Search found 19 matches

by blessed
Fri May 19, 2017 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: Small Cap Value Tilt
Replies: 5
Views: 810

Re: Small Cap Value Tilt

I personally use both IJS in a taxable account and DFFVX in a 401K. I wouldn't pay an extra fee just for access to DFFVX, but since I was already paying an extra fee for the 401K, I was happy to go ahead and use the available DFA funds. I also use Vanguard's SCV fund (VBR as an ETF) in accounts wit...
by blessed
Fri May 19, 2017 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Small Cap Value Tilt
Replies: 5
Views: 810

Re: Small Cap Value Tilt

I tilt using Vanguards VSIAX. It is a pretty modest tilt too. I keep it at a 1:5 ratio with the Total US Stock fund. I think you should ask yourself why you want to tilt. Is it because SCV has been doing quite well in the past (recency bias)? Is it because you genuinely believe SCV will outperform ...
by blessed
Thu May 18, 2017 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: Small Cap Value Tilt
Replies: 5
Views: 810

Small Cap Value Tilt

Hello everyone, I've been reading a lot of the discussions concerning small cap value tilting. I've been taking a very simple approach to my investments, which right now consists of 75% Total Market (FSTVX) and 25% US Bond Index (FSITX), but now I'm intrigued by the thought of adding the small value...
by blessed
Sun Apr 30, 2017 2:40 pm
Forum: Personal Consumer Issues
Topic: Cost of car compared to Gross Income
Replies: 138
Views: 13252

Re: Cost of car compared to Gross Income

I haven't used a % of gross income guideline, but if I look back at recent vehicle purchases they ended up being right around 10% of our gross income. We buy nice vehicles and pay cash, but we don't buy them very often. I am currently considering buying a vehicle that is 20% of our gross income, but...
by blessed
Sun Mar 05, 2017 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

Hello everyone...just joined. I'm not financially savvy so I cling to the basics of target date investing in 401k and retirement accounts. I'm considering a second home and would like to hear other opinions on the idea. I'm in my mid-40s and my wife is in her late-30s. We never had kids due to care...
by blessed
Sat Mar 04, 2017 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

FWIW, I have a slightly different take. I have had a second home (4 different places) since I was 45. Yes there are expenses but if you really like the area, no kids, fairly high income you can use more often than most (long weekends etc.). The big decision rent or not I did for one place and I fin...
by blessed
Sat Mar 04, 2017 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

You guys have a high combined salary...but your investments at $600k is really low. Thats a red flag in my book. +1 I'm not sure what you expenses are but when you retire you will likely need about 25 times your expenses to have a 4% safe withdrawal rate. m You are not anywhere near that yet. Thank...
by blessed
Sat Mar 04, 2017 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

If your marginal tax rate is the same now as it will be in retirement, there is no advantage or penalty for a backdoor Roth conversion. You either pay taxes now on the conversion, or later on the withdrawal. Taking money out of a traditional/rollover IRA is best done when you are in a low tax brack...
by blessed
Sat Mar 04, 2017 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

I want to disregard the financial perspective because it is obvious that the additional expense is a drain and the possibility of a capital gain is about the same as investing in equities over the long term. I have had two homes for a while (different two homes over the past 12 years) and the real ...
by blessed
Thu Mar 02, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

The back door roth is pretty straight forward, we do it every year. Why are you doing backdoor roth conversions? I'm not implying you shouldn't, but it's not obvious that you should. m We do the back door Roth for the tax-free growth. I'm not eligible to contribute to a tax-deductible IRA so unless...
by blessed
Thu Mar 02, 2017 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

Just curious on how you guys contribute (let alone max) to IRAs when your income is over the limit? For example, in 2016 and a MAGI of over $194,000 for married filing jointly, you aren't eligible to contribute. Just seems like $156,000 is a lot of deductions! (well $166,000 if you are indeed maxin...
by blessed
Tue Feb 28, 2017 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

You guys have a high combined salary...but your investments at $600k is really low. Thats a red flag in my book. Im 34...wife is 32...we made 1/3 of what you do and our 401k/ira/investment accounts are higher than yours. Do not buy a 2nd home. You need to cushion your investments. Great job on your...
by blessed
Tue Feb 28, 2017 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

chicagoan23 wrote:
Our combined income is around 360k per year, conservatively.
...
We both max out our Roth IRA every year.


Do you mean you do a back door Roth? How do you contribute to a Roth with that level of income?

As for the house, you can definitely afford it.


Correct, we back door Roth every year.
by blessed
Tue Feb 28, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

First of all I would spend a couple of years renting VRBO or AirBnB properties before buying a second home in a vacation area. And talk to property owners and managers about the kinds of issues that come up. It's not just the initial outlay. It's the on-going maintenance and repairs that can become...
by blessed
Tue Feb 28, 2017 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

No intentions of renting the home, just something for broader family use and to pass down to the next generation. What "next generation?" In post #1, you said you did not have kids. Perhaps I am missing something? I should have been more clear. I would like to leave it behind for the othe...
by blessed
Tue Feb 28, 2017 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

Buying a second personal use property is really a lifestyle decision and you haven't given us enough information about your lifestyle and how you would use the property. We have multiple homes but they were all purchased without using mortgages. Seems to me that buying a second house with cash real...
by blessed
Tue Feb 28, 2017 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

Any opinions on if this is a good idea? About whether or not this is a good idea: Do you need to do this? For the cost of property taxes alone, you could probably rent a comparable home for a month. How long/often do you plan to be in it? Do you live nearby? Is it a home or a condo? Is it a tower? ...
by blessed
Tue Feb 28, 2017 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Re: Second home or not ready

How much equity do you have in your current house? Do you have any additional assets? Do you plan to rent the second home to generate income? You could certainly afford the house. That being said I wouldn't be comfortable taking on more debt without saving more and increasing net worth. Current hom...
by blessed
Mon Feb 27, 2017 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 5002

Second home or not ready

Hello everyone...just joined. I'm not financially savvy so I cling to the basics of target date investing in 401k and retirement accounts. I'm considering a second home and would like to hear other opinions on the idea. I'm in my mid-40s and my wife is in her late-30s. We never had kids due to caree...