Search found 2306 matches

by Tamahome
Thu Jan 25, 2024 4:46 pm
Forum: US Chapters
Topic: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂
Replies: 429
Views: 41951

Re: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂

Happy Birthday, and thank you for all you have done to help people secure a good future!
by Tamahome
Mon Jun 12, 2023 5:48 pm
Forum: Investing - Theory, News & General
Topic: How much to have in your 401K by a given age...
Replies: 74
Views: 11709

Re: How much to have in your 401K by a given age...

TomatoTomahto wrote: Sun Jun 11, 2023 6:51 am
stocknoob4111 wrote: Fri Jun 09, 2023 9:29 pm These types of rules of thumb are silly... It depends on your expenses not your income. For example I live on 15% of my current gross income.
My favorite example of the silliness is the “rule” that you should have x times your salary in savings, which leads to the preposterous statement: “we were on track, but we got a raise this year, so now we’re behind again.”
I suppose that does apply with income creep, however. In the words of the Kingston Trio: "And I don't give a d@mm about a Greenback a-dollar
Spend it fast as I can"
by Tamahome
Mon Jun 12, 2023 5:45 pm
Forum: Investing - Theory, News & General
Topic: 100/0, 90/10, 80/20…. Does it really matter?
Replies: 66
Views: 14273

Re: 100/0, 90/10, 80/20…. Does it really matter?

I’m curious about asset allocation models when dealing with a high % of stock to bonds, which I think anything above a 80-20 split of stock to bonds would be considered. Does it really have any meaningful impact on the long term portfolio return? Of course, investor behavior is the most critical factor and thus are 10-20% bond holding really just to temper investors tendency to sell stocks at the worst possible time? Reasons to have a small allocation of bonds: 1) "Dry powder" - funds with which to capture profit in down markets by rebalancing. Arguably a method of timing the market. 2) "SWAN" - Sleep Well At Night - enough in bonds to allow one to sleep well at night in order to stay the course. Feeling as though the w...
by Tamahome
Mon Jun 12, 2023 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: "Should couples combine finances or keep personal accounts?"
Replies: 236
Views: 25934

Re: "Should couples combine finances or keep personal accounts?"

If one side spends all the money the other is trying to save: separate. If they can communicate and it is a first marriage: together for easier transfer upon death. If they are on a second marriage (think Brady bunch), automatic transfer would transfer all of the assets to one side, leaving the children of the other without remedy. Yes, I know that they can use a will, but what happens when the surviving spouse creates a new will? Yes, yes, you absolutely trust your significant other and they are the exception and they are special and you are special. I make a lot of money in disputes where special, trusted people don't follow the joint intent (even after decades). QTIP trusts are wonderful things. (When one dies, it becomes irrevocable, so...
by Tamahome
Mon Jun 12, 2023 4:41 pm
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 4525
Views: 617502

Re: What frugal thing did you do today?

I laughed when I saw this threat. I wore a suit that I have owned for almost two decades. Somehow, my movement caused a small, one-inch slit on a seam that opened up. Perhaps I am being punished for my frugality? If this suit only lasts another 9 mos, it will be 20 years old!
by Tamahome
Mon Jun 12, 2023 4:36 pm
Forum: Investing - Theory, News & General
Topic: Guidelines for % of bonds in Munis?
Replies: 61
Views: 7372

Re: Guidelines for % of bonds in Munis?

Be sure to look at the quality of bonds in the fund. Some funds aim for riskier bonds to squeeze more profit, but they have more default risk. California has some riskier bonds (one long-term Boglehead who is an advisor has them on a do-not-invest list). If you do choose muni bonds, make sure to look at the quality of the fund in comparison to others, as this is a hidden risk of this asset class.
by Tamahome
Mon Jun 12, 2023 4:30 pm
Forum: Personal Consumer Issues
Topic: Watches for $1K
Replies: 43
Views: 5562

Re: Watches for $1K

White Coat Investor wrote: Mon Jun 12, 2023 1:07 pm $1K. Ha ha. Don't people know Bogleheads only buy $5K watches?

viewtopic.php?t=27707
You beat me to it!

OP: Does the father in question WANT a $1,000 watch? I dated a girl that bought me a $300 watch in the late 90's. It still sits in the nice case in my closet. Had she consulted me, I would have told her to save her money. Had she asked me to choose a watch, I would have chosen differently.

