Search found 6419 matches

by KlangFool
Fri Sep 22, 2017 11:59 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 85
Views: 3636

Re: No More Saving???

TheTimeLord, 1) You do include the tax-deferred income. Effective tax rate = tax / gross income. In my case, I am referring to my Federal Income Tax when I said 5% effective tax rate. 2) You are FI. So, normal discussion about Roth versus Tax-deferred does not apply to you. KlangFool Personally I d...
by KlangFool
Fri Sep 22, 2017 11:52 am
Forum: Personal Finance (Not Investing)
Topic: No down payment for home purchase: what is worst-case scenario?
Replies: 12
Views: 259

Re: No down payment for home purchase: what is worst-case scenario?

OP, Come on. It should be obvious to you that it costs a lot of money to maintain a house. If a person cannot afford 20% down payment, it is obvious that the person has little to no reserve for handling any other unforeseen expenses associated with the house.... Too many of my peers are financially...
by KlangFool
Fri Sep 22, 2017 11:35 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 85
Views: 3636

Re: No More Saving???

For one thing, you should probably do more in your 401k and less in your Roth if your goal is to pay less tax now. Are you sure your BIL only paid $500 total, or was that after withholding? It is possible that he is having more taken out of his paycheck and then pays less at tax time, and you might...
by KlangFool
Fri Sep 22, 2017 11:32 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 85
Views: 3636

Re: No More Saving???

This is what I don't understand. People who make far more than me pay a lot smaller percentage of their income in taxes. My brother-in-law, this last tax season, ended up paying $500 in federal income tax for the entire year. I paid $5,000 in federal income tax. His gross income is 40% higher than ...
by KlangFool
Fri Sep 22, 2017 11:26 am
Forum: Personal Finance (Not Investing)
Topic: No down payment for home purchase: what is worst-case scenario?
Replies: 12
Views: 259

Re: No down payment for home purchase: what is worst-case scenario?

OP, Come on. It should be obvious to you that it costs a lot of money to maintain a house. If a person cannot afford 20% down payment, it is obvious that the person has little to no reserve for handling any other unforeseen expenses associated with the house. What is the worst that can happen? This ...
by KlangFool
Fri Sep 22, 2017 11:13 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 85
Views: 3636

Re: No More Saving???

Either I pay the tax now or I pay the tax in the future when I take the distributions from the 401k. Assuming the same tax rate, it makes no difference if you pay the tax now or later. For example, if I pay the tax on $100 and contribute $80 after paying 20% tax, and then it grows 10%, then I have ...
by KlangFool
Fri Sep 22, 2017 11:09 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 85
Views: 3636

Re: No More Saving???

My effective tax rate is less than 5%. This is what I don't understand. People who make far more than me pay a lot smaller percentage of their income in taxes. My brother-in-law, this last tax season, ended up paying $500 in federal income tax for the entire year. I paid $5,000 in federal income ta...
by KlangFool
Fri Sep 22, 2017 10:53 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 85
Views: 3636

Re: No More Saving???

Either I pay the tax now or I pay the tax in the future when I take the distributions from the 401k. Assuming the same tax rate, it makes no difference if you pay the tax now or later. For example, if I pay the tax on $100 and contribute $80 after paying 20% tax, and then it grows 10%, then I have ...
by KlangFool
Fri Sep 22, 2017 10:36 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 85
Views: 3636

Re: No More Saving???

My effective tax rate is less than 5%. This is what I don't understand. People who make far more than me pay a lot smaller percentage of their income in taxes. My brother-in-law, this last tax season, ended up paying $500 in federal income tax for the entire year. I paid $5,000 in federal income ta...
by KlangFool
Fri Sep 22, 2017 10:32 am
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 85
Views: 3636

Re: No More Saving???

My effective tax rate is less than 5%. This is what I don't understand. People who make far more than me pay a lot smaller percentage of their income in taxes. My brother-in-law, this last tax season, ended up paying $500 in federal income tax for the entire year. I paid $5,000 in federal income ta...
by KlangFool
Fri Sep 22, 2017 10:06 am
Forum: Personal Consumer Issues
Topic: Phone Techies .....
Replies: 17
Views: 460

Re: Phone Techies .....

