Search found 7762 matches

by KlangFool
Wed Feb 21, 2018 10:16 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3758

Re: Sequence of returns risk while accumulating

Being house poor tends to be temporary (even small raises rapidly get you out of the house poor situation over 5-10 years) while spending tends to be pretty permanent (i.e. that 10k raise doesn't go towards savings. It goes towards a boat.). If your a spender, there are far worse things to spend mo...
by KlangFool
Wed Feb 21, 2018 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Employment for Immigrant Wife
Replies: 16
Views: 991

Re: Employment for Immigrant Wife

sergio wrote:
Wed Feb 21, 2018 9:13 pm

But culturally, not working is off the table.
sergio,

This is not consistent with Chinese culture in regards to pregnant women.

KlangFool
by KlangFool
Wed Feb 21, 2018 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Employment for Immigrant Wife
Replies: 16
Views: 991

Re: Employment for Immigrant Wife

OP, Let's start with the basic. A) Why is she want to work? B) Please note that as soon as the baby is born, her's income may not cover the childcare expenses. So, besides not bringing in money, it will cost money. <<She is 36 years old and her degree and work experience in China, to be blunt, is pr...
by KlangFool
Wed Feb 21, 2018 9:13 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3758

Re: Sequence of returns risk while accumulating

overthought, << Did I just get lucky with a really skewed sample, >> You had lived in a very unusual real estate market. KlangFool Are you sure that his isn't the more normal one (well by land area and not population)? I have never seen a study of this but my impression that buying being cheaper th...
by KlangFool
Wed Feb 21, 2018 8:07 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3758

Re: Sequence of returns risk while accumulating

4) Most folks rent the house (A) one level below the house (B) that they are willing to buy. Then, they use the cost of renting (B) to justify their purchase of (B). So, for most folks, the calculation is a fraud. They were never to rent (B) under any circumstances. They only use renting (B) to jus...
by KlangFool
Wed Feb 21, 2018 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: Rant about Savings Rate
Replies: 25
Views: 1742

Re: Rant about Savings Rate

That's like saying you can have a color blue that's blue, or brown. Well sure, you can call a brown color blue, but that doesn't make it blue. Savings rate is a thing. It's already defined https://fred.stlouisfed.org/series/PSAVERT https://www.investopedia.com/terms/s/savings-rate.asp You can make ...
by KlangFool
Wed Feb 21, 2018 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Rant about Savings Rate
Replies: 25
Views: 1742

Re: Rant about Savings Rate

What I get caught up on is how to factor 401k matching. I am fortunate to get a 6% match at work with no limit. Do I count that as part of my income, even though I wouldn't get it if I wasn't saving? For instance, if I make 100k and contribute 10k, getting another 6k match, is my savings rate: a) 1...
by KlangFool
Wed Feb 21, 2018 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Rant about Savings Rate
Replies: 25
Views: 1742

Re: Rant about Savings Rate

What I get caught up on is how to factor 401k matching. I am fortunate to get a 6% match at work with no limit. Do I count that as part of my income, even though I wouldn't get it if I wasn't saving? For instance, if I make 100k and contribute 10k, getting another 6k match, is my savings rate: a) 1...
by KlangFool
Wed Feb 21, 2018 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Rant about Savings Rate
Replies: 25
Views: 1742

Re: Rant about Savings Rate

Calculate your saving rate in term of your current annual expense. Then, it has a meaning and it is useful. Anything else is a waste of time. Like, for example, if your annual expenses (excluding investments obviously, and also taxes?) were $20,000 and you invested $10,000, then your "savings rate"...
by KlangFool
Wed Feb 21, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Interested on opinions on paying off low-rate ARM
Replies: 20
Views: 585

Re: Interested on opinions on paying off low-rate ARM

OP, I have a similar number as you are. A) My net worth excluding the house is 20 times my annual expense with the mortgage. B) My remaining house loan is about 5 years of my annual expense with the mortgage. C) My mortgage is a 30 years fixed 3.49% loan. I sleep much better by not paying off the lo...
by KlangFool
Wed Feb 21, 2018 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Rant about Savings Rate
Replies: 25
Views: 1742

Re: Rant about Savings Rate

OP,

Calculate your saving rate in term of your current annual expense. Then, it has a meaning and it is useful. Anything else is a waste of time.

