You’re at $150k annual spend so you’re financially independent already
Why not just adjust your spend to 4% withdrawal rate of your net worth that isn’t in the single stock? You may need to adjust for one time items (i.e. college) but it seems if for example after you sell your RSUs and pay taxes and normalize for any one time items then spending 4% of that number while you’re still working and earning more is a layup. It would also allow you to spend a lot more than you are now.
Search found 1258 matches
- Wed Mar 13, 2024 12:05 am
- Forum: Personal Finance (Not Investing)
- Topic: moving from ~600k to ~1.5M income
- Replies: 74
- Views: 11769
- Sat Feb 24, 2024 9:37 am
- Forum: Investing - Theory, News & General
- Topic: Japan’s Nikkei 225 briefly crosses 30,000 for first time in more than three decades
- Replies: 60
- Views: 7374
Re: Japan’s Nikkei 225 briefly crosses 30,000 for first time in more than three decades
It’s not that it can’t happen here it’s just that it won’t and we’re no where close to having a similar situation.
Japan is brought up as nauseam on here but the reality is their market was trading at around 70x forward earnings before the crash. We are at around 20x forward right now which isn’t cheap but by no means a cause for concern IMO.
- Sat Feb 10, 2024 9:03 am
- Forum: Investing - Theory, News & General
- Topic: Meta becomes a dividend payer.
- Replies: 43
- Views: 5034
Re: Meta becomes a dividend payer.
I wouldn’t look at META’s minuscule dividend as a sign that they don’t have other things to invest in. I think they did it because certain funds have dividend policies and it broadens the universe of investors who can own the stock.
- Thu Feb 01, 2024 6:19 pm
- Forum: Investing - Theory, News & General
- Topic: Echoes of Dot Com Bubble?
- Replies: 230
- Views: 23997
Re: Echoes of Dot Com Bubble?
Current forward P/E multiple of S&P 500: ~20x Peak P/E multiple of Japan Nikkei prior to crash: ~87x Peak P/E multiple of NASDAQ prior to crash: ~200x No, we are not in a bubble Forward PEs are considerably lower than PEs based on historical earnings and if I recall forward PEs are based upon operating earnings. Seems like you are comparing forward PEs and historical PEs in your example. Looks like the forward PE before 2000 crash was around 33. Now it is 22 https://www.gurufocus.com/economic_indicators/6061/sp-500-pe-ratio-with-forward-estimate Also forward PE is dependent on estimated forward earnings. When earnings are very strong the PEs all else equal may be comparatively lower. So while a 22 forward PE may seem “reasonable”, a fo...
- Wed Jan 31, 2024 5:28 pm
- Forum: Investing - Theory, News & General
- Topic: Echoes of Dot Com Bubble?
- Replies: 230
- Views: 23997
Re: Echoes of Dot Com Bubble?
Current forward P/E multiple of S&P 500: ~20x
Peak P/E multiple of Japan Nikkei prior to crash: ~87x
Peak P/E multiple of NASDAQ prior to crash: ~200x
No, we are not in a bubble
Peak P/E multiple of Japan Nikkei prior to crash: ~87x
Peak P/E multiple of NASDAQ prior to crash: ~200x
No, we are not in a bubble
- Tue Jan 30, 2024 10:05 pm
- Forum: US Chapters
- Topic: Post your Financial Milestone Announcements Here
- Replies: 3606
- Views: 562472
Re: Post your Financial Milestone Announcements Here
Two high paying jobs with some equity payouts. Mostly indexed but also bought NVIDIA around $60 a share and also did very well with Amazon, Google and Facebook.tesuzuki2002 wrote: ↑Tue Jan 30, 2024 8:41 pmheck of a milestone!!!
how'd you get there? Do you own a business? lots of hard work, good investments?
- Tue Jan 30, 2024 8:37 pm
- Forum: US Chapters
- Topic: Post your Financial Milestone Announcements Here
- Replies: 3606
- Views: 562472
Re: Post your Financial Milestone Announcements Here
Bought a vacation property and reached $11 million on my primary account both in the last month
- Tue Jan 30, 2024 7:49 am
- Forum: Personal Investments
- Topic: Is paying off a 2.99% mortgage always a bad idea?
- Replies: 332
- Views: 24680
Re: Is paying off a 2.99% mortgage always a bad idea?
