Search found 130 matches

by TheBogleWay
Fri Jun 22, 2018 7:05 pm
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 104
Views: 7372

Re: Did you celebrate when you finally hit $1m?

At $1m, I made a little video of me speaking to the camera on how I got to that point and I also filmed the $1m account balance on Morning star. I did it for me to look back at one day with no plan to post it publicly. I celebrated by going on a family cruise. Although the cruise was pre-planned so...
by TheBogleWay
Fri Jun 22, 2018 6:45 pm
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 104
Views: 7372

Re: Did you celebrate when you finally hit $1m?

I'm surprised to see a majority of you barely noticed or cared! I guess it all depends on your perspective. Sure, it's just a number and your life doesn't change from when you had $990,000, but it's the milestone that counts. Technically birthdays are the same thing, why celebrate 30, 40, 50, etc wh...
by TheBogleWay
Fri Jun 22, 2018 5:06 am
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 104
Views: 7372

Did you celebrate when you finally hit $1m?

Did you celebrate your first $1m and if so, how? I'm getting close, excluding some big crash or unexpected emergency, I'm predicting about 1 year give or take 6 months. It reminds me of looking at the clock near the end of class. The first portion seems to have went by quickly, and now at the very e...
by TheBogleWay
Fri Jun 22, 2018 4:57 am
Forum: Personal Finance (Not Investing)
Topic: Is the first 100k really the hardest?
Replies: 144
Views: 39553

Re: Is the first 100k really the hardest?

Yes, I'd say so, because if you actually reach a savings of $100k, I think that defines what sort of person you are. If you can control your urges enough to save $100,000, you have the ability to plan for your future, and it likely took a lot of work to get there. At $100k, you start to notice inter...
by TheBogleWay
Sat May 26, 2018 4:18 am
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 54
Views: 4509

Re: The "4% withdrawl rate" - would it apply to someone "retiring" in their 70s?

How much is invested? How much income do they expect from that? 2% CDs or stocks and bonds at whatever allocation? How much do they spend each year for normal expenses? Only from that can they, or any of us, make a reasonable estimate of their withdrawal rate. They can decide on any rate they wish,...
by TheBogleWay
Sat May 26, 2018 3:49 am
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 54
Views: 4509

Re: The "4% withdrawl rate" - would it apply to someone "retiring" in their 70s?

How much are this person’s monthly expenses? Are we talking meeting minimal life expenses or splurging with the extra $1,000/month? If due to overspending early on are there places to cutback if necessary in later years? The less you spend, the longer the nest egg will last. But, at mid-70s, no rea...
by TheBogleWay
Sat May 26, 2018 2:31 am
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 54
Views: 4509

The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?

I am close to somebody who is "retiring" in their mid 70s. They don't have any retirement, but may finally have a small nest egg after selling their home and their net worth if all goes well should be about $300-400k. At their age, would you still recommend a 4% withdrawl rate? Assuming it's $350,00...
by TheBogleWay
Sat May 26, 2018 2:01 am
Forum: Investing - Theory, News & General
Topic: I'm an indexer... but...
Replies: 37
Views: 4394

Re: I'm an indexer... but...

8 years of staying the course during a bull market. Lol. This is said so often around here, I get it completely, it's a scary thought to imagine a bad recession. That being said, I feel like I'd stay the course. Keep an emergency fund, and I don't know why in my right mind I'd sell unless it was so...
by TheBogleWay
Fri May 25, 2018 10:58 pm
Forum: Investing - Theory, News & General
Topic: I'm an indexer... but...
Replies: 37
Views: 4394

Re: I'm an indexer... but...

The fund has outperformed VTSAX (total US market) over 5 and 10 year periods by a few percent. Why is VTSAX the right comparison? When I do a factor-regression on the fund[1] the factors are pretty far from "total US market". It is a heavy growth fund with a large profitability tilt. It also has ne...
by TheBogleWay
Fri May 25, 2018 10:45 pm
Forum: Investing - Theory, News & General
Topic: I'm an indexer... but...
Replies: 37
Views: 4394

Re: I'm an indexer... but...

