Search found 429 matches

by DualIncomeNoDebt
Thu Aug 09, 2012 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: do I have any options with my underwater condo?
Replies: 23
Views: 2672

Re: do I have any options with my underwater condo?

thanks - a real estate attorney would be best i assume? Yes. Worth their weight in gold. Could save you many years of grief, and a lot of money, to ensure the transaction documents absolve you of any liability. You want to avoid something like this: http://www.usatoday.com/money/economy/housing/2010-11-28-short-sales_N.htm yup it sucks. most things here that ive seen have HOA, but the condo's fees are just ridiculous! $350 a month? multiplied by god knows how many units? and for what? mow the lawn, clean the pool, paint once and awhile? they are bringing in easily more than a million and i guarantee they dont spend anywhere close to that. oh and when you break the smallest rule? they are all over you. if you have a serious complaint? they ...
by DualIncomeNoDebt
Thu Aug 09, 2012 5:49 pm
Forum: Investing - Theory, News & General
Topic: MF global update?
Replies: 19
Views: 4247

Re: MF global update?

You should look up rehypothecation, and rehypothecation within the shadow banking system. That will really make you nervous. As for MF Global, I believe most of the money has been recovered. The "vaporize" story line was pure, utter BS. Money doesn't "vaporize." Every single money transfer results in a journal entry. Funds can be traced. This is especially true for client-segregated accounts, which require additional authorizations, especially at a futures commission merchant like MF Global. And the MF Global money was traced right to JP Morgan Chase -- who asked that MF Global execs sign a release stating some of the funds were not customer-segregated funds. This was a lie, of course, and Edith O'Brien, the former MF tr...
by DualIncomeNoDebt
Thu Aug 09, 2012 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: do I have any options with my underwater condo?
Replies: 23
Views: 2672

Re: do I have any options with my underwater condo?

California is non-recourse. But you need to check if the refi put you on the hook personally for the mortgage note. Same thing for people who stupidly took HAMP modifications or other similar programs that put them on the hook personally, instead of taking advantage of the fact they reside in a non-recourse state and can walk away from a sinkhole. If it were me, I'd dump it via short sale. Be free and clear of it. Also, I strongly advise you to get a competent lawyer to review the short-sale (or any other) documents if you decide to jettison the condo -- there are reported cases where banks try to scam mortgage debtors by transferring and recording only the deed, leaving the borrower on the hook for the note, i.e. the asset is transferred, ...
by DualIncomeNoDebt
Thu Aug 09, 2012 5:17 pm
Forum: Personal Investments
Topic: I could use some commentary
Replies: 9
Views: 1137

Re: I could use some commentary

I've recently purchased a number of these funds and am interested what others will opine on your selection.
by DualIncomeNoDebt
Thu Aug 09, 2012 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Post-Spending Regret
Replies: 64
Views: 7256

Post-Spending Regret

I have this issue where, for larger purchases, I will contemplate how much in future income the current purchase cost us -- and after the purchase, I tend to think about it obsessively. Frankly, I don't like to spend money -- but I can get unhealthy about it. I won't have kids because I have no desire to raise a family, and frankly I don't want to spend money on kids clothes, schooling, college, etc. I refuse to have a wedding because I think it's a massive waste, an opportunity for these charlatans to gouge us for bad food, bad cake, bad clothes, and stupid photos I don't want or need. To hell with the "joyous day," give me the lifetime earnings from the wedding's cost. Another example, we recently returned from a short vacation....
by DualIncomeNoDebt
Sat Aug 04, 2012 12:58 am
Forum: Personal Investments
Topic: Recommendations for brokerage firms
Replies: 15
Views: 2083

Re: Recommendations for brokerage firms

Based on what you plan to do, I recommend Fidelity. Their fees are $7.95 per trade, reasonable. Plus if you want funds, you can by some good Fidelity Spartan funds. Another reason I like Fidelity is you can purchase, if you wish, individual municipal bonds on the new issue market, they have a huge selection from across the U.S., better than any other broker that I have seen. Muni new issue means standard pricing by law for all participants (no games or gouging) and fixed low issuer fees (which is quite unlike the secondary market where bond traders will eat you alive). This is the only way I will purchase individual muni bonds, else I use a Vanguard fund because the secondary bond market can quickly ensnare an individual investor. Final rea...
by DualIncomeNoDebt
Fri Aug 03, 2012 4:18 pm
Forum: Personal Investments
Topic: Quick question about Starting a Portfolio
Replies: 13
Views: 1788

Re: Quick question about Starting a Portfolio

I extensively researched this question and this site, as I too am new with Vanguard. The consensus (and the better argument) in my view is this: if you're in it for the long term, and you should be, invest it all according to your desired allocation. You can't time the market and you can't predict the future, start putting it to work immediately. Search this site, and think logically about the question (e.g. if it makes sense for you to be out of the market because you are timing, then it follows I too should be out of the market to avoid losses and maximize gains.)

