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Re: How many of you invest in individual stocks?

I own some Google and Apple stock but that's it. I believe those two companies will continue to be the dominant technologies of this generation and they seem to be making the right moved to keep from being passed up by others. We'll see. I own about $20k in each.
by LFKB
Sun Mar 29, 2015 11:40 am
 
Forum: Investing - Theory, News & General
Topic: How many of you invest in individual stocks?
Replies: 32
Views: 1068

Re: how much mortgage would you be comfortable with?

To the other posters, I would argue that the mortgage to gross income multiple should be higher for high earning families. Don't forget, we have a very "progressive" income tax system in this country. At higher incomes, using gross income is probably not always the best idea.... I mention...
by LFKB
Thu Mar 26, 2015 3:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: how much mortgage would you be comfortable with?
Replies: 43
Views: 4249

Re: how much mortgage would you be comfortable with?

To the other posters, I would argue that the mortgage to gross income multiple should be higher for high earning families. The family making $1M a year is 10x higher in terms of income relative to the family making $100k a year, but may spend only 3x on normal monthly non housing expenses, so there...
by LFKB
Thu Mar 26, 2015 10:38 am
 
Forum: Personal Finance (Not Investing)
Topic: how much mortgage would you be comfortable with?
Replies: 43
Views: 4249

Re: how much mortgage would you be comfortable with?

Jeff D, A comment from thewhitecoatinvestor.com site comes to mind... "Debt never sleeps...". With one more year of focused effort, you could kill the loan debt and increase your down payment while renting. You avoid paying interest twice basically on studen loan debt and mortgage debt an...
by LFKB
Thu Mar 26, 2015 12:35 am
 
Forum: Personal Finance (Not Investing)
Topic: how much mortgage would you be comfortable with?
Replies: 43
Views: 4249

Re: how much mortgage would you be comfortable with?

OP, how much is your after tax income and how much do you spend on everything else other than housing inp a year? The key is to know your after tax income, how much you spend on everything else, and then with whatever is left come up with an allocation for X% to mortgage payments and Y% to savings. ...
by LFKB
Wed Mar 25, 2015 11:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: how much mortgage would you be comfortable with?
Replies: 43
Views: 4249

Re: Help Explain Turbo Tax Calculation of "Federal Taxes You

I was able to figure it out. The table and calculators I was using do not factor in AMT, which bridged the difference.
by LFKB
Thu Mar 12, 2015 10:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Explain Turbo Tax Calculation of "Federal Taxes You Ow"
Replies: 2
Views: 355

Help Explain Turbo Tax Calculation of "Federal Taxes You Ow"

Turbo Tax says the "Federal Taxes I Owe" are $91,892. My federal taxes withheld according to Turbo Tax are $83,852 (which includes $82,414 federal taxes withheld from my W-2 and $1,438 Additional Medicare Tax from my W-2). So according to Turbo Tax I owe $8,040 in federal taxes. Turbo Tax ...
by LFKB
Thu Mar 12, 2015 9:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Explain Turbo Tax Calculation of "Federal Taxes You Ow"
Replies: 2
Views: 355

Re: Help Me Calculate My Monthly Housing Cost

You should use something like TurboTax to actually calculate the tax impact. Because of AMT and various phaseouts it's not necessarily as straightforward as you present. Ok thanks. I will look into that. My general understanding of the tax deductiblity of interest (limited to $1.1M principal value)...
by LFKB
Sun Mar 08, 2015 6:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 570

Re: Help Me Calculate My Monthly Housing Cost

NotWhoYouThink wrote:One reason to model this in tax software is that these deductions may push you into AMT, or maybe you are already there. In which case there will be no federal tax savings on the property tax. Lots of moving parts here.