The boglehead investment method isn't law. There's nothing wrong with holding a few shares in PRGFX in addition to your portfolio. Besides the proven track record for investment returns for a 3 fund portfolio... Simplicity, convenience, ease of investment/rebalancing, etc. is whats appealing to the...
by TheBogleWay
Fri May 25, 2018 10:37 pm
Forum: Investing - Theory, News & General
Topic: I'm an indexer... but...
Replies: 37
Views: 4394

I'm an indexer... but...

I've always been a Boglehead 3 fund style investor, have never swayed with 8 years of investing. I often preach indexing and the 3 fund portfolio. However a friend recently brought up the fund PRGFX, which is the T. Row Price Growth Stock. - https://finance.yahoo.com/quote/PRGFX/performance?p=PRGFX ...
by TheBogleWay
Fri May 25, 2018 1:57 am
Forum: Personal Finance (Not Investing)
Topic: Are there any experienced real-estate people here?
Replies: 39
Views: 3813

Re: Are there any experienced real-estate people here?

If the market is very strong I would price it so you get multiple offers and hopefully there will be a bidding war which will drive the price up (likely to happen in a desirable area of Seattle). It is not a good strategy to significantly over price the house (greater than 10%) hoping a naive buyer...
by TheBogleWay
Mon May 21, 2018 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: Are there any experienced real-estate people here?
Replies: 39
Views: 3813

Re: Are there any experienced real-estate people here?

I would run away fast from any "realtor" who I approach to sell my house and then out of the blue offers to buy it. That person might have a realtor's license but they aren't functioning as a realtor in their relationship with you. What you are describing is a conflict of interest. Most realtors ar...
by TheBogleWay
Fri May 18, 2018 12:47 am
Forum: Personal Finance (Not Investing)
Topic: Are there any experienced real-estate people here?
Replies: 39
Views: 3813

Re: Are there any experienced real-estate people here?

Top 15 Home Updates per HGTV https://www.hgtv.com/design/decorating/clean-and-organize/top-15-home-updates #2 Landscaping - Average return at resale: 100 percent #4 Exterior Improvements - Vinyl Siding, Paint, Updated Front Entry - Average return at resale: 95.5 percent If I'm reading this correctl...
by TheBogleWay
Fri May 18, 2018 12:05 am
Forum: Personal Finance (Not Investing)
Topic: Are there any experienced real-estate people here?
Replies: 39
Views: 3813

Re: Are there any experienced real-estate people here?

Is the house occupied? You'd be better off spending the $15k on a vacation for them and you clean out and paint (inside) the house. Get everything out. The new buyer will want to change everything anyway and if you're in Seattle I'm sure it will sell before they get back. I'm not sure if the inside...
by TheBogleWay
Thu May 17, 2018 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: Are there any experienced real-estate people here?
Replies: 39
Views: 3813

Re: Are there any experienced real-estate people here?

I wouldn’t bother, there’s going to be absestos, lead paint and mold. You’re in the Seattle market there’s already a line of buyers that will overbid and waive contingencies. I sold my a property in Kitsap county for more than I expected without fixing it up. The new buyer is going to want to add t...
by TheBogleWay
Thu May 17, 2018 10:34 pm
Forum: Personal Finance (Not Investing)
Topic: Are there any experienced real-estate people here?
Replies: 39
Views: 3813

Are there any experienced real-estate people here?

I have an important question to ask you all and I'm hoping there may be an experienced real-estate person browsing here so you can help guide my family on what to do. My grandparents have a large home in one of the fastest booming areas in the US - the PNW. Not only that, but the area of their house...
by TheBogleWay
Tue May 15, 2018 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: How do you quantify the risk differential between 85/15 and 70/30?
Replies: 70
Views: 5943

Re: How do you quantify the risk differential between 85/15 and 70/30?

