Search found 3302 matches

by AlohaJoe
Sat Jun 23, 2018 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: Retirees: When you cut spending, what do you cut?
Replies: 21
Views: 2011

Re: Retirees: When you cut spending, what do you cut?

In addition to the vacations & eating out frequently mentioned already... Become vegetarian; stop eating meat Stop drinking coffee & alcohol Take in boarders. We have a spare room that could be rented out. Sell the house (which is paid off and would net 10-20 years of expenses, depending on what the...
by AlohaJoe
Sat Jun 23, 2018 10:30 pm
Forum: Investing - Theory, News & General
Topic: Heavy in equities?
Replies: 21
Views: 1882

Re: Heavy in equities?

Here are some results from my own testing on why I lean towards heavy equities, even in retirement: US 1871-2015 https://i.imgur.com/Wm6HcHX.png?1 35% bonds does slightly better than 100% equities for absolute minimum. But 100% equities does: $2,000 a year better at the 5th percentile $4,300 a year ...
by AlohaJoe
Sat Jun 23, 2018 10:12 pm
Forum: Investing - Theory, News & General
Topic: Heavy in equities?
Replies: 21
Views: 1882

Re: Heavy in equities?

...The guy at Portfolio Charts actually compared about a dozen "lazy portfolios" for SWR calculations and found 100% stocks to perform THE WORST of the lot, concluding with the comment " Note that the Total Stock Market (100-0) has one of the highest returns but the lowest SWR! Also note that four ...
by AlohaJoe
Sat Jun 23, 2018 10:00 pm
Forum: Personal Consumer Issues
Topic: When did you start flying business class?
Replies: 46
Views: 2335

Re: When did you start flying business class?

High 6-figures is more than $666,000 a year to me, so with only $12K monthly expenses, I'd say go for first class. I thought the same thing. If someone is making >$500,000 and complaining about $24,000 in airfare -- especially when they said they hate flying coach -- they need a bit of a reality-ch...
by AlohaJoe
Sat Jun 23, 2018 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: Bogleheads Are Better in the Morning
Replies: 7
Views: 751

Re: Bogleheads Are Better in the Morning

People use the internet while at work, not while at home with their families. I've never seen any statistics but I wouldn't be surprised if a lot of that happens early in the day, when employees are drinking coffee, "catching up on email", and similar start of day things. If you have a burning quest...
by AlohaJoe
Sat Jun 23, 2018 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 51
Views: 2571

Re: "Never time the market" vs. lump sum investment

Vanguard has a paper which may help in your situation, as it looks to answer the question How might an individual who receives a $1 million windfall approach the decision of investing those funds immediately versus dollar-cost averaging the investment over time? I would have loved to see how DCA vs...
by AlohaJoe
Fri Jun 22, 2018 10:18 pm
Forum: Investing - Theory, News & General
Topic: Heavy in equities?
Replies: 21
Views: 1882

Re: Heavy in equities?

"Also note that four of the top five SWR portfolios have no more than 40% stocks . Diversification plays a larger role than many realize." Also note that 4 of the top 5 SWR portfolios have 40% or less in bonds. (And 1 of them has 20%.) Also note that 3 of the top 5 SWR portfolios have at least 20% ...
by AlohaJoe
Fri Jun 22, 2018 8:53 pm
Forum: Investing - Theory, News & General
Topic: Are mutual funds safer than ETFs?
Replies: 15
Views: 1534

Re: Are mutual funds safer than ETFs?

That said, I do think that the ETF universe has more available nutty high-risk choices in it than the mutual fund universe; a 3X inverse leveraged NASDAQ ETF, for example. I don't think there's any such mutual fund available. Rydex, ProFunds, and Direxion all offer inverse leveraged mutual funds. R...
by AlohaJoe
Fri Jun 22, 2018 10:43 am
Forum: Personal Finance (Not Investing)
Topic: What do we mean when we say "HCOL vs LCOL" location?
Replies: 34
Views: 2080

Re: What do we mean when we say "HCOL vs LCOL" location?

No, there is no rule of thumb. I live in a place where the average annual income is $1,800 so anything higher than that is HCOL. Also, you spend your entire time talking about tax which is almost totally unrelated to whether something is high cost of living or not. Singapore is low tax but high cos...
by AlohaJoe
Fri Jun 22, 2018 10:15 am
Forum: Personal Finance (Not Investing)
Topic: What do we mean when we say "HCOL vs LCOL" location?
Replies: 34
Views: 2080

Re: What do we mean when we say "HCOL vs LCOL" location?

