Search found 31873 matches

by KlangFool
Sun May 26, 2024 9:49 pm
Forum: Personal Investments
Topic: Shift future savings from tax-deferred to taxable?
Replies: 8
Views: 637

Re: Shift future savings from tax-deferred to taxable?

OP, 1) What is your current marginal tax rate? 2) Do you pay state income tax? 3) Take 1.45 million and divide by 25. You get 58K of income. With about 24K of standard deduction, your taxable income equal to 34K. That is 12% marginal tax rate. 4) Is your current marginal tax rate higher than 12%? If yes, keep investing in the tax deferred account. "in order not to have to withdraw funds from tax-deferred accounts during, say, the first decade of retirement?" 5) You can withdraw your Roth IRA contribution tax free and penalty free at any time. 6) You can withdraw your Roth IRA earning tax free and penalty free after 59 1/2 years. 7) So, you can do (5) and (6) while doing Roth conversion during the first decade of retirement. 8) Rea...
by KlangFool
Sun May 26, 2024 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: I have too much house at 6.75%, but I could pay it off. Should I?
Replies: 19
Views: 1265

Re: I have too much house at 6.75%, but I could pay it off. Should I?

OP,

1) You have too much house.

2) Paying down or paying off the mortgage will make you lose sleep when your employer start laying off employees in the coming recession.

"Hi folks, I feel uncomfortable with my situation. It's not bad, but it's not great."

3) It will get worse when you pay off the mortgage.

4) How long can you survive when you are unemployed in the coming recession if the housing and the stock market drops 50%?

5) How much longer can you last if you do not pay off the mortgage.

6) It is not safer.

KlangFool
by KlangFool
Sun May 26, 2024 6:33 pm
Forum: Investing - Theory, News & General
Topic: AA recommendations
Replies: 15
Views: 779

Re: AA recommendations

swayswift wrote: Sun May 26, 2024 6:23 pm Yes and that is why I asked how do people rotate over the gains, what strategies they follow. KlangFool had a good strategy.

I do not rotate my gains.

When it goes up 3X, I sell 50% and put the gain into my main portfolio with mutual funds.

I made my mistake and let it went up to 50% and lost it all at Telecom Bust.

For now, I gamble with less than 10K of my money.

KlangFool
by KlangFool
Sun May 26, 2024 6:31 pm
Forum: Investing - Theory, News & General
Topic: AA recommendations
Replies: 15
Views: 779

Re: AA recommendations

https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=5ZSLaJ0hzDw91sNNdo4EVR $10K in TSLA from 2015 is now $123K. $10K in NVDA from 2015 is now $1.7M $10K in BTC from 2015 is now $1.9M swayswift, So, when are you going to sell? "$10K in TSLA from 2015 is now $123K." For example, TSLA. Do you believe that TSLA can go up another 12.3X over the next 9 years? Ditto for NVDA and BTC. Can it goes up the same pace over the next 9 years? If not, why are you holding them? What is your exit plan? Do not gamble on a stock if you do not know when you are going to sell them. Anyone with a bit of common sense will tells you that it is not sustainable for those stocks to keep going up the same pace. It will stop eventually. If you g...
by KlangFool
Sun May 26, 2024 6:19 pm
Forum: Investing - Theory, News & General
Topic: Recommended Stocks
Replies: 15
Views: 1048

Re: Recommended Stocks

OP,

If anyone of those any stock analyst know what they are talking about, they would

A) Run a hedge fund and makes a lot of money.

And/Or

B) Very rich and retired at a beach somewhere.

So, why would they provide their recommendation to you?

Just buy VTI. If you have enough of them, the dividend/distribution will be big enough for your additional income.

I have about 500K in my taxable account. It generates about 10K of annual dividend/distribution/interest income. Most of them are qualified dividend.

