Search found 247 matches

by mac808
Thu Jul 28, 2016 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Housing for newlyweds
Replies: 17
Views: 1358

Re: Housing for newlyweds

Rent. You're likely to get opportunities to move to increase your income, which renting gives you the flexibility to pursue. If you end up staying where you are, property prices will likely not appreciate much in Central Arkansas so you aren't risking missing the bottom of the market. Don't get suck...
by mac808
Thu Jul 28, 2016 11:10 am
Forum: Personal Finance (Not Investing)
Topic: How many folks choose to give inheritance to their children in unequal portions?
Replies: 185
Views: 14308

Re: How many folks choose to give inheritance to their children in unequal portions?

Might be a moot point because my wife is a lot younger than I am (17 years) and unless something unexpected happens she should outlive me by quite a few years, in which case she legally gets it all any way and will be the one to divide it up. This is a bad idea. How are your other kids going to fee...
by mac808
Sat Jul 23, 2016 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirees, at what age did you "retire"? Is it working out?
Replies: 57
Views: 7884

Re: Early retirees, at what age did you "retire"? Is it working out?

I was in tech and then retired in my mid 30s. I lasted less than a year before I got bored and went back to work on a part time basis. A job with autonomy, flexibility, and no direct reports is better than retirement.
by mac808
Sun Jul 17, 2016 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Early retiree: 3% SWR or 4% SWR for planning purposes?
Replies: 61
Views: 4806

Re: Early retiree: 3% SWR or 4% SWR for planning purposes?

I early retired from the tech field a little younger than you two. I used a 3% SWR. Looking at pre-ww2 and global data, I was just not comfortable with 4% and figured it was better to err on the conservative side. I have since gone back to work part time for non financial reasons (easier to do in te...
by mac808
Sun Jul 17, 2016 3:53 pm
Forum: Investing - Theory, News & General
Topic: Investing in E sports
Replies: 7
Views: 621

Re: Investing in E sports

Almost all esports companies are still private startups. I have invested in a couple as an angel investor. Twitch was the largest and was acquired by Amazon for around a billion dollars. I don't particularly play video games myself but based on the engagement and growth #s I've seen I think esports ...
by mac808
Fri Jul 15, 2016 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Leaving money as a legacy after death
Replies: 15
Views: 1060

Re: Leaving money as a legacy after death

I've worked with a lot of charities and many of them are scams. Even some of the best run are really just lifestyle businesses for the managers who take over. I encourage folks to find the decent people in their lives and help them out directly.
by mac808
Wed Jul 13, 2016 1:43 pm
Forum: Investing - Theory, News & General
Topic: Yahoo Finance redesign
Replies: 42
Views: 3799

Yahoo Finance redesign

I've been a finance.yahoo.com user for more than a decade but this new redesign they launched has totally screwed the site up for me. I'm looking for a new finance site to make my home page. Any wisdom from the crowd on what folks like using?
by mac808
Sat Jul 09, 2016 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Fund Kid
Replies: 63
Views: 5741

Re: Trust Fund Kid

He could be a thoughtful kid productively using this windfall to pause the treadmill and search for his true passion in life. But I'm assuming that based on what you know you fear the opposite. The devil is in the details. Help him understand that a 23 year old's SWR is likely around 3% (ignoring tr...
by mac808
Thu Jun 23, 2016 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Very tough career choice (ego, startup, San Francisco Bay Area)
Replies: 52
Views: 5465

Re: Very tough career choice (ego, startup, San Francisco Bay Area)

Read all the great professional career advice people posted because this seems like more of a career decision than a purely financial transaction decision. That said, presumably the company has risen in value between when you were granted stock and today. If so, then if you do end up deciding to lea...
by mac808
Thu Jun 23, 2016 10:21 am
Forum: Investing - Theory, News & General
Topic: Are you prepared for a high-inflation environment?
Replies: 12
Views: 1295

Re: Are you prepared for a high-inflation environment?

