Search found 131 matches

by majiaknight
Fri Jul 31, 2020 3:48 pm
Forum: Personal Investments
Topic: Where to put my down payment?
Replies: 8
Views: 631

Re: Where to put my down payment?

When I'm looking at $160K safe investment for 9 months, the first thing pops in my mind is to get checking/saving accounts opening bonus as most of them could be closed w/o penalty after you keep some money to avoid monthly charges for 6 months. https://www.doctorofcredit.com/best-bank-account-bonus...
by majiaknight
Thu Jul 30, 2020 12:55 am
Forum: Personal Finance (Not Investing)
Topic: Setting up a Universal Basic Income(UBI)
Replies: 33
Views: 2608

Re: Setting up a Universal Basic Income(UBI)

"Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime." Once the kid is born, I suggest you 'superfund' his/her 529 as a gift meaning you could have one-time contribution of 5*$15,000=$75,000. In some states 529 plans can now be used for qualified K-12 tu...
by majiaknight
Wed Jul 29, 2020 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: Are we crazy to buy a VHCOL house now?
Replies: 32
Views: 2969

Re: Are we crazy to buy a VHCOL house now?

Background: Both 44, live in Silicon Valley. He works for big tech, with total comp ~$560k, half in cash, half in liquid stock. ... At the moment we live in an apartment that is near his old office, but small, expensive (over $5k/month), and noisy. ... We have around $3M NW at the moment: primarily...
by majiaknight
Tue Jul 21, 2020 7:24 pm
Forum: Personal Investments
Topic: Please check my 529 strategy
Replies: 16
Views: 1532

Re: Please check my 529 strategy

Does $80k invested now, split 50/50 between a 529 and taxable account seem reasonable? Would you go with a different split? Congratulations! I live in CA and split monthly contribution to CA ScholarShare 529 (Index U.S. Equity Portfolio (TIAA-CREF Equity Index Fund (TIEIX): ER 0.06%) and UTMA accou...
by majiaknight
Fri Jul 17, 2020 6:09 pm
Forum: Personal Investments
Topic: Which 529 plan did you choose and why? [Help select a 529 plan]
Replies: 28
Views: 848

Re: Which 529 plan did you choose and why? [Help select a 529 plan]

I live in CA w/o state incentives and have chosen CA Scholar Share 529 because I only wanted to invest single-fund low-cost stock index in 529 and it offered the lowest ER among several popular plans by other states I investigated several years ago. Today I just checked the fund ER ag which IMO was ...
by majiaknight
Mon Jul 13, 2020 6:20 pm
Forum: Personal Investments
Topic: Too much in savings?
Replies: 83
Views: 9571

Re: Too much in savings?

Background (my wife and I combined): We have 1.1m in Ally savings account. Was 2.1% APR but given recent fed actions is now 1.1%. I fully understand the financial side of investing this instead of having in savings (not even keeping up w inflation), but we enjoy not having to worry about volatility...
by majiaknight
Wed Jul 01, 2020 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Job offer in Bay area - things to consider?
Replies: 68
Views: 6603

Re: Job offer in Bay area - things to consider?

Kids: 2, (7th grader and 2nd grader) Wife: works in IT, currently works for university and makes about 110K New job location: South SF, close to airport Potential towns: Freemont, Berkeley, Oakland, Dublin Family ties in NJ/NY: No My family relocated to the south bay area 5 years ago for jobs. For ...
by majiaknight
Wed Jul 01, 2020 12:49 am
Forum: Personal Investments
Topic: Significantly Decrease 401k contributions?
Replies: 17
Views: 1861

Re: Significantly Decrease 401k contributions?

I think someone may suggest penalty free withdraw from Roth IRA. As we are talking about ~$90K in 3-4 years, you didn't lose much by not maxing pre-tax 401K. No need to complicate things by touching Roth IRA. Your family's current combined income is not high so it could be possible that contributin...
by majiaknight
Tue Jun 30, 2020 6:35 pm
Forum: Personal Investments
Topic: Significantly Decrease 401k contributions?
Replies: 17
Views: 1861

Re: Significantly Decrease 401k contributions?

Let’s make the following assumptions: 1) $184k in tax-advantaged accounts with 95% equities (this is actually a reality) 2) Average annual total real return of 5% on said tax-advantaged portfolio over next 30 years 3) We both continue to max out Roth IRAs until we are roughly 40 years old ($12k per...
by majiaknight
Fri Jun 19, 2020 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Too Much Retirement/Not Enough for House?
Replies: 127
Views: 13300

Re: Too Much Retirement/Not Enough for House?

