Search found 1759 matches

by bigred77
Wed Jul 26, 2017 11:02 am
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6100

Re: 5% fee per year to buy s&p500 with principle gaurantee

"Standard Techniques" is a subjective term. This practice is certainly not standard around Bogleheads. It's certainly not standard among retail investors. I suppose I would classify it as "relatively easy to understand and implement for experienced investors" at best. Hate havin...
by bigred77
Wed Jul 26, 2017 10:03 am
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6100

Re: 5% fee per year to buy s&p500 with principle gaurantee

It seems to me that many posters on this thread haven't fully understood what the OP proposes to do. Long calls, or protective puts (if one already owns the underlying security), are absolutely standard techniques. Will he beat the market ? Likely not, due to extra transaction costs and, more impor...
by bigred77
Tue Jul 25, 2017 9:45 pm
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6100

Re: 5% fee per year to buy s&p500 with principle gaurantee

Here are the numbers. From Jan., 1972, to June, 2017, the S&P 500 would have taken $10,000 to $823,904. Using the OP's approach, the final balance would be $509,272. Both of these are in nominal dollars. Where such an approach might still be worthwhile is in retirement, when years of negative r...
by bigred77
Tue Jul 25, 2017 9:23 pm
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6100

Re: 5% fee per year to buy s&p500 with principle gaurantee

Here are the numbers. From Jan., 1972, to June, 2017, the S&P 500 would have taken $10,000 to $823,904. Using the OP's approach, the final balance would be $509,272. Both of these are in nominal dollars. Where such an approach might still be worthwhile is in retirement, when years of negative r...
by bigred77
Tue Jul 25, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Returning to College - Looking for Financing Advice
Replies: 21
Views: 1390

Re: Returning to College - Looking for Financing Advice

Its been a few years but when I was in grad school the only difference between subsidized federal loans and unsubsidized federal loans was that subsidized loans did not incur interest while you were enrolled at least half time. Unsubsidized federal loans were still offered at the same interest rate...
by bigred77
Tue Jul 25, 2017 4:03 pm
Forum: Investing - Theory, News & General
Topic: BASE INVESTMENT or What Your Ruler
Replies: 14
Views: 827

Re: BASE INVESTMENT or What Your Ruler

I don't really have a comparative index for my portfolio but If I had to pick one it would be Vanguard LifeStrategy Growth. My opinion is your benchmark should be something of comparable risk and makeup. Comparing cash to the S&P500 isn't something I'd be interested in doing. Comparing online sa...
by bigred77
Tue Jul 25, 2017 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Returning to College - Looking for Financing Advice
Replies: 21
Views: 1390

Re: Returning to College - Looking for Financing Advice

How much is the tuition/fee/book cost? Can you cash flow half of that number? 3/4? Taking on a little bit of debt for grad school is fine and NYC (and their schools) costs a ton. I would try awfully hard to cash flow AT LEAST 50% of this thing and pay back the remaining 50% 2-3 years after the prog...
by bigred77
Tue Jul 25, 2017 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Returning to College - Looking for Financing Advice
Replies: 21
Views: 1390

Re: Returning to College - Looking for Financing Advice

How much is the tuition/fee/book cost? Can you cash flow half of that number? 3/4? Taking on a little bit of debt for grad school is fine and NYC (and their schools) costs a ton. I would try awfully hard to cash flow AT LEAST 50% of this thing and pay back the remaining 50% 2-3 years after the progr...
by bigred77
Tue Jul 25, 2017 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Investing Education and Mansplaining
Replies: 128
Views: 8010

Re: Investing Education and Mansplaining

Sounds like a market opportunity IMHO…  If someone can successfully package Jack Bogle's advice for millennials… (VICE, BuzzFeed) it would be a huge hit. I feel like Mr. Money Moustache (blog) or Rachel Cruze (Dave Ramsey's daughter) are tackling some of the lifestyle/thrift aspects of it but we ha...
by bigred77
Tue Jul 25, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Investing Education and Mansplaining
Replies: 128
Views: 8010

Re: Investing Education and Mansplaining

I don't know, I have been "quantsplained" here many times by people who believe investing is an engineering problem or a math equation. Don't get me wrong, the math is helpful and vital, but it has limitations, mostly due to irrational humans and their behavior in the investment markets. ...
by bigred77
Tue Jul 25, 2017 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Low risk return over 2.8%? Suggestions?
Replies: 18
Views: 1835

Re: Low risk return over 2.8%? Suggestions?

