Search found 879 matches

by bigred77
Wed Aug 31, 2016 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: How will bogleheads allocate short term reserves of 1.7 M?
Replies: 5
Views: 463

Re: How will bogleheads allocate short term reserves of 1.7 M?

At your income and asset level I wouldn't care about a $2.5k bonus from brokerage accounts vying for your business. I would be trying to simplify my finances as much as possible. Keep 12 months expenses in a savings or money market account, dump the remainder into your portfolio according to your de...
by bigred77
Wed Aug 31, 2016 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Business debt versus taxable investments
Replies: 39
Views: 913

Re: Business debt versus taxable investments

Stop mixing your personal income with business income. If your business is making money, the business is paying the debt. I may be confused then but from my understanding I own 100% of my corporation and being an S Corporation it is a flow through in terms of taxes. Fisherman8, You need a REAL tax ...
by bigred77
Wed Aug 31, 2016 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Business debt versus taxable investments
Replies: 39
Views: 913

Re: Business debt versus taxable investments

I agree that it's a toss up as to what is "best". The only thing I would focus on is make sure you either invest or pay down debt with that additional 15k/month instead of blowing it (although even then I'd accept an argument that you make enough to increase your lifestyle if it made you h...
by bigred77
Tue Aug 30, 2016 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Good School District or Private School?
Replies: 65
Views: 3049

Re: Good School District or Private School?

It's more fun to ask random internet strangers :). Most of our friends don't have school-age children yet. I asked my spouse where our friends sent their kids to school. Four different couples sent their kids to St John's. One couple to Kincaid, and another to Carnegie Vanguard High School. I guess...
by bigred77
Tue Aug 30, 2016 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Good School District or Private School?
Replies: 65
Views: 3049

Re: Good School District or Private School?

If you have 2 kids in top Houston private schools at the same time your are looking at 40k -50k+ per year (and that's at today's prices). HISD as whole leaves a lot to be desired, just like any other major city's public school system. There are a couple of good Elementary, JR High, and High schools ...
by bigred77
Tue Aug 30, 2016 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Oil & Gas Long Term Risk
Replies: 31
Views: 1591

Re: Oil & Gas Long Term Risk

Just Frank, I think this report from Shell may be of interest to you (if you haven't already seen it). It discusses different scenarios in how policy makers, companies, investors, etc. respond to climate change and alternative energy sources. It may be relevant to your Exxon post above. I can tell y...
by bigred77
Tue Aug 30, 2016 11:52 am
Forum: Investing - Help with Personal Investments
Topic: $50M+ - Need a sounding board/advice
Replies: 162
Views: 13840

Re: $50M+ - Need a sounding board/advice

My questions after reading through this thread: What is PE protecting you from if the US markets (or international markets) hit a catastrophic depression. Those PE funds are going down the tubes as well. Furthermore, what makes people think the OP has the ability to pick the best A) specific PE inve...
by bigred77
Tue Aug 30, 2016 10:51 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review (finally!!!) - Appreciate any feedback you can provide
Replies: 17
Views: 228

Re: Portfolio Review (finally!!!) - Appreciate any feedback you can provide

I think you absolutely need to be doing backdoor Roths each and every year. I have no idea why anyone would tell you different. Its commonly done and you should use it to your advantage. I would also STRONGLY recommend you try everything in your power to get your wife to end the managed IRA and rol...
by bigred77
Tue Aug 30, 2016 9:16 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review (finally!!!) - Appreciate any feedback you can provide
Replies: 17
Views: 228

Re: Portfolio Review (finally!!!) - Appreciate any feedback you can provide

I think you absolutely need to be doing backdoor Roths each and every year. I have no idea why anyone would tell you different. Its commonly done and you should use it to your advantage. I would also STRONGLY recommend you try everything in your power to get your wife to end the managed IRA and roll...
by bigred77
Wed Aug 24, 2016 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Best Way to Finance Remodel on an Inherited Property
Replies: 9
Views: 738

Re: Best Way to Finance Remodel on an Inherited Property

The short answer is that none of these options look especially bad. I would lean towards the refi as your long-term solution. This will probably give you the longest duration to pay it back with the lowest fixed interest rate. The catch to this option is that the money is fixed, and if your rehab c...
by bigred77
Wed Aug 24, 2016 12:09 pm
Forum: Personal Consumer Issues
Topic: *Tech Questions* How do you keep track of your life?
Replies: 33
Views: 3118

Re: *Tech Questions* How do you keep track of your life?

