Search found 200 matches

by ge1
Mon Apr 04, 2016 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: becoming your own accountant
Replies: 18
Views: 1450

Re: becoming your own accountant

Agree with what has already been said. I am a CPA, also have MBA and CFA. I dont hire financial professionals for either investment management or tax prep. But I would certainly hire a tax professional if I was in your position. You have a much more complicated scenario than I do. I rather enjoy in...
by ge1
Sun Apr 03, 2016 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Big spenders, anybody successfully downsized?
Replies: 30
Views: 4087

Re: Big spenders, anybody successfully downsized?

Finally, it sounds like both of you work. Does it need to happen at the same time? Could you "phase out" - go reduced work week, or maybe one of you quits first? Then you could cut the nanny. When one member of the duo isn't working, and it doesn't matter which, it does make life less hec...
by ge1
Sat Apr 02, 2016 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Big spenders, anybody successfully downsized?
Replies: 30
Views: 4087

Re: Big spenders, anybody successfully downsized?

Realistically I doubt that you can reach your goals by just cutting back. It sounds like you need a new retirement lifestyle to make that budget. Just for comparison $10K a month is $120K a year. A couple where they are each making $60K a year has a family income of $120K a year. There would be ton...
by ge1
Sat Apr 02, 2016 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Big spenders, anybody successfully downsized?
Replies: 30
Views: 4087

Re: Big spenders, anybody successfully downsized?

When you are saving 200k/yr, you end up with tough choices between working one more year (call it 500/month more for life) or cutting spending. 500/month buys a lot of toys/experiences over the remaining 30 years of your life. On the other hand, you only have 30 years left:) That's an interesting w...
by ge1
Fri Apr 01, 2016 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Big spenders, anybody successfully downsized?
Replies: 30
Views: 4087

Re: Big spenders, anybody successfully downsized?

We bought our house fairly cheap (relative to our incomes) and spent a lot over the last few years in renovating, which has been completed now. A portion of that expense is included in the 20k mentioned earlier. The cost of the renovation shouldn't be included in your historical budget numbers. Pre...
by ge1
Fri Apr 01, 2016 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: Big spenders, anybody successfully downsized?
Replies: 30
Views: 4087

Re: Big spenders, anybody successfully downsized?

Four years ago we cut from about $30,000 / mo to $12k / mo. It seemed like an impossible task at the time, but now that it's done, it is so awesome. We now live way below our current means which allows us to save a lot (or spend money we have instead of money we don't). This has accelerated our ret...
by ge1
Fri Apr 01, 2016 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Big spenders, anybody successfully downsized?
Replies: 30
Views: 4087

Re: Big spenders, anybody successfully downsized?

Good point hand.

My spouse buys in the downsizing plan, however she is a bit more cautious (or maybe just realistic) in giving up a high income too early.
by ge1
Fri Apr 01, 2016 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Big spenders, anybody successfully downsized?
Replies: 30
Views: 4087

Re: Big spenders, anybody successfully downsized?

Thanks for all the replies. I'll look at our spending more closely, but I know we easily have 5-8k discretionary spending between vacations, things for the house or leisure / sports. I know we can bring our spending down to 10k per month, but I guess I'm most interested in experiences from people wh...
by ge1
Fri Apr 01, 2016 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Big spenders, anybody successfully downsized?
Replies: 30
Views: 4087

Re: Big spenders, anybody successfully downsized?

Mortgage is 3k per month, majority of which is principal as we have a 15 year mortgage. No second home. Vacations are easily 2.5k per month, which is an obvious place to spend less. 1 child and private school is 1.2k per month (another place to save as public schools are good). As we both work full ...
by ge1
Fri Apr 01, 2016 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Big spenders, anybody successfully downsized?
Replies: 30
Views: 4087

Big spenders, anybody successfully downsized?

