Calgarypuck Forums - The Unofficial Calgary Flames Fan Community
Old 05-22-2019, 02:12 PM   #181
MoneyGuy
Franchise Player
 
MoneyGuy's Avatar
 
Join Date: May 2006
Exp:
Default

Quote:
Originally Posted by bizaro86 View Post
Interesting - thanks for sharing. I actually tried to buy first-to-die insurance once. When were first married, neither my wife nor I could have covered our mortgage, but we had no kids. I figured why pay extra for a second payout, if one of us died the other one probably needed the money, but if we both died I didn't see a big reason to make sure our relatives ended up with a huge windfall. But the difference in cost between two regular term policies and a joint first-to-die was only a few percent, so I just bought the term policies.
As an insurance broker your reasoning is sound. A client-centred agent should have those conversations with clients to make sure theyíre using the right type and amount of insurance. I favour loading up on term insurance, in most cases, but not buying the wrong kind that may generate a bigger commission for the seller.
MoneyGuy is offline   Reply With Quote
Old 11-01-2020, 03:25 PM   #182
Johnny199r
Powerplay Quarterback
 
Join Date: Feb 2014
Location: Uzbekistan
Exp:
Default

Time for an update a year and half later.

Are people on track? Has COVID or the difficult job market set you back? Are you investing? If so, what are you doing?
Johnny199r is offline   Reply With Quote
Old 11-01-2020, 03:52 PM   #183
indes
First Line Centre
 
indes's Avatar
 
Join Date: Nov 2010
Location: Sherwood Park, AB
Exp:
Default

Dp
indes is offline   Reply With Quote
Old 11-01-2020, 03:53 PM   #184
indes
First Line Centre
 
indes's Avatar
 
Join Date: Nov 2010
Location: Sherwood Park, AB
Exp:
Default

Quote:
Originally Posted by indes View Post
No
Still buying 2 lottery tickets a week. It's not going well.
indes is offline   Reply With Quote
The Following 4 Users Say Thank You to indes For This Useful Post:
Old 11-01-2020, 04:00 PM   #185
keratosis
#1 Goaltender
 
keratosis's Avatar
 
Join Date: Oct 2005
Location: Not sure
Exp:
Default

I know. W T F!
__________________
Quote:
Originally posted by Bingo.
Maybe he hates cowboy boots.
keratosis is offline   Reply With Quote
Old 11-01-2020, 04:23 PM   #186
HockeyIlliterate
Powerplay Quarterback
 
Join Date: Jun 2013
Exp:
Default

Quote:
Originally Posted by Johnny199r View Post
Time for an update a year and half later.

Are people on track? Has COVID or the difficult job market set you back? Are you investing? If so, what are you doing?
Iíll say this much:

I got laid off in March. I have not been looking for a job. Wife and I decided to move, so we bought a house in a different city (paid cash, previously only rented for our adult lives).

I havenít been contributing to any investments since last November, when word of approaching layoffs began.

But I track my net worth every 15 days, and from EOY 2019 to today, my investment balance is up about 2.9% and total net worth (not counting the house, so just investments plus cash) is only off by about $60k, primarily due to the house purchase.

I have been extremely lucky. I got a decent severance which helped to pay for the house, or at least made the purchase price easier to accept. And I have always saved at least 50% of my net when I was working.

My investments are a simple 3 fund Boglehead type portfolio: 50% total us stock market, 10% total international stock market, and 50% bonds. I do not intend to ever sell, except to tax loss harvest, but Iím always invested according to my asset allocation. Going forward, I hope to live off of dividends and interest payments. I guess Iíll see how that plan ends up going....
HockeyIlliterate is offline   Reply With Quote
The Following 3 Users Say Thank You to HockeyIlliterate For This Useful Post:
Old 11-01-2020, 04:29 PM   #187
Johnny199r
Powerplay Quarterback
 
Join Date: Feb 2014
Location: Uzbekistan
Exp:
Default

Quote:
Originally Posted by HockeyIlliterate View Post
Iíll say this much:

I got laid off in March. I have not been looking for a job. Wife and I decided to move, so we bought a house in a different city (paid cash, previously only rented for our adult lives).

I havenít been contributing to any investments since last November, when word of approaching layoffs began.

