Search found 4283 matches

by JoMoney
Wed Jul 31, 2013 4:15 pm
Forum: Investing - Theory, News & General
Topic: [Poll] How Much Will Investment Fees Reduce Your End Wealth?
Replies: 45
Views: 3731

Re: [Poll] How Much Will Investment Fees Reduce Your End Wea

People should not forget to increase investment fees by adding to the ER an estimate of inside the fund trading costs that are not in the ER. That could be as low as a few hundredths of a percent for low turnover index funds up to an additional 1% or more for high turnover active funds. Turnover in...
by JoMoney
Wed Jul 31, 2013 3:40 pm
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 4957

Re: Interesting Debt Theory...

Though, I'm not exactly sure what about the story made you think his credit is shaky lol. Paying 8% on a car loan when even without the historic drops 4-6% has been out there for a few years. Paying 20% on a credit card when 0 to 9% has out there. It could be shaky credit, or a lack of curiosity/de...
by JoMoney
Wed Jul 31, 2013 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Sending money to overseas charity
Replies: 8
Views: 1010

Re: Sending money to overseas charity

I've used XE.COM currency transfers ( m ) for sending and receiving money between my personal bank accounts in the U.S. and overseas. I'm not sure how this would work between different individuals/organization bank accounts, but I believe it could work. They have options to transfer the money via el...
by JoMoney
Wed Jul 31, 2013 3:04 pm
Forum: Investing - Theory, News & General
Topic: Homes as Investments?
Replies: 101
Views: 8089

Re: Homes as Investments?

Not really arguing but how about: "I wish more people would look at their home as an investment, view it as a business, look for value, take advantage of market imperfections and include a margin of safety" I think this encompasses the rent vs buy decision - which I believe has a very, ve...
by JoMoney
Wed Jul 31, 2013 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: New Member Looking for Super Aggressive Returns
Replies: 22
Views: 9154

Re: New Member Looking for Super Aggressive Returns

Right you are, and coincidentally, this is why I'm shooting for these return numbers. To gain financial independence relatively early in life to focus on self-directed projects, charitable work (peace corps, etc), vocations that are rewarding but not currently financially viable, possibly military ...
by JoMoney
Wed Jul 31, 2013 2:14 pm
Forum: Investing - Theory, News & General
Topic: Why rebalance into bonds?
Replies: 58
Views: 7208

Re: Why rebalance into bonds?

Selecting a rebalancing trigger e.g. a birthday or when an allocation exceeds your target by x% is to take the emotion out of maintaining your level of risk. You don't market time based on current trends, your gut feelings etc. It forces you to take some profits when your investment is higher than ...
by JoMoney
Wed Jul 31, 2013 1:39 pm
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 4957

Re: Interesting Debt Theory...

If his credit doesn't suck he should be able to re-fi that car loan to around 2%. Penfed, USAA, local credit unions. Odds are his credit is shaky though. Also not a bad idea on refinancing the loan, at 2% it would be waaay better to carry the life of the loan and invest the money. Though, I'm not e...
by JoMoney
Wed Jul 31, 2013 3:56 am
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 4957

Re: Interesting Debt Theory...

When does investing into compounding interest outweigh high interest liabilities? The interest on liabilities compounds against you the same way interest earned compounds for you. As you stated, "it would be foolish to hope for 18-20% returns" ( not foolish to hope, but foolish to expect)...
by JoMoney
Wed Jul 31, 2013 2:25 am
Forum: Investing - Theory, News & General
Topic: Homes as Investments?
Replies: 101
Views: 8089

Re: Homes as Investments?

In general, a house is just a box left out in the weather to rott. The structure only has so many years before it needs to be replaced (either in whole, or piece by piece as things fall apart). This is why there is a tax deduction for depreciation. The costs to run your "business" aren't c...
by JoMoney
Tue Jul 30, 2013 4:10 pm
Forum: Investing - Theory, News & General
Topic: What happens to stock prices if everyone index invests?
Replies: 42
Views: 4962

Re: What happens to stock prices if everyone index invests?

I don't know what you are talking about but why couldn't I have thought it up myself? I did not read any article and then spin someone else's idea as my own. Index investing is picking up everywhere. I have a fair percentage of my portfolio in indexes, but I am obviously trying to look at it from a...
by JoMoney
Tue Jul 30, 2013 3:32 pm
Forum: Investing - Theory, News & General
Topic: Data on stock diversification?
Replies: 15
Views: 875

Re: Data on stock diversification?

