Search found 13505 matches

by Rodc
Fri Jan 13, 2017 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Stay in paid-off starter house vs. dream house+work a few more years
Replies: 51
Views: 4184

Re: Stay in paid-off starter house vs. dream house+work a few more years

You are living on $350K a year. 25 x $350K = $8,750,000. You want to retire rather young so 25x is likely not enough to maintain your lifestyle. Now at some point the kids leave home and maybe income needs go down, but then you need a good sized pot of money for college in addition so maybe that is ...
by Rodc
Fri Jan 13, 2017 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Let's say you are dying this year
Replies: 48
Views: 9050

Re: Let's say you are dying this year

My first thought was with one year to live they ought to focus on living. But like your father, knowing how I react to things, I would probably find something like this to focus on as well. Rather than focus is squeezing out every penny, how about making sure everything is in place to make this as e...
by Rodc
Fri Jan 13, 2017 2:45 pm
Forum: Personal Consumer Issues
Topic: How much do you typically spend in a restaurant?
Replies: 171
Views: 13619

Re: How much do you typically spend in a restaurant?

squirm wrote:We'll usually just exchange plates when half way done. She'll get the rest of the salad and I get the rest of the entree.
Yuck.

That is so unsanitary.
by Rodc
Fri Jan 13, 2017 11:30 am
Forum: Personal Consumer Issues
Topic: downhill skiing
Replies: 32
Views: 2924

Re: downhill skiing

If lift tickets have you down you can look into the alternatives- ski touring (cheaper) and cat/heli skiing (more expensive). Yes. Years ago in graduate school price got to be too much, and the crowds were no fun either. Was living in Boulder. Picked up used back-country gear and headed into the hi...
by Rodc
Fri Jan 13, 2017 11:21 am
Forum: Investing - Theory, News & General
Topic: "Millennials may need to double how much they save for retirement"
Replies: 173
Views: 20530

Re: "Millennials may need to double how much they save for retirement"

401ks are also not very attractive because of the high fees. At $5,500 (and $11,000 for a couple) anyone making less than $60k (or $120k for a couple) can use IRAs, and use the 401k only for whatever meager match is offered, and probably wind up over a 15% savings rate. Personally, that is exactly ...
by Rodc
Fri Jan 13, 2017 11:17 am
Forum: Investing - Theory, News & General
Topic: "Millennials may need to double how much they save for retirement"
Replies: 173
Views: 20530

Re: "Millennials may need to double how much they save for retirement"

The first link seems to be based largely on high current valuations. Millennials should not care a hoot about current valuations since they have little invested now at these valuation and the majority of their new investments will take place in the future. One market crash and valuations will be res...
by Rodc
Fri Jan 13, 2017 6:41 am
Forum: Personal Finance (Not Investing)
Topic: Your Retirement Number, or, calculating the funding ratio
Replies: 199
Views: 32553

Re: Your Retirement Number, or, calculating the funding ratio

Excellent points. Nobody knows what tomorrow will bring, let alone next year. Any predictions what the stock market will do or if we are still alive in 20 years and what are needs would, are a crap shoot. That is why a funding ratio sets up a baseline which in my opinion gives you the most secure i...
by Rodc
Thu Jan 12, 2017 8:43 pm
Forum: Investing - Theory, News & General
Topic: Investing only after a market correction
Replies: 99
Views: 8653

Re: Investing only after a market correction

Someone else follows your idea... his name is William Bernstein. He calls it "overbalancing". You can see a blogger who follows Bernstein's strategy here and includes the quote from Mr. Bernstein: https://thefinancebuff.com/embracing-bear-market.html “Think of it this way: even the most devout effi...
by Rodc
Thu Jan 12, 2017 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: [Redemptions missing from Treasury Direct Account]
Replies: 20
Views: 1511

Re: Fraud in Treasury Direct Account

boater07 wrote:I am so embarrassed. Found the money in our matched bank account. I'd forgotten that is how redemptions work.
Checked it and there were the funds :oops:
I'm now ready to check into local mental health as I have no recollection of the transaction.

