Search found 11896 matches

by HomerJ
Wed Jan 16, 2019 1:25 am
Forum: Investing - Theory, News & General
Topic: When would you stop being a Boglehead?
Replies: 18
Views: 859

Re: When would you stop being a Boglehead?

Pretty much everyone here (myself included) is convinced about the low-cost, do-it-yourself investing philosophy. But I’m curious: at which point would you start considering to delegate the management of your portfolio to firms like Merrill Lynch and Morgan Stanley? $10M? $50M? Literally never? 1% ...
by HomerJ
Tue Jan 15, 2019 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 126
Views: 6472

Re: Getting a Mortgage when You can Pay Cash for a House

Yeah, because paying off a mortgage and being left with no money is really gonna help when you lose your job. I wrote many times that liquidity and opportunity cost are among the most important reasons to hold a mortgage. It's safer to have a mortgage. An emergency fund is cost of doing business. W...
by HomerJ
Tue Jan 15, 2019 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Millionaire by 40 and How you Did it?
Replies: 90
Views: 9788

Re: Millionaire by 40 and How you Did it?

1 mil it’s not what it used to be. It’s around 8-10 million these days in order to be in the top 1% of the distribution in the US. Top 10% live pretty well too. Yes!. If only ppl were so rational. But relative wealth seems to be more important, as evidenced by the myriad threads that enable forum m...
by HomerJ
Tue Jan 15, 2019 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 126
Views: 6472

Re: Getting a Mortgage when You can Pay Cash for a House

You first deny the validity of history and then pick and chose examples from history the way you like to prove your point. It is unlikely to have high inflation because it did not happen in the past but is it likely to have a S&P 500 return lower than almost any time in history? Maybe you are right...
by HomerJ
Tue Jan 15, 2019 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 126
Views: 6472

Re: Getting a Mortgage when You can Pay Cash for a House

P.S.: I am predicting a recession in 2019 or 2020. The worst possible thing that I can do is to tie up my money in the house. Isn't it exactly the opposite? You have a $300k debt that is at risk in the stock and bond markets. If there is a recession, the value of that $300k you have invested in ris...
by HomerJ
Tue Jan 15, 2019 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 126
Views: 6472

Re: Getting a Mortgage when You can Pay Cash for a House

HomerJ , 1) I am a 60/40 person. <<You are losing money each month.>> 2) No, my portfolio is beating 5% per year. 3) 45% of my portfolio is in the taxable account. KlangFool (1) The bond part of your portfolio is trailing your interest payments. (2) You didn't beat 5% last year even with the stocks...
by HomerJ
Tue Jan 15, 2019 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Millionaire by 40 and How you Did it?
Replies: 90
Views: 9788

Re: Millionaire by 40 and How you Did it?

I started my own business when I was 34. It generated 4x the income I had in my prior salaried job. My net worth before starting the biz was $100k. Hit the 2 comma club when I turned 39. The only lifestyle change we made was eating out more than we used to, otherwise our spending stayed the same. S...
by HomerJ
Tue Jan 15, 2019 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Millionaire by 40 and How you Did it?
Replies: 90
Views: 9788

Re: Millionaire by 40 and How you Did it?

Two income couple making $75k each by your early 30s and living on one salary will get you pretty close. By 45 at least. But if you want to hit that milestone by 40, spend less or make more. We always saved half of our raises. So our lifestyle would still go up year to year, but our savings percenta...
by HomerJ
Tue Jan 15, 2019 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Millionaire by 40 and How you Did it?
Replies: 90
Views: 9788

Re: Millionaire by 40 and How you Did it?

hdas wrote:
Sat Jan 12, 2019 7:58 am
1 mil it’s not what it used to be. It’s around 8-10 million these days in order to be in the top 1% of the distribution in the US.
Top 10% live pretty well too.
by HomerJ
Tue Jan 15, 2019 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 126
Views: 6472

Re: Getting a Mortgage when You can Pay Cash for a House

You first deny the validity of history and then pick and chose examples from history the way you like to prove your point. It is unlikely to have high inflation because it did not happen in the past but is it likely to have a S&P 500 return lower than almost any time in history? Maybe you are right...
by HomerJ
Tue Jan 15, 2019 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 126
Views: 6472

