Search found 9097 matches

by KlangFool
Fri Jul 20, 2018 2:07 pm
Forum: Personal Consumer Issues
Topic: Watch Collection Reasonable or Unreasonable or Irresponsible?
Replies: 100
Views: 3861

Re: Watch Collection Reasonable or Unreasonable or Irresponsible?

I've literally never heard of anyone wearing a fake whilst keeping the 'real' one in a safe. I've never even heard anyone claim that before. Perhaps KlangFool knows someone who has done that, but the idea that this is widespread practice is not correct. Also, your idea of them being purely for a st...
by KlangFool
Fri Jul 20, 2018 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on taxable account investments for retirement and down payment
Replies: 15
Views: 1556

Re: Advice on taxable account investments for retirement and down payment

I'm going to dissent about the buckets. You have a boat load of money in taxable and are adding to it at a high rate. I would consider all your money as one portfolio and invest it in the most tax-efficient way possible. How much house are you considering buying? Is your goal to pay cash? Depending...
by KlangFool
Fri Jul 20, 2018 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Should I Dump a Pile of Money on Young Son?
Replies: 123
Views: 7607

Re: Should I Dump a Pile of Money on Young Son?

I don't know OP's son. And I stated very plainly in my post above (not immediately above, read higher) that I was speaking generally from my own life experience. I believe giving lots of money to young people, in general, is a bad idea. Most estate planning lawyers agree with me. There are other wa...
by KlangFool
Fri Jul 20, 2018 7:58 am
Forum: Investing - Help with Personal Investments
Topic: Should I Dump a Pile of Money on Young Son?
Replies: 123
Views: 7607

Re: Should I Dump a Pile of Money on Young Son?

klneutral wrote:
Fri Jul 20, 2018 7:55 am

Should I worry about "ruining" him by dumping $1M on him so young?
klneutral,

Yes. He is doing fine living independently.

KlangFool
by KlangFool
Fri Jul 20, 2018 7:48 am
Forum: Personal Finance (Not Investing)
Topic: Giving up career growth for more time outside of work
Replies: 38
Views: 2549

Re: Giving up career growth for more time outside of work

Agree with this. If you want to make real money, this is where it is. Being an employee only takes you so far, especially when you try to play the megacorp ladder game. I left my job and became a consultant 8 years ago and it's been life changing. Income quadrupled over night, and have never worked...
by KlangFool
Thu Jul 19, 2018 8:56 pm
Forum: Personal Consumer Issues
Topic: [A Splendid Exchange, by William Bernstein - on sale for Kindle]
Replies: 19
Views: 1756

Re: Splendid Exchange Kindle Sale

Just purchased.

KlangFool
by KlangFool
Thu Jul 19, 2018 8:22 pm
Forum: Personal Consumer Issues
Topic: Watch Collection Reasonable or Unreasonable or Irresponsible?
Replies: 100
Views: 3861

Re: Watch Collection Reasonable or Unreasonable or Irresponsible?

OP, It is reasonable if your net worth is at least 20 times that. Aka, 20 X 80K = 1.6 million. KlangFool I think I agree with KlangFool. Personally, I would not want to have such a large fraction of my wealth tied up in something that generated no return. But I have made do with cheap Timex watches...
by KlangFool
Thu Jul 19, 2018 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Giving up career growth for more time outside of work
Replies: 38
Views: 2549

Re: Giving up career growth for more time outside of work

Plan to be FI between 50-55 T4REngineer, What are your annual expense and annual savings? My gut feeling says that it is probably between 45 to 50 on your current trajectory. Then, what is the point of trying to climb the corporate ladder? KlangFool You are correct, we are in that range (closer to ...
by KlangFool
Thu Jul 19, 2018 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Giving up career growth for more time outside of work
Replies: 38
Views: 2549

Re: Giving up career growth for more time outside of work

T4REngineer wrote:
Thu Jul 19, 2018 2:38 pm

Plan to be FI between 50-55
T4REngineer,

What are your annual expense and annual savings? My gut feeling says that it is probably between 45 to 50 on your current trajectory. Then, what is the point of trying to climb the corporate ladder?

KlangFool
by KlangFool
Thu Jul 19, 2018 2:49 pm
Forum: Personal Consumer Issues
Topic: Watch Collection Reasonable or Unreasonable or Irresponsible?
Replies: 100
Views: 3861

Re: Watch Collection Reasonable or Unreasonable or Irresponsible?

