Search found 137 matches

by chicagoan23
Mon Mar 27, 2017 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: Replace total bond idx with high yield?
Replies: 15
Views: 664

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: 101
Views: 4371

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: 2480

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: 18
Views: 2155

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: 2017

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: 18
Views: 2155

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: 6516

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: 679

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: 6516

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: 2673

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: 1001

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: 2777

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: 1001

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: 2673

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: 2673

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: 17133

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: 3186

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: 3186

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: 1618

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: 3012

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: 15497

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: 1083

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: 15497

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: 15497

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: 4291

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: 2127

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: 2127

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: 2127

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: 987

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: 1990

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: 1215

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: 90
Views: 11078

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: 1351

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...
by chicagoan23
Thu Feb 16, 2017 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Why own individual stocks?
Replies: 88
Views: 6689

Re: Why own individual stocks?

I'm looking at individual stocks that were purchased through the years, some date back to 1981. I'm stunned at the lack of growth and what could have been accomplished with an index fund. So, what are the benefits to owning stocks? I know this is Bogleheads.org and this is against BH philosophy, bu...
by chicagoan23
Thu Feb 16, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 495
Views: 118911

Re: Share your net worth progression

I have been curious about this topic as well. Very interesting posts in here, thank you to this community! May 2000: Approx. ($68,000) -- law school and undergrad loans. Was such a shocking number to me at the time. June 2001: Bought first condo, positive "net worth" around $30,000 but 10...
by chicagoan23
Thu Feb 16, 2017 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Student Loan Payoff vs. ANY Investing
Replies: 29
Views: 1351

Re: Student Loan Payoff vs. ANY Investing

You are foregoing the match, you are paying 25% marginal income tax on the income not being deferred to the 401(k), and you are phased out of most of the deduction for paying student loan interest. I would immediately start deferring up to the match (at least) and then look to refinance the remainin...
by chicagoan23
Tue Feb 14, 2017 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Bogleheads not the norm?
Replies: 116
Views: 10470

Re: Bogleheads not the norm?

By living beneath our means, saving, paying down debt, good luck (thank you to the markets!) and avoiding costly financial mistakes, and generally being good Bogleheads, we've been able to reach the point where we feel financially secure in our lives. You can't put a price on that feeling that come...
by chicagoan23
Tue Feb 14, 2017 12:46 pm
Forum: Investing - Theory, News & General
Topic: What are the best Vanguard ETF's for an aggressive Roth IRA?
Replies: 9
Views: 1199

Re: What are the best Vanguard ETF's for an aggressive Roth IRA?

If you are allocating your holdings among different types accounts for tax efficiency purposes, I try to put my high-income holdings in the Roth IRA (my Roth currently has VGSLX (Vanguard REIT Index Fund), one non-Vanguard high yield bond fund, along with some Emerging Market funds) as the income/ga...
by chicagoan23
Mon Feb 13, 2017 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 36
Views: 2738

Re: Talking sense

Why not just stay invested, and if you need cash to throw into the market when there is "blood in the streets" you can borrow it? It sounds like you want to stay in the stock market but are making an educated guess of a decline and do not want to miss the opportunity that decline would pre...
by chicagoan23
Fri Feb 10, 2017 2:17 pm
Forum: Personal Consumer Issues
Topic: Saved too much? What do you splurge on?
Replies: 90
Views: 8893

Re: Saved too much? What do you splurge on?

But my concern with depleting huge amounts of our savings would be an unexpected medical crisis... we don't have LTCI and would self-fund any stay in rehab-long term care, etc. That could eat up a big chunk of your savings... just something to consider. This is a good point but the OP would have a ...
by chicagoan23
Fri Feb 10, 2017 2:07 pm
Forum: Personal Consumer Issues
Topic: Saved too much? What do you splurge on?
Replies: 90
Views: 8893

Re: Saved too much? What do you splurge on?

