Search found 321 matches

Return to advanced search

Re: The lowest stock allocation you plan to stay with

I'm a long way away but I plan to never drop below 60/40 with my AA.

I also plan to utilize SPIA in retirement (starting with 10%-20% of my nest egg at the start of retirement and buying more every 5 years or so) that I will not consider part of that 60/40 AA.
by bigred77
Fri Jan 30, 2015 10:12 am
 
Forum: Investing - Theory, News & General
Topic: The lowest stock allocation you plan to stay with
Replies: 74
Views: 3112

Re: "Retiring in a Low-Return Environment"

I've seen alot of talk about PE10 being our relative best tool to predict stock returns over the next 10 years but I don't think you can just extrapolate that into predicting equity returns 30 years into the future. I've also seen studies point to PE10 having an R squared value of something around ....
by bigred77
Thu Jan 29, 2015 2:50 pm
 
Forum: Investing - Theory, News & General
Topic: "Retiring in a Low-Return Environment"
Replies: 54
Views: 5172

Re: What age did you move out?

Moved out at 18 to attend Undergrad. Finished Undergrad at 23 and moved back home to my Moms house while I did an internship that became a full time gig after 3 months. Took another year until I was 24 to pay off my student loans and buy a condo right next to where I work. 5 years later and my Mom h...
by bigred77
Wed Jan 28, 2015 9:43 am
 
Forum: Personal Consumer Issues
Topic: What age did you move out?
Replies: 117
Views: 4850

Re: Get 17% in russian savings account?

Look for arbitrage opportunities by buying Russian fixed income and USD/Ruble futures contracts. You can lock in your rate of return (in USD) as long as no default occurs.
by bigred77
Mon Jan 26, 2015 3:52 pm
 
Forum: Investing - Theory, News & General
Topic: Get 17% in russian savings account?
Replies: 49
Views: 4447

Re: Salary to Home Value/Mortgage Ratio?

We are a 2 income household and expect to remain so for about 3 more years before dropping down to 1 income. We bought our home in summer 2013. We actually live in a moderately low COL area but we bought in our dream location and paid what costs to live there. Even though we have over 3000 sq ft we'...
by bigred77
Mon Jan 26, 2015 2:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Salary to Home Value/Mortgage Ratio?
Replies: 50
Views: 5394

Re: Small and value: are they diversifiers?

This is just me thinking out loud here but I've always believed in the notion that small and value stocks having higher returns is a "risk story". Being that, I invest in these asset classes because over time they seem to have both a higher standard deviation (in isolation) but also a high...
by bigred77
Mon Jan 26, 2015 1:34 pm
 
Forum: Investing - Theory, News & General
Topic: Small and value: are they diversifiers?
Replies: 6
Views: 895

Re: Hedging home value risk

Basically my advice would be to get a fixed rate mortgage, make sure you have sufficient disablity/life insurance, and to keep a large amount of cash on hand (lets say a 12 month emergency fund). That is your insurance against job loss, disability, or the mortgage payment becoming unaffordable. If s...
by bigred77
Fri Jan 23, 2015 2:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hedging home value risk
Replies: 23
Views: 1099

Re: Anyone else love reading textbooks?

Reading from a textbook is the worst thing in the world to me, even if i'm naturally interested in the material.

Maybe its a millenial thing but I just don't have the attention span.
by bigred77
Fri Jan 23, 2015 1:54 pm
 
Forum: Personal Consumer Issues
Topic: Anyone else love reading textbooks?
Replies: 82
Views: 2796

Re: Downsize, Reduce, Simplify.

My mother was recently forced to downsize after she became disabled at 59. She went from an empty nest 2400 sqft house with a mortgage to an 850 sqft 1 bedroom condo paid in cash. Her sub-$400 monthly HOA fee includes electrcity and cable as well. She went literally kicking and screaming out of the ...
by bigred77
Fri Jan 23, 2015 11:35 am
 
Forum: Personal Consumer Issues
Topic: Downsize, Reduce, Simplify.
Replies: 65
Views: 7194

Re: What age did you hit $100,000?

