Search found 604 matches

by Alto Astral
Fri Mar 24, 2017 10:34 pm
Forum: Personal Consumer Issues
Topic: home buying negotiation tips
Replies: 10
Views: 930

Re: home buying negotiation tips

It was a sellers market last year for us. Multiple-offer situation. We loved the home. Luckily got it. Never regretted offering over asking price. This was the first home we bought so I am not experienced enough to give tips. But I can say this - after two years of searching we felt this was the one...
by Alto Astral
Fri Mar 24, 2017 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage refinancing help understanding costs
Replies: 2
Views: 208

Re: Mortgage refinancing help understanding costs

The difference in very small. I'd stick with 30YF. You could always pay more towards principal thereby reducing the overall interest you pay through the life of your loan. That way my thought process between choosing 15YF vs 30YF. I started doing some pre-payments but recently stopped and instead op...
by Alto Astral
Fri Mar 24, 2017 10:20 pm
Forum: Investing - Help with Personal Investments
Topic: Jumping back in the market
Replies: 18
Views: 2242

Re: Jumping back in the market

I went in with $35k in a week. dbr recommended today to just go in and don't look back and I did. Your amounts may be larger and I can understand. For me it boiled down to if I was willing to pretend to DCA over then next week/month etc vs just go all in. I decided I would spend all the time checkin...
by Alto Astral
Fri Mar 24, 2017 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Wife Getting PHD. Should I open a 529 Account
Replies: 6
Views: 671

Re: Wife Getting PHD. Should I open a 529 Account

A friend suggested we open an Oklahoma 529 plan ( details here ). We were told that that we can put $10,000 per year each ($20,000 total) into the account and then immediately withdraw it to pay for the expenses and our state income tax liability would be reduced by the $20,000 that we put into the...
by Alto Astral
Fri Mar 24, 2017 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Capital One 360 Money Market account for use as checking account?
Replies: 13
Views: 595

Re: Thoughts on Capital One 360 Money Market account for use as checking account?

I am starting to do this partially with my 360 savings account (0.75%). Just 2 withdrawals / month: mortgage and my credit card used for most expenses. Maybe the occasional transfer to Vanguard Taxable. All other smaller credit card balance, utility bill etc from Chase. Maybe I'll move those to 360 ...
by Alto Astral
Fri Mar 24, 2017 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Which of these funds for new 401k?
Replies: 9
Views: 425

Re: Which of these funds for new 401k?

100% in your 401k could go towards Vanguard Institutional Index. That will have the lowest expense ratio.

I recommend keeping bonds in Roth IRA as you have the option to withdrar contributions as needed.

Above are what I am doing.

With that you could have 80/20 AA.
by Alto Astral
Fri Mar 24, 2017 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Your Experiences with Risk Tolerance and having smaller versus larger account balances
Replies: 18
Views: 1247

Re: Your Experiences with Risk Tolerance and having smaller versus larger account balances

After about a year in 2015, I realized after reading much more on the forums I realized that I really do have the risk tolerance and ability to take on the 100/0 AA with Retirement funds. I faced this recently; if I should increase my risk. We are in our mid-30s too. However, I could not decide if ...
by Alto Astral
Fri Mar 24, 2017 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: Total Stock Market Admiral in both taxable and IRA?
Replies: 22
Views: 1500

Re: Total Stock Market Admiral in both taxable and IRA?

Tax loss harvesting can only happen in taxable accounts, so no problem selling in Roth IRA. If you sell at a loss in taxable, TLH, you can claim a loss if you have not also purchased that stock, either in taxable or in IRAs, within 30 days before or after your sale. It is not illegal to do so, you ...
by Alto Astral
Fri Mar 24, 2017 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: Total Stock Market Admiral in both taxable and IRA?
Replies: 22
Views: 1500

Re: Total Stock Market Admiral in both taxable and IRA?

It's not a no-no. However, there's one catch you need to know about. One of the benefits of a having a taxable account is that you're able to tax-loss harvest. If you're going to tax-loss harvest, you need to become familiar with the wash sale rule. The one thing that may not be obvious to someone ...
by Alto Astral
Fri Mar 24, 2017 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: Total Stock Market Admiral in both taxable and IRA?
Replies: 22
Views: 1500

Re: Total Stock Market Admiral in both taxable and IRA?

