Search found 73 matches

by make_a_better_world
Fri Mar 27, 2020 11:09 pm
Forum: Investing - Theory, News & General
Topic: Coronavirus Question of the Day (possibly a dumb one)
Replies: 14
Views: 1835

Re: Coronavirus Question of the Day (possibly a dumb one)

Predicting the future is always unreliable but... I do not think there is any way this is going to be a quick V-shaped recovery. Several companies have already started layoffs of full time positions. I do not see how a stimulus package, which is really just emergency relief, is going to recover all ...
by make_a_better_world
Sun Feb 16, 2020 8:53 am
Forum: Investing - Theory, News & General
Topic: Thoughts on Charlie Munger's recent comments?
Replies: 84
Views: 10585

Re: Thoughts on Charlie Munger's recent comments?

He's also said that he believes the USA is "at or near the apex of a great civilization." "...In 50-100 years, if we're a poor third to some countries in Asia, I wouldn't be surprised. If I had to bet, the part of the world that will do best will be Asia." Munger is extremely intelligent and I respe...
by make_a_better_world
Sat Jan 04, 2020 10:23 am
Forum: Personal Investments
Topic: Lump Sum Advice
Replies: 24
Views: 1508

Re: Lump Sum Advice

You could look at this situation the same as having a windfall, which there are many discussions on if you're interested. I've read on this forum people mention that lump sum statistically beats dollar cost averaging 2/3 of the time. I read the study this came from and I can't say it's this simple. ...
by make_a_better_world
Wed Jan 01, 2020 9:46 pm
Forum: Investing - Theory, News & General
Topic: Before I found Bogleheads.....
Replies: 36
Views: 3523

Re: Before I found Bogleheads.....

In 2010 I was so clueless that when I changed jobs from residency to fellowship I cashed out my entire 401k for a lump sum cash distribution and paid full federal taxes, California state taxes and a 10% penalty. I think I got about half of it. I was 30 years old and completely broke. In 2012 I start...
by make_a_better_world
Wed Jan 01, 2020 5:10 pm
Forum: Investing - Theory, News & General
Topic: Shiller: Homeownership is a bad investment
Replies: 480
Views: 65445

Re: Shiller: Homeownership is a bad investment

I find it funny that the post started in 2008 but since it's here now: One of the primary reasons I spend time learning to invest is financial security. Might as well simplify this to just security. I do not like the idea that a landlord on a whim can choose not to renew a lease and my family and I ...
by make_a_better_world
Tue Dec 31, 2019 3:07 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Website not Working Right
Replies: 54
Views: 5363

Re: Vanguard Website not Working Right

I found a temporary work around. If you are using a browser where you've logged into Vanguard you get these errors. If you use a different browser (ex. Safari vs Chrome) or the incognito window the Vanguard website will load correctly. So you can do the research you need on one browser and the trade...
by make_a_better_world
Mon Dec 23, 2019 8:39 pm
Forum: Investing - Theory, News & General
Topic: Indexing Doomsday?
Replies: 67
Views: 6931

Re: Indexing Doomsday?

That's the key point. If Apple stock goes down by 2%, the value of the stock held by the funds goes down by, of course, 2%. :oops: im a idiot. That's the detail I was getting wrong. Thanks for the explanation. You could say that as the world puts more money into the market, market prices go up in a...
by make_a_better_world
Sun Dec 22, 2019 8:53 pm
Forum: Investing - Theory, News & General
Topic: Indexing Doomsday?
Replies: 67
Views: 6931

Re: Indexing Doomsday?

This may help solve the issue as to whether a Vanguard Index fund buys more actual stocks when money is poured in. VTSAX: https://investor.vanguard.com/mutual-funds/profile/portfolio/vtsax To track its target index as closely as possible, the fund attempts to remain fully invested in stocks. To help...
by make_a_better_world
Sun Dec 22, 2019 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question-S Corp withdrawals
Replies: 5
Views: 379

Re: Tax question-S Corp withdrawals

For an S-Corp you pay income tax on all profits every year. You pay FICA (medicare/Social Security) on the salary to yourself portion. This is why the IRS wants your salary to be reasonable. You still pay federal tax on all profit that is not your salary (but not FICA). Whatever money is left over a...
by make_a_better_world
Sun Nov 17, 2019 10:56 pm
Forum: Personal Investments
Topic: How to sell my Aunts shopping plaza?
Replies: 29
Views: 3918

Re: How to sell my Aunts shopping plaza?

You can list it yourself on Loopnet, craigslist and put a for sale sign on the property.

