Search found 1600 matches

by bigred77
Mon Jun 26, 2017 6:33 pm
Forum: Personal Consumer Issues
Topic: Best way to look for a "long-term" rental
Replies: 6
Views: 591

Re: Best way to look for a "long-term" rental

Airbnb.com
VRBO.com
by bigred77
Mon Jun 26, 2017 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Looking into selling a structured settlement and need some advice
Replies: 38
Views: 1722

Re: Looking into selling a structured settlement and need some advice

I guess just to be a dissenting opinion, I don't think the upfront offer is unreasonable. You are still facing credit risk of the entity making the payments staying solvent for maybe 70+ years and you are facing inflation risk for 70+ years hoping it stays close to 3% or so. Also if you keep the set...
by bigred77
Mon Jun 26, 2017 6:28 am
Forum: Personal Finance (Not Investing)
Topic: Paying bills
Replies: 2
Views: 360

Re: Paying bills

Fidelity would be a viable option for you to consolidate. They have very good cash management products and a good online bill pay setup.
by bigred77
Mon Jun 26, 2017 6:25 am
Forum: Investing - Help with Personal Investments
Topic: Looking into selling a structured settlement and need some advice
Replies: 38
Views: 1722

Re: Looking into selling a structured settlement and need some advice

Sounds pretty easy to model. You know the amount and timing of the cashflows, you have an offer on the table which can be used as the net present value of the cashflows, all you need to calculate is the discount rate used by the potential buyer (the IRR). I'm sure if you post all the details someone...
by bigred77
Sun Jun 25, 2017 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Analysis of my portfolio as I contemplate early retirement?
Replies: 8
Views: 877

Re: Analysis of my portfolio as I contemplate early retirement?

You have 19 years worth of expenses in your taxable account with the ability to tax gain harvest and do Roth conversions to optimize your taxes. That's with a real return of 0. That brings you to 70 and you will have had 2 decades to leave your tax advantaged accounts to grow untapped. You are golde...
by bigred77
Fri Jun 23, 2017 8:57 am
Forum: Personal Finance (Not Investing)
Topic: 401k loan as "bridge loan" - own current home in cash - poke holes in this plan
Replies: 24
Views: 1017

Re: 401k loan as "bridge loan" - own current home in cash - poke holes in this plan

I have nothing against 401k loans but the limit is typically 50% of your balance or 50k, whichever is less. Can you delist your home and take out a HELOC for your down payment? Many places won't put a HELOC on a property listed for sale.
by bigred77
Wed Jun 21, 2017 4:53 am
Forum: Personal Finance (Not Investing)
Topic: Co-workers advising to buy house RIGHT NOW
Replies: 62
Views: 5447

Re: Co-workers advising to buy house RIGHT NOW

Enjoy your Glenfiddich. Stop worrying about what everyone is telling you to do. If you feel content, don't let someone knock you out of your comfort level. Regardless of where home prices are headed, this is the best advice - thanks ERISA Stone. We just have to work on how to stop worrying about wh...
by bigred77
Thu Jun 15, 2017 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: house or condo for a frequent traveling family?
Replies: 17
Views: 1665

Re: house or condo for a frequent traveling family?

I thought houses were always a much better investment then condos, could you be a little more specific about the differences in how they appreciate? thanks! It's hard to be specific but in general there is no hard and fast rule that says houses appreciate at a different rate than condos. All reside...
by bigred77
Thu Jun 15, 2017 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: House closing in 2 weeks. RE Attorney made a mistake and won't fess up. What to do???
Replies: 8
Views: 1138

Re: House closing in 2 weeks. RE Attorney made a mistake and won't fess up. What to do???

Yeah with real estate transaction you just do the best you can do identify and eliminate fluff as the process moves along. Then go over the closing settlement statement as closely as possible (I've always found at least one minor mistake). Then just know that there is always something that will pop ...
by bigred77
Thu Jun 15, 2017 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate Prices, expecting over listing?
Replies: 8
Views: 835

Re: Real Estate Prices, expecting over listing?

