Search found 7111 matches

by Kenkat
Thu Apr 22, 2021 3:21 pm
Forum: Investing - Theory, News & General
Topic: Is Cathie Wood a bad influence to our younger generation?
Replies: 33
Views: 1349

Re: Is Cathie Wood a bad influence to our younger generation?

Isn't it the sort of thing that has to be re-learned by every generation? For example I expect GenX to join in about the star Janus managers during dotcom boom, baby boomers and Peter Lynch, etc. Well, I was going to bring up Janus, but you already did. ;) And Janus Junction, the old discussion boa...
by Kenkat
Thu Apr 22, 2021 3:15 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortgage is a negative bond" - please help me understand

But I go back to the "so what"? Are people suggesting I do a different stock/bond mix to adjust my risk? I consider investment mix 1 decision. Then, your housing and lifestyle is a different risk/cost decision. The negative bond stuff just sounds like distraction. This was the point I was...
by Kenkat
Thu Apr 22, 2021 12:27 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortgage is a negative bond" - please help me understand

First and primarily, what is the optimal asset allocation for a person? Let us keep this simple with 2 asset classes, equites and bonds. To keep things simple we are going to ignore the value of the home (real estate). Case #1: 1,000k in equites, 500k bonds, -500k mortgage. The bonds and mortgages ...
by Kenkat
Wed Apr 21, 2021 6:20 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortgage is a negative bond" - please help me understand

Would you put the mortgage in your asset allocation, Kenkat, If you do, how do you rebalance the mortgage? In summary, mortgage as a "negative bond" is a useless and dangerous idea. 1) It is useless because you cannot rebalance it in your AA. 2) It is dangerous because it understate the d...
by Kenkat
Wed Apr 21, 2021 5:16 pm
Forum: Personal Consumer Issues
Topic: Wireless Earbuds/Headphones Recommendations?
Replies: 17
Views: 1442

Re: Wireless Earbuds/Headphones Recommendations?

If you have an iPhone, I’d go with the Airpod Pros. The easy integration with Apple devices makes it worth it in my opinion. Sound is always subjective but they sound reasonably good for my use case (mostly active) and the noise cancellation is good as well. If I was looking for something to sit in ...
by Kenkat
Wed Apr 21, 2021 4:58 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortgage is a negative bond" - please help me understand

How should an inflation adjusted pension equivalent to 30% of your highest 3 years of salary be factored into your asset allocation? Is it a positive bond that would potentially offset the mortgage as a negative bond? It isn't a positive bond, but as an annuity, it gives a similar risk reduction. S...
by Kenkat
Tue Apr 20, 2021 8:34 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

Thus I would instead prefer to use the phrase “your net home value is a bond.” I don't know if that's less confusing, but it's certainly less accurate. Your home isn't a bond. It's a real asset (i.e. "real estate") that does not produce a fixed amount of income. So it's not a bond. Again,...
by Kenkat
Tue Apr 20, 2021 6:19 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

Another way to look at this - I am a big user of Quicken. In Quicken, the account structure is represented as such: Banking - includes checking, savings and credit card accounts Investing - includes stocks, bonds, mutual funds, etc. Property & Debt - includes mortgage, value of house and other a...
by Kenkat
Tue Apr 20, 2021 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: When is a lawyer needed for creating a will?
Replies: 24
Views: 1913

Re: When is a lawyer needed for creating a will?

I would worry about a situation where you and your wife will no longer be able to care for yourselves and need someone to act as trustee of your affairs, looking out for your interests. A will does not necessarily need to be expensive - an expense in the low four digits would be money well spent gi...
by Kenkat
Tue Apr 20, 2021 5:41 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

Shouldn’t it be: 1) 60k in TSM index fund and 40k in a Bond fund and a $40k house is the same thing as having 2) 60k in TSM index fund and 80k in a Bond fund and a mortgage balance of 40k (on a house worth $40k). I guess I’m hung up on the term “negative”. If it’s a negative bond then you need to a...
by Kenkat
Mon Apr 19, 2021 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: When is a lawyer needed for creating a will?
Replies: 24
Views: 1913

Re: When is a lawyer needed for creating a will?

