Search found 72 matches

by TheBogleWay
Tue Feb 20, 2018 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off car loan good for credit?
Replies: 19
Views: 793

Re: Paying off car loan good for credit?

^ makes sense, interesting.

I've decided I'll leave the loan open then. Thank you, thread can be closed.
by TheBogleWay
Tue Feb 20, 2018 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off car loan good for credit?
Replies: 19
Views: 793

Re: Paying off car loan good for credit?

Types of credit/debt account for 10% of your score. If you don't have revolving debt your score could drop by up to 10%. When I paid off my mortgage and no longer had any car loans my score dropped by about 5% and remains in that range - still excellent but not what it was with a car loan. That's s...
by TheBogleWay
Tue Feb 20, 2018 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off car loan good for credit?
Replies: 19
Views: 793

Re: Paying off car loan good for credit?

I just sold and paid off my second car in january. I have been checking my reports weekly but its still out there. i'll report back with what happens. I've been Googling this today and the first few results I'm seeing are people angry wondering why they paid off an auto loan only to see a significa...
by TheBogleWay
Tue Feb 20, 2018 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off car loan good for credit?
Replies: 19
Views: 793

Re: Paying off car loan good for credit?

Still hoping for answers on this.


I’m sure it will have some impact on credit and I’m rifht on the line of receiving a better interest rate if I slightly improve, hence my question even though it seems minor.

Thanks!
by TheBogleWay
Tue Feb 20, 2018 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off car loan good for credit?
Replies: 19
Views: 793

Re: Paying off car loan good for credit?

I don't think it would matter one way or the other either. I would probably pay it off if it would save you any money at all as it would seem to be a nuisance to bother with every month. That assumes that you wouldn't be tempted to fritter away that $250 in cash flow every month, of course. I don't...
by TheBogleWay
Tue Feb 20, 2018 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off car loan good for credit?
Replies: 19
Views: 793

Re: Paying off car loan good for credit?

Both. Never had a car loan and my credit is 800+. ...both? You're saying paying it off and not paying it off are both better than the other option for my credit? I'm not sure that makes sense... youre the one debating whether or not taking 2% of your income and paying off a loan matters. Correct, I...
by TheBogleWay
Tue Feb 20, 2018 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off car loan good for credit?
Replies: 19
Views: 793

Re: Paying off car loan good for credit?

PFInterest wrote:
Tue Feb 20, 2018 4:06 pm
Both.
Never had a car loan and my credit is 800+.
...both? You're saying paying it off and not paying it off are both better than the other option for my credit? I'm not sure that makes sense...
by TheBogleWay
Tue Feb 20, 2018 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off car loan good for credit?
Replies: 19
Views: 793

Re: Paying off car loan good for credit?

It depends on the ratios of -debt payments to income, and -auto loan balance to liquid savings. If your debt payments are high relative to your income, pay off the car loan. If you are short on savings / illiquid, pay off the loan. Neither apply? your score is >800 and none of this matters. Hmm. De...
by TheBogleWay
Tue Feb 20, 2018 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 52
Views: 3264

Re: Looking for some help and fast (buying vs renting, net worth)

At the OPs income level 330k, I'd consider myself house poor with that high of housing costs. Most people are not prodigous accumulators of wealth, and are happy delaying FI in exchange for some luxuries. Can you help me understand how we'd be "house poor" with this? I'm not asking out of defensive...
by TheBogleWay
Tue Feb 20, 2018 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off car loan good for credit?
Replies: 19
Views: 793

Paying off car loan good for credit?

Hey All, Seems like a fairly obvious question but to me it isn't. I currently have 2 car loans. One of them I just realized only has $5k left on it. The payments are small, about $250/month. All my payments are automated and on time. I'm probably buying a house relatively soon, so what's better for ...
by TheBogleWay
Mon Feb 19, 2018 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 52
Views: 3264

Re: Looking for some help and fast (buying vs renting, net worth)

Thanks Ladygeek ^ and thank the rest of you too, you're all very helpful. I showed someone else this thread and she said she was surprised how people who don't know me will go out of their way to type of lengthy responses with no personal gain. That's why I love forums. Anyway, after all these quest...
by TheBogleWay
Sun Feb 18, 2018 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 52
Views: 3264

Re: Looking for some help and fast (buying vs renting, net worth)

Hey Klang, I’m not sure if I’m misunderstanding or if you’re misunderstanding something, but I don’t know how you arrived at that summary. A few comments. 1) my question is does A or B come out ahead. Saying they both lose doesn’t really answer that. Ok, who loses faster, person A or B? 2) the part...
by TheBogleWay
Sun Feb 18, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 52
Views: 3264

