Search found 8298 matches

by KlangFool
Sat Apr 21, 2018 4:01 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

This combination (excess beyond tax-deferred going into taxable, instead of 529) is what i was taking exception to. It is bad advice for most situations. marcopolo, << It is bad advice for most situations. >> Most people are not in the 24% or higher tax bracket. 529 may make sense for you. But, you...
by KlangFool
Sat Apr 21, 2018 3:56 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Folks, Do not confuse lucky outcome with a smart strategy. I cannot count on being lucky and continuously employed without interruption. So, I have to plan and survive in this kind of reality. For whatever reason, this is the life that I experienced. Houston Oil Bust, Texas Saving & Loan Crisis, As...
by KlangFool
Sat Apr 21, 2018 3:52 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

You asked several questions (which I bolded above), and I presented answers. I don't believe KlangFool put any stipulation that his rules were only for high tax bracket situations, or using 529 accounts vs taxable for college. KlangFool also mentioned YMMV. 1. Can you explain the advantages of empl...
by KlangFool
Sat Apr 21, 2018 1:58 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Rule #1 Save 1 year of your current annual expense every year. Then, you could be FI in about 25 years even with 0% real growth. Save 1 year of *expenses at retirement* every year. Not current annual expense. But for reasons others have mentioned, this is not a very useful rule at all. Most cannot....
by KlangFool
Sat Apr 21, 2018 1:32 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Folks, Do not confuse lucky outcome with a smart strategy. I cannot count on being lucky and continuously employed without interruption. So, I have to plan and survive in this kind of reality. For whatever reason, this is the life that I experienced. Houston Oil Bust, Texas Saving & Loan Crisis, Asi...
by KlangFool
Sat Apr 21, 2018 1:18 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

marcopolo wrote:
Sat Apr 21, 2018 11:44 am

But, I would not voluntarily stop working if that were the case. Being able to do so is how I define being FI.
marcopolo,

You have a choice. I don't.

KlangFool
by KlangFool
Sat Apr 21, 2018 1:15 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

KF 2.5x the price of the home rule is silly, he himself didn't follow it. He may be 2.5x in liquid assets to home value now, but even if he just bought his $400k townhouse say in 2014, based on his savings and investment appreciation he likely only had $550k-$600k at the time of purchase. A far cry...
by KlangFool
Sat Apr 21, 2018 1:07 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Rule #1 Save 1 year of your current annual expense every year. Then, you could be FI in about 25 years even with 0% real growth. KlangFool Just curious, would you consider a home down payment an expense that should be matched in savings (during the year of the home purchase)? BogleMelon, No. I make...
by KlangFool
Sat Apr 21, 2018 10:23 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

At my income/saving rate, there are only 2 possible outcomes: 1) I am employed long enough. I have the money to pay for college. 2) I am permanent underemployed or unemployed. In those cases, 529 affect my kids' ability to qualify for financial aid. My number is around 1.5 million. My kid's college...
by KlangFool
Sat Apr 21, 2018 9:28 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

:| I am still not understanding your reasoning. 1) You seem to be almost pathologically fearful of job loss, yet you advice to plan on cash flowing college expenses. What happens if you save diligently for 20 years, at or close to FI, and then you are out of work? Do you tell your kids they are on ...
by KlangFool
Sat Apr 21, 2018 12:17 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Folks, I save a lot of money. But, I am not frugal. A) Household income of around 140K to 150K. B) Tax around 20K to 30K (Social security, Medicare, Federal, and state) C) The annual expense of around 50K to 60K. D) The annual savings of around 50K to 60K. Out of the annual expense, about 20K is for...
by KlangFool
Sat Apr 21, 2018 12:10 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Rule #6 Invest using all-in-one funds such as lifestrategy or target retirement fund. Do not go into slice and dice until your portfolio is 6 figures or bigger. Why wait until your portfolio is 6+ figures before breaking out of all-in-one funds? RamblinDoc, Unless and until your portfolio is big en...
by KlangFool
Fri Apr 20, 2018 11:28 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

:| I am still not understanding your reasoning. 1) You seem to be almost pathologically fearful of job loss, yet you advice to plan on cash flowing college expenses. What happens if you save diligently for 20 years, at or close to FI, and then you are out of work? Do you tell your kids they are on ...
by KlangFool
Fri Apr 20, 2018 10:29 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

What is wrong is that setting a rule that 98% of the population would not be able to achieve will make your FI system unusable. delamer, My FI system is useful to some folks. And, some other folks could adjust the parameters to suit their circumstances. I do not have the aspiration to make it works...
by KlangFool
Fri Apr 20, 2018 10:27 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

