Search found 26 matches

by IGoCougsI
Wed Jul 07, 2021 12:35 am
Forum: Personal Finance (Not Investing)
Topic: Refinance or Accept Lower Rate on Existing Mortgage
Replies: 2
Views: 436

Refinance or Accept Lower Rate on Existing Mortgage

I have a mortgage on my primary residence that was issued in 2019.  Rates have come down and I am considering refinancing.  My mortgage broker has quoted me a rate of 3.25% for a 30-year fixed rate mortgage.  Closing costs associated with the loan are estimated at $5,200.  The new loan amount is $730,000.  Interestingly, I have been approached by my current mortgage bank (Chase) to reduce my existing mortgage rate from 4.250% to 3.347%.  All I would need to do is sign on the dotted line.  In reading the documentation from Chase there are no costs to this rate reduction and it doesn't reamortize my current 30-year fixed rate mortgage which was issued in June 2019.   My question, which mortgage is better assuming we will live in this home for...
by IGoCougsI
Thu Nov 12, 2020 12:51 am
Forum: Personal Investments
Topic: Levered ETF - Value Index
Replies: 1
Views: 440

Levered ETF - Value Index

As we all know, value has underperformed for about 10 years now. It has been a historic period of persistent underperformance relative to growth. It’s at the point of being a two standard deviation event. And if I understand standard deviation that means there is something like a 3% chance that value maintains this relative underperformance for much longer. So, I am wondering if I can place a bet with some “fun money” on the 97% probability. My thought, given my conviction that value will outperform growth, is to invest in a levered Value ETF. Anyone know if such a product exists? * I am aware of the risk of levered ETFs if markets go down and if volatility is excessive. * I am aware that levered ETFs are expensive * I am aware that value’s...
by IGoCougsI
Tue Jan 02, 2018 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: [How much should I give to charity?]
Replies: 24
Views: 3854

Re: Generosity

1. [deleted] 2. What is your philosophy or decision making framework on who/what/how much/when? 3. Do you give more of your time or money? How much (hours per week or % of income) do you give? 4. So as not to stifle the conversation, please refrain from commenting negatively of what folks might be doing. 1. I don't worry about generosity (amount of time or $), the term I would use (maybe of little difference) is service. I want my life and the lives of my children to be marked as servants to others. 2. How much: I give the greater of 1% of my net worth or 10% of my gross income. For me the last 6 or 7 years it has been 1% of net worth. To whom: I've prioritized three main charities (church, university which provided me a full-ride, and a s...
by IGoCougsI
Wed Sep 27, 2017 11:08 pm
Forum: Investing - Theory, News & General
Topic: Endowment - Investment & Spending Policy
Replies: 7
Views: 1384

Re: Endowment - Investment & Spending Policy

lhl12 wrote: Wed Sep 27, 2017 9:27 am What is the approximate size of each of your three buckets? That might affect the answer.
Short-term reserve: $3MM (possibly too large an amount given annual operating budget. But that is another topic for another day.)
Long-term Reserve: $4MM
Endowment: $5MM
by IGoCougsI
Wed Sep 27, 2017 11:07 pm
Forum: Investing - Theory, News & General
Topic: Endowment - Investment & Spending Policy
Replies: 7
Views: 1384

Re: Endowment - Investment & Spending Policy

I like your plan better but I would guess your board will want some kind of accredited professional involved in managing the assets and/or reviewing the investment plan. It is probably a good practice, unfortunately, because once you are gone they will need somebody to do it. Plus you probably don't really want the responsibility if they follow your plan and the market drops (even if your plan outperforms the old one). Yes, this is a headwind that I am working to understand better and either accommodate or educate and memorialize within an investment policy statement for the endowment. I don't want all fingers pointed at me during the periods...which will occur...when diversified passive portfolio under performs undiversified passive and/o...
by IGoCougsI
Tue Sep 26, 2017 10:48 pm
Forum: Investing - Theory, News & General
Topic: Endowment - Investment & Spending Policy
Replies: 7
Views: 1384

