Search found 65 matches

by yahoo
Sun Mar 10, 2013 12:49 pm
Forum: Investing - Theory, News & General
Topic: I hit my number today.
Replies: 74
Views: 8890

Re: I hit my number today.

It means the long, slow process of investing regularly through my IRA and through my 401(k), even though I never have earned over $55,000, adhering to a buy, hold, and re-balance policy, and investing in low-cost, preferably index, funds made the journey worthwhile. Beautifully said. Some of the re...
by yahoo
Sun Mar 10, 2013 12:42 pm
Forum: Investing - Theory, News & General
Topic: I hit my number today.
Replies: 74
Views: 8890

Re: I hit my number today.

Rick Ferri wrote:Congrats! Now you should consider reducing your risk.

Rick Ferri



How?
by yahoo
Sun Mar 10, 2013 12:39 pm
Forum: Investing - Theory, News & General
Topic: What's your number? Why?
Replies: 258
Views: 31552

Re: What's your number? Why?

Yes, but if you look at one limiting case, homeless people are infinitely wealthy by that definition. If homelessness is by choice and their assets can sustain them, then yes I would agree. However, if it's not by choice, or due to mental illness, addiction, disability, etc... then no its just sad.
by yahoo
Sun Mar 10, 2013 12:31 pm
Forum: Investing - Theory, News & General
Topic: Build Your Own Annuity
Replies: 157
Views: 17082

Re: Build Your Own Annuity

That $40,000 would be in addition to any pension, Social Security and other retirement plan income, such as from a 401k, 403b and/or IRA. Rather than being the only investment, it's simply one leg of the retirement stool that's meant to provide a GUARANTEED stream of income in retirement, which sto...
by yahoo
Sun Mar 10, 2013 9:33 am
Forum: Investing - Theory, News & General
Topic: Shiller PE10 nearing nosebleed territory?
Replies: 322
Views: 42789

Re: Shiller PE10 nearing nosebleed territory?

Can anyone give me an explanation of the Schiller PE 10? I don't know what it means exactly, other than it is some measure of stock valuations. The level of the S&P 500 is now where it was in 1999. However earnings and dividends have basically doubled since that time. It seems, therefore that th...
by yahoo
Sun Mar 10, 2013 9:19 am
Forum: Investing - Theory, News & General
Topic: What's your number? Why?
Replies: 258
Views: 31552

Re: What's your number? Why?

This is Bucky Fuller's definition of Wealth which I think is appropriate: Which brings us to perhaps best definition of wealth we found - apparently Buckminster Fuller came up with following concept - how many months could you live your current lifestyle if you lost your job? That's how wealthy you ...
by yahoo
Sun Mar 10, 2013 9:09 am
Forum: Investing - Theory, News & General
Topic: Build Your Own Annuity
Replies: 157
Views: 17082

Re: Build Your Own Annuity

The very idea of purchasing 20k$/year in EE bonds for 30 years seems ludicrous, given the stingy long term rate of return. It's doubtful EE bonds will even keep up w/ inflation. This is no way to build an income stream for life. Someone with a 30 year investing horizon should have an asset allocatio...
by yahoo
Tue Oct 02, 2012 8:47 pm
Forum: Investing - Theory, News & General
Topic: Locking in Gains on a Bond Fund (Does it make sense?)
Replies: 6
Views: 1362

Re: Locking in Gains on a Bond Fund (Does it make sense?)

There is no double taxation. If a bond fund sells a bond for a taxable gain, the fund's NAV drops by the amount of the gain, so an investor who sells the same fund after the distribution has a lower capital gain. And if the bond fund buys a new bond at a premium with the money it obtained from sell...
by yahoo
Mon Oct 01, 2012 8:11 pm
Forum: Investing - Theory, News & General
Topic: Locking in Gains on a Bond Fund (Does it make sense?)
Replies: 6
Views: 1362

Re: Locking in Gains on a Bond Fund (Does it make sense?)

There is no double taxation. If a bond fund sells a bond for a taxable gain, the fund's NAV drops by the amount of the gain, so an investor who sells the same fund after the distribution has a lower capital gain. And if the bond fund buys a new bond at a premium with the money it obtained from sell...
by yahoo
Sun Sep 30, 2012 8:30 pm
Forum: Investing - Theory, News & General
Topic: Getting married - what do I do for retirement?
Replies: 20
Views: 1956

Re: Getting married - what do I do for retirement?