It has to do with how hot the market is IMO. If I price my house right at market value and it would go under contract in under a week then that's a hot market. I probably want to price it a little under market to try and get multiple offers. Once you send out word to someone who's already made an of...
by bigred77
Thu Jun 15, 2017 12:25 pm
Forum: Investing - Theory, News & General
Topic: How riskier are Aaa corporate bonds?
Replies: 14
Views: 1309

Re: How riskier are Aaa corporate bonds?

I'd also say in most instances, a retail investor shouldn't have any need to purchase individual corporate bonds. For the vast majority, a bond fund will do just fine. Cd's are also a fine choice. If you insist on individual securities, I think treasuries would work just fine. If you are buying indi...
by bigred77
Thu Jun 15, 2017 12:19 pm
Forum: Investing - Theory, News & General
Topic: When you purchase shares, where does the money go?
Replies: 19
Views: 1511

Re: When you purchase shares, where does the money go?

So the mutual fund company purchases the shares. Where does the money go after that? Meaning does a portion of it go to Apple, Microsoft, the companies that make up the funds? When the mutual fund purchases shares, they do so on the open market (I'm not counting IPOs here, because most index funds ...
by bigred77
Thu Jun 15, 2017 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage amount vs savings vs interest deduction
Replies: 26
Views: 1514

Re: Mortgage amount vs savings vs interest deduction

Well I would probably aim to put down 300k and play with the numbers from there. - I believe the mortgage tax deduction is limited to interest charged on up to $1M in principal, plus I assume you would itemize even with a paid off property (your property taxes alone probably put you over the line), ...
by bigred77
Wed Jun 14, 2017 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Walk me through a backdoor Roth?
Replies: 42
Views: 1834

Re: Walk me through a backdoor Roth?

You can't add $30K at one time to an IRA, so you can't backdoor roth $30K in cash. You have to accumulate it in an IRA. This. You can only contribute up to 5.5k per year to a backdoor Roth. I also recommend doing it in a lump sum. You can do it in monthly installments but if you have the assets I'd...
by bigred77
Wed Jun 14, 2017 7:13 pm
Forum: Investing - Theory, News & General
Topic: What growth rate for your projection calcs?
Replies: 31
Views: 2508

Re: What growth rate for your projection calcs?

I have multiple decades to go until retirement. I have a 75/25 portfolio with small and value tilts, 40% or so of equities in INTL, that I intend to hold until retirement with annual rebalancing. I plan using 5% real for my portfolio. I think that is a conservative number. I see what happens if I ge...
by bigred77
Wed Jun 14, 2017 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Bond funds vs bonds (yes, again)
Replies: 16
Views: 1360

Re: Bond funds vs bonds (yes, again)

I guess I don't see the issue here. Yes, if interest rates go up my bond fund will drop in value, but as the fund ads new bonds at the higher yield I benefit from the higher yield, right? Presumably it all comes out in the wash, so to speak. Someone please correct me if I'm wrong. I'm no expert at ...
by bigred77
Wed Jun 14, 2017 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: house or condo for a frequent traveling family?
Replies: 17
Views: 1665

Re: house or condo for a frequent traveling family?

Maybe a happy medium would be a house where the HOA takes care of yard work, provided that the HOA fees are generally reasonable? I actually own a house in a small community where the HOA does collect a reasonable fee and hires out landscaping for all residents. I think it's fantastic. You have mor...
by bigred77
Wed Jun 14, 2017 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: REIT in a taxable account
Replies: 17
Views: 1813

Re: REIT in a taxable account

The only thing I would add is if this was a known speculative investment, with a return profile where you think you will either hit it out of the park or really take a bath on it, then I could see choosing to own it in a taxable account. That way if it tanks, you can tax loss harvest and you won't h...
by bigred77
Wed Jun 14, 2017 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: house or condo for a frequent traveling family?
Replies: 17
Views: 1665

Re: house or condo for a frequent traveling family?

Does your family travel with you? If the spouse and baby stay at home then I wouldn't use the frequent travel as such a primary driver in the decision process. Do you want a single family home? Would your spouse be comfortable handling maintenance/repairs by themselves (or would you hire it out anyw...
by bigred77
Wed Jun 14, 2017 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off more of mortgage or wait?
Replies: 23
Views: 2523

Re: Pay off more of mortgage or wait?

