Search found 2706 matches

by MathWizard
Thu Feb 22, 2018 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Why open a taxable account?
Replies: 20
Views: 1292

Re: Why open a taxable account?

There are some people who make a very large amount of money want to save more than they can in 401Ks and IRAs. For others, their 401Ks have huge ERs, so a taxable account at Vanguard could be preferable. Not everyone can max their 401Ks and IRAs in their 20's. With current limits, it's amazing that ...
by MathWizard
Mon Feb 19, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 6741

Re: Sell me on the benefits of an emergency fund

The market closes for 6 months. No sales, no purchases. :twisted: You lose your job, no severance given. :twisted: Unemployment insurance pays 25% of your monthly expenses. :( How do you get cash? if the market ever closed for that long it would be the collapse of the financial system as we know it...
by MathWizard
Mon Feb 19, 2018 4:40 pm
Forum: Personal Consumer Issues
Topic: Best plants to grow to save money for food costs
Replies: 93
Views: 4886

Re: Best plants to grow to save money for food costs

Only grow the things you will eat (and usually a lot of it). When it gets ripe, you will either can it, or get inundated. We have downsized the garden from its heyday, due to the physical labor involved. Mainly tomatoes and asparagus. Tomatoes because they taste so much better than the store. Aspara...
by MathWizard
Mon Feb 19, 2018 2:52 pm
Forum: Personal Consumer Issues
Topic: Do you wear a wedding band? [at a job interview]
Replies: 157
Views: 9092

Re: Do you wear a wedding band? [at a job interview]

Yes. I wear one all the time, so it would be obvious of I didn't wear it, and would look like I was
trying to deceive. As the hiring manager, for an interviewee to do that would trigger alarm bells in me.

I rank trust as number 1. If I can't trust you, I can't hire you.
by MathWizard
Mon Feb 19, 2018 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Effect of spending money on appearance in career
Replies: 79
Views: 5775

Re: Effect of spending money on appearance in career

Don't burn bridges, but I would contact a recruiter, looking to move up. At the very least, you may get pointers on presenting yourself. And no, I am not talking about heels etc., I am talking about how you talk to people, and how you sell yourself, not your clothes. Maybe another company will find ...
by MathWizard
Mon Feb 19, 2018 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 6741

Re: Sell me on the benefits of an emergency fund

Op, You have money you can draw on in an emergency (your taxable investments). That is your Emergency Fund. The people who need an EF are those who have no liquid assets, which is a lot of people, but that does not seem to apply to the majority of people on this site. I do keep some in cash, really ...
by MathWizard
Sat Feb 17, 2018 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: What has been your most important skill in achieving financial independence?
Replies: 164
Views: 10684

Re: What has been your most important skill in achieving financial independence?

Thinking longterm

Increase income potential.

Reduce amount of interest paid.

Make savings automatic
by MathWizard
Fri Feb 16, 2018 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: How to get child's skin in the game for college?
Replies: 135
Views: 6470

Re: How to get child's skin in the game for college?

Hello, I have two different issues that I need help with. Our dd is 17 and has already secured admission in local public university and will start college in Fall 2018. We have about 3.5 years of her undergrad tuition+room&board saved as of today. My husband wants to only pay 3 years of her college...
by MathWizard
Thu Feb 15, 2018 6:01 pm
Forum: Investing - Theory, News & General
Topic: Quick question how to use cape10 to estimate returns
Replies: 9
Views: 549

Re: Quick question how to use cape10 to estimate returns

I believe that the earnings in CAPE are already adjusted for inflation, which make sense. Look at https://en.wikipedia.org/wiki/Cyclically_adjusted_price-to-earnings_ratio for a definition and for the arguments for and against its predictive power. I have read papers that suggest that the inverse of...
by MathWizard
Wed Feb 14, 2018 12:39 pm
Forum: Personal Consumer Issues
Topic: rule of thumb of when to sell your car
Replies: 50
Views: 3393

Re: rule of thumb of when to sell your car

I've only sold one car for over $1000. There are usually on their last legs, and go to the junk dealer from whom I get about $200. The one car I sold for over $1000 was a restored first model year Camaro Rally Sport. I sold it to get money for a more practical car when I went to grad school. My wife...
by MathWizard
Wed Feb 14, 2018 12:20 pm
Forum: Investing - Help with Personal Investments
Topic: When to pay off debt instead of invest?
Replies: 27
Views: 1241

Re: When to pay off debt instead of invest?