I would have a local CPA look at your situation before deciding to file separately.
by yahoo
Sun Sep 30, 2012 8:16 pm
Forum: Investing - Theory, News & General
Topic: Locking in Gains on a Bond Fund (Does it make sense?)
Replies: 6
Views: 1362

Locking in Gains on a Bond Fund (Does it make sense?)

This discussion developed (as they always do) in another thread, with a different topic. I thought it was very worthwhile discussion regarding the difference between locking in taxable gains form an individual bond vs locking in gains from a bond fund. The following examples were copied from that th...
by yahoo
Sun Sep 30, 2012 8:19 am
Forum: Investing - Theory, News & General
Topic: Investing with rates low
Replies: 34
Views: 4026

Re: Investing with rates low

I have held gnma's since the early 80's and they have been my most satisfying investment. Sure I made good money in hot mutual funds in the 80's and 90's but sold when they were high and I was 59 years old. Bought more gnma's and they have did better then the S&P since 2000. I will keep them, r...
by yahoo
Sat Sep 29, 2012 5:10 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Investment Advisors
Replies: 28
Views: 4303

Re: Fidelity Investment Advisors

If you have a taxable bond fund that is yielding 2% at today's NAV, but you bought it last year at a 3% yield (a lower NAV), then you have a long-term capital gain. You can sell the fund, take the long-term gain at a capital gains rate.Then you reinvest in the same fund. If interest rates rise, you...
by yahoo
Sat Sep 29, 2012 5:10 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Investment Advisors
Replies: 28
Views: 4303

Re: Fidelity Investment Advisors

Yahoo, I don't understand your comment because my example does produce a higher after tax gain. You sell the high interest bearing bond that you bought when rates were higher,which creates a long-term capital gain. You then reinvest in a lower interest bearing bond with the same yield to maturity. ...
by yahoo
Sat Sep 29, 2012 9:55 am
Forum: Investing - Theory, News & General
Topic: Fidelity Investment Advisors
Replies: 28
Views: 4303

Re: Fidelity Investment Advisors

Out of curiosity I ran a few scenarios. We'll use the same assumptions for both. For purposes of this example we'll assume interest is not reinvested, inflation is zero, and I pay taxes of 25% on income. We'll also assume that I have a dial-a-bond source for bonds of any face value. Assume I curren...
by yahoo
Thu Sep 27, 2012 9:25 pm
Forum: Personal Consumer Issues
Topic: College Planning Workshops?
Replies: 8
Views: 696

Re: College Planning Workshops?

I went to one of these in my area put on by a regional financial "advisor". Part of it was worthwhile because he went over how colleges calculate your expected contribution and some other factors. In the end he tried to sell everyone permanent Life insurance as some type of remedy. As soon...
by yahoo
Thu Sep 27, 2012 9:01 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Investment Advisors
Replies: 28
Views: 4303

Re: Fidelity Investment Advisors

If I sell an appreciated asset and pay taxes, I no longer have the same amount of money to reinvest. I gave 15% to the govt. The 85% of the principal left, reinvested at the original rate, does not produce the same amount of income (i.e. 1000$ invested at 10% returns more than 850$ invested at 10%)...
by yahoo
Sun Sep 23, 2012 8:55 am
Forum: Investing - Theory, News & General
Topic: Fidelity Investment Advisors
Replies: 28
Views: 4303

Re: Fidelity Investment Advisors

If you have a taxable bond fund that is yielding 2% at today's NAV, but you bought it last year at a 3% yield (a lower NAV), then you have a long-term capital gain. You can sell the fund, take the long-term gain at a capital gains rate.Then you reinvest in the same fund. If interest rates rise, you...
by yahoo
Sat Sep 22, 2012 7:00 am
Forum: Investing - Theory, News & General
Topic: Fidelity Investment Advisors
Replies: 28
Views: 4303

Re: Fidelity Investment Advisors

If you have a taxable bond fund that is yielding 2% at today's NAV, but you bought it last year at a 3% yield (a lower NAV), then you have a long-term capital gain. You can sell the fund, take the long-term gain at a capital gains rate.Then you reinvest in the same fund. If interest rates rise, you...
by yahoo
Sun Sep 16, 2012 6:46 pm
Forum: Personal Consumer Issues
Topic: Any Prius owners?
Replies: 37
Views: 4443

Re: Any Prius owners?

