When I was a child, my family would drive up to my grandparents cottage on summer weekends and holidays. Among other things, my grandparents had decades-old Readers' Digests and Time magazines laying around. It was fun to read things written so long ago. One of my favorites was an article predicting that within 30 years (and this was probably referring to the 1980s or the 1990s), the average workday would be 2 hours per day thanks to automation and technological advancements.market timer wrote:I often wonder what people will be doing in 40 years to pay the income taxes that give the dollar its value, as work is increasingly automated.
Search found 772 matches
- Sun Aug 16, 2015 10:58 am
- Forum: Investing - Theory, News & General
- Topic: the 12 commandments of gold bugs
- Replies: 62
- Views: 7044
Re: the 12 commandments of gold bugs
- Sun Aug 16, 2015 10:42 am
- Forum: Investing - Theory, News & General
- Topic: Cap-weight indexers, how do you explain these graphs?
- Replies: 64
- Views: 6057
Re: Cap-weight indexers, how do you explain these graphs?
But the charts show this isn't the case: one is STRICTLY better off adding a small dose of SCV; you get both less risk and more reward. Even if you argue that the SCV premium is eroded, and the expected risk-adjusted return of SCV in isolation is no higher than TSM, that adjustment alone would not eliminate the strictly dominant mixed strategy of the two, leveraging their imperfect correlation. You consistently use present tense when talking about something that happened in the past. But the charts show this isn't the case: one is STRICTLY better off adding a small dose of SCV; you get both less risk and more reward. That's false. But the charts show this wasn't the case: one was STRICTLY better off adding a small dose of SCV; you got both...
- Sun Aug 16, 2015 10:30 am
- Forum: Personal Consumer Issues
- Topic: Can a bill dispute ruin our credit?
- Replies: 30
- Views: 6923
Re: Can a bill dispute ruin our credit?
I agree with whoever thinks that's using a howitzer to kill a housefly, but I'm not sure that matters. This is a personal question: what is your time worth? How big of a deal is the principle to you? Ultimately, my time is worth much more than $100 or $200. Life's too short. But that's how I feel, and you and your wife may feel otherwise, and there is no right or wrong involved.yubrwyn wrote:My spouse and I disagree on next steps. One wants to proactively take action in small claims court to prevent this going to a collection agency. The other thinks that’s using a howitzer to kill a housefly and that we should just pay half the bill even if it grates against our sense of principle. Your thoughts?
- Sun Aug 16, 2015 10:21 am
- Forum: Personal Finance (Not Investing)
- Topic: Behavioral Interview for Leadership Posistion
- Replies: 32
- Views: 5369
Re: Behavioral Interview for Leadership Posistion
Ultimately, I would expect the questions to be variations of "Tell me about a time when you ______." For example, "tell me about a time when you led a project with a tight deadline." "Tell me about a time when you had to deal with a boss/coworker who disagreed with your proposed course of action." "Tell me about a time when you worked with someone whose background was very different from your own." You need examples from your past showing you know how to lead, how to deal with difficult personalities, how to overcome resistance, how to overcome resource constraints or obstacles, how to bring out the best in other people, etc. It's not "how would you deal with this situation, hypothetically",...
- Sat Aug 15, 2015 7:59 am
- Forum: Investing - Theory, News & General
- Topic: the 12 commandments of gold bugs
- Replies: 62
- Views: 7044
Re: the 12 commandments of gold bugs
We've had some good threads on gold lately. I will go get some popcorn now (paid for with fiat currency).
- Sat Aug 15, 2015 7:52 am
- Forum: Personal Consumer Issues
- Topic: Can a bill dispute ruin our credit?
- Replies: 30
- Views: 6923
Re: Can a bill dispute ruin our credit?
...I will spend every minute of my spare time dissing your company on every social media outlet, put a big sign in my yard telling what you did, picket your office (if they have one) etc, etc. I once had a customer threaten to do this to my company after I picked-up an item he had been renting from us after he was 9 months behind in his rent. He also threatened to put up a website dissing us (because he knows how to make websites. LOL). It didn't scare me. I think that when customers see negative posting, signs, and things like that they know it's the work of an unreasonable or crazy people. I used to sell things on ebay and I told my buyers that negative feedback was OK from crazy people. In general, I think the advice to threaten bad mou...