This is something personal that the individual might enjoy selecting for themselves as a part of the gift.
by Tamahome
Mon Jun 12, 2023 4:25 pm
Forum: Investing - Theory, News & General
Topic: How much to have in your 401K by a given age...
Replies: 74
Views: 11709

Re: How much to have in your 401K by a given age...

Kaizen Soze wrote: Mon Jun 12, 2023 3:27 pm
Tamahome wrote: Mon Jun 12, 2023 2:35 pm Ultimately, a guide I saw here once said that you need to figure out what your annual expenses will be (inlcuding emergencies). Accumulate enough that 4% of your total savings will pay for it if retiring at an average age. 5% if retiring a decade early.
3% if retiring early, not 5%.
Or save 25 times expenses (4%) for normal retirement and 33 times expenses for early retirement (3%).
Haha. I have been away from the site at least half a decade. I am glad to know that sloppy work is still quickly corrected. Yes. 3%. Thank you for correcting my brain lapse!
by Tamahome
Mon Jun 12, 2023 4:23 pm
Forum: Investing - Theory, News & General
Topic: 100/0, 90/10, 80/20…. Does it really matter?
Replies: 66
Views: 14273

Re: 100/0, 90/10, 80/20…. Does it really matter?

I’m curious about asset allocation models when dealing with a high % of stock to bonds, which I think anything above a 80-20 split of stock to bonds would be considered. Does it really have any meaningful impact on the long term portfolio return? Of course, investor behavior is the most critical factor and thus are 10-20% bond holding really just to temper investors tendency to sell stocks at the worst possible time? Reasons to have a small allocation of bonds: 1) "Dry powder" - funds with which to capture profit in down markets by rebalancing. Arguably a method of timing the market. 2) "SWAN" - Sleep Well At Night - enough in bonds to allow one to sleep well at night in order to stay the course. Feeling as though the w...
by Tamahome
Mon Jun 12, 2023 4:18 pm
Forum: Personal Consumer Issues
Topic: A quick Kyoto visit
Replies: 20
Views: 1571

Re: A quick Kyoto visit

vveat wrote: Sun Jun 11, 2023 10:46 am
2. With the limited time in Kyoto I am planning to just stroll around...

Thanks,
vveat
We went to Kinkakuji (Golden Temple) at sunset and it was amazing.

We went to Gion Corner/ Gion Square, where we were able to see a kabuki performance, meiko geisha dance, flower arranging, and a musical performance of instruments no longer really in use. Website here: http://www.kyoto-gioncorner.com/global/en.html

The performance that we saw was a life experience that ranks among the absolute best for both myself and for my wife.
by Tamahome
Mon Jun 12, 2023 4:03 pm
Forum: Personal Consumer Issues
Topic: A quick Kyoto visit
Replies: 20
Views: 1571

Re: A quick Kyoto visit

stan1 wrote: Sun Jun 11, 2023 11:57 am
vveat wrote: Sun Jun 11, 2023 10:46 am staying in a small ryokan in Gion
Just curious, I often hear of people staying in a ryokan for one night. Is this because of cost or is there another reason why people stay in them for one night then stay in hotels the other nights? In OP's case this is a one night trip it sounds like which seems very fast for the trip agenda.
Foreigners don't like sleeping on the floor. They want a bed. A ryokan is traditional, so many don't stay there long. We actually stayed in an onsen ryoken in the Obuse Prefecture for 4 nights and loved it. There is no reason not to stay longer unless the sleeping arrangement is too novel or uncomfortable.
by Tamahome
Mon Jun 12, 2023 2:58 pm
Forum: Investing - Theory, News & General
Topic: 100/0, 90/10, 80/20…. Does it really matter?
Replies: 66
Views: 14273

Re: 100/0, 90/10, 80/20…. Does it really matter?

