Search found 1637 matches

by bigred77
Fri Jul 21, 2017 11:17 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: REITs Aren't Special
Replies: 47
Views: 2706

Re: Larry Swedroe: REITs Aren't Special

Are SCV and LT Corp Bonds distinct asset classes or are they part of larger distinct asset class (equities and fixed income)? If SCV is distinct then REITs are DEFINITELY distinct in my mind. They weren't arguing that SCV and LT Corp. bonds are distinct asset classes. Rather, they were arguing that...
by bigred77
Fri Jul 21, 2017 11:07 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: REITs Aren't Special
Replies: 47
Views: 2706

Re: Larry Swedroe: REITs Aren't Special

If not REITs, how does one passively invest in Real Estate? You can't--at least not easily--and that includes REITs. REITs are to real estate what banks are to fixed income--they are in the business, but buying those stocks is not the same thing as engaging in the underlying activities (renting pro...
by bigred77
Fri Jul 21, 2017 10:54 pm
Forum: Personal Consumer Issues
Topic: Anyone else extremely frugal?
Replies: 26
Views: 1501

Re: Anyone else extremely frugal?

I am not frugal. I save 1/4 to 1/3 of my income and spend the rest as efficiently as possible (by efficient I mean I spend in ways that bring me the most happiness). It helps that I make enough where I don't have to be frugal but life is too short. If our income doubled, our spending would double (o...
by bigred77
Fri Jul 21, 2017 10:42 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: REITs Aren't Special
Replies: 47
Views: 2706

Re: Larry Swedroe: REITs Aren't Special

This is one of the few articles of Larrys that I really don't buy. There's an awful lot of data mining and subjective definitions going on there IMO. Are SCV and LT Corp Bonds distinct asset classes or are they part of larger distinct asset class (equities and fixed income)? If SCV is distinct then ...
by bigred77
Fri Jul 21, 2017 11:57 am
Forum: Investing - Theory, News & General
Topic: Do you find financial advisors to be all that bright?
Replies: 33
Views: 2154

Re: Do you find financial advisors to be all that bright?

I agree with the above. Most financial advisers, irrespective of firm, are salespeople first and foremost.

Consider yourself lucky to have had such intellectual stimulation at work prior to retiring. I doubt that's the norm.
by bigred77
Fri Jul 21, 2017 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Saving for college for a family member
Replies: 10
Views: 438

Re: Saving for college for a family member

You said your 29 and still have your own student loans to pay off. I think it's noble what your proposing but I think you may be better off giving a one time gift and focus on your own finances so early on in life. Maybe a trade off could be to research and show the new parents how to set up a 529 a...
by bigred77
Fri Jul 21, 2017 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Is it still worth buying a house in a state with insane property taxes
Replies: 59
Views: 5093

Re: Is it still worth buying a house in a state with insane property taxes

Try living in Texas where property taxes in Dallas are 2.75% of "assessed" value, which is pretty much pulled out of thin air but always increases by mid to high single digits every year. What are you complaining for? Only 2.75%? That's nothing. I'm sitting at 3.1% here south of Houston.....
by bigred77
Thu Jul 20, 2017 4:30 pm
Forum: Investing - Theory, News & General
Topic: % bogleheads of overall population
Replies: 70
Views: 8039

Re: % bogleheads of overall population

How is the data obtained? I understand that getting household income from tax database is easy but how do they obtain the net worth information? I do not believe one in every ten household across the entire united states has net worth of over $1M excluding equity in their primary residence (another...
by bigred77
Thu Jul 20, 2017 4:23 pm
Forum: Personal Consumer Issues
Topic: Homeowners Insurance Claim - Contents - Item Replacement
Replies: 8
Views: 354

Re: Homeowners Insurance Claim - Contents - Item Replacement

Wife's view: While not illegal, it makes her feel "skeezy" to be taking the money for a replacement TV and not replacing the TV just because we were able to have the old one repaired. She feels like the intended purpose for the money was to go to making us whole and to replace the 1-mo ol...
by bigred77
Thu Jul 20, 2017 3:12 pm
Forum: Personal Consumer Issues
Topic: SAT scores - whats the point??
Replies: 37
Views: 1669

Re: SAT scores - whats the point??

