Search found 10091 matches

by KlangFool
Sun Oct 21, 2018 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Where would you go for financial guidance if you win the Megamillions?
Replies: 144
Views: 11218

Re: Where would you go for financial guidance if you win the Megamillions?

Yes, if you gave the money to a qualified charity, you wouldn't owe taxes on the amount you gave away. I don't know the terms and conditions of the lottery, but if they allowed for multiple people to claim the same ticket, you could probably give a fractional share to anybody and they (rather than ...
by KlangFool
Sun Oct 21, 2018 3:07 pm
Forum: Personal Consumer Issues
Topic: Why Purchase an Automobile using Premium Gasoline?
Replies: 51
Views: 1507

Re: Why Purchase an Automobile using Premium Gasoline?

denovo, I do not know whether that is true in the context of Nissan Altima. After the 2006 model, the newer model like the 2014 Nissan Altima 3.5 does not use premier gas. I would assume that 2014 Nissan Altima 3.5 is at least as powerful as the 2006 Nissan Altima 3.5SL. KlangFool You wanted to com...
by KlangFool
Sun Oct 21, 2018 2:57 pm
Forum: Personal Consumer Issues
Topic: Why Purchase an Automobile using Premium Gasoline?
Replies: 51
Views: 1507

Re: Why Purchase an Automobile using Premium Gasoline?

denovo, I do not know whether that is true in the context of Nissan Altima. After the 2006 model, the newer model like the 2014 Nissan Altima 3.5 does not use premier gas. I would assume that 2014 Nissan Altima 3.5 is at least as powerful as the 2006 Nissan Altima 3.5SL. KlangFool You wanted to com...
by KlangFool
Sun Oct 21, 2018 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Where would you go for financial guidance if you win the Megamillions?
Replies: 144
Views: 11218

Re: Where would you go for financial guidance if you win the Megamillions?

Folks,

Am I correct to assume that I could donate a significant amount to charity and/or donor-advised trust instead of paying taxes?

KlangFool
by KlangFool
Sun Oct 21, 2018 2:03 pm
Forum: Personal Consumer Issues
Topic: Why Purchase an Automobile using Premium Gasoline?
Replies: 51
Views: 1507

Re: Why Purchase an Automobile using Premium Gasoline?

How many consider the type of gasoline an automobile uses when purchasing? Automobiles using regular, unleaded gasoline typically, I think, get better mileage and have comparable torque and acceleration in my experience. What justifies the choice of significantly more expensive fuel other than simp...
by KlangFool
Sun Oct 21, 2018 1:06 pm
Forum: Personal Consumer Issues
Topic: Why Purchase an Automobile using Premium Gasoline?
Replies: 51
Views: 1507

Re: Why Purchase an Automobile using Premium Gasoline?

How many consider the type of gasoline an automobile uses when purchasing? Automobiles using regular, unleaded gasoline typically, I think, get better mileage and have comparable torque and acceleration in my experience. What justifies the choice of significantly more expensive fuel other than simp...
by KlangFool
Sun Oct 21, 2018 12:31 pm
Forum: Personal Consumer Issues
Topic: Why Purchase an Automobile using Premium Gasoline?
Replies: 51
Views: 1507

Re: Why Purchase an Automobile using Premium Gasoline?

How many consider the type of gasoline an automobile uses when purchasing? Automobiles using regular, unleaded gasoline typically, I think, get better mileage and have comparable torque and acceleration in my experience. What justifies the choice of significantly more expensive fuel other than simp...
by KlangFool
Fri Oct 19, 2018 7:22 pm
Forum: Investing - Theory, News & General
Topic: Are bonds the Maginot Line of Modern Investing?
Replies: 42
Views: 3408

Re: Are bonds the Maginot Line of Modern Investing?

OP,

Besides stocks and bond, I held cash, physical gold, and 30 years fixed rate mortgage.

