Search found 848 matches

by Stormbringer
Thu Nov 14, 2019 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Study ranks 4,500 colleges by net present value of 40 year ROI
Replies: 32
Views: 3935

Re: Can you guess what this ranked list of colleges is?

But is it the college, or the students who lead to the big ROI? For example, if you want to get a Computer Science degree from Stanford, just getting in probably means you already have a very high aptitude for computer programming. Having a very high aptitude for programming means you have increased...
by Stormbringer
Thu Nov 14, 2019 4:53 pm
Forum: Investing - Theory, News & General
Topic: Why would a CPFA recommend high fee funds?
Replies: 37
Views: 1367

Re: Why would a CPFA recommend high fee funds?

My wife has a similar situation, with a slew of horrible funds with fees as high as 1.37%. I suspect the funds are selected by the administrator because they pay some sort of a commission, but I'm not sure. The only plausible explanation I can come up with is that someone is lining their pockets, bu...
by Stormbringer
Thu Nov 14, 2019 3:30 pm
Forum: Investing - Theory, News & General
Topic: How to hold title to rental properties
Replies: 9
Views: 748

Re: How to hold title to rental properties

Is there any benefit to putting the rentals in an LLC? Ideally yes, because when you own them directly, you have unlimited liability. However, there are practical reasons why you might not want to: You may have to pay a transfer fee (tax) when the ownership changes. State laws vary. If you have mor...
by Stormbringer
Thu Nov 14, 2019 3:21 pm
Forum: Investing - Theory, News & General
Topic: How to hold title to rental properties
Replies: 9
Views: 748

Re: How to hold title to rental properties

J295 wrote:
Wed Nov 13, 2019 9:32 pm
Typically the “paperwork” is not material for a single member LLC, which is a pass-through entity.
I think you mean to say it is a disregarded entity. All LLC's are pass-through. Single-owner LLCs can be disregarded, meaning they don't need to file a separate tax return.
by Stormbringer
Sun Nov 10, 2019 5:39 pm
Forum: Investing - Theory, News & General
Topic: If you were forced to pick an alternative asset...
Replies: 101
Views: 6010

Re: If you were forced to pick an alternative asset...

BPT - Prudhoe Bay Royalty Trust.

It has a dividend yield of about 30%.
by Stormbringer
Sun Nov 10, 2019 9:16 am
Forum: Investing - Theory, News & General
Topic: Bank of America declares 'the end of the 60-40' standard portfolio
Replies: 88
Views: 15127

Re: Bank of America declares 'the end of the 60-40' standard portfolio

The idea of a bond bubble seems a little odd to me. If I hold a bold until maturity, I will get exactly what I signed up for.
by Stormbringer
Tue Oct 22, 2019 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Ok to go without health insurance?
Replies: 209
Views: 11548

Re: Ok to go without health insurance?

Is it too risky to go bare? Health insurance does two things for you: Protects you from a catastrophic expense. Negotiates pricing. Even if you have the means to self-insure, the problem is that you may pay through the nose for care. Anecdotally, a few years back I injured my knee working out. My d...
by Stormbringer
Sun Oct 20, 2019 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Landlord Question
Replies: 16
Views: 2207

Re: Landlord Question

What is your criteria for raising rent for tenants? Would be interested to hear folks’ justification for raising it or not and then how you determine how much to raise and when, if at all? Moving sucks, and nobody moves over a 2% rent increase. Raise it every year on the lease anniversary, and set ...
by Stormbringer
Mon Oct 14, 2019 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries on Retirement Accounts
Replies: 13
Views: 1461

Re: Beneficiaries on Retirement Accounts

Do you know if you are the co-primary beneficiary or the secondary/contingent beneficiary? She told me that she "added us as beneficiaries" to her retirement accounts. My response was that I thought I should be a contingent beneficiary, to which she replied "no". I'm starting to think that she may ...
by Stormbringer
Sun Oct 13, 2019 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries on Retirement Accounts
Replies: 13
Views: 1461

Re: Beneficiaries on Retirement Accounts

bhluckyusaguy wrote:
Sun Oct 13, 2019 10:35 am
Do you know if your mother's retirement accounts are a 401k or an IRA?
I believe that she has an IRA and a Roth-IRA. When she retired she rolled her 401(k) over, and has been making Roth rollovers from there.
by Stormbringer
Sun Oct 13, 2019 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Beneficiaries on Retirement Accounts
Replies: 13
Views: 1461