Silly thinking. If in the future you can get a 30 year mortgage below 4% you will make a ton of money doing that and investing in equities. On a $1M mortgage at 4% rate if you hit 8% over 30 years in equities you are leaving $6.8 million on the table At a 10% return you are leaving $14.2 million on the table Are 100% of your investments in stock? If not, you can ask the same question: why are you holding bonds or cash when the stock market has higher expected returns? And the answer to both questions is the same: risk is also a consideration. If your risk tolerance is such that you prefer to hold some bonds with a low-risk return of X% than invest in the stock market, then you should also prefer to pay down a mortgage for a low-risk return...
- Mon Jan 29, 2024 8:53 pm
- Forum: Personal Investments
- Topic: Is paying off a 2.99% mortgage always a bad idea?
- Replies: 332
- Views: 24680
Re: Is paying off a 2.99% mortgage always a bad idea?
What taxes?ThankYouJack wrote: ↑Mon Jan 29, 2024 2:35 pmI think your math is off. And are you factoring in taxes?
- Mon Jan 29, 2024 8:52 pm
- Forum: Personal Investments
- Topic: Is paying off a 2.99% mortgage always a bad idea?
- Replies: 332
- Views: 24680
Re: Is paying off a 2.99% mortgage always a bad idea?
I guess the main difference in opinion here is that I do not consider equities risky over long periods of time. So if you can match a 30 year mortgage with 30 years in equities then I consider it a no brainer. Um, sure--if you can be absolutely certain that you will hold both the mortgage and the equities for 30 years that would probably work out as long as we don't enter some new era of long term market doldrums, as was the case in Japan. But that's a really big IF combined with a smaller if. If you sell and roll it into another mortgage it doesn’t really matter. And Japan is not gonna happen in the US. Their market was valued at 70x P/E - it’s a ridiculous comparison to make yet people make it all the time on here. The point is over your...
- Mon Jan 29, 2024 12:49 pm
- Forum: Personal Investments
- Topic: Is paying off a 2.99% mortgage always a bad idea?
- Replies: 332
- Views: 24680
Re: Is paying off a 2.99% mortgage always a bad idea?
Correct. But a huge swath of this board that thinks about finances daily somehow paid off their homes and didn’t do a cash out refi in 2020 and 2021 when interest rates were zero. I know it’s a personal decision and easier to not have a mortgage but when you can borrow at 2.5% for 30 years and invest at well over 2.5% it’s kind of a no brainer. I would only advocate arbitraging mortages and investments when it can be done entirely risk free. There were not any risk-free strategies available that yielded much more than zero during the ZIRP mania. And now that there are 5% risk-free investments, mortgage rates are not 2.5%. The only way one is likely to end up in this situation is to have a preexisting low rate mortgage when rates suddenly r...
- Mon Jan 29, 2024 12:44 pm
- Forum: Personal Investments
- Topic: Is paying off a 2.99% mortgage always a bad idea?
- Replies: 332
- Views: 24680
Re: Is paying off a 2.99% mortgage always a bad idea?
Correct. But a huge swath of this board that thinks about finances daily somehow paid off their homes and didn’t do a cash out refi in 2020 and 2021 when interest rates were zero. I know it’s a personal decision and easier to not have a mortgage but when you can borrow at 2.5% for 30 years and invest at well over 2.5% it’s kind of a no brainer. I would only advocate arbitraging mortages and investments when it can be done entirely risk free. There were not any risk-free strategies available that yielded much more than zero during the ZIRP mania. And now that there are 5% risk-free investments, mortgage rates are not 2.5%. The only way one is likely to end up in this situation is to have a preexisting low rate mortgage when rates suddenly r...
- Sun Jan 28, 2024 1:25 am
- Forum: Personal Investments
- Topic: Is paying off a 2.99% mortgage always a bad idea?
- Replies: 332
- Views: 24680
Re: Is paying off a 2.99% mortgage always a bad idea?
Correct. But a huge swath of this board that thinks about finances daily somehow paid off their homes and didn’t do a cash out refi in 2020 and 2021 when interest rates were zero. I know it’s a personal decision and easier to not have a mortgage but when you can borrow at 2.5% for 30 years and invest at well over 2.5% it’s kind of a no brainer.
