Amazing that you manage liquidity like that when you are that insolvent. You'll end up more than broke or a multimillionaire, time will tell which.market timer wrote:Now only $135K. Trying to enjoy life as I would without debt. Would be nice to sort of wake up debt-free one day, without experiencing much hardship from saving. Soon, I'll only be on the hook to Uncle Sam.thedude wrote:Dang, aren't you paying down something like $200K in debt?market timer wrote:Rent $2100
Food $1800
Alcohol $900
Alcohol costs inflated by things like bottle service.
Family of 1.
Search found 308 matches
- Thu Nov 19, 2009 11:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: how do these monthly expenses compare to yours?
- Replies: 105
- Views: 15592
- Tue Oct 20, 2009 1:19 pm
- Forum: Investing - Theory, News & General
- Topic: How Scalable is the Bogleheads' Method?
- Replies: 33
- Views: 5276
The expected profitability of active investing increases with the % of money that is indexed.Boglenaut wrote:If everyone (or the $10T me) indexed, eventually there won't be enough "active" money to set the prices....
Monetary incentive thus ensures that we will never see very high %'s of market cap as indexed money.
It's like poker, you play tight if the table is playing loose and vice versa. If you don't want to learn beyond the basics, you 'index' i.e. follow a standard game plan with a tight agressive tilt.
- Sun Sep 20, 2009 3:09 am
- Forum: Personal Finance (Not Investing)
- Topic: Vending Machine Business
- Replies: 25
- Views: 5874
Your time is also money.LesterFreamon wrote:The average cost of product (generic) for the machine is less than $.20 a pack. I can sell this for a $1. 500% markup, 400% margin, and all cash. I could find a worse business.UKbloke wrote:I assume you don't have a job than? Becuase every job is a business, it's just that you only have one customer.
You don't need economic profit to earn a good living. Small businesses easily return 15-20% after expenses (including your labor), even with the occasional mistake along the way.
As far as I can tell, vending machines aren't run by highly sophisticated management teams. The OP will do fine in this biz. A boglehead mentality (cost mindset) seems a good fit.
- Fri Sep 18, 2009 2:11 am
- Forum: Personal Finance (Not Investing)
- Topic: Vending Machine Business
- Replies: 25
- Views: 5874
I believe in EMH with respect to businesses. If it was really profitably, why are you the first person to think to do it? Unless you have something that is non-imitable such as being related to dean of college who will never let anyone else put vending machines until you came along, I dont see how it could really grant you an economic profit for your time/investment/risk. I assume you don't have a job than? Becuase every job is a business, it's just that you only have one customer. You don't need economic profit to earn a good living. Small businesses easily return 15-20% after expenses (including your labor), even with the occasional mistake along the way. As far as I can tell, vending machines aren't run by highly sophisticated managemen...
- Mon Sep 14, 2009 4:45 am
- Forum: Personal Finance (Not Investing)
- Topic: New Grad - No jobs, what to do in spare time?
- Replies: 58
- Views: 8859
- Thu Aug 27, 2009 12:58 am
- Forum: Investing - Theory, News & General
- Topic: WSJ: U.K. Sets Lucrative Tax Loophole
- Replies: 4
- Views: 1153
- Sat Aug 22, 2009 7:29 am
- Forum: Personal Consumer Issues
- Topic: Will you eat out again?
- Replies: 57
- Views: 8464
- Mon Aug 03, 2009 12:06 pm
- Forum: Personal Consumer Issues
- Topic: You know there's a crisis when ...
- Replies: 6
- Views: 1818
- Thu Jul 09, 2009 2:55 am
- Forum: Personal Finance (Not Investing)
- Topic: Semi-retiring in your 30's
- Replies: 105
- Views: 24626
Re: Semi-retiring in your 30's
My business plan is: Improve.neverknow wrote:I wrote up my first business plan - it is notable because it is naive and very funny "Find customers".
neverknow
- Wed Jul 08, 2009 8:11 pm
- Forum: Personal Finance (Not Investing)
- Topic: Semi-retiring in your 30's
- Replies: 105
- Views: 24626
Posters above want to semi-retire early while not giving up the lucrative thing they have going on.