I’m curious about asset allocation models when dealing with a high % of stock to bonds, which I think anything above a 80-20 split of stock to bonds would be considered. Does it really have any meaningful impact on the long term portfolio return? Of course, investor behavior is the most critical factor and thus are 10-20% bond holding really just to temper investors tendency to sell stocks at the worst possible time? Reasons to have a small allocation of bonds: 1) "Dry powder" - funds with which to capture profit in down markets by rebalancing. Arguably a method of timing the market. 2) "SWAN" - Sleep Well At Night - enough in bonds to allow one to sleep well at night in order to stay the course. Feeling as though the w...
by Tamahome
Mon Jun 12, 2023 2:51 pm
Forum: Investing - Theory, News & General
Topic: Is adding REITs not hypocrisy?
Replies: 94
Views: 10629

Re: Is adding REITs not hypocrisy?

1) Bogleheads typically pursue low cost funds, but if you can get tilt with low cost, that is within the philosophy. Some of us tilt small/value (albeit only a very small tilt for me). 2) Technically tilting to REITs is not tilting as much as correcting. The REGULATED real estate market is incorporated in a total market fund, but Real estate as a whole is not truly captured by the market, so a tilt can benefit someone by either 1) helping them capture the market or 2) giving an asset that acts differently from stocks/bonds. In no way is adding REIT funds required. It may not be best for you. It is also not hypocrisy, so long as one uses low-cost funds (and is aware of tax implications and placement in the appropriate location for tax purpos...
by Tamahome
Mon Jun 12, 2023 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement plan. Please critique!
Replies: 17
Views: 3496

Re: Early retirement plan. Please critique!

I think your plans are fine and subject to change. You know more about yourself than anybody else, so I don't see any problems with what I perceive to be a "go with the flow" attitude. Good luck and have fun! If livesoft says it looks good, then it must. Over the years, user livesoft has given me a great deal of insight and has had sage advice. (Although my name on this site has changed.) That being said, to protect from extended bear markets, I would not be personally comfortable in the spending phase with less than 10% fixed income. (Coming from someone who is ok with 100% stock in accumulation, that is something.) So my only suggestion would be to glide from your current stock/fixed allocation to 90/10 instead to avoid that ri...
by Tamahome
Mon Jun 12, 2023 2:35 pm
Forum: Investing - Theory, News & General
Topic: How much to have in your 401K by a given age...
Replies: 74
Views: 11709

Re: How much to have in your 401K by a given age...

OP: People on this site really don't like these lists, but I find them useful. Am I completely messing up? Am I on the right path? Ultimately, a guide I saw here once said that you need to figure out what your annual expenses will be (inlcuding emergencies). Accumulate enough that 4% of your total savings will pay for it if retiring at an average age. 5% if retiring a decade early. To retire at 60, have 40% by 40, 80% by 50, and 100% by 60 (to account for down markets, and allow for growth of your money). NOT AT ALL a perfect test, but as an aside comment on a random post, it put some goalposts for me to add. I seem to be behind on getting to that 80%, though.... which is to say: IF these mental exercises encourage you or help you to save, ...
by Tamahome
Mon Jun 12, 2023 2:25 pm
Forum: Personal Investments
Topic: Best books on bond investing?
Replies: 5
Views: 1411

Re: Best books on bond investing?

2nd on Larry Swedroe's "The Only Guide to a Winning Bond Strategy You'll Ever Need."

It is easy to understand, and it gives a great overview of multiple areas of bonds. It dives in just enough that you have a good understanding. About 80% of my knowledge about bonds comes from this single book, with the remaining amount mostly coming from this site.
by Tamahome
Wed Oct 12, 2022 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else purposefully [discount] portfolio [when planning]?
Replies: 40
Views: 3874

Re: Anyone else purposefully downplay portfolio?

Yes. About 10% under the idea that the market may be overvalued at present and I want to make sure I will be ok.
by Tamahome
Wed Oct 12, 2022 8:55 am
Forum: Personal Investments
Topic: Ways To Stay The Course?
Replies: 69
Views: 8710

Re: Ways To Stay The Course?

Every quarter I see my share count go up because of Dividend Reinvesting. What are your ways to stay focused when you see the value of your portfolio down significantly? I buy more. If you are in the distribution phase, this will not work as well, but I find that habits are the best way of staying the course. When I was paying down my second mortgage after finding this site, I put money on the mortgage every week. It may be $100 from my paycheck. One time, it was $1.47 in change (I walked to the bank branch near my office in a metro area to pay it). I wound up paying it off quickly. The habit was more important than the amount. Similarly, now, every week, I buy something. One share of a mid cap fund. One share of an emerging market fund. S...
by Tamahome
Tue Apr 05, 2022 11:56 am
Forum: Personal Consumer Issues
Topic: Once you are FI how do you learn to spend it?
Replies: 230
Views: 21423

Re: Once you are FI how do you learn to spend it?