If you want to stay with the same size phone the iPhone SE would be a good fit. If you move, go to at least the iPhone 6s. Skip the 6. First gen with lots of screen issues. With iPhone 8 now out, 6s will be the best spot for price/value. But, if money is no object, then a new 7 or 8 would certainly...
by KlangFool
Fri Sep 22, 2017 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Equifax customer information leak
Replies: 627
Views: 36317

Re: Equifax customer information leak

1) How long should I wait for the TrustedID sign up email? 2) I had registered on 9/12 for my wife and 9/13 for myself. 3) What will be sender's email address? I just received mine, and I registered on 9/13, so... hopefully, you're close. The sender e-mail is "Trusted ID Customer Service". Thanks. ...
by KlangFool
Fri Sep 22, 2017 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Equifax customer information leak
Replies: 627
Views: 36317

Re: Equifax customer information leak

Folks,

1) How long should I wait for the TrustedID sign up email?

2) I had registered on 9/12 for my wife and 9/13 for myself.

3) What will be sender's email address?

Thanks.

KlangFool
by KlangFool
Fri Sep 22, 2017 7:25 am
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 78
Views: 7311

Re: The Magic of Savings Rate

Why do people choose to over complicate something simple? ... Find out your expense number that you aim for. Pick a number between 25X to 40X depending on the age Y when you want to FI or retire Pick your annual saving. Pick an AA and assume an annual return rate of 5% to 9% Use Excel to calculate ...
by KlangFool
Thu Sep 21, 2017 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 78
Views: 7311

Re: The Magic of Savings Rate

FiveK, Why do people choose to overcomplicate something simple? I guess they have to write something. Or else, there is nothing left to write. It takes less than a few paragraphs to work out the whole plan. 1) Find out your expense number that you aim for. 2) Pick a number between 25X to 40X depend...
by KlangFool
Thu Sep 21, 2017 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 78
Views: 7311

Re: The Magic of Savings Rate

For example imagine 1) I make 1 million/year b) pay 400k in taxes c) live on 25k d) save 575k So I have a savings rate of 57% and according to the chart I can retire in 14 years. It takes about 2 seconds of thought to say that is total BS and that you will actually hit retirement around 1.5-3 years...
by KlangFool
Thu Sep 21, 2017 8:36 pm
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 85
Views: 3636

Re: No More Saving???

Just wondering how many BH out there got to a point [in one's working years] where the need to save for retirement stopped? For example, has anyone stopped the accumulation phase before retiring? If so, please describe your situation. ebrasmus21, 1) My investment is around 20 times my current annua...
by KlangFool
Thu Sep 21, 2017 8:21 pm
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 85
Views: 3636

Re: No More Saving???

Just wondering how many BH out there got to a point [in one's working years] where the need to save for retirement stopped? For example, has anyone stopped the accumulation phase before retiring? If so, please describe your situation. ebrasmus21, 1) My investment is around 20 times my current annua...
by KlangFool
Thu Sep 21, 2017 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 78
Views: 7311

Re: The Magic of Savings Rate

For example imagine 1) I make 1 million/year b) pay 400k in taxes c) live on 25k d) save 575k So I have a savings rate of 57% and according to the chart I can retire in 14 years. It takes about 2 seconds of thought to say that is total BS and that you will actually hit retirement around 1.5-3 years...
by KlangFool
Thu Sep 21, 2017 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 78
Views: 7311

Re: The Magic of Savings Rate

randomguy, The problem is a person has to either know A) Retirement expense if they are aiming for retirement. B) Current expense if they are aiming for FI. There is no escaping the expense if a person wants to know their number. Once a person has the expense number (A or B), it is easy to calculat...
by KlangFool
Thu Sep 21, 2017 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 78
Views: 7311

