Search found 392 matches
- Tue Aug 17, 2021 8:27 am
- Forum: Personal Finance (Not Investing)
- Topic: I'm 70 Years Old and I Can't Spend My Savings
- Replies: 418
- Views: 68064
Re: I'm 70 Years Old and I Can't Spend My Savings
Do you have anxiety about other things as well, or is it just this?
- Tue Aug 17, 2021 8:26 am
- Forum: Personal Finance (Not Investing)
- Topic: I'm 70 Years Old and I Can't Spend My Savings
- Replies: 418
- Views: 68064
Re: I'm 70 Years Old and I Can't Spend My Savings
Do you actually *want* to spend more of your savings?
- Sat Mar 06, 2021 11:02 pm
- Forum: Investing - Theory, News & General
- Topic: Bitcoin investment like insurance - which exchange?
- Replies: 26
- Views: 2628
Re: Bitcoin investment like insurance - which exchange?
I said and did the same thing in 2018 after watching 2017 from the sidelines. Voyager app is my absolute favorite. No fees on trades, easier to use, and they automatically pay interest/yield on any crypto you have just sitting there (no lock ups can withdraw anytime.) They are publicly traded and your USD (not crypto) is fdic insured. I keep Coinbase Pro / Gemini / Kraken as backups. I have been thinking about putting $1000 - $1500 in bitcoin. Maybe just that amount only ever, or maybe annually by taking my tax return money. I am going to treat it like an insurance. You pay, and forget it. If the market crashes and it becomes worthless, fine. If it really grows in 10 years from now to be $50 or $100K, then great, like an insurance (in a dif...
- Sun Jan 31, 2021 9:50 am
- Forum: Personal Investments
- Topic: 500k worth of dry powder. I made a mistake of market timing.
- Replies: 137
- Views: 15599
- Sun Jan 31, 2021 9:46 am
- Forum: Personal Investments
- Topic: 500k worth of dry powder. I made a mistake of market timing.
- Replies: 137
- Views: 15599
Re: 500k worth of dry powder. I made a mistake of market timing.
What was your asset allocation before November 2020 and what is it now?
- Mon Jan 25, 2021 4:32 am
- Forum: Personal Finance (Not Investing)
- Topic: Short term disability insurance- let it go or keep?
- Replies: 7
- Views: 777
Re: Short term disability insurance- let it go or keep?
Yes, it’s a long term policy. Thanks!
BruDude wrote: ↑Sun Jan 24, 2021 11:42 pm Hard to say without seeing what the policy covers and without knowing anything about your ages or health. If you can't afford to retire tomorrow, you probably still need it. In all likelihood, you should probably keep it. Just to clarify, this would be a long-term disability policy. Short-term policies typically cover a maximum of 6-24 months.
- Sun Jan 24, 2021 10:25 pm
- Forum: Personal Finance (Not Investing)
- Topic: Short term disability insurance- let it go or keep?
- Replies: 7
- Views: 777
Re: Short term disability insurance- let it go or keep?
We have a lot more assets/income now than we did back then. But I cannot say we are financially free. If we did not have a mortgage payment I would say yes, we could probably “afford” to live off portfolio + social security. Would not be the quality of life we would be happy with now, but then again we are talking god knows what “just in case” here.
We do have term policies in place. That is exactly how the financial planner got us to buy the disability insurance on top of it.
- Sun Jan 24, 2021 9:13 pm
- Forum: Personal Finance (Not Investing)
- Topic: Short term disability insurance- let it go or keep?
- Replies: 7
- Views: 777
Short term disability insurance- let it go or keep?
Is it wise to keep this disability insurance?
Back in 2013 bb. (“before bogleheads”) a financial planner sold us into a disability insurance policy at $275/month. I’ve been paying every month since then and wondering how wise it is to keep it vs simply investing the difference.
The coverage is something like providing $4K/month income for 20 years if I become disabled and $2500 if my wife does.
