Search found 1003 matches

by DVMResident
Wed Mar 22, 2017 5:48 pm
Forum: Investing - Theory, News & General
Topic: What % of your income have you converted to wealth?
Replies: 96
Views: 12422

Re: What % of your income have you converted to wealth?

Never thought of this metric. Whoa, NW/gross lifetime income = 84% (ignoring tax status, which ballparks around 20% pre-/30% ROTH/50% taxable). Pretty good. Mostly from living rent free and a RE investment played out nicely. Mid-30's, school/training till 3 years ago. Was over 100% at one point, but...
by DVMResident
Wed Mar 22, 2017 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a second home in Florida- mortgage or purchase
Replies: 15
Views: 1205

Re: Buying a second home in Florida- mortgage or purchase

A $160k loan (assuming 20% down) is a messily 3.6% of the $4.5m in assets. Taking a mortgage or paying is not going to change your fiscal health.
Personally, I would just do a direct purchase (even with LTCG, which isn't defined in the OP). Keep things simple.
by DVMResident
Mon Mar 20, 2017 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: Moving from Vanguard to Fidelity (probably)
Replies: 51
Views: 4459

Re: Moving from Vanguard to Fidelity (probably)

Moving checking from Wells Fargo to a Fidelity Cash Management account If I may jump on this thread, I'm looking to also switch from WF. I've had WF for ~15 years and mostly like the number of ATMs, though my use is dramatically falling with the digital economy. Anyone care to share their experienc...
by DVMResident
Mon Mar 20, 2017 12:30 am
Forum: Investing - Help with Personal Investments
Topic: Rental Property
Replies: 8
Views: 743

Re: Rental Property

My go-to fiscal resource for RE is " What Every Real Estate Investor Needs to Know About Cash Flow And 36 Other Key Financial Measures " Frank Gallinelli. This book will walk your through the math of rentals and empower you to evaluate each property. My go-to legal and tax resources is NOL...
by DVMResident
Sat Mar 11, 2017 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Nearly paid off house; Should I sell, go back to renting and invest the equity?
Replies: 14
Views: 1229

Re: Nearly paid off house; Should I sell, go back to renting and invest the equity?

I am locked into my job for three years and may move again after that. I see no point in triggering an early move with such a short time horizon. Moving is expensive (and a pain). OTOH, this makes a better case for an accelerated pay down of the mortgage. Low interest (3-4%?) on a 3 year time horiz...
by DVMResident
Wed Mar 08, 2017 6:59 pm
Forum: Investing - Theory, News & General
Topic: Every 40-yr returns curve of the S&P500 since 1870 graphed
Replies: 40
Views: 3947

Re: Every 40-yr returns curve of the S&P500 since 1870 graphed

The striking bit for me is the variability after 40 years. This really makes the case to me why you shouldn't go 100% stock. You may get lucky or may get hosed-even after waiting 40 years! I hope for a smoother ride with a 80/20 split and DCA. It would be interesting to see this data with 80/20, 60/...
by DVMResident
Wed Mar 08, 2017 11:39 am
Forum: Forum Issues and Administration
Topic: How do YOU read Bogleheads?
Replies: 37
Views: 2999

Re: How do YOU read Bogleheads?

Chuck wrote:I use the RSS feed. It's probably just me.


Same here. Quicker and miss less.
by DVMResident
Mon Mar 06, 2017 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Poll: For those 20 yrs away from retirement, what is your current asset allocation and future changes?
Replies: 33
Views: 1818

Re: Poll: For those 20 yrs away from retirement, what is your current asset allocation and future changes?

