Search found 175 matches

by chicagoan23
Tue Aug 22, 2017 10:44 am
Forum: Investing - Theory, News & General
Topic: Amazed by Vanguard Wellington's Performance
Replies: 25
Views: 2806

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: 2647

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...
by chicagoan23
Tue Jul 25, 2017 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Low risk return over 2.8%? Suggestions?
Replies: 18
Views: 1839

Re: Low risk return over 2.8%? Suggestions?

I have been paying off my $800,000 business debt with extra payments (20k-40k/month) at 4.15% which is 2.8% effective tax rate. I will be owing a lot in taxes ($275,000 high estimate) on April 18th and I would like to set up a taxable investment allocation that can provide me with 2.8% or higher re...
by chicagoan23
Fri Jul 21, 2017 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Turned 44...performance against forecast
Replies: 23
Views: 2492

Re: Turned 44...performance against forecast

As I mentioned, I actually lowered my expected RoR from 8% to 6% when I took a look at said spreadsheet before sharing the results here. I think 6% is reasonably conservative for planning purposes with our asset mix. Certainly. As long as your asset mix is 100% stocks. I think the OP was referencin...
by chicagoan23
Fri Jul 21, 2017 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Turned 44...performance against forecast
Replies: 23
Views: 2492

Re: Turned 44...performance against forecast

Hi - would you be willing to share your tracking/projection spreadsheet? I track pretty closely but am somewhat at a loss for creating a projection one..... I'd be happy to post if I knew how to post an Excel spreadsheet. I start with a simple spreadsheet with columns for (A) Year (2017, 2018, etc....
by chicagoan23
Fri Jul 21, 2017 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Turned 44...performance against forecast
Replies: 23
Views: 2492

Re: Turned 44...performance against forecast

Hmm...so you saved and got a market bump that doubled your net in four years, just like us? Maybe not a hard as you think, eh? Good point, I guess "easy" is a relative term. Start with a good education, attention to well-paying careers, hard work, demonstrated success and resulting income...
by chicagoan23
Fri Jul 21, 2017 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: Turned 44...performance against forecast
Replies: 23
Views: 2492

Re: Turned 44...performance against forecast

Getting to 1 million at 39 took continued discipline. Getting to 2 million at 43 was easy. $1 million and a 100% increase in four years is impressive, and not what I would call "easy" by any means....Congrats! Have you noticed a reduction in your expenses over this time? Like most of your...
by chicagoan23
Thu Jul 20, 2017 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Should I stay with my advisor?
Replies: 6
Views: 639

Re: Should I stay with my advisor?

My Fargo Advisor has averaged me 8% the last 5 years. Debating on transfering funds to wells trade then selling all funds and investing in vanguard. I am new to the site it is just great, Thanks Before you jump into the DIY world of investing, make sure you are knowledgeable about what you held for...
by chicagoan23
Tue Jul 18, 2017 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Investment advice for $4 million - can I do all stocks?
Replies: 72
Views: 5916

Re: Investment advice for $4 million - can I do all stocks?

I am one of those folks who you mention who advocate that if it looks like you have enough for your lifetime on your trajectory then your time horizon is basically your heirs and/ or charity time horizon. If you are wrong and need the money sooner no big deal it isn't like it locked up in some unre...
by chicagoan23
Tue Jul 18, 2017 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Investment advice for $4 million - can I do all stocks?
Replies: 72
Views: 5916

Re: Investment advice for $4 million - can I do all stocks?

You: 1. are at $6 million (give or take) now; 2. are continuing to work and are likely to get that number up to $10 million in the next 8-10 years or so, when you will retire; 3. should expect 30 years of living after that; 4. can easily cover your retirement living expenses with the $2 million that...
by chicagoan23
Mon Jul 17, 2017 11:10 am
Forum: Personal Finance (Not Investing)
Topic: Paying off debt vs. max savings
Replies: 21
Views: 2262

Re: Paying off debt vs. max savings

Both me and my DW now have fairly stable jobs with a pretty high rate of income (combined +/- $150k/yr, with pay raises of abt 5%/yr), after many years of low-paying jobs, graduate school, time-off for kids, etc. At this point we can max out our 401(k)/457(b) plans with no problem. We also have som...
by chicagoan23
Wed Jul 12, 2017 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Please review my tax saving strategy
Replies: 17
Views: 1453

