Search found 523 matches

by 209south
Thu Feb 29, 2024 8:44 pm
Forum: Personal Consumer Issues
Topic: When do electric cars stop making sense?
Replies: 210
Views: 16590

Re: When do electric cars stop making sense?

Interesting. I've owned a Tesla Model 3 for 5 years and would offer the following observations:
1. at 12c/kWh in Florida I'm saving a lot of money on fuel.
2. maintenance spend for 5+ years totals $56(!) - tire rotation and cabin air filter - a huge savings that most under-value.
3. way quicker and more fun than the Audi S4 I drove previously.
Your economics seem surprising, but I guess the gas vs. electric trade-off varies more than I thought on a state by state basis.
by 209south
Sat Oct 21, 2023 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Should I sell my EE bonds?
Replies: 15
Views: 2739

Re: Should I sell my EE bonds?

I purchased the EE bonds from 2016 through 2020 as I liked the 'doubling in 20 years' concept. Issue is to get the doubling I need to hold the bonds 13-17 more years and if I redeem early I only earn the 0.1% return, meaning the effective yield for the remaining lives is actually quite high. Not sure if I'm thinking of this correctly but trading out of the EEs today at a reinvestment rate of (say) 5% nominal is actually a negative trade vs. holding on to them until maturity, at least for the bonds I've held the longest. It looks like some STRIPs (zero coupon) maturing in 2036 had yields as high as about 5.2% or so today. At 5.2%, you would not quite double in 13 years, but it's close $1000 grows to about $1933. At 14 years (maybe even 13.5...
by 209south
Fri Oct 20, 2023 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Should I sell my EE bonds?
Replies: 15
Views: 2739

Re: Should I sell my EE bonds?

I've been considering selling my EE and I Bonds for three reasons 1. I'm expanding my TIPs ladder to take advantage of current rates. (I do understand that EEs are nominal). 2. I'm aiming to simplify my investment holdings - too many accounts to follow and the EE/I bonds represent only ~1% of my portfolio. 3. I find Treasury Direct to be quite cumbersome relative to Vanguard and most banks. I purchased the EE bonds from 2016 through 2020 as I liked the 'doubling in 20 years' concept. Issue is to get the doubling I need to hold the bonds 13-17 more years and if I redeem early I only earn the 0.1% return, meaning the effective yield for the remaining lives is actually quite high. Not sure if I'm thinking of this correctly but trading out of t...
by 209south
Mon Aug 21, 2023 10:06 am
Forum: Investing - Theory, News & General
Topic: Why are the minimum lot sizes on Treasuries so high today?
Replies: 62
Views: 8776

Re: TIPs - $75k minimums at Vanguard?

qatman wrote: Mon Aug 21, 2023 9:33 am Go to the Treasuries tab. Select Treasury type "TIPS". Fill in the maturity range that you are looking for in the search boxes (e.g. "10y" to "20y"). Press "Search".

Now you will have a list of the relevant TIPS. For the one you are interested in, click "Show More" directly under the CUSIP. That will pop up the current set of bids/asks. You can see that the top one (best price) is minimum 75 but there are others with smaller minimums at slightly worse prices.
Interesting. Thanks. Not as easy as it used to be!
by 209south
Mon Aug 21, 2023 8:58 am
Forum: Investing - Theory, News & General
Topic: Why are the minimum lot sizes on Treasuries so high today?
Replies: 62
Views: 8776

TIPs - $75k minimums at Vanguard?

[Thread merged into here --admin LadyGeek]

I've been building TIPs ladders within my Vanguard accounts for the past several years. Tried to add a few bonds on Friday and this morning and I'm getting a '$75,000 minimum purchase' note. First time I've seen it. Is that a new thing at Vanguard or just new to my account because I may have exceeded some threshold??
by 209south
Thu Aug 17, 2023 5:27 pm
Forum: Investing - Theory, News & General
Topic: Is there a sort of easy way to decide when TIPS rates are worth backing the truck up on?
Replies: 116
Views: 11447

Re: Is there a sort of easy way to decide when TIPS rates are worth backing the truck up on?

