Search found 276 matches
- Mon Jul 25, 2011 2:29 am
- Forum: Investing - Theory, News & General
- Topic: Latest interview with Bill Bernstein from IndexUniverse
- Replies: 97
- Views: 14015
After reading thru this thread again, I am certain that at least one group of Bogleheads have cashed in, severed all ties, and moved into the bunker for the pending crash: our moderators ; o/w this thread would have been lock down long ago. :lol: Yes. What other possible explanation could there be? The Bernstein article referenced by the OP begins with a round of name calling and political hyperbole. While there is nothing wrong with this (we all have our opinions), when a "pundit" bashes one group and places no blame on the other, it casts serious doubt on their objective credibility. I see no reason to value the rest of the article. How much is based on financial insight and how much is driven by bias? Individuals faced with fi...
- Tue Jul 19, 2011 3:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Introduction to itemizing?
- Replies: 15
- Views: 2109
Re: Introduction to itemizing?
As for state (or local) taxes, in addition to deducting state taxes that are regularly withheld from your paycheck, don't forget to deduct any tax payment you made in 2011 for 2010 state taxes (e.g., a payment made on April 15 of this year for last years taxes).
- Sat Jul 16, 2011 9:56 pm
- Forum: Personal Investments
- Topic: Help with retiring early - How to plan 10 years out
- Replies: 70
- Views: 8420
And I'm not sure why one person _not_ working while another continues to work is a "strange lifestyle choice." I feel like that happens *all* the time, but usually it's the woman who stays home while the man continues to work. You are correct. Some people were bound to object to your plans to retire early in 10 years at age 45, with your soon-to-be wife working another 28 years until (presumably) her early 60's. There would have been no objections if the roles were reversed. Gender bias at it's finest. No slight to your fiancee, but you have and will contribute more than your financial fair share to the marriage. You are under no obligation to continue working 60-70 hour weeks just because you are a man. You obviously have though...
- Fri Jul 15, 2011 6:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: Hard to choose: Honda Fit/Civic & Toyota Corolla
- Replies: 38
- Views: 8104
I purchased a 2010 Honda Fit (5-speed) last July to supplement my 1980 Toyota Corolla. In addition to the Fit, I was considering the Civic, Corolla, Matrix, Yaris, and Elantra Touring. It came down to the Fit and Elantra Touring. I test drove both. While the Elantra provided a *little* bit more for the money, the Fit had better predictions of long-term reliability and better reported gas mileage. I've been quite happy with my Honda Fit. I find it to be very nimble and "peppy." The interior is well-laid out and simple. Very good driver visibility. Very comfortable. Excellent cargo room (I can put my bicycle in the back without removing the wheels, although it is a tight squeeze). The multiple options for configuring the rear seats ...
- Sun Jul 03, 2011 7:20 pm
- Forum: Personal Investments
- Topic: advertising by Rick Ferri
- Replies: 91
- Views: 11749
I read two of Rick's books ("All About Asset Allocation" and "All About Index Funds") even before I knew the bogleheads existed, so it was a delight when I came here and found him to be a regular poster. Sometime later, I was in the bookstore thumbing through his "The ETF Book." It was a hardcopy and being the cheapskate I am I couldn't decide if I should wait for the paperback version. But then I noticed that all of Rick's proceeds from the book were going to a military charity so I bought the book at that time. About 3 1/2 years ago Rick had a post called "The Core Four." It was one of those times when everything suddenly became clear in my mind. Previously, I was confused about all the different in...
- Sun Jul 03, 2011 6:39 pm
- Forum: Investing - Theory, News & General
- Topic: If you have enough income to retire do you risk more / less?
- Replies: 18
- Views: 2506
I plan to early retire next year at age 52, if not sooner. I have a pension that should cover my living expenses for the rest of my life. In fact, at my present standard of living, I will remain in the accumulation phase throughout retirement. Sure, something could happen to the pension but there is also PBGC and social security. I could live comfortably on my expected social security income alone. It is likely that I won't touch my investment portfolio except to take required RMD's from my retirement accounts after I turn 70.5. And even then the funds will simply be moved to my taxable accounts. When I die, everything will go to charity. So I have no real need to take risk with my investments. I don't need the funds to grow. I could even p...
- Sat Jul 02, 2011 9:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: ING purchased by Capitial One
- Replies: 9
- Views: 2503
I have MM accounts at both Capital One and ING. I did this several years ago so I could play their interest rates off each other, although in practice I have not strongly followed this plan. While I don't have too much experience with their customer service, I consider both institutions about the same. So for me, I am not at all disappointed with the consolidation (and it will create a natural simplification of my bookkeeping).
- Sun Jun 26, 2011 6:51 pm
- Forum: Personal Investments
- Topic: When doing an AA model do you consider
- Replies: 10
- Views: 1600
Other than the money in my wallet and the jar of change at home, I include everything as part of my AA. I do this more out of bookkeeping ease rather than some theoretical meaning behind AA.
