Search found 297 matches

by jsapiandante
Wed Mar 13, 2024 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: At what point did you prioritize health over money?
Replies: 54
Views: 6123

Re: At what point did you prioritize health over money?

I'm in the same age group as you and I am constantly trying to balance the trio of work, family, and health. I'd like to say I'm the healthiest now that I've ever been since my high school days when I played sports daily. It's all about time management and priorities. When I first started my career and got married, I felt at the time that I can only focus on 2 out of 3 things to make things work. So, I focused on work and family, completely ignoring my health. That kind of lifestyle led me to an unhealthy weight and I had to go on blood pressure and cholesterol meds. I knew if I stayed on the same path, I was severely shortening my lifespan. Even though we were making money hand over fist and were on a fast track to FI, what good is having ...
by jsapiandante
Mon Mar 11, 2024 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: How Much Cash Do You Keep In Your Home?
Replies: 207
Views: 14913

Re: How Much Cash Do You Keep In Your Home?

We keep a few hundred in 1s, 5s, and 20s for tipping. Replenish every few months.
by jsapiandante
Mon Mar 11, 2024 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Have any of you Frugal Zebras Changed Your (Spending) Stripes?
Replies: 129
Views: 10668

Re: Have any of you Frugal Zebras Changed Your (Spending) Stripes?

And, I'm not sure I ever will be able to pay for first class air, even though I could. Just can't get over paying thousands more for a seat that gets me from point A to point B at the same time as economy. Even on a long overnight flight, although perhaps some day that will change. I am planning a trip to Europe, the approximate cost for a roundtrip economy ticket for my destination in Eastern Europe with one stop (I excluded all itineraries with more than one stop) is $1,400 and business class for the same itinerary is $6,000 per person. For two people that is approximately $3,000 for economy compare to $12,000 for business class. I can afford to pay for business class but I cannot bring myself to pay an extra $9,000 for an 8 hour flight ...
by jsapiandante
Wed Mar 06, 2024 11:41 am
Forum: Personal Finance (Not Investing)
Topic: When have you stopped saving for retirement?
Replies: 40
Views: 3889

Re: When have you stopped saving for retirement?

Having recently reached FI, we thought about dialing back our savings but old habits die hard. We continue to max our tax deferred space because we rather save on taxes, especially since we are still a high income dual household. We thought about increasing our spending but we couldn’t come up with any meaningful items that would bring us joy. What we did was instead of investing monthly, we did it quarterly. That way it gave us a chance to spend on things like last minute vacations.
by jsapiandante
Fri Mar 01, 2024 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement: the "hurry up and wait" phase
Replies: 17
Views: 1841

Re: Pre-retirement: the "hurry up and wait" phase

Given that you are self-employed, can you start to cut back your hours? Maybe something as simple as closing the office on Friday afternoons to begin with! You and your wife are on very different paths in terms of how long you want to work. Depending on what else it is you’d rather be doing, it might make sense for you to plan to work for more years but at fewer hours per week. If you want to golf more, then work 3 days a week until your wife retires and spend your 2 extra days golfing. Or take long weekend trips with friends if travel is your thing. Or even travel longer accepting that you’ll need to spend some time on work. This is probably the most logical thing to do. Better to slowly cut back than quit cold turkey. I am also self-empl...
by jsapiandante
Thu Feb 29, 2024 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Mid-career change to law?
Replies: 127
Views: 11687

Re: Mid-career change to law?

I’ve come to rely on this like-minded community to help me organize my financial life. This time, I’m seeking advice on the practical and intangible aspects of a career change I’m considering. I currently live in a HCOL area. Annual expenses are $140k. My spouse stays home with kids (2 & 4). I have a stable income of $400k. Potential to grow to ~$600k in future years. I just turned 40, and we just reached a NW of $2M. $500k in taxable, $500k home equity, and $1M in retirement accounts. I max out all my available retirement accounts, totaling $106k of tax-advantaged savings this year. Although I’m fortunate to have a stable and lucrative career that I enjoy, I don’t find it intellectually challenging, and I’ve always dreamed of attendin...
by jsapiandante
Thu Feb 22, 2024 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE vs Loving your work
Replies: 101
Views: 8362

Re: FIRE vs Loving your work

We just reached FI and are on the cusp of Fat FI in a few years if we keep up with our savings rate (2-3x annual expense per year in savings). We continue to work because our current work-life balance is ideal and we don't feel burnt out compared to a few years ago during the pandemic (we are both in the medical field). We are also in the prime of our highest earning years. We travel often because it allows us to recharge. I'm not so sure we would travel as much if we didn't work. But the main reason we keep working is because we have a young child (he's turning 7). He's just about to enter grade school and we would be tied down to his school schedule in the next 12 years until he's launched. While it's easy to keep track and manage our exp...
by jsapiandante
Wed Jan 31, 2024 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: How much emergency cash is too much?
Replies: 32
Views: 3726

Re: How much emergency cash is too much?

