Search found 114 matches

by majiaknight
Tue Nov 12, 2019 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Homebuying in Los Angeles - Advice Needed
Replies: 63
Views: 4919

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: 1622

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: 1622

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: 2674

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: 30088

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: 1865

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: 1865

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: 66
Views: 9882

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: 7164

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: 6597

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: 7010

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: 7010

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: 3404

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: 3404

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: 1027
Views: 139726

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: 2428

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: 61
Views: 6651

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: 5348

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: 13941

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: 13941

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: 10331

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: 2570

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: 13941

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: 7903

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: 9748

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: 24
Views: 3232

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: 1476

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: 3154

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: 3798

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: 932

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: 2522

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: 1239

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: 10323

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...
by majiaknight
Thu Mar 28, 2019 6:35 pm
Forum: Personal Investments
Topic: $480K, no job, special needs kids, what to do?
Replies: 52
Views: 6010

Re: $480K, no job, special needs kids, what to do?

Just my 2 cents: Given your current high burn rate of $8K/m and $480K assets w/ low return, it will only last ~5 years to deplete ( What's your plan after 5y? ). I won't recommend you to invest even in the relatively low risk stock index mutual funds / ETFs (including vanguard target date fund as on...
by majiaknight
Thu Mar 28, 2019 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Is our household budget crazy?
Replies: 141
Views: 13201

Re: Is our household budget crazy?

Compared to my family's budget in VHCOL areas I'd say you may need to adjust your expectation. Grocery/food/shopping are a little bit high but IMO still in a reasonable range. I guess you didn't add the house property tax and home insurance into your home maintenance bucket which cost >$1K/m in my c...
by majiaknight
Tue Mar 26, 2019 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Paid off mortgage!
Replies: 88
Views: 7967

Re: Paid off mortgage!

Congrats!
Hope I could hit this big milestone by 2022~
by majiaknight
Mon Mar 25, 2019 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Will buying a house jeopardize financial security?
Replies: 57
Views: 3984

Re: Will buying a house jeopardize financial security?

You didn't mention the job security of you and spouse. If you're concerned about financial security, then you might aim to have one single income to cover all monthly expenses including PITI. You didn't indicate why you want to switch to SFH. In the CA Bay Area where I live, $1.5M SFH doesn't buy yo...
by majiaknight
Mon Mar 25, 2019 3:17 pm
Forum: Investing - Theory, News & General
Topic: Series I Savings Bonds Buying Opportunity
Replies: 52
Views: 10323

Re: Series I Savings Bonds Buying Opportunity

Just for my curiosity: Why to buy iBonds at 2.83% when you can get 5, 6, or 7 year CD's at higher than 3.10%? Who generally buys iBonds? For what purpose and for how long? Would it be people who have maxed 401k, HSA, Roth IRA, and have more than enough in their taxable accounts? Aren't there better...
by majiaknight
Fri Mar 22, 2019 6:04 pm
Forum: Investing - Theory, News & General
Topic: Series I Savings Bonds Buying Opportunity
Replies: 52
Views: 10323

Re: Series I Savings Bonds Buying Opportunity

Cosmo wrote:
Thu Mar 21, 2019 6:09 pm
For me I Bonds are a buying opportunity every year come January 1.
+1 January 1 31 is always better. :happy
by majiaknight
Fri Mar 22, 2019 5:35 pm
Forum: Personal Investments
Topic: Big Picture - are we doing the right things?
Replies: 38
Views: 4986

Re: Big Picture - are we doing the right things?

If anything, $1M of umbrella is low. If you are already maxing the auto policies in order to get umbrella, why not carry 2-3M? Easy to have a judgement that is >1.5M these days. I don't understand this suggestion. OP only has <$1M ($690K investment + $55K house equity) financial assets which need p...
by majiaknight
Fri Mar 22, 2019 4:51 pm
Forum: Personal Investments
Topic: Big Picture - are we doing the right things?
Replies: 38
Views: 4986

Re: Big Picture - are we doing the right things?