Re: Looking for some help and fast (buying vs renting, net worth)

Hey Klang, I’m not sure if I’m misunderstanding or if you’re misunderstanding something, but I don’t know how you arrived at that summary. A few comments. 1) my question is does A or B come out ahead. Saying they both lose doesn’t really answer that. Ok, who loses faster, person A or B? 2) the part...
by TheBogleWay
Sun Feb 18, 2018 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 52
Views: 3264

Re: Looking for some help and fast (buying vs renting, net worth)

Aside from the lost 30k, the answer depends on the mortgage interest rates in the two options. In a rising interest enviornment such as we have had the last few years and expect to have this year, option B with its lower interest rate probably wins by even more than 30k. How much better depends on ...
by TheBogleWay
Sun Feb 18, 2018 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 52
Views: 3264

Re: Looking for some help and fast (buying vs renting, net worth)

Hi All, Thank you very very much in advance, you guys will help me make a big life decision very soon. I came across a home today that to me seems rare. I was thinking of buying 7-8 months from now, but now it turns out if I want this home, I need to move very quickly and buy. So, here's my questio...
by TheBogleWay
Sun Feb 18, 2018 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 52
Views: 3264

Re: Looking for some help and fast (buying vs renting, net worth)

Aside from the lost 30k, the answer depends on the mortgage interest rates in the two options. In a rising interest enviornment such as we have had the last few years and expect to have this year, option B with its lower interest rate probably wins by even more than 30k. How much better depends on ...
by TheBogleWay
Sun Feb 18, 2018 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 52
Views: 3264

Re: Looking for some help and fast (buying vs renting, net worth)

I'm admittedly biased toward home ownership, so I'd lean toward scenario B. Unless you need the liquidity provided by saving the $2,450 monthly with paying rent instead of a higher mortgage, you'll save yourself the $30k you would otherwise be paying in rent for a year. That's money that you'll nev...
by TheBogleWay
Sun Feb 18, 2018 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 52
Views: 3264

Re: Looking for some help and fast (buying vs renting, net worth)

And actually, I have a separate question I’m wondering about too. Just simple math, long term, would a person be more well off financially renting for $2,550/mo, or if they bought a home but the 30 year mortgage payment was $4,800/mo? I can’t tell because while the rent is cheaper, there’s zero equi...
by TheBogleWay
Sun Feb 18, 2018 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 52
Views: 3264

Looking for some help and fast (buying vs renting, net worth)

Hi All, Thank you very very much in advance, you guys will help me make a big life decision very soon. I came across a home today that to me seems rare. I was thinking of buying 7-8 months from now, but now it turns out if I want this home, I need to move very quickly and buy. So, here's my question...
by TheBogleWay
Thu Feb 15, 2018 3:50 am
Forum: Investing - Theory, News & General
Topic: In plain English, please explain what was VIX, what happened to it and why?
Replies: 68
Views: 5825

Re: In plain English, please explain what was VIX, what happened to it and why?

Only thing I have learned is that as a group: 1. We are really bright and well read and 2. None of us seem to be good teachers. :D Hope someone can get on here and give the OP a SIMPLE explanation. Here is mine: VIX is basically a measure of the risk of the stock market. Folks (professionals) look ...
by TheBogleWay
Wed Feb 14, 2018 10:58 pm
Forum: Investing - Theory, News & General
Topic: philosophicaleconomics predicts 4% real equity returns
Replies: 129
Views: 7177

Re: philosophicaleconomics predicts 4% real equity returns

So.........

Is it maybe time to shift a higher allocation to total internal stock market index fund?

Is anyone else considering putting more money into total INTL than they have US over the last few years?
by TheBogleWay
Sun Feb 11, 2018 4:38 am
Forum: Investing - Theory, News & General
Topic: I still know nothing - 22 years of REALLY lazy investing
Replies: 23
Views: 4741

Re: I still know nothing - 22 years of REALLY lazy investing

Thank you for taking the time to respond. And thank you for the compliment; definitely everything I've learned thus far I credit to the Bogleheads forums. The only thing I really knew was low ER and index fund and that I probably should try to get the full employer 401k match. I'm pretty good with ...
by TheBogleWay
Sun Feb 11, 2018 3:59 am
Forum: Investing - Help with Personal Investments
Topic: Should I tax loss harvest this downfall? I've never done it before.
Replies: 7
Views: 890

Should I tax loss harvest this downfall? I've never done it before.