So sorry for having stirred this up.
:sharebeer
by Rodc
Thu Jan 12, 2017 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 320
Views: 32450

Re: Annual Vacation Budget

For me, it isn't a dollar value, but more an experience value. I'd often rather camp on an uninhabited island than stay in a fancy hotel for 40x the price. Studies have shown that real, lasting happiness is derived from experiences, not "things". The joy of a new car quickly fades, much more and so...
by Rodc
Thu Jan 12, 2017 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: Inquiring about family finances?
Replies: 46
Views: 4587

Re: Inquiring about family finances?

I guess this begs another question that I've wondered about lately: Why is it so awkward and uncommon to discuss finances? Don't you think this is part of the reason why most people don't know much about saving, financial management, retirement planning etc? It's virtually all self-learned. My dad ...
by Rodc
Thu Jan 12, 2017 8:15 pm
Forum: Personal Consumer Issues
Topic: How much do you typically spend in a restaurant?
Replies: 171
Views: 13619

Re: How much do you typically spend in a restaurant?

Teenagers can eat their weight in sushi - very expensive! So we have not done that in quite a while. You may want to read this before you head out for sushi next time.......http://www.cnn.com/2017/01/11/health/salmon-tapeworm-food-study/index.html But D. latum and related species (including the Jap...
by Rodc
Thu Jan 12, 2017 8:06 pm
Forum: Personal Consumer Issues
Topic: Keeping kitchen knives sharp
Replies: 54
Views: 5814

Re: Keeping kitchen knives sharp

Anybody have any thoughts on how to sharpen a small bird's beak knife like this one: https://st.hzcdn.com/simgs/3b91118504cfddef_8-3088/traditional-paring-knives.jpg Flat stones just don't work. Need some sort of small diameter rods I guess. Something like this: http://woodworker.com/small-diamond-...
by Rodc
Thu Jan 12, 2017 7:56 pm
Forum: Investing - Theory, News & General
Topic: Help with Retirement Projection Assumptions
Replies: 35
Views: 4379

Re: Help with Retirement Projection Assumptions

Congrats on approaching your financial goals at 45. You're clearly doing well for yourself! You're free to make assumptions, and a spreadsheet will demand it, but any good plan will have flexibility and contingency plans if the assumptions turn out to be wildly inaccurate. Some of them will -- perh...
by Rodc
Thu Jan 12, 2017 7:45 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel says "Don't Buy Bonds"
Replies: 48
Views: 10077

Re: Burton Malkiel says "Don't Buy Bonds"

Maybe I'm missing a fundamental point, but... It's not clear to me why one would expect TIPS to hold up after a significant crash. I can't see the average investor thinking, "Hmmm, I really need some/more inflation protection, now that global stock markets have crashed." I don't think the conversat...
by Rodc
Thu Jan 12, 2017 7:40 pm
Forum: Investing - Theory, News & General
Topic: Investing only after a market correction
Replies: 99
Views: 8653

Re: Investing only after a market correction

I suggest the OP only buy stocks that are going to up in the near term. Sell them right before they drop. Ha!Ha!.... I suspect you didn't read the subject of my post and responding to the title alone? Title is that ridiculous but once you read the content, it's not that far out in la la land. You w...
by Rodc
Thu Jan 12, 2017 5:10 pm
Forum: Personal Consumer Issues
Topic: How much do you typically spend in a restaurant?
Replies: 171
Views: 13619

Re: How much do you typically spend in a restaurant?

What surprised me though is that the average cost per visit also increased from $60-70 to ~$95. Most meals out are for 2 adults, and the order usually includes 3 appetizers, 1 entree and 2-3 beers or cocktails. If we have the kids we usually go for sushi, and it adds up to the same average. So, wha...
by Rodc
Thu Jan 12, 2017 5:00 pm
Forum: Personal Consumer Issues
Topic: downhill skiing
Replies: 32
Views: 2924

Re: downhill skiing

There is no age limit for skiing if you a have the will power and love the sport. Yes you slow down and ski more carefully. But no one I know has stopped skiing due to age. My wife and I still ski every year for 20-30 days. We are over 70. Many of our friends are over 70, two others are over 80 and...
by Rodc
Thu Jan 12, 2017 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Inquiring about family finances?
Replies: 46
Views: 4587

Re: Inquiring about familiy finances?