I just bought a 2012 Honda Civic LX. I average 45mpg (with ease). Please note I am a hyper mileager. But it is not hard at all. Most of my miles are highway and I avg 65mph. If you simply adjust your driving it is amazing what can be done. I only point this out because the Civic is less costly to pu...
by yahoo
Sun Sep 16, 2012 6:38 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Investment Advisors
Replies: 28
Views: 4303

Re: Fidelity Investment Advisors

I'll give him the benefit of the doubt. Let's say this is a taxable account that has substantial unrealized capital gains from the appreciation of taxable bond funds. Let's also assume In that the investor is in a high tax bracket. Then what he is advocating makes sense from a tax perspective. He i...
by yahoo
Fri Aug 31, 2012 7:41 am
Forum: Investing - Theory, News & General
Topic: Portfolio Back testing
Replies: 4
Views: 997

Portfolio Back testing

Does anyone know of a website where you can back test various versions of the three fund portfolio (or any portfolio of funds). A site where I could, for instance put in an allocation of 43% TSM, 37% TBM, and20% TISM and get performance data over different time periods.
by yahoo
Sat Aug 25, 2012 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Recommendations needed on financial adviser
Replies: 20
Views: 1603

Re: Recommendations needed on financial adviser

Go to the NAPFA website or the Garrett Network website and find a fee-only advisor in your area. Fee-only means they are paid by you, for advice and do not sell anything.
by yahoo
Wed Aug 15, 2012 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Financial Advisor for Physicians
Replies: 15
Views: 2361

Re: Financial Advisor for Physicians

The cynical part of me says he specializes in Doc's because that is where the perceived money is. His specialization may not be so valuable, here's why: Investment management can be learned (on this site and elsewhere) or turned over to a generic "professional". Personal insurance (life, h...
by yahoo
Sun Aug 12, 2012 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: whole life insurance
Replies: 38
Views: 5811

Re: whole life insurance

Ask your agent this, "IF I die do my heirs get the death benefit PLUS the cash value"?
by yahoo
Sun Aug 12, 2012 12:59 pm
Forum: Personal Consumer Issues
Topic: Need advice on purchasing a gas trimmer
Replies: 21
Views: 3938

Re: Need advice on purchasing a gas trimmer

I just bought a new trimer yesterday to replace my 10y/o Ryobi. My Ryobi lasted 10 years, but not without problems . It was too expensive to fix but still "Ran " so I used it until it died (this is the Puritan in me, that feels it almost a sin to replace something that still "works&qu...
by yahoo
Sun Aug 12, 2012 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: where do we find income
Replies: 60
Views: 7305

Re: where do we find income

.It is quite possible in todays unchartered waters that nobody has a clue......and judging by the fact that you are all unable to provide these people with a way to SAFELY earn more than 3or4 pct kind of says it all.Maybe a little less arrogance is called for here from many of you I agree. We are u...
by yahoo
Sat Aug 11, 2012 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: where do we find income
Replies: 60
Views: 7305

Re: where do we find income

deleted
by yahoo
Wed Aug 08, 2012 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: where do we find income
Replies: 60
Views: 7305

Re: where do we find income

Annuities lock in the current interest environment in an insurance product. You're giving up your principle in exchange for a guarantee of not outliving your principal.
by yahoo
Wed Aug 08, 2012 7:20 pm
Forum: Investing - Theory, News & General
Topic: Building a Risk Adjusted Portfolio
Replies: 13
Views: 1469

Re: Building a Risk Adjusted Portfolio

Yes, diversification is good and those three funds cover what are widely considered to be the major asset classes to diversify across so that is why they are often recommended. You can adjust the relative amounts of each to match whatever you consider to be your appropriate risk/expected-return tra...
by yahoo
Tue Aug 07, 2012 8:00 pm
Forum: Investing - Theory, News & General
Topic: Bond Thinking - Is this correct?
Replies: 3
Views: 536

Re: Bond Thinking - Is this correct?

