Search found 218 matches

by smithdad
Mon Dec 07, 2009 4:13 pm
Forum: Investing - Theory, News & General
Topic: The Dark Side of TIPS
Replies: 176
Views: 30443

TIPS and deflation

There is talk in the article of TIPS during periods of deflation - specifically that the principal can be adjusted downwards. If I am not mistaken, there is a safeguard in place with TIPS held to maturity in that if the final principal is below the original principal, you will be paid the higher amo...
by smithdad
Thu Jun 18, 2009 10:02 am
Forum: Personal Finance (Not Investing)
Topic: "Umbrella" health insurance
Replies: 22
Views: 3309

So do most people not worry about this until it happens? This to me seems to be a real risk to a lot of people. This to me seems to be just as high of a risk of wiping you out as being sued for an amount greater than your standard liability insurances.
by smithdad
Thu Jun 18, 2009 6:36 am
Forum: Personal Finance (Not Investing)
Topic: "Umbrella" health insurance
Replies: 22
Views: 3309

"Umbrella" health insurance

Something has recently occurred to me which has never really crossed my mind until this cruddy economy came along. This economy is really taxing on a lot of businesses which could cause them to go out of business. They could also be stuck in the situation of not being able to pay their employer prov...
by smithdad
Mon Mar 23, 2009 8:26 pm
Forum: Investing - Theory, News & General
Topic: forums
Replies: 4
Views: 1308

forums

OK, I asked what I thought was a non politically motivated question which could have an affect on the future returns of the US equity markets and thus could have an affect on my long term investing plan. It was immediately locked. Two questions... 1. Where are all of the rules listed here so I don't...
by smithdad
Mon Mar 23, 2009 8:01 pm
Forum: Investing - Theory, News & General
Topic: World currency
Replies: 0
Views: 759

World currency

China is now talking about establishing a world currency and dropping the dollar as its reserve currency. If everything goes this way, what will be the effect on the US markets and the dollar (thus affecting returns of Foreign stocks). It would seem the value of the dollar would decrease significant...
by smithdad
Tue Mar 17, 2009 12:32 pm
Forum: Personal Investments
Topic: Paying cash for a vacation home in today's market.
Replies: 29
Views: 4922

If you treat it as a purchase and not an investment and can afford it, go for it!
by smithdad
Mon Mar 16, 2009 11:48 am
Forum: Investing - Theory, News & General
Topic: Quantifying human capital
Replies: 15
Views: 2496

50% saved! Wow, that is very commendable. Congratulations and I hope that I can work my way into being disciplined enough to do that. That is really great!
by smithdad
Mon Mar 16, 2009 10:20 am
Forum: Investing - Theory, News & General
Topic: Quantifying human capital
Replies: 15
Views: 2496

I think that the unforeseen medical conditions would be one thing (along with risk of economic conditions, etc.) which would define risk associated with human capital. This would be something which could be defined over a large number of people I would think. Only problem is that this risk means a l...
by smithdad
Mon Mar 16, 2009 10:15 am
Forum: Investing - Theory, News & General
Topic: Quantifying human capital
Replies: 15
Views: 2496

I will elaborate a bit... The 30% Stock, 70% Bond assumption for human capital was an assumption based off of what they said in the article in Money Magazine. How they came up with this is the big question, but lets assume that is correct. Year 1: You have 40 years of making a salary, lets say $100,...
by smithdad
Mon Mar 16, 2009 6:48 am
Forum: Investing - Theory, News & General
Topic: Quantifying human capital
Replies: 15
Views: 2496

Quantifying human capital

I was reading an article in Money magazine this weekend and there was an interesting reference to human capital. It stated that human capital for the average investor acted like a 70-30 fixed-stock allocation. I have no idea how they came up with that, but the concept made sense. If your job is stab...
by smithdad
Fri Mar 06, 2009 2:30 pm
Forum: Investing - Theory, News & General
Topic: This market is a lesson in asset protection for middle-aged
Replies: 29
Views: 4968

You get the double whammy affect when you consider need as well if you think stocks are "cheap" now... Stocks now should have a greater return than those bought a year ago due to having less "speculative return" built into them and possibly higher dividend rates due to decreased ...
by smithdad
Fri Mar 06, 2009 2:13 pm
Forum: Investing - Theory, News & General
Topic: TIPS Retirement?
Replies: 43
Views: 5267

Whoa, what the hell is excess IRA tax? By the time I retire, I plan on having one healthy IRA too (if this bleeding ever stops). If there is a chance that I will be punished in the future for success (more than already people are punished), then I want to know how.
by smithdad
Fri Mar 06, 2009 2:10 pm
Forum: Investing - Theory, News & General
Topic: Time for hysteria?
Replies: 34
Views: 5339

Another one Jethro...