Large cash allocations have only modest impact on AA. Consider someone with a $1M 60/40 portfolio, which includes $50K in a bank savings account. The allocation changes to 63/37 when the cash is excluded. Not a big difference.
Large cash allocations have only modest impact on AA. Consider someone with a $1M 60/40 portfolio, which includes $50K in a bank savings account. The allocation changes to 63/37 when the cash is excluded. Not a big difference.
- Fri Jun 24, 2011 12:35 pm
- Forum: Personal Finance (Not Investing)
- Topic: The idea of not being able to afford healthcare...
- Replies: 63
- Views: 5888
What I'm curious about is those who don't have insurance but need life saving care of a non-urgent nature (like chemo). I have a friend who has overstayed her visiting status in this country. She does not have insurance. She is able to get standard preventative and investigative care at no cost (pap smear, MRI, etc). This is not to say it is easy. Routine work requires several months of advance notice and there are a number of bureaucratic hurdles to go through, but it doesn't appear to be too difficult once the steps and processes are understood. Dental care is also available, although it covers only cleaning/exam, fillings, and extractions. I believe she pays a small fee for the dental care. I don't know about more advanced treatment (e....
- Sun Jun 19, 2011 12:53 pm
- Forum: Personal Consumer Issues
- Topic: A bicycle to learn to bike?
- Replies: 67
- Views: 8129
I am assuming that the perfect fit is important for re-learning . Once I re-learn I should be able to ride rented and borrowed bikes. This is the key. You want something that feels good and is controllable. I might shy away from the word "comfort." In bicycle terminology, comfort often refers to characteristics of the frame and bicycle that are important for longer rides lasting many hours (50+ miles). If you are riding only a few miles here and there, this type of comfort isn't that important. Instead, you want something that is maneuverable and feels good and safe to you. Ideally, you should go to a real bicycle shop (e.g., one that sells new and used bicycles and performs repairs). Tell them what you have written here ... I ha...
- Thu Jun 16, 2011 7:09 pm
- Forum: Personal Investments
- Topic: Loading Up on Tax-Deferred Accounts
- Replies: 26
- Views: 2587
Personally, I would definitely max out the 403b and 457 plans, and do a backdoor Roth if you have the opportunity. That's basically what I do, although I no longer have both a 403b and 457 (just a 401k). It sounds like you are in the ~45% marginal tax bracket (federal plus state, with AMT so no itemized deduction for state taxes). Using reasonable assumptions, your combined tax rate on future 403b/457 withdrawals would need to rise to over 55% to nullify the benefits of the tax-advantaged plans. And that's assuming capital gains and qualified dividends rates remain low at 15%. If future capital gains and dividend tax rates rise to 25%, for example, your tax rate on future plan withdrawals would need to be over 65% to make the 403b/457 contr...
- Thu Jun 16, 2011 1:30 pm
- Forum: Investing - Theory, News & General
- Topic: What is the market pricing in now?
- Replies: 14
- Views: 1549
As an individual investor, I don't price anything into the market when I buy or sell investments. Other than the desire to follow my predetermined asset allocation, I go into the process essentially blind. I don't think about how Greece is going to affect the orange crop in Florida, and how this in turn is going to impact Toyota's ability to deliver parts to its manufacturing plants in Ohio. Rain or shine, I invest in my employer's retirement plan every two weeks, and invest in taxable accounts when I've accumulated enough funds to make it worthwhile. True, I am only 0.00001% of the market (although there are many other people like me). Maybe institutional investors dominate market variability by appropriately analyzing all of the informati...
- Mon Jun 13, 2011 9:49 pm
- Forum: Investing - Theory, News & General
- Topic: Deleted
- Replies: 17
- Views: 6134
You can evaluate the differences between a Traditional 401k, Roth, and Taxable account by looking at the taxable yield. The taxable yield incorporates the effect of all taxes on the investment (initial income taxes for the Roth and Taxable account, annual taxes from dividends in a Taxable account, and final taxes due to RMD's and capital gains for the Traditional 401k and Taxable accounts, respectively). Consider a 30-year investment horizon with a 10% nominal annual yield (lets be optimistic). Let 2% of the yield come from qualified dividends. Assume that dividends and long-term capital gains are taxed at 15% for funds in a Taxable account (dividends taxed annually). Assume an initial income tax rate for Taxable and Roth contributions of 2...
