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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 8:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with a new $5m portfolio for an old lady
Replies: 52
Views: 3014

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 1:07 am
 
Forum: Investing - Theory, News & General
Topic: 36 percent decline in net worth
Replies: 38
Views: 5746

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 12:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Have a million to transfer, thinking of doing 100% stocks
Replies: 38
Views: 3656

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 10:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Best Current Credit Card Bonus for $10k Purchase?
Replies: 14
Views: 1446

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 1:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hw many credit cards to own?
Replies: 69
Views: 4133

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
Fri Jul 18, 2014 12:01 am
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1390

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 11:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1390

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 11:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1390

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 11:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1390

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 11:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1390

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 4:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Do You Tilt to Outside of the Three Fund (at least 4%)?
Replies: 25
Views: 1390

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 5:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 4:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 4:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 3:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 2:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 2:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 2:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 2:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 1:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 12:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 12:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 12:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 12:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 10:50 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 2:19 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 2:01 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

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 1:52 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

Re: How Much House Should I Buy?

I have a lot of thoughts, including some very miscellaneous ones. I'm writing an answer because I have a fairly similar situation and made a similar choice in the range you are considering. I think scenarios like yours are some of the more interesting ones to discuss, if only because they come up o...
by LFKB
Tue Jul 15, 2014 12:29 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

Re: How Much House Should I Buy?

You are fortunate to have options since your salary and bonuses allow you to buy there. Yes you can buy more house somewhere else, but then you would have to live there : ) When I looked for houses 2 years ago I looked in a range of prices. I found that some houses in any price range felt more righ...
by LFKB
Mon Jul 14, 2014 11:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

Re: How Much House Should I Buy?

OP, you are severely underestimating your marginal tax rate. It is 39.6% federal plus (assuming you are paid as an employee) 2.35% Medicare plus about 1% for phaseouts of deductions (your exemptions are long gone) plus California which I expect would be greater than 10$ and maybe higher. You are we...
by LFKB
Mon Jul 14, 2014 10:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

Re: How Much House Should I Buy?

Have you been prequalified/preapproved to see what a bank is willing to give you? That may put an upper limit on your search right there. In general, banks will approve an amount above most people's comfortable ability to pay. So just because a bank says ok to a higher amount does not mean you shou...
by LFKB
Mon Jul 14, 2014 10:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

How Much House Should I Buy?

We are 28 with no children and live in west LA (Brentwood/Santa Monica area). We love the area and ideally want to be in a certain area of Santa Monica where a 1,700 square foot house on a 6,000 foot lot is about $2.3 million. Ideally, we'd like about 2,400 to 3,000 square feet, 3-4 bedrooms and a 7...
by LFKB
Mon Jul 14, 2014 8:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4428

Re: Any Bogelheads get involved in private equity?

I work for a private equity fund so some of my compensation comes through carried interest in that fun. I also had the opportunity to invest via friends and family in another fund, we put about 4% of our net worth in that fund. From the performance thus far it appears that investment will yield a mu...
by LFKB
Sun Jul 06, 2014 10:39 pm
 
Forum: Investing - Theory, News & General
Topic: Any Bogleheads get involved in private equity?
Replies: 31
Views: 3378

Re: Stick with Vanguard or take Fidelity "special deal"?

I've looked into this before and decided against it. $2,500 is 0.25% of $1 million so not very significant. I didn't do the math but I believe over time Vanguard wins out based on lower expense ratios. Another option is they offer $100k Fidelity transfer for 50k miles on United, Delta or American, s...
by LFKB
Thu Jul 03, 2014 11:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Stick with Vanguard or take Fidelity "special deal"?
Replies: 50
Views: 3069

Re: Who do you talk with about your financial goals?

sscritic wrote:
Net worth: $1.2M to $1.8M; income: $300k to $500k.

P.S. If you only qualify one way, are you a half of a bottom half of the 1%er?


I would say so. We'll see if leesbro comes back and if his numbers are in line with ours.
by LFKB
Sun Jun 29, 2014 4:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Who do you talk with about your financial goals?
Replies: 158
Views: 9082

Re: Who do you talk with about your financial goals?

It was a mistake. Calm down. The attitude isn't necessary. I read what you wrote. I saw three separate questions or statements. I answered two of them. Who else has given you any answers? I can't give you the answer to your third question, because I don't know the measurements the poster was using ...
by LFKB
Sun Jun 29, 2014 4:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Who do you talk with about your financial goals?
Replies: 158
Views: 9082

Re: Who do you talk with about your financial goals?

I understand that he is referring to the 99th to 99.5th percentile. I was asking what income or net worth range he is referring to and where the info came from. I've never heard anyone say that and have no idea what it means or if it relates to income or net worth or something else. You said you ha...
by LFKB
Sun Jun 29, 2014 3:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Who do you talk with about your financial goals?
Replies: 158
Views: 9082

Re: Who do you talk with about your financial goals?

