Search found 1074 matches

by Engineer250
Fri Aug 05, 2016 8:18 pm
Forum: Personal Investments
Topic: How does a Boglehead save for child's education?
Replies: 144
Views: 17592

Re: How does a Boglehead save for child's education?

A) << Unless you mean to take money out of your own Roth, which I think is a terrible idea.>> B) <<That said, I did start a small 529 for my spouse (when they were at community college, in prep for university) even though I wasn't maxing out retirement. >> Engineer250, Why is that a bad idea? Taking money from Roth is a much better idea than (B). Aka, putting money into 529 when you did not max out your retirement account. (A) is better than (B). KlangFool I see what you mean and maybe didn't explain myself properly. I agree maxing out retirement should be a priority, and if you have to take money out of it later but avoiding the 529 let you max it out, it definitely makes sense. But I don't think you should contribute to a roth with the i...
by Engineer250
Fri Aug 05, 2016 8:08 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey over simplifying Roth vs. Traditional IRA?
Replies: 103
Views: 18971

Re: Dave Ramsey over simplifying Roth vs. Traditional IRA?

Engineer, to make the investments the same the Roth starts with $6250, but only 5k is actually invested. In the IRA $6250 is invested. Obviously, the accumulation in the IRA will grow to a much higher amount, and when there's withdraws (same tax bracket as when started) the amount on hand would be the same for each account. Paul Paul as you know the max you can contribute per year to either a Roth IRA or a Traditional IRA is $5500. So if one had > $5500 that extra amount doesn't get to go into an IRA. My math is assuming you have some quantity greater than $5500 to invest in an IRA and are just trying to make a decision of Roth versus traditional. Obviously I was lazy and used 5k not 5.5k, but the effect would be the same. Good comparison,...
by Engineer250
Fri Aug 05, 2016 5:39 pm
Forum: Personal Investments
Topic: How does a Boglehead save for child's education?
Replies: 144
Views: 17592

Re: How does a Boglehead save for child's education?

Roth - the kid needs to have earned income to qualify right? I thought I read somewhere the $14k "gift" a parent can give a child does not count for setting up a Roth in the kid's name. Unless you mean to take money out of your own Roth, which I think is a terrible idea. I lean more towards taxable savings (that can be used for anything) and trying to get your kid to reduce college expenses (stay at home, go community college first, or go local public school within commuting distance). That said, I did start a small 529 for my spouse (when they were at community college, in prep for university) even though I wasn't maxing out retirement. The benefit was this money could not be "raided" for other purposes like a general s...
by Engineer250
Fri Aug 05, 2016 4:25 pm
Forum: Investing - Theory, News & General
Topic: Home Equity as "Fixed Income" allocation
Replies: 64
Views: 5870

Re: Home Equity as "Fixed Income" allocation

By the way, the houses in my area are still under water as compared to the 2004/2005 level. I didn't realize anyone was still underwater. I bought my house in 2008 (as a forclosure) for about 25% less than what the guy before me bought it for in 2007. He bought it for about 5% less than the person before him in 2006. It's now worth (according to Zillow and whatever my mortgage company uses) about what it sold for back in 2006, about a 43% "gain" for me. But of course everything else around here has gone up too. If I sold my house, what would I go buy? Sure you can sell in a HCOL area and move to a LCOL area, but you could always do that. Engineer250, << I didn't realize anyone was still underwater. I bought my house in 2008 (as a...
by Engineer250
Fri Aug 05, 2016 4:10 pm
Forum: Investing - Theory, News & General
Topic: Zero ER ?
Replies: 25
Views: 3639

Re: Zero ER ?

Ari wrote:I own a fund with zero ER, and have done for years. They've been running that fund for ten years now, and competitors have launched similar funds since, in order to get back their customers. If developments in the US run in the same direction, the move might not be so temporary.
With people like Edward Jones still out there I have a hard time believing the trend is to 0. I agree with others, someone that offers a 0 ER fund will probably do so to get you into the door and get their other more expensive funds. Or maybe offer cheaper funds through a brokerage with a minimum balance and make up the difference with more expensive offerings in 401ks etc. Also curious to know what this fund is.
by Engineer250
Fri Aug 05, 2016 3:48 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey over simplifying Roth vs. Traditional IRA?
Replies: 103
Views: 18971

Re: Dave Ramsey over simplifying Roth vs. Traditional IRA?