I am still not understanding your reasoning. 1) You seem to be almost pathologically fearful of job loss, yet you advice to plan on cash flowing college expenses. What happens if you save diligently for 20 years, at or close to FI, and then you are out of work? Do you tell your kids they are on the...
by KlangFool
Fri Apr 20, 2018 10:20 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

What is wrong is that setting a rule that 98% of the population would not be able to achieve will make your FI system unusable. delamer, My FI system is useful to some folks. And, some other folks could adjust the parameters to suit their circumstances. I do not have the aspiration to make it works...
by KlangFool
Fri Apr 20, 2018 10:17 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Klangfool, I bought a condominium which was built for first time home buyers in the late 80's. The complex had no swimming pool, exercise room, guest suite or library. Very plain jane type of setup. The price was 2.5 times my salary with a 10% mortgage rate. I could barely afford the home. I've liv...
by KlangFool
Fri Apr 20, 2018 10:08 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Klangfool, I bought a condominium which was built for first time home buyers in the late 80's. The complex had no swimming pool, exercise room, guest suite or library. Very plain jane type of setup. The price was 2.5 times my salary with a 10% mortgage rate. I could barely afford the home. I've liv...
by KlangFool
Fri Apr 20, 2018 10:05 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Folks,

As I had said right at the beginning of the thread, the difference between saving at a high level or not comes down to the big purchases: house, car, and college education. This is true for many folks.

At my level, it is usually the house.

KlangFool
by KlangFool
Fri Apr 20, 2018 9:56 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

simple rules necessitate simple situations -- life is more complex. my biggest gripe with a lot of these rules is that they do not take location into account at all. i live and work in a VHCOL state. i have no intention of retiring here. i can follow various "rules" and work here for the next 20-30...
by KlangFool
Fri Apr 20, 2018 9:40 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Your job-not everyone's. Each individuals' circumstances are just way too variable to generalize like this. DVMResident, I agree with that statement. But, if it works even in this kind of situation, it will work in a better environment. As I had said at the beginning of this thread, adjust the para...
by KlangFool
Fri Apr 20, 2018 8:29 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Even as a follow anti-buying person, this second house rule is silly. There are so many markets where buying is cheaper than renting. If buying is cheaper than renting, buying can help you stablize COL and achieve Rule #1: Save 1 year of your current annual expense every year. DVMResident, I live i...
by KlangFool
Fri Apr 20, 2018 7:16 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Even as a follow anti-buying person, this second house rule is silly. There are so many markets where buying is cheaper than renting. If buying is cheaper than renting, buying can help you stablize COL and achieve Rule #1: Save 1 year of your current annual expense every year. DVMResident, I live i...
by KlangFool
Fri Apr 20, 2018 7:12 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

This rule might be OK if your current savings is not sufficient to fill up all tax-advantaged vehicles (401k, Roth, IRA, HSA, etc.). But if you are filling all of those, and still have money to save AND you anticipate you will likely have to pay for at least some of your kids educational expenses, ...
by KlangFool
Fri Apr 20, 2018 6:52 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Folks, Rule #2 Do not overspend on house, car, and college education. At engineer's income level, as long as he/she do not overspend on those large expenses, he/she can save 1 year of annual expense every year. KlangFool So how do you define “overspend” in terms of the items above? I know that you ...
by KlangFool
Fri Apr 20, 2018 6:48 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

My situation is fairly unique, so I am not sure I have simple rules. Any such rules would not be applicable to most others. From what I have read of KFs situation, it is somewhat unique in its own right. Thus I don’t know if his rules are useful to most others either. If you only spend 40% of Gross...
by KlangFool
Fri Apr 20, 2018 6:30 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Folks, Rule #2 Do not overspend on house, car, and college education. At engineer's income level, as long as he/she do not overspend on those large expenses, he/she can save 1 year of annual expense every year. KlangFool So how do you define “overspend” in terms of the items above? I know that you ...
by KlangFool
Fri Apr 20, 2018 5:20 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Rule #5 Do not save for college education Alright, you're going to have to elaborate on #5. I sleep better at night knowing I've got most of my kids in-state college expenses in a 529. We'll have to cash flow some and they'll have to work some, but it will be, um, simple. jriding, << I sleep better...
by KlangFool
Fri Apr 20, 2018 5:01 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Folks, Rule #3 Use "Pay Yourself First" saving method. Auto-deduct from your paycheck and save and invest the proper amount. Spend the rest. Rule #4 Contribute as much as possible to the tax-deferred accounts. Put the tax savings to the Roth IRAs and the taxable account. Rule #5 Do not save for coll...
by KlangFool
Fri Apr 20, 2018 4:27 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Yes but if I make $50k for 24 years and $100k the last year and then apply your simple rule, I've really only saved for the annual expense I had during the first 24 years even though in each year I saved the requisite amount. That is an extreme example, but it also applies if one gradually makes mo...
by KlangFool
Fri Apr 20, 2018 4:23 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Rule #1 Save 1 year of your current annual expense every year. Then, you could be FI in about 25 years even with 0% real growth. All well and good if you don't plan on living any longer than 25 years. Or am I missing something? Wouldn't be "all well and good if you don't plan on being retired for a...
by KlangFool
Fri Apr 20, 2018 4:20 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Folks,