How many multiples expenses do you have total, including cash? Mentioned lower, but I have 4x annual expenses in CDs right now. How big is your total portfolio size (either in terms of dollar amount or x-expenses)? You wrote above you have 900k, and and additional 4x expenses in cash. Using just those 2 bits of information, we can't deduce anything. How many years of expenses is the 900k? Hmm, perhaps I'm not understanding the question (I thought these were answered in the OP), but our expenses are about 7k/month (84k/year). I have ~350k in liquid savings (CDs, savings etc..) and 900k in retirement funds. At your accumulated level, you really don't need an EF anymore. To me, an EF is a must if you're just starting out and trying to build a...
by jsapiandante
Tue Jan 30, 2024 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Payoff Calculation
Replies: 12
Views: 1392

Re: Mortgage Payoff Calculation

Hi all, Forgive another mortgage payoff question, but I would be happy to take any advice offered. I have 11 years left on my 15-year, 2.375% mortgage, original balance of $275K. I can pay off the balance for $204K and save $29K in interest. I am interested to retire at end-of-year, at age 65.5, but not take SS until 70. I will draw from my 401K and after-tax investments to "bridge over" to SS income, but it would be nice to reduce monthly expenses in order to reduce as well the necessaray draw-down from these investments. Paying off the mortgage would eliminate the monthtly P&I payments of $1,800. To pay off the mortgage, I will need to sell securities (likely from my after-tax portfolio) and incur some LT capital gains. The...
by jsapiandante
Thu Jan 18, 2024 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Dealing with "one time" or "temporary" expenses when calculating X in 25X
Replies: 33
Views: 2825

Re: Dealing with "one time" or "temporary" expenses when calculating X in 25X

We started off not having any lumpy expenses when we moved into our house in 2015. Then all of a sudden, we needed new washer and dryer, needed to replace a car, replace HVAC, and replace our wooden fence that was rotting and falling over. Also, an emergency visit for my son who had a severe allergic reaction. All of this in a span of 2 years.Luckily, we had enough money in our emergency fund plus a sizeable taxable to cover without any issues. I've come to learn that these "lumpy" expenses is very hard to incorporate into a 25x number. It's best to have cash set aside for the big lumpy expenses that come every 7-10+ years (eg. cars/roof/appliances) and not include it in your 25x number. While getting the average of the lumpy expe...
by jsapiandante
Thu Jan 04, 2024 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: What is the Worst Financial Decision/Mistake You Have Made?
Replies: 657
Views: 133062

Re: What is the Worst Financial Decision/Mistake You Have Made?

Luckily, with the help of this board, I haven't made a financial mistake since I started investing in 2013. Before I pulled the trigger, I picked an allocation that was right for me and just plowed money into it. What I do regret is not investing sooner when I had my first job at 18 years old and the opportunity cost if I started then. I was a good saver and I've always known that investing is the path to wealth but was too lazy, too young, and too naive to learn and get started. I didn't know the power of compounding at the time and convinced myself that I'll start when I've graduated college and have a real job. Had I invested what I was saving per month at the time instead of putting in a savings account, I would have accumulated $150k b...
by jsapiandante
Thu Jan 04, 2024 1:54 pm
Forum: Investing - Theory, News & General
Topic: How did you make your first $1M?
Replies: 148
Views: 33600

Re: How did you make your first $1M?