I think this will be very variable and may not mean much. It would be very odd if a double-income family with no kids and middle-class jobs did not hit $100,000 in networth by the mid 20s. A single person with an average job who works right out of school with no extended unemployment should hit it ...
by bigred77
Thu Jan 22, 2015 2:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: What age did you hit $100,000?
Replies: 68
Views: 5831

Re: [Poll] Do u believe in weak/semi/strong EMH? (multi opti

I'm a fairly strong believer in the semi-strong form of EMH although I do believe the markets are not "perfectly efficient". You will see some drift and lagging to market events, information, etc. Basically all past information and currently available public information is accounted for in...
by bigred77
Thu Jan 22, 2015 11:11 am
 
Forum: Investing - Theory, News & General
Topic: [Poll] Do u believe in weak/semi/strong EMH? (multi options)
Replies: 11
Views: 699

Re: Transition to a single income household

We didn't plan to be single income this long either. The major change is missing the routine of going to work. Being a SAH spouse is almost like ADD is being forced upon you. There is a huge variety of tasks that are required and while some things have schedule flexibility, others have barely any. ...
by bigred77
Wed Jan 21, 2015 1:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Transition to a single income household
Replies: 16
Views: 1262

Re: I'm thinking about making very large 529 contributions A

I think I know what your hinting at.

I would 100% superfund a 529 for my kids if I had the financial means to do so at this time.

I would still fear how retroactive future rule changes may be.
by bigred77
Wed Jan 21, 2015 1:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: I'm thinking about making very large 529 contributions ASAP
Replies: 71
Views: 5294

Re: Help with Roth Conversion

Thanks to everyone for the suggestions and letting me think out loud a bit. I will err on the conservative side and convert only what I can do tax free and still file as single with no dependents for this current tax year. Should be able to convert all tax free over the next 5-6 years. I appreciate ...
by bigred77
Mon Dec 22, 2014 7:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with Roth Conversion
Replies: 12
Views: 866

Re: What % of net worth is your home?

Home equity % of networth is about 40%

Home value as a percentage of networth is about 180%

Still a few more months left of being a 20 something...
by bigred77
Mon Dec 22, 2014 7:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: What % of net worth is your home?
Replies: 127
Views: 10990

Re: Help with Roth Conversion

As I read the 2013 1040 instructions, a student must be under age 24 at the end of the year to be a qualifying child. Qualifying relative is a possibility if your mother provided over half of your brother's support. Knowing how your brother managed to support himself without earning any money is in...
by bigred77
Mon Dec 22, 2014 4:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with Roth Conversion
Replies: 12
Views: 866

Re: Help with Roth Conversion

With $44k in a IRA, would not the RMD be 0% in taxes anyway given her other income? What would be the reason to convert, thinking just in case she needs it all at one time maybe? What I could see, if you can get all moved to a Roth and it does not cost you anything in taxes it would be nice to get ...
by bigred77
Mon Dec 22, 2014 3:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with Roth Conversion
Replies: 12
Views: 866

Re: Help with Roth Conversion

My brother had 0 income in 2014. He lives away "on campus" which my understanding is that he would qualify as living "with her". I also believe he would qualify as receiving >50% of his living expenses from her. His age is what makes me thing he might not qualify for her to file ...
by bigred77
Mon Dec 22, 2014 2:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with Roth Conversion
Replies: 12
Views: 866

Help with Roth Conversion

I need help with a Roth Conversion. This for my mother. I pretty much handle all of her financial matters. My main question is I know this will be a year in which she would benefit from converting SOME amount of money from her traditional IRAs to Roth IRAs but I don't know how much is the ideal choi...
by bigred77
Mon Dec 22, 2014 1:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with Roth Conversion
Replies: 12
Views: 866

Re: AA for Early Retirement

I am not yet retired but if at any point in time my spending (including taxes) could be met by a 3% withdrawl rate I would immediately retire and go with a 60/40 AA. If I was over the age of 50 I would probably settle for a 3.5% withdrawl rate. I plan to hold a 60/40 AA in perpetuity once I hit my &...
by bigred77
Wed Dec 17, 2014 5:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: AA for Early Retirement
Replies: 21
Views: 2358

Re: Most/Least Boglehead 2014 Activity?