Rule #2

Do not overspend on house, car, and college education. At engineer's income level, as long as he/she do not overspend on those large expenses, he/she can save 1 year of annual expense every year.

KlangFool
by KlangFool
Fri Apr 20, 2018 4:16 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

Re: KF's simple rules to achieve FI

Folks, The followings are some of the rules that I used. It may work for some folks. On this thread, I will compile some of them and provide the reasoning and thought behind those rules. You should adjust them based on your own circumstances. I am an engineer. So, I am biased towards my income and ...
by KlangFool
Fri Apr 20, 2018 2:53 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI
Replies: 109
Views: 4946

KF's simple rules to achieve FI

Folks, The followings are some of the rules that I used. It may work for some folks. On this thread, I will compile some of them and provide the reasoning and thought behind those rules. You should adjust them based on your own circumstances. I am an engineer. So, I am biased towards my income and c...
by KlangFool
Fri Apr 20, 2018 1:31 pm
Forum: Personal Consumer Issues
Topic: Another discussion about private vs public schools?
Replies: 79
Views: 3950

Re: Another discussion about private vs public schools?

OP, 1) It matters where you live. So, if you are living in a location where the public school is not good enough, it affects your kids. You will be living among folks that do not care about the public education. How will that affect you? 2) I live in a very affluent environment with an annual median...
by KlangFool
Fri Apr 20, 2018 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Interesting vs higher paying job
Replies: 22
Views: 1471

Re: Interesting vs higher paying job

OP, 1) Talk to as many people that you can contact in both environments. Find out who will you work with. In most of these cases, the people and environment matter more than anything else. 2) For small decision, I go with my mind. For major decision, I go with my heart. My instincts and gut feeling ...
by KlangFool
Fri Apr 20, 2018 11:48 am
Forum: Investing - Theory, News & General
Topic: Anyone hold any defensive funds in their portfolio?
Replies: 41
Views: 3422

Re: Anyone hold any defensive funds in their portfolio?

RamblinDoc wrote:
Mon Apr 16, 2018 10:22 am
KlangFool wrote:
Wed Mar 28, 2018 10:05 pm
OP,

Vanguard Total Bond (VBTLX)
Vanguard Interm-Term Treasury Adm (VFIUX)
Wellington Fund (VWELX)
Cash
30 years fixed rate mortgage
Gold Jewelry

KlangFool

KlangFool,

What % of your portfolio is Wellington?
RamblinDoc,

40%.

KlangFool
by KlangFool
Fri Apr 06, 2018 10:53 am
Forum: Investing - Theory, News & General
Topic: Swedroe: Look Beyond 60/40 Portfolio
Replies: 237
Views: 14786

Re: Swedroe: Look Beyond 60/40 Portfolio

OP, I agree with the general theme of the article. However, I believe real investor return will be good. I could always count on the volatility of the market and recession to force 100/0 investor to capitulate. Then, a 60/40 investor that buy, hold, and rebalance will profit greatly. Not many folks...
by KlangFool
Fri Apr 06, 2018 10:39 am
Forum: Investing - Theory, News & General
Topic: Swedroe: Look Beyond 60/40 Portfolio
Replies: 237
Views: 14786

Re: Swedroe: Look Beyond 60/40 Portfolio

OP, I agree with the general theme of the article. However, I believe real investor return will be good. I could always count on the volatility of the market and recession to force 100/0 investor to capitulate. Then, a 60/40 investor that buy, hold, and rebalance will profit greatly. Not many folks...
by KlangFool
Fri Apr 06, 2018 10:17 am
Forum: Investing - Theory, News & General
Topic: Swedroe: Look Beyond 60/40 Portfolio
Replies: 237
Views: 14786

Re: Swedroe: Look Beyond 60/40 Portfolio

Bogleheads....a brief synopsis (from his summary): "The bottom line is that investors should be aware that traditional 60/40 portfolios cannot be expected to provide anywhere near the level of returns experienced over the last 36 years. That likely requires action, or retirement plans will not be a...
by KlangFool
Fri Apr 06, 2018 9:47 am
Forum: Investing - Theory, News & General
Topic: Swedroe: Look Beyond 60/40 Portfolio
Replies: 237
Views: 14786

