With everything you listed, I don't see why it would make much financial sense to move there. If you or your spouse has family, friends, or attachment to the area, then that may make up for some of the financial decline you will take by moving there.
While Illinois, Cook County, and nearly every local government is struggling financially with our pension time bomb, NY and NJ are in somewhat similar circumstances. I'd stay here if your happy!
A fellow Chicagoan
Search found 151 matches
- Wed Apr 19, 2017 8:13 am
- Forum: Personal Finance (Not Investing)
- Topic: Moving from Chicago NW suburbs to NJ/NY area
- Replies: 31
- Views: 4314
- Mon Apr 17, 2017 8:49 am
- Forum: Personal Finance (Not Investing)
- Topic: How Easy is an Obamacare Tax Penalty Exemption?
- Replies: 18
- Views: 2382
Re: How Easy is an Obamacare Tax Penalty Exemption?
The "you experienced domestic violence" exemption is the easiest one to qualify for. All you have to do is claim it, and they will approve it. They are not allowed under the law to ask any further questions.
- Mon Apr 10, 2017 1:55 pm
- Forum: Personal Investments
- Topic: Buying CD through brokerage
- Replies: 17
- Views: 3519
Re: Buying CD through brokerage
The CD idea is good, especially if you are getting 2.55% for 5 years. I looked on Duscover's website, where is this listed?
- Fri Apr 07, 2017 11:07 am
- Forum: Investing - Theory, News & General
- Topic: State Farm 5 year CD at 2.30% - any hesitation in investing with them?
- Replies: 11
- Views: 3588
Re: State Farm 5 year CD at 2.30% - any hesitation in investing with them?
Capital One online bank is also offering a 5 year cd at 2.30%. It's early withdrawal penalty is 6 months.
https://www.capitalone.com/cds/online-cds/
https://www.capitalone.com/cds/online-cds/
- Thu Apr 06, 2017 12:46 pm
- Forum: Investing - Theory, News & General
- Topic: Which Larry Portfolio variation would you choose?
- Replies: 31
- Views: 5744
Re: Which Larry Portfolio variation would you choose?
I'd go with version number 1 since it raises annual returns without being even 1/2 a point more volatile in std deviation. That said, it depends on what your overall bond percentage would have been if you were just doing a normal total stock market vs total bond percentage. I'm in the process of switching to a Larry Portfolio version of 2% large cap blend (I'm stuck with this as my only good option in my HSA), 43% Small cap value, 35% total emerging market and 20% intermediate treasuries. The reason I can be this aggressive is because I would likely be 100% stocks (60% s&p 500 & 40% total international) otherwise. The Larry portfolio allows you to be more aggressive with your stocks since you are adding a larger number of very safe ...
- Sat Apr 01, 2017 5:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: When do you plan to die?
- Replies: 164
- Views: 19221
Re: Planning to Die
Congratulations and thank you Taylor for all you have done helping others with their financial planning! I wish you continued health and wellness for another 25 years!Taylor Larimore wrote:I once felt the same but I am VERY glad that I planned to live longer.You have to plan with something and I just don't see the point of planning with 100 or anything close. In the long-run we are all dead. I picked 80 for both spouse and I - I don't think either of us will get to that age.
Best wishes.
Taylor (age 93)
- Thu Mar 30, 2017 3:56 pm
- Forum: Personal Finance (Not Investing)
- Topic: When do you plan to die?
- Replies: 164
- Views: 19221
Re: When do you plan to die?
To be honest, I do not plan on dying. With advancements in science, biogenics, saving your brain & memory to the cloud, along with freezing your body, if I come close to death, I'll invest in these technologies so that when they find my cure, I'll be brought back to life.
If for some reason I'm wrong, livingto100.com says I will live until I'm 97 with my current lifestyle at age 30. My withdrawal rate in retirement will be low enough that my investments should help pay for a comfortable living and provide for portfolio growth.
If for some reason I'm wrong, livingto100.com says I will live until I'm 97 with my current lifestyle at age 30. My withdrawal rate in retirement will be low enough that my investments should help pay for a comfortable living and provide for portfolio growth.