When people are trying to get out of debt, they have buckets. Use this bucket for your living expenses. Use that bucket for emergency fund. Use the other bucket for your debt.

You need a spending bucket. Budget an amount to spend. Put it in that account. Your penalty for not enjoying it is the ever decreasing value due to inflation. That way, however, you can be comfortable that this is the appropriate allocated amount to spend, and it is ok to spend it. When it builds up, you can get seat warmers, fancy sound systems, and a hat for your car if you want. Or go to dinner. Or buy a VR system as a cost effective (HA!) way to view some of the free VR museums.

Make a bucket.
by Tamahome
Sat Apr 02, 2022 12:10 pm
Forum: Personal Investments
Topic: Stay the Course? I'm ready to Bail on Vanguard
Replies: 111
Views: 19946

Re: Stay the Course? I'm ready to Bail on Vanguard

I split the difference. I have accounts at Schwab, Fidelity, and Vanguard. I use them for different things, as they each have their strengths. Keeping up with 3 accounts is not difficult. Consider having Schwab for purposes that need more interaction and Vanguard for your more set it and forget it activities.
by Tamahome
Sat Apr 02, 2022 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Uninsured Motor Vehicle Insurance
Replies: 36
Views: 3107

Re: Uninsured Motor Vehicle Insurance

"...the law that you Have To carry insurance"? Of course it's the law, but how is that relevant? +1 There is a reason that driving without insurance is a huge revenue source for municipal courts. Areas with more poverty have more uninsured drivers (and the poverty means they don't have other assets to go after). Areas with more undocumented immigrants have more uninsured drivers (due to lack of access to insurance). You don't have to live in these areas to drive through them to work, vacation, etc. Everyone is on the interstate. As an attorney, I cannot stress enough how this protection will help you. I personally do not handle personal injury cases, but I have friends that do. Many of their horror stories involve coming up again...
by Tamahome
Sat Feb 27, 2021 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Looking For A "Rule Of Thumb" For How Much College Can I Afford
Replies: 45
Views: 3386

Re: Looking For A "Rule Of Thumb" For How Much College Can I Afford

I will tell you what is typically done and divorce cases when parents are paying for college. This does not help you determine what you can afford based off of your salary as much as what is commonly done. (I am an attorney that handles hundreds of divorces a year.). Commonly, people agree to pay for the most expensive State School for in-state tuition. That is, their responsibility is going to be only that for in-state tuition at a public university. Additional costs are the responsibility of the student in the way of student loans or working their way through school through labor or scholarship.
by Tamahome
Tue Feb 26, 2019 9:34 am
Forum: Personal Finance (Not Investing)
Topic: On this Forum, is X% of Income Saved Pre-Tax or Post-Tax?
Replies: 95
Views: 8334

Re: On this Forum, is X% of Income Saved Pre-Tax or Post-Tax?

Pre-tax, and most of us do not consider the employer's portion as our own savings. In part because the employer's portion can be smaller or taken back if you do not stay long enough depending on the plan. My wife and I make sure that we save 20% not including employers contributions and not considering things like cashback on credit cards, which we use as gravy for investing The problem is that this may work very well for you but it will not work for some others. Neither is it comparable to other families situations. Right.... One presumes that everyone's family is different. Every Guru that I have seen on this site that has written books that bogleheads read say that the percentage is a percentage of gross income. I then said most do not ...
by Tamahome
Tue Feb 26, 2019 9:22 am
Forum: Investing - Theory, News & General
Topic: Foresight question: did YOU make a killing on NECCO Sweethearts candy?
Replies: 51
Views: 6978

Re: Foresight question: did YOU make a killing on NECCO Sweethearts candy?

I actually did know about the problems, but I did not buy the stock. I bought six rolls of the product for nostalgic purposes. I probably paid too much, paying $20 first six rolls of Necco Wafers. However, it is one of the best purchases that I have made in the way of a Splurge in my life. When does not eat Necco Wafers for just the flavor as amazing as it is. One eats Necco Wafers for the memories.
by Tamahome
Tue Feb 26, 2019 8:56 am
Forum: Personal Finance (Not Investing)
Topic: On this Forum, is X% of Income Saved Pre-Tax or Post-Tax?
Replies: 95
Views: 8334

Re: On this Forum, is X% of Income Saved Pre-Tax or Post-Tax?

