Search found 10491 matches

by KlangFool
Sun Dec 09, 2018 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Requesting advice
Replies: 5
Views: 206

Re: Requesting advice

Sorry, I added the % allocation and also the fund names. Thank you. johnkgan, This is not what we are looking for. <<2) Brokerage account in : VMLUX (Vanguard Limited-Term Tax-Exempt Fund Admiral Shares) -20%, VTIAX (Vanguard Total International Stock Index Fund Admiral Shares) - 20%, VTSAX (Vangua...
by KlangFool
Sun Dec 09, 2018 3:46 pm
Forum: Investing - Theory, News & General
Topic: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify
Replies: 12
Views: 676

Re: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify

welderwannabe, Please note that a fair amount of his savings would be in the tax-advantaged accounts. KlangFool I didn't read that into the OP's post. I read that we should assume tax deferred is already maxed out and he/she has $200K sitting in cash, and is saving an additional $100K per year (50%...
by KlangFool
Sun Dec 09, 2018 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for older and younger person saving for retirement?
Replies: 10
Views: 409

Re: Advice for older and younger person saving for retirement?

Welcome to the forum. Lots of information to unpack. First, do you have any specific goals. $X per year when I retired in Y years? Second, what is the logic behind giving your mom money to fund her IRA? The primary advantage of tax advantage accounts is to defer taxes. I don't think you mom will be...
by KlangFool
Sun Dec 09, 2018 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for older and younger person saving for retirement?
Replies: 10
Views: 409

Re: Advice for older and younger person saving for retirement?

OP, 1) Your mother is 60+ years old. So, her full retirement age might be 65 years old instead of 67 years old. Please confirm her full retirement age. 2) Tax? Besides not paying taxes, your mother might qualify for tax credits. Check out the earned income tax credit. https://ttlc.intuit.com/questio...
by KlangFool
Sun Dec 09, 2018 3:00 pm
Forum: Investing - Theory, News & General
Topic: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify
Replies: 12
Views: 676

Re: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify

Why doesn't Vanguard have a Target Life / Tax fund where they keep everything on the bond side in tax free muni bonds or something like: Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX) I believe a fund has to be at least 50% municipal income to keep its federal tax exemption. So V...
by KlangFool
Sun Dec 09, 2018 2:57 pm
Forum: Investing - Theory, News & General
Topic: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify
Replies: 12
Views: 676

Re: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify

OP, I used Life strategy Moderate 60/40 in my taxable account until it reaches a few hundred thousands. Then, only I split into 3 funds and 100% stock in the taxable account. At this stage, the dividend/interest income/distribution is only up to the maximum of a few thousand per year. It is not wor...
by KlangFool
Sun Dec 09, 2018 2:53 pm
Forum: Investing - Theory, News & General
Topic: Another Roth vs. Traditional question
Replies: 12
Views: 490

Re: Another Roth vs. Traditional question

Sorry, that was a typo. I meant Roth 401k. You could put max into Roth401k and the max into Roth IRA. That provides more effective tax-advantaged space than a Trad 401k + Roth IRA, and could make sense for some folks who will have high tax rates even in retirement. marcopolo, << That provides more ...
by KlangFool
Sun Dec 09, 2018 12:02 pm
Forum: Investing - Theory, News & General
Topic: Another Roth vs. Traditional question
Replies: 12
Views: 490

Re: Another Roth vs. Traditional question

So, the usual argument is that we would either put $24,500 (we’re over 50) into a traditional 401K, or ($24,500 * 0.75, assuming 25% tax) into a Roth 401K. Instead, we’re putting $24,500 into a Roth 401K. LookingForward, You are wrong. The usual argument is between. A) Putting $24,500 into Trad. 40...
by KlangFool
Sun Dec 09, 2018 11:47 am
Forum: Investing - Theory, News & General
Topic: Another Roth vs. Traditional question
Replies: 12
Views: 490

