Search found 842 matches

by jdilla1107
Thu Sep 27, 2012 3:53 pm
Forum: Investing - Theory, News & General
Topic: Dividend question
Replies: 17
Views: 897

Re: Dividend question

I think you're overly concerned with the price drop. This is mostly an artificial construct done by exchanges and fund companies to be fair to people who buy/sell close to the dividend date. Imagine instead that dividends were distributed continuously, every day perhaps. Then your asset value would ...
by jdilla1107
Wed Sep 26, 2012 5:06 pm
Forum: Personal Investments
Topic: Waiting a month or two before investing?
Replies: 20
Views: 2141

Re: Waiting a month or two before investing?

1) The situation in Europe could take many years to resolve. 2) There will always be people who predict crashes. The "most accurate" forecasters use words like may and might. As in, "The S&p500 may be facing a 20% decline". This statement is always true at all times. 3) What edge do you have over th...
by jdilla1107
Tue Sep 25, 2012 8:27 pm
Forum: Personal Investments
Topic: Emergency Fund
Replies: 10
Views: 1394

Re: Emergency Fund

Good start. I would personally leave it there. You want the EF to be very liquid so you don't have to liquidate investments based on personal circumstances. The next steps to investing after building an emergency fund are the really important ones. You would need to post more financial info for what...
by jdilla1107
Tue Sep 25, 2012 7:51 pm
Forum: Investing - Theory, News & General
Topic: Why own ETFs?
Replies: 11
Views: 1204

Re: Why own ETFs?

How are you measuring this volatility? Looks the same: http://finance.yahoo.com/q/bc?s=VTI&t=6m&l=on&z=l&q=l&c=vtsmx I use VTI as it has the ER of the admiral shares. It appears that you can only get the admiral shares on this index with vanguard brokerage. ( I use Wells Fargo for my 100 free trades...
by jdilla1107
Mon Sep 24, 2012 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: What's the best way to get a job?
Replies: 28
Views: 2566

Re: What's the best way to get a job?

I really like Indeed for searching for jobs:

http://www.indeed.com/
by jdilla1107
Fri Sep 21, 2012 9:20 am
Forum: Personal Investments
Topic: Struggling with Asset Allocation
Replies: 14
Views: 1438

Re: Struggling with Asset Allocation

Thanks for the responses so far. Some more info/answers: - I plan to keep working, salary of around 150k with insurance. Wife stays home with kids. - Will max 401k each year and roths if income limits allow. - I plan to pay for my kids college. - Low priority to leave any kind of legacy - Would like...
by jdilla1107
Thu Sep 20, 2012 8:12 pm
Forum: Personal Investments
Topic: Struggling with Asset Allocation
Replies: 14
Views: 1438

Struggling with Asset Allocation

I recently sold a business I worked on building for 7 years and received a large amount of money. I'm struggling to decide my stock/bond allocation. Some of me says "inflation will eat away my portfolio, so go more stocks" and some of me says "why risk so much, if you don't need to". The details: Wi...
by jdilla1107
Mon Sep 17, 2012 4:00 pm
Forum: Personal Investments
Topic: Building Vanguard 401k for Company - Review
Replies: 36
Views: 2580

Re: Building Vanguard 401k for Company - Review

I work for a small firm with a poor 401k, could you summarize how a company 401k plan works with vanguard? Their website is light on specifics and I think they could do a far better job of making it appear easy and transparent for a firm to switch. Does the company have to pay vanguard? Do employees...
by jdilla1107
Sun Sep 16, 2012 2:52 pm
Forum: Investing - Theory, News & General
Topic: Simple question re bond fund income
Replies: 34
Views: 2010

Re: Simple question re bond fund income

The dividends will stay the same in the short run and then slowly start gravitating towards the current market rate as bonds mature and then get reinvested in the fund.
by jdilla1107
Sun Sep 16, 2012 1:05 pm
Forum: Investing - Theory, News & General
Topic: Simple question re bond fund income
Replies: 34
Views: 2010

Re: Simple question re bond fund income

A bond fund confuses the issue a bit, so consider a single bond. Say you buy a single new issue 10 year bond for 2%. Now, say after 2 years, you could get the same bond for 4% because rates rose in the market. If you don't sell the bond, you will have to wait 8 years losing opportunity to earn more....
by jdilla1107
Fri Sep 14, 2012 7:56 pm
Forum: Investing - Theory, News & General
Topic: 401k Loan is same thing as selling shares in your 401k?
Replies: 8
Views: 3342

