Search found 8422 matches

by HomerJ
Thu May 26, 2016 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Why is social security paying so low?
Replies: 30
Views: 3135

Re: Why is social security paying so low?

misterno wrote:The result was $2,663 per month if I retire at 62 years old.


$32,000 a year is a ton of money... And it's inflation-adjusted... and for as long as you live.

You'd have to save $800,000 on your own to be able to safely pull out $32,000 a year for 30 years.
by HomerJ
Wed May 25, 2016 3:52 pm
Forum: Investing - Theory, News & General
Topic: Can I just let my money compound now?
Replies: 46
Views: 4073

Re: Can I just let my money compound now?

anything's possible, but I wouldn't bet on it. If you put it all in equities and get a fortuitous 7% real for the next 40 years, you'd have $1.5 million in purchasing power at age 65. That'd certainly be enough. And that is the historic return of the S&P, give or take. But stock valuations are ...
by HomerJ
Wed May 25, 2016 2:51 pm
Forum: Investing - Theory, News & General
Topic: Can I just let my money compound now?
Replies: 46
Views: 4073

Re: Can I just let my money compound now?

There are many arguments for the shift. Pick one. But the truth is 2.2% average right now. No, this is incorrect. 2.2% real is NOT the "average" right now. The average is much higher. 2.2% real is currently the worst-case scenario, and only for a 16-year period. If you use 30-year periods...
by HomerJ
Wed May 25, 2016 1:23 pm
Forum: Investing - Theory, News & General
Topic: Can I just let my money compound now?
Replies: 46
Views: 4073

Re: Can I just let my money compound now?

Not to threadjack, but am curious: What if it was an order of magnitude more than that? I'm 43. Should I keep working? Every simulator I run says we're good, and I don't believe any of them. Honestly, it is completely ridiculous how much money you have to have to be FI these days. $1 million at 43,...
by HomerJ
Wed May 25, 2016 1:12 pm
Forum: Investing - Theory, News & General
Topic: Can I just let my money compound now?
Replies: 46
Views: 4073

Re: Can I just let my money compound now?

Why assume a 5% return on the S and P. The reality is 2.222% S and P returns since 2000 including reinvested dividends and adjusted for inflation. https://dqydj.com/sp-500-return-calculator/ Why assume otherwise. This period of time is more relevant than other cherry picked periods. OPs 100k would ...
by HomerJ
Wed May 25, 2016 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for my daughter
Replies: 35
Views: 1650

Re: Advice for my daughter

I don't know what field her husband is in, but if he hopes to become a professor they should be prepared to move almost anywhere in the country in order for him to get a job. Does your daughter plan to buy a property in their current location, and then become a long-distance landlord? This is an ex...
by HomerJ
Wed May 25, 2016 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Rebuilding our house for $1.5M: Bad Idea Financially?
Replies: 87
Views: 7466

Re: Rebuilding our house for $1.5M: Bad Idea Financially?

How secure is the "excellent compensation"? Did he sell a company, and has a contract? Or could he lose his job next year? How easy will it be to find another $1 million/year job (or even $600k/year job) if that happens? When I was your age I did similar things and it all worked out very w...
by HomerJ
Wed May 25, 2016 10:00 am
Forum: Personal Consumer Issues
Topic: How much do you spend on trips/vacations?
Replies: 70
Views: 4142

Re: How much do you spend on trips/vacations?

MSchleicher wrote:Members give away timeshares for free


There is a reason they do that.

Those annual fees will keep going up, faster than inflation.
by HomerJ
Wed May 25, 2016 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Rebuilding our house for $1.5M: Bad Idea Financially?
Replies: 87
Views: 7466

Re: Rebuilding our house for $1.5M: Bad Idea Financially?

