Search found 1310 matches

by WanderingDoc
Fri Jul 13, 2018 12:02 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 18161

Re: Direct Real Estate Returns

That property example is found all over the U.S., even in today's seller's market. Birmingham, Memphis, Jacksonville, Little Rock, parts of NC and SC, many more markets. A bit off topic, but do you invest using turn-key providers? Not really. I just own one property through a turnkey provider. Dece...
by WanderingDoc
Fri Jul 13, 2018 11:54 am
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 166
Views: 34745

Re: How Do You Like My New 'Doo

You can't live on $9000 per year. Take that same $300K and buy a $1.2M 24-unit building, now your 'dividend' is a cool $110K per year (that you legally paid zero taxes on after deducting expenses and depreciation). My understanding is that a landlord's cash return on real estate is about 6% a year....
by WanderingDoc
Thu Jul 12, 2018 10:00 pm
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 166
Views: 34745

Re: How Do You Like My New 'Doo

Nedsaid, Being a fellow value investor & dividend investor. Every retired person I know (Mother, Aunts, Uncles, Grandparents) are all concerned about income. Social Security (monthly income) & dividends (quartely income) keep the income coming in. If you have ($300,000.) & put that into VHDYX at 3%...
by WanderingDoc
Thu Jul 12, 2018 8:24 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 18161

Re: Direct Real Estate Returns

From a prior post, so I don't have to write it out again: Buy a property at $100K, $20K down. Monthly rents of $900-$950. I personally buy in markets with 6-8% long term appreciation, but lets be very conservative and use the general longer-term real estate appreciation value across the entire U.S....
by WanderingDoc
Thu Jul 12, 2018 6:51 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 18161

Re: Direct Real Estate Returns

From a prior post, so I don't have to write it out again: Buy a property at $100K, $20K down. Monthly rents of $900-$950. I personally buy in markets with 6-8% long term appreciation, but lets be very conservative and use the general longer-term real estate appreciation value across the entire U.S. ...
by WanderingDoc
Thu Jul 12, 2018 12:47 pm
Forum: Investing - Theory, News & General
Topic: Home ownership vs investing -- condos vs renting, etc
Replies: 108
Views: 6263

Re: Home ownership vs investing -- condos vs renting, etc

Buying a home to live in is not an investment. See my signature. Your sage "signature" seems to ignore the impact of an obscure factor called "taxes." I suggest that you and your neighbor in the identical house switch residences and pay rent to each other, which will satisfy both prongs of you two-...
by WanderingDoc
Wed Jul 11, 2018 10:18 pm
Forum: Investing - Theory, News & General
Topic: Home ownership vs investing -- condos vs renting, etc
Replies: 108
Views: 6263

Re: Home ownership vs investing -- condos vs renting, etc

Buying a home to live in is not an investment. See my signature. Your sage "signature" seems to ignore the impact of an obscure factor called "taxes." I suggest that you and your neighbor in the identical house switch residences and pay rent to each other, which will satisfy both prongs of you two-...
by WanderingDoc
Wed Jul 11, 2018 4:56 pm
Forum: Investing - Theory, News & General
Topic: Home ownership vs investing -- condos vs renting, etc
Replies: 108
Views: 6263

Re: Home ownership vs investing -- condos vs renting, etc

Buying a home to live in is not an investment. See my signature.
by WanderingDoc
Wed Jul 11, 2018 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: $13 Million Goal for Early Retirement (am I crazy?)
Replies: 179
Views: 34280

Re: $13 Million Goal for Early Retirement (am I crazy?)

if you live in venezuela, you could turn 1k to 13 mil in weeks. norminal money is just a number. Actually any paper money or stock is just a number. A good measure of wealth is long can your saving can support your lifestyle in a happy, satisfation and healthy way. If you believe this, you can live...
by WanderingDoc
Wed Jul 11, 2018 2:26 am
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 20003

Re: Morningstar: prepare for a lost decade for U.S. stocks

Don't say cap rate. That term has zero value and no use for single family homes/condos, nor 2-4 unit deals.  A correctly calculated cap rate has value for any real estate investment. Cap rate is net of expenses, and you may not know the expected expenses for small properties, hence the difficulty. ...
by WanderingDoc
Wed Jul 11, 2018 2:19 am
Forum: Investing - Help with Personal Investments
Topic: Hyperbitcoinization?
Replies: 14
Views: 1635

