Search found 2540 matches

by MathWizard
Thu Sep 14, 2017 5:46 pm
Forum: Personal Consumer Issues
Topic: Retirement - Living in Colorado
Replies: 33
Views: 3304

Re: Retirement - Living in Colorado

Colorado Springs is listed in: https://www.thestreet.com/story/13291294/2/the-15-best-places-to-live-in-the-united-states.html but so is Sioux Falls SD. That is about 15 minutes from Minn, and has no state income tax, unlike Minn or Colorado, though Colorado has a lower top tax rate than Minn. See h...
by MathWizard
Tue Sep 12, 2017 11:44 am
Forum: Personal Finance (Not Investing)
Topic: The 10 year car ownership "rule"
Replies: 95
Views: 10245

Re: The 10 year car ownership "rule"

I've bought cars more than 10 years old. They just have to be in good mechanical shape.
Mileage is a little more important for me. I also work on my cars, so that may allow me more leeway on
the age of the car.
by MathWizard
Tue Sep 12, 2017 11:42 am
Forum: Investing - Theory, News & General
Topic: [WSJ] Your Tolerance for Investment Risk Is Probably Not What You Think
Replies: 49
Views: 5540

Re: [WSJ] Your Tolerance for Investment Risk Is Probably Not What You Think

There is tolerance of risk, and need to take risk. I also do not ascribe to the notion that there are truly risk-free assets. There are only assets which have risks relative to one another. The so-called risk-free assets (FDIC insured or Treasuries) still have inflation risk and for a retiree, longe...
by MathWizard
Fri Sep 08, 2017 1:58 pm
Forum: Investing - Theory, News & General
Topic: Actually feeling pretty good about my active decisions
Replies: 20
Views: 2551

Re: Actually feeling pretty good about my active decisions

I'm happy for you. You need to choose your own way to financial success. I would not advocate this to anyone else, as it is risky, but maybe you are one of the few who has the time and ability to be able to do this. We need some active investors risking their own money to make these value decisions ...
by MathWizard
Fri Sep 08, 2017 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Scanning Documents for Long Term Storage
Replies: 20
Views: 2022

Re: Scanning Documents for Long Term Storage

If it were me, I'd have Copyworks just scan them onto a USB drive, thus would be cheaper than buying a high-speed scanner, and faster than using an all-in-one scanner. You have to remove all staples, and just hand them the stack. Alternatively, I'd buy an SD card for my digital camera, and just snap...
by MathWizard
Thu Sep 07, 2017 12:48 pm
Forum: Investing - Theory, News & General
Topic: What does "beat the market" mean?
Replies: 40
Views: 1677

Re: What does "beat the market" mean?

Really neither. My version is: It is impossible to the weighted average return over all investors in a market to beat the average return of the market. Boiled down this says that X is not greater than X. The last part of the sentence is the return of a total market index fund (TMIF) before costs, a...
by MathWizard
Thu Sep 07, 2017 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: how often does high ACT score == scholarship?
Replies: 85
Views: 4766

Re: how often does high ACT score == scholarship?

OP, It was our experience that state universities printed in black and white the amount of scholarship provided based on the ACT score, e.g. 33-36 = full tuition, 29-32 = $2500 per year, etc. I assume you've read their material? Good luck! A quick search indicates Wisconsin does not have such autom...
by MathWizard
Thu Sep 07, 2017 12:27 pm
Forum: Investing - Theory, News & General
Topic: What does "beat the market" mean?
Replies: 40
Views: 1677

Re: What does "beat the market" mean?

Really neither. My version is: It is impossible to the weighted average return over all investors in a market to beat the average return of the market. Boiled down this says that X is not greater than X. The last part of the sentence is the return of a total market index fund (TMIF) before costs, at...
by MathWizard
Wed Sep 06, 2017 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: What is the main purpose of holding your current job?
Replies: 66
Views: 5423

Re: What is the main purpose of holding your current job?

For the money, but also for a sense of purpose.

I could do with less stress though. I hope to reach FI within the next 3 years, then I think the
stress will be less, as I could always just walk away.
by MathWizard
Wed Sep 06, 2017 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: When calculating net worth, how do you value your house?
Replies: 167
Views: 8386

Re: When calculating net worth, how do you value your house?

