Search found 814 matches

by ge1
Sat Mar 02, 2024 11:33 am
Forum: Personal Investments
Topic: does asset allocation shift when total portfolio is high?
Replies: 16
Views: 2021

Re: does asset allocation shift when total portfolio is high?

As others said, totally up to personal preference. I significantly de-risked our portfolio once I realized we will achieve our retirements goals with a low allocation to equities. With corporate bonds paying 6% or more I simply don’t need equities. Right now we have a probably 75% of our portfolio in cash & bonds. I also think - and I know most on this forum disagree with this approach - that stocks are overvalued and I’m not sure I would even earn 6% a year over the next 10 years investing at these levels - so combining “low need to take risk” and “I think stock market is overvalued” leads to our low allocation to stocks. The important question is “What if I’m wrong?”. If I’m wrong and equities have another decade of 10%+ annual return...
by ge1
Sat Mar 02, 2024 11:21 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900112

Re: What are you up YTD? [Year To Date]

Up 1.1% / 55k. I take it. Very conservative portfolio, low need to take risk.
by ge1
Sat Mar 02, 2024 5:29 am
Forum: Investing - Theory, News & General
Topic: The recent surge: stand pat or "sell high?"
Replies: 54
Views: 6440

Re: The recent surge: stand pat or "sell high?"

It’s a bubble. Reduce equities significantly , shift to bonds as long as rates are high. Recession later this year, go back into equities once market has dropped 30% as typical in a recession. Fed will have to cut rates aggressively which will boost your bonds.

Anything else I can help with?
by ge1
Tue Feb 27, 2024 7:05 pm
Forum: Personal Investments
Topic: Feel like I won the "game" at 41---Thoughts on Future Asset Allocation
Replies: 21
Views: 3934

Re: Feel like I won the "game" at 41---Thoughts on Future Asset Allocation

If you won the game, no need to invest more in equities. We are in a similar position even though not quite at 50x and we have approx 60% in cash and bonds and 40% in equities and alternatives. Especially now, where you can buy investment grade bonds yielding 6%.
by ge1
Tue Feb 27, 2024 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: When did your Net Worth surpass your lifetime earnings?
Replies: 93
Views: 11641

Re: When did your Net Worth surpass your lifetime earnings?

I’m impressed net worth for anyone would exceed lifetime earnings.
by ge1
Thu Feb 22, 2024 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: High Salary (>$500,000) careers
Replies: 244
Views: 28594

Re: High Salary (>$500,000) careers

CFO mid-size company. $700k.

I was doing general FP&A stuff in a mega corp years ago when I noticed that the accountants were a) paid very well and b) not very smart and certainly not very client friendly. Decided to do my CPA (went to school overseas but had enough credits). Fast forward a few years and was approached for a CAO job with a small public company. Required relocation and change in industry but doubled my comp.

Now CFO of a private company.

Getting that CPA was the best thing I ever did.
by ge1
Wed Feb 21, 2024 5:12 am
Forum: Investing - Theory, News & General
Topic: Meredith Whitney makes a bold prediction regarding the housing market
Replies: 19
Views: 3910

Re: Meredith Whitney makes a bold prediction regarding the housing market

nisiprius wrote: Tue Feb 20, 2024 6:31 am For any who don't remember (lines are performance of a short- and a long-term municipal bond fund):

Image

As always, if you weren't paying attention at the time, it is hard to believe just how seriously her words were taken. More than one forum member reported that they had taken action in their portfolio based on this prediction.

indicating both a number and a time frame, now that was bold.
Priceless.
by ge1
Tue Feb 20, 2024 12:40 pm
Forum: Personal Consumer Issues
Topic: Yahoo email - spam emails out of control
Replies: 14
Views: 1702

Re: Yahoo email - spam emails out of control

I think I found my solution: Rather than trying to filter all my spam into trash, going forward I'll filter emails from known contacts into a separate "new inbox". That way my normal "inbox" becomes my spam folder and I only read stuff I want to read in my "new inbox". A bit like only answering phone calls from people I know.
by ge1
Sun Feb 18, 2024 9:17 am
Forum: Personal Consumer Issues
Topic: Yahoo email - spam emails out of control
Replies: 14
Views: 1702

Re: Yahoo email - spam emails out of control

Thanks. I had my yahoo email since the beginning of time lol, so sort of a big deal changing it, everyone (clearly!) has it. But will seriously consider changing to a new one.

