Search found 2336 matches

by knpstr
Sat May 18, 2019 8:39 pm
Forum: Personal Investments
Topic: Income Streams
Replies: 5
Views: 1418

Re: Income Streams

Expenses: $75,000 Income from pensions/S.S. at age 67: $102,000 Savings: $1,200,000 Retire at 60 and get $28,000 so only need $47,000 to bridge gap for 2 years. After 2 years you need $8,000 per year for 5 more years, then savings is superfluous. $1,200,000 can give you $47,000 per year for 25 years...
by knpstr
Sat May 18, 2019 8:21 pm
Forum: Investing - Theory, News & General
Topic: Why Are U.S. Asset Prices So High Today?
Replies: 34
Views: 3012

Re: Why Are U.S. Asset Prices So High Today?

Are asset prices high?

Warren Buffett says if interest rates stay this low in the long term, that asset prices are "ridiculously cheap" right now.
by knpstr
Thu May 09, 2019 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-existing condition + insurance in retirement
Replies: 13
Views: 1344

Re: Pre-existing condition + insurance in retirement

Long time stalker, first time BH poster! I'm an employee in the beginning of my career and am fortunate to be given very good group health insurance. We've talked about one day perhaps retiring in our 50's, given our aggressive saving habits and travel interests. I do have a pre-existing health con...
by knpstr
Sat Apr 20, 2019 2:20 pm
Forum: Personal Investments
Topic: Net Worth where it should be?
Replies: 49
Views: 6742

Re: Net Worth where it should be?

Personal finance is personal. Comparison to others is useless (and "the thief of joy") I calculate progress as follows: Current retirement withdrawal rate = (12 x Monthly expenses) / Current retirement assets Progress = (Desired retirement withdrawal rate / Current retirement withdrawal rate) -----...
by knpstr
Wed Apr 17, 2019 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security - How Secure?
Replies: 28
Views: 1528

Re: Social Security - How Secure?

Why are you taking Social Security at 62? That is a lifetime of reduced benefits. Yes, but also 8 years of extra benefits. This is brand new member and I have no idea whether or not they have taken the time to get fully educated on their options and the pros and cons based upon their full financial...
by knpstr
Tue Apr 16, 2019 10:07 am
Forum: Personal Investments
Topic: $1.1 million rental portfolio, but tired of being a landlord
Replies: 87
Views: 10852

Re: $1.1 million rental portfolio, but tired of being a landlord

Work 40 hours a week for $45,000/yr --- or work 7.5 hours per week for $45,000/yr... hmmm which is better? Not to mention, if their property appreciates at 2.5%/yr that is another $27,500+/yr so ~$72,500+/yr for 7.5 hours of work a week when you include that. I feel like there is some misunderstand...
by knpstr
Mon Apr 15, 2019 9:23 pm
Forum: Personal Investments
Topic: $1.1 million rental portfolio, but tired of being a landlord
Replies: 87
Views: 10852

Re: $1.1 million rental portfolio, but tired of being a landlord

I wouldn't hire a property manager -- I would sell the properties and try to find a good 9-5 job. Owning property can be a 24/7 job. According to this poster, it is more like ~7.5 hour per week job, not 168 hour per week job. Work 40 hours a week for $45,000/yr --- or work 7.5 hours per week for $4...
by knpstr
Mon Apr 15, 2019 9:13 pm
Forum: Personal Investments
Topic: $1.1 million rental portfolio, but tired of being a landlord
Replies: 87
Views: 10852

Re: $1.1 million rental portfolio, but tired of being a landlord

$900,000 will give you $45,000/yr for 20 years. When do you plan on dying?
by knpstr
Tue Apr 02, 2019 2:04 pm
Forum: Non-US Investing
Topic: Your opinion on debt?
Replies: 111
Views: 6601

Re: Your opinion on debt?

If Chick-Fil-A ever calls, I'd borrow money to open one. It costs $10,000 to start a Chick-fil-A. You don't have $10,000 to invest? I would put the cost of starting a Chick-Fil-A at well over 2 million for a stand alone. Probably more like 250K in a mall. I think you need to own a stand alone befor...
by knpstr
Mon Apr 01, 2019 8:31 pm
Forum: Non-US Investing
Topic: Your opinion on debt?
Replies: 111
Views: 6601

Re: Your opinion on debt?

djpeteski wrote:
Mon Apr 01, 2019 6:47 am
If Chick-Fil-A ever calls, I'd borrow money to open one.
It costs $10,000 to start a Chick-fil-A.
You don't have $10,000 to invest?
by knpstr
Sat Mar 30, 2019 7:54 pm
Forum: Investing - Theory, News & General
Topic: Indexing beats Wellington and Wellesley right?
Replies: 101
Views: 15528

Re: Indexing beats Wellington and Wellesley right?

