Search found 276 matches

by Tal-
Thu Apr 19, 2018 12:32 am
Forum: Personal Consumer Issues
Topic: Buy rental property out of state !
Replies: 16
Views: 1296

Re: Buy rental property out of state !

I own nearly a dozen rentals out of state. In fact, I purchased the first several in a state where I had never even been. They have treated us very well over the 5 or so years that we've owned them. If you're looking for an ABC, I'd do something like this: A: Study. Read a book or two on rentals (I ...
by Tal-
Wed Apr 18, 2018 8:51 am
Forum: Investing - Help with Personal Investments
Topic: I want to pay off my mortgage. Am I crazy?
Replies: 54
Views: 5180

Re: I want to pay off my mortgage. Am I crazy?

Financially (and quantitatively), it's probably best to keep the mortgage. Paying off the mortgage is a financial luxury. It probably has psychological benefits, but has a lower expected return than simply keeping the mortgage. Your financial situations makes me think that you can afford the luxury ...
by Tal-
Tue Apr 17, 2018 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: 35 years old - Evaluate my finances (Please and Thank you!)
Replies: 17
Views: 1360

Re: 35 years old - Evaluate my finances (Please and Thank you!)

I'm more positive than Tal on the condo. $3000/mo on a $570,000 unit is pretty good, and reflective of DC's strong market for rentals (assuming that's where your condo is). And you have someone you trust to manage it at low cost. You don't need this to produce positive cash flow because you'll be b...
by Tal-
Tue Apr 17, 2018 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: 35 years old - Evaluate my finances (Please and Thank you!)
Replies: 17
Views: 1360

Re: 35 years old - Evaluate my finances (Please and Thank you!)

Overall, you're doing great, and should take a second to pat yourself on the back for a job well done. But, here are my thoughts: Real estate is a huge variable in this, and is a complicated topic. First, your current apartment makes an awful rental. $120 a month on an ideal month is simply not eno...
by Tal-
Tue Apr 17, 2018 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: 35 years old - Evaluate my finances (Please and Thank you!)
Replies: 17
Views: 1360

Re: 35 years old - Evaluate my finances (Please and Thank you!)

Overall, you're doing great, and should take a second to pat yourself on the back for a job well done. But, here are my thoughts: Real estate is a huge variable in this, and is a complicated topic. First, your current apartment makes an awful rental. $120 a month on an ideal month is simply not enou...
by Tal-
Sat Apr 14, 2018 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off (2nd home) debt or invest more?
Replies: 8
Views: 623

Re: Pay off (2nd home) debt or invest more?

Paying off so much tax-advantaged, low interest debt is unlikely to produce the highest return (i.e. you may get a better return investing that cash), but if the ~400K vacation home is ~8% of your net worth, you're obviously doing great financially, and probably don't need to worry about maximizing ...
by Tal-
Thu Apr 12, 2018 4:39 pm
Forum: Personal Consumer Issues
Topic: Disneay Aulani (Hawaii) vacation planning
Replies: 14
Views: 1229

Re: Disneay Aulani (Hawaii) vacation planning

Haven't stayed there, but have researched it a fair bit.

It sounds like it's a Hawaiian resort with some Disney thrown in, rather than a Disney resort in Hawaii. For that reason, we haven't stayed there.

With that said, I'm super interested to hear others weigh in.
by Tal-
Thu Apr 12, 2018 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: [ANOTHER!] HSA/HDHP or PPO plan?
Replies: 10
Views: 596

Re: [ANOTHER!] HSA/HDHP or PPO plan?

Are you sure about your description of the PPO? Especially the deductible amount?

As written, the two options are extremely similar, except the $4k that you get in the HDHP, which makes the decision pretty easy.
by Tal-
Thu Apr 12, 2018 3:59 pm
Forum: Investing - Theory, News & General
Topic: Reasonable appreciation assumptions?
Replies: 4
Views: 244

Re: Reasonable appreciation assumptions?