If you would itemize even with no mortgage, any money you are prepaying the mortgage with is locking in an after tax return of 3.375%*(1- Your Marginal Tax Rate). In the 25% tax bracket that's about 2.5%. In the highest tax bracket that's a hair over 2% flat. If you were paying off the property and ...
by bigred77
Wed Jun 14, 2017 5:49 pm
Forum: Investing - Theory, News & General
Topic: Is Inflation Dying of Old Age?
Replies: 82
Views: 6775

Re: Is Inflation Dying of Old Age?

Looking around for an analysis of real stock returns historically at various levels of inflation, this study surfaced: S&P 500 Real Returns, 1872-2014 https://s14.postimg.org/43ssljo5d/graph_realreturns_CPI.jpg Source: Pioneer Investments Not only have U.S. real equity returns not suffered at l...
by bigred77
Wed Jun 14, 2017 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: retitling property
Replies: 5
Views: 420

Re: retitling property

You didn't say how things were titled but if the LLC owns the house then the family member can be bought out of their ownership in the LLC and the title to the house remains unchanged. If the house is not titled to the LLC then you probably would have to go about correcting it. If you expect possibl...
by bigred77
Wed Jun 14, 2017 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: valuing real estate for probate
Replies: 4
Views: 445

Re: valuing real estate for probate

Gill wrote:I would use the purchase price for both probate and estate tax value to establish basis.
Gill


+1
by bigred77
Wed Jun 14, 2017 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: The Average Mortgage?
Replies: 15
Views: 1134

Re: The Average Mortgage?

I too am guilty of looking up people's names via the county appraisal district's website. I can see when they bought any property and what the appraised value is and was. I'd be too embarrassed to tell people I do this but I find it entertaining and informative (my state does not require loan amount...
by bigred77
Wed Jun 14, 2017 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Help My Mother "Survive"?
Replies: 67
Views: 4569

Re: Help My Mother "Survive"?

OP, my mother was in a similar position not too long ago. This is an incredibly common financial position to be in (outside of boglehead circles). 2 things I would stress: She has to try and get a higher paying job if at all possible. She has to at least take on full-time, or close to full time hour...
by bigred77
Wed Jun 14, 2017 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Who takes financial chances and why is this forum so financially conservative?
Replies: 139
Views: 11897

Re: Who takes financial chances and why is this forum so financially conservative?

My perception of this board is that it's pretty darn conservative. That's fine most of the time, being financially conservative is a prudent choice. You definitely lower your chances of getting in trouble. Sometimes however, I think the advice some posters get is so over the top conservative that it...
by bigred77
Wed Jun 14, 2017 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Would you take a 25% pay cut for more professional satisfaction?
Replies: 57
Views: 3418

Re: Would you take a 25% pay cut for more professional satisfaction?

Only if you can afford to take lower paying job and only if you think one of the first two opportunities will provide you with those perceive benefits. If I was in my 20's, yes, I would go for it. That's interesting. I think my opinion is just the opposite. I've been out of my 20s for a few years n...
by bigred77
Mon Jun 12, 2017 9:51 pm
Forum: Investing - Theory, News & General
Topic: Safemax with varying AA
Replies: 41
Views: 2061

Re: Safemax with varying AA

There have been a couple of projects that I am aware of that look into a rising equity glidepath in retirement. I've read some of the material but didn't find the conclusions all that convincing (it's been a while though). I don't know if your parameters were specifically used but you can google &qu...
by bigred77
Mon Jun 12, 2017 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: Bond funds vs bonds (yes, again)
Replies: 16
Views: 1360

Re: Bond funds vs bonds (yes, again)

The other day, I was watching a PBS fundraising program that featured Suze Orman, whom I normally tune out. She addressed the issue of bond funds. As per usual, she recommended individual bonds over bond funds because of interest rates presumably rising, thus lowering the value of the bond funds (a...
by bigred77
Mon Jun 12, 2017 4:35 pm
Forum: Investing - Theory, News & General
Topic: Add TIPS and High Yield Corporate Bonds To Your Portfolio?
Replies: 16
Views: 1405

Re: Add TIPS and High Yield Corporate Bonds To Your Portfolio?