Least Boglehead Activity - I bought a bunch of furniture (that we needed) on a store credit card. I didn't have the money to do it but I got 0% for 12 months so we pulled the trigger. We definately overspent here but live and learn i guess. Most Boglehead activity - My company stock dropped dramatic...
by bigred77
Sat Dec 13, 2014 6:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Most/Least Boglehead 2014 Activity?
Replies: 93
Views: 9459

Re: 6 years into career, finally time to address the unavoid

I think your doing a pretty solid job and its great you took the initiative to take a close look at your financial life. I will echo sentiments that you do not put any money into a 529 until you a first maxing out 401ks and Roth IRAs first. You sound like a pretty good candidate for a target date fu...
by bigred77
Thu Dec 11, 2014 3:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: 6 years into career, finally time to address the unavoidable
Replies: 28
Views: 4653

Re: Leverage and P/e10

If your stating that you intend to leverage your portfolio regardless and nothing would change your mind then to answer your original post yes I think adjusting leverage ratios based on P/E ratios would be the thing to do. I might take it a step further and go 3X leverage at under P/E <15, 2X when P...
by bigred77
Tue Dec 09, 2014 6:46 pm
 
Forum: Investing - Theory, News & General
Topic: Leverage and P/e10
Replies: 41
Views: 3453

Re: Leverage and P/e10

Sounds reasonable in theory. You won't receive alot of support on this board for that plan. I will be the first of many to suggest you read the thread started by the poster "market timer" here who proposed a similar strategy. You can find the thread here: http://www.bogleheads.org/forum/vi...
by bigred77
Tue Dec 09, 2014 6:12 pm
 
Forum: Investing - Theory, News & General
Topic: Leverage and P/e10
Replies: 41
Views: 3453

Re: Index Funds, REIT's, Real Estate, Swing Trading, Forex

I have spent 8+ years formally studying economics and finance with multiple (well, soon to be multiple) graduate degrees to prove it. I have just gotten to the point where I can KIND OF understand the nuances of the most technical discussions that get started on here about CAPM, multi-factor models,...
by bigred77
Wed Nov 26, 2014 11:26 am
 
Forum: Investing - Help with Personal Investments
Topic: Index Funds, REIT's, Real Estate, Swing Trading, Forex
Replies: 28
Views: 2675

Re: What doyou splurge on?

Splurges: Travel Cars Cleaning Service every 2 weeks Lawn Guy Cable Package (Theres probably no channel I don't get) Cigars Scotch Where I cut back: Clothes (quality, inexpensive, bought VERY infrequently) Eating Out (relatively infrequently) Bars (I somehow lost the desire to ever go to a bar again...
by bigred77
Fri Nov 21, 2014 9:57 am
 
Forum: Personal Consumer Issues
Topic: What do you splurge on?
Replies: 237
Views: 24408

Re: Start a business

Some would say #2 and #4 are the same thing (Investing in Real Estate is starting your own business, assuming this is rental real estate). If your reasonably successful at it, I would just slowly add more properties over time (if your into this sort of thing). I personally would focus on high, consi...
by bigred77
Fri Nov 21, 2014 9:48 am
 
Forum: Investing - Theory, News & General
Topic: Start a business
Replies: 14
Views: 1707

Re: Extreme Generosity / Limiting Net Worth

I am considering doing this – limiting annual cash spending to double the Median Family Income ($106k in today’s dollars), and limiting net worth to a number in the low single-digit millions. Wife is on board, and we plan on 3-4 kids. The impetus for the decision is a careful consideration of how o...
by bigred77
Tue Nov 18, 2014 12:02 pm
 
Forum: Personal Consumer Issues
Topic: Extreme Generosity / Limiting Net Worth
Replies: 113
Views: 22613

Re: Parents can be forced to pay college tuition in NJ?

She's 21. There is nothing "ethical" at all about this court ruling. They have no "requirement" to give here this money. This is a ridiculous, frivolous case. As a parent, you have a responsibility to do everything in your ability to make your child a productive member of societ...
by bigred77
Fri Nov 14, 2014 1:23 pm
 
Forum: Personal Consumer Issues
Topic: Parents can be forced to pay college tuition in NJ?
Replies: 31
Views: 1994

Re: 10y - Plan Review

I know some people may find this unpallatable (and you might even be one of them) but I would consider taking a 15 yr mortgage on the house for maybe 50% of the value. You have over half of your net worth sitting in your house. If i was in your shoes I would take a 200k mortgage, plop 50k in a 529 f...
by bigred77
Fri Nov 14, 2014 1:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: 10y - Plan Review
Replies: 17
Views: 1364

Re: Obligation to Parents?