How stable is your job? Do you expect salary to increase a lot in the near future? I won't buy the $800K house by looking at your current income vs. spending. I'm not conservative but trying to be more realistic. You probably significantly underestimate the 3 kids' cost when they grow up. IMHO you c...
by majiaknight
Sun Jun 07, 2020 1:59 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford 600k house?
Replies: 95
Views: 8885

Re: Can we afford 600k house?

Even you can afford it I'd recommend postponing the purchase until you rent in the new state for at least half year so you will have a clear picture about: 1) how long you may want to stay with the new company? 2) optimal house location for commute traffic considering both your and your wife's jobs;...
by majiaknight
Mon May 25, 2020 3:40 am
Forum: Personal Finance (Not Investing)
Topic: Approaching 40, worried about financial future
Replies: 121
Views: 12628

Re: Approaching 40, worried about financial future

I earn about $83,000. My retirement accounts are about $111,000. I am for 67/33 stock and bond approach. I currently save about 8.7% of gross to tax advantaged accounts. I know this is too low. I worry that reading about people who are about to retire with $1m to $2m - that we'd never get there! An...
by majiaknight
Mon May 25, 2020 3:05 am
Forum: Personal Finance (Not Investing)
Topic: The axe falls and I am prepared. What's next?
Replies: 370
Views: 31413

Re: The axe falls and I am prepared. What's next?

Thanks KF for sharing your story and thoughts as always. After seeing all the replies, IMHO you've put very thorough thoughts on almost everything and you also have a strong opinion on the next potential job w/ no compromise which was well understood. As DW and I both work for big tech in the Bay ar...
by majiaknight
Sat May 09, 2020 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: 30yr Jumbo Refi-- rates!
Replies: 6
Views: 1255

Re: 30yr Jumbo Refi-- rates!

I closed my refi in March w/ BOA which was a very good experience. You may check the rate below and make appt online:
https://www.bankofamerica.com/mortgage/#/refinance
by majiaknight
Sat Feb 29, 2020 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: Can my wife and I afford a $600K + house?
Replies: 57
Views: 5470

Re: Can my wife and I afford a $600K + house?

if you don't mind me asking, how did you afford the $830K house with less savings than us? assuming 20% down that's ~$170K downpayment. obviously feel free not to answer if the question is too personal. By 'savings' I really mean the total assets. Our combined income could just cover the PITI w/ 20...
by majiaknight
Sat Feb 29, 2020 3:15 am
Forum: Personal Finance (Not Investing)
Topic: Can my wife and I afford a $600K + house?
Replies: 57
Views: 5470

Re: Can my wife and I afford a $600K + house?

to those that say i can afford a $649K house, please explain how. liquid cash between us: $164K - 20% downpayment: $130K closing costs: ~$10K = $24K remaining is this not cutting it really close? this obviously doesn't take into account that we're obviously both getting paid as the process continue...
by majiaknight
Fri Feb 14, 2020 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Refinancing
Replies: 9
Views: 653

Re: Refinancing

I'd suggest you keep trying to quote. The rate has been improving recently. On Monday I just locked my refinance conforming loan ($560K) of 15Y fixed at 2.875% from BOA. It's a no cost refi w/ no points required as all the credits I got (including boa platinum honors discount) would cover almost all...
by majiaknight
Tue Nov 12, 2019 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Homebuying in Los Angeles - Advice Needed
Replies: 77
Views: 8256

Re: Homebuying in Los Angeles - Advice Needed

If your job and income are relatively stable, you should buy the house now as you already have 20% downpay and no need to wait until 2021. Below are my thoughts: 1) Assuming there will be a RE market crash around 2021 with worsen economic conditions, I'd think most people would either wait longer to...
by majiaknight
Fri Oct 18, 2019 12:24 am
Forum: Personal Investments
Topic: I-bonds with kids
Replies: 18
Views: 1828

Re: I-bonds with kids

Will this purchase be counted against annual gift limit to your children? Yes- counted against annual gift limit of $15,000 per child per parent. If cash flow were not a limiter, my wife and I could each gift $10,000 in I-bonds and $5,000 in EE bonds to each child each year. This has to be further ...
by majiaknight
Fri Oct 18, 2019 12:05 am
Forum: Personal Investments
Topic: I-bonds with kids
Replies: 18
Views: 1828

