Search found 76 matches

by WarChest
Sun Nov 12, 2017 11:52 pm
Forum: Personal Finance (Not Investing)
Topic: Another "Can We Afford This House" ?
Replies: 28
Views: 2580

Re: Another "Can We Afford This House" ?

Thanks for your thoughtful response. Anecdotes like this really help with putting our situation in perspective. Regarding the private school, we moved south from up north (where we had great public schools) six years ago. The schools in our area are here are sadly horrendous and it's just not an op...
by WarChest
Sun Nov 12, 2017 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: Another "Can We Afford This House" ?
Replies: 28
Views: 2580

Re: Another "Can We Afford This House" ?

"2 kids in costly private school"... I'd be willing to bet that there are good public schools near you. Better to pay up for a house in a good district and go public. Save the many hundreds of thousands of dollars it will cost you to send 2 kids through private. I know, I know, people have different...
by WarChest
Fri Nov 10, 2017 11:44 pm
Forum: Personal Finance (Not Investing)
Topic: Did you tell anyone you paid off your mortgage?
Replies: 328
Views: 34755

Re: Did you tell anyone you paid off your mortgage?

On another note, I'll be interested in seeing how these discussions go (paying off vs. not paying off mortgage) when the market's in the sh!tter. I suspect there won't be as many people talking about enjoying a big mortgage payment so they can pump more of their money into the market. This. 1, 3, 5...
by WarChest
Wed Nov 08, 2017 11:50 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone own a home and drop insurance coverage after mortgage paid off?
Replies: 61
Views: 5051

Re: Anyone own a home and drop insurance coverage after mortgage paid off?

OP here, thanks for the replies. We are keeping the home insurance for now (with high deductible it's only about $600/year). We just set up a HELOC which actually requires insurance in place so that helped with the decision. Also, while I ascribe little value to the structure (especially if we are g...
by WarChest
Wed Nov 08, 2017 11:35 pm
Forum: Personal Finance (Not Investing)
Topic: Equity Line Of Credit ??.......
Replies: 16
Views: 1344

Re: Equity Line Of Credit ??.......

Yes! Just set mine up. House almost fully paid off and got $500k line in place. Why not? No fees to set up, annual fee of just $75 (waived first year). "The best time to borrow is when you don't need the money" Haters will say "but they can take the line away from you at their option". Yeah, but if ...
by WarChest
Fri Oct 27, 2017 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: Can I retire today?
Replies: 132
Views: 7651

Re: Can I retire today?

hoops777 wrote: ↑
Fri Oct 27, 2017 6:15 pm
Congrats and that is a great pension that I and my fellow Californians are paying for :( :D
+100000
by WarChest
Sat Sep 23, 2017 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone own a home and drop insurance coverage after mortgage paid off?
Replies: 61
Views: 5051

Re: Anyone own a home and drop insurance coverage after mortgage paid off?

So I guess what's important to note is that we are fairly sure we will do a major remodel/demo in the next handful of years. So if the place burns down then oh well, we'll accelerate the timeline. As for liability, people mention that and I guess I kinda agree. But I have my doubts as to how reasona...
by WarChest
Sat Sep 23, 2017 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone own a home and drop insurance coverage after mortgage paid off?
Replies: 61
Views: 5051

Re: Anyone own a home and drop insurance coverage after mortgage paid off?

House is 1500 sq ft and while livable, I would call it a pretty good remodel or even full tear down candidate. We will likely seek to do a major remodel sometime in the next handful of years. Insurance has the structure value at like $275k. I would call the land value $1.2mm or a bit more.
by WarChest
Sat Sep 23, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone own a home and drop insurance coverage after mortgage paid off?
Replies: 61
Views: 5051

Anyone own a home and drop insurance coverage after mortgage paid off?