Back in 2013 bb. (“before bogleheads”) a financial planner sold us into a disability insurance policy at $275/month. I’ve been paying every month since then and wondering how wise it is to keep it vs simply investing the difference.
The coverage is something like providing $4K/month income for 20 years if I become disabled and $2500 if my wife does.
- Mon Dec 21, 2020 10:03 pm
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
Re: Cashflow your goals with investments
Hmmm... that’s a good bet and I might add: if you are debt free, including no mortgage.
That feels right to me.
That feels right to me.
firebirdparts wrote: ↑Mon Dec 21, 2020 7:15 pmNow that you’ve called me wise, I feel pressured to give an answer. I think it requires a definition that is agnostic toward age and somewhat arbitrary. Let’s say you’re already rich if you live on half your income.
- Mon Dec 21, 2020 10:00 pm
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
Re: Cashflow your goals with investments
So my immediate thought is productive asset = a business. Ranging from direct ownership/management to purchasing stock passively. Lots of in between of course.
PS. I am really enjoying digesting your thoughts. Thank you.
PS. I am really enjoying digesting your thoughts. Thank you.
flaccidsteele wrote: ↑Mon Dec 21, 2020 5:49 pm
A productive asset sells a good or service
A productive asset is worth the sum of future discounted cash flows
Buying a productive asset at a price below the sum of future discounted cash flows is investing
Buying a productive asset at a price above the sum of its future discounted cash flows is speculating
A non-productive asset doesn’t sell a good or service
Buying a non-productive asset is speculating
- Mon Dec 21, 2020 5:28 pm
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
Re: Cashflow your goals with investments
Please enlighten me. Based on the context I would venture the difference is: an investment produces ongoing cashflow and speculation is something you simply "flip" one time for profit?
flaccidsteele wrote: ↑Mon Dec 21, 2020 4:32 pmYou first need to understand the difference between an investment and a speculation, or everything that increases in price will look like an “investment”
- Mon Dec 21, 2020 12:45 pm
- Forum: Personal Finance (Not Investing)
- Topic: Consequence of double-Refi?
- Replies: 5
- Views: 734
Re: Consequence of double-Refi?
Wow this is news to me. This makes me feel like I should wait 6 months so that our previous lender does not get penalized.
seawolf21 wrote: ↑Mon Dec 21, 2020 12:11 amThey could lose out on the commission if the loan is paid off within 6-12 monthspepperz wrote: ↑Sun Dec 20, 2020 11:39 pm If one were to refinance again without waiting 6 months from the last time, would the previous lender have any negative consequences against them?
We just refi’d last week and I’m wondering if I can still shop for a better deal. The loan officer we used is an acquaintance and I’m curious if he would get penalized if we refi’d somewhere else so soon.
https://www.housingwire.com/articles/th ... -mortgage/
That's likely why LenderFi has a clause that borrower agree not to refi within 6 months.
- Mon Dec 21, 2020 12:43 pm
- Forum: Personal Finance (Not Investing)
- Topic: Consequence of double-Refi?
- Replies: 5
- Views: 734
Re: Consequence of double-Refi?
There are some lenders that offer zero fees. I would only entertain those. Thank you.
Northern Flicker wrote: ↑Sun Dec 20, 2020 11:48 pm I don't think so. The mortgage broker earns a commission paid out of closing costs, and would be thrilled if you refi'd again tomorrow with him or her. The lender most likely is just going to sell the loan and use the proceeds to originate another loan.
The real issue is that you are paying closing costs for each loan if closing costs are paid at closing or wrapped into the loan principal.
- Mon Dec 21, 2020 12:39 pm
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
Re: Cashflow your goals with investments
Really great point here about the nature of investments being risky. Thank you. This is the part that confuses me. Unless you’ve already reached your FI number, how would you know you’re taking from “profits”? You can create whatever "cashflow" you want by taking regular withdrawals. You never know what the future brings. Any business (including real estate) can have it's "cashflow" dry up. I'm sure there's a lot of real estate landlords that saw "cashflow" they considered "profits" dry up during this virus panic. If they spent money that was needed to get through periods like now, or to replace a roof, fix a major plumbing issue, or otherwise refit a building for a new tenant then they might not have...