Re: Please review my tax saving strategy

Have you maximized all available financing? Why trigger LTCG and/or miss out on tax deferred savings just to pay cash for educational expenses in full? You may be able to borrow against your 401k or even your taxable. Also, you should be able to take penalty-free distributions for paying educational...
by chicagoan23
Tue Jul 11, 2017 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: 100k milestone
Replies: 49
Views: 5737

Re: 100k milestone

We hit 100K in index fund investments at age 33 and 30. 3 years later, index fund investments are worth 300K at ages 36 and 33. We just hit the 2 comma club (1 million) net worth this year thanks to 2 real estate properties. What really helped was finding a frugal spouse who got on board with savin...
by chicagoan23
Mon Jul 10, 2017 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: 100k milestone
Replies: 49
Views: 5737

Re: 100k milestone

For those saying you hit 100k and then 10 years later you are at 500-900k? I am only investing an additional $500-600 a month. I am only working with about 30k income before taxes. I can live off of it and am content. How are you able to build your wealth that fast? Where do you have it invested? I...
by chicagoan23
Mon Jul 10, 2017 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: 100k milestone
Replies: 49
Views: 5737

Re: 100k milestone

I wont be at 100k probably until like 29-30 years old I am far off. I just love hearing the positive and motivating stories. If you want a positive and motivating story, look at yourself. According to CNN/Money median net worth for someone between 25 and 34 is $8,525; I have seen other sites that s...
by chicagoan23
Thu Jul 06, 2017 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: 45yo 18M portfolio, best way to grow?
Replies: 47
Views: 6594

Re: 45yo 18M portfolio, best way to grow?

Some pearls I picked up -- 1. Estate planning. Heard quite a bit about it. But is it too early at 45? The law keeps changing too. You already have more money than you will ever realistically spend. A meager 2% interest/dividends/rental income on your current assets will produce enough to keep up yo...
by chicagoan23
Wed Jul 05, 2017 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: 45yo 18M portfolio, best way to grow?
Replies: 47
Views: 6594

Re: 45yo 18M portfolio, best way to grow?

If growth is your goal I would sell all the individual stocks and large-cap index funds and move the money into broadly diversified small caps. You can afford to take on a huge amount of risk considering you presumably have two high incomes and are unlikely to lose two high-paying jobs. You also do ...
by chicagoan23
Tue Jun 20, 2017 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy an $800k house?
Replies: 89
Views: 6766

Re: Should I buy an $800k house?

Thanks everyone for the replies. One question - If not 800k, what should the upper limit be in my case? Considering the other options I've looked (slightly older/bit more farther), I don't think it will be less than $720k considering the Seattle market. You can afford $800k now. I would recommend, ...
by chicagoan23
Tue Jun 20, 2017 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: Should I buy an $800k house?
Replies: 89
Views: 6766

Re: Should I buy an $800k house?

1. Buy a house that you can live in for the next 20 years if you have to. In 2005 I was planning on buying a townhouse, then flipping it in a few years to buy a single family. Easy money (at the time), right? My dad suggested to buy a house that I could live in for 20 years, and I'm glad I did. I'm ...
by chicagoan23
Tue Jun 20, 2017 10:24 am
Forum: Personal Finance (Not Investing)
Topic: what to do with cash
Replies: 7
Views: 708

Re: what to do with cash

Hello, What do you guys do with your cash that you don't want tied up in a long term investment, for example your emergency fund or house down payment that you might need immediately or at least with a short notice of 6months and can withdraw with no penalty? Just sitting in a savings account seems...
by chicagoan23
Thu May 25, 2017 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Liquidity question: Max retirement savings vs. build EFund?
Replies: 8
Views: 799

Re: Liquidity question: Max retirement savings vs. build EFund?