Started investing in 2013 at age 31 with zero dollars to my name since I aggressively paid off my student loans after I graduated. My then-girlfriend (my spouse now) who I lived with in a tiny 1 bedroom apartment became a pharmacist in 2012 with zero student loans since she went to pharmacy school abroad. We lived on 20% of our combined income for a few years to save up a down payment for a house and wedding while maxing our retirement accounts. We got married in 2015 and bought our current home in a HCOL area the same year. As our income grew over the years, we lived on half our income. We still do. We reached $1 million liquid net worth in 2021. Currently sitting on $1.4 mil liquid and FI. My advice is cliche. Live below your means and ma...
by jsapiandante
Tue Jan 02, 2024 11:48 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900060

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

Our end of 2023 return was 22.6%. I’ll take a few more years (hopefully consecutively) of these returns and I should be golden.
by jsapiandante
Sun Dec 31, 2023 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: Max money to reasonably spend on vacations per year?
Replies: 29
Views: 3398

Re: Max money to reasonably spend on vacations per year?

the_wiki wrote: Sun Dec 31, 2023 4:14 pm Spend whatever you want while meeting your primary savings goals.
This. You can make it as big or as small as you want. Just as long as you’re meeting your financial goals.
by jsapiandante
Wed Dec 20, 2023 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: how much do you think you need to retire?
Replies: 279
Views: 56448

Re: how much do you think you need to retire?

Based on our current spending and our age (41 and 39), we are targeting between 3.25% and 3.5% SWR. Our current spending also comprises of about ~30% discretionary so we can adjust if things go south. We are FI based on the 4% rule but since we may be looking at a 40-50 year retirement, we want a little bit of a cushion. At the moment things are very good with our work-life balance so we are striving for Fat FIRE in the near to medium term if we can reach it.
by jsapiandante
Tue Dec 12, 2023 6:11 pm
Forum: Personal Investments
Topic: How Is Your Money Deployed?
Replies: 31
Views: 5266

Re: How Is Your Money Deployed?

Age: 41 Net worth: $1.9mil Target retirement income: $75k (includes mortgage) Pre tax assets: $396k Roth assets: $175k Taxable assets: $750k Home equity: $600k ($1.1mil value) Both spouses still working full time at the 24% mfj tax bracket. We are just taking it year by year and haven’t changed lifestyle much so we have been able to save a lot. Currently saving nearly 2 years of expenses every year for the past 3-4 years which has skyrocketed our portfolio. It’s nice to know we have options if things change with our working situation. Our goal before pulling the trigger is accumulating between $1.75-2 million in assets and get all major house maintenance out of the way. We recently bought a new car which should last at least 10 years. We al...
by jsapiandante
Mon Dec 04, 2023 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Doesn’t move the needle much? 5-10k extra savings annually.
Replies: 70
Views: 9748

Re: Doesn’t move the needle much? 5-10k extra savings annually.

43 y.o. 310k income 1.391 million retirement savings 73k saved annually for retirement When I look out on a 10 year time horizon and trying to squeeze in another 5-10k of brokerage account savings beyond my already maxing all tax advantaged retirement accounts, it just doesn’t seem to yield that much gain at 6% return. Is it even worth trying to add a little more savings annually or should I just be content doing what I’m doing? Almost the same age and the same size portfolio. If squeezing another 5-10k starts to hurt, it might not be worth it. What we did was we gave ourselves the end of every quarter to spend the extra money. Most of the time we don't so we invest it. When we did spend it improved our quality of life greatly and no remor...
by jsapiandante
Tue Nov 07, 2023 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Do you have an annual budget?
Replies: 99
Views: 11107

Re: Do you have an annual budget?

We don't budget but we do keep track of our spending on a monthly basis. If anything we are more concerned about meeting our savings goal than maintaining a budget. If we feel we aren't on track with our savings, we will dial back on certain discretionary spending like restaurants and entertainment which is usually easiest for us.
by jsapiandante
Wed Oct 25, 2023 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Spouse about to loose job, should she quit instead
Replies: 35
Views: 6186

Re: Spouse about to loose job, should she quit instead

You didn't state your financials outside of a 6 month EF. So just basing off of what info you gave, I'd hunker down and wait to get fired so she can collect unemployment when the time comes. But until that happens, I'd start looking for a new job.

I seriously would not consider moving back to the same company if it were available again in the future. But that's just me.
by jsapiandante
Wed Aug 30, 2023 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: What lumpy expenses did you plan for in retirement?
Replies: 10
Views: 901

Re: What lumpy expenses did you plan for in retirement?

runner3081 wrote: Wed Aug 30, 2023 11:26 am We aren't there yet, but planning for:

-College expenses (we will be paying tuition and books only)
-Vehicles every 10 years
-Appliances every 10 years
-Roof every 20 years
-AC every 15 years
This is pretty much exactly how we are planning. We are the same age as OP and we are pretty much FI. We are still working and will continue to do so and accumulate since our son just entered kindergarten. Will keep plugging along and re-evaluate in 5 years.