I‘m still interested to hear if anyone is using a 3rd party service to help with this?
by ge1
Sun Feb 18, 2024 8:01 am
Forum: Personal Consumer Issues
Topic: Yahoo email - spam emails out of control
Replies: 14
Views: 1702

Yahoo email - spam emails out of control

The number of spam emails in my yahoo email are out of control. I used up all the automatic filter rules (I think you can set up 300 of them) and blocking senders doesn't do anything. Can anyone recommend a 3rd party service that helps reduce the # of spam emails? I looked briefly at Clean Email but haven't pulled the trigger yet.
by ge1
Wed Feb 14, 2024 6:18 am
Forum: Personal Investments
Topic: Annualized vs Cumulative Return
Replies: 13
Views: 1789

Re: Annualized vs Cumulative Return

On this topic, I only recently realized that Vanguard in the performance section of their ETF and Mutual Fund info displays average annual returns - which as others said is really "garbage" and overstates the actual performance by maybe 1.0% per year (depending on volatility).

I always use CAGR to for my portfolio and to see how benchmarks are doing.
by ge1
Wed Feb 14, 2024 4:46 am
Forum: Personal Investments
Topic: Should I quit or slog through
Replies: 62
Views: 7576

Re: Should I quit or slog through

The real question is, why do you feel so uninterested in your job? And what exactly would you do once you stopped your job to make your life more interesting? Until you have that figured out, stay in the current job.
by ge1
Sun Feb 11, 2024 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: What is your HSA strategy?
Replies: 52
Views: 6641

Re: What is your HSA strategy?

We had a HSA for maybe 5 years. I keep track of out medical expenses, but given the massive tax advantages I don’t tap into the HSA now. Up to 85k balance now, cumulative medical spend is probably around 60k.( Don’t really understand all the comments about how hard it is to keep receipts lol)
by ge1
Tue Feb 06, 2024 12:56 am
Forum: Personal Finance (Not Investing)
Topic: How did you decide your comfortable annual expense?
Replies: 40
Views: 3604

Re: How did you decide your comfortable annual expense?

I read your income information in more detail, looks like in 2023 with a gross income of 488k you managed to save 230k (which is great), spend 160k and paid 98k in taxes (seems a bit low, I assume no state taxes). Your net worth is already 2.4m, which is also excellent at your age. On the face of it, Person 2 could easily go to 50%, which would bring the expected gross income still to the same level as 490k and you could equally easily say increase spending by 40k per year - and you would still be saving almost 200k - which is outstanding. A few other considerations though - Person 2 just changed into the much higher earning job - seems a bit odd you both want to now decrease that? Why make the change in the first place? - How safe is Perso...
by ge1
Mon Feb 05, 2024 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: How did you decide your comfortable annual expense?
Replies: 40
Views: 3604

Re: How did you decide your comfortable annual expense?

In our 30s and 40s, we just made sure we felt comfortable with how much we saved given our incomes. We were lucky to have a high combined income, so we didn‘t have to restrict ourselves in our to save enough (typically 1/3 tax, 1/3 expenses, 1/3 savings).

Now (in our 50s), we are down to 1 income (mine), still earning well, but no longer need to save anything, so expenses +/- equal our income.
by ge1
Mon Jan 15, 2024 3:58 pm
Forum: Personal Investments
Topic: Analysis paralysis on 529
Replies: 40
Views: 3106

Re: Analysis paralysis on 529

OP, Why do you need to save for the college education? At your income level, the answer is no. A) If you save enough, your annual savings is big enough to pay for the college education. B) If you do not save enough, you cannot afford to pay for the college education. So, why do you need to save for the college education? "Using savings/taxable account means paying 15-20% federal and additional state tax. " Why is the statement correct? Your annual saving should be big enough to pay for the college education over 4 to 5 years. Where is the additional taxes? If you do not save enough to pay for the college education annually, why do you think you can afford to pay for the college education? What is your annual savings/investment? W...
by ge1
Mon Jan 15, 2024 3:22 pm
Forum: Personal Investments
Topic: Analysis paralysis on 529
Replies: 40
Views: 3106

Re: Analysis paralysis on 529

What is giving you pause?