- Sun Jun 12, 2011 9:37 pm
- Forum: Personal Finance (Not Investing)
- Topic: At what age does it go downhill
- Replies: 190
- Views: 29088
Those first 9 months were pretty good, but it's been downhill ever since. I'm 51. I noticed an increase in the number of annoying aches and pains at around 45, but this was the same time I gained 40 pounds. These aches and pains could be due to: 1) the increase in weight (e.g., more stress on the joints); 2) less physical activity due to the increase in weight; and/or 3) age. I don't know. Perhaps I'll learn more when I eventually drop down to my normal weight. I hope to remain physically active well into my 80's, if not longer. To me this means running 3-10 miles, cycling 25-100 miles, hiking 5-20 miles in hilly terrain, multi-day backpacking trips, etc. I belong to a bicycle club that has a lot of older members. Some are in their 70's and...
- Sun Apr 03, 2011 7:44 pm
- Forum: Personal Consumer Issues
- Topic: Did anyone actually like the 1970s?
- Replies: 111
- Views: 14217
It was a very turbulent time for women. I remember having to fight to get my first credit card, when they came free in the mail to my spouse. [...] Women were pretty much viewed as second class citizens earning much less than their counterparts. We've come a long way, baby! I think that is where that phrase originated. It was a very turbulent time for men. Men, often boys, were drafted and sent to Vietnam (even today, only boys/men are required to register for the draft). 50,000+ of them were killed. I remember my older brother watching the draft lottery on television. He seemed to know the birthdays of every boy in his class. Every time a new date was announced, he sadly shook his head and said, "that's so-and-so's birthday." I ...
- Sat Apr 02, 2011 8:49 pm
- Forum: Personal Consumer Issues
- Topic: Which car would you consider?
- Replies: 20
- Views: 3109
Re: Which car would you consider?
Toyota Corolla
Honda Civic
Honda Fit
The Fit is a newer model. It may be more difficult to find one that meets your $10K criteria. A new one is about $15K for the base model. The Corolla and Civic come only in sedans, unless you go for a significantly older model. The Fit is a 4-door hatchback with lots of cargo room.
I recently bought a 2010 Fit to "supplement" my 1980 Toyota Corolla (talk about reliability). I'm getting 41+ mpg with the Fit in 50/50 city/highway driving, which is significantly higher than either the EPA or Consumer Reports gas mileage numbers.
Honda Civic
Honda Fit
The Fit is a newer model. It may be more difficult to find one that meets your $10K criteria. A new one is about $15K for the base model. The Corolla and Civic come only in sedans, unless you go for a significantly older model. The Fit is a 4-door hatchback with lots of cargo room.
I recently bought a 2010 Fit to "supplement" my 1980 Toyota Corolla (talk about reliability). I'm getting 41+ mpg with the Fit in 50/50 city/highway driving, which is significantly higher than either the EPA or Consumer Reports gas mileage numbers.
- Fri Apr 01, 2011 8:32 pm
- Forum: Personal Consumer Issues
- Topic: Utility Bills
- Replies: 104
- Views: 18180
1200 sf house in San Francisco Bay Area (1 person, 1 cat) Electric: $12 Water: $18 Trash: $14 Gas: $10 Electric and gas combined only $22 a month? How are you pulling that off? It's mostly "turn it off when it's not in use." There is little need for more than 1 light to be on at once, unless it's for a very short period of time. I don't have AC, but everything else is electric (TV, computer, stereo, stove, oven, microwave, dyer, ceiling fans, etc). There will be a couple of 100+ heat waves in the summer (inland valley of the SF Bay Area), but as livesoft suggests, opening the windows at night and shutting them in the morning works very well. In the winter, I open all the curtains/shades so the sun can heat the house. And I wear a...
- Fri Apr 01, 2011 6:49 pm
- Forum: Personal Consumer Issues
- Topic: Utility Bills
- Replies: 104
- Views: 18180
- Fri Mar 25, 2011 6:37 pm
- Forum: Personal Consumer Issues
- Topic: Online dating sites - worth it?
- Replies: 253
- Views: 48901
I've tried on-line dating (match.com), although I'm not sure if I'd do it again. I believe it is an effective way to meet a lot of people in a short period of time (even if it is only by email). However, other methods are effective too (social gatherings, recreation, church, etc). What seemed to work best in my case was to wait for women to initiate contact with me. I'd get a response every two weeks or so, which was about the right level that I could effectively handle. That would be enough time to send a few emails, maybe speak on the phone, and perhaps meet. I did find the process somewhat exhausting, however, which is one reason I might not try it again. I'm introverted and it's tiring for me to "get to know someone," especial...
- Fri Mar 25, 2011 6:04 pm
- Forum: Personal Consumer Issues
- Topic: Online dating sites - worth it?
- Replies: 253
- Views: 48901
In many countries outside of the US, women haven't gained social or economic equality yet. As a result, they are culturally more subordinate to men. The poster was likely trying to make a jab at this, as he probably has his own misguided views of a woman's role in society. I'm not sure how a person's views on dating can be misguided. People are free to desire whatever qualities they want in potential partners. Potential partners can reciprocate or not. I once saw a personal ad from a woman who was looking for a man whose name began with a "T". The more power to her, although I probably wouldn't be interested in such a woman even if my name did begin with a T. I don't read too many personal ads from men, but I do read personal ads...