So between now and then, our plan is to save enough to pay for those lumpy expenses in full if needed before or right after retirement so it’s not something we have to worry about during SORR years. Our goal is to also have 2 years of expenses in cash.
by jsapiandante
Wed Aug 23, 2023 2:14 pm
Forum: Personal Investments
Topic: Retirement Plan: Concern for Current Work Life Balance
Replies: 11
Views: 1020

Re: Retirement Plan: Concern for Current Work Life Balance

Here is my situation. I am 53 years old, my wife is 51. Together we have approximately the following in retirement savings: $1.8M in 401k and Rollover IRAs $200K in Roth IRAs $300K in Brokerage Accounts TOTAL: $2.3M $35K in Cash (High Yield MM) We still owe approximately $200K on our home, with 12 years remaining at 2.0% interest We have 3 children (two in second year of college) and another that will enroll in the next 12 months. Yes, that’s correct…we will have three children in college at the same time…whew!! That said, we saved early and have approximately $75K set aside in 529 plans for each of them, for a total of $225K. Our sophomores have already begun to burn down on their $75K, as they are already enrolled. My dilemma is as follo...
by jsapiandante
Wed Aug 23, 2023 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Would You Buy a House Right Now?
Replies: 39
Views: 6911

Re: Would You Buy a House Right Now?

markesquire wrote: Wed Aug 23, 2023 1:32 pm
jsapiandante wrote: Wed Aug 23, 2023 1:25 pm
markesquire wrote: Wed Aug 23, 2023 12:47 pm Even with the rates as high as they are, you can always refinance later.
I will almost certainly buy with cash, so no mortgage. My concern is buying a home right before it loses tons of value in a foreseeable market crash. The stats on housing look pretty rough right now, but low inventory seems to be keeping prices in place (for now).
Unless you're planning to buy in an area that can be severely affected by market conditions (ie Las Vegas), you'll be okay for the most part if you plan to stay in that house long term. If you're expecting a market crash soon, then now it sounds like market timing. Personally, the value of the home is not something I consider when it comes to my personal finance decisions.
by jsapiandante
Wed Aug 23, 2023 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Would You Buy a House Right Now?
Replies: 39
Views: 6911

Re: Would You Buy a House Right Now?

I just posted a related question about how to buy a home in my situation (cash vs. mortgage). Different but related question: assuming we want to buy within the next year (two at most), is there any reason to wait? I know that when it comes to equities, Bogleheads are all about avoiding market timing, nobody knows nothin', etc. Does that apply with housing? I see quite a bit of news about possible downturns in the housing market caused by sustained increased interest rates, the total amount of household debt built up, and other factors that could conceivably affect the housing market, but the inventory is so low that prices seem to be buoyed. We have a current opportunity to buy at (what is currently) a decent price, and to avoid realtor f...
by jsapiandante
Sun Aug 20, 2023 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Help Annette Keep Working and Not Retire
Replies: 648
Views: 62249

Re: Help Annette Keep Working and not retire

Looking for some great reasons *not* to retire for another few years. Straight talk appreciated! Esp from folks in VHCOLAs and those already retired who know the pitfalls. My main ones are: I want to keep alert, continue to make a good income, keep active, keep saving and investing and stay relevant. But performing at a high level is tiring, especially in the era of the FIRE movement and Covid era change. If I keep working I can have a high standard of living and extra to spend on health, and if I retire I’ll have to pinch pennies for 40 years, if I’m lucky enough to live so long. You know my stats: Mid 50s, total comp and other income $340k gross, portfolio $1.55 mil very conservatively invested (AA 20/80), plus small home owned outright ...
by jsapiandante
Sun Aug 20, 2023 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone ever tried partial FIRE?
Replies: 45
Views: 5554

Re: Has anyone ever tried partial FIRE?

I think the term you’re referring to is Barista FIRE. You withdraw from your investments using your choice of withdrawal rate and work an “easy” job like a Starbucks barista to cover any shortfall your investments couldn’t cover while getting health insurance benefits.

An example is you need $40k yearly to live on. You’ve saved up $500k up to this point and want to Barista FIRE. Using the 4% rule, you can withdraw $20k from your investments and work odd jobs to cover the rest of the $20k. This way you can “retire” earlier or leave a job you hate for an “easier” job.

In theory, it’s feasible. Not something I would do as I’d prefer to just reach FIRE as early as I can and be done with it. Then I would have a lot more options.
by jsapiandante
Mon Aug 07, 2023 11:11 am
Forum: Personal Investments
Topic: What is your total accumulation number, how did you come to it. No Judgements!
Replies: 404
Views: 73672

Re: What is your total accumulation number, how did you come to it. No Judgements!

