Search found 3434 matches

by avalpert
Wed May 25, 2016 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: 4% of what?
Replies: 5
Views: 275

Re: 4% of what?

It is 4% of everything - taxes are an expense to be accounted for in the 4%. There are strategies and tactics you can employ at the time to reduce that expense.
by avalpert
Wed May 25, 2016 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Do Households Save More When the Kids Leave Home?
Replies: 7
Views: 408

Re: Do Households Save More When the Kids Leave Home?

That is really weak analysis - definitely not enough to support the broad conclusions they draw. They didn't do anything to validate how likely people in general are to shift 401k savings rates at that stage in life (when they may have been on autopilot for years), they didn't look at IRA increases,...
by avalpert
Wed May 25, 2016 2:47 pm
Forum: Personal Consumer Issues
Topic: How much do you spend on trips/vacations?
Replies: 63
Views: 3534

Re: How much do you spend on trips/vacations?

Once they are out of diapers, what specialized luggage do you need? Mostly what I was thinking about were strollers, car seats, sippee cups, and entertainment. Once they reach five, it seems their attention span is long enough that watching movies and using the infotainment system is enough to keep...
by avalpert
Wed May 25, 2016 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Inheritance Recommendations
Replies: 14
Views: 1441

Re: Inheritance Recommendations

My condolences. Don't anchor on the $350k house. The entire inheritance is one pool of assets - if you are inclined to buy a house (because you believe it is the right lifestyle choice for you now) decide how much you could afford on it based on your complete financial picture, lifestyle needs and t...
by avalpert
Wed May 25, 2016 8:44 am
Forum: Personal Consumer Issues
Topic: How much do you spend on trips/vacations?
Replies: 63
Views: 3534

Re: How much do you spend on trips/vacations?

Why? We never took an extended break (our first international trip after the first kid she was ~9 months, our first domestic short trip without her she was ~4 months). Mostly because we're planning to drop down to 1 income after the kids come but also because you're much braver than I am. Hopefully...
by avalpert
Tue May 24, 2016 4:05 pm
Forum: Personal Consumer Issues
Topic: How do Bogleheads TRAVEL?
Replies: 75
Views: 7474

Re: How do Bogleheads TRAVEL?

Bogleheads: In this noisy world of headline news, commentators, brokers, experts, advisors, expert advisors, pamphlets, editorials, hedge funds, futures, market neutral funds, shorting, annuities, managers of the year, and the like, I've found incredible solace in the well-informed, and sage princi...
by avalpert
Tue May 24, 2016 2:41 pm
Forum: Personal Consumer Issues
Topic: How much do you spend on trips/vacations?
Replies: 63
Views: 3534

Re: How much do you spend on trips/vacations?

We probably spend 6k - 10k a year on vacations/trips. We have been doing a lot of international travel over the past 5 years or so before kids come and we'll probably have to take an extended travel break. Why? We never took an extended break (our first international trip after the first kid she wa...
by avalpert
Tue May 24, 2016 1:27 pm
Forum: Personal Consumer Issues
Topic: How do Bogleheads TRAVEL?
Replies: 75
Views: 7474

Re: How do Bogleheads TRAVEL?

favorite places: jordan (petra, epheseus) Jordan, eh? It is one of the few countries that I have hardly known anybody to visit. I almost made the trek to Petra when I was in Jerusalem a few years back but it didn't work time-wise. It is supposed to be quite amazing. I have traveled elsewhere in the...
by avalpert
Tue May 24, 2016 1:21 pm
Forum: Personal Consumer Issues
Topic: How much do you spend on trips/vacations?
Replies: 63
Views: 3534

Re: How much do you spend on trips/vacations?

We probably spend 6k - 10k a year on vacations/trips. We have been doing a lot of international travel over the past 5 years or so before kids come and we'll probably have to take an extended travel break. Why? We never took an extended break (our first international trip after the first kid she wa...
by avalpert
Tue May 24, 2016 1:19 pm
Forum: Personal Consumer Issues
Topic: How much do you spend on trips/vacations?
Replies: 63
Views: 3534

Re: How much do you spend on trips/vacations?

