Search found 31157 matches

by KlangFool
Mon Mar 18, 2024 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: basic expense tracking
Replies: 18
Views: 1146

Re: basic expense tracking

KlangFool, I think we are on the same page with the approach. Perhaps I was sloppy in my explanation. Let me try again. Account A = checking Account B = brokerage/savings All money goes into Account A. All money also goes out of Account A. Money that goes out of Account A is either sent to account B or spent. So, as long as Account A is not increasing or decreasing in value. Total out of Account A minus amount sent to Account B = amount spent. Good point though on depositing a fixed amount in spending account and monitoring for constant balance. In the past, I have not tried to keep the balance constant or to deposit only a fixed amount. Just transferred money out of spending account to Account B ad hoc. Agree setting a fixed balance and d...
by KlangFool
Mon Mar 18, 2024 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: basic expense tracking
Replies: 18
Views: 1146

Re: basic expense tracking

OP,

For example, if you believe that you only spend 60K per month.

A) You keep 15K in your checking account

B) You deposit 5K per month into your checking account.

C) If you have less than 15K in the checking account after 1 year, you know that you spend more than 60K per year.

D) If you have more than 15K in the checking account after 1 year, you know that you spend less than 60K per year.

E) Every month, you just look at your checking account's balance, you know that whether you are under or over the budgeted expense.

It is a very simple and effective system.

KlangFool
by KlangFool
Mon Mar 18, 2024 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: basic expense tracking
Replies: 18
Views: 1146

Re: basic expense tracking

So, I didn't use this yet: Gross Income = annual expense + annual savings/investment + taxes I realize taxes are an expense, but vary with income so rather than worry about gross income, taxes and 401k savings, I just did the below. What am I missing out on in this approach? All paychecks, spending, and transfer to brokerage go through one account. I just used total amount out of this account minus amount out that was sent to brokerage to get total spending. newbogleheader02, "All paychecks, spending, and transfer to brokerage (A) go through one account (B)." "I just used total amount out of this account (C) minus amount out that was sent to brokerage (D) to get total spending." You do not know what you missed. How many...
by KlangFool
Mon Mar 18, 2024 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Has the 401k been a net positive or negative?
Replies: 21
Views: 1118

Re: Has the 401k been a net positive or negative?

I would argue affordability is an issue. If you make $20 an hour most likely even contributing 3% to your 401k is going to be very tough. But another issue is the 401k also requires you to be somewhat financially literate. You can easily make very expensive mistakes in a 401k that you can’t in a pension. It seems that 401k plans have overwhelmingly helped high earners and the decline of the pension has overwhelmingly hurt low earners. I disagreed! At that low income level, EITC and Saver's credit kick in. Aka, negative tax. So, IRS pays you. Why is this tough when you are paid by IRS to contribute to the 401K? KlangFool The numbers do not paint a good picture for low income earners benefit from 401k plans. https://www.gao.gov/blog/growing-...
by KlangFool
Mon Mar 18, 2024 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Has the 401k been a net positive or negative?
Replies: 21
Views: 1118

Re: Has the 401k been a net positive or negative?

bucky6225 wrote: Mon Mar 18, 2024 4:30 pm I would argue affordability is an issue. If you make $20 an hour most likely even contributing 3% to your 401k is going to be very tough.

But another issue is the 401k also requires you to be somewhat financially literate. You can easily make very expensive mistakes in a 401k that you can’t in a pension.

It seems that 401k plans have overwhelmingly helped high earners and the decline of the pension has overwhelmingly hurt low earners.
I disagreed! At that low income level, EITC and Saver's credit kick in. Aka, negative tax. So, IRS pays you. Why is this tough when you are paid by IRS to contribute to the 401K?

KlangFool
by KlangFool
Mon Mar 18, 2024 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Has the 401k been a net positive or negative?
Replies: 21
Views: 1118

Re: Has the 401k been a net positive or negative?