This Marketwatch article says that as a general rule of thumb, "every additional 10% of your portfolio in equities adds about one half of a percentage point per year to your return." If that's correct (perhaps someone more experienced can speak to it), it should be a helpful way to look at the retu...
by TheBogleWay
Fri May 11, 2018 2:13 am
Forum: Investing - Help with Personal Investments
Topic: How do you quantify the risk differential between 85/15 and 70/30?
Replies: 70
Views: 5943

Re: How do you quantify the risk differential between 85/15 and 70/30?

A 50% loss in stocks is often used for planning purposes, but don't confuse that for worst case. In the great depression, the market dropped nearly 90% peak to trough over 3 years... http://thegreatdepressioncauses.com/facts/facts-stock-market/ Can somebody explain to a rookie why I'm seeing contra...
by TheBogleWay
Mon May 07, 2018 1:37 am
Forum: Investing - Help with Personal Investments
Topic: Are bonds necessary/beneficial in my situation?
Replies: 21
Views: 2120

Re: Are bonds necessary/beneficial in my situation?

Maybe I missed it, but I didn't see the OP mention an emergency fund. For me, this is a critical part of knowing what someone might do in the situation where there is a market crash while at the same time earning power goes to zero (e.g. due to job loss). If the emergency fund is large enough, some...
by TheBogleWay
Sun May 06, 2018 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Are bonds necessary/beneficial in my situation?
Replies: 21
Views: 2120

Re: Are bonds necessary/beneficial in my situation?

2: By my math, you don't need the higher returns that the more risky 100% allocation would give you. This. Point #3 of the Bogleheads Philosophy says "Never bear too much or too little risk". In your case, a 100% allocation to stocks feels like too much risk. Help explain that to me please. Let's s...
by TheBogleWay
Sun May 06, 2018 5:11 am
Forum: Investing - Help with Personal Investments
Topic: Are bonds necessary/beneficial in my situation?
Replies: 21
Views: 2120

Re: Are bonds necessary/beneficial in my situation?

First, congrats. That's an awesome financial story for a 29 year old. Hell, it's a pretty awesome story for a 55 year old... :) At first blush, I think you do need to avoid a 100% stock allocation. You're right - on average, returns are higher as you have a higher allocation of stocks (relative to ...
by TheBogleWay
Sun May 06, 2018 3:43 am
Forum: Personal Finance (Not Investing)
Topic: Those with high savings rate: why?
Replies: 246
Views: 31966

Re: Those with high savings rate: why?

I am very insecure regarding my ability to earn a living. I am a chemist and though I have a good job now that is pretty secure if I ever lost it I'd be up a smelly creek. Most companies don't even want to hire chemists and use staffing/contract agencies and I frequently have to tell recruiters to ...
by TheBogleWay
Sun May 06, 2018 3:05 am
Forum: Personal Finance (Not Investing)
Topic: Those with high savings rate: why?
Replies: 246
Views: 31966

Re: Those with high savings rate: why?

This thread was made for me. I'm under 30, living a somewhat frugal life and putting away well over $100k annually when I could be spending more and enjoying it a bit more. It's something I struggle with and debate in my head constantly. I'll get a little too personal but oh well. 1) I grew up in ba...
by TheBogleWay
Sun May 06, 2018 2:38 am
Forum: Personal Finance (Not Investing)
Topic: Best cash-back credit card right now?
Replies: 42
Views: 4744

Best cash-back credit card right now?

I don't really want to travel anymore than I currently do, so I don't want airline points. I believe that mostly just leaves me with cash-back credit cards as a second best option right? So, for cash-back cards, and a person who has an annual CC spending of about $15,000, what gets you the most cash...
by TheBogleWay
Sun May 06, 2018 1:41 am
Forum: Investing - Help with Personal Investments
Topic: How can I Invest 4 million dollars to earn 120k (inflation adjusted) a year for life?
Replies: 93
Views: 17751

Re: How can I Invest 4 million dollars to earn 120k (inflation adjusted) a year for life?

welderwannabe wrote:
Wed Apr 11, 2018 9:35 am
emergency cash fund of $250k-$400k...that outta do it. That would be some emergency.
Don't act like you don't have those emergencies where you need to buy 5 new boats and repair your roof all in one month. It happens.
by TheBogleWay
Sun May 06, 2018 1:28 am
Forum: Investing - Help with Personal Investments
Topic: Are bonds necessary/beneficial in my situation?
Replies: 21
Views: 2120

Are bonds necessary/beneficial in my situation?