I'd try that for about 3 months if you want to keep costs low. If you can't seem to generate any interest then hire a real estate agent.
by make_a_better_world
Wed Nov 13, 2019 3:07 pm
Forum: Personal Investments
Topic: Where to park $ for about 1.5 yrs
Replies: 10
Views: 1178

Re: Where to park $ for about 1.5 yrs

I use the Vanguard Federal Money Market Fund. It currently pays 1.9% interest annually divided into monthly payments. There are no limits on amounts or penalties for withdrawing when you want. And all you have to do is put the money into it, which is a default with Vanguard. If the money is in there...
by make_a_better_world
Mon Nov 04, 2019 9:03 pm
Forum: Personal Investments
Topic: What's the Best Investment in Your Opinion?
Replies: 23
Views: 2582

Re: What's the Best Investment in Your Opinion?

If you are 40, not currently working, and have 80k total- the best investment would be developing yourself. Your ability to earn would be your greatest asset in such a scenario. With all the available resources, you likely would only need a fraction of the 80k to do it.
by make_a_better_world
Sat Oct 19, 2019 11:27 pm
Forum: Personal Investments
Topic: Getting started
Replies: 12
Views: 704

Re: Getting started

I'm also a physician saving close to what you are per year. My 2 cents: Fire the advisors. Keeping costs low pays off big time in the long run. Keep it simple - 3 fund portfolio is just fine - personally I don't have any bonds but this is a question about your risk tolerance - set automatic investme...
by make_a_better_world
Thu Sep 26, 2019 10:49 pm
Forum: Personal Investments
Topic: Mother laid off without retirement savings
Replies: 24
Views: 5870

Re: Mother laid off without retirement savings

I'm sure we each have different relationships with our mothers. With mine, it would be tough for me to know if she genuinely isn't worried or just doesn't want me to worry. I can only tell you what I would do: Make sure she has a house that is paid off. You can help her pay it. If she works, help he...
by make_a_better_world
Tue Sep 24, 2019 9:01 pm
Forum: Personal Investments
Topic: Maxed out tax-advantaged space, next steps
Replies: 14
Views: 1638

Re: Maxed out tax-advantaged space, next steps

First off you're doing an amazing job, especially considering your age. What I would do: 1. 32% is already high to me. I'd do the traditional 401k. 2. I would eliminate both debts. Your February bonus is great. I would not refinance anything but just get rid of it. 3. After #2, before locking too mu...
by make_a_better_world
Sun Sep 22, 2019 3:42 pm
Forum: Personal Investments
Topic: Anyone here has more 200k in a single stock ?
Replies: 58
Views: 9488

Re: Anyone here has more 200k in a single stock ?

The realistic options I can think of to avoid the tax upon sale are: Sell portion of MSFT any time you can capture capital loss elsewhere to have them offset each other. Give $15k worth (calculated based on the original basis, not current value) to someone with low income. If you know someone with i...
by make_a_better_world
Sat Sep 21, 2019 6:47 pm
Forum: Personal Investments
Topic: Investing in an apt complex through a real estate equity firm
Replies: 40
Views: 2738

Re: Investing in an apt complex through a real estate equity firm

My 2 cents: I invest in commercial real estate under the mentorship of some family members that do it for a living. On my 3rd property now. Some of the best investments I've ever made and they are the big part of my retirement plan. None of us give money over to someone else and sacrifice control. ...
by make_a_better_world
Fri Sep 20, 2019 3:54 pm
Forum: Personal Investments
Topic: Investing in an apt complex through a real estate equity firm
Replies: 40
Views: 2738

Re: Investing in an apt complex through a real estate equity firm

My 2 cents: I invest in commercial real estate under the mentorship of some family members that do it for a living. On my 3rd property now. Some of the best investments I've ever made and they are the big part of my retirement plan. None of us give money over to someone else and sacrifice control. A...
by make_a_better_world
Sun Sep 15, 2019 4:25 pm
Forum: Personal Investments
Topic: Can’t pull the trigger
Replies: 15
Views: 2868

Re: Can’t pull the trigger

You could look at this situation the same as having a windfall, which there are many discussions on if you're interested. Many on this forum mention that lump sum statistically beats DCA 2/3 of the time. I linked the actual study. https://personal.vanguard.com/pdf/ISGDCA.pdf What is often not mentio...
by make_a_better_world
Sun Sep 08, 2019 3:06 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 5398
Views: 485633