I don't really budget at all because I'm lucky enough not to be constrained that way. Last year I spent 28% of my post-tax income on trips - largely because we took 4 months and a land rover around Africa. The year before that it was 15% (though of a higher income) which included three weeks in Afri...
by avalpert
Mon May 23, 2016 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: How much Umbrella Insurance?
Replies: 16
Views: 1732

Re: How much Umbrella Insurance?

I see no reason why Umbrella Insurance coverage should be tied to your net worth - it should be based on your potential liabilities.

What liabilities might you be exposed to? Anything about your situation that would make it different than the average wage earner?
by avalpert
Mon May 23, 2016 2:27 pm
Forum: Investing - Theory, News & General
Topic: Bernstein says emergency fund part of your "asset allocation?"
Replies: 48
Views: 3628

Re: Bernstein says emergency fund part of your "asset allocation?"

Keep in mind, regardless of whether you choose to 'count it' in your asset allocation it is part of your holistic risk profile. To me, that is reason to account for it somehow - whether you include it as part of your fixed income allocation, or explicitly acknowledge that you maintain a higher equit...
by avalpert
Sun May 22, 2016 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Buying our 1st House. What do you do when you can only put down 15% instead of 20%?
Replies: 56
Views: 3425

Re: Buying our 1st House. What do you do when you can only put down 15% instead of 20%?

here in this part of tennessee, decent house is above 450k and even that is almost impossible to find. They are now building new houses that are > 500k. I am a little surprised most replies suggested 600k in NJ is expensive. I am curious what you guys say about my situation. I don't think anybody i...
by avalpert
Sat May 21, 2016 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Renting vs owning
Replies: 140
Views: 14316

Re: Renting vs owning

Renting is less costly than buying for people who don't already own property. I'm not sure how that makes sense - someone who already owns property can easily sell said property (let's put transaction costs aside for a second), would it then be less costly for them to rent than buy again? If it wou...
by avalpert
Sat May 21, 2016 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Buying our 1st House. What do you do when you can only put down 15% instead of 20%?
Replies: 56
Views: 3425

Re: Buying our 1st House. What do you do when you can only put down 15% instead of 20%?

Usually only consider buying if the price per sq ft is < $100. I doubt this is helpful advice, among other things it doesn't account for local cost of living variations, inflation ($100 today or $100 10 years ago?), and your alternatives. If you are going to force rules of thumb on situationally sp...
by avalpert
Sat May 21, 2016 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Buying our 1st House. What do you do when you can only put down 15% instead of 20%?
Replies: 56
Views: 3425

Re: Buying our 1st House. What do you do when you can only put down 15% instead of 20%?

Without commenting on affordability and all, you should be able to get a second mortgage (or home equity line) to avoid PMI - whether it makes sense or not will be based on the specific interest rates you are offered and the PMI rate. You also might want to check out SoFi - I know they advertise dow...
by avalpert
Sat May 21, 2016 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Renting vs owning
Replies: 140
Views: 14316

Re: Renting vs owning

Renting is less costly than buying for people who don't already own property. I'm not sure how that makes sense - someone who already owns property can easily sell said property (let's put transaction costs aside for a second), would it then be less costly for them to rent than buy again? If it wou...
by avalpert
Sat May 21, 2016 11:52 am
Forum: Personal Consumer Issues
Topic: Amazon has no head to head competitors?
Replies: 71
Views: 4166

Re: Amazon has no head to head competitors?

Probably a good rule is that if Amazon is selling it, then you probably don't need it. That may be the most ridiculous statement you ever posted here. Given the breadth of what they sell you would be saying you don't need anything from basic groceries to clothing to sink faucets to hammers and scre...
by avalpert
Sat May 21, 2016 11:47 am
Forum: Personal Consumer Issues
Topic: Amazon has no head to head competitors?
Replies: 71
Views: 4166

Re: Amazon has no head to head competitors?