But I track my net worth every 15 days, and from EOY 2019 to today, my investment balance is up about 2.9% and total net worth (not counting the house, so just investments plus cash) is only off by about $60k, primarily due to the house purchase.

I have been extremely lucky. I got a decent severance which helped to pay for the house, or at least made the purchase price easier to accept. And I have always saved at least 50% of my net when I was working.

My investments are a simple 3 fund Boglehead type portfolio: 50% total us stock market, 10% total international stock market, and 50% bonds. I do not intend to ever sell, except to tax loss harvest, but Iím always invested according to my asset allocation. Going forward, I hope to live off of dividends and interest payments. I guess Iíll see how that plan ends up going....
Your planning and discipline has served you well. Well done.
Johnny199r is offline   Reply With Quote
The Following 2 Users Say Thank You to Johnny199r For This Useful Post:
Old 11-01-2020, 04:39 PM   #188
Mr.Coffee
damn onions
 
Mr.Coffee's Avatar
 
Join Date: Mar 2006
Exp:
Default

Quote:
Originally Posted by HockeyIlliterate View Post
Iíll say this much:

I got laid off in March. I have not been looking for a job. Wife and I decided to move, so we bought a house in a different city (paid cash, previously only rented for our adult lives).

I havenít been contributing to any investments since last November, when word of approaching layoffs began.

But I track my net worth every 15 days, and from EOY 2019 to today, my investment balance is up about 2.9% and total net worth (not counting the house, so just investments plus cash) is only off by about $60k, primarily due to the house purchase.

I have been extremely lucky. I got a decent severance which helped to pay for the house, or at least made the purchase price easier to accept. And I have always saved at least 50% of my net when I was working.

My investments are a simple 3 fund Boglehead type portfolio: 50% total us stock market, 10% total international stock market, and 50% bonds. I do not intend to ever sell, except to tax loss harvest, but Iím always invested according to my asset allocation. Going forward, I hope to live off of dividends and interest payments. I guess Iíll see how that plan ends up going....
Would you ever stray from your investment strategy (adds up to 110% by the way, assumed typo on bonds?). By this I mean given the direction on US, and that people like Buffett whoís always historically been a pro US stocks kinda guy and seems to be distancing himself slightly from that strategy combined with the future of that nation, would you ever move away from US markets and shift to more international?
Mr.Coffee is offline   Reply With Quote
Old 11-01-2020, 04:50 PM   #189
HockeyIlliterate
Powerplay Quarterback
 
Join Date: Jun 2013
Exp:
Default

Quote:
Originally Posted by Mr.Coffee View Post
Would you ever stray from your investment strategy (adds up to 110% by the way, assumed typo on bonds?). By this I mean given the direction on US, and that people like Buffett who’s always historically been a pro US stocks kinda guy and seems to be distancing himself slightly from that strategy combined with the future of that nation, would you ever move away from US markets and shift to more international?
Sorry about the typo: meant 40% on US stocks. So essentially a 50/50 stock bond split.

I don’t really see straying from my current split except as noted in the ETA below. 10% international is 20% of my total equity allocation, and I’m comfortable with that. A lot of people (experts, real and armchair) suggest anywhere from 10 to 33% of equities be in international, so 20% is a happy medium for me.

Plus, many US companies have a lot of international exposure already, so even my 40% us stock holding has a bit of a hidden and embedded international component to it.

ETA: also, at some point, one cares more about maintaining the portfolio than growing it significantly. I may be there now, where I care more about a return of the portfolio than a return on the portfolio, which explains the rather conservative asset allocation. I could end getting killed by inflation, for example, but I’m willing to take that risk now. If inflation really spikes or I feel comfortable with the annual spend, I may drift to a 60/40 portfolio, but I don’t think anyone can really market time inflation and portfolio drift is probably a few years away anyway.

Last edited by HockeyIlliterate; 11-01-2020 at 04:57 PM.
HockeyIlliterate is offline   Reply With Quote
Old 11-01-2020, 05:54 PM   #190
Enoch Root
Franchise Player
 
Join Date: May 2012
Exp:
Default

Quote:
Originally Posted by HockeyIlliterate View Post
Sorry about the typo: meant 40% on US stocks. So essentially a 50/50 stock bond split.

