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Re: Purchasing rental property vs. REITs

I'm just sticking with a small allocation of REITs. I decided I didn't have the time or energy to put up with potentially shitty tenants. Thanks for the advice and input everyone
by khalestorm
Tue May 27, 2014 2:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Purchasing rental property vs. REITs
Replies: 27
Views: 3367

Re: Confusion about reinvesting dividends in taxable

In my taxable account, I sweep the dividends into my money market account and use the specific ID cost basis method. I then re-invest the money market money when I'm making a larger purchase. I sweep to make the record-keeping easier, and I use specific ID so I can tax loss harvest. I highly recomm...
by khalestorm
Thu Mar 06, 2014 6:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Confusion about reinvesting dividends in taxable
Replies: 37
Views: 2491

Re: Early Retirement Example

This is a great tool as well in addition to firecalc
http://wciq.rocketdogsoftware.com/
by khalestorm
Wed Feb 05, 2014 11:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Example
Replies: 29
Views: 3777

Re: 2013 was good. Suggestion to park money in 2014.

buy and hold. It's not that hard man. You're over thinking. Park the money and go have fun in life. You are on the wrong forum if you think you'll get other advice.
by khalestorm
Tue Feb 04, 2014 12:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2013 was good. Suggestion to park money in 2014.
Replies: 35
Views: 3388

Re: 30k in cash, invest or not

Ahhh, gotcha. I see you keep drifting away from throwing it at the mortgage. :D I would say, if this money is meant to be invested long term, invest it according to your AA and call it good. Yea, i just don't trust home equity like previous generations. I still think the housing market is overinfla...
by khalestorm
Mon Jan 27, 2014 6:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: 30k in cash, invest or not
Replies: 8
Views: 630

Re: 30k in cash, invest or not

I would definitely invest it now. In fact I just did with a chunk on 1/24 and another one today. And the emergency fund thing has been discussed over and over so I won't go into that other than to say I don't keep one. If an emergency comes up I will sell a portion of my taxable account. This is wh...
by khalestorm
Mon Jan 27, 2014 6:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: 30k in cash, invest or not
Replies: 8
Views: 630

Re: 30k in cash, invest or not

Daniel O wrote:
khalestorm wrote:This includes my emergency fund. I would require $7200 of this for a 6 month emergency fund, if that's advisable.


$7200/6=1200 per month. May I ask how you keep your expenses so low? That seems barely above the poverty line.


Sure, my mortgage is $600 and I can live on $600. I'm frugal :)
by khalestorm
Mon Jan 27, 2014 6:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: 30k in cash, invest or not
Replies: 8
Views: 630

Re: 30k in cash, invest or not

I feel more confident having my money in investments rather than equity. I think you will need to explain that part to us. Most would consider equities as "investments". What do you consider "investments" if think of equities as something different? doh. sorry. home equity. I'm ...
by khalestorm
Mon Jan 27, 2014 6:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: 30k in cash, invest or not
Replies: 8
Views: 630

30k in cash, invest or not

Hey all, I have about 30k in cash essentially sitting in low yield savings accounts at the moment. This includes my emergency fund. I would require $7200 of this for a 6 month emergency fund, if that's advisable. I've read some folks even keep as low as 3 months emergency funds and invest the rest. ...
by khalestorm
Mon Jan 27, 2014 4:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: 30k in cash, invest or not
Replies: 8
Views: 630

Penny stock millionaire

The antithesis of Boglehead philosophy, but still an interesting read. You gotta have stories like this to realize the 99% of others fail at this game.
http://money.cnn.com/2013/12/16/investi ... ?hpt=hp_t3
by khalestorm
Mon Dec 16, 2013 4:41 pm
 
Forum: Investing - Theory, News & General
Topic: Penny stock millionaire
Replies: 2
Views: 697

Re: Pay off home?