Which tax software do you recommend?
by LFKB
Sun Mar 08, 2015 4:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 570

Re: Help Me Calculate My Monthly Housing Cost

You should use something like TurboTax to actually calculate the tax impact. Because of AMT and various phaseouts it's not necessarily as straightforward as you present. Ok thanks. I will look into that. My general understanding of the tax deductiblity of interest (limited to $1.1M principal value)...
by LFKB
Sun Mar 08, 2015 4:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 570

Re: Help Me Calculate My Monthly Housing Cost

You didn't state the term of the mortgage. Here's an online Interest-only mortgage calculator . A 30 year mortgage, 7 year interest only, $ 2M amount, 2.5% results in (view report): 84 monthly payments of $4,166.67 ($50k/ year) 276 monthly payments of $9,535.61 Total payments: $2,981,829.65 Total i...
by LFKB
Sun Mar 08, 2015 4:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 570

Re: Help Me Calculate My Monthly Housing Cost

You should use something like TurboTax to actually calculate the tax impact. Because of AMT and various phaseouts it's not necessarily as straightforward as you present. Ok thanks. I will look into that. My general understanding of the tax deductiblity of interest (limited to $1.1M principal value)...
by LFKB
Sun Mar 08, 2015 3:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 570

Re: Help Me Calculate My Monthly Housing Cost

Why are you looking at an Interest-Only Mortgage loan? It's a lower interest rate than a fixed and still gives the flexibility to pay down principal at anytime if we choose. At 1.95% tax effected cost of debt I don't necessarily see the need to pay down principal though, I would rather have the mon...
by LFKB
Sun Mar 08, 2015 3:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 570

Help Me Calculate My Monthly Housing Cost

We are in the market for a first home. I want to make sure I am calculating the monthly cost correctly and thinking through everything. For hypothetical purposes let's say the house is $2.75M, the mortgage is $2 million and assume a 40% tax rate. 7 year interest only loan at 2.5%: $50k per year. Cal...
by LFKB
Sun Mar 08, 2015 3:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 570

Re: Is there a site that shows past/present market cap data?

I don't know what the 4 to 1 rule is either. I think maybe he means that TSM is about 80% large cap and 20% mid and small cap? I think the actual percentage is 70% large, 20% mid and 10% small but it all depends on what parameters you set for small, Mid and large.
by LFKB
Thu Feb 19, 2015 11:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is there a site that shows past/present market cap data?
Replies: 15
Views: 394

Re: The 8x retirement savings rule

So if I make $1 million per year but spend $20k per year I need $8 million to retire? This is why the rule of thumb around here is based on spend in retirement, not income pre retirement.
by LFKB
Thu Feb 19, 2015 10:16 pm
 
Forum: Investing - Theory, News & General
Topic: The 8x retirement savings rule
Replies: 83
Views: 8071

Re: Update: 6 years into Buffett's Bet With Hedge Funds

Not all hedge funds and private equity are bad. They are certainly more risky and less diversified, but I invested in a PE fund which is marked at 3.5x the original investment amount after just one year.
by LFKB
Tue Dec 09, 2014 2:46 am
 
Forum: Investing - Theory, News & General
Topic: Update: 6 years into Buffett's Bet With Hedge Funds
Replies: 24
Views: 2897

Re: High(ish) earner; spending too much?

Sounds reasonable enough to me. I make about the same amount as you and my fiance makes a bit less than I do so combined we make quite a bit more. We are 28 and spend a decent amount (about $100k per year before rent). We probably travel 15-18 times per year with one week to week and a half trip and...
by LFKB
Mon Dec 08, 2014 8:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: High(ish) earner; spending too much?
Replies: 71
Views: 9295

Re: Start saving for House downpayment using Wellesley?

Seems reasonable to me as long as you are okay with the tax inefficiency aspect of Wellseley. It's highly unlike that you get a 20% drop as others have said; that would equate to about a 60% drop in the equity portion assuming the bonds hold up.
by LFKB
Mon Dec 08, 2014 1:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Start saving for House downpayment using Wellesley?
Replies: 35
Views: 3392

Re: Do we have too much house?