Re: Another Roth vs. Traditional question

So, the usual argument is that we would either put $24,500 (we’re over 50) into a traditional 401K, or ($24,500 * 0.75, assuming 25% tax) into a Roth 401K. Instead, we’re putting $24,500 into a Roth 401K. LookingForward, You are wrong. The usual argument is between. A) Putting $24,500 into Trad. 40...
by KlangFool
Sun Dec 09, 2018 11:40 am
Forum: Investing - Theory, News & General
Topic: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify
Replies: 12
Views: 676

Re: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify

OP, I used Life strategy Moderate 60/40 in my taxable account until it reaches a few hundred thousands. Then, only I split into 3 funds and 100% stock in the taxable account. At this stage, the dividend/interest income/distribution is only up to the maximum of a few thousand per year. It is not wort...
by KlangFool
Sat Dec 08, 2018 10:10 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Be Prepared For Losses
Replies: 117
Views: 15672

Re: Larry Swedroe: Be Prepared For Losses

When being prepared for losses on the equity side, the 50% loss number is tosses out quite a bit. However, what happens if we see 60 or 70%? Or "just " a 50% loss with pretty high inflation? I've asked that question myself on this forum several times. How many 'buy-and-hold' investors would just si...
by KlangFool
Sat Dec 08, 2018 12:45 pm
Forum: Investing - Theory, News & General
Topic: Debt repayment vs Investing – thoughts on psychology
Replies: 10
Views: 883

Re: Debt repayment vs Investing – thoughts on psychology

Folks, The problem for many folks is that they only think in term of debt repayment vs investing. 1) For many folks, it does not make sense for them to pay 20% to 30% tax in order to save less than 4% mortgage interest payment. Whether they choose to invest their money in the Trad. 401K account or k...
by KlangFool
Sat Dec 08, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: 401k or Roth IRA? Can't max both this year.
Replies: 5
Views: 387

Re: 401k or Roth IRA? Can't max both this year.

Hello All, DW and I won't be able to fully fund both of our 401Ks and Roth IRAs this year, due to a need to get our emergency fund back to where it needs to be and some anticipated home repairs that should cost $30K. As we plan now, we're thinking of fully funding both 401Ks and letting the Roths s...
by KlangFool
Fri Dec 07, 2018 10:49 pm
Forum: Personal Finance (Not Investing)
Topic: When to consider making extra principal payments on mortgage?
Replies: 24
Views: 2144

Re: When to consider making extra principal payments on mortgage?

OP,

Why are you not contributing to your Roth IRAs?

KlangFool
by KlangFool
Fri Dec 07, 2018 9:02 pm
Forum: Investing - Help with Personal Investments
Topic: Stressed/Job loss/Retirement possible?
Replies: 34
Views: 3794

Re: Stressed/Job loss/Retirement possible?

Time2Quit wrote:
Fri Dec 07, 2018 8:56 pm
Klang Fool,

So are you saying that as long as you have 10x withdrawals in safe FI you can invest the rest in equities?
Time2Quit,

You misinterpreted my answer. My answer was OP should have at least 10 years of expense in the fixed income. He/she may want to have more.

KlangFool
by KlangFool
Fri Dec 07, 2018 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: Stressed/Job loss/Retirement possible?
Replies: 34
Views: 3794

Re: Stressed/Job loss/Retirement possible?

OP,

Stop reinvesting the dividend/interest income/distribution of your taxable account now. This will build up your cash reserve quickly.

KlangFool
by KlangFool
Fri Dec 07, 2018 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: Stressed/Job loss/Retirement possible?
Replies: 34
Views: 3794

Re: Stressed/Job loss/Retirement possible?

OP, 1) In general, you should have at least 10 years of expense in fixed income. So, 10 X 100K = 1 million. Your AA should be at least 67/33. How much is your emergency fund in term of annual expense? You may want to adjust your AA to 60/40. 2) I would assume that both you and your husband earned 10...
by KlangFool
Fri Dec 07, 2018 8:05 pm
Forum: Investing - Theory, News & General
Topic: What's Your Personal Inflation Rate?
Replies: 38
Views: 2417

Re: What's Your Personal Inflation Rate?