- Mon Dec 21, 2020 12:38 pm
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
Re: Cashflow your goals with investments
Wise thoughts and I’m curious- what is your definition of “rich” here? I always found the concept inspiring and am wondering what the BogleHeads translation is? The story is actually is not about investing. It's about lifestyle spending, really, and using an imaginary bucket strategy as sort of a marital arguing point. It's a pretty ugly story in several areas. The short list of boglehead principles don't really address lifestyle beyond "live below your means". The investment might be smart or dumb. We don't have enough information to say. Leasing a fancy new car is certainly an expensive thing to do, but you're free to do so. Ultimately, if you are rich , you can waste money on any luxury you want, no matter how dumb it is. That'...
- Mon Dec 21, 2020 12:35 pm
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
Re: Cashflow your goals with investments
Makes me wonder if there is always a “once in a century opportunity” for those who know how to look for one. Agnostic of investment type (real estate, stocks, crypto, art, business, beanie babies...) Wow. So that 10% of your investable assets was enough that you could purchase all your real estate properties in cash? And then you downsized in order to free up more cash without borrowing? That is quite inspiring. Thanks for sharing and for that valuable thought. May I ask how you financed the investments when the timing was right? Did you have dry powder/cash saved up? Did you sell stocks even though down? Or did you mortgage? Etc. Not exactly I invested in US equities until a real estate opportunity showed up in the form of the US housing c...
- Mon Dec 21, 2020 8:18 am
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
Re: Cashflow your goals with investments
I believe you’re right. If I remember correctly, Rich Dad Poor Dad only values cash flow. They don’t value/care about Net Worth. 20 years ago I read “Rich Dad Poor Dad” and remember a story about his wife wanting to drive a certain car- the “family rule” was she/they could get the car only by using cashflow from investments. I believe she ended up purchasing a multi-family real estate property which cash flowed enough monthly profit to cover the lease on the car she wanted. How did she justify the mortgage on the real estate? If she bought the property in cash, would have been significantly cheaper to buy the car with cash. If she had a mortgage on the property, then she acquired debt in order to justify a vehicle lease? Something is wrong ...
- Mon Dec 21, 2020 8:05 am
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
Re: Cashflow your goals with investments
Wow. So that 10% of your investable assets was enough that you could purchase all your real estate properties in cash? And then you downsized in order to free up more cash without borrowing? That is quite inspiring. Thanks for sharing and for that valuable thought. May I ask how you financed the investments when the timing was right? Did you have dry powder/cash saved up? Did you sell stocks even though down? Or did you mortgage? Etc. Not exactly I invested in US equities until a real estate opportunity showed up in the form of the US housing crash. Then I invested in rentals until the cashflow covered all my household expenses. Now I never have to sell my US equities It’s the opportunity that triggers the action, not whether I’m FI Never t...
- Mon Dec 21, 2020 7:55 am
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
- Sun Dec 20, 2020 11:39 pm
- Forum: Personal Finance (Not Investing)
- Topic: Consequence of double-Refi?
- Replies: 5
- Views: 734
Consequence of double-Refi?
If one were to refinance again without waiting 6 months from the last time, would the previous lender have any negative consequences against them?
We just refi’d last week and I’m wondering if I can still shop for a better deal. The loan officer we used is an acquaintance and I’m curious if he would get penalized if we refi’d somewhere else so soon.
We just refi’d last week and I’m wondering if I can still shop for a better deal. The loan officer we used is an acquaintance and I’m curious if he would get penalized if we refi’d somewhere else so soon.
- Sun Dec 20, 2020 11:25 pm
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
- Sun Dec 20, 2020 11:22 pm
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
Re: Cashflow your goals with investments
I agree. That’s why I was thinking you get an “FI Portfolio” to your goal with stocks/bonds and only then start tackling real estate.
