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Re: How do you define "being rich"?

I'd define it as being able to draw a significant income without working or depleting assets. Call it $500k per year @ ~3.5% SWR = $15 million invested, plus a house or two. As a starting point. This would be for Silicon Valley or NYC, it could be less in other areas. Even at that level, in those ar...
by mac808
Sat Dec 20, 2014 11:04 pm
 
Forum: Personal Consumer Issues
Topic: How do you define "being rich"?
Replies: 124
Views: 7334

Re: Advice for lock-boxing inheritance for 20 years

I have become a big fan of the idea of a "Boglehead trust" - a trust that distributes 4% of itself to the beneficiary each year forever. You eliminate the potential for the beneficiary to blow the inheritance. Built in COLA. No decisions to be made, no wiggle room, no stress.
by mac808
Fri Dec 05, 2014 1:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Advice for lock-boxing inheritance for 20 years
Replies: 45
Views: 3650

Re: Who do you listen to? (Podcast, etc)

There's a new podcast named "Serial" whicheck has me hooked. I think they are at serialpodcast.org.
by mac808
Mon Dec 01, 2014 1:21 am
 
Forum: Personal Consumer Issues
Topic: Who do you listen to? (Podcast, etc)
Replies: 29
Views: 2894

Re: Starter Trust for adult child?

I think conditions of any kind can be gamed and have the potential to create all sorts of unintended consequences. Personally, I would AA 70/30 and let 80% of the trust income (dividends and bond payments) flow through to the beneficiaries. In one felt swoop you have solidified Boglehead principals ...
by mac808
Fri Nov 28, 2014 8:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Starter Trust for adult child?
Replies: 13
Views: 1988

Re: Relocating to a tax free state with good weather need ad

Check out Las Vegas. It's a hidden gem for retirees. Well, hidden in the sense that most people only think about it as a tourist destination and not a real place to live. 2 million residents. A nice mix of all ages and backgrounds. No state income taxes. Low COL. Weather is great (hot but dry, way m...
by mac808
Sun Oct 12, 2014 3:25 am
 
Forum: Personal Finance (Not Investing)
Topic: Relocating to a tax free state with good weather need advice
Replies: 53
Views: 3674

Re: it will take me about 38 years to reach $1M at this rate

How much do you make, and what do you think your expenses will be in retirement? That million dollars gets you roughly $40k/year in sustainable retirement income. You're saving $5,500/year, which is only 13.75% of your pre-tax income on $40k/year, and it sounds like you're probably not in a very hig...
by mac808
Fri Oct 10, 2014 5:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: it will take me about 38 years to reach $1M at this rate
Replies: 25
Views: 3363

Re: is a 1920 x 1200 monitor worth it?

Yes, and make sure you get a DVI connection, it will reduce eye strain a bit.
by mac808
Fri Oct 03, 2014 11:08 am
 
Forum: Personal Consumer Issues
Topic: is a 1920 x 1200 monitor worth it?
Replies: 15
Views: 876

Re: Trust Company Fee's

Another problem I had with my family trusts was that the trusts were taxed at higher rates than personal income. My mother's trust was paying rates of 35% when most of the family was in the 25% bracket. So check out taxes as well as costs. I believe that most trusts can distribute annual income to ...
by mac808
Fri Sep 19, 2014 10:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trust Company Fees
Replies: 22
Views: 1519

Re: Trust Company Fee's

How much money are you putting into the trust?
by mac808
Fri Sep 19, 2014 9:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trust Company Fees
Replies: 22
Views: 1519

Re: A safe full of cash

[OT comments removed by admin LadyGeek]
by mac808
Thu Sep 18, 2014 9:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: A safe full of cash
Replies: 22
Views: 3108

Re: Can You Build Your Retirement Portfolio Young, then Coas

I am doing this. I have been working like a dog for 8 years in a high stress but extremely well compensated field, and saving the majority of my after-tax income. I plan to work for another 4 or 5 years and then transition to something much less stressful. The little voice inside my head often wonde...
by mac808
Mon Sep 15, 2014 5:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Can You Build Your Retirement Portfolio Young, then Coast?
Replies: 58
Views: 7509

