Search found 1321 matches

by momar
Sat Jan 14, 2012 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate Advice
Replies: 26
Views: 2092

Re: Real Estate Advice

How do you know where she will get a job as a PhD?

I say that as someone who has a PhD and is married to another PhD, and knows many many PhDs and PhD/PhD couples.

The job market can be extremely limited as far as where you can find one, especially if you have two people who are both dedicated to their careers.
by momar
Sat Jan 14, 2012 7:42 pm
Forum: Investing - Theory, News & General
Topic: Junk Bonds have outperformed Stocks
Replies: 155
Views: 12461

Re: Junk Bonds have outperformed Stocks

What are peoples' opinions on HY in a rising rate environment?

I'm not worried about my TBM holding if and when rates ever start to rise, but I have read a few places that HY/junk will perform better in that kind of circumstance.
by momar
Sat Jan 14, 2012 5:01 pm
Forum: Personal Consumer Issues
Topic: How many Bogleheads pay for cell phone data packages?
Replies: 21
Views: 1835

Re: How many Bogleheads pay for cell phone data packages?

I find having data makes any trips out of town far better and easier. Now I always have directions wherever I want, even if I'm walking around, I can find the best restaurants/cafes/bars (the Yelp app is probably what I use the most), and I don't bring a computer with me on any trips unless I HAVE to have it for work (rare).

I agree with those that the value is less when at home, although it helps me get through some a lot of boring periods at work where I would otherwise have to just sit in front of something waiting.
by momar
Sat Jan 14, 2012 4:50 pm
Forum: Investing - Theory, News & General
Topic: Will There Ever Be Another 1990s?
Replies: 32
Views: 3327

Re: Will There Ever Be Another 1990s?

Ah, the glorious 90s! Lessee... Peace dividend from winning the cold war (paid for by 4 decades of prior sacrifice). Oil "glut" drives prices to lows that would not have been believed a decade earlier. Outsized generation (boomers) in their peak earning (and spending?) years. Computer technology doubles in power every 18 months driving productivity revolution. Stock market bubble appears to erase deficits and makes pension funds appear solvent by projecting outsized gains forward. Now, how many of these tailwinds do you think we can conjure up for the 2010s? Peace dividend from the draw downs in Iraq and Afghanistan Photovoltaic technology drives renewable energy prices below that of coal before the end of the decade Outsized gen...
by momar
Sat Jan 14, 2012 4:25 pm
Forum: Investing - Theory, News & General
Topic: Junk Bonds have outperformed Stocks
Replies: 155
Views: 12461

Re: Junk Bonds have outperformed Stocks

Well I'm not an expert on these accounting type things but I don't think its that simple say the fund buys a bond at 95 and it gets called at 100. I don't think that 5 gain gets accounted for as interest. It goes towards the funds NAV somehow I think I guess I don't think the 1.3% tells you anything about the default rate. It's related to it but in a way that's not clear to me. cheers, RIght. If you buy a bond at 95 and it gets called the next day at 100, you have immediate gain of 5. NAV would go up a little. (Assuming it was only 1 of the 363 bonds held by the fund.) Likewise, buy at 105 and it gets called at 100, immediate loss of 5. NAV would go down a little. As the other poster said, the 1.3% is the net erosion over some periods, per...
by momar
Sat Jan 14, 2012 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Suze Orman Prepaid MasterCard card?
Replies: 60
Views: 5765

Re: Suze Orman Prepaid MasterCard card?

You guys haven't heard of places in the country that are "food deserts"? By which I mean, there are no grocery stores. People eat fast food or buy their groceries at a convenience store.

If there's no grocery store, which is something that sells something people have to have to live, how many banks do you think there are?
by momar
Sat Jan 14, 2012 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Here is my Refi so far with NMA
Replies: 11
Views: 1037

Re: Here is my Refi so far with NMA

This is almost the exact deal I got. Mine started in late November and closed in mid December.

