Search found 1321 matches

by momar
Sat Jul 06, 2013 11:10 am
Forum: Personal Finance (Not Investing)
Topic: 25 year old and home purchase
Replies: 14
Views: 2317

Re: 25 year old and home purchase

Without knowing more details, taking out a mortgage to get a bigger place when you don't already have a mortgage or rent would be a big mistake. Unless you need it because you are going to be co-habiting with someone, have kids, or are in a seedy neighborhood (probably other justifications I left ou...
by momar
Thu Jul 04, 2013 8:26 am
Forum: Personal Consumer Issues
Topic: finance vs cash for car; TLH vs LTCG ?
Replies: 21
Views: 2048

Re: finance vs cash for car; TLH vs LTCG ?

Been thinking... So sounds like my 3 main options are: 1. Don't touch any investments, just save my unused monthy income paying regular fed (39% marginal) / state (9.3% marginal) taxes & buy it outright. 2. Finance it at 1-3%, leverage my monthly income in taxable investments, assuming the gain...
by momar
Wed Jul 03, 2013 10:46 pm
Forum: Investing - Theory, News & General
Topic: Mutual Funds: Why The Fantastic First Year?
Replies: 6
Views: 1250

Re: Mutual Funds: Why The Fantastic First Year?

You might never find anything about this, because you are probably imagining it.
by momar
Tue Jul 02, 2013 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Merchant costs on 2% cash back cards
Replies: 125
Views: 28740

Re: Merchant costs on 2% cash back cards

Fidelity also recoups some money since the vast majority of people using this card have the money deposited into a Fidelity account. If I give you 2% cash back, but then you take that cash back and buy and hold a mutual fund that I charge you 1% per year for 30-50 years, who wins? OK, so that is a h...
by momar
Tue Jul 02, 2013 9:07 am
Forum: Investing - Theory, News & General
Topic: Too few asset classes?
Replies: 10
Views: 1994

Re: Too few asset classes?

Why limit yourself to 7 assett classes? Why not 10? 15? 100? Especially when we get to define what an assett class is.

"Small cap emerging market value insurance stocks when combined with large blend Euro tech stocks provide maximum diversification"
by momar
Mon Jul 01, 2013 8:22 pm
Forum: Investing - Theory, News & General
Topic: Active beats passive in 7 year "bet" (again)
Replies: 51
Views: 5184

Re: Active beats passive in 7 year "bet" (again)

As for the bet, let's get two things straight. First, I recommend to pretty much everyone who asks to buy a Target Fund. Since I oversee a 401(k) plan, I am pimping index funds like Super Fly. Second, if any adviser I hired put Windsor II in my portfolio, I'd fire them. I can screw around with mone...
by momar
Mon Jul 01, 2013 2:56 pm
Forum: Investing - Theory, News & General
Topic: Emergency fund contradiction
Replies: 44
Views: 4377

Re: Emergency fund contradiction

The point of keeping your emergency fund liquid isn't to avoid selling, it is to ensure that your emergency fund is big enough and won't suddenly shrink to less than your needs. Presumably for many on this forum, their taxable account is many times larger than their emergency fund. Yes. And this is...
by momar
Mon Jul 01, 2013 2:49 pm
Forum: Investing - Theory, News & General
Topic: Emergency fund contradiction
Replies: 44
Views: 4377

Re: Emergency fund contradiction

The point of keeping your emergency fund liquid isn't to avoid selling, it is to ensure that your emergency fund is big enough and won't suddenly shrink to less than your needs.
by momar
Mon Jul 01, 2013 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Exchange to Admiral shares in taxable account: Owe taxes?
Replies: 10
Views: 1698

Re: Exchange to Admiral shares in taxable account: Owe taxes

Don't exchange the shares. Once you have 10K, you can convert the shares to admiral.
by momar
Mon Jul 01, 2013 11:48 am
Forum: Investing - Theory, News & General
Topic: Active beats passive in 7 year "bet" (again)
Replies: 51
Views: 5184