I don't think you should ignore the topic completely; he's mentioning these things to you for a reason Most likely because he was proud of how well he is managing his money and/or because he wants the OP to learn by osmosis from him, not the other way around. After all he is successful and experien...
by Rodc
Thu Jan 12, 2017 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Predicting future Net Worth
Replies: 31
Views: 5423

Re: Predicting future Net Worth

Just take your portfolio now and multiple by (1 + rate)^10, add next years new money raised to the power (1 + rate)^9 years, do the same for the new money a year later times (1 + rate)^8, etc. Pick whatever rate you want, 2%, 4%, as you think you might get. Try a range to see what might happen (litt...
by Rodc
Thu Jan 12, 2017 3:00 pm
Forum: Personal Consumer Issues
Topic: Weight machine vs free weight
Replies: 64
Views: 5551

Re: Weight machine vs free weight

I thought that free weights were better because they allowed the body a free range of motion, instead of locking the body into a particular (and possibly unnatural) motion just to complete the rep. At least that's what the guy with the nicest body I know has told me. 8-) Don't listen to him. Listen...
by Rodc
Thu Jan 12, 2017 2:36 pm
Forum: Personal Consumer Issues
Topic: Weight machine vs free weight
Replies: 64
Views: 5551

Re: Weight machine vs free weight

I thought that free weights were better because they allowed the body a free range of motion, instead of locking the body into a particular (and possibly unnatural) motion just to complete the rep. At least that's what the guy with the nicest body I know has told me. 8-) Don't listen to him. Listen...
by Rodc
Thu Jan 12, 2017 2:33 pm
Forum: Personal Consumer Issues
Topic: downhill skiing
Replies: 32
Views: 2924

Re: downhill skiing

I am a relative youngster at 60. Rode up a lift with some guy way older than I am who said he skis every day. I'll add my own humble brag. Skied all day with four teen boys whose only idea was too ski top to bottom as fast as possible, and I only kept up on about half the runs, sometimes they had to...
by Rodc
Thu Jan 12, 2017 12:48 pm
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 7925

Re: Bogle says 50-50 short/intermediate bonds

Why not just go 100% semi-short? :)
by Rodc
Thu Jan 12, 2017 12:47 pm
Forum: Investing - Theory, News & General
Topic: Investing only after a market correction
Replies: 99
Views: 8653

Re: Investing only after a market correction

I suggest the OP only buy stocks that are going to up in the near term. Sell them right before they drop.
by Rodc
Thu Jan 12, 2017 12:46 pm
Forum: Investing - Theory, News & General
Topic: Investing only after a market correction
Replies: 99
Views: 8653

Re: Investing only after a market correction

Gilgamesh wrote: My question is, what if I decide to pay down debt. However, at the beginning of the month, if S&P 500 is down more than 10% from its high then invest in a S&P500 index fund. Do this until it either fully recovers or recovers to 5% of its all time high and then start paying down deb...
by Rodc
Thu Jan 12, 2017 12:21 pm
Forum: Investing - Theory, News & General
Topic: I'm just going to leave this here... [Should you rebalance your portfolio?]
Replies: 36
Views: 2816

Re: I'm just going to leave this here... [Should you rebalance your portfolio?]

But the result is at least intuitively correct. It is probably intuitively correct that if we took two portfolios over time both consisting of equities and bonds and did whatever kind of rebalancing or buy-and-hold or whatever to them, ... ... and computed the average daily allocation to equities (...
by Rodc
Thu Jan 12, 2017 11:24 am
Forum: Personal Consumer Issues
Topic: Keeping kitchen knives sharp
Replies: 54
Views: 5814

Re: Keeping kitchen knives sharp

I once went to an demonstration on the care of knives. It was held at a local store and the demo was given by a Henckels factory representative. His advice was not to use any abrasive method. He said that removes metal from the knives. He recommended using only a sharpening steel. He said that a st...
by Rodc
Thu Jan 12, 2017 11:03 am
Forum: Investing - Theory, News & General
Topic: I'm just going to leave this here... [Should you rebalance your portfolio?]
Replies: 36
Views: 2816

Re: I'm just going to leave this here... [Should you rebalance your portfolio?]

