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by Default User BR
Tue Aug 13, 2013 1:32 am
Forum: US Chapters
Topic: Au revoir mes amis
Replies: 39
Views: 8433

Au revoir mes amis

Happy trails to you. So long and thanks for all the fish. Etc. Etc. I have elected to remove myself from the forum as an active participant. My reason is off-topic to discuss and probably not productive anyway. Let's say that it's a matter of principle and I think it the best thing to do. I came to this forum in 2007, at the start of a journey, so to speak. I had begun the process of designing and implementing my portfolio, in a systematic manner for the first time. I had gained much insight from my readings, but the input from the folks here was invaluable to complete things. For that help, I have tried to pay it back as best I could. At that start, I would not have guessed that I would end up being in the top 20 in number of posts. Someti...
by Default User BR
Mon Aug 05, 2013 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Am I saving enough that I can spend some of it?
Replies: 38
Views: 5956

Re: Am I saving enough that I can spend some of it?

leonard wrote:Money is fungible - but assets are not. In this case, the financing is specific to an asset - it is not a general obligation.

If one goes in default - they do not repossess a pro rate portion of your house, car, boat, cash, etc. So, in this case, the fungibility of money does not fully describe this situation.
I don't understand the point. Default didn't enter into it. What debt do you want to default on?
leonard wrote:In addition to the loan and interest - it is also simply not worth the headache of obtaining, servicing, and ultimately insuring the proper transfer of title at the end of the process.
Now that's a stretch. I've never had a "headache" doing any of that. Besides, what does that have to do with depreciating assets?


Brian
by Default User BR
Mon Aug 05, 2013 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: How to simplify and overcome Boglehead perfectionism?
Replies: 38
Views: 7195

Re: How to simplify and overcome Boglehead perfectionism?

People are making out that having a more complex portfolio is a huge investment in time. It's not. I have a spreadsheet set up to aggregate all the information. All I have to do is download or update spreadsheets for each account. That takes approximately ten minutes, and I have seven accounts at six custodians. That's much more than most.

If it's taking you a long time to manage your portfolio, then you're doing it inefficiently.


Brian
by Default User BR
Mon Aug 05, 2013 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Odd 401k question
Replies: 13
Views: 1919

Re: Odd 401k question

acanthurus wrote:So if my plan allows it, I can roll in the 22k from the Rollover IRA as well as the 5.5k from the traiditional IRA? All money was contributed pre-tax. I might have to look into this...
Yes. For some, it's a useful way to clear the decks for backdoor Roth.


Brian
by Default User BR
Mon Aug 05, 2013 5:40 pm
Forum: Personal Consumer Issues
Topic: On Shopping And Receiving Change
Replies: 56
Views: 6273

Re: On Shopping And Receiving Change

Munchkin Man wrote:The Munchkin Man loves to accumulate as many coins as possible in change.

The Munchkin Man likes to stash them all into a large empty vitamin jar at home until it gets full.

The Munchkin Man's jar got full this morning.

The Munchkin Man took it to the coin exchange machine at the Munchkin Man's local Harris Teeter store.
What is the point of all that? Why not carry a smaller amount of change with you. When have enough change to cover the fractional component of the amount due, give them change. Otherwise get it and keep it for next time.


Brian
by Default User BR
Mon Aug 05, 2013 4:50 pm
Forum: Personal Investments
Topic: Routine checkup on my financial picture - Age 27
Replies: 10
Views: 1763

Re: Routine checkup on my financial picture - Age 27

Lafder wrote:Great job at saving!!

I thought 401k + Roth contributions combined can only be $17,500 ?

Unless you are 50, than it can be $23,000.
No, the IRA contributions are separate from plans like 401(k) or 403(b).


Brian
by Default User BR
Mon Aug 05, 2013 4:43 pm
Forum: Personal Investments
Topic: First Post, Simplifying and any advice welcome
Replies: 20
Views: 2874

Re: First Post, Simplifying and any advice welcome

Lafder wrote:Are we ineligible for Roth conversions too, or just ineligible for direct Roth deposits?
Everyone is eligible for conversions. Congress removed the income limit for that some years back. That's how the "backdoor Roth" came about. People who can't make Roth contributions can contribute to a traditional IRA and immediately convert it.