- Thu Mar 24, 2011 6:44 pm
- Forum: Personal Consumer Issues
- Topic: Grieving [for pet] Poll
- Replies: 94
- Views: 14722
Losing a pet can be very difficult and painful. For many, pets are bona fide members of the family. I still miss my cat who passed away almost 6 years ago. He was with me for almost 18 years and was part of my life.
I don't know if there is any specific way to deal with the grief, other than time. Some areas have pet loss support groups, although your family may be its own support group. I do feel sorry for your loss. Bernie was obviously a big part of your heart.
I don't know if there is any specific way to deal with the grief, other than time. Some areas have pet loss support groups, although your family may be its own support group. I do feel sorry for your loss. Bernie was obviously a big part of your heart.
- Wed Mar 16, 2011 9:50 pm
- Forum: Personal Finance (Not Investing)
- Topic: US Millionaires - factors in attaining wealth
- Replies: 52
- Views: 9634
Re: US Millionaires - factors in attaining wealth
I think that the "hard work" % is overstated - isn't there a natural bias to attribute success to hard work vs. winning the genetic lottery, luck, etc? If you live (way) below your means and can save 20%, 25% or more, then you an become financially rich over a longer period. Paul and if u do what's the point? u can dies before u enjoy it it say like year 7, u will be too old to truly enjoy it, you could dies and u can't take it with u. What's the point? I'm both frugal and work hard. Because of that, I plan to early retire next year at 52 (in fact, I could have retired several years ago). So I'll have plenty of years to enjoy it. And even if I die at 53, it will all go to charity. I don't have to take it with me for it to be bene...
- Wed Mar 16, 2011 8:35 pm
- Forum: Personal Consumer Issues
- Topic: How big of an earthquake can california houses withstand?
- Replies: 31
- Views: 31623
Also, an interesting side note is each magnitude increases the amount of energy released by 32. So the 9.0 that Japan just felt was roughly 1,000 times more energy than the Northridge quake. This is true. However, it's important to note that the ground motions (shaking amplitude) for the 2011 M9.0 Japan earthquake (now being called the Tohoku earthquake) were not necessarily larger than the ground motions for the 1994 M6.7 Northridge event. The Japan earthquake had a higher magnitude primarily because the fault rupture occurred over a larger surface area. Specifically, approximately 100,000 km^2 of the fault failed, compared to only 300 km^2 for the Northridge event. The slip (distance one side of the fault moves relative to the other) was...
- Sun Feb 27, 2011 10:08 pm
- Forum: Personal Finance (Not Investing)
- Topic: Is it possible to eat well on less than $200 / month?
- Replies: 80
- Views: 10155
I believe the food stamp budget for someone with no financial resources is a little under $200/month. So apparently the USDA believes it is both doable and healthy. I normally spend about $150/month on food. However, in 2009, I wanted to see if I could spend less than $1000 on food for an entire year. This was done mostly out of curiosity. I ended the year at $883.35, or about $74/month ($2.42/day). Except for a few freebies, I bought everything I ate and drank (tap water not included in budget). It wasn't especially fun, but it wasn't that difficult either. I continued to run and bicycle during the year. Also, I had a "mini-physical" in September of 2009 (blood test, etc). Everything was fine. I believe it depends more on where a...
- Fri Feb 25, 2011 4:19 pm
- Forum: Personal Finance (Not Investing)
- Topic: Which financial institution stores most of your net worth?
- Replies: 79
- Views: 10297
Approximately (and not including holdings in my DBP pension) ...
40% Fidelity (Employer Retirement Accounts)
35% Vanguard
10% Mairs and Power
05% American Century (High Yield CA Municipal Bond Fund)
10% Banks (local credit union, Capital One, ING)
When I retire in a year, I'll likely drop my American Century account and move the assets to Vanguard. I may or may not roll some or all of my employer retirement accounts from Fidelity into an IRA at Vanguard.
40% Fidelity (Employer Retirement Accounts)
35% Vanguard
10% Mairs and Power
05% American Century (High Yield CA Municipal Bond Fund)
10% Banks (local credit union, Capital One, ING)
When I retire in a year, I'll likely drop my American Century account and move the assets to Vanguard. I may or may not roll some or all of my employer retirement accounts from Fidelity into an IRA at Vanguard.