OP,

You do realized that some of those pension are binary in nature. Aka, you either vested after n years of services or you get absolutely nothing. And, some of my peers on those pension plans are laid of a few months before they are vested. For example, one guy has 29 years and 6 month of service. Then, the employer laid him off. He would had gotten nothing from his pension. In this case, he claimed some kind of disability and they cannot laid him off until 6 months later. Some other folks are not as lucky.

So, please explain to me how this pension system is better than 401K?

KlangFool
by KlangFool
Mon Mar 18, 2024 4:34 pm
Forum: Personal Investments
Topic: Traditional IRA versus 529 versus 401k - order of priority advice
Replies: 22
Views: 753

Re: Traditional IRA versus 529 versus 401k - order of priority advice

OP, He cannot afford to pay for the college education. So, how does it makes any sense for him to pay 20+% taxes to contribute to the 529s? He should max up his Trad 401K first and then Roth IRA before thinking of contributing to 529s. KlangFool He made 140k last year and probably will be 150k this year. Since he has the 401k, doesn't that eliminate him from tax deductible contributions to the traditional and disqualify him from Roth (unless we are talking back door Roth)? No? https://www.nerdwallet.com/article/investing/roth-ira-contribution-limits "To contribute to a Roth IRA, single tax filers must have a modified adjusted gross income (MAGI) of less than $153,000 in 2023. In 2024, the threshold rises to $161,000." It is based...
by KlangFool
Mon Mar 18, 2024 4:11 pm
Forum: Personal Investments
Topic: Traditional IRA versus 529 versus 401k - order of priority advice
Replies: 22
Views: 753

Re: Traditional IRA versus 529 versus 401k - order of priority advice

OP,

He cannot afford to pay for the college education. So, how does it makes any sense for him to pay 20+% taxes to contribute to the 529s? He should max up his Trad 401K first and then Roth IRA before thinking of contributing to 529s.

KlangFool
by KlangFool
Mon Mar 18, 2024 10:24 am
Forum: Non-US Investing
Topic: How well are my finances set for bootstrap startup? [Singapore]
Replies: 11
Views: 559

Re: How well are my finances set for bootstrap startup?

A) In general, besides zero income, you probably have to invest some money into getting the start up started. Where would that pile of money comes from? B) Or, you are using other's money to fund the start up. Then, why would you be zero income? KlangFool I'm bootstrap so I may need to invest some money to get started... but I'm creating software and can build and launch with just myself and sweat equity if needed. Using AI to support writing software these days really does reduce development costs if you have the right talent ;). If I need capital, I'll raise angel but my conservative assumption is that Angel will pay for what needs to go into the startup, not to pay myself. If I do well, Ill get either revenue, seed, Series A or exit, wh...
by KlangFool
Mon Mar 18, 2024 9:57 am
Forum: Non-US Investing
Topic: How well are my finances set for bootstrap startup? [Singapore]
Replies: 11
Views: 559

Re: How well are my finances set for bootstrap startup?

OP,

A) In general, besides zero income, you probably have to invest some money into getting the start up started. Where would that pile of money comes from?

B) Or, you are using other's money to fund the start up. Then, why would you be zero income?

KlangFool
by KlangFool
Mon Mar 18, 2024 6:46 am
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 11087

Re: Can I retire with $1.75M at age 43?

smartinvestor2020 wrote: Sun Mar 17, 2024 11:18 pm
KlangFool wrote: Sun Mar 17, 2024 7:44 pm OP,

1) What is the size of your portfolio and composition of your portfolio?

2) For example, it could be 1.5 millions in Tesla stock.

3) "It Depends" on your actual annual expense and how accurate your estimate is.

KlangFool
$1.75M in a balanced portfolio. About 60/40 stocks to bonds.

All liquid. I am a renter intending to move to a cheaper location within a few years at the latest.
Then, you should be fine. Just allocate additional 10K to medical and dental expenses.

KlangFool
by KlangFool
Sun Mar 17, 2024 7:44 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 11087

Re: Can I retire with $1.75M at age 43?

OP,

1) What is the size of your portfolio and composition of your portfolio?

2) For example, it could be 1.5 millions in Tesla stock.

3) "It Depends" on your actual annual expense and how accurate your estimate is.