KlangFool
by KlangFool
Fri Oct 19, 2018 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

+1. I have some extra money. I could invest it any way that I want. A) I could pre-pay my mortgage at 3.49% and lose liquidity. B) I could keep the money in my money market fund at 2%. With the interest rate going up, this rate may exceed 3.49% in a year or two. C) I could invest as per my portfoli...
by KlangFool
Fri Oct 19, 2018 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

30 years fixed rate mortgage is not the same as a normal bond or a bond fund. KlangFool So you say - but my point is that this subject is more nuanced than you care to consider. You have a very black and white view that is generally at odds with my experience. I don't believe that it makes any diff...
by KlangFool
Fri Oct 19, 2018 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

Mortgage interest rate = X. Market return = Y. If Y > X, investing win. If X > Y, pay extra win. Stock Return = X. Bond return = Y. If Y > X, sell all stocks and buy bonds If X > Y, sell all bonds and buy stocks Simple. 30 years fixed rate mortgage is not the same as a normal bond or a bond fund. K...
by KlangFool
Fri Oct 19, 2018 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: What if your risk tolerance is lower than what's best for your portfolio?
Replies: 51
Views: 3627

Re: What if your risk tolerance is lower than what's best for your portfolio?

Happy2BeFree, Come on. You are 50+ years old. Your portfolio is 35X. What would be your portfolio size in term of annual expense after deducting social security income? In my case, the 25X will become 50X since social security cover 50% of my expense. In your case, it might be 70X after social secu...
by KlangFool
Fri Oct 19, 2018 3:07 pm
Forum: Investing - Theory, News & General
Topic: How much of a dip do you want before you TLH?
Replies: 27
Views: 1968

Re: How much of a dip do you want before you TLH?

A lot of Bogleheads want Roths because you are paying the tax now rather than in the future. However, isn't TLH doing the opposite of this? Obviously, these are capital gains/losses and not ordinary income. I am not saying TLH cannot be beneficial, but doesn't it somewhat depend on your current tax...
by KlangFool
Fri Oct 19, 2018 2:52 pm
Forum: Investing - Theory, News & General
Topic: How much of a dip do you want before you TLH?
Replies: 27
Views: 1968

Re: How much of a dip do you want before you TLH?

A lot of Bogleheads want Roths because you are paying the tax now rather than in the future. However, isn't TLH doing the opposite of this? Obviously, these are capital gains/losses and not ordinary income. I am not saying TLH cannot be beneficial, but doesn't it somewhat depend on your current tax...
by KlangFool
Fri Oct 19, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

Folks, When the CD interest rate hit 5%, will the folks that pre-pay their mortgage of 4% or less regret their decision? KlangFool It should really be a question of liquidity of the asset (funds are easy to cash in - a house not so much), stability of the asset in terms of value (housing in normal ...
by KlangFool
Fri Oct 19, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: How much of a dip do you want before you TLH?
Replies: 27
Views: 1968

Re: How much of a dip do you want before you TLH?

I'm surprised how much talk there is of TLH after a 9 year bull market. The market is only down a few percent. International isn't in any 9 year bull market, that's for sure. People get things from older family members who've passed every day and invest it so anything put in international the past ...
by KlangFool
Fri Oct 19, 2018 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

+1. I have some extra money. I could invest it any way that I want. A) I could pre-pay my mortgage at 3.49% and lose liquidity. B) I could keep the money in my money market fund at 2%. With the interest rate going up, this rate may exceed 3.49% in a year or two. C) I could invest as per my portfoli...
by KlangFool
Fri Oct 19, 2018 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: What if your risk tolerance is lower than what's best for your portfolio?
Replies: 51
Views: 3627

Re: What if your risk tolerance is lower than what's best for your portfolio?

Sure, market was down 5% over the past couple of weeks (but up almost 1% so far today). But the market was up 10% this year before the drop, so your stocks are still up 5% on the year. Maybe that would help your state of mind. But here's my real takeaway. If a 5% stock market drop in a couple of we...
by KlangFool
Fri Oct 19, 2018 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Should we downgrade our house?
Replies: 43
Views: 3634

Re: Should we downgrade our house?