KlangFool
by KlangFool
Sun May 26, 2024 5:01 pm
Forum: Investing - Theory, News & General
Topic: AA recommendations
Replies: 15
Views: 779

Re: AA recommendations

Sure but really lot of people did made money if they got into TSLA early because they trust Elon, or NVIDIA before the chatgpt came because of AI hype or even AAPL because they loved jobs as founder and stuck on the conviction. You could argue thats gambling the point is it happens and you have really huge bag now. Don't gamble/speculate on individual stock if you do not have an exit plan. Aka, when to sell. My stock gambling rule is to sell 50% when it goes up 3X. Then, I have harvested the gain. I can afford to lose the rest. If it goes up another 3X, I sell another 50%. What is your rule? Do you have one? Never sell is the wrong answer. In those cases, why buy the stock? You can bury the money in your back yard and it won't matter. Klan...
by KlangFool
Sun May 26, 2024 11:58 am
Forum: Investing - Theory, News & General
Topic: 100% VOO (My Current Allocation) vs. 80% VOO and 20% International
Replies: 40
Views: 3162

Re: 100% VOO (My Current Allocation) vs. 80% VOO and 20% International

drk wrote: Sun May 26, 2024 11:27 am
KlangFool wrote: Sun May 26, 2024 11:10 am From the link provided by you, the weighting on Canada is different.
They track different indexes. Most of the country weightings are different: some countries have a higher proportion of small-caps (e.g., Canada), while most have fewer small-caps. You can find current data on Vanguard's fund pages by clicking on "Portfolio Composition" and "Markets".

If OP also wants to focus on ex-US large-caps, use VFWAX. If not, use VTIAX.
That was my point. When I look at those 2 indexes, the Canada's country weighting was different.

I use both in my taxable account for Tax Loss Harvesting.

KlangFool
by KlangFool
Sun May 26, 2024 11:10 am
Forum: Investing - Theory, News & General
Topic: 100% VOO (My Current Allocation) vs. 80% VOO and 20% International
Replies: 40
Views: 3162

Re: 100% VOO (My Current Allocation) vs. 80% VOO and 20% International

retiredjg wrote: Sun May 26, 2024 11:02 am This information may be old, but according to https://www.bogleheads.org/wiki/Compare ... onal_funds the biggest difference is that the FTSE fund (VFWAX) does not have small caps. There is a complimentary small cap fund available though.
retiredjg,

North America[1] 5.9% (includes Canada) 6.6% (includes Canada)

From the link provided by you, the weighting on Canada is different.

KlangFool
by KlangFool
Sun May 26, 2024 5:23 am
Forum: Investing - Theory, News & General
Topic: 100% VOO (My Current Allocation) vs. 80% VOO and 20% International
Replies: 40
Views: 3162

Re: 100% VOO (My Current Allocation) vs. 80% VOO and 20% International

Zillions wrote: Sat May 25, 2024 10:51 pm
KlangFool wrote: Sat May 25, 2024 8:10 pm OP,

1) Do not put all your eggs into one basket!

2) If everything that you invested in is doing well, you have no diversification.

3) Good luck!

KlangFool
What's the difference between VTIAX and VFWAX? Thanks.
Please check the holding. I think the difference is Canada. The weighting on Canada is different.

KlangFool
by KlangFool
Sat May 25, 2024 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Low Expenses, How?
Replies: 126
Views: 13104

Re: Low Expenses, How?

bling wrote: Sat May 25, 2024 5:15 pm
the only "problem", if you could call it that, is how this impacts your social interactions with other parents in the area, and your kids with their kids. when others have a huge house with a big pool in the backyard with the luxury cars, and your home is the size of their garage, you can't avoid being perceived as "poor". all of their wealth is out in the open for everyone to see, but our wealth is invisible, just a bunch of digital numbers in a brokerage account.
bling,

My daughter complained about that. Then, after she graduated college, she and her brother are the only few without student loans. Their high school classmates with the bigger houses has student loans.

KlangFool
by KlangFool
Sat May 25, 2024 8:10 pm
Forum: Investing - Theory, News & General
Topic: 100% VOO (My Current Allocation) vs. 80% VOO and 20% International
Replies: 40
Views: 3162

Re: 100% VOO (My Current Allocation) vs. 80% VOO and 20% International

OP,

1) Do not put all your eggs into one basket!

2) If everything that you invested in is doing well, you have no diversification.

3) Good luck!

