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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: 2124

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: 67
Views: 5458

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: 4558

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: 35
Views: 2364

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: 35
Views: 2364

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: 2526

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: 215
Views: 18365

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: 1674

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: 14910

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: 1956

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: 1332

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: 4229

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: 4809

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: 984

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: 572

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: 2371

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: 3812

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: 12613

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: 4602

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: 2892

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: 4835

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: 11061

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: 784

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: 1432

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: 282

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: 4869

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: 8218

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: 2974

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: 4146

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: 2931

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: 2741

Re: is anything 'cheap' out there?

1.) Leverage is pretty cheap right now if your so inclined.
2.) The Euro seems cheap(er) from a US investors POV.

Maybe some levered forex trading?
by bigred77
Fri Oct 10, 2014 11:57 am
 
Forum: Investing - Theory, News & General
Topic: is anything 'cheap' out there?
Replies: 54
Views: 5743

Re: New tires, where to buy

I've had very good luck with Costco
by bigred77
Fri Oct 10, 2014 8:30 am
 
Forum: Personal Consumer Issues
Topic: New tires, where to buy
Replies: 36
Views: 2936

Re: Jack Bogle answers your question.

"Why wouldn't you tilt to small Value?" Mr. Bogle answers: The Telltale Chart Best wishes. Taylor Thanks Taylor. I had never seen that before. I thought it was excellent. I think the best take away from that was Bogle suggesting that for people who believe in and want to tilt, do it more ...
by bigred77
Thu Oct 09, 2014 11:32 am
 
Forum: Investing - Theory, News & General
Topic: Why Wouldn't You Tilt To Small Value?
Replies: 52
Views: 3178

Re: What was your initial AA and how has that worked out?

1. When you started. E.g. How many years ago? 6 years 2. How old you were? 23 3. Stock/bond ratio Started with random selection of active mutual funds in my 401k and random individual stocks. Now 75/25 AA. All index funds, although I'm a slice and dice guy who overweights Small, Value, and EM 4. An...
by bigred77
Tue Oct 07, 2014 9:02 am
 
Forum: Investing - Theory, News & General
Topic: What was your initial AA and how has that worked out?
Replies: 32
Views: 2595

Re: Should I buy a condo on the GROUND FLOOR?

We recently bought my mother a condo (she's almost 60, she had to downsize for financial and health reasons, she just couldn't keep up with a house anymore) and the number 1 priority was ground floor and no stairs. Where I live there are numerous condo/townhome developements. Its common for them to ...
by bigred77
Mon Oct 06, 2014 10:13 am
 
Forum: Personal Consumer Issues
Topic: Should I buy a condo on the GROUND FLOOR?
Replies: 50
Views: 5595

Re: Future equities 2% real rhetoric is hogwash

The fact is that from 1975 to 1982 the U.S. stock market had a real return of just under 0%. I don't know why entrepreneurs couldn't find "new and unique opportunities to make money" for 17 years--or, if they could, why that wasn't reflected in the stock market. But it wasn't. Plain histo...
by bigred77
Mon Sep 29, 2014 10:44 am
 
Forum: Investing - Theory, News & General
Topic: Future equities 2% real rhetoric is hogwash
Replies: 45
Views: 3965

Re: What is the best balance transfer card?

Citi has 15 months of 0% on balance transfers like the Slate card has but you will need to pay an initial 3% balance transfer fee... still probably worth it.
by bigred77
Thu Sep 18, 2014 1:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: What is the best balance transfer card?
Replies: 12
Views: 488

Re: The boglehead way to buy furniture

I spent ungodly amounts of money on furniture at Restoration Hardware. My wife and I both LOVE their stuff and reviews online seem pretty positive on the quality of most items. Their customer service is not great over the phone but in the stores its pretty good. If the stuff really lasts 10-15 years...
by bigred77
Wed Sep 17, 2014 10:42 am
 
Forum: Personal Consumer Issues
Topic: The boglehead way to buy furniture
Replies: 56
Views: 5413

Re: Safe Withdrawl Rate

You did not ask this but I personally would withdraw about 160k/yr unadjusted for inflation for the next 10 years. Let SS at 70 be your inflation fighter. Maybe set aside 1k/month in the first few years to tap later on in your late 60s if your personal inflation rate kicks up. Especially if you want...
by bigred77
Tue Sep 16, 2014 1:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Safe Withdrawl Rate
Replies: 25
Views: 2464

Re: "Why 97% of People Don't Use 529 College Savings Plans."