1) Should I try to max both 401ks right now, leaving us maybe $400 - $900 per month in net cashflow to build the Efund? (OPTION WITH MOST TAX SAVING, BUT LOW CASHFLOW) 2) Should I pick a % to divert my 401k short of maxing out (e.g., $9K annual as current) and then split the remaining cashflow betw...
by chicagoan23
Tue May 23, 2017 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Very Close to FI / RE - Allocation Suggestions?
Replies: 23
Views: 2151

Re: Very Close to FI / RE - Allocation Suggestions?

miamivice wrote:The purpose of holding a $1 million portfolio is to pay for nursing home care should that be needed.


To me this seems like the wrong strategy. Medicaid also pays for nursing home care, and the OP could always pay for any care with the assets that are transferred now.
by chicagoan23
Mon May 22, 2017 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Very Close to FI / RE - Allocation Suggestions?
Replies: 23
Views: 2151

Re: Very Close to FI / RE - Allocation Suggestions?

To answer some of the questions: - Future Inheritance: I'm sole living heir and only beneficiary of my parent, who is nearing 90 yrs old. I'm trustee of the trust. Condo, all possessions, all financial accounts (everything) pass to me upon the death of my parent. Parent's investments are worth just...
by chicagoan23
Mon May 22, 2017 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: Quickest Path to Financial Independence
Replies: 27
Views: 4647

Re: Quickest Path to Financial Independence

Thank you guys. I will start doing some research on VSMGX. Any other Vanguard set-and-forget type of funds I should look at? I guess the initial capital consensus from what I was able to gather from the replies given me is around $3M. $3M in VSMGX and I can unplug? ...promise? As a side note, I'll ...
by chicagoan23
Fri May 12, 2017 11:15 am
Forum: Personal Consumer Issues
Topic: Price for brakes and rotors?
Replies: 73
Views: 3932

Re: Price for brakes and rotors?

Concur on the $350 quote; I paid $370 for rear pads/rotors in November, then had fronts done last month for $380. Well worth it for me not to have to DIY. Used Midas.
by chicagoan23
Wed May 10, 2017 6:07 pm
Forum: Investing - Theory, News & General
Topic: Did you buy SNAP?
Replies: 116
Views: 10849

Re: Did you buy SNAP?

Not a bad report today, only a $2.2 billion loss on $150 million in revenue.
by chicagoan23
Wed Apr 26, 2017 11:10 am
Forum: Investing - Help with Personal Investments
Topic: $1m capital gains, worth it to simplify and index?
Replies: 46
Views: 4453

Re: $1m capital gains, worth it to simplify and index?

Not directly related to your original post but given your ages I think you really need to focus on asset protection/estate planning, even more so than managing your portfolio. At your rate you are trending towards mid-eight figures at your death. Take the money you will save on your investment advis...
by chicagoan23
Tue Apr 25, 2017 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Investing $1M
Replies: 57
Views: 6951

Re: Investing $1M

Stocks are historically high P/E (Shiller 10 is almost 30 which is double the average and the only times it's been higher has been before The Great Depression and the dot-com bust) .... plus unpredictability of geopolitics and possibility of war. When the Shiller CAPE falls to an "average"...
by chicagoan23
Mon Apr 24, 2017 10:42 am
Forum: Investing - Help with Personal Investments
Topic: Best Place to Park Over $1m in Cash
Replies: 28
Views: 2896

Re: Best Place to Park Over $1m in Cash

I'm looking for something with same day liquidity with the aim to maintain a $1 NAV while offering a decent....yield. I doubt you would need same-day liquidity for $5 million, so I would just keep $250k in a savings account somewhere and then invest the rest in a short term bond ETF that can be tra...
by chicagoan23
Sat Apr 01, 2017 4:29 am
Forum: Investing - Help with Personal Investments
Topic: Currently have $700,000 at 26 years old get $100,000 a year
Replies: 80
Views: 12044

Re: Currently have $700,000 at 26 years old get $100,000 a year

I'm surprised that everyone assumes $100k per year is more than enough long-term. If the OP ever marries and has kids, that is enough to support a middle class lifestyle. He would still have to buy a house, etc. which could wipe out his non-trust fund nest egg. $3.7 million is not $50 million, espec...
by chicagoan23
Fri Mar 31, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 11460

Re: Not opting for 529... anyone else?