- Tue Aug 11, 2015 10:58 am
- Forum: Personal Consumer Issues
- Topic: Anyone not own a Smartphone
- Replies: 76
- Views: 7629
Re: Anyone not own a Smartphone
That cost sounds high. There are some really cheap smartphone data plans through companies like Consumer Cellular.MildlyEccentric wrote:I'm the technology geek of the family, but I use an ancient flip phone without a text or data plan. I have a strong bias against signing up for anything involving recurring charges and I could never convince myself, the extra $420/year was worth the benefit. For me, it was mostly a question of looking up something immediately vs. looking it up later. There were very few situations which couldn't wait until I got home to my desktop or be handled with a traditional voice call.
- Mon Aug 10, 2015 8:41 pm
- Forum: Personal Consumer Issues
- Topic: Popcorn ceilings
- Replies: 7
- Views: 2274
Re: Popcorn ceilings
Your ceiling might or might not have asbestos. Here's how to check: Testing a Popcorn Ceiling for Asbestos The problem is you can't tell if a ceiling contains asbestos unless you test it. You can't tell by looking at it with your naked eye. Identification requires a microscope and a trained eye. This means you will need to obtain a sample of the ceiling and send that sample to a laboratory that specializes in identifying asbestos. It might cost you $50 or so to get the sample tested. Wear a HEPA (high efficiency particulate air) mask for protection Don plastic gloves to avoid contact with the sample. Fill a spray bottle with a teaspoon of soap and 16 ounces of water. Spray a small area to dampen the ceiling. Use a sharp razor-blade knife, c...
- Mon Aug 10, 2015 7:53 pm
- Forum: Personal Finance (Not Investing)
- Topic: IRA distribution - regular income or capital gain?
- Replies: 4
- Views: 1009
Re: IRA distribution - regular income or capital gain?
Ordinary income.
- Mon Aug 10, 2015 7:41 pm
- Forum: Personal Investments
- Topic: Overwhelmed with my portfolio
- Replies: 5
- Views: 1854
Re: Overwhelmed with my portfolio
I'd put everything into a Target Retirement fund or a LifeStrategy fund. Or maybe taxable in Target Retirement and tax sheltered in Life Strategy. Someone will tell you you can be more tax efficient, but if you want to "basically forget about these accounts", that's the way to go.
- Mon Aug 10, 2015 7:28 pm
- Forum: Investing - Theory, News & General
- Topic: Front-End Loads: Are They Really THAT Big of a Deal?
- Replies: 60
- Views: 11581
Re: Front-End Loads: Are They Really THAT Big of a Deal?
If you pay 5% up front, you'll have 5% less of whatever your portfolio will grow to in the end state. For every $1 million you plan to have in retirement, you're giving up $50,000. You'll have $950,000 instead of $1,000,000. To me that's a big deal, but I guess it's subjective. Stated that way, does it seem like a big deal to you?
- Mon Aug 10, 2015 10:32 am
- Forum: Personal Finance (Not Investing)
- Topic: Am I crazy? Quitting my job.
- Replies: 107
- Views: 23936
Re: Am I crazy? Quitting my job.
You're not crazy. The goal in life should be to be happy, not to be rich, so if you're not happy, then yeah, quit. You'll have the resources to find the next step.Mongoose wrote: Would it be stupid to give up such a high paying job and the promise of early retirement to go into such uncertainty? The truth is we are just not happy with life out here and both the wife and I are falling into a state of depression very quickly which is not good and we need to get out.
Any general thoughts?
- Sun Aug 09, 2015 12:56 pm
- Forum: Personal Investments
- Topic: 100% bond portfolio
- Replies: 35
- Views: 6814
Re: 100% bond portfolio
Even then, munis have credit risk. Meredith Whitney turned out to be wrong, but her fears don't seem baseless.Call_Me_Op wrote:Taylor,
I am sure the fact that he was "very wealthy" played into his comfort with an all-bond strategy.
If you are very wealthy, it is hard to go broke as long as you avoid scams and leverage.
