Search found 1034 matches

by Engineer250
Thu Jul 14, 2016 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: 21 Yrs Old - Am I on the right track?
Replies: 53
Views: 4580

Re: 21 Yrs Old - Am I on the right track?

The short answer. --If you have earned income, then invest in a Roth IRA. An all-in-one fund is okay. Most would recommend a target date retirement fund. -- Emergency fund (EF) . Keep 3-6 months in insured savings/money market/CDs as an easily-tapped 1st-tier (EF). --If you want to invest more, or ...
by Engineer250
Thu Jul 14, 2016 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Another "should I refinance" thread
Replies: 11
Views: 1176

Re: Another "should I refinance" thread

Alternatively, if you go with the 2.5% ARM, you have the opportunity to pay additional principal each month because the monthly payments would be $344 less than the current payments for the 4.5%. If we say you save $100 for whatever you want and put $244 extra each month towards the mortgage, you w...
by Engineer250
Thu Jul 14, 2016 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Another "should I refinance" thread
Replies: 11
Views: 1176

Re: Another "should I refinance" thread

I would definitely refi, I've been doing that every couple years at least. The mistake I made was to always refi to another 30yr loan while chasing lower payments. It's kicking the can down the road. I went with a 20yr loan last time, and this time I'm going with a 15yr. My reasons: - I don't want ...
by Engineer250
Thu Jul 14, 2016 3:38 pm
Forum: Investing - Theory, News & General
Topic: A Tale of Two Strategies
Replies: 27
Views: 4238

Re: A Tale of Two Strategies

I think your index funds will do better than his active management funds. But he may never be aware of it. Since he has a larger pile of money to begin with, and will likely lag S&P in bull years, but still "make money". It sounds like he needs to withdraw more than 4% to meet his needs? So maybe hi...
by Engineer250
Thu Jul 14, 2016 3:27 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6844
Views: 1495167

Re: U.S. stocks in freefall

I just re-watched Frontline's Inside the Meltdown and then watched The Big Short (it's streaming on Netflix right now). I felt more unsettled and nervous afterwards than I remember feeling during the crisis itself. The good news is, I was thinking about putting a small % of my portfolio in VGENX (V...
by Engineer250
Thu Jul 14, 2016 12:48 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6844
Views: 1495167

Re: U.S. stocks in freefall

Does anyone else find it boring when U.S. stocks are not in freefall? I mean, extended freefall not good, but the short-term freefall, I dunno. I kinda like it. Sorry if that's wrong. I just re-watched Frontline's Inside the Meltdown and then watched The Big Short (it's streaming on Netflix right n...
by Engineer250
Thu Jul 14, 2016 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Another "should I refinance" thread
Replies: 11
Views: 1176

Re: Another "should I refinance" thread

PenFed's 5/5 ARM adjusts up by at most 2%, so the current 5/5 2.5% will have a rate no worse than your current 4.5% at least for 5 years after the first adjustment. $257k @ 2.5% ARM: $1,015.47/mo $257k @ 3.575%: $1,164.84/mo So if refinancing to 3.575% would save you $195/mo, getting the 2.5% shoul...
by Engineer250
Thu Jul 14, 2016 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Another "should I refinance" thread
Replies: 11
Views: 1176

Re: Another "should I refinance" thread

If you're going to move in 5 years or so, do the Penfed floating rate 5/5 ARM. Your rate is locked for 5 years, and the next adjustment will lock it in for another 5 years and so on. Current rate is 2.5% now. Roll all your closing costs into a higher rate. Do not add to the principal, if that's an ...
by Engineer250
Tue Jul 12, 2016 11:59 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for late starter(s)?
Replies: 8
Views: 1457

Re: Advice for late starter(s)?

Leave emergency fund as is. Pay off student loan debt. Then tackle car debt. Don't buy new ones, the best way to get the most from your loans is to pay them off and drive until they die. Save cash and buy used for your next one. That's a lot of debt. Don't take on any more. Keep retirement as-is. Pa...
by Engineer250
Tue Jul 12, 2016 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Private vs State School?
Replies: 116
Views: 9633

Re: Private vs State School?