Just wanted to point out if your goal is to beat a 2.8% after tax effective interest rate, you need to get risk free returns of 2.8% AFTER tax. So any interest income or short term gains need to beat your before tax 4.15% interest rate. 2.8% would be your hurdle rate for Muni funds (ignoring any sta...
by bigred77
Tue Jul 25, 2017 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Financial Characteristics of Physicians
Replies: 24
Views: 2184

Re: Financial Characteristics of Physicians

I just think with doctors there are 2 big challenges facing them these days: Student Loan Debt Not making that large salary until their 30s. With those 2 things working against them (plus their tax burden once that large salary kicks in), yes they do have to allocate a larger percentage of their inc...
by bigred77
Mon Jul 24, 2017 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement withdrawals and the impact on your portfolio
Replies: 4
Views: 575

Re: Retirement withdrawals and the impact on your portfolio

If you started retirement 10 years ago with a balanced AA (60/40 or 50/50) and followed the 4% rule you have more money today then when you started (nominally at least) and 10 less years of living expenses to fund.
by bigred77
Mon Jul 24, 2017 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Pay yourself first.
Replies: 43
Views: 3841

Re: Pay yourself first.

I do this and think it has helped me, especially at the beginning, and don't foresee changing my strategy. I have my paycheck split up into a bunch of accounts (I'm sure I annoy my HR group a little bit) so before a dime of my paycheck ever hits an account with debit card access or check writing pri...
by bigred77
Mon Jul 24, 2017 1:49 pm
Forum: Investing - Theory, News & General
Topic: John Bogle Has Been Right About Investing In International Stocks
Replies: 505
Views: 31752

Re: John Bogle Has Been Right About Investing In International Stocks

Numbers don't lie, and they trump speculation, theories, and philosophical discussions. Why is that so hard to accept? I detect an element of defensiveness among many who hold significant percentages of international holdings. Attacking Bogle or Taylor is blaming the messenger. Past performance IS ...
by bigred77
Mon Jul 24, 2017 1:30 pm
Forum: Investing - Theory, News & General
Topic: Living Off Dividends
Replies: 285
Views: 21256

Re: Living Off Dividends

The reason to hold bonds is to stabilize the portfolio. A 100% stock portfolio may drop 50% in a crash. If the investor would have no feelings about that, there is no problem as long as the dividends continue on. But it would be a rare investor who would have no feelings about that. And you cannot ...
by bigred77
Mon Jul 24, 2017 1:21 pm
Forum: Investing - Theory, News & General
Topic: Living Off Dividends
Replies: 285
Views: 21256

Re: Living Off Dividends

The reason to hold bonds is to stabilize the portfolio. A 100% stock portfolio may drop 50% in a crash. If the investor would have no feelings about that, there is no problem as long as the dividends continue on. But it would be a rare investor who would have no feelings about that. And you cannot ...
by bigred77
Mon Jul 24, 2017 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Order of Operations (Retirement, Loans, Emergency Fund)
Replies: 25
Views: 1490

Re: Order of Operations (Retirement, Loans, Emergency Fund)

Honestly there's so much that can change from person to person (federal taxes, state taxes, goals, time frame, risk tolerance, job security, family backstop, income trajectory, marriage, kids, cost of living, I could go on and on) that I would advise anyone who asked for advice to post their situati...
by bigred77
Mon Jul 24, 2017 11:55 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Target 2055 Fund vs 3-Fund Portfolio?
Replies: 12
Views: 719

Re: Vanguard Target 2055 Fund vs 3-Fund Portfolio?

