Search found 51 matches

by PatrickS
Mon Jun 21, 2010 12:10 pm
Forum: Investing - Theory, News & General
Topic: John Reed, Hyperinflation & Depression (anyone read it?)
Replies: 18
Views: 7408

John Reed, Hyperinflation & Depression (anyone read it?)

I've read some of his real estate books and thought they were decent (not you typical hype no money down crap). I'm on his email list and just received an ad for his new book "Hyperinflation & Depression," which is a guide to protecting your wealth when (not if) we get to a point where we either hav...
by PatrickS
Thu Mar 04, 2010 7:06 pm
Forum: Investing - Theory, News & General
Topic: At What Point Do You Have Enough?
Replies: 69
Views: 11880

About a year later he missed working so much that he got a full time job and has been with it ever since. I've seen two attempted early retirements. My brother and a close friend. Neither one worked out. Not because of finances, but because of boredom. I'm glad I saw them because I might have tried...
by PatrickS
Mon Jun 15, 2009 11:27 am
Forum: Investing - Theory, News & General
Topic: Are you 'age in bonds' or 'static allocation'?
Replies: 62
Views: 9644

49 years old. 70/30 equity/fixed I not going to budge until I reach a net worth capable of sustaining my retirement. Actually, I might increase the equity portion if things get bad enough. It's a gamble and the most likely factor to cause it's failure would be inability to continue working. That rem...
by PatrickS
Thu Jun 11, 2009 7:55 pm
Forum: Investing - Theory, News & General
Topic: What are the drawbacks,if any,of the Boglehead philosophy?
Replies: 111
Views: 13609

It's boring because you don't trade much.
by PatrickS
Tue May 19, 2009 3:57 pm
Forum: Investing - Theory, News & General
Topic: How Capital Gains efficient are Vanguard ETfs vs Ishares?
Replies: 9
Views: 2806

Wasn't there something fundamentally different about the VG Vipers from other ETFs in high redemption periods that made them more susceptible to capital gains distribution? If I remember correctly, someone argued that they may be less tax-efficient than other ETFs because they are all tied to the un...
by PatrickS
Mon Apr 27, 2009 5:05 pm
Forum: Investing - Theory, News & General
Topic: Guess the I-bond fixed rate
Replies: 30
Views: 4882

0.5%
Reasoning: none
by PatrickS
Sat Apr 25, 2009 11:40 am
Forum: Investing - Theory, News & General
Topic: predicting the end of DB pension plans...
Replies: 93
Views: 12052

I guess it's because I'm younger, but as others have hinted at in this thread, I still don't understand how people can seriously think that DB gravy trains are sustainable. You work for 20-30 years, you stop working, but you expect to still get paid for the rest of your life (including health insur...
by PatrickS
Wed Apr 22, 2009 5:26 pm
Forum: Investing - Theory, News & General
Topic: The Rage of the Privileged Class Article
Replies: 106
Views: 14473

Personally I have a lot of anger towards California - a state that can't balance its budget, educate its children, refine its own gas, yet wants to set environmental standards for the rest of the US, has an agricultural economy based on federal gov't subsidies and slave-like imported labor from for...
by PatrickS
Mon Apr 20, 2009 3:53 pm
Forum: Investing - Theory, News & General
Topic: The Rage of the Privileged Class Article
Replies: 106
Views: 14473

I don't recall feeling any sense of entitlement during the dot com era working as an electrical engineer. I do recall studying on weekends while the students in easier disciplines went out to party when I was in the university (self paid by the way). We're all posting on this site thanks to engineer...
by PatrickS
Mon Mar 23, 2009 1:17 pm
Forum: Investing - Theory, News & General
Topic: New breed of real estate investors in California
Replies: 13
Views: 2441

Speaking as a former small-time landlord, I don't think I'd rent to someone who was recently foreclosed on. If they couldn't pay their mortgage, I have no reason to believe they could pay the rent, even if it is a lower amount. People who have been foreclosed on often are unemployed, and often have...
by PatrickS
Mon Mar 23, 2009 11:07 am
Forum: Investing - Theory, News & General
Topic: California's median home price down 40%
Replies: 10
Views: 2649