"Indexing beats Wellington and Wellesley right?"

In theory.
by knpstr
Fri Mar 29, 2019 12:33 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey's Advice - Evaluated with Actual Returns from His Company's 401K
Replies: 101
Views: 13189

Re: Dave Ramsey's Advice - Evaluated with Actual Returns from His Company's 401K

I'm confused. Dave Ramsey directly says "I beat the S&P by 1% a year on average, and you should too." He clarifies that he means each of his 4 groups of funds should independently beat the S&P. Why is evaluating his personal funds vs the S&P not "appropriate"? Academics told them they can't compare...
by knpstr
Thu Mar 28, 2019 8:14 am
Forum: Investing - Theory, News & General
Topic: How much $$ would it take for you walk away from investing?
Replies: 45
Views: 4183

Re: How much $$ would it take for you walk away from investing?

JustinR wrote:
Wed Mar 27, 2019 8:15 pm
You've "won the game" and have amassed a large net worth. You don't want to take any more risk, so you go 100% cash and walk away from investing completely.
Going to 100% cash would be very risky.
by knpstr
Thu Mar 28, 2019 7:47 am
Forum: Personal Consumer Issues
Topic: I would like a boat. I also know nothing about boats
Replies: 147
Views: 8857

Re: I would like a boat. I also know nothing about boats

AirTimeMD wrote:
Sun Mar 24, 2019 11:23 pm

Here is what I am looking for:
Something that is powerful enough to tow the kids for wake boarding/water fun but also that can seat 5-8 people for lake cruising and relaxing.
These are pretty popular around my area. Hurricane deck boats:
https://www.hurricaneboats.com/
by knpstr
Thu Mar 21, 2019 9:09 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Why The Size Premium Should Persist
Replies: 62
Views: 3856

Re: Larry Swedroe: Why The Size Premium Should Persist

Larry is a very kind man and he spends quite a bit of his time gratis trying to help people. He did this with me ... so your hope is fulfilled. He didn't try to get me to be a client and knew full well that my portfolio was not in the range of the clients his firm deals with. To do that and to then...
by knpstr
Thu Mar 21, 2019 7:09 pm
Forum: Investing - Theory, News & General
Topic: Fama vs Kahneman [Behavioral Finance]
Replies: 102
Views: 4500

Re: Fama vs Kahneman [Behavioral Finance]

KlangFool wrote:
Thu Mar 21, 2019 7:08 pm
knpstr,

Or not. I pick whatever let me "Sleep Well At Night" (SWAN).

KlangFool
Sure. And I bet you'll end up "right" with your choices.
by knpstr
Thu Mar 21, 2019 7:05 pm
Forum: Investing - Theory, News & General
Topic: Fama vs Kahneman [Behavioral Finance]
Replies: 102
Views: 4500

Re: Fama vs Kahneman [Behavioral Finance]

Folks, I hedged my bets: A) 40% of my portfolio is in 3 funds -> EMH B) 40% of my portfolio is in Wellington fund -> Market is not efficient. C) 20% of my portfolio is in Larry portfolio -> Barbell So, I could not be all right or all wrong. KlangFool Of course "being right" in this case is being ab...
by knpstr
Thu Mar 21, 2019 6:38 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Why The Size Premium Should Persist
Replies: 62
Views: 3856

Re: Larry Swedroe: Why The Size Premium Should Persist

Might read my factor book which talks about these things Larry I had a series of PMs with Larry about a previous thread. In those messages he also suggest I buy his "factor book". Which I plan on not doing. Ignorance is bliss ... Of course I am ignorant and it is why I had a long 1-on-1 interaction...
by knpstr
Thu Mar 21, 2019 6:12 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Why The Size Premium Should Persist
Replies: 62
Views: 3856