Beneficiaries on Retirement Accounts

My mom added me as a beneficiary to all her retirement accounts, but my step-dad is also listed as a beneficiary. That doesn't seem right to me. The way she explained it to me was that I would inherit her retirement accounts, and my step-dad's kids would inherit his retirement accounts. I'm making t...
by Stormbringer
Wed Oct 09, 2019 2:25 pm
Forum: Investing - Theory, News & General
Topic: Artificial Intelligence and the stock market
Replies: 65
Views: 6542

Re: Artificial Intelligence and the stock market

With the explosion of AI that is coming in the next decade how do you think it'll affect the stock market? Volatility. Currently, 70% of trades are algorithmic. As machines increasingly trade with machines, the market can rapidly swing one way or another in response to data and news. Traders are lo...
by Stormbringer
Mon Sep 30, 2019 7:38 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 4792
Views: 1247277

Re: What Movie Have You Recently Watched?

I watched The Gambler (2014). Bad movie, but has one of the most Boglehead-ish scenes I've ever watched (warning: NSFW, profanity).
by Stormbringer
Sun Sep 22, 2019 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: IT compensation comparison
Replies: 269
Views: 24683

Re: IT compensation comparison

What is a typical career trajectory for a software developer? I'm not sure what is typical, but I have observed a few patterns among friends and colleagues: Takes a job for an IT department in a Megacorp. Hits a certain age, and his job is outsourced to India. Spends the final months on his job tra...
by Stormbringer
Sun Sep 22, 2019 11:00 am
Forum: Investing - Theory, News & General
Topic: Home as Investment: Would Negative Interest Rate Makes Sense?
Replies: 5
Views: 898

Re: Home as Investment: Would Negative Interest Rate Makes Sense?

When people buy a home, what they can afford is generally thought of in terms of a monthly mortgage payment, not the price of the house. Thus, when mortgage rates fall, more expensive homes become affordable because the interest component of the monthly payment falls. This has the effect of causing ...
by Stormbringer
Sun Sep 22, 2019 7:27 am
Forum: Personal Finance (Not Investing)
Topic: IT compensation comparison
Replies: 269
Views: 24683

Re: IT compensation comparison

knightrider wrote:
Sat Sep 21, 2019 9:17 pm
Software can be picked up easily.
No, just ... no. It doesn't work that way at all. That line of thinking is the bane of software developers everywhere. Software development is an art at least as much as it is a science. Anyone can learn to paint, yet very few will ever be a Rembrandt.
by Stormbringer
Sat Sep 21, 2019 1:11 pm
Forum: Investing - Theory, News & General
Topic: Why does dividend investing not work?
Replies: 174
Views: 22914

Re: Why does dividend investing not work?

Reasons not to pay out profits as dividends:
  1. The company needs to reinvest the capital and grow.
  2. The company needs a new Gulfstream V to shuttle the CEO and his dog to the Hamptons.
Dividends are a mixed bag.
by Stormbringer
Thu Sep 19, 2019 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: IT compensation comparison
Replies: 269
Views: 24683

Re: IT compensation comparison

It shows total compensation of around 180K including stock and bonuses but not including benefits. Is this normal or are people overstating the numbers ? 3 years is pretty much fresh out of college. Normally IT people in regular ( non silicon valley/seattle ) do not come close to these numbers even...
by Stormbringer
Mon Sep 16, 2019 9:35 am
Forum: Investing - Theory, News & General
Topic: Is the 60/40 portfolio allocation strategy being killed?
Replies: 142
Views: 15554

Re: Is the 60/40 portfolio allocation strategy being killed?

The very notion of lending 40% of my money for free or worse (at least in real terms) really makes me scratch my head.
by Stormbringer
Sun Sep 15, 2019 6:56 am
Forum: Investing - Theory, News & General
Topic: Oil price going to a $100-- time to change your asset allocation??
Replies: 86
Views: 8627

Re: Oil price going to a $100-- time to change your asset allocation??