Also, see http://www.bogleheads.org/forum/viewtopic.php?t=83767
by DualIncomeNoDebt
Thu Aug 02, 2012 10:39 pm
Forum: Personal Investments
Topic: How To Manage/Invest 2 Million Usd
Replies: 8
Views: 2396

Re: How To Manage/Invest 2 Million Usd

Watty wrote:5) Being in a hurry to decide how to invest. If you are just starting to learn what to do then take at least six months or longer to decide what you should do. One you decide it may take several years to move the money to where you want it for the long term.
I am finding this to be true, especially the years part.
by DualIncomeNoDebt
Thu Aug 02, 2012 5:48 pm
Forum: Investing - Theory, News & General
Topic: Knight Capital and Individual Investors
Replies: 6
Views: 2497

Re: Knight Capital and Individual Investors

xerty24 wrote:
DualIncomeNoDebt wrote:i... am familiar with HFT trading (read: unlawful frontrunning).
You're not helping your credibility much with comments like that.
My being familiar with it, or labeling it institutionalized theft?
by DualIncomeNoDebt
Thu Aug 02, 2012 5:03 pm
Forum: Personal Investments
Topic: What Would You Invest in with $15,000 Extra Cash?
Replies: 30
Views: 5823

Re: What Would You Invest in with $15,000 Extra Cash?

That $15k in cash can buy an awful lot of fun in the future if you invest it wisely. Don't squander it on some frolic, like so many other people do.
by DualIncomeNoDebt
Thu Aug 02, 2012 4:59 pm
Forum: Investing - Theory, News & General
Topic: Knight Capital and Individual Investors
Replies: 6
Views: 2497

Knight Capital and Individual Investors

I've been watching the Knight Capital implosion and am familiar with HFT trading (read: unlawful frontrunning). This story is interesting, http://www.cnbc.com/id/48466309. To sum, Knight is publicly traded, and its main clients are other traders (vultures). It's disturbing, yet so typical, that Knight would give its own clients (traders) early warning about Knight's trading difficulties at the market open, yet not a word issued to Knight's individual stockholders or to the public. Of course the instant these traders got hold of Knight's problems, they leveraged it into a monster trade. This was quickly picked up by the options market -- even more money to be made on long equity investors. Hence people "in the know" were dumping KC...
by DualIncomeNoDebt
Thu Aug 02, 2012 4:53 am
Forum: Personal Investments
Topic: Why does my bond allocation need to be so high?
Replies: 33
Views: 4381

Re: Why does my bond allocation need to be so high?

You have received some excellent responses from the prior posters. Some other things to consider. First, if you allocate at least some of your money to bonds, over the long term it shouldn't have an outsize impact on expected returns. But during a major market correction, the bonds will be a major stabilizing force, especially if you have individual stocks, which can get cut in half during a single trading day. Second, if you want a graphical representation of the risk you are taking, take a look at http://advisoranalyst.com/glablog/2011/09/20/why-everyone-hates-equities-and-loves-bonds/ . Look at the volatility of stocks versus bonds, and conclude whether you really are being compensated for that risk. SocGen pegs it at 3:1 - bad odds. Loo...
by DualIncomeNoDebt
Mon Jul 30, 2012 3:59 pm
Forum: Personal Investments
Topic: Should I cash in my whole life policy?
Replies: 8
Views: 1312

Re: Should I cash in my whole life policy?

No question, cash it in. Get term, save the wasted monthly premium, and you'll be much better off.
by DualIncomeNoDebt
Tue Jul 24, 2012 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Older couple being swindled w/ Genworth Variable Annuity
Replies: 70
Views: 15210

Re: Older couple being swindled w/ Genworth Variable Annuity

Based on the prospectus, it is fee-laden. It's got "variable account" expenses up to 1.5% per annum, and on top of that, another layer of fees for "annual operating expenses charged by the Total Return Fund that you may pay during the time that you own the contract," which look to be about 0.77%. This is how the fees are layered: "The expenses for the Total Return Fund are deducted by the Fund before it provides us with the daily net asset values. We then deduct the Variable Account charges from the net asset value in calculating the unit value of the corresponding Subaccount." Pages 10-11, Prospectus. This thing is designed to siphon 2.27% of their money to the insurance company for the rest of their lives. I ...
by DualIncomeNoDebt
Tue Jul 24, 2012 3:47 pm
Forum: Personal Investments
Topic: From "Individual" Investments to Funds and ETFs
Replies: 8
Views: 1380