Re: I-bonds with kids

...If I need the cash, I can redeem the bonds. If I never need them, I can let my kids redeem them in 5-30 years, likely at a lower income tax rate (mine is 37% federal). Am I missing something with this plan? Do you mean the "lower income tax rate" of your kids? If yes, then you might be wrong. Si...
by majiaknight
Mon Sep 30, 2019 3:41 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation Approaching Age 40s
Replies: 22
Views: 3194

Re: Asset Allocation Approaching Age 40s

Late 30s here and currently AA is 85/15 but plan to shift to 80/20 next year. IIUC the age rule is meant to be used as a very rough indicator for risk tolerance level for average investors. For most Bogleheads, you may probably just use the following portfoliovisualizer to backtest the AA to find yo...
by majiaknight
Wed Sep 18, 2019 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 508
Views: 34733

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Thank you. We live here largely due to family. My sister and her family are our next-door neighbors. My daughter gets to see her cousins daily. My mother, who is getting older and is not in the best of health, lives 5 minutes away and I can check on her often and she gets to see her grandkids all t...
by majiaknight
Thu Jul 25, 2019 12:57 pm
Forum: Personal Investments
Topic: Here for my 40yr Checkup!
Replies: 11
Views: 1926

Re: Here for my 40yr Checkup!

I can indeed make after tax contributions and also In-service rollovers. The problem is that the in service rollovers come from both before and after tax so I cannot specify just after tax. That’s too bad. You should keep pushing your company's benefits department to request changes to the 401K pro...
by majiaknight
Thu Jul 25, 2019 12:37 pm
Forum: Personal Investments
Topic: Here for my 40yr Checkup!
Replies: 11
Views: 1926

Re: Here for my 40yr Checkup!

Overall looks pretty good. One minor change I'd consider is to stop buying BDOIX (ER 0.15%) in Her 401k and gradually convert it to SVSPX. And purchase FZILX (Fidelity® ZERO International Index Fund) in Fidelity Brokerage for the Intl. Index.
by majiaknight
Wed Jul 24, 2019 7:17 pm
Forum: Personal Investments
Topic: A little discouraged with earnings, is it really this slow?
Replies: 96
Views: 16437

Re: A little discouraged with earnings, is it really this slow?

I think you're doing great. Starting from your current $135K to add $2K/M (or $24K/Y) w/ est. 6% annual return and compounding, it only takes 9 years to reach half million at 36 year old. If you are lucky enough to find someone w/ similar financial condition to get married, your future family is ver...
by majiaknight
Tue Jul 23, 2019 7:32 pm
Forum: Personal Investments
Topic: Can we afford $600k home?
Replies: 98
Views: 7609

Re: Can we afford $600k home?

You didn't mention the monthly expenses and savings, and the projected PITI vs. current rent which may help us provide more accurate advice. The two kids could become very expensive.
by majiaknight
Mon Jul 22, 2019 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house - bay area
Replies: 102
Views: 7273

Re: Buying a house - bay area

Since both of your kids are <3, you may consider to delay the purchase for another 1-2 years as why paying high property tax >$30K/y w/o using the good school district? If you buy now, I'd suggest consider 30Y fixed. There are already too much stress in raising kids and working in a very competitive...
by majiaknight
Mon Jul 22, 2019 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Off Mortgage Question
Replies: 77
Views: 7450

Re: Paying Off Mortgage Question

Ask yourself in another way: are you willing to take a loan (3.65% APR, potentially no tax benefit if using standard deduction) to invest in stock index which historically could give you a 5-6% return over 15 years? Are you willing to pay 20+% taxes in order to save 3.65% mortgage interest? This is...
by majiaknight
Mon Jul 22, 2019 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Off Mortgage Question
Replies: 77
Views: 7450

Re: Paying Off Mortgage Question

Ask yourself in another way: are you willing to take a loan (3.65% APR, potentially no tax benefit if using standard deduction) to invest in stock index which historically could give you a 5-6% return over 15 years?
by majiaknight
Sat Jul 20, 2019 1:58 pm
Forum: Personal Consumer Issues
Topic: Trip to Honolulu
Replies: 49
Views: 3753

Re: Trip to Honolulu

1. You have roughly 1 week. so a trip to the outer islands would take too much valuable time. 2. Thus, Oahu. Rent a car. 3. Drive around the island. 4. Spend time at Kailua Beach on the Windward Side. It is not as touristy and one of the most pretty beaches around. 5. If you can devote a very long ...
by majiaknight
Fri Jul 19, 2019 5:42 pm
Forum: Personal Consumer Issues
Topic: Trip to Honolulu
Replies: 49
Views: 3753