My view: Long-term, housing price variability between markets will decline. And while the mean nation-wide housing price will increasing (probably at a rate slower than inflation, but on that order of magnitude), house prices in abnormally high and low markets will regress towards that mean. Additio...
by Tal-
Wed Apr 11, 2018 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: Roth option within 403b
Replies: 8
Views: 381

Re: Roth option within 403b

I don't think a lot of people do both a traditional and Roth account at the same time. This is because there is probably a "right" choice - or at least one that you prefer. With that said, we do both. The wife and I don't really agree on what the "right" choice is for us, and we find that splitting ...
by Tal-
Wed Apr 11, 2018 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Am I being unreasonable? [Send daughter to private kindergarten]
Replies: 70
Views: 3959

Re: Am I being unreasonable?

The only reason to do a private KG is if you try the public option and it doesn't work. I feel strongly that you need to start in a public school and go from there. With that said, the kids come first. If, a few months in, the public option isn't working and can't be fixed, and you have reason to be...
by Tal-
Wed Apr 11, 2018 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Where to invest $2200 in a 16 year old's Roth IRA
Replies: 17
Views: 951

Re: Where to invest $2200 in a 16 year old's Roth IRA

Why does a 16 year old need bonds? I'd consider this fun money and be 100% TSM and be done with it. No need for 80/20. I think there are two reasons: First, using bonds is a best practice, and learning the general best practice is often a good starting point. And two, investing in bonds today let's...
by Tal-
Wed Apr 11, 2018 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Where to invest $2200 in a 16 year old's Roth IRA
Replies: 17
Views: 951

Re: Where to invest $2200 in a 16 year old's Roth IRA

Props for having a bright teenager! At age 16, the learning is more important than the investments or returns. So, even if a target date fund was viable, I'm not sure that I would advocate that. I would have him put together a 3-fund portfolio with ETF's - though I would model this after a target da...
by Tal-
Tue Apr 10, 2018 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Property...Tips/Learning for Newbie
Replies: 16
Views: 1084

Re: Rental Property...Tips/Learning for Newbie

A few tips: 1: Start small. Typically a SFR, though I'm open to a plex if you'll live in part of it. Assuming you're on track to exceed your goals, I would go as high as 10% of your net worth into the property. 2: Never be cash poor; always keep a huge cash buffer (10K+) 3: Understand that real esta...
by Tal-
Mon Apr 09, 2018 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Need to pull 32k not sure what’s the best option.
Replies: 5
Views: 504

Re: Need to pull 32k not sure what’s the best option.

I'm sorry that you're in that position. That must be hard. Forgive my pessimism, but I'm struggling with the premise that you need to pull 32K cash. You may have done so, but I'd strongly challenge this premise, and see what could be done to avoid generating 32K cash. If you really do need 32K cash:...
by Tal-
Mon Apr 09, 2018 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: Investing with a 10 year horizon
Replies: 12
Views: 1034

Re: Investing with a 10 year horizon

I guess you are asking because you want to know if I am pressed to make as much money as possible. I am not. But if there is a way to make things easier along the way, I take it :greedy Close, but I was looking at it the exact opposite way. I was starting from the mindset of: 10 years is a long tim...
by Tal-
Mon Apr 09, 2018 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: I'm 34 and Need Investing Help
Replies: 8
Views: 1243

Re: I'm 34 and Need Investing Help

Lot's going on here, but you're clearly on a great track. Here are my thoughts: Cash vs Investing of $250K $250K in cash sure sounds high, but as a (single?) self-employed 34 year old making 150K a year, I'm a bit nervous about future volatility of your income. As such, I'd recommend something like ...
by Tal-
Mon Apr 09, 2018 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Investing with a 10 year horizon
Replies: 12
Views: 1034

Re: Investing with a 10 year horizon

This is hard to answer without some additional context: What happens if it takes you 12 years rather than 10? Or 8 years? Is 10 a magic number? What are the chances that you will not be able to invest in the business in 10 years (or that you will not want to...)? What portion of your net worth are w...
by Tal-
Mon Apr 09, 2018 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Hold or sell rental property? Better for taxes to sell during retirement?
Replies: 10
Views: 770

Re: Hold or sell rental property? Better for taxes to sell during retirement?

A few things to consider: 1: Taxes on a rental sale are almost always lower if sold during retirement. This is because the taxes from the sale of a rental property (both deferred income and cap gains) depend on other sources of income (e.g. W2 income). 2: However, she's in a low tax bracket this yea...
by Tal-
Sat Apr 07, 2018 5:05 pm
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 11374

Re: What is your AA, given your age? and, Why?

