Bogleheads.org

Not rejoicing. Not doing anything. Thinking about doing something, but doing nothing is doing something. This is when an allocation of 35/65 floats in the storm like Noah's Ark. Although, the animals are getting pretty upset from the turbulence. Don't just sit there. . . do nothing. j :happy Awesom...

My "rule of thumb" for my 19 year old vehicle is that if the repair expenses are more than one year of car payments, I will get a new vehicle. Over the years, my expenses have not met that criteria, some years there are no expenses other than an oil change, one year I needed a new AC comp...

I'm personally inclined to the second option because: 1) If it's going to be a recession, why enter now? We're certainly not yet at the bottom. 2) If it's going to be bull market again, missing one or two months sounds just fine? What would you recommend? I recommend you invest base on your IPS. 1)...

Rebalance according to your IPS. This depends on what your asset allocation is. If you use the 5% band (and fix income is constant), it takes quite a bit of a drop before you get to the 5% band. Certainly fix income changes so you have to recalulate it accordingly. https://thefinancebuff.com/5-perce...

I was actually thinking of moving 30k from stocks to bonds in taxable and moving 30K from bonds to stocks in retirement. So nothing changes all up / but if things go bad - I’ll have liquidity in taxable... In fact, before stocks went up 30% last year - I moved 30knfe binds to sticks accidentally in...

You wrote: "The goal is to shorten the duration to achieving financial independence (25x of current living expenses" My opinion is base on the above statement. I don't know what vehicles you have right now. If they are mechanically sound, then I would wait out. I am not a math person; but ...

We are requesting help with asset allocation. We are in 40s, planning to work more for 20 -25 years. How about 70/30? You are going to handily win the game so no need to swing for the fence. When you get into your 50s, move toward and AA of 60/40. And move away from individual stock ownership and t...

Unless your risk tolerance base on ability,need, and willingness to take risk have changed; and if so, then the question is why it has changed? ie. life changing events: job loss, divorce, illness, unexpected expense, etc...if those things are the reasons then certainly changing asset allocation wo...

Unless your risk tolerance base on ability,need, and willingness to take risk have changed; and if so, then the question is why it has changed? ie. life changing events: job loss, divorce, illness, unexpected expense, etc...if those things are the reasons then certainly changing asset allocation wou...

Statitically: better to lump sum it. I like statistics on my side. Vanguard looked into this: https://personal.vanguard.com/pdf/ISGDCA.pdf 100% equity: lump sum wins 67% of the time vs. 33% for DCA Saying all this, you lump sum it and market has downturn of 30% in next 2 months for whatever reason; ...

I am staying the course at 55/45. I think those that don’t stay the course really overestimated their risk tolerance. I believe setting appropriate asset allocation in accordance to one’s need, ability, and willingness to take risk is the MOST important aspect of investing. Everything else is just t...

High yield corporate: I kinda look at as a balance fund...Due to taxes, I would not hold it in taxable account. Instead of high yield corporate , I would do VTMFX. Both similar returns the last 10 years . Similar volatility. And since it is in taxable account, VTMFX will probably will have higher re...

congratulations!

If I were you, I will keep the corolla!! Your corolla will last another 120K miles easily if you keep up the maintenance. Cobalt is not a reliable car. Check rating from consumer reports! BTW, if you buy the 12 yrs old cobalt, you probably need to replace the tires, belts, change transmission fluid...

However, I think it is mathematically not possible for > 50% active funds to beat its respective index consistently. Actually, it is mathematically possible for more than half of active funds to beat the market. On average , active funds cannot beat the market, but it is mathematically possible for...

Not crazy ... but you can do: 20% prime money market/savings account and 80% VWINX or VTMFX (depending on ur tax situation)....

but only if I thought the active folks were starting to beat the indexes consistently. Not possible. Active investing is a zero sum game... in order for an active fund to beat the market, another active fund must trail the market. The active funds, on average, will trail the market by their higher ...

I don’t like Dave Ramsey investment advice bc he doesn’t recommend much index funds. But, I do like his recommendation of paying off mortgage. I assume you have a decent emergency fund.

Note close. Pay student loan first . Mathematics don’t lie.

Long time Honda owner thinking about getting a new CRV. Was wondering how a RAV4 would compare especially on price and reliability. Your thoughts? Reliability, it's no contest for 3 reasons - RAV4 wins: 1. RAV4 engine is naturally aspired, vs CRV's turbo (which is causing major issues btw). Per Sco...

I would replace that battery.

If you had the cash all this time and didn’t invest that cash in equity with it, then what changed ? Ie. If it is bc you didn’t know much about investing and now you found the Boglehead way, then certainly you might want to take a chance and use it to invest it with the appropriate asset allocation....

I have seen charts like this many times. American Funds is actually run by a good company and tend to be more conservative. Investors can actually do worse than buying American Funds; ie. buying the hot stock (Valeant when it was trading at $236/share--caused a lot of issues with Sequoia fund (SEQU...

Clarification: I don’t know if SEQUX bought valeant at $236/share or not . What I meant was that many investors bought it at that price . And SEQUX had a large position in Valeant.

I have seen charts like this many times. American Funds is actually run by a good company and tend to be more conservative. Investors can actually do worse than buying American Funds; ie. buying the hot stock (Valeant when it was trading at $236/share--caused a lot of issues with Sequoia fund (SEQUX...

1 year away: I would use 1-year CD: right now at Ally it is 2.70%. At the end of the 1 year term you have about 10 days to decide to cash out or not. Also at that time you can decide to do high yield savings, vanguard prime money market, or another 1 year CD if you deem appropriate. However Vanguard...

I would pay it off. Let's say you didn't buy the truck, and the bank is offering you to borrow money at 3.5% interest rate as personal loan. Would you borrow 58K at 3.49% interest and invest in VTSAX for 5 year? VTSAX is an investment for the long-haul. I don't know if you would come out ahead or no...

I think most people overestimate their risk tolerance. Human behavior reacts quite differently in real life; it doesn't behave like the finance studies. The famous Magellan fund (from 1977-1990) when Peter Lynch was running it returned a whopping 29% annually. However, the average investor in the Ma...

I agree with pay off mortgage (essentially a "reverse bond"). With the standard deduction being $24K for 2018, I am not sure if there is any advantage with the interest deduction on mortgage (I suppose it depends on the rest of your deduction). Then invest the rest base on your risk tolera...

I would keep that mazda tribute. Drive it until you can't anymore or when you think that it is so unreliable it will leave you stranded.