Search found 9591 matches

by HomerJ
Fri Apr 21, 2017 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: The Value of Debt in Retirement
Replies: 16
Views: 1271

Re: The Value of Debt in Retirement

Is it better to have 5 million in assets with 1 million in debt or 3 million in assets and no debt? That's a silly question. Here's the problem with using debt. Debt never goes down. Assets sometimes do. Say I have $3 million in assets, and buy another $1 million in assets with $1 million in debt. ...
by HomerJ
Fri Apr 21, 2017 12:02 am
Forum: Personal Finance (Not Investing)
Topic: Calling for all the Moms: career and family.
Replies: 44
Views: 4580

Re: Calling for all the Moms: career and family.

This is just my opinion so please don't take offense, and also I realize that every family is different. What works for one family might not work for another. I personally would never put a career above my child. He's my first priority and if that means I don't work at all or I only work part time,...
by HomerJ
Thu Apr 20, 2017 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Did I make a good decision to retire July 2017 instead of July 2018?
Replies: 56
Views: 4747

Re: Did I make a good decision to retire July 2017 instead of July 2018?

This year income is 91k. I am living off my salary and heloc this year. What are your actual expenses? You may have a salary of 91k, but what is your take-home? Are you spending it all? Are you spending MORE than your take-home? (Since it sounds like you are withdrawing money from your heloc). You ...
by HomerJ
Tue Apr 18, 2017 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Why would anyone want to buy bond funds?
Replies: 92
Views: 8862

Re: Why would anyone want to buy bond funds?

What I'm saying is when you're taking 2.9% (while others have to take 4% due to smaller nest egg size) from your portfolio sequence of returns becomes a much smaller problem, and therefore you can stay more aggressive. Everyone argues my point buy saying: 1. If x,y,z all have $1M look at these retu...
by HomerJ
Tue Apr 18, 2017 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Pension option-Should I include child?
Replies: 33
Views: 2010

Re: Pension option-Should I include child?

Teague wrote:Using a pension calculator supplied by my employer, the slightly rounded numbers are, with me retiring in 2 years at 60 years old, and child currently 14 years old:


It's definitely a good deal since you had a child so late (at 44).
by HomerJ
Tue Apr 18, 2017 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Pension option-Should I include child?
Replies: 33
Views: 2010

Re: Pension option-Should I include child?

In my case, my monthly pension income would be $6500 with no contingent annuitant named. Should I name the 14 year old child as contingent annuitant, my monthly pension income would be $5500, and the child would receive $3000 per month for life after I die. I don't know how the above statement can ...
by HomerJ
Tue Apr 18, 2017 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Why would anyone want to buy bond funds?
Replies: 92
Views: 8862

Re: Why would anyone want to buy bond funds?

What I'm saying is when you're taking 2.9% (while others have to take 4% due to smaller nest egg size) from your portfolio sequence of returns becomes a much smaller problem, and therefore you can stay more aggressive. Everyone argues my point buy saying: 1. If x,y,z all have $1M look at these retu...
by HomerJ
Tue Apr 18, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache is doing an Ask Me Anything (AMA) on Reddit Today
Replies: 6
Views: 1742

Re: Mr. Money Mustache is doing an Ask Me Anything (AMA) on Reddit Today

Regarding his current spending level, he said: Yes, our current lifestyle is somewhere under $30k, and the original amount we retired on was more than enough to sustain this level of spending indefinitely. Plus, we've usually earned money from other sources most years, even before and since the blo...
by HomerJ
Mon Apr 17, 2017 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: How much money do you need to generate $50,000 per month?
Replies: 60
Views: 7416

Re: How much money do you need to generate $50,000 per month?

Forget Honolulu, let's use a 10M apt. building in Texas. It will generate at least 10% a year NET which is 1M ($83k per month). And OP needed 50k. Hmm... interesting... So I checked, and I can buy a 148-unit apartment building in San Antonio for $10 million. 88% occupancy rate it says.... so 130 un...
by HomerJ
Mon Apr 17, 2017 10:30 am
Forum: Investing - Help with Personal Investments
Topic: How much money do you need to generate $50,000 per month?
Replies: 60
Views: 7416

Re: How much money do you need to generate $50,000 per month?

