Search found 8829 matches

by grok87
Sun Nov 17, 2019 9:50 am
Forum: Personal Finance (Not Investing)
Topic: More retirees have a mortgage
Replies: 114
Views: 7064

Re: More retirees have a mortgage

The biggest advantage to having a paid off mortgage in retirement comes if your income source is mainly taxable such as traditional IRA, 401(k) or pension dollars. Because you will be able to reduce your taxable income by an amount equal to what your mortgage payment would have been. If your mortga...
by grok87
Sun Nov 17, 2019 7:01 am
Forum: Personal Finance (Not Investing)
Topic: More retirees have a mortgage
Replies: 114
Views: 7064

Re: More retirees have a mortgage

yes, but they can pull the line of ctedit at any time right? This happened during the Great Recession when real estate values dropped so drastically. Not unusual for houses with a market valuation of $350,000 to fall way below $200,000. Ergo, the lenders extending the home equity credit lines respo...
by grok87
Sun Nov 17, 2019 6:58 am
Forum: Personal Finance (Not Investing)
Topic: More retirees have a mortgage
Replies: 114
Views: 7064

Re: More retirees have a mortgage

OK, here's a related question... I don't have a mortgage on my house; should I go out and get one? And invest the $$$? Mind you, I don't particularly want to do that, but if it's such a savvy idea, well, maybe I should. I'm 64, retired, and have enough assets to qualify for a mortgage. i am not in ...
by grok87
Sat Nov 16, 2019 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: More retirees have a mortgage
Replies: 114
Views: 7064

Re: More retirees have a mortgage

it's a good point. i'm wondering if it makes sense to refinance just before i retire to extend the term of the mortgages I upped the limit of my HELOC before retirement. At my CU there is no cost for holding a zero balance HELOC and the line of credit is good for 10 years. Quick and easy way to acc...
by grok87
Sat Nov 16, 2019 9:54 am
Forum: Personal Finance (Not Investing)
Topic: More retirees have a mortgage
Replies: 114
Views: 7064

Re: More retirees have a mortgage

We view the mortgage as a cash management tool. Low rate means we use someone else's money to partially finance our house. Our reasons for keeping the mortgage: 1) the mortgage rate is very low, so selling assets to pay it off makes no economic sense right now 2) Paying it off cannot be undone very...
by grok87
Sat Nov 16, 2019 9:50 am
Forum: Personal Finance (Not Investing)
Topic: More retirees have a mortgage
Replies: 114
Views: 7064

Re: More retirees have a mortgage

I am a retiree with a mortgage by choice because interest rates were so low when I bought it made more sense to me to have the mortgage. In the decision to pay cash vs take out a mortgage, the 2.875% interest rate won out because I expect my 50/50 portfolio to do better than 2.875%. that's a great ...
by grok87
Sat Nov 16, 2019 9:00 am
Forum: Personal Finance (Not Investing)
Topic: More retirees have a mortgage
Replies: 114
Views: 7064

More retirees have a mortgage

According to the center for retirement research at boston college, the percent of early stage retirees (65-79) with a mortgage is now 46% vs. 24% in 1990. for late stage retirees (80+) it is now 26% vs. 3% in 1990. https://squaredawayblog.bc.edu/squared-away/more-retirees-today-have-a-mortgage/ the ...
by grok87
Sat Nov 16, 2019 7:28 am
Forum: Personal Consumer Issues
Topic: Best thing you have ever bought?
Replies: 145
Views: 10984

Re: Best thing you have ever bought?

daheld wrote:
Fri Nov 15, 2019 4:06 pm
Compound interest.
there's an xkcd for that!
https://xkcd.com/947/
by grok87
Wed Nov 13, 2019 9:51 am
Forum: Investing - Theory, News & General
Topic: Vgd alt strategies fund (vasfx) open to retail investors?
Replies: 59
Views: 5731

Re: Vgd alt strategies fund (vasfx) open to retail investors?