I think you could do a little better shopping around; looking at Google finance, there are a few loans available for no points and similar fees at 3.625%, and LOTS of places are showing 3.75%.
by momar
Fri Jan 13, 2012 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: re-financing advice
Replies: 9
Views: 1412

Re: re-financing advice

Funny. I must have gotten a half dozen letters from BoA begging me to call them and stay with them for my recent refi once they got an inquiry from another lender about the payoff balance. I would expect yoy will find the same thing.
by momar
Fri Jan 13, 2012 7:25 pm
Forum: Investing - Theory, News & General
Topic: What fund(s) do you have in your Roth IRA?
Replies: 40
Views: 5481

Re: What fund(s) do you have in your Roth IRA?

One key point I think that has not been mentioned is that because the Roth withdrawals are tax free, it is better to put higher return assets into it rather than the 401k. It hasn't been mentioned because it's a fallacy. It's been discussed thoroughly in other threads. Link? Or brief explanation? Wiki article link: Tax-Adjusted Asset Allocation TL;DR: If you are in a 25% tax bracket and pay $3000 out of pocket to put $3000 in your Roth IRA, or $4000 in your 401(k) which will lose 25% to taxes when you withdraw it, you will get the same after-tax return. No, the point is somewhat different. Your example is valid for cases where one is not maximizing contributions to both vehicles. If one is maxed out, though, it doesn't matter. It only matt...
by momar
Fri Jan 13, 2012 7:18 pm
Forum: Investing - Theory, News & General
Topic: What fund(s) do you have in your Roth IRA?
Replies: 40
Views: 5481

Re: What fund(s) do you have in your Roth IRA?

One key point I think that has not been mentioned is that because the Roth withdrawals are tax free, it is better to put higher return assets into it rather than the 401k. It hasn't been mentioned because it's a fallacy. It's been discussed thoroughly in other threads. Link? Or brief explanation? edit: I found a thread where you posted Compounding, you're making a common error. A mathematical model is only valid if you apply your assumptions consistently throughout. In this case you are assuming a tax rate on TIRA withdrawals. For your model to be valid, you have to apply that tax rate to your Asset Allocation. For example, if you assume a 25% tax on withdrawals, you have to discount your TIRA holdings by 25% in making your AA. If you do t...
by momar
Fri Jan 13, 2012 4:15 pm
Forum: Investing - Theory, News & General
Topic: What fund(s) do you have in your Roth IRA?
Replies: 40
Views: 5481

Re: What fund(s) do you have in your Roth IRA?

For the last two years (since I started investing), I've been putting my $5k per year IRA limit into VGSLX - Vanguard REIT Index Adm . It's done ok, but now I'm reaching my allocation for REITs, so I'm wondering which funds I should switch to. Thinking of moving some of my bond allocation from my 401k to the Roth IRA (and switching those dollars in the 401k to equities, since it has a lot of institutional class equities with low ERs). Right now, ALL of my bond allocation is in PTTRX - PIMCO Total Return Instl 401k. My AA is 73/27, so literally 27% of my portfolio is in PTTRX. 1) Is tax efficiency the same for 401k and Roth IRA? Is it ok if I move my bond allocation from 401k -> IRA? 2) What funds do you have in your Roth IRA? 3) What's the...
by momar
Thu Jan 12, 2012 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: yes another mortgage question
Replies: 8
Views: 1011

Re: yes another mortgage question

No cost loans either add the extra costs to your principal or give you a slightly higher rate. They aren't "no cost" except in the sense that you don't have to pay up front. Whether it is worthwhile to get a no cost loan depends on how long you will stay in the house; you can find calculators that will give you the break even point between a lower rate with upfront fees and a higher rate with nothing up front. I disagree with this. If you can get a mortgage rate with no upfront costs on your existing balance that is lower than your current mortgage rate then it is indeed worthwhile to take that rate. Obviously I am ignoring the time, effort, and paperwork requirements. I didn't say it wasn't. Obviously if it costs you nothing, do...
by momar
Thu Jan 12, 2012 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: yes another mortgage question
Replies: 8
Views: 1011

Re: yes another mortgage question

No cost loans either add the extra costs to your principal or give you a slightly higher rate.

They aren't "no cost" except in the sense that you don't have to pay up front. Whether it is worthwhile to get a no cost loan depends on how long you will stay in the house; you can find calculators that will give you the break even point between a lower rate with upfront fees and a higher rate with nothing up front.
by momar
Thu Jan 12, 2012 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: 3.875% mortgage or keep looking?
Replies: 10
Views: 1365

Re: 3.875% mortgage or keep looking?

