Search found 5405 matches

by KlangFool
Sun May 28, 2017 10:13 pm
Forum: Investing - Theory, News & General
Topic: DON'T pay off your mortgage; instead reduce Sequence of Return Risk
Replies: 35
Views: 2792

Re: DON'T pay off your mortgage; instead reduce Sequence of Return Risk

Not our cup of tea. Eliminating mortgage early and having no debt worked out fine for our retirement at 53. Would be curious how the group might see this in a more stressful environment (anyone recall steep housing price and equity market declines in 2007-2009? ..... Throw in a job loss or major me...
by KlangFool
Sun May 28, 2017 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: When does Saving become missing out on life?
Replies: 70
Views: 6914

Re: When does Saving become missing out on life?

If you save 30+% of your gross income, you save enough. You could spend the rest. KlangFool, when calculating that rate, do you include (vested?) employer defined contributions as part of gross income? You should include it both in the numerator and the denominator. If you make $100,000 a year and ...
by KlangFool
Sun May 28, 2017 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: When does Saving become missing out on life?
Replies: 70
Views: 6914

Re: When does Saving become missing out on life?

If you save 30+% of your gross income, you save enough. You could spend the rest. KlangFool, when calculating that rate, do you include (vested?) employer defined contributions as part of gross income? You should include it both in the numerator and the denominator. If you make $100,000 a year and ...
by KlangFool
Sat May 27, 2017 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: When does Saving become missing out on life?
Replies: 70
Views: 6914

Re: When does Saving become missing out on life?

spammagnet wrote:
KlangFool wrote:If you save 30+% of your gross income, you save enough. You could spend the rest.

KlangFool, when calculating that rate, do you include (vested?) employer defined contributions as part of gross income?


No.

KlangFool
by KlangFool
Fri May 26, 2017 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: Quickest Path to Financial Independence
Replies: 27
Views: 4131

Re: Quickest Path to Financial Independence

In answer to your question, the $50k to $100k number came from an annual average of what we spent in the past 3 years as a family. That is how much we can all live on... surely if we moved to Cambodia we could live with a lot less. And even though we may visit that part of the world one day, I want...
by KlangFool
Thu May 25, 2017 6:55 pm
Forum: Personal Consumer Issues
Topic: best way to buy tires
Replies: 39
Views: 2202

Re: best way to buy tires

And the warranty are almost useless in my experience. Lets say you bought 300 dollar tire on sale for 200 bucks. You got 40k miles instead of 60. What happens. You pay 300*4/6 = 200 bucks for the tire. Hmm not much of a savings:). And that assumes you can come up with the documentation showing you ...
by KlangFool
Thu May 25, 2017 5:55 pm
Forum: Personal Consumer Issues
Topic: best way to buy tires
Replies: 39
Views: 2202

Re: best way to buy tires

The $1000 (usually more) comes from replacing the tires on 2 cars once a year each ... I'm getting 30-35k out of a set ... we try to stay on top of tire pressure . .. rotating as required etc ... we live in northern PA so the roads aren't the best ... and we drive a lot for work/life ... but arent ...
by KlangFool
Thu May 25, 2017 3:50 pm
Forum: Personal Consumer Issues
Topic: best way to buy tires
Replies: 39
Views: 2202

Re: best way to buy tires

Wow ... im getting 30k miles out of my tires and i take care of them ... im suprised the michelines are getting north of 75k and 90k on them ... that's amazing JD1967, I do not understand how you could spend $1000 per year on your tire. Is it on 2 vehicles? Typically, I pay $700 to 800 for 4 Bridge...
by KlangFool
Thu May 25, 2017 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: When does Saving become missing out on life?
Replies: 70
Views: 6914

Re: When does Saving become missing out on life?

Something I've personally been struggling with lately, when does saving become obsessive? At 33, I find myself being obsessed with saving and cutting corners as much as I can (I don't even pay for Cable or Trash Service; only use netflix and convinced parents to let me use their trash service (they...
by KlangFool
Thu May 25, 2017 7:45 am
Forum: Investing - Help with Personal Investments
Topic: 100% VTSAX need advice [Vanguard Total Stock Market]
Replies: 65
Views: 6760

Re: 100% VTSAX need advice

[Is that because you are saving $100,000 a year or because you expect to see 10% returns for the next 10 years?/quote] I'm saving around 100,000 a year and assuming 6% annual return. topspin70, In summary, you are being greedy and taking unnecessary risk. You could reach your goal easily with a 60/...
by KlangFool
Tue May 23, 2017 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: Asymmetrical Risk-Reward in Tax-Deferred Accounts?
Replies: 5
Views: 400

Re: Asymmetrical Risk-Reward in Tax-Deferred Accounts?