At your income level you should absolutely fund the 529s, the ability to have the funds grow free of capital gains tax is very powerful.

I'll give you an example: We put 25k in my daughter's 529 over a few years right after she was born - she is now 14 and that 529 is worth over 70k.
by ge1
Thu Jan 11, 2024 8:28 pm
Forum: Personal Investments
Topic: Solo 401k as a sole proprietor
Replies: 28
Views: 2886

Re: Solo 401k as a sole proprietor

lakpr wrote: Thu Jan 11, 2024 6:48 pm
ge1 wrote: Thu Jan 11, 2024 5:33 pm We set up the Solo 401k for my wife with Fidelity a few years ago - super easy, love all the brokerage options.
As another poster pointed out, you will not be able to make Roth contributions as an employee with the Fidelity plan [unless something changed since last year]. Just saying ... it may not ever become an issue for you, but a bit of flexibility in the type of employee contributions would be nice.
Yes, won’t be an issue for us, but good to know.

We have accounts with Vanguard as well, but Fidelity is a lot better.
by ge1
Thu Jan 11, 2024 5:33 pm
Forum: Personal Investments
Topic: Solo 401k as a sole proprietor
Replies: 28
Views: 2886

Re: Solo 401k as a sole proprietor

We set up the Solo 401k for my wife with Fidelity a few years ago - super easy, love all the brokerage options.
by ge1
Mon Jan 08, 2024 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: How did you find your dream job?
Replies: 79
Views: 23719

Re: How did you find your dream job?

I received some excellent advise in my 20s: Rather than follow my “passion”, I should focus on what comes easy to me. That way, there is an excellent chance I become very competent in my field which again means I will likely make good $. Which is pretty much exactly what happened.
by ge1
Thu Jan 04, 2024 2:46 pm
Forum: Investing - Theory, News & General
Topic: To those of you who slice and dice your bond allocation, what do you like other than BND?
Replies: 55
Views: 15947

Re: To those of you who slice and dice your bond allocation, what do you like other than BND?

I hold LQD (investment grade bond fund ETF) in my 401k. Only corporate bonds, so higher yield than BND.

I also hold individual corporate bonds until maturity in my 401k but you have to do your research.
by ge1
Thu Jan 04, 2024 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on family budget
Replies: 77
Views: 10826

Re: Thoughts on family budget

You won't find a lot of support here spending 20k per month :D

You are saving 150k per year which is great - do you think it should be more? If so, why?

We have spent consistenly more than 20k per month over many years but at the same time we were saving 200k+ every year as well in our late 30s/40s. We are now (early 50s) at a point where we spend closer to 25k per month and the combined income is lower so we hardly save anything, but given our net worth we no longer need to save and it's a conscious choice (kids have expensive hobbies, typically flying business for travel etc).

The only thing that stuck out to me were the car leases, that makes no sense to me given you can easily buy the cars.
by ge1
Sun Dec 31, 2023 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: At what net worth did you start not sweating the "small stuff"
Replies: 137
Views: 27118

Re: At what net worth did you start not sweating the "small stuff"

If something is wrong I’ll point it out, however in my head I also have a concept how much my time is worth.

To give a specific example: I bought a fridge and dishwasher recently at Lowe’s, total 4K. When checking out the woman at the counter made an error how she applied the various rebates which probably cost me $75 or so. So I could either have her cancel everything and start again - or just let it go. I told her not to worry about it, just not worth the hassle.

The same principle applies when I receive random requests for paid surveys and stuff like that. Unless it pays around $300 per hour, it’s not worth it.

That doesn’t mean though I will let everything go, just how much time I’m willing to invest vs $ benefit.
by ge1
Sun Dec 31, 2023 3:44 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 4273
Views: 1072326

Re: Share your net worth progression

ge1 wrote: Wed Nov 27, 2019 12:05 pm Started tracking in 2004:

2004: 508k
2005: 675k
2006: 929k
2007: 1.210m
2008: 1.485m
2009: 1.768m
2010: 2.084m
2011: 2.474m
2012: 2.626m
2013: 2.716m
2014: 2.942m
2015: 2.971m
2016: 3.275m
2017: 3.763m
2018: 3.958m
2019: 4.540m
2020: 5.423m
2021: 6.627m (generous severance package)
2022: 6.684m
2023: 7.174m
by ge1
Sat Dec 30, 2023 4:29 pm
Forum: Personal Investments
Topic: 2023 was a retired investor's dream
Replies: 41
Views: 6363

