Search found 483 matches

by bligh
Wed Sep 20, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: New to Investing. 450k cash
Replies: 33
Views: 2880

Re: New to Investing. 450k cash

Personally I would pay the mortgage down to the point where the monthly payment was a more comfortable number for me. The rest I would invest. I would keep 20-30K as cash reserves and invest the rest at a 70/30 or 60/40 asset allocation. Your taxable portfolio IS your emergency fund.
by bligh
Wed Sep 20, 2017 9:54 am
Forum: Investing - Theory, News & General
Topic: Net Worth divided between taxable and tax-advantaged accounts
Replies: 4
Views: 848

Re: Net Worth divided between taxable and tax-advantaged accounts

You are of course correct, however it is even more complicated than that. Not only do we not know what tax rates will be in the future, we do not know what the effective tax rate on the tax deferred portfolio will be even assuming current tax rates. The size of the portfolio affects that number as w...
by bligh
Mon Sep 18, 2017 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Save/invest and buy house with cash - yes/no?
Replies: 16
Views: 1069

Re: Save/invest and buy house with cash - yes/no?

Just toying with this idea this morning... Has anyone on this board ever done this or considered doing this? Instead of getting a mortgage on a house (first home), continue to rent, save, invest, and accumulate enough cash to pay for a house in cash. Or at least have the option of using 100% cash f...
by bligh
Mon Sep 18, 2017 11:16 am
Forum: Investing - Theory, News & General
Topic: Vanguard Index Funds Q3 Ex Distribution Dates?
Replies: 2
Views: 346

Re: Vanguard Index Funds Q3 Ex Distribution Dates?

Thank you sir! I am not sure how I missed that despite all my searching. :oops:
by bligh
Mon Sep 18, 2017 11:10 am
Forum: Investing - Theory, News & General
Topic: Vanguard Index Funds Q3 Ex Distribution Dates?
Replies: 2
Views: 346

Vanguard Index Funds Q3 Ex Distribution Dates?

Hey All, I have a sum I plan into invest next week and know that the Q3 Distributions are due. I tried googling for the dates but came up with dates for the 16th and a questionable looking website claiming they were in the past. I can pull up the individual fund's (for e.g.. VTSAX (Vanguard Total St...
by bligh
Sat Sep 16, 2017 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Psychological effects of Early Retirement in peak earning years.
Replies: 63
Views: 6740

Re: Physiological effects of Early Retirement in peak earning years.

I have a decent job and thru utilizing Boglehead principles I'm in a position financially to retire. Just generally have about 65x expenses, SS, estimate 3k per month at 70 plus pension of 22K at 65. Live in LCOL area. No debt, just monthly CC that I pay in full. I'm 58 and still working full time....
by bligh
Fri Sep 15, 2017 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Average American Net Worth is $534,600?
Replies: 15
Views: 2296

Re: Average American Net Worth is $534,600?

The median net worth is usually more useful than mean. If there are a 50 college students in a room, the median and the mean net worth of the people in the room would both be close to $0. Now if Bill Gates were to step into the room to give a graduation speech, the median net worth of the people in...
by bligh
Fri Sep 15, 2017 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Average American Net Worth is $534,600?
Replies: 15
Views: 2296

Re: Average American Net Worth is $534,600?

The median net worth is usually more useful than mean. If there are a 50 college students in a room, the median and the mean net worth of the people in the room would both be close to $0. Now if Bill Gates were to step into the room to give a graduation speech, the median net worth of the people in ...
by bligh
Thu Sep 14, 2017 12:45 pm
Forum: Personal Consumer Issues
Topic: The true cost of Luxury
Replies: 32
Views: 3597

Re: The true cost of Luxury

There is a also the concept of a Veblen Good. https://en.wikipedia.org/wiki/Veblen_good "Veblen goods are types of luxury goods for which the quantity demanded increases as the price increases, an apparent contradiction of the law of demand. Consumers actually prefer more of the good as its price ri...
by bligh
Tue Sep 12, 2017 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: Thank you bull market!
Replies: 6
Views: 1957

Re: Thank you bull market!

Congratulations ryman554.

Mr Kim Jong Un may help you move in and out of that club a few times, but that doesn't make it any less an accomplishment.