In the accumulation phase, I split my fixed income 40/40/20 between Total Bond, TIPS, and Intermediate term corporate bonds. In retirement I plan to just hold 50/50 Total Bond and TIPS. I chose this allocation because I like round numbers, it's easy to rebalance around, and at this level of granular...
by bigred77
Mon Jun 12, 2017 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement or permanent limbo around 50?
Replies: 19
Views: 2302

Re: Retirement or permanent limbo around 50?

I saw this in another thread and it's a sobering thought. Is this reality if you don't have a government job? Retirement or permanent limbo around 50 is common among the large group of people I know directly or indirectly. I only know one person in a similar situation (former mortgage banker) who l...
by bigred77
Mon Jun 12, 2017 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: New(ish) to investing - Too much cash? - Need guidance
Replies: 10
Views: 1372

Re: New(ish) to investing - Too much cash? - Need guidance

Well a couple of thoughts. I do think you are a good candidate to do a mega backdoor Roth IRA if your employer plan allows this. I would do this before I did anymore taxable investing (unless you make buying a house a goal and want to set money aside specifically for a down payment). I think you are...
by bigred77
Mon Jun 12, 2017 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Retire Early?? Part 2: Withdrawal Strategy and Plan
Replies: 12
Views: 1681

Re: Retire Early?? Part 2: Withdrawal Strategy and Plan

Your initial withdrawal rate seems reasonable. An appropriate AA should account for your sequence of returns risk. All the big ratios seem within the realm of prudence. The withdrawal location issue seems to be a question of optimizing lifetime tax liabilities. I think in general, It's going to be b...
by bigred77
Fri Jun 09, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Handshake Deal for Home Purchase
Replies: 13
Views: 1975

Re: Handshake Deal for Home Purchase

The absolutely only way I would do this is a closed purchase (money exchanges hands) with a lease back to 9/1 as part of the closing. I would include a reasonable amount as a security deposit, refundable when they leave the property in acceptable condition, that could be obtained via the funds payab...
by bigred77
Thu Jun 08, 2017 5:31 pm
Forum: Investing - Theory, News & General
Topic: Retirees: What are you doing about withdrawing?
Replies: 31
Views: 4135

Re: Retirees: What are you doing about withdrawing?

Interesting to see the mechanics of what people are doing in practice. I am not retired or withdrawing anything, but my general plan is to rebalance the portfolio once a year (I do not have bands, I just do it annually). At the time I rebalance, I would sell assets to generate 12 months worth of cas...
by bigred77
Thu Jun 08, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Recession Planning
Replies: 35
Views: 2481

Re: Recession Planning

I would not change my financial plan in the face of a recession. If I were to lose my job, I'm generally aware of expenses I could cut and accelerated debt repayments that I would stop (I have not made a concrete list though). There's a lot of fat in my budget that I could cut. I estimate I could sl...
by bigred77
Thu Jun 08, 2017 8:30 am
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 6725

Re: 100% Stock Portfolio?

You've given me something to think about. LIBOR + a small amount vs expected Rate of growth of VTI - Tax. Margin loans are tax deductible (assuming you used it to buy an ETF and not a car). Assuming you itemise then the cost is: LIBOR + a small amount - tax deduction If you're at 28% rate then your...
by bigred77
Thu Jun 08, 2017 8:10 am
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 6725

Re: 100% Stock Portfolio?

In terms of return there isnt much difference between a 100/0 or an 80/20. The 80/20 protects you more when the market crashes. I believe going 100/0 was only generating 1.5% more returns. The difference is a lot less. Over long periods of time (10, 20+ years) the difference is usually less than 0....
by bigred77
Wed Jun 07, 2017 10:11 pm
Forum: Personal Consumer Issues
Topic: Buying a House with an Old but Working Roof
Replies: 19
Views: 1032

Re: Buying a House with an Old but Working Roof

You are free to offer whatever price you want but a roof with 5-10 years of useful life yet isn't exactly a good negotiation point (IMO). If I was the seller and you specifically stated that as justification for a lower price I wouldn't think you were a serious buyer. If it bothers you, by all means...
by bigred77
Wed Jun 07, 2017 9:55 pm
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 6725

Re: 100% Stock Portfolio?