I would worry about a situation where you and your wife will no longer be able to care for yourselves and need someone to act as trustee of your affairs, looking out for your interests. A will does not necessarily need to be expensive - an expense in the low four digits would be money well spent giv...
by Kenkat
Mon Apr 19, 2021 4:33 pm
Forum: Personal Consumer Issues
Topic: Please help with windows [Microsoft Windows]
Replies: 9
Views: 640

Re: Please help with windows [Microsoft Windows]

What type of hard drive do you have? Is it a traditional “spinner”? I have brought older computer back to acceptable performance by swapping out the older hard drive for a solid state drive aka SSD. It not only greatly speed disk access but it also helps Windows with memory management as it uses the...
by Kenkat
Mon Apr 19, 2021 12:18 pm
Forum: Personal Consumer Issues
Topic: Vinyl Fence
Replies: 45
Views: 3049

Re: Vinyl Fence

NorCalHiker wrote: Mon Apr 19, 2021 10:47 am Thanks for sharing! Nice job on the fence! How much do you charge? :twisted:
I need some time for the memories to fade - at the moment, it’s in the “I’m never doing that again category”! :wink:
by Kenkat
Mon Apr 19, 2021 12:13 pm
Forum: Personal Consumer Issues
Topic: Quarter round molding
Replies: 40
Views: 2596

Re: Quarter round molding

PS - Also, I am surprised to see so many with an aversion to shoe molding ... it is pretty ubiquitous with nearly any hard floor surface. Our custom build was done this way and I think it looks good overall. The drywall and baseboards went in first, then the hardwood flooring was done much later. I...
by Kenkat
Mon Apr 19, 2021 7:25 am
Forum: Investing - Theory, News & General
Topic: If active investing is foolish, why do we utterly, blindly trust active investors (fools) to set prices for us?
Replies: 26
Views: 2588

Re: If active investing is foolish, why do we utterly, blindly trust active investors (fools) to set prices for us?

Active investing is foolish because it costs too much. That’s mostly it. It has nothing to do with setting prices which most studies indicate is a neutral - i.e., the average active manager is neither better than or worse than others at doing this.
by Kenkat
Sun Apr 18, 2021 2:44 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

watchnerd wrote: Sun Apr 18, 2021 2:30 pm I have no mortgage.

Does that mean my home equity is a 'positive bond'?

If yes, what is the duration of my home equity?
Rent it out, live in your car and see if it generates any income. You know, like a bond would.

Duration is variable, somewhere between zero and infinity.
by Kenkat
Sun Apr 18, 2021 2:36 pm
Forum: Personal Consumer Issues
Topic: Vinyl Fence
Replies: 45
Views: 3049

Re: Vinyl Fence

I put in three sections of 6 foot vinyl fencing (6ft. high) as a privacy screen. For the style I put in, I’d say you are easily looking at $35 a linear foot just for material by the time you add together the fence sections, posts and post caps. Of course it will depend a lot on the exact fencing you...
by Kenkat
Sun Apr 18, 2021 12:38 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

True but that changes nothing about my point. An investor is 60/40 and they buy a house, take out a mortgage and suddenly they are 100% equities? No. You don’t get to count the mortgage as part of the asset allocation, canceling out the bonds, without counting the house in the equation as well. If ...
by Kenkat
Sun Apr 18, 2021 12:28 pm
Forum: Personal Investments
Topic: Does anyone hold Vanguard Windsor II or Wellington?
Replies: 16
Views: 1978

Re: Does anyone hold Vanguard Windsor II or Wellington?

