Search found 223 matches

by chicagoan23
Thu Dec 07, 2017 11:27 am
Forum: Investing - Help with Personal Investments
Topic: 112K pension- need help w/the rest
Replies: 26
Views: 2382

Re: 112K pension- need help w/the rest

I earn an additional 65k in a new career and my new wife earns 350k and has her own pension plus IRA. I am not sure what my expenses will be in 20 years so I am not sure how to answer that question. Currently we spend about 170k per year. Does the pension have a COLA? If not, the annual payout may ...
by chicagoan23
Wed Dec 06, 2017 3:08 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 665
Views: 112296

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I hadn't realized TD Ameritrade had a $1000 offer going, but here it is: https://www.tdameritrade.com/offer/for90days/index.html They are pretty formulaic. In fact the bonuses are automatically credited as each level is reached. However, it wouldn't hurt to contact them and see, maybe a rep can wor...
by chicagoan23
Wed Dec 06, 2017 2:57 pm
Forum: Investing - Theory, News & General
Topic: Farmland REITs?
Replies: 29
Views: 3587

Re: Farmland REITs?

Was wondering if there are any updates to this thread? Seems like the past 18 months have not been good for appreciation of farm prices. Have the yields caught up to the underlying land prices yet? Are the likes of FPI and LAND overleveraged in a rising interest rate environment? Any other thoughts?...
by chicagoan23
Thu Nov 16, 2017 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 15192

Re: Why pay cash for a car?

"2% discount on the price" FWIW- my cash buy target has been 20% off MSRP or higher over the last 3 transactions. No, not a 2% discount off sticker....a 2% discount off the price we had already agreed to. That price was well below sticker and also below invoice, and was extensively researched for m...
by chicagoan23
Wed Nov 15, 2017 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 15192

Re: Why pay cash for a car?

Those 0% loans are only on new cars and new car values drop $5,000-$10,000 the second you drive the vehicle off the dealer lot. You might "make" $500 over five years vs. paying cash, but with financing you lost $5,000 instantly and the car only keep depreciating. Used car rates are 4%-8% depending ...
by chicagoan23
Wed Nov 15, 2017 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 15192

Re: Why pay cash for a car?

Lots of people in denial... Having had a car dealers as clients, I've seen all the tricks - including dealing with buyers who think that they know it all... Dealers are in business to make money. The prices that you can find online may or may not be close to what the dealer pays at any given point ...
by chicagoan23
Wed Nov 15, 2017 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 15192

Re: Why pay cash for a car?

When negotiating a price, the dealer will take into account whether you are paying cash or financing. You will pay for a below-market finance rate in the sale price of the car. This is not at all true. Here's how it actually works. For MANUFACTURER financing you often (but not always) give up a reb...
by chicagoan23
Tue Nov 14, 2017 6:34 pm
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 15192

Re: Why pay cash for a car?

"If you can get a car loan for under 2% over five years or so, it is a no-brainer to take the loan, 100% of the time." But I don't want a loan. I haven't had a car payment since 1986 and have been completely debt free since 1997. I'm perfectly happy setting aside money for a vehicle, buying new at ...
by chicagoan23
Tue Nov 14, 2017 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: Why pay cash for a car?
Replies: 179
Views: 15192

Re: Why pay cash for a car?

I happily took a five-year 0% loan when I bought a new car in 2012. I got a great price; tried to negotiate further by offering cash and was told the price would go up if I didn't take the financing. I set up auto payments for the first month, and had 60 equal installments come out of my checking ac...
by chicagoan23
Fri Nov 10, 2017 4:18 pm
Forum: Investing - Theory, News & General
Topic: "$1 Million is Closer Than You Think"
Replies: 54
Views: 9520

Re: "$1 Million is Closer Than You Think"

JoMoney wrote: ↑
Tue Nov 07, 2017 4:20 am
I input a 7 figure number and it told me I had a 95% chance of having $1 million in 5 years :shock:
I moved the goal to $10 million by inputting 1/10 of my current portfolio and 1/10 of my current income/savings, but everything else the same. Very encouraging!
by chicagoan23
Wed Nov 08, 2017 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Poll-How much do you have in your HSA?
Replies: 50
Views: 4868

Re: Poll-How much do you have in your HSA?

