Search found 75 matches

by amd7239
Thu Jul 20, 2017 4:14 pm
Forum: Investing - Theory, News & General
Topic: Bogle is pro-SCV!
Replies: 36
Views: 3755

Re: Bogle is pro-SCV!

zaboomafoozarg wrote:
amd7239 wrote:The SCV tilt debate is over!

http://paulmerriman.com/10-lessons-jack ... dex-funds/


Just like the US-international allocation debate is over because Bogle advocates US-only? :D


Dammit, you're right!
by amd7239
Thu Jul 20, 2017 2:42 pm
Forum: Investing - Theory, News & General
Topic: Bogle is pro-SCV!
Replies: 36
Views: 3755

Bogle is pro-SCV!

by amd7239
Tue Jul 18, 2017 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Rates in 3 years?
Replies: 26
Views: 2267

Re: Mortgage Rates in 3 years?

Interest only mortgage One word - ARM! Adjustable Rate Mortgage. FHA mortgages You have 3 years to learn the ins and outs of mortgage financing. If you went to get a mortgage today, i can easily see you falling victim to unscrupulous mortgage broker who will make it seem as if everything is hunky d...
by amd7239
Tue Jul 18, 2017 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Rates in 3 years?
Replies: 26
Views: 2267

Re: Mortgage Rates in 3 years?

Do not base the house you can buy on the monthly payment. There are all sorts of creative financing arrangements that are good for the lending/realtor community but not for buyers. What are some of these "creative financing arrangements" and how can I sanity check them? Is simply comparin...
by amd7239
Tue Jul 18, 2017 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Rates in 3 years?
Replies: 26
Views: 2267

Re: Mortgage Rates in 3 years?

sls239 wrote:And don't look at homes 3 years early.


Why? Because interest rates are uncertain?

In my case, I am doing this because I wish to set expectations with my girlfriend. If she sees what a house we can afford looks like, she will hopefully become a little more grounded in reality.
by amd7239
Tue Jul 18, 2017 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Rates in 3 years?
Replies: 26
Views: 2267

Mortgage Rates in 3 years?

My girlfriend and I are discussing our financial future/retirement. We plan to buy a house in 3 years or so. I need to figure out how much house we can afford so I can set expectations early (she wants a big house, and I don't). I want to decide this based on the monthly payments rather than home pr...
by amd7239
Sat Jul 15, 2017 7:35 am
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

Correct - the 401k and or deductible traditional ira is where most of your savings should probably go. Do not contribute to an IRA that is non deductible. You don't absolutely need a Roth but it's helpful to have some Roth money to take out in your retirement years where you may have more income or...
by amd7239
Fri Jul 14, 2017 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

So if I max out my 401k, it would be more like 38k/year because of my lower taxable income (I would be contributing $15k more, and 70% of that is about 10k)? I'm not quite sure what "it" refers to, and I think we are looking at the calculation from different viewpoints. Run a trial of you...
by amd7239
Fri Jul 14, 2017 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

It really all depends on what kind of lifestyle you expect to have at age 50. Unless you are going to live as frugally as Mr Money Mustache - to retire at 50 you will need to start maxing out your 401k yesterday AND also you will likely need to save after tax (like a roth) and some in a taxable acc...
by amd7239
Fri Jul 14, 2017 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

So if I max out my 401k, it would be more like 38k/year because of my lower taxable income (I would be contributing $15k more, and 70% of that is about 10k)? I'm not quite sure what "it" refers to, and I think we are looking at the calculation from different viewpoints. Run a trial of you...
by amd7239
Fri Jul 14, 2017 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

I suggest you take a look at the link below from Mr. Money Mustache. Now I know some here like to nitpick certain aspects of his philosophy, but I believe the charts in this link do a great job at illustrating approximately how much you will need to save to retire early. http://www.mrmoneymustache....
by amd7239
Fri Jul 14, 2017 10:59 am
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

