Like Norman stated above: "I think allocation and personal goals are more important than the entry point. Why? Because “Time in the market beats timing the market”. Allocation is key, and re-allocation along the way keeps your portfolio(s) in check. Thus, pick your poison and stick with the allocation through ups and downs in the market. I always keep a "Margin of Safety" allocation to short-term bonds and a money market to reduce risk and for redeployment as I see necessary.
Did the mechanic discuss changing the timing belt pr chain with you? Not sure what the sequence is for a Honda Accord but it may be time to consider replacing it and the water pump, if it is connected to the timing belt.
And there are other ways to pay for it, taxes is just one way. Another way is to lease Federal lands for mineral rights, and the government collects rent and takes equity in the company that is accessing the natural resources. The money collected goes to the SS Trust to fund the unfunded liabilities. Ok, let's hear some other alternatives to funding the SS Trust, and raising the age limit on (FRA) is OK with me (scaled to age 70). The bigger question is, does Congress have the will to fix the shortfall in the SS Trust?
Jonathan, Praying for you to keep striving and surviving. Keep up the great work, and make peace with those you love and respect. Always found your writings and Humble Dollar to be great advice and about subjects to ponder.
If you are young or under 50, just read up about the Bogle 3 or 4 fund strategy. That's all you need to know. We are not Wall Street slick traders, you don't have high frequency trading (HFT) computers, and you don't have the wherewithal to analyze the S&P 500, much less the great worldwide companies that you must be invested in. "Boglehead 3 Fund Portfolio is a simple, low-cost investment strategy that consists of three index funds: a U.S. Total Stock Market Index Fund, an International Stock Market Index Fund, and a U.S. Total Bond Market Index Fund. Boglehead 4 Fund Portfolio adds Total International Bond Market Index Fund to the mix. Both portfolios aim to provide diversification and long-term growth, with a focus on minimizing costs." That's why, even at my age (73), I added the Pacer funds HERD ETF to many of my portfolios including to my wife's portfolio for worldwide equity coverage wrapped in one ETF. It's not a Target Date Fund, and I do not like their investment methodology.
As long as it is not in a taxable account. Why? Well, mutual funds pay/report capital gains to the IRS and YOU have to report them and pay taxes on them at ordinary income tax rates, well your modified income tax rate. "STCGs are taxed as ordinary income, as are mutual fund distributions of dividends and interest, and this ordinary income tax rate is higher than an investor's long-term capital gains tax rate."Shareholders can choose to receive distributions in cash or reinvest them into their account. Even when distributions are reinvested, shareholders pay taxes on the amounts they receive (unless their assets are held in a tax-advantaged account, such as a traditional IRA or a Roth IRA).
Well, I hope your investments are in a Roth or Tax-deferred accounts. Why, because stupid mutual funds pay capital gains at the end of the year and YOU have to pay taxes on it to the IRS. Mutual funds are OK for 401ks or 403bs but not in taxable accounts. ETFs are more tax-efficient and save you on capital gains taxes. I know, I learned the hard way on one of my wife's accounts. I closed that account and told Morgan Stanley where they could go, in so many words. And they were collecting stupid high mutual fund fees on this account. I call those mutual fund fees "stealth fees" that most people ignore to their detriment. Stick to Fidelity for your accounts and low fee ETFs. And, Fidelity also has a great money market sweep fund as well and a great dashboard to follow your accounts.
Well, I called a professional to fix the vents on the roof, re-seal them and re-paint them where the builder's subcontractor used the wrong paint for aluminum. He also installed a deflector for the large stove vent on the roof, which leaked water during Hurricane Harvey into our cabinet over the stove. Builder denied he could fix it and this professional knew exactly what to do. I've' also hired the painters that do the one-year touch-ups for the builder to repaint the stucco trim around the entire house at year six of ownership. It's elastomeric stucco paint from Sherwin Williams and that was worth the money. I bought the paint while it was on sale and they provided the labor and tools. So, it is all in your control, do you plan for such expenses (I do) or are you just a DIY person at heart?
Comments
Like Norman stated above: "I think allocation and personal goals are more important than the entry point. Why? Because “Time in the market beats timing the market”. Allocation is key, and re-allocation along the way keeps your portfolio(s) in check. Thus, pick your poison and stick with the allocation through ups and downs in the market. I always keep a "Margin of Safety" allocation to short-term bonds and a money market to reduce risk and for redeployment as I see necessary.