- Thu Mar 23, 2017 10:32 pm
- Forum: Investing - Theory, News & General
- Topic: Blog on emerging Markets, and investors underweighting them
- Replies: 103
- Views: 30344
Re: Blog on emerging Markets, and investors underweighting them
If you don't mind me asking, what part is extreme? The 35% emerging market tilt? If I were to split it into 18% emerging market IEMG and 17% intl small value DLS, would I really get a whole lot more diversification? According to portfoliovisualizer.com, these stocks have a .81 correlation over the last 120 trading days.larryswedroe wrote:Mike
That's even a bit extreme for me. I'd split the EM into ISV and EM, but DFA might be only real way to do that.
Larry
- Thu Mar 23, 2017 11:00 am
- Forum: Investing - Theory, News & General
- Topic: Blog on emerging Markets, and investors underweighting them
- Replies: 103
- Views: 30344
Re: Blog on emerging Markets, and investors underweighting them
Theoretical,
According to portfoliocharts.com, that 3 fund portfolio has less volatility than a 100% large cap blend fund. Is it really that bad for a 30 year old? I'd rather not add additional emerging market or small international funds to the portfolio because it adds complexity or the expected returns based on previous data shows lower returns (intl small).
Random Walker,
Same as above, I didn't add intl small because it has lower expected returns. Iemg already has some mid and small caps in them.
According to portfoliocharts.com, that 3 fund portfolio has less volatility than a 100% large cap blend fund. Is it really that bad for a 30 year old? I'd rather not add additional emerging market or small international funds to the portfolio because it adds complexity or the expected returns based on previous data shows lower returns (intl small).
Random Walker,
Same as above, I didn't add intl small because it has lower expected returns. Iemg already has some mid and small caps in them.
- Thu Mar 23, 2017 10:12 am
- Forum: Investing - Theory, News & General
- Topic: Blog on emerging Markets, and investors underweighting them
- Replies: 103
- Views: 30344
Re: Blog on emerging Markets, and investors underweighting them
Larry, Thank You so much for this article!!! I read all of your articles at etf.com. Since you posted expected forward returns for US stocks and emerging markets, could you also post expected returns for small cap stocks, small cap value, international developed and Reits? Paul Merriman and yourself have changed my investing life so much since last September when I started reading your stuff! I cannot thank you enough. Because of all that I have learned from you, I have even decided to make a portfolio hybrid from your Larry portfolio. I am making the transition to 45% small cap value IJS 35% emerging markets IEMG 20% Intermediate Treasuries FIBAX or IEF This allows me to get a nearly 1% annual return increase and 2% less in volatility comp...
- Wed Mar 22, 2017 8:08 am
- Forum: Investing - Theory, News & General
- Topic: Motif Investing Implementation of Ultimate Buy and Hold
- Replies: 34
- Views: 7161
Re: Motif Investing Implementation of Ultimate Buy and Hold
Paul,
Thank you for all that you have done in helping those who were getting fleeced by high cost advisory and investment services. Without a doubt, your articles on small cap value have changed my life with regards to my own asset allocation and how I can achieve financial freedom far earlier than I ever would have. If my business goes as planned, I want to start a $3000 investment account for my future children because of your advice on how this amount can compound into an extraordinary portfolio for their retirement.
Thank you for all that you have done in helping those who were getting fleeced by high cost advisory and investment services. Without a doubt, your articles on small cap value have changed my life with regards to my own asset allocation and how I can achieve financial freedom far earlier than I ever would have. If my business goes as planned, I want to start a $3000 investment account for my future children because of your advice on how this amount can compound into an extraordinary portfolio for their retirement.
- Tue Mar 21, 2017 5:12 pm
- Forum: Personal Consumer Issues
- Topic: Debating a weekend in Chicago (south side)
- Replies: 54
- Views: 7157
Re: Debating a weekend in Chicago (south side)
I second those that are recommending the Do Division street fest (the talent of women that are there is AMAZING). Also, eat at some West Loop restaurants as that has probably the best restaurant scene in the country outside of NYC. If it's raining check out the Lagunitas brewery or the art institute of Chicago. If it's hot out and you want to act like college kids go to North avenue beach. And if you haven't tried it already, seriously go on an architecture tour of the Chicago river and Lake Michigan an hour before sunset (make sure it's not going to rain during this time). If you want a cool casual, but fun dancing bar to meet women check out InnJoy bar. If you want a more clubby outdoor rooftop scene go to Joy District or the Godfrey hote...