The big issue is cash-flow. It sounds like you have a very positive cash-flow, so paying down the mortgage rather than investing in a taxable account is the way that I would go in that situation. You pay tax on anything you make in the taxable account, ans since you said that you are not getting a t...
by MathWizard
Tue Feb 13, 2018 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: Gut check: is this lifestyle creep?
Replies: 37
Views: 5461

Re: Gut check: is this lifestyle creep?

Yes it could be, but one-time expenses would not be. For example, paying off a home with it to save interest, or buying a new high efficiency furnace which would save you money later. Remember that only a part of that $40K is yours. Quite a bit will likely go to taxes. I always wait one month to see...
by MathWizard
Tue Feb 13, 2018 4:59 pm
Forum: Personal Consumer Issues
Topic: Do you think it is worth the money to travel to warm weather destinations during the winter?
Replies: 77
Views: 6409

Re: Do you think it is worth the money to travel to warm weather destinations during the winter?

During winter months, I visit a botanical center once or twice.

Nice to walk around a " outside in a forest" without the winter jacket
in Feb.

Pretty inexpensive.
by MathWizard
Tue Feb 13, 2018 4:27 pm
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 110
Views: 9870

Re: What if you only live off dividends?

In the 1940 to 1990 the dividend yield of the S&P 500 was in the 3-6% range. In the 90's, likely due to tax treatment of capital gains vs. dividends for those who were wealthy and had the most stocks drove a move away from dividends, and hence to capital gains. So in the past, the retained earnings ...
by MathWizard
Mon Feb 12, 2018 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Family expecting “comps”
Replies: 38
Views: 4724

Re: Family expecting “comps”

Sorry to hear this. This does not happen in my family. If it's their business, I prefer to pay full price. That way there is no pressure on them. I'll go out of my way to do business with them if it does not strain my budget to help a family member get started, even for something I could get cheaper...
by MathWizard
Mon Feb 12, 2018 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Lower Payroll Withholding - What are you doing with it?
Replies: 32
Views: 2297

Re: Lower Payroll Withholding - What are you doing with it?

Increased retirement withholding from $2,250.00 per month to $2,291.66 to take advantage of the new ceiling for 403b annual contributions which increased from $27,000 to $27,500 with the new tax bill. Wait, what? I'm only contributing $18,500 to my 403(b) this year, not including the school's match...
by MathWizard
Sat Feb 10, 2018 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: Help - why do I owe so much in taxes this year
Replies: 17
Views: 3265

Re: Help - why do I owe so much in taxes this year

Your total tax went from 16.8k to 17.5k which seems logical or even low for an increase in $6k of taxable income. I'm sure if you tell us every number on your 1040 people can explain in more detail. Your real problem was that you had $3k less withheld which is a different question altogether than w...
by MathWizard
Sat Feb 10, 2018 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Can’t decide if we’re getting close to FIRE without knowing health care costs
Replies: 30
Views: 2268

Re: Can’t decide if we’re getting close to FIRE without knowing health care costs

Check with your benefits office. If you've worked there long enough, maybe there is a way you can stay in the group plan. My employer has something similar to Cobra if you've been employed and in the health plan for at least 15 consecutive years. You can stay on the group plan, paying the entire ins...
by MathWizard
Thu Feb 08, 2018 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: Budget and Savings
Replies: 5
Views: 572

Re: Budget and Savings

Welcome to the forum. Other people may give you tips, but I'd say that you are doing well. Since you have little ones in diapers, you must not be very old. Very few couples can maxing out your tax advantaged and IRAs while still young. Kudos. We've only been able to do so once our last child was in ...
by MathWizard
Thu Feb 08, 2018 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: What Investments are Inversely Correlated with US Stocks?
Replies: 14
Views: 1136

Re: What Investments are Inversely Correlated with US Stocks?