yea what's really annoying is when he goes "well if you invest $5000/yr for 30 years at 12% in a IRA you'll end up with $7,000,000". "With a Roth you have $7,000,000, but with a traditional you have to take it all out and if you take out $7,000,000 you'll pay 50% in taxes and only have $3,500,000". What a lot of people forget is to add 5k to a Roth, you must start with the before tax amount, so to get 5k into a Roth, you might have to begin with $6250. If you do it that way and there are no changes, the amount you receive from either a Roth or TIRA will end up the same after taxes. Paul Then let's compare apples to apples. Usually the math says "okay for a Roth, you really only have 3750 a year to invest because yo...
by Engineer250
Fri Aug 05, 2016 3:26 pm
Forum: Investing - Theory, News & General
Topic: Home Equity as "Fixed Income" allocation
Replies: 64
Views: 5870

Re: Home Equity as "Fixed Income" allocation

By the way, the houses in my area are still under water as compared to the 2004/2005 level. I didn't realize anyone was still underwater. I bought my house in 2008 (as a forclosure) for about 25% less than what the guy before me bought it for in 2007. He bought it for about 5% less than the person before him in 2006. It's now worth (according to Zillow and whatever my mortgage company uses) about what it sold for back in 2006, about a 43% "gain" for me. But of course everything else around here has gone up too. If I sold my house, what would I go buy? Sure you can sell in a HCOL area and move to a LCOL area, but you could always do that. I like grabiner and the other person above who consider their house negative bonds. Actually ...
by Engineer250
Fri Aug 05, 2016 2:59 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900085

Re: What are you up YTD? [Year To Date]

Here is a simple formula you can use: (current value/beginning value) -1. If you want more precise you could use the XIRR function of Excel to produce an annual return and them compensate for actual time that has passed since beginning value date. If you reinvested your dividends you don't have to do anything as the current value will already include the reinvested dividends. If you didn't reinvest you should add dividends collected to the CV and then divided by the BV, all minus 1 to turn it into a decimal result. if you added new money then you should figure your actual $ gains by taking your CV (plus dividends if not reinvested) minus your (BV plus new money additions). You can then take this gain or loss result divided by the BV. XIRR ...
by Engineer250
Fri Aug 05, 2016 2:33 pm
Forum: Personal Investments
Topic: No faith in stocks/bonds - Where to park cash?
Replies: 38
Views: 5722

Re: No faith in stocks/bonds - Where to park cash?

My current investments of the $3M are as follows: $700k cash $550k real estate rental properties $2.5M Vanguard, 50/50 stocks/bonds, Total stock market, total bond market and total international stock market. Approx. 25% of 50% stock in international and approx. 50% of bonds in 10 year 3.3% CDs maturing in 6 years. I live off about $80k a year, earn approx $400k and have no interest in using any of the money in my accounts for... well to be honest... forever. I'll probably just be a net-saver for life and pass on my wealth to children one day. I was never raised to spend lavishly. Normally I would probably agree with what everyone else posted (why is the $600k different from the rest of your portfolio). But honestly, it doesn't seem like y...
by Engineer250
Wed Aug 03, 2016 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: New Job: Take Paycut by leaving Big 4?
Replies: 32
Views: 7051

Re: New Job: Take Paycut by leaving Big 4?

You will have to prove yourself once again and develop your rep at your new employer. The reason employers create those fun atmospheres in the workplace is so you won't mind spending 12 hours a day there. Make sure you are willing to do this before jumping ship. The stock options are a wild card and frequently don't pay off. You can view it almost like the partnership opportunity, potential big reward but can't be counted on. These are all excellent points. Generally the "fun" places want you to work 80 hour weeks. I did similar to you, started in a more traditional company first thing, and the demands on my time were plenty enough there. To go to a more whiz bang "new tech" company I'd be expected to work even more hou...
by Engineer250
Wed Aug 03, 2016 6:06 pm
Forum: Personal Investments
Topic: Changed job and need help on retirement options
Replies: 4
Views: 605

Re: Changed job and need help on retirement options

How old are you?

If you choose the hybrid option can you still contribute to the 457 (presumably without a match) or are you blocked out of it entirely?

*Edited to add: Is there any inflation adjustment to the pension in the hybrid option?
by Engineer250
Wed Aug 03, 2016 6:00 pm
Forum: Non-US Investing
Topic: relocation, non-US place of residence and currency risk
Replies: 16
Views: 1814

Re: relocation, non-US place of residence and currency risk

If you are planning to retire in Switzerland (btw they make citizenship very hard? So just living there 20 years doesn't entitle you to retire there? It's not like the US or UK where there is a simple path to citizenship?) then CHF is your home currency. I was thinking about this as I was responding as well. I understand it's really difficult to buy property in Switzerland as well if you are a non-citizen (versus as mentioned above, US/UK don't seem to care and will let anyone buy property just about). I was wondering if the OP was so well off they can afford the 250k CHF a year buy-in to gain residency status. That still doesn't let you buy property, but if you can afford 250k CHF a year maybe you have other means around that. Then again,...
by Engineer250
Wed Aug 03, 2016 5:53 pm
Forum: Personal Investments
Topic: please help me help my daughter
Replies: 21
Views: 3154

Re: please help me help my daughter

Maybe send your daughter this to read, it is a great primer: https://www.etf.com/docs/IfYouCan.pdf
by Engineer250
Wed Aug 03, 2016 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: New Job: Take Paycut by leaving Big 4?
Replies: 32
Views: 7051

Re: New Job: Take Paycut by leaving Big 4?