The duration of a bond fund is a weighted average. THat being said , bond funds don't necessarily buy and hold a bond to maturity. Bonds are bought and sold to maintain the funds avg maturity/duration. So in your scenario you now have a 5k$ bond fund holding, yielding 8%. This will not double in in ...
by yahoo
Tue Aug 07, 2012 7:44 pm
Forum: Investing - Theory, News & General
Topic: Building a Risk Adjusted Portfolio
Replies: 13
Views: 1469

Building a Risk Adjusted Portfolio

I see the three fund portfolio often suggested on this site (i.e. TSM TISM, TBM). My question is what is the science behind this approach. On a qualitative level I understand the asset allocation and diversification ideas and I quite like the simplicity and I am a believer in indexing. So my questio...
by yahoo
Sun Aug 05, 2012 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: Need morale support please!!
Replies: 64
Views: 14794

Re:

P.S. If it starts feeling like you are uncovering a lot of issues wherever you look and you start thinking that maybe it is not such a bad idea to have someone else manage it after all, rest assured that whoever does is going to do this for purely their own interest and at your expense. It will pay...
by yahoo
Sun Aug 05, 2012 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund fees
Replies: 4
Views: 570

Re: Mutual Fund fees

Dale_G wrote:Trading and hedging costs are not included in the expense ratio. Those costs simply reduce the return before the er is paid.

Dale


Thanks, that makes sense and reinforces why indexing is so powerful, given that trading costs are taken out BEFORE the ER is calculated.
by yahoo
Sun Aug 05, 2012 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund fees
Replies: 4
Views: 570

Mutual Fund fees

My question is simple (I hope). When a mutual fund (or ETF) posts an expense ratio does that include all the fees (especially for actively managed funds) like trading costs and any other operating expenses? I see some of these leveraged/ inverse funds (e.g..TZA) with a 1.13% expense ratio and I can'...
by yahoo
Sat Jul 28, 2012 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: What is the best option to pay off a house?
Replies: 23
Views: 2659

Re: What is the best option to pay off a house?

I think liquidating your retirement accts to pay off the house is a bad idea. There is no long term loan provision for Ira's. This means you will pay income tax and 10% early withdrawal penalties. At 180k$/yr income your effective fed tax rate is probably close to 20 %. So w/ the penalties your ira ...
by yahoo
Thu Jul 26, 2012 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: Best online bank for quality service
Replies: 91
Views: 10122

Re: Best online bank for quality service

I use a Fidelity Cash Management acct. No Fees or minimums, 24 hr 365 d customer service, free atms all over the world with unlimited ATM fee rebates, unlimited free checks, deposit checks using your mobile phone or computer scanner, can get FDIC insurance if you care about that. This is a no brainer!
by yahoo
Thu Jul 26, 2012 7:38 pm
Forum: Investing - Theory, News & General
Topic: This is why you diversify
Replies: 173
Views: 17080

Re: THIS is why you diversify

Jerry Lee Thanks for the data. Could you site your source. I see "MSCI indexes except where noted". Is this a website? Does this have Us data as well? By real return do you mean factoring in inflation numbers from around the world? Did you calculate this data (factoring in inflation) or ju...
by yahoo
Thu Jul 26, 2012 7:20 pm
Forum: Local Chapters and Bogleheads Community
Topic: New Hampshire/Maine Local Chapter
Replies: 11
Views: 2396

Re: New Hampshire/Maine Local Chapter

I think we could talk about many different Financial planning topics:
Long term care
Asset allocation
Asset protection
Reverse mortgages
When to take Soc Sec
Portfolios for drawing down your funds
Funding College
Getting out and staying out of debt
fishing
golf
sports
etc......
by yahoo
Sat Jul 07, 2012 7:33 am
Forum: Personal Finance (Not Investing)
Topic: College Funding Strategies
Replies: 85
Views: 9338

Re: College Funding Strategies

Great information. Especially the links specific to harp information. My instinct is to not tell a 16 y/o what they can and can't accomplish in life. My parents were both school teachers and it was a wonderful way to grow up. We always had a home and food and medical care and lots of time. They purs...
by yahoo
Tue Jul 03, 2012 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard or Fidelity..does it matter ?
Replies: 64
Views: 10278

Re: Vanguard or Fidelity..does it matter ?