OP,

It is reasonable if your net worth is at least 20 times that. Aka, 20 X 80K = 1.6 million.

KlangFool
by KlangFool
Thu Jul 19, 2018 12:58 pm
Forum: Investing - Theory, News & General
Topic: Why age is not how to determine risk tolerance
Replies: 17
Views: 2064

Re: Why age is not how to determine risk tolerance

B) 100/0 is a lousy AA in term of risk-adjusted return. So, it is the wrong AA at any age. You can't eat risk-adjusted return. If you're not willing to use leverage, and you're willing to wait 30 years, the 100/0 AA will wind up with a higher balance even at 5th percentile stock market returns. Unl...
by KlangFool
Thu Jul 19, 2018 12:05 pm
Forum: Personal Consumer Issues
Topic: Watch Collection Reasonable or Unreasonable or Irresponsible?
Replies: 100
Views: 3861

Re: Watch Collection Reasonable or Unreasonable or Irresponsible?

Personally I'd feel a little weird and "poser'ish" by wearing a 5k+ dollar status symbol on my wrist when my income was less than six figures. 40 and just starting a Roth is not somewhere I'd want to be, but I'm not going to tell you how to spend your money. FlyAF, Sometimes, folks wear the imitati...
by KlangFool
Thu Jul 19, 2018 10:30 am
Forum: Personal Consumer Issues
Topic: Watch Collection Reasonable or Unreasonable or Irresponsible?
Replies: 100
Views: 3861

Re: Watch Collection Reasonable or Unreasonable or Irresponsible?

Personally I'd feel a little weird and "poser'ish" by wearing a 5k+ dollar status symbol on my wrist when my income was less than six figures. 40 and just starting a Roth is not somewhere I'd want to be, but I'm not going to tell you how to spend your money. FlyAF, Sometimes, folks wear the imitati...
by KlangFool
Thu Jul 19, 2018 10:20 am
Forum: Personal Consumer Issues
Topic: Watch Collection Reasonable or Unreasonable or Irresponsible?
Replies: 100
Views: 3861

Re: Watch Collection Reasonable or Unreasonable or Irresponsible?

OP, My older brother early retired at 49 years old after sending both kids to college. Now, he travels all over the world for leisure. He has a wristwatch collection. The cheapest watch in his collection is a Rolex. In summary, you may match my older brother in the wristwatch collection but you are ...
by KlangFool
Thu Jul 19, 2018 6:24 am
Forum: Personal Finance (Not Investing)
Topic: New book based on Millionaire Next Door
Replies: 64
Views: 9528

Re: New book based on Millionaire Next Door

The assumption that doctors, lawyers et cetera are wealthy because of their professions and often aren't because of student debt, the delay into the workforce and the image they often feel they need to project was excellent. I knew this to be true at about age 19. I was putting myself through colle...
by KlangFool
Thu Jul 19, 2018 6:20 am
Forum: Investing - Theory, News & General
Topic: Flatting Yield Curve - buckle up for the storm?
Replies: 27
Views: 2306

Re: Flatting Yield Curve - buckle up for the storm?

OP, A) If the stock market goes down 50% and stay down for n number of years and the person is unemployed at the same time, how long before the person is totally wiped out? B) If the stock market goes down 50% and stay down for n number of years and the person is unemployed at the same time, how lo...
by KlangFool
Wed Jul 18, 2018 6:17 pm
Forum: Investing - Theory, News & General
Topic: Flatting Yield Curve - buckle up for the storm?
Replies: 27
Views: 2306

Re: Flatting Yield Curve - buckle up for the storm?

OP, A) If the stock market goes down 50% and stay down for n number of years and the person is unemployed at the same time, how long before the person is totally wiped out? B) If the stock market goes down 50% and stay down for n number of years and the person is unemployed at the same time, how lon...
by KlangFool
Wed Jul 18, 2018 6:08 pm
Forum: Investing - Theory, News & General
Topic: Flatting Yield Curve - buckle up for the storm?
Replies: 27
Views: 2306

Re: Flatting Yield Curve - buckle up for the storm?

livesoft wrote:
Wed Jul 18, 2018 5:57 pm
OK, which bond funds will do best before the Recession is noticed and which one's will do best as the Recession is noticed and which one's will do best after the Recession is declared?
Short-term treasury for all 3 cases?