Although I don’t know why the motivation would be there if you were already FI.
Although I don’t know why the motivation would be there if you were already FI.
climber2020 wrote: ↑Sun Dec 20, 2020 9:26 pmOr you can take your portfolio, invest in real estate, have that real estate tank, and spend the remainder of your days working until your death because you took a foolish unnecessary gamble. Success is not a given. I've watched this happen in real time.
- Sun Dec 20, 2020 11:20 pm
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
Re: Cashflow your goals with investments
Thanks for sharing and for that valuable thought. May I ask how you financed the investments when the timing was right?
Did you have dry powder/cash saved up? Did you sell stocks even though down? Or did you mortgage? Etc.
Did you have dry powder/cash saved up? Did you sell stocks even though down? Or did you mortgage? Etc.
flaccidsteele wrote: ↑Sun Dec 20, 2020 9:15 pmNot exactly
I invested in US equities until a real estate opportunity showed up in the form of the US housing crash. Then I invested in rentals until the cashflow covered all my household expenses. Now I never have to sell my US equities
It’s the opportunity that triggers the action, not whether I’m FI
Never try to time the market. Just take what it gives you
- Sun Dec 20, 2020 8:09 pm
- Forum: Investing - Theory, News & General
- Topic: Cashflow your goals with investments
- Replies: 36
- Views: 3384
Cashflow your goals with investments
20 years ago I read “Rich Dad Poor Dad” and remember a story about his wife wanting to drive a certain car- the “family rule” was she/they could get the car only by using cashflow from investments. I believe she ended up purchasing a multi-family real estate property which cash flowed enough monthly profit to cover the lease on the car she wanted. I always found the concept inspiring and am wondering what the BogleHeads translation is? I’m having a hard time seeing it because stock index funds don’t pay dividends (cash-flow), appreciate slowly, and you never actually want to sell. Perhaps once you are FI with BogleHeads portfolio, you can then invest in real estate that cashflows whatever life you want and never have to your sell stocks. :)
- Mon Dec 14, 2020 9:13 am
- Forum: Personal Investments
- Topic: Paid off real estate > Bonds?
- Replies: 30
- Views: 2241
Re: Paid off real estate > Bonds?
Thanks for this. One question please- why isn’t every Boglehead in VWITX for bonds right now? Is there a downside? I only even thought of this idea after reading so many posts about paltry bond returns on this forum. That is a good point, thank you. I wonder if the tax advantages (depreciation?) do anything to really offset this. The problem with rental real estate IMO is that the income stream is volatile. You can have a bad year that eats up a couple years' of profit. For example, water leak does several thousand dollars of damage because tenant 'neglected' to tell you about it, roof replacement, HVAC goes out, several months' vacancy, etc. If you own 10-20 properties, then (hopefully) your other properties help smooth the income stream. ...
- Mon Dec 14, 2020 8:17 am
- Forum: Personal Investments
- Topic: Paid off real estate > Bonds?
- Replies: 30
- Views: 2241
Re: Paid off real estate > Bonds?
That is a good point, thank you. I wonder if the tax advantages (depreciation?) do anything to really offset this.
Grogs wrote: ↑Mon Dec 14, 2020 7:57 am The problem with rental real estate IMO is that the income stream is volatile. You can have a bad year that eats up a couple years' of profit. For example, water leak does several thousand dollars of damage because tenant 'neglected' to tell you about it, roof replacement, HVAC goes out, several months' vacancy, etc. If you own 10-20 properties, then (hopefully) your other properties help smooth the income stream. With a single property, you don't have that diversification and profits can vary greatly year-to-year. To me, that doesn't seem bond-like.
- Mon Dec 14, 2020 7:06 am
- Forum: Personal Investments
- Topic: Paid off real estate > Bonds?
- Replies: 30
- Views: 2241
Re: Paid off real estate > Bonds?