Maybe you can surprise the wife with the $5300 celebration.. I mean.. how mad could she get? 8-)
by bligh
Tue Sep 12, 2017 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Retirees-anyone miscalculate how much was needed?
Replies: 71
Views: 8624

Re: Retirees-anyone miscalculate how much was needed?

Not retired yet. BUT...as a worker bee, I know that time off = opportunity to spend $, so I am concerned that an abundance of free time will equate to spending more money than I can possibly predict. I need to find some inexpensive hobbies in the next 5 years, I suppose. I like the idea of just pad...
by bligh
Tue Sep 12, 2017 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Retirees-anyone miscalculate how much was needed?
Replies: 71
Views: 8624

Re: Retirees-anyone miscalculate how much was needed?

I agree with possible health issues although if you have those the additional funds may be even more important for the care you need. I have never understood the death argument since I don't believe I will be lying in a grave regretting not having done some trip or activity. Now living 10 years wit...
by bligh
Tue Sep 12, 2017 11:45 am
Forum: Investing - Help with Personal Investments
Topic: Retirees-anyone miscalculate how much was needed?
Replies: 71
Views: 8624

Re: Retirees-anyone miscalculate how much was needed?

Not retired yet. BUT...as a worker bee, I know that time off = opportunity to spend $, so I am concerned that an abundance of free time will equate to spending more money than I can possibly predict. I need to find some inexpensive hobbies in the next 5 years, I suppose. I like the idea of just pad...
by bligh
Mon Sep 11, 2017 2:35 pm
Forum: Personal Consumer Issues
Topic: Feeling guilty for buying a new iPad pro
Replies: 30
Views: 2239

Re: Feeling guilty for buying a new iPad pro

Nah. I wouldn't feel guilty about these types of splurges. As long as you are still living way below your means.

A splurge like this if you are up to your neck in credit card debt or are living paycheck to paycheck is a completely different beast though.
by bligh
Tue Sep 05, 2017 5:13 pm
Forum: Personal Consumer Issues
Topic: Name something you had to have and now you regret purchasing it?
Replies: 275
Views: 22827

Re: Name something you had to have and now you regret purchasing it?

I regret buying all 5 of the watches I own, each in the $2-9K range. I bought them back when I was a younger and very different person.. I still own them since I cannot bring myself to take the loss and get rid of them. But I wish I had invested my money instead of wasting it on shiny doo-dah status...
by bligh
Fri Sep 01, 2017 4:29 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 332
Views: 31476

Re: Michael Kitces 4% rule podcast on Madfientist

If you have 50% flexibility in spending , you should be good to go. Just a few points however, - Anyone truly having 50% more than necessary probably needs to work much longer than someone who went with a floor strategy but say is fine with 30% more in discretionary spending (with 100% being same $...
by bligh
Fri Sep 01, 2017 2:42 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3944
Views: 1036604

Re: U.S. stocks in freefall

greg24 wrote:
Fri Sep 01, 2017 2:37 pm

So you're saying it is not actionable.
Yes, that is precisely its purpose.

It re-enforces standard Boglehead teachings to "Don't just do something, Stand there!"
by bligh
Fri Sep 01, 2017 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Strategy: Mini-retirements [young German looks how to make it work]
Replies: 9
Views: 427

Re: Investment Strategy: Mini-retirements [how to make it work]

However, regarding your quote: Does it mean you would not invest the money that you have assigned for your "longer vacation" and instead you would live in your saving/checking account? The question is what should I do with this money? In my case I am hoping to take the 2 years off in ~4 years time....
by bligh
Fri Sep 01, 2017 1:40 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3944
Views: 1036604

Re: U.S. stocks in freefall

Serious question: Why is this topic still open? That is a very good question. We see other threads get shut down very quickly for being argumentative or "unactionable", but this train wreck is allowed to run for 6 years. I think it serves a valuable purpose as a way to relieve a bit of stress when ...
by bligh
Fri Sep 01, 2017 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Strategy: Mini-retirements [young German looks how to make it work]
Replies: 9
Views: 427

Re: Investment Strategy: Mini-retirements [how to make it work]

1) Since most books and articles online are about investing for your retirement, I am confused if the traditional approach suits me. Keeping in mind that I always like to receive mini-retirements (every 5-10 years) rather than one big one in the end, what should I keep in mind when investing? I mea...
by bligh
Thu Aug 31, 2017 7:45 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 332
Views: 31476

