Search found 79 matches

by jose
Wed Oct 30, 2019 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: I no longer plan on retiring early
Replies: 110
Views: 16178

Re: I no longer plan on retiring early

People don't plan for retirement. They plan for financial independence, a pre-condition for retirement. The actual decision to retire, just "happens". Our brain makes decisions based on relative advantage. What are my options? Which one is the best? You don't have to like or dislike your job, just t...
by jose
Tue Oct 29, 2019 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: I no longer plan on retiring early
Replies: 110
Views: 16178

Re: I no longer plan on retiring early

So I Adjusted my IPS: No more early retirement. For the next 5 years - I will work 4 days a week, take at least 7 weeks off per year. No more long hours Then the next 5 years - I will work 3 days a week, take 12 weeks off Then indefinitely, I will only work 6 months a year. It will be consecutively...
by jose
Mon Oct 28, 2019 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: I no longer plan on retiring early
Replies: 110
Views: 16178

Re: I no longer plan on retiring early

I've been thinking about this a lot lately as I learn more about happiness research and how beneficial a sense of purpose, social interaction, growth/learning and routine are for humans. Sure you can get those things outside of work, but it's hard to recreate all that in retirement - especially wit...
by jose
Mon Oct 28, 2019 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Married 32 y/o , single income, finance strategy feedback
Replies: 5
Views: 1087

Re: Married 32 y/o , single income, finance strategy feedback

One suggestion is to max out your 401k before your Roth . Savings should go to tax deferred accounts first, Roth second, and then taxable. Only a few people should do otherwise (much higher tax bracket in retirement). Many people get Roth through conversions when it is appropriate. If you plan to st...
by jose
Sun Oct 27, 2019 7:04 pm
Forum: Personal Consumer Issues
Topic: Should we downshift and move to Europe?
Replies: 40
Views: 5481

Re: Should we downshift and move to Europe?

My plan is to move to Europe. I don’t think it is much cheaper. Think taxes, fuel, clothes and many other things. It just depends what and where. I have paid 5 euros for a small cup of coffee so many times... a 9 euro sandwich.... 5 euros per gallon of gas... that is not that cheap. Oh and the taxes...
by jose
Sun Oct 27, 2019 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: I no longer plan on retiring early
Replies: 110
Views: 16178

Re: I no longer plan on retiring early

So you changed your mind and don’t plan to retire early anymore because you enjoy your job. Nothing wrong with that! You will be able to afford that choice when you are totally financially independent. At that point, you will decide to continue working or also will be able to change your mind again....
by jose
Wed Oct 09, 2019 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: Half of Retirees Afraid to Use Savings
Replies: 111
Views: 13309

Re: Half of Retirees Afraid to Use Savings

Continuing with the human capital concept, When you are young you have human capital, and no financial capital. When you work and save, you convert human into financial capital. When you are retired you have no human capital, only financial. When are you more wealthy? I think most people are most we...
by jose
Thu Oct 03, 2019 3:23 pm
Forum: Non-US Investing
Topic: Not so happy in Denmark... individual stocks better than index funds? [US ex-pat]
Replies: 43
Views: 4514

Re: Not so happy in Denmark... individual stocks better than index funds? [US ex-pat]

I think that abusive taxation of MF in Denmark mirrors the US doing the same for a long time: PFIC. It is a punitive tax that forces U.S. "persons" to invest only in U.S. domiciled instruments. When other countries like Denmark do the same thing the U.S. does, American expats get caught in a catch-2...
by jose
Tue Oct 01, 2019 3:08 pm
Forum: Personal Consumer Issues
Topic: Non stick pan preference?
Replies: 46
Views: 3758

Re: Non stick pan preference?

Cast iron. Wash without soap. Nothing sticks. Use anywhere, bullet proof (literally).