As Valuethinker said there are profound deflationary forces at work due to demographics and technology. Think about the move to ride sharing (Uber) and the next move to autonomous vehicles. Ride sharing has decreased the need for urban residents to own a car. Autonomous vehicles will decrease the co...
by mac808
Thu Jun 23, 2016 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Home Upgrade (Bay Area)
Replies: 19
Views: 1721

Re: Home Upgrade (Bay Area)

This doesn't account for the interest being tax deductible (first $1,100,000). At least one of the major political parties is pushing to limit itemized deductions to the 28% rate (in place of current marginal rate) and home interest specifically to a cap of interest on a $500k loan balance at that ...
by mac808
Fri Jun 17, 2016 12:50 pm
Forum: Investing - Theory, News & General
Topic: 50% Market Drops
Replies: 67
Views: 6359

Re: 50% Market Drops

Keep in mind that ''it's all relative'' - if/when the market drops 50%, a lot of things you might want to buy become a lot cheaper. Housing, cars, furniture, art, travel, activities and so on. Although I much prefer my 2016 portfolio balance I do miss 2010 sometimes because so many interesting asset...
by mac808
Fri Jun 10, 2016 6:12 pm
Forum: Investing - Theory, News & General
Topic: Betting Against Brexit- What's the Trade?
Replies: 11
Views: 1198

Re: Betting Against Brexit- What's the Trade?

You could play the options market but I haven't found any European indices with great liquidity so you'll get eaten by fees at small volume. The simplest binary bet is the one you mention in your own post which is to visit the bookies. If you can't get to London then I'll take the other side of that...
by mac808
Tue Jun 07, 2016 4:24 pm
Forum: Investing - Theory, News & General
Topic: At what point do we market time?
Replies: 87
Views: 5921

Re: At what point do we market time?

Is there a point where it would simply make sense to time the market? For example, if US stocks are trading at a PE of 150 (and have been at a high PE of 150+ for over a year, slowly declining) and bonds are yielding 8%, with inflation at 3%, would it not make absolute sense to sell the stocks and ...
by mac808
Tue Jun 07, 2016 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: The Goldilocks Theory of Being Rich
Replies: 31
Views: 4067

Re: The Goldilocks Theory of Being Rich

Like Ben I knew people well who had nothing and then went on to become successful near billionaire tech founders. In my experience they were actually much happier people before the money and the fame. I would never have believed it if I hadn't seen it with my own eyes.
by mac808
Mon Jun 06, 2016 11:31 am
Forum: Investing - Theory, News & General
Topic: "Negative interest rates: What they are and what they mean."
Replies: 10
Views: 1615

Re: "Negative interest rates: What they are and what they mean."

They are a precursor to sovereign debt monetization. There's something historical and significant afoot. Watch what happens in Japan over the next couple years as their central bank buys up all their bonds from private investors.
by mac808
Fri May 27, 2016 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Does the $5.45M exemption from estate taxes change your estate planning
Replies: 36
Views: 3302

Re: Does the $5.45M exemption from estate taxes change your estate planning

As bsteiner alluded to I think there's a better-than-even chance that the $5.45m exemption will be lowered, and the tax % raised, in the next decade (imo, regardless of who is in charge). I operate under the assumption that we'll end up with ~ 50% tax above $3m. This has prompted me to encourage som...
by mac808
Wed May 25, 2016 11:44 am
Forum: Investing - Help with Personal Investments
Topic: Selling VTI Covered Calls
Replies: 30
Views: 1936

Re: Selling VTI Covered Calls

I look at deep ITM covered calls as somewhat equivalent to fresh powder sitting on the sidelines waiting for a buy limit order to execute as the market falls. If you don't mind owning and holding the stock for the long term, then it makes sense to me. But then again most of the people I know who hav...
by mac808
Wed May 25, 2016 10:00 am
Forum: Investing - Theory, News & General
Topic: This Bull Seems to be Getting Pretty Long In the Tooth
Replies: 76
Views: 7239

Re: This Bull Seems to be Getting Pretty Long In the Tooth

Interesting article from this am:

http://finance.yahoo.com/news/siegel-we ... 06040.html

Who knows what will happen, but a lot in there rings true for me.
by mac808
Tue May 24, 2016 11:25 am
Forum: Investing - Help with Personal Investments
Topic: Advice for a soon-to-be MLB draftee
Replies: 48
Views: 6003

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

I'm not very athletic but I lived through a similar experience with a few friends when our tech startup was acquired for a nice chunk of change (low 7 figures each). The single most important piece of advice I'd give him is to forget the money exists for 10 years and then start withdrawing 4% (or ch...
by mac808
Mon May 23, 2016 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: 62 later this year... social security?
Replies: 28
Views: 2265

Re: 62 later this year... social security?