KlangFool
by KlangFool
Sun Mar 17, 2024 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: basic expense tracking
Replies: 18
Views: 1146

Re: basic expense tracking

It does not work. Lumpy expense is a fact of life even in retirement. Month to month expense does not work. Annual expense gives you a better picture. I expected a lot of variability month to month going into retirement. I will say that I have been surprised at how much variability there is year to year. I didn't have a specific "prediction" per se, but when I look at annual data over the last 15 years, my sense is that I would not have predicted as wide a range as occurred. jebmke, You do. I don't. I do strict "Pay Yourself First" saving method with only 60K per year to spend (except when paying for the college education). And, I spend less on my house with a lowered fixed annual expense. To each its own. If it works f...
by KlangFool
Sun Mar 17, 2024 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: basic expense tracking
Replies: 18
Views: 1146

Re: basic expense tracking

- if monthly expenses exceed available funds, pull from emergency fund (mostly for lumpy expenses, annual insurances, property tax, splurge, unforeseen expense, etc.) newbogleheader02, It does not work. Lumpy expense is a fact of life even in retirement. Month to month expense does not work. Annual expense gives you a better picture. Gross Income = annual expense + annual savings/investment + taxes A) You know your annual savings/investment in 2023. B) You know your gross income in 2023 C) You know your Federal, State, Social Security and Medicare taxes in 2023. D) So, you know your annual expense in 2023. E) I set up my checking account as the spending account with 3 months of expense. You can change this to 1 to 2 months. F) The rest of ...
by KlangFool
Sun Mar 17, 2024 11:08 am
Forum: Personal Consumer Issues
Topic: Need Help Finding a Hobby
Replies: 76
Views: 5988

Re: Need Help Finding a Hobby

Johm221122 wrote: Sun Mar 17, 2024 10:20 am
KlangFool wrote: Sun Mar 17, 2024 2:46 am
Johm221122 wrote: Thu Mar 14, 2024 1:13 pm Music
I listen to one album a day. When I was a kid we never had such access to whole albums as YouTube allows you today. My daily dose of listening to one Rock album is so enjoyable.
Could you please recommend a YouTube channel for this?

Thanks in advance!!

KlangFool
I just use the search feature

I typed in for example"Warren zevon full album Excitable Boy"
Thanks.

KlangFool
by KlangFool
Sun Mar 17, 2024 2:46 am
Forum: Personal Consumer Issues
Topic: Need Help Finding a Hobby
Replies: 76
Views: 5988

Re: Need Help Finding a Hobby

Johm221122 wrote: Thu Mar 14, 2024 1:13 pm Music
I listen to one album a day. When I was a kid we never had such access to whole albums as YouTube allows you today. My daily dose of listening to one Rock album is so enjoyable.
Could you please recommend a YouTube channel for this?

Thanks in advance!!

KlangFool
by KlangFool
Sat Mar 16, 2024 5:55 pm
Forum: Investing - Theory, News & General
Topic: Theoretically, would VTI be an effective long term retirement investment, even when held in a taxable account ?
Replies: 30
Views: 2984

Re: Theoretically, would VTI be an effective long term retirement investment, even when held in a taxable account ?

OP,

1) At what low income level?

2) At low enough income, contributing to tax deferred account triggered tax credit like Earned Income Tax Credit (EITC) or Saver's credit. So, beside not paying taxes, the person may receive tax refund from IRS. Aka, negative taxes.

3) Then, later on, the low income folks can Roth convert at 0% tax bracket. So, never pay any taxes.

4) Please explain to me how taxable investing aka paying taxes or zero taxes can beat negative taxes?

5) So, "it depends".

6) Before you says that it is impossible, we have a forum member that does this consistently.

7) Perhaps, you should start a new topic on how low income folks can play the tax management game and ask for examples.

KlangFool
by KlangFool
Sat Mar 16, 2024 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes: Taxable Mutual Fund to Vanguard Brokerage
Replies: 2
Views: 282

Re: Taxes: Taxable Mutual Fund to Vanguard Brokerage

jebmke wrote: Sat Mar 16, 2024 4:59 pm That looks right. I do the same. I rack up all the Treasury pieces from the supporting detail and then divide by the total in 1a from the 1099-Div summary.