My opinion is if you are considering a 3 fund portfolio or a target date fund, assuming you have access to good, low cost, index based target date funds in your workplace accounts that look pretty similar to Vanguard's or Fidelity's offerings: Stick with the target date funds unless (or until) you a...
by bigred77
Mon Jul 24, 2017 8:51 am
Forum: Investing - Theory, News & General
Topic: John Bogle Has Been Right About Investing In International Stocks
Replies: 505
Views: 31752

Re: John Bogle Has Been Right About Investing In International Stocks

I really don't think many people read the article. Quoting from it: "Another bias is the belief that because a bet has paid off in one period it will pay in others. Bogle has apparently been promoting his preference for U.S. stocks since 1993. Reflecting on the period since then, he says “I was...
by bigred77
Sun Jul 23, 2017 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: Investing Education and Mansplaining
Replies: 128
Views: 8010

Re: Investing Education and Mansplaining

Seeing mansplaining debated on Bogleheads is better than I could have ever hoped for :D
by bigred77
Sun Jul 23, 2017 12:32 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: REITs Aren't Special
Replies: 106
Views: 8394

Re: Larry Swedroe: REITs Aren't Special

At the end of the day, I want to put my money into ownership stakes of business, loan money to a variety of entities, and own Real Estate. If not REITs, how does one passively invest in Real Estate? If you own Total Stock Market, you own REIT's. The question is, do you want to overweight REIT's by ...
by bigred77
Fri Jul 21, 2017 11:17 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: REITs Aren't Special
Replies: 106
Views: 8394

Re: Larry Swedroe: REITs Aren't Special

Are SCV and LT Corp Bonds distinct asset classes or are they part of larger distinct asset class (equities and fixed income)? If SCV is distinct then REITs are DEFINITELY distinct in my mind. They weren't arguing that SCV and LT Corp. bonds are distinct asset classes. Rather, they were arguing that...
by bigred77
Fri Jul 21, 2017 11:07 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: REITs Aren't Special
Replies: 106
Views: 8394

Re: Larry Swedroe: REITs Aren't Special

If not REITs, how does one passively invest in Real Estate? You can't--at least not easily--and that includes REITs. REITs are to real estate what banks are to fixed income--they are in the business, but buying those stocks is not the same thing as engaging in the underlying activities (renting pro...
by bigred77
Fri Jul 21, 2017 10:54 pm
Forum: Personal Consumer Issues
Topic: Anyone else extremely frugal?
Replies: 100
Views: 8337

Re: Anyone else extremely frugal?

I am not frugal. I save 1/4 to 1/3 of my income and spend the rest as efficiently as possible (by efficient I mean I spend in ways that bring me the most happiness). It helps that I make enough where I don't have to be frugal but life is too short. If our income doubled, our spending would double (o...
by bigred77
Fri Jul 21, 2017 10:42 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: REITs Aren't Special
Replies: 106
Views: 8394

Re: Larry Swedroe: REITs Aren't Special

This is one of the few articles of Larrys that I really don't buy. There's an awful lot of data mining and subjective definitions going on there IMO. Are SCV and LT Corp Bonds distinct asset classes or are they part of larger distinct asset class (equities and fixed income)? If SCV is distinct then ...
by bigred77
Fri Jul 21, 2017 11:57 am
Forum: Investing - Theory, News & General
Topic: Do you find financial advisors to be all that bright?
Replies: 53
Views: 4937

Re: Do you find financial advisors to be all that bright?

I agree with the above. Most financial advisers, irrespective of firm, are salespeople first and foremost.

Consider yourself lucky to have had such intellectual stimulation at work prior to retiring. I doubt that's the norm.
by bigred77
Fri Jul 21, 2017 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Saving for college for a family member
Replies: 10
Views: 563

Re: Saving for college for a family member

You said your 29 and still have your own student loans to pay off. I think it's noble what your proposing but I think you may be better off giving a one time gift and focus on your own finances so early on in life. Maybe a trade off could be to research and show the new parents how to set up a 529 a...
by bigred77
Fri Jul 21, 2017 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Is it still worth buying a house in a state with insane property taxes
Replies: 96
Views: 9244

Re: Is it still worth buying a house in a state with insane property taxes

Try living in Texas where property taxes in Dallas are 2.75% of "assessed" value, which is pretty much pulled out of thin air but always increases by mid to high single digits every year. What are you complaining for? Only 2.75%? That's nothing. I'm sitting at 3.1% here south of Houston.....
by bigred77
Thu Jul 20, 2017 4:30 pm
Forum: Investing - Theory, News & General
Topic: % bogleheads of overall population
Replies: 82
Views: 10490

Re: % bogleheads of overall population

How is the data obtained? I understand that getting household income from tax database is easy but how do they obtain the net worth information? I do not believe one in every ten household across the entire united states has net worth of over $1M excluding equity in their primary residence (another...
by bigred77
Thu Jul 20, 2017 4:23 pm
Forum: Personal Consumer Issues
Topic: Homeowners Insurance Claim - Contents - Item Replacement
Replies: 8
Views: 416