KlangFool
by KlangFool
Sat May 25, 2024 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Saving an Inheritance for a House vs Investing
Replies: 21
Views: 2453

Re: Saving an Inheritance for a House vs Investing

I did a good amount of research about the other costs associated with owning a home including all the different types of insurance as well as expenses ranging from replacing a roof or HVAC system to lawn care to small stuff like buying new locks and trash cans. I'm aware of most of the potential costs, but didn't consider that much detail when playing with those calculators. If/when I have a need to buy a house and can identify the specific house(s) I want to buy, I'll start considering those details. 95233stegosaurs, You are missing one key item. What is your non-housing expense? A) What is your gross income? B) What is your current annual expense? C) What is your current rent? D) What is your current annual savings/investment? E) If you ...
by KlangFool
Sat May 25, 2024 4:54 pm
Forum: Personal Investments
Topic: My experience straying from Bogleheads principles
Replies: 42
Views: 5167

Re: My experience straying from Bogleheads principles

OP,

But, there are always exceptions. My uncle strike the lottery 3 times. So, he is consistently lucky enough that I would not bet against him.

Are you that lucky?

KlangFool
by KlangFool
Sat May 25, 2024 4:52 pm
Forum: Personal Investments
Topic: My experience straying from Bogleheads principles
Replies: 42
Views: 5167

Re: My experience straying from Bogleheads principles

I-Know-Nothing wrote: Sat May 25, 2024 10:35 am
Anyway, I just thought others might be interested in my experience. I’m not saying I’m the most skilled investor - I’m certainly not. Still, I’m a reasonably intelligent and informed person, and I couldn’t really make this work.
I-Know-Nothing,

Why are you surprised?

My family member worked in the Wall Street. He earned 7 figures in annual salary and bonuses. He lost 10 millions of his own money in the Telecom Bust.

If you are any good and beat the S&P 500 consistently, you will be paid millions by the Wall Street. Most fund managers cannot beat S&P 500.

KlangFool
by KlangFool
Sat May 25, 2024 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a second home for child. Seeking advice
Replies: 42
Views: 3365

Re: Buying a second home for child. Seeking advice

Do you feel that living is getting harder financially for the young generation? nonamer800, No. I lost my father while I was young. My widowed mother had to raise 6 children on her own. I starved regularly through childhood. I worked in my family business through childhood. I have to leave my country just to get a college degree. I worked 2 part-time jobs and took more than full-time course work at the same time while in college. I slept on the average of 4 hours per day through college years. When I started working, I have to support my widowed mother and younger sister through college. My children have a far easier life. They never faced starvation, They do not have to work through childhood or college. They do not have to support their ...
by KlangFool
Sat May 25, 2024 11:32 am
Forum: Personal Investments
Topic: Time for my asset rebalancing, am I alone in feeling uneasy about this task ?
Replies: 40
Views: 2682

Re: Time for my asset rebalancing, am I alone in feeling uneasy about this task ?

Kumsajack wrote: Sat May 25, 2024 11:10 am
How do you handle the push-the-button moment on rebalancing ?
OP,

It is harder the first time. It gets easier the subsequent time. What is your rebalancing rule? With 5/25 band based rebalancing, you only have to do it once every few years. The exception was 2020.

KlangFool
by KlangFool
Sat May 25, 2024 8:25 am
Forum: Personal Finance (Not Investing)
Topic: Buying a second home for child. Seeking advice
Replies: 42
Views: 3365

Re: Buying a second home for child. Seeking advice

OP,

If you believe that you should give money to your children in the future to sustain their life style, you should teach them money management skill now. Or else, they will lose the money in no time. At the minimum, how to save and invest if they do not know how to earn it. The school system will not teach them that.

KlangFool
by KlangFool
Sat May 25, 2024 6:17 am
Forum: Personal Investments
Topic: Should we keep working?
Replies: 41
Views: 5658

Re: Should we keep working?

Income: Her: $160k, him: $180k Between tax sheltered and taxable, we save about $160k yearly. This includes company matching. Our after-tax expenses have run $70-75k the last few years. Grump99, 1) How much is the company matching every year. 2) Gross income = annual expense + annual savings + taxes 340K = 75K + 160K + taxes Taxes = 340K - 75K - 160K = 105K? -> Too much. 3) I think your annual expense is much more than 75K per year. It is probably in the 100K to 120K per year range depending on your answer to (1). KlangFool My employer matches 8% and and my wife's 5%. We looked at our checking account statements to determine expenses, since all expenses go through there eventually. We are pretty sure that's what we've been spending but can...
by KlangFool
Fri May 24, 2024 11:03 pm
Forum: Personal Investments
Topic: Should we keep working?
Replies: 41
Views: 5658

Re: Should we keep working?