Drones knocked 50% of Saudi oil supply. Oil price is rising.. If it stays high for a sustained period along with the tariffs, it will not be good. The news two days ago was that there is an enormous and growing oil glut, and OPEC was losing control of the market. The Saudi's have redundancy built i...
by Stormbringer
Sun Sep 15, 2019 6:42 am
Forum: Personal Finance (Not Investing)
Topic: I need a financial calculation
Replies: 3
Views: 754

Re: I need a financial calculation

I'm working on a presentation and need a bit of help. I am using 4% w/d for a 30 year portfolio. Using this assumption, what is the length of term for 5.86% w/d? I don't have my HP financial calculator, and so I need someone to run this number for me. I don't think your HP calculator would help you...
by Stormbringer
Sat Sep 14, 2019 6:24 pm
Forum: Investing - Theory, News & General
Topic: is real estate dead as a diversifier?
Replies: 52
Views: 6040

Re: is real estate dead as a diversifier?

My understanding is that rental properties as a whole did well throughout the GFC The financial crisis was a boon for rental properties in my market: I refinanced all mine at rock-bottom rates, lowering the monthly interest expense. Housing starts plummeted while the population continued to increas...
by Stormbringer
Mon Sep 09, 2019 9:31 pm
Forum: Investing - Theory, News & General
Topic: Rich people are hoarding cash
Replies: 153
Views: 22903

Re: Rich people are hoarding cash

Stocks near record highs. Bonds near record highs. Talk of a global recession. Accumulating some cash doesn't sound all that terrible to me. I remember quite a few people who acted on feelings like that in 2014 and regretted it a few years later because they didn’t “get back in.” True, but I also r...
by Stormbringer
Mon Sep 09, 2019 8:02 pm
Forum: Investing - Theory, News & General
Topic: Rich people are hoarding cash
Replies: 153
Views: 22903

Re: Rich people are hoarding cash

Stocks near record highs.
Bonds near record highs.
Talk of a global recession.

Accumulating some cash doesn't sound all that terrible to me.
by Stormbringer
Sun Sep 08, 2019 3:51 pm
Forum: Investing - Theory, News & General
Topic: Inflation likelihood and inflation protection
Replies: 29
Views: 2012

Re: Inflation likelihood and inflation protection

While I share the concern that governments may have no choice but to monetize the debt at some point , I have no idea how far in the future that may be, and it could be many decades from now. People have been freaking out over the national debt in the US for 30 years now. Japan's finances have been ...
by Stormbringer
Sun Sep 08, 2019 9:14 am
Forum: Investing - Theory, News & General
Topic: The case for considering overall career marginal tax when deciding between trad and Roth.
Replies: 25
Views: 2054

Re: The case for considering overall career marginal tax when deciding between trad and Roth.

I think tax diversification is a legitimate consideration as well. An early retiree who can live off savings in a taxable account may be able to reduce their income to a level where they qualify for a health insurance subsidy, for example. Having money in various types of accounts gives you flexibil...
by Stormbringer
Thu Sep 05, 2019 8:11 am
Forum: Investing - Theory, News & General
Topic: Forbes: The Bubble That Is The S&P 500 Index
Replies: 38
Views: 7343

Re: Forbes: The Bubble That Is The S&P 500 Index

Compare the P/E ratios:

VFAIX ... 20.4 (Vanguard S&P 500 Index Fund)
VINAX ... 21.5 (Vanguard Mid-Cap Index Fund)
VSMAX ... 19.2 (Vanguard Small-Cap Index Fund)

If the S&P 500 was a bubble relative to the rest of the market, it would have a much higher P/E.
by Stormbringer
Wed Sep 04, 2019 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11279

Re: Paying off mortgage early - am I thinking about this right?

I feel like all these "pay off mortgage vs. invest" threads are overly focused on the balance sheet (e.g. maximizing net worth) while generally ignoring the cash flow statement, which is how we actually experience our lives. Paying off your mortgage eliminates a substantial cash flow risk. I think t...
by Stormbringer
Wed Sep 04, 2019 11:10 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11279

Re: Paying off mortgage early - am I thinking about this right?

mhalley wrote:
Tue Sep 03, 2019 1:58 am
The financially correct thing to do is not pay off the mortgage.
Mathematically, isn't that identical to advising everyone with a paid off house to mortgage it and invest the proceeds in the markets?
by Stormbringer
Wed Sep 04, 2019 10:57 am
Forum: Investing - Theory, News & General
Topic: Real Estate vs Equities
Replies: 29
Views: 2741

Re: Real Estate vs Equities

I was reading this article and it was really surprising to read the claim that over the long haul owning and holding residential Real Estate beats out Equities Please note the following text from the study: When calculating equity and housing returns, we do not account for taxes...As a ballpark est...
by Stormbringer
Sun Sep 01, 2019 9:14 am
Forum: Investing - Theory, News & General
Topic: Bond Investors Making A Killing
Replies: 85
Views: 10147

Re: Bond Investors Making A Killing

An abundance of evidence suggests that the typical retiree has expenditures that grow at less the rate of inflation (the average is about 1% less), I wonder how much of this is forced upon them by their dismal financial situation. A person can lower their personal inflation rate by substituting inf...
by Stormbringer
Sun Sep 01, 2019 8:28 am
Forum: Investing - Theory, News & General
Topic: Is the S&P 500 good enough?
Replies: 48
Views: 6077

Re: Is the S&P 500 good enough?