- Tue Jan 23, 2024 8:15 pm
- Forum: Investing - Theory, News & General
- Topic: can indexes have low PE and low return for a long time?
- Replies: 41
- Views: 3930
Re: can indexes have low PE and low return for a long time?
The stock market is a discounting mechanism. If forward earnings growth is projected to be low, multiples will continue to be low.
- Tue Jan 23, 2024 7:49 pm
- Forum: Personal Investments
- Topic: How much is owned real estate (primary/secondary homes) as a percent of your net worth?
- Replies: 113
- Views: 8873
Re: How much is owned real estate (primary/secondary homes) as a percent of your net worth?
I feel like this was just asked in the past week. Assets Total Real Estate Assets (homes/condos that you own for personal use, not rental properties or REIT investments) + Other assets (stocks, bonds, REITs, rental properties, etc) = Total Assets Liabilities Mortgage Liabilities + Other Non-mortgage Liabilities = Total Liabilities Net Worth (total assets - total liabilities) Mine looks like this: RE Assets: 29% Other Assets: 71% Total Assets: 100% Mortgage Liabilities: 12% Other Liabilities: 13% Total Liabilities: 25% Net Worth: 75% Your math is weird. An Asset is an Asset. Liabilities are Liabilities. Net Worth = Assets - Liabilities. I am trying to wrap my head around how a NW of 75% makes any sense, when NET is in the name. My math isn’...
- Tue Jan 23, 2024 2:22 pm
- Forum: Personal Investments
- Topic: How much is owned real estate (primary/secondary homes) as a percent of your net worth?
- Replies: 113
- Views: 8873
Re: How much is owned real estate (primary/secondary homes) as a percent of your net worth?
True, but you can do a cash out refi and realize a portion of that equity if you choose to, while still living in the house
- Tue Jan 23, 2024 12:30 pm
- Forum: Personal Investments
- Topic: How much is owned real estate (primary/secondary homes) as a percent of your net worth?
- Replies: 113
- Views: 8873
- Tue Jan 23, 2024 12:27 pm
- Forum: Personal Investments
- Topic: How much is owned real estate (primary/secondary homes) as a percent of your net worth?
- Replies: 113
- Views: 8873
How much is owned real estate (primary/secondary homes) as a percent of your net worth?
I am trying to get a sense of what the standard is amongst the bogleheads in terms of owned real estate vs other assets and liabilities. This is actionable as I am trying to determine how much real estate is appropriate for myself and understand the average profile as well as the highs and lows. I was hoping to get the information shared in the below format to make it consistent amongst the group. Feel free to share in $ or as a % of overall 100% balance sheet as either would be equally useful. I can compile the data and output it if I get enough responses. Format for posting Assets Total Real Estate Assets (homes/condos that you own for personal use, not rental properties or REIT investments) + Other assets (stocks, bonds, REITs, rental pr...
- Mon Jan 22, 2024 10:22 pm
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4273
- Views: 1072547
Re: Share your net worth progression
Do you know other people in real life that are not UNHW that post on bogleheads? If not, what point are you trying to make?yobyot wrote: ↑Fri Jan 19, 2024 2:08 pm Point taken...though I try to be careful about what clues I leave here.
Mostly, though, I'm talking about the UHNW folks posting in this thread. In my experience, UHNWs -- I'm not one -- are much more circumspect. And I don't know any who are regularly reading Bogleheads.
- Mon Jan 22, 2024 10:21 pm
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4273
- Views: 1072547
Re: Share your net worth progression
Yikes. It’s an anonymous message board…yobyot wrote: ↑Fri Jan 19, 2024 11:17 am Birth: $0.00
Today: undisclosed
I don't understand people who are either braggadocios or unconcerned enough to tell an online forum your net worth, even in the most general terms.
The former makes the claim less believable and the latter makes me worry for these folks in this age of internet scams and worse.
- Fri Jan 19, 2024 9:52 am
- Forum: Investing - Theory, News & General
- Topic: How to prove that I am not losing money with bond funds?
- Replies: 118
- Views: 14641
Re: How to prove that I am not losing money with bond funds?
