Search found 1628 matches

by freebeer
Sat Sep 24, 2016 2:11 pm
Forum: Investing - Theory, News & General
Topic: How can markets be efficient if home prices are higher in the spring?
Replies: 50
Views: 1725

Re: How can markets be efficient if home prices are higher in the spring?

... But this is exactly my question. I have a decision to make about whether to sell now or wait until spring. Every Boglehead fiber in my body says to just sell it now, because the market price is the market price... Think about it this way, you probably wouldn't sell a stock or exchange-traded fu...
by freebeer
Sat Sep 24, 2016 1:20 pm
Forum: Personal Consumer Issues
Topic: How is your experience about buying home in SF bay area?
Replies: 18
Views: 2232

Re: How is your experience about buying home in SF bay area?

I'm always shocked when people say you don't get much for your money in the Bay Area. I bought my first home in Fremont in 2009...I then bought a 3 bed in 2011 in Milpitas and now I'm at a 4 bed in 2015 in Martinez... Congratulations on climbing up the property ladder! But, let's face it, Fremont, ...
by freebeer
Fri Sep 23, 2016 9:50 am
Forum: Personal Consumer Issues
Topic: Tenant responsible for appliances?
Replies: 20
Views: 1139

Re: Tenant responsible for appliances?

Uhm, did you notice that they said except for built-ins like washer/dryer/stove etc? Presumably this means like the toaster or the microwave they put on the island for you... And yeah, its legal. I can rent you an apartment with no appliances and you then get to put them all in your self. If you do...
by freebeer
Fri Sep 23, 2016 5:44 am
Forum: Personal Finance (Not Investing)
Topic: A Re-Financing No-Brainer, right???
Replies: 12
Views: 1279

Re: A Re-Financing No-Brainer, right???

It would seem to be a no-brainer that the refi offer is better than standing pat given your situation. However, it is not 100% clear to me that it's a no-brainer that you can't get a better re-fi deal on a 15-year mortgage than 2.54% with $3400 in closing costs. And of course it's never a no-brainer...
by freebeer
Wed Sep 21, 2016 5:42 pm
Forum: Investing - Help with Personal Investments
Topic: Is this asset allocation fine or am I missing something?
Replies: 17
Views: 1117

Re: Is this asset allocation fine or am I missing something?

What is the rationale for having 14% of your stock allocation in preferred stocks? That's a new "tilt" on me. Tiltling 5% extra to emerging markets seems OK as long as you will stick with it. I hope it is not a new thing based on recent market declines in EM (narket chasing) but rather som...
by freebeer
Wed Sep 21, 2016 5:28 pm
Forum: Forum Issues and Administration
Topic: Proposal - create a public Slack channel
Replies: 4
Views: 632

Re: Proposal - create a public Slack channel

What would be the value?
by freebeer
Sun Sep 18, 2016 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Am I saving enough to retire comfortably? See my Excel model
Replies: 19
Views: 3013

Re: Am I saving enough to retire comfortably? See my Excel model

mindfulmania wrote:...
- Start at 90/10 stock/bond, falling over time to ~30% by age 63


What is the rational basis for choosing this glide path? Vanguard "Total Retirement" funds for example would not have anything like this. It would subject you both to lower expected real returns and to inflation risk.
by freebeer
Sun Sep 18, 2016 6:11 pm
Forum: Personal Consumer Issues
Topic: More on Scouting Retirement Locations
Replies: 35
Views: 2746

Re: More on Scouting Retirement Locations

I just finished reading the two recent threads on scouting retirement locations (zoo/aquarium leaning and liberal leaning searches) and made note of two items that were repeated by a few posters: (1) Southern Florida - sea levels rising making this location a no-go? what time frame are we speaking ...
by freebeer
Sun Sep 18, 2016 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: Understanding taxation in retirement
Replies: 8
Views: 1494

Re: Understanding taxation in retirement

Ignoring the rest of your questions, spending $80,000 after tax is excessive for this couple. Gill That is total baloney IMHO. This couple has $59K in pension + SS income so to spend $80K after tax they will need, what, $35K more max per year? They have investments of $1.7M so $35K is only 2% withd...
by freebeer
Sun Sep 18, 2016 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: how to contribute 53k to 401(k) as employed doc?
Replies: 39
Views: 2383

Re: how to contribute 53k to 401(k) as employed doc?