I'd be curious if there have been any studies that show rich kids who go to low-scoring schools are more likely to be low-scoring students. https://www.washingtonpost.com/news/answer-sheet/wp/2018/07/26/no-private-schools-arent-better-at-educating-kids-than-public-schools-why-this-new-study-matters...
by KlangFool
Fri Oct 19, 2018 8:43 am
Forum: Investing - Help with Personal Investments
Topic: What if your risk tolerance is lower than what's best for your portfolio?
Replies: 51
Views: 3627

Re: What if your risk tolerance is lower than what's best for your portfolio?

Hi, Bogleheads. My AA is 37/63 now, after this slight correction. I lost more than a year's expenses in one week. Happy2BeFree, How big is the loss? 2% of your portfolio? If it is true, your portfolio is 50 times your annual expense. What is the problem? This is the problem that most of us would li...
by KlangFool
Fri Oct 19, 2018 7:24 am
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

There is one thing missing from this discussion. Paying down a mortgage is a sure thing. If the mortgage is 3.5%, your return is 3.5%, done deal. When you invest that money in the market, you will earn and lose varying amounts each year. And that amount is unpredictable and unknowable. In the past,...
by KlangFool
Thu Oct 18, 2018 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

OP, It is very simple. Mortgage interest rate = X. Market return = Y. If Y > X, investing win. If X > Y, pay extra win. It has nothing to do with timing. If you have $500 extra, mortgage interest = 3% and market return = 7%, investing the $500 always win since 7% is greater than 3%. KlangFool P.S.:...
by KlangFool
Thu Oct 18, 2018 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

Folks,

When the CD interest rate hit 5%, will the folks that pre-pay their mortgage of 4% or less regret their decision?

KlangFool
by KlangFool
Thu Oct 18, 2018 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

OP, It is very simple. Mortgage interest rate = X. Market return = Y. If Y > X, investing win. If X > Y, pay extra win. It has nothing to do with timing. If you have $500 extra, mortgage interest = 3% and market return = 7%, investing the $500 always win since 7% is greater than 3%. KlangFool P.S.:...
by KlangFool
Thu Oct 18, 2018 10:27 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

I understand that, Klangfool. But that isn’t the question. Some people may have different comfort levels with debt or different goals altogether. For example, Retiring Russ may be retiring in 15 years and may decide to pay his mortgage off in 15 years as opposed to 30 years so he doesn’t have a mor...
by KlangFool
Thu Oct 18, 2018 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

I understand that, Klangfool. But that isn’t the question. Some people may have different comfort levels with debt or different goals altogether. For example, Retiring Russ may be retiring in 15 years and may decide to pay his mortgage off in 15 years as opposed to 30 years so he doesn’t have a mor...
by KlangFool
Thu Oct 18, 2018 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 37
Views: 2188

Re: Timing mortgage pay down

OP, It is very simple. Mortgage interest rate = X. Market return = Y. If Y > X, investing win. If X > Y, pay extra win. It has nothing to do with timing. If you have $500 extra, mortgage interest = 3% and market return = 7%, investing the $500 always win since 7% is greater than 3%. KlangFool P.S.: ...
by KlangFool
Thu Oct 18, 2018 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: Should we downgrade our house?
Replies: 43
Views: 3634

Re: Should we downgrade our house?

OP, << but we definitely feel a little pinched financially, especially now that we are paying for preschool and a additional childcare (for outside preschool hours).>> In my honest opinion, you are asking the wrong questions. The key question should be the public school. If you do not live in a neig...
by KlangFool
Thu Oct 18, 2018 6:43 pm
Forum: Investing - Theory, News & General
Topic: So...what’s Plan B [for your retirement security]?
Replies: 20
Views: 2204

Re: So...what’s Plan B?