Re: Larry Swedroe: Why The Size Premium Should Persist

pezblanco wrote:
Thu Mar 21, 2019 10:22 am
Might read my factor book which talks about these things
Larry
I had a series of PMs with Larry about a previous thread. In those messages he also suggest I buy his "factor book". Which I plan on not doing.
by knpstr
Wed Mar 20, 2019 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Best way to Transfer property
Replies: 16
Views: 1057

Re: Best way to Transfer property

Thanks agreed, I would like the transfer to be done now and I don't anticipate selling the property. Then the way this can be done is as a gift and your father use some of his unified credit. You'll get the property and no one pays tax, but he'll "use up" some of his estate exemption (which would h...
by knpstr
Wed Mar 20, 2019 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Best way to Transfer property
Replies: 16
Views: 1057

Re: Best way to Transfer property

It is using the exact same exemption to avoid taxes in either case, so why not use the unified credit now? Then you don't have to wait for your parents to die to receive the property (if the property wants to be transferred now). You would potentially owe taxes when you sold (since the basis is not...
by knpstr
Tue Mar 19, 2019 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to Transfer property
Replies: 16
Views: 1057

Re: Best way to Transfer property

The best way would be for him to create a Transfer on Death Deed and record the title of the house that way, and for you to inherit it. Then you would not a) need any probate to transfer the title and b) owe no taxes on his presumed capital gains because you would inherit it. Need more details abou...
by knpstr
Tue Mar 19, 2019 3:15 pm
Forum: Investing - Theory, News & General
Topic: Fama vs Kahneman [Behavioral Finance]
Replies: 102
Views: 4500

Re: Fama vs Kahneman [Behavioral Finance]

garlandwhizzer wrote:
Tue Mar 19, 2019 2:54 pm
Markets sometime err in asset pricing. Individual investors and fund managers very often err in asset pricing.
If we use the market return as the benchmark to be measured against how does the market err in pricing? What does the market price compare to when you say it is wrong?
by knpstr
Tue Mar 19, 2019 2:38 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Capitalism Vs. Socialism
Replies: 28
Views: 3339

Re: Larry Swedroe: Capitalism Vs. Socialism

Dave, "We find the same evidence in the returns of individual stocks. For example, growth stocks, which have higher growth in earnings than value stocks, have produced lower returns. ...data to prove previous statement... To repeat, markets price for risk." Seems to me here that since growth compani...
by knpstr
Mon Mar 18, 2019 8:01 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Capitalism Vs. Socialism
Replies: 28
Views: 3339

Re: Larry Swedroe: Capitalism Vs. Socialism

As Larry strongly points out in the essay, the market prices risk. Could you elaborate on this point? I see in his article he said growth companies tend to return less than value companies so... people price risk. That doesn't seem to be a sufficient explanation/reasoning to my stone age brain. Not...
by knpstr
Mon Mar 18, 2019 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Should we purchase $700k home?
Replies: 101
Views: 6752

Re: Should we purchase $700k home?

I have been reading this forum for many years. Sometimes the degree of frugality that people push on others on this board is absurd. Maybe its jealousy/envy that some posters are in such a fortunate income/financial position, who knows. This couple could never contribute another dime to retirement ...
by knpstr
Mon Mar 18, 2019 2:42 pm
Forum: Investing - Theory, News & General
Topic: Retired Investors - Do You Keep Cash For Down Years
Replies: 107
Views: 8303

Re: Retired Investors - Do You Keep Cash For Down Years

I'm curious how you worded that, since I know you've been retired for some time: if you keep 3 to 5 years in "cash", is the rest in stocks? (disregarding social security and pensions). Or do you keep 3 to 5 years in "cash" and still have a 50/50 or 60/40, etc... portfolio on top of that? No, the re...
by knpstr
Mon Mar 18, 2019 2:28 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Capitalism Vs. Socialism
Replies: 28
Views: 3339

Re: Larry Swedroe: Capitalism Vs. Socialism

Random Walker wrote:
Mon Mar 18, 2019 2:17 pm
As Larry strongly points out in the essay, the market prices risk.
Could you elaborate on this point?
I see in his article he said growth companies tend to return less than value companies so... people price risk.
That doesn't seem to be a sufficient explanation/reasoning to my stone age brain.
by knpstr
Mon Mar 18, 2019 2:13 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Capitalism Vs. Socialism
Replies: 28
Views: 3339

Re: Larry Swedroe: Capitalism Vs. Socialism

All I know is that we've been told by academics that the market is pretty well efficient: so whatever CAPE says is meaningless because all of us rational/logical investors have rational/logical reasons for investing and everything we know is "priced in" rational/logically. So the market is always ri...
by knpstr
Mon Mar 18, 2019 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Housing should be no more than 28% of your income.
Replies: 66
Views: 5908

Re: Housing should be no more than 28% of your income.