I use the property assessment. Net worth really does not mean much, but then I could sell my house and rent. If I don't make the equity of my house part of NetWorth, I am suddenly worth more just because I sold my house, when it really should not have changed my NW by very much. I'm much more intere...
by MathWizard
Wed Sep 06, 2017 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Wife believes 7+% returns from stock market are guaranteed
Replies: 64
Views: 5629

Re: Wife believes 7+% returns from stock market are guaranteed

I agree with Victoria that the answers seem condescending towards the wife. We are all investors here, so we must believe in the stock market, at least with a low cost diversified portfolio. In fact, I think the OP is fortunate. Many of the people I talk with consider the stock market to be rigged a...
by MathWizard
Tue Sep 05, 2017 9:55 am
Forum: Investing - Theory, News & General
Topic: Do retiree BHs actually run down their portfolios?
Replies: 73
Views: 8049

Re: Do retiree BHs actually run down their portfolios?

Not retired yet, but soon. I plan to withdraw more from my portfolio than a standard 4%, before age 70, especially from tax deferred up to the top of the 15% bracket to defer SS benefits until 70 convert to ROTH and avoid some RMDs spend more early on while they are young and able to travel In other...
by MathWizard
Mon Sep 04, 2017 10:06 pm
Forum: Investing - Theory, News & General
Topic: How much weight do you put on back-testing?
Replies: 53
Views: 3284

Re: How much weight do you put on back-testing?

All the data we know is from the past.
What else can we do except back test?
by MathWizard
Sun Sep 03, 2017 11:57 am
Forum: Investing - Help with Personal Investments
Topic: effect of home purchase on AA
Replies: 11
Views: 1001

Re: Affect of home purchase on AA

The theory is that one should control the expected return and expected risk of a portfolio by adjusting the stock/bond allocation appropriately. If you arrived at the 50/50 allocation by some sort of reasoning along those lines, then when you add money or take money out and you are now significantl...
by MathWizard
Wed Aug 30, 2017 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: How much sooner could you retire with NO property taxes?
Replies: 116
Views: 7201

Re: How much sooner could you retire with NO property taxes?

Hard to see how this is actionable. The way would be if you are moving someplace with no property taxes. Maybe actionabe if you were discussing downsizing, and how that affected total expenses, property taxes which would just be one of these (maintenance, utilities, insurance, etc.). There might be ...
by MathWizard
Sat Aug 26, 2017 10:48 pm
Forum: Personal Consumer Issues
Topic: Bosch dishwasher?
Replies: 90
Views: 6589

Re: Bosch dishwasher?

We just bought a Bosch to replace our whirpool that died.

The new $800 Bosch is so much quieter that I sometimes am not sure I have started it.
by MathWizard
Sat Aug 26, 2017 9:16 am
Forum: Investing - Help with Personal Investments
Topic: Advantages/disadvantages of using roth for nonretirement
Replies: 14
Views: 1340

Re: Advantages/disadvantages of using roth for nonretirement

If you are leaving IRA room, go ahead and put money in a ROTH. Some places will keep track of what you have contributed. You can always do it on a spreadsheet or keep old check registers with notes. It will become moot once you turn 59 1/2 My credit union has Roth IRA CD's. You could also use those,...
by MathWizard
Fri Aug 25, 2017 9:39 am
Forum: Investing - Help with Personal Investments
Topic: Taxes and safe swr
Replies: 41
Views: 1985

Re: Taxes and safe swr

i-orp

takes Taxes from tax deferred accounts and taxable benefits from SS into account

See:

Code: Select all

https://www.i-orp.com/gamma/index.html
by MathWizard
Thu Aug 24, 2017 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"
Replies: 119
Views: 13769

Re: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"

But in the reference article, I only find the quote: William Bengen, author of ``Conserving Client Portfolios During Retirement,'' suggests that retirees reduce the amount they withdraw from their investment portfolios by 5 percent to 10 percent. If this turns out to be a long recession, ``portfoli...
by MathWizard
Thu Aug 24, 2017 9:29 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on emergency fund/cash options
Replies: 13
Views: 1078

Re: Opinions on emergency fund/cash options

Are you maxing a ROTH IRA?