Endowment - Investment & Spending Policy

I'm privileged to serve on the finance committee (FC) of a non-profit that I care deeply about. The FC oversees the endowment assets. I quickly noticed that the firm hired to manage the endowment is charging 1.0% of AUM per annum and the weighted average expense ratio for the endowment portfolio (all invested in mutual funds) is very close to 1.0%. Of course the endowment's performance is trailing an appropriately constructed benchmark. Also, I pointed out that the amount we are paying in fees/expenses could/should be put to the good work of the non-profit's mission. Additionally, the assets set aside by the Board for (1) short-term "rainy day" reserves and (2) long-term reserves which have been treated similarly to endowed assets...
by IGoCougsI
Wed Aug 09, 2017 7:29 pm
Forum: Personal Consumer Issues
Topic: Oregon road trip help
Replies: 85
Views: 9581

Re: Oregon road trip help

Take the relatively little time to drive up the Gorge at least as far as Multnomah Falls. It is only about 35 minutes east of the airport (without rush-hour traffic). If you have more time, take the Historic Columbia River Highway to Multnomah Falls and stop, if you choose, at the several other waterfalls that are 3 to 5 minute hikes from the parking lot. I too wouldn't go out to The Dalles, but with bonus time would consider going out as far as Hood River to eat and see the windsurfing/kiteboarding.

Have a great trip!
by IGoCougsI
Wed Aug 09, 2017 7:00 pm
Forum: Personal Investments
Topic: Why not utilize leveraged ETF's?
Replies: 41
Views: 6162

Re: Why not utilize leveraged ETF's?

I have a portion of my portfolio in an Rollover IRA, funds from a prior employer 401k, that I haven't paid much attention to because they aren't at Vanguard where 95% of my invested assets reside. In looking at it today, one position I hold is SPXL--an 3x leveraged ETF of the S&P 500 index. I spotted it and recalled purchasing it several years ago. I simultaneously recalled that I don't want to hold leveraged/inverse ETFs due to the risks associated and that they are not designed for the long-term (see: https://www.bogleheads.org/wiki/Inverse_and_leveraged_ETFs) However, when looking at the actual performance for my shares, it has been quite strong. In fact, it has *outperformed* the 3x over my holding period. What is going on here that...
by IGoCougsI
Sat Nov 26, 2016 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Types of Assets HNWI Boomers Own
Replies: 21
Views: 4974

Re: Types of Assets HNWI Boomers Own

And what do you hope to gain? This is a good question and I should have been more clear. I'm thinking through transfer of wealth considerations that might be (I believe they are) different between generations (Greatest, Silent, and Boomers). My thinking is that this would include different asset types (e.g. rental real estate or partnership assets as compared to stock and treasuries held outright) and different manners of transfer (e.g. beneficiary designation for retirement plan assets as compared to pensions which cannot be transferred to heirs). I think of Greatest Generation individuals I know who had corporate and government pensions along with social security; they were able to pass to heirs/charity their savings and net value of the...
by IGoCougsI
Thu Nov 24, 2016 11:02 pm
Forum: Personal Finance (Not Investing)
Topic: Types of Assets HNWI Boomers Own
Replies: 21
Views: 4974

Re: Types of Assets HNWI Boomers Own

Did you drop a zero (i.e., you meant $30M rather than $3)? No, I intended it to be all individuals/households over $3MM in assets excluding primary personal residence. I've seen this level considered HNW. For my purposes this is the broad audience I am trying to understand better. While someone worth $3 million may seem high net worth to someone worth $300,000, it's far from what we usually consider high net worth. It's more upper middle class than high net worth. While some people at that level have vacation homes and rental real estate, most don't. At $3 million, their art would probably be of modest value. Whether they have a living trust would depend on whether there's any particular reason for them to have one, or whether they live in...
by IGoCougsI
Thu Nov 24, 2016 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Types of Assets HNWI Boomers Own
Replies: 21
Views: 4974