The S&P 500 has a higher yield than total stock market, which could be relevant in a taxable account. Maybe you want more income, or maybe you want to pay less in taxes. Also, I would expect the composition of the S&P 500 index to change less frequently, resulting in fewer taxable events.
by Stormbringer
Sun Sep 01, 2019 8:18 am
Forum: Investing - Theory, News & General
Topic: Jason Zweig in Today's WSJ Discusses Target Retirement Funds
Replies: 54
Views: 8135

Re: Jason Zweig in Today's WSJ Discusses Target Retirement Funds

2018 was a double-whammy for near-term target-date funds because the allocation to stocks was automatically reduced at the end of the year , right after the market dropped 20% and had not recovered much of that loss. While I'm not certain, I'm skeptical that it happens exactly like that. TDFs never...
by Stormbringer
Sat Aug 31, 2019 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Advice for after getting high income
Replies: 46
Views: 6216

Re: Advice for after getting high income

One way to avoid this problem is by making the transition into management where specific technical skills are less important. Fixed. :twisted: But yeah, some people successfully make the transition. Many engineers lack the people skills to be good managers though, so that path isn't well-suited for...
by Stormbringer
Sat Aug 31, 2019 7:30 am
Forum: Personal Finance (Not Investing)
Topic: Advice for after getting high income
Replies: 46
Views: 6216

Re: Advice for after getting high income

Having gotten to a higher income and net worth over time, does anyone have a checklist of things to think about in that situation? I made a list below of my own thoughts, but I think I'm probably missing stuff. (30s, single, software engineer, CA bay area, ~$750k income, ~$1.5m net worth, everythin...
by Stormbringer
Sat Aug 31, 2019 6:41 am
Forum: Personal Finance (Not Investing)
Topic: Any Bay Area companies hiring part-time remote programmers?
Replies: 23
Views: 2189

Re: Any Bay Area companies hiring part-time remote programmers?

The part-time thing may be a deal breaker for me, but I'm pretty sure I don't want to work full-time again. If you are willing to define "part-time" as hours per year rather than hours per week, you might have better luck. There are plenty of projects that are full-time for several months, after wh...
by Stormbringer
Sat Aug 31, 2019 6:10 am
Forum: Investing - Theory, News & General
Topic: Rebalancing with EE Bonds
Replies: 23
Views: 1369

Re: Rebalancing with EE Bonds

The market is pricing 20-year bonds at around 1.8% now, so by comparison 3.53% seems like a remarkably good deal. It is even better when you look at it in real terms -- the 20-year is effectively zero, perhaps a negative real yield. The EE looks like the best deal in town so long as liquidity isn't ...
by Stormbringer
Thu Aug 22, 2019 6:34 am
Forum: Personal Investments
Topic: $1M cash: how to invest
Replies: 40
Views: 3741

Re: $1M cash: how to invest

I don't need the funds in the short-term. My fee-only advisor is suggesting I invest it all lumpsum into index funds 70/30 allocation. I am a 37 y/o physician. Having bonds in a taxable account isn't great unless they are munis, because the (paltry) interest you receive is going to be taxed at 37% ...
by Stormbringer
Fri Aug 16, 2019 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Debating a 4.25 to 3.375 refi
Replies: 28
Views: 2049

Re: Debating a 4.25 to 3.375 refi

Personally, I would wait until we are deeper into the Federal Reserve's easing cycle. In 12 months you might find yourself debating a 3.375 to 2.75 refi.
by Stormbringer
Thu Aug 15, 2019 7:45 am
Forum: Investing - Theory, News & General
Topic: Confused, bummed, and concerned
Replies: 74
Views: 10853

Re: Confused, bummed, and concerned

I hear this and, as the title states, feel confused, bummed, and concerned. Should I be? Focus on how many shares you are accumulating and ignore the quoted market price. Consider three paths a stock might take from $10 a share to $100 a share: https://i.imgur.com/SBTgYfA.png The green path feels g...
by Stormbringer
Sat Aug 10, 2019 5:20 am
Forum: Personal Investments
Topic: Solo 401ks and Controlled Groups?
Replies: 2
Views: 259

Re: Solo 401ks and Controlled Groups?