Link: m To effectively diversify the risks of just the asset class of U.S. large-cap stocks, you would have to hold a minimum of 50 stocks. Thank you for your replies. The above line is exactly the one that I'm looking for a reference for. -K If your intent is as you stated, to build some sort of m...
by JoMoney
Tue Jul 30, 2013 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: Single Favorite Mutual Fund
Replies: 51
Views: 4939

Re: Single Favorite Mutual Fund

gkaplan wrote:This really is a silly thread, and I regret posting twice in it.


Silly is as silly does....

or as Mr.Wonka put it
http://www.youtube.com/watch?v=MS5_cIwzkII
by JoMoney
Tue Jul 30, 2013 2:39 pm
Forum: Investing - Theory, News & General
Topic: Data on stock diversification?
Replies: 15
Views: 875

Re: Data on stock diversification?

I think it would be neat to generate a 100 random portfolios of 1, 5, 10, 25, 50, and 100 stocks each, and then look at 1,3,5, and 10 year returns of those porfolios looking at the dispersion of returns. I've seen people do this and draw some hugely mis-leading conclusions because it does not accou...
by JoMoney
Tue Jul 30, 2013 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Single Favorite Mutual Fund
Replies: 51
Views: 4939

Re: Single Favorite Mutual Fund

I don't play favorites, I buy more of the asset class which is performing below expectations. Why? well quite simply because it means I can pick up shares cheaply while the lemmings pile into their "favorite mutual fund". As the mean reverts, I then sell and start the process anew purchas...
by JoMoney
Tue Jul 30, 2013 2:20 pm
Forum: Investing - Theory, News & General
Topic: Why rebalance into bonds?
Replies: 58
Views: 7208

Re: Why rebalance into bonds?

I've typically just decided on an amount I think is reasonable to keep in cash/bonds, and all my "investing" is the stock portfolio. I've typically just decided on an amount I think is reasonable to keep in stock, and all my "investing" is the cash/bonds portfolio. I was just co...
by JoMoney
Tue Jul 30, 2013 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Are all Index Funds taxed at the same rate?
Replies: 16
Views: 1555

Re: Are all Index Funds taxed at the same rate?

My title says it all. I'm a newbie, trying to figure out the best way to allocate my small nest egg. I've read the excellent piece by Laura titled "Investment Planning." I noticed that she lists securities in order of their tax-efficiency. She has "Most Index Funds" towards the ...
by JoMoney
Tue Jul 30, 2013 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Single Favorite Mutual Fund
Replies: 51
Views: 4939

Re: Single Favorite Mutual Fund

There is a simple beauty in the "Total Stock Market" or the "Total World Stock Market" funds. However, my personal favorite is the Vanguard 500 Admiral Shares The lowest expense ratio, the lowest annual internal brokerage expenses, the stocks that make up the fund have the lowest...
by JoMoney
Tue Jul 30, 2013 1:26 pm
Forum: Personal Consumer Issues
Topic: Renting indefinitely vs buying a condo?
Replies: 28
Views: 4629

Re: Renting indefinitely vs buying a condo?

I heard if you buy a 2-3 flat building in the area and occupy one but the rent the other, it can be fairly affordable and decent tax benefits. For me, the only reason I, personally, would own here, would be a hedge against inflation. This statement, along with the others that discussed buying earni...
by JoMoney
Tue Jul 30, 2013 3:28 am
Forum: Investing - Help with Personal Investments
Topic: Small Cap Value Tilt / Market Portfolio
Replies: 4
Views: 1315

Re: Small Cap Value Tilt / Market Portfolio

I have been studying Rick Ferri and Larry Swedroe’s books and have recently added a small cap value tilt to my portfolio. Tilting makes me nervous, especially as I am 59 years old. Any thoughts on benefit vs risk of the small cap value I have in my portfolio? When it comes to stocks, I would sugges...
by JoMoney
Mon Jul 29, 2013 4:13 pm
Forum: Investing - Theory, News & General
Topic: Stock market recovery time
Replies: 25
Views: 4930

Re: Stock market recovery time

Something to consider... looking just at the total "recovery time" is based on a peak at a single point in time, as if someone made their full investment in one lump sum at that one peak, and then were expecting to take the full investment out at another point. The experience for someone w...
by JoMoney
Mon Jul 29, 2013 3:22 pm
Forum: Personal Consumer Issues
Topic: Renting indefinitely vs buying a condo?
Replies: 28
Views: 4629

Re: Renting indefinitely vs buying a condo?