Re: Active beats passive in 7 year "bet" (again)

Fees aren't the only cost.
by momar
Mon Jul 01, 2013 10:42 am
Forum: Investing - Theory, News & General
Topic: Active beats passive in 7 year "bet" (again)
Replies: 51
Views: 5184

Re: Active beats passive in 7 year "bet" (again)

I enjoy these posts by Petrocelli because they perfectly illustrate that what matters is cost. On average, passive vs active does not matter otherwise. Many don't seem to entirely grasp this.
by momar
Mon Jul 01, 2013 10:34 am
Forum: Personal Consumer Issues
Topic: Car recommendations for a growing active family
Replies: 19
Views: 2991

Re: Car recommendations for a growing active family

I just got a new Mazda CX-5. Really nice.
by momar
Sun Jun 30, 2013 4:25 pm
Forum: Personal Investments
Topic: "The Markets" as a % of your overall investment portfolio?
Replies: 17
Views: 2182

Re: "The Markets" as a % of your overall investment portfoli

By owning the market, I also own stakes in REITs, all real estate owned by every public company, and all commodity ownership and production by every public company. Plus all that fantastic artwork you see in the foyers of MegaCorps everywhere.
by momar
Sun Jun 30, 2013 4:23 pm
Forum: Investing - Theory, News & General
Topic: Liquidity as factor
Replies: 20
Views: 2447

Re: Liquidity as factor

So I fess up. My portfolio has attempted to capture most of these premiums. Pretty much I have diversified not only across asset classes but also investment styles. Though when you run this portfolio through Morningstar, it tilts towards value and a tilts a bit more than that to small and mid cap s...
by momar
Sun Jun 30, 2013 1:11 pm
Forum: Investing - Theory, News & General
Topic: Liquidity as factor
Replies: 20
Views: 2447

Re: Liquidity as factor

Gosh, I see a bit of cognitive dissonance on this forum. I am suffering from a bit of it myself. First, we are told that market returns are random and that indexing is the way to go. The slicers and dicers come along and convince me of the small cap and value premium. Larry Swedroe comes along and ...
by momar
Sun Jun 30, 2013 10:52 am
Forum: Investing - Theory, News & General
Topic: Seth Godin "Thinking About Money"
Replies: 3
Views: 1160

Re: Seth Godin "Thinking About Money"

ObliviousInvestor wrote:
Money spent on one thing is still the same as money spent on something else. A $500 needless fee on a million-dollar mortgage closing is just as much money as a $500 tip at McDonalds.
This is a good one, and something I have to remind myself of whenever I am making a purchase.
by momar
Sun Jun 30, 2013 9:57 am
Forum: Investing - Theory, News & General
Topic: My Take on Gold
Replies: 213
Views: 26298

Re: My Take on Gold

How on earth are you people giving gold a "fair value" of 600$ when marginal production costs are above 1200$? What fraction of the world gold supply is produced each year? Does gold mined hundred or thousands of years ago degrade? Demand for physical is not exactly drying up, quite the c...
by momar
Sat Jun 29, 2013 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Found a $20 bill on ground, and it did indeed exist
Replies: 17
Views: 1818

Re: Found a $20 bill on ground, and it did indeed exist

It's like anything else, you need leverage to make real money. Put up the capital to hire a team of guys to scour the city. Pay them an hourly wage.
by momar
Sat Jun 29, 2013 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Would you buy this house?
Replies: 26
Views: 2891

Re: Would you buy this house?

Do you anticipate needing the space the au pair will occupy once your kid is in school? Or is it just going to be extra space that you are paying for and don't really need? You will be paying for that space for as long as you live in the house (property taxes when the mortgage is gone). You also hav...
by momar
Sat Jun 29, 2013 10:33 am
Forum: Investing - Theory, News & General
Topic: What do you wish you had learned sooner?
Replies: 104
Views: 17983

Re: What do you wish you had learned sooner?