Thanks guys. To clarify, this would be an employed/staff position within a private practice, not a shareholder position. To my knowledge, all employees whether on staff or partner track have the same setup for this retirement plan, where they contribute 18k and group contributes the rest. Well it s...
by freebeer
Sun Sep 18, 2016 5:53 am
Forum: Personal Consumer Issues
Topic: Singapore Sling (Raffles Hotel) or Suntory Whisky (Park Hyatt Tokyo)?
Replies: 13
Views: 991

Re: Singapore Sling (Raffles Hotel) or Suntory Whisky (Park Hyatt Tokyo)?

I've got a lot of PTO (paid time off) and it comes down to take it or lose it. I could take it, sit at home, and watch Judge Judy. Which kind of feels like a waste. So what to do? Good question. Go on vacation is the logical choice. So I'm half tempted to either go to Singapore and have a Singapore...
by freebeer
Sat Sep 17, 2016 1:16 am
Forum: Investing - Theory, News & General
Topic: Is Warren Buffett the ultimate free rider?
Replies: 23
Views: 3840

Re: Is Warren Buffett the ultimate free rider?

The freeriders are the owners of BRK shares who are not Warren Buffett. Like myself for the past 30 years. Warren did all the work, I just thoroughly enjoyed my free ride :-) Yeah I truly scratch my head at calling the entrepreneur in the equation a free rider. OK Warren didn't do ALL the work - hi...
by freebeer
Fri Sep 16, 2016 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Do you really need 2.5 million to retire well?
Replies: 247
Views: 38064

Re: Do you really need 2.5 million to retire well?

I am surprised by the number of people who are comfortable that they can live well on $50,000/yr. Granted the definition of well is a bit squishy but after all the I have $3 million in investable assets threads these responses were unexpected. Median household income for my county is 32k and I see ...
by freebeer
Fri Sep 16, 2016 6:58 am
Forum: Investing - Help with Personal Investments
Topic: Considering a 20% swing in my asset allocation
Replies: 41
Views: 2926

Re: Considering a 20% swing in my asset allocation

. Here is a good article which makes a very good case for it: http://www.advisorperspectives.com/articles/2015/08/04/why-bond-funds-don-t-belong-in-retirement-portfolios . It should make a good case for annuities since insurers paid Dr. Pfau to write it! IMHO the last thing OP needs is more lifetim...
by freebeer
Fri Sep 16, 2016 6:16 am
Forum: Investing - Help with Personal Investments
Topic: Considering a 20% swing in my asset allocation
Replies: 41
Views: 2926

Re: Considering a 20% swing in my asset allocation

I am 64 years old, I retired two years ago, and my net worth is about $1.6M excluding my home. It is beginning to make sense to me to change my asset allocation from 50% equity/50% fixed income, to 30%/70%. Please tell me if my rationale makes sense to you. Within 2-years our combined Social Securi...
by freebeer
Thu Sep 15, 2016 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: New Guy Looking for Advice [Take ownership of grandparent's rental property?]
Replies: 23
Views: 1253

Re: New Guy Looking for Advice [Take ownership of grandparent's rental property?]