Re: Getting a Mortgage when You can Pay Cash for a House

Also note that paying off a mortgage is not always a choice between stocks or mortgage. Unless you are 100% stocks. Even when we had a primary mortgage, we were 50/50 stocks/bonds. The extra money we used to pay off the mortgage was taken equally from both sides. Paying off a mortgage with bond mon...
by HomerJ
Mon Jan 14, 2019 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 126
Views: 6472

Re: Getting a Mortgage when You can Pay Cash for a House

All this forum is based on the assumption of future being similar with the past. Otherwise nothing makes sense: SWR, investments, retirement and we should have a forum about gold and ammunition instead. "It wouldn't take long" means tens of years at 3% effective interest rate. That's very long in m...
by HomerJ
Mon Jan 14, 2019 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 126
Views: 6472

Re: Getting a Mortgage when You can Pay Cash for a House

Also note that paying off a mortgage is not always a choice between stocks or mortgage. Unless you are 100% stocks. Even when we had a primary mortgage, we were 50/50 stocks/bonds. The extra money we used to pay off the mortgage was taken equally from both sides. Paying off a mortgage with bond mon...
by HomerJ
Mon Jan 14, 2019 8:45 pm
Forum: Investing - Theory, News & General
Topic: Anyone beating the index instead of buying it?
Replies: 51
Views: 5003

Re: Anyone beating the index instead of buying it?

It is not worth the effort. You have to be lucky for 10+ years before it matters. Meanwhile, you could lose everything in any of those 10+ years. KlangFool I don't see how you could lose everything, unless you put everything into one stock, which I'm not advocating. If you put into at least 8 good ...
by HomerJ
Mon Jan 14, 2019 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 126
Views: 6472

Re: Getting a Mortgage when You can Pay Cash for a House

Also note that paying off a mortgage is not always a choice between stocks or mortgage. Unless you are 100% stocks. Even when we had a primary mortgage, we were 50/50 stocks/bonds. The extra money we used to pay off the mortgage was taken equally from both sides. Paying off a mortgage with bond mone...
by HomerJ
Mon Jan 14, 2019 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 126
Views: 6472

Re: Getting a Mortgage when You can Pay Cash for a House

Just to put a number on it, last 30 years S&P 500 had a return of about 1500%. 300k$ invested in 1988 would have been 4.5 million today. So prepaying mortgage was pretty much the largest destroyer of wealth. You going to reimburse the OP if the next 30 years aren't the same as the last 30 years? Be...
by HomerJ
Mon Jan 14, 2019 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Alternatives to Permanent Life Insurance
Replies: 8
Views: 413

Re: Alternatives to Permanent Life Insurance

but I can't seem to figure out what those other options might be beyond just buying index funds in a taxable account. Just buy index funds in a taxable account. That's what I do. You pay very few taxes until you sell. Dividends are around 2% a year, you'll pay 15%-20% on those. That's a 0.3% - 0.4%...
by HomerJ
Mon Jan 14, 2019 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 126
Views: 6472

Re: Getting a Mortgage when You can Pay Cash for a House

My parents are in the opposite situation, have 2 mortgages, but it allows them to live a lifestyle they couldn't afford otherwise. When I was younger my dad joked that when he died he wanted to be down to his last dollar and that seems be the glide path he's on ! This doesn't make any sense. Is the...
by HomerJ
Mon Jan 14, 2019 12:14 pm
Forum: Personal Consumer Issues
Topic: Disciplined with finances, but not so with diet
Replies: 217
Views: 9599

Re: Disciplined with finances, but not so with diet

For people who track calories, how do you handle foods where there's no reliable way to know how many calories there are? Occasionally I get motivated to track my calories, but then I immediately hit a food where I can't tell, and I get frustrated. Example: For lunch I want to have a serving of an ...
by HomerJ
Mon Jan 14, 2019 11:27 am
Forum: Investing - Theory, News & General
Topic: Anyone beating the index instead of buying it?
Replies: 51
Views: 5003

Re: Anyone beating the index instead of buying it?

With 8.8%, I can reach my number in 14 years. With 12%, I can reach my number in 12 years. So, I only gain 2 years. But, I take the risk of losing everything over that 12 years. It is a lousy bet! Yes, of course, it's a lousy bet. But that wasn't the question. Your first response was confusing to t...
by HomerJ
Mon Jan 14, 2019 9:55 am
Forum: Investing - Theory, News & General
Topic: Anyone beating the index instead of buying it?
Replies: 51
Views: 5003

Re: Anyone beating the index instead of buying it?