You make $1M / yr and want to build for $1.5M ? I saw go for it and don't look back. He's only going to make that much for 2 more years. He takes home $600k after taxes, I'm guessing, and spends $200k a year. So it's not a slam dunk to spend $1.5 million. He's set right now, with nearly $3 million ...
by HomerJ
Wed May 25, 2016 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Cost of renting Florida place for a month
Replies: 15
Views: 1455

Re: Cost of renting Florida place for a month

gasdoc wrote:Our 3 bedroom home, 2200 square feet, in The Villages rents for $4,500/month, generally as a three month rental January 1 - March 31.

gasdoc


Where do you go for those 3 months? :)

Also, how do you like The Villages? My wife is super-interested in moving there someday.
by HomerJ
Tue May 24, 2016 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Pride in no inheritance to kids?
Replies: 222
Views: 14486

Re: Pride in no inheritance to kids?

It seems as if some believe that your adult children should basically fend for themselves and live with what ever that means They're not really adults if they continue to require hand-outs from Mommy and Daddy. My ultimate goal is for my children to become self-sufficient adults. I believe that mak...
by HomerJ
Tue May 24, 2016 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Another whole life question
Replies: 20
Views: 911

Re: Another whole life question

In further review, it is an indexed universal life policy (500,000) started about a couple of years ago. So she's paid $1200 a year into the policy for 2-3 years ($2,400-$3,600), and her cash value is $5,600? And you are saying that if she surrenders her policy, the entire cash value disappears? I ...
by HomerJ
Tue May 24, 2016 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Another whole life question
Replies: 20
Views: 911

Re: Another whole life question

It is a 500k whole life with a $100/month premium with Riversource. It has a cash value of only about $5600 and if she were to surrender now, she would lose all of it due to surrender fees this early on. Better check that policy again. It actually sounds like a great deal. Usually $500k in whole li...
by HomerJ
Tue May 24, 2016 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Cost of renting Florida place for a month
Replies: 15
Views: 1455

Re: Cost of renting Florida place for a month

$3000-$4000 a month is about right for ocean view Florida in winter (prime time). My wife and I may move South permanently some point after we retire, but at first, we plan to spend April-December in our current location (Mid-West), but rent 3 months (Jan-March) in Florida. Our research shows that $...
by HomerJ
Tue May 24, 2016 12:26 pm
Forum: Personal Consumer Issues
Topic: How much do you spend on trips/vacations?
Replies: 70
Views: 4142

Re: How much do you spend on trips/vacations?

We have a budget of about $12,000 a year for trips... ($1000 a month set aside). One year, we did a two-week Mediterranean cruise where we visited Rome, Greece, Egypt, and Israel that cost us $10,000. Other years, we'll do 3-5 smaller trips that cost $2000-$3000 each. Our total monthly spending is a...
by HomerJ
Tue May 24, 2016 10:32 am
Forum: Personal Consumer Issues
Topic: Advice w/ 62YO Mom Moving In - Rent? Resentment? Plans?
Replies: 95
Views: 7729

Re: Advice w/ 62YO Mom Moving In - Rent? Resentment? Plans?

If your mother has worked her whole life, the idea of still having a job should definitely be discussed. Not only may the exta income/savings come in handy in a health emergency, but the social interaction with others would be good for her while you are at work. It can be depressing to be left at h...
by HomerJ
Mon May 23, 2016 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Reality check - how am I doing
Replies: 58
Views: 5934

Re: Reality check - how am I doing

However, my theory about vacations, travel, life experiences, etc. is that they actually have a "compounding" factor of their own. We have spent a relatively large amount (for us) traveling over the past few years. Those trips turn into experiences and relationships that continue to build...
by HomerJ
Mon May 23, 2016 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Reality check - how am I doing
Replies: 58
Views: 5934

Re: Reality check - how am I doing

I'm 20 - 30 years from retirement....when I get closer to retirement I'll have to take a look at how much I spend to ensure I have income replacement but not concerned about that today. If you're not concerned, then why are you posting a question asking how you are doing on this board? You don't ha...
by HomerJ
Mon May 23, 2016 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Rebuilding our house for $1.5M: Bad Idea Financially?
Replies: 87
Views: 7466

Re: Rebuilding our house for $1.5M: Bad Idea Financially?