$2.5 million was our number. Once we hit it, we decided $3 million is our number. We have since hit that as well sitting on $3.2 million $3 million means we will never worry about our needs. We can travel wherever and whenever we want, but have to be reasonable about our travel plans. If we travel a lot we can't fly first/business class every time. $4 million is our next goal which is attainable. At $4 million we can travel first/business class on every flight and stay at the nicer hotels. $5 million is our stretch goal. I doubt we will ever hit it, but at $5 million we can upgrade our cars more frequently and just lease them to make life easier. We effectively spend $120k/yr which includes $20k/yr for health insurance and $15k/yr for pre ...
by jsapiandante
Tue Aug 01, 2023 12:38 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5249
Views: 900060

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

As of this morning I'm up 17.5% at an AA of 80/20. I was down 18.9% in 2022 so all of my contributions since then has gone to VTSAX.
by jsapiandante
Fri Jul 28, 2023 1:49 am
Forum: Personal Finance (Not Investing)
Topic: "Upgrading" a Subaru Forester to a Tesla Model Y?
Replies: 133
Views: 13315

Re: "Upgrading" a Subaru Forester to a Tesla Model Y?

me: 2017 Subaru Forester wife: 2019 Mazda CX-5 young family with 2 kids in car seats. checked out a Model Y today just for fun. figured it'd be too small but actually doesn't seem much smaller than my Forester. Forester is paid off but I am BORED of it. it's mundane and slow. not that the Y is a supercar but it's definitely a step up in the fun and tech department. I am well aware of the quality control issues but I can live with those. I would install a charger at home so no real worry about finding a place to "fuel up". In NY we're eligible for a $500 state rebate and the $7500 federal rebate. I have $200K in my checking/savings. $200K in my 401K, $40K in my Roth IRA and about $5K in a taxable account. I try to max my retiremen...
by jsapiandante
Tue Jul 18, 2023 6:39 pm
Forum: Investing - Theory, News & General
Topic: Millennials Need 3-4 Million To Retire
Replies: 504
Views: 59913

Re: Millennials Need 3-4 Million To Retire

I'm the typical millennial the OP is referring to. Now, we've been able to accumulate $1 million by the time I turned 40 last year but by no means would I need 3 or 4 million by retirement age. But I do believe the average millennial may need it. The vast majority of my millennial friends, neighbors, and family have such an inflated lifestyle and live paycheck to paycheck even with $250k+ HHI. But I consider ourselves an exception to the rule. Because of our lifestyle, even 2 million is Fat FIRE and that includes a 500k mortgage balance. Even though we've loosened our purse strings as of late(recently bought a Model Y), our friends wouldn't even notice we've accumulated this much and are on the verge of not working for money again should we...
by jsapiandante
Thu Jul 06, 2023 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: How many hours do you work? How many hours do you actually want to work?
Replies: 171
Views: 18254

Re: How many hours do you work? How many hours do you actually want to work?

I've been part-time (28-30 hours/week) since the pandemic. It's been amazing and I can see myself doing this schedule for as long as I can. The problem is we have reached FI and are losing motivation to keep grinding. Every dollar contributed from this point on is just icing on the cake.

Work is easy, but I day dream constantly doing something else other than being stuck in an office for 8 hours in a day. I don't want to stop work completely, but my preference would be to work only when I want to (3 days a week/4 hour shifts would be ideal). This way I have more time and freedom in the day to do whatever I want.
by jsapiandante
Mon Jul 03, 2023 7:20 pm
Forum: Personal Consumer Issues
Topic: Tesla Model Y
Replies: 133
Views: 16021

Re: Tesla Model Y

So I test drove the Model Y Performance yesterday and wanted to share my experience. Driving the vehicle was amazing. It had a lot of torque and didn't feel any struggle going up the hills. Easily one of the best vehicles I have ever driven. I had trouble getting used to the one pedal driving but I'm sure with enough practice it'll be fine. Now this isn't a deal breaker, but I found the infotainment feature of the Tesla a little distracting while driving. I know they're trying to push minimalism doing everything from a/c, radio, etc. on that screen but there were some uneasiness on my part trying to figure my way around it while trying to drive. Usually, no matter what brand of car I drive, there's some sort of familiarity once I get on the...
by jsapiandante
Sun Jul 02, 2023 2:12 pm
Forum: Personal Consumer Issues
Topic: Tesla Model Y
Replies: 133
Views: 16021