Geometric vs arithmetic average returns
by momar
Fri Jun 28, 2013 3:41 pm
Forum: Investing - Theory, News & General
Topic: My Take on Gold
Replies: 213
Views: 26298

Re: My Take on Gold

How on earth are you people giving gold a "fair value" of 600$ when marginal production costs are above 1200$? What fraction of the world gold supply is produced each year? Does gold mined hundred or thousands of years ago degrade? Demand for physical is not exactly drying up, quite the c...
by momar
Fri Jun 28, 2013 12:28 pm
Forum: Investing - Theory, News & General
Topic: My Take on Gold
Replies: 213
Views: 26298

Re: My Take on Gold

dnaumov wrote:How on earth are you people giving gold a "fair value" of 600$ when marginal production costs are above 1200$?
What fraction of the world gold supply is produced each year? Does gold mined hundred or thousands of years ago degrade?
by momar
Fri Jun 28, 2013 1:02 am
Forum: Personal Investments
Topic: Buying physical gold
Replies: 53
Views: 8793

Re: Buying physical gold

You might find it easier to stock up on bespoke suits, which don't trade at prices other than spot and can be exchanged for 1 oz of gold.
by momar
Fri Jun 28, 2013 12:54 am
Forum: Investing - Theory, News & General
Topic: My Take on Gold
Replies: 213
Views: 26298

Re: My Take on Gold

Gold is really like buying a foreign currency to a country that is guarenteed to have no inflation or interest and therefore maintains price-parity from year to year. I call it goldland. Matt Bouchard No it isn't. Why do you say that? The price of gold in actual purchasing power parity terms jumps ...
by momar
Thu Jun 27, 2013 2:51 pm
Forum: Personal Investments
Topic: Do market crashes affect different age groups differently?
Replies: 16
Views: 1657

Re: Do market crashes affect different age groups differentl

gerrym51 wrote:a market crash affects you far more if your a 60 year old rather than a 30 year old. :mrgreen:
Except when the market crash is accompanied by a grinding recession right when you need to start paying your student loans.
by momar
Thu Jun 27, 2013 2:37 pm
Forum: Personal Consumer Issues
Topic: Are you expected to subsidize friends and family?
Replies: 52
Views: 7744

Re: Are you expected to subsidize friends and family?

Even at the request of the 'poor student', often the group desire to go to the nicer places would win out. Often for simplicity (and much to the dismay of the student), the bill would be split evenly, even though this student would order the more frugal meal and drink options. Then the correct thin...
by momar
Tue Jun 25, 2013 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Invest or pay down mortgage?
Replies: 17
Views: 2217

Re: Invest or pay down mortgage?

30 year treasuries are back up over 3.5%. I would invest. You can always change your mind later and pay it to your mortgage, but you can't do the reverse.
by momar
Tue Jun 25, 2013 12:28 pm
Forum: Personal Consumer Issues
Topic: Are you expected to subsidize friends and family?
Replies: 52
Views: 7744

Re: Are you expected to subsidize friends and family?

How about co-workers who expect us to subsidize their kids' activities by asking us to buy fund raising crap a half dozen times per year? I know how much you make, we work at the same place with similar jobs! The other thing is that half the point of fund raisers is to teach the kids some responsibi...
by momar
Mon Jun 24, 2013 6:19 pm
Forum: Personal Investments
Topic: 10 Year Rate Down and Bond Prices Down Too?
Replies: 4
Views: 701

Re: 10 Year Rate Down and Bond Prices Down Too?

The 10 year treasury rate went up 0.05 today.
by momar
Sun Jun 23, 2013 3:51 pm
Forum: Personal Consumer Issues
Topic: "Why yes, yes I am."
Replies: 39
Views: 7664

Re: "Why yes, yes I am."