Thanks again for all your help. I decided paying off the home just wasn't in my best interest. It's not an area that I foresee raising a family in, therefore, owning this asset for the long run doesn't make sense to me. I decided instead to invest this money in my taxable accounts with Vanguard, hop...
by khalestorm
Mon Dec 16, 2013 12:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay off home?
Replies: 63
Views: 4533

VTSAX vs VTIAX

What does everyone think about owning both VTSAX and VTIAX? I've been very torn lately in splitting my AA between VTSAX and VTIAX and just going all out VTSAX for my equities allocation. VTIAX has added risks of currency fluctuations, higher ER. Thoughts? http://jlcollinsnh.com/2012/09/26/stocks-par...
by khalestorm
Thu Dec 12, 2013 12:47 pm
 
Forum: Investing - Theory, News & General
Topic: VTSAX vs VTIAX
Replies: 4
Views: 768

Re: Wife upset - loss of principal in Bonds

Question: 1. Should I sell all the bonds now b/c i am afraid that with FED tapering bonds may loose more principal? 2. Should I hold the some or all of the bonds and hopefully it will recover someday? 3. Is there a better place to invest to get 2-3% vs CDs? Even before step 1. You must be financial...
by khalestorm
Fri Dec 06, 2013 8:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Wife upset - loss of principal in Bonds
Replies: 60
Views: 7240

Re: Retirement Portfolio review help

khalestorm , you have a desired AA of 75% stocks, 25% bonds, with 0% of stocks in international. (My argument for 30% of stocks in international is below.) The following is a possible retirement portfolio with no international: Taxable at Vanguard -- 33% 33% ( VTSAX ) Vanguard Total Stock Market In...
by khalestorm
Thu Dec 05, 2013 9:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement Portfolio review help
Replies: 2
Views: 739

Retirement Portfolio review help

Hi all, Looking to do a re-balance and re-allocation of funds across my entire retirement portfolio. My objective is to keep ER's as low as possible and have a mix of about 75/25 stock/bonds/REITs. I'm very interested in REITs, however, my company does not offer REITs for my 401k. Would it be accept...
by khalestorm
Wed Dec 04, 2013 12:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement Portfolio review help
Replies: 2
Views: 739

Re: Purchasing rental property vs. REITs

EmergDoc wrote:Where are you at that a $25K property rents for $700? Why don't you buy them all? Using John T. Reed's 55% rule the cap rate on that property is 18.5%. That's not a bad property at 3 times the price. (Assuming your numbers are right, which I'd be skeptical of.)


I'm trying :wink:
by khalestorm
Thu Nov 28, 2013 1:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Purchasing rental property vs. REITs
Replies: 27
Views: 3367

Re: Purchasing rental property vs. REITs

Where are you at that a $25K property rents for $700? Why don't you buy them all? Using John T. Reed's 55% rule the cap rate on that property is 18.5%. That's not a bad property at 3 times the price. (Assuming your numbers are right, which I'd be skeptical of.) I can't believe a 25k property would ...
by khalestorm
Thu Nov 28, 2013 1:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Purchasing rental property vs. REITs
Replies: 27
Views: 3367

Re: Purchasing rental property vs. REITs

Yep, I remember. You would pay cash for the rental then? If I recall, you had a nice chunk saved up. Yea cash for rental, so pretty much immediate passive income minus property taxes ($20 a year, didnt miss a zero, insurance, trash collection, etc), I have even more $ saved up. Probably buy another...
by khalestorm
Wed Nov 27, 2013 5:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Purchasing rental property vs. REITs
Replies: 27
Views: 3367

Re: Purchasing rental property vs. REITs

Thought you were going to pay down your mortgage?! :D That's a pretty good return you would be looking at buying that rental property. I don't think REITs can guarantee that kind of return. No contest there. Haha! You remember me and my story :) I'm not paying down a underwater mortgage, it's just ...
by khalestorm
Wed Nov 27, 2013 5:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Purchasing rental property vs. REITs
Replies: 27
Views: 3367

Purchasing rental property vs. REITs

Looking to purchase a bank owned home for $30k (listed at 25k, I'm offering more due to multiple bids). Property is in good shape and pretty much ready to rent. About 5 min from my current home. Will command about $700 in rent. I'm looking at a return of about 24% annually on this investment. I have...
by khalestorm
Wed Nov 27, 2013 4:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Purchasing rental property vs. REITs
Replies: 27
Views: 3367

