Search found 212 matches

by Tal-
Fri Jan 19, 2018 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Automation of Net Worth Tracking
Replies: 6
Views: 836

Re: Automation of Net Worth Tracking

We use Mint.com for this. It tracks most assets just fine, and does so on a daily basis.
by Tal-
Mon Jan 15, 2018 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: Fired my VPA, Portfolio Critique
Replies: 12
Views: 1090

Re: Fired my VPA, Portfolio Critique

These are very (very!) aggressive. At 36 with 20+ years until retirement, I'm good with this is you are, but I want to be sure you're comfortable with an asset allocation that basically holds a nominal amount of bonds.

Thoughts? Is this intentional???
by Tal-
Wed Jan 10, 2018 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: "Emergency Fund" Strategy
Replies: 39
Views: 3921

Re: "Emergency Fund" Strategy

I'll have a dissenting/minority opinion on this one. Having real estate means that you really need to have a strong emergency fund. I'd recommend something like '20K for real estate emergency fund' + 'standard 3-6 months for personal emergency fund'. Big numbers... Because the emergency fund needs ...
by Tal-
Wed Jan 10, 2018 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: New to HSA's - A Couple of Questions
Replies: 5
Views: 512

Re: New to HSA's - A Couple of Questions

the benefits ... is that payroll deductions to HSA are FICA exempt. You have foregone most of this benefit but contributing the majority of the HSA upfront out of existing funds. I've never paid a HSA payment from existing funds, and honestly, didn't even know that this was possible. With that said...
by Tal-
Wed Jan 10, 2018 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: "Emergency Fund" Strategy
Replies: 39
Views: 3921

Re: "Emergency Fund" Strategy

I'll have a dissenting/minority opinion on this one. Having real estate means that you really need to have a strong emergency fund. I'd recommend something like '20K for real estate emergency fund' + 'standard 3-6 months for personal emergency fund'. Big numbers... Because the emergency fund needs t...
by Tal-
Mon Jan 08, 2018 1:29 pm
Forum: Personal Consumer Issues
Topic: Are Password Managers Really Necessary?
Replies: 94
Views: 3964

Re: Are Password Managers Really Necessary?

The security of password managers feels like the key question, but I'm not sure I have the technical savvy to follow this discussion, or the distinction between a password manager being hacked and the good guy being at risk. So, let me ask a simple question: In the last 3-5 years, how many people (o...
by Tal-
Fri Jan 05, 2018 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: How much life insurance?
Replies: 8
Views: 494

Re: How much life insurance?

We are in a similar situation. We each carry 1.5M. We also have healthy investments and financially stable godparents.

For you, barring a huge savings account, I would suggest $1.5m to $2.5M per person. Life insurance is cheap. :)
by Tal-
Fri Jan 05, 2018 12:41 pm
Forum: Investing - Help with Personal Investments
Topic: Higher net worth / lower cash flow - How to Invest
Replies: 23
Views: 2206

Re: Higher net worth / lower cash flow - How to Invest

Interesting question. I've been chewing on this for a few hours, and here are my thoughts: The Plan: You're probably fine drawing some of your cash to supplement your income for a few years, but this needs to be limited to a set $/year, and limited to a set number of years. How much can you take out...
by Tal-
Thu Jan 04, 2018 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Can I retire now?
Replies: 44
Views: 4618

Re: Can I retire now?

I tend to be pretty conservative on questions like this, so take this for what it's worth, but I think this is a close one. Drawing 72K inflation adjusted off of 2.5M for 50+ years is close, and should do fine on paper/in calculators. But, I'm a bit uneasy about your 72K number. Medical insurance is...
by Tal-
Thu Jan 04, 2018 12:23 pm
Forum: Investing - Help with Personal Investments
Topic: Too much tax deferral?
Replies: 26
Views: 3328

Re: Too much tax deferral?

Is there a point at which it stops making sense to put funds into tax-deferred investments and switch instead to more of a mix of Roths or even taxable? I wanted to clarify my previous post, which was really talking about tax advantaged retirement accounts (tax deferred or Roth) vs taxable accounts...
by Tal-
Thu Jan 04, 2018 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Too much tax deferral?
Replies: 26
Views: 3328

Re: Too much tax deferral?