I will never understand the posters that say "if you are asking then you probably know." Clearly the OP is asking because he/she doesn't know and wants feedback from more knowledgable posters. Agree that the math is fuzzy. Impossible to answer the question without clarifying what the true ...
by LFKB
Wed Dec 03, 2014 12:56 am
 
Forum: Personal Finance (Not Investing)
Topic: Do we have too much house?
Replies: 45
Views: 4601

Re: Share your networth progression

/.[/quote] Your working career was under 6 years? How old are you? Is your wife still working? Seems like a very small amount to retire off of if you're young.[/quote] I worked 5 years and retired at 34 (spent a long time in school). My spending, including childcare, comes to $20-25K/year, with a pa...
by LFKB
Tue Dec 02, 2014 11:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Share your networth progression
Replies: 132
Views: 24982

Re: Share your networth progression

My progression: 1/1/09: -$210K (started working this year) 1/1/10: -$120K 1/1/11: -$35K 1/1/12: $150K 1/1/13: $300K 1/1/14: $510K 8/1/14: $690K (retired) I averaged income a bit over $200K/year and had substantial investment/trading gains to help. If you include my wife's assets, we are over $1mn. ...
by LFKB
Tue Dec 02, 2014 9:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Share your networth progression
Replies: 132
Views: 24982

Re: 23 year old... Can I afford a Rolex?

For $5,000 you could buy 500 malaria nets and save about two lives . Sounds like a lot more fun to me than having a watch that's nice to look at! :beer How many malaria nets have you bought? Peter Singer has recently convinced me that most of the money I've been sending towards retirement savings s...
by LFKB
Sun Nov 23, 2014 4:25 pm
 
Forum: Personal Consumer Issues
Topic: 23 year old... Can I afford a Rolex?
Replies: 167
Views: 17263

Re: 23 year old... Can I afford a Rolex?

backpacker wrote:For $5,000 you could buy 500 malaria nets and save about two lives. Sounds like a lot more fun to me than having a watch that's nice to look at! :beer


How many malaria nets have you bought?
by LFKB
Sun Nov 23, 2014 10:45 am
 
Forum: Personal Consumer Issues
Topic: 23 year old... Can I afford a Rolex?
Replies: 167
Views: 17263

Re: 23 year old... Can I afford a Rolex?

I think some of the "well if invested it would be $120k in 45 years. Are you willing to pay $120k for a watch?" posts are a bit over the top. It's good to know the lost opportunity cost for perspective but if you multiple everything by a future value of 25x you would never buy anything. Is...
by LFKB
Sun Nov 23, 2014 10:40 am
 
Forum: Personal Consumer Issues
Topic: 23 year old... Can I afford a Rolex?
Replies: 167
Views: 17263

Re: 27 yr old reaches $1m net worth

Good for him. He seems like a very good Investor that timed things well. I (we) actually achieved the same goal at 27 but without any real estate through duel income, saving a majority of our earnings and investing. We also each had the benefit of having the vast majority of our college educations p...
by LFKB
Wed Nov 05, 2014 12:33 am
 
Forum: Investing - Theory, News & General
Topic: 27 yr old reaches $1m net worth [Update: With lies.]
Replies: 56
Views: 13213

Re: Why does the stock market beat inflation?

I still am having trouble getting my brain around why stocks increase on the average a massive 8%/year if inflation only increases 2-3%/year on average. It seems like a fairly simple concept and one that a few posters (myself included) have answered more than adequately in this thread. What is it t...
by LFKB
Tue Oct 14, 2014 6:58 pm
 
Forum: Investing - Theory, News & General
Topic: Why does the stock market beat inflation?
Replies: 62
Views: 3339

Re: Why does the stock market beat inflation?

Assuming a constant P/E or other valuation metric, stocks would theoretically match inflation if companies only increased their earnings due to inflation. Earnings increase due to technological innovation, operational efficiency, population growth, inflation, synergies and so on, all of which allow ...
by LFKB
Tue Oct 14, 2014 2:35 pm
 
Forum: Investing - Theory, News & General
Topic: Why does the stock market beat inflation?
Replies: 62
Views: 3339

Re: Fidelity AMEX: Close Saphire and SPG

If you use sapphire on travel and restaurants you get double points which are worth about 2 cents each for Southwest flights, so equivalent to 4% yield. The SPG card gets you 1 points per dollar but they're valued at about 2.5 to 3 cents for Starwood hotels. Your call if you value the cash back vs t...
by LFKB
Tue Oct 14, 2014 12:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Fidelity AMEX: Close Saphire and SPG
Replies: 14
Views: 2578