Types of Assets HNWI Boomers Own

I am starting in on secondary research on Baby Boomers to understand better the assets that high net worth ($3MM+ in investment assets, excluding personal residence) individuals own. I'm specifically trying to compare their asset ownership to the generations before them, namely those from the Silent and Greatest generation. My presupposition is that they own the following disproportionally: - Second (vacation) homes - Rental real estate (residential and commercial) - Mutual funds (as compared to stock ownership) - Collectibles (such as art and wine) Additionally, I presume that the manner in which these assets are held are disproportionally: - Held by a living trust as compared to in their personal name) - Within a qualified retirement plan...
by IGoCougsI
Sat May 31, 2014 10:29 am
Forum: Personal Consumer Issues
Topic: Budget for charitable giving
Replies: 39
Views: 4004

Re: Budget for charitable giving

At the start of the calendar year I look on mint.com for my approximate net worth and multiply that by 1.0%. That is what I give in the year. I transfer appreciated funds to my DAF when I rebalance. I have 3 core charities and a couple "on a whim" charites. I figure the 1% is fair given it outpaces 10% of salary income and is effectively the "savings" associated annually by investing like a boglehead as compared to those with an advisor and lots of active funds.
by IGoCougsI
Thu Jan 16, 2014 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking Advice/Direction: Kids Allowence, Paying for Chores
Replies: 29
Views: 2371

Re: Seeking Advice/Direction: Kids Allowence, Paying for Cho

I have a 6 and 8 year old. I didn't want to teach pay for work, I wanted to teach budgeting, planning, savings, and giving. I provide them a "salary" of $30 per month. They are required to save 10% in the bank in their own savings accounts, they are required to give 10% to church per month, and they then have control over the remaining $24. This salary is not tied to any behavior/chores. This is the only source of funds to the buy birthday gifts for their friends, to buy toys if they wish, buy those unnecessary (for me at least) boots that my 8 year old desires, etc. With this the kids are expected to then budget for what they need/want. For example, they have asked me what birthday parties they are going to this month and if pres...
by IGoCougsI
Sat Sep 21, 2013 12:03 pm
Forum: Personal Consumer Issues
Topic: Scanners/duplex scanners, OCR software?
Replies: 26
Views: 3202

Re: Scanners/duplex scanners, OCR software?

I am rarely connected by computer to my scanner. My current scanner doesn't have any internal memory or any ability to send scanned files to a cloud storage service. Any recommendations on a home office scanner that can scan a doc straight to the cloud without the need for a computer hooked up to facilitate? I plan to scan maybe 200 docs a year.

Looking at the Fujitsu scansnap s1300i. Thoughts?
by IGoCougsI
Fri Aug 23, 2013 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: Residential Exemption in Year of Spouse's Death
Replies: 11
Views: 1485

Re: Residential Exemption in Year of Spouse's Death

Retread wrote:You would file a joint return for 2013 & claim the $500,000 exemption. Also, you would have a partial step up in basis to $475,000.
Bruce
And if I were to sell the house the next tax year (2014) would I as the surviving spouse only receive the stepup in basis and the $250,000 exemption.

Thanks for this education, Retread!
by IGoCougsI
Fri Aug 23, 2013 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Residential Exemption in Year of Spouse's Death
Replies: 11
Views: 1485

Residential Exemption in Year of Spouse's Death

Question for the forum. I am trying to help a friend consider this scenario.

Assume I have a primary residence home that is currently worth $750,000 and the cost basis in the home is $200,000. My wife and I purchased the home several years ago and have lived in it consistently. My wife dies in 2013 and I decide to sell the house and move out this year...and it sells and closes for $750,000 in 2013. Can I claim, using the residential exemption on a primary residence, an exemption amount of $250,000 since I am a widower, or can I claim $500,000 since my wife was alive in the tax year of the sale? My wife and I both have equal ownership of the home.