How's your health and family longevity? Do you care about leaving an estate for anyone?
by mac808
Fri May 20, 2016 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Pride in no inheritance to kids?
Replies: 233
Views: 1590

Re: Pride in no inheritance to kids?

I attended a small private high school with under 100 kids in the class. The families of this school were very wealthy. ~10 of my classmates were children of Forbes billionaires and the majority were either from generational wealth or entrepreneurial parents who had made well into 8 figures of wealt...
by mac808
Thu May 19, 2016 4:10 pm
Forum: Investing - Theory, News & General
Topic: What % do you have in alternatives? REITs, commodities, etc.)
Replies: 67
Views: 4026

Re: What % do you have in alternatives? REITs, commodities, etc.)

I have a meaningful % in REITs (~ 20%) tilted towards residential apartment owners, in what would otherwise be a 4-fund lazy portfolio. My personal long-term investment thesis is that the % of disposable income dedicated to housing (esp in built out urban areas) will continue to increase, fueled by ...
by mac808
Thu May 19, 2016 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Special Considerations for High Net Worth? Advisor?
Replies: 40
Views: 2675

Re: Special Considerations for High Net Worth? Advisor?

I'm curious what kind of profession would fit the original description provided. The two I can think of (outside of finance) are professional athlete or neurosurgeon. Yet another reflection on the diversity and high quality of this forum's members. To the OP, I have a low eight figure portfolio and ...
by mac808
Wed May 18, 2016 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Is it common for a step mother to inherit everything?
Replies: 105
Views: 8515

Re: Is it common for a step mother to inherit everything?

Having friends who are kids from first marriages as well as spouses in second marriages I have sympathy for both sides of this argument. I will just say that from what I've seen, second marriages with kids from a first marriage can be one of the most emotionally chaotic and destructive events in the...
by mac808
Sat May 14, 2016 11:27 pm
Forum: Personal Finance (Not Investing)
Topic: How to divide up profit on jointly owned house
Replies: 9
Views: 1237

Re: How to divide up profit on jointly owned house

I would agree that the IRS is not likely to care how the net proceeds from the sale are split between the two owners, and how the net proceeds are split will determine how much gain each owner realizes, based on each owner's basis in the property. You'll have wait at least one more year before sell...
by mac808
Sat May 14, 2016 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: How to divide up profit on jointly owned house
Replies: 9
Views: 1237

Re: How to divide up profit on jointly owned house

No mortgage, he put down 1/3rd and I put down 2/3rds. He paid the taxes and maintenance costs, although it wasn't much. The net gain will be <$250k (so under the cap gains exclusion limit as he is single). He is a totally non-materialistic artist type and doesn't care about the $ one way or the othe...
by mac808
Sat May 14, 2016 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: How to divide up profit on jointly owned house
Replies: 9
Views: 1237

How to divide up profit on jointly owned house

I intend to ask my CPA this question but often times this forum is helpful for ''knowing what questions to ask'' the professionals or coming up with other ideas. I helped my brother buy a house a year ago. He lived in the house as his primary residence and fixed it up here and there along the way. W...
by mac808
Thu May 05, 2016 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: High Earners - What's Your Profession?
Replies: 560
Views: 65863

Re: High Earners - What's Your Profession?

I find medicine a fascinating field in that the more rural and disconnected you are willing to live, the more you (usually) make, whereas people who choose to live in the expensive urban areas (usually) take a huge pay cut in return. It's like the exact opposite of every other profession I can think...
by mac808
Fri Apr 29, 2016 12:17 am
Forum: Investing - Theory, News & General
Topic: LendingClub/P2P the next subprime credit debacle?
Replies: 44
Views: 5017

Re: LendingClub/P2P the next subprime credit debacle?

