Search found 345 matches

by Tal-
Sat Oct 20, 2018 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: Do Any Annuities Offer a "Free Lunch"?
Replies: 20
Views: 1174

Re: Do Any Annuities Offer a "Free Lunch"?

A few things: 1: I think your spending projections are off. I doubt that you will spend only 25K a year in retirement. That's pretty low. However, for the other bullet points, I assume that you're correct. 2: Annuities almost always return less than simple, direct investing. There are caveats here, ...
by Tal-
Tue Oct 16, 2018 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Job Offer – bonus details provided after acceptance
Replies: 26
Views: 1783

Re: Job Offer – bonus details provided after acceptance

I agree that this is a big red flag! Incentive programs typically have a target and a maximum. Without a more detailed description, you can't know if the 55% is the target or the maximum. And, even if you knew that the 55% was the target, who knows how ambitious or achievable that is. That is to say...
by Tal-
Mon Oct 08, 2018 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Would you buy this insurance policy?
Replies: 9
Views: 431

Re: Would you buy this insurance policy?

No.

I would only do this if I knew of an upcoming hospital cost. Otherwise, it's not a smart financial choice.
by Tal-
Thu Oct 04, 2018 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off debt or invest?
Replies: 14
Views: 1225

Re: Pay off debt or invest?

Welcome to Boggleheads :) I actually disagree, rather strongly, with the advice above... I think you should invest 100% of this (less taxes). You didn't mention your age, but if you're 12 years into your mortgage with very little retirement savings, that means that you're probably a bit behind. Doi...
by Tal-
Thu Oct 04, 2018 1:38 pm
Forum: Investing - Theory, News & General
Topic: Real Estate investing - leveraging with a "BULLET" loan
Replies: 17
Views: 1286

Re: Real Estate investing - leveraging with a "BULLET" loan

I'm a real estate investor in the states. Here are my thoughts: While you're early in the real estate game, I would never consider a Bullet loan, or any type of balloon loan for that matter. Without getting lost in the details, if the deal doesn't make sense using a long-term, fixed, amortized loan,...
by Tal-
Wed Oct 03, 2018 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off debt or invest?
Replies: 14
Views: 1225

Re: Pay off debt or invest?

Welcome to Boggleheads :) I actually disagree, rather strongly, with the advice above... I think you should invest 100% of this (less taxes). You didn't mention your age, but if you're 12 years into your mortgage with very little retirement savings, that means that you're probably a bit behind. Doin...
by Tal-
Wed Oct 03, 2018 6:01 pm
Forum: Personal Consumer Issues
Topic: Cruise deals?
Replies: 47
Views: 3104

Re: Cruise deals?

A few tips: https://www.vacationstogo.com/ has a wonderful search engine, and it where I go to get a general feel for what trip I want to take and how much it will cost. Once you know that... www.cruisecompete.com will help you find the best price, and they have always been lower than vacationstogo....
by Tal-
Tue Oct 02, 2018 10:01 pm
Forum: Personal Consumer Issues
Topic: Landlord wants to raise rent, but is asking if he can?
Replies: 54
Views: 5468

Re: Landlord wants to raise rent, but is asking if he can?

This is one of those situations where keeping the great relationship is just as important as the outcome of the negotiation... First, I'd wager money that it is things like inflation, market rents, property taxes, etc. that are driving the increases in rent. Economics say that a rental is worth X - ...
by Tal-
Wed Sep 19, 2018 6:53 pm
Forum: Personal Consumer Issues
Topic: What is your single most expensive mistake?
Replies: 293
Views: 25232

Re: What is your single most expensive mistake?

My biggest mistake???

