Search found 795 matches

by bigred77
Thu May 26, 2016 9:24 am
Forum: Investing - Theory, News & General
Topic: OpenPath Real Estate Investing, how to evaluate private equity?
Replies: 12
Views: 1345

Re: OpenPath Real Estate Investing, how to evaluate private equity?

My personal opinion is that most retail investors have no need to invest in the private equity space. Unless you are a finance professional, it's unlikely you possess the skills or resources to really vet these options. You probably aren't a big enough fish to get a sit down with the partners. It's ...
by bigred77
Thu May 26, 2016 8:17 am
Forum: Investing - Theory, News & General
Topic: The problem with predictions: Will 2000-Era Retirees Experience the Worst Retirement Outcomes in U.S. History?
Replies: 33
Views: 3147

Re: The problem with predictions: Will 2000-Era Retirees Experience the Worst Retirement Outcomes in U.S. History?

Yes the return may be better since 2010 but you need to consider how much capital was remaining in said portfolio come 2010. S&P500 had a real return of -2% over the 11 years from Jan 1 2000 and Dec 31 2010. Taking 4% out every year ontop of that return drag leaves you with less than 50% of you...
by bigred77
Wed May 25, 2016 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for my daughter
Replies: 39
Views: 1990

Re: Advice for my daughter

I think investing in financial assets the best course of action. I think investing in rental real estate is better than letting the money sit in cash or spending it frivolously. Maybe encourage her to buy 1 property, with a smaller mortgage (so she can experience as much as possible), and see how sh...
by bigred77
Tue May 24, 2016 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Living without a checking account
Replies: 45
Views: 3133

Re: Living without a checking account

You can use a free fidelity account with check writing privileges and a debit card that reimburses all fees. I have used this for the past 8 years and could not have been happier. My only snag was when I wanted to deposit cash into my account. I had to have a friend deposit the cash into his nationa...
by bigred77
Tue May 24, 2016 2:21 pm
Forum: Personal Consumer Issues
Topic: How much do you spend on trips/vacations?
Replies: 74
Views: 4545

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 bigred77
Tue May 24, 2016 1:00 pm
Forum: Personal Consumer Issues
Topic: How much do you spend on trips/vacations?
Replies: 74
Views: 4545

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. I like picking 3 cities in the same general part of the world and trying to see how cheap we c...
by bigred77
Tue May 24, 2016 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Balancing Student Loans vs. Investing
Replies: 10
Views: 1013

Re: Balancing Student Loans vs. Investing

Also, would you mind clarifying this statement? I'm not quite sure I understand. "...don't think there is any justification for you to allow your loan to amortize negatively. It just doesn't make sense. There are cheaper ways to leverage your portfolio (and that's basically what you are doing)...
by bigred77
Tue May 24, 2016 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Balancing Student Loans vs. Investing
Replies: 10
Views: 1013

Re: Balancing Student Loans vs. Investing

It sounds like your household income will be in the 150k - 200k range over the course of your residency. I don't think there is any justification for you to allow your loan to amortize negatively. It just doesn't make sense. There are cheaper ways to leverage your portfolio (and that's basically wha...
by bigred77
Mon May 23, 2016 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: Rebuilding our house for $1.5M: Bad Idea Financially?
Replies: 90
Views: 7808

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

I'm always floored by people who are nearly in their 40s and have less than three times annual income saved. You are not savers. Be careful what you spend. Find a way to rebuild your house for a more reasonable cost. Well they most likely weren't making a million dollars a year in their mid 20s. Th...
by bigred77
Thu May 19, 2016 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Pride in no inheritance to kids?
Replies: 233
Views: 258

Re: Pride in no inheritance to kids?

I am a millennial and will receive no inheritance. I have subsidized my mother who is divorced, disabled, and has very little in the way of assets. I take a certain amount of pride in considering myself "100% self made" financially, but am also often envious of friends/peers who receive su...
by bigred77
Thu May 19, 2016 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Conservative friend getting out of muni/CDs for what?
Replies: 13
Views: 682

Re: Conservative friend getting out of muni/CDs for what?