Do investors face an asymmetrical risk reward proposition when investing in tax deferred accounts when they expect to be withdrawing from the tax-deferred account in a high marginal 40% plus tax bracket? If so, how should that be factored into an asset allocation? NYCguy, Just to make sure that we ...
by KlangFool
Tue May 23, 2017 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3273

Re: % Roth vs. % traditional

OK so we are talking about investing less in the Roth IRA, and more in the traditional 401k, waiting until I get my tax return comes, then investing my tax return into the Roth IRA? Or not waiting to adjust your W-4 (if needed to decrease your tax free loan to the IRS), but in any case contributing...
by KlangFool
Tue May 23, 2017 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3273

Re: % Roth vs. % traditional

OK so we are talking about investing less in the Roth IRA, and more in the traditional 401k, waiting until I get my tax return comes, then investing my tax return into the Roth IRA? Or not waiting to adjust your W-4 (if needed to decrease your tax free loan to the IRS), but in any case contributing...
by KlangFool
Tue May 23, 2017 12:44 pm
Forum: Investing - Theory, News & General
Topic: 401k vs Pension
Replies: 15
Views: 1300

Re: 401k vs Pension

Hi Klang, I'm in a university hospital setting so I have them withhold max amount (single filer) social security. So that factor should remain the same. I don't know the fees associated with the 401k yet. ActionTransaction, 1) $1,000 to $1,200 per month or per year for the pension? 2) How much will...
by KlangFool
Tue May 23, 2017 11:16 am
Forum: Investing - Theory, News & General
Topic: 401k vs Pension
Replies: 15
Views: 1300

Re: 401k vs Pension

Thanks everybody! I think I wasn't as clear as I could have been. I am currently in the pension, and there are options to do additional investing at my exspense no match. So at a minimum I have a mandatory 7% deduction for the pension. I have a job offer which is not state affiliated so the pension...
by KlangFool
Mon May 22, 2017 10:27 pm
Forum: Investing - Theory, News & General
Topic: Is rebalacing only about risk?
Replies: 66
Views: 4083

Re: Is rebalacing only about risk?

...one does not have to use math to rebalance because one can get close enough with just guessing. Besides, the numbers will be different again the next day... this is philosophically interesting; the actual/exact allocation targets are unattainable, other than only ephemerally this makes me want t...
by KlangFool
Mon May 22, 2017 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: I admit, I give up [need strategy for getting back in]
Replies: 30
Views: 4273

Re: I admit, I give up [need strategy for getting back in]

OP, 1) What is your annual saving? 2) What is your annual expense? <<My debt to income ratio is low so I can afford risk.>> 3) That is irrelevant since your knowledge and willingness to take risk is close to zero as shown below. << I entered the workplace in 2003 and have seen a few cycles of market...
by KlangFool
Mon May 22, 2017 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: 100% VTSAX need advice [Vanguard Total Stock Market]
Replies: 65
Views: 6760

Re: 100% VTSAX need advice

OP, At 960K and 10 years from retirement, 1) What is your number? Aka, 25 times annual expense? 25 times retirement expense? 2) How much is your annual savings? https://personal.vanguard.com/us/insights/saving-investing/model-portfolio-allocations 3) Can you get there with the 75/25 AA? As per the a...
by KlangFool
Fri May 19, 2017 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Quickest Path to Financial Independence
Replies: 27
Views: 4131

Re: Quickest Path to Financial Independence

Dear friends in investing, Let me quickly explain my situation: SITUATION: I am in my mid-thirties. I am a freelance artist. GOAL: Generating anywhere between $50,000 to $100,000 annually in investment income. I would like to reach this goal as soon as possible so I don't have to worry where my nex...
by KlangFool
Fri May 19, 2017 10:03 am
Forum: Investing - Help with Personal Investments
Topic: 100% VTSAX need advice [Vanguard Total Stock Market]
Replies: 65
Views: 6760

Re: 100% VTSAX need advice

I'm 47 years old and planning to move all my investments (approximately 950,000 US dollars) to VTSAX. I have tried Dividend Growth investing and I think I can sleep better by doing index fund. DGI is consuming a lot of my time. JLCollins in his book recommended a mix of VTSAX an VBLTX. Since I'm pl...
by KlangFool
Thu May 18, 2017 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs pre-tax with higher income in the future
Replies: 10
Views: 871

Re: Roth vs pre-tax with higher income in the future

OP, Do you have the money to contribute to Roth IRA if you contribute to Roth TSP? If the answer is no, then, the answer is clear. If you contribute to Trad. TSP, you have money to contribute to Roth IRA. Then, you have money in both tax buckets: Tax Deferred and Roth. You have tax diversity. At 28%...
by KlangFool
Thu May 18, 2017 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: Hep with rethinking portfolio.
Replies: 11
Views: 1132

Re: Hep with rethinking portfolio.