I didn't see the major was history in my original post. I would focus more on that as an issue and not specifically that you let him attend a private and expensive university.
by Engineer250
Tue Jul 12, 2016 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Daring to figure it out for myself .. mind numbing pension post
Replies: 17
Views: 3844

Re: Daring to figure it out for myself .. mind numbing pension post

Something to keep in mind would be what other investments do you have and how much of your expenses do you expect to be able to get from them. If there is a downturn for 3-5 years, can your other investments and your lump sum invested carry you? There was another thread where someone was a few years...
by Engineer250
Tue Jul 12, 2016 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: If Employer Reimburses Apartment Broker Fee, is it Taxable Income?
Replies: 3
Views: 484

Re: If Employer Reimburses Apartment Broker Fee, is it Taxable Income?

I am not a tax professional. In general, reimbursement for tuition or mileage from an employer is not taxable. I'm not sure how moving expenses are handled. I would think specific expenses that directly correlate to cost incurred might not be. Maybe this can help: https://www.irs.gov/publications/p5...
by Engineer250
Tue Jul 12, 2016 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Private vs State School?
Replies: 116
Views: 9633

Re: Private vs State School?

My son attends a private college that cost 338% more than our state university. One year is now up to $65,000 vs $19,100 at the state school. We pay full amount...no scholarship or financial aid. Was this a very bad decision? We let him choose and now I wish we had not. What are the pros and cons o...
by Engineer250
Tue Jul 12, 2016 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Another "should I refinance" thread
Replies: 11
Views: 1176

Another "should I refinance" thread

Since I'm incapable of making a decision without waffling back and forth, I thought I'd open this up to get ideas for what I am not thinking of. I currently have ~$257k left on my mortgage with 27 years 10 months left @ 4.5%. I've already refinanced twice, once to get a lower rate and again to get r...
by Engineer250
Mon Jul 11, 2016 6:41 pm
Forum: Investing - Theory, News & General
Topic: Lock down Roth IRA [withdrawals by] Young Adult?
Replies: 13
Views: 1481

Re: Lock down Roth IRA [withdrawals by] Young Adult?

Their Dad's financial life is an absolute train wreck Engineer250 . Sure, it's admirable to take on debt for your kid's education. However, his entire adult life could be characterized by borrowing, defaulting, having my parents bail him out. During this time, he was driving a leased Lincoln Naviga...
by Engineer250
Mon Jul 11, 2016 5:58 pm
Forum: Investing - Theory, News & General
Topic: Long term bond performance question
Replies: 9
Views: 1281

Re: Long term bond performance question

With simplified numbers: imagine you buy a bond or fund with duration about 20 years and 3% yield (which let's say was the market yield in January). You can think of this as, approximately, entering a contract to receive 3% over 20 years. Now the market yield drops to 2% for that type of bonds. New...
by Engineer250
Mon Jul 11, 2016 5:52 pm
Forum: Investing - Theory, News & General
Topic: Lock down Roth IRA [withdrawals by] Young Adult?
Replies: 13
Views: 1481

Re: Lock down Roth IRA [withdrawals by] Young Adult?

In a nutshell, I'm concerned their dad who is underwater in house, deep in debt (lots of student debt on behalf of his girls), and on the verge of financial collapse will guilt the girls into giving the money to him to postpone the inevitable bankruptcy. This is why I'm not a fan of parents taking ...
by Engineer250
Mon Jul 11, 2016 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: What is your taxable account investing strategy?
Replies: 29
Views: 4630

Re: What is your taxable account investing strategy?

You realize you are paying 3.5% on your mortgage, minus a tax deduction....call it 2.75%. Do you expect equities to return less than 2.75% over the life of your remaining mortgage payments? 3.5% is only the rate today, not the rate many people have. Also, hope you aren't investing in any bonds then...
by Engineer250
Mon Jul 11, 2016 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: When we say Wellington has a track record of 85 years...
Replies: 12
Views: 2134

Re: When we say Wellington has a track record of 85 years...

https://s31.postimg.org/6smj4a5i3/Captura_de_pantalla_2016_07_11_a_las_3_01_44_PM.png Is the dip in equity somewhere around 2008 due to stocks losing their value and bond rising therefore taking up more of the fund or an active decision to change the ratio? How about at the end with it dipping a li...
by Engineer250
Mon Jul 11, 2016 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on Australian Asset Allocation
Replies: 8
Views: 766

Re: Thoughts on Australian Asset Allocation

Just my opinions, I am far from an expert. I agree 90/10 is fine for your age. Country home weighting: Looks like Australian market weighting internationally is pretty small, somewhere around 3%. Also looks like the MSCI ex-Australia captures only developed countries, and mostly large cap with a lit...
by Engineer250
Mon Jul 11, 2016 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Q on merging retirement accounts
Replies: 12
Views: 1391

Re: Q on merging retirement accounts

Another gotcha. If you are still working and plan to make use of the "backdoor Roth" or "mega backdoor Roth" concepts, then the existence of any rollover traditional IRA causes a problem. Solution: roll rollover IRA into an existing employer's retirement plan---no rollover IRA, no problem. Search W...
by Engineer250
Mon Jul 11, 2016 10:39 am
Forum: Investing - Help with Personal Investments
Topic: No VG funds in 401k! HELP!
Replies: 26
Views: 2187

Re: No VG funds in 401k! HELP!