Post: Getting Back into the Market Now
Link to comment from May 24, 2025
Did the mechanic discuss changing the timing belt pr chain with you? Not sure what the sequence is for a Honda Accord but it may be time to consider replacing it and the water pump, if it is connected to the timing belt.
Post: How have you decided when it’s worth it to fix an old car?
Link to comment from May 24, 2025
And there are other ways to pay for it, taxes is just one way. Another way is to lease Federal lands for mineral rights, and the government collects rent and takes equity in the company that is accessing the natural resources. The money collected goes to the SS Trust to fund the unfunded liabilities. Ok, let's hear some other alternatives to funding the SS Trust, and raising the age limit on (FRA) is OK with me (scaled to age 70). The bigger question is, does Congress have the will to fix the shortfall in the SS Trust?
Post: You versus Social Security – Quinn is betting against you.
Link to comment from May 3, 2025
Go here to research dividend-paying stocks, ETFs, and Mutual Funds: https://www.dividendchannel.com/ The S.A.F.E 25.
Post: You’ve Come a Long Way, Baby
Link to comment from May 3, 2025
Jonathan, Praying for you to keep striving and surviving. Keep up the great work, and make peace with those you love and respect. Always found your writings and Humble Dollar to be great advice and about subjects to ponder.
Post: Don’t Push It
Link to comment from April 14, 2025
Thanks Dick for your sage advice.
Post: Learned Along the Way
Link to comment from April 22, 2023
If you are young or under 50, just read up about the Bogle 3 or 4 fund strategy. That's all you need to know. We are not Wall Street slick traders, you don't have high frequency trading (HFT) computers, and you don't have the wherewithal to analyze the S&P 500, much less the great worldwide companies that you must be invested in. "Boglehead 3 Fund Portfolio is a simple, low-cost investment strategy that consists of three index funds: a U.S. Total Stock Market Index Fund, an International Stock Market Index Fund, and a U.S. Total Bond Market Index Fund. Boglehead 4 Fund Portfolio adds Total International Bond Market Index Fund to the mix. Both portfolios aim to provide diversification and long-term growth, with a focus on minimizing costs." That's why, even at my age (73), I added the Pacer funds HERD ETF to many of my portfolios including to my wife's portfolio for worldwide equity coverage wrapped in one ETF. It's not a Target Date Fund, and I do not like their investment methodology.
Post: Learned Along the Way
Link to comment from April 22, 2023
As long as it is not in a taxable account. Why? Well, mutual funds pay/report capital gains to the IRS and YOU have to report them and pay taxes on them at ordinary income tax rates, well your modified income tax rate. "STCGs are taxed as ordinary income, as are mutual fund distributions of dividends and interest, and this ordinary income tax rate is higher than an investor's long-term capital gains tax rate." Shareholders can choose to receive distributions in cash or reinvest them into their account. Even when distributions are reinvested, shareholders pay taxes on the amounts they receive (unless their assets are held in a tax-advantaged account, such as a traditional IRA or a Roth IRA).
Post: Did It My Way
Link to comment from April 12, 2023
Well, I hope your investments are in a Roth or Tax-deferred accounts. Why, because stupid mutual funds pay capital gains at the end of the year and YOU have to pay taxes on it to the IRS. Mutual funds are OK for 401ks or 403bs but not in taxable accounts. ETFs are more tax-efficient and save you on capital gains taxes. I know, I learned the hard way on one of my wife's accounts. I closed that account and told Morgan Stanley where they could go, in so many words. And they were collecting stupid high mutual fund fees on this account. I call those mutual fund fees "stealth fees" that most people ignore to their detriment. Stick to Fidelity for your accounts and low fee ETFs. And, Fidelity also has a great money market sweep fund as well and a great dashboard to follow your accounts.
Post: Risky Business
Link to comment from April 12, 2023
Well, I called a professional to fix the vents on the roof, re-seal them and re-paint them where the builder's subcontractor used the wrong paint for aluminum. He also installed a deflector for the large stove vent on the roof, which leaked water during Hurricane Harvey into our cabinet over the stove. Builder denied he could fix it and this professional knew exactly what to do. I've' also hired the painters that do the one-year touch-ups for the builder to repaint the stucco trim around the entire house at year six of ownership. It's elastomeric stucco paint from Sherwin Williams and that was worth the money. I bought the paint while it was on sale and they provided the labor and tools. So, it is all in your control, do you plan for such expenses (I do) or are you just a DIY person at heart?
Post: Did It My Way
Link to comment from April 12, 2023