Do you like your coworkers? Your boss? I might see if there was a sub-reddit for accounting or Big4 accounting and see if you could get more advice there. Once you start looking you'll see if your job offers get you at all within the ballpark of your current pay. I left my last place because I wanted new experience somewhere else. It was a lateral pay move for me, but in the long run I will likely have fewer pay opportunities now than I did before. I wouldn't say I regret it exactly, but I think maybe I should have tried to transfer internally instead. I mean you won't know until you go. But it might not be the right decision to go. I miss a lot of people I used to work with, the community at the new place is not very strong. I'm sure after...
by Engineer250
Wed Aug 03, 2016 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: daves ramsey new ELPs [Endorsed Local Providers]
Replies: 37
Views: 5315

Re: daves ramsey new ELPs

Oddly it was Dave Ramsey who got me engaged to get out of debt. My wife and I both went to a 5 hour lecture that went by like an hour. Totally turned us around. Then I looked at his investing ideas and was so disappointed. Apparently I had finished reading enough books that I knew that it made no sense so never was attracted to it, but I was so disappointed in Dave himself. Really a letdown for me. Ramsey is really good about getting people out of debt and getting control of their spending habits. I never really followed what kind of investment advice he gives; this is not very encouraging, and it seems to be contrary to his usual philosophy. A lot of the things he talks about (like paying off the lowest balance card first rather than cons...
by Engineer250
Wed Aug 03, 2016 3:42 pm
Forum: Personal Investments
Topic: TSP I Fund or Try to Capture Better Gains in Outside Fund?
Replies: 6
Views: 1123

Re: TSP I Fund or Try to Capture Better Gains in Outside Fund?

Your interests seem all over the place. I'll start with some obvious things that stick out: 1) Past performance is no guarantee of future performance. The fact that international has done worse than US stock over the last 10 years means nothing for the next 10 years. All the sectors you are picking out are US sectors and are going to act like more volatile versions of the S&P 500. So if the US is doing better, no surprise US sectors outperform international. If you reduce international and it turns out international outperforms domestic over the next 10 years, how will you feel? 2) What's your reason for investing in international? Because someone told you you should? You should probably spend a bit more time thinking about this. The fa...
by Engineer250
Wed Aug 03, 2016 3:32 pm
Forum: Personal Investments
Topic: Struggling to pull the trigger...
Replies: 25
Views: 3632

Re: Struggling to pull the trigger...

Maybe this will make you feel better!

It's about Bob, the world's worst market timer who only buys at market highs:
http://awealthofcommonsense.com/2014/02 ... ket-timer/
by Engineer250
Wed Aug 03, 2016 11:29 am
Forum: Personal Investments
Topic: Two pensions. Interesting predicament.
Replies: 11
Views: 2241

Re: Two pensions. Interesting predicament.

1) What is the best course of action for saving for college? Do we put more money in my wife’s 457 and use my 457 as a “college savings plan” due to the fact I will retire by the time our newborn child is going to college? Or do we open a 529 plan? Would a trust make sense in this situation? 2) Should I pay off our mortgage early with windfall money or keep paying it to receive mortgage interest? 1) I like that idea. Also, you should always max out your own retirement before saving in a 529 (oxygen mask on yourself first). But the secondary advantages are that generally parents' retirement assets are not included in the child's financial aid calculations, as well as if your kid gets scholarships and doesn't need it or ends up not going to ...
by Engineer250
Wed Aug 03, 2016 11:00 am
Forum: Non-US Investing
Topic: relocation, non-US place of residence and currency risk
Replies: 16
Views: 1814

Re: relocation, non-US place of residence and currency risk

I am interested to see the responses you will get. Some off the top of my head stuff: 1) Total world weight puts US stock at about 56% currently and so 44% international. So a non-US person being 50/50 US/International isn't completely absurd. 2) Tax implications of investing in US stock - have you looked into this? I think non-resident aliens pay taxes on dividends but not long term capital gains or something along those lines? In that case it might make sense to underweight the US a little. 3) A lot of people like the idea of having investment in your home currency to avoid currency risk, or in the currency you plan to retire in. So it seems reasonable to have a little more CHF than market weight would imply. On the question of overweight...
by Engineer250
Wed Aug 03, 2016 10:32 am
Forum: Investing - Theory, News & General
Topic: Why does the stock market "always go up"? Will this persist?
Replies: 50
Views: 18290

Re: Why does the stock market "always go up"? Will this persist?