Well, I just bought $250 of HMNY (MoviePass). So, give it a week, and I'll have a good answer for ya.
by Tal-
Mon Sep 17, 2018 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life vs Universal Life Insurance
Replies: 30
Views: 1743

Re: Whole Life vs Universal Life Insurance

For 99% of the population that needs life insurance, a simple term policy is the best bet. You're right that whole and universal policies act as both an investment and as life insurance, but they aren't very good at either. By way of example, if a whole life policy was 2000/year for 150k payout, you...
by Tal-
Fri Sep 14, 2018 4:00 pm
Forum: Personal Consumer Issues
Topic: Picking a Charity
Replies: 69
Views: 2894

Re: Picking a Charity

Several thoughts about how to give efficiently. 1: Try and find a way to give consistently. Pick 1-4 charities and give on a pre-set schedule. These enable charities you give to to make better business decisions, and limits resources spent by other charities trying to woo you. 2: Always consider giv...
by Tal-
Wed Sep 05, 2018 8:12 am
Forum: Investing - Theory, News & General
Topic: Investment Books
Replies: 47
Views: 3453

Re: Investment Books

Best book I ever read: Personal Finance for Dummies, 1993 edition. I swear, that book laid the groundwork for so much great stuff. This book was a great one for us! My father in law got this for my wife as she was graduating college. I still remember her opening it and looking at him as if to say "...
by Tal-
Thu Aug 30, 2018 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need Term Life Insurance?
Replies: 17
Views: 1519

Re: Do I need Term Life Insurance?

Do you need it? Probably not. You've done great, and have a good nest-egg. If you die today, your family is probably fine.

Would I suggest you get it? Yes! For a few hundred a year, you can change that "probably fine" to an "absolutely fine". You don't need to pinch pennies, so I wouldn't.
by Tal-
Tue Aug 28, 2018 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Getting out of vacation club contract
Replies: 10
Views: 1872

Re: Getting out of vacation club contract

I'm honestly surprised that the option to "just stop payment" has gotten so much consideration. I have no clue what the likely outcome of stopping payment would be, but the worse case scenario is pretty freaking awful, and includes collections, harassment, lawsuit, additional fees, etc. Maybe stoppi...
by Tal-
Mon Aug 27, 2018 4:08 pm
Forum: Personal Consumer Issues
Topic: Real Estate sale question. Reasonable offer expiration time period?
Replies: 15
Views: 664

Re: Real Estate sale question. Reasonable offer expiration time period?

I wouldn't sweat it. All realtors have a slightly different process, and use different tactics and verbiage to handle multiple offers, incoming offers, other agents, other agents' clients, and so on. And, perhaps more importantly, they will involve the seller in micro-decisions to various degrees. I...
by Tal-
Mon Aug 27, 2018 8:38 am
Forum: Personal Finance (Not Investing)
Topic: LLC for one rental property?
Replies: 28
Views: 2338

Re: LLC for one rental property?

OP. You understand that without an LLC your personal assets are at risk in the event you have liability arising from the rental that is in excess of your insurance coverage, or is not covered by your liability policy or policies ( if you have a unique set of facts that result in liability, perhaps ...
by Tal-
Wed Aug 22, 2018 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: To buy or hold for housing crash in Bay Area CA
Replies: 27
Views: 3050

Re: To buy or hold for housing crash in Bay Area CA

Obviously, opinions will differ. But, you can count me as a "No, No, and No!!!!" vote. I have a few reasons: 1: SALT 2: Increasing interest rates 3: Stretched price-to-income ratio makes me think that housing levels here are not sustainable. 4: I tend to avoid investments that have spiked in previou...
by Tal-
Tue Aug 21, 2018 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: No income this year - Should I take capital gains?
Replies: 13
Views: 1074

Re: No income this year - Should I take capital gains?

A follow-up and hypothetical question. Assuming I have zero income for the year, but massive long term cap gains (say $1M), could I really I take that $1M tax-free? lmao.. no, the cap gains is included in your income and the cap gains rate is tiered. Whew! I found some calculators that suggested ot...
by Tal-
Tue Aug 21, 2018 2:18 pm
Forum: Investing - Theory, News & General
Topic: Oversimplifying expected return on rental properties
Replies: 12
Views: 1156

Re: Oversimplifying expected return on rental properties

With my rental properties, I'm real real hesitant to project long-term returns. With that said, I think the returns that you listed are about right. In year one, if I put 20k down on a 100k house at 5% interest and 3k sunk costs, my debt paydown in year 1 will be ~1200. 1200/23,000 = 5.2%. Longer-te...
by Tal-
Tue Aug 21, 2018 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: No income this year - Should I take capital gains?
Replies: 13
Views: 1074

Re: No income this year - Should I take capital gains?

