Search found 154 matches

by chicagoan23
Tue May 23, 2017 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Very Close to FI / RE - Allocation Suggestions?
Replies: 18
Views: 1283

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: 18
Views: 1283

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: 19
Views: 2662

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...
by chicagoan23
Fri May 12, 2017 11:15 am
Forum: Personal Consumer Issues
Topic: Price for brakes and rotors?
Replies: 73
Views: 2928

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: 9884

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: 3980

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: 6402

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: 2609

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: 11114

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: 10162

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: 10162

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: 10162

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. :shock: They do use 5% inflation for college costs, so maybe that will slow down a little, but yeah...
by chicagoan23
Thu Mar 30, 2017 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 10162

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: 10162

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: 10162

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: 4890

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: 2918

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: 1286

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: 6570

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: 2660

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: 2498

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: 40
Views: 2165

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: 2498

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: 6886

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: 791

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: 6886

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: 2833

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: 1061

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: 2951

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...
by chicagoan23
Thu Mar 09, 2017 11:02 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: 1061

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

You are doing fine. I would suggest that you max out the traditional 401(k) at $18k. Don't miss out on the tax-favored space available to you now. You are spending 25 cents of every dollar you make (over $38k) on federal income taxes, and that doesn't take into account state income taxes, if any. I ...
by chicagoan23
Thu Mar 09, 2017 10:01 pm
Forum: Investing - Help with Personal Investments
Topic: Options for my cash
Replies: 38
Views: 2833

Re: Options for my cash

Its 30 year mortgage. Net worth is $200K cash + $170K in home equity + $220K in retirement funds. We also have another 100K in 529 plans which I am not including in my net worth. Guilty of not starting on savings early. Started just a few years go. Hoping still enough time to catch up. Don't know a...
by chicagoan23
Thu Mar 09, 2017 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Options for my cash
Replies: 38
Views: 2833

Re: Options for my cash

You have borrowed a large amount of money for a presumably long term at a low fixed rate. On top of that, you have little in invested assets right now (how much of the $600k in net worth is in home equity? retirement accounts?), given your income level. While you are in a great financial position lo...
by chicagoan23
Thu Mar 09, 2017 11:31 am
Forum: Investing - Theory, News & General
Topic: Sitting on cash....Waiting for a crash
Replies: 129
Views: 17913

Re: Sitting on cash....Waiting for a crash

i was 100% equities then for my 401k I started to do 100% Total Bond. Age 35. Good time to start into bonds as I expect rates to rise and especially if you don't have any in your portfolio. I plan is after a downturn I will go long equities and possibly tilt bond to large cap. Yeah, I market time. ...
by chicagoan23
Tue Mar 07, 2017 5:56 pm
Forum: Investing - Help with Personal Investments
Topic: How am I doing?
Replies: 29
Views: 3357

Re: How am I doing?

The first thing to do is see if there are any other options for you to reduce your current tax expense. Can you contribute to an HSA? If so, max it out and then spend out-of-pocket for any medical expenses (not much, but it's something). Yes I am maxing out my HSA. The level of contributions to you...
by chicagoan23
Tue Mar 07, 2017 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: How am I doing?
Replies: 29
Views: 3357

Re: How am I doing?

The first thing to do is see if there are any other options for you to reduce your current tax expense. Can you contribute to an HSA? If so, max it out and then spend out-of-pocket for any medical expenses (not much, but it's something). The level of contributions to your 401(k) is great but can you...
by chicagoan23
Mon Mar 06, 2017 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Net Worth Calculation (Question/Opinion)
Replies: 26
Views: 1742

Re: Net Worth Calculation (Question/Opinion)

Net worth , as noted earlier in the thread, equals assets minus liabilities, and can be negative. There are other terms for other measures. If one is going to project a future liability such as a selling commission into net worth, shouldn't one project future assets, as well? What about other futur...
by chicagoan23
Mon Mar 06, 2017 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Can We Retire Now? Should I Max AT 401K in the Last Year
Replies: 24
Views: 3122

Re: Can We Retire Now? Should I Max AT 401K in the Last Year

If you have young children and a mortgage (i.e., guaranteed expenses) and plan on needing assets to support 50+ years of spending at $70k per year in 2017 dollars, I would say you are FI when you have amassed about $2 million in investments (maybe a little more than that). That is a 3.5% initial wit...
by chicagoan23
Fri Mar 03, 2017 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: Possibly Financially Independent and Feeling Miserable
Replies: 153
Views: 16555

Re: Possibly Financially Independent and Feeling Miserable

Okay...but how do you know that you "will be just fine anyway" if you find out later that you don't have "enough"? How can you be fine without enough? This statement actually shocked me. I was thinking about it all day yesterday. You are in real distress due to financial anxiety...
by chicagoan23
Thu Mar 02, 2017 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: Why not utilize leveraged ETF's?
Replies: 24
Views: 1190

Re: Why not utilize leveraged ETF's?

