Search found 484 matches

by Stormbringer
Sun May 20, 2018 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 94
Views: 5966

Re: Helping Adult Children (but not too much)

That's a good answer. So something that would be meaningful in helping her to launch successfully rather than a feel-good gift or something that might encourage bad financial habits or dependence. Does she know much about investing? Maybe a cash gift for that purpose. Help her set investment goals,...
by Stormbringer
Sun May 20, 2018 7:39 am
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 94
Views: 5966

Re: Helping Adult Children (but not too much)

What do you mean by "too much?" What are your concerns? If you are afraid you will "spoil" her, I doubt that your gift would have that much power. I think I view it like having someone spot you while weight lifting. If you're trying to lift a heavy weight, your goal is to do it yourself, but there ...
by Stormbringer
Sun May 20, 2018 7:08 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 8750

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

He never mentions Treasury inflation-protected securities (TIPS). He never says why. Are his comments supposed to apply to TIPS, too, or only to nominal bonds? I don't know. AFAIK he hasn't said. I've followed Buffett for a long time and don't recall him ever specifically addressing TIPS, but I fee...
by Stormbringer
Sat May 19, 2018 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Good time to buy a house or wait it out
Replies: 21
Views: 1796

Re: Good time to buy a house or wait it out

You’re wrong here. Adjusted for inflation, housing prices have surpassed their 2006 peak: Here is the actual Fed graph of real (inflation-adjusted) home prices, clearly showing that they have not surpassed 2006, adjusting for inflation. They are a good 15-20% below that level: https://i.imgur.com/B...
by Stormbringer
Sat May 19, 2018 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Good time to buy a house or wait it out
Replies: 21
Views: 1796

Re: Good time to buy a house or wait it out

I would like a consensus of would you buy now or rent for a year and wait the market out? I don’t want to wind up buying at the height of the real estate market, and in the past few months, it seems like prices have escalating reminiscent of the prices before the crash in ’07/’08. The problem with ...
by Stormbringer
Sat May 19, 2018 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 94
Views: 5966

Re: Helping Adult Children (but not too much)

Is she still living at home? No, she's been out of the house and sharing an apartment with a friend near campus for two years. They plan to stay put for one more year to save money. She's worked nearly 30 hours a week throughout college. She has her mom's work ethic (not mine -- I work from home in...
by Stormbringer
Sat May 19, 2018 8:25 am
Forum: Investing - Theory, News & General
Topic: Bogle featured in Barrons cover story
Replies: 29
Views: 2223

Re: Bogle featured in Barrons cover story

I don't get the impression that the author cares for Bogle very much. On Warren Buffett's suggestion that a statue of Bogle be erected: There is, in fact, already a bronze statue of Bogle, striking a confident, commanding pose, outside Vanguard’s headquarters in Malvern, Pa., not far from Valley For...
by Stormbringer
Sat May 19, 2018 7:54 am
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 8750

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

During this year's annual Berkshire Hathaway meeting, Buffett said: "Bonds are a terrible investment at anywhere near current yields.” He continued, “The only time bonds were interesting was in the early to mid-1980’s" So what should we invest in besides stocks? Completely agree, but I don't think ...
by Stormbringer
Sat May 19, 2018 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 94
Views: 5966

Helping Adult Children (but not too much)

Our daughter graduates college this weekend. She's debt free, owns her 3 year-old car outright, has about $3K in a Roth-IRA plus another $1K in savings and an "okay" (money-wise) job lined up. So she off to a decent start. Until now we've subsidized her through car insurance, mobile phone, groceries...
by Stormbringer
Sat May 19, 2018 6:15 am
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 95
Views: 4873

Re: Dave Ramsey it or keep low interest debt

20k car loan - 0% 38k car loan - 1.9% 226k mortgage - 3.625% Annual income 255k Fully funded emergency fund (6 months) Well, those care loans are at negative real interest rates, so mathematically speaking I wouldn't be in a hurry to pay them off. If you had the cash to pay them off, you could put ...
by Stormbringer
Fri May 18, 2018 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Would you send your children to private school in my situation?
Replies: 93
Views: 5902

Re: Would you send your children to private school in my situation?