In my state module there is also a place I could just put in the dollar amount and skip the entry on the Federal but I have traditionally made the entry on the dialog in the Federal section and it works fine.
Thanks.

KlangFool
by KlangFool
Sat Mar 16, 2024 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes: Taxable Mutual Fund to Vanguard Brokerage
Replies: 2
Views: 282

Taxes: Taxable Mutual Fund to Vanguard Brokerage

Folks, In 2023, I transitioned my Vanguard taxable account from Mutual Fund to Vanguard Brokerage A/C. In my Vanguard Brokerage account, I hold my cash in VUSXX (Treasury Money Market Fund). For 2023, I received both consolidated statement for my brokerage A/C plus 1099-B and 1099-DIV for my mutual fund account. My understanding is all my dividend in my brokerage account is reported in my consolidate statement. And, how do I put the percentage amount into my tax software? Let's assume that my box 1a is $8,000, box 1b = $4,000, VUSXX dividend = $3,000. And, VUSXX is 80% US government obligation, what is the US Government obligation percentage number that I need to put into my H&R Block Tax software? 80% of $3,000 = $2,400. $2,400 of $8,0...
by KlangFool
Sat Mar 16, 2024 3:43 pm
Forum: Investing - Theory, News & General
Topic: Anybody heard stories of well "prepared" retirees running out of money?
Replies: 90
Views: 10257

Re: Anybody heard stories of well "prepared" retirees running out of money?

OP,

My good friend worked for Enron for 22 years. He lost his whole 401K and closed to 1 million. He retired at 62 years old. He is doing fine. He is well prepared.

KlangFool
by KlangFool
Sat Mar 16, 2024 3:07 pm
Forum: Personal Investments
Topic: Please check my thinking about changing my Roth account from VTIAX to VTSAX
Replies: 42
Views: 3429

Re: Please check my thinking about changing my Roth account from VTIAX to VTSAX

OP,

A) I put Total World Index Fund in my Roth IRA to avoid this discussion totally.

B) You are "market timing". It may or may not work out well correctly. Are you lucky?

KlangFool
by KlangFool
Sat Mar 16, 2024 3:00 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3209

Re: Retire in 7 years, getting close enough to plan

1. We are hoping to retire in about 7 years, when husband turns 59.5 (I will be 58). At that time, we would need to keep income under ACA thresholds for subsidies and probably withdraw some funds from the retirement accounts in addition to cash. I need a target for how much we need in taxable and how much we need to save each year on top of the maximum contributions to 401k, Roth and HSA. Right now, I think 300K might be right?? Target expenses $10k/month. (I may have overestimated, but I want to allow for travel, home improvements, new cars, medical, etc.) verbose, A) How is that possible with an annual expense of 120K per year? B) The good news is I do not think your estimate of retirement annual expense of 120K per year to be accurate. ...
by KlangFool
Sat Mar 16, 2024 2:48 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3209

Re: Retire in 7 years, getting close enough to plan

verbose wrote: Sat Mar 16, 2024 2:42 pm
Expenses: I have completed this exercise using actual numbers (I have tracking applications) and estimated the numbers for the years before Medicare and before Social Security. I included taxes. The number, which seems very high to me, is $10K/month, or $120K per year. Why is that number so high?
verbose,

A) Please give us the expense number without taxes. I still do not think your number to be accurate. What is your gross household income?

B) The problem with the bottom up calculation is if you miss something, the number will be too low.

C) The top down (starting with gross income) approach will not miss any number, it can over estimate the expense but it will under estimate. It gives you the maximum possible numbers.

