Search found 40 matches

by blessed
Sun Sep 23, 2018 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Small cap tilt
Replies: 87
Views: 6379

Re: Small cap tilt

I'm not picking a side here, I think people should do their own research and do what they feel makes sense for their personal situation. I do have a concern with presenting data from 1975-1983 to suggest that small cap hasn't really outperformed large cap over the long term. 1. Small cap blend/value...
by blessed
Thu Aug 09, 2018 8:59 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity Total Market Index Fund on Taxable Account
Replies: 19
Views: 1810

Re: Fidelity Total Market Index Fund on Taxable Account

So far I have USD 5,700 in Fidelity Total Market Index Fund (taxable account). I don't really have any complaints about it. My current plan is to invest USD 2500-USD 5,000 to this same fund in taxable account. I do have Roth-IRA and current 401K plan with Vanguard though. I have no personal prefere...
by blessed
Sun Aug 05, 2018 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Will you pay for your kids' college/graduate education?
Replies: 366
Views: 16261

Re: Will you pay for your kids' college/graduate education?

Yes, I did pay for all education and all living/other expenses while they were in college. In my case it was my two nieces and they both went to expensive private schools for undergrad with one of them also finishing grad school. I should have made them choose a different more cost-effective route ...
by blessed
Sat Aug 04, 2018 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Will you pay for your kids' college/graduate education?
Replies: 366
Views: 16261

Re: Will you pay for your kids' college/graduate education?

Yes, I did pay for all education and all living/other expenses while they were in college. In my case it was my two nieces and they both went to expensive private schools for undergrad with one of them also finishing grad school. I should have made them choose a different more cost-effective route b...
by blessed
Thu Jul 05, 2018 1:32 pm
Forum: Investing - Theory, News & General
Topic: 28 w/heavy small cap tilt?
Replies: 41
Views: 3403

Re: 28 w/heavy small cap tilt?

I'm basically making this post to ask those who are familiar with small cap or factor tilted portfolios if this sounds like a solid plan and if maybe I should diversify with other factors? Or should I keep some TSM or TSM ex-US in my portfolio, and not go all in on small cap? Thanks for your help! ...
by blessed
Sat Apr 14, 2018 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: Which fidelity funds?
Replies: 29
Views: 3042

Re: Which fidelity funds?

We are investing between 5-7k per month. We just started this recently as we finished paying for my spouse’s law school. So far I’ve been investing 2.5k in various fidelity funds. Anyone have any recommendations going forward? What should my next two Fidelity funds be that I invest in? I use ETFs I...
by blessed
Mon Apr 02, 2018 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Retire at 55, what's the magic number
Replies: 169
Views: 24723

Re: Retire at 55, what's the magic number

Just chiming in re: health insurance. Unless you can manage your MAGI for an ACA subsidy, or have another form of health insurance, I would budget at least $25-$35k per year for coverage. The husband and I are late 40s and we budgeted $20k for this year. And it looks like we'll spend a little more ...
by blessed
Sun Apr 01, 2018 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: Retire at 55, what's the magic number
Replies: 169
Views: 24723

Re: Retire at 55, what's the magic number

KlangFool, delamer, Iliketoridemybike, and cycling duo...seems like 30x expenses is a good target.

Thanks for the discussion, onward and upward.
by blessed
Sun Apr 01, 2018 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: Retire at 55, what's the magic number
Replies: 169
Views: 24723

Re: Retire at 55, what's the magic number

I would estimate my annual expenses to be around 84k in retirement, but that's a very conservative number because I have no idea what to expect for health insurance cost. I plan to take SS at 67. Barring something unexpected I will be 100% debt free. Thanks blessed, What is your current annual expe...
by blessed
Sun Apr 01, 2018 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Retire at 55, what's the magic number
Replies: 169
Views: 24723

Re: Retire at 55, what's the magic number

25x-30x expenses, conservatively. +1,000. KlangFool Thanks KlangFool, was hoping you would chime in on this. Our SS will probably be around 60k/year combined. With that in mind, do you still think 25x-30x expenses? blessed, 1) If you are willing to tell us your current annual expense, we can give a...
by blessed
Sun Apr 01, 2018 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Retire at 55, what's the magic number
Replies: 169
Views: 24723

Re: Retire at 55, what's the magic number

KlangFool wrote:
Sun Apr 01, 2018 8:51 pm
Iliketoridemybike wrote:
Sun Apr 01, 2018 8:46 pm
25x-30x expenses, conservatively.
+1,000.

KlangFool
Thanks KlangFool, was hoping you would chime in on this. Our SS will probably be around 60k/year combined. With that in mind, do you still think 25x-30x expenses?
by blessed
Sun Apr 01, 2018 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Retire at 55, what's the magic number
Replies: 169
Views: 24723

Retire at 55, what's the magic number

Hello,
I know there are a lot of variables to this question, but curious what amount of money fellow BHs would want to have saved/invested in order to retire at 55. Make the assumption that a) you would be 100% debt free and b) dual SS when that time comes.

