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Re: Money Makeovers - Are these legitimate stories?

By eliminating her $6,000 in credit card and other debt, which carry interest rates of 7.75% to 26.99%, Firman could get rid of $750 a month in interest payments...


That kind of "sums" things up right there...
by freebeer
Mon Sep 29, 2014 2:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Money Makeovers - Are these legitimate stories?
Replies: 8
Views: 1284

Re: Trying to understand Uber and similar "ride sharing" ser

...Does anybody use uber when traveling with a corporate card? I would prefer using uber when I travel, but I worry it will be difficult to expense. These days it seems crowdsourced services like Uber and AirBnB are becoming commonly accepted as business expenses. One of my friends uses Uber almost...
by freebeer
Thu Sep 25, 2014 11:57 pm
 
Forum: Personal Consumer Issues
Topic: Trying to understand Uber and similar "ride sharing" service
Replies: 51
Views: 3129

Re: Are you using a Martingale strategy and don't know it?

This type of strategy of a small steady gain until catastrophe is referred to by Taleb and others as "picking up nickels in front of a steamroller"...
by freebeer
Tue Sep 23, 2014 12:49 am
 
Forum: Investing - Theory, News & General
Topic: Are you using a Martingale strategy and don't know it?
Replies: 28
Views: 2158

Re: Are SPIA's fairly priced? - A quick and dirty analysis

Well the problem actually becomes is that IF they are wrong about their assumptions (such as the longevity) then the risk will get transferred back to you since an insurance company's guarantee is only as good as their ability to pay the claim. If everyone starts living to be 200 then they arent go...
by freebeer
Sun Sep 21, 2014 5:14 am
 
Forum: Investing - Theory, News & General
Topic: Are SPIA's fairly priced? - A quick and dirty analysis
Replies: 75
Views: 3564

Re: We have a grocery problem...

...Meat doesn't taste any different if it's fresh or if you leave it in the freezer for a couple of days or even a week. Next time, cook two steaks , one frozen, one fresh. He won't notice a difference, I guarantee it... I completely disagree. Maybe part of this is the quality of fresh meat vs. wha...
by freebeer
Sat Sep 20, 2014 5:47 am
 
Forum: Personal Consumer Issues
Topic: We have a grocery problem... [Household budget]
Replies: 158
Views: 10594

Re: Sale of a home between boyfriend and girlfriend.

You didn't say how the title is held... if jointly there could be an allocation of ownership percentages based on "Tenants in Common" law in the applicable state, and absent any written agreement to the contrary it's possible that ownership (and thus distribution of profits) could be consi...
by freebeer
Sat Sep 20, 2014 5:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Sale of a home between boyfriend and girlfriend.
Replies: 79
Views: 5520

Re: Are SPIA's fairly priced? - A quick and dirty analysis

Another issue is that your comparison with investment return over the average life expectancy period (20.4 years) ignores the S-shaped curve of the actual graph of human mortality (while by definition 50% of the cohort are alive at L, many more than 25% are alive at L/2 and far fewer than 25% are al...
by freebeer
Fri Sep 19, 2014 4:39 pm
 
Forum: Investing - Theory, News & General
Topic: Are SPIA's fairly priced? - A quick and dirty analysis
Replies: 75
Views: 3564

Re: Holding Cash because Tried to time Market

LateArrival wrote:...In 2008, I pulled my 401(k) out of the stock market, after listening to some gloom and doom forecasts...


When exactly in 2008 did you do this?
by freebeer
Thu Sep 18, 2014 9:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Holding Cash because Tried to time Market
Replies: 78
Views: 6384

Re: Help with a large business decision

You didn't mention what your current savings situation is If the $500K you netted from this year is all you've got then I think sinking almost all of it into the new equipment even with high expected ROI would perhaps be a bit risky, since it would be over-concentrating your capital (financial and h...
by freebeer
Mon Sep 15, 2014 10:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1399

Re: Help please with revised plan for living in retirement

What is your inflation assumption? If many of your fixed expenses are potentially subject to inflation, as they are for most people, then 9 years is a long time to rely on cash and it's hard to be sure that you will definitely have "about $132,000" left unless you are being very conservati...
by freebeer
Fri Aug 15, 2014 1:31 am
 
Forum: Investing - Help with Personal Investments
Topic: Help please with revised plan for living in retirement
Replies: 15
Views: 2838

Re: Principal Residence = Poor Investment?

