Bogleheads.org

Congratulations and thanks for sharing. It's amazing how it grows over time. Hopefully an inspiration to those just starting out.

Greetings AustenNut. Cars roughly 4% of net worth was simply what I interpolated from Thomas Stanley's book "The Millionaire Next Door" where he discusses household spending patterns and car buying habits. It's remained part of my IPS since I read the book and have always used this figure ...

20% of gross

Greetings Bogleheads. As the OP, I just wanted to update my post to fill in "the rest of the story" as hopefully it helps someone else. In June 2011 I pulled the trigger and sold my Toyota Avalon and paid cash for a gently used Lexus LS460. Beautiful car, but felt like too much (to me) to ...

Paid off the mortgage in November 2011. No regrets. We're saving extra and are less stressed about cash flow.

35% Total Stock Market Index
35% Total International Stock Index
15% Total Bond Market Index
15% TSP G-Fund

Paid off the mortgage a few months ago. Don't know if it counts as a real splurge, but sure felt like one when I wrote the check.
No regrets.

If one owns a place without a mortgage, should one still consider the cost of capital tied up in it? (There has to be some opportunity cost.) So I question those stating "no mortgage" and "no car note", whether their costs are really that low. And a car also has a depreciation c...

Two homes, two cars, no debt. Expenses were about 6% last year.

rustymutt wrote:Are they here legally?

Yes.

I have a mobile detail guy polish, wax & interior/exterior detail in April and October. Other than that just touchless drive-through to knock off the loose stuff once a month.

Paid $41,000 cash yesterday for a used Lexus LS460. Am very happy with the purchase.

We did end up doing very well financially So, you made a lot of money in real estate? Why would you discourage someone from doing the same when they could avoid the risks you took? How did you dissolve your holdings? Did you just sell when you thought the market was high and paid the taxes? Everyti...

Sounds like Dollysods84 could learn from your mistakes. There is a learning curve and not repeating mistakes moves you further down the road to success. Probably more important than knowing what a successful person does. Okay, will do. Funny thing is it worked out...barely. Even now I cringe when I...

BLUF: Rent, don't buy. I've been exactly where you are now as a serial property buyer. Early in my military career I had rentals in Hinesville GA, the DC area and Texas (10 houses total). Knowing what I know now I'd strongly suggest you not buy another house. In fact, I'd sell the first one when you...

I'm wearing my avatar. Go Army!

Refinanced 3 years ago to a 10-year. Although we could possibly make more investing the difference on a longer term, we are still saving 30% of our incomes and once the house is paid off we have the option of either continuing to invest the former mortgage payment or simply cut back/quit working. So...

Deciding on a career field very early in life (decided on healthcare at age 10) and sticking with it has paid off. Also not switching jobs has turned out to be a good "investment", although it would be an understatement to say that military life can be really tough on a family. That said, ...

Our goal has been to keep living expenses to around 30% of household gross income. Basically our thought is 1/3rd to taxes, 1/3rd to live on and 1/3rd for savings and investments.

Ruger Air Hawk .177

When I first saw the thread title, I thought "free".

heytred, First off, thanks for serving your country. I agree that you should do nothing until you read more and really understand and have internalized how investing works. Resist the urge to "do something" without first gathering wisdom. Custodial transfer from USAA to VG would probably b...

T-Mobile prepaid (no contract): unlimited talk/text/data: $70/mo.

Love my Dell Streak 5"

I have always used 2% of "house value" meaning implied rebuild value of the structure with no premium for the area or land value. This has worked well so far. Sometimes the account seems fat and then a large expense comes along and I'm glad the money is there. Home repairs and maintenance ...

Don't forget about alternative pharma sector funds:
(WEED) and (GNJA)

Never invested personally, but heard about 'em "on the street".

A garage ceiling tall enough to accomodate a parking/maintenance lift.

The combined ER of the portfolio you listed is 1.3672%, which is coming directly out of your returns each and every year. This is is 7x the cost of VG Intermediate Term Tax Exempt (VWITX) and 8x the cost of VG Tax Exempt MM (VMSXX). As others have said, I think it's no question you'll do better long...

To novastepp: What's your goal here? Please explain. I am utterly confused as to the benefits of opening up credit card accounts in your situation. At 25 years of age, student loans and history of on-time lease payments should be more than enough to build a credit rating over time. Why on Earth doe...