Grump99 wrote: Fri May 24, 2024 5:57 pm
Income:
Her: $160k, him: $180k

Between tax sheltered and taxable, we save about $160k yearly. This includes company matching.

Our after-tax expenses have run $70-75k the last few years.
Grump99,

1) How much is the company matching every year.

2) Gross income = annual expense + annual savings + taxes

340K = 75K + 160K + taxes

Taxes = 340K - 75K - 160K = 105K? -> Too much.

3) I think your annual expense is much more than 75K per year. It is probably in the 100K to 120K per year range depending on your answer to (1).

KlangFool
by KlangFool
Fri May 24, 2024 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a second home for child. Seeking advice
Replies: 42
Views: 3365

Re: Buying a second home for child. Seeking advice

nonamer800 wrote: Fri May 24, 2024 9:06 pm I see the concern that the child needs to pickup responsibility and giving them on a silver platter might given them a wrong example. That makes sense.

I feel he is struggling in high school, which is increasing my anxiety.
nonamer800,

Formal education is just a subset of overall life skills needed to survive in the real world. What are you doing to teach/guide him on the other stuff?

For example, how to shop, budget, manage money, and so on...

I would be more worried about other stuff that are not taught by the school system.

Has he ever work?

Summer job at a fast food restaurant is highly educational.

KlangFool
by KlangFool
Fri May 24, 2024 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a second home for child. Seeking advice
Replies: 42
Views: 3365

Re: Buying a second home for child. Seeking advice

When I think about my children, I worry that it will be hard for them to buy a house. I see that Home prices are increasing faster than inflation due to people buying with leverage. Given this situation, I would like to give for both my children, a house of their own so don’t they don’t have to struggle to buy a house in the future. nonamer800, 1) And, how does that help them if they cannot sustain their lifestyle even with a paid off house? 2) My family member paid for their kids' college education and gave each one 200K to 300K upon graduation. Each one of them has a 7 figures portfolio in their 30s. And, they probably inherit a few extra millions when the parents are gone. 3) If you are rich enough when they graduated college and you ca...
by KlangFool
Fri May 24, 2024 8:03 pm
Forum: Non-US Investing
Topic: How do you maintain your US self-employment when moving overseas?
Replies: 15
Views: 2414

Re: How do you maintain your US self-employment when moving overseas?

wineandplaya wrote: Fri May 24, 2024 7:51 pm
But somehow I need to pay tax in my new country too.
wineandplaya,

I know that I know nothing. So, this may or may not be true. For example, in some countries, you are taxed when you bring in the money. Not when you earn it.

So, for some people, they earn money from youtube or stock trading in the USA with an US account from their country. As per their country's law, they do not pay income tax as long as they do not bring in the money and keep it in the USA.

Please do not assume that other country's tax law is the same as the USA.

KlangFool
by KlangFool
Fri May 24, 2024 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage or Roth 401k Contributions
Replies: 15
Views: 1199

Re: Mortgage or Roth 401k Contributions

We are maxing out all the tax advantaged accounts that we can. We are definitely not in FU territory nor do we anticipate being there in the near future. We anticipate working until 60 due to a late career change and associated federal pension requirements. Unitsmoke, If I am in your place, I am more uncomfortable tying up more of my money into the house when I am not financially independent. How old are your kids? So, you have at least 2 kids. In Virginia, it is about 30K per kid per year for college education now. So, it is about 240K total for 2 kids. Do you plan to take a more expensive student loan for the kids? Will they be in college before or after you are 60 years old? "We anticipate working until 60 due to a late career chan...
by KlangFool
Fri May 24, 2024 7:46 pm
Forum: Non-US Investing
Topic: How do you maintain your US self-employment when moving overseas?
Replies: 15
Views: 2414

Re: How do you maintain your US self-employment when moving overseas?

As per my understanding, some tax law is based on your billing address. So, if you change your billing address, there might be some tax law impact. So, do you really want to cause this problem for the remaining few months' contract? But as a US citizen owning a US LLC, won't I be considered a US entity for 1099s etc? I can pay for a US registered agent and have a mailing address with scanning/forwarding. OP, I know enough to know that I do not know everything. And, when I say tax law, it is more than US Federal Income Tax. For example, state income tax, state sales tax, and so on. So, why would you change anything for the remaining contract? Keep your US address within the same city/state and bill to your client on their same address too. ...
by KlangFool
Fri May 24, 2024 7:09 pm
Forum: Non-US Investing
Topic: How do you maintain your US self-employment when moving overseas?
Replies: 15
Views: 2414

Re: How do you maintain your US self-employment when moving overseas?