Lasts forever, put in in your will.

jose
by jose
Mon Sep 30, 2019 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Half of Retirees Afraid to Use Savings
Replies: 111
Views: 13309

Re: Half of Retirees Afraid to Use Savings

I had an aunt that was very frugal. She drove a cheap car, lived with relatives and didn't spend money. She was generally a fearful person. When she passed away, it turned out she had saved almost $1 million. My uncle on the other hand had a very low paying job, was frugal as well, but was easy to ...
by jose
Mon Sep 30, 2019 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Half of Retirees Afraid to Use Savings
Replies: 111
Views: 13309

Re: Half of Retirees Afraid to Use Savings

I propose an explanation, and a solution: 1. People are either spenders or savers. Few are in the gray area. This is a permanent trait. 2. Spenders are likely to spend all they have, both before and after retirement. 3. Savers are reluctant to spend, both before and after retirement. (This explains...
by jose
Thu Sep 26, 2019 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Half of Retirees Afraid to Use Savings
Replies: 111
Views: 13309

Re: Half of Retirees Afraid to Use Savings

I propose an explanation, and a solution: 1. People are either spenders or savers. Few are in the gray area. This is a permanent trait. 2. Spenders are likely to spend all they have, both before and after retirement. 3. Savers are reluctant to spend, both before and after retirement. (This explains ...
by jose
Tue Sep 24, 2019 5:16 pm
Forum: Personal Consumer Issues
Topic: Uber - first time user - will I get picked up
Replies: 36
Views: 3870

Re: Uber - first time user - will I get picked up

I trust Uber much more than any alternative mode of transportation to the airport. Schedule your trip in the App. If it says the trip is scheduled, the car is coming. You will see it coming in the App map, and can talk with the driver while he/she comes. I have never had an issue with an Uber driver...
by jose
Tue Sep 17, 2019 5:01 pm
Forum: Personal Investments
Topic: Rule of 55 and 401k rollover to 457(b)
Replies: 3
Views: 536

Re: Rule of 55 and 401k rollover to 457(b)

I found this: https://www.thebalance.com/what-is-the-rule-of-55-2894280 It says "The Rule of 55 only applies to assets in your current 401(k) or 403(b)—the one you invested in while you were at the job you are considering leaving at age 55 or older. If you have money in a former 401(k) or 403(b), it...
by jose
Tue Aug 13, 2019 2:29 pm
Forum: Personal Investments
Topic: Its it time to light the FIRE -
Replies: 34
Views: 4952

Re: Its it time to light the FIRE -

Oh, if you are moving to Europe, a lot of concerns go away, especially healthcare, insurance and home maintenance. You just have to manage and live with FX risk and higher taxes. All your pre-tax, your earnings and interest, and SS have to go through European tax rates, lots of reporting to both gov...
by jose
Tue Aug 13, 2019 11:28 am
Forum: Personal Investments
Topic: Its it time to light the FIRE -
Replies: 34
Views: 4952

Re: Its it time to light the FIRE -

If he wants what Fritz at The Retirement Manifesto describes as "recreational employment" (i.e. an improved RE to "retire early"), that would be possible but certainly not required if the numbers he's provided are accurate. This is probably off-topic, but do you have a link for this? I'd be persona...
by jose
Wed Jul 17, 2019 5:05 pm
Forum: Personal Investments
Topic: US citizen retiring in Spain - portfolio concern
Replies: 25
Views: 2462

Re: US citizen retiring in Spain - portfolio concern

With FPIC you can still buy them, only the US will tax profits at very high rates. I am not sure Euro government bonds would qualify as FPIC as they are not "pooled". Even a US domiciled euro bond fund would be OK. To your specific question about hedging the bond part of your portfolio, I would say ...
by jose
Tue Jul 16, 2019 7:15 pm
Forum: Personal Investments
Topic: US citizen retiring in Spain - portfolio concern
Replies: 25
Views: 2462

Re: US citizen retiring in Spain - portfolio concern

Regarding the cost of living, prices are not very different, the main difference is the cost of healthcare. All people in Spain have free healthcare, so that pushes private healthcare down. Other than that, I would say that prices of goods in Spain are similar to the US, and many families live on 2...
by jose
Tue Jul 16, 2019 7:02 pm
Forum: Personal Investments
Topic: US citizen retiring in Spain - portfolio concern
Replies: 25
Views: 2462

Re: US citizen retiring in Spain - portfolio concern

thanks jose Unfortunately this is what my current plan is that just keep Euro in bank account with 0% (which is allowed for US investors). My worry is that keeping up to 30% cash (0% interest) is not optimal. Any better alternatives? This seems pretty poor? I am happy with stock exposure with VT an...
by jose
Tue Jul 16, 2019 6:54 pm
Forum: Personal Investments
Topic: US citizen retiring in Spain - portfolio concern
Replies: 25
Views: 2462