As in... Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) or Vanguard Intermediate-Term Tax-Exempt Fund Investor Shares (VWITX) ...would be appropriate choices to be held in a taxable account until that time I've been able to build up my IRA holdings? Those would certai...

Your asset allocation appears okay. More importantly, what's your savings rate? At your current level of savings the amount you're putting aside probably matters more than how it's invested.

My rule of thumb has been not to have more than 4% of household net worth in vehicles. Tough to stick with sometimes, but has served us well.

Miskatonic wrote:In a bull market, people would be needing to furiously add Bonds or the like to maintain their AA, how do you do it, where do you put them?

thanks,

I use an intermediate muni bond fund for this purpose.

4,000 sf main + 800 sf guest house, and is by far the smallest house in the neighborhood. We hire out housekeeping and yard maintenance. Absolutely love the home and area. Just us & one kid.

I'm not following your logic. Even if you pay cash for a car, wouldn't that money have also been accumulated with after tax wages? Sure, the taxes are always there but not the additional financial drag of interest payments or potential cash flow squeeze that may result from required future monthly ...

Maybe I'm financially unsophisticated, but I sincerely don't understand the virtues of debt arbitrage and of holding on to "low cost" debt for the stated purpose of building wealth faster. When I take on debt to buy something I pay back the loan using after tax wages - so my labor must gen...

To C319 I'm facing this issue now with my own parents and it is really heartbreaking I copied your story for my wife to read. She said to tell you that your parents have a wonderful child....You!. And I agree. She would like to know how you obtained your values. You evidently did not inherit them. ...

I think that for some people, especially older people with a relatively short life expectancy, it is rational to keep spending and not worry about their debt anymore, especially if people are willing to lend them more money. If you do not have the desire to leave an inheritance, when you are dead, ...

I'm facing this issue now with my own parents and it is really heartbreaking. My parents are very nice people who worked hard their whole lives but mismanaged their finances due to impulsive decision making. My father never believed in saving/investing and my mom knew better but wouldn't speak up. N...

Currently 10% of equities in the Vanguard Variable Annuity REIT Index (0.61% ER) .

I hate debt so I pay cash. I find that the pain of parting with cash makes me more thoughtful about car purchases. Financing is too easy because I don't feel like I'm spending "real" money and my choices end up being somewhat less rational. For example, I'd really like a Lexus LS460, (I po...

Oral and Maxillofacial Surgeon here. Congratulations and wish you the best of luck in your career as a dentist. More debt always equals more risk. Minimize your new debt as much as possible and focus your energy on getting good grades and enjoying life when you can. I would also submit that your lif...

Tramper Al wrote:Yes, and I only wish I had written something like that.

Yeah. Great minds think alike.

To the OP - another book you might find helpful is: T he Physician's Guide To Investing by Doroghazi and French. Co-written by a cardiologist and a finance professor, the book addresses some of the concerns you may have as a physician. The authors discuss the basics of investing as well as how to di...

I decided to hold a 6% allocation to REITs in a Vanguard VA (0.595% ER) due to lack of tax-advantaged space. From what I've read a VA only makes sense if most or all the following apply: 1) if a low-cost VA (e.g. Vanguard) 2) if in the highest income-tax bracket 3) if holding high-dividend producing...

We save 30% of gross household annual income. Raises affect our nominal savings target only marginally.

It's been my experience that some (not all) advisors who specifically go after docs as clients do so because as a group they are an easy mark. Overconfidence bias, deep pockets, a large ego and an aversion to saying "I don't understand" gets people taken to the cleaners. Years ago one of m...

"Relativity: The Special and the General Theory" by Albert Einstein, and "Treatise on Thermodynamics" by Max Planck. I read these during summer vacation when I was around 11 years old. Successfully slogging through these books taught me that I really could understand any subject ...

You never truly know how much is "enough" because the future is unknowable. As a compulsive saver I find two things tremendously helpful: 1) Annual review with a fee-only financial planner who can objectively and unemotionally look at our financial situation and tell us if we're on the rig...

In true Boglehead fashion - zero. Okay friends, will someone please explain what being a Boglehead has to do with hiring, or not hiring someone to clean your house? If the expense fits within the scope of one's financial world then I don't see what difference it makes. I figure 4 or 5 hours of hous...

$140 per visit to clean a 4,000 sf home (and 800 sf guest house) in 4 to 5 hours with two people. They have their own key. After 10 years with us, we trust them to be there when we're not. I forgot to mention this includes the usual cleaning duties, plus washing & folding laundry, washing windo...