Search found 1020 matches

by WanderingDoc
Fri Aug 03, 2018 3:13 pm
Forum: Investing - Theory, News & General
Topic: 3 Levels of Wealth
Replies: 125
Views: 11924

Re: 3 Levels of Wealth

OP, Another point of view. I am always wealthy. 1) I have never in debt. A) I pay off my credit card every month. B) I had a car loan but I can pay it off any time. C) I have a mortgage but I can pay it off any time too. 2) I save 1 year of expense every year for my whole life. But, I have enough m...
by WanderingDoc
Fri Aug 03, 2018 3:08 pm
Forum: Investing - Theory, News & General
Topic: 3 Levels of Wealth
Replies: 125
Views: 11924

Re: 3 Levels of Wealth

I never cared what stuff costs in restaurants, even when my NW was $10K. Ironically, that is what I attribute my success to, never having a budget or trying to save money. I was more focused on thinking about how I can increase my INCOME, not about if paying $50 for a meal will bankrupt me. You can...
by WanderingDoc
Fri Aug 03, 2018 3:02 pm
Forum: Investing - Theory, News & General
Topic: Heading for a top?
Replies: 112
Views: 10431

Re: Heading for a top?

Also, equities have been in somewhat of a bear market since February. Hardly. The lowest closing price for the S&P500 YTD was 2,581.00 on February 8th. Just prior to that, the highest closing price YTD for the index was 2,872.87 on January 26th. This represents a drop from high to low of 291.87, or...
by WanderingDoc
Fri Aug 03, 2018 1:08 pm
Forum: Investing - Theory, News & General
Topic: Heading for a top?
Replies: 112
Views: 10431

Re: Heading for a top?

Just realized this is from a few weeks before the Jan 26 "top" so I guess we were headed for a top that has lasted around 7 months. Stay the course. More tops ahead... and bottoms. Weren't they talking about crypto? That prediction was bang on. Also, equities have been in somewhat of a bear market ...
by WanderingDoc
Fri Aug 03, 2018 11:55 am
Forum: Investing - Theory, News & General
Topic: 3 Levels of Wealth
Replies: 125
Views: 11924

Re: 3 Levels of Wealth

Ben Carlson's article, "The 3 Levels of Wealth", http://awealthofcommonsense.com/2018/08/the-3-levels-of-wealth/, made me think about having enough to retire even though it was more about growing income inequality. Carlson describes the 3 levels of wealth posited by Stewart Butterworth, the founder...
by WanderingDoc
Fri Aug 03, 2018 11:51 am
Forum: Investing - Theory, News & General
Topic: So go the FAANG, so goes the market?
Replies: 41
Views: 4634

Re: So go the FAANG, so goes the market?

Apple is, first and foremost, a marketing company. The CPU in the Iphone up until that iPhone 6 was made my Samsung. Samsung has always outperformed Apple laptops and cellular phones at any and every given time, usually at a cheaper price. Samsung is a technology company, first and foremost. Apple ...
by WanderingDoc
Fri Aug 03, 2018 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Using Side Business to Finance Rental Property
Replies: 7
Views: 527

Re: Using Side Business to Finance Rental Property

With RE you have to be right in both time and space (location). Always remember that even hot locations will eventually follow the laws of economics and cool down. So you need to be awake. Any obviously high yield trade/industry will attract so much investment till it becomes mediocre. I also agree...
by WanderingDoc
Fri Aug 03, 2018 12:47 am
Forum: Investing - Theory, News & General
Topic: So go the FAANG, so goes the market?
Replies: 41
Views: 4634

Re: So go the FAANG, so goes the market?