People that have 12 million don't stick all of it in a 3/4 fund portfolio as presented on this forum. They would stick 8 mil. (for example) in such portfolio and take 4 million and do things like -buy a closed, run-down hotel, renovate, open it up, list on booking.com and generate profit of 30%-40%...
by HomerJ
Mon Apr 17, 2017 10:15 am
Forum: Investing - Help with Personal Investments
Topic: How much money do you need to generate $50,000 per month?
Replies: 60
Views: 7416

Re: How much money do you need to generate $50,000 per month?

My taxable account is generating about 2.4% annually in interest/dividends/capital gains, with a 75/30 portflio. EDIT: make that 75/25 So if your friend wants $50,000 a month with a portfolio similar to mine, he'd need $25 million in order to not touch principal (and not accounting for inflation). ...
by HomerJ
Thu Apr 13, 2017 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Extreme Frugality vs Living Life - Where do you draw the line?
Replies: 77
Views: 8291

Re: Extreme Frugality vs Living Life - Where do you draw the line?

We spend money on quality of life items - nice hdtvs and top tier cable packages, attending professional sporting events, extremely powerful air conditioning and Lazy-boy leather furniture. To offset those costs, we eliminate unnecessary costs such as avoiding international travel (too many hassles...
by HomerJ
Wed Apr 12, 2017 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Extreme Frugality vs Living Life - Where do you draw the line?
Replies: 77
Views: 8291

Re: Extreme Frugality vs Living Life - Where do you draw the line?

For us the realization set in during our 40s that we had a substantial nest egg saved up in our younger years and could spend a little more to enjoy life. That meant business class seats when we travel internationally for vacation about once each year and upgrades to the house but we still keep our...
by HomerJ
Wed Apr 12, 2017 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Can we afford private school tuition
Replies: 42
Views: 3179

Re: Can we afford private school tuition

recently started making a combined income of about $300K. You can afford it, but this is how people get in trouble. They get a big raise, and they immediately find a way to spend it. We would like to start taking some good vacations. You already spend $12,000 a year on vacations. Those aren't good ...
by HomerJ
Tue Apr 11, 2017 12:59 pm
Forum: Personal Consumer Issues
Topic: Honda Pilot good 1st vehicle for teen?
Replies: 46
Views: 2556

Re: Honda Pilot good 1st vehicle for teen?

Of course, I wonder why a 16-year old needs their own vehicle at all. Your kids never had jobs? Of course my kids had jobs. But they didn't need their own vehicle to get to their jobs. But I assume you can imagine a situation where other kids might not be able to walk to their jobs, or have their p...
by HomerJ
Tue Apr 11, 2017 12:56 pm
Forum: Personal Consumer Issues
Topic: Honda Pilot good 1st vehicle for teen?
Replies: 46
Views: 2556

Re: Honda Pilot good 1st vehicle for teen?

A Pilot is a rather large vehicle, but the situation is perfect for you.

I have done the same thing three times... One of the kids turn 16, I give them my old car, and get a new one for myself.
by HomerJ
Tue Apr 11, 2017 11:03 am
Forum: Personal Consumer Issues
Topic: Honda Pilot good 1st vehicle for teen?
Replies: 46
Views: 2556

Re: Honda Pilot good 1st vehicle for teen?

livesoft wrote:Of course, I wonder why a 16-year old needs their own vehicle at all.


Your kids never had jobs?
by HomerJ
Mon Apr 10, 2017 1:50 pm
Forum: Investing - Theory, News & General
Topic: Alts:new sources of risk/return improve portfolio efficiency
Replies: 119
Views: 7477

Re: Alts:new sources of risk/return improve portfolio efficiency

I'd assume you can estimate returns based on data about past reinsurance returns. No different than estimating returns for stocks over bonds. I think there are some cognitive biases in play in the resistance to this investment. Many Bogleheads figured out that the investment industry is full of cro...
by HomerJ
Mon Apr 10, 2017 1:26 pm
Forum: Investing - Theory, News & General
Topic: Alts:new sources of risk/return improve portfolio efficiency
Replies: 119
Views: 7477

Re: Alts:new sources of risk/return improve portfolio efficiency

I guess it finally happened, the forum ran off one of our best contributors and we will be much poorer for it. There is a line here and it got crossed, that is when people are accused of being here for ulterior motives. It is okay to hold and express contrary views and to show a healthy skepticism ...
by HomerJ
Sun Apr 09, 2017 10:39 am
Forum: Investing - Theory, News & General
Topic: Alts:new sources of risk/return improve portfolio efficiency
Replies: 119
Views: 7477