Our PITI is roughly 5% of gross income. But we live in a LCOL area and put a lot down.

As a side note: our health insurance premiums are more than our PITI (health insurance is our largest expense).
by knpstr
Mon Mar 18, 2019 12:28 pm
Forum: Investing - Theory, News & General
Topic: Retired Investors - Do You Keep Cash For Down Years
Replies: 107
Views: 8303

Re: Retired Investors - Do You Keep Cash For Down Years

Because I do take withdrawals monthly for expenses I do keep in good market years an amount equal to 3 to 5 years of normal withdrawal needs in money market and short term bond funds so that I wont have to take from stock containing funds in a down year like in 2008-09. I didn't do that at the begi...
by knpstr
Mon Mar 18, 2019 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: How do you know if you are on track financially?
Replies: 19
Views: 2541

Re: How do you know if you are on track financially?

What are your expenses/anticipated expenses? How many years from now do you want to retire? How many years are you planning on being retired? What rate of return is appropriate to assume for your asset allocation? How much do you already have? How much are you adding per year? Think about all of the...
by knpstr
Mon Mar 18, 2019 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Should we purchase $700k home?
Replies: 101
Views: 6752

Re: Should we purchase $700k home?

I don't always agree with Klangfool but, in my opinion, he is giving good advice here.
by knpstr
Mon Mar 18, 2019 8:25 am
Forum: Investing - Theory, News & General
Topic: Ignored Risks of Factor Investing
Replies: 107
Views: 6526

Re: Ignored Risks of Factor Investing

In theory VFMF would be expected to offer better risk adjusted returns than TSM in the long term. Theory works reliably in theory. It works sometimes in practice and sometimes not. There is a wide gulf between academic cost-free backtesting and the results in real funds which attempt to harvest the...
by knpstr
Mon Mar 18, 2019 6:51 am
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 763
Views: 72179

Re: That's enough for me in 2019

marcopolo wrote:
Sun Mar 17, 2019 10:49 am
I like seeing these types of threads as a counter balance to the leverage threads that have been popping up a lot lately.
+1 -- not time to sell until everyone AND markettimer are optimistic. :wink:
by knpstr
Fri Mar 15, 2019 6:11 pm
Forum: Personal Consumer Issues
Topic: How do you confirm that bills are successfully paid?
Replies: 38
Views: 2393

Re: How do you confirm that bills are successfully paid?

Pay electronically not by check. Meaning find a way where Schwab doesn't have to send the check for you.

Suggest your landlord use Cozy (if your landlord has no other system). ACH transfers are free to use for you, no cost to your landlord.

Problem solved.
by knpstr
Fri Mar 15, 2019 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Is my *entire* life financed when I have a mortgage?
Replies: 84
Views: 5674

Re: Is my *entire* life financed when I have a mortgage?

And of course these decisions aren't mutually exclusive. If you have a mortgage, you don't just have to decide spend vs pay down the mortgage, you have to decide spend vs pay down the mortgage (or other debt) vs save/invest. You are absolutely correct. I think that is where a "goal" puts things int...
by knpstr
Thu Mar 14, 2019 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Is my *entire* life financed when I have a mortgage?
Replies: 84
Views: 5674

Re: Is my *entire* life financed when I have a mortgage?

Yes. In my view, I also think it is appropriate to separate out needed vs luxury purchases as you did. You need to buy the necessities so forget about those, since one would choose to buy necessities with debt if they couldn't otherwise pay cash since - by definition - they are needed. Taking on a m...
by knpstr
Fri Mar 01, 2019 2:15 pm
Forum: Investing - Theory, News & General
Topic: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces
Replies: 91
Views: 7295

Re: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces

In life, hope is not a very good strategy. As Charlie Munger would say, "invert, always invert." If you don't plan conservatively for worst case scenarios the train coming down the track you're lying on has a message for you. What is worst case scenario? Nuclear holocaust? Another Carrington event?...
by knpstr
Fri Mar 01, 2019 1:53 pm
Forum: Investing - Theory, News & General
Topic: Do houses grow tax free?
Replies: 98
Views: 4800

Re: Do houses grow tax free?