OP, I just wanted to say don't feel bad. I myself am a disgrace to the millennial generation. Over half the apps my friends use I've either never heard of or can't figure out how to use. Just a few weeks ago on a recent group trip everybody venmo'd the guy who paid for the rental house their proport...
by bigred77
Wed Aug 24, 2016 11:19 am
Forum: Investing - Help with Personal Investments
Topic: Can I semi-retire (or retire?)
Replies: 78
Views: 6409

Re: Will I be able to tell my wife I can semi-retire (maybe retire!)?

From your numbers in the OP It looks like you have $1.64M in financial assets, an extra 300k saved for your 3 kids college, 1 million in real estate (340k in mortgages) and 40k-50k yearly spending. Assuming your estimate of expenses is accurate there is no reason why you and your wife both couldn't ...
by bigred77
Tue Aug 23, 2016 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: Oil Well Working Intrest
Replies: 19
Views: 1341

Re: Oil Well Royalty

Curious what your buying exactly (if I'm being to nosy I apologize, I'm just curious). Are you buying a 1% working interest in specific wellbores? An ORRI in wellbores or maybe specific leases? Or are you investing into a vehicle that buys up leasehold interests? If I had that opportunity to do so n...
by bigred77
Mon Aug 22, 2016 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off student loan debt before taking on more debt (house debt)?
Replies: 20
Views: 1268

Re: Pay off student loan debt before taking on more debt (house debt)?

Options: 1. Pay off debt completely before saving down payment for home - will delay house for about 12+ months 2. 1/2 house fund, 1/2 loans - probably will delay house by 6-12months 3. 1/3 loan, 1/3 house fund, 1/3 open up VG account for post-tax investments Not knowing what percentage of take hom...
by bigred77
Mon Aug 22, 2016 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: Are we there yet?
Replies: 34
Views: 4844

Re: Are we there yet?

If you hated your jobs I think you could retire now.

If not I would probably be trying to make hay while the sun is shining for a couple more years. Maybe get the mortgage paid off and throw a little extra in the 529s. Call it quits in 5 years or less.
by bigred77
Mon Aug 22, 2016 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: How do you view debt?
Replies: 108
Views: 6190

Re: How do you view debt?

I view it as a tool to be used (or not) based on individual circumstances. Low interest, tax deductible, non-callable debt (like a mortgage) used prudently by someone still in their prime accumulation years... seems reasonable. High interest (credit cards) or callable (margin) debt are probably best...
by bigred77
Fri Aug 19, 2016 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 262
Views: 29622

Re: Self-made Millionaires: how did hitting 7 figures change you?

There will always be someone who makes more and has more. I saw a thread earlier today by someone who was young with a multi-million dollar income and an $8M net worth. I suspect I'll never have either of those. Best to figure out early how much "enough" is so you'll know it when you get ...
by bigred77
Thu Aug 18, 2016 9:13 am
Forum: Investing - Help with Personal Investments
Topic: Earlier Retirement with Lower Pension?
Replies: 26
Views: 2786

Re: Earlier Retirement with Lower Pension?

Here are the details: Income: $245K Federal Tax $48K State Tax $2K (low due to Kasich's recent support of small business in OH) Contributions to 401K, 403b, 457b, Roth IRA $88.5K Pension employee contribution $14K Remaining (our expenses not including taxes) = 245 - 48 - 2 - 88.5 - 14 = $93.5K Taxa...
by bigred77
Wed Aug 17, 2016 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 262
Views: 29622

Re: Self-made Millionaires: how did hitting 7 figures change you?

There will always be someone who makes more and has more. I saw a thread earlier today by someone who was young with a multi-million dollar income and an $8M net worth. I suspect I'll never have either of those. Best to figure out early how much "enough" is so you'll know it when you get ...
by bigred77
Wed Aug 17, 2016 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 262
Views: 29622

Re: Self-made Millionaires: how did hitting 7 figures change you?