Pre-tax, and most of us do not consider the employer's portion as our own savings. In part because the employer's portion can be smaller or taken back if you do not stay long enough depending on the plan. My wife and I make sure that we save 20% not including employers contributions and not considering things like cashback on credit cards, which we use as gravy for investing
by Tamahome
Tue Feb 26, 2019 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage vs Invest - Small Business Owner
Replies: 8
Views: 943

Re: Mortgage vs Invest - Small Business Owner

I am in a very similar situation, but without the pool of cash. As a small business owner with expenses for the business that are around $100,000/month, I understand the made for a pool of cash. You are going to want to consider your options, but even if you do not pay it off I think paying down the mortgage makes a lot more sense then having all of that money in savings and CDs. Figure out what you need in cash flow and toss the rest into the mortgage or save until you reach enough to have what you need in cash in order to pay off the mortgage and have that amount. I would strongly recommend paying every penny that you can into tax-advantaged space while you have it. A high-income earner benefits greatly from using tax advantage space and ...
by Tamahome
Tue Feb 26, 2019 8:16 am
Forum: Personal Finance (Not Investing)
Topic: How long should a bodily injury claim take to settle?
Replies: 62
Views: 4943

Re: How long should a bodily injury claim take to settle?

Get an attorney! You can interview several and choose the one that you like the most. There is nothing wrong with avoiding all of the cheesy TV attorneys, but a Google search should quickly bring up some qualified attorneys in your area. You could also ask an attorney that you have worked with in the past or that you know for a referral to a personal injury attorney.
by Tamahome
Mon Feb 04, 2019 6:02 am
Forum: Personal Consumer Issues
Topic: Tawny Port (Not Vintage Port): Sandeman or Taylor Fladgate?
Replies: 12
Views: 3492

Re: Tawny Port (Not Vintage Port): Sandeman or Taylor Fladgate?

Most of the answers that you got to not answer your original question. If you are choosing simply between those two, I would strongly recommend Sandeman. My father has been drinking it for years, my grandfather drank it, and several people that I trust with that question drink it. While I do drink more expensive bottles of port half of the time, the other half I drink Sandeman. I gave my mother a bottle of Ruby Sandeman for Christmas, as she prefers Ruby port, but I would usually recommend tawny for a gift.
by Tamahome
Fri Nov 30, 2018 3:56 pm
Forum: Personal Investments
Topic: My mutual funds are declining, please help!
Replies: 54
Views: 6436

Re: My mutual funds are declining, please help!

Buy Low, Sell High. That means, when your funds drop, find a way to put more money in. Keep pumping money into the funds that are down.
by Tamahome
Wed Nov 28, 2018 10:13 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 163452

Re: How much international stock? A suggestion.

Was there not a more recent Vanguard study saying 30-40%? I wound up picking 40% based on something I read from Vanguard saying 30-40 and another study stating 40-50 was the right amount. I set mine at 40%, which also acts as enough to hedge any Japan situation (however unlikely) in the US. Of course, having set the amount, I am going to stay the course. Vanguard Target Date and LifeStrategy funds (one-fund solutions with allocations set and managed professionally) and the baseline portfolio for their personal adviser services are all at 40% ex-US for equities. So regardless of what might find in some white paper, Vanguard is recommending 40% when it comes to actual customers money placed in funds designed to utilize their professional ass...
by Tamahome
Mon Nov 26, 2018 6:28 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 163452

Re: How much international stock? A suggestion.

Was there not a more recent Vanguard study saying 30-40%? I wound up picking 40% based on something I read from Vanguard saying 30-40 and another study stating 40-50 was the right amount. I set mine at 40%, which also acts as enough to hedge any Japan situation (however unlikely) in the US. Of course, having set the amount, I am going to stay the course. Vanguard Target Date and LifeStrategy funds (one-fund solutions with allocations set and managed professionally) and the baseline portfolio for their personal adviser services are all at 40% ex-US for equities. So regardless of what might find in some white paper, Vanguard is recommending 40% when it comes to actual customers money placed in funds designed to utilize their professional ass...
by Tamahome
Mon Nov 26, 2018 6:23 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 163452

Re: How much international stock? A suggestion.