The way to achieve both is to become very good at things that build passive income: write books or guides, automated websites and businesses that are big enough so you can afford professional management.
Now find something you love that fits those criteria and you can not only retire early, you will never have the feeling you work too hard.
The way to achieve both is to become very good at things that build passive income: write books or guides, automated websites and businesses that are big enough so you can afford professional management.
Now find something you love that fits those criteria and you can not only retire early, you will never have the feeling you work too hard.
- Tue Jul 07, 2009 8:17 pm
- Forum: Personal Finance (Not Investing)
- Topic: Looking for a career in emerging markets
- Replies: 19
- Views: 3339
- Wed Jun 10, 2009 6:01 am
- Forum: Investing - Theory, News & General
- Topic: Example of inefficient / irrational market
- Replies: 12
- Views: 2778
- Tue Jun 02, 2009 5:50 am
- Forum: Investing - Theory, News & General
- Topic: Inflation, it's not a bad thing.
- Replies: 25
- Views: 3525
You are more optimistic than me.raymondalombardo wrote:The problem is that you are right, but the people who are of this view don't openly admit it. They just create the circumstances where it becomes the only realistic alternative.Specialized wrote:Fascinating, thanks for posting. It's amazing that you can still find people who think that structural problems with an economy can fixed by devaluing its currency.
- Tue Jun 02, 2009 5:49 am
- Forum: Investing - Theory, News & General
- Topic: Inflation, it's not a bad thing.
- Replies: 25
- Views: 3525
Valuethinker, who owns your body?Valuethinker wrote:Valuethinker wrote:jimdigriztn wrote:Property is theft .dothemontecarlo wrote:Haven't looked at the video, but I think the following arguments could be made:
1) Hoarding wealth in an unproductive way (as opposed to investing or spending it) -- like hoarding land -- is bad for an economy and harmful (maybe even exploitive of) new entrants (e.g., the young) to the economy who need some of that wealth.
2) Inflation is a tax on unproductive hoarding of wealth (just as property taxes are often structured to disincentivize the unproductive hoarding of land).
So a moderate level of inflation is socially and economically useful.
Didn't a fellow named Marx suggest that?
- Tue May 26, 2009 7:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: Career Help
- Replies: 10
- Views: 1997
- Fri May 22, 2009 1:18 pm
- Forum: Personal Finance (Not Investing)
- Topic: Advice for Starting a Business
- Replies: 13
- Views: 2529
I agree. Most really succesful entrepreneurs have the 'growth mindset'. Think in win-win situations. Make the pie bigger together so everybody can benefit. You shouldn't trust anybody in business, but seeing employees (or other stakeholders) as your enemies is not the best way to get rich.SteveB3005 wrote: Not! If you respect your people, your people will respect you.
- Thu May 21, 2009 6:27 pm
- Forum: Investing - Theory, News & General
- Topic: SmartMoney: Why Jeremy Grantham Changed His Mind
- Replies: 102
- Views: 14810
- Wed May 20, 2009 10:11 am
- Forum: Personal Finance (Not Investing)
- Topic: How much $ do you need to retire early?
- Replies: 60
- Views: 13953
Re: Unemployment is a Major Public Health Problem
I am totally guessing but I wouldn't be surprised if the real explaining variable here would be mental and physical activity, rather than employment which is merely an organized way of doing just that.zzcooper123 wrote:Unemployment for any reason increases all-cause mortality. Early retirement greatly increases the risk of early death, even when the unemployment was not for disability related reasons.
Something to think about.
- Wed May 20, 2009 9:59 am
- Forum: Personal Consumer Issues
- Topic: Valuethinker claimed expenses for clearing moat!!