Here's the easiest way for me to think about it: Option 1) Own a $600,000 house Option 2) Own a $300,000 house and another $300,000 house that you rent out The expenses and appreciation should be about the same but in one case the rental income is $0, the other it's more. It's basically impossible ...
by freebeer
Wed Jul 30, 2014 3:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Principal Residence = Poor Investment?
Replies: 70
Views: 5381

Re: Help with a new $5m portfolio for an old lady

Update: Mom and I had another run through her math, and it turns out she'd really prefer to draw $180k-200k/yr. (I knew $100k was too low, but I thought it would be closer...) She's now talking more like 3.5%/yr draw ... Does your mother understand that she cannot drawdown 3.5-4% of her portfolio w...
by freebeer
Wed Jul 30, 2014 10:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with a new $5m portfolio for an old lady
Replies: 59
Views: 4547

Re: Landlording for long-term wealth? Who's doing it?

biggerpockets.com (forum and blog) is probably something you ought to check out.
by freebeer
Tue Jul 29, 2014 9:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Landlording for long-term wealth? Who's doing it?
Replies: 68
Views: 7808

Re: Help with a new $5m portfolio for an old lady

You indicate a goal of "preserve principal" which is clearly doable with 2% withdrawal. I would delete "live off the dividends' as the point is total returns sufficient for $100K of spending with principal not shrinking, whether total returns comes from dividends or capital gains is i...
by freebeer
Tue Jul 29, 2014 4:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with a new $5m portfolio for an old lady
Replies: 59
Views: 4547

Re: Old people and financial advisors - a family tale

... the advisor is not necessarily cheating your uncle either. The advisor is just not doing a good job. He may be sincere in his lousy advising. Advisors have to get paid to do their advising. To say this advisor is unethical may be to say every paid advisor is unethical as they all charge fees, a...
by freebeer
Sun Jul 27, 2014 12:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Old people and financial advisors - a family tale
Replies: 75
Views: 5737

Re: Buying a Home - Town permit records don't match disclosu

I've owned two residences that I discovered, pre purchase, had undergone completely unpermitted remodeling of a more significant nature than the relatively minor work you described (things like adding bathrooms), and in a relatively picky big city, not out in the boonies. YMMV, but I proceeded in bo...
by freebeer
Sun Jul 27, 2014 11:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Buying a Home - Town permit records don't match disclosures
Replies: 57
Views: 3607

Re: Vanguard quietly adds longevity annuities

... Uh-oh. :o :? :( Those inflation adjusted quotes are much too low . I couldn't quite find anything stating this as clearly as it needs to be stated, but it seems obvious that these quotations are literally for just what they say. Payments of a preset number of dollars , $1,000 a month starting i...
by freebeer
Sat Jul 26, 2014 11:14 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard quietly adds longevity annuities
Replies: 85
Views: 6936

Re: Make Income the Outcome

This is just a large-scale example of the problems people have comparing lump sums with steady payments. "A million dollars" just sounds better than "$70,000 a year for life,"... This isn't just about generalized illogical behavioral in comparing fixed sums with steady payments....
by freebeer
Sat Jul 26, 2014 11:00 am
 
Forum: Investing - Theory, News & General
Topic: Make Income the Outcome
Replies: 49
Views: 3943

Re: Make Income the Outcome

In the game of life there is ultimately no winning, as there's only one outcome. And maximizing spending is *a* goal but is not necessarily *the* only or even most important goal. It would be interesting to learn what percentage of folks have significant bequest motives. I suspect there's millions ...
by freebeer
Fri Jul 25, 2014 11:40 pm
 
Forum: Investing - Theory, News & General
Topic: Make Income the Outcome
Replies: 49
Views: 3943

Re: Make Income the Outcome

I think for many Bogleheads this (is) a headscratcher. You say that if I concentrate on getting the largest portfolio I can I'll undermine my ability to generate appropriate levels of income? Huh? I realize this basic proposition of finance is a headscratcher to many investment enthusiasts. That's ...
by freebeer
Fri Jul 25, 2014 12:52 pm
 
Forum: Investing - Theory, News & General
Topic: Make Income the Outcome
Replies: 49
Views: 3943

Re: "Gel" investment strategy around midlife?