There are lots of competitors for Amazon, even if none are complete competitors. Target and Walmart have been mentioned, Best Buy for electronics, Home Depot, REI, Staples are all places you can order online, track delivery (is there any major online retailer these days where you can't do that?) and...
by avalpert
Fri May 20, 2016 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Rebuilding our house for $1.5M: Bad Idea Financially?
Replies: 87
Views: 7386

Re: Rebuilding our house for $1.5M: Bad Idea Financially?

Financially, it is almost certainly a bad idea and you are highly unlikely to make money doing it (while spending quite a bit). But it really isn't a financial decision - it is a question of consumption needs. If you do need larger space, than you have to evaluate what your options are to get that b...
by avalpert
Fri May 20, 2016 12:41 pm
Forum: Investing - Theory, News & General
Topic: Real return in context
Replies: 2
Views: 233

Re: Real return in context

The formal formula for calculating real return is 1+nominal rate / 1+inflation rate -1. Nominal rate-real rate is just an approximation. So you are correct in that using the approximation will introduce error that over time may be significant - but in reality you aren't comparing to situations of eq...
by avalpert
Thu May 19, 2016 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Signing Bonus -- possible to negotiate to minimize taxes?
Replies: 23
Views: 1558

Re: Signing Bonus -- possible to negotiate to minimize taxes?

Does the company have any deferred compensation program? Rather than push the bonus out of multiple years which they might not do you may be able to defer compensation to balance out the tax hit.
by avalpert
Wed May 18, 2016 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Hiring kids to jumpstart their Roth IRAs
Replies: 13
Views: 1460

Re: Hiring kids to jumpstart their Roth IRAs

I just figured a thousand bucks or 2 when they hit retirement age tax free would be quite a windfall :) i thought 529's were just for college if i can do both why not? and a better thought may be i hire my buddies kids, he hire mine, deposit into roth. maybe won't look so bad :P If you hire your ow...
by avalpert
Tue May 17, 2016 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Kids investment
Replies: 26
Views: 1995

Re: Kids investment

I hope you are also teaching them how to figure out their tax liability, including self-employment tax if they are earning cash not as a w2 employee. I don't think a 16 year old making 100/week needs to worry about paying self employment taxes. You would be wrong, assuming no w2, you need to file a...
by avalpert
Tue May 17, 2016 1:49 pm
Forum: Investing - Help with Personal Investments
Topic: Kids investment
Replies: 26
Views: 1995

Re: Kids investment

I hope you are also teaching them how to figure out their tax liability, including self-employment tax if they are earning cash not as a w2 employee.
by avalpert
Tue May 17, 2016 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20789

Re: Rich But Middle Class

Your entire buffer plus some of the spending isn't coming from income but living off of savings. Which also means there are no new net savings - this really isn't safe for a couple in their early 40s with triplets who they want to send to a $40k/year private school (and all the additional expenses ...
by avalpert
Tue May 17, 2016 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: the 4% rule
Replies: 14
Views: 1946

Re: the 4% rule

It assumes you are withdrawing 4% from your portfolio (adjusted for subsequent inflation) - this 4% can be in the form of dividends or interest not reinvested or assets sold off. The rule is agnostic to where the funds for the withdrawal come from. The rule is derived from actual historic returns - ...
by avalpert
Tue May 17, 2016 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20789

Re: Rich But Middle Class

One of my initial (most important) questions, as well as some pertinent information/assumptions that got lost in the Bottom line: given doctor's salary is ~$350k and relatively stable, could we simply live off of one income? No. You need 2x more. +1. He need to pay tax. And, at that income level, t...
by avalpert
Tue May 17, 2016 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20789

Re: Rich But Middle Class

There has been plenty of research to show that once you pass about $75,000/year money no longer buys happiness. I think OP should ponder on that. Actually, I've seen some pretty convincing arguments against that particular conclusion: http://danluu.com/dunning-kruger/ http://www.brookings.edu/~/med...
by avalpert
Mon May 16, 2016 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Renting vs owning
Replies: 140
Views: 14316