KlangFool
by KlangFool
Wed Feb 21, 2018 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Interested on opinions on paying off low-rate ARM
Replies: 20
Views: 585

Re: Interested on opinions on paying off low-rate ARM

It helps me because it derisks my life circumstances. If I pay it, I can live exactly where I want to live and get to a comfortable retirement by working my current job, or a job that pays even a third as much if things turn out badly. If I don't pay it and instead invest the proceeds, there is an ...
by KlangFool
Wed Feb 21, 2018 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: Make sense to setup 529 for high school junior?
Replies: 17
Views: 1187

Re: Make sense to setup 529 for high school junior?

https://en.wikipedia.org/wiki/Foreign_e ... _exclusion

OP,

Do you pay any tax at all? If you don't, why do you care about tax-free growth?

KlangFool
by KlangFool
Wed Feb 21, 2018 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Interested on opinions on paying off low-rate ARM
Replies: 20
Views: 585

Re: Interested on opinions on paying off low-rate ARM

OP, 1) The house's mortgage is 2X your net worth. If you pay off the mortgage, your net worth is 5 times your annual expense. You are "House Poor". Whether you pay off your mortgage, does not change that. If you really worry about your financial future, you should downsize your house. Then, you cou...
by KlangFool
Wed Feb 21, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Interested on opinions on paying off low-rate ARM
Replies: 20
Views: 585

Re: Interested on opinions on paying off low-rate ARM

OP, 1) The house's mortgage is 2X your net worth. If you pay off the mortgage, your net worth is 5 times your annual expense. You are "House Poor". Whether you pay off your mortgage, does not change that. If you really worry about your financial future, you should downsize your house. Then, you coul...
by KlangFool
Wed Feb 21, 2018 4:19 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3758

Re: Sequence of returns risk while accumulating

OP, As far as I can tell, in order to avoid of SRR while accumulating A) Save as much as possible and as early as possible. B) Adjust your AA to be more conservative as it gets bigger or big enough Do I get this right? As far as working longer and so on, those are beyond most folks' control. Only (A...
by KlangFool
Tue Feb 20, 2018 3:40 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3758

Re: Sequence of returns risk while accumulating

I am very suspect that difference between success and failure was the house. A 500k mortgage, taxes and so on is going to be on the order 4k payment. That isn't going to be enough to be the difference between success and failure over 10 years (and if it is over 10 years, they making money on their ...
by KlangFool
Tue Feb 20, 2018 9:25 am
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3758

Re: Sequence of returns risk while accumulating

OP, 1) In summary, saves more since working longer may not be a viable option. 2) And, for most people, it comes down to do not be "House Poor". Once a person buys the house that everyone expects you to buy, you are in debt to the house for a very long period of time. Savings go out of the window. ...
by KlangFool
Tue Feb 20, 2018 8:16 am
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3758

Re: Sequence of returns risk while accumulating

I am very suspect that difference between success and failure was the house. A 500k mortgage, taxes and so on is going to be on the order 4k payment. That isn't going to be enough to be the difference between success and failure over 10 years (and if it is over 10 years, they making money on their ...
by KlangFool
Mon Feb 19, 2018 10:58 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3758

Re: Sequence of returns risk while accumulating

2) And, for most people, it comes down to do not be "House Poor". Once a person buys the house that everyone expects you to buy, you are in debt to the house for a very long period of time. Savings go out of the window. I am bit curious. How did all your coworkers and friend lose money in the washi...
by KlangFool
Mon Feb 19, 2018 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: job application that ask for salary requirement
Replies: 15
Views: 1391