I agree that the only fund to use in your 401k is the Wells Fargo Enhanced S&P 500 Index Fund ER 0.33%. The Stable Value Fund is not giving a good return. The recent performance of growth stocks is unusual and unlikely to persist. Is there a reason you have no bond allocation? Please see the wiki a...
by Engineer250
Sun Jul 10, 2016 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Edwards Jones to Vanguard
Replies: 14
Views: 1980

Re: Edwards Jones to Vanguard

Just make sure when you do the transfer to Vanguard you do a trustee to trustee (direct) transfer. Call Vanguard to get things set up so this happens correctly. This. You can setup a "Rollover IRA" with Vanguard first. That will get you an account number and a place to put the money. Then call Edwa...
by Engineer250
Sun Jul 10, 2016 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Start my Retirement fund in Germany
Replies: 14
Views: 1879

Re: Start my Retirement fund in Germany

It might be a good idea to have the S&P (40%), STOXX (40%) and the Emerging market (20%). I like this balance as it lets you maintain your desired allocation through 3 simple funds rather than trying to deal with US and developed countries weights in multiple funds. The allocation percentages would...
by Engineer250
Sun Jul 10, 2016 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: Edwards Jones to Vanguard
Replies: 14
Views: 1980

Re: Edwards Jones to Vanguard

Just make sure when you do the transfer to Vanguard you do a trustee to trustee (direct) transfer. Call Vanguard to get things set up so this happens correctly. This. You can setup a "Rollover IRA" with Vanguard first. That will get you an account number and a place to put the money. Then call Edwa...
by Engineer250
Fri Jul 08, 2016 5:27 pm
Forum: Investing - Theory, News & General
Topic: What are your thoughts on the "Golden Butterfly" portfolio?
Replies: 115
Views: 22259

Re: What are your thoughts on the "Golden Butterfly" portfolio?

I haven't written out my IPS formally...but it would definitely include "do not invest in Gold." I don't think gold has any more value than Bitcoin, stained glass, or African parrots. I acknowledge the market currently thinks it has a value, and there are some industrial uses for it, I just think m...
by Engineer250
Fri Jul 08, 2016 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Mid-Twenties Migrating 401k and Roth IRA to Index Funds (+Misc Qs)
Replies: 17
Views: 2189

Re: Mid-Twenties Migrating 401k and Roth IRA to Index Funds (+Misc Qs)

You're absolutely right about not being able to predict the future taxes or legislation. Do you have any recommended reading on how to pick that allocation (ratio of Traditional to Roth)? I think it's absolutely as personal as percentage in stocks/bonds is. Maybe for me personally I would have pref...
by Engineer250
Fri Jul 08, 2016 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Start my Retirement fund in Germany
Replies: 14
Views: 1879

Re: Start my Retirement fund in Germany

My only comments are that it seems like there's a lot of overlap between the funds. MSCI ACWI IMI is already 50% US stock and includes some European stock as well. Adding in additional european stock in the STOXX and additional us stock in the S&P seems like it would really reduce your emerging mark...
by Engineer250
Fri Jul 08, 2016 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Am I a little crazy to be thinking this way?
Replies: 112
Views: 15094

Re: Am I a little crazy to be thinking this way?

Engineer250, << Yet every calculator I try seems to show I won't have enough to replace my current-not-inflation-adjusted salary. >> I have a VERY SIMPLE answer but it is VERY HARD to do. Save 1/3, spend 1/3, and pay 1/3 in tax. I save 30+% of my gross income. I only need to save 25 years with 0% R...
by Engineer250
Fri Jul 08, 2016 3:27 pm
Forum: Investing - Theory, News & General
Topic: What are your thoughts on the "Golden Butterfly" portfolio?
Replies: 115
Views: 22259

Re: What are your thoughts on the "Golden Butterfly" portfolio?

