Search found 211 matches

by chicagoan23
Fri Oct 06, 2017 5:04 pm
Forum: Investing - Theory, News & General
Topic: Time Value of Money (Young Investors)
Replies: 29
Views: 1884

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: 343

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: 1884

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: 16213

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: 16213

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: 16213

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: 16213

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: 16213

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: 3896

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: 8221

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: 8221

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: 6401

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: 24039

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: 24039

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: 24039

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: 24039

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: 24039

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: 2490

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: 572
Views: 90626

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: 3726

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: 12478

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: 25254

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: 3058

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: 25254

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: 2585

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: 3984

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: 4819

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: 8536

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: 8536

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: 3608

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: 8689

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: 3608

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: 8689

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: 561

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: 3191

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: 16768

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: 40
Views: 6028

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: 2770

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: 1919

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: 2583

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: 2583

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: 2583

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? :D 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 increa...
by chicagoan23
Fri Jul 21, 2017 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: Turned 44...performance against forecast
Replies: 23
Views: 2583

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 big expen...
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: 680

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: 6215

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: 6215

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: 53
Views: 5732

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: 1517

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: 6121

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: 6121

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...