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Re: How much did you have saved up for retirement at age 30?

Barring any huge market swings in the next month I'll be right at 275k retirement 400k NW Came from a combination of aquiring a STEM degree, early and often investing during the market bottom in 09', a pretty good ESOP, and the purchase of a foreclosure for our first home. Consequently these are th...
by bigred77
Tue Feb 24, 2015 10:01 am
 
Forum: Personal Finance (Not Investing)
Topic: How much did you have saved up for retirement at age 30?
Replies: 168
Views: 11144

Re: Thoughts on Chase for everyday banking

If you do not need to go into a local branch all that often, you should check out Fidelity's Cash Management account. Free checks, no fees, free bill pay, free ATM reimbursements etc. Plus my employer 401k is at fidelity so i have my IRAs there as well. Very nice to have all my financial informatio...
by bigred77
Mon Feb 23, 2015 5:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Chase for everyday banking
Replies: 28
Views: 1883

Re: What % of your gross income do you spend on mortgage/ren

Yeesh...

PITI + HOA fees = 30% of base salaries...

I thought I was right in line but now I feel like a spendthrift... At least this is on a 20 yr mortgage...
by bigred77
Mon Feb 23, 2015 9:38 am
 
Forum: Personal Finance (Not Investing)
Topic: What % of your gross income do you spend on mortgage/rent?
Replies: 155
Views: 8685

Re: Average amount saved for retirement by age

The guesstimates on many online links are way off. The best source for this kind of information is from EBRI's annual surveys and data. They break down the amount of median and average savings by age group and by salary. A family earning between $50,000 and $100,000 had an average amount of $129,00...
by bigred77
Mon Feb 16, 2015 5:56 pm
 
Forum: Investing - Theory, News & General
Topic: Average amount saved for retirement by age
Replies: 133
Views: 27357

Re: One stock

if i had to buy today at today's prices... XOM (Exxon)
by bigred77
Mon Feb 16, 2015 2:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: One stock
Replies: 35
Views: 1883

Re: Projection at age 28 - Is this correct?

OP, your projections for final account value in nominal dollars are done correctly (one could argue your projecting to put your yearly contributions in on Jan 1st every year so your final value is being slightly overstated). I don't agree that 8% projected returns are outlandish. No one knows what y...
by bigred77
Mon Feb 16, 2015 12:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Projection at age 28 - Is this correct?
Replies: 10
Views: 1412

Re: 401k Loan for house

I account for my 401k loan as a fixed income investment for AA purposes in my portfolio. When i put on my lender hat I've been quit pleased with the 4.25% return I've seen when comparing the loan to my alternative (TBM). When i put on my borrower hat I've been quite pleased to borrow at a 4.25% rate...
by bigred77
Thu Feb 12, 2015 4:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401k Loan for house
Replies: 22
Views: 1615

Re: The Best 60/40 Portfolio?

I like the following:

30% VTI -TSM
20% VXUS - Total International Stock Market
20% BND - Total Bond Market
20% VAIPX - TIPS
5% VNQ - US REITs
5% VNQI - International REITs
by bigred77
Thu Feb 12, 2015 4:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: The Best 60/40 Portfolio?
Replies: 20
Views: 2155

Re: What is your "margin investing" threshold?

An after tax rate of about 3% is where I draw the line. If I can get a mortgage of 4% or less I will never pre-pay (I'm in the 25% marginal tax bracket). If I was older and/or closer to my "number", my willingness to leverage would be greatly diminished. In the future (once I establish a t...
by bigred77
Thu Feb 12, 2015 2:19 pm
 
Forum: Investing - Theory, News & General
Topic: What is your "margin investing" threshold?
Replies: 13
Views: 1347

Re: Is "Financial Independence" the new "Retirement?"

[quote="Meg77"] It's hard to dispute that gaining financial independence early in life is a valid aspirational goal, but I'm surprised to see it promoted as something Millennials uniquely crave or have the potential to realize. Is this really a new concept? They did point out that this ide...
by bigred77
Tue Feb 10, 2015 4:14 pm
 
Forum: Investing - Theory, News & General
Topic: Is "Financial Independence" the new "Retirement?"
Replies: 52
Views: 6729

Re: When they say 10%.... [all to retirement accounts?]

So if I took $5000 out of my Roth, say on June 1 where it's after the contribution deadline from the prior year, I could replace it as long as I put the money back before August 1? My understanding is its actually 60 calander days so you would have to have it back in by July 31, not Aug 1. I've use...
by bigred77
Tue Feb 10, 2015 1:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: When they say 10%.... [all to retirement accounts?]
Replies: 20
Views: 2611

Re: What exactly is "wealthy?"

How about anyone in the top decile of wealth distribution in the richest country in the world? That makes any US family with over a $1M USD wealthy How about top 5%? Surely you don't have to be in the top 1% in wealth distribution do you? How about a paid off piece of property to live in a location ...
by bigred77
Tue Feb 03, 2015 3:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: What exactly is "wealthy?"
Replies: 47
Views: 4036

Re: How do you balance frugality and life?

My personal opinion is that if your under age 30-35 (which for some reason i think the OP is, he doesn't mention in this thread), saving anything more than 25% - 33% for retirement is severe overkill unless you're making some extreme income or believe your income to be very unstable/unsustainable. N...
by bigred77
Tue Feb 03, 2015 12:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do you balance frugality and life?
Replies: 50
Views: 5380

Re: ROTH not available - What Tax Efficient Options are?

I would be interested in hearing the debate on Traditional Non-Deductable IRAs (that one does not have the option to convert to a Roth) vs using Index Funds in just a taxable brokerage account. If I'm getting no tax break going in (for a non-deductable trad IRA), I assume I'm paying income taxes on ...
by bigred77
Tue Feb 03, 2015 12:46 pm
 
Forum: Investing - Theory, News & General
Topic: ROTH not available - What Tax Efficient Options are?
Replies: 7
Views: 591

Re: What age did you become financially independent of paren

Graduated high school at 18.
Took 5 years to finish undergrad. Parents definately helped as much as they could.
At 23 started my first job 9 days after graduation and have been financially independent since.
by bigred77
Mon Feb 02, 2015 9:56 am
 
Forum: Personal Consumer Issues
Topic: What age did you become financially independent of parents?
Replies: 68
Views: 4639

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: 79
Views: 4338

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: 71
Views: 7328

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: 5113

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: 4544

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: 5490

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: 928

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: 1121

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: 2868

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: 72
Views: 9477

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: 6037

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: 712

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: 1280

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: 5418

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: 880

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: 11113

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: 880

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: 880

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: 880

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: 880

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: 2375

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: 9543

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: 4673

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: 3487

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: 3487

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: 2740

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: 24647

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: 1722

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: 23426

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: 2002

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: 1387

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: 4372

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: 4985

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: 1061

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: 588

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: 38
Views: 2965
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