No, there is no rule of thumb. I live in a place where the average annual income is $1,800 so anything higher than that is HCOL. Also, you spend your entire time talking about tax which is almost totally unrelated to whether something is high cost of living or not. Singapore is low tax but high cost...
by AlohaJoe
Fri Jun 22, 2018 7:30 am
Forum: Personal Consumer Issues
Topic: How to get cheap flights?
Replies: 18
Views: 874

Re: How to get cheap flights?

Are there ever cheap flights for a holiday week? I can't imagine why the airlines would do that, even if you bought tickets six months in advance.
by AlohaJoe
Fri Jun 22, 2018 7:28 am
Forum: Investing - Theory, News & General
Topic: Steep rise in "Old Age Dependency Ratio"
Replies: 15
Views: 1885

Re: Steep rise in "Old Age Dependency Ratio"

What's actionable about this? Mostly for planning keep in mind the fairly strong demographic pressure on retirement benefits such as pensions and SS. Personally on our end we plan for a bit less SS income than currently projected since we are more than a couple of decades away from being beneficiar...
by AlohaJoe
Fri Jun 22, 2018 12:09 am
Forum: Investing - Help with Personal Investments
Topic: 28 year old investor [Australia]
Replies: 13
Views: 632

Re: 28 year old investor [Australia]

Overall it is fine. That said, I would recommend you think hard about whether the split between large & large value (and small & small value) is worth it. Here's a classic Bogleheads thread on it: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=38374 Also, the tax advantages for overweighting ...
by AlohaJoe
Fri Jun 22, 2018 12:01 am
Forum: Investing - Help with Personal Investments
Topic: where to invest $150k while you are learning about investment
Replies: 4
Views: 446

Re: where to invest $150k while you are learning about investment

There's nothing super wrong with just leaving it in a savings account for a few months. If your bank doesn't offer okay rates then look for an internet bank that does.

I mean we're talking about probably less than $1,000 between just putting it in a savings account and doing something more optimal.
by AlohaJoe
Thu Jun 21, 2018 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Can you retire on $2M?
Replies: 120
Views: 10791

Re: Can you retire on $2M?

No, this analysis isn't sound. Among other things, if you start at 40 and draw for 40 years, you aren't 100, you are only 80. There are lots of tools that have been built to help provide answers to the "how much do I need to retire" question. I'd use one of those instead of reinventing the wheel. Cf...
by AlohaJoe
Thu Jun 21, 2018 9:11 pm
Forum: Investing - Theory, News & General
Topic: Are mutual funds safer than ETFs?
Replies: 15
Views: 1534

Re: Are mutual funds safer than ETFs?

2. OTOH, a mutual fund can have a cash liquidity crisis if they receive too many sell orders in a day and they can't liquidate enough of their holdings to raise the cash for redemptions. This is super-rare. In fact, has anyone heard of this happening? It has happened at least once. I don't remember...
by AlohaJoe
Thu Jun 21, 2018 9:08 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 51
Views: 2571

Re: "Never time the market" vs. lump sum investment

Am I making some mistake or do you agree that for a large one-lump-sum investment, it does make sense to time the market? You are wrong on this. You haven't actually provided any evidence. If the strategy worked for big investments it would work for small investments, too. There have been many thre...
by AlohaJoe
Thu Jun 21, 2018 8:59 am
Forum: Investing - Theory, News & General
Topic: Does an IPS really need to be 5 pages long to be valuable?
Replies: 63
Views: 2751

Re: Does an IPS really need to be 5 pages long to be valuable?

The only sample IPSes I'm seeing that are 5+ pages are for advisors to send to their clients. That's not your use case.
by AlohaJoe
Wed Jun 20, 2018 7:51 pm
Forum: Personal Consumer Issues
Topic: Best time to travel to Iceland?
Replies: 4
Views: 912

Re: Best time to travel to Iceland?