I don't think your friend is correct in saying her principal will fall by 16% based on a 0.5% move upward in interest rates. She needs to better understand bond duration. The only sure fire way to never lose principal is FDIC insured CD's. My advice to someone like this is to stick it all in a Vangu...
by bigred77
Wed May 18, 2016 10:28 am
Forum: Personal Consumer Issues
Topic: Higher condo fees on higher floor units?
Replies: 25
Views: 1797

Re: Higher condo fees on higher floor units?

Our condo building charges the higher floors a higher assessment. The property taxes for the same unit on higher floors are also higher. The views are an integral part of each unit's value and the higher up your floor, the better the view. The assessment is based on the value of your unit, of which...
by bigred77
Wed May 18, 2016 8:46 am
Forum: Personal Consumer Issues
Topic: Did your children ever completely move out?
Replies: 53
Views: 3733

Re: Did your children ever completely move out?

When I moved out for good (post college) I did leave some stuff behind in my mothers house. She is about 2 steps away from becoming a certified "hoarder" so i definitely wasn't helping the situation. When we finally had to make her move out of the family home and into a condo, we threw jus...
by bigred77
Tue May 17, 2016 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20865

Re: Rich But Middle Class

I understand some of the animosity here concerning how out of touch with the reality the title of this thread and initial post came off as, but lets not be irrational. For everyone saying this family can not afford college, from the initial post i got "We would estimate our annual savings to fl...
by bigred77
Tue May 17, 2016 8:29 am
Forum: Personal Consumer Issues
Topic: Trade in BMW?
Replies: 45
Views: 3756

Re: Trade in BMW?

My wife and I have an 07 X3 and an 08 328i. Both right around 95k miles. Both cars I bought used around the 5 year mark with about 60k miles, no warranty. I have a good independent mechanic. Maintenance needs to be done a little more often than on Japanese or US cars. Maintenance is a little more ex...
by bigred77
Tue May 17, 2016 8:14 am
Forum: Personal Consumer Issues
Topic: Marrakesh, Morocco & Atlas Mtns. recommendations
Replies: 7
Views: 522

Re: Marrakesh, Morocco & Atlas Mtns. recommendations

I went last year actually. In Marrakech we stayed at Riad Nashira & Spa inside the Medina. It was maybe $150 per night (US) and I HIGHLY recommend it. IMO you really only need 2-3 days in Marrakech itself. I think there are some good day trips from there that are worth it though if you stay long...
by bigred77
Mon May 16, 2016 9:21 am
Forum: Investing - Theory, News & General
Topic: What % do you have in alternatives? REITs, commodities, etc.)
Replies: 67
Views: 3537

Re: What % do you have in alternatives? REITs, commodities, etc.)

I "tilt" with 25% of my total portfolio (1/3 of my total stock allocation) into riskier sub asset classes.

I put 5% of my total portfolio each into the following: US Small Cap Value, International Small Caps, Emerging markets, US REITs, International REITs.
by bigred77
Mon May 16, 2016 9:14 am
Forum: Personal Finance (Not Investing)
Topic: Rich But Middle Class
Replies: 233
Views: 20865

Re: Rich But Middle Class

The OP is fine. The only problem is decisions will need to be made if their HHI drops by 50% or more. How is that different from nearly every other household headed by 2 people in their early 40's with 3 kids? They don't need to save for college, they're paying 180k a year right now for their 3 kids...
by bigred77
Fri May 13, 2016 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Career ambitions, life changes
Replies: 18
Views: 3201

Re: Career ambitions, life changes

This post by user JimmyD prompted me to write this. I too am in a similar situation. 31, married, with first kid on the way. I've been in my O&G job for 3+ years now after grad school. Despite the wave of layoffs around me, I'm still here so far and am very thankful for that. My boss is nice, t...
by bigred77
Thu May 12, 2016 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage rate from our bank not matching the news
Replies: 12
Views: 1044

Re: Mortgage rate from our bank not matching the news

If you didn't lock the rate at the time, your at the mercy of current rates.