Or if you have the money and time, buy some land and create a city park. One of the ladies at my church owned a ranch and sold most of it. But she converted a 40 acre parcel to a park for kids. See below. She recruited the train people who then installed big trains and little trains and all kinds o...
by chicagoan23
Fri Feb 10, 2017 1:52 pm
Forum: Personal Consumer Issues
Topic: Saved too much? What do you splurge on?
Replies: 90
Views: 8893

Re: Saved too much? What do you splurge on?

I know you didn't ask for advice but I can't help myself.....If I reach my 70s and all of my spending needs and wants were easily met by a secure pension/passive income, I would try to get as much money out of my name as possible. Meaning all of it over the next five to ten years, except for an amou...
by chicagoan23
Fri Feb 10, 2017 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Advice for a soon-to-be MLB draftee
Replies: 68
Views: 9751

Re: Advice for a soon-to-be MLB draftee

Here's the thing. If he's successful, this money will be a drop in the bucket. If he fails, at least some of this money will be needed fairly soon. It's not that big a deal for the money to sit there for the next 3-4 years. This comment really crystallized the issue. I used this pretty much word fo...
by chicagoan23
Thu Feb 09, 2017 4:08 pm
Forum: Investing - Help with Personal Investments
Topic: New to Bogleheads - Need Help Investing $
Replies: 10
Views: 790

Re: New to Bogleheads - Need Help Investing $

Because various government bodies take about 50 cents of every extra dollar you earn, I'd make it my first priority to reduce my tax bill. To start you need to max your annual 401(k) contribution to $18k. If you can, participate in any other programs at your employer with a tax deferral (such as an ...
by chicagoan23
Wed Feb 08, 2017 11:32 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for a soon-to-be MLB draftee
Replies: 68
Views: 9751

Re: Advice for a soon-to-be MLB draftee

Thank you for the additional advice. I think they are at the point where they know that someone needs to make a decision on what to do with the money, and I have the clear understanding that that someone SHOULD NOT be me. Still.....any examples of what type of help you give to someone who is sitting...
by chicagoan23
Wed Feb 08, 2017 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for a soon-to-be MLB draftee
Replies: 68
Views: 9751

Re: Advice for a soon-to-be MLB draftee

Revisiting this thread..... The draftee, who is 21 years old, received his second installment of his signing bonus and now has about $260,000. Due to investing inertia he has it all sitting in a savings account at a local bank. Most day-to-day living expenses are covered by the team (he is off to sp...
by chicagoan23
Fri Jan 27, 2017 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Reached a milestone: $500K in Retirement Accounts
Replies: 44
Views: 5878

Re: Reached a milestone: $500K in Retirement Accounts

Finally, I owe a lot to this great country. When I first came to U.S.A 17 years ago I had just $29 in my wallet. This country allowed me in and it's system helped me succeed & flourish. This country is full of people, who came over with nothing but their clothes on their back and succeed beyond...
by chicagoan23
Wed Jan 25, 2017 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for Investing $4M to get 4% Return with Least Risk
Replies: 83
Views: 9199

Re: Advice for Investing $4M to get 4% Return with Least Risk

Point taken on the comments for risk in this portfolio, although the allocation described above is not static. As mentioned it was much more heavily in bonds in prior years and typically if it gets to 4% or 5% for the year it derisks substantially, each year. There has been a decrease in the bond al...
by chicagoan23
Wed Jan 25, 2017 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for Investing $4M to get 4% Return with Least Risk
Replies: 83
Views: 9199

Re: Advice for Investing $4M to get 4% Return with Least Risk

Our firm's market-rate cash balance plan has assets in the mid-eight figures and is professionally managed to generate a 4% target annual return without losing money. If the plan ends up with an annual loss, those losses need to be made up by additional contributions--which would be bad. Therefore w...
by chicagoan23
Wed Jan 25, 2017 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Completely new/oblivious to most of this... need advice
Replies: 16
Views: 1162

Re: Completely new/oblivious to most of this... need advice

Look at copies of your tax returns. Know what your income actually is, and see if it has been changing over the past few years. If it has been going down, that may indicate a problem. If you think the trust fund has been 90% depleted and you are 26, it is unlikely to be able to support you for much ...

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