However, this recent crash should have taught us that "location, location, location" is a completely ridiculous old saw. It should be "location, location, price".) I live in San Diego and have been trying to buy another house recently. Some areas are down >50% while other areas (the one where I wan...
by PatrickS
Tue Mar 10, 2009 12:49 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvest, would you?
Replies: 7
Views: 1540

Thanks for the advice everyone. Grabiner, I hadn't thought about the ETF option. I think I'll do that in case I decide to convert back from the all world index into something else less than two months after purchase. Unfortunately, there's no tax-managed international etf, so avoiding the <5 year 1%...
by PatrickS
Mon Mar 09, 2009 2:56 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvest, would you?
Replies: 7
Views: 1540

Doesn't the "fund of funds" developed markets preclude you from using the foreign tax credits that you could if you owned the underlying funds?
by PatrickS
Mon Mar 09, 2009 12:46 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvest, would you?
Replies: 7
Views: 1540

Tax loss harvest, would you?

I hold a the majority of my portfolio in a taxable account and have been considering a tax loss harvest, but it would cost me, and I could get stuck in the alternative fund I would exchange into if things pick up after I swap and I actually have capital gains :D I would be taking a 1% early redempti...
by PatrickS
Thu Feb 26, 2009 2:39 pm
Forum: Investing - Theory, News & General
Topic: Stay-the-Course or Sell-and-Buy-later?
Replies: 93
Views: 17200

Even before October 2007, I had experienced the market bottom of 2002. So, I knew stocks had the possibility of declining by 50% from a market peak. Where does that come from? I believe GDI (Great Depression I) had something like an 89% decline from peak. So it certainly CAN loose more than 50%. Th...
by PatrickS
Fri Feb 20, 2009 3:47 pm
Forum: Investing - Theory, News & General
Topic: Perspective please: Is this worse than previous downmarkets?
Replies: 17
Views: 2575

If I were your age knowing what I know now, I'd be estactic at this extended buying opportunity. This does feel scarier than anything I've seen and I'm concerned that it may take a long time to recover. But that is absolutely the best scenario for someone like you. If you can stay employed and conti...
by PatrickS
Thu Feb 19, 2009 7:45 pm
Forum: Investing - Theory, News & General
Topic: overwhelming negativity
Replies: 38
Views: 5992

Perhaps we're in a doom & gloom bubble?
by PatrickS
Thu Jan 01, 2009 9:54 pm
Forum: Investing - Theory, News & General
Topic: The Year End Return Thread
Replies: 100
Views: 17202

-27.7%
70/30 allocation

Rebalanced once back to target during the year when tolerance bands were exceeded.
by PatrickS
Mon Nov 24, 2008 12:40 pm
Forum: Investing - Theory, News & General
Topic: Why Doesn't Vanguard Have Tax Managed Value Funds?
Replies: 11
Views: 2455

My opinion is Vanguard's tax managed funds are not a good idea. Even Vanguard's own Certified Financial Planners don't recommend them. Why? Because of the 5 year redemption fee. Tax loss harvesting any time within 5 years will trip the redemption fee. Very good point. That's exactly the problem I h...
by PatrickS
Fri Nov 21, 2008 10:29 pm
Forum: Investing - Theory, News & General
Topic: What's your one big takeaway from the Crash of 2008?
Replies: 380
Views: 68034

Buy & hold works, but might require a long lifespan to accomplish.
by PatrickS
Tue Oct 21, 2008 6:29 pm
Forum: Investing - Theory, News & General
Topic: A sign of the times (housing)
Replies: 15
Views: 3813

Even in good times there's a fairly significant number of people who don't pay their HOA dues. A friend of mine was a vice president in an HOA and he said it happened all the time.
by PatrickS
Sun Oct 19, 2008 4:02 pm
Forum: Investing - Theory, News & General
Topic: How difficult is it to buy individual munis?
Replies: 7
Views: 1420