USAA USTEX fund question

Hi all, I've got about 10k sitting in USTEX (long term tax exempt bond fund) and am considering moving this over to VTSAX for tax efficiency. I already own some shares in VTSAX and really like the fund. My portfolio is a little bond heavy, and I believe having these bonds in a taxable account is tax...
by khalestorm
Wed Nov 27, 2013 11:35 am
 
Forum: Investing - Help with Personal Investments
Topic: USAA USTEX fund question
Replies: 1
Views: 182

Re: The bumpy road to outperformance

Not directing the sarcasm at you, Mel, but towards those in actively managed funds who claim to beat the average returns of the market. In other news, water is still wet :happy
by khalestorm
Mon Nov 25, 2013 4:25 pm
 
Forum: Investing - Theory, News & General
Topic: The bumpy road to outperformance
Replies: 11
Views: 1519

Re: 3rd yr Boglehead Anniversary - Annual Checkup - 27 yr ol

SobeCane wrote:Cash (Emergency Fund)
$30k in Rewards Checking Acct (3% Interest)

Roth IRA
$130k Vanguard Total Stock Market

401(k)
$40k John Hancock Total Bond Market


Who are you using for your rewards checking acct?
What age did you start investing in your IRA? That's a nicely sized R-IRA...
by khalestorm
Fri Nov 22, 2013 3:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3rd yr Boglehead Anniversary - Annual Checkup - 27 yr old.
Replies: 21
Views: 1698

Re: 27 Year Old Self-Employed/Entrepreneur Portfolio Checkup

subscribed. Nothing to contribute other than to say great job OP. Any reason you are hesitant to mention your industry/trade?
by khalestorm
Tue Nov 19, 2013 6:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: 27 Year Old Self-Employed/Entrepreneur Portfolio Checkup
Replies: 12
Views: 1974

Re: Ready to invest 10k in taxable account

Too late for today. You have to get your order into Vanguard, the mutual fund company, before 4 pm Eastern, 1 pm Pacific. That's what I thought. Any pros/cons to investing a lump sum of cash rather than DCA? Do I need to worry about whether the market is up or down when investing if I'm investing f...
by khalestorm
Thu Nov 07, 2013 6:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ready to invest 10k in taxable account
Replies: 26
Views: 1264

Re: Ready to invest 10k in taxable account

The principles of tax-aware asset allocation are extremely important and you should learn them before acting: http://www.bogleheads.org/wiki/Principles_of_tax-efficient_fund_placement . Thanks, i've read through that before. I'll consider increasing my bonds in my 401k due to their tax inefficiency.
by khalestorm
Thu Nov 07, 2013 6:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ready to invest 10k in taxable account
Replies: 26
Views: 1264

Re: Ready to invest 10k in taxable account

This maybe a bit of a noob question, but hey, I'm still learning. I'm still planning on purchasing 10k in VTSAX. Since the market is down today, would it be a good time to purchase now? I'm going to buy all at once and not DCA the funds.
by khalestorm
Thu Nov 07, 2013 6:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ready to invest 10k in taxable account
Replies: 26
Views: 1264

Re: Ready to invest 10k in taxable account

P.S. Perhaps I see the problem. You think one pot means that all the separate pots need to mirror each other. That's not what one pot means. One pot means one pot. If you want 30% bonds, then you can put them anywhere in the one pot. We think the 401(k) corner of the one pot is the right place for ...
by khalestorm
Wed Nov 06, 2013 1:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ready to invest 10k in taxable account
Replies: 26
Views: 1264

Re: Ready to invest 10k in taxable account

Thanks, however my 401k is with Fidelity. My asset allocation in my 401k is appropriate. Looking to just do 10k in VTSAX for now. So you are not considering your portfolio of 401(k), Roth, IRA, and taxable as a single portfolio? Fidelity has equivalent funds to the ones you and I mentioned, so one ...
by khalestorm
Wed Nov 06, 2013 1:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ready to invest 10k in taxable account
Replies: 26
Views: 1264

Re: Ready to invest 10k in taxable account

livesoft wrote:I would put $10,000 into VTSAX, then shift $1,000 in your 401(k) from VTSAX there into VBTLX there.