$38,000 give or take a few hundred. Now have $10,000 in cash, the rest all in Vanguard Target Date Fund for 2040 (VFORX). Using SelectAccount and am very happy with them. Started in 2009, maxed it out every year but unfortunately also took distributions to pay medical expenses (mostly related to chi...
by chicagoan23
Tue Oct 24, 2017 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan: To Pay or Not to Pay: That is the Question
Replies: 32
Views: 3051

Re: Student Loan: To Pay or Not to Pay: That is the Question

Don't pay it off. Goal #1 should be to take all available funds and max out tax favored accounts. If you're not doing that yet then I wouldn't even consider a student loan payoff. You need to cut your tax expense, especially if you're getting severance.
by chicagoan23
Fri Oct 06, 2017 5:04 pm
Forum: Investing - Theory, News & General
Topic: Time Value of Money (Young Investors)
Replies: 29
Views: 2112

Re: Time Value of Money (Young Investors)

We're now surrounded by places like this forum that chant "experts don't know shit, everyone's corrupt in the industry, don't trust anyone, crashes are coming, but you should still invest in the market" (and if you're not on this forum, the news can be even less encouraging) and, shockingly, these ...
by chicagoan23
Fri Oct 06, 2017 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Student loan/investing advice
Replies: 5
Views: 419

Re: Student loan/investing advice

What is the rate on the student loans? If it is anything less than, say 4%, I'd leave things as they are and just pay the minimums. If it is higher than 4% think of refinancing to SoFi. I wouldn't liquidate a taxable account to pay off student loan debt, unless you were already planning on selling a...
by chicagoan23
Fri Oct 06, 2017 12:14 pm
Forum: Investing - Theory, News & General
Topic: Time Value of Money (Young Investors)
Replies: 29
Views: 2112

Re: Time Value of Money (Young Investors)

60k/year from 18 to 65 yields 237 million. Somewhat unrealistic unless you have a very good job which you could reasonably have by age 30: 60k/year from 30 to 65 yields 100 million. I think most people would choose early retirement or a more lavish lifestyle. Oh how I wish this were true, but accor...
by chicagoan23
Wed Oct 04, 2017 12:24 pm
Forum: Investing - Theory, News & General
Topic: $10 million+ - Still Working and LBYM
Replies: 162
Views: 17239

Re: $10 million+ - Still Working and LBYM

If you are FI in your early 30s, then let's say you started building your real estate empire in 2009 at the bottom of the financial crisis. According to this data and again here , the S&P CoreLogic Case-Shiller San Francisco Home Price NSA Index bottomed out at about 120 or so. It's now at 245. Gre...
by chicagoan23
Wed Oct 04, 2017 11:50 am
Forum: Investing - Theory, News & General
Topic: $10 million+ - Still Working and LBYM
Replies: 162
Views: 17239

Re: $10 million+ - Still Working and LBYM

And you're right - I don't see real estate in good areas of NYC/SF/LA as being "risky". Sure, anything could happen, but losing money on that would be at the very bottom of my worry list when considering history. Must be recent history.....NYC real estate was destroyed in the 70s and 80s; an old ne...
by chicagoan23
Wed Oct 04, 2017 6:55 am
Forum: Investing - Theory, News & General
Topic: $10 million+ - Still Working and LBYM
Replies: 162
Views: 17239

Re: $10 million+ - Still Working and LBYM

And you're right - I don't see real estate in good areas of NYC/SF/LA as being "risky". Sure, anything could happen, but losing money on that would be at the very bottom of my worry list when considering history. Must be recent history.....NYC real estate was destroyed in the 70s and 80s; an old ne...
by chicagoan23
Tue Oct 03, 2017 5:12 pm
Forum: Investing - Theory, News & General
Topic: $10 million+ - Still Working and LBYM
Replies: 162
Views: 17239

Re: $10 million+ - Still Working and LBYM

And you're right - I don't see real estate in good areas of NYC/SF/LA as being "risky". Sure, anything could happen, but losing money on that would be at the very bottom of my worry list when considering history. Must be recent history.....NYC real estate was destroyed in the 70s and 80s; an old ne...
by chicagoan23
Tue Oct 03, 2017 2:18 pm
Forum: Investing - Theory, News & General
Topic: $10 million+ - Still Working and LBYM
Replies: 162
Views: 17239

Re: $10 million+ - Still Working and LBYM

My friend who is worth $20M has $19.5M equity in real estate (but a lot more in total exposure to real estate because of his mortgages) and $500k in cash, and he just holds onto his properties forever, or 1031 exchanges them (deferring the taxes), in which case he would pass it onto his children an...
by chicagoan23
Tue Oct 03, 2017 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: loosening the purse strings a bit at 37?
Replies: 30
Views: 4087

Re: loosening the purse strings a bit at 37?