- Sun Feb 13, 2011 3:26 pm
- Forum: Personal Investments
- Topic: UC DCP Questions [Univ. of CA Defined Contribution Plan]
- Replies: 48
- Views: 28195
I roll the after-tax contributions (and their earnings) into the same Roth every year. To be honest, I'm no longer with UC, but the 401k plan at my current employer is effectively identical to the DCP 401a plan at UC. So I have one Roth that contains the former after-tax contributions to the UC 401a and also the after-tax contributions to my current 401k. Everything is managed at Fidelity (401a, 401k, and Roth), which makes the rollover process trivial. I do it once a year. All it takes is a single phone call that lasts 10 minutes or so. Yes, because you have to pay taxes on the earnings, it's best to perform the 401a,k->Roth rollover before significant earnings on the after-tax contributions have developed. That's why it's good to perform ...
- Sat Feb 12, 2011 5:29 pm
- Forum: Personal Consumer Issues
- Topic: Dating, and the awkward timing that is V-Day
- Replies: 38
- Views: 5676
I would do nothing. Leave it up to her to make a move. If she does nothing, then she has no cause to think that you are a jerk (else she would be an equal jerk). It goes both ways. If she acknowledges Valentine's Day to you in some way, respond back (phone, email, or whatever is on par with her communication). Mention that you really enjoyed the time spent with her but you were not sure how to handle Valentine's Day in this awkward situation. Mention that you even asked "a few friends" and got a variety of responses (I probably wouldn't say that you asked a bunch of people on the internet whom you don't know). Mostly likely, she will be amused. If this is the case, also mention that you would like to get together again. Of course,...
- Fri Feb 11, 2011 1:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: "I need my mortgage for a tax deduction"
- Replies: 44
- Views: 7066
With AMT, my marginal tax rate is 42.05% (federal and state). That means the effective interest rate on my 4.125% 10-year mortgage is 2.39%. Can I get a better 10-year return with muni bonds? While not guaranteed, the answer is very likely yes. I expect to get about 4% over the next 10-years from my munis. I believe the expected greater return is worth the added risk. That is why I don't pay off my mortgage today.
Admittedly, though, I am still gradually paying off my mortgage loan. Whereas it would make financial sense for me to refinance into the biggest loan I can get then invest the funds (ignoring IRS issues), I don't do this. I think I'm taking a reasonable middle ground for my situation.
Admittedly, though, I am still gradually paying off my mortgage loan. Whereas it would make financial sense for me to refinance into the biggest loan I can get then invest the funds (ignoring IRS issues), I don't do this. I think I'm taking a reasonable middle ground for my situation.
- Fri Feb 11, 2011 1:07 pm
- Forum: Personal Finance (Not Investing)
- Topic: work-around for exceeding 2010 Roth income limit?
- Replies: 9
- Views: 1650
If you make non-deductible contributions to a traditional IRA, you need to complete IRS Form 8606 when you file your taxes. This is one of the easier forms. It's no big deal. You will also use Form 8606 when you perform the rollover to the Roth IRA.
If you plan to make a non-deductible contribution for the 2010 tax year, you have until the filing deadline to do so (April 18 this year). If you've already filed your taxes for 2010, you can separately send Form 8606 to the IRS, but you are still required to do this by the April deadline.
If you plan to make a non-deductible contribution for the 2010 tax year, you have until the filing deadline to do so (April 18 this year). If you've already filed your taxes for 2010, you can separately send Form 8606 to the IRS, but you are still required to do this by the April deadline.
- Thu Feb 10, 2011 7:14 pm
- Forum: Personal Investments
- Topic: UC DCP Questions [Univ. of CA Defined Contribution Plan]
- Replies: 48
- Views: 28195
Yes. You can roll over the after-tax contributions that you have accumulated up until this point to your Roth IRA located at a different institution. This is despite the fact that you are already maxing out your Roth IRA at $5K/yr. Since you have already paid taxes on these after-tax contributions, this part of the roll over will be tax free. Two caveats. First, you also will need to roll over the earnings on the after-tax contributions and these earnings will be taxable if you roll them into the Roth IRA. There are ways around this, but they may be too complicated especially if the earnings are relatively small. Second, it may be logistically easier to roll the after tax contributions (and their earnings) into a Roth IRA at Fidelity. If yo...
- Wed Feb 09, 2011 3:43 pm
- Forum: Personal Investments
- Topic: UC DCP Questions [Univ. of CA Defined Contribution Plan]
- Replies: 48
- Views: 28195
Re: UC DCP Questions
I have funds in UC's 403b, 457, and 401a plans. The differences in the plans seem rather subtle, at least for my situation, so I don't prefer one over another. I don't believe it matters too much where you park your pre-tax contributions. I'll probably roll everything into a single UC plan when I retire if only to simplify my life. Personally, I think the investment options in the plans are pretty good so I don't see compelling reasons to roll them over into another employers plan. In fact, I'd be more likely to do the reverse. If you are maxing out the tax-deferred opportunities in the plans (i.e., a combined $33K/yr or $44K/yr if over 50), then making after-tax contributions to the DCP plan is a good strategy. The DCP plan allows in-servi...
