Search found 381 matches

by Stormbringer
Mon Dec 11, 2017 10:05 am
Forum: Investing - Theory, News & General
Topic: TSM vs High Dividend Yield if I never choose to sell?
Replies: 36
Views: 2301

Re: TSM vs High Dividend Yield if I never choose to sell?

I am in my late 20's and have 2,000,000 to invest. I have a relatively safe government job that will supply me with a pension when I am older. With that time horizon and a pension, I would be inclined to put it all in a Warren Buffett 90/10 portfolio so long as you promise to rarely look at your st...
by Stormbringer
Sun Dec 10, 2017 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: CDs that compound interest payments, at big brokerages ?
Replies: 17
Views: 1499

Re: CDs that compound interest payments, at big brokerages ?

Schwab offers CDs with a coupon frequency of "at maturity" but I've only seen them on 1-year CDs (1.75%).
by Stormbringer
Sun Dec 10, 2017 1:03 pm
Forum: Investing - Theory, News & General
Topic: What mix of intermediate and short term bonds?
Replies: 45
Views: 2534

Re: What mix of intermediate and short term bonds?

Are you in a position to build a CD ladder? I recently switched a portion of my IT bond holdings into CDs, which seem to enjoy a bit higher interest rate.
by Stormbringer
Sun Dec 10, 2017 10:53 am
Forum: Investing - Theory, News & General
Topic: Schwab 25% Cheaper than Vanguard?
Replies: 13
Views: 1438

Schwab 25% Cheaper than Vanguard?

I noticed that Schwab's U.S. Broad Market ETF (SCHB) is now 25% less expensive (.03% vs .04%) than Vanguard's Total Stock Market ETF(VTI).

Is there a catch?
Is there a meaningful difference between the funds?
by Stormbringer
Sat Dec 09, 2017 2:54 am
Forum: Investing - Theory, News & General
Topic: John T. Reed (real estate) reading suggestions
Replies: 6
Views: 696

Re: John T. Reed (real estate) reading suggestions

Have you read any of his books? If so, would you recommend one in particular to get started with? I have read a couple, but I don't recall which ones. The guy is a bit of a crank, but his books are much better than most. In my experience, most real estate books cater to the no-money-down, get-rich-...
by Stormbringer
Thu Dec 07, 2017 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: 33 years old, 13 years IT experience, currently make 63k a year. I need advice to start making more money
Replies: 76
Views: 6466

Re: 33 years old, 13 years IT experience, currently make 63k a year. I need advice to start making more money

I'll admit, it gets pretty depressing to see some of the salaries that other Bogleheads are earning. I would like to start making moves to get myself into another tier financially. I am open to furthering my education (if it makes financial sense) and even switching my career path (if necessary). C...
by Stormbringer
Thu Dec 07, 2017 1:32 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate from SPIA???
Replies: 41
Views: 2461

Re: Safe Withdrawal Rate from SPIA???

moghopper wrote:
Wed Dec 06, 2017 10:50 am
Why assume a need for a CPI adjustment on the SPIA, or a "man-made" one in your scenario?
Because if you bought an annuity in the early 1970s, you lost half of your purchasing power in about eight years. As plenty of other countries have demonstrated, next time could be much worse.
by Stormbringer
Tue Dec 05, 2017 4:09 pm
Forum: Investing - Theory, News & General
Topic: Retreat to cash
Replies: 297
Views: 46311

Re: Retreat to cash

Well, let's see what happens. Unconvinced by the feedback here, I've decided to get out of the market for a while. .... For those of you that want the opportunity to say “I told you so.”, today’s market indexes at the time I placed the orders: Dow: 19,900 S&P: 2260 NAS: 5441 VTI: 116.34 I'm going t...
by Stormbringer
Sun Dec 03, 2017 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Does it always make sense to delay SSA?
Replies: 15
Views: 1188

Re: Does it always make sense to delay SSA?