But the question, I believe, is assuming equal returns net of costs , is there a difference between tax treatment of Roth investments and tax treatment of sale of primary residence? To that affect -- I'd say the 2 "costs" that grow due to house appreciation (all other things equal) would be propert...
by knpstr
Fri Mar 01, 2019 1:36 pm
Forum: Investing - Theory, News & General
Topic: Do houses grow tax free?
Replies: 98
Views: 4800

Re: Do houses grow tax free?

Interest expense is simply an additional expense, but a property being paid off or encumbered with debt does not affect property appreciation. Meaning one will have the same appreciation regardless if they have mortgage or not on a given property. For example: $100,000 house, 0% down, house apprecia...
by knpstr
Fri Mar 01, 2019 8:10 am
Forum: Personal Finance (Not Investing)
Topic: When were you convinced that you had more than enough money?
Replies: 117
Views: 11587

Re: When were you convinced that you had more than enough money?

It helps that I live in a moderate cost of living area but with a paid off house and Social Security that would cover most of my most basic living expenses "enough" is a pretty low bar, and I plan on retiring with a "bit" more than enough. Same here. I am decades from retirement. But living in MI i...
by knpstr
Fri Mar 01, 2019 7:39 am
Forum: Investing - Theory, News & General
Topic: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces
Replies: 91
Views: 7295

Re: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces

Seems to me like so long as we ALL agree not to panic sell, sequence of return risk goes away. The math does not work that way. The problem is that if you get terrible investing returns early in your retirement then you will be spending down your nest egg so that when the stock markets recover your...
by knpstr
Thu Feb 28, 2019 10:18 pm
Forum: Personal Investments
Topic: Want no interest, dividends or distributions in 2019
Replies: 45
Views: 4439

Re: Want no interest, dividends or distributions in 2019

tj wrote:
Thu Feb 28, 2019 6:23 pm
Brk b
+1

This is one of the reasons Buffett doesn't want to pay a dividend. Those that want to hold can have complete tax-free growth. Those that want some income can sell a given amount of shares.
by knpstr
Thu Feb 28, 2019 10:14 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50776

Re: Discontinuing VanguardAdvantage Accounts

To those who say they they have their bills automatically paid, two responses: First, not all bills can be automatically paid by charging to credit card or by bank draft. Second, I like to review my bills before they get paid. Ever hear of incorrect charges? Every place that I have on autopay sends...
by knpstr
Thu Feb 28, 2019 10:09 pm
Forum: Investing - Theory, News & General
Topic: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces
Replies: 91
Views: 7295

Re: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces

In life, hope is not a very good strategy. As Charlie Munger would say, "invert, always invert." If you don't plan conservatively for worst case scenarios the train coming down the track you're lying on has a message for you. What is worst case scenario? Nuclear holocaust? Another Carrington event?...
by knpstr
Thu Feb 28, 2019 10:06 pm
Forum: Investing - Theory, News & General
Topic: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces
Replies: 91
Views: 7295

Re: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces

Seems to me like so long as we ALL agree not to panic sell, sequence of return risk goes away.
by knpstr
Thu Feb 28, 2019 9:25 pm
Forum: Personal Investments
Topic: Roll call Warren Buffet 90/10 portfolio
Replies: 96
Views: 20608

Re: Roll call Warren Buffet 90/10 portfolio

I was 80% exposed when the great recession hit. Watched several years of hard work and savings disappear when I was 53. The decade of 2000 was a disaster for me. Would have made much more money on a plain old 60-40 portfolio. To show I am not as stupid as I look, today I am at 50-50. Hope this 90-1...
by knpstr
Wed Feb 27, 2019 9:21 pm
Forum: Investing - Theory, News & General
Topic: Current expected return of stocks
Replies: 71
Views: 4669

Re: Current expected return of stocks

305pelusa wrote:
Wed Feb 27, 2019 3:23 pm
Hello,
Could anyone point me to good resources for estimating a crude approximation of the forward-looking, long term equity premium?

I get that no one knows for certain. I just want to know a reasonable ballpark number to help guide my Asset Allocation decision a bit more.

Thank you
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