- Replies: 12
- Views: 3155
Who's Jordan? You see, you were probably worried about losing Afghanistan, or the world recession, or some other triviality... The fact that gkaplan asked that question does not imply that he considers Afghanistan or the recession a triviality. It simply means that on a marginal basis, he now likes to know who Jordan is rather than discuss politics or economics on a board where this is not always welcomed, on the internet where he might visit dozens of other sites discussing politics, etcetera. Assuming you can analyze general preferences from observing situation, time and location specific actions is a common mistake among economists. (I don't know if you are one but I've had an 'education' in it and just wanted to point out the similarit...
- Wed May 20, 2009 9:48 am
- Forum: Personal Consumer Issues
- Topic: Valuethinker claimed expenses for clearing moat!!
- Replies: 12
- Views: 3155
Politics is the routinization of corruption, plain and simple. It's a universal human phenomenon to a greater or lesser extent in all complex societies, whether someone is losing a war or not. To some people politics is simple patronage and advantage, to others it is philosophical ideas in conflict. But when it comes right down to it, politicians always do well whether they do good or not. This is an observation, not a judgment! So is business, alas. Unless there is fear of strong legal retribution. No. Business faces competition, which gives an incentive to provide what the costumer wants. It is the fact that governments are monopolies that allows for corruption to take place an a large scale, for a long time. Most of the transactions you...
- Tue May 19, 2009 9:40 am
- Forum: Personal Finance (Not Investing)
- Topic: Where should one be at 30?
- Replies: 103
- Views: 40839
- Mon May 18, 2009 8:53 pm
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
The first part you can measure, the underlined part you can not know (unless you have done surveys or seen research I am unaware of).bob90245 wrote:The percentage of people who have the interest to invest on their own are far outnumbered by those who really have no interest and are happy to have the program do all the work and the thinking for them.UKbloke wrote:Also, what's the point of protecting people with equity caps as they can still invest otherwise anyways...
Anyway, if you believe in this, it's a great market opportunity to start a company that does 'all the work and the thinking for them'.
Except I think that already exists; and from what I see these companies have all the incentives to make sure no potential customers are left unconverted.
- Mon May 18, 2009 8:39 pm
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
Would you allow employers to set up alternative retirement programs for their employees? Would they get the same fiscal treatment? Also, what's the point of protecting people with equity caps as they can still invest otherwise anyways... Most people, especially the young, have legitimate pressing concerns, such as raising their children, paying off school loans, saving for a home, medical issues. Retirement looks far away, so they put off making retirement-related decisions. The point of an auto-pilot system (automatic enrollment, default investments in low cost well diversified index funds, limits on investment types, limits on % invested in equities, etc . -- with opt out provisions) is to make a "failure to decide" into a reas...
- Mon May 18, 2009 8:19 pm
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
- Sun May 17, 2009 12:53 pm
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
- Sun May 17, 2009 12:51 pm
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
Would you allow employers to set up alternative retirement programs for their employees? Would they get the same fiscal treatment? Also, what's the point of protecting people with equity caps as they can still invest otherwise anyways... Most people, especially the young, have legitimate pressing concerns, such as raising their children, paying off school loans, saving for a home, medical issues. Retirement looks far away, so they put off making retirement-related decisions. The point of an auto-pilot system (automatic enrollment, default investments in low cost well diversified index funds, limits on investment types, limits on % invested in equities, etc . -- with opt out provisions) is to make a "failure to decide" into a reas...
- Sun May 17, 2009 9:34 am
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
However, all that does not imply you can - or even if you can, should - force me to use your strategy. If you take your equity cap to its logical conclusion you should force all entrepreneurs to exchange part of their growing company each year to sell bonds and keep their risk profile in check with your philosophy. I am sure this is not your intented consequence. I back Adrian's 50% cap on stocks in an employer-sponsored retirment account. There's nothing stopping you from opting out of the (proposed) program and invest as you wish on your own. Would you allow employers to set up alternative retirement programs for their employees? Would they get the same fiscal treatment? Also, what's the point of protecting people with equity caps as the...