If you have 3+ weeks to closing, find the best rates online and tell your current bank to match it or take your business elsewhere.
by bigred77
Thu May 12, 2016 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Physician Retirement Savings
Replies: 212
Views: 20881

Re: Physician Retirement Savings

My wife is a family physician. I'm a former Federal employee now teaching HS. Honestly our lifestyle is closer to my teacher colleagues than her physician colleagues except that we travel more. We have 3 kids, the first of whom is approaching college age and are just now reaching 7 figures in our c...
by bigred77
Wed May 11, 2016 2:49 pm
Forum: Investing - Theory, News & General
Topic: WSJ Article Dividends Aren't the Answer, They're the Problem
Replies: 57
Views: 8902

Re: WSJ Article Dividends Aren't the Answer, They're the Problem

Companies buy back existing shares, decreasing the number of shares outstanding, which causes the value of the remaining shares to rise. Except they then give stock options to executives, increasing the number of shares back up. In far too many cases, stock buybacks are just ways for a company to g...
by bigred77
Wed May 11, 2016 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: Best withdrawal plan
Replies: 37
Views: 3716

Re: Best withdrawal plan

If I were retiring under the following assumptions: - 60 year old couple - No legacy or bequest concerns; Want to maximize my personal happiness from my savings - Expect to spend more early in retirement while I'm more active I would buy a nominal SPIA ( not inflation adjusted) with 75%-90% of my n...
by bigred77
Wed May 11, 2016 11:59 am
Forum: Investing - Theory, News & General
Topic: WSJ Article Dividends Aren't the Answer, They're the Problem
Replies: 57
Views: 8902

Re: WSJ Article Dividends Aren't the Answer, They're the Problem

In May 2015 there was a WSJ article recommending dividend stocks over a traditional bond fund: "Dividend Stocks Beat Bonds for Retirement Income" http://www.wsj.com/articles/dividend-stocks-beat-bonds-for-retirement-income-1432934681 And now we hear that "Dividends Aren't the Answer,...
by bigred77
Wed May 11, 2016 11:57 am
Forum: Investing - Help with Personal Investments
Topic: Best withdrawal plan
Replies: 37
Views: 3716

Re: Best withdrawal plan

If I were retiring under the following assumptions: - 60 year old couple - No legacy or bequest concerns; Want to maximize my personal happiness from my savings - Expect to spend more early in retirement while I'm more active I would buy a nominal SPIA ( not inflation adjusted) with 75%-90% of my ne...
by bigred77
Wed May 11, 2016 11:39 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Checkup Requested on 3 Year Boglehead Anniversary
Replies: 14
Views: 2199

Re: Portfolio Checkup Requested on 3 Year Boglehead Anniversary

A.) First and foremost, get the TIPS and CDs out of taxable and into your tax advantaged accounts. What little return you are getting is being taxed at regular income tax rates (33% in your case). If you want CD's, move "His Rollover IRA at Vanguard" 100% into CDs and put your taxable acco...
by bigred77
Tue May 10, 2016 4:18 pm
Forum: Personal Consumer Issues
Topic: 30 minute commute?
Replies: 80
Views: 6875

Re: 30 minute commute?

I think in Texas and California 30 min commutes are the equivalent of a 5 min walk to work anywhere else in the country. :mrgreen:
by bigred77
Tue May 10, 2016 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Anxious About First Home Purchase
Replies: 12
Views: 1444

Re: Anxious About First Home Purchase

I would find a property that i was comfortable staying in for the next 10-15 years. I would want to be zoned to good public schools, have enough space/bedrooms for 2 kids plus whatever lifestyle I wanted to live, and i would want to minimize both commutes as much as possible. If I can get all of the...
by bigred77
Tue May 10, 2016 2:23 pm
Forum: Investing - Theory, News & General
Topic: WSJ Article Dividends Aren't the Answer, They're the Problem
Replies: 57
Views: 8902

Re: WSJ Article Dividends Aren't the Answer, They're the Problem

2.1) ..... I think even more relevant is that companies all over the world are shifting the way they return profits to shareholders. 2.2)There has been a large uptick in share buybacks (which i think one can argue is a more efficient way to return capital to shareholders) 2.3) and also an increase ...
by bigred77
Tue May 10, 2016 2:08 pm
Forum: Investing - Theory, News & General
Topic: WSJ Article Dividends Aren't the Answer, They're the Problem
Replies: 57
Views: 8902

Re: WSJ Article Dividends Aren't the Answer, They're the Problem

You can read the article without a subscription to the WSJ by typing "Dividends Aren’t the Answer. They’re the Problem" into a google search and clicking through the link. To me, the problem is 2 fold: 1.) Investors who are hungry for income think they can purchase dividend paying stocks ...
by bigred77
Tue May 10, 2016 10:34 am
Forum: Investing - Theory, News & General
Topic: WSJ Article Dividends Aren't the Answer, They're the Problem
Replies: 57
Views: 8902