Gregory,

Have you ever bought any munis through Vanguard's bond desk?
by PatrickS
Sun Oct 19, 2008 4:00 pm
Forum: Investing - Theory, News & General
Topic: What is your stock allocation in terms of your age, and why?
Replies: 26
Views: 5124

I'm 70/30 equities/bonds and will remain so (unless I go higher on equities if the market continues far enough down). I'm 49 and have no plan for a specific retirement date. I have a number rather than date in mind for when I will take much of the equities off the table, but if I had that number now...
by PatrickS
Sun Oct 19, 2008 3:44 pm
Forum: Investing - Theory, News & General
Topic: How difficult is it to buy individual munis?
Replies: 7
Views: 1420

One other point (sorry for all the posts). Would buying an individual CA muni bond <30 days after selling the fund still make the loss eligible for taxes?
by PatrickS
Sun Oct 19, 2008 3:43 pm
Forum: Investing - Theory, News & General
Topic: How difficult is it to buy individual munis?
Replies: 7
Views: 1420

Vanguard's bond desk shows 22 issues with maturities < July 2015 and the highest ratings. I've never purchased individual munis either and also sold the CA intermediate fund to capture losses. The SEC yield on the admiral fund is currently 4.6% with an average 8 year maturity. About 27% AAA, 50% AA,...
by PatrickS
Sun Oct 19, 2008 3:23 pm
Forum: Investing - Theory, News & General
Topic: How difficult is it to buy individual munis?
Replies: 7
Views: 1420

From http://latimesblogs.latimes.com/money_co/2008/10/individual-inve.html Individual investors on Tuesday put in orders to buy $1.84 billion of the short-term notes that California plans to issue on Thursday, a strong reception that reflects the high tax-free yields the state is offering to get the...
by PatrickS
Sun Oct 19, 2008 3:19 pm
Forum: Investing - Theory, News & General
Topic: Value Averaging 100bp Premium?
Replies: 19
Views: 3895

Frequent trading policies make it difficult to implement a true value-averaging strategy if you're using funds instead of ETFs, but I use a modified strategy for reits. Essentially, I buy the required amount each month to get to my target, but don't sell when I'm over target.
by PatrickS
Sun Oct 19, 2008 1:02 pm
Forum: Investing - Theory, News & General
Topic: "The Stock Market is for suckers…." - Mark Cuban
Replies: 41
Views: 9894

Mark Cuban is a lucky fool. Reminds me of an acquaintance of mine who was high up at a fiber optics company and somehow managed to cash out all her options near the peak in 2000, netting hundreds of millions. If she had waiting a few months more I believe the stock went from 90 dollars to about 20 ...
by PatrickS
Thu Oct 16, 2008 6:02 pm
Forum: Investing - Theory, News & General
Topic: Tax increase timing
Replies: 2
Views: 759

Tax increase timing

Does anyone know if federal tax rate increases always start on Jan 1st? In other words, can we expect no change for 2009 if a plan isn't ready to go and rolled out on the 1st of the year? I'm one of those "Joe The Plumber" types who's wealth will be spread around. I'm currently using the Roth option...
by PatrickS
Fri Oct 10, 2008 5:55 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting and avoiding C.G. distributions
Replies: 6
Views: 1703

Tax loss harvesting and avoiding C.G. distributions

I'm planning to do some swaps out of my current holdings into a similar overall asset allocation with other funds) near year's-end to capture some losses. There had to be a lot of appreciated stock sold to meet redemptions this year, so I expect the capital gains distributions to be fairly large. Is...
by PatrickS
Mon Jul 21, 2008 11:36 am
Forum: Investing - Theory, News & General
Topic: Value Averaging. Any practicionors?
Replies: 39
Views: 8406

I'm using modified value averaging to get into reits. Vanguard's frequent trading policies make true value averaging hard to do, so I buy more when low, but don't sell when I'm above target. I put together a 43 month plan to arrive at my targeted allocation, and buy enough each month to get to my ta...
by PatrickS
Wed May 28, 2008 11:15 am
Forum: Investing - Theory, News & General
Topic: 529 as part of overall portfolio
Replies: 24
Views: 7881