It's not a no-no. However, there's one catch you need to know about. One of the benefits of a having a taxable account is that you're able to tax-loss harvest. If you're going to tax-loss harvest, you need to become familiar with the wash sale rule. The one thing that may not be obvious to someone ...
by Alto Astral
Fri Mar 24, 2017 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: dollar cost averaging
Replies: 11
Views: 876

Re: dollar cost averaging

Alredy put 10k last week, 5k today. DCA $500/week. $20k more to go. Can't time anything; now's as good a time as any If now is as good a time as any, why are you piddling around at $500/week? If this is in taxable it would be simpler to just have one lot invested. The $500/week is from paychecks - ...
by Alto Astral
Thu Mar 23, 2017 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: Selling mutual funds in a ROTH
Replies: 13
Views: 878

Re: Selling mutual funds in a ROTH

No, you would "Buy". Then pick settlement fund in the source dropdown. I used "Exchange" when i traded Vanguardstockindex for vanguardBondIndex. All in Roth
by Alto Astral
Thu Mar 23, 2017 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: dollar cost averaging
Replies: 11
Views: 876

Re: dollar cost averaging

Alredy put 10k last week, 5k today. DCA $500/week. $20k more to go. Can't time anything; now's as good a time as any
by Alto Astral
Wed Mar 22, 2017 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

To continue on these numbers, if there were no crash, the 80/20 AA will be ahead of the 70/30 AA by around $28K. So we got an upside of $28K and a downside of -$36K at the 5 year mark Alto Astral, 1) And, it won't matter a bit. You need a number between 1 million to 1.5 million at the 15 years mark...
by Alto Astral
Wed Mar 22, 2017 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2538

Re: Long term unemployment planning

Also, while you may not find an ideal job replacement in 12 months, you could always do temporary work or something to at least have some income coming in. Okay, that's something to chew on. Maybe some freelancing types or dome consulting. Okay, I had not considered this route. Just throwing this o...
by Alto Astral
Tue Mar 21, 2017 11:09 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Advice
Replies: 20
Views: 1079

Re: 401K Advice

What kinds of amounts are we talking? If just starting out, pick "Vanguard Institutional Index Instl". That one tracks s&p 500 . Bet it has the lowest ER. Once you numbers hit $50k or so, add in the small/mid cap to simulat total market indez Traditional 401k - $30k Roth IRA - $30k Ot...
by Alto Astral
Tue Mar 21, 2017 10:36 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Advice
Replies: 20
Views: 1079

Re: 401K Advice

What kinds of amounts are we talking? If just starting out, pick "Vanguard Institutional Index Instl". That one tracks s&p 500 . Bet it has the lowest ER. Once you numbers hit $50k or so, add in the small/mid cap to simulat total market indez
by Alto Astral
Tue Mar 21, 2017 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: How did graduating out of daycare impact your finances?
Replies: 65
Views: 4877

Re: How did graduating out of daycare impact your finances?

I have a newborn and a theee year old. I am looking at at least 2 years with double tuition. Then it will just be the younger one. Our local oublic school has extended hours but i do not know the fees yet. I've heard summer cam is expensive. So not expecting to save much
by Alto Astral
Tue Mar 21, 2017 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: What building year I should seek when shopping for a house?
Replies: 32
Views: 2098

Re: What building year I should seek when shopping for a house?

Skip the age filter altogether in redfin etc. I live in a 60s home. Its fine, no issues. Took us a couple of years to find the right one though. Went through a lot of discussions. So you may want to start looking early if this your first home. That why you can fine tune your search. Also, if have a ...
by Alto Astral
Tue Mar 21, 2017 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

I guess one needs to go through one of those to find "maximum tolerable loss". But I like you putting it in the context of years of take home pay. That helps coming up with a percentage. Alto Astral, There is a more straightforward way to look at this: number of years of annual savings. I...
by Alto Astral
Tue Mar 21, 2017 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2538

Re: Long term unemployment planning

Basically I'm facing the same issue - 57.5 yo, laid off from tech industry, sending resume and getting no reply. In my case I need 3 years to pay off house, 7 years to get Medicaid. So, will do any job that allow me not to touch investments (taxable and not taxable) for the next 7 years and hope th...
by Alto Astral
Tue Mar 21, 2017 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