Here’s what they say in the advisors website: Effective today, the fund has adopted a new risk methodology that targets a fixed range of volatility set by the fund manager. This fixed range of volatility may change from time to time. The fund manager will consider risk levels of the individual stra...
by grok87
Sat Nov 09, 2019 7:22 am
Forum: Investing - Theory, News & General
Topic: Long Term Bonds getting killed today
Replies: 94
Views: 11466

Re: Long Term Bonds getting killed today

We're seeing the other side of long term bonds today. They've had quite a run over the last 37 years and investors are in love with them for returns and diversification. LTB demonstrated today one of their potential drawbacks, increased volatility. Today in the US, Europe, and Japan there is hope t...
by grok87
Sat Nov 09, 2019 7:14 am
Forum: Investing - Theory, News & General
Topic: Long Term Bonds getting killed today
Replies: 94
Views: 11466

Re: Long Term Bonds getting killed today

VCLT is a great Run & Hide a while ETF... One gets a much better than average monthly dividend, plus a good chance of capital gain on recovery of a market slump. http://rplewis.homeip.net/aimg/VCTL%2020191107.JPG I purchased a significant amt last Nov(with Gvt shutdown looming) ~84/shr - and just h...
by grok87
Sat Nov 09, 2019 7:02 am
Forum: Personal Investments
Topic: Please critique IPS
Replies: 4
Views: 561

Re: Please critique IPS

Thanks Grok, I am indebted to you big time for all of your contributions to the forum. In terms of duration, I think I would only provide instructions for a best-effort. I have read that the duration of the TIPS funds is difficult to reconcile, i.e. comparing nominal duration and real duration is c...
by grok87
Fri Nov 08, 2019 5:30 pm
Forum: Investing - Theory, News & General
Topic: Vgd alt strategies fund (vasfx) open to retail investors?
Replies: 59
Views: 5731

Re: Vgd alt strategies fund (vasfx) open to retail investors?

jhfenton wrote:
Fri Nov 08, 2019 4:08 pm
At the moment, it does appear to be closed. I wasn't going to go through with the trade, but I just tried to exchange >$50K into VASFX, and was blocked with a message that the fund is closed.
thanks for the update, very weird.
by grok87
Fri Nov 08, 2019 6:42 am
Forum: Investing - Theory, News & General
Topic: REITS no longer cheap
Replies: 63
Views: 10084

Re: REITS no longer cheap

The bond aspect of real estate is present when there are long term leases (10 year plus) the real estate aspect is when the leases/rentals or shorter term. The value of the long term leased real estate is the maximum of the cash flows from the leases (the bonds) or the value of the real estate to o...
by grok87
Fri Nov 08, 2019 6:20 am
Forum: Personal Investments
Topic: Please critique IPS
Replies: 4
Views: 561

Re: Please critique IPS

Tried to make this cogent and concise, highlighted in red the main points. I didn't want it to be an exhaustive treatise, so in my rationales, I'm trying to hit the major points only. This is to help me as my mental faculties fade. I am open to criticism. Also, I think this could work for many Bogl...
by grok87
Thu Nov 07, 2019 7:52 pm
Forum: Investing - Theory, News & General
Topic: REITS no longer cheap
Replies: 63
Views: 10084

Re: REITS no longer cheap

packer16 wrote:
Thu Nov 07, 2019 7:36 pm
One aspect that gets lost when looking at REITs as group is they are hybrids of real estate and other leased property and bonds of their lessors.
Packer
not really following that...
by grok87
Thu Nov 07, 2019 7:52 pm
Forum: Investing - Theory, News & General
Topic: REITS no longer cheap
Replies: 63
Views: 10084

Re: REITS no longer cheap

Link in op now shows 12.3% Premium to nav Interesting. I try to tune out the market noise and keep our desired allocation to REITs (which is approximately 30% of equity between Vanguard US and Vanguard International REIT index funds). Essentially following a David Swensen recommend allocation. REIT...
by grok87
Thu Nov 07, 2019 8:46 am
Forum: Investing - Theory, News & General
Topic: REITS no longer cheap
Replies: 63
Views: 10084

Re: REITS no longer cheap

Link in op now shows 12.3% Premium to nav
by grok87
Tue Nov 05, 2019 6:31 am
Forum: Investing - Theory, News & General
Topic: Anyone use “baskets”at fidelity?
Replies: 19
Views: 3202

Re: Anyone use “baskets”at fidelity?

Grok87, did you ever implement your basket? Curious about this now that trades are free. Does this basically allow you to invest, for instance, a flat $1000 against a basket of ETFs (resulting in fractional shares)? Can you trade baskets in the app? Maybe jbranx can also weigh in based on comments ...
by grok87
Sun Nov 03, 2019 12:10 pm
Forum: Investing - Theory, News & General
Topic: Article on Dividends (J Clements)
Replies: 29
Views: 3052

Re: Article on Dividends (J Clements)

Recently, I read this interesting article by Jonathan Clements on dividends: https://humbledollar.com/2019/11/cash-back/ The example that's referenced in the article of GM's value creation and how it was realized over time in terms of dividends was striking. With the current situation (a number of ...
by grok87
Fri Oct 25, 2019 6:34 am
Forum: Investing - Theory, News & General
Topic: Vgd alt strategies fund (vasfx) open to retail investors?
Replies: 59
Views: 5731

Re: Vgd alt strategies fund (vasfx) open to retail investors?