Re: Hyperbitcoinization?

gips wrote:
Wed Jul 11, 2018 1:57 am
$60k—who wants to be a billionaire? Seriously, I read an article a while ago by a respected asset mgr who suggested 1% of your portfolio might be appropriate. I decided on .01% and did quite well.
I'm at .02% 8-)
by WanderingDoc
Wed Jul 11, 2018 2:03 am
Forum: Investing - Help with Personal Investments
Topic: Calculating past returns in private real estate fund
Replies: 6
Views: 442

Re: Calculating past returns in private real estate fund

I made an investment in a private real estate fund in 11/2011 before i found bogleheads. the manager of the fund talks of the incredible returns we have seen - (we have gotten our principal back plus a small return) - and I asked how his return compared with the market or just the vanguard REIT (wh...
by WanderingDoc
Mon Jul 09, 2018 9:13 pm
Forum: Investing - Theory, News & General
Topic: 50/50 blend of VWENX+VUSUX provides ridiculous risk adjusted return vs 100% stocks
Replies: 22
Views: 2959

Re: 50/50 blend of VWENX+VUSUX provides ridiculous risk adjusted return vs 100% stocks

So people are double sharing between here and reddit. lol Look. I am 25 years old and i will be investing for the next 40 years more. I don't consider myself to have a risk, as long as US business does not go bankrupt, which will never happen. So I get 1% on stocks over bonds, I'm cool with that fo...
by WanderingDoc
Mon Jul 09, 2018 11:37 am
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 20003

Re: Morningstar: prepare for a lost decade for U.S. stocks

Would it be 10-15% income if everyone tried doing that? I don't understand your question. That is a decent return on cash to aim for Year 1 after purchase of income-producing real estate. Of course, that is not factoring in tax benefits or principal paydown or appreciation. Also not factoring in th...
by WanderingDoc
Mon Jul 09, 2018 11:34 am
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 20003

Re: Morningstar: prepare for a lost decade for U.S. stocks

As an example, a $25K down payment on a $120K property, would yield $2.5K per year - thats your 10% income figure. I guess I would see $2500 per year on a $120,000 property as 2.1%. You are just leveraging that up by borrowing. While the properties may appreciate in value, they may also decline or ...
by WanderingDoc
Sun Jul 08, 2018 10:58 pm
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 20003

Re: Morningstar: prepare for a lost decade for U.S. stocks

Invest in real estate. If your property values go up 10% or go down 10%, you won't care since your 10-15% dividend in the form of rental income flows in like a fine brandy 8-) Would it be 10-15% income if everyone tried doing that? I don't understand your question. That is a decent return on cash t...
by WanderingDoc
Sun Jul 08, 2018 9:34 pm
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 20003

Re: Morningstar: prepare for a lost decade for U.S. stocks

Invest in real estate. If your property values go up 10% or go down 10%, you won't care since your 10-15% dividend in the form of rental income flows in like a fine brandy 8-) Would it be 10-15% income if everyone tried doing that? I don't understand your question. That is a decent return on cash t...
by WanderingDoc
Sun Jul 08, 2018 6:03 pm
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 20003

Re: Morningstar: prepare for a lost decade for U.S. stocks

... Invest in real estate. If your property values go up 10% or go down 10%, you won't care since your 10-15% dividend in the form of rental income flows in like a fine brandy 8-) :D :D :D A 10% cap rate can be hard to find in the majority of markets. There are parts of California where purchasing ...
by WanderingDoc
Sun Jul 08, 2018 3:35 pm
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 20003

Re: Morningstar: prepare for a lost decade for U.S. stocks

“Our expectation at the moment is that you won’t have any real return from U.S. equities over the next 10 years,” said Morningstar’s Dan Kemp at a company event Wednesday in London. In the chart he shared below, the black line is pretty close to zero for American stocks. https://ei.marketwatch.com/...
by WanderingDoc
Wed Jul 04, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin Futures?
Replies: 18
Views: 1436

Re: Bitcoin Futures?