Was there not a more recent Vanguard study saying 30-40%? I wound up picking 40% based on something I read from Vanguard saying 30-40 and another study stating 40-50 was the right amount. I set mine at 40%, which also acts as enough to hedge any Japan situation (however unlikely) in the US. Of course, having set the amount, I am going to stay the course. Vanguard Target Date and LifeStrategy funds (one-fund solutions with allocations set and managed professionally) and the baseline portfolio for their personal adviser services are all at 40% ex-US for equities. So regardless of what might find in some white paper, Vanguard is recommending 40% when it comes to actual customers money placed in funds designed to utilize their professional ass...
by Tamahome
Wed Nov 21, 2018 7:31 pm
Forum: Investing - Theory, News & General
Topic: Bond prices vs yields
Replies: 17
Views: 2171

Re: Bond prices vs yields

A bond fund is just a collection of individual bonds. Simple logic tells us that If a single bond isn't overly risky, a collection of "not overly risky bonds" can't be more risky than each single bond it holds. This is patently false. A bond held to duration and a fund of bonds which are not held to duration but regularly purchased and sold must be treated differently by the investor. By the very fact that bond funds buy and sell all the time, they are changing the way a regular investor would look at bonds and locking in certain losses. As the point of this post is to question what will happen with bonds, we are going to muddy the waters if we somehow pretend that bond funds and individually held bonds which are held to duration...
by Tamahome
Sun Nov 11, 2018 10:07 am
Forum: Investing - Theory, News & General
Topic: Bond prices vs yields
Replies: 17
Views: 2171

Re: Bond prices vs yields

A bond fund is just a collection of individual bonds. Simple logic tells us that If a single bond isn't overly risky, a collection of "not overly risky bonds" can't be more risky than each single bond it holds. This is patently false. A bond held to duration and a fund of bonds which are not held to duration but regularly purchased and sold must be treated differently by the investor. By the very fact that bond funds buy and sell all the time, they are changing the way a regular investor would look at bonds and locking in certain losses. As the point of this post is to question what will happen with bonds, we are going to muddy the waters if we somehow pretend that bond funds and individually held bonds which are held to duration...
by Tamahome
Sun Nov 11, 2018 8:29 am
Forum: Investing - Theory, News & General
Topic: Bond prices vs yields
Replies: 17
Views: 2171

Re: Bond prices vs yields

So the risk of a bond depends on the match between your bond maturity and your consumption (i.e. when you need the money). If you perfectly match your bond maturities with your consumption needs, then you have no additional risk after you've bought the bond. You'll get exactly what you expected to get when you bought the bond regardless of whether interest rates go up or down, and regardless of what your portfolio balance says. I get that this makes sense for individual bonds, but what about bond funds that continually buy and sell bonds to maintain an average maturity of a certain length? Take Total Bond Market Index, for example, with an average effective maturity of 8.6 years . Suppose someone buys this with the intent to start withdraw...
by Tamahome
Thu Nov 01, 2018 8:09 am
Forum: Personal Consumer Issues
Topic: Best neighborhoods in Atlanta
Replies: 46
Views: 5251

Re: Best neighborhoods in Atlanta

If it is not too late, I have two suggestions. I am surprised that no one recommended Vinings, although I guess it is a bit pricier and posher then people on this site might prefer. The other recommendation is OTP ( outside the perimeter), but it is outside the perimeter in the route that has the absolute least traffic apparently. My wife finds it amusing that her commute to Midtown takes the same amount of time as several friends' commutes, even though those friends are taking city streets to get to work and she is taking the interstate. It is less Urban, but Peachtree City is certainly a walk / bike / golf cart everywhere community. There are Miles and Miles of golf cart / multi-use paths. We do not have a golf cart, but I have a very fan...
by Tamahome
Fri Oct 12, 2018 12:47 am
Forum: Investing - Theory, News & General
Topic: Why does Vanguard reccomend 60:40 US:International ratio?
Replies: 52
Views: 13576

Re: Why does Vanguard reccomend 60:40 US:International ratio?