Re: Michael Kitces 4% rule podcast on Madfientist

I'm not Jewish but perhaps a relevant quote: "Instead of promising yourself that you will play golf, read good books, and enjoy time with the family when you retire, you should heed Ben Zomah’s advice and take constant little slices of retirement as it were, each and every day of your life." I agre...
by bligh
Thu Aug 31, 2017 6:03 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 332
Views: 31476

Re: Michael Kitces 4% rule podcast on Madfientist

So it's back to the same ole argument: is 4% safe enough or not? Kitces says yes, you say that while it's always different, it's even more different this time that 4% isn't safe enough. So what is YOUR "safe enough" SWR? I don't have an SWR. I have a spreadsheet with my projected cash flow. Before ...
by bligh
Thu Aug 31, 2017 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Emergency funds and net worth calcs
Replies: 27
Views: 2469

Re: Emergency funds and net worth calcs

welderwannabe wrote:
Mon Aug 28, 2017 8:39 am
Ahh, the daily emergency fund post. My life would not be complete without it :D

Welcome to the forum by the way!

There are two. The "Emergency Fund" and the "House Downpayment".
I wonder if we could talk the admins into sticky-ing one good thread on each of those subjects to the top.
by bligh
Thu Aug 31, 2017 2:23 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 332
Views: 31476

Re: Michael Kitces 4% rule podcast on Madfientist

Awesome podcast. One thing I dont get is why more people dont break their retirement spending down into required and discretionary. I dont see why you couldn't say something like 'Your required spending should be less than 3% of your portfolio (ie. worst case) and your discretionary spendings should...
by bligh
Wed Aug 30, 2017 7:34 pm
Forum: Personal Consumer Issues
Topic: How do you reverse a lifetime of frugality and learn to spend some money?
Replies: 59
Views: 6218

Re: How do you reverse a lifetime of frugality and learn to spend some money?

I was extremely frugal throughout my working years and saved enough money to retire at age 49. I'm now 56 and I have to admit I still worry about spending money on anything but the bare necessities . I have zero debt and my home is paid for. There is nothing to fix here. You shouldn't be trying to ...
by bligh
Wed Aug 30, 2017 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: How much sooner could you retire with NO property taxes?
Replies: 116
Views: 7161

Re: How much sooner could you retire with NO property taxes?

It is pretty simple to calculate really. Property taxes are an expense. If you assume a 4% withdrawal rate to support the property taxes, just multiply the annual property tax bill by the amount needed to pay for it. Then figure out how many years it took you to earn that number. Therefore if you ar...
by bligh
Tue Aug 29, 2017 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Concerns about under/over funding 529
Replies: 16
Views: 1379

Re: Concerns about under/over funding 529

Does Colorado provide any state income tax advantages for contributing into a 529 plan? Provided you are able to continue funding all your retirement accounts as completely as you have been, saving in a 529 plan is a good option even if you end up over funding it a little. If you have some extra lef...
by bligh
Sun Aug 27, 2017 12:47 pm
Forum: Personal Consumer Issues
Topic: on track, but what about black swans
Replies: 34
Views: 2791

Re: on track, but what about black swans

I think we tend to overlook how powerful staying out of consumer debt, living below our means, and having a higher savings rate really is to surviving life. Let's look at two people: Person A: Typical Boglehead that lives below means, just paid off their home, and just hit their FI number. They are...
by bligh
Thu Aug 24, 2017 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"
Replies: 119
Views: 13731

Re: "I'm Bill Bengen, and I first proposed the 4% safe withdrawal rate in 1994. Ask me anything!"

I was mainly just trying to stress that there was another well respected researcher who implied sub 3% withdrawal rates, regardless of age, are overkill (which for some reason I get irrationally riled up about whenever I see them discussed here). I think that it is reasonably easy to talk about liv...
by bligh
Thu Aug 24, 2017 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: 78% Americans are living from paycheck to paycheck?
Replies: 15
Views: 1985

Re: 78% Americans are living from paycheck to paycheck?