Re: 2023 was a retired investor's dream

It’s nice to see a healthy return at year-end - but I would have much preferred for stocks to remain lower and bonds yields higher, allowing me to keep investing a very nice entry points. Hard to get excited to invest in stocks with the S&P near record levels.
by ge1
Thu Dec 28, 2023 6:44 pm
Forum: Personal Consumer Issues
Topic: How much to spend on single vacation?
Replies: 108
Views: 24944

Re: How much to spend on single vacation?

We spent more than this for a family of 3 this summer for a 7 day vacation and it never occurred to me to ask for permission here… :wink:
by ge1
Thu Dec 28, 2023 6:04 pm
Forum: Investing - Theory, News & General
Topic: Am I the only investor allocating more towards Bonds in 2024?
Replies: 149
Views: 30600

Re: Am I the only investor allocating more towards Bonds in 2024?

carminered2019 wrote: Thu Dec 28, 2023 5:48 pm
watchnerd wrote: Thu Dec 28, 2023 5:45 pm
carminered2019 wrote: Thu Dec 28, 2023 5:43 pm
watchnerd wrote: Thu Dec 28, 2023 5:23 pm
carminered2019 wrote: Thu Dec 28, 2023 4:13 pm I am up 13X this year so yes, I will sale stocks and put more in FI Jan 2024.
What did you buy that gave 13x YTD?
I bought Total US market but more like market timing and dumped all total bond to put in Total US market June 2022. I know the word "timing the market" is not popular around here but I have done it couple times in my life or you can call it "over re-balancing"
Okay, but how does that give you 13X returns?

Total US market hasn't increased 1300% since June 2022.
I am up little over 850K YTD with no new contribution and my spending is 65K a year.
Instant classic.
by ge1
Thu Dec 28, 2023 6:03 pm
Forum: Investing - Theory, News & General
Topic: Am I the only investor allocating more towards Bonds in 2024?
Replies: 149
Views: 30600

Re: Am I the only investor allocating more towards Bonds in 2024?

Probably not. I did however increase my allocation to bonds very significantly in 2023.
by ge1
Sat Dec 16, 2023 9:39 pm
Forum: Investing - Theory, News & General
Topic: Winning the game and Dry Powder
Replies: 157
Views: 25982

Re: Winning the game and Dry Powder

TheTimeLord wrote: Sat Dec 16, 2023 9:05 am Once you have "Won the game" does the concept of keeping some "Dry Powder" for opportunistic investing become relevant?
Yes.

We won the game and have a low need to take risk. I keep a lot of cash on hand and invest when opportunities present themselves (e.g., spring 2020 for equities or this summer for bonds). I couldn’t care less if I’m only making 5% when the market earns 15%. It does enable me however to sidestep steep declines like 2022 when our portfolio was up over 3% and a 60/40 portfolio was down double digits.
by ge1
Wed Dec 13, 2023 4:16 am
Forum: Personal Investments
Topic: 50 year old.just got laid off-Need advise Bogleheads!
Replies: 94
Views: 13375

Re: 50 year old.just got laid off-Need advise Bogleheads!

First of all, sorry to hear that, being laid off sucks, no matter how much your net worth is. As others pointed out, in your shoes I would get rid off that rental asap, that makes no sense financially at all. Unless the rental is a place you wanted to move the family to - but I‘ll make a wild guess and think the family wouldn‘t be thrilled to move from the 3.7m mansion into the rental :D I don‘t think anyone has asked this yet, but what is your wife‘s view on all of this? Would she be ok with you not working for a prolonged period of time or early retire? Would she be ok downsizing from the primary house? How much longer does she want to work? You got some time, but think very seriously about your housing situation. For my own liking, a 3.7...
by ge1
Tue Dec 12, 2023 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Job negotiation final stages (multiple offers)
Replies: 18
Views: 3262

Re: Job negotiation final stages (multiple offers)

I'm always specific with numbers when talking to recruiters, otherwise I find it's a waste of everyone's time. It varies by case but typically I tell them

- This is +/- where I am right now
- I would need at least X to even consider the offer

And then see what happens. If an offer comes in below X, case closed. If an offer comes in right around X and I have competing offers, it's more a question which job I think would be a better fit in the long run. The key is to be honest with yourself and not "playing games", i.e. don't communicate a minimum number you need however you'd be happy to settle for 10% less etc.
by ge1
Mon Dec 11, 2023 7:22 am
Forum: Personal Investments
Topic: Lower bond percentage after you won the game?
Replies: 112
Views: 21805

Re: Lower bond percentage after you won the game?