- Wed Mar 08, 2017 9:52 am
- Forum: Investing - Theory, News & General
- Topic: 2016 Relative Tax Efficiency
- Replies: 57
- Views: 27459
Re: 2016 Relative Tax Efficiency
Any chance you could add IEI and IEF? I plan to use these in a modified 3 fund / Larry portfolio hybrid! Thank you so much for your contribution to this forum!!
- Tue Mar 07, 2017 11:29 pm
- Forum: Personal Finance (Not Investing)
- Topic: Get $250 from Wells Fargo
- Replies: 83
- Views: 20675
Re: Get $250 from Wells Fargo
I got my bonus within a week of using the debit card 10 times. I withdrew as much as I could from the account via an ATM. I then called them up to cancel the account and the minute amount of money left in the account is being sent to me by WF in the form of a check. This was well worth my 60 minutes of overall work.
- Wed Mar 01, 2017 12:10 pm
- Forum: Investing - Theory, News & General
- Topic: Fidelity offers buy outs to reduce workforce
- Replies: 26
- Views: 5245
Re: Fidelity offers buy outs to reduce workforce
Every company wants to get rid of the older people. At least that is strongly the case in every one I'm familiar with directly or indirectly through friends. Be aware of this if you are over 35 and thinking of jumping ship. That is the important actionable lesson here. I like Fidelity a lot and have most of my money there but I wish they would have a cheap Balanced Index fund like Vanguard's VBIAX. I wish Fidelity would just keep their excellent online services and get rid of their fancy brick-and-mortar offices all over the place which and put the savings back in even lower fees (even though their fees are very low to begin with and basically on par with Vanguard; that's why I like them). I can say one of the deciding factors for me to go...
- Mon Feb 27, 2017 10:01 am
- Forum: Personal Investments
- Topic: Thoughts on allocation in my slice and dice portfolio?
- Replies: 4
- Views: 904
Re: Thoughts on allocation in my slice and dice portfolio?
The portfolio looks fine, except for I do not see the point of having 10% VOO when you already have 35% VTI. They are practically the same product and will perform nearly identical. I'd say throw the 10% VOO into VB or VTI for simplicity's sake.
Additionally, I'd tilt toward VBR (small cap value) rather than small cap blend.
Additionally, I'd tilt toward VBR (small cap value) rather than small cap blend.
- Tue Feb 14, 2017 1:52 pm
- Forum: Investing - Theory, News & General
- Topic: Fresh Look at the "Larry Portfolio" from Portfolio Charts
- Replies: 125
- Views: 28621
Re: Fresh Look at the "Larry Portfolio" from Portfolio Charts
Yes, Tyler! I've even tweeted you a question about your site before. I actually prefer it over portfolio visualizer and I used your site to backtest my modified riskier version of Larry's portfolio. I'm thinking of calling it the Saint Swedroe portfolio :) Ah -- I missed that you already mentioned using PC. My bad. I'm glad you find it useful! FWIW, I think it's telling that a lot of the conversations on page 2 (US vs. International, LCB vs SCV, etc) utilize competing data calculated over different timeframes. Single averages and charts with a single line hide a lot of information, and it's easy to get lost in the weeds and lose sight of the big picture. Try studying the same issues using tools like this , and maybe you'll gain a new persp...
- Tue Feb 14, 2017 11:35 am
- Forum: Investing - Theory, News & General
- Topic: Fresh Look at the "Larry Portfolio" from Portfolio Charts
- Replies: 125
- Views: 28621
Re: Fresh Look at the "Larry Portfolio" from Portfolio Charts
What website / tool are you using to see the worst individual year possible? That statistic is certainly helpful when building or changing asset allocations. I'd also recommend the website mentioned in the OP. (It's my site, so I admit I'm biased ;)). It includes a collection of calculators that display all possible investing timeframes simultaneously, saving you a lot of effort running multiple calculations and helping you see past start date bias. This one is particularly useful for studying historical drawdowns: https://portfoliocharts.com/portfolio/drawdowns/ Yes, Tyler! I've even tweeted you a question about your site before. I actually prefer it over portfolio visualizer and I used your site to backtest my modified riskier version of...