...Here is a vague handwaving argument to suggest that investors should "gel" their strategy somewhere around midlife, and not make further changes...' ...Financial data shows typically shows what I'll call "secular episodes" lasting 10-15 years. You can't spot them or predict h...
by freebeer
Thu Jul 24, 2014 3:43 pm
 
Forum: Investing - Theory, News & General
Topic: "Gel" investment strategy around midlife?
Replies: 5
Views: 851

Re: A case against Index Funds in India

I feel about index funds like what Winston Churchill said about democracy - it's the worst system, except for all the others. You can't make a case *against* index funds unless you can make a case *for* individual stock picking or *for* active funds. And it's quite difficult to make these cases (and...
by freebeer
Wed Jul 23, 2014 9:59 am
 
Forum: Investing - Theory, News & General
Topic: A case against Index Funds in India
Replies: 32
Views: 1829

Re: How indexing let these retirees live footloose and fancy

They are also a bit coy about how much they make from their website and books (which they seem to have more than a half dozen of)... OK so it's only a "supplement", not enough to live on, but is it $1K a year (de minimus) or $15K-$20K year (paying more than half their expenses and being a ...
by freebeer
Tue Jul 22, 2014 7:37 pm
 
Forum: Investing - Theory, News & General
Topic: How indexing let these retirees live footloose and fancyfree
Replies: 35
Views: 3986

Re: Options/guidance for a lazy person to be fit

For me, walking/hiking/biking are the cardio base (I have just never managed to be efficient enough to sustain running/jogging and swimming), combined with strength/higher-intensity conditioning workouts at the gym. If you are lazy (I am) try to do walking/biking as part of your normal daily routine...
by freebeer
Fri Jul 18, 2014 11:07 am
 
Forum: Personal Consumer Issues
Topic: Options/guidance for a lazy person to be fit
Replies: 79
Views: 6102

Re: Withdrawal Rate and Net Worth

Do any of you use net worth when calculating your withdrawals. Eg, you are withdrawing 4% of your net worth rather than just your portfolio. After all, let's say your home equity is a big part of your net worth and you are willing/ready to downsize than why not include that total as your real asset...
by freebeer
Thu Jul 17, 2014 7:39 pm
 
Forum: Investing - Theory, News & General
Topic: Withdrawal Rate and Net Worth
Replies: 16
Views: 1832

Re: Wife has no retirement options- is breadwinner

1 - Max your 401k 2 - Max both Roth IRAs 3 - Max any HSA you might have access to 4 - Start piling up funds in tax efficient taxable Vanguard mutual funds (such as the Total Stock Market Index, the Total International Index, and/or the S&P 500 Index). Keep bonds and any REITs in the retirement ...
by freebeer
Thu Jul 17, 2014 2:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Wife has no retirement options- is breadwinner
Replies: 36
Views: 3369

Re: Ways to lose money and destroy personal wealth by invest

- attempting to hedge "human capital" risk, and more specifically employee stock-option risk, by shorting stock in a peer company of your employer.
- come to think of it, "naked" shorting stock, period.
by freebeer
Thu Jul 17, 2014 12:41 pm
 
Forum: Investing - Theory, News & General
Topic: Ways to lose money and destroy personal wealth by investing
Replies: 81
Views: 9650

Re: Likely about to lose job, planning for transition

...I also went out and bought a third car and got a 0%-loan before I became unemployed.... third car - yikes! with 0% loan implying new car which means many thousands of dollars lost driving off the lot... double yikes!! I would instead be seeking to be considerably more frugal, maybe selling car #...
by freebeer
Thu Jul 17, 2014 11:54 am
 
Forum: Personal Finance (Not Investing)
Topic: Likely about to lose job, planning for transition
Replies: 21
Views: 2691

Re: Withdrawal Rate and Net Worth

Do any of you use net worth when calculating your withdrawals. Eg, you are withdrawing 4% of your net worth rather than just your portfolio. After all, let's say your home equity is a big part of your net worth and you are willing/ready to downsize than why not include that total as your real asset...
by freebeer
Thu Jul 17, 2014 10:05 am
 
Forum: Investing - Theory, News & General
Topic: Withdrawal Rate and Net Worth
Replies: 16
Views: 1832

Re: Minimizing Capital Gain Tax

...daughter who is four years away from college. The funds that we will be using for those expenses will be from two Vanguard taxable accounts. We have a very low basis in both funds so would incur a pretty hefty hit in capital gain tax if we sold shares. Also, my AGI is almost $230,000 and my unde...
by freebeer
Wed Jul 16, 2014 9:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Minimizing Capital Gain Tax
Replies: 10
Views: 1181

Re: Retiring soon setting aside 3 years living expenses

I think I can try to explain the mind set: Folks who retire before age 59.5 with a little bit in a taxable account do not wish to have to withdraw any money from their IRAs before age 59.5, so they want their taxable account to last until they reach age 59.5. They are afraid that a market crash bef...
by freebeer
Tue Jul 15, 2014 6:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Retiring soon setting aside 3 years living expenses
Replies: 49
Views: 5483

Re: University of British Columbia - Vancouver?