A follow-up and hypothetical question.

Assuming I have zero income for the year, but massive long term cap gains (say $1M), could I really I take that $1M tax-free?
by Tal-
Tue Aug 14, 2018 8:47 am
Forum: Personal Consumer Issues
Topic: Rental House Issue
Replies: 21
Views: 2626

Re: Rental House Issue

I'm sorry that this hasn't treated you poorly. While early terminations are pretty common, I'm aghast at the property manager (PM) taking such liberties, and apparently putting the interests of the tenant before yours as the owner. That's bad juju, and parting ways with the PM is a good idea. Good P...
by Tal-
Thu Jul 26, 2018 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Moral dilemma - What would you do?
Replies: 54
Views: 5815

Re: Moral dilemma - What would you do?

A few thoughts: 1: This feels pretty common. I work on the Corp side, but I can't tell you how many times I've been promised, or had something implied that simply didn't happen. 2: When it comes to numbers, there's a big difference between framing them in a misleading way (different graphs, only som...
by Tal-
Thu Jul 19, 2018 10:08 am
Forum: Personal Consumer Issues
Topic: Watch Collection Reasonable or Unreasonable or Irresponsible?
Replies: 104
Views: 5348

Re: Watch Collection Reasonable or Unreasonable or Irresponsible?

I don't know squat about wrist watches, so I'd like to ask some questions before responding: 1: What do you think will happen to their value over time? Will they keep pace with inflation? Better? 2: How liquid are they if you wanted to sell? How much would it cost you to sell them? Are there a lot o...
by Tal-
Sun Jul 15, 2018 9:50 pm
Forum: Investing - Help with Personal Investments
Topic: Grade my portfolio please, newbie here
Replies: 9
Views: 969

Re: Grade my portfolio please, newbie here

I like it. You could leave it as-is and be in great shape. But, you asked for some thoughts, so here's my two cents: I don't mind i, but are you sure that you're good with a 55/25/20 allocation? That's aggressive, and will have a lot of volatility between now and retirement. If you can handle that v...
by Tal-
Thu Jul 12, 2018 7:48 pm
Forum: Investing - Theory, News & General
Topic: Real Estate Investment: Yay or Nay?
Replies: 27
Views: 2252

Re: Real Estate Investment: Yay or Nay?

No. No No No.

With $1000/mo in rent and a $251 HOA, I would need to pay around $100K for it to be a viable investment - and even that is high for some people.

But, don't get lost in the details. This one is not even close to making sense.
by Tal-
Mon Jul 09, 2018 8:22 am
Forum: Personal Consumer Issues
Topic: Tipping in a hotel room/cruise ship room
Replies: 57
Views: 4392

Re: Tipping in a hotel room/cruise ship room

I'm apparently a bit of a hypocrite. I consider myself a good tipper, but I don't tip hotel housekeeping. After reading this thread, that will change, and I'll start leaving 2-3 for each time we let them in. For a cruise, the norm is to tip your room steward and wait staff at the end of the cruise. ...
by Tal-
Mon Jul 09, 2018 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Home Rental application questions
Replies: 12
Views: 1583

Re: Home Rental application questions

Landlord with a few properties, and experience with a handful of property management companies. 1: No - I've never asked for tax returns, though as denovo mentioned, I'd be open to doing so if pay stubs did not show adequate income. 2: A credit check is a credit check, meaning a landlord uses the sa...
by Tal-
Sun Jul 08, 2018 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: Switch to active management from buy and hold
Replies: 8
Views: 660

Re: Switch to active management from buy and hold

To clarify, was the adviser suggesting that you have a financial adviser who provides you personal service, and may help with you actively managing your asset allocation, or was the adviser suggesting that you sell index funds and replace them with actively managed mutual funds?
by Tal-
Thu Jul 05, 2018 12:28 am
Forum: Personal Finance (Not Investing)
Topic: Just divide what you've got by what you'll spend??
Replies: 21
Views: 3004

Re: Just divide what you've got by what you'll spend??