Like so many things to do with retirement, the "correct" (or at least optimal) answer requires knowing when we are going to die. For the person who dies at age 69, waiting until 70 did not make sense. Conversely, for the person who lives to 95, taking Social Security at 62 didn't make sense either. ...
by Stormbringer
Sun Dec 03, 2017 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Question on inheriting real estate from parents
Replies: 24
Views: 2790

Re: Question on inheriting real estate from parents

In terms of getting a step-up in tax basis and passing onto us tax-free, that's if my parents continue just to own them outright until death when we inherit them (per the trust)? When you say "quit-claim them to an LLC" is that also in the context of once my parents have passed and we are working w...
by Stormbringer
Sun Dec 03, 2017 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Question on inheriting real estate from parents
Replies: 24
Views: 2790

Re: Question on inheriting real estate from parents

Well, you might want to wait a few weeks and see how tax reform shakes out, because estate taxes are in play. As it stands today, you get a step-up in tax basis, so they should pass to you tax-free (unless they are quite large) and with no built-in capital gain. I think it might also wipe out the de...
by Stormbringer
Sun Dec 03, 2017 8:08 am
Forum: Personal Finance (Not Investing)
Topic: How do I convince my employees to invest more?
Replies: 92
Views: 5161

Re: How do I convince my employees to invest more?

This was great, thanks. I read it twice. My favorite line was:
William J. Bernstein wrote:Human nature turns out to be a Petrie dish of financially pathologic behavior.
So true.
by Stormbringer
Sun Dec 03, 2017 8:01 am
Forum: Personal Finance (Not Investing)
Topic: How do I convince my employees to invest more?
Replies: 92
Views: 5161

Re: How do I convince my employees to invest more?

It might help if many of the people replying to this thread actually paid attention to the fact that the OP has a SIMPLE IRA plan. The employer match is 100% on up to 3% of compensation. It can not be higher, but It can be 1% or 2% for two out of any five years. It can be a 2% non-elective contribu...
by Stormbringer
Sat Dec 02, 2017 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: How do I convince my employees to invest more?
Replies: 92
Views: 5161

Re: How do I convince my employees to invest more?

desafinado wrote:
Sat Dec 02, 2017 8:35 pm
How much do you make compared to what your employees make?
Not sure how that is relevant to the question, but I don't take any compensation or distributions from the business. It is all reinvested. I have other income.
by Stormbringer
Sat Dec 02, 2017 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: How do I convince my employees to invest more?
Replies: 92
Views: 5161

Re: How do I convince my employees to invest more?

Why not contribute 3% for everyone without expecting them to contribute? Because this doesn't solve the problem. As most everyone on this forum knows, for people to have a secure retirement a good 10-15% of their check needs to be invested. Giving them 3%, no strings attached doesn't entice them to...
by Stormbringer
Sat Dec 02, 2017 11:11 am
Forum: Investing - Theory, News & General
Topic: Thinking of Bonds to rebalance the portfolio
Replies: 22
Views: 2134

Re: Thinking of Bonds to rebalance the portfolio

ln09348 wrote:
Fri Dec 01, 2017 9:09 pm
bonds for Non tax-advantage account?
You might take a look at I-Bonds, which are currently paying 2.58%. They are slightly tax-advantaged in that the interest is tax-deferred until you cash them in.
by Stormbringer
Sat Dec 02, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: How do I convince my employees to invest more?
Replies: 92
Views: 5161

Re: How do I convince my employees to invest more?

I have observed that most of my coworkers at that salary are not able to invest much. Especially the ones with kids or student debt or only one earner or medical issues. Here that salary would be near or below median for a household and it takes real focus to save enough out of the budget. YMMV bas...
by Stormbringer
Sat Dec 02, 2017 10:17 am
Forum: Personal Finance (Not Investing)
Topic: How do I convince my employees to invest more?
Replies: 92
Views: 5161

Re: How do I convince my employees to invest more?

Why not ask them instead of asking us? It is a topic every year at our annual employee meeting. Everyone always seems interested, but then never follows through. maybe with such low salaries they can't afford to... Alas, competition imposes limits on what we can pay. If only our customers were will...
by Stormbringer
Sat Dec 02, 2017 9:38 am
Forum: Personal Finance (Not Investing)
Topic: How do I convince my employees to invest more?
Replies: 92
Views: 5161

How do I convince my employees to invest more?

I own a small business with 15 employees, most of them earning between $40K and $60K per year. I offer them a Simple-IRA with a 100% match up to 3% of their salary. The problem is that hardly any of them participate. Last year I only matched $6,300, up from $4,483 the year before. It concerns me bec...
by Stormbringer
Sat Dec 02, 2017 9:20 am
Forum: Investing - Theory, News & General
Topic: Is 60/40 mix the sleep mix or 80/20 mix
Replies: 38
Views: 3538

Re: Is 60/40 mix the sleep mix or 80/20 mix

https://s8.postimg.org/5bc6oyz5x/33vdb9f.jpg-3.png According to this chart, an aggressive investor can sleep well at 80% up to age 54. A conservative investor would start feeling restless at age 27. An aggressive investor could sleep well at 60% up to age 64, but even an aggressive investor would s...
by Stormbringer
Fri Dec 01, 2017 6:58 pm
Forum: Investing - Theory, News & General
Topic: Is there any reason to invest in real estate?
Replies: 98
Views: 7375

Re: Is there any reason to invest in real estate?