Thanks!
by IGoCougsI
Mon Aug 19, 2013 2:15 am
Forum: Personal Investments
Topic: Review of 401k Asset Allocation
Replies: 4
Views: 883

Re: Review of 401k Asset Allocation

Grt2bOutdoors : Thank you for your thoughts. The duration of the Long Gov't Bond Fund is long, 15.16yrs currently. The Short Duration Gov't Bond fund has a duration of 1.9 years. I appreciate the perspective relative to expense ratios. I have to admit to not watching this account for years. I set it up and basically forgot it knowing it was on auto-rebalance---thanks to a feature of the plan to rebalance quarterly. Pingo : I wanted to "rollover" this 401k about 5 years ago as I was inheriting my late-wife's accounts and tidying things up. Interestingly they required a death certificate and additionally a spousal waiver signature. That was hard to obtain given her death. After a few calls I gave up and have ignored the account lar...
by IGoCougsI
Sun Aug 18, 2013 4:35 pm
Forum: Personal Investments
Topic: Review of 401k Asset Allocation
Replies: 4
Views: 883

Review of 401k Asset Allocation

I would appreciate your review of my current 401k asset allocation for consideration. This allocation was established about 10 years ago and hasn't been modified. I figure it is time and your collective wisdom is much appreciated. (I am aware of strategically placing less tax efficient funds in retirement plan accounts and tax efficient funds in taxable accounts. However, in this instance I am managing this 401k as a segregated account from my overall portfolio.) Age: 37 Account: No new contributions are being made to this account. "Rolling over" the account to an IRA has proven close to impossible. My desired asset allocation: 70/30 (ten years ago it was 100/0) Fund Options: Current Used Northern Trust S&P 500 () 30% ER=0.02%...
by IGoCougsI
Thu Jul 11, 2013 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: Questions to ask before joining Board of Directors
Replies: 5
Views: 947

Questions to ask before joining Board of Directors

I've been asked to serve on the Board of Directors for a local non-profit with a national reach. This is the first time I have been approached to serve on a Board and would like the collective wisdom of the Bogleheads regarding what key questions to ask before serving. FWIW, I am 100% committed and believe in the service mission of the non-profit; alignment of values is not at issue. My only initial thought is liability protection. Thanks in advance for sharing your wisdom/experiences.
by IGoCougsI
Mon Jun 24, 2013 1:44 am
Forum: Personal Finance (Not Investing)
Topic: Charitable giving amount determination.
Replies: 19
Views: 2530

Re: Charitable giving amount determination.

Frengo wrote:
IGoCougsI wrote: Anyone else using a % of net worth calculation?
I do. And it turns out to be equal to the share of annual income I donate.
So that I am clear, your charitable giving is based on both a % of net worth and % of annual income? Or you moved to a net worth % calculation and it has tracked similarly to what you had been giving when giving based on % of annual income?

How do you deal with market volatility, which for me currently sitting mid-career is far more variable than income volatility. I'd hate to complicate matters by creating a smoothing role such as the 1% of the trailing 5 year average net worth.
by IGoCougsI
Mon Jun 24, 2013 1:32 am
Forum: Personal Finance (Not Investing)
Topic: Charitable giving amount determination.
Replies: 19
Views: 2530

Re: Charitable giving amount determination.

I've heard most everyone talking about the amount they give as a percentage of income (i.e. 10% of income or 5% of gross income, etc.). I used to consider it that way, but have moved to a percentage of net worth formula. (I include within this "net worth" my house, taxable investment accounts, tax deferred investment accounts, and rental properties) My determination is to give 1.0% of my net worth annually and to do so through the Vanguard Charitable Endowment (a donor advised fund). This calculation provides for a more variable amount from year-to-year, but will hopefully over the long-run allow for more in charitable contributions.