I would think about this like a reverse mortgage in modeling the financial proposition. It is like a reverse mortgage in that while alive your grandparents get the use of the property, in this case the stream of rental income rather than free occupancy. Like a reverse mortgage it is in some sense in...
by freebeer
Thu Sep 15, 2016 11:31 pm
Forum: Personal Finance (Not Investing)
Topic: An example of the value of a liability umbrella policy
Replies: 22
Views: 2362

Re: An example of the value of a liability umbrella policy

That is both scary and unfortunate. Yes, sadly, it is wise in today's world to carry an umbrella policy. A scary and unfortunate story about one incident in which umbrella insurance might have been beneficial does not support the proposition that it's wise to carry an umbrella policy, any more than...
by freebeer
Wed Sep 14, 2016 5:37 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard QCD Checks [Qualified Charitable Distributions]
Replies: 32
Views: 1707

Re: Vanguard QCD Checks

Keep in mind that the smaller the charity, the more likely it is to be run by part-time volunteers. Sometimes the treasurer, or whoever's job it is to handle donations, could be sick, or out of town, or hasn't been in the office recently. That is correct..you need to give leeway to volunteer organi...
by freebeer
Sat Sep 10, 2016 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard 8/17/16 Article: "A New Approach to Retirement Spending"
Replies: 31
Views: 2761

Re: Vanguard 8/17/16 Article: "A New Approach to Retirement Spending"

There is a reason to spend taxable distributions instead of reinvesting them, if you need spending money. If the distributions are reinvested, they raise the cost basis of the fund holding. Then, if you decide to withdraw from that fund, there will be taxes due on the gains. It is not double taxati...
by freebeer
Wed Sep 07, 2016 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: vacation home now or in 2035?
Replies: 10
Views: 1260

Re: vacation home now or in 2035?

Hi, wife and I are mid-40s but starting to dream a bit about a mountain escape to go to on weekends. One thought is to strike out now, and build some memories up of the place and maybe spend some still-somewhat-youthful energy on fixing one up to be ours. We don't have much time to use it now, but ...
by freebeer
Tue Sep 06, 2016 7:01 pm
Forum: Investing - Theory, News & General
Topic: "How to Tell if Your Retirement Nest Egg Is Big Enough"
Replies: 61
Views: 13257

Re: "How to Tell if Your Retirement Nest Egg Is Big Enough"

The problem I have always had with the Bernstein advice of "when you've won the game, quit playing" is that it implies a degree of certainty about future expenses that I am not sure exists. If my expenses really are capped at "x" and if my longevity is capped at "N" ye...
by freebeer
Tue Sep 06, 2016 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: retirement readiness = residual living expenses + funding the gap?
Replies: 45
Views: 3957

Re: retirement readiness = residual living expenses + funding the gap?

$40,000 per annum is $3,3333 per mensem. I looked up the price of $1,000 pm. income for life on immediateannuities.com for Female at various ages: Age Price Payout Rate (pa.) 55 241959 4.96% 60 233869 5.13% 65 209266 5.73% 70 182875 6.56% 75 154139 7.79% 80 123973 9.68% You are always aging, so you...
by freebeer
Sun Sep 04, 2016 11:28 pm
Forum: Personal Consumer Issues
Topic: Drowned IPhone
Replies: 28
Views: 2169

Re: Drowned IPhone

My son's Samsung Galaxy took a dip in the pool... rice drying didn't work so the phone got stuck in the closet where it's been for a year. Today I was cleaning the closet and decided just for the heck of it to try one more time to charge it before disposing... and lo and behold, it works again! So, ...
by freebeer
Sun Sep 04, 2016 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: retirement readiness = residual living expenses + funding the gap?
Replies: 45
Views: 3957

Re: retirement readiness = residual living expenses + funding the gap?