KlangFool
by KlangFool
Sat Mar 16, 2024 2:43 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3209

Re: Retire in 7 years, getting close enough to plan

1. We are hoping to retire in about 7 years, when husband turns 59.5 (I will be 58). At that time, we would need to keep income under ACA thresholds for subsidies and probably withdraw some funds from the retirement accounts in addition to cash. I need a target for how much we need in taxable and how much we need to save each year on top of the maximum contributions to 401k, Roth and HSA. Right now, I think 300K might be right?? Target expenses $10k/month. (I may have overestimated, but I want to allow for travel, home improvements, new cars, medical, etc.) verbose, A) How is that possible with an annual expense of 120K per year? B) The good news is I do not think your estimate of retirement annual expense of 120K per year to be accurate. ...
by KlangFool
Sat Mar 16, 2024 2:40 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3209

Re: Retire in 7 years, getting close enough to plan

OP,

1) Please provide the total dollar amount in each account.

2) What is your plan for health insurance since you are retiring before Medicare age (65 years old).

3) What is your current tax deferred account size?

4) What is your current annual expense?\

5) What is your current gross household income?

6) I did a quick estimate with the following formula

Gross income = current annual expense + current annual savings/investment + taxes

I do not believe your estimate of retirement expense of 120K per year to be accurate. You may want to use the above formula to check.

7) How old are your kids? How many kids?

KlangFool
by KlangFool
Sat Mar 16, 2024 2:34 pm
Forum: Personal Investments
Topic: Retire in 7 years, getting close enough to plan
Replies: 22
Views: 3209

Re: Retire in 7 years, getting close enough to plan

verbose wrote: Sat Mar 16, 2024 2:26 pm
Watty wrote: Fri Mar 15, 2024 9:40 pm Unless I missed it your did not say what your expenses will be, what your Social Security will be, what your house is worth, and how large your mortgage and mortgage payment is. You can edit your post using the icon with the pencil on it to add that information so that you might get better responses.
I edited the post. I didn't see the point of putting in a mortgage payment because even if we don't pre-pay it, it pays off in 7 years, which is right when we plan to retire. So, it will be gone. The monthly mortgage right now is $2248 (includes taxes and insurance).
verbose,

It may matter because you may not want to pay off the mortgage if you need to retire early.

KlangFool
by KlangFool
Sat Mar 16, 2024 6:58 am
Forum: Personal Finance (Not Investing)
Topic: Am I crazy for considering a home purchase.
Replies: 19
Views: 1581

Re: Am I crazy for considering a home purchase.

OP, 1) Why renting at the new location is not an option? 2) You can't afford this house. And, you know it. 3) What is your current annual expense? 4) What is your current annual savings/investment? 5) It is obvious to you and me that you can't afford this house without substantial increases in income. KlangFool 1) We could, but would result in a significant rent increase from where we are now. Probably in the 3k range. 2) I think you've got me here 3) Outside of Rent, expenses are about 3800/month, 45,000 a year. 4) 1200/month into ER sponsored retirement plan. If we stay in this apartment we will save an additional 40k in cash this year. 1) You can afford to rent at the new location. You cannot afford to buy this new house at the new loca...
by KlangFool
Sat Mar 16, 2024 6:43 am
Forum: Personal Finance (Not Investing)
Topic: Am I crazy for considering a home purchase.
Replies: 19
Views: 1581

Re: Am I crazy for considering a home purchase.

OP,

1) Why renting at the new location is not an option?

2) You can't afford this house. And, you know it.

3) What is your current annual expense?

4) What is your current annual savings/investment?

5) It is obvious to you and me that you can't afford this house without substantial increases in income.

KlangFool
by KlangFool
Fri Mar 15, 2024 6:12 pm
Forum: Investing - Theory, News & General
Topic: Should I Keep Sacrificing or Start Enjoying Myself
Replies: 32
Views: 3559

Re: Should I Keep Sacrificing or Start Enjoying Myself

Moral of the story, I'm 33 now and I'm addicted to being frugal and investing every penny. I still invest 50% of my income, live off 30%, and put 20% in a cash reserve for emergencies. Should i start enjoying myself and letting the gas off the pedal? My biggest fear is getting complacent with my finances and looking back wishing I should of kept the money. Then again, I fear letting life pass me by and not enjoying myself on the journey. playboy_number9, What income? After-tax income? Gross Income? It is very simple. Save 1 year of expense every year and spend the rest. Save and spend the same amount. It is a balanced approach. Do "Pay Yourself First". Save first and spend later. Automate your savings from your paycheck to the in...
by KlangFool
Fri Mar 15, 2024 3:25 pm
Forum: Investing - Theory, News & General
Topic: Holding 100% stocks after FI best option for longer time horizons?
Replies: 74
Views: 8106

Re: Holding 100% stocks after FI best option for longer time horizons?