Charles I am doing exactly that. I'm 63 and have a TIPs ladder that will meet my expenses until I draw social security, and I have another TIPs ladder within my IRA to cover RMDs. I have been aggressively filling rungs on both ladders given current real rates of about 2%. If this is of interest to you, count yourself lucky that you are evaluating it today and not when real rates were negative not that long ago!
by 209south
Wed Aug 16, 2023 10:58 am
Forum: Investing - Theory, News & General
Topic: How much gold should you hold in your portfolio?
Replies: 195
Views: 18210

Re: How much gold should you hold in your portfolio?

I'm at 5% with most in coins and a small allocation to GLD in my IRA for rebalancing purposes. My view - the more money one has and the more 'legacy' matters, the more gold one should own. Perhaps I'm a fatalist, but I believe in political/economic cycles and fear the next 100 years for the US won't be as rosy as the last. Think of the economic meltdowns in countries like Germany, Russia, Japan, Argentina, etc. over the past century or so - such calamities are not out of the realm of possibility for the US and if you're investing for the very long-term, having some diversification / hedge vs. such catastrophic events allows me to sleep better at night.
by 209south
Sat Feb 25, 2023 7:05 am
Forum: Investing - Theory, News & General
Topic: Liability Matching Portfolio? Really?
Replies: 528
Views: 55077

Re: Liability Matching Portfolio? Really?

Really interesting discussion. Three thoughts: 1. Underlying much of this discussion is the quaint presumption that stocks always recover over a 20-year period...please ask the Japanese, the Germans, the Russians, from different eras...US equity markets have been extraordinarily resilient over the past century...IMO assuming that will continue indefinitely is irrational. 2. Even if the market recovers at the tail end of a difficult 20-year period, how disciplined will the average retiree be at age 80 holding on for the recovery at the risk of reliance on family members. 3. Per an earlier comment, it really would be good to see the apples-to-apples comparison of different outcomes - 17% inflation for 30 years - that would suck - what would i...
by 209south
Sat Feb 04, 2023 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: Capital One 11-month CD's now earning 5%
Replies: 55
Views: 10907

Re: Capital One 11-month CD's now earning 5%

exactly. It's 5% annualized. A good deal. Capital One savings/checking rates are disappointing but their CDs are often competitive.
by 209south
Fri Sep 23, 2022 12:17 pm
Forum: Personal Investments
Topic: 2043-47 TIPS paying 1.6%
Replies: 72
Views: 8361

Re: 2043-47 TIPS paying 1.6%

Until recently I considered myself a relatively sophisticated investor...diversified portfolio, all low fee funds and ETFs, a bit of a 'Larry' bent, with heavy fixed income allocation and much of my equity exposure in small value (I'm HNW but near retirement age and looking to protect downside more than drive upside). I've done fine, but the negative surprise has been the underperformance of long-term TIPs vs. long-term treasuries. I decided I wasn't smart enough to predict rates or inflation, so have divided my fixed income portfolio relatively 50-50 between nominal and TIPs. With inflation rearing its ugly head all bond prices are down...that is the market and that is fine...but WHY for example is LTPZ (long TIPs) down more than SPTL (lon...
by 209south
Thu Apr 14, 2022 11:36 am
Forum: Personal Investments
Topic: Tips Yield Curve
Replies: 1
Views: 291

Tips Yield Curve

I started a TIPs ladder several years ago and am now looking to add some more bonds with long-term yields having finally turned positive. I'm focused on the bonds with 2040s and 50s maturities and have a question. Why does the yield 'peak' (according to WSJ yield) in 2045 and decline significantly in years further out...is it excess demand for the longer-term rungs on the ladder, or am I missing something? For example the yield per yesterday's WSJ is 0.43% for 2045 bonds but only 0.295% for 2052s and 0.21% for 2040s. My 2044-46 rungs are actually full but I'm inclined to overload them to pick up a bit of extra yield. Penny wise pound foolish? BTW I was born in 1960 so will be 85 in 2045, God willing!
by 209south
Thu Mar 04, 2021 11:27 am
Forum: Personal Investments
Topic: For those who have bought annuities recently. Any regrets?
Replies: 26
Views: 2998

Re: For those who have bought annuities recently. Any regrets?