Hi BH, For the month of February, my main account (which is roughly 60% total US, 30% total international, and 10% BND) is down $40,000. That's a huge chunk to me as I'm near 30 and it's hard earned money. I'm not at all panicked, of course, this is a long term game and I'm optimistic/staying the co...
by TheBogleWay
Wed Jan 31, 2018 3:27 am
Forum: Personal Finance (Not Investing)
Topic: Buying a house, 15yr vs 30yr loan?
Replies: 29
Views: 2925

Re: Buying a house, 15yr vs 30yr loan?

When I was younger, I had a 30 year mortgage and paid it at a 15 year rate. Working in tech, with its booms and busts, I wanted the option to pay at the lower rate. Same outcome can be achieved if you set aside sufficient cash in your emergency fund to cover the difference. Back then all of my savi...
by TheBogleWay
Tue Jan 30, 2018 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house, 15yr vs 30yr loan?
Replies: 29
Views: 2925

Re: Buying a house, 15yr vs 30yr loan?

It doesn't apply to either one of these. Yes, you expect higher returns from the market, but you have chosen your investments to balance return and risk. You should decide separately how much risk to take (how much stock to hold) and whether to pay down a loan (which increases or decreases your ret...
by TheBogleWay
Tue Jan 30, 2018 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house, 15yr vs 30yr loan?
Replies: 29
Views: 2925

Re: Buying a house, 15yr vs 30yr loan?

This is a fun exercise isn't it? But, OP, a good thing to remember is that most folks don't stay in a first home (assuming this is your first) for 30 or even 15 years. What's the average 5 years or so? I think it's much better to figure out what's best now rather than 30 years from now. If you can ...
by TheBogleWay
Tue Jan 30, 2018 11:10 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house, 15yr vs 30yr loan?
Replies: 29
Views: 2925

Re: Buying a house, 15yr vs 30yr loan?

1) Aren't interest rates higher for longer loans? I was surprised to see you say a higher interest rate for paying it off faster. Was that a typo or does that really happen with mortgages? That looks like a mistake. A 30 year mortgage paid off in 15 years will still charge slightly more in total in...
by TheBogleWay
Sun Jan 28, 2018 7:10 am
Forum: Personal Finance (Not Investing)
Topic: Buying a house, 15yr vs 30yr loan?
Replies: 29
Views: 2925

Re: Buying a house, 15yr vs 30yr loan?

1) Aren't interest rates higher for longer loans? I was surprised to see you say a higher interest rate for paying it off faster. Was that a typo or does that really happen with mortgages? That looks like a mistake. A 30 year mortgage paid off in 15 years will still charge slightly more in total in...
by TheBogleWay
Sun Jan 28, 2018 3:03 am
Forum: Personal Finance (Not Investing)
Topic: Buying a house, 15yr vs 30yr loan?
Replies: 29
Views: 2925

Re: Buying a house, 15yr vs 30yr loan?

Let's get out of the realm of theory and get down to dollars. Your loan of $800k is referred to as a "jumbo" loan. Even with good credit and 20% down, jumbo rates are higher than rates for lower loans. Let's assume today's jumbo rate is 5.5% for 15 years and 4.5% for 30 years. Actual rates may be d...
by TheBogleWay
Sun Jan 28, 2018 12:26 am
Forum: Personal Finance (Not Investing)
Topic: Buying a house, 15yr vs 30yr loan?
Replies: 29
Views: 2925

Re: Buying a house, 15yr vs 30yr loan?

The goal is long term wealth if that isn't obvious, how do I end up with the most money. Obviously with a longer loan I'm comfortable getting a little more house. Purchase price is an important variable in this calculation. If a 30 yr mortgage is going to entice you to buy more house, I'd say go wi...
by TheBogleWay
Sun Jan 28, 2018 12:25 am
Forum: Personal Finance (Not Investing)
Topic: Buying a house, 15yr vs 30yr loan?
Replies: 29
Views: 2925

Re: Buying a house, 15yr vs 30yr loan?

This is really the same type of question as the usual decision as in Paying down loans versus investing on the wiki. If you view a mortgage as a negative bond, then paying down a mortgage is equivalent to buying a bond portfolio. With the shorter-term mortgage, you will be buying more "bonds" as yo...
by TheBogleWay
Sat Jan 27, 2018 10:46 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house, 15yr vs 30yr loan?
Replies: 29
Views: 2925

Buying a house, 15yr vs 30yr loan?