Re: job application that ask for salary requirement

On my current job, I listed $1 for the application. The system took it. I have done that once. Just wondering whether the hiring manager will be a smart aleck about that $1 salary figure. I have also wondered whether writing too much means the application gets trashed even before anybody sees it. I...
by KlangFool
Mon Feb 19, 2018 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: Best Investment Options with Zero Earned Income
Replies: 16
Views: 980

Re: Best Investment Options with Zero Earned Income

Yes I did mean traditional IRA. By expense I am assuming you are referring to my budget spending. That would be about $75k per year. If that is not what you were asking let me know. Bonch, 1) So, essentially, your installment from the 401K is big enough to pay for your annual expense. And, you have...
by KlangFool
Mon Feb 19, 2018 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: Best Investment Options with Zero Earned Income
Replies: 16
Views: 980

Re: Best Investment Options with Zero Earned Income

So I am not sure the answer to this. I chose to retire at 55. I was offered a lump sum payout of a little over a million dollars. Previous advise on the forum was to put that in an IRA to avoid paying taxes on the lump sum. It is slated to be deposited into a Vanguard traditional IRA in about a mon...
by KlangFool
Mon Feb 19, 2018 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: job application that ask for salary requirement
Replies: 15
Views: 1391

Re: job application that ask for salary requirement

How do you deal with corporate websites that require you to input a salary requirement as part of the online application? Before anyone says anything about networking, I don't anyone in the company. Nyc10036, $99. A stupid question deserves stupid answer. KlangFool You really are often over your he...
by KlangFool
Mon Feb 19, 2018 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: job application that ask for salary requirement
Replies: 15
Views: 1391

Re: job application that ask for salary requirement

Nyc10036 wrote:
Mon Feb 19, 2018 7:42 pm
How do you deal with corporate websites that require you to input a salary requirement as part of the online application?

Before anyone says anything about networking, I don't anyone in the company.
Nyc10036,

$99. A stupid question deserves stupid answer.

KlangFool
by KlangFool
Mon Feb 19, 2018 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawls from Retirement Accounts
Replies: 3
Views: 697

Re: Withdrawls from Retirement Accounts

I am retired and have both IRA and 401K retirement accounts. Is there any advantage to withdrawing funds from one account vs the other (taxes, etc)? dbp7777, 1) You need to read the following thread. https://www.bogleheads.org/forum/viewtopic.php?t=87471 <<How to pay ZERO taxes in retirement with 6...
by KlangFool
Mon Feb 19, 2018 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Best Investment Options with Zero Earned Income
Replies: 16
Views: 980

Re: Best Investment Options with Zero Earned Income

Best bet would be not to withdraw from tax-advantaged accounts if you have other money to spend. Maybe don't take installments from the 401(k). Why not roll it over to an IRA? I am rolling a large lump sum pension to a traditional IRA and cant touch it till 59.5. Bonch, Why? You can do Roth convers...
by KlangFool
Mon Feb 19, 2018 5:40 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk while accumulating
Replies: 65
Views: 3758

Re: Sequence of returns risk while accumulating

OP, 1) In summary, saves more since working longer may not be a viable option. 2) And, for most people, it comes down to do not be "House Poor". Once a person buys the house that everyone expects you to buy, you are in debt to the house for a very long period of time. Savings go out of the window. 3...
by KlangFool
Mon Feb 19, 2018 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing in a Bear Market
Replies: 7
Views: 580

Re: Rebalancing in a Bear Market

What are some of the best methods for rebalancing a portfolio in a bear market? In particular, if a bear market has resulted in a decline in both equities and bonds, what’s the best method? Intuitively you don’t really want to be selling equities at all when they’re down. Would it be best to just r...
by KlangFool
Mon Feb 19, 2018 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 51
Views: 3055

Re: Looking for some help and fast (buying vs renting, net worth)

tmcc wrote:
Mon Feb 19, 2018 10:23 am
But that would be market timing :D
tmcc,

You assume that the house's price will go up in one year. That is market timing too.