^^Nevermind the above questions.....the VASFX annual report answered these questions. I was just about off point you to that. For others, The report cites 6 strategies. One is a leveraged bet on long dated treasuries The other is long low volatility stocks and short high volatility stocks Interesti...
by grok87
Thu Oct 24, 2019 8:00 pm
Forum: Investing - Theory, News & General
Topic: Vgd alt strategies fund (vasfx) open to retail investors?
Replies: 59
Views: 5731

Re: Vgd alt strategies fund (vasfx) open to retail investors?

^^Nevermind the above questions.....the VASFX annual report answered these questions. I was just about off point you to that. For others, The report cites 6 strategies. One is a leveraged bet on long dated treasuries The other is long low volatility stocks and short high volatility stocks Interesti...
by grok87
Thu Oct 24, 2019 5:16 pm
Forum: Investing - Theory, News & General
Topic: Vgd alt strategies fund (vasfx) open to retail investors?
Replies: 59
Views: 5731

Re: Vgd alt strategies fund (vasfx) open to retail investors?

Winthorpe wrote:
Wed Oct 23, 2019 8:48 pm
^^Nevermind the above questions.....the VASFX annual report answered these questions.
I was just about to point you to that.
For others,
The report cites 6 strategies.
One is a leveraged bet on long dated treasuries
The other is long low volatility stocks and short high volatility stocks
by grok87
Wed Oct 23, 2019 6:11 pm
Forum: Investing - Theory, News & General
Topic: Vgd alt strategies fund (vasfx) open to retail investors?
Replies: 59
Views: 5731

Re: Vgd alt strategies fund (vasfx) open to retail investors?

Winthorpe wrote:
Wed Oct 23, 2019 5:54 pm
whodidntante wrote:
Sun Jul 29, 2018 2:51 pm
Has anyone here placed an order for it?
I'm curious, too. Has anybody?
waiting for min to drop to $50k. supposed to happen maybe next month?
by grok87
Sun Oct 20, 2019 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgage - H 4 P program
Replies: 12
Views: 805

Re: Reverse Mortgage - H 4 P program

so it seems a little weird. you don't have to make monthly mortgage payments but you have to put more down up front. I'm still struggling to see the usefulness of this. My understanding is that some folks who use an H4P want to purchase a more expensive home than they could get using a traditional ...
by grok87
Sun Oct 20, 2019 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgage - H 4 P program
Replies: 12
Views: 805

Re: Reverse Mortgage - H 4 P program

this article has a bit more information https://www.reversemortgage.org/About/Types-of-Reverse-Mortgages/HECM-for-Purchase caution †This material has not been reviewed, approved or issued by HUD, FHA or any government agency. NRMLA is not affiliated with or acting on behalf of or at the direction of...
by grok87
Sun Oct 20, 2019 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgage - H 4 P program
Replies: 12
Views: 805

Re: H 4 P program

I know one retirement planner mentioned on BH (Wade Pfau, PhD) has done research on using reverse mortgages during retirement. You may find his website useful: https://retirementresearcher.com/using-reverse-mortgages-responsible-retirement-income-plan/ Another article I saw: https://www.forbes.com/...
by grok87
Fri Oct 18, 2019 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off Mortgage Before Retiring vs. Taxable Investing
Replies: 38
Views: 3587

Re: Pay off Mortgage Before Retiring vs. Taxable Investing

I see three options. 1) Pay off mortgage before you retire. 2) Have enough money to pay off mortgage whenever you want. 3) Refinance so the mortgage will likely not be paid off till after you die, but the payments are low and predictable. No matter which option you choose, you'll still have to pay ...
by grok87
Sun Oct 13, 2019 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: GE Pension Buyout - which option?
Replies: 14
Views: 1686

Re: GE Pension Buyout - which option?

[Moved into a new thread from: GE Pension Buyout --admin LadyGeek] I really appreciate the great input on this forum. I’m another Ex GE employee. Worked there for 20 years. I’m 58. My options are: A - $403,043 lump sum, payable 12/1/19 B - $2172/mo, beginning 12/1/19 C - $3440/mo, beginning age 60,...
by grok87
Sun Oct 13, 2019 9:03 am
Forum: Investing - Theory, News & General
Topic: Time to Barbell one's [TIPS]?
Replies: 15
Views: 1330

Re: Time to Barbell one's [TIPS]?