HomerJ wrote:
Fri May 18, 2018 2:57 pm
Seriously, what are the odds that the private school education is ONE MILLION DOLLARS better?
It probably depends on the school. Look at the list of notable alumni from Exeter. I worked for one who made $100M but wasn't notable, so he missed the list.
by Stormbringer
Fri May 18, 2018 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Would you send your children to private school in my situation?
Replies: 93
Views: 5902

Re: Would you send your children to private school in my situation?

In these forums, we tend to focus on financial capital, and optimizing it to the n-th degree.

In this case, I think the difference is social capital. Kids who attend private schools -- the right private schools -- tend to have more of it.
by Stormbringer
Thu May 17, 2018 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Property and Casualty Insurance - Best Strategy?
Replies: 2
Views: 184

Property and Casualty Insurance - Best Strategy?

We had American Family Insurance for a number of years for home+auto+umbrella and I noticed that our rates were going up double digit percentages every year. It seemed like every time a tornado touched down within a 200 mile radius, our rates would jump 15%. In 2012 we switched to Progressive and sa...
by Stormbringer
Thu May 17, 2018 5:52 am
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9825

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

Since the employer portion is limited to 25% of compensation, it forces me to take a higher salary than I otherwise would, so there are some additional payroll taxes. Overall though it really brings down my tax bill and puts me in a good position for retirement. I suppose the math on this depends o...
by Stormbringer
Tue May 15, 2018 11:19 am
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 9825

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

2018 401k limit is $55K - do you max it out? Why/why not? I do! I started in 2012, and it has really supercharged my retirement portfolio. Being self-employed with adequate income makes it pretty straight-forward. Since the employer portion is limited to 25% of compensation, it forces me to take a ...
by Stormbringer
Tue May 08, 2018 6:08 am
Forum: Investing - Theory, News & General
Topic: Why do so many Americans not own stocks?
Replies: 44
Views: 3507

Re: Why do so many Americans not own stocks?

1) Behavioral problems.
2) Financial illiteracy.
3) Bad luck.
by Stormbringer
Mon May 07, 2018 9:00 pm
Forum: Investing - Theory, News & General
Topic: AAPL - Great Investment or Value Trap
Replies: 62
Views: 7947

Re: AAPL - Great Investment or Value Trap

The S&P 500 has a 24 P/E ratio. AAPL is 17.

Apple's performance as a company is simply mind boggling. They turn a $400,000 per year profit on each of their 123,000 employees. 488/500 companies in the S&P have a market cap less than the $267 billion in cash that Apple has.
by Stormbringer
Sat May 05, 2018 2:22 pm
Forum: Investing - Theory, News & General
Topic: Berkshire Hathaway Annual Meeting Today 5/5 - Yahoo Livestream
Replies: 23
Views: 2382

Re: Berkshire Hathaway Annual Meeting Today 5/5 - Yahoo Livestream

I thought it was interesting that while Buffett encourages people to invest in index funds, not all Berkshire companies offer them in their 401(k). I found his comment -- that they let the managers of the businesses make these decisions without interference from HQ -- to be a little disappointing.
by Stormbringer
Sat May 05, 2018 8:08 am
Forum: Investing - Theory, News & General
Topic: Paying down your mortgage as a way to balance your portfolio?
Replies: 72
Views: 3837

Re: Paying down your mortgage as a way to balance your portfolio?

Paying down your mortgage as a way to balance your portfolio? I think of it in a very different way. Often we think of our portfolios from the perspective of a balance sheet (e.g. "what's my net worth?", "how much do I have in retirement savings?", etc.). However, most people experience life from t...
by Stormbringer
Sat May 05, 2018 7:19 am
Forum: Investing - Theory, News & General
Topic: Berkshire Hathaway Annual Meeting Today 5/5 - Yahoo Livestream
Replies: 23
Views: 2382

Berkshire Hathaway Annual Meeting Today 5/5 - Yahoo Livestream

For those interested in hearing what Warren and Charlie have to say, Yahoo will be live-streaming the event today starting at 9:45 ET:

https://finance.yahoo.com/brklivestream/
by Stormbringer
Fri Apr 27, 2018 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax on Gifted Land
Replies: 3
Views: 262

Tax on Gifted Land

Two years ago we unexpectedly received a warranty deed in the mail for some vacant land several hours from our home. My father-in-law subdivided his land and gave a parcel each to my wife and her sister. We didn't really want it because of the holding cost, but the larger tract of land from which it...
by Stormbringer
Tue Apr 24, 2018 4:02 pm
Forum: Investing - Theory, News & General
Topic: Why are rising Bond Yields bad?
Replies: 37
Views: 4390

Re: Why are rising Bond Yields bad?