That is my tier 2 EF.

You can always pull contributions.
by MathWizard
Thu Aug 24, 2017 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"
Replies: 119
Views: 13769

Re: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"

Here's what's missing: behavior. There was a 2008 article, somewhere, where Mr. Bengen panic-sold his own and client portfolios, due to the fear that "this time is different". There never was a follow up article as to when he got back in, etc. He sold all stocks. The article is gone and "it's like"...
by MathWizard
Wed Aug 23, 2017 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: Living Expenses - what's "reasonable"?
Replies: 101
Views: 8834

Re: Living Expenses - what's "reasonable"?

I expect to need $56K after health ins. and taxes as a married couple. This is based on expenses as I have them now, with a paid off house. Some expenses are medicine, dental, car replacement, car and house/yard maintenance, food, clothing, heating/cooling, utilities fuel expenses for car, expenses ...
by MathWizard
Tue Aug 22, 2017 11:13 pm
Forum: Personal Consumer Issues
Topic: Eclipse Traffic: predictions vs reality?
Replies: 64
Views: 4756

Re: Eclipse Traffic: predictions vs reality?

Traffic was worse coming back from Missouri. We had travelled down the day before and got close. Most people were close and getting in final position early. Traffic was heavy on I 70 because the eastern part of Missouri had heavy clouds and rain, and many are traveled east to get out form under the ...
by MathWizard
Mon Aug 21, 2017 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Investments that Colleges Don't Count Against You.
Replies: 18
Views: 2890

Re: Investments that Colleges Don't Count Against You.

They will count the money in your savings whether you invest or not.

You can pay more on your mortgage if you have one. House equity is no longer counted.

Again though, it is unlikely your savings account will put you over
the wealth limit.
by MathWizard
Mon Aug 21, 2017 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Investments that Colleges Don't Count Against You.
Replies: 18
Views: 2890

Re: Investments that Colleges Don't Count Against You.

They will count the money in your savings whether you invest or not.

You can pay more on your mortgage if you have one. House equity is no longer counted.

Again though, it is unlikely your savings account will put you over
the wealth limit.
by MathWizard
Mon Aug 21, 2017 4:10 pm
Forum: Personal Consumer Issues
Topic: "Forget Tough Passwords: New Guidelines Make It Simple"
Replies: 43
Views: 5437

Re: "Forget Tough Passwords: New Guidelines Make It Simple"

After working in IT for decades, I believe the risk of overzealous password requirements is counteracted by the fact that it causes many people to write them down somewhere (usually close to the computer) and/or use words/numbers easily guessable (address, city born, kids bdays, kids names, anniver...
by MathWizard
Wed Aug 16, 2017 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Plan for making child pay for part of college
Replies: 111
Views: 5855

Re: Plan for making child pay for part of college

My experience: I have put 4 kids through college (2 should graduate in 2018) and hundreds of corporate-sponsored scholars. The 100th PhD has graduated just recently from the program I initiated 30 years ago. Approach was identical: the kids can apply to the world's "best" colleges and all their cos...
by MathWizard
Tue Aug 15, 2017 12:02 pm
Forum: Personal Consumer Issues
Topic: How far would you travel to see The Eclipse?
Replies: 259
Views: 14555

Re: How far would you travel to see The Eclipse?

Between 3.5 and 12 hours. I'd planned to drive 12 hours to one with friends back in the 70's ,
but bailed at the last minute. I'm driving 3.5 hrs to this one, hence the range of time.
by MathWizard
Tue Aug 15, 2017 11:24 am
Forum: Personal Consumer Issues
Topic: What kind of hotel do you get on business travel?
Replies: 44
Views: 3364

Re: What kind of hotel do you get on business travel?

Holiday Inn Express, Comfort Suites, Days Inn,
but usually the conference hotel which is typically more expensive.

If I don't otherwise need a car, I found that getting a cheap hotel and
renting a car to get to the conference (and paying to park) is typically
more expensive.
by MathWizard
Mon Aug 14, 2017 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: What % of income to buy a car is not excessive?
Replies: 48
Views: 3596

Re: What % of income to buy a car is not excessive?