Re: Homeowners Insurance Claim - Contents - Item Replacement

Wife's view: While not illegal, it makes her feel "skeezy" to be taking the money for a replacement TV and not replacing the TV just because we were able to have the old one repaired. She feels like the intended purpose for the money was to go to making us whole and to replace the 1-mo ol...
by bigred77
Thu Jul 20, 2017 3:12 pm
Forum: Personal Consumer Issues
Topic: SAT scores - whats the point??
Replies: 37
Views: 1945

Re: SAT scores - whats the point??

Because top Tech, Finance, Engineering, etc. firms who hire graduates want to only hire the best and brightest that they can. An easy way for them to do that is just piggy back off the elite colleges and universities filtering processes. SAT and GPA being the first hurdle of many in order to gain ad...
by bigred77
Thu Jul 20, 2017 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Can anyone convince me I need international stock in my portfolio?
Replies: 162
Views: 8415

Re: Can anyone convince me I need international stock in my portfolio?

I hold International at basically it's market weight. I hold it for diversification. I hold it because I believe in MPT. I hold it because I believe in efficient markets (overall). I hold it because I don't want to succumb to home country bias. I hold it because I have no reason to speculate that th...
by bigred77
Wed Jul 19, 2017 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Those Of You In a HCOLA - What's Your Financial Plan
Replies: 68
Views: 6994

Re: Those Of You In a HCOLA - What's Your Financial Plan

I think the big thing to me in HCOL locations (while young) is that you just have to accept you likely can't buy a dream house in your 20s (or maybe even 30s) unless you have family help or hit a lottery ticket (equity compensation, huge bonus, etc.) Not that you can't live in a nice place, just tha...
by bigred77
Wed Jul 19, 2017 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Newbie and New Parent: Help w/ Retirement and 529
Replies: 65
Views: 4395

Re: Newbie and New Parent: Help w/ Retirement and 529

I just read that a child with a college savings account (dedicated to him/her) is seven times more likely to attend college than one without. m While we Bogleheads might talk about the theory of investing, we as parents want the best for our children. If we see college as part of path that we hope ...
by bigred77
Tue Jul 18, 2017 5:51 pm
Forum: Investing - Theory, News & General
Topic: Cash out refinance residence to invest?
Replies: 11
Views: 936

Re: Cash out refinance residence to invest?

https://www.bogleheads.org/forum/viewtopic.php?t=5934 The market timer thread is a classic. Incredibly informative. Great read for all investors. But I don't think it's directly comparable to what the OP is about. Market Timer did not use low cost, fixed rate, tax deductible, non-callable leverage ...
by bigred77
Tue Jul 18, 2017 5:44 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 120
Views: 6660

Re: The Quest for Perfection

The assumed holding period is ultra-long-term, say, 40+ years. It is assumed that the investor is a US investor in a moderate, say, 25%, tax bracket. However, I feel that Total World should work for anywhere. Goals are (in order of importance) 1. High expected total return over many decades 2. Not ...
by bigred77
Tue Jul 18, 2017 5:24 pm
Forum: Investing - Theory, News & General
Topic: Cash out refinance residence to invest?
Replies: 11
Views: 936

Re: Cash out refinance residence to invest?

You won't get a lot of support for this but I would probably consider it personally in very specific circumstances. Like if I was still early in my career and I could borrow a sum significant when compared to my existing portfolio at low, tax deductible rates with no call risk or interest rate risk ...
by bigred77
Tue Jul 18, 2017 5:15 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 120
Views: 6660

Re: The Quest for Perfection

I have been trying to figure out what a theoretically ideal/perfect hypothetical portfolio might be. You'd be much better off long-term if you just stuck to the 6 asset sub-classes in your avatar image. Believe me, 30 years down the road, when your mental faculties start to slow down, and you've go...
by bigred77
Tue Jul 18, 2017 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Rates in 3 years?
Replies: 26
Views: 2457

Re: Mortgage Rates in 3 years?

What does she expect to make income wise? That's the biggest driver.