Also, never before in human history has there been the specter of AI/robots taking over most of the jobs. Never before in human history has the ability to destroy the world been greater. Never before have we faced globalization and its unpredictable consequences. Short of these black swans, stocks will go up in the long run, albeit at an unpredictable rate - and the long run can be a very very long time. This is not the first time in history machines have replaced people's jobs. Think about the industrial revolution when one person and a weaving machine could do the work that many pre-industrial weavers did before. Computer used to be a person's profession. Farms have much fewer people and many more machines working them nowadays. Technolo...
by Engineer250
Tue Aug 02, 2016 6:40 pm
Forum: Investing - Theory, News & General
Topic: are the markets overvalued? Are Grantham/Hussman etal correct?
Replies: 222
Views: 26449

Re: are the markets overvalued? Are Grantham/Hussman etal correct?

Most of the people on this board seem to hit 25x expenses fairly young, like in their 50s. Working a few more years to get to 33x expenses isn't that much of a burden. Those are the people who are most likely to post, "I'm shooting for 3%". I feel for the people who are 60-65 and are being told they should work 5 more years "just to be sure". Agreed this outlook is sad. I don't have enough of an understanding of finances to pick apart what is happening here. I remember in 2008 all the doom and gloom about retirees having to work longer. Doesn't seem like we saw that as much as people thought we would. I have my own tendency to worry about the "new high" of the market and wonder how much is bias/PTSD from 2008....
by Engineer250
Tue Aug 02, 2016 5:14 pm
Forum: Investing - Theory, News & General
Topic: Iron Mountain (IRM)
Replies: 6
Views: 1057

Re: Iron Mountain (IRM)

mingoman wrote:What is your opinion on IRM stock? I believe it's a data collection and storage firm. I'm seeing their trucks rolling around on a continuous basis. I believe this is a trend based on our data needs.
Worked with them at a prior company (though not directly). They stored paper records as well as shredded paper records, hence all the trucks. Seems like as we as a society move to paperless they would be less needed. I don't know if they offer services in that arena that we just didn't use. Most companies like to have their own data/digital records, but might be willing to outsource paper storage if it's cheap enough.
by Engineer250
Tue Aug 02, 2016 2:59 pm
Forum: Personal Investments
Topic: Anyone in VFSVX? Why?
Replies: 72
Views: 16356

Re: Anyone in VFSVX? Why?

I use VSS since it's cheaper than VFSVX as well as so I don't have to worry about making the minimum balance of the mutual fund. I'm in the TSP whose I Fund is large cap/developed international only. So I need to grab emerging markets and international small cap outside of the TSP (in my Roth IRA right now). I'd prefer to just use Total International that would balance everything for me but my TSP is too huge a chunk of my retirement savings such that I need it to get me most of the way there for international.
by Engineer250
Mon Aug 01, 2016 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: What is the best way to send the direct rollover check to Vanguard?
Replies: 35
Views: 16188

Re: What is the best way to send the direct rollover check to Vanguard?

TRP refused to send the 401k rollover check directly to vanguard. They said my employer plan does not allow that. That sounds funny. Did TRP issue the check to VG? That's the way my company plan works. Any distributions, even for direct rollovers, are sent to the address of the employee. That's an additional security feature. Earl Yup. This is pretty typical. Just did this with spouse's former 401k. They wrote a check to Vanguard but mailed the check to our house. I wrote the account # on the check, popped it in an envelope, and sent it to Vanguard. From the day I mailed it to when it was deposited it was about 8 days. They gave me a separate address for overnight if I remember correctly, but I was in no hurry. Oddly my addresses were in a...
by Engineer250
Mon Aug 01, 2016 3:42 pm
Forum: Personal Investments
Topic: TSP Allocations
Replies: 12
Views: 783

Re: TSP Allocations

I recommend the 3-fund portfolio: 60% C 15% S 10% I 15% G Keep the 4-1 C:S. I prefer G over F. Hi fellow young TSPer here. I agree with this, 4:1 C:S. I think G over F is a great idea now as well. Rates are so close it barely matters which one you pick, G Fund is less risky so you don't lose "value" of investments and can buy back into F Fund in the future if the bond situation changes. I am about your age 100% equity in TSP but all the old fogies on here are making me question my decisions :D FERS is great, but don't "count" on it until after you've got the first 5 years under your belt. You may want to leave government some day, never know, so don't count it as part of investment AA right now. However, I would also ad...
by Engineer250
Mon Aug 01, 2016 3:34 pm
Forum: Personal Investments
Topic: 401k fee question
Replies: 9
Views: 1041

