Search found 260 matches

by mac808
Tue Aug 23, 2016 3:38 am
Forum: Investing - Help with Personal Investments
Topic: Annuity for 28 Year Old Hippie
Replies: 37
Views: 3515

Re: Annuity for 28 Year Old Hippie

Thanks for the feedback. Any thoughts on a better setup for a young kid like this? Trying to steer clear of an irrevocable trust due to the lack of anyone willing to be a non corporate trustee and the relatively low AUM.
by mac808
Tue Aug 23, 2016 12:01 am
Forum: Investing - Help with Personal Investments
Topic: Annuity for 28 Year Old Hippie
Replies: 37
Views: 3515

Annuity for 28 Year Old Hippie

A friend's younger brother came to me for advice upon receiving a sizeable (mid six figures) financial inheritance. Suffice it to say that this young man fits the profile of someone who will blow through these funds within a couple years, at most. He has minimal income from part-time minimum wage jo...
by mac808
Mon Aug 22, 2016 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: How much MLP is reasonable in a portfolio?
Replies: 18
Views: 1121

Re: How much MLP is reasonable in a portfolio?

The short answer is no, MLPs have no place in 99% of balanced portfolios. Most of them are yield chasing principal risking demons.
by mac808
Mon Aug 15, 2016 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 252
Views: 26306

Re: Self-made Millionaires: how did hitting 7 figures change you?

A million dollars isn't what it used to be. A "millionaire" is no big deal, depending on your age. It puts you in the 1%. That's a pretty big deal. You are probably more wealthy and well off than 99.9% of persons throughout history. That's a pretty big deal. Maybe globally, but not the to...
by mac808
Mon Aug 15, 2016 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 252
Views: 26306

Re: Self-made Millionaires: how did hitting 7 figures change you?

I felt poorer at $1m than when I was flat broke. Like having that $ in the bank was a ticket behind the curtain and once I met the Wizard I realized how poor I was relative to other clever, hard working high achievers in the world. Very strange psychological effect. I guess once you get a bite of th...
by mac808
Wed Aug 10, 2016 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Parents TOO frugal - leave it be???
Replies: 34
Views: 3942

Re: Parents TOO frugal - leave it be???

Some people enjoy the journey more than the destination.
by mac808
Sun Aug 07, 2016 12:28 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 55
Views: 3797

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Is the $1000 promo still active for Merrill Edge? I only see $600 on their website.
by mac808
Fri Aug 05, 2016 5:04 pm
Forum: Personal Consumer Issues
Topic: Stats on Americans 'cutting the cable' ?
Replies: 98
Views: 9614

Re: Stats on Americans 'cutting the cable' ?

I cut the cord awhile back. I just recently discovered that you can watch CNN live, for free, on YouTube. Go to YouTube and navigate to Live Channels, News Channels, and you'll find some great content there.
by mac808
Thu Aug 04, 2016 10:42 pm
Forum: Personal Finance (Not Investing)
Topic: "4% Rule" ...is broken? [argumentative]
Replies: 150
Views: 8580

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

The 3% group believe the future will be MUCH WORST than the depression, WWI & WWII, the 60's & 70's. If that's the case most of America will be in deep, deep trouble. I believe 4% will work, but I'm also smart enough to cut back and adjust my spending if we run into bad returns fews years i...
by mac808
Thu Aug 04, 2016 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: "4% Rule" ...is broken? [argumentative]
Replies: 150
Views: 8580

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

I do think 3% is the new 4%. 4% came from the strongest performing country (the US) in one of the strongest performing periods of time (at least two major generational cycles of industrialization). Note that if returns are indeed lower for the next couple decades then we have a massive state, munici...
by mac808
Mon Aug 01, 2016 12:03 pm
Forum: Personal Consumer Issues
Topic: Am I spending too much on vacation/leisure?
Replies: 16
Views: 1838

Re: Am I spending too much on vacation/leisure?

Check out reddit.com/r/churning

At your age you may have the good credit and stamina required to churn through a bunch of travel related credit cards. You can get a few thousand dollars worth of free flights and hotels pretty easily if you spend 40-50 hours learning the ropes.
by mac808
Mon Aug 01, 2016 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Another can we retire...
Replies: 51
Views: 5504

Re: Another can we retire...

One of the reasons I don’t want to handle the finances myself is that I get overly anxious with it, it’s nice to have a FA that your trust but there is certainly a large price tag with it. Our FA is also a family friend so I really feel obligated to stay — even without that aspect to ME its worth t...
by mac808
Sat Jul 30, 2016 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Another can we retire...
Replies: 51
Views: 5504

Re: Another can we retire...

It is a distinct possibility that a person feeling comfortable with a high fee AUM advisor also feels comfortable with lots of other costly mistakes in investing. If it were a known guarantee that paying the AUM would prevent those many other mistakes that would be one thing, but I fear the evidenc...
by mac808
Thu Jul 28, 2016 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Housing for newlyweds
Replies: 18
Views: 1668

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: 193
Views: 16270

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: 8033

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: 4912

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: 630

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: 1081

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: 3942

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: 5833

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: 5532

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: 1317

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: 1740

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: 6490

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: 1234

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: 6077

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: 4132

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: 1665

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: 3364

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: 2015

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: 7348

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: 6068

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: 2290

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: 1807

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: 4121

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: 2768

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: 8910

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: 1264

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: 1264

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: 1264

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: 66891

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: 5136

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: 9480

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 £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: 5156

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: 9480

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: 8878

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: 3224

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: 3224

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...

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