Search found 543 matches
- Fri Jun 14, 2019 4:10 pm
- Forum: Personal Investments
- Topic: Total World Bond (BNDW) vs Total International Bond (BNDX ) thoughts?
- Replies: 2
- Views: 1691
Re: Total World Bond (BNDW) vs Total International Bond (BNDX ) thoughts?
I don't understand the point of a bond fund which hedges the foreign currency back to the US dollar. I would want to own foreign bonds to protect me against dollar weakness, but this won't do that.
- Wed Sep 19, 2018 10:16 am
- Forum: Personal Investments
- Topic: Taking Over Management of $7M Portfolio - Need Review/Help Allocating
- Replies: 49
- Views: 5483
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.
- Tue Jul 24, 2018 3:21 pm
- Forum: Personal Investments
- Topic: How do you deal with a bear market?
- Replies: 35
- Views: 3225
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.
- Tue Jul 17, 2018 11:06 am
- Forum: Personal Investments
- Topic: House purchase: pay cash or get mortgage?
- Replies: 16
- Views: 3278
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.
- 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: 1489
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.
- Tue Jul 17, 2018 10:48 am
- Forum: Personal Investments
- Topic: Use TIPS for multi-year RMDs as a risk reduction strategy?
- Replies: 3
- Views: 869
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.
- Tue Jul 17, 2018 10:46 am
- Forum: Personal Investments
- Topic: Index funds
- Replies: 6
- Views: 834
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.
- Mon Mar 05, 2018 7:23 am
- Forum: Investing - Theory, News & General
- Topic: Treasury Money Market Funds
- Replies: 12
- Views: 4054
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.
- Mon Mar 05, 2018 7:13 am
- Forum: Personal Investments
- Topic: Lend Money for Mortgage or Buy Bonds?
- Replies: 11
- Views: 1003
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.
- Sun Mar 04, 2018 8:35 am
- Forum: Personal Investments
- Topic: Vanguard Total World Stock ETF (VT) as a proxy for an internationally diversified portfolio?
- Replies: 20
- Views: 5379
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.
- Wed Feb 07, 2018 4:45 am
- Forum: Non-US Investing
- Topic: Genius Needed -- Thoughts on My Asset Allocation? [UK]
- Replies: 26
- Views: 3176
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.
- 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: 3562
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.
- Tue May 09, 2017 1:52 pm
- Forum: Personal Investments
- Topic: Parking Cash at Fidelity
- Replies: 10
- Views: 3981
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.
- Tue May 09, 2017 1:28 pm
- Forum: Personal Investments
- Topic: Where to park my fat stacks [money]?
- Replies: 20
- Views: 3449
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 Portfolio. The gold allocation is a bit much for my stomach though. I think that has an historical bias (70s). I don't have the stomach for 25% long bonds. I would rather combine them and cash to make it intermediate. FRNs are better than intermediate bonds in a rising rate environment since they adjust to Tbill rates (with a slight premium). I don't believe in locking in long term interest rates as a creditor at current levels, although that's been the...
- Tue May 09, 2017 11:19 am
- Forum: Personal Investments
- Topic: Where to park my fat stacks [money]?
- Replies: 20
- Views: 3449
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 Vanguard Total World ETF (VT), 40% in US Treasury Floating Rate Notes (2 year treasuries with rates that float with Tbills), and 20% in the gold ETF (GLD).
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 Vanguard Total World ETF (VT), 40% in US Treasury Floating Rate Notes (2 year treasuries with rates that float with Tbills), and 20% in the gold ETF (GLD).
- Fri Mar 17, 2017 7:26 am
- Forum: Personal Investments
- Topic: I am in US equities and cash. Am I an idiot?
- Replies: 43
- Views: 6625
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 interested. I don't think the risk/reward is good enough for lending your money long term at a fixed rate right now.
- Sun Mar 12, 2017 8:24 pm
- Forum: Personal Investments
- Topic: US Treasuries interest > CD interest = no brainer?
- Replies: 7
- Views: 1456
Re: US Treasuries interest > CD interest = no brainer?
Goldman Sachs Bank pays 1.05% in an FDIC insured savings account.
- Mon Mar 06, 2017 3:49 pm
- Forum: Investing - Theory, News & General
- Topic: international bonds a good idea?
- Replies: 20
- Views: 4997
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.
- Sat Mar 04, 2017 11:59 am
- Forum: Investing - Theory, News & General
- Topic: Does anyone own gold?