Folks,

Essentially, some people claim that even in the worst case, their floor of withdrawal can drop to 2% and they will be fine. This essentially means that their portfolio is 50X of bigger whatever bare essential expense is.

However, if you are not one of those person can or willing to live on 2% of your portfolio, then, the whole model/discussion broke down.

KlangFool
by KlangFool
Fri Mar 15, 2024 8:52 am
Forum: Personal Consumer Issues
Topic: Need Help Finding a Hobby
Replies: 76
Views: 5988

Re: Need Help Finding a Hobby

artvandelay7 wrote: Thu Mar 14, 2024 12:52 pm
I also enjoy making coffee,
artvandelay7,

1) I spend 20+ years researching and improving my coffee making skill. Now, I am into home roasting coffee bean. And, I just bought a coffee grinder: Fellow Ode Gen 2.

It is great to give away some of my home roasted coffee beans to friends and families. They appreciated that.

2) Some kind of sport club: Running, Walking, Tennis, Biking.

KlangFool
by KlangFool
Fri Mar 15, 2024 8:03 am
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15186

Re: 5M, probably enough to retire to a frugal lifestyle

KyleAAA, As per your family experience. My ancestor comes from a place that suffered 800+ famines across 800+years. It is a norm to leave your family in order to survive. It is a luxury to stay in one place. To you as a norm. To others is a luxury. Your experience and point of view is not necessary shared by others. To each its own. KlangFool To be clear, this place you speak of, it suffered a famine virtually every year for 800+ years (one harvest a year I presume)? So every single year for almost a millennium the crop came in well below average yields? ScubaHogg, There are many places in the world where agriculturally is not a good place even in a good time. So, you only get bad and worst time. And, if the agriculture was the only way to...
by KlangFool
Fri Mar 15, 2024 7:03 am
Forum: Investing - Theory, News & General
Topic: Considering ditching the Target-Date Fund, and making my own portfolio with small-caps overweighted
Replies: 7
Views: 1025

Re: Considering ditching the Target-Date Fund, and making my own portfolio with small-caps overweighted

OP,

10% of my portfolio is in SmallCapValue for Risk mitigation of stock bubble tend to contribute by LargeCapGrowth. It is not for excess return.

KlangFool
by KlangFool
Fri Mar 15, 2024 7:00 am
Forum: Investing - Theory, News & General
Topic: Considering ditching the Target-Date Fund, and making my own portfolio with small-caps overweighted
Replies: 7
Views: 1025

Re: Considering ditching the Target-Date Fund, and making my own portfolio with small-caps overweighted

OP,

You should adjust your target date retirement fund to be less aggressive and put 10% of your portfolio into SmallCapValue.

KlangFool
by KlangFool
Fri Mar 15, 2024 6:54 am
Forum: Personal Finance (Not Investing)
Topic: The best game-changing financial advice you ever received (or "discovered")
Replies: 120
Views: 11102

Re: The best game-changing financial advice you ever received (or "discovered")

Don't be 100% stock. At my saving rate of 1 year of expense every year, 70/30 is more than enough. 100% stock does not really do much for me.

KlangFool
by KlangFool
Fri Mar 15, 2024 6:50 am
Forum: Personal Investments
Topic: Cash or CD's Instead of Bond Funds
Replies: 61
Views: 5442

Re: Cash or CD's Instead of Bond Funds

DireStraits wrote: Thu Mar 14, 2024 12:51 pm Is anyone holding cash or CD's in lieu of bond funds to achieve the proper asset allocation?
Not me. Cash is not the same as the bond. I have both.