Hello everyone, I wanted to ask everyone's opinion on trading bitcoin futures (which is pretty much using a trading site such a BitMex and predicting whether or not bitcoin will go up or down/longing or shorting. I have a friend who does this for a living and claims to be making a lot of money (alt...
by WanderingDoc
Tue Jul 03, 2018 2:31 am
Forum: Investing - Help with Personal Investments
Topic: Expected returns for 80/20 stock bond for next 10 years.
Replies: 169
Views: 13963

Re: Expected returns for 80/20 stock bond for next 10 years.

HomerJ wrote:
Mon Jul 02, 2018 8:49 pm
masonstone wrote:
Mon Jul 02, 2018 7:24 pm
What’s a reasonable Expected returns for 80/20 stock bond vanguard admiral shares total market for both sides for next 10 years.
Somewhere between 0% and 14%
Could easily be -2% bud.
by WanderingDoc
Mon Jul 02, 2018 10:20 pm
Forum: Investing - Help with Personal Investments
Topic: Why not go 100% stocks?
Replies: 127
Views: 15798

Re: Why not go 100% stocks?

I'm relatively young, 35, and plan to work for the next two decades. I'm in a dual physician household and enjoy working and being productive. I don't really enjoy site-seeing and traveling as much. My household income is approximately 900K with approximately 120K of annual expenses. My question is...
by WanderingDoc
Mon Jul 02, 2018 9:04 pm
Forum: Investing - Theory, News & General
Topic: 28 w/heavy small cap tilt?
Replies: 41
Views: 3470

Re: 28 w/heavy small cap tilt?

You're actually proposing two fairly radical shifts: moving all your equities to a single asset subclass (SCV) AND moving all your fixed income investments to a single asset subclass (intermediate US bonds). I definitely expect that small cap value will produce a premium over the long run, but I wo...
by WanderingDoc
Sat Jun 30, 2018 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 279
Views: 39391

Re: Vanguard Municipal Money Market VMSXX 1.39%

What would you recommend for someone in the 24% federal, 0% state bracket? Prime vs. Muni I think I have a small amount of "cash" in Prime currently, the majority is in a savings account. I have no idea how to determine if more should be in the MM fund vs. savings account. During the past year, the...
by WanderingDoc
Sat Jun 30, 2018 10:01 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 279
Views: 39391

Re: Vanguard Municipal Money Market VMSXX 1.39%

The downswing in the muni MM funds was deeper relative to Prime MM this cycle than last cycle. However, the upswing so far is steeper than the last upswing (as always, the TEYs are for my marginal tax rates of 27% and 8%, no itemizing). https://s26.postimg.cc/87tikxg95/Money_Market_TEYs20180619.png...
by WanderingDoc
Sat Jun 30, 2018 6:48 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey against index funds?
Replies: 57
Views: 6344

Re: Dave Ramsey against index funds?

Wealthy people don't (and have never) listen to Dave Ramsey. They just don't. You cannot become wealthy following his advice. You cannot shrink your way to wealth. Are you talking about Bogleheads now, or Dave Ramsay? If you listen to Dave Ramsay, one of the things he spends the most time talking a...
by WanderingDoc
Sat Jun 30, 2018 4:43 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey against index funds?
Replies: 57
Views: 6344

Re: Dave Ramsey against index funds?

Wealthy people don't (and have never) listen to Dave Ramsey. They just don't. You cannot become wealthy following his advice. You cannot shrink your way to wealth. Are you talking about Bogleheads now, or Dave Ramsay? If you listen to Dave Ramsay, one of the things he spends the most time talking a...
by WanderingDoc
Sat Jun 30, 2018 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: [100% stock, uncomfortable with international]
Replies: 66
Views: 7553

Re: [100% stock, uncomfortable with international]

Once we started having a bad 6 months people are starting to post about jumping ship from international. When we have another good year like 2017 they'll be back. Time in the market is better than timing the market. Are you going to lose sleep if the US stock markets starts to lag International? If...
by WanderingDoc
Sat Jun 30, 2018 1:58 am
Forum: Investing - Help with Personal Investments
Topic: I'm old, sold house and have $800k to invest.
Replies: 9
Views: 2581

Re: I'm old, sold house and have $800k to invest.