There are no "obligations".

Life isn't fair. You can pre-plan this all you want but when the time comes that will probably go out the window. Will your wife be able to sleep at night if she knows her parents are going to bed hungry or living in squalor? Thats the better question.
by bigred77
Thu Nov 13, 2014 8:57 am
 
Forum: Personal Finance (Not Investing)
Topic: Obligation to Parents?
Replies: 77
Views: 4340

Re: Savings rate of -2% for those under 35 - WSJ

Again, the boglehead population is not the norm. Many millenials on this site own homes, have six figure retirement accounts, six figure incomes, and no debt outside a mortgage. THIS IS NOT THE NORM! I don't know how they calculated the saving rate thats stated but it seems in line with I'd expect. ...
by bigred77
Tue Nov 11, 2014 12:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Savings rate of -2% for those under 35 - WSJ
Replies: 69
Views: 4965

Re: Investing when one spouse is older

I tried searching to see if this was explicitly addressed before, but wasn't able to find anything specific. What are some factors to consider when it comes investment/retirement planning strategy, if one spouse is older than the other? My wife and I have a 12-year gap between the two of us. Given ...
by bigred77
Thu Nov 06, 2014 5:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Investing when one spouse is older
Replies: 10
Views: 1043

Re: Keep it or trade it in.

I have a 2008 328i with about 78k miles on it. My wife drives a BMW as well. These issues are to be expected. You need to find a good independent shop who will charge you fair prices (I know this can be easier said than done sometimes). I spend about 1500 a year on maitenece for both cars. It comes ...
by bigred77
Thu Nov 06, 2014 5:02 pm
 
Forum: Personal Consumer Issues
Topic: Keep it or trade it in.
Replies: 5
Views: 584

Re: How do you automatically rebalance?

I add up my accounts and look at percentages once a year on my birthday and manually rebalance the next trading day.
by bigred77
Thu Nov 06, 2014 11:55 am
 
Forum: Investing - Help with Personal Investments
Topic: How do you automatically rebalance?
Replies: 34
Views: 2480

Re: Cash - Throw it on the table!

We keep only 1000 in cash right now and invest/pay down debt with everything else.

I hope to have 6-8 months in cash built before we have kids though, especially if we're able to go to being a single income family.
by bigred77
Wed Nov 05, 2014 11:19 am
 
Forum: Personal Finance (Not Investing)
Topic: Cash - Throw it all on the table!!!
Replies: 51
Views: 3922

Re: Is $700,000 enough to retire? Opinions please .

For this to work at your level of spending I would suggest first thinking about delaying retirement (even by 1 additional year makes a difference). Second, I think you are a prime candidate to annuitize a large portion of your retirement money. If you annuitize (and assuming you don't opt for an inf...
by bigred77
Fri Oct 31, 2014 9:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Is $700,000 enough to retire? Opinions please .
Replies: 86
Views: 12884

Re: Brother-in-law w/ CC Debt

This wasn't a bundled loan it was a credit card default. The reason credit cards charge up to 21% interest is because they expect default. Who do you think the credit card people would rather deal with, someone who never carries a balance or those who do with the occasional default. The OP's brothe...
by bigred77
Thu Oct 30, 2014 6:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Brother-in-law w/ CC Debt
Replies: 40
Views: 4648

Re: A Little Common Core Math problem

lol If you quized random people on the street i guarentee you far less than 50% of the people would give you the correct answer in under 2-3 min. I wouldn't be too hard on the YMCA teachers. I think you may be overestimating the math skills of the general population. Solving 2x2 linear equations is ...
by bigred77
Thu Oct 30, 2014 1:52 pm
 
Forum: Personal Consumer Issues
Topic: A Little Common Core Math problem
Replies: 97
Views: 3245

Re: Prudent Investment Portfolio for 58-year Old w/20M Net W

The same portfolio that would be appropriate for a 58 yr old investor with 2 million dollars and income needs of 37.5k per year. Its just an extra 0 in my opinion. 30% Total US Stock market 20% Total International 40% Muni Bond Index 10% Cash That would be a reasonable starting point IMHO. No need t...
by bigred77
Tue Oct 28, 2014 12:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Prudent Investment Portfolio for 58-year Old w/20M Net Worth
Replies: 39
Views: 4936