I'm 41, wife is 43. Our allocation is 100% stocks : 0% bonds. We've stuck to that allocation since we started saving seriously in 2006. We plan to stick with it till we die. Our reasons for doing so: - Stocks will almost certainly outperform bonds by a huge margin over horizons longer than 30 years...
by Tal-
Sat Apr 07, 2018 11:28 am
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 11374

Re: What is your AA, given your age? and, Why?

Mid/Late 30's. 75% stock. Why? Our time horizon is still huge, and I believe that stocks will outpace bonds over the next 30 years. Actually, I'd be happy to go more aggressive, but the wife is more conservative than I am, and I'm not confident enough in my own predictions to differ from the expert ...
by Tal-
Sat Apr 07, 2018 2:15 am
Forum: Personal Finance (Not Investing)
Topic: Any advice for 1st time landlord
Replies: 42
Views: 3246

Re: Any advice for 1st time landlord

We have a few rentals. Here are our thoughts: 1: Hire a property manager. You may not need one long-term, but start with one for a year or two. Actually, get a CPA as well. 2: Keep a huge cash reserve, in addition to your personal emergency fund. So that you: 3: Don't sweat the small stuff. Things w...
by Tal-
Fri Apr 06, 2018 6:14 pm
Forum: Personal Consumer Issues
Topic: How often do you replace your office shoes?
Replies: 58
Views: 3468

Re: How often do you replace your office shoes?

Every 12 months, give or take.

I buy fairly inexpensive shoes, wear them 4 days a week, and don't take care of them.

After reading this thread, I now feel wasteful. :(
by Tal-
Fri Apr 06, 2018 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Keep it simple for me...please!
Replies: 12
Views: 2117

Re: Keep it simple for me...please!

Well done so far!!! Based on what you've said, here are my thoughts: 1. Is it better for me to keep adding to my money market account so I can save up for larger home repairs that will come in the years to come…or should I contribute more to my 401K, or put it in the Roth? I'd go with a Roth IRA. 2....
by Tal-
Thu Apr 05, 2018 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: Large Single Stock Position - Can't Sell - Retirement Account
Replies: 45
Views: 3062

Re: Large Single Stock Position - Cant Sell - Retirement Account

For most asset allocation contexts, I say count it, but it's obviously on the stock side of your allocation. If you would naturally be 70% stock and 30% bonds, go 10% XYZ and 60% other stock - but stay at 30% bonds. Depending on how segmented the stock portion of your portfolio is, I would reduce ot...
by Tal-
Thu Apr 05, 2018 3:10 pm
Forum: Investing - Theory, News & General
Topic: Notes on Monte Carlo simulation
Replies: 8
Views: 1200

Re: Notes on Monte Carlo simulation

A fun post that got me thinking. Thank you. Here are my thoughts: A MC stimulation can be a misleading tool to look at financial projections. This is because the inputs that go into the model have huge impacts on the outputs of the model. If memory serves, a MC assumes that the data points from the ...
by Tal-
Mon Apr 02, 2018 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Planning to trade car with my friend. Need bogleheads' wisdom
Replies: 22
Views: 1846

Re: Planning to trade car with my friend. Need bogleheads' wisdom

I may be a stick in the mud, but Tal votes no. I'll sidestep the frivolous nature of cars in this price range, and the huge red flag of the "beyond my means" comment, and the implication of living in a house where your neighbor is also making a similar purchase (implying that your home may be a fina...
by Tal-
Fri Mar 23, 2018 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Politics of Internal Promotion & Interviewing at Other Companies
Replies: 13
Views: 1129

Re: Politics of Internal Promotion & Interviewing at Other Companies

Don't bluff, but you can be transparent. After receiving an offer from your current employer, I would say something like, "this is where I want to work, and you're my top choice. But, the offer that you gave me is quite a bit lower than what I received from a few other employers. What can we do to b...
by Tal-
Wed Mar 21, 2018 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Math question to buy new car: pay full, 0% 36 months, 0.9% 60 months
Replies: 35
Views: 2428