What's your number?

Thanks
by blessed
Thu Mar 15, 2018 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Those with high savings rate: why?
Replies: 246
Views: 35496

Re: Those with high savings rate: why?

I save aggressively because I'm trying to make up for not saving as well as I should have early on and I want to retire at 55 at the latest.
by blessed
Sat Mar 03, 2018 11:53 pm
Forum: Investing - Help with Personal Investments
Topic: Fixed Income: New Approach
Replies: 5
Views: 1153

Re: Fixed Income: New Approach

How would you react to your portfolio declining 50% (the stock-only portfolio) vs. 30% (the balance portfolio)? I would react the same way whether I was 70/30 equity/bonds or 70/30 equity/home equity. I would be viewing my home equity and reduced mortgage as "returning" 3.125% as my fixed income AA...
by blessed
Sat Mar 03, 2018 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: Fixed Income: New Approach
Replies: 5
Views: 1153

Fixed Income: New Approach

Well, after feeling good about my plan to use CDs as my fixed income AA going forward, I've run into a problem. I was not aware that I could not purchase CDs in my Fidelity Brokerage Link through my employer's 401k plan. So I'm thinking of a different approach than just continuing to dump money into...
by blessed
Sun Feb 25, 2018 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: CDs for Fixed Income
Replies: 15
Views: 1441

Re: CDs for Fixed Income

mega317 wrote:
Sun Feb 25, 2018 4:57 pm
One drawback I see is that it's much easier to just hold a bond mutual fund than managing CDs.
Agreed, this would definitely be a drawback.
by blessed
Sun Feb 25, 2018 6:06 pm
Forum: Investing - Help with Personal Investments
Topic: CDs for Fixed Income
Replies: 15
Views: 1441

Re: CDs for Fixed Income

3-year Brokered CDs are now yielding 2.6%. IMO, the extra risk going from 3-year to 5-year CDs is not worth the 0.2% extra yield. The sweet spot seems to be either 2.4% for 2-years or 2.6% for 3-years. I like your thinking on the 3-yr. It might be a decent option to do a 3,4,and 5 yr ladder, so you...
by blessed
Sun Feb 25, 2018 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: CDs for Fixed Income
Replies: 15
Views: 1441

CDs for Fixed Income

Hello BHs, With 5 year CD rates currently at 2.8% I am considering moving all of my fixed income allocation to CDs. I would be 100% satisfied with the fixed income portion of my portfolio returning a guaranteed 2.8%. Has anyone else taken or considered taking the approach of CDs for all of your fixe...
by blessed
Thu Feb 08, 2018 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: What Would you do? (Inheritance)
Replies: 22
Views: 3435

Re: What Would you do? (Inheritance)

1) Continue renting, put roughly $400k into a 3 fund at vanguard and basically forget about it for the next 20 years (while hopefully adding to that amount monthly). Thanks again for reading and appreciate any thoughts/input! You'll get better advice from others as to what option to pick, but if yo...
by blessed
Tue Jan 23, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity taxable account recommendations
Replies: 7
Views: 2055

Re: Fidelity taxable account recommendations

Consider increasing the FI allocation in your tax-deferred and go 100% stocks in your taxable to match your AA.

In our Fidelity taxable account we use ETFs: ITOT (total US) and IXUS (total intl).
by blessed
Sat Dec 30, 2017 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: tax efficiency Fidelity funds
Replies: 10
Views: 1799

Re: tax efficiency Fidelity funds

Great. Thanks for the replies. I have ETFs in my taxable as well. However, there is no way to automatically contribute the ETFs (e.g. on a monthly basis) like there is with index mutual funds. With ETFs in taxable, I feel compelled to time the market (e.g on a monthly basis) as opposed to dollar co...
by blessed
Fri May 19, 2017 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: Small Cap Value Tilt
Replies: 5
Views: 1239

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: 1239

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: 1239

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: 16172

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: 6436

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: 6436

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: 6436

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. https://www.bogleheads.org/wiki/Safe_withdr...
by blessed
Sat Mar 04, 2017 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 6436

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: 6436

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: 6436

Re: Second home or not ready

The back door roth is pretty straight forward, we do it every year. :beer Why are you doing backdoor roth conversions? I'm not implying you shouldn't, but it's not obvious that you should. https://www.bogleheads.org/wiki/Roth_IRA_conversion We do the back door Roth for the tax-free growth. I'm not ...
by blessed
Thu Mar 02, 2017 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 6436

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: 6436

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: 6436

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: 6436

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: 6436

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 others in my f...
by blessed
Tue Feb 28, 2017 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 6436

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: 6436

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: 6436

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: 6436

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...