Search found 137 matches

by techcrium
Thu Sep 05, 2019 2:17 pm
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 662
Views: 50533

Re: Lifecycle Investing - Leveraging when young

It's about reward for your efforts. I find that applying for a new card takes ~15 minutes. Then instead of putting expenses onto my previous card, I put them onto the newer card (no extra effort there). I don't spend much so I feel very confident I can fully pay it off by funneling my saving contri...
by techcrium
Thu Sep 05, 2019 9:08 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 662
Views: 50533

Re: Lifecycle Investing - Leveraging when young

Adding to Lifecycle Investing.... Has anyone thought about incorporating family into this leverage? Say your parents or grandparents are about to retire with a $2million portfolio and they can't handle risk and are probably 90% bonds or something. What if you insure them their annual withdrawal rate...
by techcrium
Thu Sep 05, 2019 8:42 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 662
Views: 50533

Re: Lifecycle Investing - Leveraging when young

Hey I just want to say I did a form of this in 2013. My thread if you want to browse: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=131230 At the time I had $100K in equity and I was $200K in assets. $30K in 0% credit card interest which I would repay and renew each year. $30K in margin (rate...
by techcrium
Tue Apr 02, 2019 10:12 am
Forum: Investing - Theory, News & General
Topic: Study: The Rate of Return on Everything, 1870-2015
Replies: 193
Views: 37617

Re: Study: The Rate of Return on Everything

How is housing evaluated though?

Is it by buying a 1900s house and holding it for 100 years?? Or are they comparing by average new house built?
by techcrium
Wed Jun 20, 2018 7:44 pm
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

If you are 2 years from retirement and almost have made your number, you would be foolish to be 100% in stocks, even if you think the stock market is going to do great. Because you might be wrong. Pick an AA based on YOUR financial situation, not based on what you think the market will do. I've nev...
by techcrium
Wed Jun 20, 2018 6:42 pm
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

You've never been through a recession with a ton of money on the line. Sorry to be that old guy with experience grumbling at the young guy who has only seen one side of the coin so far. :) That's cool. It's not like I haven't seen declines...my portfolio went down almost $70,000 in the span of 2 we...
by techcrium
Wed Jun 20, 2018 4:46 pm
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

600k net worth, still haven't paid back a close relative :shock: They are happy with the interest structure and have no need for the money right now; I am happy with continuing to use the money to invest. I think it is a win-win for both parties. I think I am different than most people on this foru...
by techcrium
Wed Jun 20, 2018 3:33 pm
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

As an update: I am glad I didn't listen to anyone about having lots of debt. Most people don't lose on the first round or two of musical chairs either. I'm really not sure how that analogy applies. Like if the music stops = market crashed? If the market crashes 85%, then I might be on the verge of ...
by techcrium
Wed Jun 20, 2018 2:26 pm
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

As an update: I am glad I didn't listen to anyone about having lots of debt. Right now, my debt is completely manageable that it would take a 85% market crash for me to become insolvent and get margin calls. I am considering increasing margin debt but interest rates are a little high... Assets: $610...
by techcrium
Wed Jun 20, 2018 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 505
Views: 134872

Re: Anyone regret paying off mortgage early?

You know what I don't get...how everyone in this thread hates debt.. Isn't debt just a number on your balance sheet? 1. You could have $3,500,000 in assets with $500,000 obligation 2. or $3,000,000 in assets with $0 obligation. You could just theoretically direct that $500,000 from #1 into a new ban...
by techcrium
Thu Jun 14, 2018 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 1147
Views: 322514

Re: Share your net worth progression

I am curious to know how the bogleheads got wealthy, what was your salary + savings rate at your early age. For me, had $3,000 or so at 18 (working various jobs) saved up $30,000 at 23 (again various jobs and parents paid tuition) This is when I purchased my first stock (JNJ at $54) Currently: $100...
by techcrium
Thu Feb 01, 2018 1:21 am
Forum: Personal Finance (Not Investing)
Topic: Top 1% Net Worth Under 30 Years Old
Replies: 13
Views: 6898