Wise then went on to derive an interesting formula for the probability that buy-and-hold will beat rebalancing in the very long run – that is, as time goes to infinity. The result is that if the average difference between constituent portfolio assets’ expected returns is small, less than about one ...
by Rodc
Thu Jan 12, 2017 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 320
Views: 32450

Re: Annual Vacation Budget

For me, it isn't a dollar value, but more an experience value. I'd often rather camp on an uninhabited island than stay in a fancy hotel for 40x the price. Studies have shown that real, lasting happiness is derived from experiences, not "things". The joy of a new car quickly fades, much more and so...
by Rodc
Thu Jan 12, 2017 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Inquiring about family finances?
Replies: 46
Views: 4587

Re: Inquiring about familiy finances?

For the most part, let it go. He almost certainly believes he can teach you more than you can teach him. What makes you think he wants your input? Most likely he does not. Why do you want to correct him? To show how smart you are? Because you are worried in 20 years he will be living in your baseme...
by Rodc
Thu Jan 12, 2017 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 320
Views: 32450

Re: Annual Vacation Budget

For me, it isn't a dollar value, but more an experience value. I'd often rather camp on an uninhabited island than stay in a fancy hotel for 40x the price. Studies have shown that real, lasting happiness is derived from experiences, not "things". The joy of a new car quickly fades, much more and so...
by Rodc
Thu Jan 12, 2017 9:11 am
Forum: Investing - Theory, News & General
Topic: Burton Malkiel says "Don't Buy Bonds"
Replies: 48
Views: 10077

Re: Burton Malkiel says "Don't Buy Bonds"

A challenge is we do not really know how TIPS would have done. We do know that TIPS can have negative real yield. We do not know how far negative the rates might go. I certainly hope they would have done better than nominal bonds, and I expect they would have, but I do not know that to be true and ...
by Rodc
Thu Jan 12, 2017 6:18 am
Forum: Investing - Theory, News & General
Topic: Burton Malkiel says "Don't Buy Bonds"
Replies: 48
Views: 10077

Re: Burton Malkiel says "Don't Buy Bonds"

A challenge is we do not really know how TIPS would have done. We do know that TIPS can have negative real yield. We do not know how far negative the rates might go. I certainly hope they would have done better than nominal bonds, and I expect they would have, but I do not know that to be true and ...
by Rodc
Wed Jan 11, 2017 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: Daring to figure it out for myself: Dare I retire this year?
Replies: 27
Views: 5973

Re: Daring to figure it out for myself: Dare I retire this year?

The ORP calculator seems to be very goofy. If I put in one person retiring at age 65 with $1M in tax deferred accounts it returns a median income after tax of $32,000. Looking at the 2017 US federal tax calculations that means a pretax income of about $36,000. Depending on the state which it did no...
by Rodc
Wed Jan 11, 2017 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 320
Views: 32450

Re: Annual Vacation Budget

In 2016, I spent 119 nights sleeping away from home, which included 59 nights in Spain, and on a different trip 21 nights in France, Poland and Czech Republic. My total travel expenses in 2016 were $13,563. Victoria Nice! I'm looking forward to being retired, ditch the kids and take trips when I ca...
by Rodc
Wed Jan 11, 2017 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Daring to figure it out for myself: Dare I retire this year?
Replies: 27
Views: 5973

Re: Daring to figure it out for myself: Dare I retire this year?

As to the i whatever simulation I suspect the problem is you assumed that stocks will return 5% and bonds 2%. I am guessing that is nominal in which case that is very pessimistic. Hi @Rodc, You are right, it is nominal. I hear a lot of chatter on this forum about how stocks and bonds are overvalued...
by Rodc
Wed Jan 11, 2017 7:32 pm
Forum: Investing - Theory, News & General
Topic: I'm just going to leave this here... [Should you rebalance your portfolio?]
Replies: 36
Views: 2816

Re: I'm just going to leave this here...