- Tue Feb 14, 2017 10:39 am
- Forum: Personal Investments
- Topic: Switching portfolio - 3-fund with slight tilt to Larry Porfolio
- Replies: 16
- Views: 2548
Re: Switching portfolio - 3-fund with slight tilt to Larry Porfolio
I'm discussing this same type of strategy in a different post. My idea was to go 45% US small cap value (IJS or VBR), 35% emerging market (VWO or IEMG), and 20% intermediate term treasury FIBAX (I'm at fidelity). With regular 5/25 rebalancing bands, I think this can be an aggressive portfolio that cuts down on the big fat tail risk. That said it's worst year was -30% so use more treasuries if you want to reduce that.
Any reason why you would use long term treasuries over short or intermediate?
Any reason why you would use long term treasuries over short or intermediate?
- Tue Feb 14, 2017 10:28 am
- Forum: Investing - Theory, News & General
- Topic: Fresh Look at the "Larry Portfolio" from Portfolio Charts
- Replies: 125
- Views: 28621
Re: Fresh Look at the "Larry Portfolio" from Portfolio Charts
Has anyone thought of doing a portfolio for long term growth similar to Larry's portfolio? The idea that came to my head was using 45% US small cap value, 35% emerging markets, and 20% intermediate term treasuries. This allows us to have a good portion of both the small and value factors, while also having a decent amount of international, large, and blend stocks that will do well in a weak dollar environment. Throw in the bedrock of stable assets, intermediate term treasuries that we can use to rebalance in the 5/25 bands, and we have a very aggressive portfolio that has less volatility than the slice and dice portfolios of Merriman or the TSM. I'm seriously considering dropping my complex portfolio for the simplicity of this one. If you ...
- Tue Feb 14, 2017 10:24 am
- Forum: Investing - Theory, News & General
- Topic: Fresh Look at the "Larry Portfolio" from Portfolio Charts
- Replies: 125
- Views: 28621
Re: Fresh Look at the "Larry Portfolio" from Portfolio Charts
Pretty much. I saw that intermediate term treasuries outperformed total bond market during the 2007-early 2009 period significantly. Additionally, I have read numerous posts from Larry on Bogleheads and from his website contributions on etf.com. Using this asset class along with the more risky, but potential rewarding stock classes have me thinking it is much simpler with better results than a standard 80/20 tilt.betablocker wrote:Did you look at just replicating the LP with higher equities at the same percentages of total and lower bonds: something like 40% scv, 30% isv, 10% emv, and 20% treasuries?
- Tue Feb 14, 2017 9:49 am
- Forum: Investing - Theory, News & General
- Topic: Fresh Look at the "Larry Portfolio" from Portfolio Charts
- Replies: 125
- Views: 28621
Re: Fresh Look at the "Larry Portfolio" from Portfolio Charts
Has anyone thought of doing a portfolio for long term growth similar to Larry's portfolio? The idea that came to my head was using 45% US small cap value, 35% emerging markets, and 20% intermediate term treasuries. This allows us to have a good portion of both the small and value factors, while also having a decent amount of international, large, and blend stocks that will do well in a weak dollar environment. Throw in the bedrock of stable assets, intermediate term treasuries that we can use to rebalance in the 5/25 bands, and we have a very aggressive portfolio that has less volatility than the slice and dice portfolios of Merriman or the TSM. I'm seriously considering dropping my complex portfolio for the simplicity of this one. If you b...
- Fri Feb 10, 2017 4:45 pm
- Forum: US Chapters
- Topic: Chicagoland Master Thread
- Replies: 47
- Views: 19959
Re: Chicagoland Master Thread
I am very interested in a meeting. I am flexible with meeting in the city or the suburbs. I would prefer a weekend morning date.
Subjects I would like to discuss are what to do if a large portion of your portfolio is a taxable account and how to generate a return on money that you plan to use to buy a house in the intermediate term (3-7 years).
Subjects I would like to discuss are what to do if a large portion of your portfolio is a taxable account and how to generate a return on money that you plan to use to buy a house in the intermediate term (3-7 years).
- Sat Feb 04, 2017 1:19 pm
- Forum: Investing - Theory, News & General
- Topic: Anyone have a tilt portfolio similar to this
- Replies: 22
- Views: 3498
Re: Anyone have a tilt portfolio similar to this
I am in the process of doing something very similar to you. For my equity allocation (80% of all funds, 15% bonds, 5% cash being used to get sign up checking and savings bonuses, which is similar to being a bond), I am going to be 25% large cap blend, 25% small cap value (IJS S&P 600), 10% US REIT, 20% Small Cap Developed Intl (SCZ), and 20% emerging market (VWO). I disagree with others that are saying 40% intl is too much simply because the us market cap is only 52% of the entire world stock market, and because the US dollar has been strong over the last few years, which has eaten into intl returns. Furthermore, Vanguard itself recommends 40% intl allocation. If the dollar weakens, intl will likely outperform the US market. Additionall...