Re: 401k fee question

Meaty wrote:I'm currently mimicking the TSM I'm my 401k by allocating 70% of equities to s&p 500 index fund, 20% to a mid cap index fund, and 10% to a Russell small cap index fund. The fee for the s&p is .01% (lucky I know) and .05% for mid and small cap
Just a note, I don't think 70% S&P, 20% mid cap, and 10% small cap is a perfect match for TSM. Seems mid and small cap tilted. What's in the mid cap? How much crossover does it have with the other two funds? Jus something to think about. If you don't mind being a little mid/small cap tilted (many people are) no big deal.
by Engineer250
Mon Aug 01, 2016 3:30 pm
Forum: Personal Investments
Topic: Child accounts - looking for advice
Replies: 3
Views: 389

Re: Child accounts - looking for advice

mj11711 wrote:Our 5 year old daughter has a savings account in a bank with approximately $9k so far. The money basically just sits there and doesn't grow, and we are looking to move it somewhere else. Any other parents out there with experience in this area have advice?

She likely wouldn't need this money until at least 18 years old.
Is this only for college? How about a car? I think you need to figure out what you think it will be used for before you figure out what you should do with it.
by Engineer250
Mon Aug 01, 2016 3:26 pm
Forum: Investing - Theory, News & General
Topic: Sigh. IlliniDave = Market Timer (VGENX) [Vanguard Energy Fund]
Replies: 58
Views: 11064

Re: Sigh. IlliniDave = Market Timer (VGENX) [Vanguard Energy Fund]

CNN Money has a prominent article today on the price of oil "plunging" below $40. I can't tell if the speculative response is to buy in now, or assume their alarmist article means we are just at the beginning of a downward slope? :wink: I am planning a little play money in a traditional IRA (waiting for rollover now). I have been wanting to get VGENX with that play money for a while now, I like that it is mixed between US and International as opposed to the energy ETF that is domestic only. So I'm mildly pleased oil dropped back down again before my buy, but this will probably also mean either the price will continue to go down after my buy or it will have no positive effect on energy companies if it goes up. A lot of those same c...
by Engineer250
Mon Aug 01, 2016 3:18 pm
Forum: Investing - Theory, News & General
Topic: Edelman on Muni's
Replies: 29
Views: 3439

Re: Edelman on Muni's

Wasn't it Edelman's show this last weekend was also advising people to take out larger mortgages than they needed to get cash out of their home's equity? Presumably the implication was to invest it, but he didn't seem to be specifically telling people that. Just telling them they were "leaving money on the table" by not taking out as much mortgage as they could. It was 2006 all over again and I was yelling at the radio with my spouse just rolling their eyes. Luckily I only had it on while driving for a few minutes so didn't have to listen for long, and not sure who it was. Yes. See his website, where he has an article Eleven great reasons to carry a big, long mortgage . It's so full of spin it's hard to know where to start. For e...
by Engineer250
Mon Aug 01, 2016 1:20 pm
Forum: Investing - Theory, News & General
Topic: Edelman on Muni's
Replies: 29
Views: 3439

Re: Edelman on Muni's

Wasn't it Edelman's show this last weekend was also advising people to take out larger mortgages than they needed to get cash out of their home's equity? Presumably the implication was to invest it, but he didn't seem to be specifically telling people that. Just telling them they were "leaving money on the table" by not taking out as much mortgage as they could. It was 2006 all over again and I was yelling at the radio with my spouse just rolling their eyes. Luckily I only had it on while driving for a few minutes so didn't have to listen for long, and not sure who it was. He's been saying this for years. Edelman wants you to cash out so you can invest your money with him and he can scrape his 1.5% off the top. Oh my goodness. We...
by Engineer250
Mon Aug 01, 2016 1:07 pm
Forum: Investing - Theory, News & General
Topic: Incremental Rebalancing strategy
Replies: 55
Views: 5642

Re: Rebalancing strategy to preserve dry powder

At regular intervals, say every month or quarter, look at the deviation from the desired AA and rebalance 10% of the way to the desired AA. This response restrains the rate of approach to the desired AA, captures some momentum effect, and is a calming influence. The investor is always moving in the right direction, towards, but seldom reaching the desired AA, and thus not making large changes which could lead to regret. The method could be sub-optimal, but suit those of a cautious nature. I agree with everyone else who quoted this, this is super cool! I decided a few months ago to my international closer to world market weight. I was at about 20% and want something more like 30 or 35%, if not possibly more. I am trying to rebalance with co...
by Engineer250
Mon Aug 01, 2016 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: What is a modest retirement (definition)?
Replies: 66
Views: 10277

Re: What is a modest retirement (definition)?