78% Seems high to me too. Though keep in mind that you only need $250K in net worth to be wealthier than 70% of American households. Once you subtract home equity and retirement balances I can kind of see how a person could feel like they are living paycheck to paycheck. I have read statistics in th...
by bligh
Wed Aug 23, 2017 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Why do we consider cash flow from rentals but not our own homes?
Replies: 89
Views: 5747

Re: Why do we consider cash flow from rentals but not our own homes?

One caveat, if you are living in a country or region with property taxes, you are basically still renting. Just at a discounted rate. For example, let's say you are paying $2000 to rent a place that costs $500,000 to buy. If you buy the place outright, with cash, you still need to pay your local pro...
by bligh
Tue Aug 22, 2017 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: Park money for house down payment in HCOL area
Replies: 5
Views: 633

Re: Park money for house down payment in HCOL area

Hi All: I am 6-12 months away from buying a house in a HCOL (Bay area). I currently have > $100k sitting in a savings account and would like to make it work for this time while taking "low to moderate" risk. In a prior post, someone mentioned a combination of VWIUX & VCADX -- seems like a good choi...
by bligh
Tue Aug 22, 2017 2:11 pm
Forum: Personal Consumer Issues
Topic: Is it worth it? [demanding jobs vs time with family]
Replies: 182
Views: 11842

Re: Is it worth it? [demanding jobs vs time with family]

I also really appreciated the posters that pointed out how certain posts were judgmental and sexist. The posters claiming that women are better suited to take care of children or recommended that I live off of my husband's income demonstrate the kind of implicit bias and sexism that will continue t...
by bligh
Tue Aug 22, 2017 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: What is your cash reserve limit, above which you invest?
Replies: 25
Views: 2658

Re: What is your cash reserve limit, above which you invest?

I used to keep between 40-60K in a savings account. Now that I have built up a position in I Bonds plus Municipal bonds in my taxable investment accounts, I have dropped the cash reserves down to 20-30K. In all honesty though, I also usually hold balances of ~10K in a couple of checking accounts as ...
by bligh
Tue Aug 22, 2017 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: How to Become a Spender?
Replies: 16
Views: 1454

Re: How to Become a Spender?

Don't spend just because you can, spend because you are spending it on something that makes you happy. If you are happy, you are spending well already and don't need to switch your mindset. If you are unhappy, you need to figure out what it is that is making you unhappy and then come up with a plan ...
by bligh
Fri Aug 18, 2017 3:51 pm
Forum: Investing - Theory, News & General
Topic: Irrational Despair?
Replies: 39
Views: 5770

Re: Irrational Despair?

I keep reminding myself that with age of the bull market, with the mayhem and chaos of the current political climate, with the massive fiscal debt looming over us, the demographic headwind of an aging population, and all the other things to be gloomy about, the market seems to be bucking and kicking...
by bligh
Thu Aug 17, 2017 3:39 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3944
Views: 1036604

Re: U.S. stocks in freefall

You mean early in the accumulation phase? :mrgreen: Deep in the phase you have a lot of money you really don't want to lose. Haha, you're right of course. I meant early or in the middle of the accumulation phase. Though now that I think about it, you'd want it in the late phase too. Rather have had...
by bligh
Thu Aug 17, 2017 3:26 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3944
Views: 1036604

Re: U.S. stocks in freefall

I just checked and one of my monthly automatic buys is set to buy today - nice timing. http://1.bp.blogspot.com/-JNnY0dh1z4o/VWLguNqgimI/AAAAAAAAFV0/XhI7So1Uzrs/s320/falling_knife.gif I understand the whole market timing piece and that is not what I'm doing - it is just nice when your autobuy occur...
by bligh
Thu Aug 17, 2017 1:14 pm
Forum: Personal Consumer Issues
Topic: which 27 inch imac to purchase?
Replies: 11
Views: 874

Re: which 27 inch imac to purchase?

If you don't have heavy computing needs, go with a 2015 Mac (they on Adorama or B&H Photo) . 256 GB SSD. and see what they have on offer. Usually the older model iMacs are heavily discounted ($500+) and frankly you won't be able to tell the difference between the 2015 and the 2017 iMacs. SSD makes a...
by bligh
Thu Aug 17, 2017 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone planning on never retiring?
Replies: 138
Views: 10368

Re: Anyone planning on never retiring?