My wife and I are in our mid 40s and make very good money (mid to high six figures). We spend a lot (20k per month) save a lot (200k per year) and also pay a lot of taxes :-) We want to stop / significantly reduce working in a few years and for the math to work we need to bring down our expenses sig...
by ge1
Wed Feb 24, 2016 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of rental property at a loss - tax question
Replies: 13
Views: 1675

Re: Sale of rental property at a loss - tax question

SouthernCPA - thanks, I have engaged a CPA and will file an amended return for 2014.
by ge1
Wed Feb 24, 2016 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of rental property at a loss - tax question
Replies: 13
Views: 1675

Re: Sale of rental property at a loss - tax question

RamoniOba wrote:Ge1.....what documentation do I need to claim the loss on sale of rental property? Is there any literature I can read up on?



I'm traveling and can't look it up right now, but for example TaxTopic 425 on the IRS website.
by ge1
Tue Feb 23, 2016 6:01 am
Forum: Personal Finance (Not Investing)
Topic: Sale of rental property at a loss - tax question
Replies: 13
Views: 1675

Re: Sale of rental property at a loss - tax question

Bumping this one and hoping some of the tax experts here will jump in. I looked at form 1040X and none of the numbers will change (all that is changing is my passive activity loss which was non deductible in 2014), so maybe I don't need to amend my 2014 tax return and just use the correct passive ac...
by ge1
Mon Feb 22, 2016 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of rental property at a loss - tax question
Replies: 13
Views: 1675

Re: Sale of rental property at a loss - tax question

I have a follow up question: I realized I didn't calculate my passive activity losses correctly in 2013 and 2014. Do I need to file amended tax returns for those years (even though my tax liability hasn't changed), or can I simply use the correct cumulative passive activity losses now in my 2015 ret...
by ge1
Sun Feb 21, 2016 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of rental property at a loss - tax question
Replies: 13
Views: 1675

Re: Sale of rental property at a loss - tax question

Thanks Mule. Yes exactly, I read the relevant publications and calculated the loss based on the FMV at the time when the property covered to a rental, which I can validate with an appraisal performed at the time for a refinancing. This truly was the worst investment in real estate history, so it is ...
by ge1
Sun Feb 21, 2016 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of rental property at a loss - tax question
Replies: 13
Views: 1675

Sale of rental property at a loss - tax question

We sold our vacation home last year, which since 2011 we used primarily as rental property. We took a sizable loss when selling the house and I'm comfortable with the gain / loss calculation, which I ran by a CPA at the time. When doing my 2015 tax return, I realize that the loss is reducing my taxa...
by ge1
Sat Feb 13, 2016 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Is the high cost of living in Northern VA/DC worth it?
Replies: 49
Views: 3291

Re: Is the high cost of living in Northern VA/DC worth it?

I highly recommend the Raleigh Durham area. Lots of great IT companies (SAS, Cisco), housing still very affordable compared to the big cities and big enough to have a decent night life for a single person. And only a few hours from VA.
by ge1
Sat Feb 13, 2016 10:27 am
Forum: Personal Consumer Issues
Topic: Relocating for a job--lots of life changes
Replies: 43
Views: 2974

Re: Relocating for a job--lots of life changes

My wife and I moved more times than I can count, including one just when we got married. To me this all sounds great, that's a good comp in Florida. You are young, go for it!
by ge1
Fri Feb 12, 2016 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: Confused by GMO asset class forecasts?
Replies: 2
Views: 330

Confused by GMO asset class forecasts?

I enjoy reading Grantham's quarterly letters, but I have to admit I can't take his asset class return forecasts seriously anymore. Case in point: As per December 2012 his forecast had the following annualized real returns over the next 7 years: International Large Cap: 3.9% Emerging Market: 5.6% Now...
by ge1
Fri Feb 12, 2016 1:22 pm
Forum: Investing - Theory, News & General
Topic: Is it starting to smell like opportunity?
Replies: 32
Views: 3838

Re: Is it starting to smell like opportunity?

I have no idea but I used the recent declines to bring my allocations to stocks where it should be, I had maybe 15% of my portfolio in cash due to valuation concerns. That probably means we will see a much larger decline... I also make every now and then 'tactical' trades with small amounts (total l...
by ge1
Fri Feb 12, 2016 5:49 am
Forum: Personal Finance (Not Investing)
Topic: What is your decline in Net Worth as of today?
Replies: 96
Views: 10156

Re: What is your decline in Net Worth as of today?

My net worth is close to all time high due to large contributions.