Assuming you haven’t sold out of the bond fund and have dividends set to reinvest, just look at the amount of capital you’ve put in vs your current balance
- Fri Jan 19, 2024 4:19 am
- Forum: Investing - Theory, News & General
- Topic: What Role/Purpose Do Bonds Play in Your Portfolio
- Replies: 55
- Views: 5372
Re: What Role/Purpose Do Bonds Play in Your Portfolio
Virtually no role as I am 100% stocks. At times, I may sell some of my individual stocks and I will move the cash into SGOV while I wait to deploy it, but that’s it.
The zero interest rate environment never made sense to me as a bond investor. Unless you were at the very short end of the curve, you were accepting massive and one sided interest rate risk while having very low returns. It was a horrible investment decision.
The zero interest rate environment never made sense to me as a bond investor. Unless you were at the very short end of the curve, you were accepting massive and one sided interest rate risk while having very low returns. It was a horrible investment decision.
- Thu Jan 18, 2024 6:52 pm
- Forum: Investing - Theory, News & General
- Topic: At what invested net worth do contributions start to matter less?
- Replies: 48
- Views: 8281
Re: At what invested net worth do contributions start to matter less?
I am not sure if I fully follow but one way to look at it would be as a %
For example, if your portfolio is 100% and you expect it to generate a 7% annual return if your portfolio contribution is only 1% then clearly you are expecting 7x as much wealth accumulation to come from returns vs savings (although the savings even though 1% will compound over time)
In $ figure it could look something like $1M portfolio expected to generate $70,000 a year from returns and you are contributing $10,000 a year. The $10,000 a year is helpful but the growth of the portfolio is much more material.
Only you can determine how you define "largely" but I imagine more than half would qualify as "largely"
For example, if your portfolio is 100% and you expect it to generate a 7% annual return if your portfolio contribution is only 1% then clearly you are expecting 7x as much wealth accumulation to come from returns vs savings (although the savings even though 1% will compound over time)
In $ figure it could look something like $1M portfolio expected to generate $70,000 a year from returns and you are contributing $10,000 a year. The $10,000 a year is helpful but the growth of the portfolio is much more material.
Only you can determine how you define "largely" but I imagine more than half would qualify as "largely"
- Thu Jan 11, 2024 10:28 am
- Forum: Personal Investments
- Topic: Real estate as % of net worth?
- Replies: 53
- Views: 6421
Re: Real estate as % of net worth?
- Thu Jan 11, 2024 9:03 am
- Forum: Personal Investments
- Topic: Real estate as % of net worth?
- Replies: 53
- Views: 6421
Re: Real estate as % of net worth?
Do you mean your home value is 16% of your net worth or the equity in your home is 16% of your net worth?
- Thu Jan 11, 2024 8:58 am
- Forum: Personal Investments
- Topic: Real estate as % of net worth?
- Replies: 53
- Views: 6421
Re: Real estate as % of net worth?
I posted a similar topic a while back and didn’t get responses I expected. I imagine you will find the same OP. As for me, I would put investment properties to the side and think of them as part of your AA. As far as a first and/or second home goes, I think of it in a couple of ways: 1) I always want the asset side of my balance sheet for my overall NW (stocks, bonds, homes, etc) to be 3x the liability side, so I keep this in mind when deciding how much house to buy 2) I work backwards as to how owning real estate will impact my retirement decision. For me, I want to eventually own about $13M in total real estate First home of $10M Second home driving distance $2.5M Shared home in Mexico $500k The annual carrying cost of that if owned outri...
- Sun Jan 07, 2024 8:17 am
- Forum: Personal Consumer Issues
- Topic: Help with Northern/Central Cali itinerary in Summer
- Replies: 10
- Views: 762
Re: Help with Northern/Central Cali itinerary in Summer
Lake Tahoe is one of the most beautiful places in the world. Highly recommend going there if you are a fan of natural beauty and outdoor activities.
Carmel is also beautiful and can head down the coast and see Big Sur after. Have a meal or a drink at The Bench overlooking the Carmel bay and the 18th hole of Pebble Beach.
Based on your description, I would probably do something like the following (in this order):
Tahoe
Napa Valley / Healdsburg
Tiburon / Saulsito (even if just for a day or a meal) and then SF which is right there
Carmel / Big Sur
Down the coast to San Luis Obispo
Yosemite is great but it’s pretty far out of the way
If are going to Tahoe, it would be easiest to fly into Reno and start with Tahoe
Carmel is also beautiful and can head down the coast and see Big Sur after. Have a meal or a drink at The Bench overlooking the Carmel bay and the 18th hole of Pebble Beach.