Accumulation phase: 80/20. I have floor ("needs") FI number and ceiling ("wants") FI number. Once hit floor FI number: move to 65/35 One hit ceiling FI number: 50/50 Simple. Here's visual summary the cost of safety: https://dougcronk.files.wordpress.com/2010/09/efficient-frontier...
by DVMResident
Thu Mar 02, 2017 1:17 pm
Forum: Personal Consumer Issues
Topic: Laptop for blogging
Replies: 7
Views: 467

Re: Laptop for blogging

I would consider the new 15" 4k Lenovo Yoga 720. I like writing on Yogas because I fold it and set on surface length wise, giving you a longer page. Then blue tooth mouse and keyboard. This new version also has a GPU option and a stylus input if that's of any value (depends on your blog subject...
by DVMResident
Mon Feb 27, 2017 12:40 am
Forum: Personal Finance (Not Investing)
Topic: Protecting Aging Parrents - Advice Please
Replies: 25
Views: 2571

Re: Protecting Aging Parrents - Advice Please

Many people with dementia have a gradual decline, and use what I think of as "muscle memory" to continue functioning in their daily lives I agree. I think we're in this phase. The baffling part is he keep working part time and is relatively young. On the other hand, speaks in increasingly...
by DVMResident
Mon Feb 27, 2017 12:14 am
Forum: Personal Consumer Issues
Topic: Do Boglehead DIY or Pay a Professional?
Replies: 95
Views: 6964

Re: Do Boglehead DIY or Pay a Professional?

I do varies tasks for learning and understanding what a good results looks like. Then, if I like the task, I keep it up. If I dislike it, I weigh the cost against my time and decide the value added of outsourcing the task. I hate cutting grass and like doing taxes. I do the taxes. I pay someone to c...
by DVMResident
Sun Feb 26, 2017 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate vs debt payments
Replies: 34
Views: 2205

Re: Real estate vs debt payments

I would buy it. A $720k house ($520k purchase plus $200k addition) is a perfectly reasonable housing expenditure on $500k salary. Moreover, you have an excellent saving rate already: paid off $220k student loans and built up $100k 401(k) in 4 years on a $250k salary. Besides, you can always sell it ...
by DVMResident
Sat Feb 25, 2017 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Protecting Aging Parrents - Advice Please
Replies: 25
Views: 2571

Re: Protecting Aging Parrents - Advice Please

@HueyLD: “The bigger challenge will be to get him to acknowledge it. The OP may have to go to the court and that won't be pretty or easy.” Agreed. I’m trying to figure out what to do and then will worry about how to achieve buy-in from him and the other child. Usually, I’m pretty uncomfortable getti...
by DVMResident
Sat Feb 25, 2017 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Protecting Aging Parrents - Advice Please
Replies: 25
Views: 2571

Protecting Aging Parrents - Advice Please

My FIL is almost 70 and unfortunately is starting to have cognitive decline. He's still independent and semi-retired working a few days a week for the former employer. My FIL is fortune enough to mass a decent nest egg and has a hefty pension. It's getting to the point where he'll sign anything put ...
by DVMResident
Tue Feb 21, 2017 11:57 pm
Forum: Personal Consumer Issues
Topic: Desktop Computer - Still relevant? Good investment?
Replies: 76
Views: 6252

Re: Desktop Computer - Still relevant? Good investment?

These days the functional and price difference between laptops and desktops is small and shrinking. The desktop's major advantage is not price anymore, but rather heat control, which is important for protracted heavy load actives like games and graphic renders. You can always buy a laptop, hook up ...
by DVMResident
Tue Feb 21, 2017 2:50 pm
Forum: Personal Consumer Issues
Topic: Desktop Computer - Still relevant? Good investment?
Replies: 76
Views: 6252

Re: Desktop Computer - Still relevant? Good investment?