Going to clear $800k when I sell my estate and I'm a very young 70 years old, still is 70, ya know. Still ride my horse like the posse chasin' me and sold my rodeo horse two months ago. (Shag Bulls and Bucking Broncs all day). Just not ready for the over 55 community. However, I have solid income o...
by WanderingDoc
Fri Jun 29, 2018 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: [Ally online savings now at 2.20%]
Replies: 283
Views: 47422

Re: ALLY BANK savings account RATE increase 1.75%

vbdoug wrote:
Fri Jun 29, 2018 5:16 pm
PurePoint has been 1.90% for awhile and has a 10k minimum. No fees and no problems so far.
How do you like the interface/service at Purepoint? I hesitate to open yet another bank, yet another username/pw etc. since I just opened my Ally account less than 9 months ago.
by WanderingDoc
Fri Jun 29, 2018 8:58 pm
Forum: Investing - Theory, News & General
Topic: Yes, It’ll Happen - Jonathan Clements
Replies: 33
Views: 7406

Re: Yes, It’ll Happen - Jonathan Clements

Great article. I agree with all except the last bit. I've personally decreased my standard of living on purpose (how much I spend per year) quite a bit, and it's brought me even more happiness. It's nice to know that if I needed to go back to a richer lifestyle, I always can. It's amazing how many ...
by WanderingDoc
Fri Jun 29, 2018 1:52 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey against index funds?
Replies: 57
Views: 6344

Re: Dave Ramsey against index funds?

Wealthy people don't (and have never) listen to Dave Ramsey. They just don't. You cannot become wealthy following his advice. You cannot shrink your way to wealth. If you are earning $3500 per month and saving $0, giving up quality of life by putting cash into envelopes to save you $600 at the end o...
by WanderingDoc
Fri Jun 29, 2018 1:25 am
Forum: Investing - Help with Personal Investments
Topic: Is anyone considering considering traditional to Roth to the top of the 24% bracket ?
Replies: 21
Views: 1963

Re: Is anyone considering considering traditional to Roth to the top of the 24% bracket ?

I'm about in that tax bracket (some tax free income not withstanding) and I opt for half Roth, half traditional in my 401k. Most seem to agree there isn't really a correct answer. All I know is, in the 14% bracket you should probably by all Roth, in the 38% bracket, all traditional.
by WanderingDoc
Thu Jun 28, 2018 6:10 pm
Forum: Investing - Theory, News & General
Topic: Keep calm and Boglehead on!
Replies: 60
Views: 6124

Re: Keep calm and Boglehead on!

Head down, plow ahead. The stock market always goes up. But what if it doesn't? Past performance is not indicative of future results. What if we hit a multi-generation 'plateau', or worse, a historic bear market/recession? Food for thought :beer Then you just keep working and saving. Really? What i...
by WanderingDoc
Thu Jun 28, 2018 6:08 pm
Forum: Investing - Theory, News & General
Topic: Keep calm and Boglehead on!
Replies: 60
Views: 6124

Re: Keep calm and Boglehead on!

If people are anxious about paper assets this year, oh boy they haven't seen anything yet. So far it's been daisies and rainbows imo.
by WanderingDoc
Thu Jun 28, 2018 6:06 pm
Forum: Investing - Theory, News & General
Topic: Yes, It’ll Happen - Jonathan Clements
Replies: 33
Views: 7406

Re: Yes, It’ll Happen - Jonathan Clements

Great article. I agree with all except the last bit. I've personally decreased my standard of living on purpose (how much I spend per year) quite a bit, and it's brought me even more happiness. It's nice to know that if I needed to go back to a richer lifestyle, I always can. It's amazing how many f...
by WanderingDoc
Thu Jun 28, 2018 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

He had amassed close to a million dollars by his 64th birthday around 2008. He had already planned vacation, retirement, spending more time with his family, etc. Let me update you, he lost more than half his portfolio balance by 2009. Don didn't get to retire. He had continued working for another 1...
by WanderingDoc
Thu Jun 28, 2018 11:13 am
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

This reminds of a story I heard from a colleague of mine. He was working with a CT tech (lets call him Don) for 20 years. So Don worked his butt off his entire life, and all he did was talk about the stock markets and the beauty of index fund investing. He was a hard worker too. He had amassed close...
by WanderingDoc
Thu Jun 28, 2018 11:02 am
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