KlangFool
by KlangFool
Mon Feb 19, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 51
Views: 3055

Re: Looking for some help and fast (buying vs renting, net worth)

One of the things that people are missing in this equation is the ability to purchase for the same price 12 months from now It may not be possible get the same purchase price basis down the road. In that situation, buy now is the obvious winner unless the bottom falls out. tmcc, Or, we will hit a r...
by KlangFool
Sun Feb 18, 2018 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: What has been your most important skill in achieving financial independence?
Replies: 164
Views: 10591

Re: What has been your most important skill in achieving financial independence?

Take care of your career. Learn a skill that pays well and that you enjoy. Work hard, please your bosses with exceptional performance, challenge yourself and build on your successes. Max out your 401K and save money in your taxable account as well. Most of all passion for life and love your signifi...
by KlangFool
Sun Feb 18, 2018 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 51
Views: 3055

Re: Looking for some help and fast (buying vs renting, net worth)

What equity? How much do you lose by not investing the down payment? How much do you lose by mortgage interest? Klangfool So are you against homeownership? Or do you simply favor the least costly form of housing one can tolerate? willthrill81, I am against folks overspending on their housing. A) It...
by KlangFool
Sun Feb 18, 2018 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 51
Views: 3055

Re: Looking for some help and fast (buying vs renting, net worth)

Hey Klang, I’m not sure if I’m misunderstanding or if you’re misunderstanding something, but I don’t know how you arrived at that summary. A few comments. 1) my question is does A or B come out ahead. Saying they both lose doesn’t really answer that. Ok, who loses faster, person A or B? 2) the part...
by KlangFool
Sun Feb 18, 2018 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 51
Views: 3055

Re: Looking for some help and fast (buying vs renting, net worth)

Hey Klang, I’m not sure if I’m misunderstanding or if you’re misunderstanding something, but I don’t know how you arrived at that summary. A few comments. 1) my question is does A or B come out ahead. Saying they both lose doesn’t really answer that. Ok, who loses faster, person A or B? 2) the part...
by KlangFool
Sun Feb 18, 2018 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 51
Views: 3055

Re: Looking for some help and fast (buying vs renting, net worth)

Hey Klang, I’m not sure if I’m misunderstanding or if you’re misunderstanding something, but I don’t know how you arrived at that summary. A few comments. 1) my question is does A or B come out ahead. Saying they both lose doesn’t really answer that. Ok, who loses faster, person A or B? 2) the part...
by KlangFool
Sun Feb 18, 2018 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for some help and fast (buying vs renting, net worth)
Replies: 51
Views: 3055

Re: Looking for some help and fast (buying vs renting, net worth)

Hi All, Thank you very very much in advance, you guys will help me make a big life decision very soon. I came across a home today that to me seems rare. I was thinking of buying 7-8 months from now, but now it turns out if I want this home, I need to move very quickly and buy. So, here's my questio...
by KlangFool
Sun Feb 18, 2018 4:18 pm
Forum: Personal Consumer Issues
Topic: Iphone 8 case suggestions
Replies: 2
Views: 161

Re: Iphone 8 case suggestions

OP,

Instead of buying an IPhone 8 case, you may consider buying an IPhone 8 battery case. It is about the same price and slightly more weight. But, you get extended power too.

KlangFool
by KlangFool
Sun Feb 18, 2018 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets
Replies: 25
Views: 1828

Re: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets

I would not start withdrawing for another apx 2.5 years with hopes of at that time being closer to 2.5 million which hopefully will generate the $100,000. Thanks again RetireSoon90, In summary, it is too early for you to contribute to the Roth 401K. You should contribute to the Trad. 401K until you...
by KlangFool
Sun Feb 18, 2018 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 6704

Re: Sell me on the benefits of an emergency fund

Let's assume that your assumption about yourself is correct, it makes you not a normal person. My wife tells me that all the time...maybe she is on to something. :D But in all seriousness, my only point is that if you consciously elected not to have an EF because you knew that you had other sources...
by KlangFool
Sun Feb 18, 2018 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 6704

Re: Sell me on the benefits of an emergency fund

chevca wrote:
Sun Feb 18, 2018 2:21 pm
I don't think there's any way you could possibly know how others would act in that circumstance.
chevca,

That is true if you have no first-hand observations. After a few recessions across 30+ years, I have enough observations to know how most folks will behave.