- Replies: 148
- Views: 21548
Re: Does anyone own gold?
10% in bullion and 15% in mining shares. They are mostly uncorrelated to my other financial assets.
- Tue Feb 07, 2017 8:53 am
- Forum: Investing - Theory, News & General
- Topic: Any good alternative to TIPS in taxable account?
- Replies: 15
- Views: 2175
Re: Any good alternative to TIPS in taxable account?
You can get 1% in some online savings accounts with FDIC insurance.
- Sat Apr 23, 2016 12:03 pm
- Forum: Investing - Theory, News & General
- Topic: Did TIPS Really work?
- Replies: 44
- Views: 6288
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 free and you are taxed on the interest on the adjusted principal. Gain in any other investment is taxable. Holding a nominal bond, the interest paid is taxable in the year received. That interest could be interpreted as increment to inflation plus real interest paid. Also, if the real value of a nominal bond is to be maintained, that portion of the interest would have to be reinvested. TIPS and nominal bonds get the same deal taxwise, so that doe...
- Sat Apr 23, 2016 10:51 am
- Forum: Investing - Theory, News & General
- Topic: Did TIPS Really work?
- Replies: 44
- Views: 6288
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 free and you are taxed on the interest on the adjusted principal.
- Wed Jan 28, 2015 6:50 am
- Forum: Personal Finance (Not Investing)
- Topic: Financial Considerations for Infertility Treatments
- Replies: 25
- Views: 3854
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.
- Sun Jan 25, 2015 4:24 pm
- Forum: Personal Finance (Not Investing)
- Topic: large cash gift from parent - tax considerations
- Replies: 32
- Views: 4757
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.
- Sat Jan 24, 2015 8:53 pm
- Forum: Personal Investments
- Topic: Advice on Brokerage CDs?
- Replies: 25
- Views: 2729
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.
- Tue Jan 13, 2015 11:39 am
- Forum: Personal Investments
- Topic: How to transfer estate without including tax man
- Replies: 27
- Views: 3966
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 assets could go to charity right away.
- Sat Jan 10, 2015 1:09 pm
- Forum: Personal Investments
- Topic: In charge of $500k for my mom. Asking for help.
- Replies: 19
- Views: 3064
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 afterward. You take $25,000 x 12 or $300,000 and put it into cash or TIPS to cover the next 12 years. The balance of the money ($200,000) can be put into global stocks and doesn't have to be touched for 20 years when she is 78 and it can be used to start supplementing her SS once the cash is used up.
- Sat Jan 10, 2015 9:12 am
- Forum: Personal Investments
- Topic: In charge of $500k for my mom. Asking for help.
- Replies: 19
- Views: 3064
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 term bond fund would work too. The thinking behind Total World is that even if the US drops, the rest of the world might do ok since it hasn't run up as much the last few years. How about something like Vanguard Wellesley or Wellington supplemented with cash?
- Sat Jan 10, 2015 9:01 am
- Forum: Personal Investments
- Topic: Help with New Portfolio - 600k Cash to Invest - 29 Years Old
- Replies: 7
- Views: 1955
Re: Help with New Portfolio - 600k Cash to Invest - 29 Years
Put it into Vanguard Total World (VT) and let it ride...
- Wed Oct 15, 2014 5:24 am
- Forum: Personal Finance (Not Investing)
- Topic: Mortgage from family member
- Replies: 21
- Views: 2619
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.
- Wed Jul 16, 2014 7:28 am
- Forum: Personal Finance (Not Investing)
- Topic: Inherited a promissory note--what to do?
- Replies: 22
- Views: 5913
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.
- Wed Jul 09, 2014 9:54 am
- Forum: Personal Finance (Not Investing)
- Topic: Take the money and run? (Pension Buyout Offer)
- Replies: 15
- Views: 2711
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.
- Sat Jun 21, 2014 9:11 am
- Forum: Personal Investments
- Topic: New Portfolio: what to do with 2.5M to 5.5M?
- Replies: 38
- Views: 5810
Re: New Portfolio: what to do with 2.5M to 5.5M?
You can disagree without being a jerk.livesoft wrote:There. Fixed that for you.chicagobear wrote:I wouldn't touch […] gold or even think about it.
- Sat Jun 21, 2014 6:11 am
- Forum: Personal Investments
- Topic: New Portfolio: what to do with 2.5M to 5.5M?
