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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: 2725

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: 70
Views: 8059

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: 3088

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: 4448

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: 24134

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: 24134

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: 13931

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: 13931

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: 13931

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: 11728

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: 3192

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: 3192

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: 2497

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: 757

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: 34
Views: 4481

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: 3406

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: 1691

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: 6652

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: 6652

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: 6960

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: 8537

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: 15803

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: 4816

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: 6277

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: 4194

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: 2030

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: 76495

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: 1449

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: 1449

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: 1449

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: 1449

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: 1449

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: 1449

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: 4977

Re: How Much House Should I Buy?

A couple more comments after thinking about this more: 1.) Mortgage underwriters may not consider your bonus when calculating income (regardless of what the brokers tell you). When my wife and I got a mortgage last year they would only consider our base salaries when determining Debt Service to inc...
by LFKB
Tue Jul 15, 2014 3:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

Your car analogy is ridiculous. It's a depreciating asset vs. a home which can be lived in forever and which should appreciate. The house is definitely a depreciating asset. You may think it should appreciate, but history disagrees, in spite of recent run-ups... Google inflation-adjusted housing pr...
by LFKB
Tue Jul 15, 2014 3:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

If you will be aggressively paying down the principal, why discuss 30 year payback dollars? Postponing the purchase has real savings, I would say at least $50k/year. All of this other stuff of interest rates might go up to this and housing prices might do that is pie in the sky stuff. Your rent tod...
by LFKB
Tue Jul 15, 2014 2:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

I certainly understand the correlation but it doesn't always play out that way. Interest rate can rise with housing prices, especially in niche, highly desirable markets like the ones we are looking at. There will always be millionaires who want to live on the westside of LA. It's probably not sust...
by LFKB
Tue Jul 15, 2014 1:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

No - you are banking on the bonus to leverage up and purchase the place you will be living in. If you can't repay, the bank will seize the property and you could lose all of your down payment. A million is serious money to have at risk. Remember, it took you 3+ years to accumulate it. In any ration...
by LFKB
Tue Jul 15, 2014 1:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

Thanks for the advice. Waiting if certainly an option we are considering. We are happy with our rental situation, and below market rent due to rents increasing since we leased two years ago about 20-30% but our landlord not implementing a rent increase (which has surprised us). The things that woul...
by LFKB
Tue Jul 15, 2014 1:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

No - you are banking on the bonus to leverage up and purchase the place you will be living in. If you can't repay, the bank will seize the property and you could lose all of your down payment. A million is serious money to have at risk. Remember, it took you 3+ years to accumulate it. In any ration...
by LFKB
Tue Jul 15, 2014 1:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

I think a big mortgage makes more sense for lower earners with steady income. If I were in your shoes, I would rent until I could buy most of my dream house in cash. I would only finance an amount that could be serviced with my most stable compensation. Why lever up when your income is so high and ...
by LFKB
Tue Jul 15, 2014 12:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

I would rent. These are not LBYM options. You only make $280k guaranteed. The rest is bonus. I wouldn't take a mortgage for more than $800k with your income. Please see my last post. At $2.5M on a 30 year fixed, we save nearly 50% of our after tax income. How is that not LBYM? I guess it's less tha...
by LFKB
Tue Jul 15, 2014 11:34 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

LFKB: My thoughts for you: 1.) It sounds like at least you work in Private Equity . Only you know how stable that situation really is but please try to be brutally honest with yourself about it. Think about how long you can hold everything together if your income is lost at the worst possible time....
by LFKB
Tue Jul 15, 2014 11:23 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

I would rent. These are not LBYM options. You only make $280k guaranteed. The rest is bonus. I wouldn't take a mortgage for more than $800k with your income. Please see my last post. At $2.5M on a 30 year fixed, we save nearly 50% of our after tax income. How is that not LBYM? I guess it's less tha...
by LFKB
Tue Jul 15, 2014 11:07 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

FWIW most of my friends who were in that situation, after a sharp intake of breath, turned into doting and devoted fathers :happy Most people who have children seem to say 'it was far more work and responsibility than I ever imagined-- we were totally exhausted for years'. Most also say 'it was/ is...
by LFKB
Tue Jul 15, 2014 11:00 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

A few clarifications and responses to various posters: This is the best neighborhood with great school districts. It's the most expensive and has been the most resilient historically, hence the extremely high prices. If I lost my job, which is certainly a possibility but likely not for a few years m...
by LFKB
Tue Jul 15, 2014 9:50 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

What area do you live in and what does $2.5M buy in it if you don't mind me asking? I live south of SF in a smaller town with excellent schools. There is a walkable downtown and good commute distance to all the major job centers. Prices vary enormously by street and even by view, but we just cracke...
by LFKB
Tue Jul 15, 2014 1:19 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

By building equity, all I meant is making payments that build equity as opposed to paying rent. I'd like to find a house that I can be in for a long time, but understand that things change and I could be looking to move sooner than I anticipate. I'd also like to be in the market so that whether it ...
by LFKB
Tue Jul 15, 2014 1:01 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977

Re: How Much House Should I Buy?

I really enjoyed reading your post and wanted to offer a response. Remember that free advice is worth what you pay for it! You and your partner are currently living in your ideal location renting an adequate 2-bdrm apartment for 2 people paying market rate. You are 28-years old with hot careers enj...
by LFKB
Tue Jul 15, 2014 12:52 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4977
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