- Sun Aug 09, 2015 12:52 pm
- Forum: Personal Investments
- Topic: Seeking Investment advice ($190k in cash)
- Replies: 26
- Views: 2719
Re: Seeking Investment advice ($190k in cash)
I agree. If you don't want to pay it all off, put $100,000 toward the student loan and the rest toward buying a property. And save aggressively so you can buy the property and have a good emergency fund.deuceplus wrote:
I'd pay the student loan off. Paying that loan off (assuming you refi it to 4.5) is equivalent to investing in something yielding a 100% guaranteed after tax return of 4.5%. If i could get a guaranteed return that good i'd probably put all my money in it right now.
- Sun Aug 09, 2015 12:48 pm
- Forum: Personal Investments
- Topic: What to do with tiny orphan IRA
- Replies: 8
- Views: 1722
Re: What to do with tiny orphan IRA
Contact the credit union and tell them you'd like to liquidate the account.rterickson wrote:
I would like to liquidate the account, I know taxes and penalties should be minimal, but I have no idea how to go about cleaning it up.
Any ideas?
- Sun Aug 09, 2015 11:55 am
- Forum: Personal Consumer Issues
- Topic: Anti-smartphone [basic phone + paper planner & address book] anyone??
- Replies: 42
- Views: 5917
Re: Anti-smartphone [basic phone + paper planner & address book] anyone??
Smartphones make it difficult to manage work life balance, particularly when your workplace culture is one where people respond to email at all hours. One option to consider is a work phone and a personal phone. Turn off the work phone when you are not working. I have the contrary view - I have found my smartphone makes it far easier to manage work life balance, particularly when your workplace culture is one where people respond to email at all hours. I used to have to boot up my laptop when on vacation and on weekends - with a smartphone I can check in and respond to a crisis so much faster without the need to drag a laptop with me on weekends and vacations like I used to do years ago - no need to leave various phone numbers with folks o...
- Sun Aug 09, 2015 11:43 am
- Forum: Personal Investments
- Topic: Best way to invest in OIL
- Replies: 66
- Views: 19592
Re: Best way to invest in OIL
Best way is to put money in TSM. Or a LifeStrategy / Target Retirement fund.
- Sun Aug 09, 2015 10:18 am
- Forum: Investing - Theory, News & General
- Topic: 3 Reasons to Rejoice Higher Interest Rates
- Replies: 54
- Views: 9938
Re: 3 Reasons to Rejoice Higher Interest Rates
Idle prediction: this is moot. I think 5 years from now we'll be in a similar rate environment.
- Sun Aug 09, 2015 5:46 am
- Forum: Personal Investments
- Topic: I think i've won ?
- Replies: 34
- Views: 8184
Re: I think i've won ?
I hadn't noticed, but you're right.jeff1949 wrote:
I'm not so sure about your screen name however.
- Sat Aug 08, 2015 5:41 pm
- Forum: Personal Investments
- Topic: rollover to 401k?
- Replies: 5
- Views: 994
Re: rollover to 401k?
I would rather keep it in an IRA with Vanguard because you have more control and more choices than in your 401(k). The admiral shares of the investor class of total stock market have an expense ratio of 5 basis points, so you'd be paying 3 basis points more, not counting the $25 fee you mentioned. 3 basis points = $30 for every $100,000 you have invested. You just have to decide how valuable those 3 basis points are to you vs having a direct relationship with Vanguard.
- Sat Aug 08, 2015 5:35 pm
- Forum: Personal Investments
- Topic: Clueless couple needs help with portfolio
- Replies: 10
- Views: 2410
Re: Clueless couple needs help with portfolio
I think you're in pretty good shape overall, but your portfolio is way too messy and complex. It's a shame there's no Target Retirement fund or something like Vanguard's LifeStrategy Moderate Growth, but in the absence of something like that, I'd try to get down to 3 funds. For your husband, I'd put some in the Vanguard Instititional fund (for US stocks), either the Elfun International Equity fund or the Oppenheimer Developed Markets fund (for international stocks), and a bond fund -- I assume the Elfun Income Fund is a bond fund. If not, maybe Templeton Global Bond, depending on the domestic/international mix.
You can roll your 401(k) to Vanguard and invest in the LifeStrategy Moderate Growth fund. That's a good, simple choice.
You can roll your 401(k) to Vanguard and invest in the LifeStrategy Moderate Growth fund. That's a good, simple choice.