I held Windsor II for a long time starting in 1998. At that time, the index that the Vanguard Large Value Index fund used was not particularly good in my opinion since it was based on the S&P 500. Over time, Vanguard has utilized much better indexes overall and I switched this fund out for Vangu...
by Kenkat
Sun Apr 18, 2021 12:23 pm
Forum: Personal Consumer Issues
Topic: Tool for precise 90 degree cut with utility knife blade?
Replies: 22
Views: 1414

Re: Tool for precise 90 degree cut with utility knife blade?

yatesd wrote: Sun Apr 18, 2021 12:20 pm What about a traditional carpenter's square?
This was going to be my answer as well.
by Kenkat
Sun Apr 18, 2021 12:06 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

But I has to ask you from what you have written above- if a person has an AA of 600k stocks 400k bonds, they have chosen that for a reason correct? That 400k in bonds is doing something for the investor correct other than just providing a nominal return. How does a 400k mortgage eliminate that some...
by Kenkat
Sun Apr 18, 2021 10:18 am
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

But I has to ask you from what you have written above- if a person has an AA of 600k stocks 400k bonds, they have chosen that for a reason correct? That 400k in bonds is doing something for the investor correct other than just providing a nominal return. How does a 400k mortgage eliminate that some...
by Kenkat
Sun Apr 18, 2021 8:18 am
Forum: Investing - Theory, News & General
Topic: What would Bogle think of Dogecoin?
Replies: 30
Views: 1882

Re: What would Bogle think of Dogecoin?

I believe he would say “many bad, much bubble”.
by Kenkat
Fri Apr 16, 2021 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Zelle/Venmo/Cashapp?
Replies: 44
Views: 3867

Re: Zelle/Venmo/Cashapp?

Why not just use cash or a check? This. It's interesting here how many use Venmo. Venmo makes your activity public by default. Maybe I'm too old, but that's entirely undesirable. Given how Facebook and others in the "social" world have a habit of continually changing their security and pr...
by Kenkat
Fri Apr 16, 2021 1:48 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

It justs seems to me that if someone is uncomfortable putting hundreds of thousands of dollars into a home (particularly if that would be a large chunk of one's portfolio), and is also uncomfortable with holding 100% stocks, then diversifying into a bond fund in addition seems a perfectly sensible ...
by Kenkat
Fri Apr 16, 2021 1:19 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

It justs seems to me that if someone is uncomfortable putting hundreds of thousands of dollars into a home (particularly if that would be a large chunk of one's portfolio), and is also uncomfortable with holding 100% stocks, then diversifying into a bond fund in addition seems a perfectly sensible ...
by Kenkat
Fri Apr 16, 2021 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Medicare - just A + B?
Replies: 31
Views: 2288

Re: Medicare - just A + B?

I am not on Medicare yet but my big concern would be that there are no upper limits / out of pocket maximums as there are with private or ACA plans. If you have a major medical incident like cancer or a major heart issue, you are responsible for 20% of the cost, with no limit. So a $1,000,000 cance...
by Kenkat
Thu Apr 15, 2021 8:52 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

Joe has a $50,000 mortgage on his house. In addition Joe has an outstanding student loan of $100,000. Does Joe have $150,000 in negative bonds? Yes. Plus car loans and credit card debt. All debt can, and should be included in one’s balance sheet and asset allocation. Mortgages tend to be big. They ...
by Kenkat
Thu Apr 15, 2021 8:18 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

Imagine an investor with an investment portfolio of $1,000,000 invested 60/40. This investor has a mortgage of $200,000. This investor has three entries in their asset allocation: $600,000 in stocks, earning 6%. $400,000 in bonds, earning 1.3% $200,000 in debt, costing 3.5%. This produces a blended...
by Kenkat
Thu Apr 15, 2021 4:15 pm
Forum: Personal Consumer Issues
Topic: Replacement battery for solar landscape lights?
Replies: 10
Views: 544

Re: Replacement battery for solar landscape lights?