A modest retirement means having enough to provide for your basic living expenses (shelter, food, healthcare). You are eating at home "most of the time" and driving an older car that you bought new when you turned 65 (a retirement present that you bought yourself). Instead of luxury / international travel, you are spending most of your time visiting your grandchildren / babysitting for your son/daughter and changing diapers (both the grandchildren and your spouse!). You spend your evenings sitting on your front porch, talking with your neighbors and sharing domestic beer. Instead of financial assets, your legacy will be in the memories you shared with your family and the character you've instilled in your children and grandchildr...
by Engineer250
Mon Aug 01, 2016 12:50 pm
Forum: Investing - Theory, News & General
Topic: Investing at stock market highs
Replies: 52
Views: 6941

Re: Investing at stock market highs

I just double-checked my portfolio ... from Mar 2015 to Jan 2016, my 70/30 portfolio steadily dropped a total of 12% (which meant 100% stock would probably have been down about 16%). Then during the Brexit news, all my gains for 2016 (about 8%) were erased in 2 days as I have a heavy international tilt also. If you were trying to wait until the market was not so high, here were two "obvious in hindsight" points to get in. Why didn't you? If you don't have some systematic answer, then it's all psychological anchoring. (I'm not saying a system is good idea either but a system will sooner or later trigger a buy signal to get you into the market -- so it's a TINY BIT better than just eyeballing numbers and feeling uneasy.) Hence, jus...
by Engineer250
Mon Aug 01, 2016 12:29 pm
Forum: Investing - Theory, News & General
Topic: Edelman on Muni's
Replies: 29
Views: 3439

Re: Edelman on Muni's

Wasn't it Edelman's show this last weekend was also advising people to take out larger mortgages than they needed to get cash out of their home's equity? Presumably the implication was to invest it, but he didn't seem to be specifically telling people that. Just telling them they were "leaving money on the table" by not taking out as much mortgage as they could. It was 2006 all over again and I was yelling at the radio with my spouse just rolling their eyes. Luckily I only had it on while driving for a few minutes so didn't have to listen for long, and not sure who it was.
by Engineer250
Mon Aug 01, 2016 12:04 pm
Forum: Personal Investments
Topic: Creative solutions to train young adult to be financially responsible & my $50k dilemma ...
Replies: 57
Views: 5675

Re: Creative solutions to train young adult to be financially responsible & my $50k dilemma ...

Either way, asking them to read Dave Ramsey's book before I release $25k is reasonable. I agree with everyone else, student loans. However, the thing I can't tell with your posts is what kind of relationship you have with your nieces. How often do you see them? Do you ever have lunch with them? I think if you are really trying to break the cycle that isn't going to happen through email/facebook/text message telling them what to do. And you don't want to be Uncle Moneybags who gives them money if they jump through hoops, you want to be Uncle Mike who wants to teach them about finances and wants to help. I'd focus on building a good relationship with them first where you can ask them questions about their finances. Right now it sounds like m...
by Engineer250
Mon Aug 01, 2016 10:55 am
Forum: Non-US Investing
Topic: Finding a Vanguard fund to invest $40,000 for 30 years (401k account)
Replies: 46
Views: 9516

Re: Finding a Vanguard fund to invest $40,000 for 30 years (401k account)

3) wants to go to the moon and come back loaded with cash -- I don't see the moon leaving in another 30 years. I'm shorting the moon. I have a good feeling someone's going to blow it up in the next 30 years. I do mind losing 40K. That's why I'm looking for a mutual fund or ETF. Investing in a single company or a handful is too risky for my taste. I don't want to gamble, but rather invest the money ;) The risk that I'm willing to take is that the account balance will take great swings. My advantage is that I have time, 30 years, to wait should the market turn down. If the market is down after 30 years, I wait some more (or withdraw a bit earlier, which I can do, because, hey, I made up these rules for my future self). If you don't want to l...
by Engineer250
Mon Aug 01, 2016 10:09 am
Forum: Personal Investments
Topic: What to do with MM funds in taxable account?
Replies: 4
Views: 833

Re: What to do with MM funds in taxable account?

I do not want to put the funds in a 529 plan as do not want them to be part of a calculation in determining financial need. I'm considering reinvesting back into VTSAX (where the money originated) and pulling the same amount from taxable distributions and/or excess rmd funds several years before college begins. I think only 5% of a 529's value counts against financial aid, assuming it is in the kids name and owned by the parents. I think once it's owned by someone else that someone else might have to pay penalties on taking money out so that doesn't solve the problem entirely. You can give each kid tax free $14k per year. You could also look into setting up Roth IRAs for the kids if they have any earned income. Roth shouldn't count against...
by Engineer250
Mon Aug 01, 2016 10:02 am
Forum: Personal Investments
Topic: I have $3,000 to gamble
Replies: 71
Views: 12294

Re: I have $3,000 to gamble

tbradnc wrote: I did this for a while on paper and made more than I lost. I just don't have the trader gene...
Occasionally I make spreadsheet portfolios to scratch the timing itch, eager to see how I'll do over time. I usually lose interest after a couple weeks and forget to check my spreadsheet. Maybe that is because it isn't real money, or maybe I'm just an index investor at heart.