... So far #Cruncher's formula seems best but I'm thinking there might be an even simpler way to approximate it. You can simplify the procedure in my post above if you skip the part that calculates the implicit return from the base age until death. If you just assume a growth rate from retirement a...
by freebeer
Sat Sep 03, 2016 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: How to compare a mega corp job offer to a startup's
Replies: 31
Views: 2584

Re: How to compare a mega corp job offer to a startup's

... I’ve recently applied to a start-up (50 employees large or so and this is their first quarter being profitable... Steve Blank's definition of a start-up is "a temporary organization used to search for a repeatable and scalable business model." That your potential employer is already p...
by freebeer
Sat Sep 03, 2016 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: retirement readiness = residual living expenses + funding the gap?
Replies: 45
Views: 3957

Re: retirement readiness = residual living expenses + funding the gap?

Personally, I consider nominal SPIAs as extremely risky when used to cover essential expenses because they are vulnerable to significant loss of power purchase after a long period of time. One of the primary goals of using a SPIA in a retirement plan is specifically to reduce the risk of not having...
by freebeer
Thu Sep 01, 2016 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: retirement readiness = residual living expenses + funding the gap?
Replies: 45
Views: 3957

Re: retirement readiness = residual living expenses + funding the gap?

How do you define residual living expense? I have been retired for about 8 months. My spending is quite high but a lot of it is discretionary. I believe that if we faced a large portfolio loss we could cut our spending by 1/3-1/2 and would thus be fully covered by SS and a federal pension. Is the R...
by freebeer
Thu Sep 01, 2016 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: retirement readiness = residual living expenses + funding the gap?
Replies: 45
Views: 3957

Re: retirement readiness = residual living expenses + funding the gap?

Dr. Bernstein writes about planning retirement based on "residual living expenses" (RLE), i.e. the amount needed over Social Security and/or pension(s) to live. Including that ideally one should have at a minimum 17x RLE at age 70, 20x RLE if retiring at age 65, and the classic 25x RLE (=...
by freebeer
Thu Sep 01, 2016 12:53 am
Forum: Personal Finance (Not Investing)
Topic: retirement readiness = residual living expenses + funding the gap?
Replies: 45
Views: 3957

Re: retirement readiness = residual living expenses + funding the gap?

Thanks freebeer for the original question - I'm no math whiz. I read through Cruncher's spreadsheet several times. What doesn't make sense to me is the RLE x 17 at age 70 being sufficient to fund retirement until age 100 (or 30 years). Bernstein's numbers indicate a 4/5/6% withdrawal depending on t...
by freebeer
Thu Sep 01, 2016 12:47 am
Forum: Personal Finance (Not Investing)
Topic: retirement readiness = residual living expenses + funding the gap?
Replies: 45
Views: 3957

Re: retirement readiness = residual living expenses + funding the gap?

#Cruncher wrote:
freebeer, at end of the original post, wrote:Is there a simple way to model what you would need today to fund this scenario ... say that it's as assured as the baseline assumption itself (the 17 years of RLE at age 70).
Here's a simple way to model it. ...


That's beautiful, thanks so much!
by freebeer
Wed Aug 31, 2016 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: retirement readiness = residual living expenses + funding the gap?
Replies: 45
Views: 3957

retirement readiness = residual living expenses + funding the gap?

Dr. Bernstein writes about planning retirement based on "residual living expenses" (RLE), i.e. the amount needed over Social Security and/or pension(s) to live. Including that ideally one should have at a minimum 17x RLE at age 70, 20x RLE if retiring at age 65, and the classic 25x RLE (= ...
by freebeer
Mon Aug 29, 2016 10:18 pm
Forum: Personal Finance (Not Investing)
Topic: Buying house near church
Replies: 65
Views: 4753

Re: Buying house near church

...The weaker physical churches with nothing unique to offer, have a harder and harder time to compete for members. So today it's a church, tomorrow it can be anything. Well, not quite. Certainly, the city of Chicago has the usual zoning and land use ordinances in place so property owners cannot ju...
by freebeer
Mon Aug 29, 2016 7:18 pm
Forum: Personal Consumer Issues
Topic: Selling house to our real estate agent - issues
Replies: 16
Views: 1553

Re: Selling house to our real estate agent - issues

M... After the due diligence period including inspections, we allow them to access the house to get bids for contractors. Also, they can start cleanup (removing old carpets, repainting, landscaping, etc.) after all inspections were completed. ... This is a provision highly desired by house flippers...
by freebeer
Mon Aug 29, 2016 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: What to do with my underwater house, sink or swim?
Replies: 29
Views: 3442

Re: What to do with my underwater house, sink or swim?