Apple’s worldwide iPhone revenue through first three quarters of fiscal year: 2008 $1bn 2010 $16.4bn 2012 $62bn 2014 $78.3bn 2016 $108.5bn 2018 $129.5bn Via Statista Apple is, first and foremost, a marketing company. The CPU in the Iphone up until that iPhone 6 was made my Samsung. Samsung has alwa...
by WanderingDoc
Fri Aug 03, 2018 12:43 am
Forum: Investing - Help with Personal Investments
Topic: Using Side Business to Finance Rental Property
Replies: 7
Views: 527

Re: Using Side Business to Finance Rental Property

I understand this is probably not the best board to ask this question, but I would like to see what the Bogleheads have to say. This board has literally saved my financial life. I would like to use funds from a online side business I have and place into a rental property. The 20% downpayment and re...
by WanderingDoc
Tue Jul 31, 2018 11:17 pm
Forum: Investing - Help with Personal Investments
Topic: 1.9 M windfall. My plan; input requested
Replies: 30
Views: 4675

Re: 1.9 M windfall. My plan; input requested

Your plan is very reasonable. Keep in mind, real estate produces (much) more income and had better tax benefits than index funds or stocks. $1M down on a 3.5M 50 unit apartment complex will generate $100K in annual income, NET of expenses and CapEx. Factoring depreciation and other expenses, you leg...
by WanderingDoc
Tue Jul 31, 2018 11:15 am
Forum: Investing - Theory, News & General
Topic: So go the FAANG, so goes the market?
Replies: 41
Views: 4634

Re: So go the FAANG, so goes the market?

Hoping for a 40-50% market retraction by 2020. I have less than $200K in equities, so I doubt I'd be terribly upset. After that, I plan to either DCA into Wellington and Wellesley OR do the Dave Ramsey method: Growth, Agressive Growth, Income, and Int'l split 4 ways. Haven't decided the better stra...
by WanderingDoc
Tue Jul 31, 2018 3:49 am
Forum: Investing - Theory, News & General
Topic: So go the FAANG, so goes the market?
Replies: 41
Views: 4634

Re: So go the FAANG, so goes the market?

Hoping for a 40-50% market retraction by 2020. I have less than $200K in equities, so I doubt I'd be terribly upset. After that, I plan to either DCA into Wellington and Wellesley OR do the Dave Ramsey method: Growth, Agressive Growth, Income, and Int'l split 4 ways. Haven't decided the better stra...
by WanderingDoc
Mon Jul 30, 2018 10:51 pm
Forum: Investing - Theory, News & General
Topic: So go the FAANG, so goes the market?
Replies: 41
Views: 4634

Re: So go the FAANG, so goes the market?

What I am going to do is, put $25K each into Wellington/Wellesley and the 4 Dave Ramsey Indexes. Then I will DCA $500 per month into each one. I will start this on Jan 1st, 2020, or during the next peak to trough 30% correction, whichever comes first. I will update you on which portfolio outperforme...
by WanderingDoc
Mon Jul 30, 2018 10:45 pm
Forum: Investing - Theory, News & General
Topic: So go the FAANG, so goes the market?
Replies: 41
Views: 4634

Re: So go the FAANG, so goes the market?

Hoping for a 40-50% market retraction by 2020. I have less than $200K in equities, so I doubt I'd be terribly upset. After that, I plan to either DCA into Wellington and Wellesley OR do the Dave Ramsey method: Growth, Agressive Growth, Income, and Int'l split 4 ways. Haven't decided the better stra...
by WanderingDoc
Mon Jul 30, 2018 9:11 pm
Forum: Investing - Theory, News & General
Topic: So go the FAANG, so goes the market?
Replies: 41
Views: 4634

Re: So go the FAANG, so goes the market?

Hoping for a 40-50% market retraction by 2020. I have less than $200K in equities, so I doubt I'd be terribly upset. After that, I plan to either DCA into Wellington and Wellesley OR do the Dave Ramsey method: Growth, Agressive Growth, Income, and Int'l split 4 ways. Haven't decided the better strat...
by WanderingDoc
Mon Jul 30, 2018 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie enlightened by Bogleheads
Replies: 23
Views: 3188

Re: Newbie burned by bonds

I hate to say this, but I agree with Dave Ramsey on this one. I'd rather invest 50/50 equities/cash or MMFs before buying any bonds. My current asset allocation is 90/10, 90% being mostly real estate equity, and 10% being MMFs and cash. Bonds are worthless. Even when they were yielding 18%, and infl...
by WanderingDoc
Mon Jul 30, 2018 3:57 pm
Forum: Investing - Theory, News & General
Topic: Are stocks dangerously overvalued? Not according to new Vanguard yardstick
Replies: 84
Views: 8879