Hey BH, I'm sure a LOT of you know the answer to this, and I'm really hoping there's one "better" answer here. I'm considering buying a home soon, and need to decide on a 15 year mortgage vs 30 years. The goal is long term wealth if that isn't obvious, how do I end up with the most money. Obviously ...
by TheBogleWay
Wed Jan 03, 2018 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: First home purchase - credit, and loan rate question
Replies: 4
Views: 447

First home purchase - credit, and loan rate question

Hi BH, 2 part thread here. Part 1 , I'll (possibly) be buying my first home later this year, maybe 6-7 months away. My initial thoughts are I'm comfortable with anything around the 700-850k range. I'm wondering how you would handle this... my credit number (according to the app Credit Karma, not a b...
by TheBogleWay
Wed Dec 20, 2017 10:22 pm
Forum: Investing - Theory, News & General
Topic: 2nd million is easier!
Replies: 123
Views: 23930

Re: 2nd million is easier!

Since you opened up with the following quote Frankly, I do not trust the financial services industry and I think everyone needs to be well educated financially. what value do you add financially which allows you to earn $2.9M per year? You have every right to not trust the industry if you think the...
by TheBogleWay
Tue Dec 19, 2017 10:05 pm
Forum: Investing - Theory, News & General
Topic: 2nd million is easier!
Replies: 123
Views: 23930

Re: 2nd million is easier!

I realize this post might be perceived as a humblebrag so please accept my apologies in advance. Financial milestones are not something I can really celebrate/share with family or friends. I am 51 years old and it took me until age 47 to accumulate over 1 million in my investment accounts. It only ...
by TheBogleWay
Fri Dec 15, 2017 2:09 am
Forum: Investing - Help with Personal Investments
Topic: Questions about mega-backdoor Roth, and is there any reason NOT to do a mega-backdoor Roth?
Replies: 20
Views: 2723

Re: Questions about mega-backdoor Roth, and is there any reason NOT to do a mega-backdoor Roth?

^ shoot, the articles I read made it sound like it was fairly common.


However I'd still like to know on the off-chance my company allows it.
by TheBogleWay
Fri Dec 15, 2017 12:47 am
Forum: Investing - Help with Personal Investments
Topic: Reached 50X annual spending. Now what?
Replies: 56
Views: 6313

Re: Reached 50X annual spending. Now what?

NextMil wrote:
Thu Dec 14, 2017 11:27 am
Nothing substantive to add on this, but wanted to say congratulations. That is pretty amazing. Well done.
^ this.

Live it up. Just read your post and wanted to say congratulations. I say you throw a party every single day for the next 10 years to celebrate. 50x annual spending is nuts.
by TheBogleWay
Fri Dec 15, 2017 12:33 am
Forum: Investing - Help with Personal Investments
Topic: Questions about mega-backdoor Roth, and is there any reason NOT to do a mega-backdoor Roth?
Replies: 20
Views: 2723

Questions about mega-backdoor Roth, and is there any reason NOT to do a mega-backdoor Roth?

Hey All, 2 part thread. Part 1, is there anybody out there who would make a case NOT to use a mega-backdoor roth? This is assuming that you've maxed your normal 401k and normal Roth IRA. Part 2: Can somebody explain it to me as if I were a 10 year old? I did read multiple articles before making this...
by TheBogleWay
Mon Dec 11, 2017 11:47 pm
Forum: Investing - Theory, News & General
Topic: So... how do I need to "further" my investing knowledge?
Replies: 15
Views: 1629

Re: So... how do I need to "further" my investing knowledge?

I agree with the comments about understanding behavioral aspects of investing. This will help you to stay the course during the next recession. Why Smart People Make Big Money Mistakes by Belsky and Gilovich and Your Money & Your Brain by Jason Zweig are two oft recommended books on the subject. I ...
by TheBogleWay
Mon Dec 11, 2017 8:38 pm
Forum: Investing - Theory, News & General
Topic: So... how do I need to "further" my investing knowledge?
Replies: 15
Views: 1629

Re: So... how do I need to "further" my investing knowledge?

6. Fund a mega backdoor Roth if applicable. -don't do, without sounding whiny, this sounds really complex and not entirely sure it's worth it.. maybe I'm just being dumb though :) Up to you. How much is it worth to pay 0% instead of 15% on all the qualified dividends and long term capital gains, an...
by TheBogleWay
Mon Dec 11, 2017 6:50 pm
Forum: Investing - Theory, News & General
Topic: So... how do I need to "further" my investing knowledge?
Replies: 15
Views: 1629

Re: So... how do I need to "further" my investing knowledge?