RRAAYY3 wrote:
Thu Feb 08, 2018 7:16 pm
Cash :moneybag :sharebeer
+1 You beat me to it.
by MathWizard
Thu Feb 08, 2018 7:12 pm
Forum: Investing - Theory, News & General
Topic: NYT: "84 percent of all stocks owned by Americans belong to the wealthiest 10 percent"
Replies: 14
Views: 1816

Re: NYT: "84 percent of all stocks owned by Americans belong to the wealthiest 10 percent"

If you are nearing retirement, and on this board, you are probably among the wealthiest 10% . 3/4 of a million household net worth for a 2 person household puts you in the 90th percentile according to http://wealthometer.org/US/calculator2.html#ergebnis1 3/4 of a million is not much to retire on if ...
by MathWizard
Thu Feb 08, 2018 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Why does my wife have this portfolio?
Replies: 32
Views: 3762

Re: Why does my wife have this portfolio?

I'm not sure you will have lots of success. At a recent get together, my wife's older siblings were talking about retirement, and all of them talked about how good their guy was. I got my wife started in investing, and she has seen how well my choices have done, so she was willing to trust me. Havin...
by MathWizard
Mon Feb 05, 2018 1:28 pm
Forum: Personal Consumer Issues
Topic: Internet Speed 15Mbps okay ?
Replies: 27
Views: 1914

Re: Internet Speed 15Mbps okay ?

I was at 15Mbps and Netflix worked fine even with 2 HD going at once. Be careful of running into low monthly data caps at lower speeds, though. The cable internet started imposing a data cap which we exceeded most months, which was costing us an extra $10/month. We increased to 50 Mbps which also do...
by MathWizard
Fri Feb 02, 2018 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: How to Value Multiple Offers
Replies: 8
Views: 659

Re: How to Value Multiple Offers

What does pension at 8% mean? A) Is this 8% of salary for every year worked? B) Is it pay 8% of salary every year to get a pension of XX% of final salary? Assuming A), I'd go for Job option #2. Less of a commute, slightly higher 401K match, and pension is more valuable than retiree health benefits. ...
by MathWizard
Thu Feb 01, 2018 7:32 pm
Forum: Investing - Theory, News & General
Topic: "Index funds will, by their very definition, return the benchmark and be the median return."
Replies: 22
Views: 2404

Re: "Index funds will, by their very definition, return the benchmark and be the median return."

Dear BHs, The above statement was made by someone (wall street person) who manages and controls retirement plan assets for a company, expressing the idea that there is no clear winner between Active Funds and Passive Funds when one of the employees asked index funds to be added to the fund mix. I d...
by MathWizard
Wed Jan 31, 2018 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: Doubling of Standard Deduction--Really??
Replies: 56
Views: 7016

Re: Doubling of Standard Deduction--Really??

boater07 wrote:
Wed Jan 31, 2018 1:17 pm
I'm all for tax simplification but I shudder when I hear that statement.
The elimination of the standard exemptions of $8100 certainly reduces the benefit.
What am I missing??
Bunching 2 years of deductions strategy no longer works for me.
by MathWizard
Wed Jan 31, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Make $90k, pay no Federal Income Tax in 2018? Check / critique this scenario.
Replies: 71
Views: 10615

Re: Make $90k, pay no Federal Income Tax in 2018? Check / critique this scenario.

As livesoft points out, you are “wasting” some child tax credits. If I were you, I would redirect some of the tIRA contributions to Roth to the extent you would use all the unused (800+/-) child tax credit. +1. Definitely put some or all of IRA in ROTH. A double advantage of the ROTH is that you ca...
by MathWizard
Tue Jan 30, 2018 1:44 pm
Forum: Investing - Theory, News & General
Topic: If you're really rich you're probably not an index-fundi Boglehead
Replies: 61
Views: 10925

Re: If you're really rich you're probably not an index-fundi Boglehead

I'm not sure why life insurance is an asset. Is this whole life with a cash value component? It certainly can't be term, since that just provides cash if you die. Similar to another poster said, three of the funds in my portfolio are more than my (paid off) house. Almost all of my investments are wo...
by MathWizard
Mon Jan 29, 2018 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: How much have kids added to your personal finance/expenses?
Replies: 111
Views: 8213

Re: How much have kids added to your personal finance/expenses?