Full time Law students, MBAs, and MDs routinely rack up 6 figure debt loads. It is now the norm. if you have 30-50k from undergrad its not that hard to sneak up around 200k. It just is what it is. Its part of the reason i did a PT MBA program at a less prestigous school than I could have gone to. My...
by bigred77
Fri Sep 12, 2014 11:08 am
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 110
Views: 11150

Re: Calculated Spending: Cars

I've always been told don't spend more than 1/3 of your gross yearly income. If you make $60k a year, you shouldn't spend more than $20k on a car. It's worked out pretty well for me. That's an odd rule. The rule doesn't specify frequency. Are you allowed to spend 1/3 of your income on a car every y...
by bigred77
Fri Sep 12, 2014 10:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Calculated Spending: Cars
Replies: 42
Views: 2972

Re: What risk-return really means

I wonder if readers have missed the point. Here is what Marks is trying to convey: "As you move to the right, increasing the risk: the expected return increases (as with the traditional graphic), the range of possible outcomes becomes wider, and the less-good outcomes become worse." The s...
by bigred77
Wed Sep 10, 2014 1:58 pm
 
Forum: Investing - Theory, News & General
Topic: What risk-return really means
Replies: 41
Views: 2434

Re: 401(k) poll - lawyer/oil and gas worker/airline employee

Oil and Gas Dollar for Dollar on the first 8% and then 6% on top of that regardless of contribution (they contribute 14% as long as I contribute 8%). A couple of low cost index funds (fidelity's S&P 500 index at only 3 basis points is nice) but we have the fidelity brokerage option where i can b...
by bigred77
Wed Aug 27, 2014 10:07 am
 
Forum: Personal Finance (Not Investing)
Topic: 401(k) poll - lawyer/oil and gas worker/airline employee?
Replies: 29
Views: 1866

Re: Can a Boglehead put down 10% on a house?

Look into an 80-10-10 piggyback loan so you don't have to pay PMI. That is what I did and you should be fine. I also did an 80/10/10 about a year ago. No PMI. Second loan closing costs were relatively inexpensive. Higher interest rate on the 2nd though (4.25% 1st mortgage and 5.99% 2nd mortgage). I...
by bigred77
Mon Aug 25, 2014 4:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can a Boglehead put down 10% on a house?
Replies: 30
Views: 2577

Re: Cost, duration of grad school?

So, it seems that it's correct to assume that MOST multi-year hard and soft (i.e. social) sciences in good programs at top schools are likely to be tuition free + stipend, whereas the more professional oriented degrees (MD, law, MBA) and some of the shorter 1 year type masters will require tuition ...
by bigred77
Thu Aug 21, 2014 8:37 am
 
Forum: Personal Consumer Issues
Topic: Cost, duration of grad school?
Replies: 29
Views: 1605

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 inco...
by bigred77
Tue Jul 15, 2014 2:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4976

Re: Millennials (with jobs) are super-saving their retiremen

I read the article to say 74% of millenials are employed and 71% of those who are offered a 401k at work enroll. Of those that enroll, they have an avg account balance of $30k+ and are contributing 10% including employer match. It doesn't sound like its all roses but the younger generation at least ...
by bigred77
Tue Jul 15, 2014 12:13 pm
 
Forum: Investing - Theory, News & General
Topic: Millennials (with jobs) are super-saving their retirement
Replies: 65
Views: 10193

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. N...
by bigred77
Tue Jul 15, 2014 8:37 am
 
Forum: Personal Finance (Not Investing)
Topic: How Much House Should I Buy?
Replies: 81
Views: 4976

Re: NPR: Net Price Of Private Non-Profit College

livesoft wrote:^OK, but what about athletes are who not scholars? Is that in the 75% or in the 25%? :twisted:


There's a "scholar" in every "scholarship athlete"...
by bigred77
Mon Jul 14, 2014 8:14 am
 
Forum: Personal Finance (Not Investing)
Topic: NPR: Net Price Of Private Non-Profit College
Replies: 36
Views: 3387
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