Search found 1024 matches

by bozo
Tue May 19, 2009 5:37 pm
Forum: Investing - Theory, News & General
Topic: Buffett: the cheaper, the better
Replies: 32
Views: 5810

Bear with me as I flesh out this scenario. Let's say you decide that your asset allocation is 60/40. In the long run, this portfolio won't outperform 100% in stocks, but you take the tradeoff for less risk. After a 20% slide in the market, a 60/40 allocation may be too conservative since the market...
by bozo
Tue May 19, 2009 5:25 pm
Forum: Personal Investments
Topic: What to do with my windfall?
Replies: 4
Views: 1191

Re: What to do with my windfall?

I've been contacted by a barrister from Africa who is going to cut me in on a sweet deal that will net me over 1 million bucks... I can't say too much about it because the barrister has told me to keep the details of our transaction secret. Anyway, I'm wondering how I should invest this money. Any ...
by bozo
Tue May 19, 2009 2:43 pm
Forum: Personal Investments
Topic: Transition from I-Bonds to TIPS
Replies: 17
Views: 3267

I assume I'll get banned again, but, whatever.

I Bonds, TIPS, whatever the government issues you, SUCK.

Trust me.

Bozo

TIPS funds suck as well. I now assume the Mods will ban me for another month. Oh, well.
by bozo
Tue May 19, 2009 2:15 pm
Forum: Personal Investments
Topic: Taylor, Mel re: VG California Tax-Exempt Money Market
Replies: 12
Views: 2880

OMG, I live in California, and I don't even trust them with my tax refund.

Bozo

PS: Buy California bonds at your peril. Bond funds rate California just about at the bottom, for a reason. Guess what? The only thing of value in California is pizza.
by bozo
Tue May 19, 2009 1:57 pm
Forum: Personal Investments
Topic: Where should I put VG's new Int'l Small Cap ETF?
Replies: 20
Views: 3369

Stick with VEIEX. It's down a tad these days. Give it 30 years. I give all the frozen food in the freezer at least that much of a life. Lunardi's Frozen hamburgers get only 30 days before I whack them. Give your Vanguard funds a decent chance.

Bozo
by bozo
Tue May 19, 2009 2:32 am
Forum: Personal Investments
Topic: Vanguard GNMA
Replies: 137
Views: 49803

My wife's GNMA threw off zilch last month. I suspect too many folks were piling on. You get what you pay for, and all that.

Bozo
by bozo
Mon May 18, 2009 10:58 pm
Forum: Investing - Theory, News & General
Topic: Bye-Bye To Buy And Hold
Replies: 91
Views: 13664

@Brad:

Misunderestimate is right up there with re-litigate.

Bozo

And, yes, I'm trying to stay solvent.
by bozo
Mon May 18, 2009 10:45 pm
Forum: Investing - Theory, News & General
Topic: zz
Replies: 179
Views: 25528

One might argue that there is a "risk premium" in CDs, where you forfeit a certain amount of yield because the bank or thrift is paying a certain amount of insurance. Of course, the trade-off is the insurance. Not real sure Millenium Bank was a handy vehicle. Or anything with "Stanford" attached to ...
by bozo
Mon May 18, 2009 10:10 pm
Forum: Investing - Theory, News & General
Topic: Bye-Bye To Buy And Hold
Replies: 91
Views: 13664

Folks, if your portfolio was merely "decimated" you'd be well off. The concept of being "decimated" goes back to the Romans, by the way. Soldiers who cut and ran, in the legions, got their heads lopped off "one by ten". Decimated. One for every ten lopped off. A ten per cent loss, not a biggee. Deci...
by bozo
Mon May 18, 2009 9:58 pm
Forum: Personal Investments
Topic: Fund retirement accounts or emergency fund?
Replies: 15
Views: 2328

This is hilarious. Only a CPA-in training would ask these questions.

Good for you, CPA-in training.

Sweat more in peace, bleed less in war.

Bozo
by bozo
Mon May 18, 2009 9:44 pm
Forum: Personal Investments
Topic: What is your investment history?
Replies: 46
Views: 7596

Re: Not so "Odd."