An important consideration in the short term is that I don't have to renegotiate contracts. Being set up as a supplier and getting a purchase order can take a long time. I don't want to risk losing my existing clients because I have to re-enroll as supplier. I won't hide that I'm overseas but I don't think they care as long as it's tax legit. Many of the actual people I work with are themselves overseas (working for overseas offices of the same company). People never call me, but I need to be reachable by mail/IM. I will probably maintain my US phone number for a while to be reachable by banks etc. As per my understanding, some tax law is based on your billing address. So, if you change your billing address, there might be some tax law imp...
by KlangFool
Fri May 24, 2024 6:54 pm
Forum: Non-US Investing
Topic: How do you maintain your US self-employment when moving overseas?
Replies: 15
Views: 2414

Re: How do you maintain your US self-employment when moving overseas?

OP,

1) Do you need a US phone number for your customer to call?

2) Is it necessary for your customer to know that you are oversea?

KlangFool
by KlangFool
Fri May 24, 2024 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage or Roth 401k Contributions
Replies: 15
Views: 1199

Re: Mortgage or Roth 401k Contributions

OP,

1) Do you plan to pay off this low interest mortgage and then take a more expensive student loan for your kids? Many of my peers made that mistake.

2) Do not pay down or pay off your mortgage until you are financially independent. Aka, you can stop working tomorrow.

KlangFool
by KlangFool
Fri May 24, 2024 5:49 pm
Forum: Personal Investments
Topic: Save Cash in Money Market to Pay Off House?
Replies: 12
Views: 1457

Re: Save Cash in Money Market to Pay Off House?

I owe 400k on the house and have 2.3m in assets, 3.1m-3.3m if I include equity in my home. Most people would see that as a healthy debt to asset ratio. Taking a step back, one way or another that 400K is going to be paid. Whether it's through the sale of my home or through payments. I'd rather pay it off as soon as possible by diverting ~50% of my monthly savings. This seems like reasonable play to remove risk from my retirement plan. But who knows, the whole market might crash tomorrow ;) bogletron, "I owe 400k on the house and have 2.3m in assets," " Most people would see that as a healthy debt to asset ratio. " A) Which means nothing without the context of your portfolio size versus your current annual expense. 10X? ...
by KlangFool
Fri May 24, 2024 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Larger Down Payment vs. Holding the $$
Replies: 11
Views: 1129

Re: Larger Down Payment vs. Holding the $$

Rocky Mtn Man wrote: Fri May 24, 2024 8:32 am
London wrote: Fri May 24, 2024 8:12 am
You mention saving money on interest but you’re not looking at the return on the $75k. MM funds are yielding around 5%. So the spread is only about 0.75% you’re “paying” in interest. That’s about $1,500 over 5 years to preserve liquidity (less after mortgage interest deduction). Seems like a deal to me.
The money market fund is income taxed every year: Federal + State + NIIT (maybe). So there's a 24-45% reduction in that interest rate.

You could have the emergency fund in a Roth IRA, and not pay the tax. This has some disadvantages.
How much is the tax savings from the additional mortgage interest?

So, the after-tax-deduction of the mortgage interest is not 5%. Hence, the difference is not 0.75%.

KlangFool
by KlangFool
Fri May 24, 2024 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Larger Down Payment vs. Holding the $$
Replies: 11
Views: 1129

Re: Larger Down Payment vs. Holding the $$

Thanks for the detailed questions, some answers and I’m open to any ideas. OP, 1) Do you max up all your tax advantaged accounts? Yep 2) What is the price of the house? $599K 3) What is the size of your portfolio? all told between 401K, retail, and pension we’re in a very good place for our retirement goals 4) What is the minimum amount that you can put into the house down payment? I assume 20% as the standard, never really considered the minimum as I don’t want to end up paying all that interest over the next 5 years 5) Is it a non-recourse loan? Good question, I assume it’s a recourse loan. We’re just in the process of finalizing the mortgage application. Still working between 2 lenders 6) Why do you think your portfolio cannot beat 5.75...
by KlangFool
Thu May 23, 2024 8:53 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation Based on Multiple of Expenses
Replies: 11
Views: 1586

Re: Asset Allocation Based on Multiple of Expenses

Lawrence of Suburbia wrote: Thu Feb 15, 2024 12:29 am This notion seems to nearly/almost parallel yer standard target date fund theory, innit?
No.