I have a few questions for you: are all your rental properties in the same location, or do you also invest outside of your home state? Are you typically financing your rental properties? My experience so far with RE is that it is highly dependent on location - in most areas of the country now it's ...
by Stormbringer
Thu Nov 30, 2017 7:44 pm
Forum: Investing - Theory, News & General
Topic: Is there any reason to invest in real estate?
Replies: 98
Views: 7375

Re: Is there any reason to invest in real estate?

If you know that for a fact, you may want to read these links. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-prohibited-transactions https://www.law.cornell.edu/uscode/text/26/4975 (See paragraph (c)(1)(c)) https://www.irs.gov/compliance/whistleblower-informant-aw...
by Stormbringer
Thu Nov 30, 2017 6:46 pm
Forum: Investing - Theory, News & General
Topic: Is there any reason to invest in real estate?
Replies: 98
Views: 7375

Re: Is there any reason to invest in real estate?

If anyone is interested, here is the spreadsheet I developed to analyze properties before purchasing them. It looks better if you download it and open it in Excel.

If anyone finds any bugs, please let me know.
by Stormbringer
Thu Nov 30, 2017 3:51 pm
Forum: Investing - Theory, News & General
Topic: if IRA 100% invested..where is cash for buying opporunities?
Replies: 13
Views: 808

Re: if IRA 100% invested..where is cash for buying opporunities?

Back when I had a broker managed portfolio, they always kept 5% in cash, supposedly for "buying opportunities". But then in 2008-2009, they never bought anything. At that point I realized that the cash was not for buying opportunities at all, but rather it was a pool of money that they could readily...
by Stormbringer
Thu Nov 30, 2017 1:05 pm
Forum: Investing - Theory, News & General
Topic: Rational Optimism for Global Stock Returns?
Replies: 21
Views: 1846

Re: Rational Optimism for Global Stock Returns?

There seems to be quite a few Forum members these days expressing their concerns about the long-running and "overvalued" bull market of U.S. stocks, plus their anxiety about global equity market risks in general. Good information. Do you have any concerns about the manner in which the market has ri...
by Stormbringer
Thu Nov 30, 2017 11:38 am
Forum: Investing - Theory, News & General
Topic: Is there any reason to invest in real estate?
Replies: 98
Views: 7375

Re: Is there any reason to invest in real estate?

I own 15 rental properties. They are a pain, but I've managed to get an 18% return on average over the past 23 years. It's very different from investing in listed securities, and not for everyone. I could get a second job too. But I'm not sure how to calculate ROI on working a second part-time job....
by Stormbringer
Thu Nov 30, 2017 4:51 am
Forum: Investing - Theory, News & General
Topic: Which crash have you seen it before it is coming?
Replies: 134
Views: 9647

Re: Which crash have you seen it before it is coming?

Another entertainment post here. Is there any wise bogle's who have seen or even felt any of the previous crashes coming? And if so, what makes you feel that "something is not right here", and have you done anything about it? I sold six of my rental properties in 2006. It was incredibly obvious to ...
by Stormbringer
Thu Nov 30, 2017 4:44 am
Forum: Investing - Theory, News & General
Topic: Is there any reason to invest in real estate?
Replies: 98
Views: 7375

Re: Is there any reason to invest in real estate?

I'm sorry, but I don't believe anyone can double their money every 4 years, net of all expenses and value of their time, regardless of what investment they claim makes this possible. If it were in fact possible to do this, then the big boys would pile in and push the prices of whatever they used to...
by Stormbringer
Wed Nov 29, 2017 4:44 pm
Forum: Investing - Theory, News & General
Topic: Is it 1996 yet?
Replies: 21
Views: 2525

Re: Is it 1996 yet?

For me, ten years out would have felt too soon to trim my stock allocation ... but your situation may be different. I’ve come to appreciate Taylor Larimore’s thinking in this matter because it can be applied to nearly any retirement scenario and doesn’t depend on valuation metrics or market forecas...
by Stormbringer
Wed Nov 29, 2017 4:18 pm
Forum: Investing - Theory, News & General
Topic: Is there any reason to invest in real estate?
Replies: 98
Views: 7375

Re: Is there any reason to invest in real estate?