Brian
by Default User BR
Mon Aug 05, 2013 4:17 pm
Forum: Personal Investments
Topic: Why does Fidelity quote mulitiple expense ratios?
Replies: 2
Views: 807

Re: Why does Fidelity quote mulitiple expense ratios?

tadamsmar wrote:Fidelity quotes gross and net ERs. What's that all about?
The net includes fee waivers.

Brian
by Default User BR
Mon Aug 05, 2013 4:14 pm
Forum: Personal Investments
Topic: First time post for Allocation advice
Replies: 17
Views: 1696

Re: First time post for Allocation advice

If the credit cards are paid in full each month, I wouldn't even include that in the analysis, it will only confuse things. What interest rate(s) apply to the student loans?


Brian
by Default User BR
Mon Aug 05, 2013 4:07 pm
Forum: Personal Investments
Topic: Rollover to Fidelity or Vanguard
Replies: 13
Views: 1857

Re: Rollover to Fidelity or Vanguard

Fidelity is offering a bonus for rollovers or transfers. If you rolled $250k in, that would be $600.

https://scs.fidelity.com/other/offers/r ... asha.shtml


Brian
by Default User BR
Mon Aug 05, 2013 1:36 pm
Forum: Personal Investments
Topic: IRA converting - tiny gains w/some losses
Replies: 9
Views: 948

Re: IRA converting - tiny gains w/some losses

How are you defining "cost basis"? Good point - I just happen to be looking at my Quicken screen and took the Market vs Cost totals.. I'll have to dig thru my paper files for the IRA stuff and see how it all breaks down. I think some years are deductable and some are not - what a mess to follow... not sure if there is a simple trail ? Will take a look at what TurboTax printed out and see if there are any IRA forms. Non-deductible contributions have to be recorded by filing Form 8606. If you haven't been doing that, then you have a problem. If you haven't properly recorded a non-deductible contribution, then the IRS will assume it is taxable. Hopefully you have your returns and records of contributions covering this period and can...
by Default User BR
Mon Aug 05, 2013 1:32 pm
Forum: Personal Investments
Topic: IRA converting - tiny gains w/some losses
Replies: 9
Views: 948

Re: IRA converting - tiny gains w/some losses

Epsilon Delta wrote:You can get a large IRA by rolling over a 401(k). The $17,500 limit on 401(k) contributions plus any employer match gets money in faster.
Also after-tax contributions to qualified plans with in-service rollovers.


Brian
by Default User BR
Mon Aug 05, 2013 12:42 pm
Forum: Investing - Theory, News & General
Topic: Stupid Question - TSM vs. SCV
Replies: 24
Views: 3346

Re: Stupid Question - TSM vs. SCV

livesoft wrote:If the polls on this forum are to be believed, more respondents tilt to small-cap and value than folks who use the 3-fund total market weighted portfolio.
I never believe the polls on this forum.


Brian
by Default User BR
Mon Aug 05, 2013 12:35 pm
Forum: Investing - Theory, News & General
Topic: best funds for the 4 economic scenarios
Replies: 5
Views: 1468

Re: best funds for the 4 economic scenarios

If you look at the most recent market crash (say from 10/1/2007 - 3/1/2009, the obvious winners were funds that shorted the stock market. For instance, the ProShares UltraShort S&P 500 Fund (SDS) returned 240% over that period. Of course, once the recovery began . . .


Brian
by Default User BR
Mon Aug 05, 2013 12:14 pm
Forum: Investing - Theory, News & General
Topic: would a portfolio last forever if you only took the dividend
Replies: 31
Views: 4576

Re: would a portfolio last forever if you only took the divi

steve roy wrote:You could also get your portfolio to last forever if you took 10% of your remaining total investment each year.
In the abstract that's true. However, real investments have a minimum amount you have to hold to keep the same investment. You could reach a level where you can't sell 10% anymore because it would put you below the minimum. You could change the investment, of course, with all cash being the last resort. That's all ignoring fees and such as well.


Brian
by Default User BR
Mon Aug 05, 2013 11:44 am
Forum: Personal Investments
Topic: Possible to move an individual 401K?
Replies: 22
Views: 4183

Re: Possible to move an individual 401K?

Spirit Rider wrote:My basic point was that to open a individual 401k, you must be actively engaged in a qualified self-employed business. Income in a particular year is not required, but an ongoing business is.
Perhaps, but it's so easy to start a "business" that this is a non-factor. Start a blog on some subject. Sign up for click ads services. You won't make any money, but you're "trying".