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Would you implement this strategy with 100% of the capital? Would you trust your retirement savings using this strategy? Thanks Privatefarmer took it a step further and is holding it with additional leverage (1.5x I believe). I personally find it insane, but impressive grit. im using a combo of LET...
by make_a_better_world
Tue Sep 03, 2019 7:19 pm
Forum: Investing - Theory, News & General
Topic: Forbes: The Bubble That Is The S&P 500 Index
Replies: 38
Views: 7528

Re: Forbes: The Bubble That Is The S&P 500 Index

If prices go up due to more money moving into indexing, then all companies see appreciation and all P/E ratios increase. The fact that it is cap weighted necessarily means that no particular company will get a disproportionate increase in P/E relative to the previous P/E discrepancies with other com...
by make_a_better_world
Thu Aug 15, 2019 9:01 pm
Forum: Investing - Theory, News & General
Topic: Confused, bummed, and concerned
Replies: 74
Views: 11144

Re: Confused, bummed, and concerned

This is how I think of it, which is simplistic compared to many of the very intelligent people on this board: Man began with a pointed stick and an 18-hour-per-day job chasing lizards. One hundred years ago many cities in my home state of Texas were mostly fields. Today there are incredible skyscrap...
by make_a_better_world
Tue Aug 13, 2019 6:38 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 5398
Views: 485633

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

I'm participating as of July 22 with 3.7% of my net worth. Part of it is in taxable and part in Roth. I'm using the Roth to balance the entire thing as if it were one account. I made an Excel sheet to calculate what I need to buy/sell to rebalance. Hopefully the accounts will not become too skewed o...
by make_a_better_world
Mon Aug 12, 2019 11:03 pm
Forum: Personal Investments
Topic: Portfolio Review - New to Forum
Replies: 7
Views: 833

Re: Portfolio Review - New to Forum

Regarding #4. The Roll-over IRA and traditional-IRA are equivalent in many ways and both can be reverse rolled to the 401k. You can even consolidate them before doing the reverse rollover but it's just an extra application form if they are two accounts. You'll want to make sure the 401k plan will ac...
by make_a_better_world
Mon Aug 12, 2019 3:00 pm
Forum: Personal Investments
Topic: I'm 31, and 95% stocks. Given economy indicators, would moving 20-30% to BND be "timing"?
Replies: 67
Views: 6783

Re: I'm 31, and 95% stocks. Given economy indicators, would moving 20-30% to BND be "timing"?

Personally I am taking my own amateur version of Ray Dalio's All-Weather fund approach where you have different asset classes with different degrees of correlation. Isn't the Dalio all weather portfolio 30% stock, 60% bonds and rest in gold/commodities? With bonds stuck in low interest rate for >10...
by make_a_better_world
Sun Aug 11, 2019 7:25 pm
Forum: Personal Investments
Topic: I'm 31, and 95% stocks. Given economy indicators, would moving 20-30% to BND be "timing"?
Replies: 67
Views: 6783

Re: I'm 31, and 95% stocks. Given economy indicators, would moving 20-30% to BND be "timing"?

michoco911 wrote:
Sun Aug 11, 2019 3:24 am
Personally I am taking my own amateur version of Ray Dalio's All-Weather fund approach where you have different asset classes with different degrees of correlation
Would be happy to hear from you how you translated this in terms of ETFs/Codes and percentages
I sent you a PM.
by make_a_better_world
Sat Aug 10, 2019 11:14 pm
Forum: Personal Investments
Topic: I'm 31, and 95% stocks. Given economy indicators, would moving 20-30% to BND be "timing"?
Replies: 67
Views: 6783

Re: I'm 31, and 95% stocks. Given economy indicators, would moving 20-30% to BND be "timing"?

It's on a lot of our minds. On a short timeline the market may very well take a downturn. Attempting to predict where the market will be in the future, and using that assessment to decide when to move your money in and out is market timing and you'll probably be wrong about the moments to act. Tryin...
by make_a_better_world
Fri Aug 09, 2019 8:07 pm
Forum: Personal Investments
Topic: Tax deferment options for someone employed with side businesses
Replies: 3
Views: 417

Re: Tax deferment options for someone employed with side businesses

I figured it was too good to be true since I have not heard of anyone having three 401k plans before. Appreciate it.
by make_a_better_world
Fri Aug 09, 2019 8:03 pm
Forum: Personal Investments
Topic: Do you pause while doing a Backdoor Roth?
Replies: 16
Views: 1433

Re: Do you pause while doing a Backdoor Roth?