Re: What is your experience managing a 8 or 9 digit portfoli

You can manage 8 or 9 figures on a lazy portfolio model. There's really not much difference if you're liquid (as opposed to most of your net worth tied up in a family business). For advisors, fees drop quickly below .2 for AUM > 25m, so it's still a lot but maybe not as much as you think.
by mac808
Mon Aug 25, 2014 12:49 am
 
Forum: Investing - Help with Personal Investments
Topic: What is your experience managing a 8 or 9 digit portfolio
Replies: 11
Views: 2347

Re: How the rich stay/get richer??

I believe Piketty makes the point that historically return on capital has been greater than growth of earned income, leading to greater income inequality. Until a world war or revolution comes along and there is a chaotic reordering of assets... in the absence of those events, then OP's thesis is c...
by mac808
Tue Aug 19, 2014 9:52 pm
 
Forum: Investing - Theory, News & General
Topic: [live off dividends?] How the rich stay/get richer??
Replies: 62
Views: 5203

Re: Trust for Daughter

What states do you, your ex-husband and your daughter live in?

There are state tax issues that affect trust taxation. One thought is the suggestion for a corporate trustee had to do with trying to minimize these taxes.
by mac808
Fri Aug 01, 2014 1:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Trust for Daughter
Replies: 13
Views: 1084

Re: 36 percent decline in net worth

I read somewhere that a large part of this shift may be due to (1) single people living alone for longer periods of time, resulting in 2 poorer households rather than 1 combined, wealthier household, and (2) the first wave of baby boomers starting to retire and moving from salaries to social securit...
by mac808
Sun Jul 27, 2014 3:20 pm
 
Forum: Investing - Theory, News & General
Topic: 36 percent decline in net worth
Replies: 38
Views: 6278

Best Self Directed IRA Custodian?

Can anyone recommend a good home for a self directed IRA? I want to purchase a small amount of private company stock within a Roth IRA. Fidelity doesn't support this and it doesn't seem like Vanguard would either. I'm familiar with the IRA rules for prohibited transactions and so forth, this is priv...
by mac808
Mon Jul 14, 2014 10:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best Self Directed IRA Custodian?
Replies: 1
Views: 279

Re: Erasing hard disk that have died

An alternative to DBAN is to mount a Linux distro and use dd to write zeros to the drive. dd if=/dev/zero of=/dev/hda bs=1M I do this because I've found DBAN doesn't work on some computers. The idea that you need multiple passes is urban legend. One pass is enough. Nobody has demonstrated the abili...
by mac808
Tue Jul 08, 2014 1:52 pm
 
Forum: Personal Consumer Issues
Topic: Erasing hard disk that have died
Replies: 40
Views: 3653

Re: Erasing hard disk that have died

Here is a method: First use Eraser. Set it for the most overwriting passes possible. Then use Active@Killdisk (http://www.killdisk.com/downloadfree.htm). Then take out the hard drive and physically destroy it (use a drill to put a bunch of holes in it, then smash it up with a hammer). Please wear e...
by mac808
Mon Jul 07, 2014 1:47 pm
 
Forum: Personal Consumer Issues
Topic: Erasing hard disk that have died
Replies: 40
Views: 3653

Re: Do you tell your kids how much you make?

My parents were very open with me about their finances as I was growing up, and I'm very grateful because that is how I learned about how that part of the world works.
by mac808
Thu Jul 03, 2014 2:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you tell your kids how much you make?
Replies: 58
Views: 6531

Re: The Millionaire Next Door: Are You One?