New Day Rising - Husker Du
by smithdad
Fri Mar 06, 2009 1:58 pm
Forum: Investing - Theory, News & General
Topic: TIPS Retirement?
Replies: 43
Views: 5267

What about doing this in a tax advantaged account (if available)? If you had this in an IRA, you would be able to withdraw your inflation adjusted principle plus the interest and pay income tax when you withdraw the money avoiding the issue of having to pay taxes on phantom income along the way.
by smithdad
Fri Mar 06, 2009 6:55 am
Forum: Investing - Theory, News & General
Topic: Allocation acid test
Replies: 8
Views: 1848

100% rule. If you use that, you will surely never need to waiver from your planned allocation. I like that... But then again, I don't...
by smithdad
Thu Mar 05, 2009 8:34 pm
Forum: Investing - Theory, News & General
Topic: Allocation acid test
Replies: 8
Views: 1848

Allocation acid test

(edit note - accidentally posted in personal investment section and just moved here) I think we can all agree that our asset allocation risk tolerances have been tested thoroughly lately. In fact, we are beyond the acid test used by most people (based on the 1970's, loss = stock percentage/2), etc. ...
by smithdad
Wed Mar 04, 2009 2:15 pm
Forum: Investing - Theory, News & General
Topic: 401(k)s - Why Should I Even Bother?
Replies: 32
Views: 5284

You can get the Fidelity Spartan funds with the same expense ratios in an IRA account as well.
by smithdad
Thu Feb 19, 2009 6:56 am
Forum: Investing - Theory, News & General
Topic: why s&p in not falling below 700
Replies: 33
Views: 7963

Great graph. Now, someone tell my why the heck we had to live through two of those in one decade!!!!
by smithdad
Fri Feb 06, 2009 10:43 am
Forum: Investing - Theory, News & General
Topic: Real estate deja vu article
Replies: 1
Views: 620

Real estate deja vu article

Someone brought an article into the office the other day. It was from Newsweek and entitled "The Big Bust - The real-estate slump has shocked millions and threatens the economy". I cannot find a link to the article, but someone post if they can. The article is basically about how the real ...
by smithdad
Wed Feb 04, 2009 12:00 pm
Forum: Investing - Theory, News & General
Topic: There is NO light...
Replies: 66
Views: 9791

If $4 Trillion is going to be pumped into the economy and you are worried about all this inflation, 100% cash ain't the place to be... You need to be 70% gold and 30% guns and ammo. I would just offer that, as Buffet says, you should be greedy when others are fearful. He has been much more successfu...
by smithdad
Tue Feb 03, 2009 6:55 am
Forum: Investing - Theory, News & General
Topic: Simple IRA Set-Up For Small Business
Replies: 13
Views: 3314

We have our Simple IRA plan set up through Fidelity. Previously, our company had the Simple IRA set up through an adviser with American Funds charging those huge loads which seemed ridiculous to me. One of the first things I did here was to switch our plan over to have more choice and less fees. Fid...
by smithdad
Sat Jan 24, 2009 8:54 am
Forum: Investing - Theory, News & General
Topic: Anyone buying GE?
Replies: 58
Views: 10970

I have been going back and forth about this for several days remembering back when Phillip Morris was yielding 10% and not buying it (and knowing that I should) when I used to buy individual equities. But, I also remember from my days of buying individual stocks that a stock like GE is priced as it ...
by smithdad
Sun Jan 11, 2009 8:07 pm
Forum: Investing - Theory, News & General
Topic: total bond market
Replies: 4
Views: 1497

The price of the corporate bonds have gone down due to an perceived increase in the risk of default on these loans. This behavior of the total bond fund to me seems to be a function of these extraordinarily bad times. This would not necessarily always be the case as you notice in the past where you ...
by smithdad
Thu Jan 01, 2009 9:30 pm
Forum: Investing - Theory, News & General
Topic: Asset Class Returns from Nov 20 to Dec 31 - WOW
Replies: 22
Views: 4316

Oh man, I knew I should have gone 100% REITS a month ago!
by smithdad
Thu Dec 11, 2008 6:52 am
Forum: Investing - Theory, News & General
Topic: low fee 401-k provider?
Replies: 11
Views: 3979

Fidelity

Check Fidelity as well. I believe they are the largest 401-k provider. We may check them out when we switch from Simple IRA to 401-K plan. I have not looked into it, but I bet they offer a relatively good plan.
by smithdad
Mon Dec 08, 2008 6:54 am
Forum: Investing - Theory, News & General
Topic: ETF trading hours to avoid
Replies: 17
Views: 4137

That's right. The price that I want is not a specific target price, but rather what it is actually "worth" at any time.
by smithdad
Sun Dec 07, 2008 1:22 pm
Forum: Investing - Theory, News & General
Topic: ETF trading hours to avoid
Replies: 17
Views: 4137