Based on your description, I would probably do something like the following (in this order):
Tahoe
Napa Valley / Healdsburg
Tiburon / Saulsito (even if just for a day or a meal) and then SF which is right there
Carmel / Big Sur
Down the coast to San Luis Obispo
Yosemite is great but it’s pretty far out of the way
If are going to Tahoe, it would be easiest to fly into Reno and start with Tahoe
- Mon Jan 01, 2024 11:03 am
- Forum: Personal Finance (Not Investing)
- Topic: Looking to buy 2nd home in VHCOL, can we afford?
- Replies: 23
- Views: 2956
Re: Looking to buy 2nd home in VHCOL, can we afford?
If I was in your situation, I would not put down a $3 million downpayment on a home and I wouldn’t do a 30 year fixed. I would put down closer to $1.5M and then do a 7 or 10 year IO. $3M really crushes your portfolio value, and your portfolio should return higher than the mortgage rate over the years.
With incentives for moving over assets you should be able to get a 7 or 10 year IO for 5.5% or a bit better.
$3M mortgage at 5.5% IO = $13,750 a month
You’ll likely have a chance to refi that lower in the next several years.
With incentives for moving over assets you should be able to get a 7 or 10 year IO for 5.5% or a bit better.
$3M mortgage at 5.5% IO = $13,750 a month
You’ll likely have a chance to refi that lower in the next several years.
- Sun Dec 31, 2023 8:56 am
- Forum: Personal Finance (Not Investing)
- Topic: Share your net worth progression
- Replies: 4273
- Views: 1072547
Re: Share your net worth progression
2023: $20MLFKB wrote: ↑Fri Dec 31, 2021 11:13 pm2008: $40k (graduated college)
2009: $100k
2010: $200k
2011: $400k
2012: $620k
2013: $850k
2014: $1.15M
2015: $1.6M (got married)
2016: $2.1M
2017: $2.8M
2020: $11M
2021: $17M
- Sat Dec 30, 2023 10:33 am
- Forum: Investing - Theory, News & General
- Topic: Can someone explain to me what's actually driving returns?
- Replies: 77
- Views: 12262
Re: Can someone explain to me what's actually driving returns?
I've heard all the classic examples of what drives long term, positive returns for stock market indexes. Population growth, inflation, innovation, GDP growth, etc. But the other day I listened to a podcast from Ben Felix that showed multiple studies proving that GDP growth usually does not equate to positive stock market returns, even over time. Examples used were China(30 years of large GDP growth yet flat stocks) and some other countries. With this being the case, what is the actual fundamental driver of stock returns, I know inflation plays a part, but I always thought the main driver was companies becoming more efficient/profitable and the overall economy becoming better. If this is not true, then what am I really investing in? Can som...
- Sat Dec 30, 2023 7:51 am
- Forum: Personal Finance (Not Investing)
- Topic: What was your largest annual expense in 2023?
- Replies: 21
- Views: 1643
Re: What was your largest annual expense in 2023?
I would guess travel at around $100k
- Thu Dec 28, 2023 9:35 pm
- Forum: Personal Investments
- Topic: Does anyone here have experience with Exchange Funds for capital gains avoidance
- Replies: 15
- Views: 2442
Re: Does anyone here have experience with Exchange Funds for capital gains avoidance
You take individual equity positions you have that have large capital gains and rather than sell them, you exchange them for a managed index fund and do not have to sell and realize capital gains You do not get a step up in basis, but you get the benefit of avoiding selling the individual stocks and paying capital gains to then reallocate into an S&P500 or other index fund I have some significant gains in some stocks I hold that would make this appealing So for example: Let's say I own $500k of Apple ($100k cost basis / $400k gain) Using the Exchange Fund, I would "swap" my $500k of Apple for a managed fund that tracks the S&P500 and have $500k in that fund. My cost basis is still my original $100k but I have diversified ...
- Wed Dec 27, 2023 11:06 am
- Forum: Personal Investments
- Topic: % in cash?
- Replies: 35
- Views: 3724
Re: % in cash?