How would it hurt? You should be able to get financial aid if you have a bunch of kids in school at the same time, I think. From my understanding, the 529 will come right off the top for the total cost. When colleges look at your total ability to pay, every cent of the 529 is accounted for, and the...
by chicagoan23
Thu Mar 30, 2017 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 11460

Re: Not opting for 529... anyone else?

chicagoan23, Unless the fresh graduate's starting salary and American median income keep up with that inflation rate, why would you pay that kind of money for your children's college? It does not make any financial sense. You could give them the money and they could partially retire with a low-inco...
by chicagoan23
Thu Mar 30, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 11460

Re: Not opting for 529... anyone else?

$370k for a 5 year old is $92,500 per year. Wow, that seems high even for Princeton/Dartmouth/Columbia U. Maybe it includes an annual Lexus stipend for proper transport between home and said college. They do use 5% inflation for college costs, so maybe that will slow down a little, but yeah, it's c...
by chicagoan23
Thu Mar 30, 2017 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 11460

Re: Not opting for 529... anyone else?

chicagoan23, Where are your kids going to college? I'm not sure you could spend $1.5 million (on 4 kids) if they all went 5+ years to the most expensive college. In state, public college should be under $20k in most states (OK, maybe not in most states, but some states) In ND and MN it is ~$16k/yea...
by chicagoan23
Thu Mar 30, 2017 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 11460

Re: Not opting for 529... anyone else?

We "super funded" 529s and ESA for our children. Currently have $110K in 529s and $18K in ESAs... -Currently have 3 children, ages 4,2,5 months, and will most likely have at least 1 more. Started the 529s in 2012 when pregnant with baby #1. So I'm looking at 18-22 years of tax free growth...
by chicagoan23
Wed Mar 29, 2017 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 11460

Re: Not opting for 529... anyone else?

I am not funding a 529 for any of my four young children, for several reasons: First, any money in the 529 is immediately gone once they hit college. I can think of no other savings vehicle that becomes such a juicy target when the time comes to redeem it. There is no question that every dollar (up ...
by chicagoan23
Tue Mar 28, 2017 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Daugther's Credit Card Windfall
Replies: 40
Views: 5286

Re: Daugther's Credit Card Windfall

I assume that Discover will catch this eventually, when they do will their be any sort of repercussions (like penalties)? If she knowingly keeps this money she should report it as income; there could be IRS penalties for not reporting it. You also don't know the source of the error; a hacker friend...
by chicagoan23
Tue Mar 28, 2017 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Parents offering to invest $300,000 in my name as graduation gift; initial thought is to invest in a house?
Replies: 33
Views: 3212

Re: Parents offering to invest $300,000 in my name as graduation gift; initial thought is to invest in a house?

I will be graduating in the Spring of next year (2018), and my parents have told me that they are willing to invest $300,000 USD in my name upon graduation as a gift. Their initial thought is to invest that money into a house in the United States.....Their plan was to buy a house in the United Stat...
by chicagoan23
Mon Mar 27, 2017 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: Replace total bond idx with high yield?
Replies: 18
Views: 1437

Re: Replace total bond idx with high yield?

Bogleheads, in a quest for some better returns I wanted thoughts on taking about a third of my total bond index money and moving it to corporate high yield in an effort to get better returns. Has anyone done this? Any thoughts are welcome! I have about 30% of my fixed income allocation in several h...
by chicagoan23
Mon Mar 27, 2017 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: Weathering sell-off days like today
Replies: 107
Views: 7306

Re: Weathering sell-off days like today

For those of you that invest, how do you keep a cool head on a day such as today to not panic and ride through this sell-off? Maybe keep a diary, and see if your thoughts throughout the day make any logical sense if you go back and read them. Something like this: 8:00 AM: "Premarket down big, ...
by chicagoan23
Thu Mar 23, 2017 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: Help with my father's windfall
Replies: 25
Views: 2870

Re: Help with my father's windfall

Sorry for the loss of your mother. How long is your father planning to work? Until age 65? If so, I would follow your plan to pay off all debt with the life insurance proceeds and then have him live off of his salary. Leave the remainder and the beneficiary 401(k) alone for now. Make sure he is able...
by chicagoan23
Thu Mar 23, 2017 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: 27, no investments, please help
Replies: 19
Views: 2671