I don't change cars unless it is needed. I need a car to commute, so a car is just an expense to be borne when needed, like a new furnace or refrigerator. I pretty much drive the wheels off, then buy another car. I just both a different vehicle, getting rid of a 2001. I paid cash, 16.25 % of gross i...
by MathWizard
Mon Aug 14, 2017 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: SP500/Total Stock Market
Replies: 23
Views: 1550

Re: SP500/Total Stock Market

Picking the top of a bubble to the bottom of a recession will give you a bad representation of overall success. If you had pulled money out before the crashes and put money back in right after the bottom, you'd either be a rich genius or you'd be behind bars for insider trading. I would ignore this ...
by MathWizard
Fri Aug 11, 2017 12:26 pm
Forum: Investing - Theory, News & General
Topic: Anyone Out There Who Has Failed To Stick To Their Long Term Investing Plan?
Replies: 35
Views: 3973

Re: Anyone Out There Who Has Failed To Stick To Their Long Term Investing Plan?

My plan has evolved, but I'd say I have stuck with it for at least the last 25 years. I stuck with it through the 2000's . I was about $100K down new year's eve 2008/9 and was able to joke about it. It went down even further through March 20009. I am actually pretty conservative financially, but I t...
by MathWizard
Wed Aug 09, 2017 11:14 am
Forum: Investing - Theory, News & General
Topic: news yesterday that Buffett has $100,000,000,000 in cash now
Replies: 65
Views: 8788

Re: news yesterday that Buffett has $100,000,000,000 in cash now

If you want to know why BRK is hold a large amount of cash, get it from the horse's mouth: https://www.cnbc.com/2017/05/05/warren-buffett-reveals-whats-holding-him-back-from-putting-berkshires-cash-to-work.html or for another analysis of why he might want cash around: http://www.barrons.com/articles...
by MathWizard
Tue Aug 08, 2017 12:23 pm
Forum: Investing - Help with Personal Investments
Topic: What is an appropriate lower risk asset allocation once one has "won the game"
Replies: 50
Views: 6123

Re: What is an appropriate lower risk asset allocation once one has "won the game"

Nobody can say what you should have, only what has been reported in historical studies, or what they have done and why. I'll do the latter. I am risk averse, but having started marriage (and taking in debt) in the very early 1980's, inflation is one of the biggest risks to me. I remember the phrase ...
by MathWizard
Tue Aug 08, 2017 11:28 am
Forum: Investing - Help with Personal Investments
Topic: How much cash should I have in my bank for emergency funds.
Replies: 29
Views: 2109

Re: How much cash should I have in my bank for emergency funds.

Answer withdrawn. I read $40K/yr after taxes, not $40K/month.
by MathWizard
Sun Aug 06, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 276
Views: 23828

Re: A poll: How much money do you want to retire?

Expect to retire with 1.25 to 1.5 Million in investments, between 62 and 65 years of age.

My estimate assumes 75% of SS, and an estimate of expense, including medical, and state and federal income taxes.
by MathWizard
Fri Aug 04, 2017 4:07 am
Forum: Investing - Theory, News & General
Topic: Are value stocks safer or more risky?
Replies: 49
Views: 3862

Re: Are value stocks safer or more risky?

On the whole, neither, since the market prices in the risk. They do represent an opportunity. Exxon after the Valdez disaster (oil spill) looking like it might be facing crushing fines and costs for the cleanup. The press was especially bad. The drop in share price included investor's estimates of t...
by MathWizard
Fri Aug 04, 2017 3:41 am
Forum: Investing - Theory, News & General
Topic: Study: Who Sold Stock During the 2008-9 Crash?
Replies: 85
Views: 7342

Re: Study: Who Sold Stock During the 2008-9 Crash?

Somebody had to be selling, since I was buying.

Retirees were probably forced to sell some to satisfy RMDs, unless they
were pulling RMDs solely out of their bond allocation.
by MathWizard
Thu Aug 03, 2017 4:12 pm
Forum: Personal Consumer Issues
Topic: Finding ways to save even more money.
Replies: 11
Views: 1671

Re: Finding ways to save even more money.