Don't rely on the fees they quote online; get a real estimate.
by momar
Thu Jan 12, 2012 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: 3.875% mortgage or keep looking?
Replies: 10
Views: 1365

Re: 3.875% mortgage or keep looking?

I assume he doesn't mean closing costs on the house, he means the fees and possibly points on the loan. You need to get a GFE; there are potentially thousands of dollars that you will have to pay.

I would shop around. For example, right now Google is showing 3.625% loans with no points and a thousand in fees and 3.75% loans with no fees or points.

3.875% with no points is not a discount.
by momar
Thu Jan 12, 2012 12:14 am
Forum: Investing - Theory, News & General
Topic: Junk Bonds have outperformed Stocks
Replies: 155
Views: 12461

Re: Junk Bonds have outperformed Stocks

Thanks for taking the time to do that.
by momar
Thu Jan 12, 2012 12:10 am
Forum: Personal Finance (Not Investing)
Topic: Mom has pension & $200k --> pay off mortgage? Get annuity?
Replies: 31
Views: 3032

Re: Mom has pension & $200k --> pay off mortgage? Get annuit

She already has a significant fixed stream of income that more than covers he living expenses. I would pay off the house, further reducing her expenses, and then invest the additional money each month to keep up with inflation later in her retirement.

If you annuitize any of it, isn't she just going to end up with an even bigger surplus? She already has $1500 extra per month; if she pays off the house it will be upwards of $2500. Why would she need an additional income stream right now?
by momar
Wed Jan 11, 2012 11:17 pm
Forum: Personal Investments
Topic: Any thoughts on REITs?
Replies: 18
Views: 2541

Re: Any thoughts on REITs?

mediahound wrote:
bombcar wrote:According to http://www.obliviousinvestor.com/reits-are-stocks/
REITs Are Included in Total Market Funds

While my portfolio does not include a REIT-specific fund, it does still include REITs. REITs are included in broad “total stock market” index funds in proportion to their market weight — just like stocks from every other market sector.

REITs are included in many other stock index funds as well. For instance, as of last year, the S&P 500 included 15 different REITs.
Interesting. So what percentage of the Vanguard Total Stock Market Index Fund is REITs?
http://www.bogleheads.org/wiki/Percenta ... ndex_Funds

Man, the wiki has EVERYTHING!
by momar
Wed Jan 11, 2012 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Found $100 Bill at Walmart
Replies: 161
Views: 19263

Re: Found $100 Bill at Walmart

pcola2234 wrote:That's impossible, if it was really a $100 bill it wouldn't have been on the floor, or at least that's what my economics textbook taught me :lol:
What are you talking about?

Free lunches exist, just not for very long as they are just picked up right away. Now the information has spread throughout the world, so if you or I went to that Wal Mart to find $100 on the ground it wouldn't have been there.

In short, don't quit your day job to pick up $100 bills at this Wal Mart; it's highly unlikely you'll beat the market.
by momar
Wed Jan 11, 2012 10:01 pm
Forum: Investing - Theory, News & General
Topic: Net Worth by Age [and plot]
Replies: 152
Views: 13697

Re: Net Worth by Age [and plot]

I see we have a polygamist in our midst!
by momar
Wed Jan 11, 2012 9:31 pm
Forum: Investing - Theory, News & General
Topic: Junk Bonds have outperformed Stocks
Replies: 155
Views: 12461

Re: Junk Bonds have outperformed Stocks

A Devout Indexer wrote: HY has a positive correlation to stocks AND bonds with high risk (hence the portfolio shortcomings). But I'll run some more sims. What is a typical boglehead portfolio youd like modeled?
I would say a reasonable comparison would be

35% TSM
21% TISM
7% REIT
7% SCV
15% TBM
15% TIPS

vs

35% TSM
21% TISM
7% REIT
7% SCV
12% TBM
12% TIPS
6% HY
by momar
Wed Jan 11, 2012 9:27 pm
Forum: Investing - Theory, News & General
Topic: Junk Bonds have outperformed Stocks
Replies: 155
Views: 12461