Brian
by Default User BR
Mon Aug 05, 2013 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Odd 401k question
Replies: 13
Views: 1919

Re: Odd 401k question

acanthurus wrote:It is in a Rollover IRA along with the money from a different former employers 401k. My understanding is that since only old 401k money is in that account, that the entire amount can be rolled over to a future employers 401k if I so choose.
There is no longer any legal requirement that rollovers into qualified plans come from conduit IRAs. Any tax-deferred IRA be rolled in, although restricted to taxable money. Individual plans can impose their own restrictions, and some maintain the old rules.


Brian
by Default User BR
Mon Aug 05, 2013 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Paying for a car using funds in Vanguard
Replies: 24
Views: 3665

Re: Paying for a car using funds in Vanguard

I have not purchased a vehicle in quite some time (12/1999) but I have always paid with personal checks. These days I'd have a PenFed loan if I could.


Brian
by Default User BR
Mon Aug 05, 2013 11:15 am
Forum: Personal Consumer Issues
Topic: Buying a House without a Real Estate Agent
Replies: 29
Views: 4842

Re: Buying a House without a Real Estate Agent

covertfantom wrote:If you are in a seller's market with low inventory, I would be less worried about saving money on commission than I am with getting my offer accepted. If you haven't already, I would make a couple of offers just to see what the market is like at the moment in the area you're looking. You're under no obligation to buy even if your offer is accepted.
An accepted offer that both parties have signed is a contract. It's unusual for a seller to sue for specific performance, but they might keep your earnest money or make you fight to get it back.


Brian
by Default User BR
Mon Aug 05, 2013 1:29 am
Forum: Personal Investments
Topic: Reverse Mortgage == Last Resort Loan ?
Replies: 28
Views: 4420

Re: Reverse Mortgage == Last Resort Loan ?

Jack wrote:I think part of the appeal of a reverse mortgage is that they can't kick you out before you die, effectively an annuity. However, the fees and rates are very unattractive.
While they can't kick the person out, there's a maximum loan amount. Once that's reached there won't be any more payments. Some people are able to get follow-on mortgages if the home value increases.


Brian
by Default User BR
Mon Aug 05, 2013 1:15 am
Forum: Investing - Theory, News & General
Topic: Leaving Wells Fargo Brokerage
Replies: 53
Views: 21659

Re: Leaving Wells Fargo Brokerage

This thread reinforces that decision. I've never understood why someone would go through the hassle of opening a bank brokerage account for free trades when they usually end up in VG products anyway. VG funds and etfs are free directly from the source. Opening an account was no more difficult at Wells Fargo than at Vanguard. With the free trades, one could get products that Vanguard doesn't offer. This is particularly useful when doing tax-loss harvesting, as sometimes the best alternative was not a Vanguard product. It was also great if you were cleaning up an old portfolio with funds you didn't want anymore. Many people don't like Vanguard as a custodian. They especially dislike the division between mutual funds and brokerage products. N...
by Default User BR
Mon Aug 05, 2013 1:08 am
Forum: Personal Investments
Topic: First Post, Simplifying and any advice welcome
Replies: 20
Views: 2874

Re: First Post, Simplifying and any advice welcome

So Roth distributions are not taxed at all? Not even the amount above the original contribution? Plus no minimum distributions? That sounds too good to be true, to get the "growth" in the account for no tax? Correct, it's like a Roth IRA in treatment of earnings. Are after Tax 401k distributions beyond the "costbasis" taxed at capital gains rates only, when it is taken out? So there is an extra tax on these versus a Roth. Than why ever have this over a Roth? They are taxed as ordinary income. They are similar to non-deductible contributions to a traditional IRA. Usually they aren't very useful unless you can roll them over. Post tax 401k contributions can bring the total annual contribution to $25,000/year per our plan,...
by Default User BR
Sun Aug 04, 2013 3:22 pm
Forum: Personal Investments
Topic: Age old question: Invest or Pay Debt?
Replies: 25
Views: 2802

Re: Age old question: Invest or Pay Debt?

IlliniDave wrote:I'd pay the loan. No sense paying interest on a depreciating asset.
This is an old saw that makes no sense to me. What does it matter what the loan was for? Money is fungible. It only matters what the terms of the loan are.

Would you turn down a 0.01% loan on a car because it was a depreciating asset?