Housing is one of the bigger expenses. You and your wife could live in a small apartment close to your job and save on commute, and housing cost. Once you have kids, you look for more room, a nice yard, close to schools and playgrounds, in good school districts. Limited supply means higher prices. I...
by MathWizard
Mon Jan 29, 2018 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: Opinions sought on insuring my wife
Replies: 14
Views: 945

Re: Opinions sought on insuring my wife

Yes. I would calculate whether $500K would be enough. I got discounts at $250K and $500K. I do not have the situation that you have, but still insured my spouse for $100K, and would have for $250K but she did not want to go that high. The cost of $100K was easily justifiable. For me, the process of ...
by MathWizard
Mon Jan 29, 2018 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: How do you decide how wealthy you really are?
Replies: 58
Views: 7940

Re: How do you decide how wealthy you really are?

I discount the stock portion of my equity allocation by the amount that the P/E ratio (or you could use PE10 if you prefer) is greater than the S&P long term average of about 16. The current PE is about 24, so 16/24 is 2/3, so I need to discount my (US) stock allocation by 1/3 . This is what it wou...
by MathWizard
Fri Jan 26, 2018 3:10 pm
Forum: Investing - Theory, News & General
Topic: 401k millionaires
Replies: 158
Views: 23679

Re: 401k millionaires

You know, I always hated the term 401K millionaires. It seems as if it implies that they are not "real" millionaires Yes, it is taxed when it comes out, but so would individual stocks with capital gains. If you have the income and the ability contribute to tax advantaged accounts (without exorbitan...
by MathWizard
Thu Jan 25, 2018 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: When to claim Social Security: two reasons not to wait
Replies: 19
Views: 3106

Re: When to claim Social Security: two reasons not to wait

... Whereas I see much Boglehead discussion about the benefit to waiting until age 70 to claim, I don't see much discussion of 'hold harmless' and trust fund depletion. So is this guy onto something? Or not? I have a few years before I can claim, but the discussion may help persons age 62+. Not rea...
by MathWizard
Thu Jan 25, 2018 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: How do you decide how wealthy you really are?
Replies: 58
Views: 7940

Re: How do you decide how wealthy you really are?

I discount the stock portion of my equity allocation by the amount that the P/E ratio (or you could use PE10 if you prefer) is greater than the S&P long term average of about 16. The current PE is about 24, so 16/24 is 2/3, so I need to discount my (US) stock allocation by 1/3. This is what it would...
by MathWizard
Thu Jan 25, 2018 12:27 pm
Forum: Investing - Theory, News & General
Topic: 401k millionaires
Replies: 158
Views: 23679

Re: 401k millionaires

You know, I always hated the term 401K millionaires. It seems as if it implies that they are not "real" millionaires Yes, it is taxed when it comes out, but so would individual stocks with capital gains. If you have the income and the ability contribute to tax advantaged accounts (without exorbitant...
by MathWizard
Wed Jan 24, 2018 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Your bond allocation when you were 48
Replies: 125
Views: 6042

Re: Your bond allocation when you were 48

100-0. We are in the greatest secular bull market of our investing lifetime right now chief But are you not worried that the party will end (who knows when)? Or do you have plenty of time still to recover? When will you switch over to some sorta bond allocation. The bravado of some of these 100% eq...
by MathWizard
Wed Jan 24, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: In what ways could BogleHeads be badly wrong ?
Replies: 237
Views: 20603

Re: In what ways could BogleHeads be badly wrong ?

The basic premise that, on average, keep costs low when investing in a diversified portfolio of stocks, really can't be wrong. This just depends on the definition of average return. The concept of investing in stocks in the first place assumes that capital is important, and that companies care about...
by MathWizard
Wed Jan 24, 2018 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: 22 yo with 70k new to investing with almost entire salary going towards savings
Replies: 22
Views: 2148

Re: 22 yo with 70k new to investing with almost entire salary going towards savings

My only advice is to be good to your parents.
You are truly blessed, (or as Warren Buffett puts it "You won the ovarian lottery".)
by MathWizard
Wed Jan 24, 2018 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Working in the real world
Replies: 118
Views: 8813

Re: Working in the real world

I've been accused so many times on this board that I am flat out lying about either my job title or salary (that it is unrealistically low ) so many times that I lost count. I'm a director in a health products company that is the largest employer in the industry (~4k employees). At 36, I am the 2nd...
by MathWizard
Wed Jan 24, 2018 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: Working in the real world
Replies: 118
Views: 8813

Re: Working in the real world

Wanted to chime in on this interesting thread. Wife and I are early 30s, living in a Midwest state very close to Ohio. We live back in our hometown after being away for 7 years while I was active duty. Separated and now am a Full Time National Guardsmen, so government employee. Wife is an nurse who...
by MathWizard
Wed Jan 24, 2018 3:03 pm
Forum: Personal Consumer Issues
Topic: Still using a 5 year old iphone 5. Who's with me? No new phones!!!
Replies: 151
Views: 8530

Re: Still using a 5 year old iphone 5. Who's with me? No new phones!!!