These days the functional and price difference between laptops and desktops is small and shrinking. The desktop's major advantage is not price anymore, but rather heat control, which is important for protracted heavy load actives like games and graphic renders. You can always buy a laptop, hook up p...
by DVMResident
Mon Feb 20, 2017 6:33 pm
Forum: Investing - Theory, News & General
Topic: economics of landlording
Replies: 46
Views: 4218

Re: economics of landlording

...I'm not attached to this property emotionally, in any way. Just want to keep it if it is a good complement to a traditional 60/40 indexed portfolio, and want to dump it if it's a drag. If it's somewhere in the middle - which has been my sense - I will probably keep it for the diversification ben...
by DVMResident
Mon Feb 20, 2017 10:42 am
Forum: Investing - Theory, News & General
Topic: economics of landlording
Replies: 46
Views: 4218

Re: economics of landlording

Not quite enough information provided to give an exact recommendation. Some considerations: Negatives: *$1.5k/mo on a $250k property is not very attractive (middle-low for SFH) *Most RE markets are richly valued and might be good time to get out *Requiring a manager Positives: *On-cash returns are b...
by DVMResident
Sun Feb 19, 2017 11:09 am
Forum: Investing - Help with Personal Investments
Topic: If you were going to drop down to 15% bracket for one year...
Replies: 7
Views: 984

Re: If you were going to drop down to 15% bracket for one year...

ROTH conversion is better assuming you don't need the assets for 5+ years.
by DVMResident
Mon Feb 13, 2017 1:13 am
Forum: Personal Finance (Not Investing)
Topic: Any ideas of for a 2nd job / career?
Replies: 15
Views: 1980

Re: Any ideas of for a 2nd job / career?

The headwind you'll face is all that extra income will be taxed at the margin. A second job earning $2-5K/month (net? gross?) would be very inefficient. Have you considered land lording/rentals? Not for everyone, but it's (1) tax efficient (offset income by mortgage interests and depreciation) and (...
by DVMResident
Sat Feb 11, 2017 7:42 pm
Forum: Investing - Theory, News & General
Topic: 'Won the game', but what factors could potentially derail it?
Replies: 57
Views: 4512

Re: 'Won the game', but what factors could potentially derail it?

Divorce is mentioned a couple times. The 30x annual income-not annual expenses-defined in the OP is a lot money. A crazy amount of money. Even if a divorce takes half, that's still 15x annual income. This hypothetical person is still okay to retire if the expenses (less one spouse):annual income rat...
by DVMResident
Sat Feb 11, 2017 12:29 am
Forum: Personal Finance (Not Investing)
Topic: Tax on rental income.
Replies: 10
Views: 641

Re: Tax on rental income.

Didn't see it mentioned above: rental income is generally treated as unearned income. Unearned income is treated a little different than earned income, e.g. wages reported on W-2s. Unearned income is not subject to payroll taxes, but is subject to ACA's Medicare 3.8% tax over certain AGI thresholds ...
by DVMResident
Thu Feb 09, 2017 1:39 pm
Forum: Personal Consumer Issues
Topic: Any books really change your outlook on life?
Replies: 270
Views: 41324

Re: Any books really change your outlook on life?

The Selfish Gene, especially the sections on altruism
Strength Finders
Taxing Ourselves, a non-political discussion of various tax structures and consequences of each system
by DVMResident
Wed Feb 08, 2017 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: What expected % return should a longterm investor use?
Replies: 73
Views: 9271

Re: What expected % return should a longterm investor use?

The more usual approach is to assume different probabilities for different possible answers and plot a range of chances for different outcomes. While this does not actually remove the uncertainty in guessing the future, it at least allows one to appreciate that said uncertainty exists and to attemp...
by DVMResident
Tue Feb 07, 2017 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Sell rental property?
Replies: 11
Views: 1292

Re: Sell rental property?

@DVMResident That's the thing I'm concerned about... is that all the gains go into the mortgage. But I can see that I'm definitely gaining on this house with little input on my part. As for the PITI, this was a VA loan without a down payment and does not require PMI. The monthly breakdown is princi...
by DVMResident
Mon Feb 06, 2017 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Sell rental property?
Replies: 11
Views: 1292

Re: Sell rental property?