While I have performed the backdoor-Roth myself, I disagree with it being "blessed" by the IRS. If the spirit of the law was to encourage the strategy there would be no income limit on the Roth IRA in the first place. It's a loophole. The IRS is well aware of it and has made clear it is legal under ...
by make_a_better_world
Thu Aug 08, 2019 9:50 am
Forum: Personal Investments
Topic: Tax deferment options for someone employed with side businesses
Replies: 3
Views: 417

Tax deferment options for someone employed with side businesses

Dear Bogleheads, I want to start this post with a big thank you. I started using this forum 6 years ago and have received such great advice. Age 39 Income: Primary: (W-2) - $656k Rental property (NOI): $106k Side business (LLC, sole-proprietor – passes directly to me): highly variable, $26k - $224k ...
by make_a_better_world
Mon Aug 05, 2019 9:24 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 3353
Views: 400470

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

This goes against everything the philosophy of this forum has regarding market timing and predictions, but I'm going to post it anyway. TMF likely surged and UPRO likely dropped as a direct result of the Fed interest rate cut and uncertainty in equities with US-China trade war. This quote was in the...
by make_a_better_world
Sun Jul 28, 2019 8:31 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 3353
Views: 400470

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Since you guys keep discussing the optimal frequency for rebalancing, just thought I'd share an option available if you must do this inside a taxable account: M1 offers dynamic rebalancing. So I put in a deposit to get started, set the pie at 40/60, and then added small monthly auto-deposits to go i...
by make_a_better_world
Wed Jul 10, 2019 5:51 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 3353
Views: 400470

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

MotoTrojan wrote:
Wed Jul 10, 2019 4:27 pm

Woohoo another bold bet, I like it! Straight up 40/60 monthly rebalance?
I'll probably rebalance every 6 months or year but otherwise yes - the 40/60 split.
by make_a_better_world
Wed Jul 10, 2019 4:23 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 3353
Views: 400470

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Cheers for the thread with special thanks to Hedgfundie, Siamond and Samsdad. I found it a very interesting read and I'm going to try it with 100k as well.
by make_a_better_world
Sun Dec 30, 2018 12:35 am
Forum: Investing - Theory, News & General
Topic: What are some critiques of passive investing/index funds?
Replies: 75
Views: 6588

Re: What are some critiques of passive investing/index funds?

I see two significant potential downsides, which are both related to a scenario where index funds have been widely adopted by retail investors and institutions alike, and comprise a majority stake of all stocks in the market: 1. Indexed, passive investment fund managers do not evaluate individual co...
by make_a_better_world
Tue Oct 30, 2018 7:14 pm
Forum: Investing - Theory, News & General
Topic: Why I'm 100% stocks
Replies: 149
Views: 21370

Re: Why I'm 100% stocks

On backtesting I have done, 100% US stocks has outperformed portfolios that include some mixture of bonds, and the margin is usually modest (but sometimes great). The volatility is essentially always higher. International stocks have not performed nearly as well. I will point out that Warren Buffet ...
by make_a_better_world
Sun Oct 07, 2018 10:20 pm
Forum: Personal Investments
Topic: Investment advice for a friend in her nineties
Replies: 22
Views: 2073

Re: Investment advice for a friend in her nineties

I think it depends on what she plans to do with her assets at death, and I do not think that should be assumed. If she has grandchildren, for example, and plans to gift her assets to them, then I think it would be wise to invest the money into the longest time horizon portfolio just as for anyone el...
by make_a_better_world
Sun Oct 07, 2018 1:07 pm
Forum: Personal Investments
Topic: My biggest mistake - market timing
Replies: 62
Views: 10931

Re: My biggest mistake - market timing

VBMFX is essentially high rated US bonds of all types (short, intermediate, long term - US government and corporate). It avoids high risk/high return bonds (junk bonds). VBMFX is a good fund in my opinion to use for bonds in your investments. You could back test all sorts of scenarios on Portfoliovi...
by make_a_better_world
Wed Oct 03, 2018 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate vs stock market returns: some unbiased numbers
Replies: 53
Views: 10157

Re: Real estate vs stock market returns: some unbiased numbers

In the last 5 years, I have invested in stocks and now have three commercial properties. For me, commercial real estate has been the best investment I have ever made. My first project cost about 750k, has been rented 3 years now, nets 90k after taxes per year, and the tenant just signed another 5 ye...
by make_a_better_world
Wed Oct 03, 2018 8:27 pm
Forum: Personal Investments
Topic: My biggest mistake - market timing
Replies: 62
Views: 10931

Re: My biggest mistake - market timing

Despite your husband saying he won't check it and that you seem confident, I recommend adding bonds at a significant portion to your stocks as many have suggested. What will happen is that when the market skyrockets you go up but not quite as much. When the market tanks you go down but not as much. ...
by make_a_better_world
Mon Oct 01, 2018 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: What types of insurance do I need?
Replies: 3
Views: 501

Re: What types of insurance do I need?

