Search found 542 matches

by chicagobear
Wed Sep 19, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Taking Over Management of $7M Portfolio - Need Review/Help Allocating
Replies: 50
Views: 4156

Re: Taking Over Management of $7M Portfolio - Need Review/Help Allocating

I would make sure that the loans to individuals are properly documented so they don't try to claim they were gifts when she passes.
by chicagobear
Tue Jul 24, 2018 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: How do you deal with a bear market?
Replies: 35
Views: 2542

Re: How do you deal with a bear market?

I only put money into stocks that I don't think I will need to touch (barring some sort of emergency) for at least ten years, and then just ride it out.
by chicagobear
Tue Jul 17, 2018 11:06 am
Forum: Investing - Help with Personal Investments
Topic: House purchase: pay cash or get mortgage?
Replies: 16
Views: 2566

Re: House purchase: pay cash or get mortgage?

If you were holding for 30 years, I would definitely go with a fixed rate mortgage to lock in today's rates. If it is only for two years, I think I'd pay cash if you comfortably have enough liquidity.
by chicagobear
Tue Jul 17, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Should I reduce the death benefit of my term life policy?
Replies: 20
Views: 1102

Re: Should I reduce the death benefit of my term life policy?

It doesn't sound like you need insurance at all at this point.
by chicagobear
Tue Jul 17, 2018 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Use TIPS for multi-year RMDs as a risk reduction strategy?
Replies: 3
Views: 575

Re: Use TIPS for multi-year RMDs as a risk reduction strategy?

I prefer Tbills to TIPS since I don't trust the Fedgov to accurately calculate the inflation component.
by chicagobear
Tue Jul 17, 2018 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Index funds
Replies: 6
Views: 659

Re: Index funds

VT- which is the Vanguard Total World ETF. The US is historically expensive, but the rest of the world is not so it would give you more downside protection, I think.
by chicagobear
Mon Mar 05, 2018 8:23 am
Forum: Investing - Theory, News & General
Topic: Treasury Money Market Funds
Replies: 12
Views: 2535

Re: Treasury Money Market Funds

You can buy Treasuries for free through Fidelity and they will keep track of them and automatically roll them for you.
by chicagobear
Mon Mar 05, 2018 8:13 am
Forum: Investing - Help with Personal Investments
Topic: Lend Money for Mortgage or Buy Bonds?
Replies: 11
Views: 793

Re: Lend Money for Mortgage or Buy Bonds?

What would the loan to value be on the loan? If it is a decent level, I think it would be safe enough but for the risk of rising interest rates. The cost of a lawyer to document the mortgage would come into play as well.
by chicagobear
Sun Mar 04, 2018 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total World Stock ETF (VT) as a proxy for an internationally diversified portfolio?
Replies: 20
Views: 3398

Re: Vanguard Total World Stock ETF (VT) as a proxy for an internationally diversified portfolio?

I like simply buying VT for a set it and forget about it equity portfolio. I think a reasonable approach is to keep what you will spend over ten years in fixed income and the rest in VT, directing the dividends to the fixed income each year. Can't get much simpler than that.
by chicagobear
Wed Feb 07, 2018 5:45 am
Forum: Investing - Help with Personal Investments
Topic: Genius Needed -- Thoughts on My Asset Allocation? [UK]
Replies: 26
Views: 2123

Re: Genius Needed -- Thoughts on My Asset Allocation?

I would put ten years worth of expenses into cash so you don't have to touch the stocks, and then the balance into Vanguard World (VT) and let it ride.
by chicagobear
Sun May 28, 2017 6:42 am
Forum: Personal Finance (Not Investing)
Topic: Renting a condo but owner didn't pay property taxes
Replies: 10
Views: 3211

Re: Renting a condo but owner didn't pay property taxes

Invariably the owner pays the taxes and redeems the property in time unless it is a ghetto property which is being abandoned.
by chicagobear
Tue May 09, 2017 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: Parking Cash at Fidelity
Replies: 10
Views: 3051

Re: Parking Cash at Fidelity

My assets are at Fidelity and I use linked online savings accounts at Goldman Sachs and Barclays for my cash.
by chicagobear
Tue May 09, 2017 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Where to park my fat stacks [money]?
Replies: 20
Views: 3056

Re: Where to park my fat stacks [money]?

Thanks. I've heard the book Bernstein book mentioned. I should buy it. If I recall he heavily advocated treasuries ? I'm not familiar with Floating Rate Notes. My homework to read up on them. Why are they better than intermediate treasury fund or say 5yr ladder ? I'm familiar with Permanent Portfol...
by chicagobear
Tue May 09, 2017 11:19 am
Forum: Investing - Help with Personal Investments
Topic: Where to park my fat stacks [money]?
Replies: 20
Views: 3056

Re: Where to park my fat stacks [money]?