Re: 529 as part of overall portfolio

[quote="woof755"] 1. More tax-deferred space... 3. I'm planning on paying for my kids' college expenses anyway. 1 & 3 are what made it an easy decision for me. If you have the means to cover the education costs no matter how well the 529 does relative to the rest of your portfolio, it makes perfect ...
by PatrickS
Tue Apr 01, 2008 12:16 am
Forum: Personal Investments
Topic: Off-topic: 1099-DIV discrepancy on foreign funds
Replies: 1
Views: 753

Off-topic: 1099-DIV discrepancy on foreign funds

All three of my Vanguard foreign funds (Pacific Stock Index, Emerging Mkts, and Tax-managed International) on the 1099-DIV show taxable distributions larger than what the dividend and capital gain distributions page on VG's site says. Either their history is wrong, the 1099-DIV is wrong, or there's ...
by PatrickS
Fri Mar 28, 2008 8:42 am
Forum: Personal Investments
Topic: Choosing a Trustee/Vanguard trust services?
Replies: 19
Views: 14516

We just set this up ourselves with Vanguard as the trustee. Their fees are pretty reasonable and are tiered so the larger the estate, the lower the rate. My estate attorney was advising against an institutional fudiciary because of costs. Apparently he's never heard of using Vanguard because he thou...
by PatrickS
Mon Mar 17, 2008 4:12 pm
Forum: Personal Investments
Topic: The danger of holding company stock
Replies: 21
Views: 6461

A friend of mine actually exercised his company stock options near the peak of the tech bubble and held the shares. He eventually sold them for around 5% of the value they were at on the day he exercised, and he owed taxes on the difference between his strike price and share price on the day he exer...
by PatrickS
Mon Mar 17, 2008 4:06 pm
Forum: Investing - Theory, News & General
Topic: The benefits of a bear market
Replies: 72
Views: 24464

You won't need to pay any taxes on your gains because you won't have any. :lol: I know this was a joke, but it has some actual validity. Case in point- I can now sell shares of my (taxable account) small cap index and transfer to the tax-managed small cap index with less capital gains taxes to pay.
by PatrickS
Wed Feb 13, 2008 6:02 pm
Forum: Investing - Theory, News & General
Topic: Bush tax cuts (actual details??)
Replies: 4
Views: 1575

Bush tax cuts (actual details??)

Does anybody know what the actual details of the Bush tax cuts were? I recently tried to Google them, but was unable to find anything other than partisan rants on how unfair they were or details of their "effect". I know that there were some bracket changes, the LT capital gains rate went from 20 to...
by PatrickS
Mon Feb 04, 2008 4:49 pm
Forum: Investing - Theory, News & General
Topic: Poll: 401K Match
Replies: 99
Views: 21588

100% on 1st $1500
50% on next $1500
33% on next $7500
10% on any other contributions, including catchup
by PatrickS
Thu Jan 17, 2008 8:42 pm
Forum: Investing - Theory, News & General
Topic: Lowering of expectations
Replies: 10
Views: 2472

Re: Lowering of expectations

The numbers of foreign professionals working for less is huge and the trend is growing. I interview and hire these people all the time (electronic engineers with RF integrated circuit concentrations). I'd say 75% or more of our new hires are either Indian or Chinese immigrants. We don't pay them an...
by PatrickS
Thu Dec 27, 2007 9:25 pm
Forum: Personal Investments
Topic: Completely Self Directed 401k, profit sharing and IRA
Replies: 3
Views: 1101

I won't comment on any funds because you shouldn't be looking for them yet. Before selecting funds, you should establish an asset allocation. Once you have that, select the best location (ira, 401k, taxable) for each of the asset classes. If you're in the 35% federal bracket, you are not elligible f...
by PatrickS
Thu Nov 08, 2007 12:55 pm
Forum: Investing - Theory, News & General
Topic: Testing Your Discipline to Stay the Course
Replies: 18
Views: 6318