Anyone else using a % of net worth calculation?
by IGoCougsI
Wed May 29, 2013 12:49 am
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance
Replies: 23
Views: 3870

Re: Term Life Insurance

For young healthy people, I'm a proponent of "going big". In other words, I would rather see someone make the mistake of buying too much coverage than too little. The reason for this is simply that the cost is too little to fret over. +1 There are a couple of additional considerations I don't believe have been mentioned when considering term life insurance. If you are married and your spouse has paid into social security, then if that spouse dies social security pays out to the surviving minors until they are 18. Additionally, with a 30-year term it is important to best anticipate the cost of the goods/services that drives the need for insurance. These costs for goods/services likely will increase with inflation while the value o...
by IGoCougsI
Fri May 24, 2013 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Poll: Umbrella Insurance
Replies: 84
Views: 7761

Re: Poll: Umbrella Insurance

Bought umbrella policy 18 months ago. I am 37. Amount is equal to my overall net worth. (If I get hammered in a lawsuit taking all my assets, theoretically my umbrella policy makes me whole.) I have purchased a few rental properties in the past 4 years and realized that my exposure to litigation has increased. As a widower with two young kids, I needed to protect their interests beyond my own. Incredibly cost effective.
by IGoCougsI
Wed May 08, 2013 6:51 pm
Forum: Personal Investments
Topic: Rebalance using charitable contributions?
Replies: 31
Views: 1985

Re: Rebalance using charitable contributions?

Different way to look at it. Especially if you have a donor advised account. Suppose you would normally make donations of (keep it simple) $10,000 per year. If you hit a rebalance trigger, you could do something like donate $100,000 worth of securities, in effect lumping 10 years worth into one transaction. Then meter the 10k per year out down the road. If you are dumping equity, put the donor advised account into bonds. May not cover everything you need to move but a good way to dump some high gain stuff. +1 Having invested a large (for me) sum in early 2009 and seeing the nice run-up, I need to re-balance and want to incorporate my gifting for the next few years as part of that. Establishing a DAF with Vanguard. Getting the specific tax ...
by IGoCougsI
Sat Jan 26, 2013 12:06 am
Forum: Personal Finance (Not Investing)
Topic: Transfering UTMA assets to 529
Replies: 1
Views: 450

Transfering UTMA assets to 529

I established an UTMA for my daughter 5 years ago. Shortly after opening and funding the UTMA I opened a 529 plan for this same daughter and have made monthly deposits to the 529. My intentions for the money in both accounts is to help her pay for undergraduate and graduate education. She is now 7 years old and I am considering the possibility of transferring the monies in the UTMA to the 529, but don't know if it is possible. If it is, what are the tax ramifications to my daughter? If the UTMA has $30k, can I transfer all that to the 529 in a single year? FYI, both UTMA and 529 accounts are with Vanguard.

Secondary questions: Are there risks in over-funding a 529 plan for a child?
by IGoCougsI
Sun Dec 30, 2012 11:49 pm
Forum: Investing - Theory, News & General
Topic: What is your current Asset Allocation Policy and why?
Replies: 83
Views: 16052

Re: What is your current Asset Allocation Policy and why?

Age: 36 Vanguard Large-Cap Index Fund 10.00% Vanguard 500 Index Fund 4.00% Vanguard Growth Index Fund 5.00% Vanguard Value Index Fund 7.50% Vanguard Small-Cap Index Fund 9.00% Vanguard Total International Stock Index Fund 9.00% OAKMARK INTERNATIONAL FUND CLASS I 5.00% OAKMARK INTERNATIONAL SMALL CAP FUND CLASS I 2.50% Vanguard Emerging Markets Stock Index Fund 4.00% COHEN & STEERS REALTY SHARES FUND 12.00% Vanguard Global ex-U.S. Real Estate Index Fund 3.00% Vanguard Intermediate-Term Treasury Fund 12.50% Vanguard Total Bond Market Index Fund 2.75% PIMCO FOREIGN BOND (US DOLLAR-HEDGED) 3.25% Vanguard High-Yield Corporate Fund 3.50% Vanguard Prime Money Market Fund 7.00% Rationale: Broad asset allocation with a slight value-tilt...need t...