That said I wouldn't put my play money in my Roth, but have no objections to a small amount of money to scratch the itch elsewhere.
by Engineer250
Fri Jul 29, 2016 3:39 pm
Forum: Personal Investments
Topic: Is retirement a serious option for me?
Replies: 14
Views: 2778

Re: Is retirement a serious option for me?

Some things to consider... Is your Mom willing to gift you $$ for a few years or is that out of the question? IRS gift limit (prior to it being taxed) is $14k per person. If for a few years your Mom could gift out of her estate you this money (assuming your are sole heir, and it doesn't sound like she needs it since you are counting on getting money?) Invest that in a taxable account. Max out your 401k including catch-up contributions ($26k total), max out IRA including catch up ($6.5k) and then save whatever you can in addition, hopefully another $10-$20k in a taxable. Two years of this and you'd have banked an additional $113k or so. If you are really sick of the rat race, take social security early and consider a reverse mortgage on your...
by Engineer250
Fri Jul 29, 2016 12:36 pm
Forum: Personal Investments
Topic: 29 yo- How Can I Improve?
Replies: 6
Views: 1755

Re: 29 yo- How Can I Improve?

guspus wrote:529 College Fund:
$601.07 and deposit $50 / month (For my 7 year old nephew's college fund. Long story short, my wife's bro and sis-in-law are pretty incapable of planning or seeing big picture despite our numerous attempts to discuss and help). My nephew doesn't stand a chance with college and advanced education unless someone helps.
I just want to say good on you for helping your nephew!

If you guys plan to have kids make sure you put your own first, but I think it's fantastic you are contributing towards his future like that.
by Engineer250
Thu Jul 28, 2016 6:08 pm
Forum: Investing - Theory, News & General
Topic: Dividend stocks or real estate rental
Replies: 51
Views: 9924

Re: Dividend stocks or real estate rental

I would, like the person way above, invest in Total Us Stock and Total International and Total Bond. I hated being a renter, can't see renting out much better. My management agency was so scummy. So I can choose to: A) Pay out of my profits to a management agency to handle all the logistics of getting things fixed/replaced, handle rent, etc. B) Do all that crap myself. Enjoy the 3am phonecalls when the plumbing is backed up. Friday night phonecalls the water heater stopped working. Spend money replacing appliances and fixing roofs and possibly maintaining a lawn I don't even get to use. My management agency took a huge amount out of my deposit because we kind of let all the yard die. We were paying the water bill and water costs a fortune o...
by Engineer250
Thu Jul 28, 2016 5:57 pm
Forum: Investing - Theory, News & General
Topic: Interesting Interaction with Edward Jones
Replies: 43
Views: 6295

Re: Interesting Interaction with Edward Jones

I live in an affordable neighborhood out in the burbs. You can have a really nice 2 story someone added on to and maintains well next to a really crappy tiny house. My house is really tiny and crappy looking on the outside. The only door to door we get are solar salesmen and pest control.
by Engineer250
Thu Jul 28, 2016 5:34 pm
Forum: Investing - Theory, News & General
Topic: Help me learn to love my taxable account
Replies: 28
Views: 7121

Re: Help me learn to love my taxable account

Can I use this thread to ask a (hopefully) basic question about tax loss harvesting? I read somewhere you need to keep track of your tax loss harvests forever, is that true? I can handle the one-year arithmetic of a couple different TLH, but the concept that I now have to remember what I did years ago for the rest of my life seems daunting. If you trade only within Vanguard, does it help you keep track of this stuff? I am currently 15% marginal with 0% invested taxable money so this is all hypothetical/future planning.
by Engineer250
Thu Jul 28, 2016 5:13 pm
Forum: Investing - Theory, News & General
Topic: Two-Step Rebalancing
Replies: 48
Views: 9436

Re: Two-Step Rebalancing -- to keep both emotions and risk in check

I don't want to end up quickly rebalancing, over and over and over , into a sinking market. That got quite a few Bogleheads into trouble, in 2008, when they first rebalanced to take advantage of the "dip", then rebalanced again because their rebalancing bands were hit, then again, until some of them froze and stopped rebalancing. My Two-Step Rebalancing method is slow and patient, never in a hurry to sell or buy anything. What was the problem with their strategy? Just that they froze up after the market kept dipping? Sounded like you are referring to people who balanced from bands only. If someone balanced by calendar they wouldn't have had the same problem. I don't see how any strategy is superior for emotions. If they had a str...
by Engineer250
Thu Jul 28, 2016 2:15 pm
Forum: Personal Investments
Topic: Newbie needs help with overhaul of portfolio/investment strategy (Updated 7/27/16) - Question re TSP
Replies: 32
Views: 3639