OP, what do you want to do with the cash? OP is in Vanguard settlement fund, which is essentially the same as short term treasuries. He is not really in cash. If OP had said he was in SGOV (0-3 month treasury fund) instead of settlement fund the responses would have been far different, even though they’re pretty much the same. That depends on what the individual's definition of "cash" is. Some refers "cash" as anything that's liquid which then includes money in bank account, MMF, and etc. Some refers "cash" to the actual money notes, which then the above are not "cash". Some refers "cash" to only money in bank account. Therefore your statement of "he is not really in cash" is not ...
- Wed Dec 27, 2023 6:39 am
- Forum: Personal Investments
- Topic: % in cash?
- Replies: 35
- Views: 3724
Re: % in cash?
OP is in Vanguard settlement fund, which is essentially the same as short term treasuries. He is not really in cash.
If OP had said he was in SGOV (0-3 month treasury fund) instead of settlement fund the responses would have been far different, even though they’re pretty much the same.
- Wed Dec 27, 2023 12:32 am
- Forum: Personal Investments
- Topic: Does anyone here have experience with Exchange Funds for capital gains avoidance
- Replies: 15
- Views: 2442
Re: Does anyone here have experience with Exchange Funds for capital gains avoidance
You take individual equity positions you have that have large capital gains and rather than sell them, you exchange them for a managed index fund and do not have to sell and realize capital gains You do not get a step up in basis, but you get the benefit of avoiding selling the individual stocks and paying capital gains to then reallocate into an S&P500 or other index fund I have some significant gains in some stocks I hold that would make this appealing So for example: Let's say I own $500k of Apple ($100k cost basis / $400k gain) Using the Exchange Fund, I would "swap" my $500k of Apple for a managed fund that tracks the S&P500 and have $500k in that fund. My cost basis is still my original $100k but I have diversified ...
- Sat Dec 23, 2023 12:04 am
- Forum: Personal Investments
- Topic: Are any of you hidding the fact that you are rich\wealthy?
- Replies: 8
- Views: 2151
Re: Are any of you hidding the fact that you are rich\wealthy?
I’m decently rich and late 30s. Haven’t posted on social media for several years, but could spam [profanity removed - moderator ClaycordJCA] with a lot of cool pics and videos if I wanted to. People who know me well know I live a good lifestyle, but those that don’t know me well have no idea. I would say 99% of people making a point to flaunt their life on social media are living beyond their means. Best for you to ignore it and live your life.
- Fri Dec 22, 2023 11:36 am
- Forum: Personal Investments
- Topic: Young, high net worth and potentially retiring
- Replies: 48
- Views: 8346
Re: Young, high net worth and potentially retiring
Curious how the $390k breaks down. Expect to be in similar waters in my 50s and wondering what kind of lifestyle creep I should be planning for. The biggest spends are credit cards (i.e. general spending) of $198k, property tax of $77k, common charges in my apartment building of $56k, and maid services of $21k. Your taxable investments will be generating taxable interest and dividends. The numbers could be all over the place but I would not be surprised if you ended up paying in the ballpark of $100K a year in federal and state income taxes on those. You need to research what you might be paying in income taxes and budget for the taxes just like any other expense. The good news is that at the current interest rates the interest and dividen...
- Thu Dec 21, 2023 4:09 pm
- Forum: Investing - Theory, News & General
- Topic: Bonds in Portfolio? Why...I am so confused
- Replies: 388
- Views: 88408
Re: Bonds in Portfolio? Why...I am so confused
Good Afternoon, I am so confused on why I should invest in bonds (VBTLX) and I am looking at the Vanguard Total Bond Market Index Fund or VBTLX which is suggested as part of the 3 fund portfolio. When I look at the life return of this fund its down -1.76 for 1 year, its down -8.59% for 5 years and its down -7.34% for the life of the fund :shock: I guess I am not sure the role a bond fund is supposed to play in a portfolio but I always assumed that the money parked there would be money you get very small returns on and use that portion of your portfolio to withdraw annually or a small portion of it annually. Lets just say that I wanted 10% bond exposure and 90% equities....why not take that 10% bond and move it to cash if funds like this lo...