My goal is to retire at 50. According to MMM's shockingly simple math for early retirement, you should save 40% for retirement. I am almost 27 years old and work a 9-5 steady job paying 76k/yr. I have 60k saved up, but I don't know if that's enough. Enough for what? Emergency fund, taxable account,...
by amd7239
Fri Jul 14, 2017 7:33 am
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

$600k house with 20% down is probably at least $3k per month PITI. That's almost half your gross income. Even assuming you could get financing, you'd be massively house poor and likely unable to save anything for retirement at that point. I think you need to either try to keep renting or find a sma...
by amd7239
Fri Jul 14, 2017 7:31 am
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

Given the typical boglehead advice, I am pretty sure you knew what the answer would be. So instead, ask yourself some questions: When do you think it will be easier to contribute than while you are living with your parents? Since you have clearly demonstrated an understanding about how max contribu...
by amd7239
Thu Jul 13, 2017 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

Given the typical boglehead advice, I am pretty sure you knew what the answer would be. So instead, ask yourself some questions: When do you think it will be easier to contribute than while you are living with your parents? Since you have clearly demonstrated an understanding about how max contribu...
by amd7239
Thu Jul 13, 2017 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

Max it out NOW and for every year until you're 50 and you'll retire with ease!! Man do I wish I could have done that at 27!! :D I wish I was that confident! I hear a lot that expected inflation-adjusted returns of equities are more like 1% (assuming inflation is 3%). In that case I don't know if ea...
by amd7239
Thu Jul 13, 2017 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

I think the fastest way to reach the max would be to go straight from 4% to 20+% after reaching my savings goal. That's why I suggested 10%. Already making an excuse for not trying to increase the 401k by just 6%. That shouldn't be a big deal and you will be taking a balanced approach to savings, r...
by amd7239
Thu Jul 13, 2017 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

One other thing. Tax brackets. Which one are you in and if you did contribute more would you drop down to the 15%?? That could be a big savings and tax incentive for 401k contributions. I'm in the 25% tax bracket - even if I maxed it my 401k and IRA though, I still wouldn't be able to drop to the 1...
by amd7239
Thu Jul 13, 2017 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

I also live in the Boston-area. A lot of people say a good rule of thumb on a home purchase is 2x gross income. Those of us in HCOL areas might complain and say it is impossible, but even in these markets it's possible if you're willing to make sacrifices. My Wife and I are currently making $150kis...
by amd7239
Thu Jul 13, 2017 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

Can you explain the bolded part? Everyone is encouraging you to start working towards maxing out your contributions and you seem to be saying that taking a baby step towards that max means it will take you longer to reach the max? You either take the baby step or change to the max tomorrow, what th...
by amd7239
Thu Jul 13, 2017 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

Why do you need 150k for a house down payment? How expensive of a house are you looking at? I live near Boston, a 3BR would be 600k in the suburbs. A 20% down payment plus 5% for closing costs, reserves needed for the bank to accept the loan, paying a lawyer/title company, etc. comes to 25% - that'...
by amd7239
Thu Jul 13, 2017 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

That's way too much house for your income. Now if your combined income is sufficient ok but that also affects this entire thread. Unless you have a great combined income buying such an expensive house will have a negative impact to saving and retiring early. Really? Interesting - Do you have any ru...
by amd7239
Thu Jul 13, 2017 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

EF: 14k expenses, 7k EF for 6 months EF: 38k expenses, 19k EF for 6 months. You said you have 60k saved. Is that cash? Yes that's in cash So you have your EF and some for the wedding and the house. Why 150k for downpayment? Is that 20% down or more than 20%? To nitpick you are only contributing 4% ...
by amd7239
Thu Jul 13, 2017 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

mortfree wrote:
amd7239 wrote:
mortfree wrote:Why 150k for downpayment? Is that 20% down or more than 20%?