KlangFool
by KlangFool
Fri Mar 15, 2024 6:47 am
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15186

Re: 5M, probably enough to retire to a frugal lifestyle

Folks, I spend 60K per year. Given that the US Median annual household income is 60K per year, I am not frugal. I spend as much as US median household. As for folks that spend a lot more than 60K per year and still like to claim that they are frugal, I have no idea.... KlangFool The Bentley does not fuel itself, sir! The Bentley does not roast my coffee bean. Whoever in this story probably does not have the time to A) Roast their own coffee bean B) Grind and brew their coffee properly. C) Take the time to drink and enjoy their coffee properly. So, this is a very poor person that does not have the time to enjoy a simple cup of coffee every day. Time is the biggest luxury for someone who have enough. KlangFool You roast your own beans? Sir, ...
by KlangFool
Thu Mar 14, 2024 7:06 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15186

Re: 5M, probably enough to retire to a frugal lifestyle

KyleAAA wrote: Thu Mar 14, 2024 6:57 pm
Not everybody can just up and move to Arkansas. Few would consider it particularly luxurious to live near family, considering that's long been the norm of human existence.
KyleAAA,

As per your family experience. My ancestor comes from a place that suffered 800+ famines across 800+years. It is a norm to leave your family in order to survive. It is a luxury to stay in one place.

To you as a norm. To others is a luxury. Your experience and point of view is not necessary shared by others.

To each its own.

KlangFool
by KlangFool
Thu Mar 14, 2024 6:55 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15186

Re: 5M, probably enough to retire to a frugal lifestyle

KyleAAA wrote: Thu Mar 14, 2024 6:50 pm
Even if your house is paid off, it can easily cost $40-50k per year in taxes and maintenance on a normal 3br/2ba home in a VHCOL area like coastal California. Income taxes are also high. The emphasis on VHCOL should be on the V. Until you move from a MCOL city to a VHCOL city, it's hard to fathom just how much of a price jump it is. I only live in Seattle, which is much cheaper than the bay area, and my usual response to seeing a $1.2m teardown house is that I should probably buy 3 because it's such a good deal.
KyleAAA,

And, if you make enough money to live in that area with your lifestyle, more power to you. But, it is choice. It is a luxury. It is not a frugal life style.

KlangFool
by KlangFool
Thu Mar 14, 2024 6:41 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15186

Re: 5M, probably enough to retire to a frugal lifestyle

carminered2019 wrote: Thu Mar 14, 2024 5:55 pm
KlangFool wrote: Thu Mar 14, 2024 5:52 pm
carminered2019 wrote: Thu Mar 14, 2024 5:46 pm
Do you even know how much a 600 sf apartment rent for in coastal town in Socal ?

Do you know that the world is bigger than the coastal town in Socal?

It is a choice to live in that area. It is a luxury.

KlangFool
But you are comparing your standard of living from a low cost of living state to one of the highest cost of living states in America.
It is a luxury to live in one of the highest cost of living area. Some folks choose it.

KlangFool
by KlangFool
Thu Mar 14, 2024 5:52 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15186

Re: 5M, probably enough to retire to a frugal lifestyle

carminered2019 wrote: Thu Mar 14, 2024 5:46 pm
Do you even know how much a 600 sf apartment rent for in coastal town in Socal ?

Do you know that the world is bigger than the coastal town in Socal?

It is a choice to live in that area. It is a luxury.

KlangFool
by KlangFool
Thu Mar 14, 2024 5:50 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15186

Re: 5M, probably enough to retire to a frugal lifestyle

Folks,

It is very simple.

I save a lot of money but I spend 60K per year. To claim that I am frugal is an insult to the household that earn 60K or less per year and try to save 10K to 20K per year. Those people are frugal. They spend a lot less than the median household.

My only compromise to save a lot of money is to spend a lot less on my house. Meanwhile, the lowered income folks actually has to sacrifice a lot more. I know that because I came from an abject poverty background and we were still saving.