KlangFool
by KlangFool
Wed Jul 18, 2018 11:35 am
Forum: Personal Finance (Not Investing)
Topic: New book based on Millionaire Next Door
Replies: 64
Views: 9528

Re: New book based on Millionaire Next Door

deltaneutral83, https://www.aol.com/2012/03/26/surprising-job-that-gets-many-americans-into-the-millionaire-clu/ http://www.futurescopes.com/dating/wealthy-dating/3407/10-professions-most-millionaires You are wrong. There are 6 times more teachers that are millionaires than either the lawyers or do...
by KlangFool
Wed Jul 18, 2018 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Salary vs. Lifestyle
Replies: 120
Views: 11336

Re: Salary vs. Lifestyle

KlangFool, How do save 1 year of expenses? Is it because you live in a LCOL city and managed to buy a modest house? At what point in your career were you able to save 1x expenses? Do you define expenses as overhead-only, or does that include discretionary too? What about your mortgage? Health Care?...
by KlangFool
Wed Jul 18, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: New book based on Millionaire Next Door
Replies: 64
Views: 9528

Re: New book based on Millionaire Next Door

deltaneutral83, https://www.aol.com/2012/03/26/surprising-job-that-gets-many-americans-into-the-millionaire-clu/ http://www.futurescopes.com/dating/wealthy-dating/3407/10-professions-most-millionaires You are wrong. There are 6 times more teachers that are millionaires than either the lawyers or do...
by KlangFool
Wed Jul 18, 2018 10:51 am
Forum: Personal Finance (Not Investing)
Topic: New book based on Millionaire Next Door
Replies: 64
Views: 9528

Re: New book based on Millionaire Next Door

I still think lawyers and Dr's represent higher than their proportion of millionaires in America. They may do less with more, but they still are at that level in absolute terms relative to their proportions in the workforce I believe. Obviously small business owners that don't have to flaunt it mak...
by KlangFool
Wed Jul 18, 2018 10:26 am
Forum: Personal Finance (Not Investing)
Topic: New book based on Millionaire Next Door
Replies: 64
Views: 9528

Re: New book based on Millionaire Next Door

The assumption that doctors, lawyers et cetera are wealthy because of their professions and often aren't because of student debt, the delay into the workforce and the image they often feel they need to project was excellent. I knew this to be true at about age 19. I was putting myself through colle...
by KlangFool
Wed Jul 18, 2018 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Salary vs. Lifestyle
Replies: 120
Views: 11336

Re: Salary vs. Lifestyle

I realize that this is a very subjective matter, but after reading one of the threads regarding early retirement, I noticed they recurring theme: Enjoying life while you can (having more time for "living in the sunlight" - hobbies, taking walks, exercising and spending time with family). I thankful...
by KlangFool
Wed Jul 18, 2018 6:20 am
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

randomguy, I think we are not talking about the same thing. What I meant was the stock market stayed down for 5 years with a 0% or negative real return every year. << 0% is pretty bad but it isn't end of the world case. 2000-9 was 0% real for 60/40 funds for 10 years (the exact numbers depend on yo...
by KlangFool
Tue Jul 17, 2018 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable AA when goals/horizon unclear
Replies: 6
Views: 441

Re: Taxable AA when goals/horizon unclear

Question: Do you use a different/more conservative AA in your taxable account(s)? What are your thoughts on a reasonable AA for the situation/goals I described in taxable - 60/40, 50/50? KeepItSimple78, No. I have only one portfolio (61/39). The taxable account is 100% stock since it is most tax-ef...
by KlangFool
Tue Jul 17, 2018 10:31 pm
Forum: Personal Consumer Issues
Topic: 35 minute connection for flight, long enough?
Replies: 65
Views: 3254

Re: 35 minute connection for flight, long enough?

I'm booking our Christmas flights. Is a 35 minute connection in Denver long enough? Seems like a close call, but all the other flight schedules are terrible and costly. It's United. Second, I've got a bunch of Chase rewards, should I got through the Ultimate rewards website or transfer to United? s...
by KlangFool
Tue Jul 17, 2018 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: Heresy: Is It Worth Converting tIRAs to Roth?
Replies: 46
Views: 4304

Re: Heresy: Is It Worth Converting tIRAs to Roth?