The best time to visit is summer. The cheapest time to visit is winter. If you visit when it is cheap, many things will be closed for the season or due to weather. Of course "summer" is a relative thing. When I was in Iceland during the summer it was never above 15 degrees Celsius and often dropped ...
by AlohaJoe
Wed Jun 20, 2018 9:03 am
Forum: Investing - Help with Personal Investments
Topic: Changing from Average Cost basis to Spec ID
Replies: 4
Views: 389

Re: Changing from Average Cost basis to Spec ID

When you googled it, what were the results?
by AlohaJoe
Tue Jun 19, 2018 10:31 pm
Forum: Investing - Theory, News & General
Topic: General Electric booted from Dow Jones Industrial Average
Replies: 48
Views: 5190

Re: General Electric booted from Dow Jones Industrial Average

But why Walgreens and not say Amazon, a company with a larger footprint, which may well upend Walgreens in a few years if it decides to enter the pharmacy retail space. And perhaps DJIA should be rebranded as DJA since there are not a lot of industrial components left in the average. Companies chos...
by AlohaJoe
Tue Jun 19, 2018 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Accounting for various forms of equity
Replies: 10
Views: 458

Re: Accounting for various forms of equity

There's no real way to do this for private companies. Your company is supposed to get a quarterly valuation but based on my experience in a similar situation and rumors from the CFO's office, the valuations aren't entirely credible. The company has a lot of incentive for the number to be low and the...
by AlohaJoe
Tue Jun 19, 2018 2:23 am
Forum: Personal Finance (Not Investing)
Topic: Do you think it is smart to disclose that you have passive investments to other people?
Replies: 43
Views: 4157

Re: Do you think it is smart to disclose that you have passive investments to other people?

I don't think it is smart. I don't think it would build trust. I can't imagine anyway this would come up in the normal course of business.
by AlohaJoe
Mon Jun 18, 2018 9:00 am
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 63
Views: 3710

Re: A different theoretical view of SWR

Whatever helps you sleep at night is fine, but your formula appears to be a recipe for working longer than needed and ending up with a pile of money that is not spent.. Without making the assumption that past market returns can predict future market returns over the period of an individual‘s retire...
by AlohaJoe
Mon Jun 18, 2018 4:03 am
Forum: Investing - Theory, News & General
Topic: Very confused with the current market
Replies: 93
Views: 8314

Re: Very confused with the current market

I remember Warren buffet once said: buy the dips and value investing. the stock market always go higher due to inflation in the long term, however, should not we buy the dips? Are those crazy tech stocks still value investing ? I am expecting the dips. Mr. Buffett also does not like to sell holding...
by AlohaJoe
Sun Jun 17, 2018 10:38 pm
Forum: Investing - Theory, News & General
Topic: I-bonds look pretty bad right now
Replies: 67
Views: 7482

Re: I-bonds look pretty bad right now

So what is your alternative? Nominal Treasuries, real estate, stocks, private equity, gold, bitcoin, CDs, fallen angels, and Icelandic savings accounts are just a few of the alternatives available. With the exception of T-bills/CDs <= 1yr: none of those are cash equivalent, principal protected, inf...
by AlohaJoe
Sun Jun 17, 2018 8:14 pm
Forum: Investing - Theory, News & General
Topic: I-bonds look pretty bad right now
Replies: 67
Views: 7482

Re: I-bonds look pretty bad right now

Nate79 wrote:
Sun Jun 17, 2018 7:44 pm
So what is your alternative?
Nominal Treasuries, real estate, stocks, private equity, gold, bitcoin, CDs, fallen angels, and Icelandic savings accounts are just a few of the alternatives available.
by AlohaJoe
Sun Jun 17, 2018 12:37 am
Forum: Personal Finance (Not Investing)
Topic: Tracking spending before retirement useful for estimating retirement expenses?
Replies: 72
Views: 4044

Re: Tracking spending before retirement useful for estimating retirement expenses?

For people who have already made the transition, does your expenses in retirement resemble that during the years leading up to retirement? If so, is that a coincidence, or is it because you are essentially doing the same things as before? Yes, it resembled it. No, it wasn't exactly the same. But it...
by AlohaJoe
Sun Jun 17, 2018 12:20 am
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 63
Views: 3710

Re: A different theoretical view of SWR

A little-discussed problem with SWR theory is that it always assumes a unitary portfolio of x stocks / y bonds, consisting of substantially all a retiree’s investable assets, all of which is being drawn down at this or that % rate This isn't true. I've seen plenty of SWR analyses that include thing...
by AlohaJoe
Sat Jun 16, 2018 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: Cash Drag
Replies: 5
Views: 739

Re: Cash Drag

If you are in the market ALL IN, all the time, how do you take advantage of these investment opportunities as they present themselves? If I see an investment opportunity that will yield X% then I sell something I already own that is yielding less than X%. If the "investment opportunity" isn't big e...
by AlohaJoe
Sat Jun 16, 2018 8:40 am
Forum: Investing - Theory, News & General
Topic: Should your employment/income source determine your investment choices?
Replies: 13
Views: 937

Re: Should your employment/income source determine your investment choices?

