Search found 2758 matches

by MathWizard
Sun Apr 22, 2018 10:00 am
Forum: Investing - Help with Personal Investments
Topic: How much does tinkering hurt returns?
Replies: 16
Views: 1433

Re: How much does tinkering hurt returns?

An index fund's low ER comes partially from minimal transaction costs, so if you have a lot of tinkering you may lose out on being in a low ER fund. The other part is chasing returns. If you believe in return to mean, then moving into a fund that outperformed would guarantee underperformance for a b...
by MathWizard
Fri Apr 20, 2018 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Undecided students and STEM majors
Replies: 51
Views: 3938

Re: Undecided students and STEM majors

No it is not the same everywhere. Both kids went into Engr. programs. Both declared a major, then switched. The first took longer because he switched to MIS in the Business college, and that added lots of Business College credits. The second switched to another Engr. major and graduated in 4 years p...
by MathWizard
Thu Apr 19, 2018 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Estimating Future College Costs
Replies: 18
Views: 1270

Re: Estimating Future College Costs

I was worried as H**L about college costs, only able to start saving for it when the older of my two kids was 12. (Our own college loans + house purchase) Beyond 15% in 401K, and maxing ROTHs, I saved about 1/4 of the cost of college. We just suspended ROTH contributions while the two kids were in c...
by MathWizard
Wed Apr 18, 2018 10:51 pm
Forum: Personal Consumer Issues
Topic: car at 80
Replies: 59
Views: 4183

Re: car at 80

We just bought a Buick, all of ours turn the light off automatically, and all have traction control which is really helpful when getting going on hard snow or ice. Many of the models we test drove had features like lane departure warning adaptive cruise These can be quite helpful, though we did not...
by MathWizard
Wed Apr 18, 2018 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: Are you keeping more in cash?
Replies: 31
Views: 4219

Re: Are you keeping more in cash?

No. We're actually a little low in cash right now, and building back up. Cash is just for the short term expenses, & first tier EF. I don't consider it a part of my investment portfolio, because I don't see it as providing a return above inflation. Something that does not earn a real return is not a...
by MathWizard
Tue Apr 17, 2018 5:57 pm
Forum: Personal Consumer Issues
Topic: car at 80
Replies: 59
Views: 4183

Re: car at 80

We just bought a Buick, all of ours turn the light off automatically, and all have traction control which is really helpful when getting going on hard snow or ice. Many of the models we test drove had features like lane departure warning adaptive cruise These can be quite helpful, though we did not ...
by MathWizard
Mon Apr 16, 2018 6:14 pm
Forum: Personal Consumer Issues
Topic: BH travel tips?
Replies: 145
Views: 8364

Re: BH travel tips?

If you wear glasses, bring along a backup pair (the pair you had before the current ones) in a hard plastic glasses case. On my last business trip, I stumbled, my glasses flew off, and my suitcase landed perfectly on them. Luckily this was heading home, and though the frames were badly bent, one len...
by MathWizard
Sun Apr 15, 2018 10:41 pm
Forum: Personal Consumer Issues
Topic: Mid-40s in tech - how to pass off as acceptably young
Replies: 111
Views: 9778

Re: Mid-40s in tech - how to pass off as acceptably young

Definitely contact a recruiter. They can give you better advice (and better leads) than we can.
by MathWizard
Sun Apr 15, 2018 10:38 pm
Forum: Investing - Theory, News & General
Topic: Angel investor breakfast
Replies: 19
Views: 2219

Re: Angel investor breakfast

I had breakfast this morning with a long-time family friend (and his son) who is a fairly accomplished angel investor. Over the past 20 years, his angel portfolio has delivered a ~30%+ return. His son, on the other hand, is a dyed-in-the-wool Boglehead (he put his bar mitzvah money in VOO) and thin...
by MathWizard
Sun Apr 15, 2018 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: What to do about withdrawal this year if market doesn't go up?
Replies: 32
Views: 2852

Re: What to do about withdrawal this year if market doesn't go up?