KlangFool
by KlangFool
Thu Mar 14, 2024 5:42 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15186

Re: 5M, probably enough to retire to a frugal lifestyle

the price increase after vs before covid is about 40%. (don't ask me where this number is coming coming from, just shop a house and get a hair cut and you will know, ask UAW worker why they insist a 40% pay raise). So today's 5M is about 3M or 2.5M in 2019. Go figure. People who are frugal do not go into shops to get a haircut; they do it at home. Such “haircuts” to a budget divide the supposedly frugal from the actually frugal. That brings up the question of whether frugality is relative or absolute. Merriam-Webster says frugal means “characterized by or reflecting economy in the use of resources” If a family grosses $500,000 but spends just $100,000 (excluding taxes), is it frugal? I’d argue yes, regardless of what the money is spent on....
by KlangFool
Thu Mar 14, 2024 4:47 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15186

Re: 5M, probably enough to retire to a frugal lifestyle

KBR wrote: Thu Mar 14, 2024 4:33 pm
KlangFool wrote: Thu Mar 14, 2024 3:19 pm Folks,

I spend 60K per year. Given that the US Median annual household income is 60K per year, I am not frugal. I spend as much as US median household. As for folks that spend a lot more than 60K per year and still like to claim that they are frugal, I have no idea....

KlangFool
The Bentley does not fuel itself, sir!
The Bentley does not roast my coffee bean.

Whoever in this story probably does not have the time to

A) Roast their own coffee bean

B) Grind and brew their coffee properly.

C) Take the time to drink and enjoy their coffee properly.

So, this is a very poor person that does not have the time to enjoy a simple cup of coffee every day.

Time is the biggest luxury for someone who have enough.

KlangFool
by KlangFool
Thu Mar 14, 2024 3:19 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15186

Re: 5M, probably enough to retire to a frugal lifestyle

Folks,

I spend 60K per year. Given that the US Median annual household income is 60K per year, I am not frugal. I spend as much as US median household. As for folks that spend a lot more than 60K per year and still like to claim that they are frugal, I have no idea....

KlangFool
by KlangFool
Thu Mar 14, 2024 2:48 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15186

Re: 5M, probably enough to retire to a frugal lifestyle

Folks,

It is very simple.

You only need one word to be happy: enough.

You only need one word to be unhappy: more.

Heaven or hell is within you.
- Buddha

KlangFool
by KlangFool
Wed Mar 13, 2024 9:13 pm
Forum: Personal Consumer Issues
Topic: [What UN-frugal thing do you do? What do you splurge on?]
Replies: 785
Views: 82851

Re: [What UN-frugal thing do you do? What do you splurge on?]

Just bought a Fellow Ode Gen 2 Coffee Grinder. It should improve my daily coffee.

KlangFool
by KlangFool
Tue Mar 12, 2024 1:50 pm
Forum: Investing - Theory, News & General
Topic: Holding 100% stocks after FI best option for longer time horizons?
Replies: 74
Views: 8106

Re: Holding 100% stocks after FI best option for longer time horizons?

unwitting_gulag wrote: Tue Mar 12, 2024 1:19 pm
Luck cuts both ways. Remember 2022, when bonds fell as much as (or even more than) stocks...
unwitting_gulag,

Do you mean that the bonds drop 50%? 80%? Aka as much as stock ever was? Or, something else?

KlangFool
by KlangFool
Tue Mar 12, 2024 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Layoff/regisn offer but employer won't share terms
Replies: 20
Views: 2829

Re: Layoff/regisn offer but employer won't share terms

barnaclebob wrote: Tue Mar 12, 2024 10:19 am So if you say you are going to resign then dont like the terms you get nothing? That is very shady.
I disagreed. The shady part is on the employer. Employer is supposedly offer n months of severance if someone voluntary resign but refuse to disclose terms.

KlangFool
by KlangFool
Tue Mar 12, 2024 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Layoff/regisn offer but employer won't share terms
Replies: 20
Views: 2829

Re: Layoff/regisn offer but employer won't share terms

OP,

Why would you offer or accept a resignation without knowing the actual terms?

It is very simple.

Do nothing until you get something in writing. Even if you billable hours is low, they still have to wait for a few months before it is documented. In that case, you get a few extra months of pay.

KlangFool