I think you're in great shape. Your allocation is pretty great for long-term income. And, that allocation can easily handle normal variances like retiring at 55 or 58. This is especially true for you given that you have fast-growing 457 plans, and large chunks of cash (in terms of dollars) in both a...
by Tal-
Fri Dec 29, 2017 11:32 am
Forum: Investing - Help with Personal Investments
Topic: 2018 Financial Plan [24 year old]
Replies: 19
Views: 1145

Re: 2018 Financial Plan [24 year old]

Props on a job well done! Here are my thoughts: 1. Too much cash? It's close. I'm a bit worried about such a large portion of your net worth being tied to cash, but I'm more concerned about how that cash will be used. Maybe you shares specifics, but if you're planning a 15K engagement ring and a 20k...
by Tal-
Thu Dec 21, 2017 7:16 pm
Forum: Investing - Theory, News & General
Topic: Fidelity/NetBenefits vs. Vanguard vs. Schwab--Best Online 401k Account Management Website
Replies: 10
Views: 996

Re: Fidelity/NetBenefits vs. Vanguard vs. Schwab--Best Online 401k Account Management Website

More recently, they've added an option for investors to go beyond the funds available in the plan, and use a brokerage-link (I think that's what they call it) to basically create an brokerage accountant within your 401k. In theory, this sounds great. In actuality, it doesn't jive well with automati...
by Tal-
Thu Dec 21, 2017 2:59 pm
Forum: Investing - Theory, News & General
Topic: Fidelity/NetBenefits vs. Vanguard vs. Schwab--Best Online 401k Account Management Website
Replies: 10
Views: 996

Re: Fidelity/NetBenefits vs. Vanguard vs. Schwab--Best Online 401k Account Management Website

I've only ever used Fidelity, but here's my quick review of them: Fidelity has really hit the nail on the head on all big topics for us. The website is easy to use and navigate, changes are easy to make, performance is easy to track, and the information links well to other Fidelity accounts, and to ...
by Tal-
Mon Dec 18, 2017 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking progress to $1M portfolio and no mortgage by 40
Replies: 85
Views: 18762

Re: Tracking progress to $1M portfolio and no mortgage by 40

Props man! A few suggestions: 1: Do not change your goal. Hit it, and... 2: Celebrate the milestone of $1M with no mortgage. Set aside some money to treat yourselves to something special. This could be as small as a really nice dinner or as big as a new car. Also, please keep posting. I'm cheering ...
by Tal-
Mon Dec 18, 2017 4:31 pm
Forum: Personal Consumer Issues
Topic: Spending on myself, am I off base here?
Replies: 104
Views: 5658

Re: Spending on myself, am I off base here?

My advice: Don't buy the pinball machine at this time. Apologize to your wife for upsetting her/stressing her out. This is a very stressful time of year. A few months from now, initiate some conversations about her (likely) money worries. Maybe something needs to be changed to help her feel more co...
by Tal-
Mon Dec 18, 2017 3:28 pm
Forum: Personal Consumer Issues
Topic: Help Me [Recover] My Bitcoin!
Replies: 93
Views: 12092

Re: Help Me Cash Out My Bitcoin!

As I understand it, this is part of the reason cryptocurrencies (or at least bitcoin) will inevitably depreciate. Depreciate? Taking a simplistic approach to supply and demand rules..supply is down (lost bitcoin) so that means demand should go up in this case. Cost will go up. Inflation/deflation i...
by Tal-
Mon Dec 18, 2017 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking progress to $1M portfolio and no mortgage by 40
Replies: 85
Views: 18762

Re: Tracking progress to $1M portfolio and no mortgage by 40

Props man! A few suggestions: 1: Do not change your goal. Hit it, and... 2: Celebrate the milestone of $1M with no mortgage. Set aside some money to treat yourselves to something special. This could be as small as a really nice dinner or as big as a new car. Also, please keep posting. I'm cheering f...
by Tal-
Mon Dec 18, 2017 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance
Replies: 24
Views: 1618

Re: Life Insurance

Yes - you probably need life insurance for another 20 years.

No - you probably don't need whole life insurance.
by Tal-
Mon Dec 18, 2017 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: How long to hold 80/20 asset allocation
Replies: 34
Views: 3660

Re: How long to hold 80/20 asset allocation

It's a good question, but a very personal one. My personal rules of thumb are: 1: Never be so aggressive that you would panic or be forced to change in a 'once in a 100-year' type of recession/depression. 2: Never be so aggressive that it keeps you up at night, given normal volatility. 3: Given rule...
by Tal-
Thu Dec 14, 2017 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: any sense in purchasing an annuity before retirement?
Replies: 35
Views: 2174

Re: any sense in purchasing an annuity before retirement?