Plz see my response to climber2020 above for that
by amd7239
Thu Jul 13, 2017 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

Why do you need 150k for a house down payment? How expensive of a house are you looking at? I live near Boston, a 3BR would be 600k in the suburbs. A 20% down payment plus 5% for closing costs, reserves needed for the bank to accept the loan, paying a lawyer/title company, etc. comes to 25% - that'...
by amd7239
Thu Jul 13, 2017 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

[quote="mortfree"]EF: 14k expenses, 7k EF for 6 months EF: 38k expenses, 19k EF for 6 months. quote] Yes, I do have an emergency fund now but that will be gone after the maybe house down payment of 150k and wedding. The 40-year future value of this down payment is pretty big, huh? Maybe I ...
by amd7239
Thu Jul 13, 2017 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

mortfree wrote:EF: 14k expenses, 7k EF for 6 months

EF: 38k expenses, 19k EF for 6 months.

You said you have 60k saved. Is that cash?


Yes that's in cash
by amd7239
Thu Jul 13, 2017 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

OP, 1) 401K is a tax-deferred account. It is not a retirement account. You can take money out before 59 1/2 years old without paying penalty if you do it right. So, unless you like paying a lot of taxes, why won't you keep more of your own money in your own pocket. 2) You should contribute 5.5K to ...
by amd7239
Thu Jul 13, 2017 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

Max it out now If you get married you probably won't even have that option to max the 401k. However, the sooner you do it the less you'll miss that money and it will give you a chance to adjust your finances so you might be able to continue to max it out in the future. Are you eligible for a Roth I...
by amd7239
Thu Jul 13, 2017 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

Re: When to max out 401k (Aspiring Early Retiree)

mortfree wrote:Max it out now
If you get married you probably won't even have that option to max the 401k.


Why wouldn't I be able to max out the 401k while married?

mortfree wrote:Are you eligible for a Roth IRA?


I have a roth IRA as well. I max that out each year (I've been doing it for 3 years so it has 17k or so)
by amd7239
Thu Jul 13, 2017 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4642

When to max out 401k (Aspiring Early Retiree)

My goal is to retire at 50. I am almost 27 years old and work a 9-5 steady job paying 76k/yr. I have 60k saved up, but I don't know if that's enough. I have no debt. I live with my parents and own my car free and clear. I am anticipating the following costs: - Maybe buy a home (still debating rentin...
by amd7239
Tue May 23, 2017 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

How about withdrawals? I've read conflicting things about penalty-free withdrawals from Roth IRA's and 401k's Some say none until 59.5/55 others say you can take out principle any time (5 year rule on 401k) one said that there was a formula for whatever you took out as to what portion is principle ...
by amd7239
Tue May 23, 2017 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

The Bogleheads Wiki discusses the issue extensively, and there are many threads on the topic. I strongly urge you to read the former and some of the latter. The short answer is that if your marginal (top) tax bracket will be lower in retirement than it is now, you should be 'all in' with the tradit...
by amd7239
Tue May 23, 2017 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

The Bogleheads Wiki discusses the issue extensively, and there are many threads on the topic. I strongly urge you to read the former and some of the latter. The short answer is that if your marginal (top) tax bracket will be lower in retirement than it is now, you should be 'all in' with the tradit...
by amd7239
Tue May 23, 2017 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

At today's rates, even if all your income was taxable earned income, with a standard deduction and your personal exemption, you would need only ~57,500 to generate 50k in spending money. $75k is based on a 35% net difference between pre-tax income and take home pay. What would be a more reasonable ...
by amd7239
Tue May 23, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

I am a bit confused here. You said "If your certain you will be in a lower tax bracket in retirement, a traditional 401k or IRA would be preferable to Roth accounts. ". If so, why did you recommend having a mix (maxing out traditional 401k before a ROTH IRA)? Why not recommend traditional...
by amd7239
Tue May 23, 2017 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

OK so we are talking about investing less in the Roth IRA, and more in the traditional 401k, waiting until I get my tax return comes, then investing my tax return into the Roth IRA? Or not waiting to adjust your W-4 (if needed to decrease your tax free loan to the IRS), but in any case contributing...
by amd7239
Tue May 23, 2017 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