Folks, https://www.vanguard.com/us/insights/saving-investing/model-portfolio-allocations <<Historical Risk/Return (1926–2017) Average annual return 8.8% Best year (1933) 36.7% Worst year (1931) –26.6% Years with a loss 20 of 92>> This is the basic 60/40 portfolio with an average return of 8.8%. For...
by HomerJ
Mon Jan 14, 2019 9:49 am
Forum: Investing - Theory, News & General
Topic: Anyone beating the index instead of buying it?
Replies: 51
Views: 5003

Re: Anyone beating the index instead of buying it?

Sorry I meant to say annualised over long term so atleast 5+ years prefereably 10+. I know a few famous value investors do but you don't really hear many stories about smaller investors.. if you can consistently beat the index by a couple of % it adds up to a lot over the long term. Sure, but most ...
by HomerJ
Sun Jan 13, 2019 8:31 pm
Forum: Personal Consumer Issues
Topic: Disciplined with finances, but not so with diet
Replies: 217
Views: 9599

Re: Disciplined with finances, but not so with diet

I would rather eat cauliflower than a potato without butter or sour cream or fried in oil. I love broccoli. Not sure how is an unattainable "perfect" diet. Like others have said, everyone is different. If I tried to switch to cauliflower and broccoli, I'd fail on that diet after 3 hours. Maybe 1 ho...
by HomerJ
Sun Jan 13, 2019 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: I know market timing is a fool's game but...
Replies: 59
Views: 4533

Re: I know market timing is a fool's game but...

The trouble with market timing is that, in order to make money, you have to not only make a correct prediction, you have to get the timing right. It's easy to make a prediction that there's going to be a recession. There is always going to be another recession. Getting the timing right, though. Tha...
by HomerJ
Sun Jan 13, 2019 2:56 pm
Forum: Investing - Theory, News & General
Topic: Emerging markets cannot be fairly valued and investors are better off elsewhere: Change my mind :)
Replies: 125
Views: 6902

Re: Emerging markets cannot be fairly valued and investors are better off elsewhere: Change my mind :)

Here's what I honestly believe. (I assume that you are talking about the choice of holding emerging markets at cap weight, or excluding them; not overweighting them or shorting them or anything bold like that). 1) I don't believe it can make much difference, for reasons I explained above. If emergi...
by HomerJ
Sun Jan 13, 2019 2:53 pm
Forum: Investing - Theory, News & General
Topic: Emerging markets cannot be fairly valued and investors are better off elsewhere: Change my mind :)
Replies: 125
Views: 6902

Re: Emerging markets cannot be fairly valued and investors are better off elsewhere: Change my mind :)

Perhaps the markets of countries where the institutions were solid enough and the people honest enough to allow fruitful investing all have already emerged . I have serious doubts that any of the remaining markets will do so in the next century. The institutional and cultural backbone might just no...
by HomerJ
Sun Jan 13, 2019 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: I know market timing is a fool's game but...
Replies: 59
Views: 4533

Re: I know market timing is a fool's game but...

The market will crash. A recession will happen. We don't know when. The trick is to ALWAYS hold an Asset Allocation (AA) that you can stick with if the market crashes 50% tomorrow and takes a while to recover. Because it might. The risk is never zero. The risk may be higher at some times than other ...
by HomerJ
Sat Jan 12, 2019 2:15 pm
Forum: Personal Consumer Issues
Topic: Anyone ever buy Hilton's Timeshares (HGVC)?
Replies: 46
Views: 8449

Re: Anyone ever buy Hilton's Timeshares (HGVC)?

It's important to note how hard they have to SELL these. If they were a great deal, people would be fighting to BUY them. If a product has a whole TEAM of salesmen working on you, it's a pretty good sign it's a bad deal. Watching a commercial one night about some pills (not FDA approved - they were ...
by HomerJ
Fri Jan 11, 2019 10:51 am
Forum: Personal Consumer Issues
Topic: Disciplined with finances, but not so with diet
Replies: 217
Views: 9599

Re: Disciplined with finances, but not so with diet

Most replies here have to do with diet. But the truth is exercise. You have to make the time as in pay yourself first is in savings and investing. You can do it. There are very few success stories with weight that do not include some sort of exercise. You don't have to have a specific goal or plan ...
by HomerJ
Thu Jan 10, 2019 11:08 pm
Forum: Personal Consumer Issues
Topic: Disciplined with finances, but not so with diet
Replies: 217
Views: 9599