- Mon Jan 30, 2017 9:13 pm
- Forum: Personal Investments
- Topic: Suggested Funds/ETFs for Small Cap & EM Tilt
- Replies: 11
- Views: 1976
Re: Suggested Funds/ETFs for Small Cap & EM Tilt
As others have stated, I would go with IJS and IEMG for small cap value US and Emerging Markets. In fact, I own these two as well since I'm at fidelity. I have decided to do something similar to you. I've gone 4 ways with my equity portion. IJS, IEMG, SCZ (small cap international), and IVV (S&P 500) in equal portions.
- Sat Jan 28, 2017 11:00 pm
- Forum: Investing - Theory, News & General
- Topic: International small cap value ETF
- Replies: 54
- Views: 21042
Re: International small cap value ETF
As others have brought up, have you thought of a combo of either DLS or SCZ and VWO? This allows you to get a small cap portion of the portfolio, along with an emerging market factor. DLS or SCZ is your international developed markets small cap, and VWO is your large cap Emerging Market. This way you cover all four portions of the international stock market. Large, small, developed, and emerging. I'm currently in the process of getting to half VWO and half SCZ/DLS. I think this is plenty of diversification.
- Tue Jan 24, 2017 1:45 pm
- Forum: Investing - Theory, News & General
- Topic: Swedroe's guidelines to Bonds
- Replies: 137
- Views: 19647
Re: Swedroe's guidelines to Bonds
Larry and lack_ey,
Thank you for the informative responses. I currently have my bond portion of my portfolio in taxable since I plan to buy a home in 5 years or so. Because of it being in taxable, I bought a bond etf instead of an index fund since bogleheads guide to investing says etf's are more tax efficient. Both of you suggest bond etf's are bad. Should I buy the equivalent index fund instead and why?
Thank you for the informative responses. I currently have my bond portion of my portfolio in taxable since I plan to buy a home in 5 years or so. Because of it being in taxable, I bought a bond etf instead of an index fund since bogleheads guide to investing says etf's are more tax efficient. Both of you suggest bond etf's are bad. Should I buy the equivalent index fund instead and why?
- Tue Jan 24, 2017 11:23 am
- Forum: Investing - Theory, News & General
- Topic: Swedroe's guidelines to Bonds
- Replies: 137
- Views: 19647
Re: Swedroe's guidelines to Bonds
Larry
Piggybacking on Sid's question above, are etf's such as IUSB, AGG, GVI, and MUB appropriate risk for the reward they give you?
Piggybacking on Sid's question above, are etf's such as IUSB, AGG, GVI, and MUB appropriate risk for the reward they give you?
- Mon Jan 09, 2017 1:05 pm
- Forum: Investing - Theory, News & General
- Topic: Optum HSA
- Replies: 11
- Views: 1987
Re: Optum HSA
I'm in the same boat as you and am invested in their large cap generic Wells Fargo fund WFIOX with a .25% expense ratio. While not competitive with Vanguard, Fidelity, or Schwab it still isn't a bad choice. I'll keep it with Optum since our current monthly fee structure is so low / non-existent.
- Tue Oct 25, 2016 8:07 am
- Forum: Personal Finance (Not Investing)
- Topic: 2017 ACA plan previews
- Replies: 172
- Views: 24522
Re: 2017 ACA plan previews
Data point: 30 year old male, single, no tobacco use or children. The cheapest bronze plan available with an HSA eligible account has a monthly deductible of $246.64, a deductible of $5500, and an out of pocket max of $6550. So nothing is really covered for the first $9510. That doesn't seem like health insurance. It seems more like fraud or paycheck theft.