I am not sure if the discrimination is conscious. We just see disproportionate number of resumes from folks in their 20s. They have amazing side projects (done nights+weekends) that I personally can't keep up with in my kid-induced, sleep-deprived state. Add to that their willingness to work in sta...
by Alto Astral
Tue Mar 21, 2017 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

age discrimination is rampant. So, is your model relevant to OP's real life situation? Well he's 37 so do we know what is relevant for the future, we're all talking in the hypothetical, are we not? I'd be interested to see the numbers of unemployed in that field and age... since we're suggesting 50...
by Alto Astral
Tue Mar 21, 2017 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

I wonder how the OP feels today? First 1% drop in a while. Who knows if it's going to come back or finally peak? Is the OP ready to reduce his bond position 10% with tomorrow's market sight unseen, and potential market uncertainty? If not, then is a more aggressive posture of 80/20 the right asset ...
by Alto Astral
Tue Mar 21, 2017 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2538

Re: Long term unemployment planning

In the case of unemployment, the pool of money available to you are as follows: 1) Emergency fund 2) Do not re-invest your taxable dividend and distribution. 3) Taxable account 4) Roth IRA contribution. KlangFool This is me as well, with 401k being last. For the taxable account, I hold tax exempt m...
by Alto Astral
Tue Mar 21, 2017 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2538

Re: Long term unemployment planning

People over there have less stress than we do, generally lead happier lives (see the latest happiness index report) I'm happy to be living in a country that is within the top 9% of all countries in happiness. 14th out of 155 :beer At least we are happier than the Irish. I thought they were a happy ...
by Alto Astral
Tue Mar 21, 2017 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2538

Re: Long term unemployment planning

OP, Based on the numbers you provide, I think you could hold out almost indefinitely in an unemployed state. I did a double-take on that. Unemployment in Illinois will pay out $613 for you and child weekly (and possibly an additional $419 for your working spouse...not sure about total family benefi...
by Alto Astral
Tue Mar 21, 2017 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2538

Re: Long term unemployment planning

For years I did the usual dance around paying off the mortgage. Then I just did it. Don't regret it for a second. Never did. Then again, I live below my means, so my residence was and is a pretty small part of my overall net worth. Will keep it that to the end. Did you pay it off at once when you c...
by Alto Astral
Tue Mar 21, 2017 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2538

Re: Long term unemployment planning

This doesn't answer your question but you have $40k in cash under investments. Why isn't this invested? You mentioned reallocation but you can reallocate with he $2k/month you are contributing. That's what I do. If everything is balanced the money goes in according to my AA. If my bonds for example...
by Alto Astral
Tue Mar 21, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

I guess one needs to go through one of those to find "maximum tolerable loss". But I like you putting it in the context of years of take home pay. That helps coming up with a percentage. Alto Astral, There is a more straightforward way to look at this: number of years of annual savings. I...
by Alto Astral
Tue Mar 21, 2017 11:28 am
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

A couple of points. 1. You could change your allocation every six months. As long as it is headed in the same direction and proceeding according to a plan, it would not be market timing. You could change your allocation every five years, but if you were doing it in response to market conditions it ...
by Alto Astral
Tue Mar 21, 2017 11:10 am
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

What if its something in-between? Partial employment? Will an appropriate AA help smooth out less than ideal savings? Also should I re-evaluate my 12-month-expense EF? Alto Astral, It won't matter either. As a homework assignment, please tell us the average return rate of 70/30 versus 80/20. KlangF...
by Alto Astral
Mon Mar 20, 2017 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

When thinking about desired AA during accumulation phase, I'm wondering if the ratio of new contributions (per year) vs. the total portfolio value should be considered? In my current thinking, if new contributions per year represent a large enough portion of the total portfolio, I would think that ...
by Alto Astral
Mon Mar 20, 2017 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

You never know your desired asset allocation until you go through a bear market. I have been through two 50% down bear markets since 2000 and found that 70% stocks and 30% barely worked for me. Now I am age 57, and I have 67% stocks and 33% bonds and cash. The emotional pain of loss, even if it is ...
by Alto Astral
Mon Mar 20, 2017 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

aristotelian wrote:This is a debate that can go on forever, because there is no answer, just your personal judgment call.