I also have an incoming high school senior and UBC is on his "possible" list and he has sailing teammates who are entering this fall. We've been to Vancouver dozens of times, it's a great place and UBC a good school (albeit depending on major Simon Fraser may have it beat rep-wise locally)...
by freebeer
Mon Jul 14, 2014 7:41 pm
 
Forum: Personal Consumer Issues
Topic: University of British Columbia - Vancouver?
Replies: 31
Views: 1903

Re: Safe withdrawal rate > 4% if no heirs & ok to deplete ca

... Your example conflates the tradeoffs of a) reverse-mortgage vs. selling and getting an SPIA with b) staying in a home vs. downsizing into a modest apartment. ... If it comes across that way I misspoke, but reviewing the text I don't think I did. I intended, at least, to compare them as necessar...
by freebeer
Mon Jul 14, 2014 7:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Safe withdrawal rate > 4% if no heirs & ok to deplete captl?
Replies: 32
Views: 3180

Re: Safe withdrawal rate > 4% if no heirs & ok to deplete ca

...One option... is a periodic payment... I would be very surprised if in most cases selling a home and using the proceeds to buy an inflation-adjusted single premium immediate annuity, then moving into a modest rental apartment, especially a housing-agency space reserved for seniors, wasn't a fina...
by freebeer
Sun Jul 13, 2014 9:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Safe withdrawal rate > 4% if no heirs & ok to deplete captl?
Replies: 32
Views: 3180

Re: Retiring soon setting aside 3 years living expenses

...It sounds to me like OP has a taxable portfolio from which OP will be making withdrawals and doesn't want to cash in stock funds during a market pullback. I am in a similar position as I expect to retire in 1 -3 years. For me, the issue isn't having enough assets for retirement - it is the fact ...
by freebeer
Sun Jul 13, 2014 4:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retiring soon setting aside 3 years living expenses
Replies: 49
Views: 5483

Re: Ditch car and commute to work in 250cc scooter in Raleig

... ... as dangerous as the average car. Motorcycles on the other hand are about 35 times worse ... on a per mile basis. ... The "35 times worse" statistic appears to be about the risk of a fatal crash on motorcycle vs. car from a 2006 study (http://www-nrd.nhtsa.dot.gov/Pubs/810990.PDF)....
by freebeer
Sun Jul 13, 2014 4:29 pm
 
Forum: Personal Consumer Issues
Topic: Ditch car and commute to work in 250cc scooter in Raleigh?
Replies: 79
Views: 6701

Re: Safe withdrawal rate > 4% if no heirs & ok to deplete ca

What is your age(s) and gender(s)? There is no way to assess safety of a decumulatory withdrawal rate without this information... 55 year old female a very different story than 72 year old male (I would swag 3% for the former, 5% for the latter). As others have noted if you don't have a bequest moti...
by freebeer
Sun Jul 13, 2014 3:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Safe withdrawal rate > 4% if no heirs & ok to deplete captl?
Replies: 32
Views: 3180

Re: Have you quit your job because of your boss?

... My new position probably wouldn't pay as much, at least initially, but my retirement continues as before and I would still retire at my current pay scale (the highest pay) Of course government agencies are under pressure to reform generous pension plans so I would be hesitant before presuming I...
by freebeer
Sun Jul 13, 2014 12:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Have you quit your job because of your boss?
Replies: 66
Views: 7456

Re: Ditch car and commute to work in 250cc scooter in Raleig

I have a Kymco People S 200, it gets to 70 on level, so I can ride on freeways, and it's affordable both in its miserly gas consumption (I love the expression on the folks filling up their gas guzzlers when I fill up with 1/2 gallon) and purchase priced (used you can get one under $2K). It has motor...
by freebeer
Sun Jul 13, 2014 12:44 pm
 
Forum: Personal Consumer Issues
Topic: Ditch car and commute to work in 250cc scooter in Raleigh?
Replies: 79
Views: 6701

Re: True or False? Your risk tolerance only increases with t

This is situation-dependent so can't be given a blank True or False. If you become truly financially independent - you have more money than you will ever spend, i.e. you are not really "decumulating" in retirement but still adding to your portfolio even with withdrawals - then your risk to...
by freebeer
Fri Jul 11, 2014 9:43 pm
 
