Search found 94 matches

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: 12603

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: 3477

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: 3477

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: 3477

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: 7068

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: 4347

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: 4347

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: 4347

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: 4347

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: 4347

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: 4347

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: 4347

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: 4347

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: 4347

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...
by TheBogleWay
Tue Mar 20, 2018 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Buying vs renting - really tough decision to make
Replies: 64
Views: 4347

Buying vs renting - really tough decision to make

Hi BH, I'm trying to make a decision lately that is really eating at me. It's such a tough decision and I'm not sure where to turn for answers. Essentially, I want to do what is financially smartest and the choice is between buying or renting. However the regular online calculators I find don't real...
by TheBogleWay
Fri Mar 16, 2018 4:04 am
Forum: Investing - Theory, News & General
Topic: Could all of these "low expected returns over next 10 years" predictions be wrong?
Replies: 120
Views: 10867

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

I sure hope they're wrong, because I'm just at the beginning really of the investing end of my career, and you're right, there are a lot of really smart people who are saying that the future looks awful; but if it does my future doesn't look as awful as most of the rest of America that can't save a...
by TheBogleWay
Fri Mar 16, 2018 3:27 am
Forum: Investing - Help with Personal Investments
Topic: what to do with 1 million in hand..
Replies: 23
Views: 3619

Re: what to do with 1 million in hand..

How did you only gain 10% last year? What did you do wrong to trail the market by over 10 percentage points? I wouldn't pay off the mortgage and I wouldn't invest in property in another state. I'd invest it all in a diversified equity portfolio. +1 Paying off the mortgage does not reduce your real ...
by TheBogleWay
Fri Mar 16, 2018 3:05 am
Forum: Investing - Theory, News & General
Topic: Could all of these "low expected returns over next 10 years" predictions be wrong?
Replies: 120
Views: 10867

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

The obvious answer is yes (lol I know that will get quoted) but I'm just wondering, as much as BHs are "anti market time" they all seem to subscribe to the recent predictions that suggest the next 10 years might have 4% returns on average or so. What are the chances that's entirely wrong? Or, here's...
by TheBogleWay
Wed Mar 14, 2018 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: Review of my full portfolio - am I on the right track?
Replies: 14
Views: 1327

Re: Review of my full portfolio - am I on the right track?

It is not concrete math and "seems" to be based on "feelings" because "risk tolerance and sleep factor" is about feelings. But, even that is quantifiable to a large extent. If the market feel deeply and for who knows how long, would you be prepared to lost 50% or more of the value of your equities ...
by TheBogleWay
Wed Mar 14, 2018 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: Review of my full portfolio - am I on the right track?
Replies: 14
Views: 1327

Re: Review of my full portfolio - am I on the right track?

Hypothetically, if I have a high risk tolerance, would you guys say 10% is enough for me maybe 15%? Again the funny part here is that it doesn't seem like concrete math to everyone, it seems to be more about feelings. Although that one article did present some math, I certainly need to get more bond...
by TheBogleWay
Wed Mar 14, 2018 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Review of my full portfolio - am I on the right track?
Replies: 14
Views: 1327

Re: Review of my full portfolio - am I on the right track?

Thank you for that input ^ do others here really agree that at age 30 I should really have 40% in bonds?


Also, outside of increasing my bond allocation, how does everything else look?
by TheBogleWay
Wed Mar 14, 2018 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Review of my full portfolio - am I on the right track?
Replies: 14
Views: 1327

Review of my full portfolio - am I on the right track?

Hi BH, I love the forum and promote it pretty often. I’d like to do a pretty detailed look at my entire portfolio, it’s been a while since I actually sat down and calculated it all out in detail and asked you guys to help me out. My nest egg is about $700k now and starting to get to the point where ...
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: 909

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: 909

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: 909

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: 909

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: 909

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: 909

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: 909

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: 909

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: 3664

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: 909

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: 3664

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: 3664

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: 3664

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: 3664

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: 3664

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: 3664

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: 3664

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: 3664

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: 3664

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: 6079

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: 152
Views: 10755

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: 4859

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: 939

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: 3038

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: 3038

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: 3038

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: 3038

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: 3038

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...