Re: Renting vs owning

And yes, I'm sorry if it is a shock to you but not all landlords are able to make a profit - really. +1 Would think this is fairly obvious --- a landlord can only charge what the market will bear, regardless of the landlord's costs. Will the landlord will continue to lose money for 30 years? Hopefu...
by avalpert
Mon May 16, 2016 2:26 pm
Forum: Personal Consumer Issues
Topic: Multi-destination trip---how to book
Replies: 8
Views: 649

Re: Multi-destination trip---how to book

I would book an open jaw flight to Hong Kong returning from Indonesia (depending on your plans - could do Singapore instead). Then book the other flights locally or check out air asia for deals if you have decent flexibility on timing. You can use google flights (backend is ITA) to compare the cost/...
by avalpert
Mon May 16, 2016 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20789

Re: Rich But Middle Class

I also find it curious that people think living in a wealthy community is a negative in terms of the constant pressure to compare and compete materially, but don't give any mention as to how surrounding oneself with financially successful people may help one to stretch to reach goals and objectives...
by avalpert
Sun May 15, 2016 11:22 pm
Forum: Investing - Help with Personal Investments
Topic: Gifting and receiving back years later
Replies: 27
Views: 1902

Re: Gifting and receiving back years later

In India, The interest rate in fixed deposits >1 yr is 7.25%, the tax on dividends is at marginal tax rate, 30% max. The Long term capital gain taxes is 0%. Can you find that in the US economy? Agreed, some of it (<2%) may be offset by dollar-rupee conversion. A quick google suggests that the India...
by avalpert
Sun May 15, 2016 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20789

Re: Rich But Middle Class

Can the people who claim to save 70% of their income explain how they got their federal, state and local governments to excuse them from paying taxes? I could not save 70% if I spent nothing at all after Social Security, Medicare, federal, state and local taxes. What is the secret? Use after tax in...
by avalpert
Sun May 15, 2016 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20789

Re: Rich But Middle Class

Can the people who claim to save 70% of their income explain how they got their federal, state and local governments to excuse them from paying taxes? I could not save 70% if I spent nothing at all after Social Security, Medicare, federal, state and local taxes. What is the secret? Use after tax in...
by avalpert
Sun May 15, 2016 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: Renting vs owning
Replies: 140
Views: 14316

Re: Renting vs owning

If I was not a homeowner I would not have been able to purchase my business. I don't understand - if you weren't a homeowner why wouldn't you have been able to accumulate the same asset value that you did in home equity in some other vehicle (even a diversified real estate fund if those returns are...
by avalpert
Sun May 15, 2016 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: High Earner $150k/yr. Single VS Married with Kids Take Home Salary??? Help!
Replies: 40
Views: 4334

Re: High Earner $150k/yr. Single VS Married with Kids Take Home Salary??? Help!

Did you land this $150k job by having other people do your work for you? Everyone has given links and tips and various things that must be considered when figuring this out. You didn't give nearly enough information at the start to get the answer. Yet you keep asking for the answer that cannot be g...
by avalpert
Sun May 15, 2016 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Renting vs owning
Replies: 140
Views: 14316

Re: Renting vs owning

I own several mixed use investment properties and am sick and tired of these rent vs, buy analyses. It's really pretty simple. If you are renting, you and your fellow tenants are covering all the landlords costs plus 20-40%. The question you must answer is are you satisfied living in an apartment a...
by avalpert
Sat May 14, 2016 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: How best to rebalance from Bond Index to Stock Index?
Replies: 10
Views: 778

Re: How best to rebalance from Bond Index to Stock Index?

If you have made the decision that you want additional risk for the possibility of higher returns associated with increasing your equity exposure than the correct way to rebalance is to just do it. Since taxes aren't an issue in the IRA, what you paid for the bond fund is completely irrelevant so ig...
by avalpert
Sat May 14, 2016 11:30 am
Forum: Investing - Help with Personal Investments
Topic: Intra-Family Mortgage INSTEAD of Investing
Replies: 27
Views: 1927

Re: Intra-Family Mortgage INSTEAD of Investing

If your tax brackets are similar, there's no reason to mess around with a side deal on a mortgage. It would be better to simply gift some cash each year. When the tax brackets are significantly different, it is tempting to fiddle a bit to move money from the high tax bracket to the lower tax bracke...
by avalpert
Sat May 14, 2016 11:24 am
Forum: Investing - Theory, News & General
Topic: A 401k after leaving a job...?
Replies: 7
Views: 786

Re: A 401k after leaving a job...?