I started off with clunkers as a MND type. Now I can afford pretty much anything and still be living within my means, which is the main lesson from MND as I remember. But I still love and drive reliable 5-10 year old cars. I like people assuming I am lower/middle working class, as it helps me blend ...
by mac808
Sun Jun 29, 2014 8:20 pm
 
Forum: Personal Consumer Issues
Topic: The Millionaire Next Door: Are You One?
Replies: 187
Views: 24185

Re: Retiring at 25? Help with allocation

Read about the lazy portfolios in the wiki, sign up for a Vanguard or Fidelity account and just DCA in to 4 or 8 funds over the next year. I would do 70/30 equities/bonds but it's up to you, 60/40 or 50/50 would be OK but you are giving up a lot of growth potential over the next few decades. The who...
by mac808
Wed Jun 25, 2014 6:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retiring at 25? Help with allocation
Replies: 9
Views: 2916

Re: Is Medical School Worth it Financially?

You are making an interesting but sort of rigged against medicine comparison. Stanford's Computer Science class of 2000 made substantially more than $92,000/year on average and median income (I suspect you know this from peers and would agree). Beyond the averages, if you were in that year and made ...
by mac808
Mon Jun 23, 2014 3:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is Medical School Worth it Financially?
Replies: 66
Views: 5549

Re: engineers - please help with engineering school selectio

Several posters commented on that. I may have misrepresented my son’s words. He wants to finish college with practical degree in hand so he can get a job right away that pays well, short term and long term. He did his research on salaries after graduation, and engineering salaries to him are “a lot...
by mac808
Thu Jun 12, 2014 5:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: engineers - please help with engineering school selection
Replies: 119
Views: 5694

Re: engineers - please help with engineering school selectio

Reputation of school can get your foot in the door for a job. After that point, it's mostly in how you perform (possible exceptions if you're not working in industry). However, if your son has plans to go to graduate school for engineering, the reputation of his undergrad institution does not reall...
by mac808
Thu Jun 12, 2014 4:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: engineers - please help with engineering school selection
Replies: 119
Views: 5694

Re: engineers - please help with engineering school selectio

Super condensed advice incoming. If you can go to MIT, Stanford, Cornell, or another top 10 school for engineering - do it. It's worth the money, without question. Below the top tier, it doesn't matter, go to a good program that's affordable.
by mac808
Thu Jun 12, 2014 12:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: engineers - please help with engineering school selection
Replies: 119
Views: 5694

Re: Enough: True Measures of Money

Rich people think about SWRs the same as others do. Imagine earning 100 million over a career and retiring with perhaps 30 million in cash in the bank, plus two nice houses. 30 million produces 1.2 million before taxes. Seems rich but not obscene.
by mac808
Mon Jun 09, 2014 2:00 pm
 
Forum: Personal Consumer Issues
Topic: Enough: True Measures of Money
Replies: 28
Views: 2451

Re: Funding a job change to a startup

What about finding a Series A funded startup that you believe in, and go work there? Based on your #s, you need about $130k pre tax to keep from spending your savings. You would make maybe 30% less cash (pre tax), but you'd have better upside, and probably a much better work environment. Leaving to ...
by mac808
Fri Jun 06, 2014 9:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Funding a job change to a startup
Replies: 14
Views: 1064

Re: Real money v/s nominal money - Retirement amount questio

I subtract expected inflation rate from expected nominal return rate in order to get the expected ''real'' return. 7% (nominal return) - 2% (inflation) = 5% (real return). And that 5% is the number I use for future growth calculations. Of course there are no guarantees. I'm sure there are other meth...
by mac808
Mon May 19, 2014 9:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Real money v/s nominal money - Retirement amount question
Replies: 5
Views: 765

Re: Do you love your job? What do you do?

Software development. A new project every few months. I love it. I could retire but have no desire to, I will keep doing this for as long as possible. Project based work is fantastic because you can line up long vacations in between projects if you're smart about scheduling, and don't have the mind ...
by mac808
Wed Mar 19, 2014 3:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Do you love your job? What do you do?
Replies: 134
Views: 11271

Re: Money issues - people take me for granted

I've been in the same boat. Close friends (like my best 4-5 friends in the world who I went through a lot of crap with), I would do pretty much anything for. I made money before any of them did. I loaned 2 of them $30k each and both paid me back. One of them was a year late in paying me back but I n...
by mac808
Tue Mar 11, 2014 12:09 am
 
Forum: Personal Finance (Not Investing)
Topic: Money issues - people take me for granted
Replies: 74
Views: 5443