You could read up on the late Harry Browne's Permanent Portfolio. It is 25% equities, 25% long term treasuries, 25% short term treasuries, and 25% gold. I'd read William J. Bernstein's Deep Risk as well. It has good insights on how to allocate assets for the long term. I'd probably put 40% in the Va...
by chicagobear
Fri Mar 17, 2017 7:26 am
Forum: Investing - Help with Personal Investments
Topic: I am in US equities and cash. Am I an idiot?
Replies: 43
Views: 6087

Re: I am in US equities and cash. Am I an idiot?

I'd go with total world (VT) rather than just US stocks, but putting money you won't need for ten years in stocks with the rest in cash is pretty much what I do (I own gold too, but I consider that sort of like part of my cash). Long term bond rates would have to go up quite a bit before I'd be inte...
by chicagobear
Sun Mar 12, 2017 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: US Treasuries interest > CD interest = no brainer?
Replies: 7
Views: 1204

Re: US Treasuries interest > CD interest = no brainer?

Goldman Sachs Bank pays 1.05% in an FDIC insured savings account.
by chicagobear
Mon Mar 06, 2017 4:49 pm
Forum: Investing - Theory, News & General
Topic: international bonds a good idea?
Replies: 20
Views: 4246

Re: international bonds a good idea?

I certainly could see having foreign currency bonds as a partial hedge to US dollar holdings, but I don't see any point in having hedged bonds.
by chicagobear
Sat Mar 04, 2017 12:59 pm
Forum: Investing - Theory, News & General
Topic: Does anyone own gold?
Replies: 117
Views: 15406

Re: Does anyone own gold?

10% in bullion and 15% in mining shares. They are mostly uncorrelated to my other financial assets.
by chicagobear
Tue Feb 07, 2017 9:53 am
Forum: Investing - Theory, News & General
Topic: Any good alternative to TIPS in taxable account?
Replies: 15
Views: 1613

Re: Any good alternative to TIPS in taxable account?

You can get 1% in some online savings accounts with FDIC insurance.
by chicagobear
Sat Apr 23, 2016 12:03 pm
Forum: Investing - Theory, News & General
Topic: Did TIPS Really work?
Replies: 41
Views: 4928

Re: Did TIPS Really work?

I've never really understood why the inflation adjustment is taxable. That seems to undermine the usefulness of TIPS. In a highly inflationary period, the adjustment which is supposed to make you whole gets taxed away. It would make more sense to have the principal increase due to inflation be tax ...
by chicagobear
Sat Apr 23, 2016 10:51 am
Forum: Investing - Theory, News & General
Topic: Did TIPS Really work?
Replies: 41
Views: 4928

Re: Did TIPS Really work?

I've never really understood why the inflation adjustment is taxable. That seems to undermine the usefulness of TIPS. In a highly inflationary period, the adjustment which is supposed to make you whole gets taxed away. It would make more sense to have the principal increase due to inflation be tax f...
by chicagobear
Wed Jan 28, 2015 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Financial Considerations for Infertility Treatments
Replies: 25
Views: 3211

Re: Financial Considerations for Infertility Treatments

My cousin is (I think) 44 and has spent over $300,000 on IVF (with her own eggs) with no success. I think she is finally giving up. She didn't try to start having children until she got married a couple of years ago. Cinderella stayed too late at the ball. I hope my 27 year old niece is taking notes.
by chicagobear
Sun Jan 25, 2015 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: large cash gift from parent - tax considerations
Replies: 32
Views: 4140

Re: large cash gift from parent - tax considerations

If she doesn't have $5 million and therefore no reason to worry about using up the exemption, she could just give you the money and fill out the gift tax form. No tax will be due.
by chicagobear
Sat Jan 24, 2015 9:53 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on Brokerage CDs?
Replies: 25
Views: 2145

Re: Advice on Brokerage CDs?

I'd put the money into an online savings account like GE Capital where you can earn 1.05% right now. If rates go up, you'd rather have the money there than locked up in a CD.
by chicagobear
Tue Jan 13, 2015 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: How to transfer estate without including tax man
Replies: 27
Views: 3564

Re: How to transfer estate without including tax man

You don't face a Federal estate tax unless you have assets over $5 million and change. To give her income with the principal going elsewhere upon her death, you will need to have your estate set up a trust. You could look into having your estate buy her a lifetime annuity and then the remaining asse...
by chicagobear
Sat Jan 10, 2015 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: In charge of $500k for my mom. Asking for help.
Replies: 19
Views: 2749

Re: In charge of $500k for my mom. Asking for help.