Re: The Magic of Savings Rate

Folks, It is very simple but hard to do. All you need is saving rate in terms of your annual expense. If you save 100% of your annual expense every year, you can reach FI in 25 or 33 years even with 0% real return. KlangFool If you can save 100% of your salary you are already financially independen...
by KlangFool
Wed Sep 20, 2017 8:48 pm
Forum: Investing - Theory, News & General
Topic: AA if you were just starting out again
Replies: 36
Views: 2245

Re: AA if you were just starting out again

OP,

If I were starting out again, I would not be 100/0 and gamble on Telecom stock. Then, I would not lose 50% of my investment 10+ years ago. I would start with AA of 70/30 and glide towards AA of 60/40. I would be FI a few years ago.

KlangFool
by KlangFool
Wed Sep 20, 2017 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: Online Bill Pay Security: Push or Pull?
Replies: 90
Views: 3213

Re: Online Bill Pay Security: Push or Pull?

I see and I think I understand how this works for you. In my case I don't get any paper bills. My mail service is unreliable (I get my neighbors mail and they get mine) so I don't trust paper bills and I personally find dealing with paper/US-mail to be cumbersome and time consuming (need to go thro...
by KlangFool
Wed Sep 20, 2017 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 163
Views: 16524

Re: Calling out the not so rich bogleheads

Have you ever came across a "rich" boglehead on this forum? I have not yet! BH household earning $300K year and having net worth of $2M considers herself as "middle class"! Point me to a single reply on this forum where the person says I am "rich". That hypothetical person is absolutely sure that t...
by KlangFool
Wed Sep 20, 2017 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Online Bill Pay Security: Push or Pull?
Replies: 90
Views: 3213

Re: Online Bill Pay Security: Push or Pull?

All Pull. Let Them Do The Work :happy Gives me more time for Spanish Lessons :happy I have found Push saves me more time for places that support eBill delivery. I only log into one place (my banks epay portal) and see several bills sitting there and then can pay them all through a single interface....
by KlangFool
Wed Sep 20, 2017 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Online Bill Pay Security: Push or Pull?
Replies: 90
Views: 3213

Re: Online Bill Pay Security: Push or Pull?

I am afraid your own bank will just say as far as they are concerned you allowed unauthorized debits from the other bank and I should take it up with them (esp, if I did not notice this withdrawal within N days). Is that not the case? If thieves have my bank accounts info, my main concern would be ...
by KlangFool
Wed Sep 20, 2017 10:19 am
Forum: Local Chapters and Bogleheads Community
Topic: Bogleheads you would most like to meet and why?
Replies: 76
Views: 3835

Re: Bogleheads you would most like to meet and why?

Anyway, livesoft still needs to buy me breakfast. And not oatmeal. I'm happy to buy anyone breakfast, lunch, and/or dinner. I have met in person quite a few people who post on the forum and have always enjoyed it tremendously. And I don't quite know what to say to folks except thanks and perhaps pr...
by KlangFool
Wed Sep 20, 2017 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Online Bill Pay Security: Push or Pull?
Replies: 90
Views: 3213

Re: Online Bill Pay Security: Push or Pull?

Due to a mixup, I once received a water bill for more than $3000. This is a huge error, considering the low water rates we have being next to Lake Erie. It took the water dept. about a year to get things straightened out. I would not want to have that kind of bill pulled from my account and try to ...
by KlangFool
Tue Sep 19, 2017 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Online Bill Pay Security: Push or Pull?
Replies: 90
Views: 3213

Re: Online Bill Pay Security: Push or Pull?

I do a push for everything except for our credit cards. I want to make sure they have the payment on record and I save the transaction id just in case. I also don't do auto pay as a pull. I don't trust any merchant to take out the correct amount. AIG screwed me over once by deducting more than a mo...
by KlangFool
Tue Sep 19, 2017 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 157
Views: 13207

Re: Let's talk about your FI # and family income [Financial Independence]

Stupid question. When you guys talk about your FI #, and you want to retire early, do you count all your liquid assets as in brokerage and retirement, or just retirement? I'm just wondering if say I want to retire at 50ish, and use my money in my brokerage to get me until I'm able to use my retirem...
by KlangFool
Tue Sep 19, 2017 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 78
Views: 7311

Re: The Magic of Savings Rate

Folks,

It is very simple but hard to do.