Thanks, however my 401k is with Fidelity. My asset allocation in my 401k is appropriate. Looking to just do 10k in VTSAX for now.
by khalestorm
Wed Nov 06, 2013 1:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ready to invest 10k in taxable account
Replies: 26
Views: 1264

Re: Ready to invest 10k in taxable account

I see that I need 10k in order to start with VTSAX. Looks like I'll just do all VTSAX and no bonds.
by khalestorm
Wed Nov 06, 2013 1:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ready to invest 10k in taxable account
Replies: 26
Views: 1264

Ready to invest 10k in taxable account

Hi all, I'm ready to invest 10k in a taxable account with Vanguard. My 401k and RothIRA are maxed out yearly, emergency fund good for a year's worth of expenses. I can take on a good amount of risk as I won't need to access these funds for 10+ years. Looking to be pretty aggressive. Perhaps 90/10 st...
by khalestorm
Wed Nov 06, 2013 12:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ready to invest 10k in taxable account
Replies: 26
Views: 1264

Real Estate vs Equities

I had dinner the other night with a good buddy to catch up on life. He's home from overseas work looking to buy real estate. He began to talk about how he didn't believe in the US Stock market and was instead, planning to supplement his retirement by buying real estate. I was getting pretty nervous ...
by khalestorm
Wed Oct 30, 2013 10:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Real Estate vs Equities
Replies: 15
Views: 1243

Re: 23 year old maxing out tax advantaged accounts...now wha

Good job OP. Lots of good quality varying advice in this thread, which is really just icing on the cake for you. You already have a solid foundation. My 2 cents is build a 12 month emergency fund, then pay off all student loan debt, then the car (unless the interest rate on the loan increases in the...
by khalestorm
Wed Oct 30, 2013 10:08 am
 
Forum: Investing - Help with Personal Investments
Topic: 23 year old maxing out tax advantaged accounts...now what?
Replies: 61
Views: 5818

Re: Pay off home?

So I read the entire thread again to see if I was missing anything. My conclusion is: use this cash you have sitting around to make your life easier and more enjoyable. If you don't want to live in the house you now live in, sell the house, bring extra cash to the closing, and live where you want t...
by khalestorm
Thu Oct 24, 2013 5:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay off home?
Replies: 63
Views: 4533

Re: Pay off home?

If "don't lose money" is set in stone, you may be waiting a while. When you sell, you also have to figure in all the selling fees that need to be covered and accounted for to break even. If you use it as a rental for however long, you have to factor in the depreciation claimed and taxes y...
by khalestorm
Tue Oct 22, 2013 4:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay off home?
Replies: 63
Views: 4533

Re: Pay off home?

I'm not sure if I follow the part about not losing money on the home. The issue shouldn't be "will I sell the house for more than I owe on it?" but "what decision will lead to my highest net worth?" So, you can sell the house now and have $50-$60k to invest somewhere. Or, you ca...
by khalestorm
Tue Oct 22, 2013 4:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay off home?
Replies: 63
Views: 4533

Re: Pay off home?

Re-opening this discussion one more time. So I had my realtor do a CMA (comparative market analysis) and it appears that if I were to sell, i should list my house for 65k with hopes of selling it around the mid to high 50k's. That's about 10-15k off my previous estimate that my home was worth 70k. S...
by khalestorm
Tue Oct 22, 2013 3:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay off home?
Replies: 63
Views: 4533

Re: Taxable investments

I'm looking at doing a S&P total US market index fund and total international market index fund (100% equities) with Vanguard. No need to discuss retirement accounts/mortgage/etc as that's all in order. Your retirement account is important because your whole portfolio will fund your retirement,...
by khalestorm
Thu Oct 03, 2013 9:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Taxable investments
Replies: 8
Views: 752

Re: Taxable investments

InvestorNewb wrote:
khalestorm wrote:I'm trying to gain as much as I can in this portfolio in 19 years and use the gains as income at age 50 to hold me over until 59.5.