Brian
by Default User BR
Sun Aug 04, 2013 3:20 pm
Forum: Personal Investments
Topic: First Post, Simplifying and any advice welcome
Replies: 20
Views: 2874

Re: First Post, Simplifying and any advice welcome

pkcrafter wrote:If a roll-in has to be tracked as a separate account, then I agree, it's not such a good idea. Lafder, you might check to see if a transfer is allowed, and how it would work.
As I mentioned, the separate accounting is a custodian requirement and generally not evident to the account holder. Usually separate accounting is good thing, as it gives more flexibility.


Brian
by Default User BR
Sun Aug 04, 2013 3:16 pm
Forum: Personal Investments
Topic: First Post, Simplifying and any advice welcome
Replies: 20
Views: 2874

Re: First Post, Simplifying and any advice welcome

The OP wants simplicity, but I'm fairly sure that the employer will still need to track this money as a separate account inside the 401(k) (but invested in the funds of choice). So, there will still be separate accounts - nothing has been simplified. While the custodian has to manage separate accounts, that's usually not apparent to the employee in regards to the tracking and management of assets. That already happens in most 401(k)s just because employee deferrals and employer contributions are separate accounts. My 401(k) often has four separate sub-accounts, employee deferral, employer matching, employee after-tax contributions (towards the end of the year), and rollover contributions. However, from my account view, I just have four fun...
by Default User BR
Sun Aug 04, 2013 3:08 pm
Forum: Investing - Theory, News & General
Topic: Globe and Mail Doesn't Like Boglehead Approach
Replies: 32
Views: 4444

Re: Globe and Mail Doesn't Like Boglehead Approach

JoMoney wrote:But WHY do you follow that strategy as opposed to simply "Total Market" which is a guarantee of market returns?
Why follow any strategy? Indeed, one thinks that the risk and performance expectation fit their personal objectives.

I certainly can understand if people don't want to tilt for various reasons. That doesn't mean that tilting is some sort of sub-optimal method. After all, if small and value had more risk without greater expected returns, one could improve a portfolio by tilting AWAY from them.


Brian
by Default User BR
Sun Aug 04, 2013 2:36 pm
Forum: Personal Investments
Topic: Asset Allocation / Portfolio Help
Replies: 22
Views: 3177

Re: Asset Allocation / Portfolio Help

nedsaid wrote:Hate to break it to you, my recollection of the Ultimate Buy and Hold Portfolio was correct. Just looked it up. I also have Paul Merriman's book and have read it several times. It is 10 slices on the equity side at 6% each, though they may have
broken the REIT slice into US and International at 3% each.
I see that the newer version is on Merriman.com, not on FundAdvice.com. The original versions are still on the latter for those that want to compare.

Were I starting over, I'd take a hard look at Trev's Four-Fund Ultimate version.


Brian
by Default User BR
Sun Aug 04, 2013 2:00 pm
Forum: Personal Investments
Topic: First Post, Simplifying and any advice welcome
Replies: 20
Views: 2874

Re: First Post, Simplifying and any advice welcome

Depending on the specifics of your employer plan, you can have a traditional pre-tax 401k or a Roth 401k, or perhaps both. In addition, you can often make after-tax contributions to the traditional 401k in excess of the pre-tax limit (now $17,500), it depends on the plan. The future earnings of these after-tax contributions will be taxed on withdrawal but the contribution amount (your basis) will not be taxed again. Since the earnings on this after-tax component will be taxed, this is much less desirable investment than putting money in a Roth 401k. Where this is most useful is when the plan also allows in-service distribution of after-tax contributions. These can then be rolled into a Roth IRA, effectively increasing the amount contribute...
by Default User BR
Sun Aug 04, 2013 1:51 pm
Forum: Personal Investments
Topic: Age old question: Invest or Pay Debt?
Replies: 25
Views: 2802

Re: Age old question: Invest or Pay Debt?

It's definitely not a good loan in the current environment. It might be worth looking into a refinance, but the fact that you ended up with this in the first place indicates problems with credit and/or the loan to value ratio. I would think this loan is probably underwater. Cars depreciate quite a bit in the first few years.


Brian
by Default User BR
Sun Aug 04, 2013 1:40 pm
Forum: Personal Investments
Topic: Tried to make custom portfolio
Replies: 13
Views: 1538

Re: Tried to make custom portfolio

connya wrote:Tracking error in your case would be the difference between your value and emerging market tilted portfolio and a market-weighted portfolio.
That's not tracking error in any meaningful sense of the term. A titled portfolio is not designed to track that index, so why would it be an error not to track it?