Hi metabasalt: Since then all I've read here and in writing by John Bogle and others has reaffirmed my belief in the value of an AA plan, index funds, low fees and staying the course. The odd thing is that I didn't come to this understanding until I was 55. A similar experience happened to me. My f...
by bozo
Mon May 18, 2009 9:33 pm
Forum: Investing - Theory, News & General
Topic: Many Bought Shares High, Sold Low
Replies: 13
Views: 3144

Market-timing was never a particularly good idea. Just be lazy, and let your Vanguard funds do their thing. Cash is also good, if in ladders. The SWR of 4% works nicely. Stuff goes up, stuff goes down, stuff goes round and round. If you live long enough, stuff probably goes up. Unless you live in Ja...
by bozo
Mon May 18, 2009 9:24 pm
Forum: Personal Investments
Topic: Are short term CDs really better?
Replies: 29
Views: 5323

The CMT (that Treasury yield) is the best indicator, in my view. That, and LIBOR.

What the Fed pays, and what banks pay each other, just a thought.

Bozo
by bozo
Mon May 18, 2009 5:13 pm
Forum: Investing - Theory, News & General
Topic: Buffett: the cheaper, the better
Replies: 32
Views: 5810

Warren and I are on the same page. While I doubt he shops at Lunardi's (after all he's in Omaha, and it's too long to drive for the senior discount), I suspect he understands thrift. Anybody with the name "Warren" gets my vote. Warren was my Dad's name. It's my middle name. A Swedish tradition. Thin...
by bozo
Mon May 18, 2009 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Lump sum vs Annuity
Replies: 11
Views: 2776

My Dad didn't give my Mom a choice. He picked the annuity for her, before he died. She's now 93, and glad he picked the annuity. Really glad.

Bozo
by bozo
Mon May 18, 2009 2:20 pm
Forum: Personal Investments
Topic: What is your investment history?
Replies: 46
Views: 7596

I never bought a stock where I couldn't afford to lose.

I usually fulfilled my expectation.

I.e., losing.

Bozo
by bozo
Mon May 18, 2009 1:52 pm
Forum: Investing - Theory, News & General
Topic: How much for retirement - 25 x spending ... and inflation?
Replies: 31
Views: 8715

It's all based on mortality. Bozo Thank goodness we will live forever! - Ron Ron, if I made it through the 60s and 70s, I suspect I'll make it through the next ten years. The folks at Social Security assume that much. At least that's what they're basing my monthly check on. The present value of my ...
by bozo
Mon May 18, 2009 10:12 am
Forum: Investing - Theory, News & General
Topic: How much for retirement - 25 x spending ... and inflation?
Replies: 31
Views: 8715

There are calculators which approximate the present value of Social Security payments. It's all based on mortality.

Bozo
by bozo
Sun May 17, 2009 11:45 pm
Forum: Investing - Theory, News & General
Topic: Nostalgic 1982 CD (certificate of deposit)
Replies: 51
Views: 9964

"Back in the days", in the early 80's, getting 10% plus was no big deal. The "huge deal" was being smart enough to buy a thirty year bond at those rates.

That, my friends, was smart. $200K or so in those bonds would have been nice.

I didn't do it, as I was stupid.

Bozo
by bozo
Sun May 17, 2009 11:39 pm
Forum: Personal Investments
Topic: What is your investment history?
Replies: 46
Views: 7596

@Steve: Rancho Mirage is not too shabby. I suppose you guessed right from time-to-time. Bozo Hi Bozo, We guessed right only about what we did: save, live frugally, take advantage of 403b, have one companion for 34 years and who thinks the same, read, controlling debt and spending, learned from this...
by bozo
Sun May 17, 2009 11:29 pm
Forum: Investing - Theory, News & General
Topic: Nostalgic 1982 CD (certificate of deposit)
Replies: 51
Views: 9964

Surprisingly enough, I actually do get discounts on groceries. Lunardi's has that 5% off on Tuesdays and Thursdays. It's amazing, but all us old farts shop those days. We bump into each others carts and compare stuff. It's fun, in a weird sort of way. Bumper cars for the Rossmoor set, so to speak. B...
by bozo
Sun May 17, 2009 11:14 pm
Forum: Investing - Theory, News & General
Topic: How much for retirement - 25 x spending ... and inflation?
Replies: 31
Views: 8715

Stated another way, the SWR is 4%. I've tweaked the SWR any way come Sunday, and it always works out the same. The point being, once you're retired, you're gonna die. Bet on it. Take SS at 62. Trust me.