Because top Tech, Finance, Engineering, etc. firms who hire graduates want to only hire the best and brightest that they can. An easy way for them to do that is just piggy back off the elite colleges and universities filtering processes. SAT and GPA being the first hurdle of many in order to gain ad...
by bigred77
Thu Jul 20, 2017 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Can anyone convince me I need international stock in my portfolio?
Replies: 113
Views: 4393

Re: Can anyone convince me I need international stock in my portfolio?

I hold International at basically it's market weight. I hold it for diversification. I hold it because I believe in MPT. I hold it because I believe in efficient markets (overall). I hold it because I don't want to succumb to home country bias. I hold it because I have no reason to speculate that th...
by bigred77
Wed Jul 19, 2017 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Those Of You In a HCOLA - What's Your Financial Plan
Replies: 52
Views: 4005

Re: Those Of You In a HCOLA - What's Your Financial Plan

I think the big thing to me in HCOL locations (while young) is that you just have to accept you likely can't buy a dream house in your 20s (or maybe even 30s) unless you have family help or hit a lottery ticket (equity compensation, huge bonus, etc.) Not that you can't live in a nice place, just tha...
by bigred77
Wed Jul 19, 2017 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Newbie and New Parent: Help w/ Retirement and 529
Replies: 27
Views: 1907

Re: Newbie and New Parent: Help w/ Retirement and 529

I just read that a child with a college savings account (dedicated to him/her) is seven times more likely to attend college than one without. http://www.chartingyourfinancialfuture.com/financial-planning/10-ways-to-encourage-your-child-to-go-to-college/ While we Bogleheads might talk about the theo...
by bigred77
Tue Jul 18, 2017 5:51 pm
Forum: Investing - Theory, News & General
Topic: Cash out refinance residence to invest?
Replies: 11
Views: 837

Re: Cash out refinance residence to invest?

https://www.bogleheads.org/forum/viewtopic.php?t=5934 The market timer thread is a classic. Incredibly informative. Great read for all investors. But I don't think it's directly comparable to what the OP is about. Market Timer did not use low cost, fixed rate, tax deductible, non-callable leverage ...
by bigred77
Tue Jul 18, 2017 5:44 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 113
Views: 4884

Re: The Quest for Perfection

The assumed holding period is ultra-long-term, say, 40+ years. It is assumed that the investor is a US investor in a moderate, say, 25%, tax bracket. However, I feel that Total World should work for anywhere. Goals are (in order of importance) 1. High expected total return over many decades 2. Not ...
by bigred77
Tue Jul 18, 2017 5:24 pm
Forum: Investing - Theory, News & General
Topic: Cash out refinance residence to invest?
Replies: 11
Views: 837

Re: Cash out refinance residence to invest?

You won't get a lot of support for this but I would probably consider it personally in very specific circumstances. Like if I was still early in my career and I could borrow a sum significant when compared to my existing portfolio at low, tax deductible rates with no call risk or interest rate risk ...
by bigred77
Tue Jul 18, 2017 5:15 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 113
Views: 4884

Re: The Quest for Perfection

I have been trying to figure out what a theoretically ideal/perfect hypothetical portfolio might be. You'd be much better off long-term if you just stuck to the 6 asset sub-classes in your avatar image. :wink: Believe me, 30 years down the road, when your mental faculties start to slow down, and yo...
by bigred77
Tue Jul 18, 2017 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Rates in 3 years?
Replies: 26
Views: 2237

Re: Mortgage Rates in 3 years?

What does she expect to make income wise? That's the biggest driver.

If it's just your income, I'd say you probably ought to keep the house prices under 250k. I doubt that goes very far in Boston.
by bigred77
Tue Jul 18, 2017 3:40 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 113
Views: 4884

Re: The Quest for Perfection

My counter to you is that why is what you proposed "better" than sticking everything in 1 position: Vanguard LifeStrategy Growth. I know for a fact my strategy would be easier to implement, monitor, require less time tweaking, encounter lower costs, and need far less transactions to mainta...
by bigred77
Mon Jul 17, 2017 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Is it still worth buying a house in a state with insane property taxes
Replies: 59
Views: 5093

Re: Is it still worth buying a house in a state with insane property taxes

As someone whose property taxes have now exceeded 5 figures per year myself, it's not very fun. But I knew what those taxes would be when I bought the property. It's just the cost of doing business. If I didn't want to pay those taxes I had 3 options: buy a smaller property, buy somewhere else, or r...
by bigred77
Mon Jul 17, 2017 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4607

Re: When to max out 401k (Aspiring Early Retiree)

Instead of trying to plan out the next 23 years of your life I would just try to focus on the stuff you can control today: 1.) max out your 401k with 18k in employee contributions per year. Do this every year. 2.) max out a Roth IRA with a 5.5k contribution per year. Do this every year. 3.) Plan out...
by bigred77
Mon Jul 17, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: What advice to give 21 year old?
Replies: 94
Views: 4586

Re: What advice to give 21 year old?