Hi I’m 26 and relatively new to investing and have seen in the news lately that bond yields are “creeping up” and it’s a bad signal for the market. I don’t try and beat the market so I’m not looking to sell or time anything but I am just looking to understand why this is bad for the market. Can any...
by Stormbringer
Sun Apr 08, 2018 2:24 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 197
Views: 26145

Re: 2-year CDs at Vanguard and Fidelity Today

Yesterday Fidelity had the same Morgan Stanley CDs at 2.60%, but not now. Between the two MS banks VG has more than 23,000 available (well, now down to a little more than 20,000 since I started writing this). I guess Fidelity already sold its allotment, and it looks like Vanguard may sell out today...
by Stormbringer
Thu Apr 05, 2018 8:28 pm
Forum: Investing - Theory, News & General
Topic: Bond Portfolio for High Net Worth Individuals - Different Rules?
Replies: 67
Views: 7534

Re: Bond Portfolio for High Net Worth Individuals - Different Rules?

HNWI that I know diversify into other investments, mostly real estate. Bonds aren't a major component of their portfolio. I buy residential real estate. While it isn't fixed income, it is reasonably predictable income with some growth potential and an inflation hedge. Plus I find it comforting to o...
by Stormbringer
Tue Apr 03, 2018 2:24 am
Forum: Investing - Theory, News & General
Topic: “We’re not making enough money off you”
Replies: 62
Views: 10902

Re: “We’re not making enough money off you”

Badger1754 wrote:
Sun Apr 01, 2018 4:11 pm
“we’re not making enough money off of you”
My mom pretty much got the same reaction from her Ameriprise guy when I convinced her to switch to index funds, saving $5,700 a year in fees.
by Stormbringer
Sun Apr 01, 2018 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Should I loan my child money for college?
Replies: 73
Views: 5454

Re: Should I loan my child money for college?

Should we not fund our children's education even when EFC calls for it in the name of retirement? People seem to have wildly different views on education. My best friend's parents told their six children that college was a waste of money and refused to fill out the financial aid forms. My friend wa...
by Stormbringer
Sun Apr 01, 2018 5:38 am
Forum: Personal Finance (Not Investing)
Topic: Investing in syndicated real estate deals
Replies: 11
Views: 988

Re: Investing in syndicated real estate deals

I think you want to make sure the exit strategy is well understood. If the buildings get sold at some point, you could face an unwelcome capital gain. Conversely, if the deal doesn't pan out as expected, how to you get out of it? The other thing is that you need to get your head around the managing ...
by Stormbringer
Sun Apr 01, 2018 5:22 am
Forum: Personal Finance (Not Investing)
Topic: Should I loan my child money for college?
Replies: 73
Views: 5454

Re: Should I loan my child money for college?

Should we not fund our children's education even when EFC calls for it in the name of retirement? People seem to have wildly different views on education. My best friend's parents told their six children that college was a waste of money and refused to fill out the financial aid forms. My friend wa...
by Stormbringer
Sat Mar 31, 2018 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: What age is the best to give a child control of an inheritance?
Replies: 192
Views: 11283

Re: What age is the best to give a child control of an inheritance?

warner25 wrote:
Sat Mar 31, 2018 8:39 pm
I want to ask gasdoc (or anyone else in this position), what is the purpose of passing on an inheritance to adult children?
Because I would feel like a real jerk disinheriting my daughter for no good reason.
by Stormbringer
Sat Mar 31, 2018 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: What age is the best to give a child control of an inheritance?
Replies: 192
Views: 11283

Re: What age is the best to give a child control of an inheritance?

gasdoc wrote:
Sat Mar 31, 2018 3:34 pm
Maybe give half at age 35, or at the time of death, and the other half at age 50
Think about the message this sends to your child. I would be pretty insulted if my parents thought so little of me that they felt they had to wait until I was 50 to responsibly handle an inheritance.
by Stormbringer
Sat Mar 31, 2018 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: How much do I need to save?
Replies: 16
Views: 2860

Re: How much do I need to save?