“The bottom half of the top 1% got a 24% tax cut, making system more regressive and taking $2 billion in needed funds out of the budget.” Most of those in the bottom half of the top 1% lack power and global flexibility and are essentially well-compensated workhorses for the top 0.5%, just like the ...
by LFKB
Sun Jun 29, 2014 3:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Who do you talk with about your financial goals?
Replies: 158
Views: 9082

Re: Who do you talk with about your financial goals?

This is a good thread. I have a very good friend, also a Boglehead, (we kinda found this forum together long ago when it was part of Morningstar). We are similarly situated...in the top 1% but not in the top half of the 1%. I generally don't discuss much with anyone but him and my brother, (also do...
by LFKB
Sun Jun 29, 2014 3:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Who do you talk with about your financial goals?
Replies: 158
Views: 9082

Re: Portfolio Question: Feel we're at a crossroad in life

You have enough in cash and income to do everything. If you want a house, go buy one. It's an investment that should appreciate so not sure it will certainly delay retirement as others have said. You'll still have a sizable chunk leftover after a 20% downpayment to make a lump sum investment now and...
by LFKB
Sun Jun 22, 2014 11:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Question: Feel we're at a crossroad in life
Replies: 29
Views: 1935

Re: Engagement Ring - Diamond Help

Go with an I SI1 and then maximize size. I wouldn't go lower than that though. Cut is important so I would go with ideal or signature ideal. I bought a diamond within the last month and got it from a guy out of state so I avoided paying California state income tax on it, which would have been about ...
by LFKB
Fri Jun 13, 2014 6:05 pm
 
Forum: Personal Consumer Issues
Topic: Engagement Ring - Diamond Help
Replies: 57
Views: 3109

Re: Is the first million really the hardest?

First million took 5.5 years I'd guess the second will take 3 but way too many unknowns. By definition the first million should be the toughest, it's an accumulation from 0 to 1 million, or infinity percent. From one million to two million is a 100% increase. From 2 to 3 is a 50% increase and from 3...
by LFKB
Thu Jun 12, 2014 1:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Is the first million really the hardest?
Replies: 64
Views: 7770

Re: How much house should I buy? (young person with many ass

Jeez, what a bunch of grinches :annoyed Pat, if you want a modest house, go ahead and buy it. And if you take the down payment from the IRA (take enough to pay the taxes too) that is just fine. Someone probably left the money to you because they thought you would get more joy from it than they woul...
by LFKB
Fri May 23, 2014 11:44 am
 
Forum: Investing - Help with Personal Investments
Topic: How much house should I buy? (young person with many assets)
Replies: 71
Views: 5501

Re: UCLA vs USC Decision [Which college to attend]

For those saying UCLA is a significantly better school, USC is more selective (19.9% admission rate at USC vs 22% at UCLA), has a higher average SAT score (2065 at USC vs 1950 at UCLA), a lower faculty ratio (9 to 1 at USC vs 16 to 1 at UCLA), a higher four year graduation rate (74% at USC vs 71% at...
by LFKB
Mon May 19, 2014 11:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: UCLA vs USC Decision [Which college to attend]
Replies: 62
Views: 3615

Re: UCLA vs USC Decision [Which college to attend]

I went to USC. You'll have better opportunities for accounting and finance jobs coming out of USC because of the opportunity to major in business and/or accounting as well as some of the specific senior concentrations within the business major (corporate finance, real estate finance, entrepreneurshi...
by LFKB
Mon May 19, 2014 11:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: UCLA vs USC Decision [Which college to attend]
Replies: 62
Views: 3615

Re: Share your networth progression

Our net worth progressed something like this. Primarily through saving and some modest investment gains. We really only invested a large percentage of my net worth slowly over the last 15 months.

22: $100k
23: $200k
24: $400k
25: $620k
26: $850k
27 (current): $1.15M
by LFKB
Tue May 13, 2014 10:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Share your networth progression
Replies: 97
Views: 13523

Re: 2.5 mil to 10 mil - are we on track

Math is not hard: 15 * 0.125 mill ~= 1.9 million. Add that to your 2.5 mill and will have less than $5 million if your return is 0%. The "rule of 72" says that 72 divided by expected return is the number of years to double your money. So let's say you need to double your expected $5 milli...
by LFKB
Tue May 13, 2014 6:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2.5 mil to 10 mil - are we on track
Replies: 91
Views: 9420

Re: What age did you reach 100K networth?

24...
by LFKB
Fri Mar 28, 2014 12:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: What age did you reach 100K networth?
Replies: 264
Views: 33779

Re: Can I retire yet?

Welcome to the forum. Let's see if I got your expenses correct: house: $54k/yr general expenses: $120k/yr leisure: $60k/yr TOTAL: $234k/yr Income: His SS: $30k/yr Her SS: $26k/yr Pension: $55k/yr 4% from portfolio: $100k/yr TOTAL: $211k/yr Does not look like you can retire yet unless you cut your e...
by LFKB
Sun Mar 09, 2014 1:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can I retire yet?
Replies: 85
Views: 6583
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