The rent:market price is middle-high for a SFH (0.7%/month) and the returns:invested cash are excellent because the heavy, super cheap leverage. User 'petulant' already did the rough estimate of returns on cash for you. However, all the gains are going to the mortgage, keeping them illiquid. This sh...
by DVMResident
Thu Feb 02, 2017 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: At what point (if ever) it is OK to pause retirement contribution to buy a house?
Replies: 29
Views: 2115

Re: At what point (if ever) it is OK to pause retirement contribution to buy a house?

On a side note, if you have access to pre-tax deduction like a tIRA or 401(k), it's better at your income. How it is better if i am in 15% tax bracket? please explain. There's an idea floating around that having some money in a pretax is good to fill out the lowest tax brackets in retirement becaus...
by DVMResident
Thu Feb 02, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: At what point (if ever) it is OK to pause retirement contribution to buy a house?
Replies: 29
Views: 2115

Re: At what point (if ever) it is OK to pause retirement contribution to buy a house?

If you will be living in the US when retired, I think it is a good idea to buy a house AND have it paid off by the time you retire. That will lower your retirement expenses as rent will surely keep growing. If your wife wants to buy a house too, is she willing to work full time and put all her inco...
by DVMResident
Mon Jan 30, 2017 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy for Purchasing a House
Replies: 21
Views: 2431

Re: Strategy for Purchasing a House

(Is there any other strategy?) +1 vote in the Boglehead echo chamber to not buy. I think it's a stretch in the face of numerous unknown like if your spouse will continue to work. But if you're going to do this anyways...here's an idea that potentially lowers costs in the short-term and provides goo...
by DVMResident
Sat Jan 28, 2017 11:51 pm
Forum: Personal Finance (Not Investing)
Topic: Determining max amount to spend on a house?
Replies: 27
Views: 3356

Re: Determining max amount to spend on a house?

Somebody please explain to me the attitude favoring taking a mortgage when it's not entirely necessary. Is this not the same as investing on margin? IB lets you borrow at 2% declining to < 1% on larger amounts. Can one really get a mortgage that charges < 1% after tax deductions? Advantage: liquidi...
by DVMResident
Fri Jan 27, 2017 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Need help with 3 rental properties I'm looking to purchase
Replies: 35
Views: 3120

Re: Need help with 3 rental properties I'm looking to purchase

IMO the reason to use an LLC is to attempt to shield yourself from liability for actions that take place in the LLC. I don't know how effective it is. Normally it would not have any tax implications. Tax comment is true in the majority of circumstances. There are a couple odd ball cases where there...
by DVMResident
Fri Jan 27, 2017 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Issue - Advice needed
Replies: 17
Views: 1458

Re: Rental Issue - Advice needed

Flushing rocks down the toilet is not normal wear and tear. Present the bill to the tenants. If they don't pay, keep the security deposit and go to small claims court for the balance. +1 Get a signed affidavit from plumber describing the cause plus images from the camera. Document, document, docume...
by DVMResident
Tue Jan 24, 2017 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Possbile career moves without college degree
Replies: 39
Views: 3424

Re: Possbile career moves without college degree

Technical trade school in fields such as metal shop, plumbing, and electrician can be both fun and lucrative with an option to go solo if he has good interpersonal skills. The schooling is relatively short and some trades even have unions. And you get to repair your own house for cheap. Also, demogr...
by DVMResident
Sun Jan 22, 2017 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Down Mortgage vs. Investing
Replies: 14
Views: 1384

Re: Paying Down Mortgage vs. Investing

I prefer investing over paying down mortgages for the simple reason is investments are liquid. Paid off mortgages are not (or, at least, not easily or cheaply). Even if you break even on the investment against the mortgage, liquid investments are more flexible, acting as self-insurance against every...
by DVMResident
Fri Jan 13, 2017 2:26 pm
Forum: Personal Consumer Issues
Topic: How much do you typically spend in a restaurant?
Replies: 171
Views: 10013

Re: How much do you typically spend in a restaurant?