Thanks for the info! I have used limit orders when placing an ETF order, but I want to make sure the price is where it should be and is not flying around too much. I would not be able to compute quickly enough if the price was in my favor or not (this is for my emerging market exposure). I will go w...
by smithdad
Sun Dec 07, 2008 9:22 am
Forum: Investing - Theory, News & General
Topic: ETF trading hours to avoid
Replies: 17
Views: 4137

ETF trading hours to avoid

I seem to remember reading that there were times to avoid buying ETF's - such as the first couple of hours at the beginning and end of the trading day. I think it may have been in Rick Ferri's book, but I cannot find it. I also could not find it by searching the archives. Does anyone know what this ...
by smithdad
Tue Nov 25, 2008 7:00 am
Forum: Personal Investments
Topic: Help with Fido mySmart Cash
Replies: 61
Views: 10452

The overdraft from a non-core account has never worked for me. Luckily, I have not gotten charged fees. Both cases occurred while using bill pay. There was plenty of money in the MMF with all balances in the MMF cleared.
by smithdad
Thu Nov 20, 2008 8:49 pm
Forum: Investing - Theory, News & General
Topic: Larry - TIPS hit 4.0 today - Implications?
Replies: 24
Views: 5980

Fido's TIP fund, FINPX, had a rough year because they were trying to add extra yield by not keeping all TIPS. I think they have changed their behavior and now invest mostly in TIPS (see below from their website). They do, however, have a higher expense ratio of 0.45. U.S. Treasury 98.2 U.S. Agency 0...
by smithdad
Thu Nov 20, 2008 6:30 am
Forum: Personal Investments
Topic: Help with Fido mySmart Cash
Replies: 61
Views: 10452

Watch out before assuming that the overdraft is set up to pull out of you non-core cash account. I have found that to not be true. If you do not have it setting in cash (not a MMF like FSLXX), then it will not automatically sell your MMF for overdraft protection. I thought that it did this, but when...
by smithdad
Tue Nov 18, 2008 7:16 am
Forum: Personal Investments
Topic: Help with Fido funds
Replies: 11
Views: 2617

I have all of my investment accounts at Fidelity. Fidelity has low cost index funds as mentioned above with the Spartan line. Their TSM, S&P500, International all seem to be good index funds with very low cost. The US Bond Index, FBIDX is also relatively low cost. They have deviated somewhat fro...
by smithdad
Thu Nov 06, 2008 8:38 pm
Forum: Investing - Theory, News & General
Topic: Is the stock market the investment fad of our generation?
Replies: 10
Views: 2399

I would suggest that a smaller percent of our population would own stocks if we were not individually responsible for our retirements. I wonder how much of the increase in stock ownership corresponds to the decrease in pensions offered from people'e employers. Don't they have a nationalized pension ...
by smithdad
Mon Nov 03, 2008 7:28 am
Forum: Investing - Theory, News & General
Topic: Future Equity Rate of Return from Here
Replies: 48
Views: 8752

Current P/E's or the anticipated future P/E's are at 10? If the belief is that earnings will retract in the future, then then current or past P/E's would not matter. Gordon's equation says that long term returns should be equal to the current dividend yield plus the future growth in dividend yield (...
by smithdad
Sat Nov 01, 2008 6:18 pm
Forum: Investing - Theory, News & General
Topic: Doubting my investment plan regarding bonds
Replies: 41
Views: 7251

Nope, not newly minted - structural engineer. You have to get it right, or there is a chance it could fall down. Or, if anything ever goes wrong, it is your fault and your liability if you did not do it right. Granted, it is all based on statistics and variable material properties, etc., but you had...
by smithdad
Sat Nov 01, 2008 5:06 pm
Forum: Investing - Theory, News & General
Topic: Doubting my investment plan regarding bonds
Replies: 41
Views: 7251

To me, I just swallow the stress now. OK, you got me. That was easy to say before it actually happened. Measuring one's risk tolerance is easy until it really hits the fan. Very good point - it hit it and it made me a bit uncomforatable. I bet that I am not the only one in this boat. The question t...
by smithdad
Fri Oct 31, 2008 7:52 pm
Forum: Investing - Theory, News & General
Topic: Doubting my investment plan regarding bonds
Replies: 41
Views: 7251

smithdad, You sound a little like someone I know who questions all of his past decisions. Is it possible you also question non-financial choices you've made in the past? Are you a "grass is always greener on the other side" person?
Hmmm. Good point. I just might be that way. :)
by smithdad
Thu Oct 30, 2008 8:49 pm
Forum: Investing - Theory, News & General
Topic: Doubting my investment plan regarding bonds
Replies: 41
Views: 7251