- Sun May 17, 2009 9:32 am
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
This entire thread has a high 'we're the financial elite so let's force the masses into our system' feel around it. More like your posts have the elitists block any deviation from unregulated wild west capitalism because i am on the exploiting winner side of the system attitude no matter how bad the outcome for society is. We Bogleheads voluntarily provide capital for businesses founded by business men that want to run them using our money, that have employees that want to work there and costumers that prefer their products. I don't see this as being exploiting anyone, in principle. That said, I can see your point in reality given that corporations or other special interest groups start lobbying for there own sake, at the expense of societ...
- Sun May 17, 2009 9:22 am
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
As I am sure you realize, a libertarian society would not have a democracy.Index Fan wrote:I tend to lean libertarian on issues, but the moral hazard that results in a democracy when people do not save for retirement and the disasters that visit those who do not know how to invest leads me to think that a low-cost TSP-like plan of forced savings for every worker would be a good idea. I also like the idea of a 50% cap on equity allocation within this plan. A default conservative target-retirement approach or even a straight-up balanced fund approach would be a good thing.
- Sun May 17, 2009 9:20 am
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
So now you also know what my time preference is? Remarkable! The lack of equity cap has not worked out so well because the vast majority of the investing public and 401k advisors are clueless about risk. If this bear market does not teach them that stocks are risky, then nothing will. I am definitely leaning towards the Zivi Bodie camp when it comes to buy & hold asset allocation. Adrian anenu@tampabay.rr.com I applaud you for having studied investing well, and I am sure your Zivi Bodie strategy will serve you well. I am sure sharing your wisdom and rules of thumb will help out many future Bogleheads. However, all that does not imply you can - or even if you can, should - force me to use your strategy. If you take your equity cap to it...
- Sun May 17, 2009 6:16 am
- Forum: Investing - Theory, News & General
- Topic: "My Personal Credit Crisis" by a NYT economics rep
- Replies: 81
- Views: 14943
This guy is his ex-wife's slave. At 4K/month you can easily afford the higher mortgage for your bigger house and an au pair to raise your children. The fact that he did have to pay the equivalent sum without the benefits is just criminal.
This guy's biggest blunder was not living the lifestyle he worked for, but not signing a pre-nup.
This guy's biggest blunder was not living the lifestyle he worked for, but not signing a pre-nup.
- Sun May 17, 2009 6:05 am
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
- Sun May 17, 2009 6:02 am
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
Than he should favor the market and face competition. Also, we have to realize that we represent only one point of view. This entire thread has a high 'we're the financial elite so let's force the masses into our system' feel around it.thenextguy wrote:What if his company is better?UKbloke wrote:So basically Bogle wants to replace the current corporatist scheme with another corporatist scheme that favors his company. I am not impressed.
- Sat May 16, 2009 9:55 pm
- Forum: Investing - Theory, News & General
- Topic: John Bogle--Why We Need A Fed for Retirement
- Replies: 55
- Views: 12307
- Sat May 16, 2009 9:57 am
- Forum: Investing - Theory, News & General
- Topic: "Not A Good Time to Be Middle-Aged"
- Replies: 46
- Views: 7853
- Wed May 06, 2009 8:46 pm
- Forum: Investing - Theory, News & General
- Topic: SEC's flawed roadmap to saving & financial literacy
- Replies: 60
- Views: 7989
You forget to mention the biggest assualt on savings governments put in place: Central banks.Valuethinker wrote:
So the evidence seems to be that, absent forced savings schemes like mandatory pension contributions or mortgage repayment schedules, humans don't save.
The inflationary effects by said central planning of the money supply is far bigger than whatever policy the government implements to give a bit of your money back (e.g. mortgages).