Why no mention of Schwab? I use them mostly because they offer an extensive line of Schwab managed funds with extremely low exp ratios (several index funds as low as 0.09) and the minimum investment is only $100 which is great for a recent college grad like me who is only a substitute teacher. Plus...
by yahoo
Sat Jun 23, 2012 10:08 am
Forum: Investing - Theory, News & General
Topic: Vanguard Managed Funds vs Index funds
Replies: 9
Views: 2156

Vanguard Managed Funds vs Index funds

Disregarding ETF's and different share classes of the same mutual fund, it seems like Vanguard offers just as many managed mutual funds as index funds.
Does anyone see this as a contradiction, or are they just offering what investors want? Why would Vanguard offer any managed funds at all?
by yahoo
Sat Jun 23, 2012 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Help me decide how to take money from my IRA
Replies: 24
Views: 1781

Re: Help me decide how to take money from my IRA

THe IRs allows tax free loans from an IRA once / per acct/ per rolling 12 mo. period. It 's called a 60d rollover. Take the amt from the trad ira for 60d, if you can't pay it back by then, take the same amt. from the roth as a 60d rollover to pay back the first loan from the traditional. Pay the rot...
by yahoo
Sat Jun 23, 2012 9:37 am
Forum: Investing - Theory, News & General
Topic: Mature Bogelheads: What did you wish you knew at 18 or 25?
Replies: 88
Views: 9272

Re: Mature Bogelheads: What did you wish you knew at 18 or 2

I've found that the single most important decision you will ever make is the choice of a mate. Knowledge of what's inside you, motivating that choice, is the key.
by yahoo
Sun Jun 10, 2012 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: College Funding Strategies
Replies: 85
Views: 9338

Re: College Funding Strategies

There are several issues here. 1) Why does your child want to attend a private school? The answer could explain whether or not this makes sense 2) I understand not wanting to post your income but financial aid will depend heavily on income. You might be surprised at the level of income that qualifi...
by yahoo
Sun Jun 10, 2012 8:25 pm
Forum: Investing - Theory, News & General
Topic: Selling Puts as an Investment Strategy
Replies: 44
Views: 4359

Re: Selling Puts as an Investment Strategy

This is the picking up nickels in front of the steam roller strategy. It is the opposite of lottery ticket. Most of time you win and then you get slaughtered. But because investors are risk averse by selling insurance you can earn expected return that is fairly high, accepting the risk of huge loss...
by yahoo
Sun Jun 10, 2012 6:54 am
Forum: Personal Finance (Not Investing)
Topic: College Funding Strategies
Replies: 85
Views: 9338

Re: College Funding Strategies

We used Boglehead wisdom and saved for retirement not college......... Does anyone have some funding strategies or a good way to look at this ? Yahoo: with all due respect, I am confused by your post. You first tell us that you intentionally did not save for college. Presumably, you were not expect...
by yahoo
Sat Jun 09, 2012 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Advice Consultation
Replies: 12
Views: 2046

Re: Vanguard Advice Consultation

How are Vanguard advisors compensated? Do they sell the annuities offered by Vanguard?
by yahoo
Sat Jun 09, 2012 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Advice Needed: Career Change from Engineering to Finance
Replies: 40
Views: 6813

Re: Advice Needed: Career Change from Engineering to Finance

Thank you, that was very insightful and helpful. Might I ask what you ended up doing? You said you ended up working for a large financial firm but also found out the hard way what happens when you go to a business-only type job.[/quote] I work for a financial services firm. My colleagues are mostly ...
by yahoo
Sat Jun 09, 2012 8:36 am
Forum: Investing - Theory, News & General
Topic: Fidelity Investment Advisors
Replies: 28
Views: 4303

Re: Fidelity Investment Advisors

I don't think your conclusion that the purpose of the call was to generate commissions in your acct. There are no commissions for any Fidelity fund and the majority of the non-Fido funds they offer. If he was recommending ETF's the online rate is 7.95. I don't know how they are compensated but I do...