Re: 401k Loan is same thing as selling shares in your 401k?

livestrongforever wrote:(which I understand is aftertax dollars and then you get taxed again at retirement)
This is a myth. You don't pay taxes twice on any part of a 401k loan.

http://thefinancebuff.com/401k-loan-dou ... -myth.html

(I still wouldn't do one, but it's still wrong.)
by jdilla1107
Tue Sep 11, 2012 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: AMT strategies
Replies: 2
Views: 481

AMT strategies

I will most likely be getting hit by AMT for the foreseeable future and there's nothing I want to do to avoid it. (high prop taxes, state taxes, and some of my employment income is long term gains) Given that I'm already being hit by AMT, does this affect whether I want to be doing tax free municipa...
by jdilla1107
Sat Sep 08, 2012 1:17 pm
Forum: Personal Investments
Topic: Taking Some off the Table?
Replies: 69
Views: 8061

Re: Taking Some off the Table?

john94549 wrote:Started with $30,000*, ending with $30,485. Annualized, that's 6.4%. Never let green fade to red and all that. I'll take it..
The s&p 500 was up around 2% just the other day. That's well over 500% annualized! :shock:
by jdilla1107
Thu Sep 06, 2012 7:40 pm
Forum: Investing - Theory, News & General
Topic: gold, what if scenario
Replies: 126
Views: 8160

Re: gold, what if scenario

The value of gold is not unlike the conundrum of the value of water versus diamonds - Marginal utility theory of economics. The reason why the price of diamonds is higher than that of water, owes to the greater additional satisfaction of the diamonds over the water - not that diamonds have signific...
by jdilla1107
Wed Sep 05, 2012 12:09 pm
Forum: Investing - Theory, News & General
Topic: Cheapest way to reap $3k tax value "loss" every year?
Replies: 31
Views: 3568

Re: Cheapest way to reap $3k tax value "loss" every year?

Most Leveraged efts match the daily percentage gain/loss of the index and NOT the annual one. It's very different. google or try the math yourself
by jdilla1107
Tue Sep 04, 2012 9:23 am
Forum: Personal Investments
Topic: Anyone 50+ Making Roth 401-k Contributions?
Replies: 15
Views: 2043

Re: Anyone 50+ Making Roth 401-k Contributions?

Roth 401(k) and their siblings are kind of weird. For one thing, they come with RMD's. If one considers them at all, at least use the Roth IRA first when income permits. --Tet I never realized this. What happens if you roll a Roth 401k into a Roth Ira after leaving a job? Is the RMD requirement tra...
by jdilla1107
Sun Sep 02, 2012 12:41 pm
Forum: Investing - Theory, News & General
Topic: Anyone try this to beat the 500 Index fund?
Replies: 25
Views: 3359

Re: Anyone try this to beat the 500 Index fund?

This reminds me of a strategy which wealthy people often apply to various passive investments. I believe the same idea can be used to really beat an index too when taxes are accounted for. 1) create your own index portfolio from individual stocks 2) every year tax loss harvest the losers 3) you can ...
by jdilla1107
Wed Aug 29, 2012 8:34 am
Forum: Investing - Theory, News & General
Topic: Dividend tax rates
Replies: 4
Views: 910

Dividend tax rates

I realize no one really knows if dividend tax rates will go up next year or not, but there is a part of the discussion I'm not following. Currently my understanding is that dividends don't contribute to your income that is effected by a tax bracket. In other words, dividend income can't push you int...
by jdilla1107
Mon Aug 27, 2012 7:34 pm
Forum: Personal Consumer Issues
Topic: I need a new browser
Replies: 53
Views: 4610

Re: I need a new browser

Google Chrome is far and away the best browser. No contest, nothing to debate. ;-)
by jdilla1107
Sun Aug 26, 2012 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Possible mid-life crisis - please help
Replies: 94
Views: 13880

Re: Possible mid-life crisis - please help

Your post hit home for me as I have gone through something very similar in the last year. I decided to quit. My life is much better although some days I regret it. (Grass is always greener on the other side type thing) One difference was I have 2 kids and I felt like me being miserable was affecting...
by jdilla1107
Fri Aug 24, 2012 7:45 pm
Forum: Personal Consumer Issues
Topic: big diamond ring
Replies: 80
Views: 14352

Re: big diamond ring

I'm surprised appraisals were mentioned so many times in this thread. Jewelry will always appraise more than you paid. When the appraiser tells you that you got an awesome deal, offer to sell it to him for 50%, and he won't buy it. It's all a scam. I'm surprised that insurance companies allow this....
by jdilla1107
Fri Aug 24, 2012 2:23 pm
Forum: Personal Investments
Topic: Prepaid college savings plan
Replies: 17
Views: 2236