Re: Swedroe: Look Beyond 60/40 Portfolio

OP, I agree with the general theme of the article. However, I believe real investor return will be good. I could always count on the volatility of the market and recession to force 100/0 investor to capitulate. Then, a 60/40 investor that buy, hold, and rebalance will profit greatly. Not many folks ...
by KlangFool
Fri Apr 06, 2018 9:44 am
Forum: Investing - Theory, News & General
Topic: Swedroe: Look Beyond 60/40 Portfolio
Replies: 237
Views: 14786

Re: Larry Swedroe: Look Beyond 60/40 Portfolio

OP, I agree with the general theme of the article. However, I believe real investor return will be good. I could always count on the volatility of the market and recession to force 100/0 investor to capitulate. Then, a 60/40 investor that buy, hold, and rebalance will profit greatly. Not many folks ...
by KlangFool
Fri Apr 06, 2018 8:36 am
Forum: Personal Consumer Issues
Topic: Any hardworkers here who half-a** at work?
Replies: 27
Views: 3684

Re: Any hardworkers here who half-a** at work?

Long story short, I've been trying so hard to become an expert at my job but it hasn't been successful, but not for my lack of effort . My goal is to promote within but I'm afraid all of this effort to learn and learn is starting to seem more like complaints and not being shined on well. I don't me...
by KlangFool
Fri Apr 06, 2018 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford new house(360-400k)?
Replies: 13
Views: 1675

Re: Can we afford new house(360-400k)?

OP,

It is unusual for me to tell someone that you can afford the house. But, you do as long as you sell your current house.

KlangFool
by KlangFool
Fri Apr 06, 2018 7:01 am
Forum: Personal Finance (Not Investing)
Topic: How does one adjust salaries to account for housing costs when considering a move?
Replies: 24
Views: 1399

Re: How does one adjust salaries to account for housing costs when considering a move?

bottlecap wrote:
Fri Apr 06, 2018 6:31 am
If things were this confusing and I couldn’t figure it out with addition and subtraction on a basic calculator, I wouldn’t move.

JT

+1.

KlangFool
by KlangFool
Thu Apr 05, 2018 10:54 pm
Forum: Investing - Help with Personal Investments
Topic: Please review portfolio with goals!
Replies: 11
Views: 1068

Re: Please review portfolio with goals!

@Klangfool "You should not put 1% of your portfolio into anything" I can not put more then 20% into company stock. It's a hard limit built into the 401k rules. ilovetech, Let me repeat one more time: Why are you investing in something that is less than 1% of your portfolio? If you cannot invest 5% ...
by KlangFool
Thu Apr 05, 2018 10:34 pm
Forum: Investing - Theory, News & General
Topic: What can we learn from secret millionaires.
Replies: 93
Views: 16472

Re: What can we learn from secret millionaires.

Really though what millionaire is not a "secret" millionaire? Do anybody actually know what anybody else's net worth is? "Oh that guy has a $2m house and a new Lexus LS he must be a millionaire...." Ya, maybe!? Unless you pull up his real property records you don't know big the mortgage is! Larry, ...
by KlangFool
Thu Apr 05, 2018 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: How does one adjust salaries to account for housing costs when considering a move?
Replies: 24
Views: 1399

Re: How does one adjust salaries to account for housing costs when considering a move?

OP,

Are we talking about 150K in NC versus 200K in CA/Seattle/Boston? If that is the case, they are not comparable. 200K in CA/Seattle/Boston is not good enough.

KlangFool
by KlangFool
Thu Apr 05, 2018 9:38 pm
Forum: Investing - Help with Personal Investments
Topic: Please review portfolio with goals!
Replies: 11
Views: 1068

Re: Please review portfolio with goals!

@Klangfool My 401k is maxed this year. I am putting 20% of my 401k into company stock. It's no where near all eggs in 1 basket. It's 1% of currently all my profile. It's nothing like Eron. It's a company made up of other company's. Broken up and sold sure but each company still has value. ilovetech...
by KlangFool
Thu Apr 05, 2018 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: How does one adjust salaries to account for housing costs when considering a move?
Replies: 24
Views: 1399

Re: How does one adjust salaries to account for housing costs when considering a move?

The DW and I are in the middle of a major decision concerning a cross country move. While comparing the two salaries offered (to either stay or go) I recently realized I might be doing things somewhat incorrectly. Let's assume that job 1 offers a salary of 150K and job 2 offers a salary of 200K. We...