At this amount, the real tradeoff (I think) is retirement/financial independence. E.g., reaching it at age X versus X+Y. Stay where you are at for 2 more years, then sell the current house, hit your 5 million goal, and then move away from the insane California real estate market. You are in a posit...
by HomerJ
Mon May 23, 2016 9:52 am
Forum: Investing - Theory, News & General
Topic: Why do we believe in the market?
Replies: 53
Views: 4324

Re: Why do we believe in the market?

Human work is turned into profit.

Owning the market means you get a share of those profits.

It's not a closed system. Human work is the input into the system.
by HomerJ
Mon May 23, 2016 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Dealing with the "waiting game"
Replies: 32
Views: 4549

Re: Dealing with the "waiting game"

livesoft wrote:Now you can get involved in figuring out how to optimize other people's portfolios by reading about them on Bogleheads.org and giving advice to others. It turns out that tweaking other people's portfolios is better than tweaking your own portfolio.


Heh. :)
by HomerJ
Sun May 22, 2016 11:34 pm
Forum: Personal Consumer Issues
Topic: Is living in the Bay Area this difficult?
Replies: 49
Views: 7350

Re: Is living in the Bay Area this difficult?

Wow. You should contrast your choice with moving to the MidWest (Ohio, Illinois, Indiana) or MidEast (Carolinas, Virginias). Just so much less hassle. Did someone mention earthquakes? L. Earthquakes are only scary to people not familiar with them. How familiar are you with earthquakes? Were you ali...
by HomerJ
Sun May 22, 2016 11:31 pm
Forum: Personal Consumer Issues
Topic: Is living in the Bay Area this difficult?
Replies: 49
Views: 7350

Re: Is living in the Bay Area this difficult?

i dont think we are at a peak in the bay area, but now is not a good time to buy. low inventory, low interest rates = seller's market. The low interest rates are the biggest problem... If mortgages go back up to 4%-5%-6% in the next 5-10 years, that means loans will be much more expensive, and ther...
by HomerJ
Sun May 22, 2016 11:23 pm
Forum: Personal Consumer Issues
Topic: Is living in the Bay Area this difficult?
Replies: 49
Views: 7350

Re: Is living in the Bay Area this difficult?

My wife and I lived in the Bay area for four years. Best years of our lives, and we've lived in lots of great areas. The downsides are extremely high housing costs and clogged roads. The upsides, though, are almost countless: spectacular area geographically, outstanding employment/advancement prosp...
by HomerJ
Thu May 19, 2016 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Pride in no inheritance to kids?
Replies: 222
Views: 14486

Re: Pride in no inheritance to kids?

But if they are hard working and save and spend wisely and are still struggling a bit in these difficult times - were does parental failure come in? What does "struggling a bit" mean? You mean, they can't afford the latest iPhone? Or a nicer car? If my ADULT kids are not living below thei...
by HomerJ
Thu May 19, 2016 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Pride in no inheritance to kids?
Replies: 222
Views: 14486

Re: Pride in no inheritance to kids?

But if they are hard working and save and spend wisely and are still struggling a bit in these difficult times - were does parental failure come in? What does "struggling a bit" mean? You mean, they can't afford the latest iPhone? Or a nicer car? If my ADULT kids are not living below thei...
by HomerJ
Thu May 19, 2016 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Pride in no inheritance to kids?
Replies: 222
Views: 14486

Re: Pride in no inheritance to kids?

There seems to be a philosophy that getting too much help will sap the initiative and drive needed to be successful. Also, perhaps take away the pride of accomplishment if you are handed too much financial help. This is how I feel. I have seen it in my own family. Obviously, it's not true for all f...
by HomerJ
Wed May 18, 2016 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: Pride in no inheritance to kids?
Replies: 222
Views: 14486

Re: Pride in no inheritance to kids?

Zott wrote:We live in a HCOL area. I want them to be independent but realize that I will have to help them financially for a while, and I'm fortunate to be able to do so.


It's a fine line. You have to be real careful. Helping them may hinder them from becoming independent.
by HomerJ
Wed May 18, 2016 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Pride in no inheritance to kids?
Replies: 222
Views: 14486

Re: Pride in no inheritance to kids?