Does a SPIA make sense for you? It might. Understand that a SPIA will almost always produce a lower return than other investments, but will also have much lower risk (and once set up, lower complexity). So, if you understand this trade-off, I would consider a SPIA. Should you get a SPIA or Variable ...
by Tal-
Thu Dec 14, 2017 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Can rental home generate small income?
Replies: 56
Views: 4161

Re: Can rental home generate small income?

Rental homes are far more complicated than that. In some months, your rental home will make you $500/month. In others, it will lose you $5,000/month. I find it helpful to think about returns from a rental as an average return over a 5-year period. In that much time, you will have vacancies, minor ex...
by Tal-
Wed Dec 13, 2017 4:47 pm
Forum: Personal Consumer Issues
Topic: Downsizing - How much to invest in a house before selling?
Replies: 41
Views: 4775

Re: Downsizing - How much to invest in a house before selling?

This really depends on the market, and even the segment of the market. Ultimately, you need to know how much your house might sell for if one of any number of factors are done - and that's a very difficult question to answer. But, here are my thoughts - or rather my comments to get you thinking :) W...
by Tal-
Mon Dec 11, 2017 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 financial goals - what are yours?
Replies: 92
Views: 11460

Re: 2018 financial goals - what are yours?

I actually do a 4-5 page document outlining our annual goals for the year, and track performance against those goals throughout the year. Anyhow, we are 30-somethings; here are our goals: Overall: 1: Save $100K with priority to maxing all tax advantaged accounts and at least $28K in Roths. 2: Increa...
by Tal-
Thu Dec 07, 2017 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: What do Bogleheads say when they don't want to spend money?
Replies: 103
Views: 5722

Re: What do Bogleheads say when they don't want to spend money?

I think you are reading way way too much into this. No sane person should need to nor expect someone to say "I can not afford $9.99 a month" likewise no normal person should say I do not feel that the opportunity cost of Netflix is favorable to the potential growth I expect to experience by investi...
by Tal-
Thu Dec 07, 2017 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: At what age your investments start making more money than you?
Replies: 107
Views: 7689

Re: At what age your investments start making more money than you?

miamivice wrote: ↑
Thu Dec 07, 2017 2:20 pm
Many years ago, I set a personal goal for myself to earn more in dividends per year than a certain high school friend earns in a year at his/her workplace.

My wife is unimpressed with my goal.
Your wife may be unimpressed, but I think that you're my hero...
by Tal-
Thu Dec 07, 2017 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: At what age your investments start making more money than you?
Replies: 107
Views: 7689

Re: At what age your investments start making more money than you?

I actually think that this is a fun question. I'll take a stab. At something like age 34, we made more from our investments than we did from our net W2 incomes. I calculated this by figuring our net worth increase minus dollars saved, and compared that to our take home pay after taxes and new dollar...
by Tal-
Mon Nov 27, 2017 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Too much house, right?
Replies: 88
Views: 8343

Re: Too much house, right?

I'm pretty blown away by the responses here. I feel that this is a clear, and strong no. You don't have enough for the down payment. Not by a long shot. Your current cash on hand/savings are in good shape, but they including savings and the e-fund, I would not want you to go much below this for any ...
by Tal-
Tue Nov 21, 2017 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: How much longer do I need life insurance?
Replies: 19
Views: 1366

Re: How much longer do I need life insurance?

2 kids 12 and 14, probably going to college. Something I find interesting is that most people assume that after my untimely demise, my wife and kids would need to live exactly as they do now with the same house, expenses, etc. for the indefinite future. Not to be cold hearted but I am not sure if t...
by Tal-
Mon Nov 20, 2017 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity - Time to Surrender ?
Replies: 64
Views: 3696

Re: Variable Annuity - Time to Surrender ?

I'm not an expert on this topic, but here are my thoughts: I'm not a fan of annuities, but the previous mistake of buying may not necessarily mean that keeping them is a mistake today. To simplify the discussion, I find it helpful to ignore both the absurd expense ratio, offensively aggressive inves...
by Tal-
Mon Nov 20, 2017 9:07 am
Forum: Investing - Help with Personal Investments
Topic: Refinance 30yr to 15yr mortgage?
Replies: 33
Views: 3391

Re: Refinance 30yr to 15yr mortgage?