Re: Trip to Honolulu

My family have been there twice and will have one more next month. There are a lot of great attractions. Depending on individual interests, you may consider to buy a Go Oahu card from Costco or just take the recommended itinerary as a reference to make your own. Have fun! https://www.costco.com/4-Da...
by majiaknight
Fri Jul 19, 2019 12:24 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 1538
Views: 203524

Re: Post your Financial Milestone Announcements Here

Also, at this time I have 2x yearly expenses, mainly in iBonds. I have around 64k mortgage left on a 525K house. However, what this means is that other than the iBonds, and Roth (~70K) I don't have much (only 10K at this time) in my taxable. Would that worry you? I'm 45, DW 43, one child 10 yrs (90...
by majiaknight
Thu Jul 18, 2019 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Risks of buying a Bay Area home with 4-year time horizon?
Replies: 26
Views: 2620

Re: Risks of buying a Bay Area home with 4-year time horizon?

I live in N San Jose. Bought my current house in 2014 before my kid was born. Never thought my house value could increase ~50% in 5 years. With your current savings and incomes, you can afford a $1M house. If this is the house your wife really wants to live in after the wedding, then just do it. :be...
by majiaknight
Wed Jul 17, 2019 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: 1 million in liquid assets or paid off mortgage by 40?
Replies: 72
Views: 8828

Re: 1 million in liquid assets or paid off mortgage by 40?

My answer is A. I hit the milestone of $1 million in investable assets ignoring home equity early this year but a large portion of them are in tax sheltered accounts. A paid off mortgage (or debt free) by 40 is a very attractive milestone I'd like to target though I only have <4 years left w/ ~$560K...
by majiaknight
Tue Jul 09, 2019 1:04 pm
Forum: Personal Investments
Topic: Portfolio Review for 35 year old; Early Retirement at age 55
Replies: 33
Views: 5623

Re: Portfolio Review for 35 year old; Early Retirement at age 55

Questions: 1. I like to keep things simple and hence use of TDF in my tax advantage accounts wherever possible provided ER is not too high. I can theoretically move to 3 fund portfolio if there is a significance advantage. Any suggestions if that would benefit? I'd suggest 3-fund portfolio. Will yo...
by majiaknight
Wed Apr 17, 2019 11:10 pm
Forum: Personal Finance (Not Investing)
Topic: Can I semi-retire now?
Replies: 138
Views: 14396

Re: Can I semi-retire now?

What if chipperd first decided to reduce hours and take Fridays off, and then discovered-surprise!-this only cost $80 after taxes and increased financial aid. 1) Would chipperd be ethically obliged to go back to working Fridays? 2) If not, is there really that big of a difference. Either way, from ...
by majiaknight
Wed Apr 17, 2019 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Can I semi-retire now?
Replies: 138
Views: 14396

Re: Can I semi-retire now?

But if you’re judging it, where’s the line? Do you feel similarly about an M.D. who chooses to work in an academic setting for less pay than she or he would earn by seeing patients? Talented writers working as English teachers when they could instead be making a lot more in corporate PR? I don't se...
by majiaknight
Mon Apr 15, 2019 4:28 pm
Forum: Personal Investments
Topic: Buy a house or wait in bay area
Replies: 48
Views: 10593

Re: Buy a house or wait in bay area

we will max tax advantaged accounts. But there will be few years when future child will be in daycare(2 kids) with zero savings beyond 401k. Any thoughts? Since you mentioned day care cost, what about K-12 edu for both kids? I'd guess ~$1.3M budget won't buy you a townhouse in decent school distric...
by majiaknight
Mon Apr 15, 2019 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Home affordability - Can I afford it?
Replies: 22
Views: 2682

Re: Home affordability - Can I afford it?

I think it's doable but wait for another year or two would be better. Firstly, I don't think the bigger new house is something you really need as your two kids are still at pre-school ages. Unless the move will save you x2 private school tuition, then this will totally change the calculation. Second...
by majiaknight
Fri Apr 12, 2019 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Can I semi-retire now?
Replies: 138
Views: 14396

Re: Can I semi-retire now?