My question is about using real estate as replacement for fixed income / bonds. Zero leverage. Zero expectations for appreciation. Only goal would be to earn significantly more interest than a bond fund.
arsenalfan wrote: ↑Mon Dec 14, 2020 6:58 am What is your age/goals/investment policy? Where does primary RE fit into that?
Buying in cash negates the risks and benefits of leverage financing. BiggerPockets pro-RE investors would point out you could use that 250k cash and put down 20% on 5 properties, getting $7500 monthly.
Include taxes maintenance and insurance in your costs
Don't count on appreciation, depreciation is nice bonus.
- Mon Dec 14, 2020 7:02 am
- Forum: Personal Investments
- Topic: Paid off real estate > Bonds?
- Replies: 30
- Views: 2241
Re: Paid off real estate > Bonds?
Please for our purposes lower that profit number to whatever you think is reasonable and realistic. I would still ask the same question. Did you catch that the property is paid off with no mortgage? Go ahead and take 1 or 2 percentage points off if you want. The question still stands. I always find these posts interesting. How do you calculate you have $1500/mo profit on $250k property? Someone could buy a $250k property for less than $1500/mo. No I didn’t miss it. Why would someone rent a $250k property and pay rent in the neighborhood of $2000/mo (which would at least be needed for you to make $1500/mo profit) when they could buy for less than $1500. I know rental markets in all parts of the country are different, I just don’t get it.
- Mon Dec 14, 2020 6:59 am
- Forum: Personal Investments
- Topic: Paid off real estate > Bonds?
- Replies: 30
- Views: 2241
Re: Paid off real estate > Bonds?
Good point. You’d need to have cash savings to cover the taxes if it were vacant for a year/multiple years.
houseofnine wrote: ↑Mon Dec 14, 2020 6:48 am If there is one thing I’ve learned in the last 12 months, it’s that rental income is not guaranteed. I’m generally optimistic about the market, but it is easy to imagine an economic event where you experience job loss and loss of rental income at the same time.
- Mon Dec 14, 2020 6:43 am
- Forum: Personal Investments
- Topic: Paid off real estate > Bonds?
- Replies: 30
- Views: 2241
Re: Paid off real estate > Bonds?
Did you catch that the property is paid off with no mortgage? Go ahead and take 1 or 2 percentage points off if you want. The question still stands.
- Mon Dec 14, 2020 6:35 am
- Forum: Personal Investments
- Topic: Paid off real estate > Bonds?
- Replies: 30
- Views: 2241
Paid off real estate > Bonds?
Note: I am essentially asking about using paid off real estate as a “super savings account” for housing fixed income, as an alternative to bonds/savings account. Might it make sense to buy rental property with 100% cash and use the rental income however you’d want to use cash dividends, so you can ideally put off the need to sell stocks? For example, if you can buy a $250K rental property with 100% cash, which pays you 7% profit annually ($1500/month). Might this be a better way to get a higher, stable, return on fixed income for someone who doesn’t mind it being an active interest? I would also think the tax advantages + potential appreciation of the property (if you ever want to sell) are nice bonuses also. Downside seems protected as ca...
- Sat Dec 12, 2020 5:43 am
- Forum: Personal Investments
- Topic: Adding international to 100% stocks
- Replies: 31
- Views: 2897
Re: Adding international to 100% stocks
Thank you, this is insightful. Let’s assume someone is 100% invested in US stock index like VTI, is nervous about the S&P being at an all time high, but still wants to stay 100% stocks- would adding an International index fund allocation be an appropriate consideration? I assume that’s the reason they are recommended in the 3-fund portfolio- because returns are not necessarily correlated but you are still "in stocks"? Adding international stocks is a reasonable way to diversify in my opinion. But the current correlation between U.S. and international stocks is fairly high, so the diversification benefit has been fairly small. The current correlation between Total Stock Market Index and Total International Stock Index is 80 . I...