2 iPhone 4s' ,

I use my iPhone for work and an 18 month old Nexus 5x for Google Fi.

We may switch my wife to Google Fi and ditch the home phone, or try OOma first.
(I like Vonage but the monthly cost has really gone up.)
by MathWizard
Tue Jan 23, 2018 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Working in the real world
Replies: 118
Views: 8813

Re: Working in the real world

A quick google search returns: The U.S. Census Bureau reported in September 2017 that real median household income was $59,039 in 2016, exceeding any previous year. This board is about investing, so these are people who have the money and the inclination to invest. This naturally skews the income to...
by MathWizard
Tue Jan 23, 2018 1:28 pm
Forum: Investing - Theory, News & General
Topic: Kitces article: A cash bucket in retirement? Nope
Replies: 150
Views: 11893

Re: Kitces article: A cash bucket in retirement? Nope

Approaching retirement. I plan to have some cash (short-term spending money) in retirement in the same way I have a first tier EF today. Somewhere in the range of 3-6 months of base expenses. This will act as a buffer for larger yearly expenses (e.g. property tax, insurance bills), and provide me en...
by MathWizard
Mon Jan 22, 2018 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for first job with benefits at 28
Replies: 7
Views: 575

Re: Advice for first job with benefits at 28

I suggest funding the ROTH IRA for 2017 (you have until tax day to do so). You can use money from your Emergency Fund to put into the ROTH if need be, since you can withdraw all your contributions at any time. This way, any money you make on your EF is tax-free and goes towards retirement. I used th...
by MathWizard
Mon Jan 22, 2018 5:56 pm
Forum: Investing - Theory, News & General
Topic: Expected earning in next 10 years
Replies: 12
Views: 1129

Re: Expected earning in next 10 years

I assume that is nominal, not real. If so, I suspect it is a little high, but not a lot. I expect more like 3% to 4.5% real from stocks, and lower from bonds, so with 2 to 2.5% inflation, so on the high end you might get to 6% on a 60/40. PE10 predicts the low end, but that I think that is somewhat ...
by MathWizard
Fri Jan 19, 2018 4:50 pm
Forum: Personal Consumer Issues
Topic: Do we need an emergency supplies kit (go bag)?
Replies: 65
Views: 5456

Re: Do we need an emergency supplies kit (go bag)?

You have two questions here: Do you need an emergency supply kit? Yes: You need one for your house in case of something like Sandy, in which you showed you could shelter in place. Yes, you need one for your car, at least in the winter, because you live in a cold climate, and could get stuck away fro...
by MathWizard
Fri Jan 19, 2018 2:36 pm
Forum: Personal Consumer Issues
Topic: Do we need an emergency supplies kit (go bag)?
Replies: 65
Views: 5456

Re: Do we need an emergency supplies kit (go bag)?

I don't have a go bag. I have emergency supplies in the car truck in case I get stuck in the snow (shovel, medical kit, tools jumper cables and jump pack, tire inflator, flashlight, duct tape, blanket, handwarmers and hard candy. I have water and LED lantern in the tornado shelter (under stairs). Li...
by MathWizard
Thu Jan 18, 2018 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Stats on When People Take Social Security
Replies: 197
Views: 14374

Re: Stats on When People Take Social Security

I have no input on how young people should plan on far off SS as that is political speculation . I would observe that all retirement planning is an exercise is successive approximation as time goes on. We agree. It's unfortunate that many base this decision, even those who are 62 and older, on thei...
by MathWizard
Thu Jan 18, 2018 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Stats on When People Take Social Security
Replies: 197
Views: 14374

Re: Stats on When People Take Social Security

First hit in a Google search: https://www.fool.com/retirement/general/2016/04/19/when-does-the-average-american-start-collecting-so.aspx "Data source: Center for Retirement Research. Using a weighted average of the data in this chart, we can approximate the average American's age when starting Soci...