This is a very informative thread. I recently made it pass 7 figures but this includes all accounts. I am over 50. In my mind, the amount is inflated as $1 in a tax-deferred account is worth less than $1. Capital gain in taxable accounts need to be taxed. Most of my older colleagues have over $1 mi...
by bigred77
Wed Aug 17, 2016 4:49 pm
Forum: Personal Consumer Issues
Topic: Buy vs Rent & Price Limit Help
Replies: 6
Views: 352

Re: Buy vs Rent & Price Limit Help

I would likely rent a 3 bedroom property until your wife makes a definitive decision to rejoin the workforce. A $260k house is just fine with both of your salaries but maybe a touch high if it's just 1 income?
by bigred77
Tue Aug 16, 2016 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 262
Views: 29622

Re: Self-made Millionaires: how did hitting 7 figures change you?

I think you have to factor in COL *and* age. $1M when you're 65 with a paid off house, great! $1M when you're 40 with a lot of years left to live, not that great. I tend to think that you've got it somewhat backwards. If you have a $1M when you are 40 and a long life expectancy, I think that you ar...
by bigred77
Tue Aug 16, 2016 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Moving 4M from Goldman. retired and needs 200K/Y
Replies: 37
Views: 5715

Re: Moving 4M from Goldman. retired and needs 200K/Y

Do you have $36k from Rent and $45k Freelance work coming in every year that will be part of the $200k yearly need? No. At this moment I would need around 280K yearly it is mainly because we are supporting both our parents and current condo we live has really high taxes and maintenance. We are plan...
by bigred77
Tue Aug 16, 2016 12:02 pm
Forum: Investing - Theory, News & General
Topic: investment and allocation - before or after tax?
Replies: 4
Views: 272

Re: investment and allocation - before or after tax?

I think adjusting your perceived savings rate based on future tax treatment is getting too far into the weeds for very little benefit. Save an appropriate percentage (or as much as you can if that's your mindset) in a reasonably tax efficient manner. For moderate income that may mean 401k up to matc...
by bigred77
Tue Aug 16, 2016 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Can my wife stop working? Allocation ???
Replies: 25
Views: 2299

Re: Can my wife stop working? Allocation ???

Can you live your current lifestyle with your current income dropping down to about 100k (minus 18k in stated 401k contributions) without drawing on savings? If you can do that (which equates with your current expenses being less than your goal retirement income) then you are fine and I think you ca...
by bigred77
Tue Aug 16, 2016 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Moving 4M from Goldman. retired and needs 200K/Y
Replies: 37
Views: 5715

Re: Moving 4M from Goldman. retired and needs 200K/Y

Do you have $36k from Rent and $45k Freelance work coming in every year that will be part of the $200k yearly need? No. At this moment I would need around 280K yearly it is mainly because we are supporting both our parents and current condo we live has really high taxes and maintenance. We are plan...
by bigred77
Mon Aug 15, 2016 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 262
Views: 29622

Re: Self-made Millionaires: how did hitting 7 figures change you?

I am still a few years away from hitting $1M in net worth (and a number of years away if we are only counting financial assets) but I'm surprised people aren't treating it as a bigger milestone. Roughly 10% of households in the US ever hit that number. To me, hitting that number means I can handle a...
by bigred77
Thu Aug 11, 2016 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Purchasing land as an investment
Replies: 14
Views: 1269

Re: Purchasing land as an investment

What you are describing is a highly speculative, illiquid, non-diversified investment with very high transaction and carrying costs. It is absolutely not worth it for anticipated returns in the 5%-8% range. Unless you have inside information about a new road being built or a developer planning a pro...
by bigred77
Thu Aug 11, 2016 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Am I saving enough? Budget & Retirement
Replies: 8
Views: 1750

Re: Am I saving enough? Budget & Retirement

Take home pay of $6500
Mortgage Expenses of $1700
Left Over funds of $3500

So your only spending $1300 a month outside of the mortgage?