Because TDF assume certain portfolio size at certain age, that does not work for many folks.

KlangFool
by KlangFool
Thu May 23, 2024 8:48 pm
Forum: Investing - Theory, News & General
Topic: "What Goes Up"
Replies: 32
Views: 4346

Re: "What Goes Up"

mikejuss wrote: Mon May 20, 2024 6:48 pm
But if the market were 100% passively held, would it cease to go up?
mikejuss,

It is not possible. Even in Bogleheads, many folks are actively managing their portfolio. It is very hard to be average.

I am only 40% into the 3 funds portfolio.

When someone can convince all BHs to be 100% passive index and keep a constant AA, then, it may happen.

KlangFool
by KlangFool
Thu May 23, 2024 4:41 pm
Forum: Personal Investments
Topic: Portfolio Review - Seriously? We could fully retire?
Replies: 30
Views: 4195

Re: Portfolio Review - Seriously? We could fully retire?

OP,

1) What is your gross household income?

2) What is your annual savings? 16K per year?

3) What is your current annual expense?

4) How much is your taxes? FICA + Medicare+ FED + State?

5) Use the following formula to verify your annual expense

Gross Income = annual expense + annual savings + taxes

KlangFool
by KlangFool
Thu May 23, 2024 4:38 pm
Forum: Personal Investments
Topic: Portfolio Review - Seriously? We could fully retire?
Replies: 30
Views: 4195

Re: Portfolio Review - Seriously? We could fully retire?

phase03 wrote: Thu May 23, 2024 4:33 pm
SOCIAL SECURITY: Me $26,400 at 67, Wife $15,600 at 67 (TOTAL $42,000 beginning 2039)
phase03,

1) How do you get those estimate? Are those numbers based both of you continuing working until 67 years old?

2) Have you cross the second bend points?

KlangFool
by KlangFool
Thu May 23, 2024 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: DS asked for help retiring...she can't?
Replies: 18
Views: 2632

Re: DS asked for help retiring...she can't?

OP, 1) The most important question will be what is her annual expense. 2) And, her answer is probably she does not know. 3) So, you will have to calculate for her. 4) What is her gross income? 90K? Plus pension? Plus, social security? Ex-spouse income at 2023 5) What is her annual savings? Only 401K contribution up to company match? 6) What is her annual taxes? 7) Use the following formula to estimate Gross income = annual savings + annual expense + taxes. 8) Use all 2023 incomes and taxes to estimate 2023 expenses. 9) The simple answer is she is probably living paycheck to paycheck with no emergency fund while earning 90K per year. 10) How could she retired unless she is willing to seriously reduce her annual expenses? 11) On the other han...
by KlangFool
Thu May 23, 2024 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Will real estate prices in major American metros always go up?
Replies: 31
Views: 1953

Re: Will real estate prices in major American metros always go up?

OP,

1) No.

2) Please don't get scammed by those kind of articles.

KlangFool
by KlangFool
Wed May 22, 2024 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Continue to Rent or Finally Buy?
Replies: 25
Views: 1266

Re: Continue to Rent or Finally Buy?

Not sure what is OP's question. Can OP afford to buy a $2 million condo? Presumably, yes. How much stress / anxiety may condo ownership and its related lack of liquidity cause OP? No idea, only OP can say. At less than 20% of OP's 'net worth', which currently includes no real estate, the condo could help to diversify OP's portfolio. I currently own a coop in a VHCOL location. It's been an okay investment, though the S&P 500 probably would have been better. But I view my coop as home, and while there are drawbacks to home ownership, overall I think the stability and consistency of residing in one location has been beneficial for me. That said, it's impossible for me to say how a different housing arrangement may have worked out. Another...
by KlangFool
Wed May 22, 2024 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Continue to Rent or Finally Buy?
Replies: 25
Views: 1266

Re: Continue to Rent or Finally Buy?

OP,

You are retired and single. Why would you buy a 2 million condo and maintained it?

You can stay at many 5 stars hotel across multiple beaches all over the world for a lot less.

How does this makes any sense?