- Replies: 38
- Views: 5810
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 gold or even think about it as it would only be there for last resort wealth.
- Sun Jun 15, 2014 5:59 am
- Forum: Investing - Theory, News & General
- Topic: Brett Arends's "Perfect Portfolio" Comments?
- Replies: 24
- Views: 3460
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.
- Mon Jun 09, 2014 8:47 pm
- Forum: Personal Finance (Not Investing)
- Topic: Named trustee on spendthrift trust
- Replies: 5
- Views: 1111
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 the blow" of the trust.) The trust will pay out all income to her, but no principal. I like the idea of a corporate co-trustee, such as Vanguard, and will pass that idea on to my husband and step-son. Just curious who the principal will go to eventually. Does she have children? My mother has set up her revocable trust so that my half-brother's (her step-son) share goes into a trust given that he is not financially responsible with the inc...
- Thu May 29, 2014 10:38 am
- Forum: Personal Finance (Not Investing)
- Topic: Pay off huge student loan vs Investing
- Replies: 49
- Views: 7977
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.
- 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: 19549
Re: Pre-nup at only $1M networth, do I need it?
What do you mean by two sons?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).
- Tue May 27, 2014 10:44 am
- Forum: Investing - Theory, News & General
- Topic: Do you need international bonds?
- Replies: 29
- Views: 7225
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?
- Tue May 27, 2014 9:46 am
- Forum: Personal Finance (Not Investing)
- Topic: Help with wife's student loans
- Replies: 26
- Views: 4265
Re: Help with wife's student loans
They have the father as a co-signer and it sounds like they could collect from him if they had to, so I would definitely try to work something out with Wells rather than just defaulting. Also, I would not consider someone who has assets and no debt and pays cash for everything to have "bad credit."ibuprofelin wrote:
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 currently.
- Fri May 23, 2014 4:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Paying of debt after Father in Laws death
- Replies: 27
- Views: 4537
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.
- Mon May 12, 2014 6:12 am
- Forum: Personal Finance (Not Investing)
- Topic: Helping cash poor, land rich relative
- Replies: 26
- Views: 5739
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.
- Sun Apr 20, 2014 5:21 am
- Forum: Investing - Theory, News & General
- Topic: Retirement defeasance
- Replies: 29
- Views: 4248
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.
- Sun Apr 20, 2014 5:16 am
- Forum: Investing - Theory, News & General
- Topic: Book for 20 Year Old Beginner
- Replies: 28
- Views: 3449
Re: Book for 20 Year Old Beginner
I gave this to my nephew when he graduated from college. Highly recommended.sometimesinvestor wrote:I like "the only investment guide you will ever need" by Andrew Tobias though it is not Truly Boglehead
- Wed Apr 09, 2014 10:25 am
- Forum: Investing - Theory, News & General
- Topic: Investing in foreign government bonds - theory and practice
- Replies: 19
- Views: 2448
Re: Investing in foreign government bonds - theory and pract
Gold bullion would do well if the US government defaulted or hyperinflated its debts away.
- 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: 58716
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 rates. I might be wrong, but the risk/reward is way out of kilter with bonds. I keep my fixed income investments in savings accounts earning .90%.
- Wed Mar 12, 2014 5:45 am
- Forum: Personal Finance (Not Investing)
- Topic: Child Support... what counts?
- Replies: 27
- Views: 2559
Re: Child Support... what counts?
I didn't see any reference to marriage, alimony, or divorce so It sounds like the child is illegitimate.Jerrybaby wrote:Divorce is such a horrible thing. I'm on the tail end of mine now. I feel for you OP.
- Sat Mar 08, 2014 9:14 am
- Forum: Personal Finance (Not Investing)
- Topic: Tipping for take out
- Replies: 74
- Views: 11725
Re: Tipping for take out
Tipping for carry out? *confused look* I wouldn't even consider such a thing.
- Tue Mar 04, 2014 4:50 am
- Forum: Personal Finance (Not Investing)
- Topic: Purchase farmland or sell it?
- Replies: 34
- Views: 4307
Re: Purchase farmland or sell it?
Now would be an excellent time to sell farmland.
- Sat Mar 01, 2014 3:07 pm
- Forum: Personal Consumer Issues
- Topic: Purchasing physical gold??
- Replies: 71
- Views: 14241
Re: Purchasing physical gold??
Apmex and Montana Rarities. Tulving is supposedly way behind in his deliveries and is not recommended.