- Sat Aug 08, 2015 5:19 pm
- Forum: Personal Investments
- Topic: 35 yrs old: How am I doing?
- Replies: 27
- Views: 7542
Re: 35 yrs old: How am I doing?
I'm sure you'll be surprised to hear that you're doing well.
- Sat Aug 08, 2015 5:17 pm
- Forum: Personal Investments
- Topic: I think i've won ?
- Replies: 34
- Views: 8184
Re: I think i've won ?
Yes, I think you can retire on $6 million.
- Sat Aug 08, 2015 4:24 pm
- Forum: Personal Investments
- Topic: Did a dumb thing [lump summed into market after sitting on cash for years]
- Replies: 111
- Views: 18072
Re: Did a dumb thing [lump summed into market after sitting on cash for years]
Sounds like you went from all cash to all stock, and it sounds like neither of those is an asset allocation that suits you. That's a much bigger issue than when you move to your new asset allocation.
- Thu Aug 06, 2015 6:52 pm
- Forum: Personal Finance (Not Investing)
- Topic: Chase asking for liquid net worth, total net worth...
- Replies: 46
- Views: 15745
Re: Chase asking for liquid net worth, total net worth...
A fiduciary is responsible for managing your portfolio according to a certain legal standard. If they pick investments for you, they have a fiduciary duty. If you pick the investments yourself, they do not. That's all that means.Gnirk wrote: Interesting that the paperwork I signed to open the inherited IRA account states that "JPMS and JPMCC will generally not have fiduciary duties toward you".
- Thu Aug 06, 2015 8:04 am
- Forum: Investing - Theory, News & General
- Topic: Forbes: How much by age
- Replies: 45
- Views: 10999
Re: Forbes: How much by age
Well said.Grt2bOutdoors wrote: How many folks at age 22 (starting out career) know what their expenses will be at age 60, 65, 70? Saving for retirement without knowing the target is like using a compass without a map or guideposts to the target. Then, throw in all this rhetoric about Social Security not being there at retirement, noise and truth about being thrown in the junk pile at age 50+, day to day living costs, etc. Let us know how that calculation works when it looks like this: Expenses (???) - Retirement Income (Zero) = Residual Living Expenses (????????)
- Thu Aug 06, 2015 7:45 am
- Forum: Personal Finance (Not Investing)
- Topic: Transferring large sums from foreign country with rapidly depreciating currency? Loss so far = US$11k
- Replies: 10
- Views: 1730
Re: Transferring large sums from foreign country with rapidly depreciating currency? Loss so far = US$11k
If your future expenses will be USD denominated, you have no reason to hold foreign currency. You have FX risk without any reason to have it. In that case, I would swallow hard, convert everything next week and go on with my life. On the other hand, if you will continue to have expenses in your native country, I'd leave an amount of cash there equal to your anticipated future expenses.Quarantine wrote:
I'm at a loss as to what I should do -- what would you do if you were in my shoes?
- Thu Aug 06, 2015 7:39 am
- Forum: Investing - Theory, News & General
- Topic: Are index funds bad for the economy?
- Replies: 25
- Views: 2400
Re: Are index funds bad for the economy?
I won't speak for the community, but I think the arguments you've linked are absurd. People get paid to say something, anything, and this was a reach. But it worked. People are reading the nonsense, and you're actively trying to debate it.mr.curious wrote: I'm very curious what this community thinks of this issue.
- Thu Aug 06, 2015 6:25 am
- Forum: Personal Finance (Not Investing)
- Topic: Net worth progress
- Replies: 3
- Views: 1888
Re: Net worth progress
Some factors which have not really helped: - My propensity to dine out instead of stay home and cook Anyway, just wanted to share! Any advice on ways that I can improve, PLEASE let me know! And also share what worked for your path to net worth progression, what didn't, etc. First, congrats, and keep up the good work. Second, I can sympathize with your desire to dine out a lot. One way to make that less damaging to your budget is to see if you can get two meals out of your restaurant dining rather than one. In the U.S., restaurant portion sizes are notoriously large. See if you can eat half, take half home and then get two meals out of one visit to the restaurant. There are also health (read weight management) benefits from doing that. Also...