My total losses are probably close to 100k YTD. Doesn't bother me in the slightest, I was able to buy at lower prices.
by ge1
Thu Feb 11, 2016 2:38 pm
Forum: Investing - Theory, News & General
Topic: What is the long term S&P growth rate?
Replies: 10
Views: 738

Re: What is the long term S&P growth rate?

Thanks jimb, lots of good information and useful tools with the links provided. Will check this out. Completely understand that looking at the price growth only tells you little about the total return - all I am trying to do here is comparing the S&P today with S&P values in the past (which ...
by ge1
Thu Feb 11, 2016 12:43 pm
Forum: Investing - Theory, News & General
Topic: What is the long term S&P growth rate?
Replies: 10
Views: 738

Re: What is the long term S&P growth rate?

long_gamma wrote:This might be interest for you.

http://www.philosophicaleconomics.com/2015/03/treps/


Excellent article, this is exactly what I was looking for (no actually more than that!). Thanks again.
by ge1
Thu Feb 11, 2016 8:33 am
Forum: Investing - Theory, News & General
Topic: What is the long term S&P growth rate?
Replies: 10
Views: 738

What is the long term S&P growth rate?

In order to get a sense if the market is "overvalued" or "cheap" at the current level, I like to discount the current value of the S&P 500 by the normal growth rate and compare the computed value with the actual value. Example: Using a 6% growth rate, 1820 in 2016 is equivale...
by ge1
Thu Feb 11, 2016 8:20 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 2900
Views: 605230

Re: U.S. stocks in freefall

Time to bump this thread, futures were down 2% earlier... 8-)
by ge1
Thu Feb 11, 2016 7:53 am
Forum: Investing - Theory, News & General
Topic: World stocks officially reach bear market territory
Replies: 27
Views: 3950

Re: World stocks officially reach bear market territory

Chill out people. I think it's a very relevant observation that the global stock market is in a bear market and the way things are going the US market will join that club soon enough.
by ge1
Fri Feb 05, 2016 8:44 am
Forum: Personal Finance (Not Investing)
Topic: How to get a 200k+/year job?
Replies: 107
Views: 10840

Re: How to get a 200k+/year job?

Many good thoughts in this thread. I would add one point that stuck with my from a conversation with a very successful business man: It is so much easier to get ahead (both career wise and financially), when you are in an industry which generally enjoys a tailwind rather than a headwind. Having grad...
by ge1
Fri Feb 05, 2016 6:40 am
Forum: Personal Finance (Not Investing)
Topic: What growth rate would you use?
Replies: 75
Views: 3995

Re: What growth rate would you use?

Remember, you need to use prudent pessimism in planning. It would be very dangerous to plan on getting the historic average return for stocks. I disagree. I have 26 years until I'll need retirement, and figure that the average performance for the next 26 years will probably be similar as the averag...
by ge1
Thu Feb 04, 2016 11:47 am
Forum: Personal Finance (Not Investing)
Topic: How to get a 200k+/year job?
Replies: 107
Views: 10840

Re: How to get a 200k+/year job?

There are lots of ways to be successful and happy (not suggesting one causes the other). Focussing on salary alone may not be the best way to actually earn a good salary. I think it is better to focus on what you enjoy and consequently are good at. In my case, I became a CPA, got a part time MBA, a...
by ge1
Wed Feb 03, 2016 10:22 pm
Forum: Investing - Theory, News & General
Topic: VEMAX up 0.44% / VWO up 2.67% ??
Replies: 7
Views: 987

Re: VEMAX up 0.44% / VWO up 2.67% ??

There was a thread a couple of weeks ago in which I discussed my observations on the frequent flipping between discounts and premiums on VWO/VEMAX. (I believe the title dealt with foreign ETF best trading practices.) Yesterday, VWO closed at a large discount to NAV after international markets were ...
by ge1
Wed Feb 03, 2016 8:44 pm
Forum: Investing - Theory, News & General
Topic: VEMAX up 0.44% / VWO up 2.67% ??
Replies: 7
Views: 987

VEMAX up 0.44% / VWO up 2.67% ??