My advice is simply to make a career in the space where you get paid based on 2 and 20 and then invest your personal assets in a boglehead portfolio :D
by bigred77
Mon Jul 17, 2017 1:16 pm
Forum: Investing - Theory, News & General
Topic: Do you pay fees to buy funds or ETFs?
Replies: 46
Views: 2521

Re: Do you pay fees to buy funds or ETFs?

I use a number of Vanguard ETFs within the Fidelity 401k brokerage option, so I pay probably 30 bucks or so a year when i rebalance using these ETFs. I could probably find suitable fee-free Fidelity alternatives but I've just stuck with the current plan. It adds less than 1 basis point per year to m...
by bigred77
Mon Jul 17, 2017 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie and New Parent: Help w/ Retirement and 529
Replies: 27
Views: 1907

Re: Newbie and New Parent: Help w/ Retirement and 529

Sounds like the target date retirement funds might be a good choice for you. You can pick one (maybe 2050) and just put all your investments into that (both traditional and Roth accounts). Step one would be to max out the 401k and both Roth IRA's if possible. Can you save that much? Those should be ...
by bigred77
Fri Jul 14, 2017 9:57 pm
Forum: Investing - Theory, News & General
Topic: How are folks handling the unprecedented rise in the market ?
Replies: 141
Views: 12273

Re: How are folks handling the unprecedented rise in the market ?

I guess I just can't relate... The stock market is up. It's supposed to go up over time. That's why we all put money into it. Since the turn of the century the S&P500 is up less than 3% real. Over the past 10 years we're up 5.5% real. The market has not been so great as to cause me angst. It nee...
by bigred77
Thu Jul 13, 2017 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of Oil/Gas Royalty
Replies: 21
Views: 934

Re: Sale of Oil/Gas Royalty

When you file your Schedule E, are you taking a depletion allowance? If so, that might affect your cost basis in the underlying interest, but I don't know the intricacies of whether it actually does or how to account for it. Out of 12 wells, it seems that 7 were producing when inherited, and 5 came...
by bigred77
Thu Jul 13, 2017 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of Oil/Gas Royalty
Replies: 21
Views: 934

Re: Sale of Oil/Gas Royalty

Well if you sell for more than your cost basis, you will have long term capital gains. If it was producing when you inherited it, and if that was oh 3-10 years ago, I doubt you have a capital gain. Prices were much better back then. In fact, I assume an accountant worth their salt could help you sho...
by bigred77
Thu Jul 13, 2017 12:52 pm
Forum: Personal Consumer Issues
Topic: Hotel tipping: how much to leave?
Replies: 72
Views: 3592

Re: Hotel tipping: how much to leave?

I know many people do, but I don't tip housekeeping at hotels. Not at a low end motel and not at the Four Seasons. I will tip the guy who brings my luggage up to the room and the I will tip whoever brings my food if I order room service. No deep reasoning behind this, just the routine I've gotten in...
by bigred77
Thu Jul 13, 2017 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Do you count vehicle equity in net worth?
Replies: 178
Views: 6789

Re: Do you count vehicle equity in net worth?

I track my networth and update it frequently. It's probably the number 1 metric I use to gauge my financial progress. I don't include cars, just financial assets and my house minus all debt. If I had a car loan I'd look at it as a liability without a corresponding asset (just like I would a student ...
by bigred77
Thu Jul 13, 2017 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Corporate Bond Website?
Replies: 34
Views: 1810

Re: Corporate Bond Website?