They are effectively priced daily, and are a good way to make a bet on the direction of the markets for one day. That's a pretty short investment horizon..... Basically, if the market goes up 10% over the course of a year, a 2x leveraged ETF will not be up 20% for the year. The actual return will be...
by chicagoan23
Wed Mar 01, 2017 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Possibly Financially Independent and Feeling Miserable
Replies: 153
Views: 16555

Re: Possibly Financially Independent and Feeling Miserable

We currently get health insurance through my employer, and I haven't done any serious research into independently-paid-for health insurance costs. That said, our current spending includes housing costs, and if I were to retire (or semi-retire), we would use a portion of our cash to buy a house (pre...
by chicagoan23
Wed Mar 01, 2017 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Possibly Financially Independent and Feeling Miserable
Replies: 153
Views: 16555

Re: Possibly Financially Independent and Feeling Miserable

Thank you for the honest post. Your anxiety about finances--despite being objectively wealthy--is not unusual. I have had similar feelings (while I am roughly the same age as you, I am not FI) and have tried to calculate my way to emotional comfort. I have found that the facts of the numbers help al...
by chicagoan23
Tue Feb 28, 2017 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Second home or not ready
Replies: 56
Views: 4552

Re: Second home or not ready

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.
by chicagoan23
Mon Feb 27, 2017 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: Should we pay off our mortgage?
Replies: 44
Views: 2329

Re: Should we pay off our mortgage?

Has the OP stated they itemize their deductions? As discussed previously in many threads, the mortgage interest deduction is only of value above the standard deduction IF they itemize. Yes. We itemize our taxes in NYC/NYS/Federal. Personally, I would pay it off. We did pay our mortgage off in 2007....
by chicagoan23
Mon Feb 27, 2017 12:17 pm
Forum: Investing - Help with Personal Investments
Topic: Should we pay off our mortgage?
Replies: 44
Views: 2329

Re: Should we pay off our mortgage?

If you can get a higher risk free return from paying off the mortgage as compared to what the bond market is offering, then yes, you should jump at it. Also, paying off the mortgage is tax free. To your point, then you also need to mention that the mortgage interest is deductible (valuable for the ...
by chicagoan23
Mon Feb 27, 2017 11:20 am
Forum: Investing - Help with Personal Investments
Topic: Should we pay off our mortgage?
Replies: 44
Views: 2329

Re: Should we pay off our mortgage?

Paying off your home at this point will be like buying a bond paying a guaranteed 2.875% interest and maturing in 11 years. There are many here who would jump on that like a pack of dogs on a three-legged cat. The 20-year Treasury is yielding close to 2.8%, and the 10-year is at 2.35% (it was at 2....
by chicagoan23
Sat Feb 25, 2017 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Cash Balance Defined Benefit Plan
Replies: 12
Views: 1068

Re: Cash Balance Defined Benefit Plan

I am a non-equity partner in an AmLaw 150 firm and am on the firm's retirement plans committee. We have a 401(k) and profit sharing for everyone and a cash balance plan just for the equity partners. A few points that I've learned: 1. 75% of the partners like the cash balance plan, 20% don't really c...
by chicagoan23
Fri Feb 24, 2017 4:32 pm
Forum: Personal Consumer Issues
Topic: critique Italian itinerary
Replies: 32
Views: 2131

Re: critique Italian itinerary

Fly in to Milan and rent a car to go to lake area for 2 nights (Varenna ?), then 2 nights in the Italian Alps (Bolzano ?), then return the car rental in Venice where we would spend 2 nights. Then take the train to Cinque Terra for 2 nights (probably stay in Vernazza). Then take the last possible tr...
by chicagoan23
Thu Feb 23, 2017 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Getting Serious About Retirement Savings/Investments
Replies: 15
Views: 1292

Re: Getting Serious About Retirement Savings/Investments

I'm definitely green on the tax front. We bought our first home in June 2016 and were married in August 2016. So, I'm not certain how that will impact our tax situation. My wife and I have total gross income similar to yours of about $260k, but were able to drive down our "taxable income"...
by chicagoan23
Tue Feb 21, 2017 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: What are the big things to get right?
Replies: 91
Views: 12409

Re: What are the big things to get right?

Are there any other big principles that people find valuable? Conversely, are there "small principles" that are actually penny-wise and pound foolish? One fundamental principle is to avoid paying current income taxes as much as is legally permitted, mainly through the use of qualified pla...
by chicagoan23
Thu Feb 16, 2017 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan Payoff vs. ANY Investing
Replies: 29
Views: 1450

Re: Student Loan Payoff vs. ANY Investing

So ... about that state tax, and total for the matching payments? jimb In your calculations, can you please include the fact that they would be able to claim the full deduction of student loan interest as an above-the-line deduction, which it seems like they are missing out on now due to their inco...

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