Looking at a specific TIPS, the principle over 1000 is the amount that can be lost to deflation, if I understand correctly: https://www.wsj.com/market-data/bonds/tips So for example Jan 2024 TIPS shows accrued principle at 1099. This could potentially go as low as 1000, with about 10% total deflati...
by grok87
Sat Oct 12, 2019 7:44 pm
Forum: Investing - Theory, News & General
Topic: Time to Barbell one's [TIPS]?
Replies: 15
Views: 1330

Re: Time to Barbell one's [TIPS]?

1) short term tips have deflation risk. this in general would be correlated with stock market risk IMO. in other words short term tips may have higher "beta". grok, can you explain what you mean by deflation risk? Is this unique to TIPS or generic for all ST bonds? sure. the vanguard short term tip...
by grok87
Sat Oct 12, 2019 10:19 am
Forum: Investing - Theory, News & General
Topic: Time to Barbell one's [TIPS]?
Replies: 15
Views: 1330

Re: Time to Barbell one's tips?

the obvious question is why would there be such an opportunity- i.e. is this a free lunch? If the entire TIPs portfolio has the same duration, the interest rate risk should be the same regardless of what bond maturities you use to create it. Instead of saying people who do this are "market timing",...
by grok87
Sat Oct 12, 2019 8:22 am
Forum: Investing - Theory, News & General
Topic: Time to Barbell one's [TIPS]?
Replies: 15
Views: 1330

Time to Barbell one's [TIPS]?

TIPS yields have a U-shaped curve right now. TIps index: real yield 0.35% duration 7.74 0-5 year tips: real yield 0.53% duration 2.56 5-10 year tips real yield 0.22% duration 7.12 10+ year tips real yield 0.55 duration 21.65 so barbelling one's tips seems to be sensible right now- i.e. avoid the mid...
by grok87
Sat Oct 12, 2019 7:44 am
Forum: Investing - Theory, News & General
Topic: Vanguard Reopens Dividend Growth Fund-Press Release August 1
Replies: 32
Views: 4718

Re: Vanguard Reopens Dividend Growth Fund-Press Release August 1

so is there any news on when the market neutral fund (VMNFX) and alt strategies fund (VASFX) are going to have the reduced $50 k minimums? also here are the 3rd quarter returns for these funds and total world stock index (VTWSX), total bond index (VBMFX) real estate (VGSIX) VMNFX: 2.89% VASFX: 2.84...
by grok87
Sat Oct 12, 2019 7:42 am
Forum: Personal Consumer Issues
Topic: Washer/Dryer shopping: Best Buy cheaper than Costco
Replies: 20
Views: 1573

Re: Washer/Dryer shopping: Best Buy cheaper than Costco

I believe Costco does match prices (it needs to be exactly the same models - can be tricky with washers and dryers as manufacturers make many variants of the same basic model, some exclusive to a retailer). Not sure about Costco’s Black Friday policy but Best Buy excludes Black Friday from its pric...
by grok87
Sat Oct 05, 2019 7:09 pm
Forum: Investing - Theory, News & General
Topic: REITS no longer cheap
Replies: 63
Views: 10084

Re: REITS no longer cheap

I agree with grok87 that REITS current valuations are generous which implies reduced expected long term returns. The same however can be said currently to some degree for stocks and especially for bonds which are hovering at their lowest yields, that is to say highest valuations, in history. Treasu...
by grok87
Sat Oct 05, 2019 11:10 am
Forum: Investing - Theory, News & General
Topic: REITS no longer cheap
Replies: 63
Views: 10084

Re: REITS no longer cheap

hard to read but the greenstreet report seems to suggest that the latest data point for reits valuation relative to nav has remained at 11.3% premium
https://www.greenstreetadvisors.com/insights/avgpremnav
by grok87
Sat Oct 05, 2019 10:45 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe's "Rules of Prudent Investing"
Replies: 32
Views: 4532

Re: Larry Swedroe's "Rules of Prudent Investing"

Oh, sure. Commodities yes, but long-short liquid alts, reinsurance, peer-to-peer lending, and variance swaps,--if that is the right term--are not mentioned, they hadn't been "discovered" in 2014. And there's a nod or two to the prudence of using an advisor and not fussing about the cost because the...
by grok87
Sat Oct 05, 2019 7:38 am
Forum: Investing - Theory, News & General
Topic: Vanguard Reopens Dividend Growth Fund-Press Release August 1
Replies: 32
Views: 4718