No point in giving all that cash to the kids.

Bozo
by bozo
Sun May 17, 2009 11:08 pm
Forum: Investing - Theory, News & General
Topic: zz
Replies: 179
Views: 25528

Ouch, sscritic spelled it out.

Why, oh why, do folks try to time the market?

Ladder, don't get madder.

Bonds, CDs, stocks, real estate. It's all relative.

Bozo
by bozo
Sun May 17, 2009 10:55 pm
Forum: Investing - Theory, News & General
Topic: Stress Test: How bad is the recession where you live?
Replies: 10
Views: 2161

Re: Stress Test: How bad is the recession where you live?

mathwhiz wrote:This is a cool interactive map from AP.

http://hosted.ap.org/dynamic/files/spec ... tress_inde

x/index.html?SITE=YAHOO&SECTION=HOME
My wife is totally unaffected by the recession. She keeps Whole Foods afloat single-handedly.

Bozo
by bozo
Sun May 17, 2009 10:47 pm
Forum: Investing - Theory, News & General
Topic: zz
Replies: 179
Views: 25528

@Dan:

I still submit, folks who are worried about multiple FDIC limits, and/or the basis points thrown off by bond funds, as opposed to individual bonds, have a wee tad too much money on their hands.

Mind you, I'm not opposed to being rich. Being rich I like. A lot.

Bozo
by bozo
Sun May 17, 2009 10:07 pm
Forum: Investing - Theory, News & General
Topic: Bye-Bye GLD
Replies: 5
Views: 1760

You sold GLD (that rhymes, by the way, sold, gold, whatever) at the tippee top. Good for you. Now, might I suggest (as a contrarian) you "invest" in garden-variety stuff.

Just a thought.

Bozo
by bozo
Sun May 17, 2009 9:49 pm
Forum: Personal Investments
Topic: What is your investment history?
Replies: 46
Views: 7596

I got serious about investing in 1999. That was a bad break for the market, it has yet to recover from the shock waves seemingly created by my attention. :lol: Chas I got serious about investing when I was 8. It's all about being obsessive/compulsive. I'm now 62. Stamps, baseball cards, neckerchief...
by bozo
Sun May 17, 2009 9:25 pm
Forum: Investing - Theory, News & General
Topic: WP: Bogle - Don't Count on your 401k
Replies: 47
Views: 7861

Folks can easily save 15%. Actually, it's not much of a stretch to save 25%. I hear Chinese folks do that routinely. My wife and I did that every year, year-in-year-out, and now it's paying off. And we're not Chinese. I'm a lazy guy. Having cash in the bank helps me be lazy. Lazy, lazy, lazy. Bozo P...
by bozo
Sun May 17, 2009 9:16 pm
Forum: Personal Investments
Topic: What is your investment history?
Replies: 46
Views: 7596

@Steve:

Rancho Mirage is not too shabby. I suppose you guessed right from time-to-time.

Bozo
by bozo
Sun May 17, 2009 9:07 pm
Forum: Investing - Theory, News & General
Topic: "Not A Good Time to Be Middle-Aged"
Replies: 46
Views: 7432

@Harold: I don't think we had perverts in Leawood, Kansas, back in the 50's. But, it was a fairly tame suburb. We'd actually walk to the closest movie theater (about 5 miles away) and walk to school through the snow. Now, would I advise our children (who reside in SF, might I add) to let our grand-c...
by bozo
Sun May 17, 2009 8:54 pm
Forum: Investing - Theory, News & General
Topic: WP: Bogle - Don't Count on your 401k
Replies: 47
Views: 7861