<< Also I do want to have better access to som A) You can withdraw your Roth IRA contribution any time without penalty. B) You can withdraw your Trad. 401K money without penalty using Roth Conversion. https://www.bogleheads.org/wiki/Roth_IRA_conversion So, you can access your money even if they are...
by KlangFool
Thu May 18, 2017 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Life's big ticket items to save for
Replies: 37
Views: 2802

Re: Life's big ticket items to save for

I'm 30 and getting married this year, planning to have kids in the next few years, and maybe buy a home if we move out of the SFBA. What are some of the big ticket items I should save for? Wedding expenses we've got figured out. How much do kids cost from delivery to when they're out on their own? ...
by KlangFool
Thu May 18, 2017 1:00 pm
Forum: Investing - Theory, News & General
Topic: For those with $500k-$1m in investments...
Replies: 138
Views: 12352

Re: For those with $500k-$1m in investments...

OP,

Age: 50+

Tax Deferred (401K / Rollover IRA) - 45%
Taxable - 45%
Roth IRA - 10%

KlangFool
by KlangFool
Wed May 17, 2017 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Hep with rethinking portfolio.
Replies: 11
Views: 1132

Re: Hep with rethinking portfolio.

<< New annual Contributions $7,000 401k $2,000 employer match $3,400 HSA - Max $5,500 Roth IRA - Max $10,000 taxable to taxable account You have some decent 401k options. Why are you contributing to a taxable account before maxing your 401k? Honestly no good reason. Previously looking at my 401k opt...
by KlangFool
Wed May 17, 2017 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Shifting Taxable Investments to Roth 401K
Replies: 17
Views: 823

Re: Shifting Taxable Investments to Roth 401K

OP, Why would you want to contribute to Roth 401K? You save 25% + 3.75 = 28.75% tax by contributing to Trad. 401K. You could contribute to Trad. 401K and put the tax savings (up to 5.5K) into Roth IRA. Then, you get more money in your own pocket. KlangFool Klangfool, I think this year he'll only be...
by KlangFool
Wed May 17, 2017 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Shifting Taxable Investments to Roth 401K
Replies: 17
Views: 823

Re: Shifting Taxable Investments to Roth 401K

OP,

Why would you want to contribute to Roth 401K? You save 25% + 3.75 = 28.75% tax by contributing to Trad. 401K.

You could contribute to Trad. 401K and put the tax savings (up to 5.5K) into Roth IRA. Then, you get more money in your own pocket.

KlangFool
by KlangFool
Wed May 17, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Article: "Our emergency fund is exactly $0.00"
Replies: 73
Views: 7299

Re: Article: "Our emergency fund is exactly $0.00"

Pax, You slice and dice your "cash" funds . Then, you think that you save too much cash. But, you may or may not be correct. That is your problem. I don't have this problem. I keep 1 year worth of emergency fund. Then, I have other flows of cash: my annual savings into the taxable account...
by KlangFool
Wed May 17, 2017 11:04 am
Forum: Personal Finance (Not Investing)
Topic: How much house? How large of a down payment? Infinite permutations are driving me batty
Replies: 36
Views: 3054

Re: How much house? How large of a down payment? Infinite permutations are driving me batty

@Klangfool: Both very good points, both on timing and space needs. If I recall correctly, you advocate having X times the value of the house in liquid investments before buying? How would you modify that (if at all) for (1) VHCOL areas like Boston and (2) people in their early 30s? OP, << How would...
by KlangFool
Wed May 17, 2017 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Article: "Our emergency fund is exactly $0.00"
Replies: 73
Views: 7299

Re: Article: "Our emergency fund is exactly $0.00"

I also have other "Cash" accounts: one where I am saving 1 year of nursing home care for Mom ( she is 97 yrs old with Alzheimers and we have 2 and 1/2 years left in the bank for her care), new car fund (which I might have to re-direct to Mom's care) and other small (Home Projects and Vaca...
by KlangFool
Tue May 16, 2017 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Article: "Our emergency fund is exactly $0.00"
Replies: 73
Views: 7299

Re: Article: "Our emergency fund is exactly $0.00"

OP,

I have multiple levels of Emergency Fund.