I would highly recommend you DON'T buy a place that won't make you happy long term. If you believe there is any chance you'll be moving (for career or otherwise) in less than 5 years, don't buy. Renting gets a bad rap that's unjustified. Renting is not throwing money away compared to buying. Buying ...
by JoMoney
Mon Jul 29, 2013 3:04 pm
Forum: Investing - Theory, News & General
Topic: Why rebalance into bonds?
Replies: 58
Views: 7208

Re: Why rebalance into bonds?

You can certainly simply buy a fixed allocation once in your life and never touch it. The portfolio will almost certainly be subject to greater risk as time goes on if you so choose. I recognize that my need for cash like security will change, especially when I'm beginning to draw down on the equit...
by JoMoney
Mon Jul 29, 2013 2:17 pm
Forum: Investing - Theory, News & General
Topic: Why rebalance into bonds?
Replies: 58
Views: 7208

Re: Why rebalance into bonds?

So . . . are you asking them why they choose a constant mix approach? If you're merely asking why, given that they've chosen a constant mix approach, they would rebalance into bonds, the answer is trivial: that's how you implement the chosen strategy (when stock returns are higher than bond returns...
by JoMoney
Mon Jul 29, 2013 1:38 pm
Forum: Investing - Theory, News & General
Topic: Why rebalance into bonds?
Replies: 58
Views: 7208

Re: Why rebalance into bonds?

And why does nearly everyone here believe that "rebalancing" means returning to a constant mix? There are other forms of rebalancing. Well, my initial questions was directed at people who choose to maintain a constant percentage stock/bond portfolio and actively re-balance to fit that fix...
by JoMoney
Mon Jul 29, 2013 1:02 pm
Forum: Investing - Theory, News & General
Topic: Why rebalance into bonds?
Replies: 58
Views: 7208

Re: Why rebalance into bonds?

Everything I hold gets marked to market, even individual bonds. Why would I do anything different for bonds vs. equity vs. ??? I understand the market is going to place a value on the assets whether you choose to acknowledge it or not. The conflict I have is I just don't "get" the active ...
by JoMoney
Mon Jul 29, 2013 3:26 am
Forum: Investing - Help with Personal Investments
Topic: brokerage risk (for lack of better term)
Replies: 3
Views: 433

Re: brokerage risk (for lack of better term)

I don't think most people consider this a concern (especially at large, long-term, respected brokers). There is some difference between individual mutual funds, and the brokerage, so it may be helpful if you distinguished if you're thinking about buying into one of the individual mutual funds, or if...
by JoMoney
Mon Jul 29, 2013 1:43 am
Forum: Investing - Theory, News & General
Topic: Why rebalance into bonds?
Replies: 58
Views: 7208

Why rebalance into bonds?

I'm not a fan of actively rebalancing. I've typically just decided on an amount I think is reasonable to keep in cash/bonds, and all my "investing" is the stock portfolio. However, I've been considering some questions on the portfolio rebalancing process and was curious about the thinking ...
by JoMoney
Mon Jul 29, 2013 12:59 am
Forum: Personal Finance (Not Investing)
Topic: Tried to get credit report - security questions don't match
Replies: 61
Views: 45502

Re: Tried to get credit report - security questions don't ma

I recently (last week) had the same problem with Equifax. Only one of the security questions had actual true data about my background, the others were "none of the above" sort of answers. After answering the questions it told me they would not be able to give me the report online and I wou...
by JoMoney
Sun Jul 28, 2013 9:02 pm
Forum: Investing - Help with Personal Investments
Topic: VG Auto Invest into ETF Class?
Replies: 5
Views: 418

Re: VG Auto Invest into ETF Class?

So for various reasons, I've ended up with the ETF class of VG Total Stock Mkt fund in my taxable account. Is there any easy way to systematically invest in a VG ETF on a monthly basis? (Aside, anyone know if other brokerage firms make such a function available for ETFs, e.g. Fidelity, Schwab, TD?)...
by JoMoney
Sun Jul 28, 2013 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Dave Ramsey Pitches Active Funds - Comments Disagree
Replies: 17
Views: 2393

Re: Dave Ramsey Pitches Active Funds - Comments Disagree

A low turnover ratio of 50% or less shows the management team has confidence in its investments and isn’t trying to time the market for a bigger return. So that's what a low turnover rate is. So they have confidence in half of their picks and don't have confidence in half their picks? Sounds like a...
by JoMoney
Sun Jul 28, 2013 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Dave Ramsey Pitches Active Funds - Comments Disagree
Replies: 17
Views: 2393