Re: Tesla Model Y

I'll give an example of a recent trip in my Model Y LR with 20in wheels (shortens max range a little). I travelled to visit my Mom 209 miles away, followed by a business meeting next day 65 miles away from my Mom. I can't remember if I max or 90% charged before leaving home. I stopped at a Supercharger on I-95 in NC, about 50 miles away from destination. I charged for about 15 minutes, I wanted some extra juice as I would be running errands for Mom when I got there. 10 years ago, when I got my first Tesla, a Model S, I made an adapter to charge on my Mom's dryer outlet next to her driveway. You can buy these adapters now. Anyway I charged while I was at Mom's to a range of about 250 miles. Next day I drove to my business meeting and afterw...
by jsapiandante
Sat Jul 01, 2023 10:41 pm
Forum: Personal Consumer Issues
Topic: Tesla Model Y
Replies: 133
Views: 16021

Re: Tesla Model Y

We are currently in the market for a new vehicle and this is one of the cars we are really leaning on as our next vehicle. Unfortunately, my 2017 Subaru Forester was totaled after getting into an accident (I’m not liable) last week and are now have until end of July to get a new one. The good news is that my insurance is offering $20k (bought brand new for $22k) for my car and I can use that as my down payment for the next vehicle. To replace with a brand new Subaru Forester is about 35k out the door. As much as I love the Subaru, I really want to transition away from ICE vehicles and into ev/phev. I also want to take advantage of the federal credit as well as the California rebate (totaling $9500) so that’s why we are leaning towards Tesla...
by jsapiandante
Thu Jun 08, 2023 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Off Mortgage vs Investing Extra Money
Replies: 48
Views: 6934

Re: Paying Off Mortgage vs Investing Extra Money

What's more important to you? Being debt free or having as much money as possible? Before you even consider paying down your mortgage, at least max all your retirement vehicles (401k, IRA, etc) and pay down any consumer debt you may have as well as having 6-12 months emergency fund. The mortgage would be at the very bottom of things I want to pay off. If you aren't maxing out your retirement, why pay your income tax rate to save a measly 2.75% mortgage rate that's deductible? It doesn't make sense. Especially in this high inflationary environment and the economy in turmoil. The risk of paying down the mortgage is liquidity risk. If you're plowing all your extra cash into the mortgage and an emergency happens like a job loss, the same monthl...
by jsapiandante
Wed Jun 07, 2023 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Millionaire by 40 and How you Did it?
Replies: 352
Views: 74784

Re: Millionaire by 40 and How you Did it?

Age 40/39 We reached liquid net worth of $1 million when I was 38 and my wife was 37. Started investing at age 30/29. What helped was my wife becoming a licensed professional and then we lived on one income and investing 100% of the other income. If I had to guess, we were saving at least 60% of our combined income. It also helped that we started during one of the longest bull run from 2012-2021. Currently at $1.25 million liquid net worth and at lean FI. If market ever goes back to previous high we would be at fat FI with lots of options about what we want to do with the rest of our lives. The main thing for us was we stayed disciplined. We didn't inflate our lifestyle even though our income kept growing. Bought a mid size house in a nice ...
by jsapiandante
Thu Apr 27, 2023 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Who is right? Me or the wife? (Business class tickets)
Replies: 193
Views: 17799

Re: Who is right? Me or the wife? (Business class tickets)

My only reluctance or hesitation; is there enough value for you? When we went to Asia I could have spent a few thousand dollars on flight upgrades for a little more enjoyment for a few hours but instead used the same money to increase our hotel budget for three weeks. What a wonderful experience. When on a cruise, I’d rather pay a few thousand dollars extra for SilverSea, Azamara suite, etc where I can enjoy it for the entire trip. Most upgrades on flights are paid with points or upgrades given to frequent flyers. This. But definitely will differ with each person. When we were considering and comparing flying business or economy plus during our recent trip to Southeast Asia, the difference in cost was almost 2x per ticket. We decided to ju...
by jsapiandante
Thu Apr 20, 2023 12:41 pm
Forum: Personal Investments
Topic: I need only a few thousand $$ , can I sell in the down market?
Replies: 56
Views: 6364

Re: I need only a few thousand $$ , can I sell in the down market?

anoop wrote: Thu Apr 20, 2023 12:31 pm
supalong52 wrote: Thu Apr 20, 2023 12:26 pm I mean if you need it...you need it. Can you borrow the money and repay it on better terms than selling it now and reinvesting when you have the money again?
That sounds like really bad advice. That's like leverage. Would you take on debt to buy stocks/bonds/gold/bitcoin/your-favorite-asset right now?
I think he meant it as a rhetorical question instead of advice. Back to OP, same as Klangfool said, do you not have an EF for this? If you don't and selling at a loss bothers you, can't you just sell lots that are not in the red?
by jsapiandante
Wed Apr 19, 2023 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Have you ever used your emergency fund?
Replies: 272
Views: 28809

Re: Have you ever used your emergency fund?