Importantly, this is not an all or nothing decision. I wouldn't recommend anyone put all their money into annuities, but they can play a role in the 'safe portion' of one's retirement 'portfolio'. My wife and I are 60 and have purchased a few annuities over the past five years...all DIAs from NY Life, and fortunately purchased when payout rates are higher. We will continue to buy more, and ultimately would like the DIAs to provide nominal income similar to the inflation-protected income we'll get from social security. We do have other, riskier investments, but the DIAs help us sleep at night.
by 209south
Sat Jul 11, 2020 2:13 pm
Forum: Personal Consumer Issues
Topic: [Tesla owners - opinions?]
Replies: 36
Views: 3807

Re: [Tesla owners - opinions?]

I concur - I bought a Model 3 in 2018 and it's by far the best car I've ever owned. I got the 310 mile range version but that has been upgraded via free software update to 322. Mine was 0-60 in 4.4 seconds but for $2500 I upgraded it to 3.9 seconds - certainly an unnecessary luxury but very fun. I had only charged in my garage until this week, when I did a 260 mile road trip to Virginia and back - could have made it without charging if I stayed under 65, but instead stopped once each way for 20 minutes for lunch, etc. Fantastic car - yes, there will be many more EV choices in two years but I'm skeptical any will be truly competitive with Tesla.
by 209south
Mon Jul 06, 2020 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: Longevity Annuity Purchase Timing w/ Today's Rates
Replies: 19
Views: 1619

Re: Longevity Annuity Purchase Timing w/ Today's Rates

I put 5% of my portfolio into DIAs five years ago when 'it was expensive given low yields' and I'm sure happy I did. Nobody knows where rates will go from here - perhaps split the difference and buy 50% of the DIAs you are considering and put the rest in long bonds as a hedge?
by 209south
Thu Jun 18, 2020 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: GS drops yield on savings account again
Replies: 21
Views: 1935

Re: GS drops yield on savings account again

Good news is mortgage rates are also falling - I just locked a $500k 30-year at 2.75% with zero points. The downpayment will be funded from Ally and Capital One accounts which have experienced rate reductions so all good.
by 209south
Mon Jun 01, 2020 9:23 pm
Forum: Personal Investments
Topic: TIPs: Negative yields vs premium over nominal bonds
Replies: 26
Views: 2029

Re: TIPs: Negative yields vs premium over nominal bonds

Thank you for the reply. To answer your question, I am about 9 years away from retirement. I want to keep 15% in equities (i.e., something like VTI). My goal for the remaining 85% is to not lose ground to inflation. I'd like to use something with short durations. I like TIPs as a hedge against unexpected inflation, but as I noted in my original post, I'm wondering is this is a bad time to buy into TIPs. Does that help? That makes it easier to answer. First, if you are 9 years from retirement, you still have a few more years before you need TIPS. Some may disagree here, pointing out to Long TIPS as something you can add now. But I will say that is a complexity, because you will then need to transition out gradually by reducing it and at sam...
by 209south
Tue Apr 21, 2020 7:06 am
Forum: Personal Investments
Topic: AA and TIPS
Replies: 10
Views: 882

Re: AA and TIPS

I'm not aware of any general recommendation, but I have 50% of my fixed income in TIPs - primarily through a TIPs ladder in my Vanguard IRA, but also through holding Vanguard intermediate-term TIPs fund in a couple pockets. If a longer-term TIPs ladder is of interest you could certainly begin building it before age 50, though I'm not sure I could summon the courage to do so today with negative rates on longer-term TIPS.
by 209south
Mon Apr 13, 2020 1:50 pm
Forum: Investing - Theory, News & General
Topic: What's the Bond Market's Expectation for Future Inflation?
Replies: 54
Views: 3970

Re: What's the Bond Market's Expectation for Future Inflation?