I haven't written out my IPS formally...but it would definitely include "do not invest in Gold." I don't think gold has any more value than Bitcoin, stained glass, or African parrots. I acknowledge the market currently thinks it has a value, and there are some industrial uses for it, I just think m...
by Engineer250
Thu Jul 07, 2016 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Is Backdoor Roth right for me?
Replies: 14
Views: 1758

Re: Is Backdoor Roth right for me?

Another person to vote yes.
by Engineer250
Thu Jul 07, 2016 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Mid-Twenties Migrating 401k and Roth IRA to Index Funds (+Misc Qs)
Replies: 17
Views: 2189

Re: Mid-Twenties Migrating 401k and Roth IRA to Index Funds (+Misc Qs)

His 401k at Fidelity No company match. Both Traditional and Roth 401k options are offered. I took a stab at contributing 3:1 (Roth:Traditional) for benefits of tax-free growth plus tax-diversification in retirement. In the 28% bracket the pre-tax 401k is better. See 
 The Case Against Roth 401(k) ....
by Engineer250
Thu Jul 07, 2016 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Am I a little crazy to be thinking this way?
Replies: 112
Views: 15094

Re: Am I a little crazy to be thinking this way?

This is not realistic. From where OP is in life expenses increase much faster than investment returns. At 10% expense increase over 20 years, OP will be spending $200,000 per year after 20 years. Your calculation projects savings of $2.1M in the best case which is only 10x of annual expenses. OP ha...
by Engineer250
Thu Jul 07, 2016 3:58 pm
Forum: Investing - Theory, News & General
Topic: the paradox of skill explained
Replies: 9
Views: 1953

Re: the paradox of skill explained

Excellent article, thank you for posting.

I especially liked the nod to the infamous War Games quote in your last several sentences.
by Engineer250
Thu Jul 07, 2016 3:54 pm
Forum: Investing - Theory, News & General
Topic: What are your thoughts on the "Golden Butterfly" portfolio?
Replies: 115
Views: 22259

Re: What are your thoughts on the "Golden Butterfly" portfolio?

I like the name ... Does it meet the requirements of your Investment Policy Statement? The portfolio has, at least in theory, both incredibly high return and incredibly low volatility. In other words, what IPS wouldn't it support, would be the better question. I haven't written out my IPS formally....
by Engineer250
Thu Jul 07, 2016 3:34 pm
Forum: Investing - Theory, News & General
Topic: Actionable Advice: What to do if Japan happens here?
Replies: 36
Views: 4661

Re: Actionable Advice: What to do if Japan happens here?

Christ. Why are people so negative on the USA? Hope for the best, plan for the worst. Here's just my personal take: I ran a couple hypothetical charts on whether one were 100% invested in stocks or 80%/20% stocks/bonds to see if the bond allocation would "hurt" your gains. I used the last 25 years ...
by Engineer250
Thu Jul 07, 2016 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Emerging Markets Small Cap Value
Replies: 53
Views: 8287

Re: Emerging Markets Small Cap Value

You can also overweight small-cap emerging markets (but not value) without a separate ETF, by using Vanguard's funds for small-cap international (which includes EM) and emerging markets (which includes small-cap). For example, if you work for the US Government and your international holdings are 30...
by Engineer250
Thu Jul 07, 2016 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisor Services Experiences: Tell Me About Your Experience
Replies: 34
Views: 7432

Re: Vanguard Personal Advisor Services Experiences: Tell Me About Your Experience

Just a suggestion to inquire about, but maybe the Vanguard investor would be willing to occasionally video Skype with your relative instead of just a phonecall. It is afterall the 21st century and such technology is available. So long as both sides have a good connection it might be more personable ...
by Engineer250
Thu Jul 07, 2016 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Investing a Generation Skipping Inheritance
Replies: 3
Views: 538

Re: Investing a Generation Skipping Inheritance

I think you are on the right track. 60/40 is probably a good set it and forget it allocation. You could go more aggressive, but it might be smart then to make it a little more conservative again as they get older, so depends on whether you want to remember that in 10 years or not. If grandparents ke...
by Engineer250
Wed Jul 06, 2016 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Funds - worth it?
Replies: 33
Views: 3988

Re: Bond Funds - worth it?

Not everyone has as good of alternatives as the OP, or in my case (G Fund). If you look at Vanguard's offerings, there's a more compelling reason to use an intermediate-term fund. Comparing VBRIX at 1.09% yield and almost 3 yr duration, vs. total bond fund at 1.96% yield and 5.7 yr duration, the to...
by Engineer250
Wed Jul 06, 2016 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Funds - worth it?
Replies: 33
Views: 3988

Re: Bond Funds - worth it?

