Search found 828 matches

by bigred77
Fri Jul 29, 2016 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Is retirement a serious option for me?
Replies: 11
Views: 863

Re: Is retirement a serious option for me?

Total Assets over $1M+. Debt of 0. Potential Inheritance: 500k+ Age 61 If retirement isn't a "serious option" for you than it's not a serious option for anyone. Can you map out concrete numbers on what your expenses will be including insurance costs, a sinking fund for large non-recurring ...
by bigred77
Thu Jul 28, 2016 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Retirement vs Non-Retirement Asset Allocations
Replies: 16
Views: 531

Re: Retirement vs Non-Retirement Asset Allocations

When I was entering the workforce from school, I tried to pick a long term savings percentage to dedicate to retirement savings (long term investing). I decided to start at 25% of income and try to raise it over time to 33%. I then made lifestyle decisions (where to live, what car to buy, where to g...
by bigred77
Wed Jul 27, 2016 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Any retirees here who have been life-long renters?
Replies: 120
Views: 7729

Re: Any retirees here who have been life-long renters?

From what I've seen, if you could purchase a $XXX,XXX house in cash, you could also rent something similar using proceeds of a equivalently sized investment portfolio. What you've seen is very different from the way things work around here. In my town (affluent suburb in Upstate NY in school distri...
by bigred77
Tue Jul 26, 2016 11:49 am
Forum: Personal Consumer Issues
Topic: When does it make sense to have a second vechicle?
Replies: 33
Views: 2346

Re: When does it make sense to have a second vechicle?

It sounds like you drive roughly 22.5k miles per year. You're going to go through cars quicker than others who drive less. Your Malibu sounds like it was a good choice for you. Practical, good gas mileage, and reliable. You don't need a backup car for a 3 year old car. If something breaks, you have ...
by bigred77
Tue Jul 26, 2016 11:02 am
Forum: Personal Finance (Not Investing)
Topic: First house purchase advice
Replies: 14
Views: 1105

Re: First house purchase advice

If you are set on buying now, I would buy something suitable for kids. Get the space, schools, and location you want now. Upgrading later is a hassle and expensive. SFH vs Townhome is a personal decision for you to make. Buy something you can see yourself living in at least until your kids are teena...
by bigred77
Tue Jul 26, 2016 10:55 am
Forum: Personal Consumer Issues
Topic: What is your plan if you lose job tomorrow ??
Replies: 60
Views: 4365

Re: What is your plan if you loose job tomorrow ??

My wife and I could PROBABLY get by on her salary plus unemployment/severance for a while but we would have to cut all luxuries, new savings, and pay only the minimums on our debt servicing. I like to think I would take a few days or a week to decompress before starting the job hunt but with that bi...
by bigred77
Tue Jul 19, 2016 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: What to do with a bit of extra money each month?
Replies: 40
Views: 2643

Re: What to do with a bit of extra money each month?

Right now you have an extra $400 dollars at the end of every month laying around. Your currently being taxed on this money as well. Put that $400 a month into the 403b (traditional) and invest an extra $4,800 a year for retirement. Take the tax savings ($4,800 * 15% = $720; plus an increased child t...
by bigred77
Tue Jul 19, 2016 11:44 am
Forum: Investing - Theory, News & General
Topic: NY Times article-Shiller on land and homes
Replies: 18
Views: 2679

Re: NY Times article-Shiller on land and homes

I found the article interesting and entertaining. I disagree pretty strongly on his theory that urban, megacity land prices may stall or even decline. 200 sq ft apartments might house one, single, mid 20s worker, but they are not going to be desirable for couples and families. I think real estate wi...
by bigred77
Mon Jul 18, 2016 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Should I pursue my MBA?
Replies: 33
Views: 2013

Re: Should I persue my MBA?

Where do you live (major cities have more options)? Will your employer kick in any tuition reimbursement for it? What are your post MBA career goals? Do you want to simply move into a management role with your current employer (or at least your current department/function)? How much do the local pro...
by bigred77
Thu Jul 14, 2016 10:48 am
Forum: Investing - Theory, News & General
Topic: Jason Zweig: Sorry, You're Just Going To Have To Save More Money
Replies: 16
Views: 3962

Re: Jason Zweig: Sorry, You're Just Going To Have To Save More Money

Biggest takeaway for me was that investors can't simply park money in an intermediate term bond fund and then turn a blind eye. It's now time for retail investors to read up on CD terms, EE/E and I bonds, and stable value funds. There are now significant differences in fixed income options. Not so ...
by bigred77
Thu Jul 14, 2016 9:04 am
Forum: Investing - Theory, News & General
Topic: Jason Zweig: Sorry, You're Just Going To Have To Save More Money
Replies: 16
Views: 3962

Re: Jason Zweig: Sorry, You're Just Going To Have To Save More Money

Biggest takeaway for me was that investors can't simply park money in an intermediate term bond fund and then turn a blind eye.