What happens at 59.5?

I withdraw from my 401k penalty free.
by khalestorm
Thu Oct 03, 2013 5:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Taxable investments
Replies: 8
Views: 752

Re: Taxable investments

Hi all, I'm sure this has been discussed here many times, just looking to get quick advice. What taxable investment funds and brokerage are you guys using? I'm looking at doing a S&P total US market index fund and total international market index fund (100% equities) with Vanguard. No need to d...
by khalestorm
Thu Oct 03, 2013 5:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Taxable investments
Replies: 8
Views: 752

Taxable investments

Hi all, I'm sure this has been discussed here many times, just looking to get quick advice. What taxable investment funds and brokerage are you guys using? I'm looking at doing a S&P total US market index fund and total international market index fund (100% equities) with Vanguard. No need to di...
by khalestorm
Thu Oct 03, 2013 5:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Taxable investments
Replies: 8
Views: 752

Re: Pay off mortgage sooner or invest in taxable funds?

This is a complex subject which has come up many times. Reading the Wiki is good: http://www.bogleheads.org/wiki/Paying_down_loans_versus_investing It makes no sense to invest in bonds, because you are not going to get 3.75% in bonds. As a result, you have to invest 100% in stocks, which will proba...
by khalestorm
Thu Oct 03, 2013 11:14 am
 
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage sooner or invest in taxable funds?
Replies: 28
Views: 3060

Re: 2007 Honda Civic, to sell or not to sell?

Seems to me there are a lot of BH's who drive Civics/Accords 8-)
by khalestorm
Wed Oct 02, 2013 10:11 am
 
Forum: Personal Consumer Issues
Topic: 2007 Honda Civic, to sell or not to sell?
Replies: 57
Views: 2865

Re: 2007 Honda Civic, to sell or not to sell?

I think you have heard wrong. Cars depreciate lot faster in first 3-5 years. There is not much to depreciate afterwards. Your maintenance costs may go up due to age of car. Back to your question KEEP The CAR. Civics are great cars and if you keep maintaining it 250k is normal. I drive a 2000 Honda ...
by khalestorm
Wed Oct 02, 2013 10:03 am
 
Forum: Personal Consumer Issues
Topic: 2007 Honda Civic, to sell or not to sell?
Replies: 57
Views: 2865

2007 Honda Civic, to sell or not to sell?

Hi all, I have a 2007 Honda Civic with 90k miles and no maintenance issues to attend to. I own the car completely, no loans. It's a great car and I've never had a single problem with it. My question is this, since the car is almost at 100k miles, should I hold onto it or look at buying a newer, 2012...
by khalestorm
Wed Oct 02, 2013 9:51 am
 
Forum: Personal Consumer Issues
Topic: 2007 Honda Civic, to sell or not to sell?
Replies: 57
Views: 2865

What to do with $50,000 cash?

This is a good problem to have, I think. I'm at a crossroads as to what to do with $50,000 I've saved from a side business. I also discussed the topic here, where I leaned heavily towards paying off my mortgage: http://www.bogleheads.org/forum/viewtopic.php?f=2&t=123004 I'm beginning to re-think...
by khalestorm
Wed Sep 25, 2013 1:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to do with $50,000 cash?
Replies: 8
Views: 1956

Re: Young Guys [and Gals] Making Good Money

To each his own, but I'd much rather make $60k in a low stress job working 40 hours a week, than make six figures in a high stress 60+ hour a week job. Think about what makes you happy in your life. I don't think anyone on their death bed wished they spent more time at work. +1 Perspective changes ...
by khalestorm
Wed Sep 25, 2013 10:17 am
 
Forum: Personal Finance (Not Investing)
Topic: Young Guys [and Gals] Making Good Money
Replies: 241
Views: 23820
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