- Wed May 06, 2009 4:34 pm
- Forum: Personal Investments
- Topic: Getting back into stocks?
- Replies: 14
- Views: 3353
I know a sun of a guy who owns 2 casino's and 30+ gaming halls and he told me the best thing that can happen to them is that people win the first time they visit.Boglenaut wrote:I wasn't being facetious about this... she made a few hundred dollars today...Boglenaut wrote:My wife has a friend who decided to become a day trader today.
I wish she had lost money today.
This of course makes sense from a psychological perspective.
- Wed May 06, 2009 4:32 pm
- Forum: Personal Investments
- Topic: Getting back into stocks?
- Replies: 14
- Views: 3353
Indeed, a MSM journalist writing about getting back into stocks is a very bearish signal!market timer wrote:Jack,
Your first two posts on this forum remarkably coincided with the peak of the bond market and trough of the stock market, which were the subjects of your posts. I'm using this 3rd post of yours as a signal to sell stocks, and eagerly await your fourth post.
No changes to my planned purchases though, or what did you expect...
- Wed Apr 29, 2009 3:01 pm
- Forum: Personal Finance (Not Investing)
- Topic: Should I sell my BMW?
- Replies: 72
- Views: 17245
Keep it. Moreover, enjoy the nice engines you all have in your cars as long as it is politically acceptable.
In my country I can only afford a BMW with 2 cilinders short of what it should have and I enjoy the driving experience immensely... it (she:)*) just doesn't have the sound and ease of acceleration a bimmer deserves.
* A BMW takes time to warm up but once running, it keeps going until you are satisfied... and than begs for more.
In my country I can only afford a BMW with 2 cilinders short of what it should have and I enjoy the driving experience immensely... it (she:)*) just doesn't have the sound and ease of acceleration a bimmer deserves.
* A BMW takes time to warm up but once running, it keeps going until you are satisfied... and than begs for more.
- Wed Apr 29, 2009 2:56 pm
- Forum: Investing - Theory, News & General
- Topic: Do you agree with John Hussman?
- Replies: 26
- Views: 5266
- Sat Apr 25, 2009 7:04 pm
- Forum: Personal Consumer Issues
- Topic: That Frugal Thing You Do
- Replies: 642
- Views: 161116
You can live with friends or search for roommates.sschullo wrote:Well, I would think its cheaper for two people to live in one house than one. I don't know, I have not been single in 34 years.preserve wrote:So is staying single frugal or not frugal?Ron wrote:I stayed married (40 years, so far :lol: ).
Ron
- Sat Apr 25, 2009 6:59 pm
- Forum: Investing - Theory, News & General
- Topic: Article:Fin'l markets face a lost generation of investors
- Replies: 42
- Views: 5891
- Sat Apr 25, 2009 8:48 am
- Forum: Personal Finance (Not Investing)
- Topic: Purchasing a home on graduate student income
- Replies: 7
- Views: 2271
In a low interest environment, you should borrow as much as you can. Of course, you'd expect equities to be overinflated too at that point, so there's some risk in putting your money there also.
Anyway, I'd put the 75K in VT (global stock market index) and use the dividends to pay (part of) the rent or mortgage.
Anyway, I'd put the 75K in VT (global stock market index) and use the dividends to pay (part of) the rent or mortgage.
- Wed Apr 22, 2009 12:27 pm
- Forum: Personal Investments
- Topic: Understand the economy and the current crisis in 77 minutes
- Replies: 2
- Views: 1081
Understand the economy and the current crisis in 77 minutes
This video explains fundamental economic insights in a basic island economy and than shows these same fundamentals still apply.