... I am doing a tax-deferred to tax-deferred rollover which later this year I will do a portion of to rollover to a Roth. I was thinking of putting a little more than that portion in the total bond market fund as a temporary holding spot so I wasn't buying/selling equities in such a short period o...
by Engineer250
Wed Jul 06, 2016 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Bond Funds - worth it?
Replies: 33
Views: 3988

Re: Bond Funds - worth it?

What does this mean for the oft recommended Total Bond Market fund usually suggested on here? Like the poster above I'm not sure I entirely understand bonds or bond funds. I am doing a tax-deferred to tax-deferred rollover which later this year I will do a portion of to rollover to a Roth. I was thi...
by Engineer250
Tue Jul 05, 2016 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Hoping for an early retirement
Replies: 29
Views: 5193

Re: Hoping for an early retirement

Something I didn't see explicitly addressed, what is your current income? Are you currently living off of $60k a year or is this some estimate that hopes you downsize some aspects of your life? I'd plug all my numbers into a spreadsheet (or Mint or something) and see what I'm really costing myself t...
by Engineer250
Tue Jul 05, 2016 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Just found out I have a TSP
Replies: 22
Views: 2639

Re: Just found out I have a TSP

When I retired from the Navy in 2008, I lost track of my TSP because it had little money in it ($1,100). Well, I found an old file with my TSP info in it and logged on to find out I had almost tripled my $1,100. Yeah. So, I put it all in the G fund and now I would like to figure out what to do with...
by Engineer250
Tue Jul 05, 2016 4:13 pm
Forum: Investing - Theory, News & General
Topic: Good one-year return for REITs: time to rebalance
Replies: 17
Views: 2815

Re: Good one-year return for REITs: time to rebalance

I have a teeny tiny amount in Vanguard's REIT ETF. In May I started to get serious about getting my money organized which meant moving over an old 401k to my TSP. I had read a lot online about things the TSP was "missing" and the two that stuck out were emerging markets and REIT. So my tiny Roth is ...
by Engineer250
Tue Jul 05, 2016 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: Zero bonds at 38 yo... and no plans to buy any
Replies: 68
Views: 6530

Re: Zero bonds at 38 yo... and no plans to buy any

Most people would suggest you don't consider social security as a substitute for bonds. Instead, as you are nearing retirement, you take it into consideration as part of your income needs. The fact that your pension and current income are tied up with the city/state as are your property values, I wo...
by Engineer250
Tue Jul 05, 2016 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: Roll call Warren Buffet 90/10 portfolio
Replies: 89
Views: 17780

Re: Role call Warren Buffet 90/10 portfolio

You can count me in as well. Roth IRA: 100% FUSVX (Fidelity S&P 500 Fund) Roth TSP: 100% C Fund (S&P 500 equivalent) Taxable: 100% VTSAX (TSM) Emergency fund: 12 months expenses in a high yield savings account, currently about 12% of my portfolio. I'm 29 and the only changes I have in mind is to ad...
by Engineer250
Sun Jul 03, 2016 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: ETF vs Admiral (Vanguard)
Replies: 3
Views: 1166

ETF vs Admiral (Vanguard)

Two accounts: Emerging Markets ETF vs Admiral Shares (and small cap international): 1) I currently have ~$1500 in emerging markets ETF (VWO) in my Roth IRA. I expect to get more via a rollover end of this year or next such that I could get the admiral shares (VEMAX). I'll also have some in a traditi...
by Engineer250
Sun Jul 03, 2016 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Am I a little crazy to be thinking this way?
Replies: 112
Views: 15094

Re: Am I a little crazy to be thinking this way?

I find the 100% stock debate to be pretty interesting. I read an article several years ago that has reflected how I am invested. The person suggested we are too conservative when we are young and not conservative enough when we are nearing retirement. That the traditional age in bonds means we miss ...
by Engineer250
Sat Jul 02, 2016 10:09 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie here: Help with my 401k and my Potential Roth IRA.
Replies: 16
Views: 1535

Re: Newbie here: Help with my 401k and my Potential Roth IRA.

What other ways one can invest in real estate? Would you please elaborate? My sister's husband's parents own 100+ unit apartment in New Mexico and a restaurant. He also owns a duplex in Boston. So I'd figure I'll follow the same. I do feel responsible for my parent's retirement since I'm the only M...