Why wouldn’t you sell shares as usual? If we are lucky, durong retirement many years are up and relatively few are down. However, if you have sufficient sssets to support your retirement, there seems no reason not to continue to sell asserts to fund your retirement expenses even when you confront a...
by MathWizard
Sat Apr 14, 2018 4:58 pm
Forum: Personal Consumer Issues
Topic: Is it necessary to replace brake fluid on a car every 3 years?
Replies: 56
Views: 3858

Re: Is it necessary to replace brake fluid on a car every 3 years?

I've never replaced Brake Fluid except for leaks, and topping up after brake change and beading the lines.

All cars were either GM , Dodge or Ford.
by MathWizard
Sat Apr 14, 2018 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6764

Re: Why traditional IRA better than Roth IRA

families normally don't move up in tax brackets when they retire. Except on this forum, of course, with our Prodigious Accumulators of Wealth. :wink: BHs are definitely not the norm. I feel like I'm on the low end of NW for my age on this board, even while being in the top 10% of wealth for the US.
by MathWizard
Wed Apr 11, 2018 9:22 pm
Forum: Investing - Theory, News & General
Topic: Why not annuitize most of portfolio?
Replies: 104
Views: 8034

Re: Why not annuitize most of portfolio?

Wanting to annuitize is a good argument for delaying SS benefits. We've been over this already. Max SS benefit at 70 is way less than $4000/month. If you need $10,000/month to carry on, then you gotta look elsewhere as well. Especially if you retire well before age 70... Sorry, missed the earlier c...
by MathWizard
Wed Apr 11, 2018 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Am I being unreasonable? [Send daughter to private kindergarten]
Replies: 70
Views: 3942

Re: Am I being unreasonable?

As much as I hold to 20% down, if faced with 20K per year
(It will never end, you'll pay for private K-12 then on to 60K tuition at a private University.

I would forgo the down payment, and put the 20K towards a house where you child can go to public school, and pay PMI.
by MathWizard
Wed Apr 11, 2018 7:17 pm
Forum: Investing - Theory, News & General
Topic: Why not annuitize most of portfolio?
Replies: 104
Views: 8034

Re: Why not annuitize most of portfolio?

Wanting to annuitize is a good argument for delaying SS benefits.
by MathWizard
Wed Apr 11, 2018 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6764

Re: Why traditional IRA better than Roth IRA

Your family member is wrong. Tax deferred is typically better because families normally don't move up in tax brackets when they retire. The general advice is 401k to match, then Roth, then back to 401k as long as 401k is not full of fees. This usually means you end up with lots of tax deferred, so h...
by MathWizard
Wed Apr 11, 2018 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 6764

Re: Why traditional IRA better than Roth IRA

Your family member is wrong. Tax deferred is typically better because families normally don't move up in tax brackets when they retire. The general advice is 401k to match, then Roth, then back to 401k as long as 401k is not full of fees. This usually means you end up with lots of tax deferred, so h...
by MathWizard
Sat Apr 07, 2018 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Parents have zero savings. What can I do?
Replies: 168
Views: 13911

Re: Parents have zero savings. What can I do?

Some people just like to complain. Maybe they have money, and just don't want anyone to know about it. They will have SS and Medicare, so they will not be destitute. You will have to put your family first, but that does not mean you have to completely abandon them. I would make sure that you have yo...
by MathWizard
Fri Apr 06, 2018 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: help! I want to treat heirs equally
Replies: 38
Views: 5269

Re: help! I want to treat heirs equally

I plan to even up any differences before I pass on. There are no do-overs from the
great beyond.
by MathWizard
Fri Mar 30, 2018 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: When did you know your kids would go to college?
Replies: 91
Views: 4051

Re: When did you know your kids would go to college?

I expected it once they started to learn to read. We read to them early and often, and made it fun. Then they started to read at an early age. When I KNEW was pretty early, probably about 3rd grade or 5th grade. This was based upon their standardized test scores, and reading level. Both were reading...
by MathWizard
Thu Mar 29, 2018 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: Should I loan my child money for college?
Replies: 73
Views: 5246

Re: Should I loan my child money for college?