There's nothing wrong with real estate ... But please stop using San Francisco Bay Area examples when you guys have no idea what it's like there. For example, guessing that you can get $8K-$10K/mo rent on a 1.5M house when the real number is $5K-$6K/mo. And stop assuming you COULD have bought back ...
by WanderingDoc
Wed Jun 27, 2018 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

Its just simple math, though. Indexing is fine, its just a 25-30+ year plan. Not everyone wants to be pigeon holed for that long working a job (or jobs) that may be uncertain, or they may not like. People change. Things change. Health changes. What if they want to train for a triathlon, start a bus...
by WanderingDoc
Wed Jun 27, 2018 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

The problem with this debate, which has already been stated, is that it is apples to nuts. The above "80x return > 15x return" is completely missing why *MOST* people buy real estate. That return is purely based on appreciation. Most people buy rental properties for 1) cash flow and 2) have someone...
by WanderingDoc
Tue Jun 26, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

If you had bought in Southern California in 1989, you would in most cases not have seen your house return to the price you bought it at for almost 10 years. Meanwhile, your stock portfolio (S&P500) would have more than tripled. And in the middle of this, around 1992-4, you would be under your origi...
by WanderingDoc
Tue Jun 26, 2018 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

We own some alternative investments as a very modest part of our portfolio, but principally we are a stock and bond type investor. Some of our family members have invested in real estate over the years and been quite successful. I’ve been aware of others who, particularly due to leverage, were flyi...
by WanderingDoc
Tue Jun 26, 2018 1:01 am
Forum: Investing - Theory, News & General
Topic: Still re-balance in TSP/401k if it is split between traditional and Roth?
Replies: 19
Views: 1219

Re: Still re-balance in TSP/401k if it is split between traditional and Roth?

What is your marginal/highest tax rate? If you want to be 70/30, then I would make your mix 70/30 in the TSP/401k. If you change jobs you can roll your 401k to a Rollover IRA (pre-tax part) and to your Roth IRA (Roth part). Until then, I don't think it is worth it to try to bucket inside your 401k....
by WanderingDoc
Tue Jun 26, 2018 12:59 am
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

We own some alternative investments as a very modest part of our portfolio, but principally we are a stock and bond type investor. Some of our family members have invested in real estate over the years and been quite successful. I’ve been aware of others who, particularly due to leverage, were flyi...
by WanderingDoc
Tue Jun 26, 2018 12:49 am
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

If you had bought in Southern California in 1989, you would in most cases not have seen your house return to the price you bought it at for almost 10 years. Meanwhile, your stock portfolio (S&P500) would have more than tripled. And in the middle of this, around 1992-4, you would be under your origi...
by WanderingDoc
Mon Jun 25, 2018 3:18 pm
Forum: Investing - Theory, News & General
Topic: Still re-balance in TSP/401k if it is split between traditional and Roth?
Replies: 19
Views: 1219

Re: Still re-balance in TSP/401k if it is split between traditional and Roth?

What is your marginal/highest tax rate? If you want to be 70/30, then I would make your mix 70/30 in the TSP/401k. If you change jobs you can roll your 401k to a Rollover IRA (pre-tax part) and to your Roth IRA (Roth part). Until then, I don't think it is worth it to try to bucket inside your 401k....
by WanderingDoc
Mon Jun 25, 2018 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

I’m an active real estate investor. Generates nice cash flow, and pays me several different ways (appreciation, debt paydown by tenants, tax writeoff from depreciation, monthly positive cashflow, etc). However, I would advise against investing in the Bay Area. Prices are just way too high , and the...
by WanderingDoc
Mon Jun 25, 2018 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

Same think my mentors were advised in the 1960s, 1970s, 1980s, 1990s, 2000s, and 2010s: "Don't invest in San Diego, San Francisco, San Jose, Honolulu, etc." Guess what? Pick any year or decade until now, those coastal markets have have the BEST RETURNS (cash flow + capital appreciation) in the nati...
by WanderingDoc
Mon Jun 25, 2018 1:23 am
Forum: Investing - Help with Personal Investments
Topic: Stocks vs. rental property
Replies: 101
Views: 11268

Re: Stocks vs. rental property

I’m an active real estate investor. Generates nice cash flow, and pays me several different ways (appreciation, debt paydown by tenants, tax writeoff from depreciation, monthly positive cashflow, etc). However, I would advise against investing in the Bay Area. Prices are just way too high , and the...