Thanks. These are all very good points. I guess that I would really be setting myself up for selling low and buying high and then regretting that decision and repeating the process. I guess I should just give it some time... Investing is really funny in that there will always be a better plan. I am ...
by smithdad
Wed Oct 29, 2008 7:58 pm
Forum: Investing - Theory, News & General
Topic: Doubting my investment plan regarding bonds
Replies: 41
Views: 7251

Doubting my investment plan regarding bonds

I am feeling doubts on several parts of my investment plan. There are many - taking more risk than necessary, lump sum investing a large amount of money instead of DCA (the regret of this overcomes any benefit that could have been realized in the past for people considering this in the future), bad ...
by smithdad
Thu Oct 09, 2008 11:49 am
Forum: Investing - Theory, News & General
Topic: Fidelity FCASH? Curiosity. Good for ANYTHING?
Replies: 3
Views: 17123

Is it good for anything at all?
Fidelity...
by smithdad
Thu Oct 09, 2008 6:29 am
Forum: Personal Investments
Topic: Safest place at Fidelity for a new IRA rollover?
Replies: 6
Views: 2517

Just a thought to investigate... I am not sure if you can have the mySmart cash account through Fidelity with an IRA, but I believe that is FDIC insured. I really don't know if that will work with an IRA or not though.
by smithdad
Wed Oct 08, 2008 4:21 pm
Forum: Investing - Theory, News & General
Topic: THe Death of Equities........................ Let's keep
Replies: 28
Views: 6323

Am I correct in suspecting "valuations matter" to you and thus you started lowering the 100% equity position last year? Actually, I kind of found religion last year and started researching (Thanks in no small measure to this website!). I used to be of the Peter Lynch mentality that if you...
by smithdad
Wed Oct 08, 2008 6:02 am
Forum: Investing - Theory, News & General
Topic: THe Death of Equities........................ Let's keep
Replies: 28
Views: 6323

I have been at it for about 10 years now too. To me, this feels about the same as 2001-2002 felt. I watch the market all the time, and I completely remember this feeling. You basically wake up knowing that the market will go down today. You feel good when the market "only" goes down 99 poi...
by smithdad
Thu Sep 18, 2008 6:01 am
Forum: Investing - Theory, News & General
Topic: Link to article about current situation
Replies: 1
Views: 723

Link to article about current situation

Does anyone have a link to an article which clearly defines the current situation we are in? Most of the articles I see glaze over and spread doom and gloom, but do not provide a good thorough explanation as to this current financial situation. I really want to understand the depth of the situation,...
by smithdad
Wed Sep 10, 2008 7:53 am
Forum: Personal Investments
Topic: Estate Tax Ques- Inherited IRA
Replies: 13
Views: 2908

Do a search on Income in Respect of a Decendent (IRD) in that this may answer your question regarding income tax deductions of the portion of estate tax paid on an IRA.
by smithdad
Wed Sep 10, 2008 5:59 am
Forum: Personal Investments
Topic: hellooooooooooooooooo
Replies: 6
Views: 2094

You can get exposure to emerging markets cheaply through an ETF through Fidelity (I use VWO). I do that to round out my international exposure along with FSIIX. If you want to roughly match the overall makeup of a total international type fund, use a 20/80 mix of VWO, FSIIX. FFNOX is a great fund. I...
by smithdad
Mon Sep 08, 2008 7:55 pm
Forum: Personal Investments
Topic: equivalent vanguard / fidelity
Replies: 2
Views: 1350

You can figure out some of that information from the model portfolios offered at fundadvise.com. Although it is not perfect, it may be a good starting point. http://www.fundadvice.com/portfolio.html EDIT - funny, I was typing the above at the same time as retiredjg. I guess great minds think alike.....
by smithdad
Thu Sep 04, 2008 2:19 pm
Forum: Personal Investments
Topic: Adding REITs to portfolio
Replies: 14
Views: 3233

good point... Man, this stuff ain't easy. How does that saying go? The worst enemy of a good plan is the dream of a perfect plan...
by smithdad
Thu Sep 04, 2008 1:34 pm
Forum: Personal Investments
Topic: Adding REITs to portfolio
Replies: 14
Views: 3233

Good point Tramper Al. I do consider REITs to be another asset class separate from equities. Although they are "equities", I view them as behaving differently and their gains coming by different means (i.e. mostly dividends and not dividend growth beyond inflation). I see them as an income...
by smithdad
Thu Sep 04, 2008 9:28 am
Forum: Personal Investments
Topic: Adding REITs to portfolio
Replies: 14
Views: 3233

I was considering making the 10% allocation from taking funds from both the TSM and foreign equity (thus leaving the bond allocation at 30%). This is all in tax deffered accounts, so there should be no tax implications. Thanks for the point on regretting decisions, etc. I do tend to look back and qu...