I am in a similar situation age and money wise it seems. Our net worth is 7m with investable assets of 5m, no debt. Early 50s, plan to work at least another 5 years. I'm doing the exact opposite :D Given we "won" the game I don't see the need to "maximize" return, my goal is to achieve a "decent" return while not exposing myself to unnecessary market riks. The increase in interest rates over the last 18 months with the associated higher expected returns from bonds made me dramatically increase my allocation to bonds. We now have 3m in bonds & cash investments. My ability to take risk is high (went through the 2008 crisis with no issues) - I just don't see the need for it. But as many have said: Very much de...
by ge1
Mon Dec 11, 2023 5:25 am
Forum: Investing - Theory, News & General
Topic: Fundrise - Real Estate
Replies: 161
Views: 26297

Re: Fundrise - Real Estate

When comparing to the Blackstone Mortgage Trust (BXMT), I don‘t like the fact that BXMT has a 25% exposure to Offices (Fundrise has 0%). Also the vintage of the loans is different, Fundrise created this fund this year to take advantage of this specific market opportunity. CRE loans made 2 or 3 years ago are a LOT less save than the ones made now. You also mentioned some of the big Multifamily players like Equity Residential (EQR) and I agreed in an earlier post that if one wanted exposure to real estate (and not private lending) then the public REITs are probably a better opportunity than private REITs due to the markdowns already taken. Since you say you work in RE, and given your comment on public v. private REITs, I'm curious, which one...
by ge1
Mon Dec 11, 2023 5:20 am
Forum: Personal Investments
Topic: How much are you down\up from the top set in 2021?
Replies: 79
Views: 11946

Re: How much are you down\up from the top set in 2021?

Up 450-500k or so. This is all gains, no net contributions in the last 2 years.
by ge1
Wed Dec 06, 2023 4:07 pm
Forum: Investing - Theory, News & General
Topic: Bond yields of 1% mean that 60/40-type allocations are off for almost everyone?
Replies: 132
Views: 15263

Re: Bond yields of 1% mean that 60/40-type allocations are off for almost everyone?

garlandwhizzer wrote: Wed Dec 06, 2023 2:54 pm
watchnerd wrote:

It was a triumph of dogma over common sense.
1+

Such triumphs are quite common.

Garland Whizzer
Love that quote.

Every now and then common sense just tells you certain things:
- Probably not a bad time to invest in the S&P in March of 2009 when the S&P was in the 600s
- Buying a bond fund with a duration of 6-7 years when the YTM was 2% or whatever it was is - probably not a good idea
- Buying investment grade rated bonds back in October this year yielding over 8% - probably a good thing
- Buying a Bored Ape NFT for 3.4m - most definitely dumb :D
by ge1
Tue Dec 05, 2023 4:05 pm
Forum: Personal Investments
Topic: lock in 5.35% for 3 years on fixed equity ?
Replies: 26
Views: 3692

Re: lock in 5.35% for 3 years on fixed equity ?

Not a bad option.

I’m investing in an investment grade bond ETF LQD in my retirement account, YTM is 5.5% and duration is 8 years. Should rates continue to decline the performance will be better but the opposite is obviously true as well.
by ge1
Sun Dec 03, 2023 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Would love input on our finances
Replies: 42
Views: 4851

Re: Would love input on our finances

The challenge is that you only have $240k in taxable accounts (including HSA, excluding 529) and you won’t be able to withdraw from the retirement accounts without penalty until age 59 1/2.

When would he start receiving his pension? But even if he is eligible to receive his pension once he retired, you need to fill a hole of approx 75k per year for several years and you only have $240k and your potential income against that. Downsizing would obviously help.