Hi BH, I understand bonds are smart to have for most portfolios, mostly because they help cushion losses/downswings. However I'm wondering if they make sense for me (at this current time) or if for my situation it's OK to go 100% stocks for at least another 5-10 years. Ultimate goal is financial ind...
by TheBogleWay
Fri May 04, 2018 2:41 am
Forum: Investing - Theory, News & General
Topic: Help me understand the "25x/30x cost of living" retirement goal numbers?
Replies: 17
Views: 1868

Re: Help me understand the "25x/30x cost of living" retirement goal numbers?

One major warning. What you consider as "required" to live on in retirement can easily be an under-estimate, especially if you are contemplating early retirement. Stuff happens and it's all too tempting to say that's a one-off, except the following year another one-off is required. E.g. roof repair...
by TheBogleWay
Fri May 04, 2018 2:12 am
Forum: Investing - Theory, News & General
Topic: Help me understand the "25x/30x cost of living" retirement goal numbers?
Replies: 17
Views: 1868

Re: Help me understand the "25x/30x cost of living" retirement goal numbers?

The 25X number is an implication of the '4% rule': the finding that a portfolio can support an initial withdrawal rate of 4% of its starting value that is then adjusted upward every year for inflation (i.e. $1 million would produce $40,000 of income in year 1, then the $40k would be adjusted upward...
by TheBogleWay
Fri May 04, 2018 12:31 am
Forum: Investing - Theory, News & General
Topic: Help me understand the "25x/30x cost of living" retirement goal numbers?
Replies: 17
Views: 1868

Help me understand the "25x/30x cost of living" retirement goal numbers?

Hey BH, One of the more recent things I'm learning from this forum is the multiplier people are using as a "goal" for retirement. I see 30x the most often but it ranges from maybe 25x to 40x. My current cost of living means spending $60,000/year give or take a few, but I imagine with kids and a litt...
by TheBogleWay
Fri May 04, 2018 12:03 am
Forum: Investing - Help with Personal Investments
Topic: Where to invest about 200K
Replies: 9
Views: 1196

Re: Where to invest about 200K

I'm not nearly as experienced as some posters here but I've been here long enough to know that this info will help. 1) age 2) goals 3) financial picture/debt 4) they're going to tell you to read the basics on here (and it's probably life-changing advice and time spent to do so) 5) income 6) your cur...
by TheBogleWay
Thu May 03, 2018 11:58 pm
Forum: Investing - Help with Personal Investments
Topic: Medically Retired at Age 30 [Saving for Retirement - 100% Disabled Vet]
Replies: 20
Views: 3396

Re: Medically Retired at Age 30 [Saving for Retirement - 100% Disabled Vet]

Just posting to say thank you for your service and hope you find the right advice here.
by TheBogleWay
Wed Apr 25, 2018 10:23 pm
Forum: Investing - Theory, News & General
Topic: Is there any app/software that neatly tells you daily gains/losses?
Replies: 19
Views: 1834

Re: Is there any app/software that neatly tells you daily gains/losses?

Glockenspiel wrote:
Wed Apr 25, 2018 8:24 am
I'm pretty sure Personal Capital will tell you that, by account, in both points and percentage.
Not to be nitpicky but my ideal app would also show dollar amounts. That's what I really like to see.

Again this is mostly just for fun though so not a giant deal.
by TheBogleWay
Wed Apr 25, 2018 3:06 am
Forum: Investing - Theory, News & General
Topic: Is there any app/software that neatly tells you daily gains/losses?
Replies: 19
Views: 1834

Is there any app/software that neatly tells you daily gains/losses?