Re: US citizen retiring in Spain - portfolio concern

Regarding the cost of living, prices are not very different, the main difference is the cost of healthcare. All people in Spain have free healthcare, so that pushes private healthcare down. Other than that, I would say that prices of goods in Spain are similar to the US, and many families live on 2,...
by jose
Tue Jul 16, 2019 6:19 pm
Forum: Personal Investments
Topic: US citizen retiring in Spain - portfolio concern
Replies: 25
Views: 2462

Re: US citizen retiring in Spain - portfolio concern

I think that to euro hedge your overall portfolio you can: In fixed income, buy euros and put them in a bank account in Europe. You can try to open a non-resident account in Spain and leave your cash there at 0%. That is actually a good return, since interest rates in Euros are negative. I would sug...
by jose
Wed Jun 19, 2019 6:31 am
Forum: Investing - Theory, News & General
Topic: happy when the market is down - want to understand
Replies: 42
Views: 3813

Re: happy when the market is down - want to understand

That is a great post, nisiprius and I appreciate your insight and agree with what you say. That said, my only issue with stay the course, with which I also generally agree, is that the market is the market, equally fresh when high or low, and you are buying exactly the same "commodity" Warren Buffet...
by jose
Wed Jun 19, 2019 5:24 am
Forum: Investing - Theory, News & General
Topic: happy when the market is down - want to understand
Replies: 42
Views: 3813

Re: happy when the market is down - want to understand

Scary as it was, the 2008-2011 period was the best thing that ever happened to many investors. What a bargain! I went 100% in when I saw all experts agreeing that I should stay out. I made more money in that mouse click than in a year of work. But even people who stayed the course did very well duri...
by jose
Wed Jun 19, 2019 5:14 am
Forum: Investing - Theory, News & General
Topic: happy when the market is down - want to understand
Replies: 42
Views: 3813

Re: happy when the market is down - want to understand

The general assumption -and quite reasonable- is that eventually the market will go up no matter what it does now. Companies will sell stuff, make money, there will be inflation... Maybe the best way to understand this is considering the opposite scenario. You buy stocks when the market is "great" (...
by jose
Wed Jun 12, 2019 6:37 am
Forum: Personal Consumer Issues
Topic: Anything you wish you had spent money on when you were younger?
Replies: 73
Views: 7768

Re: Anything you wish you had spent money on when you were younger?

Looking at the first 64 responses, it looks like "spending" is overrated. With the exception of that pair of shoes in the 80s, (or whiskey and women :beer) nothing stands out. Many answers are about investing or saving, not spending. Most spending answers are about travel, which becomes contested af...
by jose
Wed May 29, 2019 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: Retire at 55, what's the magic number
Replies: 185
Views: 31663

Re: Retire at 55, what's the magic number

When I: 1. Cross my 2nd. bend point in SS. To be conservative, I don't count SS. 2. Am not financially responsible for other people. 3. Have 30x desired (not minimum) expenses in retirement savings. 4. Know it is time to retire and you will live better (my magic age is 55). Then, I will retire and u...
by jose
Wed May 29, 2019 5:50 am
Forum: Investing - Theory, News & General
Topic: [Nominal] Annuities are a bet on future inflation rates and should not be purchased by retirees
Replies: 183
Views: 14117

Re: Annuities are a bet on future inflation rates and should not be purchased by retirees

There is a lot of financial, NPV analysis going on in this thread. Each time I see financial analysis on annuities, I think they are being evaluated as investments, which they are not. Annuities are insurance products, and therefore they cost money and are expensive so they do not make sense from a ...
by jose
Tue May 28, 2019 6:20 am
Forum: Personal Finance (Not Investing)
Topic: Annuity purchase
Replies: 27
Views: 3033

Re: Annuity purchase

For a fixed term, the calculation to compare with a CD ladder is straightforward, but I doubt it is more advantageous. For example, you can get out of a CD ladder easily by not renewing CDs or paying EWP. I see the annuity as a pure insurance for longer life than expected . In that case, it only mak...
by jose
Mon May 27, 2019 6:02 am
Forum: Personal Finance (Not Investing)
Topic: Completely freaked out about withdrawing from retirement accounts....
Replies: 75
Views: 10969

Re: completely freaked out about withdrawing from retirement accounts....