I donít really see straying from my current split except as noted in the ETA below. 10% international is 20% of my total equity allocation, and Iím comfortable with that. A lot of people (experts, real and armchair) suggest anywhere from 10 to 33% of equities be in international, so 20% is a happy medium for me.

Plus, many US companies have a lot of international exposure already, so even my 40% us stock holding has a bit of a hidden and embedded international component to it.

ETA: also, at some point, one cares more about maintaining the portfolio than growing it significantly. I may be there now, where I care more about a return of the portfolio than a return on the portfolio, which explains the rather conservative asset allocation. I could end getting killed by inflation, for example, but Iím willing to take that risk now. If inflation really spikes or I feel comfortable with the annual spend, I may drift to a 60/40 portfolio, but I donít think anyone can really market time inflation and portfolio drift is probably a few years away anyway.
That is a US centric view, by the way. Outside the US, the balance between US and non-US is more proportional.

Currently, the US stock market is a little more than 50% of the global market (because the US has performed well over the last year), but as a general rule, the US is about half the global market. And that being the case, 50/50 exposure seems more appropriate (and is what you are more likely to see from asset managers outside the US).

Are you American or Canadian?

The reason I ask is the fact that, if you are Canadian, you are also carrying a lot of USD currency exposure. Yes, it is easily hedged, but a) most people don't hedge, and b) hedging isn't free. However, if you go 50/50 global/US, you also have a more balanced currency exposure (most currencies move against the USD, and being weighted 50% US, 50% global, tends to balance pretty well over time).

Just some things to think about.
Enoch Root is offline   Reply With Quote
Old 11-01-2020, 07:14 PM   #191
HockeyIlliterate
Powerplay Quarterback
 
Join Date: Jun 2013
Exp:
Default

Quote:
Originally Posted by Enoch Root View Post
Are you American or Canadian?
I’m an American.

But often wish I were Canadian. Sure do miss living there.

ETA: I get your point about a market weighting between US and International. At the same time, though, due to quirks in the US tax code, the foreign tax credit becomes less valuable or unrealizable (at least fully) in lower tax brackets, and potentially worthless if you are living completely (or mostly) off of dividends and capital gains and stay in the 0% tax bracket. In that instance, the extra “risk” that one may get from international holdings may not be fully compensated for.

Last edited by HockeyIlliterate; 11-01-2020 at 07:23 PM.
HockeyIlliterate is offline   Reply With Quote
Old 11-01-2020, 08:10 PM   #192
bizaro86
Franchise Player
 
bizaro86's Avatar
 
Join Date: Sep 2008
Exp:
Default

My net worth is likely down this year. I've had an exceptionally great year in my investment accounts, but my over-allocation to Calgary real estate has offset that and then some. Plus my primary income is my business which is related to travel, so my income has been down big as well. Ah 2020.
bizaro86 is offline   Reply With Quote
Old 11-01-2020, 11:46 PM   #193
RichieRich
Powerplay Quarterback
 
Join Date: Dec 2017
Exp:
Default

Quote:
Originally Posted by HockeyIlliterate View Post
Iím an American.

But often wish I were Canadian. Sure do miss living there.

ETA: I get your point about a market weighting between US and International. At the same time, though, due to quirks in the US tax code, the foreign tax credit becomes less valuable or unrealizable (at least fully) in lower tax brackets, and potentially worthless if you are living completely (or mostly) off of dividends and capital gains and stay in the 0% tax bracket. In that instance, the extra ďriskĒ that one may get from international holdings may not be fully compensated for.
Am trying to understand why such a large reliance upon the bond market? 50% is huge for something that according to many pundits (and FIRE blogs) probably doesnít have a lot of upside. Instead itís considered way less risky but also return averse.
RichieRich is offline   Reply With Quote
Old 11-02-2020, 08:16 AM   #194
Enoch Root
Franchise Player
 
Join Date: May 2012
Exp:
Default

Quote:
Originally Posted by HockeyIlliterate View Post
Iím an American.

But often wish I were Canadian. Sure do miss living there.