Brian
by Default User BR
Sun Aug 04, 2013 1:30 pm
Forum: Personal Investments
Topic: Why you need bonds as rates rise
Replies: 61
Views: 9520

Re: Why you need bonds as rates rise

Jack wrote:Gee, its only been five years since the financial panic and people are already back into believing in the miracles of financial innovation.
You're certainly free to dislike and not use stable-value funds, but to lump them in with some of these other products is intellectually dishonest. You continue to duck the real points so you can prop up your straw bogeyman.


Brian
by Default User BR
Sun Aug 04, 2013 12:43 pm
Forum: Investing - Theory, News & General
Topic: Leaving Wells Fargo Brokerage
Replies: 53
Views: 21659

Re: Leaving Wells Fargo Brokerage

Last I heard (e.g., http://www.bogleheads.org/forum/viewtopic.php?t=48546 ), partial transfers didn't have a $95 fee, and closing an account (non-IRA) didn't have a fee. So, for the taxable accounts at least, you may be able to avoid the fees by doing a partial transfer (all the stocks but not the cash?) and then withdrawing the cash and closing the account. Or sell the stocks and withdraw the cash. No, I don't think so. When I was with WF, you had to leave at least $95 in the account, or it was considered a total transfer and they would take the fee. When if comes to making sure you pay your fees, they aren't stupid. My recommendation is always to try to move to a custodian that will refund the fee to you. Most except Vanguard will do tha...
by Default User BR
Sun Aug 04, 2013 12:22 pm
Forum: Investing - Theory, News & General
Topic: The "Lost Decade" and Long-Term Real Stock Returns
Replies: 39
Views: 7858

Re: The "Lost Decade" and Long-Term Real Stock Returns

nedsaid wrote:Isn't the "Lost Decade" another way of saying that we experienced a secular bear market? There was another thread where the idea of a secular bear market was ridiculed and pilloried but I guess it is okay to call it a lost decade.
Only because some of us think "secular" markets are meaningless terms for the most part. Many of us take the view that it's not possible to tell what kind of secular market it is until well after the fact. There are even arguments that the previous "secular bull" continued and that 2000 and 2008 were sharp cyclical bears within it. Or not. The key is, what does it matter what you call it? I think the same about this or that decade.


Brian
by Default User BR
Sun Aug 04, 2013 12:14 pm
Forum: Investing - Theory, News & General
Topic: Scott Adams on Active Managers
Replies: 29
Views: 3735

Re: Scott Adams on Active Managers

baw703916 wrote:
nedsaid wrote:Yes. Yes. The evil Dogbert as the investment manager!! The reason Dilbert is so funny is that it rings so true!!!
Of course it was Catbert (the evil HR director) who made Dilbert, Wally, Point-haired Boss, Alice, and the rest a captive audience to Dogbert's fund line-up... :twisted:
There's the difference between cats and dogs, obviously. Dogbert does what he does because he's greedy. Catbert does it to be cruel.


Brian
by Default User BR
Sun Aug 04, 2013 12:11 pm
Forum: Investing - Theory, News & General
Topic: Globe and Mail Doesn't Like Boglehead Approach
Replies: 32
Views: 4444

Re: Globe and Mail Doesn't Like Boglehead Approach

JoMoney wrote:To me, "Factor Tilting" as a whole (maybe not all, but a big part of the theme) seems like a product sold by the financial "service" industry to try and sell to the ever growing "passive index" crowd.
It depends on how to define your terms. Generally around here, factor tilting is small and value, which has extensive academic backing. It's clear from your prior posts that you don't believe this, but I can't help that. For those of us following it, the strategy is not some flavor of the month hot-sector jumping around. It's long-term, consistent allocations. We don't need any new funds, books, or newsletters.