1) 1 year of expense in checking account and Vanguard money market account.

2) A few hundred up to 1 thousand in cash on hand.

3) Gold jewelry

4) At least 1 week worth of food and plenty of bottled water in the pantry.

So, I am prepared.

KlangFool
by KlangFool
Tue May 16, 2017 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Was there a $$$ number after which things got easier?
Replies: 72
Views: 9265

Re: Was there a $$$ number after which things got easier?

Fair enough. And does your calculation include future social security benefits? In my case, those (expected) benefits plus a pension will cover (projected) annual expenses from FRA of spouse onward. If not, then the withdrawal rate need be less than 2%. $2m is, in fact, my number, but with the abov...
by KlangFool
Tue May 16, 2017 10:17 am
Forum: Personal Finance (Not Investing)
Topic: Was there a $$$ number after which things got easier?
Replies: 72
Views: 9265

Re: Was there a $$$ number after which things got easier?

For all you people that said "growth in the accounts exceeded wages from work" Why are you still working? Uh... because stocks may go down tomorrow.. uh... won't they come back up? shouldn't you have some fixed income sources to ride out a storm? I know, I know some bogleheads are very co...
by KlangFool
Tue May 16, 2017 9:12 am
Forum: Investing - Theory, News & General
Topic: Best argument you've heard against passive/for active?
Replies: 49
Views: 3966

Re: Best argument you've heard against passive/for active?

what are the most convincing arguments people have heard against passive investing or in favor of active investing? Vanguard Wellington +1, actively managed Wellington has beat it's passive counterpart balanced index, inclusive of expenses since the latter's inception while holding less than 10% of...
by KlangFool
Tue May 16, 2017 9:07 am
Forum: Personal Finance (Not Investing)
Topic: How much house? How large of a down payment? Infinite permutations are driving me batty
Replies: 36
Views: 3054

Re: How much house? How large of a down payment? Infinite permutations are driving me batty

Thank you for all of the wisdom! Another question floating around my head: yes, I will have more knowledge of my future state once the baby is born. BUT, searching for real estate in a hot, crowded market is very time consuming. That is time I currently have in spades but that will evaporate (I exp...
by KlangFool
Tue May 16, 2017 9:02 am
Forum: Personal Finance (Not Investing)
Topic: How much house? How large of a down payment? Infinite permutations are driving me batty
Replies: 36
Views: 3054

Re: How much house? How large of a down payment? Infinite permutations are driving me batty

My current space needs are only 1-1.5K sqft, but I can see that increasing to 2-2.5K sqft with a family. topofthebellcurve, You are wrong to believe that you need more space with a baby/toddler. In fact, more space is counter-productive in taking care of a baby/toddler. Many parents fenced out thei...
by KlangFool
Tue May 16, 2017 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Was there a $$$ number after which things got easier?
Replies: 72
Views: 9265

Re: Was there a $$$ number after which things got easier?

For all you people that said "growth in the accounts exceeded wages from work" Why are you still working? Uh... because stocks may go down tomorrow.. uh... won't they come back up? shouldn't you have some fixed income sources to ride out a storm? I know, I know some bogleheads are very co...
by KlangFool
Tue May 16, 2017 8:48 am
Forum: Investing - Theory, News & General
Topic: Best argument you've heard against passive/for active?
Replies: 49
Views: 3966

Re: Best argument you've heard against passive/for active?

what are the most convincing arguments people have heard against passive investing or in favor of active investing? Vanguard Wellington +1, actively managed Wellington has beat it's passive counterpart balanced index, inclusive of expenses since the latter's inception while holding less than 10% of...
by KlangFool
Mon May 15, 2017 9:28 pm
Forum: Investing - Theory, News & General
Topic: What Will Burst the Next Bubble?
Replies: 66
Views: 6259

Re: What Will Burst the Next Bubble?

OP,

The market will not crash this year. It will crash next year. Of course, I will not put any money behind my prediction. My guess is as good/bad as anyone else.

KlangFool
by KlangFool
Mon May 15, 2017 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Was there a $$$ number after which things got easier?
Replies: 72
Views: 9265

Re: Was there a $$$ number after which things got easier?