I wouldn’t convert in 24% bracket if you will be in that bracket or higher in retirement. Did you mean higher or lower? I might convert if I knew future taxes would be at a higher rate. If they do revert to 2017 rates, in 10 years as currently planned, we'd go from 24% federal now, to 28% federal i...
by KlangFool
Tue Jul 17, 2018 7:18 pm
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

2) My planning assumes that 0% return for 5 years is the worst case. I believe that money would be least of the worry if that happened. I kept some physical gold for that scenario. 0% is pretty bad but it isn't end of the world case. 2000-9 was 0% real for 60/40 funds for 10 years (the exact number...
by KlangFool
Tue Jul 17, 2018 2:52 pm
Forum: Investing - Theory, News & General
Topic: Why age is not how to determine risk tolerance
Replies: 17
Views: 2064

Re: Why age is not how to determine risk tolerance

B) 100/0 is a lousy AA in term of risk-adjusted return. So, it is the wrong AA at any age. You can't eat risk-adjusted return. If you're not willing to use leverage, and you're willing to wait 30 years, the 100/0 AA will wind up with a higher balance even at 5th percentile stock market returns. Thr...
by KlangFool
Tue Jul 17, 2018 11:32 am
Forum: Investing - Theory, News & General
Topic: Why age is not how to determine risk tolerance
Replies: 17
Views: 2064

Re: Why age is not how to determine risk tolerance

OP, A) It is not safe to assume continuous full-employment until retirement age. A fair amount of people lose their jobs in a recession. B) 100/0 is a lousy AA in term of risk-adjusted return. So, it is the wrong AA at any age. C) There is a simpler formula. The current portfolio value as a multiple...
by KlangFool
Tue Jul 17, 2018 11:10 am
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

randomguy, <<do you spend your bucket and go to 100/0>> Under this system, you will spend your bucket and go down to 100/0. <<Imagine you have a 10 year flat market coming up. >> If that happened, in year 5 or earlier than that, the person should drastically lower his/her expense. KlangFool P.S.: T...
by KlangFool
Tue Jul 17, 2018 9:07 am
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

The portfolio is 900K and 60/40. That meant 540K of stock and 360K of the bond. The stock drops 50% and down to 270K. Under this bucket system, the minimum is 300K of the bond. So, the person sells 360K - 300K = 60K of bond to buy stock. The final AA is 270K+60K = 330K of stock and 300K of the bond...
by KlangFool
Tue Jul 17, 2018 7:29 am
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

Let's assume the AA is 60/40 and the goal is 10 years of expense in Fixed income. Let's assume the retirement expense is 30K after the social security income of 30K. at 50x The portfolio is 1.5 million. 10 years of fixed income = 300K. Even after the stock drop 50%, the portfolio will lose 30%. The...
by KlangFool
Mon Jul 16, 2018 10:02 pm
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

randomguy, <<I always like how people use pessimistic SWR and optimistic returns.;) >> Now, I am confused. Do you consider 5% to 7% nominal return as an optimistic return for a 60/40 portfolio? KlangFool Optimistic savings rate.:) Is 5-7% optimistic over 7 years? For a 2% SWR person it sure is. The...
by KlangFool
Mon Jul 16, 2018 7:00 pm
Forum: Personal Consumer Issues
Topic: Advice on IT Certification program
Replies: 93
Views: 3696

Re: Advice on IT Certification program

You are working for the wrong firm. And you just said in a previous post its basic economics. I pay something like $150FTE for medium cost are with 10 years or so of experience. In the Bay area I pay north of $200K which is very low for the bay, but, it is what it is. Students start out at about $6...
by KlangFool
Mon Jul 16, 2018 6:46 pm
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

Or far less than a decade. 1) For folks that save 1 year of expense every year. Between the new contribution and growth, it does not take that long. It is in between 6 to 8 years. Starting Net Worth $1,500,000 Annual Savings $60,000 Years Annual Return Rate 6 7 8 5.00% $2,418,258 $2,599,171 $2,789,...
by KlangFool
Mon Jul 16, 2018 6:42 pm
Forum: Personal Consumer Issues
Topic: Advice on IT Certification program
Replies: 93
Views: 3696

Re: Advice on IT Certification program

A really good engineer or IT person is rare to find. You can train some people to a basic level but there is a level of intelligence, problem solving skills, tenacity you can't train. No amount of money or training will help at the advanced level. rich126, There is a bigger picture question here. W...
by KlangFool
Mon Jul 16, 2018 6:37 pm
Forum: Personal Consumer Issues
Topic: Advice on IT Certification program
Replies: 93
Views: 3696