My understanding is that LendingClub functions similar to a credit card company, say American Express or Capital One. They find and vet borrowers, and on the back end, instead of investing their own capital and earning a return on it, they bring in outside investors and take a cut. Since the whole p...
by mac808
Wed Apr 27, 2016 11:32 am
Forum: Investing - Theory, News & General
Topic: Why Are Real Interest Rates So Low Worldwide?
Replies: 87
Views: 9298

Re: Why Are Real Interest Rates So Low Worldwide?

So if a Central Bank is "credible" markets believe, eventually, that it will reign in this inflation creating money out there . And so they act as if any rise in money supply and inflation is only temporary . Taking a simplified UK case in 2007 we had around Ā£500B of debt, QE after 2008 r...
by mac808
Tue Apr 26, 2016 10:57 pm
Forum: Personal Finance (Not Investing)
Topic: Physician Specialists Looking for career advice
Replies: 42
Views: 5028

Re: Physician Specialists Looking for career advice

I think this really depends on the specialty. Other specialties (particularly surgical sub-specialists as well as gastroenterologists) can still make it in private practice. (Although I strongly suggest against trying to go into solo practice for just about any specialty outside of pure aesthetics....
by mac808
Tue Apr 26, 2016 11:26 am
Forum: Investing - Theory, News & General
Topic: Why Are Real Interest Rates So Low Worldwide?
Replies: 87
Views: 9298

Re: Why Are Real Interest Rates So Low Worldwide?

It's interesting being a participant in this great ongoing economic experiment that is ZIRP. One observation I've had is that ZIRP screams to people, ''maximize your human capital'' because returns on financial capital are so low. This results in a natural tendency to want to invest in yourself, fin...
by mac808
Mon Apr 25, 2016 12:04 am
Forum: Personal Finance (Not Investing)
Topic: Relocating to a tax free state with good weather need advice
Replies: 97
Views: 8752

Re: Relocating to a tax free state with good weather need advice

I think Las Vegas is the #1 underrated destination for retirees. As Vegas' focus shifts away from gambling towards entertainment I expect the population to boom. A trickle of retirees from SoCal can fast become a flood. Re: Texas, keep in mind that higher property taxes act as an anchor to keep pric...
by mac808
Tue Apr 05, 2016 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: Safe withdrawal rate with zero growth
Replies: 38
Views: 3148

Re: Safe withdrawal rate with zero growth

Here you go: https://www.bogleheads.org/forum/viewtopic.php?t=188332 Reading through that reminds me how supportive the tax code is for families wanting to retire early in the $150k/year ($4-5m in assets or equivalent) range. I understand the economics and tax policies behind it but it's still incr...
by mac808
Tue Apr 05, 2016 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Safe withdrawal rate with zero growth
Replies: 38
Views: 3148

Re: Safe withdrawal rate with zero growth

There was also an interesting thread yesterday about how you pay very little taxes in $150k ish of dividend and LTCG income. Do you have a link or remember the subject line? I couldn't figure out which thread you were talking about. Here you go: https://www.bogleheads.org/forum/viewtopic.php?t=1883...
by mac808
Tue Apr 05, 2016 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Safe withdrawal rate with zero growth
Replies: 38
Views: 3148

Re: Safe withdrawal rate with zero growth

Keep in mind it's all relative. If returns are that low for that long then a lot of problems will occur - pension funds will start to fail and benefits will be cut, home prices will decline, etc. I care less about my absolute level of wealth and more about my relative level of wealth, relative to th...
by mac808
Mon Apr 04, 2016 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: Couple needs some good advice from Bogleheads
Replies: 30
Views: 3090

Re: Couple needs some good advice from Bogleheads

When/if the market declines you might panic and decide not to invest then, either. Just dollar cost average 10% of your cash (+ new savings) into your desired equities/fixed income asset allocation mix on the 1st of the month over the next 10 months. Don't second guess it. I've been where you are an...
by mac808
Fri Apr 01, 2016 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts On Preserving An Inheritance
Replies: 22
Views: 1989

