am
Forum: Personal Investments
Topic: vanguard aa - advice
Replies: 24
Views: 2438

Re: vanguard aa - advice

I am planning to add a a decent amount of money to the Taxable account in the next few years - is there a bond fund that I can keep in there that is tax efficient? or is it best that my IRA only be the Bond fund and the taxable - VTI/VXUS? The only bonds that are tax-efficient are tax-exempt bonds....
by OutOfCyan
Tue Jan 10, 2012 7:26 am
Forum: Personal Investments
Topic: vanguard aa - advice
Replies: 24
Views: 2438

Re: vanguard aa - advice

I am considering going to 70/30. What do you think the best way to do this would be - sell the stocks from the IRA (Total International Stock Index Fund Admiral Shares) and buy more of Total Bond Index Fund? After asking around for advice, I did just that. VTIAX is one of the most tax-efficient fun...
by OutOfCyan
Mon Dec 26, 2011 7:43 pm
Forum: Investing - Theory, News & General
Topic: What's your average duration?
Replies: 5
Views: 777

Re: What's your average duration?

I'm a TBM investor right now, but I plan on changing that. In mid-Feb, I'll be rolling over a 401K to my Vanguard account and I plan on changing my bond allocation. So far, I've settled on long-term treasuries (due to the low correlation with my heavy equity allocation), but I haven't decided on wha...
by OutOfCyan
Mon Dec 26, 2011 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: When will you/should you attain positive net worth?
Replies: 58
Views: 6490

Re: When will you/should you attain positive net worth?

I see your point, but that's a tough deal to work in today's bear market. Paying off a 4.8% mortgage is pretty much a guaranteed avoidance of that interest. There are almost no vehicles in today's market that will guarantee a 4.8% return. You can get it if you're willing to take risk, but that's ve...
by OutOfCyan
Mon Dec 26, 2011 9:06 am
Forum: Personal Finance (Not Investing)
Topic: When will you/should you attain positive net worth?
Replies: 58
Views: 6490

Re: When will you/should you attain positive net worth?

Responding to TN_INVEST's post about Dr. Stanley's formula "age times annual income divided by 10"... It's deceivingly wise if you're a 10% + saver. I still don't buy it. Assume a 31 year old with a $100K salary who should have a net worth of $310K. If he's been out of school since age 21 and has s...
by OutOfCyan
Sat Dec 24, 2011 9:42 am
Forum: Personal Finance (Not Investing)
Topic: When will you/should you attain positive net worth?
Replies: 58
Views: 6490

Re: When will you/should you attain positive net worth?

I graduated with almost $70k student loan debt in Dec 2007. Down to $43k today with all rates less than 3%. Once I had all the 6.8% loans gone I started maxing a Roth and paying less extra on the loans. Wow, that's a low rate! At 6.8%, I'd probably pay the loans off, but at 3%, that's around the in...
by OutOfCyan
Sat Dec 24, 2011 9:38 am
Forum: Personal Finance (Not Investing)
Topic: When will you/should you attain positive net worth?
Replies: 58
Views: 6490

Re: When will you/should you attain positive net worth?

I'm 26, income is ~ $63k, investing in a 401k, maxing a Roth, paying down student loans (accelerated schedule), and a mortgage (minimum payments). No other debt. That sounds familiar. At age 26, I had a $100K mortgage and barely any retirement savings. I received a merit-based scholarship for some ...
by OutOfCyan
Thu Dec 22, 2011 7:33 am
Forum: Personal Consumer Issues
Topic: Poll: Synthetic vs Regular Motor Oil
Replies: 42
Views: 3825

Re: Poll: Synthetic vs Regular Motor Oil

We run 5W-30 full synthetic in our cars, a 1998 Camry (changed every 3000) and a 2008 Corolla (changed every 5000). We also have three motorcycles (a SV650, a Ninja 500R, and a VFR750F). We run 10W-40 full synthetic (non-energy conserving) in them. I change the oil in them twice per year and ride th...
by OutOfCyan
Thu Dec 22, 2011 7:26 am
Forum: Personal Consumer Issues
Topic: Coffee Maker
Replies: 23
Views: 2737

Re: Coffee Maker

+1 for the Cuisinart Grind & Brew. I had one of these for years. The newer ones are easier to clean: dump the coffee from the basket and give the grinder a quick once-over. A couple years ago, I switched to Black & Decker Spacemaker appliances due to kitchen clutter (we must have 10+ small kitchen ...
by OutOfCyan
Sun Dec 18, 2011 3:34 pm
Forum: Investing - Theory, News & General
Topic: 14 Money Lies That'll Wreck Your Marriage
Replies: 20
Views: 4463

Re: 14 Money Lies That'll Wreck Your Marriage

Not to go too far off topic, what do you guys ride? I've got a Ducati MTS 1200S and a CBR 1000 track-ho. Good to see a bike person on here!! We have three bikes: a 2006 Ninja 500R, a 2002 SV650, and a 1991 VFR750F. I started on the SV and she started on the Ninja. We've been riding since mid-2009. ...
by OutOfCyan
Sun Dec 18, 2011 11:31 am
Forum: Personal Consumer Issues
Topic: 112 hours in a week to live life
Replies: 52
Views: 5502

Re: 112 hours in a week to live life

There are 112 waking hours in a week if you sleep 8 hours a night. Mathematically, how do people fit everything in? 45 hours a week at my job. 40 hours a week with my wife. 0 hours of exercise. 3 hours of hygiene. 3 hours commuting. 3 hours of other driving. I don't have any children. My pets take ...