Just because you invest in individual corporate bonds with the intention of holding them to maturity, does not mean your principal will be unaffected by interest rate changes. If you buy 10k worth of bonds and rates go up, when you log in tomorrow you will see less than 10k as your account balances...
by bigred77
Tue Jul 11, 2017 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Structuring payoff offer for house in foreclosure, above water
Replies: 17
Views: 1648

Re: Structuring payoff offer for house in foreclosure, above water

I don't know where the IRS lien fits in the hierarchy of claims to be paid from sale but if the house you think is worth 600k sells for 178k or more than I'm confident the primary mortgage holder is made whole. I can't imagine they would deal with you at all. Especially because their likely just the...
by bigred77
Tue Jul 11, 2017 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: Corporate Bond Website?
Replies: 34
Views: 1810

Re: Corporate Bond Website?

Just because you invest in individual corporate bonds with the intention of holding them to maturity, does not mean your principal will be unaffected by interest rate changes. If you buy 10k worth of bonds and rates go up, when you log in tomorrow you will see less than 10k as your account balances....
by bigred77
Fri Jul 07, 2017 1:53 pm
Forum: Investing - Theory, News & General
Topic: Weak Evidence for International in Vanguard Research - Am I Missing Something?
Replies: 74
Views: 4997

Re: Weak Evidence for International in Vanguard Research - Am I Missing Something?

There are some things in investing that I pretty much accept as inevitable: - There will be another recession eventually and stocks will suffer big (20%, 30% 40%, 50%, maybe even more) losses. - There will be another decade or longer will US treasuries outperform stocks - There will be a decade or l...
by bigred77
Sat Jul 01, 2017 8:11 pm
Forum: Investing - Theory, News & General
Topic: would you take a new mortgage to invest in stock market?
Replies: 30
Views: 2652

Re: would you take a new mortgage to invest in stock market?

Yes I would. But it depends on age and where I am positioned over my investing lifecycle. If I have a paid off house in my early 40s, and mortgage rates are like they are today, I absolutely would. If I have a paid off house and I'm in my early 60s and in/close to retirement. I would not. I wouldn't...
by bigred77
Fri Jun 30, 2017 6:39 am
Forum: Personal Consumer Issues
Topic: How did you handle the costs of your child's wedding?
Replies: 170
Views: 11810

Re: How did you handle the costs of your child's wedding?

I got married half a decade ago. First in my social circle. My wife and I were the only ones to foot the bill ourselves, simply because there was no family money available to us. Everyone else I know had parents who paid the majority of costs. Our wedding and honeymoon and everything sans engagement...
by bigred77
Tue Jun 27, 2017 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: advice on how to invest inheritance wisely
Replies: 12
Views: 1129

Re: advice on how to invest inheritance wisely

One thing I'd add is if your still a student I assume your taxable income is low. You may want to consider withdrawals from the inherited IRAs in excess of the RMDs to fill up space in lower tax brackets. You don't have to spend the money, just withdraw it and reinvest it in a taxable account.
by bigred77
Tue Jun 27, 2017 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth Contributions for lower PMI
Replies: 2
Views: 287

Re: Withdraw Roth Contributions for lower PMI

I would not touch your Roth funds in this situation. That space is precious. Talk to another mortgage broker. It's fairly easy avoid PMI with a 10% down payment. You can get a standard 30 year fixed for 80% of the purchase price, put 10% down, and get a piggy back loan for the remaining 10% at a sli...
by bigred77
Mon Jun 26, 2017 6:33 pm
Forum: Personal Consumer Issues
Topic: Best way to look for a "long-term" rental
Replies: 6
Views: 711

Re: Best way to look for a "long-term" rental

Airbnb.com
VRBO.com
by bigred77
Mon Jun 26, 2017 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Looking into selling a structured settlement and need some advice
Replies: 66
Views: 3979

Re: Looking into selling a structured settlement and need some advice

I guess just to be a dissenting opinion, I don't think the upfront offer is unreasonable. You are still facing credit risk of the entity making the payments staying solvent for maybe 70+ years and you are facing inflation risk for 70+ years hoping it stays close to 3% or so. Also if you keep the set...
by bigred77
Mon Jun 26, 2017 6:28 am
Forum: Personal Finance (Not Investing)
Topic: Paying bills
Replies: 3
Views: 672

Re: Paying bills

Fidelity would be a viable option for you to consolidate. They have very good cash management products and a good online bill pay setup.
by bigred77
Mon Jun 26, 2017 6:25 am
Forum: Investing - Help with Personal Investments
Topic: Looking into selling a structured settlement and need some advice
Replies: 66
Views: 3979

Re: Looking into selling a structured settlement and need some advice

Sounds pretty easy to model. You know the amount and timing of the cashflows, you have an offer on the table which can be used as the net present value of the cashflows, all you need to calculate is the discount rate used by the potential buyer (the IRR). I'm sure if you post all the details someone...
by bigred77
Sun Jun 25, 2017 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Analysis of my portfolio as I contemplate early retirement?
Replies: 8
Views: 946

Re: Analysis of my portfolio as I contemplate early retirement?

