Search found 1869 matches

by bigred77
Mon Jul 31, 2017 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Should we increase our retirement savings rate?
Replies: 35
Views: 2873

Re: Should we increase our retirement savings rate?

Do you have any aspiration at all to retire earlier than 55? If so, then I would say it's virtually impossible to over save for retirement, because more money means retire even earlier. If I want to retire under 55, I need to set aside in taxable, as I won't be able to use retirement money before 5...
by bigred77
Mon Jul 31, 2017 8:45 am
Forum: Personal Finance (Not Investing)
Topic: How to calculate your retirement number
Replies: 95
Views: 9109

Re: How to calculate your retirement number

If I hit 33x expenses, I'd retire at any age. If I hit 25x expenses, I'd retire if I was over 50. If I hit 20x residual expenses after SS and/or pensions, I'd retire if I was over 60. We always wonder about the 25x calculation. Is that based on years? If our generation has FRA set at 67, does one s...
by bigred77
Sun Jul 30, 2017 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate your retirement number
Replies: 95
Views: 9109

Re: How to calculate your retirement number

If I hit 33x expenses, I'd retire at any age.
If I hit 25x expenses, I'd retire if I was over 50.
If I hit 20x residual expenses after SS and/or pensions, I'd retire if I was over 60.
by bigred77
Fri Jul 28, 2017 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate: gross or net?
Replies: 56
Views: 3387

Re: Savings rate: gross or net?

I've always assumed gross income was the denominator. I thought this stemmed from general advice, which assumed new investors would start with their 401k first and foremost. If you want to save 15%, sign up for a 15% election to your 401k. That election is going to be based off of gross income. I th...
by bigred77
Thu Jul 27, 2017 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Expected rate of return
Replies: 26
Views: 1941

Re: Expected rate of return

When I play round with projections, I use 5% real as my baseline and I have a 75/25 portfolio. If you are using 5% nominal that's conservative over 30 years. If your projections show you'll be in good shape with that return then I would consider yourself good to go. If your projections say you will ...
by bigred77
Thu Jul 27, 2017 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Why are they beating S/P? What am I missing?
Replies: 72
Views: 4569

Re: Why are they beating S/P? What am I missing?

That's a pretty impressive performance. I would naturally be skeptical but it no doubt could be real.

Do you know what the beginning balance was? Were there any contributions or withdrawals over this time period? If not the balance should almost 6.5 times bigger than it was 19 years ago.
by bigred77
Wed Jul 26, 2017 8:44 pm
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6389

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

I'm not claiming that bogleheads are the most sophisticated investors around, but if you could point me in the direction of a strategy that provides better risk adjusted returns than a boglehead strategy with academic research supporting it, I certainly like to review it. The Put-Write strategy has...
by bigred77
Wed Jul 26, 2017 4:41 pm
Forum: Personal Consumer Issues
Topic: From Chi-Midway: Taxi, Uber, Lyft, or other?
Replies: 26
Views: 2164

Re: From Chi-Midway: Taxi, Uber, Lyft, or other?

White Coat Investor wrote:I prefer Uber to a taxi, but not by much. Honestly, I view them as very close to equivalent. I mean, what's the difference, a functional app? Seems like yellow cab or whoever could bridge that gap.
In my city cabs are close to 2X the price of Uber or Lyft. It's the $$$$
by bigred77
Wed Jul 26, 2017 12:01 pm
Forum: Investing - Theory, News & General
Topic: Time, not material goods, 'raises happiness'
Replies: 38
Views: 4313

Re: Time, not material goods, 'raises happiness'

I googled local housecleaning services after reading this. I can afford it and it's past time. :oops: It will change your life (especially if you hate cleaning like I do). Beware: After you've had this service for a little while, it tends to get moved from a "nice to have" to a "must have" :D I don...
by bigred77
Wed Jul 26, 2017 11:49 am
Forum: Investing - Theory, News & General
Topic: VNQ allocation [Vanguard REIT Index]
Replies: 20
Views: 1464

Re: VNQ allocation

If your reason is "I saw this included in some allocation guidelines" I would say don't do anything. You need to really understand WHY it's recommending REIT holdings over and above what's included in a broad market index. If you agree with the reasoning, understand that asset class can be extremely...
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: 6389

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 having to break it to you...
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: 6389

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: 6389

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 retur...
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: 6389

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 retur...
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: 1488

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: 905

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 saving...
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: 1488

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: 1488

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: 8700

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: 8700

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. Can't tell...
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: 1929

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: 2296

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: 700

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: 4129

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: 33899

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: 22563

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: 22563

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: 1621

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: 871

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: 33899

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 righ...
by bigred77
Sun Jul 23, 2017 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: Investing Education and Mansplaining
Replies: 128
Views: 8700

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: 9023

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: 9023

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: 9023

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: 8888

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: 9023

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: 5181

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: 620

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: 9772

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... Move 30 ...
by bigred77
Thu Jul 20, 2017 4:30 pm
Forum: Investing - Theory, News & General
Topic: % bogleheads of overall population
Replies: 82
Views: 10954

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: 455

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 old TV. She ...
by bigred77
Thu Jul 20, 2017 3:12 pm
Forum: Personal Consumer Issues
Topic: SAT scores - whats the point??
Replies: 37
Views: 2067

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: 9098

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: 7333

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: 4723

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. http://www.chartingyourfinancialfuture.com/financial-planning/10-ways-to-encourage-your-child-to-go-to-college/ While we Bogleheads might talk about the theo...
by bigred77
Tue Jul 18, 2017 5:51 pm
Forum: Investing - Theory, News & General
Topic: Cash out refinance residence to invest?
Replies: 11
Views: 1004

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: 7166

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: 1004

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: 7166

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. :wink: Believe me, 30 years down the road, when your mental faculties start to slow down, and yo...
by bigred77
Tue Jul 18, 2017 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Rates in 3 years?
Replies: 26
Views: 2598

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.