Re: Junk Bonds have outperformed Stocks

One owns bonds because they have a lower correlation to equities than other equities. That is, bonds are supposed to zig when stocks zag and vice versa. And while all this zig-zagging is going on, they are supposed to give one a nice return for the risk level associated with them. SNIP Whenever someone asks "Junk bonds, time to get in?", I say the time to get into junk bonds is the same time to get into stocks. The time to get out of junk bonds is the same time to get out of stocks. Do you see that instead of zig-zagging, you are zig-zigging and zag-zagging? Is that really the point? It seems to me that stocks do a lot of both zigging and zagging, but bonds mostly zig and rarely zag. And when they do zag, they barely zag. Or is t...
by momar
Wed Jan 11, 2012 9:15 pm
Forum: Personal Consumer Issues
Topic: Which to buy? Costco wild blueberries OR rasberry/blueberry/
Replies: 10
Views: 3608

Re: Which to buy? Costco wild blueberries OR rasberry/bluebe

HelenaJustina wrote:I found the three berry mix unpleasantly seedy. I was using them from frozen for smoothies, so maybe it was just my sub-par blender, but we did not finish the bag. Costco did take them back 8-)

I can recommend the frozen strawberries....

-HJ
It's a good thing you didn't try that at Joe's.
Image
by momar
Wed Jan 11, 2012 9:12 pm
Forum: Investing - Theory, News & General
Topic: Junk Bonds have outperformed Stocks
Replies: 155
Views: 12461

Re: Junk Bonds have outperformed Stocks

A Devout Indexer, I haven't missed your posts. However, I would be more interested in what happens when HY is added to the bond allocation in a typical BH type portfolio consisting of TSM/TISM/SCV/REIT/TBM/TIPS, rather than comparisons between equity/bond portfolios with the bond portion made up of one type of bond, or how a HY tilt compares to a SCV tilt. I am also extremely curious as to what Rick Ferri has to say, although he seems to not want to add more. HY has almost a 0 correlation to other bonds and around a 0.6 correlation to equities, AFAIK. So I am not convinced it doesn't have a place. I have seen data that adding it to an all bond portfolio consisting of Vanguard ST IG, GNMA, and LT IG results in no loss of return with an impro...
by momar
Wed Jan 11, 2012 9:01 pm
Forum: Investing - Theory, News & General
Topic: Junk Bonds have outperformed Stocks
Replies: 155
Views: 12461

Re: Junk Bonds have outperformed Stocks

555 wrote:
555 wrote:I don't know who has the right data and conclusions. But it's reasonable to believe that the price of an asset will adjust to a level so that at least it's suitable for some investors. Different investments may favor different investor based on things such as taxable vs tax-sheltered, long term vs short term, individual vs institution vs endowment, what else is in ones portfolio, etc.
So the question is, who are high yield bonds for?
The conversation's still going. I'll bump this question, if anyone has some ideas.
Perhaps bond only investors, as a way to diversify due to the low correlation to other bond types.
by momar
Wed Jan 11, 2012 8:00 pm
Forum: Personal Consumer Issues
Topic: Which to buy? Costco wild blueberries OR rasberry/blueberry/
Replies: 10
Views: 3608

Re: Which to buy? Costco wild blueberries OR rasberry/bluebe

dm200 wrote: The wild blueberries bag claims more antioxidants in these wild blueberries than any of other types of berries (including cultivated blueberries). The price is about 9% less than the mix. However, I also lean towards diversification of the three berry mix.
Haven't you heard? Antioxidants are bad for you now.

Go with what tastes better. Studies show high correlation between all types of berries, so there is no added benefit to diversification between classes.
by momar
Tue Jan 10, 2012 9:49 pm
Forum: Personal Investments
Topic: What's wrong with this idea?
Replies: 46
Views: 3865

Re: What's wrong with this idea?