JonnyB wrote: Sat Apr 11, 2020 4:03 pm Who cares about a theoretical TIPS breakeven rate. Just look at nominal rates. Investors are willing to lend money at 1.3% for a 30-year commitment. There's not much room for inflation in there.
Inflation expectations matter for those purchasing nominal annuities, especially longer-term Deferred Income Annuities.
by 209south
Tue Apr 07, 2020 9:41 am
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 621
Views: 74362

Re: I don't understand the case for EE bonds

I played around with quotes on https://www.immediateannuities.com/ and found out it seems like a deferred annuity compounds at 3.04% interest rate. So, the EE bond route at age 45 looks really attractive. Individually with my two trusts and my individual account I can buy $30k EE bonds per year. Now, granted, that's a life annuity where the insurance company still has to pay out even if you live to 114 years old. Are deferred annuities very attractive investments for 45 year olds? I think not. I have yet to see anybody on Bogleheads recommend them. One look at a graph of US treasury rates , particularly since WW 2 , would give me jitters regarding tying my money up for 20 years at around 3% compounded. Don't let recency bias cloud your jud...
by 209south
Tue Apr 07, 2020 9:07 am
Forum: Investing - Theory, News & General
Topic: Hope you weren't born in 1960
Replies: 70
Views: 14412

Re: Hope you weren't born in 1960

WOW great topic. I was born in 1960 and a max earner throughout. Bizarre that lifetime benefits for one small group could be so materially affected. Since the entire theme of this stimulus is to help those who did no harm (i.e. 'it wasn't their fault they lost their jobs, or couldn't fly their airplanes...), hopefully the 1960 cohort will see this all corrected in good time.
by 209south
Sun Apr 05, 2020 11:19 am
Forum: Investing - Theory, News & General
Topic: Why not go EE bonds (instead of bond funds)?
Replies: 284
Views: 37470

Re: Why not go EE bonds (instead of bond funds)?

willthrill, appreciate your thoughtful posts. Curious what age you are and how you are thinking about retirement income and whether you are attracted to LMP concepts? My wife and I are 60 with a healthy portfolio but no pension other than social security. We live in a HCOL area and have a nice condo in Florida and would like to maintain both of those, and our two golf clubs, and an active retirement lifestyle, all while leaving something for the kids. It's an ambitious goal and one reason I'm still (happily) working at age 60 and hope to continue for a few more years. So for me, building essentially a liability-managed portfolio has really delivered piece of mind. Between social security, my TIPs ladder, my EE bond ladder, my new I bond lad...
by 209south
Sun Apr 05, 2020 10:49 am
Forum: Investing - Theory, News & General
Topic: Why not go EE bonds (instead of bond funds)?
Replies: 284
Views: 37470

Re: Why not go EE bonds all the way (instead of bond funds)?

I'm surprised that no one yet has referenced the big EE bond thread that's been active off and on for years: https://www.bogleheads.org/forum/viewtopic.php?t=217081 If long term bond yields and inflation continue to fall into negative rates and deflation, long term bond funds such as EDV will have capital appreciation which exceeds 3.5%. If interest rates and inflation rise markedly, shorter term bonds and inflation protected bonds will quickly exceed 3.5%. If interest rates and inflation stay modest (let's say 1%-4%) then that is the perfect environment for stocks to flourish. You can rebalance anything except EE bonds, which might allow one to profit from a tail event which otherwise would cause your return to fall below 3.5%. Finally, t...
by 209south
Sun Apr 05, 2020 7:54 am
Forum: Investing - Theory, News & General
Topic: Why not go EE bonds (instead of bond funds)?
Replies: 284
Views: 37470

Re: Why not go EE bonds (instead of bond funds)?