My friend is just starting residency in NYC and we were discussing apartment prices, which are exorbitant. His girlfriend then says, "Well, are you really going to save money at this age?" (mid twenties) "Why yes, yes I am." Have others noticed people my generation having a ment...
by momar
Sat Jun 22, 2013 10:01 pm
Forum: Investing - Theory, News & General
Topic: Gold continues its free fall
Replies: 34
Views: 6036

Re: Gold continues its free fall

am wrote:Could it be that since gold is easily traded in the form of ETFs, that the future returns will be different than the past?
Gold isn't like a small cap stock in Nigeria. It has always been readily available in solid form and there has always been a large, liquid market.
by momar
Sat Jun 22, 2013 9:58 pm
Forum: Personal Investments
Topic: Tax Loss Harvest Total Int'l Stock Index Fund
Replies: 11
Views: 1203

Re: Tax Loss Harvest Total Int'l Stock Index Fund

abuss368 wrote:Why doesn't Vanguard considering some fund pruning and combine these two international funds to achieve more efficiencies?
Then what would we TLH into? I appreciate that vanguard keeps these not quite identical fund groups.
by momar
Sat Jun 22, 2013 5:10 pm
Forum: Investing - Theory, News & General
Topic: 401k and investing in stocks is for idiots -Robert Kiyosaki
Replies: 21
Views: 4264

Re: 401k and investing in stocks is for idiots -Robert Kiyos

Well all the doctors and lawyers I know who are very well off financially ARE in business for themselves. Everyone of them owns all or a good part of the firm they work for. BUT most of the teachers and engineers and scientists I know are not rich. Maybe these people are paid OK but none of them is...
by momar
Sat Jun 22, 2013 4:30 pm
Forum: Personal Investments
Topic: First stock for a twelve year old
Replies: 46
Views: 5058

Re: First stock for a twelve year old

Total US Stock Market Index Fund might be exiting for him. He would own thousands of US companies instead of just one, and he would be able to see how the companies he is familiar with fit in with the rest. You could also go World. -- Tet $3,000 is a bit much for a 12 year old's birthday present. (...
by momar
Sat Jun 22, 2013 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: How to handle children's SS benefits?
Replies: 28
Views: 2092

Re: How to handle children's SS benefits?

It sounds like your kids are responsible. I would let at least your son have the money and do what he will with it. I say son only because he is older and nearly an adult.
by momar
Sat Jun 22, 2013 11:19 am
Forum: Personal Consumer Issues
Topic: Why buy expensive cars
Replies: 271
Views: 34565

Re: Why buy expensive cars

It seems that Prius buyers are the type of people that embrace environmentalism and their bodies with a religious zeal. The car, mother earth, the health food stores, yoga, T'ai chi, organic produce, green tea, etc. -- all these things make for a rather eccentric bunch of people. The rest of us hav...
by momar
Sat Jun 22, 2013 11:13 am
Forum: Personal Finance (Not Investing)
Topic: How to handle children's SS benefits?
Replies: 28
Views: 2092

Re: How to handle children's SS benefits?

Why don't either of them have checking accounts? Have they been responsible for handling any of their own money? This might be a good opportunity, especially for your son who is just about on his own (partially, at least), to learn and for you to see how he handles it.
by momar
Wed Jun 19, 2013 8:38 pm
Forum: Personal Investments
Topic: What the blank is going on with bonds?
Replies: 36
Views: 4830

Re: What the blank is going on with bonds?

nispirius with a fantastic post illustrating that it's not just the change in rates, it's the relative change in rates that matters.
by momar
Wed Jun 19, 2013 4:36 pm
Forum: Investing - Theory, News & General
Topic: Would you buy Total World index if it had Admiral Shares?
Replies: 86
Views: 15835

Re: Would you buy Total World index if it had Admiral Shares

And neither should any portfolio holding Total Stock Market and Total International in proportion to their global cap-weighting. Sure. And when that changes VT is automatically rebalanced. With the US+INTL you have to do it yourself, assuming you know it has changed. No, you don't have to do anythi...
by momar
Wed Jun 19, 2013 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Are hybrid cars cost effective?
Replies: 109
Views: 11675

Re: Are hybrid cars cost effective?

A lot of sedans are getting really great mileage now. The new Mazda6, which also looks gorgeous, gets 26/38.