Wondering if anyone here has experience (positive or negative) with getting rid of their homeowners policy completely after they paid off their mortgage. Does it make sense to essentially self insure if one can afford it? The vast majority of the value of my property is in the land. I have to pay ho...
by WarChest
Fri Sep 15, 2017 11:15 pm
Forum: Investing - Theory, News & General
Topic: Howard Marks on Passive Investing
Replies: 16
Views: 3130

Re: Howard Marks on Passive Investing

After scrambling a bit, Oaktree doesn't make it too easy, I think I've determined that Oaktree offers only one mutual fund available in the U.S., "Oaktree High Yield Bond Fund Institutional Class OHYIX," and it's only existed for three years, so no good basis for a comparison. Nevertheless, I will ...
by WarChest
Sun Jul 23, 2017 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 92
Views: 7538

Re: 4% mortgage rate vs 2.5% BND yield

Folks, I have a 300K 3.49% 30 years mortgage. I could pay it off anytime. My annual expense with the mortgage is 60K per year. My annual expense without the mortgage is 45K per year. My portfolio is approximately 60/40 and the annual returns average 7% per year . 1) If I do not pay off the mortgage...
by WarChest
Fri Jul 21, 2017 11:40 am
Forum: Investing - Theory, News & General
Topic: Balanced fund (or target date) daily re-balancing?
Replies: 3
Views: 506

Balanced fund (or target date) daily re-balancing?

Isn't a balanced fund or target date fund re-balancing daily? If so, why are people seemingly totally OK with that, but when it comes to someone having a target AA, it seems the common wisdom is to re-balance less frequently? It seems like people here use 5% or maybe 2.5% re-balance bands but a bala...
by WarChest
Thu Jul 20, 2017 4:24 pm
Forum: Investing - Theory, News & General
Topic: Cash out refinance residence to invest?
Replies: 11
Views: 1040

Re: Cash out refinance residence to invest?

It depends on so many things. I'm all for not really market timing regular contributions, etc. But with something like this I would say only do it after you've seen a really crummy market run. Total stock is up something like 14.5%/year over past 5 years. Right now ain't the time to take on leverage...
by WarChest
Thu Jul 20, 2017 12:14 pm
Forum: Investing - Theory, News & General
Topic: Slow, steady AA glide path as long as stocks hit new highs?
Replies: 21
Views: 2224

Re: Slow, steady AA glide path as long as stocks hit new highs?

For example, if all else were equal but the market fell 30%+ from highs, I would NOT be increasing my bond percentage as I think it would make sense to pause the glide path. If anything I would like to think that I would have the courage to over-rebalance and go to an even lower bond allocation if ...
by WarChest
Thu Jul 20, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 92
Views: 7538

Re: 4% mortgage rate vs 2.5% BND yield

I also would like to add that I hope when everyone figures out what their tax savings are from carrying a mortgage they are subtracting out the loss of standard deduction. . Only relevant if the mortgage is what is making it worthwhile to itemize. If state and local taxes, charitable donations, etc...
by WarChest
Wed Jul 19, 2017 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Those Of You In a HCOLA - What's Your Financial Plan
Replies: 68
Views: 7515

Re: Those Of You In a HCOLA - What's Your Financial Plan

You are doing a great job and your head is in the right place. I think at this point your goal should be to try to increase your earnings while keeping your spending as flat as possible. Others are right, after family, the biggest reason people are in HCOL areas is employment opportunity. I'm in LA,...
by WarChest
Wed Jul 19, 2017 5:49 pm
Forum: Investing - Theory, News & General
Topic: Slow, steady AA glide path as long as stocks hit new highs?
Replies: 21
Views: 2224

Re: Slow, steady AA glide path as long as stocks hit new highs?

I actually agree a time-based method doesn't always make much sense. For example, if all else were equal but the market fell 30%+ from highs, I would NOT be increasing my bond percentage as I think it would make sense to pause the glide path. If anything I would like to think that I would have the c...
by WarChest
Wed Jul 19, 2017 12:26 pm
Forum: Investing - Theory, News & General
Topic: Slow, steady AA glide path as long as stocks hit new highs?
Replies: 21
Views: 2224

Slow, steady AA glide path as long as stocks hit new highs?