That's a unique opinion on the subject that isn't shared by the majority of Bogleheads. I would go back and max out the 401k before I started taxable investing. Is this recommended because my tax bracket will be lower in retirement or is there another reason that I don't know of? I apologize, I was...
by amd7239
Tue May 23, 2017 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

My employer has a roth 401k option and for the longest time I was 100% roth. After some reading and education by way of the Boglehead site, I realized that being in the 28% bracket now, I would be better off with going the traditional route. A plus is that if you are not already maxing out your ROT...
by amd7239
Tue May 23, 2017 11:51 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

What is the optimal proportion of Roth and Traditional contributions to your retirement? I have a traditional 401k and a roth IRA. I have heard that it is good to have a mix of both because each should be withdrawn at a different phase of your retirement (although I don't know how that works). Has ...
by amd7239
Tue May 23, 2017 11:45 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

My employer has a roth 401k option and for the longest time I was 100% roth. After some reading and education by way of the Boglehead site, I realized that being in the 28% bracket now, I would be better off with going the traditional route. A plus is that if you are not already maxing out your ROT...
by amd7239
Tue May 23, 2017 11:41 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

I actually have access to most mutual funds in my 401k (via Fidelity BrokerageLink), so poor 401k choices is not an issue for me. If the choices are also low cost, then your Traditional vs Roth decision is mainly based on what your tax rate is for contributions vs what if will be in retirement, inc...
by amd7239
Tue May 23, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

My employer has a roth 401k option and for the longest time I was 100% roth. After some reading and education by way of the Boglehead site, I realized that being in the 28% bracket now, I would be better off with going the traditional route. A plus is that if you are not already maxing out your ROT...
by amd7239
Tue May 23, 2017 11:33 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

1. contribute enough to maximize any employer match on a deferred account (401k or 403b) 2. max your annual Roth IRA contribution 3. contribute enough to max out your deferred account. 4. only then would I contribute to taxable investments. This is the suggested order if you have poor choices in yo...
by amd7239
Tue May 23, 2017 11:30 am
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

What is the optimal proportion of Roth and Traditional contributions to your retirement? I have a traditional 401k and a roth IRA. I have heard that it is good to have a mix of both because each should be withdrawn at a different phase of your retirement (although I don't know how that works). Has ...
by amd7239
Mon May 22, 2017 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

Re: % Roth vs. % traditional

What is the optimal proportion of Roth and Traditional contributions to your retirement? I have a traditional 401k and a roth IRA. I have heard that it is good to have a mix of both because each should be withdrawn at a different phase of your retirement (although I don't know how that works). Has ...
by amd7239
Mon May 22, 2017 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 3824

% Roth vs. % traditional

What is the optimal proportion of Roth and Traditional contributions to your retirement? I have a traditional 401k and a roth IRA. I have heard that it is good to have a mix of both because each should be withdrawn at a different phase of your retirement (although I don't know how that works). I con...
by amd7239
Mon May 22, 2017 4:34 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends Reinvested?
Replies: 10
Views: 655

Re: Dividends Reinvested?

With a 401(k), it is difficult to turn them off or maybe even impossible. Use the chat features with your netbenefits.fidelity.com and get help. In case anyone is wondering, it is possible with fidelity: 1. Click on the "Accounts & Trade" tab 2. Select "Account Features" 3. ...
by amd7239
Mon May 22, 2017 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends Reinvested?
Replies: 10
Views: 655

Re: Dividends Reinvested?

are you using vanguard or fidelity or both? do you want to know where to go on the website to turn them on/off? Using both - my Roth is with Vanguard and my 401k is with fidelity brokerageLink Yep that's what I'm trying to figure out - how to turn them on/off. Since I have only been in these funds ...
by amd7239
Mon May 22, 2017 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends Reinvested?
Replies: 10
Views: 655

Re: Dividends Reinvested?

livesoft wrote:With a 401(k), it is difficult to turn them off or maybe even impossible. Use the chat features with your netbenefits.fidelity.com and get help.


I'll do that, thanks!

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