You have 19 years worth of expenses in your taxable account with the ability to tax gain harvest and do Roth conversions to optimize your taxes. That's with a real return of 0. That brings you to 70 and you will have had 2 decades to leave your tax advantaged accounts to grow untapped. You are golde...
by bigred77
Fri Jun 23, 2017 8:57 am
Forum: Personal Finance (Not Investing)
Topic: 401k loan as "bridge loan" - own current home in cash - poke holes in this plan
Replies: 24
Views: 1128

Re: 401k loan as "bridge loan" - own current home in cash - poke holes in this plan

I have nothing against 401k loans but the limit is typically 50% of your balance or 50k, whichever is less. Can you delist your home and take out a HELOC for your down payment? Many places won't put a HELOC on a property listed for sale.
by bigred77
Wed Jun 21, 2017 4:53 am
Forum: Personal Finance (Not Investing)
Topic: Co-workers advising to buy house RIGHT NOW
Replies: 63
Views: 6258

Re: Co-workers advising to buy house RIGHT NOW

Enjoy your Glenfiddich. Stop worrying about what everyone is telling you to do. If you feel content, don't let someone knock you out of your comfort level. Regardless of where home prices are headed, this is the best advice - thanks ERISA Stone. We just have to work on how to stop worrying about wh...
by bigred77
Thu Jun 15, 2017 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: house or condo for a frequent traveling family?
Replies: 17
Views: 1740

Re: house or condo for a frequent traveling family?

I thought houses were always a much better investment then condos, could you be a little more specific about the differences in how they appreciate? thanks! It's hard to be specific but in general there is no hard and fast rule that says houses appreciate at a different rate than condos. All reside...
by bigred77
Thu Jun 15, 2017 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: House closing in 2 weeks. RE Attorney made a mistake and won't fess up. What to do???
Replies: 8
Views: 1169

Re: House closing in 2 weeks. RE Attorney made a mistake and won't fess up. What to do???

Yeah with real estate transaction you just do the best you can do identify and eliminate fluff as the process moves along. Then go over the closing settlement statement as closely as possible (I've always found at least one minor mistake). Then just know that there is always something that will pop ...
by bigred77
Thu Jun 15, 2017 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate Prices, expecting over listing?
Replies: 8
Views: 894

Re: Real Estate Prices, expecting over listing?

It has to do with how hot the market is IMO. If I price my house right at market value and it would go under contract in under a week then that's a hot market. I probably want to price it a little under market to try and get multiple offers. Once you send out word to someone who's already made an of...
by bigred77
Thu Jun 15, 2017 12:25 pm
Forum: Investing - Theory, News & General
Topic: How riskier are Aaa corporate bonds?
Replies: 14
Views: 1410

Re: How riskier are Aaa corporate bonds?

I'd also say in most instances, a retail investor shouldn't have any need to purchase individual corporate bonds. For the vast majority, a bond fund will do just fine. Cd's are also a fine choice. If you insist on individual securities, I think treasuries would work just fine. If you are buying indi...
by bigred77
Thu Jun 15, 2017 12:19 pm
Forum: Investing - Theory, News & General
Topic: When you purchase shares, where does the money go?
Replies: 19
Views: 1613

Re: When you purchase shares, where does the money go?

So the mutual fund company purchases the shares. Where does the money go after that? Meaning does a portion of it go to Apple, Microsoft, the companies that make up the funds? When the mutual fund purchases shares, they do so on the open market (I'm not counting IPOs here, because most index funds ...
by bigred77
Thu Jun 15, 2017 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage amount vs savings vs interest deduction
Replies: 26
Views: 1604

Re: Mortgage amount vs savings vs interest deduction

Well I would probably aim to put down 300k and play with the numbers from there. - I believe the mortgage tax deduction is limited to interest charged on up to $1M in principal, plus I assume you would itemize even with a paid off property (your property taxes alone probably put you over the line), ...

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