I have a defensive 35-65 portfolio so a lot of fixed income exposure. I like EE Bonds and started buying the max 5 years ago due to research on this forum. Between my wife and me we now have $100k invested and, as Mel said above, as we start to hit year 20 at age 75 for us these will provide a very nice annuity, and along with social security, a TIPs ladder and some DIAs we've funded, we are building some very nice, secure cash flow for retirement and longevity purposes. Three more points: (a) our portfolio is substantial so I think you'd need to have a LOT of money for these $40,000 (nominal) maturies in 20 years to be immaterial; (b) agree that EEs aren't ideal for rebalancing but we have lots of other fixed income investments for that; a...
by 209south
Thu Apr 02, 2020 12:02 pm
Forum: Personal Investments
Topic: Advice for a 26 year old with $400k cash
Replies: 76
Views: 6497

Re: Advice for a 26 year old with $400k cash

I’d take the following action: 1. Add $25k to your emergency fund and keep that in a high yield savings account at Ally or Marcus 2. Max out Roth contributions for 2019 and 2020 – do so in Vanguard and put the money in Vanguard’s Life Strategy Growth Fund (80/20 and a great core fund for someone your age) 3. Put remaining funds in a Vanguard account – there is no right answer but start simple with another Vanguard Life Strategy Growth Fund – I’d put 1/3 in the market right now and DCA the rest on a weekly sweep from a Vanguard Money Market Fund over a long time – at least a year – missing gains is far less painful than making losses. 4. Re. the student loans of course it’s always good to be debt free but in the current environment I suspect...
by 209south
Tue Mar 31, 2020 7:47 pm
Forum: Personal Investments
Topic: Marcus or Ally
Replies: 176
Views: 25163

Re: Marcus or Ally

I have been a happy Ally customer for years - have a few accounts and several CDs with them, and a couple with Capital One. With recent turmoil I've moved some money to Marcus to diversify for FDIC purposes. Very happy with the rates at Marcus, but disappointed with the SEVEN days 'til transferred funds are available - not that I NEED the money, I put it there for a reason, but that is off-market and not as good as Ally or Capital One.
by 209south
Sat Mar 28, 2020 10:37 am
Forum: Personal Consumer Issues
Topic: [Are Toyota and Honda Cars Superior?]
Replies: 16
Views: 1422

Re: Toyota cars and trucks are simply the best made vehicles that can easily go 200k miles!

Except for Tesla!

The Tesla Model 3 is the greatest passenger vehicle ever made (now THAT is provocative!)

The Model 3 is the safest and best-performing vehicle in the sports sedan class, and will easily run beyond 200,000 miles. Battery replacements will be unlikely in that range, and the operating costs (fuel and maintenance) will be a fraction what they are to run a conventional vehicle over that time frame - you are looking at $1,000s of savings per year.

As a final point, the residual value of any internal combustion vehicle will be precisely zero by 2030 - nobody will want to own one.
by 209south
Tue Mar 24, 2020 9:40 pm
Forum: Personal Investments
Topic: Any Retirees With AA = 100% Equities?
Replies: 34
Views: 2922

Re: Any Retirees With AA = 100% Equities?

US investors (including me) have led charmed lives the past few decades. BUT consider what happened in Japan over the past 30 years - it may not, but COULD happen here, in which case 100% equities in retirement may be imprudent.
by 209south
Fri Mar 13, 2020 4:02 am
Forum: Investing - Theory, News & General
Topic: TIPS Yield Curve & Changing Inflation Expectations
Replies: 61
Views: 6689

Re: TIPS Yield Curve & Changing Inflation Expectations

I don't know what causes the slight inversion from Feb 2042 to Feb 2050.

This certainly caught my eye. I rebalanced out of some of my TIPs a few days ago and might come back in this morning - if I do I hope that inefficiency will still be there!
by 209south
Thu Mar 12, 2020 6:28 pm
Forum: Personal Investments
Topic: Capitulation
Replies: 59
Views: 6204

Re: Capitulation

I agree with the group that one should stick to one's plan...but I'm not sure your plan should be 88/12 ! That is relatively aggressive at age 45 so the first question is 'what's the ideal asset allocation going forward?' ... and if the answer is (say) 60/40 ... the second question is 'do you move to the new asset allocation asap?', understanding you may be picking the market bottom. Here's the best question. If someone handed you $260k today, how would you invest it...88/12 or something different? If the latter, move to that position asap.
by 209south
Thu Mar 05, 2020 5:11 pm
Forum: Personal Investments
Topic: Asset LOCATION
Replies: 1
Views: 374