Re: Thoughts On Preserving An Inheritance

Set up a perpetual dynastic trust that gives you 3.5% (+ .5% admin fees for a 4% SWR) per year in income. Upon your demise, your kids inherit the right to that income. Upon your kids' demise, your grandkids inherit, and so on and so forth until the end of capitalism. I know a family that set it up t...
by mac808
Wed Mar 30, 2016 12:00 am
Forum: Investing - Help with Personal Investments
Topic: Small business owner with Merrill has regrets
Replies: 13
Views: 1704

Re: Small business owner with Merrill has regrets

You might be a good candidate for fee-only asset management services, where you pay somebody an hourly fee to help you whenever needed. It would certainly come out to less than you are paying now. I'm always surprised when I see 1.5% commission plus high ER funds. In a world of possible 3% real retu...
by mac808
Mon Mar 21, 2016 11:11 am
Forum: Investing - Theory, News & General
Topic: How have your homes as investments done?
Replies: 154
Views: 11847

Re: How have your homes as investments done?

My aunts and uncles all live in California and almost all of them made more money from real estate appreciation than from their w2 income over their working years. This phenomenon seems unlikely to reoccur and sometime I wonder how that will affect the future. When comparing returns to the stock mar...
by mac808
Sun Mar 20, 2016 1:52 am
Forum: Personal Consumer Issues
Topic: Importance of parental involvement in education.
Replies: 31
Views: 2654

Re: Importance of parental involvement in education.

Bite the bullet and pay for private school. Peers matter as much as parents. Make sure they spend their time in a culture that encourages learning, ambition, and success.
by mac808
Mon Mar 14, 2016 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: 28 year old, $6mm, how to retire?
Replies: 71
Views: 14202

Re: 28 year old, $6mm, how to retire?

I was in your exact situation at 28. You learn pretty quickly that there are two different Americas - one expensive, one cheap. It depends where you live. If you want to live a comfortable lifestyle in NYC, SF, or LA, and not work again, then $6m is probably not enough. There is so much extreme weal...
by mac808
Fri Mar 11, 2016 3:20 am
Forum: Personal Finance (Not Investing)
Topic: Advice for physician asking for a raise
Replies: 47
Views: 5277

Re: Advice for physician asking for a raise

Start looking for another job. The best way to get a big raise is to say I'm leaving unless you give me a big raise and mean it. This. Your only bargaining chip is the ability to walk away. Although it's a little different, my group of 4 docs recently met with our local hospital CEO requesting that...
by mac808
Tue Mar 08, 2016 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Merrill Edge - Good for trading?
Replies: 34
Views: 2612

Re: Merrill Edge - Good for trading?

I moved some money over there recently because of the free trading. So far so good. They also had a cash promo bonus that would give you a few hundred dollars depending upon how much money you moved over (300 bucks in return for $100k, I think).
by mac808
Thu Mar 03, 2016 2:31 pm
Forum: Investing - Theory, News & General
Topic: Books on how finance industry works
Replies: 4
Views: 613

Re: Books on how finance industry works

I really enjoyed the following historical finance books which give you a glimpse into how things worked in the 80s and 90s (not too dissimilar from today as human nature never really changes): The Predator's Ball about Michael Milken of Drexel Burnham the Junk Bond King who fueled the 80s m&a ma...
by mac808
Thu Mar 03, 2016 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Has your number changed?
Replies: 52
Views: 6579

Re: Has your number changed?

My number started out lower when I was in college and first read about Bogleheads over at early-retirement.org. By myself I'm blessed to enjoy frugal hobbies and desires so my number was relatively low. As I got older and realized how expensive having a family can be, the number jumped up. More rece...
by mac808
Wed Mar 02, 2016 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: Life lessons: Making loans to friends. Insights? Revelations?
Replies: 191
Views: 20469

Re: Life lessons: Making loans to friends. Insights? Revelations?

I loaned about $20k each to two of my best friends. It was 2010. I had just sold a business and they were each having a tough time. It was <1% of my net worth and I didn't know how I could justify traveling and spending lots of money on entertainment when some of my best friends were working hard bu...
by mac808
Sat Feb 27, 2016 12:25 pm
Forum: Personal Consumer Issues
Topic: Time To Quit My Job?
Replies: 53
Views: 4968

Re: Time To Quit My Job?

Where do you live? Silicon Valley?

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