I know the immediate (and smart) reaction from most here would be "why do you need to see daily returns or losses? Will it impact the way you invest?", but, sincerely I just want an app like this for fun. Yes, as weird as it sounds I would think it's fun, the up days help me realize the value of inv...
by TheBogleWay
Tue Apr 24, 2018 3:22 am
Forum: Investing - Help with Personal Investments
Topic: Help with selecting funds within a 401k
Replies: 5
Views: 448

Re: Help with selecting funds within a 401k

Option 1 — 100% Fidelity Freedom 2055 Andcantage: professionally managed Disadvantage: 0.75% expense ratio Option 2 — index fund portfolio Percentage of bonds is based on risk tolerance. We cannot establish that. Assuming a moderately aggressive stance, (AGE - 10) as the percentage of bonds would b...
by TheBogleWay
Tue Apr 24, 2018 2:19 am
Forum: Investing - Help with Personal Investments
Topic: Help with selecting funds within a 401k
Replies: 5
Views: 448

Help with selecting funds within a 401k

Hi All, I'm asking this question on behalf of my SO. Her 401k is beginning to grow and it's time to fine-tune her fund selections inside. Some basic details in case they change anything: Age - mid 20s Income - $72,000/year Contribution rate - ~20% (company matching 3%) 401k value today - $35,000 Goa...
by TheBogleWay
Fri Mar 30, 2018 3:18 am
Forum: Personal Finance (Not Investing)
Topic: Healthy eaters -- is this grocery budget normal to you?
Replies: 247
Views: 13827

Re: Healthy eaters -- is this grocery budget normal to you?

The ms and I eat a home cooked meal probably 4-5 days a week, eat something (usually the healthiest fast food we can think of). When we cook, we buy in bulk and cook enough to have probably 6-7+ leftover meals of that type. The closest estimate I can get is each of us spends about $290-300/month on ...
by TheBogleWay
Thu Mar 29, 2018 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: As a standard employee, I owe a TON this tax season... why?
Replies: 16
Views: 3576

Re: As a standard employee, I owe a TON this tax season... why?

You mad almost $400k and almost qualify for 1040EZ? That’s different. I really wonder if you are doing all you can to minimize tax liability. I meant as far as filing status. Single, not a home owner, haven't sold any stock, etc. I wonder if I'm doing all I can too but since my situation is so simp...
by TheBogleWay
Thu Mar 29, 2018 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: As a standard employee, I owe a TON this tax season... why?
Replies: 16
Views: 3576

Re: As a standard employee, I owe a TON this tax season... why?

My W2 was about $393k, a large bulk of that income came in one month where I made about $130k in one month mostly all on one paycheck mid way through the year. Given that the average household income is around 60k, less than half of what you made in one month, you are anything but a standard W-2 em...
by TheBogleWay
Thu Mar 29, 2018 1:46 am
Forum: Personal Finance (Not Investing)
Topic: As a standard employee, I owe a TON this tax season... why?
Replies: 16
Views: 3576

As a standard employee, I owe a TON this tax season... why?

Hi All, I am about the most standard W2 employee possible with very few unique factors as far as my tax filing status goes, I mean I almost qualify for a 1040 EZ filing due to the simplicity of my tax situation. Most years, I owe maybe $2-3k give or take. In 2017, I was fortunate and made more than ...
by TheBogleWay
Thu Mar 22, 2018 11:30 pm
Forum: Personal Finance (Not Investing)
Topic: What Budget? Do you keep one?
Replies: 116
Views: 7850

Re: What Budget? Do you keep one?