Brian
by Default User BR
Sun Aug 04, 2013 12:08 pm
Forum: Investing - Theory, News & General
Topic: Globe and Mail Doesn't Like Boglehead Approach
Replies: 32
Views: 4444

Re: Globe and Mail Doesn't Like Boglehead Approach

Yes, most cases are someone new (but not all). I really don't want to gather a list and single people out making assumptions as to what their expectations are from the strategy they are following (especially not on an unrelated thread where they may not see it to give their view) . The "Investment Vices" thread has lots of instances of people showing their efforts to try and eek out extra performance. There's a big difference between people admitting their personal investments quirks in a thread especially for that purpose, and generally promoting or seeking sector-hopping strategies. That doesn't go on much with most people other than the new contributors. Unfortunately, I see that sort of behavior lumped in with factor tilting ...
by Default User BR
Sun Aug 04, 2013 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Am I saving enough that I can spend some of it?
Replies: 38
Views: 5956

Re: Am I saving enough that I can spend some of it?

leonard wrote:Don't. DON'T buy cars on credit any longer. Paying for $14k of car for 5 years doesn't make any sense. Pay cash in the future for your transportation. Like you would any other tool.
I disagree with that. The low interest rates these days are very attractive. He's paying 1.49%. You can often get better than that in stable-value funds. However, I'd take the cheap leverage and invest it to plan.

Money is fungible. There's no difference in money spent for transportation than for any other purpose.


Brian
by Default User BR
Sun Aug 04, 2013 10:40 am
Forum: Personal Finance (Not Investing)
Topic: How to simplify and overcome Boglehead perfectionism?
Replies: 38
Views: 7195

Re: How to simplify and overcome Boglehead perfectionism?

livesoft wrote:When a clerk or a machine asks me if I want the receipt, I almost always say, "No, thank you."
I do take the receipt from the ATM because I don't go there very often. Gas stations never, and I dislike the pumps that don't give you an option on that.

The main exception is the supermarket and drug store. I always scrutinize the receipt before leaving the store because frequently there are mispriced items, and I want to take care of that before I go.


Brian
by Default User BR
Sun Aug 04, 2013 10:27 am
Forum: Personal Consumer Issues
Topic: Tipping
Replies: 101
Views: 12473

Re: Tipping

mur44 wrote:We are replacing our Central Air Conditioning system
next week. The team will be 5 to 6 skilled technicians.
All the work to be completed in one day or so.

Do we need to tip? If yes, how much?
(Total cost of replacement is $8,600)
I have not and would not tip in that situation. Generally when I've had that sort of work done there's very little opportunity to even do it. When they get done most of the workers pack up stuff and get going to the next job. A supervisor will go over the final paperwork and payment.

I go under the assumption that people in these jobs are paid an appropriate amount for their work, and that is reflected in the final bill. I don't go around looking for opportunities to tip more people.


Brian
by Default User BR
Sun Aug 04, 2013 1:23 am
Forum: Personal Investments
Topic: Why you need bonds as rates rise
Replies: 61
Views: 9520

Re: Why you need bonds as rates rise

My apologies, ODG, I was confusing this discussion with the Stable Value discussion above. You are correct about a traditional bond fund with variable NAV. However the same is not true of a Stable Value Fund or Money Market Fund that tries to maintain a fixed NAV. In that case, if assets are redeemed at a fixed NAV but the bonds are sold at a loss for the redemption, the remaining fund owners must absorb the loss. This can result in a death spiral for the fund as everyone rushes for the exits. This is why fixed NAV bond funds like Stable Value and Money Market are a fiction and dangerous. Again, this is nonsense. The reason we discuss the sell-off in bond funds is because the NAV drops. It doesn't with stable-value funds. WHY would there b...
by Default User BR
Sun Aug 04, 2013 12:49 am
Forum: Personal Investments
Topic: Reverse Mortgage == Last Resort Loan ?
Replies: 28
Views: 4420

Re: Reverse Mortgage == Last Resort Loan ?

coachz wrote:From what I read, when many seniors want to refinance a house that is already paid off, they no longer have income to qualify for the loan.
Right, the banks typically won't give loans to people without sufficient income. Most likely, the mere fact that it's necessary to take out the loan to live on disqualifies the borrower.

The better solution, that many seniors don't want to hear for emotional reasons, is to sell the house and downsize to a rental apartment.


Brian
by Default User BR
Sun Aug 04, 2013 12:41 am
Forum: Personal Investments
Topic: Asset Allocation / Portfolio Help
Replies: 22
Views: 3177

Re: Asset Allocation / Portfolio Help

nedsaid wrote:The Merriman portfolio had the equity portion of a 60/40 portfolio in ten slices. Let's see if I can recite them by memory. 6% S&P 500, 6% Large Value, 6% Microcap, 6% Small Cap Value, 6% REITs, 6% International Index, 6% International Value, 6% International Small Cap, 6% International Small Cap Value, and 6% Emerging Markets. Then the Merriman folks talked about splitting the REITs into US and International at 3% each.
That doesn't look like the Ultimate Buy and Hold portfolio.