Re: Dave Ramsey Pitches Active Funds - Comments Disagree

Dave's show is entertaining, and provides a valuable service motivating people to get out and stay out of debt. Like so many others have said, his advice on investing is horrible. The stock investing community as a whole is limited to achieving the results of the total market as a whole, less expens...
by JoMoney
Sun Jul 28, 2013 4:14 pm
Forum: Investing - Theory, News & General
Topic: dividend vs stock price
Replies: 16
Views: 1548

Re: dividend vs stock price

It's easy to see that reinvesting dividends results in exponential growth of your capital. It's not as obvious that this is the case for non-dividend paying stocks. What's not so easy to see is when the company dilutes equity by issuing and selling new shares for the explicit purpose of keeping the...
by JoMoney
Sun Jul 28, 2013 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: ER Impact: Low vs. Lower
Replies: 11
Views: 1192

Re: ER Impact: Low vs. Lower

I don't believe there is any advantage to be had by complicating things. Some people get very caught up in stock sector allocation (beyond basic diversification), I believe it leads to higher expenses and effectively active management. The evidence that any particular sector consistently out-perfor...
by JoMoney
Sun Jul 28, 2013 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: New Member Looking for Super Aggressive Returns
Replies: 22
Views: 9154

Re: New Member Looking for Super Aggressive Returns

Actually I bet a case could be made that the most plausible may to use capital to achieve huge financial success is to found and operate a business. That is where the real possibility of ending up with tens or hundreds of million of dollars from tens or hundreds of thousands of dollars really exist...
by JoMoney
Sun Jul 28, 2013 8:11 am
Forum: Investing - Help with Personal Investments
Topic: 2014 - 2015; Bonds in a Lazy Portfolio???
Replies: 15
Views: 2821

Re: 2014 - 2015; Bonds in a Lazy Portfolio???

Everyone has been talking for the last 4 years about how rates are about to skyrocket. I'm sill waiting... I don't know about you, but an 80% rate increase (10 year treasury) in 2 months seems pretty significant. "IF" we see a time like in '80-'81 where it goes up five percent in a single...
by JoMoney
Sun Jul 28, 2013 7:50 am
Forum: Investing - Theory, News & General
Topic: Jason Zweig Article on Shallow & Deep Risk
Replies: 45
Views: 10530

Re: Jason Zweig Article on Shallow & Deep Risk

To me, the article suggests the need for a higher stock allocation rather than a "liability matching portfolio" when you have enough. Roosevelt. I would agree. But if you're already fully invested in stocks, where is the money going to come from to increase your allocation? And if you've ...
by JoMoney
Sun Jul 28, 2013 5:02 am
Forum: Investing - Help with Personal Investments
Topic: New AA [Asset Allocation]
Replies: 31
Views: 5298

Re: New AA

... I plan to start drawing from all retirement accounts when I retire ( 72t withdrawals from TSP and ROTH and 4% from taxable). Question... I've heard from a couple sources on the web that although 72t SEPP withdrawals will allow you to avoid the 10% penalty when taking money out of a Roth IRA, th...
by JoMoney
Sun Jul 28, 2013 4:13 am
Forum: Investing - Theory, News & General
Topic: High Fees, Poor Choices Vex 401(k) Participants
Replies: 26
Views: 2387

Re: High Fees, Poor Choices Vex 401(k) Participants

Garco wrote:On the last point, many many employees have mandatory contributions to their 401k. I do.


It's not truly "mandatory", employees have to be given the opportunity to elect out of the automatic contribution that many plans are implementing.
by JoMoney
Sun Jul 28, 2013 3:46 am
Forum: Investing - Theory, News & General
Topic: Jason Zweig Article on Shallow & Deep Risk
Replies: 45
Views: 10530

Re: Jason Zweig Article on Shallow & Deep Risk

... is (a) doing nothing in a down market and watching your equity drop from a target of 50/50 to say, 40/60 without rebalancing different from (b) "panicking" in a flat market due to fear of a pending downturn and selling off from 50/50 to 40/60? ... Yes, it's different. In scenario &quo...
by JoMoney
Sun Jul 28, 2013 3:06 am
Forum: Investing - Help with Personal Investments
Topic: 2014 - 2015; Bonds in a Lazy Portfolio???
Replies: 15
Views: 2821

Re: 2014 - 2015; Bonds in a Lazy Portfolio???