My first goal is to save enough so my kids don't have to support ME in retirement. I think housing and feeding them for 22 years, and giving them a free college education, and never asking them for help in my old age is a pretty good deal. Better than most. Of course, almost every Boglehead will hav...
by HomerJ
Wed May 18, 2016 1:47 pm
Forum: Investing - Theory, News & General
Topic: Another Bernstein Gem-Don't be Greedy
Replies: 42
Views: 7175

Re: Another Bernstein Gem-Don't be Greedy

Here is a gem from awhile back...for those who maintain a eighty percent plus stock allocation well into retirement, if you get hit at the wrong time it can a disaster... curious as to BH responses to this..makes sense to me. http://www.wsj.com/articles/how-to-tell-if-your-retirement-nest-egg-is-bi...
by HomerJ
Wed May 18, 2016 1:39 pm
Forum: Investing - Theory, News & General
Topic: Another Bernstein Gem-Don't be Greedy
Replies: 42
Views: 7175

Re: Another Bernstein Gem-Don't be Greedy

tludwig23 wrote:Or to paraphrase Buffet, "Don't risk money you do need, to make money you don't need."


This.

I'm not going to retire until I have "enough". Once I have "enough", why would I take much risk after that? There is very little benefit to "more than enough".
by HomerJ
Wed May 18, 2016 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Reality check - how am I doing
Replies: 58
Views: 5934

Re: Reality check - how am I doing

The OP has expected expenses of around 30-50K/ year with a retirement package that should provide 120K/year but makes about 175K/year. https://www.bogleheads.org/forum/viewtopic.php?f=2&t=176505&p=2669219 If this is true, then the OP is doing great financially. And should already know it. A...
by HomerJ
Wed May 18, 2016 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Reality check - how am I doing
Replies: 58
Views: 5934

Re: Reality check - how am I doing

I would like people's opinion based on the information provided. I will not be providing any additional details at this time. We need to know your expenses. If you spend $70,000 a year, then you're doing great. If you spend $200,000 a year, you're doing terrible. Not asking you what you make. We're...
by HomerJ
Wed May 18, 2016 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Is it common for a step mother to inherit everything?
Replies: 105
Views: 7654

Re: Is it common for a step mother to inherit everything?

I'm going to argue a little bit for the OP... People with blended families need to plan better. Say I die, and my wife remarries... I understand if she and her new husband (especially after 15 years) are joint owners of everything. If my wife then dies, I can even understand her new husband getting ...
by HomerJ
Wed May 18, 2016 12:04 pm
Forum: Personal Consumer Issues
Topic: Did your children ever completely move out?
Replies: 53
Views: 3725

Re: Did your children ever completely move out?

They left their stuff. Most of a "bedroom" in our finished basement is occupied by their stuff. Unfortunately, we don't yet have an actionable plan for making it go away :annoyed Not the worst problem on earth, I suppose. Us too... although it's just half a closet in one bedroom... not th...
by HomerJ
Tue May 17, 2016 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20808

Re: Rich But Middle Class

They don't need new savings. They have ~1.5 million that we aren't looking factor in. That will pay for retirement once the kids are gone since we are looking at expenses around ~100k and we are looking 10 years in the future I find it hard to believe that the OP will downsize that much 20 years fr...
by HomerJ
Tue May 17, 2016 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20808

Re: Rich But Middle Class

They don't need new savings. They have ~1.5 million that we aren't looking factor in. That will pay for retirement once the kids are gone since we are looking at expenses around ~100k and we are looking 10 years in the future I find it hard to believe that the OP will downsize that much 20 years fr...
by HomerJ
Tue May 17, 2016 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20808

Re: Rich But Middle Class

gd wrote:I can't think of many examples from my own experiences where people have chosen to take such a step backwards in lifestyle. Pushed, yes, chosen with happy consequences, not so much.