If it's just your income, I'd say you probably ought to keep the house prices under 250k. I doubt that goes very far in Boston.
by bigred77
Tue Jul 18, 2017 3:40 pm
Forum: Investing - Theory, News & General
Topic: The Quest for Perfection
Replies: 120
Views: 6660

Re: The Quest for Perfection

My counter to you is that why is what you proposed "better" than sticking everything in 1 position: Vanguard LifeStrategy Growth. I know for a fact my strategy would be easier to implement, monitor, require less time tweaking, encounter lower costs, and need far less transactions to mainta...
by bigred77
Mon Jul 17, 2017 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Is it still worth buying a house in a state with insane property taxes
Replies: 96
Views: 9244

Re: Is it still worth buying a house in a state with insane property taxes

As someone whose property taxes have now exceeded 5 figures per year myself, it's not very fun. But I knew what those taxes would be when I bought the property. It's just the cost of doing business. If I didn't want to pay those taxes I had 3 options: buy a smaller property, buy somewhere else, or r...
by bigred77
Mon Jul 17, 2017 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4999

Re: When to max out 401k (Aspiring Early Retiree)

Instead of trying to plan out the next 23 years of your life I would just try to focus on the stuff you can control today: 1.) max out your 401k with 18k in employee contributions per year. Do this every year. 2.) max out a Roth IRA with a 5.5k contribution per year. Do this every year. 3.) Plan out...
by bigred77
Mon Jul 17, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: What advice to give 21 year old?
Replies: 105
Views: 6068

Re: What advice to give 21 year old?

My advice is simply to make a career in the space where you get paid based on 2 and 20 and then invest your personal assets in a boglehead portfolio :D
by bigred77
Mon Jul 17, 2017 1:16 pm
Forum: Investing - Theory, News & General
Topic: Do you pay fees to buy funds or ETFs?
Replies: 46
Views: 2917

Re: Do you pay fees to buy funds or ETFs?

I use a number of Vanguard ETFs within the Fidelity 401k brokerage option, so I pay probably 30 bucks or so a year when i rebalance using these ETFs. I could probably find suitable fee-free Fidelity alternatives but I've just stuck with the current plan. It adds less than 1 basis point per year to m...
by bigred77
Mon Jul 17, 2017 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie and New Parent: Help w/ Retirement and 529
Replies: 65
Views: 4395

Re: Newbie and New Parent: Help w/ Retirement and 529

Sounds like the target date retirement funds might be a good choice for you. You can pick one (maybe 2050) and just put all your investments into that (both traditional and Roth accounts). Step one would be to max out the 401k and both Roth IRA's if possible. Can you save that much? Those should be ...
by bigred77
Fri Jul 14, 2017 9:57 pm
Forum: Investing - Theory, News & General
Topic: How are folks handling the unprecedented rise in the market ?
Replies: 166
Views: 17832

Re: How are folks handling the unprecedented rise in the market ?

I guess I just can't relate... The stock market is up. It's supposed to go up over time. That's why we all put money into it. Since the turn of the century the S&P500 is up less than 3% real. Over the past 10 years we're up 5.5% real. The market has not been so great as to cause me angst. It nee...
by bigred77
Thu Jul 13, 2017 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of Oil/Gas Royalty
Replies: 21
Views: 1006

Re: Sale of Oil/Gas Royalty

When you file your Schedule E, are you taking a depletion allowance? If so, that might affect your cost basis in the underlying interest, but I don't know the intricacies of whether it actually does or how to account for it. Out of 12 wells, it seems that 7 were producing when inherited, and 5 came...
by bigred77
Thu Jul 13, 2017 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of Oil/Gas Royalty
Replies: 21
Views: 1006

Re: Sale of Oil/Gas Royalty

Well if you sell for more than your cost basis, you will have long term capital gains. If it was producing when you inherited it, and if that was oh 3-10 years ago, I doubt you have a capital gain. Prices were much better back then. In fact, I assume an accountant worth their salt could help you sho...
by bigred77
Thu Jul 13, 2017 12:52 pm
Forum: Personal Consumer Issues
Topic: Hotel tipping: how much to leave?
Replies: 72
Views: 3891

Re: Hotel tipping: how much to leave?

I know many people do, but I don't tip housekeeping at hotels. Not at a low end motel and not at the Four Seasons. I will tip the guy who brings my luggage up to the room and the I will tip whoever brings my food if I order room service. No deep reasoning behind this, just the routine I've gotten in...