Imagine you were looking at this chart in 2000.
Image

And that's not even that bad! Imagine looking at this one in 2006!
Image
by momar
Tue Jan 10, 2012 9:02 pm
Forum: Investing - Theory, News & General
Topic: Marketwatch: Stocks will beat bonds over next 20 yrs
Replies: 13
Views: 1901

Re: Marketwatch: Stocks will beat bonds over next 20 yrs

jeffyscott wrote:from the article:
If interest rates climb in future years, as is likely from today’s very low levels, the prices of existing bonds with lower rates will fall. The impact may be felt more keenly by holders of bond mutual funds and exchange-traded funds than by investors who have bought individual bonds.
Okay then, I'm gonna trade in my short term bond fund on some individual 30 year treasury bonds, that should mean I will avoid "feeling that impact more keenly".
We all know that bond mutual funds don't actually hold bonds, so of course this makes sense. :roll:
by momar
Tue Jan 10, 2012 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: Am I setting up my budget right?
Replies: 20
Views: 2238

Re: Am I setting up my budget right?

kiligi wrote:I would push my 401(k) contribution way up as that can actually give you more take home pay in certain circumstances (reducing your taxable income enough to drop you down in brackets)
Please explain, because in general this is not how income tax works. People are not taxed at their marginal rate on their entire income.
by momar
Tue Jan 10, 2012 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Am I setting up my budget right?
Replies: 20
Views: 2238

Re: Am I setting up my budget right?

CityOfAngels wrote:
momar wrote:For figuring your effective tax rate, have you included
1) Deductions (standard deduction, health insurance and other benefits, 401k, state/local taxes, etc)
2) State and local taxes
3) Payroll taxes
4) Medicare taxes
5) Marginal nature of income taxes (ie: 0% up to 8500, 10% on the next 26000 and so on)
I just did 25% Federal + 9.3% State (CA). I guess I need to get my first paycheck to calculate 1-4?
That's the easiest way to do it. Just set your 401k contribution to what you want (I recommend more than 6%!), and then figure everything else based on your first paycheck.
by momar
Tue Jan 10, 2012 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: Am I setting up my budget right?
Replies: 20
Views: 2238

Re: Am I setting up my budget right?

For figuring your effective tax rate, have you included
1) Deductions (standard deduction, health insurance and other benefits, 401k, state/local taxes, etc)
2) State and local taxes
3) Payroll taxes
4) Medicare taxes
5) Marginal nature of income taxes (ie: 0% up to 8500, 10% on the next 26000 and so on)
by momar
Tue Jan 10, 2012 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Am I setting up my budget right?
Replies: 20
Views: 2238

Re: Am I setting up my budget right?

CityOfAngels wrote:
schnoodlemom wrote: medical expense - don't think there would be any because of my insurance. maybe on a rare circumstance.
Nothing is free when it comes to insurance. Deductibles, co-pays, uncovered expenses...
by momar
Tue Jan 10, 2012 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Am I setting up my budget right?
Replies: 20
Views: 2238

Re: Am I setting up my budget right?

If you're trying to figure this out for your future job, you are likely way off on your effective tax rate as well.
by momar
Tue Jan 10, 2012 7:47 pm
Forum: Personal Investments
Topic: No More Vanguard 403(b)
Replies: 8
Views: 1450

Re: No More Vanguard 403(b)

What's wrong with Fidelity? They offer many low cost funds; what are your options there?
by momar
Tue Jan 10, 2012 1:27 am
Forum: Personal Consumer Issues
Topic: Bike riders with no lights at night
Replies: 60
Views: 4087

Re: Bike riders with no lights at night

roymeo wrote: This is taking it to an absurd level, but I'm sure there's some 'cager' out there who thinks I belong on the sidewalk. I know I'm vulnerable and I'm being ridiculous in reaction--I shouldn't need to do this to feel safe.
I've always felt much less safe on the sidewalk. Yeah, cars turn into you on the road because they don't see you. But they REALLY don't see you when you are on the sidewalk.

And if it's in an area with lots of driveways or parking lot entrances? Death trap.
by momar
Mon Jan 09, 2012 10:11 pm
Forum: Personal Consumer Issues
Topic: Bike riders with no lights at night
Replies: 60
Views: 4087

Re: Bike riders with no lights at night

I used to drive to the grocery store about twice a week, around midnight, and would frequently see an occasional bicyclist or two without a headlight. Almost none of them ever had a headlight or taillight. They do not wear reflective or bright colored. They do not dress like serious bicycle enthusiasts, with bicycling outfits. This is in a city of about 40,000 people. It occurs here both on the poorly light semi-rural suburban edges of town and also downtown. I would see them going along major 40 MPH roads, and also off on side streets. Frequently, this is on dark 40 MPH roads streets on the edge of town where the streets do not have bicycle lanes. This is at around midnight without lights. I always wondered who are there people? What are ...
by momar
Mon Jan 09, 2012 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford to buy this home?
Replies: 126
Views: 17514