Re: Top 1% Net Worth Under 30 Years Old

Using the calculator if you have over 600k networth at 30, you should be top 1%

I would reckon very few bogleheads even have 600k by 30. Assuming bogleheads are top 5%, then I would say 20% on this forum reached 600k aka 1%

There was another chart that said over 500k puts you in the rich list.
by techcrium
Fri Oct 27, 2017 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 1147
Views: 322514

Re: Share your net worth progression

oh wow I can't believe this thread got so many replies after 3 years. It was enjoyable reading it all. I have updated my OP to reflect 2017.
by techcrium
Tue Feb 07, 2017 3:32 pm
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

The majority of my investments are broad index ETFs... Ah, my apologies... For some reason I thought you had made those gains in one year. Nice work. I still think you should retire the debt. You're in great shape going forward; there's no need to play around with debt and leverage. Thanks for the ...
by techcrium
Tue Feb 07, 2017 3:25 pm
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

The stock market is gambling. Even ETFs. Don't kid yourself thinking otherwise. I do it myself, but never with other people's money. By that logic, you are saying every single person here is essentially gambler? Of course. The stock market is risky. But most of us risk our own money. Of course, I a...
by techcrium
Tue Feb 07, 2017 2:25 pm
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

aristotelian wrote: The stock market is gambling. Even ETFs. Don't kid yourself thinking otherwise. I do it myself, but never with other people's money.
By that logic, you are saying every single person here is essentially gambler?
by techcrium
Tue Feb 07, 2017 1:41 pm
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

Where in my posts did I say I was speculating or timing the market? I honestly don't know how you were able to assume that... I like how you allude to my gains as "gambling" yet you have no idea what index funds or ETFs I bought. The majority of my investments are broad index ETFs... Now we're gett...
by techcrium
Tue Feb 07, 2017 12:50 pm
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

One other thing that concerns me is what are you invested in? Doesn't appear to be the broad market, but it looks like you picked some individual stocks that have done very well. So the broad market doesn't have to go down substantially for you to be in trouble, just the individual stocks. What cre...
by techcrium
Tue Feb 07, 2017 10:51 am
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

Glad it worked out for you, but you are confusing outcome with strategy. That's just like someone who left the casino as a winner stating, "Looking back, I'm glad I bet it all on black". Doesn't mean it was a great idea. You are now probably in the top 2%-5% of all 29-year olds. Might want to cut b...
by techcrium
Tue Feb 07, 2017 10:15 am
Forum: Personal Investments
Topic: Evaluate my finances. Young guy.
Replies: 96
Views: 14931

Re: Evaluate my finances. Young guy.

Age: 26 Assets: $185 000 in equities (stocks/etfs/funds) $5 000 in cash Debt: $18 300 at 1% interest credit card $35 000 at 3% interest from a close relative for 3 years $26 000 at 3% interest for margin with brokerage Networth: $110 000 Salary: 45K per year Est. Savings per year: 20K Stock market ...
by techcrium
Tue Nov 22, 2016 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 1147
Views: 322514

Re: Share your networth progression

I had a good job and a good income, and my wife and I lived well below our means. I saved a lot and invested aggressively for growth. My allocation was usually around 70/30, sometimes higher in equities. I was lucky and have had strong markets most of the time, and never did anything stupid in a ma...
by techcrium
Tue Nov 22, 2016 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 1147
Views: 322514

Re: Share your networth progression

The primary account, which is with TSP, went as shown below. I knew nothing at age 29, but could clearly see that it was (1) tax-free going in, (2) DOUBLED my money due to .gov matching 5% of my salary. I was way too conservative, spent a stupid couple of years in 100% G fund, then switched to near...
by techcrium
Mon Apr 18, 2016 9:28 am
Forum: Investing - Theory, News & General
Topic: What does a 20+ year old portfolio look like?
Replies: 7
Views: 1616

What does a 20+ year old portfolio look like?