Re: Helping an irresponsible dad preserve a financial windfa

I've seen a lot of older folks enjoy moving from the Bay Area to Las Vegas; there is a lot to do, it's still close to the west coast, and it's so much cheaper. Does he own a home in the Bay Area? If so, that could be another huge windfall for him.
by mac808
Mon Mar 03, 2014 1:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Helping an irresponsible dad preserve a financial windfall
Replies: 29
Views: 2482

Re: California vs. Texas

I have lived in both states. Some thoughts: 1. It wasn't the extra income tax that bothered me most about California, but the extreme social inequality. In Texas, there are less distinctions between the classes because real estate, good schools, and safe neighborhoods are accessible for almost every...
by mac808
Wed Feb 26, 2014 10:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: California vs. Texas
Replies: 32
Views: 2905

Re: The Estate lawyer cost us big

Get the full bill, which should include every cost down to the penny, including itemization of the $16k tax prep and filing costs. Mark anything that seems inflated. Ask to speak to your cousin's boss, either the supervising partner, or if your cousin is a partner, then the managing partner of the f...
by mac808
Sun Feb 23, 2014 8:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: The Estate lawyer cost us big
Replies: 109
Views: 9869

Re: Family Inheritance / (Family Feud)

The devil's in the details but my gut tells me it sounds like an irrevocable trust and grandpa probably has no (legal) power to change it.
by mac808
Tue Jan 28, 2014 10:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Family Inheritance / (Family Feud)
Replies: 16
Views: 3081

Re: Burton Malkiel, Wealthfront CIO

I looked at starting a similar business in 2011. The problem, as mentioned earlier in this thread, is that the AUM # needs to be so massive @ 25 basis points fee in order to drive real revenue. I concluded it would be better off as a lifestyle business, which seems to be the route that other contrib...
by mac808
Sat Jan 04, 2014 9:29 pm
 
Forum: Investing - Theory, News & General
Topic: Burton Malkiel, Wealthfront CIO
Replies: 89
Views: 13753

Re: 28 y/o Investor With 1M Portfolio Needs Advice

I had a seven figure portfolio around that age due to a small business going well. I opted for 50/50 initially - once you've won the game, quit playing, etc. I changed it to 60/40 and then 70/30 over the following 24 months. 70/30 is where I felt (and still feel) most comfortable. I would not go 100...
by mac808
Fri Dec 13, 2013 2:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: 28 y/o Investor With 1M Portfolio Needs Advice
Replies: 31
Views: 5061

Re: Who on here owned American Airlines Stock

You didn't lose 85% of the value. You have been sucked into a complicated distribution formula that depends on debt schedules and the new AAL share price over the next 120 days. Head over to the Yahoo finance message board and read more.
by mac808
Thu Dec 12, 2013 3:31 am
 
Forum: Investing - Help with Personal Investments
Topic: Who on here owned American Airlines Stock
Replies: 21
Views: 2025

Re: 145k in student loans, 255k in investments, and UNK Futu

What happens if you pay off your loans and then, due to unforeseen circumstances, you end up staying at your current job another 7 years?

If you do want to pay them off, I would do it the day after you leave and not a moment sooner.
by mac808
Tue Dec 10, 2013 6:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Financial decisions to start a business and family (edited)
Replies: 36
Views: 2310

Re: Fidelity undercuts Vanguard target date funds

Competition is a beautiful thing.
by mac808
Thu Dec 05, 2013 4:47 pm
 
Forum: Investing - Theory, News & General
Topic: Fidelity undercuts Vanguard target date funds
Replies: 31
Views: 2506

Re: windfall in high tax california, what to do

Is the windfall in the form of long term capital gains or earned income? Do you plan to retire in the Bay Area, or eventually leave for cheaper pastures once you are ready to quit working?
by mac808
Sun Nov 17, 2013 7:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: windfall in high tax california, what to do
Replies: 20
Views: 2033

Re: "Why baby boomers won't bust the market"