I think you should try to save even more because you have reached the "sweet spot" for accumulations. Many of the early life expenses (your college/education, wedding, loss of income after kids are born, house downpayment, furniture for that house, first cars, second cars, etc.) are behind you. Othe...
by chicagoan23
Fri Sep 29, 2017 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: Question: Why do people put/keep millions of dollars in investment accounts?
Replies: 66
Views: 8634

Re: Question: Why do people put/keep millions of dollars in investment accounts?

In my opinion, the hardest part about real estate is not managing the property (which can consume time if you don't have a property manager) but rather in finding an appropriate deal. Too many people want to buy a $300K home and rent it out for $1800 -> bad deal and you would be better off keeping ...
by chicagoan23
Fri Sep 29, 2017 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Question: Why do people put/keep millions of dollars in investment accounts?
Replies: 66
Views: 8634

Re: Question: Why do people put/keep millions of dollars in investment accounts?

Question: Why do people put/keep millions of dollars in investment accounts? If the stock market can crash at any time, why do some people have a lot of their wealth (50%-80%+) tied up in investment accounts? I have seen some people's posts on here who have something like 2 million in their investm...
by chicagoan23
Thu Sep 28, 2017 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: I am in the investment advice industry and I'm not sure if I provide any value
Replies: 67
Views: 6812

Re: I am in the investment advice industry and I'm not sure if I provide any value

For people that never developed the right neural connections to control their spending, savings, and urge to gamble in the latest hot stocks, your fees are worth every penny. Agreed. Your advice seems sound, and you aren't steering people into terrible investment decisions. There is value in that. ...
by chicagoan23
Thu Sep 21, 2017 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: I won the Lottery. Need sound advice.
Replies: 220
Views: 25342

Re: I won the Lottery. Need sound advice.

I want to thank you all for the advice. Many of you pulled no punches, so thank you. I agree that the underlying problem has been our spending habits and general lack of financial discipline. This windfall is the "reset button", I know. Nothing will change until we learn to live within our means, a...
by chicagoan23
Thu Sep 21, 2017 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: I won the Lottery. Need sound advice.
Replies: 220
Views: 25342

Re: I won the Lottery. Need sound advice.

If the OP paid all debt including mortgage he'd have $700,000 left. That amounts to somewhere between $20-$25k annual withdrawal rate in perpetuity. If he increases his standard of living at all he will burn right through that amount. And ~$150k in retirement accounts and a $400k paid-in-full house...
by chicagoan23
Thu Sep 21, 2017 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: I won the Lottery. Need sound advice.
Replies: 220
Views: 25342

Re: I won the Lottery. Need sound advice.

If the OP paid all debt including mortgage he'd have $700,000 left. That amounts to somewhere between $20-$25k annual withdrawal rate in perpetuity. If he increases his standard of living at all he will burn right through that amount. And ~$150k in retirement accounts and a $400k paid-in-full house...
by chicagoan23
Thu Sep 21, 2017 11:40 am
Forum: Investing - Help with Personal Investments
Topic: I won the Lottery. Need sound advice.
Replies: 220
Views: 25342

Re: I won the Lottery. Need sound advice.

Looks like we'll never hear back from OP. Time for everyone to stop replying to this thread. It has been less than 12 hours since OP was on the site and posted. You have a looser definition of "never" than I do, but you might be right. Otoh, the initial post has been an interesting Rorschach test, ...
by chicagoan23
Wed Sep 20, 2017 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: I won the Lottery. Need sound advice.
Replies: 220
Views: 25342

Re: I won the Lottery. Need sound advice.