Take $3500 excess, put $2000 in a taxable brokerage account, throw an extra $500 onto the mortgage payment, and live a little with the remainder.
by bigred77
Thu Aug 11, 2016 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Does playing in WNBA make fiscal sense
Replies: 41
Views: 2181

Re: Does playing in WNBA make fiscal sense

As a former D1 athlete (football) and someone who worked in two other major college athletic departments, two very basic reasons: people want to win (and UCONN is utterly dominant in women's basketball) and the HUGE majority of D1 athletes really couldn't care about the future past the possibility ...
by bigred77
Wed Aug 10, 2016 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Refinancing mortgage to 15-year vs. college savings
Replies: 22
Views: 1389

Re: Refinancing mortgage to 15-year vs. college savings

That decision seems pretty close to me. I would probably think about it like this: Do I want to pay a fee for the right to pay a higher interest rate, have a higher minimum payment, and dedicate the funds I was contributing to the 529 account to repaying a mortgage with a rate of 2.75%? If you're in...
by bigred77
Wed Aug 10, 2016 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Buying a new home at age 50 in a nicer neighborhood
Replies: 105
Views: 7738

Re: Buying a new home at age 50 in a nicer neighborhood

Is the new home going to be your retirement home? Are you prioritizing features that will allow you to age in place?
by bigred77
Wed Aug 10, 2016 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Using 60 day rollover as cash buffer while buying a house
Replies: 24
Views: 2269

Re: Using 60 day rollover as cash buffer while buying a house

My understanding is you have 60 calendar days from the date you removed funds from the Roth IRA to return them. I would leave myself some wiggle room (at least 3-5 days) and call the brokerage company about the deposit back into the IRA. When I did this Fidelity was giving me some explanation about ...
by bigred77
Tue Aug 09, 2016 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Best housing option for my mom living by herself?
Replies: 22
Views: 2099

Re: Best housing option for my mom living by herself?

OP, I went through a VERY similar situation with my own mother. She was divorced, a hoarder, unable to maintain the family home of about 20 years, was laid off for 4+ years (I had been sending her money every couple of months but didn't know the extent of the situation), pretty close to $100k in cre...
by bigred77
Mon Aug 08, 2016 5:51 pm
Forum: Personal Consumer Issues
Topic: European Vacation Cost
Replies: 13
Views: 1384

Re: European Vacation Cost

May is definitely going to be cheaper than June. Price out the main flight first. Flying into Paris or a German city will likely be cheaper. Check out easyjet.com for intra-European flights. The trains are also a great alternative. Sometimes its better to book round trip for the main flight instead ...
by bigred77
Fri Aug 05, 2016 12:29 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 17500

Re: A costly mistake made by both investors and advisors

Y ou can say current valuation is the "best" estimate because ALL estimates for the long-term future are complete guesses This is example of the fruitlessness of the conversation. Clearly this is not the case as the evidence shows and I have explained many times. It cannot have no informa...
by bigred77
Fri Aug 05, 2016 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: How soon to get HELOC after closing on mortgage refi?
Replies: 4
Views: 425

Re: How soon to get HELOC after closing on mortgage refi?

I closed on a refi mortgage last year and applied for a HELOC less than 10 days later (it was admittedly with the same lender but I don't think that should matter). I sent the same documentation I used for my refi (although i don't think they required as much) but with up to date pay stubs. They acc...
by bigred77
Fri Aug 05, 2016 10:21 am
Forum: Investing - Theory, News & General
Topic: "Your 10 Most Important Financial Decisions"
Replies: 21
Views: 2964

Re: "Your 10 Most Important Financial Decisions"

That's a great list, Taylor. As I read it, what occurred to me is how many of those very critical decisions are made so early in life. I try to stress to young people that much of their financial and personal success will likely be determined by the choices they make between ages 15 and 25. I also ...
by bigred77
Thu Aug 04, 2016 8:15 am
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 17500

Re: A costly mistake made by both investors and advisors

As to current times and P/E. First I would say that far fewer companies pay dividends today and payout ratios are MUCH lower, that should lead to bit higher EPS growth and justify slightly higher P/E. Slightly. I believe that the investment community has voted, and the results suggest much more tha...
by bigred77
Thu Aug 04, 2016 8:02 am
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 17500

Re: A costly mistake made by both investors and advisors

I think it makes a lot of sense to say that the best prediction of future returns depends on P/E (or CAPE10) and is independent of term, but the reliability of the prediction might be better at intermediate terms. I.e. our best guess for 30-year returns is the same as our best guess for 10-year ret...
by bigred77
Wed Aug 03, 2016 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Does an SPIA have an impact on retirement accumulation targets?
Replies: 25
Views: 1200

Re: Does an SPIA have an impact on retirement accumulation targets?