columbia wrote: Sun Sep 30, 2018 9:37 pm As I recall, they point to 30% being the “optimal” allocation...yet exceed it. I’ve not seen a rational explanation for the increase in the Life Strategy and Target Date funds, given that.
As someone pointed out, the study says between 30 and 40% is optimal, according to Vanguard. I imagine the 40% number allows for more diversification. As I read a DFA study that said 40 to 50% was optimal, and as 40% was included in both of these studies, I chose and have stuck with a 60 40 split. I am comfortable with the results.
by Tamahome
Thu Oct 11, 2018 11:52 pm
Forum: Personal Investments
Topic: Bonds for an aggressive investor
Replies: 25
Views: 3278

Re: Bonds for an aggressive investor

Mini bogleheads do use bonds to rebalance into stocks during economic downturns. However, a good number also do not. Rebalancing will increase your portfolio balance 51% of the time and reduce it 49% of the time according to information provided by Vanguard and Jack Bogle. There is something to be said for General market timing where you rebalance not because you are out of alignment but because you are specifically taking advantage of Market swings when you know them to be significant such as a 25% drop in the market, which is something that livesoft will talk about on this site. If you are interested in a prudent way of doing that I would recommend looking at that individuals' posts. Now to the question at hand as to whether or not a youn...
by Tamahome
Thu Oct 11, 2018 11:06 pm
Forum: Personal Investments
Topic: American Funds by Capital Group
Replies: 22
Views: 2664

Re: American Funds by Capital Group

I have been very happy with that company and with their funds.
by Tamahome
Thu Oct 11, 2018 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: Sellers remorse - selling business
Replies: 44
Views: 6054

Re: Sellers remorse - selling business

Sell! Some of the most successful business owners that I have known have built businesses to the point of selling them, cashed out, and then started new businesses to again sell. Lock in those fabulous games that you have created with your own sweat! One thing that you could do is to negotiate with your wife a low six-figure portion of the eight-figure settlement as seed money for your next venture. I understand the bug. I sold my first law firm for a profit and was supposed to take a break for about a year. Unfortunately, I went crazy with in a week. 2 weeks later, Law Firm number two was underway. The decision to sell a firm one was nonetheless the correct decision. You need to differentiate between whether or not it is the right decision...
by Tamahome
Thu Oct 11, 2018 10:56 pm
Forum: Investing - Theory, News & General
Topic: Is your risk tolerance to dollars or percentages?
Replies: 17
Views: 1668

Re: Is your risk tolerance to dollars or percentages?

Neither. I have been through 2 crashes and several downturns, but I have yet to experience concern or unhappiness at the downturn. I simply buy more, even though I am 100% stocks in my Investment Portfolio. Apparently my tolerance to risk is very high. Of course, we use a reverse Bond strategy of paying down the mortgage as the bond allocation. Upon payoff of the mortgage we will pay the full amount of the mortgage into bond funds in addition to our regular investment to recapture that money. As this strategy requires that one give up both liquidity and the ability to rebalance, one could say that my risk tolerance is even higher. That is not necessarily a good thing. Nonetheless, at the point of recapture, we will be saving a percentage of...
by Tamahome
Thu Oct 11, 2018 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: A strategy to pay off home at retirement?
Replies: 57
Views: 5547

Re: A strategy to pay off home at retirement?

I am of the opinion that if you have a mortgage, you should not retire. Have you considered working just a bit longer and only investing to get any match, but putting all extra money to pay down the mortgage? You would have the added benefit from not drawing down your assets for a few years and adding a tremendous amount of long term security.
by Tamahome
Sat Oct 06, 2018 9:41 am
Forum: Investing - Theory, News & General
Topic: Age in Bonds - Still Recommended?
Replies: 152
Views: 15536

Re: Age in Bonds - Still Recommended?