Sadly, college system has become such that Galois himself wouldn't get in a good school, if he didn't pay attention to extracurricula. Which schools do you mean? I'll grant you Stanford, Harvard, etc. But a flagship state school, especially a land-grant will accept you based on academic performance...
by MathWizard
Tue Aug 01, 2017 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: How do you decide if you can afford something?
Replies: 63
Views: 3790

Re: How do you decide if you can afford something?

Borrowing for an item that depreciates is the road to ruin. I borrowed when I needed to, not because I could. I always had a plan to pay it back, and always less than a loan officer was ready to offer me. For college, to increase my human capital. For wedding ring set, to marry my wife. I was moving...
by MathWizard
Tue Aug 01, 2017 11:58 am
Forum: Investing - Theory, News & General
Topic: "the top 1 percent of families had $1.08 million or more saved in 2013."
Replies: 26
Views: 4058

Re: "the top 1 percent of families had $1.08 million or more saved in 2013."

$1.08 million seems to small if we are talking about wealth in a household. Plugging $1.08 million and 0 for other assets/debts into the site: http://wealthometer.org/US/calculator2.html returns 97th percentile for a one person household, and 94th percentile for a 2 person household. I think the num...
by MathWizard
Mon Jul 31, 2017 2:48 pm
Forum: Investing - Theory, News & General
Topic: What was the expense ratio of Vanguard's S&P 500 fund in 1976
Replies: 17
Views: 2354

Re: What was the expense ratio of Vanguard's S&P 500 fund in 1976

Thanks! It sure came a long way down! I looked at the thread and saw that their SEC filings indicated they raised their ER during 2008/2009. Interesting. Makes sense...if they're operating at-cost and those costs are fixed, a 40%+ drop in revenues would be quite the blow. My TIAA-CREF expenses doub...
by MathWizard
Mon Jul 31, 2017 2:41 pm
Forum: Investing - Theory, News & General
Topic: Preparing for change = personal financial planning implications
Replies: 10
Views: 1001

Re: Preparing for change = personal financial planning implications

My biggest worry is that there will be less demand for capital, which will drive down rates of return, which will mean that I will need more money. The reason for a lower demand for capital will be a greater move toward on-line purchase of goods. The cloud and business which will do payroll, etc, fo...
by MathWizard
Tue Jul 25, 2017 12:02 am
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6291

Re: 5% fee per year to buy s&p500 with principle gaurantee

I'm not sure leverage is he correct term here. You are really just insuring against a drop. 5% seems way too high. The SP500 is not going to drop to zero. (If so, any guarantee you have is probably worthless too as the US has now become worthless.) On a 25% drop, your get 25% for your 5% insurance p...
by MathWizard
Mon Jul 24, 2017 11:44 pm
Forum: Personal Finance (Not Investing)
Topic: Pay yourself first.
Replies: 43
Views: 4025

Re: Pay yourself first.

Pay yourself first if you want to be successful. People who pay themselves last find that there is never enough at the end of the month. Just human nature, I think. Think how painful it would be to make the decision of how much to put away at the end of each month, especially if you have a spouse th...
by MathWizard
Sun Jul 23, 2017 11:04 pm
Forum: Investing - Theory, News & General
Topic: Do you find financial advisors to be all that bright?
Replies: 53
Views: 5057

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

If you are asking whether a FA can consistently help you best the market after fees, consider that the FA could just invest on the margin and make loads of money. So consider that you won't find such an advisor. Regarding whether they are bright or not, I know CPAs who give tax advice who are sharp,...
by MathWizard
Sat Jul 22, 2017 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11698

Re: What's your personal savings rate?

I started out at 13.5% and kept increasing every year. 30 years later, I'm up to 45% . I no longer have kids in college and no debt (house paid off). Yes, I did count the employer's contribution as part of gross income. This does not include earnings from investments or short term savings.
by MathWizard
Sat Jul 22, 2017 10:35 pm
Forum: Personal Consumer Issues
Topic: How much electricity are you using and how expensive it is?
Replies: 93
Views: 4567

Re: How much electricity are you using and how expensive it is?

Averaged over the year, we pay about $90 a month each for electricity and for nat gas. nat gas is much cheaper heating option than anything other than heat pumps or passive solar. Our house is a split foyer, 1200 sq ft per floor, with an unheated attached garage. We also have deciduous trees on the ...