Highly recommended for those who want to understand the economy and the crisis we are currently in!
http://www.youtube.com/watch?v=bFxvy9XyUtg
Highly recommended for those who want to understand the economy and the crisis we are currently in!
http://www.youtube.com/watch?v=bFxvy9XyUtg
- Wed Apr 22, 2009 6:20 am
- Forum: Investing - Theory, News & General
- Topic: I don't understand deflation
- Replies: 38
- Views: 5364
Deflation isn't bad when it is caused by an increase in productivity. M x V = P x Q so P = (M x V)/ Q With: M = money supply (how much the FED prints) V = Velocity of money (how many times each dollar gets spend in the time frame you are looking at) P = Price level Q = Amounts of goods sold As innovation increases productivity year over year, Q increases, hence you can see how even zero inflation is a tax on society imposed by those who print enough money to compensate the higher Q with more M. The other reason you might want to increase M is to cover for a decreasing V. This is when people save more and spend less, i.e. in a recession. They rather keep the money in there pocket than spend it. Debunking this argument would lead me too much...
- Tue Apr 21, 2009 6:48 am
- Forum: Investing - Theory, News & General
- Topic: I don't understand deflation
- Replies: 38
- Views: 5364
Deflation isn't bad when it is caused by an increase in productivity. M x V = P x Q so P = (M x V)/ Q With: M = money supply (how much the FED prints) V = Velocity of money (how many times each dollar gets spend in the time frame you are looking at) P = Price level Q = Amounts of goods sold As innovation increases productivity year over year, Q increases, hence you can see how even zero inflation is a tax on society imposed by those who print enough money to compensate the higher Q with more M. The other reason you might want to increase M is to cover for a decreasing V. This is when people save more and spend less, i.e. in a recession. They rather keep the money in there pocket than spend it. Debunking this argument would lead me too much ...
- Mon Apr 20, 2009 4:06 pm
- Forum: Investing - Theory, News & General
- Topic: Social (Peer-to-Peer) Lending as an Asset Class?
- Replies: 6
- Views: 1987
- Fri Apr 17, 2009 7:52 am
- Forum: Personal Investments
- Topic: Dow 2000?
- Replies: 8
- Views: 2639
Gold has no real returns, risk capital (equity) has. Saying 1:1 ratio will return is saying the new bottom will be deeper, more severe, right?Wonk wrote:I think the argument is a cogent one and a 1:1 ratio is fairly reasonable. What I find compelling is the fact that we've seen nearly 1:1 twice at the bottom of each of the last 2 secular bear markets in equities.Playing along, why is he shooting so low for the gold to Dow ratio (i.e. 1). Dow 4k-5k Possible. Dow 2k = end of american capitalism.
Assuming 3% real returns, the ratio that signals a bottom as deep as the previous 1:1 one should double every ~35 years.
Can someone explain why this logic in wrong or incomplete?
- Mon Apr 06, 2009 4:53 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Bankrupt or Worse
- Replies: 51
- Views: 13564
Incorrect.lmpmd wrote:I feel the odds that vanguard is a fraud is probably less than the odds that a huge asteroid will collide with the earth destroying life, or that nuclear war will wipe out the northeast. It's certainly less that the odds I'll develop some horrible cancer. So I'm not going to lose sleep tonight because 90% of my money is there. Because if I'm logical, then I'll have to worry about the other fears more.
You have to factor in the impact you have on the outcome of the problem.
In other words, you can diversify away Vanguard fraud, but not huge asteroids.
- Mon Apr 06, 2009 11:36 am
- Forum: Personal Consumer Issues
- Topic: Are you related to a well-known person?
- Replies: 88
- Views: 13855
Re: Here's one for you...
Please! We want stories! We NEED stories!Offshore wrote:My first cousin is married to a famous hedge fund manager.
I can't mention his name, but, anyone who reads the Wall Street Journal or lives in NYC knows his name.
I find the whole thing sad and funny. I am Boglehead to the core and would never dream of giving him one cent of my money. His wealth is obscene. I could tell you stories that would evoke emotion (suprise, anger, disbelief).
Trust me, he is famous. Could I capitalize by investing with him? We'll never know!