Re: Alts:new sources of risk/return improve portfolio efficiency

I would be concerned that reinsurance will be exposed to greater and more correlated risks due to the increase in extreme weather events that will accompany climate change. Fires, droughts, floods, hurricanes, and tornados are predicted to be more frequent and more severe. Political instability is ...
by HomerJ
Sun Apr 09, 2017 10:00 am
Forum: Investing - Theory, News & General
Topic: Alts:new sources of risk/return improve portfolio efficiency
Replies: 119
Views: 7477

Re: Alts:new sources of risk/return improve portfolio efficiency

Personally I don't know enough about re-insurance to develop an intelligent opinion. Larry makes a convincing case for it. On the other hand, Warren Buffett, who has invested in this area for quite some time, feels that the re-insurance sector's best days are behind it, that the space is now gettin...
by HomerJ
Sun Apr 09, 2017 9:55 am
Forum: Investing - Theory, News & General
Topic: Alts:new sources of risk/return improve portfolio efficiency
Replies: 119
Views: 7477

Re: Alts:new sources of risk/return improve portfolio efficiency

You don't understand this fund and how it works. Heh. I can't think of an argument that would turn me off faster. This product is about as clear and transparent as any and easily understood. You are just taking the other side of the trade that no one likes (buying insurance and paying premiums) and...
by HomerJ
Sun Apr 09, 2017 12:48 am
Forum: Personal Consumer Issues
Topic: Tesla S
Replies: 950
Views: 154891

Re: Tesla S

Tesla is now worth more than Ford.

Even though Tesla sold like 76,000 cars last year, and Ford sold 2.6 million.

You can love the car, but I would be really scared of the stock. There's an insane amount of growth already priced into the stock.
by HomerJ
Sun Apr 09, 2017 12:42 am
Forum: Personal Finance (Not Investing)
Topic: High Income earners, whats your Tax Strategy?
Replies: 113
Views: 10109

Re: High Income earners, whats your Tax Strategy?

My tax strategy basically boils down to "suck it up buttercup, and be grateful that you have a high salary and a relatively low tax burden as compared to almost all other rich countries". :) Probably not what you were looking for. This is mine too... I just pay my taxes... After tax-money...
by HomerJ
Sat Apr 08, 2017 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Career advice in IT
Replies: 99
Views: 6538

Re: Career advice in IT

In your 20s with decent experience? You are at prime hiring age. Go for the gold and find a gov't job. There are even federal civilian jobs in IT in the agencies where there is no hiring freeze. Gov't jobs are like winning the lottery. You can look in any state, so even look all over for state jobs...
by HomerJ
Fri Apr 07, 2017 1:12 pm
Forum: Investing - Theory, News & General
Topic: Social Security for Millennials
Replies: 144
Views: 13224

Re: Social Security for Millennials

Say that Social Security replaces 40% of pre-retirement income for the typical family. https://www.fool.com/investing/general/2016/02/28/how-much-of-my-income-will-social-security-replace.aspx Discounting this to 79% of the benefit, we are left with 31.6% of pre-retirement income. Another common ru...
by HomerJ
Thu Apr 06, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Career advice in IT
Replies: 99
Views: 6538

Re: Career advice in IT

Enterprise application also are cheaper in the cloud, but require engagement with cloud providers as the are not generally suitable for public cloud. Engagement with cloud providers is expensive. There is a study out there that shows that for larger companies with efficient VM-to-engineer ratios, i...
by HomerJ
Thu Apr 06, 2017 1:39 am
Forum: Personal Finance (Not Investing)
Topic: Career advice in IT
Replies: 99
Views: 6538

Re: Career advice in IT

the industry is moving wholesale away from managing compute infrastructure locally to just putting it all into AWS & Azure. Costs are still way to high for putting it all in the cloud for medium-to-large companies. But costs are dropping. We determined it was 4x as expensive to host everything ...
by HomerJ
Wed Apr 05, 2017 11:17 pm
Forum: Personal Finance (Not Investing)
Topic: Manufactured Spending - is it illegal, or otherwise "bad?"
Replies: 71
Views: 5424

Re: Manufactured Spending - is it illegal, or otherwise "bad?"

The Capital One Quicksilver card pays a $100 bonus for $500 of purchases in the first three months. This is great, but I can't think of something to buy that wouldn't be a waste of money You don't spend $500 in 3 months on anything legitimate? Why not just use it to buy groceries and go out to eat ...
by HomerJ
Wed Apr 05, 2017 11:10 pm
Forum: Personal Consumer Issues
Topic: Buying expensive car, how to keep payments low?
Replies: 149
Views: 8305

Re: Buying expensive car, how to keep payments low?