And regarding inflation, I'm not sure I'm avoiding it, but rather just assuming investments grow at the same rate as inflation. Another big caveat, I know! Actually, if your rate of return exactly equaled spending inflation, the spending/money calculation would actually be off by 5%-20%. Assume I h...
by Tal-
Wed Jul 04, 2018 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Just divide what you've got by what you'll spend??
Replies: 21
Views: 3004

Re: Just divide what you've got by what you'll spend??

I'm not a fan. Obviously, retirement planning has both known unknowns and unknown unknowns. That is to say that I would agree that it's not feasible (nor possible) to consider everything in a retirement plan. But, ignoring some of the known factors, such as inflation, is ignoring a known factor that...
by Tal-
Mon Jul 02, 2018 10:07 pm
Forum: Personal Consumer Issues
Topic: Any Boglehead powerlifters?
Replies: 115
Views: 8828

Re: Any Boglehead powerlifters?

I really dig Crossfit and do that 4-5 times a week, and have done that for 2-3 years. Age: Late 30s PBF: 17% (a bit higher than I like, but still in a healthy range) Press: 115 Squat: 245 Clean: 205 Dead: 385 Clean and Jerk: 185 I was just better than the 50th percentile for all men participants in ...
by Tal-
Sun Jul 01, 2018 12:28 am
Forum: Investing - Help with Personal Investments
Topic: What % of your equity is int’l?
Replies: 141
Views: 8592

Re: What % of your equity is int’l?

Around 30%. Though, I'm tempted to increase that greatly...
by Tal-
Fri Jun 29, 2018 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Landlords- How Many Months of Expenses Do You Keep?
Replies: 8
Views: 1271

Re: Landlords- How Many Months of Expenses Do You Keep?

It's commingled with my personal emergency fund, meaning in aggregate, it is probably larger than it needs to be (a good problem to have). Right now, I add around $20k to the emergency fund to cover rentals. This feels about right to me. And while each situation is unique, I would never ever (ever!)...
by Tal-
Tue Jun 12, 2018 8:35 am
Forum: Personal Finance (Not Investing)
Topic: paying off rental property?
Replies: 9
Views: 727

Re: paying off rental property?

This looks like a good time to sell. A few things: 1- You commented that you don't want to be a landlord any more. That's a fine decision. 2 - The property is probably not a good long-term investment. 3 - This is not a big portion of your income. If you were making 50K a year, I would be more concer...
by Tal-
Fri Jun 01, 2018 8:28 am
Forum: Investing - Help with Personal Investments
Topic: Strategy for upcoming $3M windfall
Replies: 60
Views: 11890

Re: Strategy for upcoming $3M windfall

Not sure if I was clear on that, but I exercised more than a year ago, so it's in LTCG now. If my calcs are right, the difference in tax between selling it all this year and splitting it over 2 years would be ~$27K. And the difference between splitting over 3 years is ~$55K. Not insignificant, but ...
by Tal-
Thu May 31, 2018 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for upcoming $3M windfall
Replies: 60
Views: 11890

Re: Strategy for upcoming $3M windfall

Hey there, Thanks for coming back and giving us an update. I often find the updates very insightful - so thank you for doing this :) Here are my comments: 1) Do I sell it all this year, incurring all the cap gains tax at once or split it over 2 years? The income subject to LTCG would be about $1.4M,...
by Tal-
Tue May 29, 2018 8:12 am
Forum: Investing - Help with Personal Investments
Topic: Help review this 1 million portfolio & our spend planning?
Replies: 5
Views: 1586

Re: Help review this 1 million portfolio & our spend planning?

You're off to a great start. Congrats!!!! A few comments: 1: That's probably too conservative as a long-term AA, but if the $1M is new money, and you want to avoid a mistake, I'm OK with this for a year. So, my preference would be to get more aggressive with the money, but if you really want the sec...
by Tal-
Mon May 28, 2018 7:08 pm
Forum: Personal Consumer Issues
Topic: Cruise ships for multi-generational family
Replies: 61
Views: 3780

Re: Cruise ships for multi-generational family

Disney will be your best bet, but is also super expensive! Royal Caribbean will be good for those who are worried about being bored. Their bigger ships have tons and tons to do. Princess and Celebrity are both great cruise lines, but are not great options for younger kids (Princess better than Celeb...
by Tal-
Fri May 25, 2018 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: should I buy or rent
Replies: 18
Views: 1392

Re: should I buy or rent

Rent.