All you need is saving rate in terms of your annual expense. If you save 100% of your annual expense every year, you can reach FI in 25 or 33 years even with 0% real return.

KlangFool
by KlangFool
Tue Sep 19, 2017 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 163
Views: 16524

Re: Calling out the not so rich bogleheads

KlangFool, You are grasping at straws to construct an extremely unlikely corner case event when someone is making a general comment that wasn't about the extreme margins. Slacker, Let's go back to the main point. A) Is the net worth as a ratio of a person's current annual expense or, B) Or the net ...
by KlangFool
Tue Sep 19, 2017 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Online Bill Pay Security: Push or Pull?
Replies: 90
Views: 3213

Re: Online Bill Pay Security: Push or Pull?

I use one credit card (A) for all my recurring bills. Then, I use another card (B) for all other purchases. I have to change card (B) about 3 to 4 times last year. KlangFool 3 to 4 times per year seems excessive. I only have a card get compromised once every 3 or 4 years (and I charge everything I ...
by KlangFool
Tue Sep 19, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 163
Views: 16524

Re: Calling out the not so rich bogleheads

This has the effect of scaring away and/or creating resentment in a lot of people who are not close to being millionaires or even just plain wealthy with a healthy emergency cushion, say around 100K-200K saved @ age 35 or 40 . You can't get wrapped up in a number. Think about it like this (assuming...
by KlangFool
Tue Sep 19, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Online Bill Pay Security: Push or Pull?
Replies: 90
Views: 3213

Re: Online Bill Pay Security: Push or Pull?

When you say "I prefer push payments for security" what do you mean by this? Sounds like you are inferring a push is more secure? A co-worker was glad he didn't have pull from his account for his electric bill. They erroneously billed him (and everyone else in the town). The amount was 1000 times t...
by KlangFool
Tue Sep 19, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Online Bill Pay Security: Push or Pull?
Replies: 90
Views: 3213

Re: Online Bill Pay Security: Push or Pull?

It's occurred to me that I never gave my bank explicit permission to do these transactions so I've wondered about the potential for fraud. What's to stop anyone from using the routing and account numbers (on every check I write) to do a withdrawal from my bank? How does the bank know it's a legitim...
by KlangFool
Tue Sep 19, 2017 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Online Bill Pay Security: Push or Pull?
Replies: 90
Views: 3213

Re: Online Bill Pay Security: Push or Pull?

Combination of both for me. I pay utility bills, mortgage, and a few others with push from my checking account. I pay credit cards with a pull from a checking account. I only automatically pay my mortgage. Credit cards, utilities, and others only get paid after I review the bill and/or reconcile th...
by KlangFool
Tue Sep 19, 2017 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 157
Views: 13207

Re: Let's talk about your FI # and family income [Financial Independence]

37!! Most people aren't even at their peak earning period at that age. Even 45 is VERY young to stop working. Clearly if you have the resources, that's great. But in all the stories I've read about this situation, one of the main problems these very young retirees encounter is that none of their fr...
by KlangFool
Tue Sep 19, 2017 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 157
Views: 13207

Re: Let's talk about your FI # and family income [Financial Independence]

37!! Most people aren't even at their peak earning period at that age. Even 45 is VERY young to stop working. Clearly if you have the resources, that's great. But in all the stories I've read about this situation, one of the main problems these very young retirees encounter is that none of their fr...
by KlangFool
Tue Sep 19, 2017 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 163
Views: 16524

Re: Calling out the not so rich bogleheads

This has the effect of scaring away and/or creating resentment in a lot of people who are not close to being millionaires or even just plain wealthy with a healthy emergency cushion, say around 100K-200K saved @ age 35 or 40 . You can't get wrapped up in a number. Think about it like this (assuming...
by KlangFool
Tue Sep 19, 2017 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 157
Views: 13207