Go out and see many beautiful places around the world.

KlangFool
by KlangFool
Tue May 21, 2024 9:46 pm
Forum: Personal Investments
Topic: Inflation protected bonds necessary in an 80/20 portfolio?
Replies: 39
Views: 3730

Re: Inflation protected bonds necessary in an 80/20 portfolio?

muffins14 wrote: Tue May 21, 2024 9:40 pm Why bother with the REITs?
+1,000.

It is going to cost OP a lot of taxes by keeping it in the taxable account. OP does have enough space for both fixed income and REIT in the tax advantaged accounts.

KlangFool
by KlangFool
Tue May 21, 2024 9:13 pm
Forum: Personal Investments
Topic: Inflation protected bonds necessary in an 80/20 portfolio?
Replies: 39
Views: 3730

Re: Inflation protected bonds necessary in an 80/20 portfolio?

OP,

At 50X, it is not necessary. Your portfolio will outgrew your 2% withdrawal almost every year and just get bigger and bigger. You probably can just live on your dividend and interest income for most years.

KlangFool
by KlangFool
Tue May 21, 2024 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: COBRA retroactive price increase and termination
Replies: 2
Views: 599

Re: COBRA retroactive price increase and termination

As of April 25th everything was fine. Coverage was fully paid by automatic debits (triggered by the COBRA administration company) on the 1st of each month. ccieemeritus, Thanks for the information. I have been unemployed for more than 1 year a few times. And, I had dealt with COBRA a few times. So, I do not do this automatic debit stuff. I push my payment from my bank 30 days ahead of the due date. Aka, right before the bill was generated. Hence, the COBRA bill will be generated with zero or credit balance. And, for the situation that you described, there will be at least credit balance to cover the shortfall for a few months. And, if the bank's automatic push failed for any reason, I have 30 days to fix it and I will find out when the COB...
by KlangFool
Tue May 21, 2024 7:06 pm
Forum: Investing - Theory, News & General
Topic: Financial crisis of 2008 - Inside Job
Replies: 76
Views: 11277

Re: Financial crisis of 2008 - Inside Job

Folks,

As I had mentioned many times before, there is a significant difference between employed and unemployed during a recession. On 1/1/2009, my employer laid off 50% of its employees at my location. As per my department, it laid off 80%. I kept my job by the skin of my teeth. But, many of my co-workers weren't so lucky. Some never recovered from that.

KlangFool
by KlangFool
Tue May 21, 2024 3:35 pm
Forum: Personal Investments
Topic: Save Cash in Money Market to Pay Off House?
Replies: 12
Views: 1457

Re: Save Cash in Money Market to Pay Off House?

I owe about $400k on my $1.2million home. Because I plan to keep the home forever, I consider only the debt when calculating my net worth. Using that framework I have a net worth of about $1.9million. I feel like I have enough invested that I can redirect some of my income towards paying off my mortgage. I am taking about 50% of what I would have invested to put towards the house. . And if something were to happen like I or my wife lost our jobs, I'd rather face that with a paid off house. bogletron, "I owe about $400k on my $1.2million home. Because I plan to keep the home forever, I consider only the debt when calculating my net worth. Using that framework I have a net worth of about $1.9million. " You have a net worth of 1.9 m...
by KlangFool
Tue May 21, 2024 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for House Downpayment
Replies: 23
Views: 1710

Re: Saving for House Downpayment

Doubtful. The supply/demand imbalance is carrying far more weight. The demand will collapse in a recession with serious unemployment. Tech lay off is starting... KlangFool Take a look at Case Schiller data even in 2008 absolute peak to trough was ~50%: https://fred.stlouisfed.org/categories/32261 If you’re expecting a substantially larger decline I would be interested in having you layout your logic, particularly if you’re arguing a national decline. Why should you care? If you are prepared, you will be fine. If you are not prepared, it is too late. It is not actionable for you. KlangFool You’re making a strong claim of potentially a 75% decline in home prices that you either can’t or won’t substantiate. Extraordinary claims require extrao...
by KlangFool
Tue May 21, 2024 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for House Downpayment
Replies: 23
Views: 1710

Re: Saving for House Downpayment

guyfromct wrote: Tue May 21, 2024 2:06 pm
KlangFool wrote: Sat May 18, 2024 5:13 pm
WhitePuma wrote: Sat May 18, 2024 5:03 pm
KlangFool wrote: Sat May 18, 2024 4:32 pm
" Interest rates are high now, "

If it goes up higher, it may crash the housing market.
Doubtful. The supply/demand imbalance is carrying far more weight.
The demand will collapse in a recession with serious unemployment. Tech lay off is starting...