Asset LOCATION

Considering the current very low interest rate environment and the commentary about on the 'Super Lazy Portfolio' thread about placing a target date fund in your tax-advantaged assets, the question comes to mind - is standard advice re. asset LOCATION no longer relevant? I have 25% of my assets in a TIPs ladder inside an IRA - seemed to make sense at the time but frankly at these rates the tax on interest is de minimus and I might be better off sheltering potential large equity gains inside the IRA. I'm sure this has been discussed ad nauseum, but with historically low rates is now a time for action?
by 209south
Tue Mar 03, 2020 8:49 pm
Forum: Personal Investments
Topic: 30-year TIPs at negative yields
Replies: 13
Views: 1388

Re: 30-year TIPs at negative yields

nisiprius wrote: Tue Mar 03, 2020 6:55 pm I observed some years ago that you could support 4% withdrawal rate for 30 years with a 0% failure rate using 100% TIPS. That requires a real return of 1.31%.

I assumed that a real return of at least 1.31% on TIPS was virtually certain.

I was wrong, wrong, totally wrong.

Glad I didn't actually try it. Reinvestment risk can be serious.
with 20-20 hindsight you should have loaded up back then, and you would have realized strong returns. I'm happy with my TIPs ladder but not sure I'd build a fresh one today at negative rates...having said that, all markets are toppy, even equities off 15% from all time highs!
by 209south
Tue Mar 03, 2020 8:47 pm
Forum: Personal Investments
Topic: 30-year TIPs at negative yields
Replies: 13
Views: 1388

Re: 30-year TIPs at negative yields

209south wrote: Tue Mar 03, 2020 8:45 pm
Thesaints wrote: Tue Mar 03, 2020 6:57 pm Treasury says 30-year TIPS yield is 0.70%...
not sure where you see that? Pretty sure 30-year TIPs are negative right now (as are 20, 21, 22...29 year TIPs)
sorry, now see the link. Not sure how to reconcile that with WSJ TIPs prices below? (WSJ is the source for #Cruncher's outstanding TIPs ladder excel models

https://www.wsj.com/market-data/bonds/tips
by 209south
Tue Mar 03, 2020 8:45 pm
Forum: Personal Investments
Topic: 30-year TIPs at negative yields
Replies: 13
Views: 1388

Re: 30-year TIPs at negative yields

Thesaints wrote: Tue Mar 03, 2020 6:57 pm Treasury says 30-year TIPS yield is 0.70%...
not sure where you see that? Pretty sure 30-year TIPs are negative right now (as are 20, 21, 22...29 year TIPs)
by 209south
Tue Mar 03, 2020 6:36 pm
Forum: Personal Investments
Topic: 30-year TIPs at negative yields
Replies: 13
Views: 1388

30-year TIPs at negative yields

30-year TIPs yielding NEGATIVE 0.06% currently, having moved dramatically over the past several weeks - the 2040-2050 TIPs are all negative now. I'm approaching retirement and have a comfortable portfolio with some 'Larry' characteristics and also some LMP characteristics. So I'm 35% equities including 10% REITS, 5% bullion and 60% fixed income, about half in nominal 'Vanguard Total Bond' and half in a TIPs ladder to with maturities from 2032 to 2050. I began the TIPs ladder a few years back when many said 'rates are too low, don't do that!' I am obviously happy I disregarded that advice and have done well with the TIPs. I have no plans to alter my asset allocation or overall strategy, but the idea of having over 25% of my portfolio essenti...
by 209south
Mon Mar 02, 2020 8:51 pm
Forum: Personal Investments
Topic: Andrews 3%CD 84-mo Good? (non-retirement accts)
Replies: 12
Views: 1548