OP, My household annual expense stays about the same for the last 10 years. So, the answer is 0% for me. KlangFool Real or nominal? Anyhow inflation is not household specific. It's across the economy. Of course one's household expenses can change, however measured. PJW PJW, <<Real or nominal?>> Nom...
by KlangFool
Fri Dec 07, 2018 5:20 pm
Forum: Investing - Theory, News & General
Topic: What's Your Personal Inflation Rate?
Replies: 38
Views: 2417

Re: What's Your Personal Inflation Rate?

I'm amazed and confused at how persistently the term "inflation" is misused to refer to level of spending. Well here's the thing. The academic definition of inflation is irrelevant to the question of whether or not investing in fixed income products like CDs will lead to your savings being "ravaged...
by KlangFool
Fri Dec 07, 2018 5:04 pm
Forum: Investing - Theory, News & General
Topic: What's Your Personal Inflation Rate?
Replies: 38
Views: 2417

Re: What's Your Personal Inflation Rate?

OP,

My household annual expense stays about the same for the last 10 years. So, the answer is 0% for me.

KlangFool
by KlangFool
Fri Dec 07, 2018 4:48 pm
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

For people in the group (A), it usually took a recession and almost total financial disaster before they will change and listen. This is for the lucky few that did survive from the disaster. For others, there was no recovery. You've been in the U.S. far too long to think that a large percentage of ...
by KlangFool
Fri Dec 07, 2018 9:35 am
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

Education is not a panacea to the problem, but aside from forcing people to do what they do not want to do (which we would consider theft in any other context), there isn't one. willthrill81, There is one. People, in general, will do nothing for retirement contribution. If it takes an effort to opt...
by KlangFool
Fri Dec 07, 2018 9:28 am
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

I just do not consider a "success" rate of 15% or less worthwhile - I got the feeling that the same 15% or less would have saved if we educated or not so the 'success' is likely much lower than the 15% even insinuates. "It reminds me of "The Richest Man in Babylon." When Arkad told everyone how he ...
by KlangFool
Fri Dec 07, 2018 9:25 am
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

https://www.shrm.org/resourcesandtools/ ... igher.aspx
<<Push 401(k) Default Savings Rates Higher, Researchers and Plan Sponsors Agree>>

Folks,

Some article on this subject.

KlangFool
by KlangFool
Fri Dec 07, 2018 9:19 am
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

I just do not consider a "success" rate of 15% or less worthwhile - I got the feeling that the same 15% or less would have saved if we educated or not so the 'success' is likely much lower than the 15% even insinuates. "It reminds me of "The Richest Man in Babylon." When Arkad told everyone how he ...
by KlangFool
Fri Dec 07, 2018 9:18 am
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

Education is not a panacea to the problem, but aside from forcing people to do what they do not want to do (which we would consider theft in any other context), there isn't one. willthrill81, There is one. People, in general, will do nothing for retirement contribution. If it takes an effort to opt...
by KlangFool
Fri Dec 07, 2018 9:13 am
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

Klang's people can't spend what they don't have. This is why it's important to have a 5% mandatory retirement plan contribution for all workers, from minimum wage on up. Combine this with an employer match of the same amount and you have a decent START at fixing the retirement problem. My own emplo...
by KlangFool
Thu Dec 06, 2018 11:43 pm
Forum: Investing - Theory, News & General
Topic: Where did you think we'd be today, ten years ago?
Replies: 38
Views: 2827

Re: Where did you think we'd be today, ten years ago?

Folks, 10 years ago, my employer laid off 50% of its employee at my location. Under my director, it was 80% laid off. I was too busy trying to do my job and keep my job to worry about the stock market. The whole building was emptying out. Over the next few months, more people were let go. Nobody kne...
by KlangFool
Thu Dec 06, 2018 8:36 pm
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

Folks,

As per my observation, once a person overspends on these 3 big items: house, car, and college education, it is too late. Most people's income does not go up high enough to recover from those mistakes.