Don't know specific rules, but I'm quite positive you want to roll it over into your own IRA rather than leave it in 401K: more control. Dave Maybe, maybe not. Sure, you will have more control if you roll it over into an IRA - but you may not need that control if the 401k already offers you a good ...
by avalpert
Sat May 14, 2016 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Renting vs owning
Replies: 140
Views: 14316

Re: Renting vs owning

Another vote here for buying rather than renting, if you plan to stay someplace for at least 5 years and are willing to take on the massive headaches that are involved in buying, maintaining, and selling a home. I bought a coop apartment in late 2008, under circumstances that violated all the rules...
by avalpert
Sat May 14, 2016 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Renting vs owning
Replies: 140
Views: 14316

Re: Renting vs owning

I own several mixed use investment properties and am sick and tired of these rent vs, buy analyses. It's really pretty simple. If you are renting, you and your fellow tenants are covering all the landlords costs plus 20-40%. The question you must answer is are you satisfied living in an apartment a...
by avalpert
Thu May 12, 2016 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Renting vs owning
Replies: 140
Views: 14316

Re: Renting vs owning

This analogy doesn't quite work. After 15 years of paying my mortgage I no longer need to pay anything (I do realize I pay a small fraction of a rental cost in property tax/maintenance). Not true, in addition to the maintenance/repair costs for the home, property taxes, hazard insurance etc. you ar...
by avalpert
Thu May 12, 2016 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Renting vs owning
Replies: 140
Views: 14316

Re: Renting vs owning

I wonder if people view eating food the same way they do as throwing money away on rent? I mean...you pay for the food...you eat it...the food provides nourishment...but then the food is gone. You dont actually get to keep the food in its physical form forever. hmmm This analogy doesn't quite work....
by avalpert
Wed May 11, 2016 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Renting vs owning
Replies: 140
Views: 14316

Re: Renting vs owning

I wonder if people view eating food the same way they do as throwing money away on rent? I mean...you pay for the food...you eat it...the food provides nourishment...but then the food is gone. You dont actually get to keep the food in its physical form forever. hmmm This analogy doesn't quite work....
by avalpert
Wed May 11, 2016 9:06 am
Forum: Personal Consumer Issues
Topic: Is buying organic really that expensive?
Replies: 111
Views: 10202

Re: Is buying organic really that expensive?

Does anyone concern themselves with the fact that farmland with GMO crops and pesticides yields twice as much food as organic non-GMO farmland, and without GMO & pesticides, millions of people would starve each year, and deforestation for additional farmland would result in global warming? I be...
by avalpert
Tue May 10, 2016 8:58 pm
Forum: Personal Consumer Issues
Topic: Is buying organic really that expensive?
Replies: 111
Views: 10202

Re: Is buying organic really that expensive?

But the real difference is that with a GMO, somebody owns the genetic code of the organism and for any given GMO every single organism is identical and belongs to the owner of that genetic code. Accepting or rejecting that type of system is a meaningful choice. I think this might be the most intere...
by avalpert
Tue May 10, 2016 8:46 pm
Forum: Personal Consumer Issues
Topic: Is buying organic really that expensive?
Replies: 111
Views: 10202

Re: Is buying organic really that expensive?

I find it hard to believe there's no link to the increase cancers and the use of pesticides in the last 100 years or so. Cancer rates, when you adjust for people living longer in general, haven't increased in the last 100 years - it has held steady while mortality rates from cancer have decreased c...
by avalpert
Sat May 07, 2016 10:22 pm
Forum: Investing - Theory, News & General
Topic: More code for getting TREA quote into Google Sheets
Replies: 5
Views: 722

Re: More code for getting TREA quote into Google Sheets

You could also use:

Code: Select all

=ImportHtml("http://finance.yahoo.com/q?s=QREARX", "table",2)

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