Make sure that you and she fill out the FAFSA. You may be wrong about need based aid. Also, make sure that she applies for scholarships. There is a lot out there. Some are very specific: a few hundred to someone who is going into major X from my hometown. The pool of potential recipients can then be...
by MathWizard
Thu Mar 29, 2018 5:23 pm
Forum: Investing - Theory, News & General
Topic: Is 100% VTSAX (+ bonds) the best portfolio?
Replies: 14
Views: 1543

Re: Is 100% VTSAX (+ bonds) the best portfolio?

I'm back testing using portfolio visualizer and VTSAX with bonds (such as 80% VTSAX, 20% total bond) beats anything I throw at it. Is a 2-fund portfolio actually the best thing to do? Using tickers: https://www.portfoliovisualizer.com/backtest-portfolio Using asset classes: https://www.portfoliovis...
by MathWizard
Thu Mar 29, 2018 5:17 pm
Forum: Investing - Theory, News & General
Topic: What is the endgame for Millennials?
Replies: 128
Views: 8947

Re: What is the endgame for Millennials?

I wouldn't worry about them. My wife and I had a negative net worth into our mid 30's, which would be about where the age of the oldest millennials. a little over 20 years later, I have over a million invested. If my children and their friends are any indication, (1 Millennial, one just out of colle...
by MathWizard
Wed Mar 28, 2018 5:57 pm
Forum: Local Chapters and Bogleheads Community
Topic: A lot of heavy hitters this morning
Replies: 244
Views: 17196

Re: A lot of heavy hitters this morning

No matter what your position, if you are on this board, you are probably in the 1% of Americans. Comparison is the thief of joy I hear, but there is always someone who has more, and there are definitely a lot of folks who have a lot less. Be grateful, work hard, and invest early and often. Maybe no...
by MathWizard
Wed Mar 28, 2018 4:43 pm
Forum: Investing - Theory, News & General
Topic: Retirees: Do you spend all your "income"?
Replies: 46
Views: 4262

Re: Retirees: Do you spend all your "income"?

Not retired yet, but I expect to spend more than 100% before I turn 70 because I expect to defer SS benefits until age 70, and even more before my wife and I turn 65, since Medicare will not yet be available to me, and I'll need to use more of my savings to cover health insurance (and taxes on that ...
by MathWizard
Thu Mar 22, 2018 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Help my wife when I die.
Replies: 37
Views: 4214

Re: Help my wife when I die.

My guess is that as you get closer to retirement, your wife will take more of an interest, especially when she wants to see how close to the end of the rat race you are. You guys are going to outlive me, as you are about the age of my children. Neither is thinking about RMDs, but getting their caree...
by MathWizard
Tue Mar 20, 2018 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Home equity as part of retirement plan
Replies: 59
Views: 3590

Re: Home equity as part of retirement plan

House equity is the ultimate fallback plan. We expect to move to a place which is more senior friendly (no steps, smaller house to take care of, etc.) We will likely buy, but we may decide to rent in a place where someone takes care of the yard/building, or in assisted living, if we downsize when we...
by MathWizard
Mon Mar 19, 2018 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: Is it worth spending $1500 on a Planning Software?
Replies: 11
Views: 1135

Re: Is it worth spending $1500 on a Planning Software?

Not for me.

I make my own tools so that I understand all the assumptions.
by MathWizard
Mon Mar 19, 2018 7:26 pm
Forum: Investing - Theory, News & General
Topic: Could all of these "low expected returns over next 10 years" predictions be wrong?
Replies: 120
Views: 10882

Re: Could all of these "low expected returns over next 10 years" predictions be wrong?

The below is a link to a regular product from Yardeni Research, Inc.: https://www.yardeni.com/pub/mscipe.pdf At present, it indicates a Forward P/E for the US @ 17.3 This is consistent with the historical average of approx. 16, no? Or is Forward P/E not as reliable as the backward-looking 10 Year C...
by MathWizard
Sun Mar 18, 2018 6:36 pm
Forum: Investing - Theory, News & General
Topic: How much money can a CPA save you?
Replies: 52
Views: 5676

Re: How much money can a CPA save you?