KlangFool
by KlangFool
Thu Dec 06, 2018 8:34 pm
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

Anyone earning more than a living wage can save. The question then becomes is whether they want to. Many are indeed making the choice you refer to: spending now and hoping that they will save later. But as I said, most of these people have no clue how much they will need to save in order to produce...
by KlangFool
Thu Dec 06, 2018 8:21 pm
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

Knowing and doing are totally different. People know that they should save money. But, they are not willing to compromise on their current lifestyle in order to save. The typical person does not know that they need a $1 million portfolio to provide $40k of income for 30 years (more or less). They a...
by KlangFool
Thu Dec 06, 2018 8:10 pm
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

Knowing and doing are totally different. People know that they should save money. But, they are not willing to compromise on their current lifestyle in order to save. The typical person does not know that they need a $1 million portfolio to provide $40k of income for 30 years (more or less). They a...
by KlangFool
Thu Dec 06, 2018 7:50 pm
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

Knowing and doing are totally different. People know that they should save money. But, they are not willing to compromise on their current lifestyle in order to save. The typical person does not know that they need a $1 million portfolio to provide $40k of income for 30 years (more or less). They a...
by KlangFool
Thu Dec 06, 2018 7:34 pm
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11756

Re: Why Retirement Is Broken And Needs To Be Reinvented

nisiprius wrote:
Thu Dec 06, 2018 5:55 pm
Lack of education didn't create the problem, education isn't going to fix it.
+1,000.

Knowing and doing are totally different. People know that they should save money. But, they are not willing to compromise on their current lifestyle in order to save.

KlangFool
by KlangFool
Thu Dec 06, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Should I sell?? 1,118.75% gain!!
Replies: 26
Views: 3738

Re: Should I sell?? 1,118.75% gain!!

Hey everyone, a few years back I dabbled in penny stocks and foolishly bought some terrible stocks that. 7 years later I only buy index funds but in my old scottrade account I had $8 worth of stock that I purchased for $133. I never sold them because it wasn’t worth selling over $8 and plus the com...
by KlangFool
Thu Dec 06, 2018 8:54 am
Forum: Investing - Help with Personal Investments
Topic: In a Bear Market, What Are Some Best Practices
Replies: 31
Views: 3453

Re: In a Bear Market, What Are Some Best Practices

OP, 1) Do you plan for unemployment? If yes, for how long? 2) Do you set a limit on your rebalancing? Aka, I will rebalance until my fixed income is equal to X years of expense. Then, I will not rebalance. 3) Normally, bear market and recession come together. So, your plan should be for you to surv...
by KlangFool
Wed Dec 05, 2018 11:17 pm
Forum: Investing - Help with Personal Investments
Topic: In a Bear Market, What Are Some Best Practices
Replies: 31
Views: 3453

Re: In a Bear Market, What Are Some Best Practices

2) Do you set a limit on your rebalancing? Aka, I will rebalance until my fixed income is equal to X years of expense. Then, I will not rebalance. Hi KlangFool, Could you tell me your thoughts on this idea? As I understand it, the original 60/40 came form the idea of being 10 years of expenses base...
by KlangFool
Wed Dec 05, 2018 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: To Invest or Not to Invest
Replies: 31
Views: 2285

Re: To Invest or Not to Invest

OP,

Why there are only 3 choices? House, cash, or stock? How about the bond?

KlangFool
by KlangFool
Wed Dec 05, 2018 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: To Invest or Not to Invest
Replies: 31
Views: 2285

Re: To Invest or Not to Invest

OP,

What is the price of the house? Is it safe to put that much eggs (money) into a single house basket?

KlangFool
by KlangFool
Wed Dec 05, 2018 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: In a Bear Market, What Are Some Best Practices
Replies: 31
Views: 3453

Re: In a Bear Market, What Are Some Best Practices

OP, 1) Do you plan for unemployment? If yes, for how long? 2) Do you set a limit on your rebalancing? Aka, I will rebalance until my fixed income is equal to X years of expense. Then, I will not rebalance. 3) Normally, bear market and recession come together. So, your plan should be for you to survi...
by KlangFool
Wed Dec 05, 2018 11:08 am
Forum: Investing - Help with Personal Investments
Topic: Should we abandon the Roth IRA (for now)?
Replies: 19
Views: 1938

Re: Should we abandon the Roth IRA (for now)?