I am curious why so many are suggesting that I may be over insured on life insurance. Do you feel that $1 million life insurance on my income of $149k is sufficient? It's less than 7x income. I always had the idea that I wanted my family to be "set" if something should happen to me. $1 million woul...
by majiaknight
Thu Mar 21, 2019 2:14 pm
Forum: Personal Investments
Topic: Big Picture - are we doing the right things?
Replies: 38
Views: 4986

Re: Big Picture - are we doing the right things?

-Umbrella $1 million policy -Life: Me: $1mm 20 year term, $1mm 30 year term; Wife: $1mm 20 year term -Long-term disability: Me: to age 65, own occupation that would pay approximately 60% of my salary 2. Are we over-insured? I feel like we pay a lot of money for insurance, but it all seems necessary...
by majiaknight
Thu Mar 14, 2019 3:04 am
Forum: Personal Finance (Not Investing)
Topic: [2018 tax return - How does it compare to previous years?]
Replies: 441
Views: 35138

Re: [2018 tax return - How does it compare to previous years?]

Living in CA I thought my family (MFJ+1Kid+Mortgage+Itemized Deduction) might be negatively affected but it turns out we've paid slightly less (<$200) total Fed tax w/ 10.6% increase in AGI for 2018. Our Fed effective tax rate drops 2.15% to 19.59% from 21.74% last year. CA effective tax rate slight...
by majiaknight
Tue Mar 12, 2019 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Can or should we afford this house
Replies: 62
Views: 4643

Re: Can or should we afford this house

Interest rates are completely unpredictable, so you have absolutely no idea whether the risk is small or not. If you really believe what you are saying about the unpredictable mortgage rate, you should NOT believe 5/5 ARM is always better than 5/1 ARM and IMO it's not worth to pay the extra .25% no...
by majiaknight
Tue Mar 12, 2019 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Can or should we afford this house
Replies: 62
Views: 4643

Re: Can or should we afford this house

Interest rates are completely unpredictable, so you have absolutely no idea whether the risk is small or not. If you really believe what you are saying about the unpredictable mortgage rate, you should NOT believe 5/5 ARM is always better than 5/1 ARM and IMO it's not worth to pay the extra .25% now.
by majiaknight
Tue Mar 12, 2019 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Can or should we afford this house
Replies: 62
Views: 4643

Re: Can or should we afford this house

However, as someone also pointed out that you might consider to get at least 20% down payment This may not actually be a significant factor. The OP would be looking at a jumbo mortgage, which won't have mortgage insurance. The OP would still need to double check to see if the lower LTV would affect...
by majiaknight
Tue Mar 12, 2019 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Can or should we afford this house
Replies: 62
Views: 4643

Re: Can or should we afford this house

IMO your family could afford the $1.35M house. As you expect to grow your family in a year or two and also plan to accommodate visiting parents, you don't need to wait until the time when you have to move to a larger rental like 3B which could be much more expensive or buy a non-ideal house in a sho...
by majiaknight
Sun Mar 03, 2019 2:33 pm
Forum: Investing - Theory, News & General
Topic: Peer to Peer (P2P) Lending - What are the realistic returns?
Replies: 30
Views: 3354

Re: Peer to Peer (P2P) Lending - What are the realistic returns?

For a good look at historical returns for P2P lenders, take a look at Peter Renton's returns dating back to 2011. Recent returns have been very poor. https://www.lendacademy.com/my-returns-at-lending-club-and-prosper/ Also take a look at discussion on the investor forum. Many older investors are le...
by majiaknight
Sun Mar 03, 2019 2:07 pm
Forum: Personal Investments
Topic: Want no interest, dividends or distributions in 2019
Replies: 45
Views: 4738

Re: Want no interest, dividends or distributions in 2019

I live in CA and have also thought about tax planning especially for the fixed income. Last year I decided to max annual contribution to EE Savings and I Bond which are ($10K+$10K)*2 per year per a couple and you may also buy additional ($10K+$10K) per year for your kid using the minor's account. ht...
by majiaknight
Sat Mar 02, 2019 3:32 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 1027
Views: 139726

Re: Post your Financial Milestone Announcements Here

My wife and I just hit 2 commas for our combined investments + cash assets as of close of business yesterday. We had hit 2 commas in networth a couple of years ago, but that included our home equity. However the 2 commas in just investments and cash has been a goal of mine to reach before turning 4...