Re: Andrews 3%CD 84-mo Good? (non-retirement accts)

hmmm I bought $50k of that in 2016. Are they offering it again? 3% for 84 months seems very attractive.
by 209south
Tue Feb 11, 2020 1:25 pm
Forum: Personal Investments
Topic: BND vs. BNDX
Replies: 4
Views: 1946

Re: BND vs. BNDX

Thank you all for the clarification.
by 209south
Tue Feb 11, 2020 10:27 am
Forum: Personal Investments
Topic: BND vs. BNDX
Replies: 4
Views: 1946

BND vs. BNDX

I've owned Vanguard Total Bond (BND) and Total International Bond (BNDX) for a few years. BNDX has outperformed during my holding period but in mid-December 2019 it seems to have traded down significantly vs. BND. Was that actually a performance issue, or a technical adjustment to the ETF? It won't affect my asset allocation but I'm just curious. (I'd include a graph but don't know how to do that)
by 209south
Mon Feb 10, 2020 7:36 pm
Forum: Personal Consumer Issues
Topic: What is your most luxury/expensive hobby.
Replies: 264
Views: 27788

Re: What is your most luxury/expensive hobby.

Three major hobbies / luxuries:
1. Private golf - member of a fine club in the northeast and a fine club in southeast Florida - $50k per year all-in
2. Travel - one big family vacation per year and several weekend trips etc. - another $50k per year
3. Dining out / ordering in - $25k per year
All completely over-the-top but I'm confident my wife and I will happily cut if/when required as we approach retirement.
by 209south
Wed Jan 29, 2020 10:27 am
Forum: Investing - Theory, News & General
Topic: Gold vs TIPS vs Inflation
Replies: 50
Views: 7630

Re: Gold vs TIPS vs Inflation

TIPs are a wonderful instrument for US investors trying to hedge inflation, and represent 50% of my fixed income allocation. Gold is different - gold is 'money' and represents my entire 'cash' allocation (5% of portfolio; large emergency fund is in $ and is outside portfolio). All the historical return charts are interesting but they are generally US-based and reflect the results of America in the 20th and early-21st century. The charts look a lot different for investors from certain leading economies from (say) 1900...think of the experiences of Germany, Russia, Japan, Argentina, to name a few. I live in the US and am very bullish on America, but 'our day may come' and I sleep well holding bullion.
by 209south
Fri Jan 24, 2020 9:46 pm
Forum: Personal Consumer Issues
Topic: Tesla Model Y
Replies: 266
Views: 32096

Re: Tesla Model Y

haha, true no lidar on Teslas. I bought a Model 3 14 months ago to replace a great car - an Audi S4. Same price point, same 0-60, NO COMPARISON. The Model 3 is smoother and quieter and WAY quicker off the block. The software updates are amazing. An entirely new paradigm in driving, I will never go back to gas. Will be interested to see how the Model Y does. That’s quite a testimonial, but would you concede that overall fit and finish are (significantly?) inferior to the Audi? No, I wouldn't agree with that at all. I drove the S4 for 5 years and loved it enough to buy an SQ5 which is down at my Florida condo - both terrific but ZERO difference in finish quality vs. Tesla. Tesla has the highest customer satisfaction of any vehicle company - ...
by 209south
Fri Jan 24, 2020 8:29 pm
Forum: Personal Consumer Issues
Topic: Tesla Model Y
Replies: 266
Views: 32096

Re: Tesla Model Y

haha, true no lidar on Teslas. I bought a Model 3 14 months ago to replace a great car - an Audi S4. Same price point, same 0-60, NO COMPARISON. The Model 3 is smoother and quieter and WAY quicker off the block. The software updates are amazing. An entirely new paradigm in driving, I will never go back to gas. Will be interested to see how the Model Y does.
by 209south
Thu Jan 16, 2020 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Taking bonus as profit-sharing 401(k) contribution
Replies: 1
Views: 550

Re: Taking bonus as profit-sharing 401(k) contribution

Hoping to do the same thing. I'm 59 so max 401k is $26k leaving room for ~$30k of profit sharing to go to 401k. Did you receive any good answers to your questions?
by 209south
Sun Sep 22, 2019 7:12 am
Forum: Personal Investments
Topic: International Bonds and Stock Allocations
Replies: 15
Views: 1340

Re: International Bonds and Stock Allocations

I have a defensive 35/65 portfolio as I approach retirement - equities are 50/50 US/intl and bonds are 80/20 US/intl. There is no right answer but this allocation works for me.
by 209south
Sat Jun 29, 2019 2:47 pm
Forum: Investing - Theory, News & General
Topic: Why NO International Bond Index ??
Replies: 37
Views: 6147

Re: Why NO International Bond Index ??