Re: Are stocks dangerously overvalued? Not according to new Vanguard yardstick

A weather model that only accounted for one variable and assumed all other variables would remain the same would be very inaccurate predicting the weather. In fact this is exactly why you don't see weather predictions 10 weeks or 10 months or 10 years in advance. I do not understand how CAPE propon...
by WanderingDoc
Mon Jul 30, 2018 3:12 pm
Forum: Investing - Theory, News & General
Topic: Are stocks dangerously overvalued? Not according to new Vanguard yardstick
Replies: 84
Views: 8879

Re: Are stocks dangerously overvalued? Not according to new Vanguard yardstick

People come up with all sorts of "models" to make themselves feel better, it helps them sleep better at night. That is human nature. Similar to changing how the way unemployment was calculated/reported, changing how quarterly earnings are reported, changing how CAPE is reported, changing how the tr...
by WanderingDoc
Mon Jul 30, 2018 2:20 pm
Forum: Investing - Theory, News & General
Topic: Are stocks dangerously overvalued? Not according to new Vanguard yardstick
Replies: 84
Views: 8879

Re: Are stocks dangerously overvalued? Not according to new Vanguard yardstick

People come up with all sorts of "models" to make themselves feel better, it helps them sleep better at night. That is human nature. Similar to changing how the way unemployment was calculated/reported, changing how quarterly earnings are reported, changing how CAPE is reported, changing how the tra...
by WanderingDoc
Sat Jul 28, 2018 6:11 pm
Forum: Investing - Theory, News & General
Topic: Passive Index Investing, A Bubble Bound To Burst?
Replies: 114
Views: 11806

Re: Passive Index Investing, A Bubble Bound To Burst?

Is passive investing the same as index investing? If not, do they need to be discussed separately? It seems that most people are referring to indexing when they talk about "passive investing". I'm of the opinion that "passive" means not active and includes someone who buys and holds a portfolio of ...
by WanderingDoc
Sat Jul 28, 2018 3:18 pm
Forum: Investing - Theory, News & General
Topic: Passive Index Investing, A Bubble Bound To Burst?
Replies: 114
Views: 11806

Re: Passive Index Investing, A Bubble Bound To Burst?

That is actually a very well-written article. The fact that the author may or may not be an active investor or sell stocks, does not dictate the validity of the article or lack thereof. For the same reason a wise person does not criticize people, they criticize ideas only. Last time I checked, most...
by WanderingDoc
Sat Jul 28, 2018 1:02 pm
Forum: Investing - Theory, News & General
Topic: Passive Index Investing, A Bubble Bound To Burst?
Replies: 114
Views: 11806

Re: Passive Index Investing, A Bubble Bound To Burst?

That is actually a very well-written article. The fact that the author may or may not be an active investor or sell stocks, does not dictate the validity of the article or lack thereof. For the same reason a wise person does not criticize people, they criticize ideas only. Last time I checked, most ...
by WanderingDoc
Fri Jul 27, 2018 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: Your age in bonds?
Replies: 57
Views: 6658

Re: Your age in bonds?

I would appreciate a little clarification. I've seen the rule of thumb to invest your age in bonds however, I believe that some have said that the bond allocation should include the capitalized value of pensions and SS. I wouldn't include capitalized value of pensions and SS but I probably WOULD ma...
by WanderingDoc
Fri Jul 27, 2018 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: Your age in bonds?
Replies: 57
Views: 6658

Re: Your age in bonds?

I would appreciate a little clarification. I've seen the rule of thumb to invest your age in bonds however, I believe that some have said that the bond allocation should include the capitalized value of pensions and SS. I wouldn't include capitalized value of pensions and SS but I probably WOULD ma...
by WanderingDoc
Thu Jul 26, 2018 10:54 pm
Forum: Investing - Theory, News & General
Topic: Facebook stock in freefall! (20% drop in 1-day)
Replies: 120
Views: 11166

Re: Facebook stock in freefall! (20% drop in 1-day)

Totally agree. Quit and deactivated fb for the last time in Feb. '18. Nothing but happiness and productivity since. After I heard Zuckerberg speak to Congress, sounding like a toddler, no charisma/presence/confidence this just reaffirmed my decision. Well, you know this one is coming :) so don't pr...
by WanderingDoc
Thu Jul 26, 2018 5:41 pm
Forum: Investing - Theory, News & General
Topic: Facebook stock in freefall! (20% drop in 1-day)
Replies: 120
Views: 11166