From what I've read a small % of boomers own a large % of the stock market, and those folks don't need the principal to live on, so the impact should be muted. More interesting to me is the boomer effect on housing prices, because there's a much more even distribution of houses to boomers. As the wa...
by mac808
Wed Nov 13, 2013 8:48 pm
 
Forum: Investing - Theory, News & General
Topic: "Why baby boomers won't bust the market"
Replies: 13
Views: 1796

Re: Physician - real estate question

Wait at least a year after joining a new job/practice to make sure you like it. Most residents I know seem to move multiple times before they find the right fit for long term career path. Same with physicians retiring from military service.
by mac808
Fri Nov 01, 2013 2:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Physician - real estate question
Replies: 11
Views: 1521

Re: Best careers for people about to enter college?

Computer science. Learn how to code and manage software. A top 1/3rd programmer earns $100k out of school (in SF, NYC, or Boston) with lots of growth potential. It's also a flexible career choice - can take risk and join a startup, work remote from Thailand, become a consultant and work part-time, e...
by mac808
Tue Oct 22, 2013 12:17 am
 
Forum: Personal Finance (Not Investing)
Topic: Best careers for people about to enter college?
Replies: 69
Views: 5214

Re: Can we afford private school?

I went to 8 different K-12 schools and even homeschooled for a year while growing up (military family). Based on my experience, a 99th percentile gifted-only public magnet school was the best, followed by (large gap) the private schools, followed by (large gap) the public schools. Class sizes, motiv...
by mac808
Tue Jul 23, 2013 2:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can we afford private school?
Replies: 87
Views: 7187

Re: At what networth is it not worth working at X salary?

I struggle with this (mental) challenge also, in a similar situation as reason-logic (with lower absolute #s) - more than enough to retire, and half way out the door already, but significant golden handcuffs make it hard to exit completely. After-tax savings from my salary in 2013 will be a little o...
by mac808
Sat Jul 13, 2013 4:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: At what networth is it not worth working at X salary?
Replies: 34
Views: 6191

Re: NYC, Philly, Boston, or Chicago?

I would go wherever the best career opportunities are. NYC might be the most fun in terms of nightlife. Philly and Chicago are significantly cheaper than NYC or Boston but for a short period of time, the extra cost might not matter.
by mac808
Fri Jul 12, 2013 8:33 pm
 
Forum: Personal Consumer Issues
Topic: NYC, Philly, Boston, or Chicago?
Replies: 102
Views: 6808

Re: how bad would it hurt to spend an extra 10k on a car (24

If you're a true boglehead, you'll regret the purchase shortly after making it. It sounds to me like you want a status symbol more than a car. And as other posters have alluded to, sometimes a car is not just a car, but the cornerstone of the type of lifestyle you end up getting sucked into.
by mac808
Fri Jul 12, 2013 7:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: how bad would it hurt to spend an extra 10k on a car (24 yo)
Replies: 93
Views: 5486

Re: Mom just lent 40k to a friend w/o a contract

Depends on the parties involved. I have some close friends who I would trust with my life, and with $40k (2-3% of net worth). Others who I wouldn't. I do believe that in some cases, if it doesn't present much financial risk to the lender, lending cash to a close, responsible friend who is in a tough...
by mac808
Fri Jul 12, 2013 12:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Mom just lent 40k to a friend w/o a contract
Replies: 61
Views: 6731

Re: Tesla Motors Stock

I can't speak to Tesla's stock market valuation, but to echo similar sentiments expressed in the thread, all of the car guys I know who have driven Tesla cars absolutely love them.
by mac808
Thu Jul 11, 2013 12:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Tesla Motors Stock
Replies: 164
Views: 13760

Re: Are you expected to subsidize friends and family?

This is where the "millionaire next door" lifestyle has helped me. Friends know I am financially very successful but see me living in a very modest apartment and driving an old, beat up used car. They observe me making very conscious spending choices whenever we are out and about, using co...
by mac808
Thu Jun 27, 2013 10:58 am
 
Forum: Personal Consumer Issues
Topic: Are you expected to subsidize friends and family?
Replies: 52
Views: 5979
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