People who do not enjoy their retirement make two mistakes: 1. They retire FROM, not TO. 2. They retire too LATE, not too EARLY. To clarify: 1. When you have something to retire TO, you are waiting for the earliest opportunity to do so. You are planning and anticipating and are excited to do things...
by bligh
Thu Aug 17, 2017 11:46 am
Forum: Personal Consumer Issues
Topic: Is it worth it? [demanding jobs vs time with family]
Replies: 182
Views: 11842

Re: Is it worth it? [demanding jobs vs time with family]

No amount of money is worth letting others raise your children Please tone it down with the moralizing against working parents (which is implicitly targeted against working mothers). I haven't read any 'implicit targeting of working mothers' here, you implied it yourself. The very first response to...
by bligh
Thu Aug 17, 2017 11:03 am
Forum: Personal Consumer Issues
Topic: Is it worth it? [demanding jobs vs time with family]
Replies: 182
Views: 11842

Re: Is it worth it? [demanding jobs vs time with family]

The OP isn't asking for my opinion since I haven't been there and done that. So I wont comment on whether it is worth it financially in the long run. My wife and I are in a similar situation to the OP however we are further along in the journey (older kids). I will say that you should keep in mind t...
by bligh
Wed Aug 16, 2017 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone planning on never retiring?
Replies: 138
Views: 10368

Re: Anyone planning on never retiring?

There are many different definitions to the word retirement. I will probably never stop being productive in some capacity. But I don't want to show up for a 9-5 for the rest of my life. Retirement to me doesn't matter.. what matters to me is financial independence. It is the freedom to work if I wan...
by bligh
Wed Aug 16, 2017 2:36 pm
Forum: Investing - Help with Personal Investments
Topic: Buy + hold to avoid being priced out in the Bay Area?
Replies: 20
Views: 1888

Re: Buy + hold to avoid being priced out in the Bay Area?

You aren't gonna get priced out of the Bay Area dude. You'll be fine. My general philosophy is, if I don't have to make a commitment, why make it? In your case I would say why commit yourself to a specific piece of property when you can wait? Unless you are getting an absolute steal you are just unn...
by bligh
Mon Aug 14, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: Do you manage your asset allocation like a Target Fund?
Replies: 20
Views: 1503

Re: Do you manage your asset allocation like a Target Fund?

Yup. I started with a holding of 20% in bonds at age 35 and have increased by 1% every year since then. Keeps me disciplined to stay the course so I don't find myself thinking 'maybe I should just be 60/40 and forget the whole thing' in the middle of a bear market.
by bligh
Fri Aug 11, 2017 1:56 pm
Forum: Investing - Theory, News & General
Topic: "Honesty like that is rare!"
Replies: 47
Views: 7233

Re: "Honesty like that is rare!"

I actually had this realization when looking at my betterment portfolio. They had me allocated 1% in a corporate bonds fund. At first I didn't think much about it either way.. a few months later I started to wonder.. what difference does this 1% really make? With a 200K portfolio as an example, how ...
by bligh
Thu Aug 10, 2017 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: Investing my home down payment savings <12 months
Replies: 6
Views: 631

Re: Investing my home down payment savings <12 months

With a half mil downpayment I am going to assume you are in a really high tax bracket. I would suggest : Vanguard Limited-Term Tax-Exempt Fund Investor Shares (VMLUX) iShares Short-Term National Muni Bond ETF (SUB) or if you are braver : Vanguard Intermediate-Term Tax-Exempt Fund Investor Shares (VW...
by bligh
Thu Aug 10, 2017 12:06 pm
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 90
Views: 6471

Re: What Percentage CASH are you?

0% in my portfolio.

Including cash reserves in saving/checking account for emergencies and such.. about ~2.5%. Including I Bonds about ~5%.
by bligh
Thu Aug 10, 2017 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Struggling with Justifying an Expensive Car Purchase
Replies: 120
Views: 6258

Re: Struggling with Justifying an Expensive Car Purchase

In the end we humans are not robots. It would be silly to live your entire life optimizing for money. The most financially prudent way to live is in your car, while holding down two jobs, and never going on a vacation or ever retiring. Anything less and your are not maximizing your financial goals. ...
by bligh
Thu Aug 10, 2017 11:22 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3944
Views: 1036604

Re: U.S. stocks in freefall

Finally some volatility. It took the threat of nuclear war to bring life to this thread.