OP, 1) I save 1 year of my current annual expense every year. So, as long as I am employed long enough, I have enough. I am at 20 times my current annual expense now. 2) Social security can cover 50% of my annual expense. That is my plan B. 3) I can retire to the country where I came from. I can liv...
by KlangFool
Thu Oct 18, 2018 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6518

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

After running our numbers on 2018 MFJ tax rates, I figured that we need waaaaay more than the annual P&I to keep the same standard of living by keeping the mortgage.....to the order of 1.75X in pretax income. It helped put things in perspective by putting the numbers into a matrix. Reduced Income (...
by KlangFool
Thu Oct 18, 2018 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6518

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

After running our numbers on 2018 MFJ tax rates, I figured that we need waaaaay more than the annual P&I to keep the same standard of living by keeping the mortgage.....to the order of 1.75X in pretax income. It helped put things in perspective by putting the numbers into a matrix. Reduced Income (...
by KlangFool
Thu Oct 18, 2018 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Help with college age sons Roth IRA options...
Replies: 15
Views: 796

Re: Help with college age sons Roth IRA options...

I just opened up a Roth IRA for my daughter who just started college. The main advice I can offer is that you can only deposit up to the amount the child earns in a given year. For her, it will probably be about $500 like yourself. I'm going to encourage her to invest it in a low-cost total market ...
by KlangFool
Thu Oct 18, 2018 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Help with college age sons Roth IRA options...
Replies: 15
Views: 796

Re: Help with college age sons Roth IRA options...

OP,

To avoid transaction cost, I would suggest that you avoid ETF and go with Vanguard mutual fund. Start a Vanguard Roth IRA and invest in Vanguard Lifestrategy Growth Fund.

https://investor.vanguard.com/mutual-fu ... file/VASGX

KlangFool
by KlangFool
Thu Oct 18, 2018 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Kids inherited $8,000 each - 529 or regular brokerage?
Replies: 34
Views: 2228

Re: Kids inherited $8,000 each - 529 or regular brokerage?

OP, I will keep that money in my own taxable account. Then, when they are old enough and work some summer jobs, move the money into their Roth IRAs. Only if I am absolutely sure that they do not need financial aid, I would put the money into their taxable account and/or 529. KlangFool P.S.: My kids...
by KlangFool
Thu Oct 18, 2018 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Kids inherited $8,000 each - 529 or regular brokerage?
Replies: 34
Views: 2228

Re: Kids inherited $8,000 each - 529 or regular brokerage?

OP, I will keep that money in my own taxable account. Then, when they are old enough and work some summer jobs, move the money into their Roth IRAs. Only if I am absolutely sure that they do not need financial aid, I would put the money into their taxable account and/or 529. KlangFool P.S.: My kids ...
by KlangFool
Thu Oct 18, 2018 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6518

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

I'm really curious if anyone on here truly regrets paying off their mortgage. Mako52, Only folks that survive the recession posted on this forum. So, there is survivorship bias here. It is not hard to understand the following sequence is possible. A) Someone pay off their mortgage. B) The person ha...
by KlangFool
Wed Oct 17, 2018 3:01 pm
Forum: Personal Consumer Issues
Topic: Would you ever buy a lottery ticket?
Replies: 32
Views: 1274

Re: Would you ever buy a lottery ticket?

OP, 1) I may buy one ticket just for my own entertainment. 2) My uncle strike lottery 3 times. So, what is the odds of that? KlangFool Possibly good. Unless you mean that he won the powerball jackpot three times after buying only three tickets. Some people buy multiple tickets a day and brag about ...
by KlangFool
Wed Oct 17, 2018 2:39 pm
Forum: Personal Consumer Issues
Topic: Would you ever buy a lottery ticket?
Replies: 32
Views: 1274

Re: Would you ever buy a lottery ticket?

OP,

1) I may buy one ticket just for my own entertainment.

2) My uncle strike lottery 3 times. So, what is the odds of that?