We used to have 6 months of expenses in our online savings account as our EF but never had to use it. Once our taxable grew to several years of expenses, we decided to just roll our EF into it and made it part of our entire portfolio. We do keep 2-3 months expenses in our checking for irregular or unforeseen expenses just in case. Otherwise we can use our credit cards if we ever had to pay for something that exceeds our checking account. Just recently we got hit with a 2k ambulance bill due to my son having a severe allergic reaction that needed an Epipen ( I guess this counts as using our emergency). Thankfully, we have the funds in our checking to pay it off and can easily refill it back up through cash flow. So far this method has worked...
by jsapiandante
Tue Jan 31, 2023 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: What Age & How Much Money? (Your Plan)
Replies: 185
Views: 26028

Re: What Age & How Much Money? (Your Plan)

40
$2 mil (this is fat fire to us)
53 (my age when my son is off to college)
by jsapiandante
Fri Jan 20, 2023 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Being young & aggressive
Replies: 39
Views: 3915

Re: Being young & aggressive

rage_phish wrote: Fri Jan 20, 2023 9:15 am I have always lived by the “we’re young and can be aggressive in our investments”. My wife and I are 100% stocks.

But while I still feel like I’m young…I’m actually turning 40 this year


Is there any rules or guidance as to when people generally start adjusting their AA with age?
I am 40 now. Up until a couple of years ago, we were 100% stocks. We have since glided down to 80% as of right now and will continue down to 75% with new contributions. Reason why we started the glide is we are near FI. So our mindset went from wealth accumulation to wealth preservation. If you are still ways away from FI, I can get behind being 100% still.
by jsapiandante
Wed Nov 30, 2022 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Probably a naïve issue. Pay mortgage or invest.
Replies: 63
Views: 5768

Re: Probably a naïve issue. Pay mortgage or invest.

When you can earn more after tax on low-risk bonds than on the mortgage, you can create a "mortgage payoff fund" in those bonds, and use that to make the mortgage payments. You will earn more in interest than you pay, and if interest rates ever change to make that not the case, you can sell your bonds for a capital gain to pay off the mortgage in the future. Pardon my ignorance, but let’s say I have the full principal balance in a taxable bond fund. Is it as simple as just withdrawing the monthly mortgage amount to pay it? I ask because I currently have enough in my taxable (90/10 stock/bond) to fully pay off my mortgage if I wanted to. I have no intention to pay it off as I would incur huge capital gains tax to do so. But I did ...
by jsapiandante
Tue Nov 29, 2022 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: Probably a naïve issue. Pay mortgage or invest.
Replies: 63
Views: 5768

Re: Probably a naïve issue. Pay mortgage or invest.

When you can earn more after tax on low-risk bonds than on the mortgage, you can create a "mortgage payoff fund" in those bonds, and use that to make the mortgage payments. You will earn more in interest than you pay, and if interest rates ever change to make that not the case, you can sell your bonds for a capital gain to pay off the mortgage in the future. Pardon my ignorance, but let’s say I have the full principal balance in a taxable bond fund. Is it as simple as just withdrawing the monthly mortgage amount to pay it? I ask because I currently have enough in my taxable (90/10 stock/bond) to fully pay off my mortgage if I wanted to. I have no intention to pay it off as I would incur huge capital gains tax to do so. But I did ...
by jsapiandante
Wed Aug 31, 2022 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Did you actually execute coast FIRE on your stop saving age?
Replies: 96
Views: 12810

Re: Did you actually execute coast FIRE on your stop saving age?