- Sat Dec 12, 2020 5:41 am
- Forum: Personal Investments
- Topic: Adding international to 100% stocks
- Replies: 31
- Views: 2897
Re: Adding international to 100% stocks
Wow nisiprius, this is interesting and makes me think: what is even the point? Almost reminds me of paying a financial advisor a high fee just to invest in VTI for me. Absolutely and it is one thing that helps me continue to buy a high % of stocks, knowing that I am further diversified beyond the US. International is fine, but don't expect too much from it. I hold some international stocks myself. I don't expect it to be robust disaster production. That "diversification" didn't provide any protection during 2008-2009. Blue, US; orange, international. I was holding international during those years. It made the decline slightly worse. Source https://imgur.com/AMPFNRo.png Note that both international developed markets (orange, VEA) a...
- Fri Dec 11, 2020 2:50 pm
- Forum: Personal Investments
- Topic: Adding international to 100% stocks
- Replies: 31
- Views: 2897
Re: Adding international to 100% stocks
Can you please expand on this?averagedude wrote: ↑Fri Dec 11, 2020 2:22 pm Not only would it be appropriate, it would be the optimal choice as long as you didn't have to sell US stocks out of a taxable account.
- Fri Dec 11, 2020 2:49 pm
- Forum: Personal Investments
- Topic: Adding international to 100% stocks
- Replies: 31
- Views: 2897
Re: Adding international to 100% stocks
"international stock index is the new bonds!"
retired@50 wrote: ↑Fri Dec 11, 2020 2:13 pmAdding international can certainly be considered appropriate.
By adding VXUS you'll be investing in over 7,400 companies you don't already own. That has to add at least a little bit of diversification.
https://investor.vanguard.com/etf/profi ... folio/vxus
Regards,
- Fri Dec 11, 2020 2:09 pm
- Forum: Personal Investments
- Topic: Adding international to 100% stocks
- Replies: 31
- Views: 2897
Adding international to 100% stocks
Let’s assume someone is 100% invested in US stock index like VTI, is nervous about the S&P being at an all time high, but still wants to stay 100% stocks- would adding an International index fund allocation be an appropriate consideration?
I assume that’s the reason they are recommended in the 3-fund portfolio- because returns are not necessarily correlated but you are still "in stocks"?
AKA:
Could international stocks be "the new bonds"?!
I assume that’s the reason they are recommended in the 3-fund portfolio- because returns are not necessarily correlated but you are still "in stocks"?
AKA:
Could international stocks be "the new bonds"?!
- Sat Dec 05, 2020 12:08 pm
- Forum: Personal Investments
- Topic: Qapital - automate savings goals
- Replies: 3
- Views: 489
- Fri Dec 04, 2020 6:44 am
- Forum: Personal Investments
- Topic: Qapital - automate savings goals
- Replies: 3
- Views: 489
Qapital - automate savings goals
Anyone used qapital.com before or something else like it?
It’s the first tool I’ve heard of that allows you to “set and forget” your savings goals.
I’ve heard writers like Ramit Sethi talk about automating this kind of thing so you don’t even have to think about it and always wondered how it’s done.
It’s the first tool I’ve heard of that allows you to “set and forget” your savings goals.
I’ve heard writers like Ramit Sethi talk about automating this kind of thing so you don’t even have to think about it and always wondered how it’s done.
- Wed Dec 02, 2020 4:44 am
- Forum: Personal Finance (Not Investing)
- Topic: Unsolicited Text Messages to Buy Condo (I plan to sell) - Even Worth Bothering?
- Replies: 16
- Views: 9054
Re: Unsolicited Text Messages to Buy Condo (I plan to sell) - Even Worth Bothering?
They are potentially interested in buying and you want to sell soon. Why not just send a text back saying whatever is important to you so you don’t have to talk/meet unless that works for them?