- Thu Aug 05, 2010 12:12 pm
- Forum: Personal Consumer Issues
- Topic: Billionaires to donate half of net worth to charities
- Replies: 55
- Views: 5735
I don't really understand how so many bogleheads are so critical of a billionaire giving money to charity when the recent poll showed that as a whole bogleheads are less than exemplary in that category. I can only speak for myself. I'm not critical of billionaires who plan to give their money to charity. However, I am turned-off by billionaires who believe it is necessary to be on some sort of a list of people who plan to give their money to charity. It seems like smugness to me. "Look at me. I'm donating much of my wealth to charity. I'm a wonderful person. Look at me." The timing is also suspect. While some of these people are giving away a lot of their money while they're still alive, many are waiting until their death. While ...
- Sat Jul 31, 2010 6:34 pm
- Forum: Personal Consumer Issues
- Topic: Kilowatts in the Summer [Electricity Usage]
- Replies: 113
- Views: 16317
I'm usually around 100kWh/month, with a typical monthly bill between $10-$15. My lowest month was about 60kWh. I have an all electric 1200 sf house, except for heat and hot water. Northern California (PG&E).
We may have 5-10 100+ degree days during the average summer (it reached 116 a few years ago). I open windows/doors at night and use ceiling fans to keep the house cool.
Although I live alone, it wouldn't change very much with more people. It certainly wouldn't be linear. I don't do anything special except "turn it off when it's not in use".
We may have 5-10 100+ degree days during the average summer (it reached 116 a few years ago). I open windows/doors at night and use ceiling fans to keep the house cool.
Although I live alone, it wouldn't change very much with more people. It certainly wouldn't be linear. I don't do anything special except "turn it off when it's not in use".
- Tue Jul 27, 2010 9:57 pm
- Forum: Personal Finance (Not Investing)
- Topic: Allan Roth's Skimp or Splurge - Millionaire’s Car
- Replies: 72
- Views: 13441
Life is too short to hurt yourself driving around in a Ford. Anyways, I thought one of the reasons to save and passively invest all this money at low expense ratios was so that you could drive a Lexus while still having millions in ETFs. Am I wrong? Not wrong. Not right. To each his own. I drive a 1980 Toyota Corolla that I purchased used in 1985 for $4000. It's been an unbelievable car. An automobile doesn't need to be fancy or pretty. It just needs to get you to where you want to go. If the Ford and Lexus can both meet this need, I'll go with the lower price option. The things I look for in a car are: - fuel economy (Consumer Reports had my car rated at 40+ mpg on the highway) - reliability (it's lasted 30 years and 265K miles) - driver ...
- Thu Jul 22, 2010 11:07 am
- Forum: Personal Finance (Not Investing)
- Topic: Ben Stein's "wisdom" about the recession
- Replies: 34
- Views: 4920
I wonder how many people are reading this thread from their computers at work.friar1610 wrote:From the Stein article: [...] This would include a teaching of the fact that the employee is not there for amusement, but to help the employer make money and to get a job done. It would include the idea that once you are at work, you are not at play. It is an idea whose time has come.
- Thu Jul 15, 2010 10:27 am
- Forum: Personal Consumer Issues
- Topic: Tricks for Keeping Active at Work
- Replies: 35
- Views: 5057
I commute to/from work by bicycle and then go running pretty much everyday around noon. Previously, my schedule allowed runs of 4-15+ miles, but that changed a few years ago so now 2-4 miles is about it. In the summer, I go bicycling twice a week after work. I work at a large complex, so I'm often zipping back and forth from one building to another for meetings.
- Wed Jul 14, 2010 2:07 pm
- Forum: Personal Finance (Not Investing)
- Topic: How much do you give to charity each year?
- Replies: 66
- Views: 8943
Biblical imperatives notwithstanding, IMO percentage of spending is a better measure of holier-than-thou-ness. Money saved/invested is money not yet spent, and its ultimate use is not yet fixed. I've thought a lot about this from a moral perspective. Depending on how the base is defined, I give anywhere between 3% (relative to my IRS AGI) to 25% (relative to my current spending, including mortgage) to 50% (relative to my spending once my mortgage is paid off). I'm either a self-centered cheapskate or a holier-than-thou philanthropist. When I die, everything will go to charity, so my lifetime contributions likely will be 10 times my lifetime spending. But still, I'm too stingy to give that money today. I could give more, but I don't. I thin...
- Tue Jul 13, 2010 11:37 am
- Forum: Personal Consumer Issues
- Topic: Fantasy Tour de France?