Brian
by Default User BR
Sat Aug 03, 2013 10:39 am
Forum: Investing - Theory, News & General
Topic: Tracking Portfolio Performance
Replies: 6
Views: 2548

Re: Tracking Portfolio Performance

pop77 wrote:Can you elaborate more on the 5/25 rebalancing analysis? What formula/function you use in Excel? Can you provide a sample?
What I did was create one. All you need is the current percentage for the asset class and the target. Then the formula compares them for either the 5% absolute or 25% relative difference.


Brian
by Default User BR
Sat Aug 03, 2013 10:27 am
Forum: Investing - Theory, News & General
Topic: It's not your father's indexing
Replies: 40
Views: 5895

Re: It's not your father's indexing

nisiprius wrote:How can you complain that Vanguard is ignoring this when they've offered growth index funds and value index funds since 1992, and currently offer index funds covering all nine style boxes supporting every possible tilting theory?
True for the USA, but not internationally. Many of us would be interested in international large-value or small-value index products from Vanguard. Note that VTRIX is actively-managed and not available as an ETF class.


Brian
by Default User BR
Sat Aug 03, 2013 10:18 am
Forum: Investing - Theory, News & General
Topic: Globe and Mail Doesn't Like Boglehead Approach
Replies: 32
Views: 4444

Re: Globe and Mail Doesn't Like Boglehead Approach

JoMoney wrote:I see this all the time on this message board as people try to jump around from sector to sector following one formula or another expecting they will somehow earn more then a fair share of market returns by doing so.
Could you point out some examples? Most such cases are new folks, and the main advice is to avoid such strategies. Now, there are a number of us who following a factor-tilted approach based on the extensive academic research supporting that, but that's different than what you describe.


Brian
by Default User BR
Sat Aug 03, 2013 10:15 am
Forum: Investing - Theory, News & General
Topic: Globe and Mail Doesn't Like Boglehead Approach
Replies: 32
Views: 4444

Re: Globe and Mail Doesn't Like Boglehead Approach

assumer wrote:Also, if you have a whole lot of people flip a coin 30 times, odds are one of them will hit tails every time due to random chance (like survivorship bias) but others may believe that person is a skilled coin flipper.
Better have a lot of people. The odds on a 30 out 30 streak is 9.31E-10.


Brian
by Default User BR
Sat Aug 03, 2013 1:21 am
Forum: Personal Finance (Not Investing)
Topic: Hiring parents to take care of children
Replies: 8
Views: 1838

Re: Hiring parents to take care of children

scubadiver wrote:You can gift each of your parents up to $12K (I think) per year tax free.
14K per year without tax or filing it with your return. You will owe no gift tax unless you exceed the lifetime exclusion of 5.25 million.


Brian
by Default User BR
Sat Aug 03, 2013 1:11 am
Forum: Personal Consumer Issues
Topic: On Shopping And Receiving Change
Replies: 56
Views: 6273

Re: On Shopping And Receiving Change

DoWahDaddy wrote:ARRRGGGHHH!!! What horrible advice is being doled out by my beloved minions to this most entertaining of all BHes!

The MunchkinMan should NOT use a credit card for his small transactions!

DoWahDaddy reconciles his receipts to his credit card statements every month.

ShBoomFather buys little things with cash and bigger things with credit cards so that he can reconcile 10-20 receipts to his CC statement each month.
Fortunately, I have an excellent memory for what I spent on things. I can merely scan the month's charges online. Much simpler than saving receipts.


Brian
by Default User BR
Sat Aug 03, 2013 1:03 am
Forum: Personal Consumer Issues
Topic: Tipping
Replies: 101
Views: 12473

Re: Tipping

stan1 wrote:I had a home inspector at the house today to help me get ready to sell. He spent over 4.5 hours with me going over every aspect of the house, answering every question, and likely saving me thousands of dollars in repairs by suggesting better approaches. He charged $225, I happily tipped him $50.
I would not have tipped in this situation.


Brian
by Default User BR
Sat Aug 03, 2013 1:03 am
Forum: Personal Consumer Issues
Topic: Tipping
Replies: 101
Views: 12473

Re: Tipping

Jazzman wrote:The NEW ORLEANS SAINTS QB (DREW BREES) gave a $3.00 tip on a $75.00 TAKE OUT ORDER. He's is being blasted on ESPN.
I never tip for takeout.


Brian