In our case, it costs us more to use a CPA. We tried a CPA twice, each time the first year of a business. They didn't save us any money, but we wanted to make sure there we were filling out the correct forms. This was back when we did things by pencil and paper. We ended up getting more back the nex...
by MathWizard
Sun Mar 18, 2018 12:54 pm
Forum: Personal Consumer Issues
Topic: Bogleheads car buying strategies with new safety technologies
Replies: 71
Views: 4720

Re: Bogleheads car buying strategies with new safety technologies

I have not changed my habits yet, but am hoping to buy an autonomous car , perhaps as an off lease car in a few years. We are getting old enough, and keep cars long enough that we may need that, or lose the ability to get around easily. I did look at a Tesla, but minimum price for what I wanted was ...
by MathWizard
Sun Mar 18, 2018 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: no health insurance as an early retirement strategy
Replies: 30
Views: 2071

Re: no health insurance as an early retirement strategy

I could retire today if I ignored medical costs. When we get an explanation of benefits, one column if provider savings. Basically, the insurance says that's all we pay, and the clinic hospital accepts their payment, and we don't get a bill. On one recent surgery, we saw a bill of over $ 100K reduce...
by MathWizard
Sun Mar 18, 2018 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Do you rent even if you can afford to buy?
Replies: 82
Views: 9018

Re: Do you rent even if you can afford to buy?

We bought a house after I was out of grad school and had kids, but I advised my sons to rent until they have stable employment and probably until the have a family of their own. Once you have a spouse and kids, it's much harder to move anyway. Owning was better for us with kids, because bought a fix...
by MathWizard
Sat Mar 17, 2018 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Techniques in helping other with poor money skills
Replies: 27
Views: 2300

Re: Techniques in helping other with poor money skills

My wife and I have only done this with our kids. We taught them early why we save money, and what we needed to do to be financially stable. We also used examples of financial mistakes that they knew that their older cousins had made and how they could avoid them. This seemed to help because they wer...
by MathWizard
Sat Mar 17, 2018 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Those with high savings rate: why?
Replies: 187
Views: 18713

Re: Those with high savings rate: why?

I have a high savings rate because: 1) My current spending (not counting my savings) exceeds what I could reasonably expect to be able to spend if I retired today. If I retire today, I have to pick up all of health insurance until I can claim medicare. I still expect to spend $8K for the two of us a...
by MathWizard
Thu Mar 15, 2018 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: At what point does it make sense to pay down your mortgage?
Replies: 76
Views: 7886

Re: At what point does it make sense to pay down your mortgage?

Paying down never made sense. The problem is cash flow. You might need that money, and it is tied up in an illiquid asset. Paying off is another story. You have the same cash flow problem for a few months after payoff, but if a problem arises, your cash outflow has been reduced by the amount of your...
by MathWizard
Thu Mar 15, 2018 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Where do you save for your IRA Contribution?
Replies: 12
Views: 1023

Re: Where do you save for your IRA Contribution?

Keep it simple. Direct the money to savings, and put it into the Roth when you can.
by MathWizard
Fri Mar 09, 2018 2:41 pm
Forum: Investing - Theory, News & General
Topic: Move out of TIAA?
Replies: 19
Views: 2014

Re: Move out of TIAA?

I'm keeping my old TIAA because up till a few years ago, it had a guaranteed 3% return. (not true for new money though since about 2009). I have moved my IRA from TIAA-CREF because of high fees (0.69% on stock for individual IRAs) to Vanguard ER's in the .05% to .12% range, last I looked.) My 403b r...
by MathWizard
Fri Mar 09, 2018 2:21 pm
Forum: Personal Consumer Issues
Topic: Is near FI + Employment almost as good as Retirement?
Replies: 39
Views: 4376

Re: Is near FI + Employment almost as good as Retirement?

I'm essentially at FI. I could walk away, but it would be tight. I prefer another 2 yrs minimum, 6 years max until retirement. I am in a similar situation. Much will depend on the stock market. A big downturn could push retirement out. For me, there is a big issue of disliking my job/work and maybe...
by MathWizard
Thu Mar 08, 2018 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Why (or why not) use an advisor
Replies: 42
Views: 2060

Re: Why (or why not) use an advisor

I'm my wife's advisor (she has said so to her family when they were naming who their investment "guy" was. Not sure why it was always a "guy" but it was.) You have to be actively involved in your finances, so why not investing as well. Nobody else is going to care as much as you do. Just like car or...
by MathWizard
Thu Mar 08, 2018 6:24 pm
Forum: Personal Consumer Issues
Topic: Is near FI + Employment almost as good as Retirement?
Replies: 39
Views: 4376

Re: Is near FI + Employment almost as good as Retirement?