Re: WSJ Article Dividends Aren't the Answer, They're the Problem

You can read the article without a subscription to the WSJ by typing "Dividends Aren’t the Answer. They’re the Problem" into a google search and clicking through the link. To me, the problem is 2 fold: 1.) Investors who are hungry for income think they can purchase dividend paying stocks a...
by bigred77
Tue May 10, 2016 8:26 am
Forum: Personal Consumer Issues
Topic: Thinking about moving to a big city
Replies: 20
Views: 2411

Re: Thinking about moving to a big city

I grew up in Suburbia. All of my friends were very "country" (enjoyed outdoors, fishing, hunting, trucks, beer, country music, etc.... it was the culture). I tried to embrace these same things in high school and college (since that's what all of my friends did) but it never seemed like a v...
by bigred77
Tue May 10, 2016 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Does the Fixed Income 2 comma club exist?
Replies: 14
Views: 1314

Re: Does the FI 2 comma club exist?

I do not have an absolute limit for Fixed Income. If I was near retirement (which I am not) then I would probably be sitting around a 60/40 portfolio. If my portfolio was $2.5M or more, then my fixed income alone would put me in the 2 comma club. I don't see anything wrong or overly conservative abo...
by bigred77
Mon May 09, 2016 1:41 pm
Forum: Personal Consumer Issues
Topic: Has your workplace transitioned to "open/collaborative space?"
Replies: 51
Views: 4173

Re: Has your workplace transitioned to "open/collaborative space?"

I have been lucky enough to always have a private office after my title was no longer "intern". I cannot imagine how distracting those open concept work spaces must be. It would drive me crazy.
by bigred77
Mon May 09, 2016 1:13 pm
Forum: Investing - Theory, News & General
Topic: 4% rule and interest rates
Replies: 28
Views: 3613

Re: 4% rule and interest rates

If I was in my late 50's to early 60's today and retirement was imminent, I would feel completely comfortable retiring with a 50/50 or 60/40 portfolio, taking 4% of my portfolio balance on that day, and adjusting for inflation every year while delaying SS to age 70. Just my opinion though. Rising in...
by bigred77
Mon May 09, 2016 11:44 am
Forum: Investing - Help with Personal Investments
Topic: Transferring 401k to Brokerage Link
Replies: 20
Views: 1575

Re: Transferring 401k to Brokerage Link

I do the same thing within my 401k (fidelity brokerage link). There may be an annual fee for using the brokerage link (luckily my 401k does not charge one). The buy/sell fees are the same as any other fidelity account. You can buy a number of approved ETFs transaction cost free. There are also numer...
by bigred77
Thu May 05, 2016 4:42 pm
Forum: Personal Consumer Issues
Topic: 2 years left, what % would refi make sense
Replies: 6
Views: 835

Re: 2 years left, what % would refi make sense

You have an emergency fund bigger than the remaining balance. That money is surely earning less than 4.75% (i assume). Pay the mortgage off with the E-fund and immediately open up a HELOC with the best terms you can find. Do not draw on it unless an emergency actually shows up. Feed your former mort...
by bigred77
Thu May 05, 2016 8:11 am
Forum: Personal Consumer Issues
Topic: So, are Bogleheads Bourbon or Scotch drinkers?
Replies: 115
Views: 7113

Re: So, are Bogleheads Bourbon or Scotch drinkers?

Scotch all the way...


Routine Scotch - JW Black

Small Special Occasions - Glenlivet 12 or Glenfiddich 12

Big Special Occasions - Lagavulin 16
by bigred77
Tue May 03, 2016 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: What Rate for Excellent Mortgage Lock
Replies: 7
Views: 586

Re: What Rate for Excellent Mortgage Lock

auggiedoggies wrote:If you can pay for the house in cash several times over, I think the 15 year is a no brainer.