I am just wondering for those long term investors, what does a 20+ year old portfolio look like? If you own some individual stocks, are they massively convoluted due to the number of stock splits and spin offs? If you own ETF or stocks....is the return percentage something ridiculous like 1800%? htt...
by techcrium
Fri Dec 04, 2015 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 1147
Views: 322514

Re: Share your networth progression

If savings rates and investment strategies remained unchanged, then there would have been a dip in 2008 because of the stock market and real estate crashing so badly. People on here are heavily invested in the stock market, and many own a home. Almost no one was able to increase their savings so mu...
by techcrium
Thu Aug 06, 2015 8:50 am
Forum: Investing - Theory, News & General
Topic: So do the uber wealthy invest money the same way we do?
Replies: 95
Views: 13772

So do the uber wealthy invest money the same way we do?

Say someone has several billion dollars.

Do they invest it the same way as regular boglehead and buy a Vanguard ETFs?
by techcrium
Sat Nov 29, 2014 12:28 pm
Forum: Personal Investments
Topic: An overdue update from a "panicked investor"
Replies: 86
Views: 11647

Re: An overdue update from a "panicked investor"

While I appreciate your reflection, you have not explained why are OK with 80% stocks that you weren't comfortable with in 2010.
by techcrium
Wed Nov 26, 2014 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Paying my parents a salary not to touch their nest egg
Replies: 50
Views: 6319

Re: Paying my parents a salary not to touch their nest egg

I see no advantage to this at all. What am I missing? You're giving your parents money to save. Later they'll give it back to you in an inheritance. How did you increase your net wealth? Why not just save the money yourself? This seems like the law of conservation of energy - the money may change f...
by techcrium
Wed Nov 26, 2014 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Paying my parents a salary not to touch their nest egg
Replies: 50
Views: 6319

Re: Paying my parents a salary not to touch their nest egg

This is actually a pretty brilliant idea. You would have to work out the kinks as so neither thinks one is "screwing the other" So your annual payment to them would be the higher of what they would have gotten if did switched to a higher bond lower stock percentage and lower of 100% stocks portfolio...
by techcrium
Mon Nov 24, 2014 2:00 pm
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 930
Views: 253419

Re: Should I use margin to buy a balanced fund?

The following is a reading list on leverage for the nonadvanced investor: http://www.investmentreview.com/files/2009/12/leveraged_portfolios1.pdf There used to be another paper that you could get online (Wealth and Risk from Leveraged Stock Portfolios, Dale L. Domian and Marie D. Racine, Financial ...
by techcrium
Fri Nov 14, 2014 8:07 pm
Forum: Investing - Theory, News & General
Topic: Isn't everybody here market timing, by definition?
Replies: 32
Views: 3103

Re: Isn't everybody here market timing, by definition?

Techrium, let's define "market timing" as "the practices followed by people who call themselves market timers." Bogleheads do not do those things. If someone want to subscribe to a market timing newsletter and follow its "buy" and "sell" signals, or calculate moving averages and buy and sell when t...
by techcrium
Fri Nov 14, 2014 4:08 pm
Forum: Investing - Theory, News & General
Topic: Isn't everybody here market timing, by definition?
Replies: 32
Views: 3103

Re: Isn't everybody here market timing, by definition?

It is market timing, in the sense that buy and hold assumes the market will go up long term. That seems to be a safe assumption, given the history of the stock market and global economy. Assumptions about the short term future are less certain. Exactly. Which is why the mantra about ignoring past p...
by techcrium
Fri Nov 14, 2014 4:05 pm
Forum: Investing - Theory, News & General
Topic: What NW amount makes this person financially free?
Replies: 19
Views: 3189

Re: What NW amount makes this person financially free?