Re: Prepaid college savings plan

Prepaid plans are government affiliated ponzi schemes. There is no investment that tracks college tuition rates, so you are hoping that: 1) The government investing in the stock market for you will work out or 2) The government (taxpayers) will bail you out if it doesn't. I live in IL where the prep...
by jdilla1107
Thu Aug 23, 2012 12:26 pm
Forum: Personal Investments
Topic: GOLD
Replies: 69
Views: 5321

Re: GOLD

Well I have to ask then - what are your investable assets that you think 2% in gold is silly? Perhaps the difference here is that you think of gold as some sort of catastrophic insurance. Sort of like carrying a *way* out of the money put option on the S&P500. Like if gold went up %10,000, now 2% o...
by jdilla1107
Thu Aug 23, 2012 12:21 pm
Forum: Personal Investments
Topic: GOLD
Replies: 69
Views: 5321

Re: GOLD

We're all going between: - Gold as a currency - Gold as insurance - Gold as an investment as part of an asset allocation. - Betting on gold price as a form of risk taking. - Gold/Commodities as a form of lesser correlated diversification I think this conversation thread is lost as all of those are s...
by jdilla1107
Thu Aug 23, 2012 10:50 am
Forum: Personal Investments
Topic: GOLD
Replies: 69
Views: 5321

Re: GOLD

I think people that do these 1-2% things are so they won't feel left out or something. "Oh yea, I made 400% on gold too". When 400% in reality is only $1000 gain or something. Your investable assets appear to make 1-2% meaningless. For others, a 2% allocation to gold means they are up over $1,000 j...
by jdilla1107
Thu Aug 23, 2012 10:46 am
Forum: Personal Investments
Topic: GOLD
Replies: 69
Views: 5321

Re: GOLD

BTW. Buffet owned a HUGE stake in silver bullion in the past. He is very hypocritical in his statements. In fact if he had just held onto it instead of selling out when he did then Berkshire would have done much better than it actually did perform the past 10 years focusing primarily on stocks. I t...
by jdilla1107
Thu Aug 23, 2012 10:20 am
Forum: Personal Investments
Topic: GOLD
Replies: 69
Views: 5321

Re: GOLD

This entire debate over cubes and farms and buying 16 Exxon Mobiles is silly and distracting from the main point. Here is a 5 year chart of the S&P 500 Index vs. the GLD ETF: http://tinyurl.com/8jgwncr Now can anyone on this forum see that chart and look at me with a straight face and say that prec...
by jdilla1107
Thu Aug 23, 2012 7:45 am
Forum: Investing - Theory, News & General
Topic: Alternatives To Junk, or High Yield, Funds
Replies: 41
Views: 3944

Re: Alternatives To Junk, or High Yield, Funds

The point is that if you strip out the equity risk of corporate bonds, you basically get very similar other risks as US Treasuries-- Larry Swedroe has cited the research. Ie the market is efficient: there's no 'money on the table' in corporate bonds (caveat: except ST ones, where return seems to ex...
by jdilla1107
Wed Aug 22, 2012 4:25 pm
Forum: Investing - Theory, News & General
Topic: Alternatives To Junk, or High Yield, Funds
Replies: 41
Views: 3944

Re: Alternatives To Junk, or High Yield, Funds

They have all the risks of equities with only a portion of the rewards. This is false. Bonds most certainly do not have "all the risks" of stocks. 1) They are backed by the non-liquid assets of a firm. For some firms the value of assets can be equal to or more than the outstanding bond value. 2) In...
by jdilla1107
Wed Aug 22, 2012 2:04 pm
Forum: Personal Investments
Topic: GOLD
Replies: 69
Views: 5321

Re: GOLD

As such I give you the thread at http://www.bogleheads.org/forum/viewtopic.php?f=11&t=101419&p=1469347. In there, you'll see people paying tens of thousands of dollars for a single shiny tiny rock that has no productive capacity and are plentiful enough to allow every person on the planet to own a ...
by jdilla1107
Tue Aug 21, 2012 2:11 pm
Forum: Personal Consumer Issues
Topic: big diamond ring
Replies: 80
Views: 14352

Re: big diamond ring

Consider man made real diamonds:

1) Don't have to deal with the thought of wearing a blood diamond.
2) The only way anyone knows they are man made is because under a microscope they are too perfect to have been geologically made.
3) Massively cheaper.