KlangFool
by KlangFool
Sun Feb 18, 2018 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 6704

Re: Sell me on the benefits of an emergency fund

chevca wrote:
Sun Feb 18, 2018 2:16 pm
I would argue that most normal/average people don't even have an EF nor investments. So, what's your point, Klang?
chevca,

My point is a normal person that has investment but no EF will not act rationally in a financial crisis.

KlangFool
by KlangFool
Sun Feb 18, 2018 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 6704

Re: Sell me on the benefits of an emergency fund

You just need access to capital, and it doesn't need to be cash or bonds either. As livesoft has explained several times, even if your taxable account is 100% equities that are down at the time, that is OK as long as there are bonds in your qualified plans. Sell the equities in your taxable, and at...
by KlangFool
Sun Feb 18, 2018 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets
Replies: 25
Views: 1828

Re: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets

KlangFool, Thanks so much for your questions and sorry for my lack of clarity, I have a lot to learn :) Answers below :) 1) How much of that 1.9 million is in the Roth IRAs? -ZERO 2) Ditto, how much of that 1.9 million is in the taxable account? - ALL 1.9 million There is no such thing as taxable I...
by KlangFool
Sun Feb 18, 2018 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Pre- vs post-tax saving: Am I thinking it wrong?
Replies: 25
Views: 1669

Re: Pre- vs post-tax saving: Am I thinking it wrong?

Given that some BH folks are big savers, it is possible that their tax rate during post retirement be higher than the tax rate pre retirement. Let's say that you are in the marginal tax rate of 25% if you put $1,000 into the Trad. 401K account, you save 25% tax. Let's assume that you are in 25% mar...
by KlangFool
Sun Feb 18, 2018 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets
Replies: 25
Views: 1828

Re: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets

We are hoping to fully retire at at 60, in about 2.5 years.We have about 1.9 million in taxable 401k/IRA's. I think we will be in the same income bracket but I think that the tax brackets will change in future and not be as good so I wanted to take advantage of them now. We have NO tax deferred mon...
by KlangFool
Sun Feb 18, 2018 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Pre- vs post-tax saving: Am I thinking it wrong?
Replies: 25
Views: 1669

Re: Pre- vs post-tax saving: Am I thinking it wrong?

One factor that often gets overlooked is that by deferring tax liability until later, you have more money today. Since you are a rational investor, you will save that additional money also, and you'll do it in the most tax efficient way available. That money also goes to work for you. It wears glov...
by KlangFool
Sun Feb 18, 2018 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Pre- vs post-tax saving: Am I thinking it wrong?
Replies: 25
Views: 1669

Re: Pre- vs post-tax saving: Am I thinking it wrong?

Given that some BH folks are big savers, it is possible that their tax rate during post retirement be higher than the tax rate pre retirement. EGARCH, You are wrong!! 1) Do you do your own tax? 2) Do you understand that even if that is true, you save tax by putting money into the tax-deferred accou...
by KlangFool
Sun Feb 18, 2018 11:24 am
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 6704

Re: Sell me on the benefits of an emergency fund

In that event, the payout of my PTO balance would cover several months of living expenses, and then in the unlikely event I didn't find another job unemployment or (worst case) long term disability would kick in. I have a substantial savings rate, so I could cover an unexpected expense pretty well ...
by KlangFool
Sun Feb 18, 2018 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 6704

Re: Sell me on the benefits of an emergency fund

You just need access to capital, and it doesn't need to be cash or bonds either. As livesoft has explained several times, even if your taxable account is 100% equities that are down at the time, that is OK as long as there are bonds in your qualified plans. Sell the equities in your taxable, and at...