3% SWR would say $800k. 4% SWR would say $600k. Yes but I don't want to get technical. If you in an index fund and then proceed to reinvest the dividends, then your SWR is 0%. This is more philosophical, how much to feel financially free to take a 4 month vacation to do whatever, perhaps start a si...
by techcrium
Fri Nov 14, 2014 3:51 pm
Forum: Investing - Theory, News & General
Topic: What NW amount makes this person financially free?
Replies: 19
Views: 3189

What NW amount makes this person financially free?

Let's say he/she in their 30s is not looking to retire anytime soon but wants to know what networth amount makes him/her financially free such that they can quit or take a really long vacation without too much worry about job loss or income for that matter. He/she may return to work or may attempt a...
by techcrium
Fri Nov 14, 2014 2:09 pm
Forum: Investing - Theory, News & General
Topic: Isn't everybody here market timing, by definition?
Replies: 32
Views: 3103

Isn't everybody here market timing, by definition?

By definition, you have to enter the market at a particular time, right? That can be as young as 18 or younger. By definition, you have to draw down at some point in your lifetime, right? If not, your children or grandchildren will have to draw down money at some point right? That in itself is marke...
by techcrium
Mon Sep 29, 2014 3:37 pm
Forum: Investing - Theory, News & General
Topic: In theory, market timing = index investing
Replies: 10
Views: 1229

In theory, market timing = index investing

In theory. I will illustrate. Let's assume the total stock market is compromised of 3 stocks A, B, and C Person 1 is a boglehead index investor. So he invests in the index compromised of A, B, and C One year C goes up 40%, another year B goes down 20%, and so forth. Person 2 is a "smart market timer...
by techcrium
Tue Sep 23, 2014 10:04 am
Forum: Investing - Theory, News & General
Topic: The only risk of leverage is selling at the bottom
Replies: 46
Views: 3564

Re: The only risk of leverage is selling at the bottom

I have a mortgage and consider it much less risky than almost any other kind of debt. Why? Because it is non-recourse. Thus, it is effectively a put option on my house. Note: I have no intention of defaulting on my mortgage, or on any other debt, and I have never done so in the past. However, to ca...
by techcrium
Tue Sep 23, 2014 8:10 am
Forum: Investing - Theory, News & General
Topic: The only risk of leverage is selling at the bottom
Replies: 46
Views: 3564

Re: The only risk of leverage is selling at the bottom

This is like the third or fourth time you've posted this topic; and the same arguments are being rehashed. And yet the only response is a link to Market Timer's thread which he was leveraged 8:1 and $200,000 in borrowed money...which I clearly said that he was overleveraged and thus forced to sell ...
by techcrium
Tue Sep 23, 2014 7:56 am
Forum: Investing - Theory, News & General
Topic: The only risk of leverage is selling at the bottom
Replies: 46
Views: 3564

Re: The only risk of leverage is selling at the bottom

I don't think there is anything fundamentally wrong with leverage PROVIDED YOU DO IT RESPONSIBLY. If you want to leverage up to 1.3:1, I say go for it. Please post regular updates here! I've sometimes considered doing the same, but my laziness has kept me from pulling the trigger. That and the fact...
by techcrium
Tue Sep 23, 2014 7:51 am
Forum: Investing - Theory, News & General
Topic: The only risk of leverage is selling at the bottom
Replies: 46
Views: 3564

Re: The only risk of leverage is selling at the bottom

Imagine if he was leveraged 1.5:1 or 1.25 to 1 and what position he would be today. Ed Thorp showed that 1.5:1 is recklessly risky for the SP500 and any other stock portfolio of comparable risk. Now, it could be that least a theoretically acceptable risk over the long, long, run if you invested in ...
by techcrium
Tue Sep 23, 2014 7:44 am
Forum: Investing - Theory, News & General
Topic: The only risk of leverage is selling at the bottom
Replies: 46
Views: 3564