Re: From "Individual" Investments to Funds and ETFs

These responses are helpful, thank you. I am lucky in that I have mostly larger dividend payers which have done fairly well (current flavor of the last few quarters). It's tough to sell them and get into the low-cost, broadbased fund mindset. But I don't want to be lucky, or be tracking individual businesses, or be beholden to sector whims -- I've really started to hate it, which led me to Vanguard and these forums. I want to be rational, so I'm working on it now, and have started liquidating. The cap gains are going to sting a bit (in some cases a lot), but I'm feeling better about the switch with every "sell all shares" execution I initiate. I also have two stocks that have been absolutely crushed because of the natural gas down...
by DualIncomeNoDebt
Tue Jul 24, 2012 7:24 am
Forum: Personal Investments
Topic: Holding gold in a safe deposit box
Replies: 33
Views: 5128

Re: Holding gold in a safe deposit box

Not quite. By holding gold at home you have increased your risk of violence, break in etc. So other than a couple of gold coins, I would recommend against holding gold at home . Maybe you can conceal it really well and no one knows you own it. Maybe. There are a lot of people who know things about you: the people who clean and repair your house, the people who do deliveries, your neighbours, the parents of your kids friends, your inlaws (unless you do not plan to tell your wife), companies that sell you things that are in your home, your insurer and everyone who works for your insurer.... This. I can personally attest you never know who is watching you or where your information is going. One very recent example, my colleague purchased a Po...
by DualIncomeNoDebt
Tue Jul 24, 2012 6:58 am
Forum: Personal Investments
Topic: From "Individual" Investments to Funds and ETFs
Replies: 8
Views: 1380

From "Individual" Investments to Funds and ETFs

General question concerning those of you who used to have specific or individualized investments, such as particular stocks, individual bonds, perhaps you were overweight company equity in your 401k, etc. After doing the research, you exited individual investments and made the switch to low-cost index funds, ETFs, etc. Question is, did you dump all individual investments en masse and then jump into your chosen funds all at once and quickly? Or did you take your time, waiting many months or years before you disposed of your individual issues and were "all in" with your chosen funds and ETFs? Based on your experience, which would you recommend doing? Final question is, did the switch allow you to ignore the noise, sleep better, or s...
by DualIncomeNoDebt
Tue Jul 24, 2012 1:14 am
Forum: Personal Investments
Topic: Holding gold in a safe deposit box
Replies: 33
Views: 5128

Re: Holding gold in a safe deposit box

Do not bury in back yard. Bank safe deposit is generally o.k., just be sure to bank with a sound regional bank. If it is a large amount of gold, do not store at home, and do not think a home safe offers protection. Home vault is false security. You'll open that "secure" home safe the second some criminal puts a gun to your head, to your wife's head, or threatens to shoot a child you love if you fail to open the safe. If someone threatened my significant other, I would give them anything under that kind of duress. Valuable gold or money, gone in sixty seconds. This may sound stark or harsh, but it is the plain truth. This also is yet another reason (in a long list of reasons) to favor liquid accounts at Vanguard and Fidelity -- amo...
by DualIncomeNoDebt
Sun Jul 22, 2012 12:04 am
Forum: Personal Finance (Not Investing)
Topic: Flexible premium adjustable life insurance
Replies: 14
Views: 8881

Re: Flexible premium adjustable life insurance

"Flexible premium adjustable" -- you are exactly right, it's just a nonsense variation on whole life policies. You get a reduced death benefit and some [poor] "investment vehicle," or "forced savings" in insurance company parlance. Guaranteed the premiums they pay into the investment vehicle side of the policy will be siphoned by the underwriter, with a fat commission to the insurance agent. The return will be atrocious and the premiums your hardworking children are paying will be [wasted] on costs, fees, and a bad return. Advise them in the strongest possible language to get straight term policies. That is all they need. A simple, inexpensive product with a guaranteed payout should the unfortunate occur. Then,...
by DualIncomeNoDebt
Fri Jul 20, 2012 3:56 am
Forum: Investing - Theory, News & General
Topic: pros and cons of gold
Replies: 84
Views: 8246

Re: pros and cons of gold

Can someone elaborate further on this "consumption dividend" as it applies to bullion, and to residential real estate? And explain how/why these assets are overpriced from an investor's perspective? Note I've always felt this way intuitively about homes/condos, which are significantly overpriced given the sky-high fees, taxes, transaction costs, and maintenance costs.
by DualIncomeNoDebt
Thu Jul 19, 2012 3:35 am
Forum: Personal Finance (Not Investing)
Topic: To Buy or Not To Buy a Condo
Replies: 13
Views: 7724

Re: To Buy or Not To Buy a Condo

Well, I think I am convinced not to buy that condo. Thank you all so much for your advise and help! What REIT should I buy? :) :) I am relieved for you. There are a lot of transaction costs and fees that make a one-off condo vacation property a dicey, stressful proposition, and this is compounded if you are a remote landlord. As for REITS, I own a couple of individual names (O and SNH) which I purchased when they were cheaper, and I also bought some preferred shares in the REIT sector that I picked up for an absolute steal when the markets were volatile. But I'm no market timer -- I simply was looking for quality low-priced names on a par basis. Personally I am not adding to my individual positions, but I have no idea if I am right or wron...
by DualIncomeNoDebt
Wed Jul 18, 2012 11:21 pm
Forum: Personal Investments
Topic: 401k Fees
Replies: 16
Views: 1495

Re: 401k Fees

I bet those are, in fact, the fees charged to her personally for one year. And as someone said, those fees don't include the fund-specific fees you are paying which don't require an itemized line item (but you can look at the fund disclosure to determine the fee).