So how about this sort of framework? I'll assume that she spends $50,000 per year and will receive $50,000 a year in alimony for 8 years. I'll assume that she will get Social Security at that point in the amount of $25,000. So her first 8 years is covered by alimony and needs $25,000 per year afterw...
by chicagobear
Sat Jan 10, 2015 10:12 am
Forum: Investing - Help with Personal Investments
Topic: In charge of $500k for my mom. Asking for help.
Replies: 19
Views: 2749

Re: In charge of $500k for my mom. Asking for help.

40% stock/60% fixed income sounds ok, but I would absolutely stay short on the fixed income due to the risk of rising rates. You can get 1% in an online savings account these days. If I were starting from scratch I'd probably be at 40% Vanguard Total World (VT) and 60% cash, but I suppose a short te...
by chicagobear
Sat Jan 10, 2015 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Help with New Portfolio - 600k Cash to Invest - 29 Years Old
Replies: 7
Views: 1776

Re: Help with New Portfolio - 600k Cash to Invest - 29 Years

Put it into Vanguard Total World (VT) and let it ride...
by chicagobear
Wed Oct 15, 2014 5:24 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage from family member
Replies: 21
Views: 2313

Re: Mortgage from family member

I think a mortgage would be ok as long as you don't lend more than (say) 80% of the house's value. Even if they can't make the current payments at some point, they can't stiff you since the house can't be sold without paying you off.
by chicagobear
Wed Jul 16, 2014 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Inherited a promissory note--what to do?
Replies: 22
Views: 4614

Re: Inherited a promissory note--what to do?

I would file a lawsuit. He probably won't contest it and then you would have a judgment that would be more useful, especially for a claim against his estate.
by chicagobear
Wed Jul 09, 2014 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Take the money and run? (Pension Buyout Offer)
Replies: 15
Views: 2507

Re: Take the money and run? (Pension Buyout Offer)

Take the cash. Inflation will drive the value of a non-COLA pension to close to zero over that long a period of time, IMO.
by chicagobear
Sat Jun 21, 2014 9:11 am
Forum: Investing - Help with Personal Investments
Topic: New Portfolio: what to do with 2.5M to 5.5M?
Replies: 38
Views: 5248

Re: New Portfolio: what to do with 2.5M to 5.5M?

livesoft wrote:
chicagobear wrote:I wouldn't touch […] gold or even think about it.
There. Fixed that for you.
You can disagree without being a jerk.
by chicagobear
Sat Jun 21, 2014 6:11 am
Forum: Investing - Help with Personal Investments
Topic: New Portfolio: what to do with 2.5M to 5.5M?
Replies: 38
Views: 5248

Re: New Portfolio: what to do with 2.5M to 5.5M?

I would put ten years worth of expenses in FDIC insured savings accounts and/or short term Treasuries, 25% in gold bullion, and the balance in the Vanguard World Stock Fund (VT). I'd direct the dividends to the savings accounts and sell stock if necessary to replenish the cash. I wouldn't touch the ...
by chicagobear
Sun Jun 15, 2014 5:59 am
Forum: Investing - Theory, News & General
Topic: Brett Arends's "Perfect Portfolio" Comments?
Replies: 24
Views: 2927

Re: Brett Arends's "Perfect Portfolio" Comments?

I think he'd be better off with Scott Burns's Margarita Portfolio- one third each in Total Stock Market, Total International, and TIPS.
by chicagobear
Mon Jun 09, 2014 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Named trustee on spendthrift trust
Replies: 5
Views: 955

Re: Named trustee on spendthrift trust

My husband's will stipulates his daughter's half of his estate will be in a spendthrift trust (about $1.4 million), with her brother as the trustee (he is an attorney, but had nothing to do with drawing up the trust except to ask his dad to bequeath her $100,000 up front from her half to "soften th...
by chicagobear
Thu May 29, 2014 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Pay off huge student loan vs Investing
Replies: 49
Views: 6467

Re: Pay off huge student loan vs Investing

No way would I pay off a long term 2% loan. That will be worth a lot if (when) rates rise. In fact, I'd be willing to save any excess cash in a .80% savings account rather than pre-pay the loan, realizing that I have a negative arbitrage situation for a while.
by chicagobear
Wed May 28, 2014 6:35 am
Forum: Personal Finance (Not Investing)
Topic: Pre-nup at only $1M networth, do I need it?
Replies: 199
Views: 17188

Re: Pre-nup at only $1M networth, do I need it?

Momus wrote:
Yes, my parents will most likely give their assets to me since I am two "sons" in the family (stupid Chinese culture I know).
What do you mean by two sons?
by chicagobear
Tue May 27, 2014 10:44 am
Forum: Investing - Theory, News & General
Topic: Do you need international bonds?
Replies: 29
Views: 5465

Re: Do you need international bonds?