$25~40 total x 2~3/week (including weekends). Family of 2 adults, young 1 kid. No drinks, appetizers, or dessert. Just food and almost always non-american. We walk and really enjoy the outdoors and good weather. Also, nice not having to cleaning.
by DVMResident
Fri Jan 13, 2017 2:19 pm
Forum: Investing - Theory, News & General
Topic: "Millennials may need to double how much they save for retirement"
Replies: 173
Views: 16988

Re: "Millennials may need to double how much they save for retirement"

The part missing from the analysis is the relative money supply of your cohorts. The value of retirement accounts, the basis of the article's assumptions (1), is meaningless in the absence of costs. It's purchasing power that matters. Prices are set by the relative purchasing power of those also att...
by DVMResident
Fri Dec 23, 2016 1:19 am
Forum: Investing - Help with Personal Investments
Topic: How to handle 401k contributions if retiring in 40's
Replies: 3
Views: 590

Re: How to handle 401k contributions if retiring in 40's

Couple options:
1. Pay the -10% plenty
2. Start a 5-year conversion Roth Ladder (better after you leave CA's high taxes)
3. 72t

Here's an article on it: http://rootofgood.com/roth-ira-conversion-ladder-early-retirement/
by DVMResident
Tue Dec 20, 2016 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Interest Deduction
Replies: 23
Views: 2497

Re: Mortgage Interest Deduction

Go to http://www.google.com. Type in "Home office deduction IRS rules" and then click on whichever (pick more than one) of the links that google finds for you on the subject. Or, hit your local bookstore and buy a tax guide. Or, go to the IRS website and search for home office deductions....
by DVMResident
Mon Dec 19, 2016 10:39 am
Forum: Investing - Theory, News & General
Topic: Concept of Bogleheads needing to "Save more"
Replies: 61
Views: 5172

Re: Concept of Bogleheads needing to "Save more"

I also want to point out that these SAFEMIN savings rates represent the rates that would have worked in the absolute worst of times (from the past) . From the article: "Using the SAFEMIN savings rate was always sufficient to finance desired retirement expenditures regardless of the actual weal...
by DVMResident
Mon Dec 19, 2016 10:37 am
Forum: Investing - Theory, News & General
Topic: Concept of Bogleheads needing to "Save more"
Replies: 61
Views: 5172

Re: Concept of Bogleheads needing to "Save more"

As others have said, the advice is "save enough." What's enough? Wade Pfau has put a lot research into this area and the answer is shockingly high: http://resource.fpanet.org/resource/981547A8-1D09-67A1-ACAC12B70A5C0D51/0511-Pfau-Table-1.jpg Additional reading (a bit dense): Safe Savings ...
by DVMResident
Sun Dec 18, 2016 10:51 pm
Forum: Investing - Theory, News & General
Topic: Concept of Bogleheads needing to "Save more"
Replies: 61
Views: 5172

Re: Concept of Bogleheads needing to "Save more"

As others have said, the advice is "save enough." What's enough? Wade Pfau has put a lot research into this area and the answer is shockingly high: http://resource.fpanet.org/resource/981547A8-1D09-67A1-ACAC12B70A5C0D51/0511-Pfau-Table-1.jpg Additional reading (a bit dense): Safe Savings R...
by DVMResident
Wed Dec 14, 2016 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: What happens to those who don't invest?
Replies: 70
Views: 4546

Re: What happens to those who don't invest?