You also have (per another post) $20K in credit card debt so if you combine that with the estimated $25K in negative equity you are at least $45K under water in total. That also means you are unlikely to get a good-rate conventional 30-year loan since you won't have the necessary down payment. Becau...
by freebeer
Fri Aug 26, 2016 11:12 am
Forum: Personal Consumer Issues
Topic: Seeking advice on what to do about recent property survey/neighbor's driveway
Replies: 34
Views: 3182

Re: Seeking advice on what to do about recent property survey/neighbor's driveway

If the driveway has been there for decades, it may be considered an easement that they have on your property at this point in time. It may even be a recorded easement, although that should have shown up in property searches. You should consult a lawyer who specializes in real estate law if you want...
by freebeer
Thu Aug 25, 2016 11:42 pm
Forum: Personal Consumer Issues
Topic: Where to stay in SF Bay Area for 2 months?
Replies: 9
Views: 1033

Re: Where to stay in SF Bay Area for 2 months?

Personally I would try to find something on AirBnB or one of the other sharing sites that was walking distance or at most a bike ride or short bus ride from work. You could get a "whole place" if you don't want to share. 2 months is a a good amount time for a short-term furnished sublet.
by freebeer
Wed Aug 24, 2016 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement: Where $200K Will Last 30 Years
Replies: 93
Views: 13820

Re: Retirement: Where $200K Will Last 30 Years

Much as I like to pretend I will be living on a beach in the Caribbean, the USA is still my favorite country for retirement. If you live the same lifestyle in Belize as you do in seattle, it will cost about the same. It's cheaper to live those places because their standard of living is lower... As ...
by freebeer
Wed Aug 24, 2016 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Retirement: Where $200K Will Last 30 Years
Replies: 93
Views: 13820

Re: Retirement: Where $200K Will Last 30 Years

Much as I like to pretend I will be living on a beach in the Caribbean, the USA is still my favorite country for retirement. If you live the same lifestyle in Belize as you do in seattle, it will cost about the same. It's cheaper to live those places because their standard of living is lower... As ...
by freebeer
Mon Aug 22, 2016 1:30 pm
Forum: Personal Consumer Issues
Topic: Best/safest/easiest way to send sensitive files to another person over the internet?
Replies: 40
Views: 2678

Re: Best/safest/easiest way to send sensitive files to another person over the internet?

I edited my original post to specify that while I initially said "best/most secure," I should have stipulated that ease is critically important as well, since the person who will be sending the files to me is an elderly relative. This person could handle the Word password, Google drive, D...
by freebeer
Sun Aug 14, 2016 9:07 am
Forum: Personal Finance (Not Investing)
Topic: HOA Ruling
Replies: 34
Views: 3793

Re: HOA Ruling

As others noted, a specific restriction in the covenants can't be contravened by a Board decision and my guess is after they agreed 12x16 was OK some owner pointed that out to them and they rescinded the policy. IANAL but I don't think you have any legal leg to stand on. But given your neighbor's 12...
by freebeer
Wed Aug 10, 2016 12:12 pm
Forum: Personal Consumer Issues
Topic: Airbnb rental review
Replies: 32
Views: 3434

Re: Airbnb rental review

but the boomerang of low ratings causing problems for users is a real thing (my first Airbnb stay I left a mixed review because the (absentee) host had grossly mischaracterized her place, and I got a retaliatory bad review that dogged me for quite a while until I'd accumulated a bunch of glowing on...
by freebeer
Wed Aug 10, 2016 11:36 am
Forum: Personal Consumer Issues
Topic: Airbnb rental review
Replies: 32
Views: 3434