I, for one, never "counted" on my (or my wife's) 401K/IRA to retire upon. It was just something to add to Social Security, among other things. The main contributor to our retirement was, and always will be, cash. Bonds. Stuff like that. Age in bonds, it seldom fails you. And remember, CDs are merely...
by bozo
Sun May 17, 2009 8:37 pm
Forum: Personal Investments
Topic: What is your investment history?
Replies: 46
Views: 7596

I suspect most folks posting here are/were obsessive-compulsive savers. You don't see a lot of posts where folks are seeking Suze Orman's "cut up your credit card" advice. After all, this is not an "I'm broke, help me" forum. It's more like "I'm rich, help me get richer". That, I can deal with. Bozo
by bozo
Sun May 17, 2009 8:16 pm
Forum: Personal Investments
Topic: Alternative to Pentagon Federal CU
Replies: 17
Views: 3765

@norris: Not PenFed, but I got the same rate (approx) with USAA back in August of 2006. Five year IRA CD at 5.91%. Loaded up on that one. I'll be just under the FDIC limit when it matures (it's $250K for IRAs, what I call the "old fart special"). I so love compound interest. Bozo PS: If you guys kee...
by bozo
Sun May 17, 2009 8:06 pm
Forum: Personal Investments
Topic: Are short term CDs really better?
Replies: 29
Views: 5323

Amplify is OK, in the ball-park, but just OK. I just got 3.25% on a 2 year at First Republic. No free ball-point pens, mind you. In addition, the rate dropped 20 basis points AS I WAS SITTING THERE opening the CD. No kidding. It's not as if I were buying the friggin' bank. Actually, First Republic i...
by bozo
Sun May 17, 2009 7:55 pm
Forum: Personal Consumer Issues
Topic: Car dealers - can someone explain?
Replies: 57
Views: 11480

@Yesosaka:

Regrettably, that's exactly the point. Fewer dealers = less competition. Less competition = higher markups. You want a ride home? Buy from that local dealer with the higher mark-ups.

It's all about trade-offs.

The only question is whether my 1994 Buick will die before me.

Bozo
by bozo
Sun May 17, 2009 7:46 pm
Forum: Investing - Theory, News & General
Topic: Cash in Permanent Portfolio?
Replies: 5
Views: 1759

Cash (as in a ladder of CDs) is nice for your balanced IRA. Bonds held within a balanced fund (I'm thinking VBIAX, here) also nice. It's hard to argue against cash these days. Or any days, for that matter. The last I checked, you could spend cash at the drug store. Stock certificates, well, they don...
by bozo
Sun May 17, 2009 7:36 pm
Forum: Personal Investments
Topic: CD with POD beneficiaries = extra FDIC coverage ?
Replies: 10
Views: 2540

@Joe:

Rule-of-thumb: if you have to worry about multiple FDIC insurance limits, you have too much money.

Bozo
by bozo
Sun May 17, 2009 7:20 pm
Forum: Investing - Theory, News & General
Topic: zz
Replies: 179
Views: 25528

Folks, the key is to ladder. Don't get madder, just ladder.* Rates are in the tank now, but they'll go up (they can't go down much from here, I think we'd all agree). Short-term bond funds = OK. Short-term individual bonds = OK as well. Short-term CDs = yucky at present, but they'll turn. If you can...
by bozo
Sun May 17, 2009 6:53 pm
Forum: Personal Consumer Issues
Topic: if you had only 1 magazine on an 8 hr flight...
Replies: 87
Views: 13637

The Economist. But you have to start reading at the back, with the weekly Obit. Then work your way through the books you'll never read. Then the top news from Sri Lanka, and the latest gossip from the UK. Then flip to the front, for all the Ads for jobs you'd never qualify for. Well, it's better tha...
by bozo
Sun May 17, 2009 6:46 pm
Forum: Personal Consumer Issues
Topic: Name your top favorite tv shows
Replies: 188
Views: 31509

Colbert (natch)
The Daily Show
anything regarding WWII on the History Channel (since I know how it came out, in the end)

The third choice always puts me to sleep, which is a plus.