This is a good point, which is why it's important to be careful about lifestyle creep...
by HomerJ
Tue May 17, 2016 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20808

Re: Rich But Middle Class

Even if the OP lived in the state with the highest income tax, $350k + interest/dividends from taxable accounts would cover $225k in annual expenses on an after-tax basis So the OP will stop saving completely, AND will even take interest/dividends from their current investments (so they will grow m...
by HomerJ
Tue May 17, 2016 9:17 am
Forum: Personal Consumer Issues
Topic: College - In state - Children staying close to parents
Replies: 54
Views: 2626

Re: College - In state - Children staying close to parents

Yeah, clearly the level of communication seems different. I probably talked to my parents once a week, at most, during my freshman year of college and even less after that. Me too... Different today with cell phones and social media. My daughters text or call my wife almost every single day. (That ...
by HomerJ
Mon May 16, 2016 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Some days still not sure I made the right choice
Replies: 49
Views: 7734

Re: Some days still not sure I made the right choice

You retired in winter.

Enjoy your first summer vacation since you were a kid, then tell us how you feel in October...

:)
by HomerJ
Mon May 16, 2016 4:41 pm
Forum: Personal Consumer Issues
Topic: College - In state - Children staying close to parents
Replies: 54
Views: 2626

Re: College - In state - Children staying close to parents

I went to an in-state school, and then in my sophomore year, my parents moved 600 miles away. :)

Rather the reverse problem. :)
by HomerJ
Mon May 16, 2016 4:36 pm
Forum: Personal Consumer Issues
Topic: College - In state - Children staying close to parents
Replies: 54
Views: 2626

Re: College - In state - Children staying close to parents

Assume college rankings are similar in state and out of state. Then, in my book, they are going in-state... Unless they come up with some kind of scholarship. My kids all knew I'd pay for college. They even had a choice. We have two very good in-state Universities. :) Oh, and as another data point,...
by HomerJ
Mon May 16, 2016 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20808

Re: Rich But Middle Class

public school alternatives must be great, and not much different than the private school we have chosen I do find this to be an interesting sub-topic for HCOL urban areas. I live in a Mid-west suburb. All the houses in the surrounding community are in the $400k - $700k range. We have excellent publ...
by HomerJ
Mon May 16, 2016 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20808

Re: Rich But Middle Class

Wouldn't the cost of the nanny be reduced substantially once the kids are in school? Would (presumably) 24-hour childcare not be obsoleted by spending the day in school? The kids are already in school... All they really need is after school day-care... And shouldn't the trader spouse be able to get...
by HomerJ
Sun May 15, 2016 10:21 pm
Forum: Personal Consumer Issues
Topic: Should I go to NHL Western Conference Finals game?
Replies: 36
Views: 2499

Re: Should I go to NHL Western Conference Finals game?

You went by yourself? And you haven't seen a hockey game in 35 years?

Why were you interested in going? I hope you enjoyed the game!
by HomerJ
Sun May 15, 2016 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20808

Re: Rich But Middle Class

We'd ideally like to stay in this area and raise our girls here if we can continue to make it work financially. While there are pros and cons to every place, we feel there would be great benefits to growing up in a vibrant, diverse and sophisticated area, rich with history and tradition. We also li...
by HomerJ
Sun May 15, 2016 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20808

Re: Rich But Middle Class

I shouldn't have jumped on the "move" bandwagon so quickly. OP, if you love your lifestyle, and where you live, then you're doing fine and you don't need to move... You should have no problems retiring when your kids are grown, especially if you move to LCOL area... But if you continue to ...
by HomerJ
Sun May 15, 2016 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20808

Re: Rich But Middle Class

Wow - Professional Day trading - and the Day trading activities is bringing in an average of around ~$600k per year? Just out of curiosity - how much $$$ are you working with on the trading activities to earn the avg of $600k or so annually? I'm guessing the one spouse works for a High-Frequency Tr...
by HomerJ
Sun May 15, 2016 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20808

Re: Rich But Middle Class

We are trying to stay somewhat grounded Move for the kids. How grounded are your kids going to be growing up in that area? Move and you can spend more time with them, by either retiring today or working part-time. You can buy a nicer house for 1/3 of the cost, in the best public school districts. A...

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