KlangFool
by KlangFool
Wed Oct 17, 2018 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6518

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

. That said, whether it makes sense for a particular individual or couple to accelerate the payoff of their mortage loan, or add to it with a HLOC or 2nd motgage is an entirely different question. But in either case they are simply increasing or decreasing their debt, not actually putting money int...
by KlangFool
Wed Oct 17, 2018 10:52 am
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6518

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

B) 25% drop of a 900K portfolio is 225K. I left with 675K. My annual expense without a mortgage is 45K. I can survive for 15 years. Does this calculation include your additional available income? 1) What do you mean by that? Please explain. 2) It is irrelevant in this discussion anyhow. My point is...
by KlangFool
Wed Oct 17, 2018 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6518

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

25% drop in your portfolio is $300,000. A) 25% drop of a 1.2 million portfolio is 300K. I left with 900K. My annual expense with a mortgage is 60K. I can survive for 15 years. B) 25% drop of a 900K portfolio is 225K. I left with 675K. My annual expense without a mortgage is 45K. I can survive for 1...
by KlangFool
Wed Oct 17, 2018 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6518

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

25% drop in your portfolio is $300,000. A) 25% drop of a 1.2 million portfolio is 300K. I left with 900K. My annual expense with a mortgage is 60K. I can survive for 15 years. B) 25% drop of a 900K portfolio is 225K. I left with 675K. My annual expense without a mortgage is 45K. I can survive for 1...
by KlangFool
Wed Oct 17, 2018 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6518

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

You don't want to put more money into the house. While I agree with this statement, it's irrelevant. I'm not suggesting a house remodel here. Again, paying down the mortgage has no impact on the price you ultimately sell your house for. Rowan Oak, My house mortgage is 300K. My portfolio is 1.2 mill...
by KlangFool
Wed Oct 17, 2018 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Need guidance on charting next life steps
Replies: 27
Views: 2025

Re: Need guidance on charting next life steps

Coming back to the thread Skills - if you do end to end data management (or even most of the data management disciplines as defined by DAMA), you skills are already in very high demand. Note that this is not 'I will see you next fantastic whiz bang disruptor thingy' which frankly people who are in ...
by KlangFool
Tue Oct 16, 2018 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: What do you consider 'enough'?
Replies: 93
Views: 9999

Re: What do you consider 'enough'?

OP,

My income is always "enough" for my lifestyle.

Save 1/3, spend 1/3, pay 1/3 in taxes.

I aim for Financial Independence (FI), not retirement. So, my enough number is 25 times my current annual expense.

KlangFool
by KlangFool
Tue Oct 16, 2018 3:13 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10627

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

Folks, Please correct me if I am wrong. Didn't I read somewhere that Jack invests in the Wellington Fund? If that is true, then, Jack has at least some money in the non-US stock since Wellington fund is 10% international stock. https://www.reuters.com/article/us-column-taylor-bogle/me-and-my-money-j...
by KlangFool
Tue Oct 16, 2018 3:09 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10627

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

One more point: I think I read Bogle has a net worth of $80M. Then consider that he's age 89. It really doesn't matter what Bogle invests in as that ton of money will surely last his lifetime no matter how the US performs. Those of us who are "poor" with only $2M (for example) and who are going to ...
by KlangFool
Tue Oct 16, 2018 10:50 am
Forum: Personal Consumer Issues
Topic: Corporate politics/culture
Replies: 43
Views: 3875

Re: Corporate politics/culture

The number of times I have seen "loss making" products dropped, and then the discovery that that causes your customer to shift their business, or that that product was absorbing a disproportionate part of your overheads, etc... Valuethinker, That is still a fairly sane company. How about consistent...
by KlangFool
Tue Oct 16, 2018 10:35 am
Forum: Personal Consumer Issues
Topic: Corporate politics/culture
Replies: 43
Views: 3875

Re: Corporate politics/culture

Jack FFR1846 wrote:
Tue Oct 16, 2018 9:42 am

Those at the top lie. They always lie.
Jack FFR1846,

I think you overrated their capabilities. A person has to know the truth in order to lie. They are not smart enough to lie.

KlangFool
by KlangFool
Tue Oct 16, 2018 9:35 am
Forum: Personal Consumer Issues
Topic: Corporate politics/culture
Replies: 43
Views: 3875

Re: Corporate politics/culture

OP,<br abp="686"><br abp="687">Why does any of this matters to you? What is your goal?<br abp="688"><br abp="689">In order to play any political game, you need to have the clarity of purpose first. What are you trying to achieve?<br abp="690"><br abp="691">KlangFool Yeah, I have to agree. OP,where ...