Forum: Investing - Theory, News & General
Topic: True or False? Your risk tolerance only increases with time
Replies: 30
Views: 2388

Re: Engineer career change

My goal in life is to maximize my compensation to effort ratio . Haha, been chasing this goal for 30 years. I moved into management about 15 years ago, much more work and stress than individual contributor engineering job, good move avoiding this... I disagree based on my own experience. And, you w...
by freebeer
Fri Jul 11, 2014 12:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Engineer career change
Replies: 55
Views: 5694

Re: San Juan Islands

I prefer Lopez... much quieter than San Juan or even Orcas but has all services, decent restaurants, and some lovely beaches and hikes. Orcas would be my #2 choice... #1 if you want the hippie vibe (go to Doe Bay and soak in the hot springs). Biking is easier on Lopez though (much flatter). We've b...
by freebeer
Fri Jul 11, 2014 6:16 am
 
Forum: Personal Finance (Not Investing)
Topic: San Juan Islands
Replies: 21
Views: 3002

Re: San Juan Islands

I prefer Lopez... much quieter than San Juan or even Orcas but has all services, decent restaurants, and some lovely beaches and hikes. Orcas would be my #2 choice... #1 if you want the hippie vibe (go to Doe Bay and soak in the hot springs). Biking is easier on Lopez though (much flatter).
by freebeer
Thu Jul 10, 2014 6:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: San Juan Islands
Replies: 21
Views: 3002

Re: How to w/d from taxable until SS/RMD time gets here?

If spending down a taxable account you should not reinvest dividends. Collect the dividends for spending.... Why? It would seem better to reinvest and consider which securities to sell for spending based on total tax situation ... It nay be those (since basis = current value) but you might prefer t...
by freebeer
Tue Jul 08, 2014 8:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to w/d from taxable until SS/RMD time gets here?
Replies: 29
Views: 2170

Re: Which house should we buy?

Wow, 4BR 3.5BA and you're a couple without any kids yet. Maybe I'm just being influenced by Mr Money Mustache extremist LBYM financial porn lately but, although clearly you can afford either home, this seems a bit burdensome, if you are interested in achieving early financial independence (which you...
by freebeer
Mon Jul 07, 2014 11:17 am
 
Forum: Personal Finance (Not Investing)
Topic: Which house should we buy?
Replies: 11
Views: 1311

Re: Business structure - Self employed software engineer

I've done LLC taxed as sole proprietorship (pass through). But I am also on the other side, and I presently pay 6 different contractors who are all over the map on their legal structures. I'm small so roll with the punches but if you anticipate business from a few particular MegaCorps (e.g. based on...
by freebeer
Mon Jul 07, 2014 1:49 am
 
Forum: Personal Finance (Not Investing)
Topic: Business structure - Self employed software engineer
Replies: 18
Views: 2035

Re: The Millionaire Next Door: Are You One?

... 1999 vehicle crash test safety compared to any 2015 model--no matter how expensive--is vastly inferior. ... You're actually intentionally putting yourself in a more risky situation by driving an old car. I know they tightened the rules in 2011 but I can't find any specific data about fatalities...
by freebeer
Sat Jul 05, 2014 11:01 pm
 
Forum: Personal Consumer Issues
Topic: The Millionaire Next Door: Are You One?
Replies: 187
Views: 23351

Re: Animal battle Round 7: Raccoon pooping near house

... Trapping the raccoon may not help. There may be more than one ... I was not aware that Baylisascaris transmission was so low. Most of the sites indicate that it was very dangerous. I was planning to clean up the stuff before I let the kids out again... There are almost certainly several using y...
by freebeer
Sat Jul 05, 2014 12:12 pm
 
Forum: Personal Consumer Issues
Topic: Animal battle Round 7: Raccoon pooping near house
Replies: 39
Views: 3338

Re: Animal battle Round 7: Raccoon pooping near house

Because you have raccoons around you don't let your kids play in the back yard? Really?? According to CDC fewer than 25 cases of Baylisascaris disease (transmission of raccoon roundworm to humans) have been documented in the United States... *ever*. There's some evidence that if you keep kids in ult...
by freebeer
Sat Jul 05, 2014 12:06 am
 
Forum: Personal Consumer Issues
Topic: Animal battle Round 7: Raccoon pooping near house
Replies: 39
Views: 3338
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