My problem with this is that it makes the assumption that you will be fully employed and able to fund your lifestyle for the next 22 years without touching savings. Additionally, Coast FIRE only really works if your expenses are low enough that you can easily get multiple BS jobs on demand that will cover your expenses. If you still have to show up to an office 46 wks/year it’s not really coasting. If you currently make $300k/yr and downgrade to a job that pays $120k/yr there is no guarantee you’ll be “coasting” to the end. Better to just put the pedal to the metal and become FI early. Conversely your kids are only young once Was going to ask this question myself as we are in the same boat. Not high a net worth as you but we are in Lean FI...
by jsapiandante
Wed Aug 24, 2022 5:23 pm
Forum: Personal Consumer Issues
Topic: 80 yr.old and Las Vegas Blowout---UPDATE2-The Return Report
Replies: 55
Views: 8769

Re: 80 yr.old and Las Vegas Blowout

7eight9 wrote: Wed Aug 24, 2022 5:12 pm Either set up a line of credit or call the Cage and get wiring instructions.

Bacchanal Buffet at Caesars is worthy of your consideration.
+1 on Bacchanal. Wicked Spoon at Cosmopolitan is worth a try too as far as buffet goes. Craftsteak at MGM is another one if you fancy a good piece of steak.
by jsapiandante
Tue Aug 02, 2022 2:48 pm
Forum: Personal Investments
Topic: How often do you make your buys in your IRA/After Tax Brokerage/HSA?
Replies: 12
Views: 1116

Re: How often do you make your buys in your IRA/After Tax Brokerage/HSA?

We fully fund our Roth and Traditional IRA (12k) at the beginning of every year. 401k is bi monthly. After tax brokerage is at the end of every quarter in order to get us to spend more (we have failed at this every year since we implemented this strategy). It has resulted though in a mid to high six figure balance that can be used for early retirement, mortgage payoff, vacations, etc.
by jsapiandante
Tue Jul 19, 2022 12:53 am
Forum: Personal Finance (Not Investing)
Topic: Would you if you could?? [Reduce Work Hours]
Replies: 66
Views: 6243

Re: Would you if you could?? [Reduce Work Hours]

We probably need more info to give you better advice about your situation and what stage in your life you’re in. If you’re just starting out, then obviously it wouldn’t be a good idea. If you’re older and nearing retirement, then sure, it can definitely work out on your favor.

Personally, I would have to have some contingencies before I pull back my hours like that. One of them is at the minimum be financially independent. Another is the reduced pay of 25% still allows me to contribute the max to my retirement without sacrificing my current lifestyle.
by jsapiandante
Mon Jul 11, 2022 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: Spending on family trips / experiences
Replies: 42
Views: 4821

Re: Spending on family trips / experiences

Agree with the poster above. As long as you're meeting your financial goals, however you spend your money outside of that shouldn't matter. If it makes you and your family happy, then keep spending/splurging on these experiences while you can. Pretty soon you may not be able to go with your kids once they get older.
by jsapiandante
Thu Jul 07, 2022 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Why you need a rainy day fund
Replies: 140
Views: 17274

Re: Why you need a rainy day fund

For most folks, the single biggest need for an emergency fund comes from unexpected job loss. A 3-6 month EF could easily be tens of thousands of dollars, paling the cost of replacing a refrigerator or a transmission. Owing largely to my job security, we folded our EF into our regular portfolio several years ago, though we still use our 'irregular and non-monthly expense' fund. Same with us with our EF. We used to carry 6 months worth of expenses in our savings but decided to roll it all over to our taxable account. Now our taxable will be our emergency fund. Even with the recent market decline we have 10+ years of expenses to use up. We have rolling 3 months of expenses in our checking, everything else that's not spent is invested in our ...
by jsapiandante
Mon May 23, 2022 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Bogleheads at/Aiming For 2% SWR
Replies: 270
Views: 20690

Re: Bogleheads at/Aiming For 2% SWR

These discussions about SWR never touch on a couple key points: 1) What portion of expenses comprise the given percentage? If my base expenses (housing, utilities, food, transportation) are $40k and I have a $1mm portfolio then I have a 4% SWR...but not much flexibility. If my base expenses are $20k and I have another $20k in discretionary spending with that same portfolio then I have either a 4% or a 2% SWR depending on my perspective. Clearly, I'd rather be in that latter category. But everyone's definition of "SWR" is likely somewhat different. How many people are really aiming for 2%, including all discretionary spending? 2) There are many more "failures" of a portfolio rather than just running out of money. Look at...
by jsapiandante
Wed May 18, 2022 7:12 pm
Forum: Personal Investments
Topic: When to enter the market?
Replies: 56
Views: 6001

Re: When to enter the market?

Time in the market, not timing the market.

The best time to invest was yesterday. The next best time is today.

You're 21 years old. What you decide to put in this year, whether it's DCA or lump sum will only make a microfraction difference decades down the road.