Re: Newbie needs help with overhaul of portfolio/investment strategy (Updated 7/17/16)

Looks like a winner! I was going to go with that, but upon reflection, am strongly considering rolling over entirety of the retirement portfolio into TSP, with this breakdown: 60% C Fund, 15% S Fund, 15% I Fund, 10% G Fund Thoughts? Also, in reading some other threads on this forum, people seem to love the G Fund. SHould I put most of my bond portfolio into TSP in G funds, and make my taxable accounts hold the equity positions? Or have most of the bond holdings in taxable accounts? Or have about equal ratios in retirement account to mirror my overall AA? (I've read the wiki on tax efficient fund placement, but can't quite wrap my head around it and figure out where my minor bond portfolio should go.) I like your TSP allocation plan. Also l...
by Engineer250
Thu Jul 28, 2016 1:12 pm
Forum: Personal Investments
Topic: Short Term Investments (2-3 years)
Replies: 3
Views: 968

Re: Short Term Investments (2-3 years)

VMLTX Average stated maturity 3.2 years Average duration 2.4 years SEC yield: .81% VWSTX Average stated maturity 1.5 years Average duration 1.2 years SEC yield: .62% The yield is slightly better on the limited fund because the duration is longer and so interest rate risk and duration risk is higher. Look up taxable equivalent yield. You may be giving up too much yield just to avoid paying taxes when in fact you could come out ahead without focusing on tax exempt. I know you said you would be willing to wait, but what if home values drop at the same time your investments do? You will miss out on buying your home and have to buy when they are back on the upswing rather than at their low. Have you looked up CD rates? In a short term, rising i...
by Engineer250
Thu Jul 28, 2016 12:53 pm
Forum: Personal Investments
Topic: Retirement vs Non-Retirement Asset Allocations
Replies: 17
Views: 2239

Re: Retirement vs Non-Retirement Asset Allocations

The market is merciful and very rewarding. One can still consciously plan time horizons, but plus-or-minus months instead of hours. Definitely makes sense to me and I appreciate the insight. My concern is that plus-or-minus months could turn into plus-or-minus years. For example, if I was to be heavily invested in stocks and had the plan to buy a house in the near future and then a market crash comes along and wipes out a lot of my portfolio. In the case of my long-term goals I would be ok (aside from the major headache) but my short-term goals would likely be pushed off or at least require significant re-evaluation. I understand your comment in your prior post that I could take out a loan, buy a cheaper place than I originally wanted, wai...
by Engineer250
Thu Jul 28, 2016 12:20 pm
Forum: Investing - Theory, News & General
Topic: Revisiting Dr. Bernstein on REITs
Replies: 31
Views: 7010

Re: Revisiting Dr. Bernstein on REITs

Well I predict they will drop in September or so since I am still on track with my investing plan to buy a bit more in August, get me closer to about 10% REIT from 0.5% now. Waiting for a rollover to show up hence the wait (it's some weird pension thing so was invested in nothing before).

Just thought I'd give everyone the heads up, you'll probably want to sell prior to them going down after I buy 8-)
by Engineer250
Thu Jul 28, 2016 11:45 am
Forum: Investing - Theory, News & General
Topic: "These 5 'Old-Fangled' Investment Options May Do Just As Well as Newer Alternatives"
Replies: 3
Views: 1065

Re: "These 5 'Old-Fangled' Investment Options May Do Just As Well as Newer Alternatives"

Morningstar has published a new article by its Director of Personal Finance, Christine Benz. These are quotes: Vanguard's ETFs, meanwhile, are designed as share classes of the traditional index mutual funds; that setup allows the index funds to be especially tax-efficient because the ETFs can flush out low-cost-basis shares to pay off large, departing shareholders. Vanguard 500 Index (VFINX), a plain-vanilla S&P 500 mutual fund, has lower tax-cost ratios and better long-term tax-adjusted returns than its ETF counterpart that also tracks the S&P 500. Not trying to take this too far on a tangent, but can someone explain this to me? I feel like I've read the wiki on ETF versus index fund multiple times and I still don't really underst...
by Engineer250
Thu Jul 28, 2016 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Convince me not to go to grad school
Replies: 50
Views: 7465

Re: Convince me not to go to grad school

Save up cash ahead of time for this, don't go until you have the liquid cash saved up for the first year.

Do you work at all in the medical industry now? I'm not sure why you're going for respiratory therapist (sounds very oddly specific) when you could be going for RN or PA like the person above suggested. I'd recommend trying to get a job working at a hospital to get a feel for what it's like. You'll also build contacts that could lead to a job later. Is this something you have a passion for? Or are you just trying to make more money?