My 'Discipline to Stay the Course' is being tested by impulses to make short term aggressive moves. I have a similar problem. Instead of wanting to sell equities and get into something "safe" when things head South, I tend to want to buy more of whats going down. I decided two days ago to take 0.5%...
by PatrickS
Thu Nov 01, 2007 9:37 am
Forum: Personal Investments
Topic: Paying capital gains taxes to switch to index funds
Replies: 39
Views: 7748

Excuse my ignorance, but aren't those of of living in states with income tax subject to a federal long term capital gains tax rate of 15% (depending on your bracket) AND a state tax. It's my understanding that (in California) I get taxed at 15% by the fed and at my marginal income tax rate by the st...
by PatrickS
Thu Oct 04, 2007 12:01 pm
Forum: Personal Investments
Topic: Windfall...Financial Advisor? Updated-Ready for More Advice!
Replies: 66
Views: 21097

I think Marco had the right idea about putting it all in a safe investment, and educating yourself until you're ready to do it yourself. Lot's of good stuff on the recommended reading list. My take is that the most important thing you can do right now is to not go out on a spending spree. Windfall m...
by PatrickS
Fri Aug 03, 2007 5:31 pm
Forum: Investing - Theory, News & General
Topic: Trying to understand muni bond fund behavior
Replies: 6
Views: 1724

I hope Larry Swedroe can give us some insight into this... Bump
by PatrickS
Fri Jun 22, 2007 4:14 pm
Forum: Personal Investments
Topic: Admiral Treasury Money Market Fund
Replies: 22
Views: 8504

Re: Admiral Treasury Money Market Fund

Don't forget Admiral Treasury Money Market Fund. Sure, it is $50K minimum to open, but once opened, you can drop below $50K. While this is technically true, you will drop out of the admiral level of this fund if your balance drops below $50k when they do one of their periodic checks. I own this MM ...
by PatrickS
Thu Apr 19, 2007 3:59 pm
Forum: Personal Investments
Topic: Help w/ REITs in a taxable account
Replies: 9
Views: 3569

I was assuming all gains from reits were taxable as ordinary income! I looked at the Vanguard reit index latest distribution and found the following- Return of Capital $0.04432 (Tax treatment???) Dividend $0.21045 (taxed as regular income) ST cap gain $0.00615 (taxed as regular income) LT Cap Gain $...
by PatrickS
Thu Apr 19, 2007 9:39 am
Forum: Personal Investments
Topic: Help w/ REITs in a taxable account
Replies: 9
Views: 3569

You come out with a VA advantage at year 9 with a 6% state tax. I'm ignoring AMT in my spreadsheet though, so I don't know how accurate it really is. The insurance wrapper (cost) is the only real disadvantage I know of. I use non-deductible iras as well, but I could never get to my asset allocation ...
by PatrickS
Thu Apr 19, 2007 8:58 am
Forum: Personal Investments
Topic: Help w/ REITs in a taxable account
Replies: 9
Views: 3569

Not enough info

I have a spreadsheet I put together comparing holding reits in taxable versus the Vanguard VA. Without knowing your marginal tax rate (you failed to mention your state tax bracket) I couldn't tell you where the break even point is, but I ran it for two scenarios for myself. I'm bordering on the 33% ...
by PatrickS
Thu Apr 12, 2007 7:40 pm
Forum: Personal Investments
Topic: To Roth or not?
Replies: 92
Views: 37615

If you don't have any access to a 401k plan with some kind of company match, than a Roth IRA makes perfect sense. Keep in mind that you have to have the income for the year to contribute to it. If you earned only $500 in the year, you can contribute up to $500 for the year to a Roth IRA. You can't a...
by PatrickS
Wed Apr 04, 2007 1:06 pm
Forum: Personal Investments
Topic: Taxable account dilemma
Replies: 16
Views: 4581

I'm in a similar situation regarding taxable verus tax-advantaged. Bordering on 28/33% plus a 9.3% state rate (CA). I built a spread sheet comparing holding reits in a taxable versus Vanguard variable annuity. Break even occurred at the eight year mark and I was ahead after that with the VA, even as...