I also think SPIAs are a very useful (and underutilized) tool for many people. I think 25x expenses (minus pensions and/or SS payments) is still a good target to aim for. I also think aiming for 25x expenses in your residual portfolio (post SPIA purchase; minus annuity, pensions and/or SS payments) ...
by bigred77
Tue Aug 02, 2016 5:50 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 17500

Re: A costly mistake made by both investors and advisors

But the math is what matters. It simply assumes valuations don't change because we cannot forecast if they will change. Horrible assumption with no basis in reality that destroys the entire model. What assumption would you make about earnings going forward if not the same? Do you think earnings are...
by bigred77
Tue Aug 02, 2016 5:29 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 17500

Re: A costly mistake made by both investors and advisors

BigRed yes of course CAPE 10, or any other metric has less value over short periods. So does the DDM or any other metric. But the math is what matters. It simply assumes valuations don't change because we cannot forecast if they will change. So earnings yield is like bond yield. You buy a 10 year b...
by bigred77
Tue Aug 02, 2016 5:01 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 17500

Re: A costly mistake made by both investors and advisors

[url]It would have been very useful to clarify that expected returns forecasts (with all the uncertainty coming with it) are about the coming 10 to 15 years, and NOT about the rest of our lives.[/url] No, this is incorrect. When financial economists forecast returns they are UNCONDITIONAL returns, ...
by bigred77
Tue Aug 02, 2016 4:35 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 17500

Re: A costly mistake made by both investors and advisors

[url]It would have been very useful to clarify that expected returns forecasts (with all the uncertainty coming with it) are about the coming 10 to 15 years, and NOT about the rest of our lives.[/url] No, this is incorrect. When financial economists forecast returns they are UNCONDITIONAL returns, ...
by bigred77
Tue Aug 02, 2016 1:11 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 17500

Re: A costly mistake made by both investors and advisors

Expected real returns for equity portions of portfolios are going to be roughly 6% if you have a 50/50 mix of US TSM and Total International. 6% real supports 4% SWR so what's the problem ? I feel dumber with every post ! :idea: It does, but that 6% is strictly for the equity portion of the portfol...
by bigred77
Tue Aug 02, 2016 12:52 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 17500

Re: A costly mistake made by both investors and advisors

It would have been very useful to clarify that expected returns forecasts (with all the uncertainty coming with it) are about the coming 10 to 15 years, and NOT about the rest of our lives. Whether we're accumulators or retirees, this makes a HUGE difference, as periods of low returns are typically...
by bigred77
Mon Aug 01, 2016 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Switch from Allstate to Amica/USAA?
Replies: 34
Views: 1919

Re: Switch from Allstate to Amica/USAA?

I was with USAA for home and auto coverage for a number of years. I have no complaints, was satisfied with their customer service and rates. I priced my insurance a year ago and switched to Amica strictly because of prices savings (I now have auto, home, and umbrella). I have been very satisfied wit...
by bigred77
Mon Aug 01, 2016 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: What is a modest retirement (definition)?
Replies: 66
Views: 6324

Re: What is a modest retirement (definition)?

My mother lives completely within her cash flow of just under $1200/month via SS disability payments. She has a paid off condo and probably 50k in retirement accounts that she does not touch. The money is there for future medical and/or non-reoccurring expenses. She has no debt (or at least she won'...
by bigred77
Mon Aug 01, 2016 2:34 pm
Forum: Personal Consumer Issues
Topic: Should I flip my neighbor's house to save the neighborhood?
Replies: 72
Views: 6641

Re: Should I flip my neighbor's house to save the neighborhood?

It would make sense to me if I thought I could buy it, rehab it, and sell it an a reasonable time frame and make a reasonable profit given the risk level. Can you buy it for 100k, put 40k more into it, and sell it for 200k within 6 months? If so, that would probably make sense to me. Can you buy it ...

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