Given your job (and location!) insecurity, I would strongly advise against buying.

Instead, rent a nice house. A much nicer place. Spent $2K a month and rent a house with a yard...
by Tal-
Fri May 25, 2018 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest $1.4 million inheritance?
Replies: 32
Views: 4714

Re: How to invest $1.4 million inheritance?

First, I'm sorry for your loss. Second, congratulations on such a strong financial standing. If this money would change anything about your lifestyle, security, plans, etc., then I think that simply adding it to your allocation (using either lump sum, or 1-year DCA) is fine. But, if this money would...
by Tal-
Wed May 23, 2018 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Buy this home?
Replies: 39
Views: 4330

Re: Buy this home?

If I were in the Southeast or North Carolina, I would be doing what you guys are doing, buying a home for $300k :)---but I'm not, I'm in Seattle and that too for the long term. Houses for < $800K would pull us further from the better school districts, our jobs etc. I am not going to try to time my ...
by Tal-
Wed May 23, 2018 12:40 am
Forum: Personal Finance (Not Investing)
Topic: Buy this home?
Replies: 39
Views: 4330

Re: Buy this home?

If I were in the Southeast or North Carolina, I would be doing what you guys are doing, buying a home for $300k :)---but I'm not, I'm in Seattle and that too for the long term. Houses for < $800K would pull us further from the better school districts, our jobs etc. I am not going to try to time my ...
by Tal-
Tue May 22, 2018 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Buy this home?
Replies: 39
Views: 4330

Re: Buy this home?

I think you can afford it. I don't think you should afford it. Forgive me for reading tea leaves, but it seems like a lot of people are trying to get into owning real estate now because of how well real estate has done for the last decade. And, markets which have done better, and thus are more expen...
by Tal-
Fri May 18, 2018 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Stepfather's annuity
Replies: 14
Views: 1713

Re: Help with Stepfather's annuity

Risin, You're doing great! I hope that I can support my mom in a like manner, and frankly, that my kids can support me this way when the time comes. Well done so far! At the age of 88 and in poor health, I would be pretty dang conservative. You commented that his finances were generally in good shap...
by Tal-
Fri May 18, 2018 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Are there any experienced real-estate people here?
Replies: 39
Views: 4071

Re: Are there any experienced real-estate people here?

I would try and sell it as-is. Typically, when putting money into a property, you want to change the type of buyer who would be interested. Upgrading from a "just want 4 walls and a roof" to the next tier (let's call it "dated but nice") is a big upgrade, and I doubt 10K will get you there. If the m...
by Tal-
Thu May 17, 2018 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: Can I afford to retire now?
Replies: 45
Views: 6922

Re: Can I afford to retire now?

OP, You've provided a really good summary of your assets, but I'm much less clear on your spending - both current and expected. How is medical factored into the 135K? How is your PITI factored into the $135K, and how will that change in a few years when you pay off the mortgage? What big expenses do...
by Tal-
Thu May 17, 2018 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Urgent: escrow situation in bay area
Replies: 50
Views: 3311

Re: Urgent: escrow situation in bay area

On an annual basis, can you afford a 6K/month PITI payment, and still invest for retirement while living a life that you would be happy with?
by Tal-
Wed May 16, 2018 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage decision killing me
Replies: 52
Views: 7222

Re: Mortgage decision killing me

I'm a big believe in the 30 year fixed, but I think a 7/1 is a viable alternative in your situation. For me, I like the security of knowing what my mortgage payment will be in the future, and I hate having a future bill lingering for the next many years. It's why I don't use ARMs. And, it's why I've...
by Tal-
Wed May 16, 2018 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: Percent Confidence in Planning Scenario
Replies: 27
Views: 1262

Re: Percent Confidence in Planning Scenario

The short answer: 96% is fine. No need to get to 100%. The longer answer is that these calculators inherently take an series of unknowable factors (future inflation, future spending, life expectancy, future contributions, sometimes taxes, etc.) an assumes that they are static, final, and finite. Typ...