There are some reasons retirement can be emotionally challenging. I am not retired yet, but I know this will happen to me. 1. There are 2 kinds of people: savers and spenders. You are in one of these groups, and cannot switch to the other. It's in your brain. Rational Boglehead retirement implies ma...
by jose
Fri May 24, 2019 5:19 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 13885
Views: 2278746

Re: U.S. stocks in freefall

Why does this thread still exist? Has it not run its course? The thread allows for ongoing discussion and commentary without forum members creating new threads every time they wish to opine. This sort of thing is common on discussion forums. Then why not create a pinned thread called "Open thread a...
by jose
Fri May 24, 2019 4:52 am
Forum: Personal Consumer Issues
Topic: Relocate to Charleston SC?
Replies: 57
Views: 6257

Re: Relocate to Charleston SC?

Charleston is a very desirable (and desired) place to live. It is full of tourists, half of them thinking: can I live here? They ask "How much is a house like this?" "Can I get a job?" The big decision is whether you want to move to the South. North America is a place with issues. Do you prefer heat...
by jose
Wed May 22, 2019 7:29 am
Forum: Investing - Theory, News & General
Topic: Don't add currency risk on top of equity risk
Replies: 68
Views: 5330

Re: Don't add currency risk on top of equity risk

A stream of research called " the exchange rate exposure puzzle " analyzes the lack of impact of FX exposure on firm valuation. Firms tend to hedge their transactions to show consistent earnings in their home currencies. This happens in the short therm (within the year) and for transaction exposure ...
by jose
Wed May 22, 2019 4:01 am
Forum: Investing - Theory, News & General
Topic: Don't add currency risk on top of equity risk
Replies: 68
Views: 5330

Re: Don't add currency risk on top of equity risk

I think there is an illusion of currency denomination of assets that confuses many people between holding assets and holding currencies. The currency in which an asset is denominated does not really matter. Any fluctuations in the currency will be compensated by the value of the asset in those curre...
by jose
Thu May 16, 2019 7:57 am
Forum: Non-US Investing
Topic: Currency risk for the long term [Europe]
Replies: 19
Views: 1791

Re: Currency risk for the long term [Europe]

If you plan to live in Euros, your liabilities (future expenses) are in Euros, and your assets should be preferably exposed to the Euro. In $/Euro terms, in spite of being the two largest currencies, the medium term fluctuations are very significant and sharp, so you should not be exposed to pure do...
by jose
Tue May 14, 2019 3:52 am
Forum: Forum Issues and Administration
Topic: For how long will the forum be around?
Replies: 94
Views: 9878

Re: For how long will the forum be around?

Until active outperforms passive, and market timers get wealthy.

Jose
by jose
Wed May 01, 2019 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: 20 countries where 200K in retirement savings will last you decades
Replies: 234
Views: 32159

Re: 20 countries where 200K in retirement savings will last you decades

I am very familiar with Spain. It is very developed with great hospitals, roads and infrastructures, often better than the U.S. All cities are walkable and there is always all services close. Crime is very low. Spain is not really cheap. People go to many places for food and drink, and those little...
by jose
Mon Apr 29, 2019 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: 20 countries where 200K in retirement savings will last you decades
Replies: 234
Views: 32159

Re: 20 countries where 200K in retirement savings will last you decades

Here is my take on it. For many of the reasons given, developing countries are generally out, and that leaves only European countries in the list. Portugal, Spain, France, Italy tend to be favorites. As in the US, prices vary between rural and urban, or how desirable areas are. Coastal is expensive....
by jose
Tue Apr 09, 2019 6:39 pm
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 906
Views: 121672

Re: That's enough for me in 2019

if your RISK TOLERANCE has changed, then rebalance to a lower allocation. Sounds like your risk tolerance has changed, so i would rebalance. People have risk tolerance changes for all sorts of life events, aging, job issues, feelings of financial security,etc. if yours has changed then rebalance to...
by jose
Fri Mar 15, 2019 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Another Can I Retire Question
Replies: 27
Views: 2916

Re: Another Can I Retire Question

I agree that the budget math works for you quitting. I also believe that you should not sleep 4 hours, in an unbearable situation with a bad supervisor and so on, if you have a net worth of $3.5M. But, there is another way to look at it. Your current income is 8% of your net worth. After buying a ho...
by jose
Wed Feb 20, 2019 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: 4% SWR - how confident are you?
Replies: 117
Views: 9010

Re: 4% SWR - how confident are you?

I am in the same situation as the O.P. and this is my plan based on 2 factors: 1. Mathematical certainty of VPW. VPW 4% during bridge, perhaps reducing to 3% after SS. This is an asymptotic function that, as others have said, will never deplete the portfolio. I mean, mathematically the earth will di...
by jose
Thu Sep 20, 2018 4:54 pm
Forum: Personal Consumer Issues
Topic: Did you really have something to retire to?
Replies: 132
Views: 12763

Re: Did you really have something to retire to?