- Thu Dec 21, 2023 4:01 pm
- Forum: Personal Investments
- Topic: Young, high net worth and potentially retiring
- Replies: 48
- Views: 8346
Re: Young, high net worth and potentially retiring
Curious how the $390k breaks down. Expect to be in similar waters in my 50s and wondering what kind of lifestyle creep I should be planning for. The biggest spends are credit cards (i.e. general spending) of $198k, property tax of $77k, common charges in my apartment building of $56k, and maid services of $21k. Your taxable investments will be generating taxable interest and dividends. The numbers could be all over the place but I would not be surprised if you ended up paying in the ballpark of $100K a year in federal and state income taxes on those. You need to research what you might be paying in income taxes and budget for the taxes just like any other expense. The good news is that at the current interest rates the interest and dividen...
- Thu Dec 21, 2023 8:56 am
- Forum: Personal Finance (Not Investing)
- Topic: Tempting 7-figure job offer (FAANG vs AI startup)
- Replies: 93
- Views: 13182
Re: Tempting 7-figure job offer (FAANG vs AI startup)
The company is worth 8x today what it was a year ago, so that $22M equity over four years can easily become $2.75M. On the flip side, it could also triple. Good thing is OP doesn’t seem to need or even want the money.YeahBuddy wrote: ↑Tue Dec 19, 2023 9:46 pm Wow! This is one of the most lucrative situations I've seen posted here. A really great problem to have, congrats!
Since you are currently undecided, I think the biggest deciding factor for me would be what the spouse thinks. Is spouse OK with this and ready for a major change in your relationship for the next 4 years? Is spouse ready to support you in this endeavor?
I'm now going to share this successful story with my 8th grade aspiring engineer! Keep us updated!
- Thu Dec 21, 2023 8:03 am
- Forum: Personal Finance (Not Investing)
- Topic: Tempting 7-figure job offer (FAANG vs AI startup)
- Replies: 93
- Views: 13182
Re: Tempting 7-figure job offer (FAANG vs AI startup)
I don't have a clue what you should do but one thing I would suggest is that you rework all your numbers in after tax dollars to see what the various options would pay after taxes since that is what really counts. A positive aspect of this startup is that they understand the tax implications well so they provide 83(b) election with no immediate tax implications to employees upon grant, and by the time the equity vests it will all be treated as long term capital gain, once a liquidation opportunity arises. But given the huge variability in outcome, it makes little sense to consider taxes at this point. It’s very likely that the financial outcome will be binary: either a solid $0 or some pre-tax multiple of the $5.5M per year. There are too ...
- Wed Dec 20, 2023 9:34 pm
- Forum: Personal Investments
- Topic: SGOV; alternatives?
- Replies: 10
- Views: 1171
Re: SGOV; alternatives?
SGOV is about as safe as it gets. It accumulates a dividend over the month and then pays it out, so the stock price will drop at the ex dividend date. Go look at a historical chart of it from last 12 months and you’ll understand how it works.
- Wed Dec 20, 2023 9:34 pm
- Forum: Personal Investments
- Topic: SGOV; alternatives?
- Replies: 10
- Views: 1171
Re: SGOV; alternatives?
SGOV is about as safe as it gets. It accumulates a dividend over the month and then pays it out, so the stock price will drop at the ex dividend date. Go look at a historical chart of it from last 12 months and you’ll understand how it works.
- Wed Dec 20, 2023 7:57 pm
- Forum: Personal Finance (Not Investing)
- Topic: how much do you think you need to retire?
- Replies: 279
- Views: 56559
Re: how much do you think you need to retire?
Around $30 million
Probably would look something like:
$15M in owned real estate for a first and second home
$7.5M of mortgages
$22.5M invested in taxable and tax advantaged
Probably would look something like:
$15M in owned real estate for a first and second home
$7.5M of mortgages
$22.5M invested in taxable and tax advantaged
- Wed Dec 20, 2023 11:31 am
- Forum: Personal Finance (Not Investing)
- Topic: Tempting 7-figure job offer (FAANG vs AI startup)
- Replies: 93
- Views: 13182
Re: Tempting 7-figure job offer (FAANG vs AI startup)
What is the purpose of money for you? If you’re spending $50k today even if you double of tripled your spending you’re financially independent. If you don’t have a real purpose for the money then just do whatever job you think will me more fulfilling (however you define that). If you’re trying to maximize your wealth then you also need to ask yourself if the $84 billion valuation for your company (guessing) is realistic or not because almost all of your comp is coming in stock that could go down significantly given the company has very little revenue and a massive valuation today. The company already has over $1B in revenue, and it’s growing at 30% QoQ . That is roughly tripling the revenue after 12 months. What kind of multiple would you ...