Those fees are pure robbery. Complain to HR. And get the assets transferred out of there and under your control without triggering a penalty, you already have a suggestion on how to accomplish this.
by DualIncomeNoDebt
Wed Jul 18, 2012 10:13 pm
Forum: Personal Investments
Topic: Request For Long Term Income Fund of Low to Moderate Risk
Replies: 7
Views: 2479

Re: Request For Long Term Income Fund of Low to Moderate Ris

Look at Vanguard's summary table and click the Distributions tab for an overview. Vanguard bond and money market funds typically distribute dividends monthly. Others, quarterly or annually and I haven't figured out the pattern. Wellesley, Target Retirement Income, and LifeStrategy Income distribute dividends quarterly. They all seem to distribute capital gains at the end of the year. Thank you for the link, I recently set up my account and wasn't aware of this table, it's a nice summary Vanguard provides. That's just an observation for Wellesley and I haven't seen it spelled out anywhere, unless that's what they mean by "goal of steady income." Something that might appeal to you is that according to Vanguard's product summary , &...
by DualIncomeNoDebt
Wed Jul 18, 2012 6:34 pm
Forum: Personal Investments
Topic: Request For Long Term Income Fund of Low to Moderate Risk
Replies: 7
Views: 2479

Re: Request For Long Term Income Fund of Low to Moderate Ris

Johm221122 wrote:Vanguard bond index monthly and stock indexes quarterly.Why not post your portfolio and see what ideas come from that
Here is link http://www.bogleheads.org/forum/viewtopic.php?t=6212
O.K. thank you. As for portfolio I wanted to keep the details short and to the point and get some general guidelines. Thank you kindly for the response re indexing.
by DualIncomeNoDebt
Wed Jul 18, 2012 6:25 pm
Forum: Personal Investments
Topic: Request For Long Term Income Fund of Low to Moderate Risk
Replies: 7
Views: 2479

Re: Request For Long Term Income Fund of Low to Moderate Ris

Yes I read that very page yesterday, along with forum comments concerning same. Do any of these funds regularly make cash distributions into your account, or does one have to sell shares for cash? This may sound like a dumb question, but understand for every single investment I currently own, I get paid every month, every quarter, or semiannually in the case of municipal bonds, and I don't sell them, ever, unless I am fully exiting the investment or my investment has been called (bonds, preferred stocks).
by DualIncomeNoDebt
Wed Jul 18, 2012 6:04 pm
Forum: Personal Investments
Topic: Request For Long Term Income Fund of Low to Moderate Risk
Replies: 7
Views: 2479

Request For Long Term Income Fund of Low to Moderate Risk

Age : 40 AA : ~90% equities (mostly dividend payers, utils, 10% REITS) ~10% bonds (mostly new issue municipal) First Vanguard purchase was yesterday, Total Bond Market Index Admiral (VBTLX) Debts : none Question : seeking quality income fund or funds for the long-term, essentially a lifetime buy-and-hold that I can add to regularly with minimal expense, and take cash distributions regularly to either reinvest or use as necessary, as I see fit Hello everyone, I recently established an account at Vanguard and am looking for some recommendations. I don't have significant experience with ETFs or managed funds hence I seek guidance. I have searched the forums before making this request. I do have investment experience. I recently turned 40. I'v...
by DualIncomeNoDebt
Wed Jul 18, 2012 4:31 am
Forum: Personal Finance (Not Investing)
Topic: To Buy or Not To Buy a Condo
Replies: 13
Views: 7724

Re: To Buy or Not To Buy a Condo

I write to dissuade you, in strong terms, from purchasing a vacation "condo," especially in a one-season town like Colorado. I've been to Vail, Steamboat, and Telluride many times. CO is dead unless it's ski season, so out of the starting gate you've got limited opportunities to rent. Macro, vacation condos are generally horrendous "investments," and can be difficult to unload when you want out -- and you will. Take just the HOA or common dues/fees. Association fees will eat you alive. And you need to take a hard, detailed look at the bylaws, fees, assessments and caps, read every page and any addendum thereto. If your condo neighbors fall behind or defaults increase, your assessment is going up, and will stay up. Also, ...