OP,

In addition to all that had been posted, you could use Roth IRA to store your emergency fund.

https://www.bogleheads.org/wiki/Roth_IR ... gency_fund

KlangFool
by KlangFool
Tue Dec 04, 2018 10:54 pm
Forum: Investing - Help with Personal Investments
Topic: Changing asset allocation when saving for big expenses?
Replies: 10
Views: 971

Re: Changing asset allocation when saving for big expenses?

My mortgage rate is 3.75% (effective rate of 3.13% after itemization), and I'm in the top federal and state tax brackets. keepItSimple, 1) Why do you choose to pay off a low-interest rate mortgage so that you can take a high-interest student loan? 2) You are betting that the market will return on t...
by KlangFool
Tue Dec 04, 2018 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Life Advice (Financial + Health)
Replies: 17
Views: 1555

Re: Life Advice (Financial + Health)

OP, I would advise you to print out the following 2 quotations and posted them in your office/cubicle. “A failure to plan on your part should not constitute an emergency on my part.” God grant me the serenity to accept the things I cannot change; courage to change the things I can; and wisdom to kno...
by KlangFool
Tue Dec 04, 2018 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Will we make it saving only in employer plans?
Replies: 58
Views: 4088

Re: Will we make it saving only in employer plans?

We gross about $255K/year, plus about $20K in stock grants Our 401K balance is around $250K at the moment. I'm 37, wife is 34, kids are 2 & 4. Again corp_sharecropper, Your gross income is about 275K. Your annual saving is about 50K. Your annual expense is about 150K. Your 401K balance is 250K. If ...
by KlangFool
Tue Dec 04, 2018 12:08 am
Forum: Personal Finance (Not Investing)
Topic: Wife being sued after wreck
Replies: 21
Views: 4458

Re: Wife being sued after wreck

ugaDAWGS09 wrote:
Mon Dec 03, 2018 11:55 pm
KlangFool wrote:
Mon Dec 03, 2018 11:48 pm
OP,

Do you carry an umbrella insurance? It is for an occasion like this.

KlangFool
I'm not familiar with an umbrella policy or how to purchase one.
ugaDAWGS09,

https://www.bogleheads.org/wiki/Umbrella_insurance

KlangFool
by KlangFool
Mon Dec 03, 2018 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Wife being sued after wreck
Replies: 21
Views: 4458

Re: Wife being sued after wreck

OP,

Do you carry an umbrella insurance? It is for an occasion like this.

KlangFool
by KlangFool
Mon Dec 03, 2018 11:46 pm
Forum: Investing - Help with Personal Investments
Topic: 58 y/o nearing retirement - looking at economic/stock market indicators
Replies: 32
Views: 4399

Re: 58 y/o nearing retirement - looking at economic/stock market indicators

Stock market is high. CAPE ratios high. Unemployment is at 10 year low. Housing near a bubble. Recession on the horizon in a year or so. Most experts predicting much lower stock market returns over the next ten years. Seems like a lot of risk and very little reward to be in the stockmarket over the...
by KlangFool
Mon Dec 03, 2018 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: Home Purchase Price vs. Gross Income
Replies: 59
Views: 4267

Re: Home Purchase Price vs. Gross Income

Reading threads with conversations about setting yourself/family up for financial success even through hard times, I’m curious what other Boglegeads ratio of home purchase price is vs. gross income and whether you live in a LCOL, MCOL or HCOL. For my family, it was about 1.93x at time of purchase a...
by KlangFool
Mon Dec 03, 2018 10:08 pm
Forum: Investing - Help with Personal Investments
Topic: Will we make it saving only in employer plans?
Replies: 58
Views: 4088

Re: Will we make it saving only in employer plans?

OP,

Yes, if you are fully-employed continuously over the next 10 years.

KlangFool
by KlangFool
Mon Dec 03, 2018 8:10 pm
Forum: Investing - Theory, News & General
Topic: Comparison of tax deferred vs.taxable investments
Replies: 15
Views: 1090

Re: Comparison of tax deferred vs.taxable investments

My mistake. I will correct it. Thank you. Great. I wasn't sure I wasn't missing something myself. Given the new calculations, I think you've found that, to the best of your abilities to forecast given the uncertainties involved, investing $18k after tax may well be fairly equivalent to $20k pre-tax...