Re: 27, no investments, please help

Thanks for the great advice. I opened my Vanguard account and funded it with a big chunk of the cash. My backdoor Roth IRA conversion finally took effect and the $11k are ready to be invested. I still need to look into bonds, what they're expected to do with interest rates going higher, and if i sh...
by chicagoan23
Tue Mar 21, 2017 3:21 pm
Forum: Personal Consumer Issues
Topic: Debating a weekend in Chicago (south side)
Replies: 54
Views: 4282

Re: Debating a weekend in Chicago (south side)

There are many great things to do on the South Side but pretty much all of them are designed for locals. Tourism on the South Side isn't really a thing. For example, my experience is that most patrons at the bars on Western Ave in Beverly (mentioned earlier) will look at you funny if you didn't go t...
by chicagoan23
Mon Mar 20, 2017 6:59 pm
Forum: Investing - Help with Personal Investments
Topic: 27, no investments, please help
Replies: 19
Views: 2671

Re: 27, no investments, please help

Where do you live? Do you rent? If so, maybe look into a down payment for a house. I bought my first condo at age 26 and you definitely have the cash to do it too. If you are fearful of the stock market, you can always just put your pre tax retirement accounts into a target retirement date fund and ...
by chicagoan23
Fri Mar 10, 2017 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: 28yo, New Millionaire, Advice on Wealth Management
Replies: 64
Views: 7511

Re: 28yo, New Millionaire, Advice on Wealth Management

Wow what an awesome community! I wasn't expecting anyone to respond. Nothing draws BH responses like young millionaires wondering what to do with a giant pot of money..... Thank you for all the sound advice. I have now read the windfall chapter and plan on reading all the books recommended. I feel ...
by chicagoan23
Fri Mar 10, 2017 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: Payoff Student Loans Early? Requesting help.
Replies: 14
Views: 924

Re: Payoff Student Loans Early? Requesting help.

From a purely math standpoint, I would say pay it off now, using your emergency funds. But I also think you need to be careful with this. I am assuming you are in a fairly stable government job. But, you have a non-working spouse and (at least) one child at home, so if you were to pay off this debt ...
by chicagoan23
Fri Mar 10, 2017 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: 28yo, New Millionaire, Advice on Wealth Management
Replies: 64
Views: 7511

Re: 28yo, New Millionaire, Advice on Wealth Management

I am not comfortable investing on my own and I think I need a wealth manager. There is nothing wrong with this way of thinking. $4-6 million (I'll just call it $5 million) is a large amount of money and it may help you to have an advisor to start. You don't have to keep him/her forever. The general...
by chicagoan23
Fri Mar 10, 2017 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Options for my cash
Replies: 38
Views: 3076

Re: Options for my cash

As for the tax deduction, I don't see understand why people would hold onto to a mortgage solely for this reason unless they literally have no other tax deduction available to utilize. Contributions to eligible charities are an excellent way for rich people to reduce their tax liability. If I was i...
by chicagoan23
Thu Mar 09, 2017 11:41 pm
Forum: Investing - Help with Personal Investments
Topic: 28 years old, 130k in savings, but feel like I am way behind in retirement savings. Advice?
Replies: 5
Views: 1161

Re: 28 years old, 130k in savings, but feel like I am way behind in retirement savings. Advice?

If I do switch to a Traditional 401k. What happens to my current Roth 401k? Do my contributions all end up going to the pre tax portion of the Roth 401k account, or does my employer open up a completely new Traditional 401k for me while the Roth 401k sits idle? It's all in one plan. You will have a...
by chicagoan23
Thu Mar 09, 2017 11:37 pm
Forum: Investing - Help with Personal Investments
Topic: Think I'm ready, but not overly confident
Replies: 28
Views: 3196

Re: Think I'm ready, but not overly confident

Your SS will be adjusted for inflation once you start taking it, and you will get a pension on top of that of $66k per year. After you sell the house you will have to generate $35k per year on a base of approximately $4.5 million in order to spend $100k per year (before that SS kicks in). That's a w...