The idea seems to make perfect sense to me. You may not own your job but you certainly own your human capital. If your human capital is tied up a (volatile) Wall Street job then it would seem to make perfect sense to have your portfolio be more conservative. Likewise, if you are a tenured professor ...
by AlohaJoe
Sat Jun 16, 2018 8:05 am
Forum: Investing - Theory, News & General
Topic: iShares lowers expense ratios on bond ETFs
Replies: 6
Views: 469

Re: iShares lowers expense ratios on bond ETFs

Why does TD still quote MUB with a 25 basis point “management fee”? From the first post: "For the purists, I read the MUB prospectus, and this is a contractual reduction of net ER from 0.25% to 0.07% through May 30, 2023, not a reduction in the gross ER. " Or, go to iShares page: https://www.ishare...
by AlohaJoe
Fri Jun 15, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: Investment book recommendations?
Replies: 12
Views: 1013

Re: Investment book recommendations?

kmwilson343 wrote:
Fri Jun 15, 2018 9:29 pm
Hey fellow Bogleheads. Trying to educate myself on investing.
The wiki is as good a place to start as any (note the "Further reading" at the bottom)
https://www.bogleheads.org/wiki/Getting_started
by AlohaJoe
Fri Jun 15, 2018 10:04 am
Forum: Personal Finance (Not Investing)
Topic: RMDs based on 1986 life expectancy versus today?
Replies: 23
Views: 1964

Re: RMDs based on 1986 life expectancy versus today?

RMDs aren't based on 1986 life expectancy. They are based on life expectancy in 2000, including projected mortality improvements. Section 634 of the Economic Growth and Tax Relief Reconciliation Act of 2001 updated the tables used. RMD taxation seemingly represents a lot of federal revenue over the ...
by AlohaJoe
Fri Jun 15, 2018 9:41 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 152
Views: 11178

Re: Which boglehead rule do you break--and are ok with

I'm a pretty strict boglehead. The one guide I don't do is a written out directive Investment Plan Statement. The only one I would kinda sorta disagree with is "Never try to time the market", just because .... never say never. If P/E got to 90 in the US you can bet I'd be market timing! 8-) (But I ...
by AlohaJoe
Fri Jun 15, 2018 9:17 am
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 152
Views: 11178

Re: Which boglehead rule do you break--and are ok with

I'm a pretty strict boglehead. The one guide I don't do is a written out directive Investment Plan Statement. There's no Boglehead rule saying you have to have a written out IPS. There aren't really any Boglehead rules. The closest things are the Bogleheads principles: https://www.bogleheads.org/wi...
by AlohaJoe
Fri Jun 15, 2018 5:14 am
Forum: Investing - Theory, News & General
Topic: Schwab's Securities Lending Fully Paid (SLFP) program
Replies: 15
Views: 968

Re: Schwab's Securities Lending Fully Paid (SLFP) program

Schwab is offering a monthly income opportunity through their Securities Lending Fully Paid (SLFP) program. What are the risks? The primary risk is that you lend out something and it declares a dividend before it is returned. You still get the money -- it is part of the contract -- but you receive ...
by AlohaJoe
Thu Jun 14, 2018 11:18 am
Forum: Personal Finance (Not Investing)
Topic: best way to receive large sum of money from another country
Replies: 34
Views: 2336

Re: best way to receive large sum of money from another country

How would they buy Vanguard funds? At their brokerage?
by AlohaJoe
Thu Jun 14, 2018 5:40 am
Forum: Personal Consumer Issues
Topic: Living Abroad - Who's done it?
Replies: 52
Views: 4712

Re: Living Abroad - Who's done it?