I'm essentially at FI. I could walk away, but it would be tight. I prefer another 2 yrs minimum, 6 years max until retirement. Still stressed. I've had 5 bosses over the last 5 years (a new one just a few months ago.) Budgets keep getting scrutiny, projects always seem to be moving targets. I do hav...
by MathWizard
Thu Mar 08, 2018 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone here with net worths north of $1 mil use financial advisors?
Replies: 249
Views: 33964

Re: Does anyone here with net worths north of $1 mil use financial advisors?

No. Nobody cares more about my retirement than me, so I invest my time in it.

I was once approached by people who were looking for quants, so I have the analytical skills,
but I prefer to only worry about my own money.
by MathWizard
Thu Mar 08, 2018 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Does it ever make sense to withdraw Roth IRA contributions to reduce credit card debt?
Replies: 18
Views: 963

Re: Does it ever make sense to withdraw Roth IRA contributions to reduce credit card debt?

Unless you are paying a default rate (something like 32%) leave the ROTH intact, and use it as an EF. Reasoning: You won't be able to contribute directly to a ROTH after this year (though you could possibly use a backdoor ROTH, but that door could close in the future). Put the $3-4 K/month extra tow...
by MathWizard
Wed Mar 07, 2018 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: Ok fellow bogleheads, was the correction scary or nothing?
Replies: 147
Views: 10466

Re: Ok fellow boggelheads, was the correction earlier this year scary?

What correction?

I was expecting a 25% drop YTD.

Instead, the total stock market (VTSAX) is UP 5.32 % YTD.

On Mar 9, 2009, VTSAX was down 27% YTD, and that was after a 36% loss in 2008,
so over a 50% loss from 1/1/2008 to 3/9/2009
by MathWizard
Mon Mar 05, 2018 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Another "Should I self-insure" for LTC Question
Replies: 119
Views: 6972

Re: Another "Should I self-insure" for LTC Question

In my case, I will likely have only about 2/3 of your portfolio, and LTCi premiums of 6,700 would be a large expense. The cap of $450K coupled with rising premiums, would be my biggest concerns. With $ 2.4 Million, you can certainly handle the $450K which the insurance might pay out. You are already...
by MathWizard
Mon Mar 05, 2018 3:27 pm
Forum: Investing - Theory, News & General
Topic: "Got $1 million to retire? Here’s how long it will last, by U.S. state"
Replies: 54
Views: 14350

Re: "Got $1 million to retire? Here’s how long it will last, by U.S. state"

I went to the site from which the data was obtained: https://howmuch.net/articles/one-million-retirement-by-state In that article, I saw: Without a proper savings-plan particularly in the States of Iowa and Nebraska, it could be difficult, if not impossible, to reap the benefits of decades of hard w...
by MathWizard
Mon Mar 05, 2018 2:45 pm
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17782

Re: Is Cash Trash? The Purpose of Cash

The other purpose of cash (besides to spend or waiting to invest) is to be used in an Emergency Fund.
The first tier of my EF will always be cash or CDs, held in a local bank. It's only about 2 the size of
my retirement investments, but it will handle a few month's expenses.
by MathWizard
Mon Mar 05, 2018 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting: Is "saving" for future large expenses classified as savings?
Replies: 35
Views: 1521

Re: Budgeting: Is "saving" for future large expenses classified as savings?

On this board, saving to me is long term savings, for retirement saving. After paying off the house, and getting the kids through college, and having the highest pay in my career my wife and I now save 43% in tax advantaged retirement accounts. We save another 11.5 % in short or medium term savings,...
by MathWizard
Wed Feb 28, 2018 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: How much cash do you keep at any time on checking?
Replies: 146
Views: 9234

Re: How much cash do you keep at any time on checking?

I try to stay above 500
Below 300 and I get a service fee.

Sometimes it balloons to 7000 , and I transfer money to long term savings.