Not a big deal, but I bought some Vanguard Emerging Market Admiral Shares today (VEMAX) and given the 2.67% jump in the equivalent ETF (VWO) I was surprised to see that VEMAX only increased 0.44%. I know there can be differences, but I don't think I have ever seen one that big? Works out for me as I...
by ge1
Wed Feb 03, 2016 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: Clueless college new grad 22 yo, 200k income looking to start saving
Replies: 143
Views: 12091

Re: Clueless college new grad 22 yo, 200k income looking to start saving

People seem to get all excited about your high starting salary and the personal situation - but reading your OP a few times now I'm not clear what your actual question is? Seems to me you know exactly where your savings in the next 4 years are going: wedding ring and house down payment. Given that s...
by ge1
Sun Jan 31, 2016 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question personal loan
Replies: 8
Views: 463

Re: Tax question personal loan

Unless you put out additional capital, the increase in capital would be interest paid. Make sure the rate charged is at least the IRS minimum to avoid imputed interest. https://www.irs.gov/pub/irs-drop/rr-16-04.pdf I don't see what in your link what addresses this point, aside from just giving the ...
by ge1
Sun Jan 31, 2016 7:41 am
Forum: Personal Finance (Not Investing)
Topic: Tax question personal loan
Replies: 8
Views: 463

Re: Tax question personal loan

Thanks all for the feedback. Yes the rate is above the minimum IRS rates. Makes sense to me that the amount of interest earned rolled into the new loan would have to be declared as interest income. Related to this a slightly different question: Can anybody think of a tax efficient way of making thes...
by ge1
Sun Jan 31, 2016 6:03 am
Forum: Personal Finance (Not Investing)
Topic: Tax question personal loan
Replies: 8
Views: 463

Tax question personal loan

I made several loans to a colleague for real estate related investments. He didn't actually pay me the interest, but when we rolled one loan into another, we increased the principal by the earned interest income. I assume I still have to declare the interest income as taxable income in 2015?
by ge1
Sun Jan 31, 2016 5:26 am
Forum: Personal Finance (Not Investing)
Topic: WSJ: HSAs Offer Tax Benefits Beyond 401(k)s
Replies: 26
Views: 4543

Re: WSJ: HSAs Offer Tax Benefits Beyond 401(k)s

Madbrain, agree in your case it looks like the HSA is not the way to go. What would the math look like if you assumed you don't need the HSA money to pay for your medical expenses every year, I.e. have more money for investing? For us the HSA is a complete no brainer. We are in the highest tax brack...
by ge1
Sat Jan 30, 2016 2:38 pm
Forum: Investing - Theory, News & General
Topic: Who else is holding in cash? [For future investing]
Replies: 66
Views: 5058

Re: Who else is holding in cash?

I underweight US stocks due to valuation concerns a bit myself - but 56% is way too extreme! Just a few things to consider: - Do you realize that the market is trading at 20 times trailing earnings - that is only maybe 10% over the 60 year average (I would have to check the exact number) - S&P 5...
by ge1
Fri Jan 29, 2016 9:59 pm
Forum: Investing - Theory, News & General
Topic: Regret of selling winning stocks early
Replies: 29
Views: 2542

Re: Regret of selling winning stocks early

I wish I had that problem, my company stock goes down all the time :-) On a serious note, I never regret taking a gain, even if it could be bigger. Yes I probably "lost" 100k by selling Starbucks too early, but I also sold Citi in the 20s before it went to $1, sold IBM in the 180s or Cater...
by ge1
Thu Jan 28, 2016 4:09 pm
Forum: Investing - Theory, News & General
Topic: Oil Slump ---- VGENX/FSENX? [Vanguard / Fidelity Energy Fund]
Replies: 27
Views: 2545

Re: OIL SLUMP ---- VGENX/FSENX? [Vanguard / Fidelity Energy Fund]

Just wanted to mention that VGELX is up around 9% since I bought on the 19th based on the increase in the ETF today :D , maybe January 20 really was the bottom. Time will tell...
by ge1
Mon Jan 25, 2016 9:55 pm
Forum: Investing - Help with Personal Investments
Topic: Cash-on-the-sidelines thread
Replies: 39
Views: 4767

Re: Cash-on-the-sidelines thread

Bought a bit more at the close today. Now approx 7% below target for stocks.
by ge1
Mon Jan 25, 2016 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Bought a bunch of stocks today
Replies: 46
Views: 5531

Re: Bought a bunch of stocks today

Given you are 100% in equities, where did the 50k come from?
by ge1
Sun Jan 24, 2016 8:45 pm
Forum: Investing - Theory, News & General
Topic: What is Your Bond Allocation & Location
Replies: 48
Views: 5102

Re: What is Your Bond Allocation & Location

Total Bond Market, Corporate Intermediate and TIPS fund in my 401k.