It's now time for retail investors to read up on CD terms, EE/E and I bonds, and stable value funds. There are now significant differences in fixed income options.
by bigred77
Wed Jul 13, 2016 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Sound bite.
Replies: 13
Views: 809

Re: Sound bite.

I generally agree with the premise and plan to hold about 60% equities myself at that age.

I disagree with making a blanket statement like that and implying that the statement should be some sort of "rule of thumb" for people that age.
by bigred77
Wed Jul 13, 2016 10:59 am
Forum: Personal Consumer Issues
Topic: How much cash to give when invited to a wedding?
Replies: 73
Views: 4993

Re: How much cash to give when invited to a wedding?

I'm in my early 30s in the South. All of our male friends are now getting married (all the girls seem to get married at a much younger age down here). I give $100 dollars per wedding on behalf of my wife and I whether we travel out of the country for the wedding or it's 5 miles from my house. For br...
by bigred77
Wed Jul 13, 2016 9:54 am
Forum: Personal Consumer Issues
Topic: Do you tip Uber drivers?
Replies: 49
Views: 5253

Re: Do you tip Uber drivers?

I use Uber quit a bit.

I only tip a few bucks extra if I make a special request (i.e. can they stop on the way and let me run into the convenience store?)
by bigred77
Fri Jul 08, 2016 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Thinking of purchasing a home, talk me out of it. can my plan work?
Replies: 47
Views: 3635

Re: thinking of purchasing a home, talk me out of it. can my plan work?

Coming back after reviewing some of your past posts. I can tell you like to hustle, and that's not bad. You seem to have had the house bug ever since you joined us. Initially ( https://www.bogleheads.org/forum/viewtopic.php?f=1&t=137757 ) you were deep in debt and thinking about taking a loan f...
by bigred77
Thu Jul 07, 2016 3:22 pm
Forum: Investing - Theory, News & General
Topic: "Why most retirees will never spend down their portfolio" by Michael Kitces
Replies: 89
Views: 10633

Re: "Why most retirees will never spend down their portfolio" by Michael Kitces

The actual answer to that question (for most people, anyway) is: "Because they haven't annuitized their savings". Thus, they have to be overly conservative in their spending to avoid the risk of running out of money before they die. Of course it is also true that payout rates are pretty l...
by bigred77
Thu Jul 07, 2016 1:19 pm
Forum: Investing - Theory, News & General
Topic: "Why most retirees will never spend down their portfolio" by Michael Kitces
Replies: 89
Views: 10633

Re: "Why most retirees will never spend down their portfolio" by Michael Kitces

The actual answer to that question (for most people, anyway) is: "Because they haven't annuitized their savings". Thus, they have to be overly conservative in their spending to avoid the risk of running out of money before they die. Of course it is also true that payout rates are pretty l...
by bigred77
Wed Jul 06, 2016 11:44 am
Forum: Investing - Help with Personal Investments
Topic: Savings Review and a Few Questions
Replies: 13
Views: 1039

Re: Savings Review and a Few Questions

You don't state the value of your home (only your mortgage balance), but I suspect you are already a millionaire before age 40 (counting home equity). You will have investable assets of over $1 million in your early 40s (if you stay on this track). I would say you're doing better than "fine&quo...
by bigred77
Thu Jun 30, 2016 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Refinancing Home to buy Stocks. Confusion
Replies: 62
Views: 4033

Re: Refinancing Home to buy Stocks. Confusion

If you are disciplined enough to Invest the total amount of the mortgage payment you no longer need to make in a taxable investment account then I would probably just leave well enough alone. If you are someone (and I probably fall into this category myself) who might invest a portion of that mortga...
by bigred77
Thu Jun 30, 2016 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Do we have enough to retire?
Replies: 87
Views: 6487

Re: Do we have enough to retire?

In the OP's situation I would try to keep my head down, keep saving 15k a month, make sure my kids 529s were flush, keep paying down my primary mortgage, etc. until I was about 40. At 40 I would come up for air and re-evaluate how I wanted to live my life. Unless you hate your job, it would be awful...
by bigred77
Thu Jun 30, 2016 7:52 am
Forum: Investing - Help with Personal Investments
Topic: I think everyone should look into a home equity line of credit
Replies: 26
Views: 1710

Re: I think everyone should look into a home equity line of credit

I pretty much agree with the quoted post. HELOCs are a pretty great tool. They can help you with cash flow issues, short - medium term financing, and act as a source of emergency funds. They're low interest, usually tax deductible, and often have lenient repayment terms (such as interest only paymen...
by bigred77
Wed Jun 29, 2016 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Where were you financially when you were at 30?
Replies: 225
Views: 22818

Re: Where were you financially when you were at 30?