- Wed Aug 05, 2015 9:03 pm
- Forum: Investing - Theory, News & General
- Topic: New $1 additional investment minimum at Vanguard
- Replies: 28
- Views: 7870
Re: New $1 additional investment minimum at Vanguard
Seems like a policy that would increase costs for Vanguard. Oh well.
- Wed Aug 05, 2015 8:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: What to do with a windfall
- Replies: 16
- Views: 2893
Re: What to do with a windfall
Fortunately, all of the alternatives you listed are good ideas. It's not like there's a right choice and three wrong choices among them, and which is "best" is largely subjective / based on personal preference. Typically, when people talk about prepaying the mortgage, I see most people advising against it, reasoning that you should be able to earn a higher return on your investments than you are paying on your mortgage. I hate debt, and I got a lot of satisfaction out of paying my house off very early. Neither course of action is wrong. It's worth noting that your alternative to the third option could be viewed as a compromise between the two approaches, so that might appeal if you're unsure what to do. I will say you should decid...
- Wed Aug 05, 2015 8:02 pm
- Forum: Personal Investments
- Topic: Get to 2.4 million in 10 years
- Replies: 30
- Views: 9464
Re: Get to 2.4 million in 10 years
You have 9 holdings in your taxable account. You should make sure that complexity is earning its place in your portfolio.
- Wed Aug 05, 2015 3:25 pm
- Forum: Personal Consumer Issues
- Topic: Home security system and land line
- Replies: 15
- Views: 2378
Re: Home security system and land line
Curious if anyone has used a company like SimpliSafe that only uses cellular. The cost is substantially less because they don't have to wire your house.
- Wed Aug 05, 2015 9:00 am
- Forum: Investing - Theory, News & General
- Topic: Forbes: How much by age
- Replies: 45
- Views: 10999
Re: Forbes: How much by age
It's not, but very few people are willing to. Thinking about retirement savings this was is a major step up for most people because most people have no plan whatsoever.carolinaman wrote:This may be a good, simple rule of thumb, but one's income needs in retirement are more complicated. Depending upon living expenses, SS, pension, debt, expected longevity and other factors, one may need more or less. It is not that hard to factor these considerations in and come up with a better idea of what your needs are. I think the article should at least mention some other key factors to consider so people will understand that this is just a starting point.
- Wed Aug 05, 2015 8:57 am
- Forum: Personal Investments
- Topic: Not many good [401(k)] options at work...
- Replies: 8
- Views: 1080
Re: Not many good options at work...
I have a 401k with my new employer and the options are somewhat limited. I also have a rollover IRA with Fidelity and a Roth IRA with Vanguard. How would i go about setting up a 3 fund portfolio (80-90% stocks is what I've decided) with the following options from work along with my other 2 IRA accounts: Target Maturity LifePath 2020 Fund LifePath 2025 Fund LifePath 2030 Fund LifePath 2035 Fund LifePath 2040 Fund LifePath 2045 Fund LifePath 2050 Fund LifePath 2055 Fund LifePath 2060 Fund LifePath Retirement Fund If you can live with one fund rather than three, I think LifePath funds are a great, simple, clean solution. Pick the one that matches the allocation to stocks that you're most comfortable with, which I assume might be 2040, 2045 or...
- Wed Aug 05, 2015 8:45 am
- Forum: Investing - Theory, News & General
- Topic: Forbes: How much by age
- Replies: 45
- Views: 10999
Re: Forbes: How much by age
I think the table is too simplistic These tables are really simplistic. I fail to sympathize with the simplistic formulas that say that savings at a given age should be a given factor of current income. Or maybe it's just sour grapes for me since I don't show up as a "prodigious accumulator of wealth". On the other head, I'm currently saving 35%-40% of income or more, so it's not like I am getting settled into the high-salary mode of thinking. It's just a rule of thumb. Everybody likes to criticize rules of thumb and explain why they don't work in all situations, or why there's a better metric, etc. But it's not supposed to be a one-size-fits-all, perfect solution to every problem. It attempts to answer a very complicated questio...
- Wed Aug 05, 2015 7:50 am
- Forum: Personal Consumer Issues
- Topic: Buying a Rolex Watch
- Replies: 171
- Views: 30266
Re: Buying a Rolex Watch
ArthurO spawned a long thread about expensive watches. He wasn't viewing it as an investment, but he concluded there were other expensive watches that were better value. The thread, along with his other threads about what he planned to wear at his wedding, was entertaining.