I don't keep a budget at all, but instead I just keep a general rule in my head to save as much money as I can on purchases, and only splurge after I've done plenty of research and I really think a purchase is going to improve my life or really entertain me somehow. I try to save money by cooking, n...
by TheBogleWay
Thu Mar 22, 2018 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: Buying vs renting - really tough decision to make
Replies: 64
Views: 4726

Re: Buying vs renting - really tough decision to make

Here's my math, with lots of seat-of-the-pants assumptions: I find it clearer to do the analysis in real terms, so all numbers are inflation adjusted (today's dollars). The biggest cost of owning a house is the lost interest. If you take out a mortgage, the interest lost is the interest you pay on ...
by TheBogleWay
Wed Mar 21, 2018 12:39 am
Forum: Personal Finance (Not Investing)
Topic: Buying vs renting - really tough decision to make
Replies: 64
Views: 4726

Re: Buying vs renting - really tough decision to make

Why not rent as nice a home as you would buy? I see in Seattle area a strong negative price elasticity, i.e. a $1M home doesn't rent for nearly 2x a $500k home. And the $500k home would benefit from improvements so I can see not wanting to rent and feel disincented from doing that, but the $1m rent...
by TheBogleWay
Tue Mar 20, 2018 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: Buying vs renting - really tough decision to make
Replies: 64
Views: 4726

Re: Buying vs renting - really tough decision to make

A guy that is so superior at math and just wants a purely financial answer based on math MUST be able to do the calculations yourself, so whey deign to even ask the question? And a guy that again, is so good at math and intelligent enough to make the kind of money you are making surely must be able...
by TheBogleWay
Tue Mar 20, 2018 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Buying vs renting - really tough decision to make
Replies: 64
Views: 4726

Re: Buying vs renting - really tough decision to make

Ha....... This is going great. Lol. I understand what he was doing, it's being a little facetious/fear mongering to try to open up a persons eyes to potential downfalls and make them realize the market could tank. So I was a little facetious back. What I'm trying to say to people doing that is I'm ...
by TheBogleWay
Tue Mar 20, 2018 10:37 pm
Forum: Personal Finance (Not Investing)
Topic: Buying vs renting - really tough decision to make
Replies: 64
Views: 4726

Re: Buying vs renting - really tough decision to make

OP -- Almost every single financial argument and fact presented in the OP logically points towards renting being the better option. Yet you claim to be emotionally torn. Why? Because, yet again... the goal is which option results in the highest net worth. I realize my mistake in including any detai...
by TheBogleWay
Tue Mar 20, 2018 9:51 pm
Forum: Personal Finance (Not Investing)
Topic: Buying vs renting - really tough decision to make
Replies: 64
Views: 4726

Re: Buying vs renting - really tough decision to make

Because, when you buy a house, you gain equity. Who taught you that? Home ownership is an expense. Equity can go up but it can also go down. Math taught me that I guess? I'm not sure what your point is. It's generally accepted that buying a house builds equity over time, that's not much of an opini...
by TheBogleWay
Tue Mar 20, 2018 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Buying vs renting - really tough decision to make
Replies: 64
Views: 4726

Re: Buying vs renting - really tough decision to make

What's your current savings rate? How much goes in the retirement/taxable/investment properties vs how much you make? I fear buying may negatively impact your rate. I can buy our unit with a years savings, age 34, mainly bc we keep recurring costs low thru debt free modest housing and cars. Small h...
by TheBogleWay
Tue Mar 20, 2018 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Buying vs renting - really tough decision to make
Replies: 64
Views: 4726

Re: Buying vs renting - really tough decision to make

If you can rent the home you want for $3000 per month, why would you buy a home that costs $5500 per month? (I'm quoting the only part of your post that was a question, deleted the rest) As in the first post, I said if I rent I'm OK not having the things I really want because it's temporary/short t...
by TheBogleWay
Tue Mar 20, 2018 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: Buying vs renting - really tough decision to make
Replies: 64
Views: 4726

Re: Buying vs renting - really tough decision to make

I'm not seeing where you make an argument for buying.... I didn't think I need to make a case for buying, everyone knows what it is. There are advantages like a much more comfortable home, not having to move twice, so on and so on. I'm wondering what's best financially and that's really my main foc...