The US State Department estimates there are 9 million Americans living abroad. By population, that is bigger than 39 states. It is like the entire population of New Jersey. And that's just the ones currently living abroad. I expect there's a pretty large number who lived abroad at one point and then...
by AlohaJoe
Thu Jun 14, 2018 1:04 am
Forum: Investing - Theory, News & General
Topic: Rate hikes vs - Muni, Corp, Total Bond funds
Replies: 14
Views: 1780

Re: Rate hikes vs - Muni, Corp, Total Bond funds

How did all the past rate hikes over the past 3+ years affect those? The Fed has been raising rates since February 2015. It is pretty easy to check how they've done over the past 3 years.
by AlohaJoe
Thu Jun 14, 2018 12:54 am
Forum: Investing - Help with Personal Investments
Topic: Reconciling Buy-and-Hold philosophy with AA/TLH
Replies: 17
Views: 1296

Re: Reconciling Buy-and-Hold philosophy with AA/TLH

One of the recurrent themes i found in reading the investment styles of respected investment gurus, is buying a good investment not with the intention of selling but to hold for life . That's a recurring theme? To hold it for life? I can't think of a single investment guru who has actually done tha...
by AlohaJoe
Wed Jun 13, 2018 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: best way to receive large sum of money from another country
Replies: 34
Views: 2336

Re: best way to receive large sum of money from another country

Don't forget Form 8938 when you file taxes, as well.
by AlohaJoe
Wed Jun 13, 2018 10:52 pm
Forum: Investing - Help with Personal Investments
Topic: Role of Annuity For Savers Who have 20+ years until Retirement
Replies: 32
Views: 2268

Re: Role of Annuity For Savers Who have 20+ years until Retirement

Just last week, a co-worker talked about a Met Life annuity that he was considering. He cited an 8% guarantee for 6 years and no surrender charge at that point. While I was sure Met Life was not giving guaranteed money away, I did wonder where the catch was that this relatively savvy man surely mus...
by AlohaJoe
Wed Jun 13, 2018 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Role of Annuity For Savers Who have 20+ years until Retirement
Replies: 32
Views: 2268

Re: Role of Annuity For Savers Who have 20+ years until Retirement

Did the insurance agent tell you how much money he will make if you buy that annuity from him? Very few people on this forum are in favor of fixed index annuities. (That doesn't mean no one is; there are a few who use them but they generally don't speak up because of the general anti-annuity feeling...
by AlohaJoe
Wed Jun 13, 2018 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: best way to receive large sum of money from another country
Replies: 34
Views: 2336

Re: best way to receive large sum of money from another country

The reason I want to hold CDN dollars is in case I move back to Canada for several years . The other reason would be to wait for a better exchange rate . Holding CDN in case you move back is not a good decision. If you decide to move back to Canada it is trivial to convert CDN at that point; it doe...
by AlohaJoe
Wed Jun 13, 2018 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: best way to receive large sum of money from another country
Replies: 34
Views: 2336

Re: best way to receive large sum of money from another country

If you decide to open/maintain an account in a foreign financial institution, especially with a balance of over $100K, the ongoing annual reporting requirements need to considered. It can be done. But it is not nothing. You would be treated no different than someone with a Cayman islands bank accou...
by AlohaJoe
Wed Jun 13, 2018 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Normal equity offer in startup for early employee
Replies: 12
Views: 931

Re: Normal equity offer in startup for early employee

A hypothetical example that I'm wondering about is the following: if an engineer joins a risky startup with one founder and, after a low-salary trial period, is offered 1% in a company currently valued at $1 million, but with large potential value, should they take it, or negotiate higher, or leave...
by AlohaJoe
Wed Jun 13, 2018 8:41 am
Forum: Investing - Theory, News & General
Topic: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed
Replies: 27
Views: 2436

Re: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed

I have something similar but not quite as strict. But forcing yourself to wait several months between bright idea and actually acting on it has a lot of merit.
by AlohaJoe
Wed Jun 13, 2018 7:56 am
Forum: Personal Finance (Not Investing)
Topic: FIRE to Sweden from Switzerland on 1M euro?
Replies: 16
Views: 1277

Re: FIRE to Sweden from Switzerland on 1M euro?

The usual things: taxes, housing, healthcare (discretionary in addition to the usual things), university for children, travel plans, new hobbies, what you're retiring to , house maintenance, property taxes, vehicle replacement, what your Plan B might be if equity returns are especially poor for an ...
by AlohaJoe
Wed Jun 13, 2018 2:47 am
Forum: Personal Finance (Not Investing)
Topic: Are you including SS in your planning model? Are the benefits really that high?
Replies: 148
Views: 11151

Re: Are you including SS in your planning model? Are the benefits really that high?

SS has a higher replacement factor for lower income workers. The more you earn, the smaller portion of your wages are replaced by SS. What?! I put in 6.2% of my income and get 90% out!? How could SS possibly stay solvent? You're not putting in 6.2% of your income. You're putting in 12.4% of your in...