I'm curious how people institute glide paths when doing an age in bonds or age minus 10 in bonds. I'm using contributions and/or small trims of equities to slowly bring up my bond allocation by about 0.1% per month (I am using age minus 10 for bond allocation). Do many others go slow and steady like...
by WarChest
Tue Jul 18, 2017 11:59 pm
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 92
Views: 7538

Re: 4% mortgage rate vs 2.5% BND yield

OP here. Boy, with everyone getting such cheap leverage and mortgages being such a bad deal for the lender, makes you wonder who these dumb dumb lenders are. Oh wait, I think it's largely you and me via our total bond market funds. :oops: I think as someone said, it largely comes down to personal ci...
by WarChest
Sun Jul 16, 2017 11:30 am
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 92
Views: 7538

Re: 4% mortgage rate vs 2.5% BND yield

One reason is that while 4% is a high rate now, the mortgage is for a long time, maybe 30 years. If rates return to historical levels, you can have a 4% mortgage while bonds/CDs etc. yield 5% or 6%. If that happens, you would be glad to have that "low" rate mortgage. When I bought my first house in...
by WarChest
Sun Jul 16, 2017 11:28 am
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 92
Views: 7538

Re: 4% mortgage rate vs 2.5% BND yield

Because the question isn't mortgage vs total bond fund, the question is mortgage vs overall portfolio return. If your overall portfolio is expected to return less than a tax adjusted 4% then yes, it would make sense to pay down your mortgage. Ah ha! I think that's exactly it. You nailed it and that...
by WarChest
Sun Jul 16, 2017 11:18 am
Forum: Personal Finance (Not Investing)
Topic: 4% mortgage rate vs 2.5% BND yield
Replies: 92
Views: 7538

4% mortgage rate vs 2.5% BND yield

Why are seemingly so many on this forum (and elsewhere) often so keen on not paying down a mortgage balance, but at the same time willing to buy BND at its current "low" yield level? I get that in a practical sense you lose liquidity paying down a mortgage and having some BND allocation is useful fo...
by WarChest
Sat Jul 15, 2017 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: california homeowners - do you have earthquake insurance?
Replies: 79
Views: 6691

Re: california homeowners - do you have earthquake insurance?

It's all about your home value (the actual structure) vs your land value. In many (dare I say most?) of the major population centers, the land value exceeds the structure value. My actual house is worth something like $250k and the land is worth roughly $1.2mm. In this situation or something with a ...
by WarChest
Sun Jun 04, 2017 12:52 pm
Forum: Investing - Theory, News & General
Topic: Everything keeps going up, this feels too easy?
Replies: 113
Views: 10119

Re: Everything keeps going up, this feels too easy?

OP here. I love the percent to completion glide path idea and I guess that's kind of what I have been thinking about. To take things to an extreme, shouldn't most people adjust their AAs by a large amount if stock markets doubled or tripled over a short time period? One's AA should be heavily influe...
by WarChest
Sat Jun 03, 2017 3:11 pm
Forum: Investing - Theory, News & General
Topic: Everything keeps going up, this feels too easy?
Replies: 113
Views: 10119

Re: Everything keeps going up, this feels too easy?

I check my portfolio and breakdown often and am very close to my target AA which is roughly age minus 10 for bonds. I don't mean this thread to be all about my personal situation, more just curious how this long extended bull market in seemingly everything has been impacting others and what actions ...
by WarChest
Sat Jun 03, 2017 2:52 pm
Forum: Investing - Theory, News & General
Topic: Everything keeps going up, this feels too easy?
Replies: 113
Views: 10119

Everything keeps going up, this feels too easy?

Stock markets (both US and non-US) are having a really great 2017 and many are at record highs. Real estate is at record highs in many places. Even bond prices (the past few months at least) have been going up. Does anyone else get a little uneasy when they look at their portfolio balances go up up ...
by WarChest
Mon Mar 27, 2017 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Red light camera Fort Worth
Replies: 50
Views: 4144

Re: Red light camera Fort Worth

Don't pay it. I got one in an area of Los Angeles that still uses cameras and didn't pay. Nothing has happened since. The courts are not enforcing (reporting to DMV or credit agencies) due to the multiple legal challenges. Sad that a few areas within LA still try to use the cameras to loot the pocke...
by WarChest
Sat Mar 18, 2017 11:34 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 57
Views: 5748

Re: Advice: Overextending by buying? How much house to buy?

This thread is getting interesting. There is so much discussion on these boards about asset allocation, tilting, being frugal, etc. But housing is just so ridiculously expensive in HCOL coastal areas that nothing really even compares in terms of moving the needle with respect to personal finances. T...
by WarChest
Fri Mar 17, 2017 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 57
Views: 5748

Re: Advice: Overextending by buying? How much house to buy?