This is the first time I've heard someone saying to buy a vacation home in cash. Is this a common sentiment here? Well, I would tell someone they shouldn't get a mortgage on a vacation home until the primary home at least is paid off. One should definitely not go into debt to buy a boat, a luxury c...
by HomerJ
Wed Apr 05, 2017 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Career advice in IT
Replies: 99
Views: 6538

Re: Career advice in IT

the industry is moving wholesale away from managing compute infrastructure locally to just putting it all into AWS & Azure. Costs are still way to high for putting it all in the cloud for medium-to-large companies. But costs are dropping. We determined it was 4x as expensive to host everything ...
by HomerJ
Wed Apr 05, 2017 1:36 pm
Forum: Personal Consumer Issues
Topic: Buying expensive car, how to keep payments low?
Replies: 149
Views: 8305

Re: Buying expensive car, how to keep payments low?

JupiterJones wrote:Basically, when it comes to "toys" like fancy cars, grand pianos, vacation homes, ski boats, etc., the rule is that you should either pay for it out-of-pocket, or go without. Ignore this rule at great peril. :beer


Excellent rule. It should be in the wiki.
by HomerJ
Wed Apr 05, 2017 1:34 pm
Forum: Personal Consumer Issues
Topic: Buying expensive car, how to keep payments low?
Replies: 149
Views: 8305

Re: Buying expensive car, how to keep payments low?

Yes I don have $70,000 but I would rather keep it liquid instead of putting that into a depreciating asset. :confused Then you shouldn't buy it. When you buy a 70K car you are putting 70K into a depreciating asset whether you finance it or not. This. OP, you are not thinking this through correctly....
by HomerJ
Wed Apr 05, 2017 10:25 am
Forum: Investing - Theory, News & General
Topic: Early retirees - how did you inform your loved ones and friends?
Replies: 54
Views: 5569

Re: Early retirees - how did you inform your loved ones and friends?

simmias wrote:
Cyclesafe wrote:with no offers (just a come-on from the "ladies" on 7th avenue)

I hope you took some comfort there.


Heh, I KNEW that phrase sounded familiar! But I couldn't place it until you added your part.. :)
by HomerJ
Tue Apr 04, 2017 3:22 pm
Forum: Personal Consumer Issues
Topic: Cost of Booze on a Cruise
Replies: 68
Views: 6396

Re: Cost of Booze on a Cruise

The drink packages are very expensive. Usually, we go without, and I'll buy a "bucket of beer" (5 bottles in a bucket of ice) most afternoons, usually for $25 or so. Pretty expensive, but cheaper than the $80 a day or so they want for their drink packages. If you can get the drink package ...
by HomerJ
Tue Apr 04, 2017 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Did you and your spouse have different opinions on retirement income need?
Replies: 31
Views: 2416

Re: Did you and your spouse have different opinions on retirement income need?

My other renting concern is that unless you are in an area where you already have friends, how hard is it to develop a social life for a few months? This is a very good point. We'd like to retire to a place that has a community, where it's easy to meet people, with lots of different activities. So ...
by HomerJ
Mon Apr 03, 2017 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Did you and your spouse have different opinions on retirement income need?
Replies: 31
Views: 2416

Re: Did you and your spouse have different opinions on retirement income need?

This is something my husband and I are debating -- owning a warm weather winter home plus a second rest-of-year home versus owning one northern home and renting in the winter. Could you elaborate on what kind of rental you found in the $3K-$4K range? Just searching the web my wife has found some go...
by HomerJ
Mon Apr 03, 2017 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Did you and your spouse have different opinions on retirement income need?
Replies: 31
Views: 2416

Re: Did you and your spouse have different opinions on retirement income need?

I'm perfectly willing to say let's have a single paid-off residence as our only home in retirement, in a rural area. But my wife points out, she (we?) would go crazy year round, and likes the city, so we should keep our city apartment and use that in the winter. Potentially renting is an issue. Heh...
by HomerJ
Mon Apr 03, 2017 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Did you and your spouse have different opinions on retirement income need?
Replies: 31
Views: 2416

Re: Did you and your spouse have different opinions on retirement income need?