Treasury Regulation § 1.414(c)-4(b)(5) provides an exception that allows you to consider them as two separate controlled groups if certain conditions are met: (5) Spouse - (i) General rule. Except as provided in paragraph (b)(5)(ii) of this section, an individual shall be considered to own an inter...
by Stormbringer
Wed Aug 07, 2019 7:13 pm
Forum: Investing - Theory, News & General
Topic: 10 year treasury yield
Replies: 34
Views: 2887

Re: 10 year treasury yield

willthrill81 wrote:
Wed Aug 07, 2019 7:08 pm
Stormbringer wrote:
Wed Aug 07, 2019 7:03 pm
With the 20-year bond at 2.03%, EE bonds are starting to look pretty interesting.
Maybe, but their 20 years of illiquidity is a high price to pay for a 3.53% annualized return.
Yeah, but -2% real is also a high price to pay for liquidity.
by Stormbringer
Wed Aug 07, 2019 7:11 pm
Forum: Investing - Theory, News & General
Topic: Investing for negative interest rates
Replies: 31
Views: 1937

Re: Investing for negative interest rates

In a negative rate environment, savings bonds start to get really attractive. A EE bond held to maturity will earn 3.5% regardless of what rates do.
by Stormbringer
Wed Aug 07, 2019 7:03 pm
Forum: Investing - Theory, News & General
Topic: 10 year treasury yield
Replies: 34
Views: 2887

Re: 10 year treasury yield

With the 20-year bond at 2.03%, EE bonds are starting to look pretty interesting.
by Stormbringer
Wed Aug 07, 2019 5:01 am
Forum: Personal Finance (Not Investing)
Topic: San Jose (CA) cost of living
Replies: 36
Views: 4035

Re: San Jose (CA) cost of living

I think your rent estimate might be low if you are looking for a nicer place with lots of amenities. Also, you should account for taxes.
by Stormbringer
Sun Jul 28, 2019 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Free credit monitoring if credit is already frozen?
Replies: 9
Views: 943

Re: Free credit monitoring if credit is already frozen?

If you have a credit card (we have Capital One) or bank account that offers monitoring, I think you are better off taking the $125. Monitoring isn't preventive, it only informs you after something bad happens. Except its almost certainly not going to be $125. I'm guessing about $3 to $5 because it ...
by Stormbringer
Sun Jul 28, 2019 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Is there an Individual Roth 401k?
Replies: 9
Views: 452

Re: Is there an Individual Roth 401k?

I have a Schwab Individual 401(k) and their default plan does not allow Roth contributions. I could have a customized plan created by a 3rd party, however. Section Three. Contributions Pre-tax Elective Deferrals are permitted under this Plan. Roth Elective Deferrals are not permitted under this Plan.
by Stormbringer
Sun Jul 28, 2019 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Free credit monitoring if credit is already frozen?
Replies: 9
Views: 943

Re: Free credit monitoring if credit is already frozen?

If you have a credit card (we have Capital One) or bank account that offers monitoring, I think you are better off taking the $125. Monitoring isn't preventive, it only informs you after something bad happens.
by Stormbringer
Thu Jul 25, 2019 3:05 pm
Forum: Investing - Theory, News & General
Topic: Early retirement - when to start thinking about less equity?
Replies: 34
Views: 3122

Re: Early retirement - when to start thinking about less equity?

my current holdings would give me a 4% SWR which easily pays all of my required and discretionary spending. I'd like that to be closer to a 3.5% SWR for the added safety and buffer. 4% SWR is based on a 30-year retirement, and still fails 1 in 20 times in Monte Carlo tests. You need to be thinking ...
by Stormbringer
Thu Jul 25, 2019 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate: Help me understand discount rate for NPV
Replies: 5
Views: 308

Re: Real Estate: Help me understand discount rate for NPV

I would use your weighted average cost of capital, which is a blend of your cost of equity and your cost of debt. You decide what your cost of equity is (the return on invested cash that you require), and the bank decides the cost of debt.