On the face of it, doesn’t sound like a good decision. Any year he can stick it out longer while your teenager is in High School would be hugely helpful.
by ge1
Sat Dec 02, 2023 9:33 pm
Forum: Investing - Theory, News & General
Topic: Has your portfolio recovered since Q1 2022?
Replies: 104
Views: 13277

Re: Has your portfolio recovered since Q1 2022?

pizzy wrote: Sat Dec 02, 2023 9:23 pm
ge1 wrote: Sat Dec 02, 2023 8:53 pm Yes, all time high in portfolio and all time high in cumulative gains. November was awesome :D

Portfolio was up 3.7% in 2022 and is up 7.7% 2023 YTD (performance, not including contributions).
Can you share your allocation from 2022?
It sounds nuts but we were 75% in cash at the end of 2021 as I thought bonds were ridiculously overvalued and stocks were very expensive as well. The rest was in alternatives (15%) and only 10% in bonds and stocks.

Don’t recommend this approach to anyone but it works for me.
by ge1
Sat Dec 02, 2023 9:27 pm
Forum: Investing - Theory, News & General
Topic: Has surviving stock market crash made you more resilient
Replies: 121
Views: 13478

Re: Has surviving stock market crash made you more resilient

We had no significant savings in 2000, so the GFC was the big one. It didn’t make me more resilient - but it confirmed a few things for me, i.e.

- I didn’t panic even though our “diversified” portfolio was down a cool -40% or so at some point
- When the sh*t hits the fan, diversification goes out of the window and everything other than US Treasuries crashes
- If your need to take risk is low, there is no need to be 60%, 70% or 80% in equities. We have since increased our allocation to cash and bonds significantly.
by ge1
Sat Dec 02, 2023 8:59 pm
Forum: Investing - Theory, News & General
Topic: I'm seeing wild SEC yield vs YTM discrepancies in bond funds
Replies: 21
Views: 2612

Re: I'm seeing wild SEC yield vs YTM discrepancies in bond funds

jeffyscott wrote: Sat Dec 02, 2023 4:32 pm ^ Price is up about 4.23% between the two dates, duration is about 6 years, so the estimated change in yield would be about 0.7%. That would make the current YTM about 4.9%.

There's no significant discrepancy, the YTM is from 10/31.
Yes, you’re right, thanks.
by ge1
Sat Dec 02, 2023 8:53 pm
Forum: Investing - Theory, News & General
Topic: Has your portfolio recovered since Q1 2022?
Replies: 104
Views: 13277

Re: Has your portfolio recovered since Q1 2022?

Yes, all time high in portfolio and all time high in cumulative gains. November was awesome :D

Portfolio was up 3.7% in 2022 and is up 7.7% 2023 YTD (performance, not including contributions).
by ge1
Sat Dec 02, 2023 8:29 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900112

Re: What are you up YTD? [Year To Date]

We are up 7.7% or 363k and I am very happy with that. I couldn’t care less what other people’s performance is, I only care about our own financial goals.

I trade a lot, but on average we probably had 30% in equities, 20% in cash, 40% in bonds and the rest in alternatives.

I do care how our performance compares to my benchmark portfolio of 30% US Stocks / 20 % Intl Stocks / 40 % bonds and 10% Cash, it’s helpful to measure the actual performance vs how one should performed based on the benchmark. We significantly outperformed the benchmark over the last 10 years, so I’m happy about that.
by ge1
Sat Dec 02, 2023 4:03 pm
Forum: Investing - Theory, News & General
Topic: I'm seeing wild SEC yield vs YTM discrepancies in bond funds
Replies: 21
Views: 2612

Re: I'm seeing wild SEC yield vs YTM discrepancies in bond funds

You’re right, something is wrong with the YTM for BND, it’s most definitely not 5.6%. From memory it was around 4.9% a few weeks ago before the recent run up in price.
by ge1
Tue Nov 28, 2023 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford this $2M house in bay area?
Replies: 67
Views: 8638

Re: Can I afford this $2M house in bay area?