My goodness, what a post. Congratulations!! I would say in your situation a payoff of all debt is probably a good idea. Once that is done I would say blow $20k on yourself and then tie up most of the rest in something that gives you some time to think. DON'T DO ANYTHING RASH!! Did you read the wiki ...
by chicagoan23
Wed Sep 20, 2017 6:49 pm
Forum: Investing - Help with Personal Investments
Topic: 24F Looking to start an aggressive portfolio
Replies: 31
Views: 2669

Re: 24F Looking to start an aggressive portfolio

At an e3 pay level, every dollar of savings (after emergency fund) should be going to a Roth account. The Roth IRA is probably best. Make sure as much as possible is included in your taxable income.
by chicagoan23
Tue Sep 19, 2017 5:12 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 665
Views: 112296

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

This is a very helpful thread, thanks to all for posting. My spouse has an old rollover IRA sitting at Merrill Edge that may now be moved penalty free. The value, as of today, is $239,856. She has already made her 2017 contribution. To get the $1,000 at TD Ameritrade, she would have to open the acco...
by chicagoan23
Tue Sep 19, 2017 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Where to park $200K cash?
Replies: 27
Views: 3938

Re: Where to park $200K cash?

I know how to get 3% on 15K But nobody knows how to get 3% on 200K That is my problem That's not a problem, that's just reality. You're not going to get more than one percent or so on cash, anywhere. You might get a few basis points here and there if you spend some time looking and setting up multi...
by chicagoan23
Tue Sep 19, 2017 1:42 pm
Forum: Investing - Theory, News & General
Topic: Any "average Joe" here actually make out well with individual stocks?
Replies: 108
Views: 13138

Re: Any "average Joe" here actually make out well with individual stocks?

My experience has been that I've generally made out well where I have been following a company and take advantage of sudden drops in the price. Of course, once you're in you need to know when to get out, which is much tougher. Here's a recent example for me: I had been following ADM for a while and ...
by chicagoan23
Tue Sep 19, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 233
Views: 26510

Re: Calling out the not so rich bogleheads

For us, the Dave Ramsey (DR) program was necessary and we rocketed through the program. From a negative net worth to being consumer debt free (BS2) in 13 months, to home paid for (BS6) in 36 months, to two comma club in 50 months. During that time we did receive large salary increases, but we both ...
by chicagoan23
Tue Sep 19, 2017 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Age 40: Requesting Look At Portfolio
Replies: 22
Views: 3207

Re: Age 40: Requesting Look At Portfolio

I'd like to know your marginal tax rate too. Does your 401(k) plan have a Roth option? If so, it may make more sense for you to contribute to the 401(k) using Roth dollars. If your current marginal rate is low enough (say, if your AGI puts you in the 15% bracket) you can pay a low tax rate now and h...
by chicagoan23
Mon Sep 18, 2017 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 233
Views: 26510

Re: Calling out the not so rich bogleheads

My two cents: the stories about average or moderately high earners who have amassed huge fortunes have been very motivating to me. As I've slowly followed the advice I have read here, I've seen my net worth go from under $1 million in 2013 to $1.65 million today. Even better I've rid myself of some ...
by chicagoan23
Mon Sep 18, 2017 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Financial Review ($800K Nest Egg)
Replies: 7
Views: 2668

Re: Financial Review ($800K Nest Egg)

Paying 40% of every extra dollar earned in taxes is a concern. I'd try to max out an HSA ($6,750) and then not use it to pay medical expenses. Explore other tax-deferral opportunities as well, besides the $18k + $18k. What type of employment do you have? Are there opportunities for enhancements to t...
by chicagoan23
Mon Sep 18, 2017 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Worth buying an excessive priced house?
Replies: 43
Views: 4216

Re: Worth buying an excessive house?

My spouse and I grew up in homes where money was a concern. We're in terrific financial and employment shape now and live in a low-medium cost of living area. We have about 15x annual expensives saved after 10 years of saving, plan to work at least part time for a while, and love our current nice, ...
by chicagoan23
Wed Sep 13, 2017 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Milestone Reached - "Quarter Millionaire!"
Replies: 41
Views: 5150

Re: Milestone Reached - "Quarter Millionaire!"