Yes, I'd suggest that you "run, not walk" to get business/commercial liability/umbrella insurance, and probably for more than 1M (and you might re-consider that amount for your personal policy. It's not difficult for a serious injury to top that, especially if lifetime care is needed. Low probabili...
by make_a_better_world
Fri Sep 28, 2018 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: What types of insurance do I need?
Replies: 3
Views: 501

What types of insurance do I need?

Dear Bogelheads, I own three commercial properties. Well technically, I do not own them; an LLC does and I am the main managing member. One has a free standing building rented to a tenant who runs a restaurant. The second property is a free standing building rented to a tenant who runs a restaurant ...
by make_a_better_world
Tue Sep 18, 2018 6:27 pm
Forum: Investing - Theory, News & General
Topic: Robert Shiller interview: "Market could get a lot higher"
Replies: 28
Views: 4923

Re: Robert Shiller interview: "Market could get a lot higher"

I heard him on YouTube the other day, and the main point he made regarding this, was that in 1996 pundits were saying we've had the longest bull run ever in history and it was about to crash and then the bull run continued for another 4 years. He also mentioned that the various ratios/markers are ve...
by make_a_better_world
Tue May 15, 2018 10:09 pm
Forum: Personal Investments
Topic: Can I afford to retire now?
Replies: 45
Views: 7948

Re: Can I afford to retire now?

Congratulations on your accomplishments. As others have said I would liquidate the foreign property, especially if it does not generate income. The numbers look good, but at 59 years old with a child that hasn't graduated there are a considerable number of assumptions on a long timeline. This gets p...
by make_a_better_world
Tue May 15, 2018 9:23 pm
Forum: Personal Investments
Topic: To sell or not to sell Investment Property?
Replies: 2
Views: 607

Re: To sell or not to sell Investment Property?

It sounds as if you are in an overall good place. I invest in commercial real estate and the market I'm in (Texas) might be very different than yours. Factors I would take into consideration that I could not gather from your post: - If you sell any of those properties, will you pay tax at a capital ...
by make_a_better_world
Sun May 13, 2018 2:20 pm
Forum: Investing - Theory, News & General
Topic: Doubling Your Money
Replies: 47
Views: 12388

Re: Doubling Your Money

This is grossly oversimplified but... If you hold your money in the US stock market as a whole AND the stock market continues to perform as it has over the last 100 years AND you look at a long time line of 30 years or more THEN: In a non-taxable account (you do not pay taxes on gains or dividends, ...
by make_a_better_world
Fri Mar 16, 2018 9:13 pm
Forum: Personal Investments
Topic: what to do with 1 million in hand..
Replies: 23
Views: 4217

Re: what to do with 1 million in hand..

If your mortgage loan is at 3% interest and the rate is locked, I would not pay off the loan. I would invest about 500k into the market inside a regular brokerage account in Vanguard into index funds like the total US stock marker and total international stock market. Don't plan on selling it. I wou...
by make_a_better_world
Sun Mar 11, 2018 1:50 pm
Forum: Personal Investments
Topic: 25YR old with considerable amount of cash
Replies: 48
Views: 7604

Re: 25YR old with considerable amount of cash

I am sorry to hear about your mother. Your most important asset right now is not the 750k. It is your ability to earn. Keeping that in mind I would use some of the money to invest in developing yourself- education and career or business. I agree with what someone said earlier in that I would assume ...
by make_a_better_world
Sun Mar 11, 2018 1:14 pm
Forum: Personal Investments
Topic: Buying a plot of land for retirement
Replies: 35
Views: 4781

Re: Buying a plot of land for retirement

If you are planning to live on the land from now and continue living there for the rest of your life, then it would make an excellent investment financially. If you are planning to hold it and start using it after 30 years, then the money you have now would be much better served in an investment tha...
by make_a_better_world
Fri Feb 09, 2018 8:28 pm
Forum: Investing - Theory, News & General
Topic: "The stock market is officially in a correction... here's what usually happens next"
Replies: 83
Views: 16136

Re: "The stock market is officially in a correction... here's what usually happens next"

I use dollar cost averaging with monthly automatic deposits into the core VG index funds. When the market drops like this, I increase the amounts of each automatic deposit. It is tough to predict where it will bottom out but I see it as American business on sale. I guess you could call this a veiled...