I invest in international bonds. I will say why I do, but please know that I am just a regular investor not trying to sway anyone. Others on this forum know way, way more than I. I wanted the diversification. I think many people become weary when they look at the yield on Vanguards website. There is something odd there that I don't fully understand. If you search the forum on International Bond Yield you can read about it. " When you look at total return, International bond funds like BNDX have done better than TBM. BNDX's inception date was 2014. Since then it has out performed BND in every year except one. Since 2014, the CAGR for BNDX is 4.68% and for BND it is 3.34%. Same here. I'm a fan of maximum diversification so when Vanguard...
by 209south
Mon Apr 15, 2019 8:01 pm
Forum: Personal Consumer Issues
Topic: Is Brooks Brothers Shirts are in sale ?
Replies: 17
Views: 2161

Re: Is Brooks Brothers Shirts are in sale ?

I'm a BB fan and the 4 for $200 deal is terrific. I bought a few Thyrwitt shirts but found the cuffs far too tight for my wrists, something I have never experienced with any other shirts...this was 7 or 8 years ago so maybe they've changed?
by 209south
Sun Apr 14, 2019 7:14 pm
Forum: Personal Consumer Issues
Topic: Talk me in/out of $35k Tesla Model 3
Replies: 286
Views: 29612

Re: Talk me in/out of $35k Tesla Model 3

I bought a $55k Model 3 in November so I can't comment directly on the $35k version. My understanding is that the lower-priced version is still available; but not online, probably because Tesla realized (too late) that it makes no sense to make a $35k version when they have plenty of demand for the pricier, longer-ranged, faster, higher-margin models. I think Musk felt this was a promise he had to keep - fine, but keep it in 2020 or 2021 when battery costs are 20% lower and you can do it profitably. I bought my car online, never having visited a Tesla store. The experience was seamless, the car was delivered to me and paperwork took literally three minutes. The car replaced an Audi S4 and is far superior - quicker, smoother, equally-tight t...
by 209south
Sat Apr 13, 2019 9:54 am
Forum: Personal Investments
Topic: Planning pre-retirement
Replies: 14
Views: 2436

Re: Planning pre-retirement

Two things. If I had a known tax liability of $450k a year from now, I'd either just pay it now or I'd buy a 12-month (or 9-month, depending on the dates) CD to defease that liability. I would take zero risk on that i.e. I would not invest that money at your 50-50 asset allocation. At a time when I had high assets and low income I secured a large mortgage via First Republic, a bank that focuses on affluent clients - you should qualify and the service level from First Republic was outstanding.
by 209south
Tue Apr 09, 2019 8:28 pm
Forum: Personal Investments
Topic: Edward Jones CDs
Replies: 17
Views: 2775

Re: Edward Jones CDs

Thanks, kids are 30, 27 and 24 and will be 35, 32 and 29 when Trust expires (unless Grandfather passes earlier). Total value is ~$1.1mm of which $20k is cash and that is being moved to CDs...hopefully will be ~$20k p.a. dividends to move to CDs so in 5 years will be ~$1mm equities and $100 CDs. If it was my money it would be more conservative, this is a material amount of money and I'm not an 'all equities' guy, though I appreciate and respect the arguments of those who are. I've been an observer on this Trust (it is my father-in-laws money), founded 11-12 years ago at the trough - the account started at $360k and is now $1.1mm - I haven't reviewed EJ's expenses (not my role) but it feels good for the Trust to have grown this high.