I have had hit and miss experience with replacing batteries in solar lights. Sometimes it works and sometimes it doesn’t - it seems that sometimes there are issues besides the batteries that are the root cause. Over times, I have noticed that the solar cells and collectors become cloudy and/or sun d...
by Kenkat
Thu Apr 15, 2021 2:53 pm
Forum: Investing - Theory, News & General
Topic: "Mortgage is a negative bond" - please help me understand
Replies: 297
Views: 14935

Re: "Mortage is a negative bond" - please help me understand

Imagine an investor with an investment portfolio of $1,000,000 invested 60/40. This investor has a mortgage of $200,000. This investor has three entries in their asset allocation: $600,000 in stocks, earning 6%. $400,000 in bonds, earning 1.3% $200,000 in debt, costing 3.5%. This produces a blended...
by Kenkat
Thu Apr 15, 2021 12:14 pm
Forum: Personal Consumer Issues
Topic: Why leasing a new car is always the best option even if you intend to keep it forever
Replies: 156
Views: 14437

Re: Why leasing a new car is always the best option even if you intend to keep it forever

I would also add that when you lease a vehicle, there is an interest cost built into the lease payment amount. You are effectively taking out a loan to lease the vehicle. The computed interest rate charged is not required to be disclosed but you can request it from the lease provider.
by Kenkat
Tue Apr 13, 2021 8:50 pm
Forum: Personal Consumer Issues
Topic: Cicadas
Replies: 23
Views: 1803

Re: Cicadas

I am on the western side of Cincinnati and we’ve always gotten a massive emergence of Brood X every 17 years. If you haven’t experienced a 17 year emergence (or 13 in some locations), you would not believe the quantity of insects that emerge. They are everywhere. I’ve already purchased some netting ...
by Kenkat
Tue Apr 13, 2021 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Zelle/Venmo/Cashapp?
Replies: 44
Views: 3867

Re: Zelle/Venmo/Cashapp?

If you want to use Venmo but don’t want to link it to a bank account, you can have a trusted acquaintance send money to your Venmo account and reimburse them via check, cash, etc. A little cumbersome but it works.
by Kenkat
Tue Apr 13, 2021 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage application denied due to large 401k contribution?s
Replies: 27
Views: 2220

Re: Mortgage application denied due to large 401k contribution?s

If your AGI is $1000 per month, where will the money for the mortgage payment come from? From the 19k savings surplus I've been dumping into a 401k year after year. You won't be contributing to 401k or maybe much less and instead using that money to pay the mortgage? Does the lender know this? How ...
by Kenkat
Tue Apr 13, 2021 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage application denied due to large 401k contribution?s
Replies: 27
Views: 2220

Re: Mortgage application denied due to large 401k contribution?s

If your AGI is $1000 per month, where will the money for the mortgage payment come from?
by Kenkat
Tue Apr 13, 2021 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Medicare - just A + B?
Replies: 31
Views: 2288

Re: Medicare - just A + B?

I am not on Medicare yet but my big concern would be that there are no upper limits / out of pocket maximums as there are with private or ACA plans. If you have a major medical incident like cancer or a major heart issue, you are responsible for 20% of the cost, with no limit. So a $1,000,000 cancer...
by Kenkat
Tue Apr 13, 2021 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Zelle/Venmo/Cashapp?
Replies: 44
Views: 3867

Re: Zelle/Venmo/Cashapp?

I use Venmo to transfer money to/from people that I know. I consider it similar to handing someone cash; I am not aware of any chargeback capability with Venmo?

I use Paypal for eBay transactions or with small vendors online when I don’t want to create account and enter all the details.
by Kenkat
Tue Apr 13, 2021 10:50 am
Forum: Personal Finance (Not Investing)
Topic: How much does your employer sponsered health insurance cost you?
Replies: 43
Views: 2570

Re: How much does your employer sponsered health insurance cost you?