Popular one:

http://www.diamondnexus.com/
by jdilla1107
Tue Aug 21, 2012 1:54 pm
Forum: Personal Investments
Topic: Financial consultant really bothered me
Replies: 34
Views: 4829

Re: SPIAs

Hi Cody: The adviser was ill-informed or a liar. You were wise to disengage as quickly as possible. Taylor hit the nail on the head; absolutely no reason to waste your time debating these guys, whether they are annuity salesmen or stock brokers (unless you are bored and want to waste their time). A...
by jdilla1107
Tue Aug 21, 2012 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford this quarter life crisis?
Replies: 88
Views: 11164

Re: Can I afford this quarter life crisis?

Not intending to troll, but I'm a car snob and have trouble resisting. An Audi TT is the absolute definition of a very pretty looking sports car with very weak performance. Compared to it's looks, its very underpowered and poor performing. (Unless you get to the TT RS) When I see one, the first thin...
by jdilla1107
Wed Aug 15, 2012 8:13 pm
Forum: Personal Investments
Topic: putting money aside for next year taxes
Replies: 23
Views: 3497

Re: putting money aside for next year taxes

Keep in mind that you have to pay either 90% of what you really owe or 110% of last years tax amount evenly throughout the year in order to avoid penalties. If you miss these thresholds then you will need to file quarterly if you don't already. You can't just pay a huge check at the end of the year,...
by jdilla1107
Wed Aug 15, 2012 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Unable to contribute to a retirement account for 2012
Replies: 2
Views: 710

Unable to contribute to a retirement account for 2012

I left my employer in March and only got around 4k into my 401k as I made my contributions evenly spaced to max out over a year. This employer is going to give me W2 "severance" salary for 1 year. (It's complicated.) However, they told me I am no longer able to contribute to the plans 401k with thes...
by jdilla1107
Mon Aug 13, 2012 4:30 pm
Forum: Investing - Theory, News & General
Topic: boglehead theory question
Replies: 40
Views: 4349

Re: boglehead theory question

There really are people who make money every day doing day trading, market timing, or individual picking. They just happen to work at highly capitalized firms you can't touch. We need these people to make markets efficient. The point isn't that there are no inefficiencies in markets, its that indiv...
by jdilla1107
Mon Aug 13, 2012 2:13 pm
Forum: Investing - Theory, News & General
Topic: boglehead theory question
Replies: 40
Views: 4349

Re: boglehead theory question

It's an interesting situation, where in order to have an efficient market we need people that believe the market is inefficient even when it currently isn't. This isn't quite correct. The market is MADE efficient by it's participants. You're dead wrong if you think the market is just naturally effi...
by jdilla1107
Sun Jul 29, 2012 3:23 pm
Forum: Investing - Theory, News & General
Topic: Who drives the market?
Replies: 20
Views: 2142

Re: Who drives the market?

Within seconds of a news item, markets react. Are there thousands of people/institutions glued to news sources just waiting to initiate trades worth millions of dollars? Seems to me like the retail investors have little sway on market direction. It's actually within microseconds of a news announcem...
by jdilla1107
Mon Jun 25, 2012 2:54 pm
Forum: Personal Investments
Topic: Removing Treasuries from my Portfolio
Replies: 30
Views: 2878

Re: Removing Treasuries from my Portfolio

To my knowledge, that is nearly always the case. I do not think this is unique to today's low interest rate environment. This is a good point and I was wondering if this was at all unique that after I wrote my original post. (I am in my early 30s, so haven't been paying attention to these things th...
by jdilla1107
Mon Jun 25, 2012 7:49 am
Forum: Personal Investments
Topic: Removing Treasuries from my Portfolio
Replies: 30
Views: 2878

Re: Removing Treasuries from my Portfolio

I was only saying CD returns are higher than the Treasury portion of that fund (40% of it). The CD returns are also less risky since I can break a CD with 6 mo penalty and treasuries will lose value if interest rates increase. I think corporates and mortgage bonds are closer to 2.5% which is paying ...
by jdilla1107
Sun Jun 24, 2012 8:45 pm
Forum: Personal Investments
Topic: Removing Treasuries from my Portfolio
Replies: 30
Views: 2878

Removing Treasuries from my Portfolio

I was looking for input/advice on where I may be going wrong here... I have a significant amount of money to allocate to the bond portion of my portfolio. I was originally inclined to just go with the vanguard total bond market index to keep it simple. However, in this environment treasuries just do...