Re: The only risk of leverage is selling at the bottom

I clearly mentioned that the risk of leverage is getting wiped out at the bottom which was exactly what happened to Market Timer. He had way too much leverage compared to his equity position. For someone taking a $200,000 loan to invest...he should have minimum $800,000-$1.2mil in invest-able assets.
by techcrium
Tue Sep 23, 2014 7:32 am
Forum: Investing - Theory, News & General
Topic: The only risk of leverage is selling at the bottom
Replies: 46
Views: 3564

Re: The only risk of leverage is selling at the bottom

That is the only risk. Selling at the bottom either involuntarily (e.g. via margin call/heloc call) or voluntarily (e.g. via fear) If that risk can be mitigated then leverage is absolutely fine and would even be recommended. Matter of fact..majority of companies start off via leverage so why should...
by techcrium
Tue Sep 23, 2014 12:50 am
Forum: Investing - Theory, News & General
Topic: The only risk of leverage is selling at the bottom
Replies: 46
Views: 3564

Re: The only risk of leverage is selling at the bottom

I would say that student loans is a leveraged investment.
by techcrium
Tue Sep 23, 2014 12:46 am
Forum: Investing - Theory, News & General
Topic: The only risk of leverage is selling at the bottom
Replies: 46
Views: 3564

Re: The only risk of leverage is selling at the bottom

About the best you can do is avoid what you call the "fear selling". Do that, whether leveraged or not. But if you invest in leveraged risk assets at all, you gotta worry about that margin call, always, and worry a lot. Saying it's the only risk is like saying that drowning is the only risk of swim...
by techcrium
Tue Sep 23, 2014 12:35 am
Forum: Investing - Theory, News & General
Topic: The only risk of leverage is selling at the bottom
Replies: 46
Views: 3564

Re: The only risk of leverage is selling at the bottom

toto238 wrote:Well you also are getting charged probably between 5% and 7% interest on it... So you better be making AT LEAST that much.
Of course I am assuming that the financially literate would attempt this with positive EV...

And no...margin debt interest can be as low as 2% to 3%

Heloc is 3%
by techcrium
Tue Sep 23, 2014 12:33 am
Forum: Investing - Theory, News & General
Topic: The only risk of leverage is selling at the bottom
Replies: 46
Views: 3564

Re: The only risk of leverage is selling at the bottom

That was an analogy...based on leverage.
by techcrium
Tue Sep 23, 2014 12:19 am
Forum: Investing - Theory, News & General
Topic: The only risk of leverage is selling at the bottom
Replies: 46
Views: 3564

The only risk of leverage is selling at the bottom

That is the only risk. Selling at the bottom either involuntarily (e.g. via margin call/heloc call) or voluntarily (e.g. via fear) If that risk can be mitigated then leverage is absolutely fine and would even be recommended. Matter of fact..majority of companies start off via leverage so why shouldn...
by techcrium
Tue Sep 16, 2014 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: Any success stories of ppl who never made >$50,000?
Replies: 149
Views: 15712

Re: Any success stories of ppl who never made >$50,000?

Yes,It CAN be done It depends where you live too. If you're making 50k in NYC or SF, then yes saving and investing for the long term can be really difficult. It will be easier to live in a lower cost of living area with a 50k/year income. Like others as said, the philosophy doesn't change. much har...
by techcrium
Tue Sep 16, 2014 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Any success stories of ppl who never made >$50,000?
Replies: 149
Views: 15712

Re: Any success stories of ppl who never made >$50,000?

The Federal Reserve had a paper several years ago looking at income and wealth deciles. (I wish I had a copy, because I quote it all the time!). Since this statement is complicated, I'll make up some numbers (not real). Take the top 10% income earners - let's say they make over $250K - and bottom 1...
by techcrium
Tue Sep 16, 2014 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Any success stories of ppl who never made >$50,000?
Replies: 149
Views: 15712

Re: Any success stories of ppl who never made >$50,000?

seems like Tom Stanley in his book " The Millionaire Next Door " had some examples of lower income/higher net worth types.... Two third's were self-employed business owners. The vast majority of them had high income to begin with and were very frugal. Of course the combination of the 2 will equal g...