Work provides more than a paycheck. It gives you: a social environment (people to interact with) an intellectual stimulation an entertainment a source of pride (helping others) a time/place structure wife" at home whose company you enjoy? Fair enough. I stand corrected. Wife still works (7 working ...
by jose
Wed Sep 19, 2018 8:40 pm
Forum: Personal Consumer Issues
Topic: Did you really have something to retire to?
Replies: 132
Views: 12763

Re: Did you really have something to retire to?

Work provides more than a paycheck. It gives you: a social environment (people to interact with) an intellectual stimulation an entertainment a source of pride (helping others) a time/place structure Most people are immerse in a large or small family, so the family provides all of that. There might ...
by jose
Thu Jul 12, 2018 12:33 pm
Forum: Investing - Theory, News & General
Topic: COMING SOON: BOGLEHEADS PODCASTS
Replies: 367
Views: 23382

Re: COMING SOON: BOGLEHEADS PODCASTS

Bogle Talking Heads.

I'll be listening.

joe
by jose
Fri Mar 16, 2018 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Those with high savings rate: why?
Replies: 249
Views: 40831

Re: Those with high savings rate: why?

I think frugality is a gene and perhaps a cultural trait. A value. For a naturally frugal person, saving is not a sacrifice , it is a pleasure. The marginal utility of expenses diminishes quickly after your basic needs are met. You get more utility from saving than you do from spending. On top of th...
by jose
Sat Jul 01, 2017 7:17 am
Forum: Personal Consumer Issues
Topic: Ideas for a week in Spain
Replies: 42
Views: 4018

Re: Ideas for a week in Spain

Victoria, I wrote a reply yesterday and did not get through after several attempts.. Yes, bring a jacket to Andorra. I love the place. It is very commercial, particularly high end, electronics, jewelry and sporting goods. Lots of shopping and people. You will need a blanket at night. I strongly reco...
by jose
Sat Jul 01, 2017 6:58 am
Forum: Investing - Theory, News & General
Topic: The Index fund fallacy - what we lost sight of!!
Replies: 55
Views: 8802

Re: The Index fund fallacy - what we lost sight of!!

40% stocks international is pretty close to their 47% cap weight.
What is the source? Bloomberg says US is 37%:

http://bsmedia.business-standard.com/_m ... 1-7937.jpg

Perhaps the 47% excludes developing.
by jose
Sat Jul 01, 2017 6:51 am
Forum: Investing - Theory, News & General
Topic: The Index fund fallacy - what we lost sight of!!
Replies: 55
Views: 8802

Re: The Index fund fallacy - what we lost sight of!!

We are all subject to currency risk always, whether we notice it or not. If you invest only in domestic stock, a strong dollar will hurt you because it will hurt exports. If you diversify, it will even out. Foreign assets of companies will depreciate, as will foreign profits. A weak dollar will caus...
by jose
Fri Jun 30, 2017 9:46 am
Forum: Investing - Theory, News & General
Topic: The Index fund fallacy - what we lost sight of!!
Replies: 55
Views: 8802

Re: The Index fund fallacy - what we lost sight of!!

By focusing on "brands" it looks like US is larger than international.

Looking at capitalization, the US is just 37% of the world, so international is twice as big. Why put all your eggs in the same 1/3 of the basket?
by jose
Fri Jun 30, 2017 9:33 am
Forum: Personal Consumer Issues
Topic: Ideas for a week in Spain
Replies: 42
Views: 4018

Re: Ideas for a week in Spain

How about Andorra? It will be crowded, but has a combination of stunning nature and things to do in Andorra la Vella. It has an interesting cultural agenda too, and oh the shopping. I'd say no to Girona. Nothing in Cartagena either, or Tarragona. In the Costa Brava (crowded) my favorite place is Tos...
by jose
Fri Jun 30, 2017 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Can you share some of your financial goals?
Replies: 69
Views: 11073

Re: Can you share some of your financial goals?

+1 sleep at night, peace of mind. One important thing, in order to be in peace, I don't have a financial goal, but a life philosophy . If you have a financial goal such as money or objects, you are increasing your stress, not decreasing it. Life is not a goal. So, I just live below my means, simplif...