Bozo
by bozo
Sun May 17, 2009 3:12 pm
Forum: Investing - Theory, News & General
Topic: Nostalgic 1982 CD (certificate of deposit)
Replies: 51
Views: 9964

@Stratton:

"Personal inflation rates" tend to be variable. My wife shops at Whole Foods. I shop at Lunardis. Her personal inflation rate is higher than mine (but, then, I shop on Tuesdays and Thursdays, when I get the senior discount).

Bozo
by bozo
Sun May 17, 2009 3:04 pm
Forum: Personal Investments
Topic: Alternative to Pentagon Federal CU
Replies: 17
Views: 3765

I will keep my powder dry with respect to PenFed.

Thank you for the comments.

Bozo
by bozo
Sun May 17, 2009 2:48 pm
Forum: Personal Consumer Issues
Topic: Car dealers - can someone explain?
Replies: 57
Views: 11480

I agree with "fishndoc/Wayne". Local dealers are more than just numbers on a page. They sponsor little league teams, they give you rides home, etc. More to the point, you TRUST them. I really, truly, think GM (and Chrysler) are missing this essential point. My mother-in-law (now deceased) used to bu...
by bozo
Sun May 17, 2009 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: What is the next bubble ?
Replies: 53
Views: 9716

Karl wrote:
Swivelguy wrote:Holding a treasury to maturity always makes you money...
A hallow victory if a Big Mac costs $10,000 when the bond matures due to hyperinflation.
(a) I think the word is "hollow" and (b) if a Big Mac ever costs $10,000, well, I'm moving to Zimbabwe.

Bozo
by bozo
Sun May 17, 2009 2:28 pm
Forum: Investing - Theory, News & General
Topic: Nostalgic 1982 CD (certificate of deposit)
Replies: 51
Views: 9964

Yup, I "bought" a 10 year CD for my Daughter at 10%. Back in the days.

She just used it to buy her first house.

She loves the house, by the way.

Bozo
by bozo
Sun May 17, 2009 2:12 pm
Forum: Investing - Theory, News & General
Topic: zz
Replies: 179
Views: 25528

I think it is too funny that folks wrangle over a few basis points here or there. Bond funds = good. Individual bonds (assuming they're guaranteed by the FDIC, NCUA) = good. CDs are nominals, after all. Once you hit the big "60", (as in 60 years old), you'd best be thinking capital preservation. A t...
by bozo
Sun May 17, 2009 1:56 pm
Forum: Personal Investments
Topic: What is your investment history?
Replies: 46
Views: 7596

I've been a compulsive saver all my life. At age 8, I banked all my "lawn-mowing" money at Anchor Savings. When I branched out to "snow-shoveling", I banked that as well. My Mom and Dad bought me my first mutual fund at age 21. I'm now 62. I still have that fund. PS: the real rate of return on that ...
by bozo
Sun May 17, 2009 1:39 pm
Forum: Personal Investments
Topic: CD with POD beneficiaries = extra FDIC coverage ?
Replies: 10
Views: 2540

John and Mary are frugal savers.

Just a thought.

Bozo

We always named our accounts "John and Joan" since. . . .

my name is John, my wife's name is Joan.
by bozo
Sun May 17, 2009 1:17 pm
Forum: Personal Investments
Topic: Alternative to Pentagon Federal CU
Replies: 17
Views: 3765

@Wayne/fishndoc: I tend to keep my "real money" in places I can trust. Vanguard scores a big +1, anything FDIC or NCUA scores a +1. I'll keep a lookout on PenFed. The CD doesn't mature until August of 2011, so I have a bit of time, so to speak. The CD maturing this August, I'm just flopping it into ...
by bozo
Sun May 17, 2009 10:03 am
Forum: Personal Investments
Topic: Alternative to Pentagon Federal CU
Replies: 17
Views: 3765

@fish/Wayne: At this stage in my life, so to speak, a few basis points here and there are of marginal import. I've heard too many "negatives" regarding PenFed. Their CD rates are nice, I grant you, if you can ladder out. Convince me I'm wrong and should trust PenFed. I have this modest CD coming due...