If I were in your shoes, the main question is how much I'd still be saving (if anything) with the new house. Doing the numbers high level, with a 520k income and assuming 10% CA tax, your after tax income should be somewhere around 290-300k? Using 7% for your 1.5m mortgage, your interest expense is 105k, so you are left with 190k annually / 15-16k per month. How much are you spending excluding the mortgage? And how much do you want to save per year? Make sure to include appropriate maintenance on the bigger house now as well. We were always high spenders - but we always made sure that even with high spending we were still saving a lot as well. As long as that's the case, you're fine. Just don't count on house appreciation to make up for any...
by ge1
Tue Nov 07, 2023 4:23 pm
Forum: Investing - Theory, News & General
Topic: What is the role of fixed income to you?
Replies: 118
Views: 15989

Re: What is the role of fixed income to you?

At current rates and for the foreseeable future, it is the primary mechanism how I'll achieve my target return. Equity returns are just gravy on top.
by ge1
Mon Nov 06, 2023 4:06 am
Forum: Investing - Theory, News & General
Topic: Fundrise - Real Estate
Replies: 161
Views: 26297

Re: Fundrise - Real Estate

When comparing to the Blackstone Mortgage Trust (BXMT), I don‘t like the fact that BXMT has a 25% exposure to Offices (Fundrise has 0%). Also the vintage of the loans is different, Fundrise created this fund this year to take advantage of this specific market opportunity. CRE loans made 2 or 3 years ago are a LOT less save than the ones made now.

You also mentioned some of the big Multifamily players like Equity Residential (EQR) and I agreed in an earlier post that if one wanted exposure to real estate (and not private lending) then the public REITs are probably a better opportunity than private REITs due to the markdowns already taken.
by ge1
Sun Nov 05, 2023 6:48 pm
Forum: Investing - Theory, News & General
Topic: Fundrise - Real Estate
Replies: 161
Views: 26297

Re: Fundrise - Real Estate

Looks like it is 50% senior debt, 25% pref equity and the rest between asset back securities and direct investments in Mortgage REITs.

I didn‘t look into the other investments you mentioned, I‘m sure there are other good options out there. From what I have seen on the Real Estate side, Fundrise charges low management fees so I suspect their fees are lower compared to other managers but I did not verify that.
by ge1
Sun Nov 05, 2023 4:18 pm
Forum: Investing - Theory, News & General
Topic: Fundrise - Real Estate
Replies: 161
Views: 26297

Re: Fundrise - Real Estate

As stated before, I think Fundrise is an excellent platform. I have however shifted my Fundrise investments from Real Estate to debt and primarily to the Credit Opportunity Fund. The return expectations over the coming 2-3 years are simply not attractive for real estate investments in my opinion and some of the public REITs offer more attractive entry points as others have pointed out. My annualized return has been 8.4% since starting investing with them in early 2021. Hi ge1 - The Fundrise Credit Opportunity Fund has a required $100,000 minimum. Does it concern you or keep you up at night to have this amount of funds in an illiquid account with Fundrise? Best. Tony Hi Tony No it doesn’t. I have 250k total in the Opportunity Fund, but with...
by ge1
Sat Nov 04, 2023 6:48 pm
Forum: Investing - Theory, News & General
Topic: Fundrise - Real Estate
Replies: 161
Views: 26297

Re: Fundrise - Real Estate

As stated before, I think Fundrise is an excellent platform. I have however shifted my Fundrise investments from Real Estate to debt and primarily to the Credit Opportunity Fund. The return expectations over the coming 2-3 years are simply not attractive for real estate investments in my opinion and some of the public REITs offer more attractive entry points as others have pointed out.

My annualized return has been 8.4% since starting investing with them in early 2021.
by ge1
Sun Oct 29, 2023 6:13 pm
Forum: Investing - Theory, News & General
Topic: Fundrise - Real Estate
Replies: 161
Views: 26297

Re: Fundrise - Real Estate

I have been a Fundrise investor for maybe 3 years and I’m very happy. They charge a small management fee for their funds compared to similar structure and their CEO, Ben Miller, is very transparent in his communication. I love the fact that you can exit the Flagship fund quarterly with no penalties. When the performance was off the charts in 2021 they said very clearly that this was highly unusual and should not be expected going forward, I really appreciated that. Fwiw, I think their Credit Opportunity Fund is one of the very best solutions to get exposure to private credit. Is the Credit Opportunity Fund the Income Fund or a different investment? Are you in Fundrise Pro? Best. Tony It’s different. Just go to the Fundrise page and you’ll ...