Re: Vanguard Reopens Dividend Growth Fund-Press Release August 1

so is there any news on when the market neutral fund (VMNFX) and alt strategies fund (VASFX) are going to have the reduced $50 k minimums? also here are the 3rd quarter returns for these funds and total world stock index (VTWSX), total bond index (VBMFX) real estate (VGSIX) VMNFX: 2.89% VASFX: 2.84%...
by grok87
Fri Oct 04, 2019 6:45 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe's "Rules of Prudent Investing"
Replies: 32
Views: 4532

Re: Larry Swedroe's "Rules of Prudent Investing"

They aren't specifically credited to Larry Swedroe on this web page, but they appear in several of his books (in several different forms). I numbered the points. Like many short, pithy maxims, of course, it is hard to know exactly what they mean or how they apply to a specific situation... and ther...
by grok87
Thu Oct 03, 2019 7:37 pm
Forum: Personal Investments
Topic: Opportunity Zone REIT
Replies: 12
Views: 998

Re: Opportunity Zone REIT

the opportunity zone investment allows deferral of the capital gain. Just investing in VNQ (or any other standard REIT) will leave the OP on the hook to pay the cap gains on his 2019 return I have no knowledge of these vehicles, I would expect a lot of non traded, high expense vehicles out there. P...
by grok87
Thu Oct 03, 2019 4:24 pm
Forum: Personal Investments
Topic: Opportunity Zone REIT
Replies: 12
Views: 998

Re: Opportunity Zone REIT

While this may not be the easiest place to ask, does anyone here have experience with Opportunity Zone REITs? Which ones to consider or avoid. I am facing a very large LT cap gain in 2019 and am looking at an opportunity zone reit to defer the tax bill for seven years. Any advice in how to evaluate...
by grok87
Thu Oct 03, 2019 5:50 am
Forum: Investing - Theory, News & General
Topic: Bloomberg commodities index still in contango
Replies: 115
Views: 12934

Re: Bloomberg commodities index still in contango

Aren't these passive commodity indexes basically like CTAs, providing insurance to hedgers? So the large spec side has become crowded. Similar story to active stock picking. I don't see a good case for commodities, vs a little in GLD & GDX, rebalanced at the same time as stocks & bonds. The correla...
by grok87
Sun Sep 29, 2019 5:42 am
Forum: Personal Investments
Topic: 1000 extra stocks in VTSAX vs FZROX: what's their use?
Replies: 28
Views: 2413

Re: 1000 extra stocks in VTSAX vs FZROX: what's their use?

A total market index will have a liquidity screen that defines the boundary of what is held on the small end. Different total market indices have different liquidity screens. Index funds also may use sampling and portfolio optimization instead of full replication to track an index with only a subse...
by grok87
Wed Sep 25, 2019 2:38 pm
Forum: Investing - Theory, News & General
Topic: Robo program to avoid market drops
Replies: 22
Views: 2082

Re: Robo program to avoid market drops

Went to a free lunch presentation given by a guy whose main pitch is capital preservation.He talked about people who are invested in stocks and handed out a chart from 1950 to today showing the difference if you avoided the big market drops.He said he uses a robo program that somehow gets you out a...
by grok87
Wed Sep 25, 2019 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Article on Deferred Annuities on HumbleDoller
Replies: 15
Views: 1034

Re: Article on Deferred Annuities on HumbleDoller

A September 25, 2019 article by an actuary on HumbleDollar discusses how to mitigate the risks of living to very old age. One of these is a "deeply deferred annuity": Yet another strategy might be to buy a deeply deferred annuity that doesn’t start payments until age 90. A 65-year-old man investing...
by grok87
Wed Sep 25, 2019 5:41 am
Forum: Personal Finance (Not Investing)
Topic: How does a bank make money off you? How to ensure they don't
Replies: 69
Views: 8162

Re: How does a bank make money off you? How to ensure they don't

Sometimes---frequently----the "game" is to get your assets into the institution, no matter whether they are initially making money off of you are not-----and then work at selling you/transferring you into more profitable products. Fidelity does this by touting their low cost, sometimes even subsidi...
by grok87
Sun Sep 22, 2019 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: How does a bank make money off you? How to ensure they don't
Replies: 69
Views: 8162

Re: How does a bank make money off you? How to ensure they don't

I got tired of the incessant and very aggressive sales pitches from the Private Bank at my bank. I understand they are not bad people; they are merely trying to achieve their sales quota. i think you are a better person than me! They may not be bad people but IMHO it is best, easiest and quickest t...