- Mon Oct 24, 2016 12:33 pm
- Forum: Investing - Theory, News & General
- Topic: Larry Swedroe's latest market returns forecast
- Replies: 380
- Views: 58192
Re: Larry Swedroe's latest market returns forecast
I, and I suspect many others here, are concerned with actual returns on my actual money. I care very little about academic formulas that ignore dozens of real world variables. Unfortunately, people on these boards are making real life decisions that will affect their real life finances based on a very simple academic formula that you keep promoting, even though the most basis assumption of all (unchanged valuations going forward) is demonstrably false. +1 Thanks HomerJ And here I thought I was the only "foolish" one here that believed that. The real world sure is different from that portrayed by the ivory tower back testing number crunchers. I'll take the academic formula and an accomplished economic researcher vs the unknown val...
- Fri Oct 21, 2016 2:15 am
- Forum: Investing - Theory, News & General
- Topic: Larry Swedroe's latest market returns forecast
- Replies: 380
- Views: 58192
Re: Larry Swedroe's latest market returns forecast
I don't think it is mentioned in this specific article, but when Larry previously gave the expected return for the S&P 500 of 4.1%, it was for the next decade, not for the next 30 years. That said, if a 4.1% annual S&P 500 return does happen over 10 years, that certainly would be a blow for many a retirement and pension funds.
- Fri Oct 21, 2016 1:46 am
- Forum: Personal Investments
- Topic: Retirement plan/portfolio checkup
- Replies: 17
- Views: 2246
Re: Retirement plan/portfolio checkup
If you plan on keeping the 60k for a house downpayment in cash, I would recommend putting it in an online high yield savings like Synchrony Bank which offers 1.05%.
- Fri Oct 21, 2016 1:26 am
- Forum: Investing - Theory, News & General
- Topic: Larry Swedroe's latest market returns forecast
- Replies: 380
- Views: 58192
Larry Swedroe's latest market returns forecast
"Many investors are questioning the benefits of international diversification at a time when U.S. equity valuations are now quite a bit higher than international valuations. And because current valuations are the best predictor we have of future returns, international investments now have higher expected returns. At the end of September 2016, the Shiller CAPE 10 ratio for the S&P 500, which uses the last 10 years' earnings (adjusted for inflation), produced an earnings yield (or E/P, the inverse of the P/E ratio) of about 3.7%. To adjust for the fact that real earnings grow over time, and for the fact that we are looking at earnings on average five years old, we need to multiply the earnings yield by 1.1, producing a new earnings y...
- Thu Oct 20, 2016 10:13 pm
- Forum: Investing - Theory, News & General
- Topic: diversification across risky assets requires discipline and patience
- Replies: 12
- Views: 2137
Larry Swedroe latest market return expectation
"At the end of September 2016, the Shiller CAPE 10 ratio for the S&P 500, which uses the last 10 years' earnings (adjusted for inflation), produced an earnings yield (or E/P, the inverse of the P/E ratio) of about 3.7%. To adjust for the fact that real earnings grow over time, and for the fact that we are looking at earnings on average five years old, we need to multiply the earnings yield by 1.1, producing a new earnings yield, and a forecast of expected real return, of about 4.1% for the S&P 500. The CAPE 10 ratio for the MSCI EAFE Index produces an earnings yield of about 6.7%, resulting in an expected real return for the stocks in that index of about 7.4%. And the CAPE 10 ratio for the MSCI Emerging Markets Index produces a...
- Tue Sep 06, 2016 10:59 pm
- Forum: Investing - Theory, News & General
- Topic: Bogle stock valuation model
- Replies: 13
- Views: 2843
Re: Bogle stock valuation model
Beliavsky Incorrect in your assumptions. My forecast always assume no change in the "speculative return". So my assumption of expected returns to US stocks is a mean of about 4.1 percent in real terms. Much lower than for international stocks and emerging market stocks. But that is only the mean of a wide dispersion of potential outcomes that should be considered, as opposed to treating it as a point estimate. Larry Larry, Thank you for your enormous contributions to this site and through your work writing articles on various websites that I read each week like clockwork. Paul Merriman and you have changed my life financially so much, that you're on my Financial Mount Rushmore Hall of Fame! Is there a website or link that has you...
- Wed Aug 24, 2016 8:36 pm
- Forum: Personal Investments
- Topic: Feedback on Portfolio AA
- Replies: 10
- Views: 1052
Re: Feedback on Portfolio AA
Portfolio looks great to me as long as you are comfortable with it! Your future self will appreciate the small value tilt and 100% stock allocation as long as you stick through with it through the thick and thin.