I could retire today, if we sold our primary house, retired to our lake condo, and traveled only once or twice a year. But the wife is not interested in spending winters in our small condo (and really, I see her point), and she wants to travel a more than 1-2 times a year, so we are both still worki...
by HomerJ
Mon Apr 03, 2017 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: IS 200k household income "middle income" these days? Has that threshold increased?
Replies: 42
Views: 2677

Re: IS 200k household income "middle income" these days? Has that threshold increased?

what is 200-250k for a married couple these days? It feels like this is a middle class wage nowadays. It really isn't much. When the Revolution comes, and most of us top 5% are guillotined, it will be comments like this that are used to justify it... :) Almost as good as "Let them eat cake&quo...
by HomerJ
Mon Apr 03, 2017 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: High Earners - What's Your Profession?
Replies: 594
Views: 80864

Re: High Earners - What's Your Profession?

High earnings are just one component of wealth building. The other components are controlled spending and the ability to manage one's investments. These three requirements make engineering and computer science optimal professions : 1. Good engineers and computer scientists make competitive salaries...
by HomerJ
Mon Apr 03, 2017 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate the Target Retirement Savings Number?
Replies: 31
Views: 2831

Re: How to calculate the Target Retirement Savings Number?

I based this on multiple comments, including this one from Kiplingers http://www.kiplinger.com/article/retirement/T047-C000-S002-what-is-your-retirement-number.html: - No matter what your age, you should have at least some idea of how much income you'll need in order to maintain your standard of li...
by HomerJ
Sat Apr 01, 2017 10:40 pm
Forum: Personal Consumer Issues
Topic: What career helped you become wealthy?
Replies: 75
Views: 8438

Re: What career helped you become wealthy?

To someone growing up on a farm with rubber boots, jeans, and an old tee shirt for daily wear, "wealth" and even, "career", takes on a different context than others. No matter the "commas" or "figures", each defines "wealth" at a deeply personal lev...
by HomerJ
Sat Apr 01, 2017 8:10 pm
Forum: Personal Consumer Issues
Topic: What career helped you become wealthy?
Replies: 75
Views: 8438

Re: What career helped you become wealthy?

Does anyone trade/invest for a living? You won't find many traders on the forum; it goes a tad against the BH philosophy. But many here invest for life. They may not actively trade their own money. Any traders (by profession) or quants or other financial industry people? Curious to know if there ar...
by HomerJ
Fri Mar 31, 2017 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate the Target Retirement Savings Number?
Replies: 31
Views: 2831

Re: How to calculate the Target Retirement Savings Number?

Hello, We are trying to figure out our target retirement savings number. We are both (Husband/Wife) 44 years old and wanted to figure out where we need to be in next 20 years to retire comfortably without sacrificing our standard of living. Upon research, we found many different approaches 1. Fidel...
by HomerJ
Fri Mar 31, 2017 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Saving 50% of salary; what does it really mean?
Replies: 142
Views: 10263

Re: Saving 50% of salary; what does it really mean?

I've never broken it down, but right now we live on my take-home pay only (after saving 10% into the 401k - 100% matched by employer). My wife makes about 70% of what I make (she used to make 150%, but she got very burned out in that job, and quit after we paid off the mortgage). We pretty much save...
by HomerJ
Fri Mar 31, 2017 11:56 am
Forum: Investing - Theory, News & General
Topic: anyone factor in future inheritance?
Replies: 78
Views: 4735

Re: anyone factor in future inheritance?

By the time most of us are able to really count on an inheritance, all our investing decisions, career and lifestyle decisions, and retirement horizon planning are behind us. I agree with this. Yes, people are having babies later and later these days.... But for most people, you're likely to hit yo...
by HomerJ
Fri Mar 31, 2017 11:50 am
Forum: Investing - Theory, News & General
Topic: anyone factor in future inheritance?
Replies: 78
Views: 4735

Re: anyone factor in future inheritance?

I don't worry about doing the opposite of what the person leaving the inheritance did. For example, if I get an inheritance because someone was a cheating mooching miser, I don't feel the need to be a cheating mooching miser Heh, it's all about phrasing to support one's narrative. Just as easy to s...
by HomerJ
Thu Mar 30, 2017 1:09 pm
Forum: Investing - Theory, News & General
Topic: Stay the course, always?
Replies: 55
Views: 4332

Re: Stay the course, always?

I think it can be rational to adjust your AA based on what the market is doing, as long as you're not increasing or decreasing your equity percentage. But moving funds from a country with higher valuations to another country with lower valuations doesn't seem too bad to me (taking trading fees and ...

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