Randy Starks

Comments:

• 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

• Interesting, I bought my last house when I was 67 because I had $120k down, planned for repayment in less than seven years, and paid it off last year (one-year early). Thus, I got a seven-year adjustable rate mortgage (3.75%). We right-sized down from a two story to a one story roughly the same size, so I would not have to go up and down the stairs in old age. LOL Stay healthy folks!

  Post: Disney or Bust

  Link to comment from April 12, 2023

• Been there done that, credit debt is the worse, and It's a terrible life lesson. I was in over $200,000 in credit card debt when I got divorced. It's a long story but SH!T happens. Her attorney suggested we rob my 401k and pay off all the debt, I negotiated a settlement with most of the companies and/or we paid them off in full. Some of them would not negotiate and I didn't hire one of those blood sucking credit repair companies. They are a scam and you can DIY. And, yes you can rob your 401k (I was putting in the company match in my 401k 9% for years) in a divorce with no penalty with the IRS. Legal eagles are worth it most times, if they are honest. Learned my lesson and I could not get a credit card for a $300 line of credit for years except for a prepaid card BS. Paid cash for everything, kept putting 9% or more in my 401k until I retired 9 years later, and had built it back up to $460k. Amazingly, I qualified for a mortgage in 2014, at my credit union at work because I had re-established my credit after seven years. Why seven years? Well, that's because one of the credit card companies reported the settlements (2) as "charge offs" to the 3 credit bureaus not as settlements. That stays on your record just like a Chapter 13 bankruptcy, unfortunately and you have no say in the credit report notes. Oh, I have to beat the credit card companies off with a stick now because I have a fluctuating FICO 8 score above 800 to 840 for the last six years, so what goes around comes around in the end.

  Post: Disney or Bust

  Link to comment from April 12, 2023

• Exactly, the barbell strategy today is a good one. Shorten up on your bonds, add a money market fund, and de-risk your stock portfolios, which include REITs. And add some type of general commodity, Gold or Silver ETF, your choice until the Debt Ceiling issue is resolved. PS - Congress will raise the debt ceiling, which just kicks the can down the road. U.S. Debt is unsustainable and fiscal policy is out-of-control. De-dollarization is in full bloom around the World. Watch out for the BRICS+, the PetroDollar is dead. https://www.aier.org/article/de-dollarization-has-begun/

  Post: Building a Barbell

  Link to comment from April 5, 2023

• Another strategy is the Bogleheads 3-fund portfolio. Simple, diversified, and you can trim or add as you please. With a target date fund you are stuck with the good, the bad, and their idea of allocation changes in the portfolio, which I believe is overly skewed towards bonds as you get closer to the maturity date. Even the Target-Date retirement income portfolio is over skewed towards bonds. As far as the % of stocks in a retirement portfolio, I use the (120 – your age) formula as the benchmark and will only change it every five years. So, at age 70, it’s minimum 50% stocks. Here’s the Vanguard Target Retirement Fund asset allocation (Not even 30% stocks): Vanguard Total Bond Market II Index Fund 8 – 37.30% Vanguard Total Stock Market Index Fund Institutional Plus Shares – 17.40% Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares – 16.90% Vanguard Total International Bond II Index Fund – 16.30% Vanguard Total International Stock Index Fund Investor Shares – 12.10%

  Post: Better Than Buffett?

  Link to comment from April 1, 2023

• For retirement portfolio allocations I use (120 - my age) and a modified three bucket retirement strategy. RMDs go to the taxable account for whatever during the year. Its invested in BIL, DRLL and a money market fund. https://money.usnews.com/money/retirement/401ks/articles/how-to-use-the-retirement-bucket-strategy

  Post: So Much to Like

  Link to comment from April 1, 2023