To the advocates of the 100% stock portfolio: I usually only hear the argument against a lower allocation. But why do you stop there? You can go beyond by leveraging your investment. So, what makes 100% not only better than 80% but also better than 120%? Because I have not found a way to cheaply ta...
by bigred77
Wed Jun 07, 2017 11:54 am
Forum: Personal Consumer Issues
Topic: Headed to Montreal tomorrow! Need advice!
Replies: 11
Views: 736

Re: Headed to Montreal tomorrow! Need advice!

Always use the ATM. Always. Every bank I've used has given me the spot exchange rate. Make sure yours doesn't charge a foreign transaction fee or anything (I haven't ever seen this, but I suppose it's possible). Also check your credit cards and see if you have one that does not charge a foreign tran...
by bigred77
Wed Jun 07, 2017 8:48 am
Forum: Investing - Help with Personal Investments
Topic: Financially independent and then market crashes?
Replies: 54
Views: 5825

Re: Financially independent and then market crashes?

Sooooo never retire then? I know everyone likes these things to fit in a precise little formula but that not possible. If the market crashes six months out, the young retiree can cut back spending a little. They could pick up a part time job maybe. They have options. The 4% rule is derived from tes...
by bigred77
Tue Jun 06, 2017 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Home purchase budget advice
Replies: 20
Views: 1465

Re: Home purchase budget advice

You want to know if house you could pay cash for if you sold your taxable investments is reasonable? If 450k gets you what you want in a house then go for it. Then it's just a financing decision. I would put 20% down and finance the rest but that's just my preference. Its a personal decision dependi...
by bigred77
Tue Jun 06, 2017 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: Financially independent and then market crashes?
Replies: 54
Views: 5825

Re: Financially independent and then market crashes?

How about this: Set your annual expenses to equal 2.5% (or less) of your total investment portfolio balance, based on what the balance would be if the value of the equity portion of the portfolio is half of what it is now. I think that if you can do this (and thus keep your expenses relatively low ...
by bigred77
Tue Jun 06, 2017 6:30 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin: The worst investment in 2014
Replies: 83
Views: 10723

Re: Bitcoin: The worst investment in 2014

Exactly! There is no evidence. I searched and couldn't find anything. I did find article that state that Bitcoin Mining is illegal and you can get arrested. What makes you think that people in Venezuela know how to use Bitcoin period? An average American doesn't even know what it is lol! I think yo...
by bigred77
Tue Jun 06, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: Financially independent and then market crashes?
Replies: 54
Views: 5825

Re: Financially independent and then market crashes?

When you go below a 4% initial withdrawal rate, the tough decision that your most likely to face is not "how will I react if I get 2 decades in and my portfolio looks like it might not survive". It's "At what point do I decide the portfolio has grown so much it's OK for me to increas...
by bigred77
Tue Jun 06, 2017 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: Financially independent and then market crashes?
Replies: 54
Views: 5825

Re: Financially independent and then market crashes?

SWR of 4% (25x) is based on 30 year drawdown. People FI in their 30's and 40's need a lower SWR / more like 33x. What data do you have to base this statement on? The 4% SWR comes from Trinity study for an 80/20 (ish, depending on how you judge "failure") allocation, year 2000 looks like m...
by bigred77
Tue Jun 06, 2017 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: Financially independent and then market crashes?
Replies: 54
Views: 5825

Re: Financially independent and then market crashes?

If I retired before age 50 and my portfolio dropped 25% from it's peak balance that would mean a repeat of 2008 or worse. I would have something along the lines of a 60/40 portfolio so global equities would have dropped by almost half. I would certainly be aware of the doom and gloom talk that is su...
by bigred77
Tue Jun 06, 2017 1:04 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin: The worst investment in 2014
Replies: 83
Views: 10723

Re: Bitcoin: The worst investment in 2014

I actually have similar thoughts, though I remember people saying the same thing last summer when BTC was $600. Considering the inherent deflationary nature of the currency, it's dollar value seems very likely to increase as more people begin using it as a currency. I just think that it's current p...
by bigred77
Tue Jun 06, 2017 12:41 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin: The worst investment in 2014
Replies: 83
Views: 10723

Re: Bitcoin: The worst investment in 2014

I understand the basics of bitcoin but not in depth enough where I would put any money into it. It's purely speculative at this time. That's fine. There are a lot of speculative assets. You can choose to participate or not. I thought fleetingly about buying some over the past number of years but ne...

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