Search found 80 matches

by tdmp
Thu Mar 12, 2020 9:33 am
Forum: Personal Investments
Topic: How many people with 7 figure portfolios are”rejoicing ?”
Replies: 169
Views: 14671

Re: How many people with 7 figure portfolios are”rejoicing ?”

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...
by tdmp
Thu Mar 12, 2020 7:52 am
Forum: Personal Finance (Not Investing)
Topic: How much maintenence expense to ditch an older car?
Replies: 22
Views: 1235

Re: How much maintenence expense to ditch an older car?

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...
by tdmp
Tue Mar 10, 2020 9:38 am
Forum: Personal Investments
Topic: Unsure what to do with my uninvested 401k contributions
Replies: 13
Views: 838

Re: Unsure what to do with my uninvested 401k contributions

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)...
by tdmp
Mon Mar 09, 2020 10:25 am
Forum: Personal Investments
Topic: Good day to buy?!
Replies: 31
Views: 3648

Re: Good day to buy?!

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...
by tdmp
Sun Mar 08, 2020 10:22 pm
Forum: Personal Investments
Topic: Rethinking asset allocation
Replies: 8
Views: 690

Re: Rethinking asset allocation

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...
by tdmp
Sun Mar 08, 2020 8:50 am
Forum: Personal Consumer Issues
Topic: Talk me into or out of a new vehicle purchase
Replies: 30
Views: 2660

Re: Talk me into or out of a new vehicle purchase

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 ...
by tdmp
Sat Mar 07, 2020 11:55 am
Forum: Personal Investments
Topic: Help with AA
Replies: 8
Views: 756

Re: Help with AA

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...
by tdmp
Thu Mar 05, 2020 11:19 am
Forum: Personal Investments
Topic: Invested in 100% Stocks for 401k. Is it time to move those funds to more conservative fund?
Replies: 31
Views: 1525

Re: Invested in 100% Stocks for 401k. Is it time to move those funds to more conservative fund?

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...
by tdmp
Thu Mar 05, 2020 11:17 am
Forum: Personal Investments
Topic: Invested in 100% Stocks for 401k. Is it time to move those funds to more conservative fund?
Replies: 31
Views: 1525

Re: Invested in 100% Stocks for 401k. Is it time to move those funds to more conservative fund?

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...
by tdmp
Mon Mar 02, 2020 9:59 pm
Forum: Personal Investments
Topic: Another Timing Question
Replies: 3
Views: 319

Re: Another Timing Question

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; ...
by tdmp
Sun Mar 01, 2020 12:10 am
Forum: Investing - Theory, News & General
Topic: [Why aren't forum members following the "Stay the course" approach?]
Replies: 379
Views: 27622

Re: [Why aren't forum members following the "Stay the course" approach?]

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...
by tdmp
Thu May 23, 2019 8:00 pm
Forum: Investing - Theory, News & General
Topic: Your Favorite High-Yield Bond Funds?
Replies: 23
Views: 3283

Re: Your Favorite High-Yield Bond Funds?

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...
by tdmp
Thu May 23, 2019 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage almost paid off
Replies: 31
Views: 3689

Re: Mortgage almost paid off

congratulations!
by tdmp
Tue May 21, 2019 6:56 pm
Forum: Personal Consumer Issues
Topic: Unsure of buying used car vs. keeping my current one
Replies: 10
Views: 702

Re: Unsure of buying used car vs. keeping my current one

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...
by tdmp
Tue May 21, 2019 10:39 am
Forum: Investing - Theory, News & General
Topic: Lies, Damned Lies, And Index Funds
Replies: 43
Views: 6312

Re: Lies, Damned Lies, And Index Funds

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...
by tdmp
Mon May 20, 2019 9:11 pm
Forum: Personal Investments
Topic: VASIX or VWINX for emergency savings: crazy?
Replies: 26
Views: 4436

Re: VASIX or VWINX for emergency savings: crazy?

Not crazy ... but you can do: 20% prime money market/savings account and 80% VWINX or VTMFX (depending on ur tax situation)....
by tdmp
Mon May 20, 2019 8:16 pm
Forum: Investing - Theory, News & General
Topic: Lies, Damned Lies, And Index Funds
Replies: 43
Views: 6312

Re: Lies, Damned Lies, And Index Funds

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 ...
by tdmp
Sat May 18, 2019 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Take Loan for house or not
Replies: 12
Views: 1319

Re: Take Loan for house or not

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.
by tdmp
Sat May 18, 2019 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Debt: Student loan or cabin
Replies: 36
Views: 3220

Re: Debt: Student loan or cabin

Note close. Pay student loan first . Mathematics don’t lie.
by tdmp
Thu May 16, 2019 12:01 pm
Forum: Personal Consumer Issues
Topic: Honda CRV or Toyota RAV4 ?
Replies: 98
Views: 11363

Re: Honda CRV or Toyota RAV4 ?

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...
by tdmp
Thu May 16, 2019 11:55 am
Forum: Personal Consumer Issues
Topic: Should I replace Prius Hybrid Battery?
Replies: 44
Views: 4420

Re: Should I replace Prius Hybrid Battery?

I would replace that battery.
by tdmp
Wed May 15, 2019 9:05 pm
Forum: Investing - Theory, News & General
Topic: Invest or Payoff Home
Replies: 38
Views: 3159

Re: Invest or Payoff Home

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....
by tdmp
Fri May 10, 2019 6:46 pm
Forum: Investing - Theory, News & General
Topic: 17 of our 18 equity-focused American Funds have delivered index-beating lifetime results.
Replies: 34
Views: 3335

Re: 17 of our 18 equity-focused American Funds have delivered index-beating lifetime results.

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...
by tdmp
Fri May 10, 2019 6:34 pm
Forum: Investing - Theory, News & General
Topic: 17 of our 18 equity-focused American Funds have delivered index-beating lifetime results.
Replies: 34
Views: 3335

Re: 17 of our 18 equity-focused American Funds have delivered index-beating lifetime results.

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.
by tdmp
Fri May 10, 2019 5:34 pm
Forum: Investing - Theory, News & General
Topic: 17 of our 18 equity-focused American Funds have delivered index-beating lifetime results.
Replies: 34
Views: 3335

Re: 17 of our 18 equity-focused American Funds have delivered index-beating lifetime results.

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...
by tdmp
Mon May 06, 2019 11:04 pm
Forum: Personal Investments
Topic: Best place for savings for a future car purchase
Replies: 5
Views: 991

Re: Best place for savings for a future car purchase

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...
by tdmp
Mon May 06, 2019 12:05 pm
Forum: Personal Consumer Issues
Topic: Car loan dilemma
Replies: 34
Views: 3146

Re: Car loan dilemma

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...
by tdmp
Sat May 04, 2019 3:48 pm
Forum: Personal Investments
Topic: How to decide on asset allocation? Overwhelmed by information online
Replies: 40
Views: 7516

Re: How to decide on asset allocation? Overwhelmed by information online

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...
by tdmp
Wed May 01, 2019 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: What Should We Do With Excess Cash Each Month?
Replies: 17
Views: 2943

Re: What Should We Do With Excess Cash Each Month?

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...
by tdmp
Tue Apr 30, 2019 8:14 am
Forum: Personal Finance (Not Investing)
Topic: Buying a hail-damaged car?
Replies: 42
Views: 2937

Re: Buying a hail-damaged car?

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.