What Is the Best Way to Shop Mortgage Rates

I have been working with a lender who has been very helpful and referred by some friends but I want to confirm the rate is the lowest I can possibly get. What is the best way to check? I am looking at a 7/1 interest only jumbo so most of the rate comparison sites are not helpful. Should I just cold ...
by LFKB
Wed Sep 24, 2014 12:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: What Is the Best Way to Shop Mortgage Rates
Replies: 7
Views: 813

Re: Alibaba is NOT coming to an index near you

So it will not be in any Vanguard indexes correct?
by LFKB
Thu Sep 18, 2014 9:43 pm
 
Forum: Investing - Theory, News & General
Topic: Alibaba is NOT coming to an index near you
Replies: 35
Views: 4918

Re: Do I invest or pay higher mortgage downpayment?

Personally I'd do something in the middle but it's really a personal choice. How long do you plan on being in this home? If it's 7 years or less, you probably should consider options other than a 30 year fixed which would reduce your payment and allow you to invest more.
by LFKB
Mon Sep 08, 2014 4:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do I invest or pay higher mortgage downpayment?
Replies: 55
Views: 3531

Re: Sports Motivation Waning

I have used it and found that the representative didn't seem to know anything more than a typical poster would on here. I used them once and then realized I could do it on my own. Might as well try it out though.
by LFKB
Sat Aug 30, 2014 11:07 am
 
Forum: Personal Consumer Issues
Topic: Sports Motivation Waning
Replies: 18
Views: 1699

Re: Do Super wealthy have access to different investing vehi

3) in terms of more return/less cost based on leverage. Yes. e.g, normal people pays 4% for 30-year mortgage, while if you have enough money you can pay less than 0.5%. I'm all ears for a source for this. (That means that I believe it to be false. :) ) While we're talking about the secret advantage...
by LFKB
Sun Aug 17, 2014 3:35 pm
 
Forum: Investing - Theory, News & General
Topic: Do Super wealthy have access to different investing vehicles
Replies: 76
Views: 6751

Re: Do Super wealthy have access to different investing vehi

3) in terms of more return/less cost based on leverage. Yes. e.g, normal people pays 4% for 30-year mortgage, while if you have enough money you can pay less than 0.5%. I'm all ears for a source for this. (That means that I believe it to be false. :) ) While we're talking about the secret advantage...
by LFKB
Sun Aug 17, 2014 3:09 pm
 
Forum: Investing - Theory, News & General
Topic: Do Super wealthy have access to different investing vehicles
Replies: 76
Views: 6751

Re: average American eats out 203 times per year

Way over. I would guess 580 times per year. I eat out ever day at work for lunch plus all the time on weekends. My rough math is lunch and dinner every day minus 3 dinners a week where we cook at home.
by LFKB
Sat Aug 09, 2014 11:01 pm
 
Forum: Personal Consumer Issues
Topic: average American eats out 203 times per year
Replies: 105
Views: 7110

Re: How old are you?

28 here. But just 1.5 in Boglehead years.
by LFKB
Thu Jul 31, 2014 9:44 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: How old are you?
Replies: 82
Views: 8693

Re: How Much Did You Lose Today?

No idea, didn't check. I did buy some TSM, TISM and Small Cap Index today though.
by LFKB
Thu Jul 31, 2014 9:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: How Much Did You Lose Today?
Replies: 166
Views: 16120

Re: Help with a new $5m portfolio for an old lady

If she's really all about living off the dividends then maybe you consider something like 80% bonds and 20% Vanguard High Dividend Yield Index Fund Investor Shares (2.86% SEC yield). It's certainly not what I would do, but may be the best answer for her. The LifeStrategy Income Fund seems like a rea...
by LFKB
Tue Jul 29, 2014 7:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with a new $5m portfolio for an old lady
Replies: 59
Views: 4867