Re: Advice on IT Certification program

I think you have a point except that we struggle to find enough people that are willing to do these jobs at pretty reasonable wages. You would maybe not be surprised at the number of people that say "I don't want to work with computers..." bampf, 1) This is Econ 101. Supply versus demand. If you ca...
by KlangFool
Mon Jul 16, 2018 4:36 pm
Forum: Personal Consumer Issues
Topic: Advice on IT Certification program
Replies: 93
Views: 3696

Re: Advice on IT Certification program

Folks, in my experience, the biggest risk to technology right now is a complete lack of emerging talent in many many areas. The old folks are getting out. The new generation is driving snapchat and literally has no idea how technologies work. Yes, my experience is anecdotal. However, I have a real ...
by KlangFool
Mon Jul 16, 2018 4:26 pm
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

Nothing is a problem at 50x. It is like retiring in 1982. No matter what you do, you will win. Except that it might take you a decade or more to go from 25x to 50x. That could be a lot of 'lost time' just to pad what's already been a very conservative approach. willthrill81, << Except that it might...
by KlangFool
Mon Jul 16, 2018 4:18 pm
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

Nothing is a problem at 50x. It is like retiring in 1982. No matter what you do, you will win. Except that it might take you a decade or more to go from 25x to 50x. That could be a lot of 'lost time' just to pad what's already been a very conservative approach. willthrill81, << Except that it might...
by KlangFool
Mon Jul 16, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

I do think that bucket strategies can work well, if for no other reason than they can make more intuitive sense than a traditional AA approach. But they are certainly more complicated, and many don't seem to understand that this complexity exists. willthrill81, I believe that traditional AA can wor...
by KlangFool
Mon Jul 16, 2018 11:30 am
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

How do you know if stocks are down (or up)? This is the same as saying "stocks are low (or high)." It's very hard to tell. (This is based on the idea in the comment that With the 3FP, if stocks are down, you can withdraw from your bond fund in the original post.) This is the problem with the origin...
by KlangFool
Mon Jul 16, 2018 10:57 am
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

If you rebalance, then, there is no difference between the 3FP and the balanced fund. KlangFool With the 3FP, if stocks are down, you can w/d bonds. With the Balanced Index fund,for example, every w/d is 60% equities and 40% fixed income. You can't choose which asset class to withdraw from. 1210 Th...
by KlangFool
Mon Jul 16, 2018 10:23 am
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2964

Re: Balanced Funds and Sequence of Return Risk

If you are in the withdrawal phase, are Balanced Funds (Balanced Index funds, Lifestrategy funds, target date funds, etc.) affected more by Sequence of Return risk than individual funds such as in the 3 fund portfolio? With the 3FP, if stocks are down, you can withdraw from your bond fund (also hel...
by KlangFool
Mon Jul 16, 2018 9:33 am
Forum: Investing - Theory, News & General
Topic: Math help: 401k vs debt payoff formula
Replies: 17
Views: 1444

Re: Math help: 401k vs debt payoff formula

OP, 1) You could contribute to your 401K and put the money into the money market fund aka 0% return. But, save 35% tax. 2) Take a 401K loan and use the money to pay off the debt. They are 2 separate independent decisions. For example, you could do this. <<A. Contribute $10,000 ($6500 after tax in th...
by KlangFool
Mon Jul 16, 2018 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Duration of Sequence of Return risk for long retirements
Replies: 41
Views: 2328

Re: Duration of Sequence of Return risk for long retirements

OP, In my opinion, SRR is highly dependent on the portfolio size as a multiple of annual expense. A) The person started at 25X. After 5 years, the portfolio grew to 50X even with the 4% withdrawal. I would say that this person had passed the danger zone. B) If the person started at 50X and with 2% w...
by KlangFool
Mon Jul 16, 2018 8:07 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11205

Re: Why is leveraging property good but leveraging stocks bad?

It's safe to say that a lot of us will need to use 5x leverage or so to buy a property however, this is never touted as irresponsible. SpeculativeTrader, This is not true. I consider all leverage as bad. So, as per my (KlangFool) housing rule. A) Use a 20% down payment and 30 fixed mortgage to buy ...
by KlangFool
Sat Jul 14, 2018 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: How Much in Your Emergency Fund And Is It Used?
Replies: 197
Views: 26100

Re: How Much in Your Emergency Fund And Is It Used?

For the people with $0 emergency funds and large taxable savings, how do you handle emergency/lumpy expenses? Do you really sell taxable investments and pay capital gains every time one of them comes down the line? Or do you keep other cash accounts that are earmarked for those lumpy expenses? Afty...