I think the big uncertainties are kid edu cost and health insurance. The public schools in the Bay area are not that good unless you live in the top 3-4 school districts. We also have friends living in good school districts in South Bay but sending their kids to private school for some reasons. Give...
by majiaknight
Thu Apr 11, 2019 11:07 pm
Forum: Personal Finance (Not Investing)
Topic: One-more-year - am I done or not?
Replies: 50
Views: 8040

Re: One-more-year - am I done or not?

With a ~$4M portfolio (adding your 2nd paid off house) and a working spouse w/o mortgage, I don't think you will have any financial issues after quitting your job. However, my concern is whether this is really the right way to improve your current situation. Is it the typical mid-life crisis at your...
by majiaknight
Thu Apr 11, 2019 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house next year. Wife wants a big house. Thoughts?
Replies: 104
Views: 10567

Re: Buying a house next year. Wife wants a big house. Thoughts?

The math shows that the bigger house (e.g. $500K vs. $400K) costs you roughly $674/m more plus extra ~$100/m? on insurance and maintenance. If the bigger house is your wife's dream house and she plans to stay in for 10-20 years, I'd say it's an easy decision and your income could afford it. Diff in ...
by majiaknight
Tue Apr 09, 2019 7:01 pm
Forum: Personal Investments
Topic: Pay off mortgage better or worse than investing in bonds?
Replies: 30
Views: 4138

Re: Pay off mortgage better or worse than investing in bonds?

livesoft wrote:
Mon Apr 08, 2019 8:02 am
In other words, you don't have to cash out your investment until it succeeds.
+1 very good point.
by majiaknight
Mon Apr 08, 2019 10:25 pm
Forum: Personal Investments
Topic: best 529 plan for california residents
Replies: 6
Views: 1774

Re: best 529 plan for california residents

If you simply want to manage a Boglehead 2-fund index portfolio, check the CA 529 ScholarShare's index funds which had the lowest ER compared w/ others per last check probably 2 years ago.

viewtopic.php?f=1&t=222646
by majiaknight
Mon Apr 08, 2019 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Anxiety about car/house purchase
Replies: 28
Views: 3218

Re: Anxiety about car/house purchase

If the anxiety over even this well researched purchase caused me to loss sleep last night, how am I ever going to part with the money I have set aside for a house down payment? Other than this purchase, my largest expense has been my wife's wedding ring. Does spending money get easier after you've ...
by majiaknight
Mon Apr 08, 2019 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: How Much Term Life Insurance?
Replies: 56
Views: 4395

Re: How Much Term Life Insurance?

Current life insurance is $200K for me and $100K for wife through work. I'd suggest you not consider the life insurance through work. The reason is simple as insurance should provide you the safety net in the worst case scenario; however, the insurance through work typically assumes you have to be ...
by majiaknight
Fri Apr 05, 2019 7:15 pm
Forum: Personal Investments
Topic: Multiple Goals and Bond Allocation to Ret Account
Replies: 14
Views: 996

Re: Multiple Goals and Bond Allocation to Ret Account

It depends on when you plan to buy the house: whether it is within 2 years or 5 years? For downpayment savings, I'd consider safety first so mainly high yield online savings, 1-3 year CDs, Muni and iBond.

https://www.mymoneyblog.com/best-intere ... -2019.html
by majiaknight
Wed Apr 03, 2019 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Household budget, savings, retirement, and Home Equity question
Replies: 23
Views: 2586

Re: Household budget, savings, retirement, and Home Equity question

I agree w/ the other replies that you should first refi to a 30y fixed (or 7/1 ARM if you plan to move within 7 years). 15Y fixed mortgage is generally recommended but you can't afford it now. Once you get a big pay raise or your wife goes back to work you could choose to accelerate the payment to p...
by majiaknight
Tue Apr 02, 2019 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Cross Country Move
Replies: 10
Views: 1311

Re: Cross Country Move

Several years ago we moved from a small town in VA near Charlotte to SoCA. After we compared quotes from several moving companies for 1B apt furniture, we finally decided to sell everything through Craig-list as the shipping cost could almost be equal to the price to buy them new from IKEA in SoCA (...
by majiaknight
Sun Mar 31, 2019 2:42 am
Forum: Investing - Theory, News & General
Topic: Series I Savings Bonds Buying Opportunity
Replies: 52
Views: 10889

Re: Series I Savings Bonds Buying Opportunity

For those of you that advocate buying i-bonds on the last business day of the month, I am curious where everyone parks their money while they are waiting? Cosmo Popular online savings like Ally pays 2.2% or you could find better deal at 2.45% below: https://www.mymoneyblog.com/best-interest-rates-c...