Re: 36 percent decline in net worth

It seems like the reason is simple. The 50th percent has a higher percentage of their wealth in housing which has suffered. The 95th percent has a lower relative percentage in housing and a higher relative percentage in stocks, which are at all time highs. That's my guess at least. It would be inter...
by LFKB
Mon Jul 28, 2014 12:07 am
 
Forum: Investing - Theory, News & General
Topic: 36 percent decline in net worth
Replies: 38
Views: 6308

Re: Have a million to transfer, thinking of doing 100% stock

I'd do it a little differently but 100% stocks sounds okay in your situation. What I would do: 35% TSM 15% Small Cap or Small Cap Value 25% TISM 5% Emerging Markets 10% REITs 10% Total Bond or Intermediate Term Munis Similar mix of US vs International and gives you some exposure to Real estate, smal...
by LFKB
Sat Jul 26, 2014 11:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Have a million to transfer, thinking of doing 100% stocks
Replies: 38
Views: 4272

Re: Best Current Credit Card Bonus for $10k Purchase?

You should definitely do the Chase Sapphire card. You'll get the 45k bonus points then 21,400 for booking the travel (double points on travel plus 7% points dividend). If you are booking a hotel, you can also get 5 extra points per dollar if you book through the hotels.com link on the Sapphire Ultim...
by LFKB
Tue Jul 22, 2014 9:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Best Current Credit Card Bonus for $10k Purchase?
Replies: 14
Views: 2098

Re: Hw many credit cards to own?

I have 3.

Chase Sapphire Preferred: used for the double points on restaurants and travel
Chase Ink: used for the 5x points on TV, internet, phone and double points on gas
Amex Starwood Preferred Card: used on all other categories
by LFKB
Mon Jul 21, 2014 12:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hw many credit cards to own?
Replies: 123
Views: 77074

Re: What Do You Tilt to Outside of the Three Fund (at least

I understand that you can tilt large. I didn't include it because I ran out of choices in the poll and it's the largest component of TSM. I would guess 80-90% of people here hold TSM as their large and not a separate fund for it, although you do. No I hold TSM as one of the three funds. I also hold...
by LFKB
Thu Jul 17, 2014 11:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1473

Re: What Do You Tilt to Outside of the Three Fund (at least

The intention of the question is outside of the core three fund portfolio, which of these asset allocations do you hold at least 4% of your portfolio in? I know that TSM holds small and mid for example, but the intention of the poll is what specific funds or asset classes do you overweight to. What...
by LFKB
Thu Jul 17, 2014 10:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1473

Re: What Do You Tilt to Outside of the Three Fund (at least

Large Cap 27% Stable Value 8% TREA 6% Inflation Protected 12% I have more not-3 fund (53%) than I have 3 fund (36%), and that is just counting the "at least 4%" pieces. I am slightly amused that you think you can tilt small and medium, but you can't tilt large. I never knew that people di...
by LFKB
Thu Jul 17, 2014 10:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1473

Re: What Do You Tilt to Outside of the Three Fund (at least

This is an incoherent poll and does a great job illustrating some of the simplistic misunderstandings people have of factor-based models, portfolio theories and tilting in general. As some simple examples, how much would one need to invest in rental properties for them to be 'tilting' to it? Privat...
by LFKB
Thu Jul 17, 2014 10:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1473

Re: Non-tilters ?

Taylor Larimore wrote:LFKB:

How do "non-tilters" vote?

Best wishes.
Taylor


You can't vote! Sorry Taylor.
by LFKB
Thu Jul 17, 2014 10:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1473

What Do You Tilt to Outside of the Three Fund (at least 4%)?

What Do You Tilt to Outside of the Three Fund (at least 4% of your portfolio)?
by LFKB
Thu Jul 17, 2014 3:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1473

Re: How Much House Should I Buy?

Thanks for all the responses. I have a lot more to learn and think about before making a decision, all of which I'll do. We initially were going in at a price point of $2 million with a max of $2.5 million. We are finding that the "value curve" is leading us to a bit higher of a price poin...
by LFKB
Tue Jul 15, 2014 4:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 5133
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