Re: Let's talk about your FI # and family income [Financial Independence]

37!! Most people aren't even at their peak earning period at that age. Even 45 is VERY young to stop working. Clearly if you have the resources, that's great. But in all the stories I've read about this situation, one of the main problems these very young retirees encounter is that none of their fr...
by KlangFool
Tue Sep 19, 2017 11:09 am
Forum: Investing - Help with Personal Investments
Topic: If you don't care about optimal performance?
Replies: 17
Views: 934

Re: If you don't care about optimal performance?

OP,

You only need one word to be happy: enough. "Optimal performance" is a path to hell.

KlangFool
by KlangFool
Tue Sep 19, 2017 9:11 am
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 64
Views: 4521

Re: What is FI if you love your job? [Financial Independence]

I recently spent some time with a truly wonderful couple -- I can tell you that they never adopted a FI lifestyle, and did many of the things that Stanley would scold them about in his book -- designer clothes, second homes, etc. But they both had high paying jobs and some inheritances mixed in. DC...
by KlangFool
Tue Sep 19, 2017 8:47 am
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 64
Views: 4521

Re: What is FI if you love your job? [Financial Independence]

I recently spent some time with a truly wonderful couple -- I can tell you that they never adopted a FI lifestyle, and did many of the things that Stanley would scold them about in his book -- designer clothes, second homes, etc. But they both had high paying jobs and some inheritances mixed in. DC...
by KlangFool
Mon Sep 18, 2017 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Worth buying an excessive priced house?
Replies: 43
Views: 3745

Re: Worth buying an excessive priced house?

highest priority to me is to live life to the fullest, not if I have 15x or 12x by age Y. Reduced income would be about $140K. Currently debt free. Mortgage would be about 3x with plenty in portfolio to easily cover if "disaster" strikes. ThankYouJack, <<highest priority to me is to live life to th...
by KlangFool
Mon Sep 18, 2017 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Save/invest and buy house with cash - yes/no?
Replies: 16
Views: 1068

Re: Save/invest and buy house with cash - yes/no?

OP, If you do not overspend on a house, loan or buy the house with cash would not matter. If you do overspend on a house, you are "House Poor" in either case. We know what happened to "House Poor" folks in a recession. Many of them do not survive. I could pay off my mortgage any time. If my portfoli...
by KlangFool
Mon Sep 18, 2017 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Worth buying an excessive priced house?
Replies: 43
Views: 3745

Re: Worth buying an excessive priced house?

After working, sleeping, eating, bathing and family responsibilities, how much time is left? The answer: not enough I think you know the answer. But, you may have to do it to find out. The "balance time" is precious. I've come to try to do a lot to protect it. Every extra chore, duty, gadget, toy s...
by KlangFool
Mon Sep 18, 2017 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Worth buying an excessive priced house?
Replies: 43
Views: 3745

Re: Worth buying an excessive house?

OP,

1) What do you give up with this house?

A) More vacation?

B) Better college for your kid?

2) What do you do with all those extra space when the kids are gone?

3) Would you rather spend more money maintaining the house or spend more money enjoying your life?

KlangFool
by KlangFool
Mon Sep 18, 2017 9:22 am
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 64
Views: 4521

Re: What is FI if you love your job?

I've actually always been a natural "glass half empty" type and that was part of the "save save save" mentality. You never know what could happen, right? But I have tried lately to think more rationally about this issue. Yes, it could all come crashing down tomorrow, but that's probably unlikely. A...
by KlangFool
Sun Sep 17, 2017 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 26
Views: 2247

Re: Advise on what to do with additional savings

Retirement - Her - $72k in a ML fund managed by a FI at a discount family rate Tax Filing Status: Married filing joint Tax Rate - 33% Federal, 6% State State - GA beth65, 1) Do you contribute to the max of both 401K? You are paying combined 33% + 6% = 39% tax. You should contribute 2 X 18K = 36K. P...