I'd be interested in a somewhat more detailed accounting. Cash on cash? Full IRR computation with inflows/outflows? Did you value your time and count that as an input? I understand if you don't want to spend vast amounts of time documenting and backing up a claim in an online forum - I'm not necess...
by Stormbringer
Wed Nov 29, 2017 5:38 am
Forum: Investing - Theory, News & General
Topic: Is it 1996 yet?
Replies: 21
Views: 2525

Is it 1996 yet?

Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. But how do we know when i...
by Stormbringer
Wed Nov 29, 2017 5:02 am
Forum: Investing - Theory, News & General
Topic: What did you do right?
Replies: 96
Views: 9426

Re: What did you do right?

So, what did you do right in your investing life? 1. Started contributing to my retirement fund when I was 23 (but it took me 15 years of throwing darts at a board and paying fees before discovering index investing). 2. Bought my first rental property when I was 24. 3. At 25, I invested $1250 for a...
by Stormbringer
Wed Nov 29, 2017 4:45 am
Forum: Investing - Theory, News & General
Topic: Is there any reason to invest in real estate?
Replies: 98
Views: 7375

Re: Is there any reason to invest in real estate?

CurlyDave wrote:
Wed Nov 29, 2017 3:53 am
The big advantage of RE is that I can put sweat equity into rental properties.
There is a guy in my town who continuously buys foreclosures in his self-directed Roth IRA, fixes them up, and flips them. That sweat equity is essentially a stealth way to contribute more to his Roth.
by Stormbringer
Wed Nov 29, 2017 4:41 am
Forum: Investing - Theory, News & General
Topic: Is there any reason to invest in real estate?
Replies: 98
Views: 7375

Re: Is there any reason to invest in real estate?

Is that an 18% annualized ROI (compounded/ averaged) for all 15 properties over the 23 years --- or --- an 18% ROI over the total 23 year period? That would be annualized. It has done fairly well over the years. I bought my first 4-unit apartment building when I was 24 years old (my parents freaked...
by Stormbringer
Tue Nov 28, 2017 8:34 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin mining
Replies: 19
Views: 2966

Re: Bitcoin mining

Beware of websites that hijack your computer with Coinhive and other utilities to mine bitcoins.
by Stormbringer
Tue Nov 28, 2017 8:24 pm
Forum: Investing - Theory, News & General
Topic: Is there any reason to invest in real estate?
Replies: 98
Views: 7375

Re: Is there any reason to invest in real estate?

I own 15 rental properties. They are a pain, but I've managed to get an 18% return on average over the past 23 years. It's very different from investing in listed securities, and not for everyone.
by Stormbringer
Sun Nov 26, 2017 10:02 pm
Forum: Investing - Theory, News & General
Topic: Bonds Are Riskier Than People Think
Replies: 137
Views: 12007

Re: Bonds Are Riskier Than People Think

Something to consider is that there will be a recession at some point. When that happens, rates may go right back down to zero.
by Stormbringer
Sun Nov 26, 2017 9:07 am
Forum: Investing - Theory, News & General
Topic: Roth IRA Contributions: Still make sense for us?
Replies: 13
Views: 1132

Re: Roth IRA Contributions: Still make sense for us?

cbr shadow wrote:
Wed Nov 22, 2017 1:50 pm
We save a lot, and hope to retire before age 50. Assuming our expenses are about $100k in retirement, does it make sense to contribute to a Roth IRA right now?
What is your plan for funding your expenses prior to age 59 1/2, when you can withdraw from your 401(k) without paying a 10% penalty?
by Stormbringer
Thu Nov 23, 2017 5:52 pm
Forum: Personal Consumer Issues
Topic: The Wolf of Wall Street
Replies: 33
Views: 4547

Re: The Wolf of Wall Street

I related to the movie because I used to work for a software company that was just like that. Lots of young guys with obscene amounts of money. Yachts, strippers, jets, wild parties. It was really, really crazy.
by Stormbringer
Thu Nov 23, 2017 5:46 pm
Forum: Personal Consumer Issues
Topic: best cordless drill??
Replies: 71
Views: 4305

Re: best cordless drill??

I have two DeWalt drills. They are awesome.
by Stormbringer
Wed Nov 22, 2017 9:32 pm
Forum: Personal Consumer Issues
Topic: How do I sell silver coins?
Replies: 13
Views: 1864

Re: How do I sell silver coins?