Re: Facebook stock in freefall! (20% drop in 1-day)

Totally agree. Quit and deactivated fb for the last time in Feb. '18. Nothing but happiness and productivity since. After I heard Zuckerberg speak to Congress, sounding like a toddler, no charisma/presence/confidence this just reaffirmed my decision. Well, you know this one is coming :) so don't pre...
by WanderingDoc
Thu Jul 26, 2018 2:49 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

Not a dream. I am already FI. Real estate income exceeds my living expenses. That took 3.5 years of part time investing. I share my ACTUAL experience and financials. Its all we can do. For the record, I'd rather be the happy-go-lucky, energetic, and optimistic 60, 70, or 80 year old than the typical...
by WanderingDoc
Thu Jul 26, 2018 1:55 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

And that’s all normal stuff. There’s also never a general economic collapse that leads to slumping demand for housing (locally or generally). There are confident, optimistic people who have been landlording for five years and don’t know that there were people Who felt the same way, with equal justi...
by WanderingDoc
Thu Jul 26, 2018 1:50 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

I think it's important to point out in the case of an "emergency".. the index investor liquidates $100K and has to pay 15-38% tax on it, even more if it's in a tax sheltered account. The cash flow that my rentals throw off has been TAX FREE since I started renting out my first space. I carry a $100-...
by WanderingDoc
Wed Jul 25, 2018 5:29 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

Cap rate is used to value large residential and commercial real estate. 4 unit (and in practicality 16 unit) and under properties are not valued by cap rate, they are valued by comparables. That equation is indeed correct. These "Turnkey" companies erroneously started to quote Cap Rate figures on th...
by WanderingDoc
Wed Jul 25, 2018 5:05 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

For example in my first real estate deal, it took 2 years to get back invested capital (down payment + all closing costs). Would your company jump all over that? 2 year payback on invested capital? We would love that but it depends on whether we financed it or paid cash. When we buy a company for $...
by WanderingDoc
Wed Jul 25, 2018 3:25 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

EDIT: Can you value the business you work at Corn? Not sure if you have access to that information. Sometimes being a business owner and experiencing how a business works -- cash needs -- etc helps one to learn how to value a business (this isn't always the case). I can't find the quote but someone...
by WanderingDoc
Wed Jul 25, 2018 2:54 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

This has been mentioned before. My strategy changes depending on the market cycles and my goals. If I live in a market where there is supply limitations (for any reason) and rent growth, I will invest directly. Realtors or other investors bring me off market or MLS deals. Sometimes it's better to gi...
by WanderingDoc
Wed Jul 25, 2018 2:08 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

Someone has thought his whole life (via indoctrination by the media, news, banks, Wall Street, and politicians) that the best way to retire comfortably is to invest in index funds... lol wut. Also, I think most would agree that the best path to a comfortable retirement is to find something you are ...
by WanderingDoc
Wed Jul 25, 2018 2:04 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

Nah. If you sell your paper today, you WILL pay a 15% (or up to 38%) tax on it. If you sell paper in a retirement account, you WILL pay a 10% fee on top of that. Taking your own money out of a Roth IRA doesn't count since that is nothing more than the original principal. My passive rental income goe...
by WanderingDoc
Wed Jul 25, 2018 12:27 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

Umm... What? If I buy a property for $500K today, let's say I depreciate $400K over it's entire course. In 30 years, that property will be worth $1.5M, free and clear. 25% tax on $400K of depreciation, hmm $100K. So even if I do sell, $100K of $1.5M.. does that sound like even a dent in that? You ma...
by WanderingDoc
Wed Jul 25, 2018 12:23 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

I'm not moving anything. I gave you a SPECIFIC example. A property that cash flows $12K per year in my bank account, $13K depreciation offsets that directly and them some, declaring a net loss. This is straightforward. I am not posting the address, if that's the specificity you require :oops: Yeah, ...
by WanderingDoc
Wed Jul 25, 2018 12:01 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

Yeah, you're on the right track. If you own a $500,000 property it is more like the first $14-15K :) But don't forget, you have to add in mortgage interest, taxes, insurance, repairs, HOA fees, and PM fees (of you're using one). The depreciation and mortgage interest deduction combined is the bulk o...
by WanderingDoc
Wed Jul 25, 2018 11:55 am
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