- Wed Dec 20, 2023 10:34 am
- Forum: Personal Investments
- Topic: Young, high net worth and potentially retiring
- Replies: 48
- Views: 8346
Re: Young, high net worth and potentially retiring
Hi folks, I am considering a potential retirement at a young age. It's not guaranteed I will retire, but the odds are high enough that I wanted to ask some questions about it. Much thanks in advance for any advice you all have. To start, my financial situation is as follows: Age: self 43, spouse 43, son 10, son 7 Assets: Taxable: $17M Tax-advantaged: $1M Real Estate: $7M Debt: Mortgage: $3M at 2% fixed rate for the next 5 years, floating thereafter Spending: $650k/year from years 0 to 5 $500k/year from years 5 to 15 (mortgage paid off and no longer needing nanny) $390k/year after year 15 (no longer paying for private school or college) Within 5 years, I expect to pay off the mortgage, leaving invested assets of $15M and real estate of $7M ...
- Tue Dec 19, 2023 10:37 pm
- Forum: Personal Finance (Not Investing)
- Topic: Tempting 7-figure job offer (FAANG vs AI startup)
- Replies: 93
- Views: 13182
Re: Tempting 7-figure job offer (FAANG vs AI startup)
What is the purpose of money for you? If you’re spending $50k today even if you double of tripled your spending you’re financially independent. If you don’t have a real purpose for the money then just do whatever job you think will me more fulfilling (however you define that).
If you’re trying to maximize your wealth then you also need to ask yourself if the $84 billion valuation for your company (guessing) is realistic or not because almost all of your comp is coming in stock that could go down significantly given the company has very little revenue and a massive valuation today.
If you’re trying to maximize your wealth then you also need to ask yourself if the $84 billion valuation for your company (guessing) is realistic or not because almost all of your comp is coming in stock that could go down significantly given the company has very little revenue and a massive valuation today.
- Sun Dec 17, 2023 9:20 am
- Forum: Investing - Theory, News & General
- Topic: 2024 Stock Returns Already Happened
- Replies: 27
- Views: 4491
Re: 2024 Stock Returns Already Happened
Cool. I’m sure they are 100% right like they always are.
- Tue Dec 12, 2023 9:12 pm
- Forum: Personal Investments
- Topic: Does it make sense to tilt to VGT/QQQ when S&P 500 already has a large tilt towards tech?
- Replies: 38
- Views: 4960
Re: Does it make sense to tilt to VGT/QQQ when S&P 500 already has a large tilt towards tech?
Let's say you want a 10% to 15% tilt towards VGT or QQQ in your portfolio. Does it make sense to add that tilt when Total US Market or S&P 500 is already heavily weighted towards technology stocks? For example, a $100,000 in VTI/VOO will already have about 30% or $30,000 in technology stocks. It seems like adding 10% - 15% in VGT/QQQ would just increase the tilt to 40% - 45% tech stocks. You would be making a heavy bet into the tech sector and substantially increasing risk. Am I getting that right? Second question would be what would happen if you were to add 10% to 15% small caps in that same portfolio? It would look something like this? 40% - S&P 500 15% - VGT or QQQ 15% - VB (small/mid caps) 20% - Total International Mkt. 10% - ...
- Tue Dec 12, 2023 1:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Fractional Real Estate Ownership - Thoughts?
- Replies: 95
- Views: 12288
Re: Fractional Real Estate Ownership - Thoughts?
Long time listener, first time caller here.... :happy In all seriousness, I've been an avid Boglehead for years and have learned a tremendous amount from this community. This is the first thread where I've felt that I have a (somewhat) unique perspective to share. I've been a Pacaso fractional share owner since late 2020. My high level takeaway has been that while this model certainly is not for everyone, it's been a perfect fit for my family. Some additional details...I live in the Bay Area and have 3 children under the age of 7. About 3 years ago, my wife and I decided that we'd like to have a second home that we could spend time at in wine country. However, I didn't want to fully own a second home as my parents had done that in Tahoe wh...