OP is doing quite well for age 30. I would encourage him/her to focus on increasing income and getting to a healthy, consistent savings rate. I think there were a number of threads similar to this one in the past if OP wants to search for them. Don't be discouraged by the wunderkinds who claim to be...
by bigred77
Wed Jun 29, 2016 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC for emergency and when you would use it
Replies: 32
Views: 2105

Re: HELOC for emergency and when you would use it

I wouldn't care all that much if my HELOC lender was the same as the lender servicing my primary mortgage. I would shop for the best deal. If all else is equal, I would probably go with the same lender if it was more convenient. I would use it if I had an emergency pop up that I couldn't pay with my...
by bigred77
Fri Jun 24, 2016 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Semi-market Timing - please attack idea
Replies: 13
Views: 785

Re: Semi-market Timing - please attack idea

I suspect in the long run, this will be small potatoes in terms of the final portfolio balance. I suspect the better decision would be to take all new money and allocate it 1/3 to mortgage, 1/3 to US TSM, and 1/3 to International. When the mortgage is paid off, contribute 50/50. Be sure to rebalance...
by bigred77
Fri Jun 24, 2016 8:25 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage options with 10% down in NY
Replies: 5
Views: 516

Re: Mortgage options with 10% down in NY

It's relatively easy to do an 80/10/10 mortgage which requires no PMI. You do an traditional mortgage for 80% of the value. You then get a second, or "piggyback", mortgage for 10% of the value. Then you put down 10% in cash and pay no PMI. The piggyback loan is usually at a higher interest...
by bigred77
Tue Jun 21, 2016 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Finance or pay cash for dream house
Replies: 9
Views: 1081

Re: Finance or pay cash for dream house

What is your age, total net worth, and how much will the house cost? If the house represents 1/2 of your net worth I would take a mortgage. if the house is 1/10 of your net worth I would pay cash. Construction + land is about $600,000. Total net worth today is $1.4 million. Age is 37. At your age a...
by bigred77
Tue Jun 21, 2016 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Finance or pay cash for dream house
Replies: 9
Views: 1081

Re: Finance or pay cash for dream house

What is your age, total net worth, and how much will the house cost?

If the house represents 1/2 of your net worth I would take a mortgage.

if the house is 1/10 of your net worth I would pay cash.
by bigred77
Tue Jun 21, 2016 10:28 am
Forum: Investing - Theory, News & General
Topic: NY Times Op-Ed: Pension Holders Need a New Retirement Plan, Not Stock Tips
Replies: 65
Views: 4698

Re: NY Times Op-Ed: Pension Holders Need a New Retirement Plan, Not Stock Tips

The NY Times has an Op-Ed today about how workers are faring for retirement in today's system, with the conclusion that they are getting [hoodwinked]. But the NY Times' Steven Rattner isn't perfect either. • If you have a good 401(k) plan and you change jobs, either leave it where it is or move it ...
by bigred77
Mon Jun 20, 2016 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: making the right move?
Replies: 18
Views: 1093

Re: making the right move?

Thanks for the replies. Lets put away emotions and feelings and think about this logically. I understand thats alot of debt and I honestly dont like it but i'm trying to think what works out best long term and mathematically.I am saying I have 10K to put either towards investing or paying back loan...
by bigred77
Mon Jun 20, 2016 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: making the right move?
Replies: 18
Views: 1093

Re: making the right move?

Why not just split it 50/50. Invest 5k a month in a taxable account and pay down 5k a month in additional principal payments.

In 10 years be debt free and have a 750K+ taxable account (assuming 5% investment returns).
by bigred77
Mon Jun 20, 2016 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Using 60 day rollover as cash buffer while buying a house
Replies: 20
Views: 1851

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

You can withdraw the entire amount from your Roth IRA and replace it within 60 days with no penalties or tax consequences. You can only do this once a year and it is treated as a rollover, even if you put the money back in to the existing Roth IRA account you have with the same existing broker. I di...
by bigred77
Wed Jun 08, 2016 1:50 pm
Forum: Investing - Theory, News & General
Topic: 401k(s) are not the best way to save for retirement?
Replies: 57
Views: 6335

Re: 401k(s) are not the best way to save for retirement?

The key thing the article leaves out - pointed out above - your money you elect to save in taxable now instead of 401k is all taxed at your HIGHEST bracket (25%, 28%, 33%, 35%, 39.6%). In retirement, it is NOT all taxed at the highest bracket. Some is taxed at the lowest bracket (10%), some at the ...
by bigred77
Wed Jun 08, 2016 10:11 am
Forum: Investing - Theory, News & General
Topic: 401k(s) are not the best way to save for retirement?
Replies: 57
Views: 6335

Re: 410k(s) are not the best way to save for retirement?

I thought the article was ridiculous at best. Even if you are in the same tax bracket in retirement as you were in your working years, your deferring 100% of your 401k contributions at your marginal (or sometimes the step above) tax bracket. When you withdraw, your money(excluding SS for now) is tax...
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: 17
Views: 1768

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: 3532

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: 2196

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: 48
Views: 3795

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: 4995

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: 4995

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: 16
Views: 1826

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: 16
Views: 1826

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: 91
Views: 8571

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: 1595

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: 778

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: 1969

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: 4016

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: 22658

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: 4015

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: 569

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: 4030

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.

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