I just keep mine locked in the safe. I figure I get a couple extra minutes of quality sleep each night knowing they are there.
by Stormbringer
Mon Nov 20, 2017 3:59 pm
Forum: Investing - Theory, News & General
Topic: Is holding bonds now dangerous?
Replies: 155
Views: 14020

Re: Is holding bonds now dangerous?

Bond FUNDS are self-correcting. As old bonds mature, they get redeemed, and new bonds (at the newer rates) get bought and added to the portfolio. Can someone verify that this is correct? I thought so too, but then I discovered that bond funds have a pretty high turnover ratio (Vanguard Total Bond M...
by Stormbringer
Mon Nov 20, 2017 3:12 pm
Forum: Investing - Theory, News & General
Topic: Schwab acct. security tool
Replies: 22
Views: 1541

Re: Schwab acct. security tool

2FA is in the works, couldn't say when, but its coming. He also asked if I would like have a "security token" A password plus a security token *is* two-factor authentication. Two factor authentication is, by definition, any two of the following: Something you know (e.g. a password). Something you h...
by Stormbringer
Mon Nov 20, 2017 2:09 pm
Forum: Investing - Theory, News & General
Topic: Is holding bonds now dangerous?
Replies: 155
Views: 14020

Re: Is holding bonds now dangerous?

Let's consult the Oracle : The riskiness of an investment is not measured by beta (a Wall Street term encompassing volatility and often used in measuring risk) but rather by the probability – the reasoned probability – of that investment causing its owner a loss of purchasing-power over his contempl...
by Stormbringer
Sun Nov 19, 2017 5:59 am
Forum: Investing - Theory, News & General
Topic: Is holding bonds now dangerous?
Replies: 155
Views: 14020

Re: Is holding bonds now dangerous?

However with interest rates near zero and in some cases below zero, it seems that they can only go up. Perhaps, but it has also been eight years since the last recession ended, and on average it has usually only been 57 months until the next one, so we are overdue. In past recessions, it looks like...
by Stormbringer
Fri Nov 17, 2017 5:32 am
Forum: Personal Finance (Not Investing)
Topic: Forgot to file form 5500EZ for 2016 year
Replies: 20
Views: 1188

Re: Forgot to file form 5500EZ for 2016 year

My experience is that getting the IRS to waive penalties is hit-or-miss, and not entirely consistent. Sometimes it seems to depend on who reviews your case. In your situation, the problem is that if you request that they waive the penalty and they deny it, you appear to lose eligibility for the reli...
by Stormbringer
Thu Nov 16, 2017 5:23 am
Forum: Investing - Theory, News & General
Topic: Age in bonds, tax-sheltered options
Replies: 8
Views: 994

Re: Age in bonds, tax-sheltered options

Age in bonds Note that Bogle suggests treating social security as part of your bond holdings, which has a present value of hundreds of thousands of dollars per worker. Doing so would have a profound effect on the asset allocation in your retirement accounts. Many around here vehemently disagree wit...
by Stormbringer
Wed Nov 15, 2017 8:08 am
Forum: Investing - Theory, News & General
Topic: Help Me Understand This Bond
Replies: 2
Views: 394

Re: Help Me Understand This Bond

The catch IS the YTW, which is "Yield to Worst" and is the yield you would get if you bought the bond and it were called on the earliest date of 5/1/19, which is about 18 months from now. YTW is 1.043% according to the information you posted, which is not so great. Ah yes. I searched the CUSPID and...
by Stormbringer
Wed Nov 15, 2017 8:05 am
Forum: Investing - Theory, News & General
Topic: Quest for better fund selection in 401 K
Replies: 18
Views: 1278

Re: Quest for better fund selection in 401 K

Wildebeest wrote:
Wed Nov 15, 2017 6:02 am
Did your wife call, meet or write to him?
I think she emailed him first and then talked to him personally.
by Stormbringer
Tue Nov 14, 2017 8:28 pm
Forum: Investing - Theory, News & General
Topic: Help Me Understand This Bond
Replies: 2
Views: 394

Help Me Understand This Bond

I'm trying to get my head around the options for fixed income (aside from bond funds). I came across this bond on Schwab: https://i.imgur.com/1sus77Z.png This looks to be a tax-free municpal bond issued by the State of Wisconsin (where I live) with bit less than 12 years left on it. It has a yield t...