Re: Can I afford to buy this home?

tea_lover wrote:
momar wrote:tea_lover, do you really want anyone's opinion if it is not in the affirmative? It seems as if you are searching for validation of a decision you have already made but aren't comfortable with.
I appreciate everyone's opinions. I just see some things differently than most people - I don't want kids, and I'm unsure about marriage even. I'd be fine with no marriage and having 1 partner the rest of my life, or being single the rest of my life. I'm easy going like that.
I mean the house.
by momar
Mon Jan 09, 2012 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford to buy this home?
Replies: 126
Views: 17514

Re: Can I afford to buy this home?

tea_lover, do you really want anyone's opinion if it is not in the affirmative? It seems as if you are searching for validation of a decision you have already made but aren't comfortable with.
by momar
Sun Jan 08, 2012 6:40 pm
Forum: Investing - Theory, News & General
Topic: Adjustable Rate Mortgages--good or bad?
Replies: 36
Views: 4116

Re: Adjustable Rate Mortgages--good or bad?

pkcrafter wrote: Fixed loans at today's rates is a once in a lifetime opportunity.
That's what I thought when I got a 4.875% 30 year about 2 years ago. Then again a year ago when I refi'd into a 4.5% one. Then a month and half ago when I went into a 3.875% one. Now they are showing up as low as 3.625%.
by momar
Thu Jan 05, 2012 12:02 am
Forum: Personal Finance (Not Investing)
Topic: Best Credit Cards, 2012 edition
Replies: 30
Views: 4892

Re: Best Credit Cards, 2012 edition

The old Amex Blue Cash has been split into Blue Cash Everyday and Preferred, which don't have the two tiers of rewards.

I am pretty sure that you can stay in the old program and you have to opt for one of the new cards; they were sending me an email every week before I changed, but nothing that said I HAD to change.

The new system seems much better, both for low and high spenders, although I guess it's possible that someone was spending 20k on gas and will be screwed.
by momar
Tue Jan 03, 2012 11:35 pm
Forum: Investing - Theory, News & General
Topic: An Inside Look at Target Retirement Funds
Replies: 62
Views: 11121

Re: An Inside Look at Target Retirement Funds

I just noticed Larry Swedroe's perspective: But the purpose of rebalancing is to control risk, not increase returns, and that thus in world of no costs the only rational strategy is to rebalance daily. But we do have costs so we don't rebalance daily. And time is even a cost By that measure -- however exactly Vanguard makes it happen -- the TRF and LifeStrategy funds almost certainly handle rebalancing better than we could if we invested in their underlying broad index funds. Checking the full 2011 returns tonight, TR2020 outperformed its target asset allocation even if implemented using 0.06% ER less expensive Admiral funds by +0.60% versus +0.24% in 2011. (Even that bonus 0.34% in realized return looks to be ~0.3% less than the final 201...
by momar
Tue Jan 03, 2012 10:17 pm
Forum: Investing - Theory, News & General
Topic: Most Advisors Say they Can Beat the Market
Replies: 43
Views: 3600

Re: Most Advisors Say they Can Beat the Market

Brody wrote: Steve, it sounds to me like you had an investment advisor as opposed to a financial advisor. The value in what a good advisor brings isn't in superior stock/fund picking. It's more than just discipline and it's more than just avoiding dumb mistakes. As an example, it could be something as simple as twisting your arm with each pay raise to invest the money instead of spending it.
So in exchange for them getting people to invest an extra percent or two of their salary every year, they take a percent or two of the person's entire portfolio every year.