+1

With sufficient assets to get through any potential cash flow issues, I would definitely take the 15 yr mortgage.
by bigred77
Tue May 03, 2016 9:37 am
Forum: Personal Finance (Not Investing)
Topic: How Much House
Replies: 64
Views: 6275

Re: How Much House

1. What was the purchase price of your house in comparison to annual income, NW, etc? At the time, purchase price was 3.7x Household income, roughly 1.7x net worth. 2. Did you pay cash or finance? 10% down with a piggyback loan (80/10/10 mortgage; no PMI) for 30 years. Refinanced 2 years later to a...
by bigred77
Thu Apr 28, 2016 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Financial Impotence - difficulty living below means
Replies: 14
Views: 1420

Re: Financial Impotence - difficulty living below means

I thought the article was an entertaining read. I think its positive to bring attention to these issues. That being said, I just don't have a lot of sympathy for the author and didn't appreciate his implications that the deck is stacked against every day Americans and that they are victims here. The...
by bigred77
Wed Apr 27, 2016 2:28 pm
Forum: Personal Consumer Issues
Topic: Should I accept this offer on my house?
Replies: 52
Views: 3644

Re: Should I accept this offer on my house?

One thing that I have had to constantly remind myself of in real estate transactions is the other party is just as excited to buy(sell) the property as i am to sell(buy) it. Probably more so, since I consider myself a pretty unemotional/logical decision maker. I always work up in my mind that the ot...
by bigred77
Tue Apr 26, 2016 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: I Hate My Job: Politics at Work (Advice Needed)
Replies: 108
Views: 12321

Re: I Hate My Job: Politics at Work (Advice Needed)

I can just imagine your bosses and other senior people talking about the "Clueless Millennial" they just hired. They most likely paid their dues for years to get to senior and you walk in expecting to be on top of the heap right from day one. Either consciously or unconsciously, I'll bet ...
by bigred77
Tue Apr 26, 2016 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Have any of you overextended on housing? What were your experiences?
Replies: 42
Views: 3890

Re: Have any of you overextended on housing? What were your experiences?

When my wife and I went from a condo to a SFH we put 10% down on a house 3.6 times our gross income. It felt like we were overextending ourselves at the time. It was our ideal location, 1 mile from my office, and zoned to one of the very few good inner city elementary schools. 3 years later we've re...
by bigred77
Tue Apr 26, 2016 8:04 am
Forum: Personal Consumer Issues
Topic: Kellogg vs. Darden
Replies: 17
Views: 1542

Re: Kellogg vs. Darden

What industry does she want to enter (finance, consulting)?

Where would she prefer to work (NYC or elsewhere) post graduation?
by bigred77
Mon Apr 25, 2016 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Does lender have incentive for PMI?
Replies: 8
Views: 820

Re: Does lender have incentive for PMI?

When you refinance and your ratios are "close", it really helps to try and influence the appraiser if you can. The first time I refinanced I let the appraiser in the house and left him alone to do his job. The value came in too low and my refinance was scuttled. When you buy a home, the ap...
by bigred77
Mon Apr 25, 2016 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Advice for post retirement career
Replies: 53
Views: 3074

Re: Advice for post retirement career

fortfun, I think you need to run some numbers and not rely on what other people casually tell you. I've been told that it really doesn't make sense to continue working after this point because you are only working for 25% of your salary. I assume this doesn't mean that your salary is cut by 75% aft...
by bigred77
Mon Apr 25, 2016 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Any good Rationale for putting riskier investments in Roth?
Replies: 26
Views: 2332

Re: Any good Rationale for putting riskier investments in Roth?

I am only invested in tax advantaged accounts. 70% of my portfolio is in 401k's and 30% is in Roth IRAs. I prefer to keep my Roths 100% stocks. I want the highest growth of my overall portfolio to occur in the Roth space (if I can help it). I do not however put my "tilted funds" (EM, SCV, ...
by bigred77
Mon Apr 25, 2016 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Advice for post retirement career
Replies: 53
Views: 3074

Re: Advice for post retirement career

There a lot of stories around the web about teachers taking expat assignments in foreign countries and stashing away boatloads of money (although some of these are in less than desirable locales). Could be an option for you if your on the adventurous side and want to try something different.
by bigred77
Thu Apr 21, 2016 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: Using Roth IRA for Home Down Payment.
Replies: 23
Views: 1677

Re: Using Roth IRA for Home Down Payment.

I cannot stress how bad of an idea this is. I would rather put all my stuff in storage and live in a 100 dollar a night hotel until my old house sold before I raided my Roth IRA for this reason. You're giving up tax free investing and withdrawals for life. For what? To avoid a couple months of PMI? ...

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