I officially crossed over 250k in investments this week (My net worth is actually closer to 370 or more, but that number depends on the value of my home)! I know it's not much compared to many on this forum, but it's a big step for me considering how much debt I've paid off over the last 1-2 years ...
by chicagoan23
Thu Sep 07, 2017 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: Protecting moms assets from nursing home expenses
Replies: 96
Views: 9022

Re: Protecting moms assets from nursing home expenses

How does OP's mother shifting her assets to family instead of using it to pay for nursing home coverage benefit her ? Either way the money is gone, she would qualify for a Medicaid-paid nursing home either because she spent all her money on nursing home care, or because she gave her assets away to ...
by chicagoan23
Thu Sep 07, 2017 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Protecting moms assets from nursing home expenses
Replies: 96
Views: 9022

Re: Protecting moms assets from nursing home expenses

Threads like this tend to concentrate on the ethical issues of transitioning to Medicaid, while retaining a legacy once assets are exhausted. In our case, no one in my wife's family cares about a legacy, other than my MIL. She is under the impression that her savings still exist, which we don't cor...
by chicagoan23
Wed Sep 06, 2017 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: Bought crypto currency
Replies: 67
Views: 4158

Re: Bought crypto currency

entire governments are officially preparing to regulate it this year and next, whats gambling about it? its going to be your future currency Why would the US government move to anything other than dollars, which it can control? And if the government keeps dollars as the currency, why would I need t...
by chicagoan23
Wed Sep 06, 2017 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: When calculating net worth, how do you value your house?
Replies: 167
Views: 9476

Re: When calculating net worth, how do you value your house?

For those who are excluding the value of an owned residence from your "net worth" calculation, your reasons for doing so make complete sense. If you want to focus on liquid assets in preparing for retirement, I get it. What you are doing may be the most prudent way to measure financial health. Of co...
by chicagoan23
Wed Sep 06, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Bought crypto currency
Replies: 67
Views: 4158

Re: Bought crypto currency

entire governments are officially preparing to regulate it this year and next, whats gambling about it? its going to be your future currency Why would the US government move to anything other than dollars, which it can control? And if the government keeps dollars as the currency, why would I need t...
by chicagoan23
Wed Sep 06, 2017 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: When calculating net worth, how do you value your house?
Replies: 167
Views: 9476

Re: When calculating net worth, how do you value your house?

Sometimes this forum makes me laugh. It's almost as if some posters are trying to avoid a wealth tax with their permutations on what net worth is..... * I calculate my net worth by looking at assets minus liabilities, excluding all property (real or personal) but including all debt related to that p...
by chicagoan23
Fri Sep 01, 2017 10:41 am
Forum: Investing - Help with Personal Investments
Topic: order of retirement account savings for us?
Replies: 4
Views: 618

Re: order of retirement account savings for us?

A. Pay high income taxes today and immediately lose 35%-40% of every extra dollar you would save, but maybe not have to pay that same rate in the future when you are retired; or B. Avoid current high tax rate and get decades of tax-deferred compounding on the ~$50k per year you are deferring (some s...
by chicagoan23
Thu Aug 31, 2017 10:40 am
Forum: Personal Consumer Issues
Topic: Hurricane Harvey relief?
Replies: 42
Views: 3444

Re: Hurricane Harvey relief?

I gave to JJ Watt's fundraiser. It will be providing immediate supplies to anyone who needs it, with no overhead expenses.

The initial goal was $200k to raise; it just hit $10 million. In five days. Unbelievable.
by chicagoan23
Wed Aug 30, 2017 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: What should the savings be for an average professional
Replies: 168
Views: 17750

Re: What should the savings be for an average professional

To be reasonably secure in life later on and provide for the kids, most have to slog through Work life right after school. They have to scrimp and save and cannot spend money on bucket list stuff early on. If somebody does that and has trouble later on they would be chastised as being irresponsible...
by chicagoan23
Tue Aug 22, 2017 10:44 am
Forum: Investing - Theory, News & General
Topic: Amazed by Vanguard Wellington's Performance
Replies: 62
Views: 9886

Re: Amazed by Vanguard Wellington's Performance

Just for fun, I occasionally sometimes go to www.portfoliovisualizer.com and run comparisons. About a week or two ago, I wanted to see if I could hand pick ANY Vanguard large-cap Value fund (Vanguard has 6), and pair that up with ANY high or medium quality, intermediate-term vanguard bond fund and ...
by chicagoan23
Mon Jul 31, 2017 11:07 am
Forum: Investing - Theory, News & General
Topic: If You're Uncomfortable With Your AA, Maybe You're In The Right Place
Replies: 26
Views: 2922

Re: If You're Uncomfortable With Your AA, Maybe You're In The Right Place

After some rebalancing off the most recent highs I've recently broken under 70% equities for the first time in my 20+ years of investing, with domestic equities now at about 57% of my total portfolio (lowest ever for me) and international at about 11%. Given my current portfolio size and anticipated...