- Replies: 59
- Views: 7819
I won't get the results of today's stage (Tuesday, Stage 9) until this evening, but I see that I've moved into the coveted last place spot in the mini-league over the weekend. In perfect position to scan the field and look for weakness in the rest of you. Sunday's stage was informative. Perhaps this has already changed, but as of Sunday I think the yellow jersey favorites are now Schleck, Contador, and Evans. Schleck may need at least 1 minute going into the final time trial (Stage 19, Saturday). Although he has been working on his time trial skills, he's not up there with Contador or Evans (or Leipheimer). His prologue was a near disaster, although he caught the bulk of the rain. It will be interesting to see how the rest of the Alps play ...
- Mon Jul 12, 2010 4:57 pm
- Forum: Investing - Theory, News & General
- Topic: The Stock Market Game - Any thoughts
- Replies: 35
- Views: 7207
I'd be interested in the timescale of the investments. Specifically, do students have the opportunity to investigate long-term investment strategies?
I don't believe it would be appropriate if there is a one-to-one mapping between the September to May school year and the students investment horizon. It would be inappropriate to teach children how they can "win" in a short 9-month school year. That's gambling. On the other hand, if one month on the students calendar represents a 5 to 10 year of investment period, then students would have the opportunity to examine practical lifetime concepts such as the benefits of investing while young, buy and hold strategies, and asset changes as one approaches retirement.
I don't believe it would be appropriate if there is a one-to-one mapping between the September to May school year and the students investment horizon. It would be inappropriate to teach children how they can "win" in a short 9-month school year. That's gambling. On the other hand, if one month on the students calendar represents a 5 to 10 year of investment period, then students would have the opportunity to examine practical lifetime concepts such as the benefits of investing while young, buy and hold strategies, and asset changes as one approaches retirement.
- Sun Jul 11, 2010 7:31 pm
- Forum: Personal Investments
- Topic: Switching from LargeCap to LargeCap Growth
- Replies: 13
- Views: 2110
I considered doing something similar. That is, instead of having TSM in both my taxable and tax deferred accounts, I considered putting TSM Growth in taxable and TSM Value in tax deferred. For my situation (e.g., current and expected tax rates, investment horizon), this would have been prudent only if the ER on the Growth and Value funds were no more than 0.1% to 0.15% higher than the ER on the TSM fund. Since TSM was 0.07%, it meant that the ER's on Growth and Value could be no more than about 0.2%. At the time, I figured at best this would have been a wash so I decided not to pursue this more complicated strategy. I considered multiple scenarios, such as planned 2011 changes in dividend tax rates. Of course, your situation may be differen...
- Thu Jul 08, 2010 4:45 pm
- Forum: Personal Finance (Not Investing)
- Topic: Evidence-Based College Thread?
- Replies: 129
- Views: 12338
I don't know how accurate these results are, but below is a BusinessWeek article that ranks schools by "Return on Investment (ROI)." ROI is a measure of lifetime earnings. The big name schools dominate the rankings. Three of the top four schools (MIT, Caltech, and Harvey Mudd) are science/engineering focused (i.e., non-liberal arts).
http://finance.yahoo.com/college-educat ... _education
http://finance.yahoo.com/college-educat ... _education
- Tue Jul 06, 2010 8:09 pm
- Forum: Investing - Theory, News & General
- Topic: What risk really is
- Replies: 80
- Views: 15823
FAILURE RATES Portfolio A Portfolio B 3% withdrawals 0% 52.6% 4% withdrawals 100% 52.6% Given this set of choices, what would you advise? Your point is well-taken. However, if the investor is "unlucky" enough to live for 35 years, instead of your 30 years, then the outcome is ... FAILURE RATES Portfolio A Portfolio B 3% withdrawals 100% 52.6% 4% withdrawals 100% 52.6% In this case, one could argue that the conservative portfolio is more risky. The point is that there are other very relevant variables, such as potential lifespan, that must be considered. This is especially true for the early retiree since his investment horizon is longer. Yes, a retiree always can reduce risk by lowering his withdraw rate. However, a more aggressi...
- Sun Jul 04, 2010 8:10 pm
- Forum: Personal Consumer Issues
- Topic: Fantasy Tour de France?
- Replies: 59
- Views: 7819
While I didn't spend too much time on my team selection, I decided to go with the odds and center the team around Contador and Cavendish (even though I don't particularly like either of them). Leipheimer was my other All Rounder. He seemed to be a good deal at 12 credits. Also, I'd like to see him do well. He deserves it. I gave no thought at all to the Climbers (De la Fuente and Lloyd). I decided to save credits here. I wanted Jens Vogt as a Domestique. He's always in the middle of things. For the same reason, I picked Sandy Casar (and he was cheaper at 4 credits). I decided to go with Hincapie as the other Domestique. I picked him primarily because I like him, although it would be great if he could win another tour stage. My only tough de...
- Thu Jul 01, 2010 4:39 pm
- Forum: Personal Consumer Issues
- Topic: Cutting Hair Myself To Save $$ and Better Results!