Now that you know that, do you still think there are tax advantages I'm missing? Probably nothing significant. If you read through Investment Order and Prioritizing investments and can say "yes, doing all that" (or have good reasons why not) then the likelihood you are missing anything significant ...
by TheBogleWay
Mon Dec 11, 2017 6:39 pm
Forum: Investing - Theory, News & General
Topic: So... how do I need to "further" my investing knowledge?
Replies: 15
Views: 1629

Re: WeRe: So... how do I need to "further" my investing knowledge?

Couple of points: 1) Your aim is long term Growth, not long term "compound interest". 2) And you want to be knowledgeable about your long term Savings Rate, at least 10% of gross income to start, going up to 25-30% of gross as the years go on. That tax-loss harvesting thing is an advanced topic, me...
by TheBogleWay
Mon Dec 11, 2017 5:27 am
Forum: Investing - Theory, News & General
Topic: So... how do I need to "further" my investing knowledge?
Replies: 15
Views: 1629

Re: So... how do I need to "further" my investing knowledge?

How is your tax knowledge? Do you understand what you can do now to minimize your taxes in 5, 15, 36 years? Not quite.. I'm positive there's some valuable information I'm missing there, and I'm not just being modest. Here's the thing... right now, I'm a full standard employee with one job. I receiv...
by TheBogleWay
Mon Dec 11, 2017 5:00 am
Forum: Investing - Theory, News & General
Topic: After a 2- or 3-fund solution, the rest is withdrawals and world events
Replies: 17
Views: 1882

Re: After a 2- or 3-fund solution, the rest is withdrawals and world events

I'm someone around 30 years old, so I'm learning as I go - take it for what it's worth, but if one of these major events happened, wouldn't you be more worried about where your next meal came from and how to get more firewood than a total net worth of an investment account? If the US loses it's powe...
by TheBogleWay
Mon Dec 11, 2017 4:32 am
Forum: Investing - Theory, News & General
Topic: So... how do I need to "further" my investing knowledge?
Replies: 15
Views: 1629

So... how do I need to "further" my investing knowledge?

Hey everyone. I'm going to summarize my knowledge on "investing" right now.. and I'd like those of you who know more than I do to tell me what else I need to know. I'm wondering if I know enough or if I need to learn more. I understand: -The concept of being frugal and putting spare money in investm...
by TheBogleWay
Tue Nov 07, 2017 3:50 pm
Forum: Investing - Theory, News & General
Topic: Lowering taxes on business in the US
Replies: 17
Views: 1500

Re: Lowering taxes on business in the US

So, you came here to post about speculative legislation and market timing? More so about the legislation, if passed, how posters here think it will effect the US economy (and in turn, US stocks). I'm just wondering where you ask questions like these. Social media of course isn't the place. Google i...
by TheBogleWay
Tue Nov 07, 2017 4:10 am
Forum: Investing - Theory, News & General
Topic: Lowering taxes on business in the US
Replies: 17
Views: 1500

Re: Lowering taxes on business in the US

Generally proposed legislation is off topic and now allowed to be discussed here. Is there a way you can make your question personally actionable whether or not the proposed tax plan passes? Well, I have another chunk of money waiting to be invested (not making this up for the sake of the thread) a...
by TheBogleWay
Tue Nov 07, 2017 2:45 am
Forum: Investing - Theory, News & General
Topic: Lowering taxes on business in the US
Replies: 17
Views: 1500

Lowering taxes on business in the US

I want to make this thread on Bogleheads, figured this was the most appropriate section but I hope it's not too off topic. I don't want to turn this into a political debate, to me it's still investing related. As of today, November 2017, the US is attempting to lower taxes on US business. I'm wonder...
by TheBogleWay
Tue Nov 07, 2017 2:31 am
Forum: Investing - Theory, News & General
Topic: U.S. & International Allocation
Replies: 56
Views: 6406

Re: U.S. & International Allocation

This is just a gut feeling, which I know counts for completely nothing, but I like my current split which is closer to 75% US and 25% INTL. I think I'll keep it roughly that. It's all speculation but I imagine the US will continue to do well like one of the other posters said above.
by TheBogleWay
Tue Nov 07, 2017 2:21 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 1752
Views: 312069

Re: What are you up YTD? [Year To Date]

Up 21.9% in the last 12 months...

I can't even imagine what 21.9% would mean for me in 5 years. I get too excited to sleep thinking about that possibility.


I'm probably 70% total US stocks, 20% total international stocks, and 10% bonds, give or take.