Got it.
by momar
Tue Jan 03, 2012 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: Best Credit Cards, 2012 edition
Replies: 30
Views: 4892

Re: Best Credit Cards, 2012 edition

AMEX Blue Cash Preferred

$75 fee, but
1% cash back on everything
3% on gas and department stores
6% on groceries

You can redeem with as little as $25.
by momar
Tue Jan 03, 2012 7:35 pm
Forum: Personal Investments
Topic: CD
Replies: 7
Views: 959

Re: CD

by momar
Tue Jan 03, 2012 12:21 am
Forum: Personal Investments
Topic: Wisdom for a high income family
Replies: 131
Views: 19882

Re: Wisdom for a high income family

I feel your pain - living in the bay area making a mill a year really is only upper middle class - it seems the nice thing about being a doc is that the income is pretty much guaranteed (unless you start using the patients drugs or similiar). Some of us tech types may have higher incomes but they can disappear as quickly as they started - so I save 65% net thanks for the confirmation. the perspective is a bit skewed living in the bay area. I'll say. There are lots of wealthy people in the Bay Area. Just because some have more than you doesn't mean you are merely average or upper middle class. A million dollar income puts you in the top 0.3% of earners in the United States. If that qualifies you as either average or part of the upper middle...
by momar
Tue Jan 03, 2012 12:04 am
Forum: Investing - Theory, News & General
Topic: "Investment" Minimum Doubling: Powerball Tix $2
Replies: 13
Views: 1564

Re: "Investment" Minimum Doubling: Powerball Tix $2

I don't buy lottery tickets, but the claim that "it's a tax on people who can't do math!" always strikes me as a bit silly. A $2 bet to win $10m isn't more unreasonable than a $2 bet to win $300m, even if the odds are the same. That is to say, it's a small bet to win a life altering amount of money in either case. When the prize is so big and the price so low, I don't think mathematics of "expected winnings" comes into it.
by momar
Mon Jan 02, 2012 11:34 pm
Forum: Investing - Theory, News & General
Topic: Reason to not buy Target Retirement type funds?
Replies: 2
Views: 610

Re: Reason to not buy Target Retirement type funds?

Yes, you are correct.

The other reason is that if you have multiple accounts due to work place savings plans (having a spouse complicates it even more), they might not offer the same choices. So it can be easier to split everything out into the individual funds. You might even be able to lower your expenses by doing this.

For example, because the expense ratios differ across our IRAs/taxable, 401k, and 457 I split everything up to create the lowest effective expense ratio, currently at 0.06000752% and dropping due to the lowest expenses being in our fastest growing account :sharebeer
by momar
Mon Jan 02, 2012 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: financial situation: girlfriend/boyfriend moving in together
Replies: 5
Views: 849

Re: financial situation: girlfriend/boyfriend moving in toge

If you are both uncomfortable with a landlord/renter arrangement, you may be more comfortable by splitting responsibility for the expenses. Depending on how large the mortgage is, you may consider paying the monthly utilities, internet, television, and phone bills. If that is not enough, consider paying for the groceries. If that is not enough, consider paying for any vacations. You get the idea.

The effect is ultimately no different, but psychologically some people may be more comfortable with this sort of arrangement.
by momar
Mon Jan 02, 2012 9:42 pm
Forum: Personal Investments
Topic: Advice on revising IPS for US / International split
Replies: 30
Views: 2055

Re: Advice on revising IPS for US / International split

I agree that it is reasonable to reassess your IPS from time to time. There is no reason the decision you made years ago is appropriate for you now, or that you haven't learned more in the mean time.

HOWEVER, I would advise you to seriously consider whether you would be considering revising your IPS if instead of drifting to 69/31, your portfolio had drifted to 51/49. Would you then be considering revising your allocation to 70/30?

If not, then this decision is clearly driven by recent results, not a philosophical change.
by momar
Mon Jan 02, 2012 9:29 pm
Forum: Personal Investments
Topic: Old Lady wants to Retire!
Replies: 27
Views: 4567

Re: Old Lady wants to Retire!

Susie wrote:
stan1 wrote:Can you refi the condo mortgage? 5.5% is pretty high even if you are planning to pay off the loan in a few years.
I don’t believe that with closing costs it would be cost beneficial to refinance when I can pay off my mortgage ($710 mo.) in a year or two.
You can get a no-cost refi by accepting a slightly higher rate, probably around 4.125% for a 30 year or 3.5% for a 15 year right now. Those are just guesses based on where rates are. But you can almost certainly get a much, much better rate without paying anything.