- Tue Dec 01, 2020 5:56 am
- Forum: Personal Consumer Issues
- Topic: Question For Bread Bakers About Wheat Flour
- Replies: 23
- Views: 2184
Re: Question For Bread Bakers About Wheat Flour
I coincidentally made bread for the first time last week. I followed this recipe to the tee and loved it: https://youtu.be/OHJdHPKAMXg
- Sat Nov 28, 2020 9:47 pm
- Forum: Personal Investments
- Topic: Inclined to payoff mortgage
- Replies: 67
- Views: 4682
Re: Inclined to payoff mortgage
FWIW I’m in very similar circumstances and have decided to prioritize the mortgage assuming tax advantaged are maxed. I’ve struggled with the decision because I know it’s not optimal return-wise. If I were a robot, I would not do it. But I haven’t valued the “personal” part of personal finance enough. This year has shown me that even when I do well in the short term (paycheck/bonus/investment growth), I get extremely anxious about being in the hook for the mortgage if I were to lose my income. Yes, I’d have to still pay property taxes/electric/food but not having a mortgage would be a huge load off. Assuming income is the same after that I can laser all that cash to investments and if income is gone and I need to “flip burgers for minimum w...
- Wed Nov 25, 2020 8:35 pm
- Forum: Investing - Theory, News & General
- Topic: Invest entire paycheck?
- Replies: 27
- Views: 3921
Re: Invest entire paycheck?
Great points everyone. I’m interested in the concept of “living off the interest”.
Maybe something can be said about taking this approach for big expenses i.e. I will invest my “car fund” and get a Tesla if it does great or a Corolla of not. Or invest my vacation fund and go to Australia if stocks crush vs local camping if not.
Having to pay taxes on gains + risk of market tanking makes this difficult. I suppose if you add in a $100K emergency fund that smooths out the bumps, and then selling investments you bought over 1 year ago... but that road leads to the obvious: if you’re financially independent, you don’t need the income and can take more risk of you want.
Maybe something can be said about taking this approach for big expenses i.e. I will invest my “car fund” and get a Tesla if it does great or a Corolla of not. Or invest my vacation fund and go to Australia if stocks crush vs local camping if not.
Having to pay taxes on gains + risk of market tanking makes this difficult. I suppose if you add in a $100K emergency fund that smooths out the bumps, and then selling investments you bought over 1 year ago... but that road leads to the obvious: if you’re financially independent, you don’t need the income and can take more risk of you want.
- Wed Nov 25, 2020 10:16 am
- Forum: Investing - Theory, News & General
- Topic: Invest entire paycheck?
- Replies: 27
- Views: 3921
Invest entire paycheck?
Humor me as I had this thought last night while I was sleeping: Would it be wise to invest 100% of your paycheck each pay period, say in VTI, and then simply sell whatever you need each month to cover expenses for that month. I know there are a lot of factors here that make this approach clearly a mistake but if we assume: - $100K yearly net pay - Zero debt - income > expenses (let’s say $2K/month is left over) - All expenses can be charged to a credit card and bill paid after 30 days from selling VTI Update: Great points everyone. I’m interested in the concept of “living off the interest”. Maybe something can be said about taking this approach for big expenses i.e. I will invest my “car fund” and get a Tesla if it does great or a Corolla o...
- Sun Nov 22, 2020 10:00 am
- Forum: Investing - Theory, News & General
- Topic: How to teach your kids about money/wealth
- Replies: 23
- Views: 1878
How to teach your kids about money/wealth
Can you recommend any programs / frameworks that teach kids about money and help instill a mindset for wealth?
At this point Im interested for my own planning purposes as one child is 3 years old and the other is 1.5 years old.
I am quite sure that having chores / responsibilities + learned behaviors from parents are big keys. I’m more looking for a framework to help plan on how/when to convey.
At this point Im interested for my own planning purposes as one child is 3 years old and the other is 1.5 years old.
I am quite sure that having chores / responsibilities + learned behaviors from parents are big keys. I’m more looking for a framework to help plan on how/when to convey.
- Wed Nov 18, 2020 2:07 pm
- Forum: Personal Finance (Not Investing)
- Topic: Unsolicited offer on real estate
- Replies: 41
- Views: 5014
Re: Unsolicited offer on real estate
Plus 1-million on JoeRetire’s comment.