I'd probably sell. The house is clearly losing cash in an ideal month, and will continue to do so for a long time. Once vacancy and capital expenses are factored in, I'd wager that the total return for the next 10 years will be around 0. Time to sell. If you want to keep it, I won't object too much....
by Tal-
Fri Nov 17, 2017 4:36 pm
Forum: Personal Consumer Issues
Topic: Questions for Boglehead runners
Replies: 28
Views: 1624

Re: Questions for Boglehead runners

1: $300-$500 or so per year. Shoes and socks are obvious, but a good running shirt/gloves/spandex/underwear/etc. really help and are worth the investment. 2: A typical goal is 24 miles/week. Realistically, that's 4, 6 mile runs during lunch at work. Anything over 6, or when training for something, I...
by Tal-
Thu Nov 16, 2017 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Help for semi retired friend with 8 figure savings
Replies: 68
Views: 5492

Re: Help for semi retired friend with 8 figure savings

Step 1: Control downside risk. I don't know anything about the businesses that they own, but owning businesses can be a huge risk. This couple doesn't have much of a risk of going broke, but most of that risk probably comes from these businesses. I would strongly consider selling these if they were ...
by Tal-
Fri Nov 03, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: investment advice
Replies: 3
Views: 405

Re: investment advice

Hey there, I think you probably have the same employer as my wife... She has almost identical options. I don't see any big red flags - and I think you're doing great! I have several comments below, but it's clear that you could implement the changes you mentioned (HSA & new Roth) and be in great sha...
by Tal-
Mon Oct 30, 2017 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Should I pay off mortgage? Has this ever been asked before?
Replies: 41
Views: 3672

Re: Should I pay off mortgage? Has this ever been asked before?

The money would probably come from liquidating the $70K Roth IRA and another $30K I've got stashed for "emergencies." I'd still have emergency funds of $10K + credit cards if needed. That gets me $100K of the way there, the rest would probably be the occasional double payment when I could. Teague -...
by Tal-
Fri Oct 27, 2017 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Can I retire today?
Replies: 132
Views: 8367

Re: Can I retire today?

Do your projections include healthcare? If so, I agree that you're good to go - though like others, I would suggest a low withdraw rate (2-3%) with that asset allocation. You can probably ramp it up in a couple years, but let's cross that bridge when you get there. For now, just stop showing up and ...
by Tal-
Thu Oct 26, 2017 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Mechanics of Roth 401K
Replies: 18
Views: 1804

Re: Mechanics of Roth 401K

For us, the % that goes to the Roth 401(k) is the % of gross income. For example, if we make $100 before taxes, and contribute 10% to Roth.

Taxes= 20% of $100, or $20.
Roth = 10% of $100 (not 10% of $80), or $10.

Net income = $70.
by Tal-
Thu Oct 26, 2017 9:41 am
Forum: Personal Consumer Issues
Topic: Looking for Mazda CX-9 Feedback
Replies: 16
Views: 1413

Re: Looking for Mazda CX-9 Feedback

We just purchased a SUV, and had high hopes for the CX-9 - but when we looked at it, it was clearly not our cup of tea. We found the interior to be cheaply made and not overly functional. The handling was average or slightly above average, but virtually every other SUV we were looking at offered a V...
by Tal-
Tue Oct 24, 2017 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Who's got too much RE in India ??. Time to cash out??
Replies: 31
Views: 3207

Re: Who's got too much RE in India ??. Time to cash out??

Yes - you need to sell a bunch of this. I'll admit that I don't understand fees, taxes, or the RE market in India. I don't understand IRS reporting of current assets or how selling those assets would impact future taxes. I don't understand options of what to do with the cash once sold. These are all...
by Tal-
Tue Oct 24, 2017 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Can one have too much money in tax-deferred
Replies: 128
Views: 12294

Re: Can one have too much money in tax-deferred

That comment is a bit like saying "don't eat too many leafy green vegetables." Technically, it's academically accurate, but pretty absurd in practical application. RMDs are treated like boogeyman by some people - and that's both misleading and unfair. In short, RMDs are designed to leave you with en...
by Tal-
Mon Oct 23, 2017 2:59 pm
Forum: Investing - Theory, News & General
Topic: Long term viability of Real Estate as an asset class
Replies: 38
Views: 3516

Re: Long term viability of Real Estate as an asset class

I'll sidestep the "If you're investing in Real Estate, should you buy a REIT, or should you buy property directly" questions. That's a valid topic, but clearly not what the OP was asking. I think that Real Estate will drastically change in the next few decades, but I have no clue how... Self driving...
by Tal-
Sun Oct 22, 2017 9:15 am
Forum: Investing - Theory, News & General
Topic: When one reaches the 1 million mark what to do with all the money?
Replies: 33
Views: 6660

Re: When one reaches the 1 million mark what to do with all the money?