Side note: All this "employer housing assistance" is nuts. If employers keep doing this they aren't really doing much of a service because all the subsidy does is continue to inflate local property values to the point where more and more subsidy is needed. Shooting themselves in the foot i...
by WarChest
Fri Mar 17, 2017 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 57
Views: 5748

Re: Advice: Overextending by buying? How much house to buy?

A few things. You are just about to jump total household income by a large margin. Seems premature to take on a big debt load right away. It's good to let big changes in your financial picture age a little bit. That way you get used to the new income level and can bank a bunch of free cash flow whil...
by WarChest
Sun Feb 26, 2017 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking progress to $1M portfolio and no mortgage by 40
Replies: 59
Views: 13641

Re: Tracking progress to $1M portfolio and no mortgage by 40

Can I ask why you have this as a goal? I'm curious because I had a similar goal and now that we've reached it, I find myself just upping the numbers. Also, something about having a lot of money tied up in retirement funds for me seems sort of anti-climatic. I don't mean to be a downer, you're doing...
by WarChest
Mon Feb 20, 2017 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking progress to $1M portfolio and no mortgage by 40
Replies: 59
Views: 13641

Re: Tracking progress to $1M portfolio and no mortgage by 40

This is a cool thread but I'd suggest that $1mm portfolio is less relevant than one might think. As we all know, it's not about the dollar value, but instead one's spending rate in relation to portfolio size. If you have expenses of $40k and get to this $1mm portfolio and no mortgage then you are fi...
by WarChest
Mon Feb 20, 2017 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: CFA or other qualified hourly professional recommendation
Replies: 4
Views: 579

Re: CFA or other qualified hourly professional recommendation

Someone "with a CFA" can't actually say they are a CFA or have a CFA...they gotta say something like "I have achieved the CFA designation"...silly but hey. I've achieved the CFA designation and can tell you this is really going to come down to personal preferences, risk tolerance...
by WarChest
Sun Feb 12, 2017 4:29 pm
Forum: Investing - Theory, News & General
Topic: Why go with an 80% stock / 20% bond portfolio?
Replies: 360
Views: 34285

Re: Why go with an 80% stock / 20% bond portfolio?

I'm in my early 30s and am moving towards an 80/20 target. I am all for ignoring the noise and avoiding market timing, but you can't ignore that there are better odds of being heavy or light in your equity allocation depending on how long of an up (or down) swing there's been. Shifting a bit at the ...
by WarChest
Sun Jan 29, 2017 12:16 am
Forum: Personal Finance (Not Investing)
Topic: Determining max amount to spend on a house?
Replies: 27
Views: 3677

Re: Determining max amount to spend on a house?

Very familiar with the areas you're considering. 2.5 will buy you something nice. I don't think you can even get into Piedmont for less than 2 now. Sure you can: m Two for under $1.5M. Planning on a $2.5M purchase, when only $1M of the mortgage is deductible is crazy. No need to spend that much, an...
by WarChest
Sat Jan 28, 2017 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Determining max amount to spend on a house?
Replies: 27
Views: 3677

Re: Determining max amount to spend on a house?

You are in an awesome position! Guessing you are in your 30s with a gross annual household income somewhere within $1mm? Your peers/coworkers who are less responsible and have similar levels of income will no doubt be spending far more than $2.5mm on a house because after a large down payment the ba...
by WarChest
Sat Jan 28, 2017 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage to avoid insurance premium?
Replies: 18
Views: 1110

Re: Paying off mortgage to avoid insurance premium?

And I don't think I'm quite at this level of thinking, but I seem to be moving towards the view of Money Mustache as I get older and more able to self insure

http://www.mrmoneymustache.com/2011/06/02/insurance-a-tax-on-people-who-are-bad-at-math/
by WarChest
Sat Jan 28, 2017 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage to avoid insurance premium?
Replies: 18
Views: 1110

Re: Paying off mortgage to avoid insurance premium?

Also, I do think the costs are small but they add up. Homeowners policy is around $750/year, umbrella was around $200/year for $1mm of coverage, and of course you need higher auto/home limits to even qualify for the umbrella so would add some implicit expense there. All in call it $1k-$1.5k per year...
by WarChest
Sat Jan 28, 2017 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage to avoid insurance premium?
Replies: 18
Views: 1110

Re: Paying off mortgage to avoid insurance premium?