KlangFool
Take a look at Case Schiller data even in 2008 absolute peak to trough was ~50%: https://fred.stlouisfed.org/categories/32261

If you’re expecting a substantially larger decline I would be interested in having you layout your logic, particularly if you’re arguing a national decline.
Why should you care?

If you are prepared, you will be fine. If you are not prepared, it is too late. It is not actionable for you.

KlangFool
by KlangFool
Tue May 21, 2024 7:05 am
Forum: Personal Investments
Topic: Why I prefer multiple asset classes to the BH 3 fund portfolio
Replies: 178
Views: 10220

Re: Why I prefer multiple asset classes to the BH 3 fund portfolio

Is anyone actually arguing that the multiple asset class portfolio will underperform? Or just that it won't be better than a 3-fund? Has anyone answered the tax loss harvesting question? To me that seems a big disadvantage of a 3-fund approach, and one benefit of multiple asset portfolio. If there's no downside and some potential upside to multiple asset approach, why not do it? If the argument against is too much time, too complicated, I don't think that holds. It doesn't take much time at all, in my experience, and it is much less complicated than all the discussion of TIPS ladders etc. on this forum. CloseEnough, Let's assume that everything works as planned, Is it worth the effort for an additional 0.5% return per year? My answer is no...
by KlangFool
Tue May 21, 2024 6:54 am
Forum: Personal Finance (Not Investing)
Topic: Low Expenses, How?
Replies: 126
Views: 13104

Re: Low Expenses, How?

OP, The answer is obvious but very hard to change. Do you A) "spend first, saves later" or B) "save first, spend later"? You are in group (A). Hence, you cannot understand group (B). If you only have 60K per year to spend, you will only spend 60K. You cannot spend what you do not have. Let you give you an example. Let's assume that your gross income is 150K per year and you choose to save 50K per year. That means you have to live like someone with a gross income of 100K per year. It starts with the house. You have to live among people with gross income of 100K. Then, you live like your neighbors. But, the difference is they live paycheck to paycheck with 100K gross income. But, you live like them and save 50K per year. Y...
by KlangFool
Tue May 21, 2024 5:55 am
Forum: Personal Investments
Topic: Help me with AA, tempted to be aggressive
Replies: 41
Views: 3146

Re: Help me with AA, tempted to be aggressive

OP,

1) Give your wife $1,000 per month from your taxable account and enjoy 20+% or more returns from tax savings and medical insurance deduction.

2) Delay social security as long as possible.

3) Then, you will be fine as long as you don't go aggressive with your portfolio.

KlangFool
by KlangFool
Tue May 21, 2024 5:32 am
Forum: Personal Investments
Topic: Help me with AA, tempted to be aggressive
Replies: 41
Views: 3146

Re: Help me with AA, tempted to be aggressive

OP,

If you makes 100K per year and save 35K per year, social security from both of you almost covers all your retirement expense. So, why do you think you have a problem?

KlangFool
by KlangFool
Tue May 21, 2024 5:26 am
Forum: Personal Investments
Topic: Help me with AA, tempted to be aggressive
Replies: 41
Views: 3146

Re: Help me with AA, tempted to be aggressive

Badgered wrote: Mon May 20, 2024 11:17 pm
KlangFool wrote: Mon May 20, 2024 10:48 pm
Badgered wrote: Mon May 20, 2024 10:42 pm
I feel like I'm behind,
Badgered,

Instead of that, you can provide actual number like your annual expense and folks can calculate and show you the real answer.

A) What is your gross income?
I make about 100k
Wife currently just pulling 12k from her ERP plan



B) Is your marginal tax rate actually 22%?
Yes. If my wife didn't pull from her ERP plan I think we could squeeze into the 12% bracket with my SIRA contributions. Doing so would also lower our health insurance.

KlangFool
OP,

Why don't you pay your wife $1,000 per month from your paycheck and enjoy the tax savings and 20+% return from the tax savings? It is a win-win for both of you. She get to keep her $1,000 in her ERP. You get the tax savings.

KlangFool