I can see owning unhedged foreign bonds to protect against US dollar debasement (although I personally prefer gold bullion) but don't see the point of owning hedged foreign bonds. Aren't those effectively dollar bonds due to the hedging?
by chicagobear
Tue May 27, 2014 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Help with wife's student loans
Replies: 26
Views: 3890

Re: Help with wife's student loans

Presently we will stay the course. I may try asking Wells Fargo if they'll accept $1,000 a month as a good enough payment for another couple years due to financial hardship (the repayment will be about $1300 a month plus about $200 in federal loans). We're breaking almost even on everything current...
by chicagobear
Fri May 23, 2014 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Paying of debt after Father in Laws death
Replies: 27
Views: 4213

Re: Paying of debt after Father in Laws death

I think what to do depends on whether there is equity in the house. If there isn't, then bankruptcy should be evaluated. She can probably keep the 401K even if she files bankrutpcy so I wouldn't take money out to pay creditors.
by chicagobear
Mon May 12, 2014 6:12 am
Forum: Personal Finance (Not Investing)
Topic: Helping cash poor, land rich relative
Replies: 26
Views: 5432

Re: Helping cash poor, land rich relative

Make a loan to her with the property as collateral with the loan to be repaid after she dies and the property is sold.
by chicagobear
Sun Apr 20, 2014 5:21 am
Forum: Investing - Theory, News & General
Topic: Retirement defeasance
Replies: 29
Views: 3982

Re: Retirement defeasance

I would be uncomfortable having so much of my net worth vulnerable to inflation of the US dollar. I'd have a lot of equities and gold in addition to fixed income.
by chicagobear
Sun Apr 20, 2014 5:16 am
Forum: Investing - Theory, News & General
Topic: Book for 20 Year Old Beginner
Replies: 16
Views: 1989

Re: Book for 20 Year Old Beginner

sometimesinvestor wrote:I like "the only investment guide you will ever need" by Andrew Tobias though it is not Truly Boglehead
I gave this to my nephew when he graduated from college. Highly recommended.
by chicagobear
Wed Apr 09, 2014 10:25 am
Forum: Investing - Theory, News & General
Topic: Investing in foreign government bonds - theory and practice
Replies: 19
Views: 1911

Re: Investing in foreign government bonds - theory and pract

Gold bullion would do well if the US government defaulted or hyperinflated its debts away.
by chicagobear
Wed Mar 12, 2014 5:51 am
Forum: Investing - Theory, News & General
Topic: William Bernstein-When you've won the game, why keep playing
Replies: 280
Views: 48779

Re: William Bernstein-When you've won the game, why keep pla

I certainly understand taking some money off the table due to the risk in stocks when you don't have enough time to make it back due to your age, but I wouldn't put it into bonds at current interest rates. I believe that bonds will be a terrible investment for quite a while due to rising interest ra...
by chicagobear
Wed Mar 12, 2014 5:45 am
Forum: Personal Finance (Not Investing)
Topic: Child Support... what counts?
Replies: 27
Views: 2091

Re: Child Support... what counts?

Jerrybaby wrote:Divorce is such a horrible thing. I'm on the tail end of mine now. I feel for you OP.
I didn't see any reference to marriage, alimony, or divorce so It sounds like the child is illegitimate.
by chicagobear
Sat Mar 08, 2014 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Tipping for take out
Replies: 74
Views: 10535

Re: Tipping for take out

Tipping for carry out? *confused look* I wouldn't even consider such a thing.
by chicagobear
Tue Mar 04, 2014 5:50 am
Forum: Personal Finance (Not Investing)
Topic: Purchase farmland or sell it?
Replies: 34
Views: 3713

Re: Purchase farmland or sell it?

Now would be an excellent time to sell farmland.
by chicagobear
Sat Mar 01, 2014 4:07 pm
Forum: Personal Consumer Issues
Topic: Purchasing physical gold??
Replies: 71
Views: 12294

Re: Purchasing physical gold??

Apmex and Montana Rarities. Tulving is supposedly way behind in his deliveries and is not recommended.
by chicagobear
Fri Feb 28, 2014 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Concerns re: Relocating to Illinois (Chicago)
Replies: 40
Views: 4018

Re: Concerns re: Relocating to Illinois (Chicago)

Also rcjchicity- where in west Lakeview are you? Thats my hood (Addison/Ashland), and I'm looking to buy a condo in the vicinity in the near future. Roscoe Village. Still getting used to the "suburb in the city" kind of feel. But, baby #1 is on the way, so we fit the neighborhood demographic. Rosco...