Arrghhh :)
by Alto Astral
Mon Mar 20, 2017 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

Before 2008, I had no problems since I did not have much and retirement seemed far away. Hitting 50 and going through 2008 opened my eyes. Including EF, I am at 50/50. Without it I am at 60/40. Retirement is 3 to 5 years away. What was your AA when you were 40 and 50? What would you have changed gi...
by Alto Astral
Mon Mar 20, 2017 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

I think you could argue that 70/30 was fairly conservative for a 30 year old, but as you get older and have more financial responsibilities you should NOT be moving to a LESS conservative allocation. Reading the start of your post when you mentioned your newborn, I thought you were going to ask if ...
by Alto Astral
Mon Mar 20, 2017 6:00 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

OP, The short answer to your question is you are doing market timing. You are changing your AA from 70/30 to 80/20 because we are in a bull market. There is nothing in your life circumstances that justify changing your AA to a higher risk. In a normal aka none market timing move, the AA should glid...
by Alto Astral
Mon Mar 20, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

OP, You are saving 50K to 60K per year. Let's assume that you are comfortable with 80/20 at 420K, what are you going to do with your AA when it is 720K aka 5 years from now? Switch back to 70/30 again? You need to pick an AA that you can stick with for a few years. So, just because you are comforta...
by Alto Astral
Mon Mar 20, 2017 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

The point here is many investors can and will experience these chemical changes. The changes can quickly convert an otherwise reasonable person into a panicked one that's wants nothing but to get away from what's triggering the reaction. For this reason, some experts suggest new investors, even you...
by Alto Astral
Mon Mar 20, 2017 5:24 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

Since then I got married and got two kids. The latest newborn got me thinking about my AA so I hope/believe this is not market timing. It is not market timing when you realize your responsibilities are different from what they were in the past. Having a good honest look at your risk tolerance is a ...
by Alto Astral
Mon Mar 20, 2017 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

You never know your desired asset allocation until you go through a bear market. I have been through two 50% down bear markets since 2000 and found that 70% stocks and 30% barely worked for me. Now I am age 57, and I have 67% stocks and 33% bonds and cash. The emotional pain of loss, even if it is ...
by Alto Astral
Mon Mar 20, 2017 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

What stands out to me is not the relatively small difference in total loss between an 80/20 or 70/30 portfolio, but rather how long it takes to recover afterwards - an 80/20 portfolio often requires 4-5 years to catch back up to a 70/30 during the recovery, and then another couple more to surpass i...
by Alto Astral
Mon Mar 20, 2017 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

Don't forget that a 50% market drop does not happen in isolation. You have no assurance that the market will stop at a 50% drop. In 2008, there were fears that the entire banking and insurance system was going to collapse. The stock market can go to zero. On the other hand, you are a ways from reti...
by Alto Astral
Mon Mar 20, 2017 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

If you stood pat in 2008-09, your asset allocation is good where it is. I was barely starting in 2008. Just 3 years into the markets I believe. I did'nt do anything with my investments but my colleagues were making jokes about their 401k becoming a 201k :) You have a mixed bag of dates for withdraw...
by Alto Astral
Mon Mar 20, 2017 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

When I went through this process last year, it turned out the biggest question was actually, "What asset allocation is within my wife's comfort level?" As a result, our AA is 70/30 with an emergency / large purchases fund that is probably double what I would have chosen. My wife is genera...
by Alto Astral
Mon Mar 20, 2017 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2538

Re: Long term unemployment planning

Alto Astral, << But If I am unemployed in 15 years, won't I have one less payment to make with the home paid off? >> 1) We had calculated this. If you are unemployed 15 years later, your investment is big enough that it can generate enough cash flow to pay the mortgage. Or, you can pay off the mort...
by Alto Astral
Mon Mar 20, 2017 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Long term unemployment planning
Replies: 61
Views: 2538

Re: Long term unemployment planning

I applaud you for thinking about this. Over the course of my life, these are the financial things I have never regretted: 1. living substantially below my means 2. paying off my mortgage, in full, as soon as I could These are the things I have regretted: 1. buying individual stocks 2. not returning...
by Alto Astral
Mon Mar 20, 2017 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

OP, The short answer to your question is you are doing market timing. You are changing your AA from 70/30 to 80/20 because we are in a bull market. There is nothing in your life circumstances that justify changing your AA to a higher risk. In a normal aka none market timing move, the AA should glid...
by Alto Astral
Mon Mar 20, 2017 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

If you don't know your risk tolerance, a bunch of anonymous people on the internet are not going to be able to decide for you. It is a personal decision and honestly there is not that much difference between 80/20 and 70/30. You could split the difference and go 75/25. That is my allocation at Age ...

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