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viewtopic.php?t=146921
- Tue Aug 04, 2015 11:16 am
- Forum: Personal Investments
- Topic: $13 Million Goal for Early Retirement (am I crazy?)
- Replies: 320
- Views: 83068
Re: $13 Million Goal for Early Retirement (am I crazy?)
You haven't explained how you're going to grow your portfolio from $700,000 to $12 or $13 million. That's going to be very difficult to do.
- Tue Aug 04, 2015 8:37 am
- Forum: Personal Investments
- Topic: All things being equal [Portfolio help, live off dividends]
- Replies: 10
- Views: 1437
Re: All things being equal
If you want one fund, I'd pick LifeStrategy Moderate Growth (60-40) or Life Strategy Conservative Growth (40-60). With that time frame and not knowing anything about your risk tolerance, something close to a 50-50 strategy is a good starting point.
- Mon Aug 03, 2015 4:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: Large purchase with cash, 0% card, or rewards card?
- Replies: 30
- Views: 4336
Re: Large purchase with cash, 0% card, or rewards card?
Have you used Blue Nile before? I'm leery about making such a large purchase online, but the local selection is lacking. I also am the type of person who really has to analyze big purchases, and that is difficult for me in a retail setting. Yes, as I said, I spent about what you're planning to spend, and I purchased through Blue Nile. They're not the only online game in town, but they're very good. There are two main benefits. First, the price will be lower than at any brick and mortar store. When I did my research, I concluded that I saved about 30%. Second, the selection is much, much better. It's almost infinite at Blue Nile. You can specify every parameter you care about -- cut, color, clarity, carat -- and get any combination you want...
- Mon Aug 03, 2015 12:32 pm
- Forum: Personal Investments
- Topic: Total Bond Market vs. Interm-Term Treasury
- Replies: 42
- Views: 8922
Re: Total Bond Market vs. Interm-Term Treasury
I don't think about it. I like the idea of owning everything, so I own TBM. I'll choose more diversification over less unless I can think of a compelling reason not to.
- Mon Aug 03, 2015 12:17 pm
- Forum: Personal Finance (Not Investing)
- Topic: Large purchase with cash, 0% card, or rewards card?
- Replies: 30
- Views: 4336
Re: Large purchase with cash, 0% card, or rewards card?
I'd use a rewards card or a cash back card, and I'd buy from Blue Nile.
Side note: Don't apologize for the cost of the ring. Inflation-adjusted, I probably spent about the same or a little more, and my wife and I both still love what I bought. I'd do it again in a heartbeat.
Side note 2: I can't imagine how you've gotten by this long without having a credit card. As someone above said, I'd actually recommend having two. One can be a backup in case the first ever gets compromised.
Side note: Don't apologize for the cost of the ring. Inflation-adjusted, I probably spent about the same or a little more, and my wife and I both still love what I bought. I'd do it again in a heartbeat.
Side note 2: I can't imagine how you've gotten by this long without having a credit card. As someone above said, I'd actually recommend having two. One can be a backup in case the first ever gets compromised.
- Mon Aug 03, 2015 8:52 am
- Forum: Personal Finance (Not Investing)
- Topic: Credit Card Rewards (Travel)
- Replies: 284
- Views: 60416
Re: Credit Card Rewards (Travel)
What MS methods are you using? Seems like the easy methods are drying up, but there's still redbird/bluebird/serve.Drew777 wrote: Minimum spending requirements are irrelevant to me with the amount of manufactured spending I do. I'm not sure what I'll do when the annual fees come due, but I may actually be better off paying the fees. I do so much MS that I may actually lose money by cancelling them since I will have less available credit.
- Sun Aug 02, 2015 10:24 pm
- Forum: Personal Investments
- Topic: Do I need other assets beside a 4 fund portfolio?
- Replies: 10
- Views: 1768
Re: Do I need other assets beside a 4 fund portfolio?