Sounds to me like your realtor has a smart way of getting you a house you really want. It’s not that the homeowner will read all 40 pages. It’s that they will know you are 100% serious and that might make the difference.
Sounds to me like your realtor has a smart way of getting you a house you really want. It’s not that the homeowner will read all 40 pages. It’s that they will know you are 100% serious and that might make the difference.
JoeRetire wrote: ↑Wed Nov 18, 2020 12:31 pmDoes that mean you don't think the property is worth the work in filling out the form?boglerocks wrote: ↑Wed Nov 18, 2020 12:16 pmHe wants me to send an official 30-40 page form offer but I'd rather do something simple like a 1 page offer letter since we don't even know if the owner is interested in selling.
When I hire a real estate agent, I only do it when I trust their judgement.
- Wed Oct 28, 2020 9:09 am
- Forum: Personal Investments
- Topic: What’s “your number” for each kid’s 529?
- Replies: 439
- Views: 35846
What’s “your number” for each kid’s 529?
Do you have a goal amount for kids 529 that you’re proactively working towards?
My kids are 3 and 1.5 years old and trying to work out my philosophy here.
My kids are 3 and 1.5 years old and trying to work out my philosophy here.
- Sat Oct 24, 2020 8:13 pm
- Forum: Personal Investments
- Topic: Timing extra mortgage payments - does it matter?
- Replies: 18
- Views: 2124
Re: Timing extra mortgage payments - does it matter?
Thanks very much for taking time to lay this out. I was not understanding a few important details and you made it clear! Hmmm so it sounds like this is a reason to pay into the mortgage directly ASAP. How can I understand the significance of difference? I’d like to compare this benefit against maintaining a sinking fund that is invested until you can pay the mortgage off. It matters as to how much interest you pay. Your monthly interest payment in based on your outstanding balance. If you pay an extra $1000 today, your outstanding balance for every month of the next 20 years will be $1,000 less than it would have been otherwise. The short version answer involves: What is your mortgage interest rate? That is what you would be paying every ye...
- Sat Oct 24, 2020 11:13 am
- Forum: Personal Investments
- Topic: Timing extra mortgage payments - does it matter?
- Replies: 18
- Views: 2124
Re: Timing extra mortgage payments - does it matter?
Hmmm so it sounds like this is a reason to pay into the mortgage directly ASAP. How can I understand the significance of difference? I’d like to compare this benefit against maintaining a sinking fund that is invested until you can pay the mortgage off.
cheese_breath wrote: ↑Sat Oct 24, 2020 10:56 am It matters as to how much interest you pay. Your monthly interest payment in based on your outstanding balance. If you pay an extra $1000 today, your outstanding balance for every month of the next 20 years will be $1,000 less than it would have been otherwise.
- Sat Oct 24, 2020 10:46 am
- Forum: Personal Investments
- Topic: Timing extra mortgage payments - does it matter?
- Replies: 18
- Views: 2124
Re: Timing extra mortgage payments - does it matter?
Sorry no I just mean in regards to how it effects the loan directly.
Hyperchicken wrote: ↑Sat Oct 24, 2020 10:32 am Does it matter in what sense?
If you pay $1000 20 years later, you have $1000 more for 20 years. So clearly this makes a difference. Is that what you are asking about?
- Sat Oct 24, 2020 10:28 am
- Forum: Personal Investments
- Topic: Timing extra mortgage payments - does it matter?
- Replies: 18
- Views: 2124
Timing extra mortgage payments - does it matter?
If you wanted to send an additional $1K straight to mortgage principle, does it make any difference when you send it? i.e. it it’s year 1 vs year 20?
I’m wondering if there is any benefit whatsoever to sending payment to mortgage vs just keeping it in checking until you can pay it off.
I’m wondering if there is any benefit whatsoever to sending payment to mortgage vs just keeping it in checking until you can pay it off.