If someone is on your property legally and is injured or killed and the lawyers decide they want your house, land, retirement money and all other assets, you're ok with that? Of course not, but I just ascribe such a low probability to something happening that I guess I'm ok rolling the dice. Even i...
by WarChest
Sat Jan 28, 2017 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage to avoid insurance premium?
Replies: 18
Views: 1110

Re: Paying off mortgage to avoid insurance premium?

These are all great points and I appreciate the responses. Sounds like what I am considering is certainly out of the norm (as I figured it would be).

And yes, I am a cheap-ass, my wife reminds me of this often :)
by WarChest
Sat Jan 28, 2017 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage to avoid insurance premium?
Replies: 18
Views: 1110

Re: Paying off mortgage to avoid insurance premium?

Yeah I guess you could say I self insure...I dropped my umbrella a few years ago as even though the premium was only a few hundred a year, I didn't see it being worth it. I'm in my early 30s and close to being FI though I plan to keep working as I enjoy my work, so I figure if lightning strikes I ca...
by WarChest
Sat Jan 28, 2017 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage to avoid insurance premium?
Replies: 18
Views: 1110

Re: Paying off mortgage to avoid insurance premium?

Maybe though I doubt it would be too much cheaper. I just ascribe such a low probability of something happening where I would need any liability coverage that I'm not sure I would be willing to pay for it.
by WarChest
Sat Jan 28, 2017 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage to avoid insurance premium?
Replies: 18
Views: 1110

Paying off mortgage to avoid insurance premium?

Has anyone here eliminated their homeowners policy after they paid off their mortgage? It sounds dangerous or aggressive to not carry a homeowners policy but I was thinking it might make sense given my situation. The vast majority of the value of my property is in the land (Los Angeles area), so if ...
by WarChest
Wed Jan 25, 2017 11:17 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone moved to another state for lower cost of living?
Replies: 72
Views: 11188

Re: Anyone moved to another state for lower cost of living?

This is a great thread! I live on west side of Los Angeles and housing is totally ridiculous. It's the entire driving force of "cost of living" and personal finance here. Young professionals mortgaging themselves to buy a crummy little house for over $1mm. I've been lucky, but I wonder abo...
by WarChest
Wed Dec 21, 2016 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage recast strategy - Feedback needed
Replies: 54
Views: 5943

Re: Mortgage recast strategy - Feedback needed

Get an ARM, then you get recast at every reset. I have a 5/1 ARM and am almost done with the first 5 years and have been paying down the mortgage like a madman. Payment going to drop from $2500/month to $1500/month despite rate going from 2.75% to likely around 4%.
by WarChest
Sun Dec 11, 2016 4:19 pm
Forum: Investing - Theory, News & General
Topic: Jason Zweig - Ben Graham speech
Replies: 16
Views: 4706

Re: Jason Zweig - Ben Graham speech

How do people feel about Graham's suggestion of having between 25% and 75% in stocks? I find it interesting given all the talk of 100% equities allocations and even longer target date retirement funds allocating well north of 75% to stocks. With equity indices at record highs and the S&P 500 tra...
by WarChest
Sun Oct 09, 2016 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Is it worth it to pay extra principal towards mortgage?
Replies: 44
Views: 8003

Re: Is it worth it to pay extra principal towards mortgage?

You are sitting on unrealized losses on individual stocks -- so sell them all NOW. Take whatever cash you need from those proceeds and pay down the loan to the point where you eliminate the PMI (and avoid any appraisal fees). Then take the balance of that cash and fully fund retirement accounts by b...
by WarChest
Fri Oct 07, 2016 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: So many threads about mortgages!
Replies: 19
Views: 1921

Re: So many threads about mortgages!

Yes, of course refinancing makes sense if you can do it efficiently and get a much lower rate. And I don't want to turn this into a "pay off mortgage vs invest" argument. I'm simply questioning all the hubbub and glee about low mortgage rates. Paying interest which even net of tax advantag...
by WarChest
Fri Oct 07, 2016 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: So many threads about mortgages!
Replies: 19
Views: 1921

Re: So many threads about mortgages!

Also agree it's nice to get a tax break but in high tax states I think people don't realize that with higher incomes you get smacked with AMT such that you don't get nearly the full break you think you do.