Also, I just really feel 60/40 is right for me right now. My granddad advised I'd be crazy not to be 100% stock at my age and I was leaving money on the table, but it wont do any good to invest if I freak out and sell next time the market takes a dive Stick to your guns. If you know yourself, you're ahead of an awful lot of people. Here's a good article in defense of 60/40. http://web.archive.org/web/20061214061904/http://dfmadvisors.com/pdf/Bernstein6040.pdf The ideal asset allocation for today’s market and for the future is more conservative than you thought ___________ The late Peter Bernstein, who penned the classic must-read history of risk, “Against The Gods,” mounted a simple, thoughtful and timeless defense of 60/40 in a 2002 Bloom...
- Sun Aug 02, 2015 9:24 pm
- Forum: Personal Investments
- Topic: Do I need other assets beside a 4 fund portfolio?
- Replies: 10
- Views: 1768
Re: Do I need other assets beside a 4 fund portfolio?
That one fund is all you need. I forget the actual number, but I believe it holds approximately 20,000 individual securities. It's very diversified, and it's beautiful in its simplicity.
- Sun Aug 02, 2015 8:18 pm
- Forum: Investing - Theory, News & General
- Topic: [How often do you check on your investments?]
- Replies: 43
- Views: 4176
Re: [How often do you check on your investments?]
Twice a year I calculate my net worth and enter everything into a spreadsheet.
- Sun Aug 02, 2015 7:57 pm
- Forum: Investing - Theory, News & General
- Topic: Are equities really as risky as anyone thinks?
- Replies: 271
- Views: 25246
Re: Are equities really as risky as anyone thinks?
I know you're planning on accumulating 50-100x your annual expenses and therefore passing along everything to your heirs, but how can you be so sure you'll simply never need what you're investing? If you ever have health issues, if you ever lose your job, if you ever get married, have kids, buy a home, etc., you're going to need some of your money. I can't understand why you're so certain that your time horizon is essentially limitless.rca1824 wrote:If you look at valuations and know the market is undervalued, you can simply wait until the valuation is higher . . .
So by a combination of patience and flexibility, one can virtually entirely eliminate the speculative return component.
- Sun Aug 02, 2015 7:07 pm
- Forum: Personal Investments
- Topic: Are bond mutual funds better than other types of bonds?
- Replies: 9
- Views: 1582
Re: Are bond mutual funds better than other types of bonds?
I disagree strongly that one should own individual bonds rather than bond funds. Did the show say why they think bonds are better? Sometimes the argument is made that bonds are safer because if rates rise, you can avoid the loss on an individual bond by holding to maturity, whereas bond funds don't have a maturity date. That's flawed reasoning. Bond math makes it irrelevant whether you hold a bond to maturity or not. It doesn't change your returns whether you sell, realize a loss and invest the proceeds in a new bond with a higher interest coupon or whether you hold, resist realizing the loss and reap the new, higher, now market yield on your existing bond. The reason bond funds are better than individual bonds is the same as the reason why...
- Sun Aug 02, 2015 4:45 pm
- Forum: Personal Investments
- Topic: Would it be worth the costs to move to a 3 fund portfolio from what I have?
- Replies: 16
- Views: 2321
Re: Would it be worth the costs to move to a 3 fund portfolio from what I have?
1. My Roth IRA is currently invested in the Vanguard 2050 Retirement Fund (VFIFX). The ER is 0.18 however if I were to switch to a 3 fund portfolio I could get the admiral shares which would drastically lower the costs. If I did 60% US Stock, 30% Intl Stock and 10% Bond I would be able to reduce the ER to 0.079 which is much lower than 0.18. I like the simplicity of Target Retirement and Life Strategy funds. Translate the expense ratio you noted into dollars. You're talking about 11 basis points. For every $100,000 you have invested, that's $110. Some would say there's no point in spending $110 if you don't have to, but I think you get something valuable for it in return. First, it's the height of simplicity, and simplicity is a wonderful ...
- Sun Aug 02, 2015 12:40 pm
- Forum: Investing - Theory, News & General
- Topic: Why the obsession with Gold?
- Replies: 18
- Views: 2646
Re: Why the obsession with Gold?
Yes, but I don't think the physical buyers of gold invest in TSM in order to get the market weight of those companies into their portfolios. The OP is asking why people want the physical metal.rgs92 wrote:Isn't some small percentage of the Total Stock Market index in gold or precious metal stocks?