Most people, in the US, store the bulk of their wealth in their house via the 'forced' savings of paying off a mortgage. Not as efficient as investing, but savings none the less. Moreover, a paid off mortgage plus SS is a decent standard of living. I'd even call it a high standard of living from a h...
by DVMResident
Mon Dec 12, 2016 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: What % of your net income do you save (not including 401k/IRA)
Replies: 59
Views: 4994

Re: What % of your net income do you save (not including 401k/IRA)

6-7% outside of 401(k) and IRAs. But that's not important. Saving goals and rates should be unrelated the contribution limits available in tax-advantaged accounts. Tax-advantaged accounts are just a means to an end. Their 'maximum' annual contribution limits are arbitrary. For some people, there is ...
by DVMResident
Tue Dec 06, 2016 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: $60k Towards Rental, or VTSAX?
Replies: 8
Views: 751

Re: $60k Towards Rental, or VTSAX?

Why would you want to sell your rental and give up on $1,700 a month in income? The OP's mortgage is ~$1.5k/month (plus HOA?). About $0.8k/month is equity build up, which is subject to taxes and realtor fees on sale plus the unfavorable tax treatment of unearned income at the OP's income. Fairly in...
by DVMResident
Mon Dec 05, 2016 3:18 pm
Forum: Personal Consumer Issues
Topic: Men's Fashion - Best Bang for Buck
Replies: 79
Views: 7549

Re: Men's Fashion - Best Bang for Buck

Also, hang dry. Driers really eat into the number of wears per item. I own 6 dress shirts and pants (~$650 wardrobe, excluding shoes and belt), cycling on a ~weekly basis. This. Fraying of cuffs on a shirt? I've literally never had that happen and I do not wear high-end clothing. I have a few stapl...
by DVMResident
Mon Dec 05, 2016 2:19 pm
Forum: Personal Consumer Issues
Topic: Men's Fashion - Best Bang for Buck
Replies: 79
Views: 7549

Re: Men's Fashion - Best Bang for Buck

Another Nordstrom's Rack customer here. Quality over price, especially for daily work clothes. Also, hang dry. Driers really eat into the number of wears per item. I own 6 dress shirts and pants (~$650 wardrobe, excluding shoes and belt), cycling on a ~weekly basis. 3 years in and just starting to f...
by DVMResident
Fri Dec 02, 2016 12:48 am
Forum: Investing - Help with Personal Investments
Topic: Is This Insane?
Replies: 28
Views: 3767

Re: Is This Insane?

It's call "Swedroe's Minimizing Fat Tails Portfolio", or something close to it.
There are a number of threads on a SCV/EM split, like this one: https://www.bogleheads.org/forum/viewtopic.php?t=109940
Happy reading.
by DVMResident
Wed Nov 30, 2016 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Turning Primary Residence Into a Rental
Replies: 16
Views: 1397

Re: Turning Primary Residence Into a Rental

Since you asked, my general opinion on rentals: they tend to work well (1) with leverage (i.e. a mortgage), (2) multiple units to diversify risks/smooth out cash-flow, and (3) when purchased for cheap. Rarely do primary residential rental's, especially on the higher price end like your's, returns j...
by DVMResident
Tue Nov 29, 2016 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Turning Primary Residence Into a Rental
Replies: 16
Views: 1397

Re: Turning Primary Residence Into a Rental

- 2BR/2BA Townhouse (in a HCOL city center) - purchase price: ~$650k (2012) - mortgage: ~$440k (remaining), 30 yr, 3.5% fixed - PITI (plus HOA fee): $3000/mo. - estimated rent: $3500 - $3750 /mo. I wouldn't. The ROI is marginal for a concentrated risk and your equity is based on a generally hot &qu...
by DVMResident
Mon Nov 28, 2016 12:14 am
Forum: Personal Consumer Issues
Topic: Why do reviewers love the Dell XPS 13 but users don't?
Replies: 67
Views: 6782

Re: Why do reviewers love the Dell XPS 13 but users don't?

I have a XPS 15 (not 13) that replaced my Yoga Pro 2, which my kid broke. Decided to go with a build more solid with a toddler in the house. I love it. Probably the best laptop I've had ever had. The good: screen is super (bright, good color, high res, good viewing angles) with a thin bezel, the foo...

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