Re: Disciplined with finances, but not so with diet

Agree wholeheartedly. People spend billions annually on diet and exercise nonsense, when all they have to do is math. Math was the basis for my successful weight loss plan (posted above), and I ate mostly garbage. Yup. Simple math. Tons of forum posts at MyFitnessPal.com that proves eating dirty vs...
by HomerJ
Thu Jan 10, 2019 10:57 pm
Forum: Personal Consumer Issues
Topic: Disciplined with finances, but not so with diet
Replies: 217
Views: 9599

Re: Disciplined with finances, but not so with diet

I finally learned how to keep the weight off in my late 40s. Eat slow. 10,000 steps a day. Have something you can snack on that is low calorie but filling. I LOVE the taste of many foods. And I ate fast. So I'd want more. Simple example. Hamburger off a grill. I'd always eat one, it was so good, I'd...
by HomerJ
Thu Jan 10, 2019 6:43 pm
Forum: Personal Consumer Issues
Topic: Anyone raised 3 kids WITHOUT buying a 3-row vehicle?
Replies: 82
Views: 5447

Re: Anyone raised 3 kids WITHOUT buying a 3-row vehicle?

Minivans with a sliding door are awesome.

Your life will be SO much easier.

Get 2nd row captain chairs, not a bench in the 2nd row. Keeps the kids apart, plenty of room to put a cooler right there between the kids.
by HomerJ
Thu Jan 10, 2019 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4398

Re: Would your FIRE plan work had your journey started 1965?

Why are you using current annual expense? When you're close to retirement, one's current annual expense should pretty close to what you want in retirement. At least, it's a great starting point. You may have to adjust it if you plan to downsize. You may have to adjust it for health insurance. You m...
by HomerJ
Thu Jan 10, 2019 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4398

Re: Would your FIRE plan work had your journey started 1965?

I am aware of Bengens paper although I have not read the whole thing. However, there are a bunch of articles that make the claim that Bengen's study on this is flawed. This is one from Betterment: https://www.betterment.com/resources/why-the-4-percent-rule-is-broken/ That article is flawed. However...
by HomerJ
Thu Jan 10, 2019 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4398

Re: Would your FIRE plan work had your journey started 1965?

Again, the stock market didn't go down 70% from 1965 to 1982. That completely ignores dividends. The actual DOW price was around 1000 in 1965 and still 1000 in 1982. Flat after 16 years, price-wise. It did go down a lot in real terms though because inflation was a real killer. But not 70%. Dividends...
by HomerJ
Thu Jan 10, 2019 9:50 am
Forum: Investing - Theory, News & General
Topic: AQR Cuts Staff After a Bad Year (39 out of 41 funds down)
Replies: 31
Views: 2592

Re: AQR Cuts Staff After a Bad Year

AQR’s U.S. mutual funds had outflows of $5 billion in the first 11 months of 2018, according to data from Morningstar Inc. Must be people who missed the part about sticking with a factor or alternative strategy through 10 or 20 years of under-performance. Probably thought they could make a quick bu...
by HomerJ
Thu Jan 10, 2019 9:43 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Does The Bucket Approach Destroy Wealth?
Replies: 56
Views: 5695

Re: Larry Swedroe: Does The Bucket Approach Destroy Wealth?

And, the concept of demanding a constant, inflation indexed income in retirement, when for the 45 years of prior adult life I made my outgo fit my income rather than the other way around, seems unrealistic. Maybe I'm different from most people here, but my income was pretty steady throughout my adu...
by HomerJ
Wed Jan 09, 2019 11:34 pm
Forum: Personal Consumer Issues
Topic: MMORPG games
Replies: 54
Views: 3848

Re: MMORPG games

Dungeons and Dragons Online, baby.

Pure nerd here.
by HomerJ
Wed Jan 09, 2019 5:32 pm
Forum: Investing - Theory, News & General
Topic: Why did RAD stock fall so much?
Replies: 15
Views: 920

Re: Why did RAD stock fall so much?

Don't invest in individual stocks. You might want to read this before posting more questions https://www.bogleheads.org/wiki/Getting_started Welcome to Bogleheads! Im asking out of curiosity, not as advice to invest in their stock. How did you even know what happened to RAD? Why were you tracking t...
by HomerJ
Wed Jan 09, 2019 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Do you take inheritance into account when calculating net worth?
Replies: 68
Views: 4484

Re: Do you take inheritance into account when calculating net worth?

9-year old kid: "Dad, are we rich?"