30k emergency fund (5-6 months more or less) You're doing great, but you don't seem to have a lot of liquidity in case you need a sizable chunk of money for something. With a family and a house and older cars, I'd sleep better at night with $50-100K liquid somewhere. You can burn through $30K prett...
by Stormbringer
Sat Mar 31, 2018 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Off Mortgage with Windfall?
Replies: 57
Views: 5585

Re: Pay Off Mortgage with Windfall?

One thing to consider in situations like this is asset protection. For example, in my state a personal residence has some legal protection from creditors that a bank account doesn't have. On the other hand, if the windfall was an inheritance it remains 100% the property of the heir (and not their sp...
by Stormbringer
Mon Feb 26, 2018 10:14 am
Forum: Investing - Theory, News & General
Topic: Warren Buffett Dislikes Bonds
Replies: 57
Views: 6869

Re: Warren Buffett Dislikes Bonds

anoop wrote:
Sun Feb 25, 2018 9:26 pm
He obviously doesn't think the same of t-bills.
Buffett has made it clear that he doesn't like sitting on so many T-bills either. He would rather use the money and make acquisitions with it, but he hasn't found the right business at the right price for a while.
by Stormbringer
Tue Feb 13, 2018 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: Number at which to stop worrying
Replies: 170
Views: 17896

Re: Number at which to stop worrying

KlangFool wrote:
Mon Feb 12, 2018 5:53 pm
OP,

50 times your current annual expense.

At 72K per year, it is 3.6 million.

KlangFool
A 65 year-old couple can get an inflation-adjusted annuity that kicks off $72K per year for $2M. At that point all the gyrations of the market are someone else's problem to worry about.
by Stormbringer
Tue Feb 13, 2018 9:32 pm
Forum: Investing - Theory, News & General
Topic: Day trading for a living/career?
Replies: 95
Views: 7445

Re: Day trading for a living/career?

I don't even understand how people could theoretically make a living doing this, any more than you could make a living playing craps at the casino (and I used to be a dealer). For every good trade you make, someone else has to be making a bad trade. Yet surely there are a great many people with bett...
by Stormbringer
Tue Feb 13, 2018 10:14 am
Forum: Investing - Theory, News & General
Topic: Attention Sqawk Box viewers
Replies: 16
Views: 1663

Re: Attention Sqawk Box viewers

tennisplyr wrote:
Tue Feb 13, 2018 8:31 am
What is it that appeals to you about the show?
If I'm lucky, Warren Buffett will be a guest.
by Stormbringer
Fri Feb 09, 2018 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Can the real estate market crash if there's no inventory?
Replies: 15
Views: 1441

Re: Can the real estate market crash if there's no inventory?

Low supply and high demand is a recipe for rising prices, at least in the short to medium term.

In the longer-term, I would expect high prices to attract more supply, and higher interest rates to reduce demand somewhat.
by Stormbringer
Tue Feb 06, 2018 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Quicken Premier 5-year subscription $0 (free) on quicken website
Replies: 161
Views: 10685

Re: Quicken Premier 5-year subscription $0 (free) on quicken website

I'm not particularly impressed with how Quicken is handling this. You would think that they would at least send an email explaining the situation. There are likely thousands of people who downloaded this and irreversibly updated their old Quicken version, and now are trapped in a subscription model ...
by Stormbringer
Sun Feb 04, 2018 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Quicken Premier 5-year subscription $0 (free) on quicken website
Replies: 161
Views: 10685

Re: Quicken Premier 5-year subscription $0 (free) on quicken website

Being in IT, my bet is that they did what they could do on Sunday to stop the immediate problem. In the days and weeks ahead they will comb through their data to identify who obtained these subscriptions and develop some sort of plan to roll them back to one degree or another. I'd like to think that...
by Stormbringer
Sun Feb 04, 2018 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Financial Hole
Replies: 163
Views: 13988

Re: Financial Hole

finite_difference wrote:
Sun Feb 04, 2018 12:07 pm
A second job when he’s currently working 12 hours per day?
He said he had days off. He said was considering a side job. I doubt he's working 5-6 days a week at 12 hours a day or he would be raking in overtime.
by Stormbringer
Sun Feb 04, 2018 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Financial Hole
Replies: 163
Views: 13988