- Wed Aug 10, 2016 10:18 am
- Forum: Personal Investments
- Topic: Early 20s seeking Aggressive Portfolio
- Replies: 21
- Views: 2697
Re: Early 20s seeking Aggressive Portfolio
A simplified version of a diversified, all stock portfolio, similar in results to Paul Merriman's ultimate buy and hold portfolio that tilts towards small cap and value stock is the "Trev H portfolio". The Trev H portfolio is a four fund portfolio that is 25% Large Blend Domestic, 25% Small Value domestic, 25% international Large Value and 25% international small blend. Here is the post explaining it.
viewtopic.php?t=38374
viewtopic.php?t=38374
- Tue Aug 09, 2016 8:27 pm
- Forum: Personal Investments
- Topic: Early 20s seeking Aggressive Portfolio
- Replies: 21
- Views: 2697
Re: Early 20s seeking Aggressive Portfolio
If youre willing to take on the extra risk and volatility that comes with an aggressive portfolio, may I suggest that you tilt towards small cap, value, and emerging markets. These portions of the market have, over the long term, achieved greater gains than the rest of the market. That said, past performance does not indicate future returns. I'm a huge fan of Paul Merriman's ultimate buy and hold portfolio.
http://paulmerriman.com/ultimate-buy-ho ... tegy-2016/
http://paulmerriman.com/ultimate-buy-ho ... tegy-2016/
- Fri Jul 22, 2016 9:04 am
- Forum: Personal Finance (Not Investing)
- Topic: How many folks choose to give inheritance to their children in unequal portions?
- Replies: 202
- Views: 30945
Re: How many folks choose to give inheritance to their children in unequal portions?
I would be incredibly bitter with a sibling if they were to receive more money than me in an inheritance, simply because they are irresponsible with their finances. If the children are all adults, they should be expected to make adult decisions with their finances. If they cannot handle such a basic task, then no matter how much money you give them, all of the money will be blown away in a short period of time. Do not sow the seeds of resentment between your children after you pass away. If there is a physical or mental health reason to leave a child extra money for health care reasons, then that is understandable.
- Fri Jul 15, 2016 10:47 pm
- Forum: Personal Finance (Not Investing)
- Topic: Sell Condo to pay off Student Loans?
- Replies: 117
- Views: 9562
Re: Sell Condo to pay off Student Loans?
I would not sell. I would refinance the mortgage to a lower rate since you can get a 15 year fixed for something near or below 3%. This may end up being less than your current mortgage payment since it would be a much lower rate. If you can lower your rate on the student loan, do that as well. Then just keep plugging away. You've made great progress so far! Don't give up on yourself!
- Thu Jul 14, 2016 1:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: What's Your Credit Card Rewards Strategy?
- Replies: 7203
- Views: 1421813
Re: What's Your Credit Card Rewards Strategy?
My strategy is to get as much cash back as possible and use it to pay the balance. Right now in my wallet I have
Sallie Mae MasterCard: 5% cash back on bookstores up to $750 a month (Amazon.com included), gas & groceries up to $250 a month each.
Chase freedom: 5% cash back at restaurants 1% everything else
MLB banks of America cash rewards: spend 500$ get 200$ statement credit.
Not in my wallet
Discover it: 5% cash back at home improvement and Amazon.com this quarter
Capital One Quicksilver: linked to my uber account since every 10th ride is free. I strategically use the 10th free ride on long trips. Approximately 20-30% off uber if used correctly.
Otherwise, I am constantly signing up for new cards to collect signup bonuses.
Sallie Mae MasterCard: 5% cash back on bookstores up to $750 a month (Amazon.com included), gas & groceries up to $250 a month each.
Chase freedom: 5% cash back at restaurants 1% everything else
MLB banks of America cash rewards: spend 500$ get 200$ statement credit.
Not in my wallet
Discover it: 5% cash back at home improvement and Amazon.com this quarter
Capital One Quicksilver: linked to my uber account since every 10th ride is free. I strategically use the 10th free ride on long trips. Approximately 20-30% off uber if used correctly.
Otherwise, I am constantly signing up for new cards to collect signup bonuses.
- Wed Jul 13, 2016 8:40 am
- Forum: Personal Consumer Issues
- Topic: Do you tip Uber drivers?
- Replies: 49
- Views: 15195
Re: Do you tip Uber drivers?
My friends and I have been using Uber and Lyft for 2 years now. One of our friends drives for both of them. None of us ever tip the drivers and my buddy who drives rarely ever gets tipped.