Re: Feeling rich to feeling poor overnight

How about a camper van or a boat? Explore more of the area while your GF is here and either keep your below-market rental deal or not and become a super-super-saver or splash out on the occasional fancy hotel/AirBnB weekend. A craigslist RV/sailboat could be a net neutral deal if you sell in 6 mont...
by bigred77
Fri Oct 24, 2014 8:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Feeling rich to feeling poor overnight
Replies: 85
Views: 11345

Re: Strategies of Cash offer on house

I think your worries are unfounded. When I've sold properties i was always hoping for cash buyers. In fact I had an offer for X on a house i was selling (with conventional financing) and a cash offer at about 97%*X. I took the cash offer immediately. You can write an offer to split closing costs how...
by bigred77
Fri Oct 24, 2014 3:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Strategies of Cash offer on house
Replies: 5
Views: 804

Re: Dubai trip

I had a great trip there a few years ago. I would not rent a car. Taxi's are dirt cheap and the roads there are pretty agressive. You can go ANYWHERE is Dubai for less than 20 -25 dollars US in a taxi. I reccomend: The "Old City" Souks. I bought quite a bit of gold jewlery for family. Much...
by bigred77
Fri Oct 24, 2014 3:39 pm
 
Forum: Personal Consumer Issues
Topic: Dubai trip
Replies: 11
Views: 1466

Re: Investment Vehicle for MBA Savings?

If you get a state tax deduction for using a Minnesota 529 then use that.

Probably should simply save as much as you can. Investment returns will have an almost negligable impact on your outcome. I would suggest the LifeStrategy Income Fund.
by bigred77
Thu Oct 23, 2014 11:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Investment Vehicle for MBA Savings?
Replies: 4
Views: 300

Re: Making an offer today

You hit the nail on the head with #4. My offer was rejected. Quick update (with numbers) for those interested. The condo I made an offer on is listed right around $300K. I offered $255K, which I believe is on the low end of the ballpark (but still in the ballpark) based on what comparable propertie...
by bigred77
Wed Oct 22, 2014 1:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Making an offer today
Replies: 44
Views: 4953

Re: Why I won't have bond funds

If we get anything close to the 70s again I will start loading up on individual 30 yr STRIPS in tax advantaged accounts.
by bigred77
Tue Oct 21, 2014 8:01 am
 
Forum: Investing - Theory, News & General
Topic: Why I won't have bond funds
Replies: 54
Views: 8325

Re: Why do people use age instead of life expectancy?

Age in Bonds is a heuristic. It is also a known, precise number. It tells us the basic trend of the idea that risk should go down as our investing time frame goes down. It should get the job done for the masses. Life expectency seems like it may be an attempt at a more precise answer. It is also usi...
by bigred77
Mon Oct 20, 2014 9:15 am
 
Forum: Investing - Theory, News & General
Topic: Why do people use age instead of life expectancy?
Replies: 43
Views: 3036

Re: How did you get from $1M to $10M

OP, My goal is also $10M (nominal) but it will probably take me another 30+ yrs. I can tell you a simple way :mrgreen: :mrgreen: :mrgreen: : Get to 250k - 300k of investable assets by age 30. Save at least 50k/year each and every year until you retire. Throw any lump sum "found money" in t...
by bigred77
Thu Oct 16, 2014 2:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: How did you get from $1M to $10M
Replies: 46
Views: 4202

Re: need moral support (kinda)

OP I think people are missing your point. You decided 200k of your portfolio is NEEDED in about 1 years time and you no longer wish to risk anymore of that 200k to loss of principal. You started liquidating the position to move it to cash. You now feel nervous about your plan because of recent marke...
by bigred77
Wed Oct 15, 2014 2:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: need moral support (kinda)
Replies: 33
Views: 2967

Re: Recent statistics of college majors

Petroleum Engineers might move around and spend some time "in the field" early in their career but they can pretty much set up shop in Houston for the rest of their career if thats what they really wanted to do.
by bigred77
Wed Oct 15, 2014 1:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Recent statistics of college majors
Replies: 35
Views: 2763
Next

Return to advanced search