Re: Airbnb rental review

If the expectation for Airbnb is that everyone gets 5 stars then what is the point of having stars? IMO - 5 stars means you would strongly recommend, 4 stars is you recommend with some reservations, 3 stars is neutral - you wouldn't recommend but you wouldn't actively tell Exactly. EBay style star ...
by freebeer
Sun Aug 07, 2016 12:23 pm
Forum: Investing - Help with Personal Investments
Topic: 10 year certain annuity as a bridge to Social Security
Replies: 11
Views: 1155

Re: 10 year certain annuity as a bridge to Social Security

I am very ignorant on annuities but it seems to me for someone retiring in their 50s a 10 year certain annuity might make sense as a bridge to Social Security. But what are the downsides or is it even doable? Are the payments taxable to you have to use taxed savings or can you use tax deferred? Any...
by freebeer
Thu Aug 04, 2016 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Selling 1/2 share of home advice
Replies: 13
Views: 962

Re: Selling 1/2 share of home advice

The third party would not be buying the home but buying a tenant-in-common interest in it. In my understanding TIC interests in a single-family residence are not really marketable (it would be different if it were a multi-unit property, especially in an area like San Francisco, that has developed a ...
by freebeer
Thu Aug 04, 2016 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: "4% Rule" ...is broken? [argumentative]
Replies: 150
Views: 8882

Re: "4% Rule" ...is broken? [argumentative]

But now they are arguing 25x is not enough. If one retires when one has only 25 times his barebones basic needs to live, this might be true. Bogleheads are smart people; they ...retire when they have accumulated 25 times their residual planned budget (including taxes), above their base income... I ...
by freebeer
Tue Aug 02, 2016 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Electrical Engineering OR Computer Science?
Replies: 52
Views: 3047

Re: Electrical Engineering OR Computer Science?

...But if he's really thinking about getting into software development, then really do CS or at least an EECS type degree that skews that way vs. towards EE stuff (and I don't mean just a CS minor although that would be OK). As others have noted, a lot depends on the area of specialization. To that...
by freebeer
Mon Aug 01, 2016 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: Need support during rougher period
Replies: 9
Views: 1352

Re: Need support during rougher period

You are experiencing a period of sanity during which you recognize that a bull market is getting crazy and will not last a lot longer. This sanity is rejected by many people, especially those who express disdain for any logical assessment of market direction and declare it unknowable. There are sev...
by freebeer
Mon Aug 01, 2016 6:35 pm
Forum: Personal Consumer Issues
Topic: Should I flip my neighbor's house to save the neighborhood?
Replies: 72
Views: 6842

Re: Should I flip my neighbor's house to save the neighborhood?

... The back yard is becoming overgrown, wood gutters and porch are rotted out, the roof needs to be replaced, and at least one of the chimneys looks close to collapse. Who knows what vermin is starting to move into the house. I would much rather prefer if someone swooped in, bought the house, and ...
by freebeer
Mon Aug 01, 2016 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Electrical Engineering OR Computer Science?
Replies: 52
Views: 3047

Re: Electrical Engineering OR Computer Science?

If you have an EE degree, you can get a programming job. If you have a CS degree, it is unlikely that you can get an engineering job. I'd lean towards an Engineering major with CS minor. And this is coming from a CS major. The point is valid, but speaking as another CS major, I feel the EE grads ar...
by freebeer
Thu Jul 21, 2016 11:49 pm
Forum: Personal Consumer Issues
Topic: HOA Swimming Pool Trespassing Issue
Replies: 100
Views: 7215

Re: HOA Swimming Pool Trespassing Issue

BolderBoy wrote:... I don't have kids and have zero sympathy for how they may think...


Uh... but you WERE a kid once... hopefully you still have some recollection of how you thought (or didn't think...) back then...

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