I guess I'm the only one on this forum who doesn't care about AA. I keep 10 years worth of annual expenses in bonds, CDs, money market, and savings, and the rest is in stock regardless of the %. TravelforFun This is a classic example of "asking the right question first." Everyone analyzes the case of a portfolio as a fraction of stocks and bonds. They forget to first ask if viewing portfolio elements as fraction is even a good idea in general. Here is a good example of someone who came up with a completely different allocation question, and settled on 10 years of fixed income, not a fraction. We could all be arguing if 10 years is appropriate instead, and never think of fractions. Bingo... we have a winner! There are so many disp...
by Tamahome
Sat Oct 06, 2018 9:07 am
Forum: Personal Investments
Topic: Small cap tilt
Replies: 87
Views: 11195

Re: Small cap tilt

...to wait the 30 to 40 years it can take for the premium to show up. This is among the most persistent misconceptions about factor investing I encounter on this forum. If it is an incorrect assessment, please explain how it is incorrect instead of just stating your belief. You may be correct, but we cannot know it unless you share. That's a bit of a lopsided standard, since the original claim was made without any supporting evidence or logic. Nonetheless, let's look at it. One way to see whether it can take "30 to 40 years it can take for the premium to show up" is to see whether that has ever happened. Since 1930, small cap stocks have never underperformed large cap stocks for more than four years in a row. https://i.imgur.com/...
by Tamahome
Sun Sep 23, 2018 2:28 pm
Forum: Personal Investments
Topic: Small cap tilt
Replies: 87
Views: 11195

Re: Small cap tilt

vineviz wrote: Sat Sep 22, 2018 9:43 am
Dulocracy wrote: Sat Sep 22, 2018 9:26 am
...to wait the 30 to 40 years it can take for the premium to show up.
This is among the most persistent misconceptions about factor investing I encounter on this forum.
If it is an incorrect assessment, please explain how it is incorrect instead of just stating your belief. You may be correct, but we cannot know it unless you share.
by Tamahome
Sat Sep 22, 2018 9:26 am
Forum: Personal Investments
Topic: Small cap tilt
Replies: 87
Views: 11195

Re: Small cap tilt

As for me, I'm not sure I completely buy the evidence that there is a small cap "premium" Don't do it! You answered your own question. When I first joined this site there were so many small value investors who would talk about it on a regular basis; however, now they are much fewer in number. Many gave up after a decade of lower than average returns, because they did not have the patience to wait the 30 to 40 years it can take for the premium to show up. The premium may never show up in my lifetime, and I recognize that. Nonetheless, my investments are tilted about 20% total towards small and value. I do not know how they are faring right now because I quite honestly have stopped comparing to the market as a whole. When the premi...
by Tamahome
Sat Sep 22, 2018 8:44 am
Forum: Investing - Theory, News & General
Topic: Learning How to Value Invest
Replies: 15
Views: 1924

Re: Learning How to Value Invest

This may come a bit late, however I believe that the information that you asked for was not wholly provided. A previous poster talked about "the boglehead way," but outside of using low-cost funds in order to prevent an erosion of one's assets, there is not a set boglehead way. There are those on this site who follow the three fund method, and those who tilt to value and or small cap funds. You will find that both of these groups can be cult-like in their devotion to the one true way. I personally tilt towards value and towards small-cap Investments. 90% of all that I know about that style of investing came from two books. Larry Swedroe's "The only guide to a winning investment strategy You'll Ever Need" and Rick Ferri's...
by Tamahome
Sat Sep 15, 2018 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Paying down mortgage vs investing
Replies: 30
Views: 3851

Re: Paying down mortgage vs investing

I would know that if you do not put down 20% on a mortgage you will likely wind up with PMI or private mortgage insurance, which will mean greatly increased cost to pay for insurance that you will not default on the mortgage. Because of that if you have a 20% down payment, you will save a lot of hidden fees by paying it. In your situation you may want to consider getting the 15 year mortgage instead of the 30-year mortgage. At those rates you are kind of on the cusp of whether or not it is worth it to pay down the mortgage. The 15-year mortgage will give you a lower interest rate and you will pay it off much more quickly. That in and of itself has a built-in automatic early payment on a monthly basis. You can then ignore making extra paymen...
by Tamahome
Sat Sep 01, 2018 9:48 am
Forum: Personal Investments
Topic: Choosing 401k funds
Replies: 6
Views: 716

Re: Choosing 401k funds

This may be a little late, but it is important enough that I thought it worth mentioning. I would add the Russell 2000 Index both for diversification as well as to take part in the returns of the total Market, as smaller cap funds do tend to add a boost to savings. Since the market fluctuates, but tends to be around 70% large cap and 30% mid and small-cap, I would change 15% of that 47% US Stock over to the Russell fund.