Well, I'm just going to leave this here, too: You have probably seen the hearsay that Fidelity did a study and found that investors who had died and thus no transactions for awhile had the best returns. This article is reminiscent of that, but ... No! No! No! That's not the study that Fidelity actu...
by Rodc
Wed Jan 11, 2017 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 320
Views: 32450

Re: Annual Vacation Budget

Wow... Im really taken back by some of the numbers being thrown around here. Where are you guys traveling??? I can go to St. John USVI for 2 weeks under $3,500. 8-) I don't think it's a matter of where but more like how often. I just went back to check my records for last year's travel spending. It...
by Rodc
Wed Jan 11, 2017 6:58 pm
Forum: Personal Consumer Issues
Topic: Keeping kitchen knives sharp
Replies: 54
Views: 5814

Re: Keeping kitchen knives sharp

I once went to an demonstration on the care of knives. It was held at a local store and the demo was given by a Henckels factory representative. His advice was not to use any abrasive method. He said that removes metal from the knives. He recommended using only a sharpening steel. He said that a st...
by Rodc
Wed Jan 11, 2017 6:45 pm
Forum: Personal Consumer Issues
Topic: Keeping kitchen knives sharp
Replies: 54
Views: 5814

Re: Keeping kitchen knives sharp

Supposedly there are three qualities in a knife of which you can have any two on a given knife: 1: sharpens easily 2: holds an edge 3: looks good, doesn't stain (like stainless steel) I use an earlier model of this: https://www.amazon.com/Chefs-Choice-120-Professional-Sharpener/dp/B00004S1B8/ Yes. ...
by Rodc
Wed Jan 11, 2017 6:07 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel says "Don't Buy Bonds"
Replies: 48
Views: 10077

Re: Burton Malkiel says "Don't Buy Bonds"

A challenge is we do not really know how TIPS would have done. We do know that TIPS can have negative real yield. We do not know how far negative the rates might go. I certainly hope they would have done better than nominal bonds, and I expect they would have, but I do not know that to be true and ...
by Rodc
Wed Jan 11, 2017 6:06 pm
Forum: Investing - Theory, News & General
Topic: Incremental retirement?
Replies: 11
Views: 1474

Re: Incremental retirement?

This might or might not be a fine idea depending on what you would do with the time. Sometimes a full time job is just too much of a grind, but working half time is great. Or you have some hobbies or volunteer work you really want to do and so you are willing to push our retirement as the trade for...
by Rodc
Wed Jan 11, 2017 4:36 pm
Forum: Investing - Theory, News & General
Topic: Incremental retirement?
Replies: 11
Views: 1474

Re: Incremental retirement?

Well, that depends. If you're spending 3/4 of your take-home pay annually, going half-time would cause you to run a deficit and deplete the savings you have built up. My model says otherwise. I wonder what the difference is? Do you account for investment returns during the accumulation phase? Or ha...
by Rodc
Wed Jan 11, 2017 4:24 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel says "Don't Buy Bonds"
Replies: 48
Views: 10077

Re: Burton Malkiel says "Don't Buy Bonds"

The referenced video was made in early 2011. He was a tad early in his predictions about rising interest rates as the Federal Reserve gradually unwinds its interest rate repression, as Malkiel call it. I have concerns about bonds as well. Going from memory here, but it seems that bonds lost about 5...
by Rodc
Wed Jan 11, 2017 4:18 pm
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 49522

Re: "Why 97% of People Don't Use 529 College Savings Plans."

To each their own. My priorities are different. Yep, I guess that's why it's "personal" finance :D Everyone's situation and preferences will be difference including funding a 529. I have a feeling both yours and my kids will be in pretty good shape when the time comes :sharebeer I sure hope so! :sh...
by Rodc
Wed Jan 11, 2017 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 320
Views: 32450

Re: Annual Vacation Budget

I am thinking the big buck vacations are from people wih family income> 200k. But maybe I am wrong. That may be largely true, but I have known people of modest means who live very frugally day to day for the express purpose of saving money to travel. Different people just value different things. So...
by Rodc
Wed Jan 11, 2017 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 320
Views: 32450

Re: Annual Vacation Budget

I think 'On the way to winning' is more than sufficient. I think on ones way to winning has more risk than having made it - depending on how far away it is. Therefore, I'd hedge my bets and get to the goal - rather than spend some of these numbers every year ($10k, $15k+). Hit the beach or the moun...
by Rodc
Wed Jan 11, 2017 1:37 pm
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 49522

Re: "Why 97% of People Don't Use 529 College Savings Plans."

How about a 529 versus paying down the mortgage? What are people's thoughts here? If you can pay off the mortgage before college it frees up cash flow that can go towards college. But otherwise if you do not have the funds on hand to pay for college you end up either taking out student loans, or a ...