Muni bond funds in my taxable.
by ge1
Fri Jan 22, 2016 8:27 am
Forum: Investing - Theory, News & General
Topic: Oil Slump ---- VGENX/FSENX? [Vanguard / Fidelity Energy Fund]
Replies: 27
Views: 2545

Re: OIL SLUMP ---- VGENX/FSENX?

Interesting point Valuethinker.

And Oil may well go down to $10, but what are the chances that 5 years or 10 years from now, oil won't be considerably higher and with that share prices of energy companies? I think those chances are very high.
by ge1
Fri Jan 22, 2016 5:43 am
Forum: Investing - Theory, News & General
Topic: Oil Slump ---- VGENX/FSENX? [Vanguard / Fidelity Energy Fund]
Replies: 27
Views: 2545

Re: OIL SLUMP ---- VGENX/FSENX?

I bought VGENX 2 days ago. It's only 2.5% of my portfolio but not immaterial in $ terms. I read William Bernsteins Rational Expectations again (one of my favorites), where he recommends (or at least is not opposed to) having a small allocation to precious metals and energy companies. Also anecdotall...
by ge1
Thu Jan 21, 2016 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: I can sleep at night but it is on my mind a lot
Replies: 60
Views: 3697

Re: I can sleep at night but it is on my mind a lot

Reading your posts it seems clear to me that you can't handle a 70% allocation to stocks. Given that you only need 48k from your 3m portfolio, there is no need to take that risk. How would you feel if the market decreased 30%, which is entirely possible and you are down 500k? You won the game, chang...
by ge1
Wed Jan 20, 2016 1:14 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 2900
Views: 605230

Re: U.S. stocks in freefall

Crushtheturtle wrote:....

Must. Get. Money. Into. Market. Faster.


We have been spoiled for a long time in the sense that any market drops were almost immediately follows by sharp upswings (recovery from the 2009 low being the prime example). This one may test our patience a bit more.
by ge1
Wed Jan 20, 2016 10:38 am
Forum: Investing - Help with Personal Investments
Topic: Cash-on-the-sidelines thread
Replies: 39
Views: 4767

Re: Cash-on-the-sidelines thread

dbr, Toons

In my initial post I made it clear that I don't claim this to be a superior strategy. Everybody has to do though what they feel comfortable with and for myself that meant to underweigh my allocation to US stocks due to valuation concerns.
by ge1
Wed Jan 20, 2016 9:56 am
Forum: Investing - Help with Personal Investments
Topic: Cash-on-the-sidelines thread
Replies: 39
Views: 4767

Re: Cash-on-the-sidelines thread

The way the markets are going that cash will be invested sooner that I thought :-)
by ge1
Sun Jan 17, 2016 7:39 am
Forum: Investing - Theory, News & General
Topic: Does net worth and age determine % bond allocation?
Replies: 53
Views: 5753

Re: Does net worth and age determine % bond allocation?

I think about this quite a bit as well. I'm 45 and about 50/50 stocks/bonds as my need to take risk is much lower than someone with half my nest egg. At the same time, this creates a conundrum: once you have enough where you don't have the NEED to take risk, it gives you greater ABILITY to take ris...
by ge1
Fri Jan 15, 2016 4:22 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 2900
Views: 605230

Re: U.S. stocks in freefall

Down about $90,000 this month so far. Dumped $3K yesterday into my wife's IRA because money I budgeted for something else became available. Would have put more into her IRA today but my pay check deposit was a tad late so Schwab won't let me buy. I hate it when there is a sale going on and I don't ...

Go to advanced search