I actually think that it's a decent question. For me, hitting this milestone was a meaningful experience. Here's my thoughts: 1. diversifying into other streams such as rentals. We are heavily invested in rentals, but that was as much a driver of getting to $1M than security against our net worth de...
by Tal-
Fri Oct 20, 2017 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone here with net worths north of $1 mil use financial advisors?
Replies: 193
Views: 21531

Re: Does anyone here with net worths north of $1 mil use financial advisors?

Yes. We pay a flat fee of $2K/year for a financial adviser, and find the relationship worth the cost. We don't really need the asset allocation help, but find that having an expert talk us through big financial decisions is a big help. The BH community is as savvy and financially stable of a communi...
by Tal-
Fri Oct 20, 2017 6:53 pm
Forum: Investing - Help with Personal Investments
Topic: Is my rental property worth keeping?
Replies: 28
Views: 2118

Re: Is my rental property worth keeping?

1850 rent on a 380k property is really really low. Are you renting below market rent?

Also, tell us about the house? SF Detached? Age? Area? City? Sqr ft? etc...
by Tal-
Fri Oct 20, 2017 8:31 am
Forum: Investing - Help with Personal Investments
Topic: deductible Traditional IRA or Roth IRA
Replies: 5
Views: 304

Re: deductible Traditional IRA or Roth IRA

It's a complicated question, and I'd want to know about tax brackets, assets, asset distribution, future income strategies, etc. before giving a full (and probably more accurate) answer. With that said, either option seems fine. But, reading the tea leaves, it seems like this is not money that you'l...
by Tal-
Mon Oct 16, 2017 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Buying 2nd House - Affordability Check
Replies: 17
Views: 2192

Re: Buying 2nd House - Affordability Check

Tal votes no. Actually, let me rephrase that. Tal prohibits you from doing this! Unless I'm wrong, today, 100% of the profit on your current home is TAX FREE. After that's been a rental for a while, that changes and becomes taxable. Next, with 100K in cash, you are behind in investment accrual. No n...
by Tal-
Fri Oct 13, 2017 11:54 pm
Forum: Investing - Theory, News & General
Topic: What's your asset allocation and why?
Replies: 176
Views: 17912

Re: What's your asset allocation and why?

Age: Late 30's. Retiring in 13 years. We have roughly 1/2 of our investments in real estate (rentals). The rest: US: 50% (2/3 of that large cap) International: 26% Bonds: 24% My natural inclination would be to go heavier into stocks, but our risk due to real estate makes some bond exposure a good id...
by Tal-
Fri Oct 13, 2017 11:38 pm
Forum: Investing - Help with Personal Investments
Topic: fidelity netbenefits
Replies: 15
Views: 2240

Re: fidelity netbenefits

I've been pleased with Fidelity as a 401k provider. They typically provide some good fund options, very good reporting and functionality, and adequate service. It looks like you got yourself a decent plan. I'm not an expert in asset allocations, but I'd probably add the small and mid-cap index funds...
by Tal-
Thu Oct 12, 2017 1:56 pm
Forum: Personal Consumer Issues
Topic: SUV options with 3 little kids
Replies: 57
Views: 3816

Re: SUV options with 3 little kids

Here are my thoughts: 1: You probably want a 3rd row. Maybe you could make a 2 row work, but I'd strongly advocate limiting your 5 to 3rd row options. 2: You don't need to go luxury here - especially not in your initial list of 5 cars! I'm not strictly against luxury cars, but in the 3rd row segment...
by Tal-
Tue Aug 29, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking Plan I can Implement -- what's appropriate fee?
Replies: 32
Views: 5511

Re: Seeking Plan I can Implement -- what's appropriate fee?

Thanks for the feedback. I am only seeking an investment plan for retirement and not the full complement of planning an advisor can offer. I can certainly operate a calculator to figure out rebalancing, but wouldn't know when it's time to actually shift to alternative investments unless thought is ...