ETA: I get your point about a market weighting between US and International. At the same time, though, due to quirks in the US tax code, the foreign tax credit becomes less valuable or unrealizable (at least fully) in lower tax brackets, and potentially worthless if you are living completely (or mostly) off of dividends and capital gains and stay in the 0% tax bracket. In that instance, the extra ďriskĒ that one may get from international holdings may not be fully compensated for.
Correct, which is why I asked. Being an American, due to the US tax code, and also considering that you don't have currency risk with domestic stocks, your over-weighting of US stocks is not only normal, it makes sense.

For everyone else, it doesn't.

Just another example of US protectionism.
Enoch Root is offline   Reply With Quote
The Following User Says Thank You to Enoch Root For This Useful Post:
Old 11-02-2020, 08:21 AM   #195
Lubicon
Franchise Player
 
Join Date: Jun 2015
Exp:
Default

Quote:
Originally Posted by Johnny199r View Post
Time for an update a year and half later.

Are people on track? Has COVID or the difficult job market set you back? Are you investing? If so, what are you doing?
Trying to stay on track but it's tough. Covid and the resultant downturn in the energy industry has resulted in the double whammy of my employer eliminating their RRSP program. It was small (matched max 2% of my income) but I still need to make up for that to keep my contributions even. And we took a 20% pay cut so the make up has to come from less take home pay. I should add we've been on a pay freeze since 2014 so my 20% pay cut is 20% of what I was making in 2014.
Lubicon is offline   Reply With Quote
Old 11-02-2020, 09:35 AM   #196
rotten42
Powerplay Quarterback
 
rotten42's Avatar
 
Join Date: Oct 2012
Location: Calgary
Exp:
Default

My divorce took care of any reasonable retirement. That's ok thought because I love my job and can keep doing it.
rotten42 is offline   Reply With Quote
The Following 2 Users Say Thank You to rotten42 For This Useful Post:
Old 11-02-2020, 09:37 AM   #197
Enoch Root
Franchise Player
 
Join Date: May 2012
Exp:
Default

Quote:
Originally Posted by rotten42 View Post
My divorce took care of any reasonable retirement. That's ok thought because I love my job and can keep doing it.
That reminds me of this...

Why is divorce so expensive?

Because it's worth it!
Enoch Root is offline   Reply With Quote
The Following 5 Users Say Thank You to Enoch Root For This Useful Post:
Old 11-02-2020, 09:42 AM   #198
Erick Estrada
Franchise Player
 
Erick Estrada's Avatar
 
Join Date: Oct 2006
Location: San Fernando Valley
Exp:
Default

Quote:
Originally Posted by Lubicon View Post
Trying to stay on track but it's tough. Covid and the resultant downturn in the energy industry has resulted in the double whammy of my employer eliminating their RRSP program. It was small (matched max 2% of my income) but I still need to make up for that to keep my contributions even. And we took a 20% pay cut so the make up has to come from less take home pay. I should add we've been on a pay freeze since 2014 so my 20% pay cut is 20% of what I was making in 2014.
Jeez that sucks. I guess these days we can be just happy to have a job but I assume it's a good place to work given how much they have stripped from you going back to 2014?
Erick Estrada is offline   Reply With Quote
Old 11-02-2020, 09:42 AM   #199
Ozy_Flame

Posted the 6 millionth post!
 
Ozy_Flame's Avatar
 
Join Date: Feb 2002
Exp:
Default

For retirement preparedness, I use a country cost-of-living scale.

Ideally I could retire at level comfortable in Norway, Switzerland, or Canada. I am shooting for nothing less than a Costa Rica, Portugal or Estonia. Currently I'm sitting at about a Kazakhstan/Moldova/Sri Lanka level of readiness.

So in other words, I have a ways to go
Ozy_Flame is offline   Reply With Quote
Old 11-02-2020, 09:47 AM   #200
Lubicon
Franchise Player
 
Join Date: Jun 2015
Exp:
Default

Quote:
Originally Posted by Erick Estrada View Post
Jeez that sucks. I guess these days we can be just happy to have a job but I assume it's a good place to work given how much they have stripped from you going back to 2014?
It's a good place, but also right now there are no alternatives. All our competitors are in a similar position and I'm in a pretty specialized field so there isn't really anywhere to go.
Lubicon is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -6. The time now is 02:40 AM.

Calgary Flames
2022-23




Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2023, Jelsoft Enterprises Ltd.
Copyright Calgarypuck 2021