For all you people that said "growth in the accounts exceeded wages from work" Why are you still working? EnjoyIt, SWR = 4% for retirement age. SWR = 3.33% or lower for early retirement. So, if the account growth exceeded 4%/3.33% or like 10% now, the investment is still not big enough fo...
by KlangFool
Mon May 15, 2017 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Was there a $$$ number after which things got easier?
Replies: 72
Views: 9265

Re: Was there a $$$ number after which things got easier?

For all you people that said "growth in the accounts exceeded wages from work" Why are you still working? EnjoyIt, SWR = 4% for retirement age. SWR = 3.33% or lower for early retirement. So, if the account growth exceeded 4%/3.33% or like 10% now, the investment is still not big enough fo...
by KlangFool
Sun May 14, 2017 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Was there a $$$ number after which things got easier?
Replies: 72
Views: 9265

Re: Was there a $$$ number after which things got easier?

Totally subjective, but that's what I'm looking for, opinions from our BH community. Just something I"ve been personally wrestling with, wondering if it ever does get easier and the compounding really starts taking over? So for our BH members, was there a number you hit after which it really f...
by KlangFool
Sun May 14, 2017 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: AA for 529
Replies: 20
Views: 1154

Re: 529 or not?

...You will spend the education money either from the taxable account or the 529... thank you so, ONLY if he decides to & gets into professional school AND IF by then we still can & want to help him with tuition, at that time having saved in 529 would turn out to be a better decision than h...
by KlangFool
Sun May 14, 2017 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: AA for 529
Replies: 20
Views: 1154

Re: 529 or not?

you will be 59 1/2 when the kid goes to college. Hence, you can withdraw money from the retirement account for college expenses. Klangfool, is there an advantage in using Tax-Deferred money for educational expenses (after age 59.5)? if not, why would the Tax-Deferred account be a better choice than...
by KlangFool
Sun May 14, 2017 11:34 am
Forum: Personal Consumer Issues
Topic: Where do you get your tea ?
Replies: 23
Views: 1978

Re: Where do you get your tea ?

https://secure.uptontea.com/store/home. ... /home.asp&

OP,

Upton Teas -> Direct tea importer. 200+ varieties of teas. Approximate $5 shipping per shipment.

KlangFool
by KlangFool
Sun May 14, 2017 11:23 am
Forum: Investing - Help with Personal Investments
Topic: AA for 529
Replies: 20
Views: 1154

Re: 529 or not?

...529 makes sense if you are at above 28% marginal tax bracket. Below that, it does not make sense. Retirement accounts work a lot better. And, retirement account does not count towards financial aid... KlangFool, Which income tax bracket counts here? The bracket one is at while saving or the brac...
by KlangFool
Sun May 14, 2017 10:04 am
Forum: Investing - Help with Personal Investments
Topic: AA for 529
Replies: 20
Views: 1154

Re: 529 or not?

...529 makes sense if you are at above 28% marginal tax bracket. Below that, it does not make sense. Retirement accounts work a lot better. And, retirement account does not count towards financial aid... KlangFool, Which income tax bracket counts here? The bracket one is at while saving or the brac...
by KlangFool
Thu May 11, 2017 3:36 pm
Forum: Investing - Theory, News & General
Topic: All-in-one Plus strategy
Replies: 65
Views: 2935

Re: All-in-one Plus strategy

Folks, With core fund plus bond fund approach, a glide path could be created. During accumulation, the allocation to bond fund could increase and glide the AA to a more conservative allocation. During decumulation, the investor could spend from the core fund. KlangFool Can't you just use a Target f...
by KlangFool
Wed May 10, 2017 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: General question of balance and compromise
Replies: 22
Views: 1302

Re: General question of balance and compromise

OP, I save 30+% of my gross income. Then, I spend the rest. 1) I only buy new Nissan Altima. I could afford to buy some other cars but I like Nissan Altima. 2) I buy less house than my peers. 3) I do not send my children to private schools and private colleges like some of my peers. 4) I eat out reg...
by KlangFool
Wed May 10, 2017 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Job choice
Replies: 18
Views: 1733

Re: Job choice

I'll post more soon but just a quick note on the budget. Out of the 11k, 5k is the mortgage including PITI on a 7 year payoff, 2300 is required, we pay a little over 1500 additional and 1000 is taxes and insurance. notmyhand, Do you have an individual 401K? What is your marginal tax rate? Do you pa...

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