- Replies: 41
- Views: 6583
I've been cutting my hair for the past 35 years (since about 15). I use a regular pair of scissors that are probably 20+ years old. I could probably cut 80% of my hair in the dark, just by feel. Another advantage of cutting my own hair is that I can get a haircut any time I want. 6 in the morning. No problem. Midnight. No problem. I just need a spare 10 minutes. It really is a time saver, more than anything else.
- Tue Jun 29, 2010 9:24 pm
- Forum: Personal Finance (Not Investing)
- Topic: Money, Forbes... What magazines do you subscribe to?
- Replies: 62
- Views: 9363
Subscribe:
Consumer Reports (since 1985 or so)
Consumer Reports Money Advisor (so so)
Checkbook (from Consumers Union - a local version of Consumer Reports with ratings of plumbers, auto mechanics, etc)
BottomLine Personal (tidbits of useless information)
Purchase at Magazine Stand:
Money (most months)
Backpacker (occasional)
Runners World (occasional)
Popular Science (occasional)
Popular Mechanics (occasional)
Scientific American (occasional)
Men's Health (occasional)
Consumer Reports (since 1985 or so)
Consumer Reports Money Advisor (so so)
Checkbook (from Consumers Union - a local version of Consumer Reports with ratings of plumbers, auto mechanics, etc)
BottomLine Personal (tidbits of useless information)
Purchase at Magazine Stand:
Money (most months)
Backpacker (occasional)
Runners World (occasional)
Popular Science (occasional)
Popular Mechanics (occasional)
Scientific American (occasional)
Men's Health (occasional)
- Tue Jun 29, 2010 1:28 pm
- Forum: Personal Consumer Issues
- Topic: Preventive maintenance question [car]
- Replies: 24
- Views: 2808
There's no knowing on a coil or ignitor, 1 second they work and the next they do not. You could be parked in the garage or a shopping lot. You could be going 30 mph on a side road or 70 mph on the interstate. When they go the engine stops like when you turn off the key. Now you have a tow and a diagnosis cost. Peace of mind for $400 seems reasonable. I'll check a Honda forum, any suggestions? My ignitor failed a little over a month ago just as I was getting on the freeway on ramp. I was going about 30 mph and the engine suddenly stopped. There was no warning, other than a non-responsive feeling from a stoplight 1/2 mile earlier. AAA towed my car to my mechanic. I have a 1980 Toyota Corolla with 265K miles. I didn't know that this was somet...
- Tue Jun 29, 2010 10:54 am
- Forum: Personal Investments
- Topic: Fund Expense Ratio Vs. Tax Expenses
- Replies: 12
- Views: 2084
The expense ratios clearly suggest that the TSM fund is the better option for the 401k. However, REIT funds are less tax efficient than TSM funds. I was simply trying to find a way to identify at what point the expense ratio outweighed the tax consequences of holding a less tax-efficient fund in a taxable account. It was more of a curiosity question than anything. Sorry for all of the confusion. Yes, you were clear in your original post. I guess my point was that to fully assess the trade-off between tax consequences and expense ratios, it is often necessary to consider the complete life-cycle of the funds. Depending on the specific circumstances, the result may not be linear. I don't believe there is a simple rule of thumb, although in ge...
- Mon Jun 28, 2010 6:22 pm
- Forum: Personal Investments
- Topic: Fund Expense Ratio Vs. Tax Expenses
- Replies: 12
- Views: 2084
What I do is compute an "effective yield" for different scenario's. This yield is obtained by considering all factors that affect the total return after a given number of years (e.g., 30 years, as a long-term investor). These factors include expense ratios and the various taxes (income, dividends, capital gains) that reduce the actual return. Obviously, most of the factors can be only estimated since one doesn't know future tax rates or market conditions. For example, if an employee receives $1 in 2010, one can compute how this dollar behaves from the day it is received to the day it becomes available for spending in 2040. One might compute that this dollar will grow to $10 if put in a tax differed 401k (effective yield 8.0%), or ...
- Thu Jun 24, 2010 1:18 pm
- Forum: Personal Consumer Issues
- Topic: Vehicles you have owned...
- Replies: 162
- Views: 29741
- Tue Jun 22, 2010 7:06 pm
- Forum: Investing - Theory, News & General
- Topic: The Road to Riches
- Replies: 10
- Views: 2826
Re: taxes
The same can be said for investment costs (e.g., mutual fund expense ratios). Although they're needed, higher costs don't necessarily translate into better results. In fact, it's better to pay 0.15% to Vanguard than it is to pay 1.2% to the average firm. On the road to riches, it's the difference between driving a Corolla or a Hummer. They both get you to where you want to go but one gets you there at much lower costs. One is a need. The other is fluff.rrosenkoetter wrote:Except there is some positive to taxes... Without ANY government, how rich do you think all of us would be?usnaron wrote:taxes are like wind resistance and road friction