So every real estate investor holds all of their properties until they are dead? Or you can just do cash out refis, 1031 exchanges, or continue to hold. All three are tax free. I am doing a cash out refi on two properties probably next week. This will pull out a cool $80K or so per property. This i...
by WanderingDoc
Wed Jul 25, 2018 11:52 am
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

Deals come to me sure, but I don't buy everything I see. I think it's important to point out how we track time spend. Time on this forum. Time reading an investment book. Time fiddling with spreadsheets. Time thinking about to change AA or IPS. Worrying if not enough in bonds, talking to others abou...
by WanderingDoc
Wed Jul 25, 2018 11:44 am
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

Oh man, cognitive dissonance 101. I DO have real estate profits, every month. How do I know? All of my rents flow into and all of my expenses flow out of the same bank account. At the end of each month, there is $3500 give or take in that account. When it comes time to do taxes, due to mortgage inte...
by WanderingDoc
Wed Jul 25, 2018 11:16 am
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

They might, but there is a lot more red tape, people to pay, and degrees of freedom (ie. profits) between me and it with stocks. With real estate there are none. I directly control it. WD - could you clarify please. I think based on your previous posts you don't really originate deals - others brin...
by WanderingDoc
Wed Jul 25, 2018 10:58 am
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

Is it a meaningful term. The quotes don't make sense. Real estate pays you in cash flow, capital appreciation, amortization/principal paydown, force value, inflation hedging/profiting, depreciation, net tax benefit. Equities pays you in capital appreciation and a 1.5-2.5% dividend, which is quite l...
by WanderingDoc
Wed Jul 25, 2018 1:08 am
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

(what is a quality-adjusted capital gain?) Good question. I have no idea but wager it is something that doesn't need to be considered. Any "quality" or "risk" adjustment is nonsense. All that matters is money in vs money out. Returns. No need to "adjust" to make low return investments seem more app...
by WanderingDoc
Tue Jul 24, 2018 11:20 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

(what is a quality-adjusted capital gain?) Good question. I have no idea but wager it is something that doesn't need to be considered. Any "quality" or "risk" adjustment is nonsense. All that matters is money in vs money out. Returns. No need to "adjust" to make low return investments seem more app...
by WanderingDoc
Tue Jul 24, 2018 2:37 am
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

I wanted to link to another thread here on Bogleheads: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=225784 "Study: The Rate of Return on Everything 1870-2015" " 1) Residential real estate (as rental investment) actually outperformed global stocks since 1870 . Housing beat stocks mainly bec...
by WanderingDoc
Mon Jul 23, 2018 5:25 pm
Forum: Investing - Theory, News & General
Topic: I may have understood why it's so hard to save and invest
Replies: 75
Views: 11264

Re: I may have understood why it's so hard to save and invest

Yes, said in an Arnold Schwarzenegger accent. Two words - STOP WHINING Hello everyone, I recently have the opportunity to save a 1-month equivalent paycheck (1500$) and invest it through my brokerage. However, although it cost me a "lot" of effort, my net worth of my portfolio only increase by 2% (p...
by WanderingDoc
Mon Jul 23, 2018 4:17 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

Any websites to search for real estate properties of duplex and multiplex in atlanta area? I am interested in gaining a perspective, no where near to teh range of investing though. Where I live, there are SFH or Townhomes or Apartments. I like redfin.com and realtor.com The best deals are typically...
by WanderingDoc
Mon Jul 23, 2018 4:15 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

When we bought our present home 33 years ago, we sold our rather nice 2BR/2B condo. I've often thought that we should have held onto it. I'm pretty sure we could have about broken even as far as the rent covering the all the costs/PITI. We sold it for $140K, and today it is worth about $525K ($330k...
by WanderingDoc
Mon Jul 23, 2018 2:57 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17033

Re: Direct Real Estate Returns

1. I don't doubt that the quotes higher rates of return are possible, but they don't take into account the time invested. Anyone claiming to easily get consistent 38%+ returns with very little effort deserves a great deal of skepticism, particularly when they don't show their math (i.e. a list of i...