Re: Financial Hole

Payday loans are a good way to send yourself rocketing to the poorhouse. Watch this video to learn how expensive they really are. I would start by getting a second job and slashing expenses. You would be surprised what you could cut if you are determined enough. Once you stop the hemorrhaging, start...
by Stormbringer
Sun Feb 04, 2018 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Quicken Premier 5-year subscription $0 (free) on quicken website
Replies: 161
Views: 10685

Re: Quicken Premier 5-year subscription $0 (free) on quicken website

I bet come Monday they either cancel all of these orders, or shorten the subscription significantly... I'm betting they all get reduced to 1-year. That way they can say you have nothing to complain about because you still got something for free. Meanwhile, the execs will be doing a Snoopy dance bec...
by Stormbringer
Sun Feb 04, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Quicken Premier 5-year subscription $0 (free) on quicken website
Replies: 161
Views: 10685

Re: Quicken Premier 5-year subscription $0 (free) on quicken website

If this is the case then they can just take the subscription service away if its an error, not charge you the amount it should be without you agreeing. IANAL but they made me an offer, I accepted it and I "paid" for it in full. That's a "done deal." They may have a loophole because the amount of "p...
by Stormbringer
Sun Feb 04, 2018 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Quicken Premier 5-year subscription $0 (free) on quicken website
Replies: 161
Views: 10685

Re: Quicken Premier 5-year subscription $0 (free) on quicken website

Interesting, on my account page, under purchases it says service ends in 1 year. Also, please note that there is no "download" link (unlike my older purchases, which have them). This suggests this may not be easily transferable to a new computer. You'll want to save the setup program. Also, backup y...
by Stormbringer
Fri Feb 02, 2018 9:52 pm
Forum: Investing - Theory, News & General
Topic: Are we in an index fund bubble? Bill Ackman thinks we are.
Replies: 45
Views: 4329

Re: Are we in an index fund bubble? Bill Ackman thinks we are.

panchilly wrote:
Fri Feb 02, 2018 9:04 am
Bill Ackman
Oh, that guy. He somehow managed to lose his investors 4% last year. His hedge fund is hemorrhaging investors.
by Stormbringer
Tue Jan 30, 2018 3:17 pm
Forum: Investing - Theory, News & General
Topic: The Vanderbilts
Replies: 26
Views: 4102

Re: The Vanderbilts

Leave your kids enough money so that they can do anything, but not so much that they can do nothing.
by Stormbringer
Tue Jan 30, 2018 3:15 pm
Forum: Investing - Theory, News & General
Topic: Wow: Shiller PE is 34.52
Replies: 52
Views: 6506

Re: Wow: Shiller PE is 34.52

I really don't trust the Shiller PE right now for two reasons: The 10-year data set includes 2008-09, which was a fairly extreme financial event. Interest rates remain very low, which puts upward pressure on PE. Even if you do have faith in the metric, Dr. Shiller himself has said it is not useful f...
by Stormbringer
Tue Jan 30, 2018 1:16 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6537
Views: 1401317

Re: U.S. stocks in freefall

I have 20% position in TBM and dividends have not come close to making up for the rapid drop in NAV. NAV is only relevant if you want either to buy or sell. If you're holding forever, it doesn't matter. :beer TBM has a pretty high turnover ratio (~80%), which I believe means they sell bonds when th...
by Stormbringer
Sun Jan 28, 2018 8:47 am
Forum: Investing - Theory, News & General
Topic: 401k millionaires
Replies: 158
Views: 24466

Re: 401k millionaires

I assume they grabbed only individual accounts > $1M? I imagine the number may be significantly higher if you include households and multiple accounts. The Economic Policy Institute did a study in 2016 that looked at total retirement account savings by family. The threshold for the top 1% was $1,08...
by Stormbringer
Sat Jan 27, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: 401k millionaires
Replies: 158
Views: 24466

Re: 401k millionaires

Grogs wrote:
Sat Jan 27, 2018 10:57 am
My plan administrator (Schwab) gives statistics for where my 401k ranks against my peers, defined as age +/- 2 year's and salary +/- 5%.
Is that on their website somewhere?