- Tue Jul 05, 2016 11:10 pm
- Forum: Personal Consumer Issues
- Topic: Anyone Else Purchase a "Killer Jeep"?
- Replies: 30
- Views: 5700
Re: Anyone Else Purchase a "Killer Jeep"?
I also have a 2015 Grand Cherokee and love the car. I get an easy 24 mpg every tank, if not better. While I can see how some terrible drivers would get this confused, I would only consider it to be a problem for someone who is drunk. That said, uber and lyft have solved that problem for us.
TL;DR I learned how to use the shifter during the first time I used the car.
TL;DR I learned how to use the shifter during the first time I used the car.
- Mon Jul 04, 2016 9:01 pm
- Forum: Personal Finance (Not Investing)
- Topic: Bmo Harris $500 bonus
- Replies: 7
- Views: 2929
Re: Bmo Harris $500 bonus
So your offer says put 10k in their money market account and you get a $200 bonus after a few months? That seems like a really good deal. How did you get the offer? I already have their checking account for the signup bonus but would love to put money into the money market offer. Do you live in the Chicago area? Bmo has quite a large presence here so maybe I can just go into their branch and ask them for the offer.
- Sat Jul 02, 2016 9:57 am
- Forum: Personal Consumer Issues
- Topic: What kind of car are you driving?
- Replies: 368
- Views: 46036
Re: What kind of car are you driving?
2015 Jeep Grand Cherokee 4x4 Laredo 23E package. Got it with tax title and license (which adds thousands more on to the car in IL) for 32k all in. I get about 24mpg becuase I am almost always using cruise control which is a life saver when it comes to boosting mpg. Paid it off within my first 6 months of ownership. I absolutely love the car.
- Thu Jun 23, 2016 9:20 am
- Forum: Personal Finance (Not Investing)
- Topic: Sell Condo or Become Landlord in Chicago
- Replies: 15
- Views: 2665
Re: Sell Condo or Become Landlord in Chicago
Sell, Sell, Sell!!! (Jim Cramer voice) I own a condo in Chicago and am selling it on July 1st. I am going back to renting. It is also in a hot neighborhood (Fulton River District). I'll net close to 85k in profit from only 3 years of ownership. The reason why I'm not holding onto it in hopes of more price appreciation is Chicago's fiscal situation is a NIGHTMARE! The first property tax increase will come in the mail in a week or so. Then there will be smaller increases for the next two years. That property tax increase only fixed the police and fire pension. The municipal employees and teachers union pensions are still underfunded by billions of dollars. CPS is a train wreck and the state isn't in a hurry to help out. Additionally, I think ...
- Mon Jun 13, 2016 7:19 pm
- Forum: Personal Investments
- Topic: HSA- how much do you actually invest?
- Replies: 42
- Views: 7079
Re: HSA- how much do you actually invest?
It depends on your health situation and needs. I'm fairly lucky and do not have any health problems as of today. As a result, I have the absolute minimum in the cash portion and the rest invested in an S and P index fund.
- Thu Jun 09, 2016 3:09 pm
- Forum: Personal Finance (Not Investing)
- Topic: Selling to rent, where to put cash?
- Replies: 17
- Views: 3396
Re: Selling to rent, where to put cash?
Max your Roth out for sure. You can probably do better with regards to the savings rate than discover bank. I want to say theirs is .95% whereas all America bank is 1.25% up to $35k.
- Wed Jun 08, 2016 9:58 pm
- Forum: Personal Finance (Not Investing)
- Topic: Selling to rent, where to put cash?
- Replies: 17
- Views: 3396
Re: Selling to rent, where to put cash?
This was an incredibly helpful question that you asked! I'm in the same situation. I'm turning 30, selling my condo, and choosing to rent for the time being. I'm getting my down payment and quite a bit in profit since I bought in early 2013. My thinking is to put 15k in a Chase savings account with the $200 sign up bonus if you leave it in there for 3 months (about a 1.3% return in 3 months = 5.3% annually roughly. Did I do that math right?) I'm going to put another 15k in a Citi checking account with their $400 sign up bonus if you leave it in there for 4 months (2.67% return in 4 months = 8% annually). Once the bonuses are paid out, I'll switch it to All America mega account at 1.25% interest. I'll max my retirement account this year and ...