$261/mo. for family coverage HDHP ($7500 family deductible/$2500 per person deductible). That is 20% of the total cost. Employer pays the other 80% plus $1500/yr. HSA contribution. Dental is another $44/mo.
by Kenkat
Tue Apr 13, 2021 8:16 am
Forum: Personal Consumer Issues
Topic: Medicare Claims Processing Question
Replies: 22
Views: 1417

Re: Medicare Claims Processing Question

A slight detour - what about the Medicare Part B deductible? Doctor bills something less than the deductible, then Medicare records that amount goes toward the deductible, medigap insurance does the same. Is it the responsibility of the doctor to now bill the patient for the unpaid deductible amoun...
by Kenkat
Tue Apr 13, 2021 7:36 am
Forum: Personal Finance (Not Investing)
Topic: Unexpected interpretation of the SECURE Act 10-year inherited IRA drawdown
Replies: 8
Views: 1123

Re: Unexpected interpretation of the SECURE Act 10-year inherited IRA drawdown

Fired2020 wrote: Tue Apr 13, 2021 7:09 am I inherited an IRA late last year, and took no distribution. So under this interpretation...I guess I'd be subject to an IRS penalty already??

WTH :oops:
Luckily the CARES Act waived the RMD requirement for 2020 so there will be time to get this sorted out.
by Kenkat
Mon Apr 12, 2021 4:03 pm
Forum: Personal Consumer Issues
Topic: The Great Swing Set Dilemma
Replies: 56
Views: 4583

Re: The Great Swing Set Dilemma

A little ingenuity could easy turn the area under the clubhouse into a sandbox.
by Kenkat
Sun Apr 11, 2021 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Thrift Savings Plan account locked - too many password reset attempts
Replies: 7
Views: 550

Re: Thrift Savings Plan account locked - too many password reset attempts

This happened this morning. I did not make any password reset attempts so apparently an attempted hack. The email appears legit and the number to call to unlock is the legitimate TSP service line. So what can I infer from this type of attempt? The password is complex. The username is not (me bad). ...
by Kenkat
Sun Apr 11, 2021 6:02 pm
Forum: Personal Consumer Issues
Topic: Medicare Claims Processing Question
Replies: 22
Views: 1417

Re: Medicare Claims Processing Question

Call the Medicare Benefits Coordination & Recovery Center (BCRC) at 1-855-798-2627 to remove the old PPO coverage. Medicare will eventually get notified of the drop of coverage but it can take a few months. I just went through this same situation with my disabled son. I am a little unclear of wh...
by Kenkat
Sat Apr 10, 2021 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone contemplating OLY (One Less Year)?
Replies: 52
Views: 4786

Re: Anyone contemplating OLY (One Less Year)?

Yes. I have targeted retirement in 2 years (@ 59) but tell people my retirement date is either Monday or five years from now, depending on the day. Reasons to retire now are that I have plenty of money according to most retirement planner software, work is tiring sometimes and I’m not getting any yo...
by Kenkat
Sat Apr 10, 2021 12:05 pm
Forum: Personal Consumer Issues
Topic: Where to donate suits
Replies: 6
Views: 876

Re: Where to donate suits

All of the local charity / thrift stores around us sell men’s suits - St. Vincent de Paul, Salvation Army, Goodwill
by Kenkat
Sat Apr 10, 2021 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Laid off advice
Replies: 31
Views: 2494

Re: Laid off advice

We're in Pennsylvania. Check out the Affordable Care Act. ACA plans are total trash. The best choice was $1.5k a month in premiums with an $18,000 annual deductible. What a joke. I doubt if you are taking into account the substantial subsidies they would receive at an income level of $50k. Premiums...
by Kenkat
Sat Apr 10, 2021 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Laid off advice
Replies: 31
Views: 2494

Re: Laid off advice

ACA is probably going to be the most affordable insurance option, but you can compare to Cobra. I would definitely look into Social Security Disability at his age and current medical issues. Qualification requirements tend to be less for older working adults who have paid into the system for many ye...
by Kenkat
Sat Apr 10, 2021 10:24 am
Forum: Personal Finance (Not Investing)
Topic: In-Laws' HOA demanding $8000 lumpsum payment
Replies: 91
Views: 10547

Re: In-Laws' HOA demanding $8000 lumpsum payment

I am the Treasurer of a small neighborhood HOA. Whenever a property is sold in our neighborhood, the closing agent will contact me and ask me to provide a statement of account to indicate if any funds are due. This is a pre-close requirement; the closing is not in good order without this. Our HOA re...