A key thing to keep in mind is that increases at the low end of efficiency are much more cost effective than increases at the high end.
http://www.popularmechanics.com/cars/news/4324986
by momar
Mon Jun 17, 2013 8:34 pm
Forum: Personal Investments
Topic: Do I need so much cash?
Replies: 17
Views: 3523

Re: Do I need so much cash?

You might consider reducing your cash such that your taxable accounts + cash are equal to X months expenses in the case of a Y% decline in the market, where X is 9 months in your case and Y is a worst case scenario. Say, 50%. Eventually you can get to the point where you keep about a month's expense...
by momar
Sat Jun 15, 2013 4:40 pm
Forum: Personal Investments
Topic: reinvesting dividends
Replies: 31
Views: 2798

Re: reinvesting dividends

Yes, the case law is sparse and nobody will tell you in clear terms that TSM and S&P are identical. But the Fairmark article on "substantially identical" gives this advice: If I were sitting with a loss in an index fund and wanted to get around the wash sale rule, I would invest for 3...
by momar
Sat Jun 15, 2013 4:38 pm
Forum: Investing - Theory, News & General
Topic: why do people buy both insurance and lottery tickets
Replies: 39
Views: 3213

Re: why do investors buy both insurance and lottery tickets

It doesn't matter. I don't need to be a gazillionaire. It doesn't make it a smart play unless that's an overriding goal. It's not. It's a mathematically bad play. Brian But for a lot of people playing the lottery, the choise isn't millionaire or gazillionaire. It's paycheck to paycheck unless they ...
by momar
Sat Jun 15, 2013 10:24 am
Forum: Personal Consumer Issues
Topic: First car options, overwhelmed
Replies: 25
Views: 2698

Re: First car options, overwhelmed

I would look at buying a Fit or Versa new. You won't know what kind of financing you can get until you try.
by momar
Sat Jun 15, 2013 8:51 am
Forum: Personal Consumer Issues
Topic: Cheated on car service?
Replies: 24
Views: 2685

Re: Cheated on car service?

I don't know if this actually works, but I test new shops by telling them "oh, by the way, I think my brakes might need replacing, can you take a look at them too?"
by momar
Sat Jun 15, 2013 12:11 am
Forum: Personal Investments
Topic: reinvesting dividends
Replies: 31
Views: 2798

Re: reinvesting dividends

I don't know which part of pub 564 you might mean; pub 550 is the one actually dealing with substantially identical and it's clear as fog when it comes to mutual funds. Anyway, tax experts are quite undecided on this. Good reads: http://www.bogleheads.org/wiki/Wash_sale and http://www.fairmark.com/...
by momar
Fri Jun 14, 2013 9:59 pm
Forum: Personal Consumer Issues
Topic: Costco Natural Peanut Butter is Back!
Replies: 26
Views: 9312

Re: Costco Natural Peanut Butter is Back!

Try making your own natural peanut butter.
by momar
Fri Jun 14, 2013 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Shandra Mayhle-Rhine suggests investing in life insurance
Replies: 5
Views: 536

Re: Shandra Mayhle-Rhine suggests investing in life insuranc

The PG should be embarrassed to publish this advertisement.
by momar
Fri Jun 14, 2013 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Article about young americans not using credit cards
Replies: 81
Views: 7784

Re: Article about young americans not using credit cards

If the next generation of home buyers aren't using credit cards, then lenders will figure out another way to qualify them for the mortgages. What's the alternative, lenders not making any money?
by momar
Wed Jun 12, 2013 3:45 pm
Forum: Investing - Theory, News & General
Topic: Is 3% the new 4%
Replies: 148
Views: 13578

Re: Is 3% the new 4%

I'm trying to apply the "4% rule". I retired last year with a 1M$ capital and according to the rule I should expect to be able to spend 40k annually, inflation adjusted, for the foreseeable future, while keeping my 1M capital, also inflation adjusted. After the first year I spent my 40k, ...