I'm most confident, based upon my in-depth knowledge of the property, that my real estate investment is solid - at least in terms of holding its value, and I plan on holding it for another 10+ years (I'm in a well established, central, location in a major city - not Detroit!). That will leave me we...
by JoMoney
Sun Jul 28, 2013 12:41 am
Forum: Investing - Help with Personal Investments
Topic: 2014 - 2015; Bonds in a Lazy Portfolio???
Replies: 15
Views: 2821

Re: 2014 - 2015; Bonds in a Lazy Portfolio???

...but it does not make sense to try and avoid the risk of the bond market but increasing your exposure to the stock market That sums it up quite nicely. I'm not an advocate of actively re-balancing portfolios. I have a set amount of cash/bond investments that help me sleep at night, putting my saf...
by JoMoney
Sat Jul 27, 2013 11:43 pm
Forum: Investing - Help with Personal Investments
Topic: how is the strategy
Replies: 16
Views: 1353

Re: how is the strategy

i am seeking some insights for my investment strategy when i buy stock i am selling it as soon as it makes at least %1-%2 - unless i really think it is going to go up.... the reason is not to get exposed to risk and it usually makes that amount in a short time anyway - unless it only goes down - so...
by JoMoney
Sat Jul 27, 2013 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: Income Limits and Backdoor Roth
Replies: 29
Views: 3111

Re: Income Limits and Backdoor Roth

Does anyone know if you have to wait until after you've filed the form 8606 to roll it into the Roth? i.e. I'm imagining the scenario goes: -2013 - Deposit $5500 in a traditional Ira -April 2014 - File your 2013 Taxes along with form 8606 establishing the deposit as "non-deductible" -Later...
by JoMoney
Sat Jul 27, 2013 8:54 pm
Forum: Personal Consumer Issues
Topic: Cutting the cord on Cable
Replies: 95
Views: 12443

Re: Cutting the cord on Cable

...Monopolies have been dissolved in land line phones and some can even pick their power company so why is cable TV the last wired monopoly standing almost everywhere in the US? This is so frustrating! I know you're upset about getting good Internet. Hopefully, things like improved wireless connect...
by JoMoney
Sat Jul 27, 2013 8:27 pm
Forum: Investing - Theory, News & General
Topic: Jason Zweig Article on Shallow & Deep Risk
Replies: 45
Views: 10530

Re: Jason Zweig Article on Shallow & Deep Risk

Whether folks like it or not, the idea to buy and/or rebalance on an RBD is a way to fight against the behavioral risk of panicking when the shallow risk of a drop in stocks happens. Isn't this just another way of saying "don't panic"? RBD re-balancing is too much active management for my...
by JoMoney
Sat Jul 27, 2013 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: ER Impact: Low vs. Lower
Replies: 11
Views: 1192

Re: ER Impact: Low vs. Lower

... There is a convenience factor involved with maintaining everything inside my 401K's base offerings and I don't want to be moving things around needlessly , but the difference in return seems to suggest venturing into the brokerage window in this case. Am I missing something? Are there any "...
by JoMoney
Sat Jul 27, 2013 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Help me invest
Replies: 10
Views: 1188

Re: Help me invest

... Wife, kids, house?? Have you even met the possible wife/mother yet? I'd say stay single, but I've been burned a couple times by marriage. So, my view and advice is slightly tilted there. But, I wouldn't start necessarily saving for things that you don't know if they will even happen or not. The...
by JoMoney
Sat Jul 27, 2013 3:25 pm
Forum: Personal Consumer Issues
Topic: Your take on layaway
Replies: 40
Views: 3171

Re: Your take on layaway

Tell us more. Are there statistics and percentages behind that, or, at least press reports and personal knowledge... or is it just your surmise? Google News: "Your search - predatory layaway - did not match any news results." Google News: "Your search - layaway criticism - did not ma...
by JoMoney
Sat Jul 27, 2013 2:41 pm
Forum: Personal Consumer Issues
Topic: Your take on layaway
Replies: 40
Views: 3171

Re: Your take on layaway

I would consider layaway a better option then buying on credit. But most people would be better off saving up seperately and then making the purchase. What happens if there is a sale somewhere else while you're still paying on the layaway? For the "un-banked" in our country they may not ha...
by JoMoney
Sat Jul 27, 2013 2:26 pm
Forum: Investing - Theory, News & General
Topic: Ramsey Reforming?
Replies: 15
Views: 3008

Re: Ramsey Reforming?

I have always heard from people who push load funds is that they are better off in the long run paying a one time commission than a percentage of assets and that load funds themselves have lower ERs. While this could be the case under certain situations this is never a reality. Its really just a lo...