Dad: "Your Mom and I are well off... YOU are flat broke."
by HomerJ
Wed Jan 09, 2019 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4398

Re: Would your FIRE plan work had your journey started 1965?

That is not a problem for me. I do "Pay Yourself First". I auto deduct from my paycheck for the savings. Then, I spend the rest. I could not spend the money that I do not have. In fact, I do not budget at all. You also make a lot of money. Let's not ignore that variable. My wife and I saved half ou...
by HomerJ
Wed Jan 09, 2019 1:53 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 553
Views: 60416

Re: U.S. stocks continue to soar!

While its nice to see my account go back up I was kinda hoping this downturn would last a bit longer so I could buy a bit more at reduced prices. I suppose it could easily start going back down at any moment. Seriously. I completely missed the last run up, since I had pretty much nothing invested y...
by HomerJ
Wed Jan 09, 2019 1:42 pm
Forum: Investing - Theory, News & General
Topic: Why did RAD stock fall so much?
Replies: 15
Views: 920

Re: Why did RAD stock fall so much?

Don't invest in individual stocks. You might want to read this before posting more questions https://www.bogleheads.org/wiki/Getting_started Welcome to Bogleheads! Im asking out of curiosity, not as advice to invest in their stock. How did you even know what happened to RAD? Why were you tracking t...
by HomerJ
Wed Jan 09, 2019 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4398

Re: Would your FIRE plan work had your journey started 1965?

That is not a problem for me. I do "Pay Yourself First". I auto deduct from my paycheck for the savings. Then, I spend the rest. I could not spend the money that I do not have. In fact, I do not budget at all. You also make a lot of money. Let's not ignore that variable. My wife and I saved half ou...
by HomerJ
Wed Jan 09, 2019 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4398

Re: Would your FIRE plan work had your journey started 1965?

OP, I save 1 year of expense every year. My AA range from 70/30 to 60/40. This FIRE plan works under any stock market condition. KlangFool How is it possible to save 1 yr of expense every yr? Are you projecting lower or equal expenses in the future? Example: - gross pay: $100K, - taxes: $30K, - sav...
by HomerJ
Wed Jan 09, 2019 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4398

Re: Would your FIRE plan work had your journey started 1965?

The stock market went down over 70% between 1965 and 1982 , following a 15-year bull market. Now we are standing at the start of another bear market. What if the history repeats itself? A 4% "safe" withdrawl rate is surely not safe... which paper is that and i'd be curious to see what the strategy ...
by HomerJ
Wed Jan 09, 2019 12:58 pm
Forum: Investing - Theory, News & General
Topic: Why did RAD stock fall so much?
Replies: 15
Views: 920

Re: Why did RAD stock fall so much?

Don't invest in individual stocks.

You might want to read this before posting more questions

https://www.bogleheads.org/wiki/Getting_started

Welcome to Bogleheads!
by HomerJ
Tue Jan 08, 2019 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: Why isn't an AA of 75/25 with a SWR 3.75% the standard??
Replies: 57
Views: 5900

Re: Why isn't an AA of 75/25 with a SWR 3.75% the standard??

Probably because a lot of retirees might not be able to stay the course with 75% equities. I know in my brain that it would probably be better with 75%, but my pillow says to be 50%. This. 75% stocks is too scary. 25% in bonds isn't enough to keep me feeling safe during an extended crash. 4% instea...
by HomerJ
Tue Jan 08, 2019 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: Why isn't an AA of 75/25 with a SWR 3.75% the standard??
Replies: 57
Views: 5900

Re: Why isn't an AA of 75/25 with a SWR 3.75% the standard??

Probably because a lot of retirees might not be able to stay the course with 75% equities. I know in my brain that it would probably be better with 75%, but my pillow says to be 50%. This. 75% stocks is too scary. 25% in bonds isn't enough to keep me feeling safe during an extended crash. 4% instea...
by HomerJ
Mon Jan 07, 2019 6:18 pm
Forum: Personal Consumer Issues
Topic: House hunting in San Antonio (relocating from IL) - What to watch out for?
Replies: 31
Views: 1580

Re: House hunting in San Antonio (relocating from IL) - What to watch out for?

livesoft wrote:
Mon Jan 07, 2019 2:22 pm
Here is my post about house shopping and what to look for:
How does these two work together? :)
On a cul-de-sac near the end
3 ways out of the neighborhood (in case fallen trees block the roads).