Re: Math question to buy new car: pay full, 0% 36 months, 0.9% 60 months

There aren't any bad options here. Mathematically, you only need to return something like 1.3% to break even on a 750 discount after 3 years, or 1.6% for the five year option. This better than treasury bonds (~2.5%) and is lower than the expected returns from a diversified portfolio. With that said,...
by Tal-
Tue Mar 20, 2018 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity
Replies: 13
Views: 1029

Re: Annuity

When you bought the annuity presumably it served some purpose in your life. I am surprised at some of the rapid-fire responses I've seen above. As I understand it, what you have is providing you with a "guaranteed' regular income that is better than a CD-ladder or similar would provide. It particip...
by Tal-
Tue Mar 20, 2018 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Sold house, trying to decide what to do with equity
Replies: 11
Views: 922

Re: Sold house, trying to decide what to do with equity

I would go with door #2, with a little bit of door #3 thrown in. I would max the Roth IRAs first. These are obviously great tools, but money you put into a Roth can be tapped without penalty or tax if dire circumstances arise, and you blow through your 3 months EF. More likely, this money would stay...
by Tal-
Mon Mar 19, 2018 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Buy bonds or pay down mortgage
Replies: 19
Views: 1454

Re: Buy bonds or pay down mortgage

Mortgage of $370k left at 4.375% In my other thread, people are recommending I buy more bonds for my advanced age (44) However wondering if it might just be more prudent to put say $20k into mortgage vs another $20k into FSITX? I would anticipate interest rates to increase gradually...and looks lik...
by Tal-
Mon Mar 19, 2018 11:41 am
Forum: Personal Consumer Issues
Topic: 2018 Forester vs CRV vs RAV4
Replies: 122
Views: 11556

Re: 2018 Forester vs CRV vs RAV4

I'm a vote for the CRV. I normally love Toyotas, but I found the Rav4 to be very disappointing. The interior felt cheaply made, and the car felt like it was designed for someone of only one height. My wife, who is short (5 ft) could not find a good combination of the seat/wheel/door/etc. Not a fan. ...
by Tal-
Mon Mar 19, 2018 9:21 am
Forum: Personal Consumer Issues
Topic: Paging BH Gearheads: Reasonable Net Worth for Exotic
Replies: 104
Views: 6448

Re: Paging BH Gearheads: Reasonable Net Worth for Exotic

This is hard to answer because a 250K purchase with many more K in annual obligations is a big decision that will impact all other parts of your financial life - and we only have a glimpse into yours. But, here are a few considerations: 1: I strongly encourage you to treat the purchase as having zer...
by Tal-
Thu Mar 15, 2018 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: First Post: Fees question
Replies: 10
Views: 861

Re: First Post: Fees question

Thank you all for the answer and the great reference material. I've been lurking/educating myself for some time now. What triggered the question was my advisor's intent to add a fee (<1% AUM). Prior to now, income realized via 12B-1(0.25%) was sufficient. He stated this is due to the fiduciary chan...
by Tal-
Thu Mar 15, 2018 2:22 pm
Forum: Personal Consumer Issues
Topic: Tires on a 15 year old car....Replace or not?
Replies: 79
Views: 5123

Re: Tires on a 15 year old car....Replace or not?

Psyayeayeduck wrote:
Thu Mar 15, 2018 8:35 am
Never skimp on anything that is between you and the ground. This includes, but not limited to, beds, shoes, and tires.
This quote made me happy. It also happens to be true :)
by Tal-
Mon Mar 12, 2018 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Property Sale - Tax Implications
Replies: 8
Views: 849

Re: Rental Property Sale - Tax Implications

He is simply wrong about this, assuming you have calculated the numbers correctly. In the no gain/no loss situation there is no recapture. Specifically, the definition of Unrecaptured Section 1250 gain in section 1(h)(6) explicitly requires a taxable gain for the recapture provisions to apply: "The...
by Tal-
Sun Mar 11, 2018 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: unable to claim Sch E loss for rental. 8582 limitation
Replies: 10
Views: 784

Re: unable to claim Sch E loss for rental. 8582 limitation

The short answer is, I'm not sure. I think that you can use those losses to offset other gains, but I could be off on that. The longer answer is: Why do you have a rental that has consistent losses? I don't mean to pry, but even after depreciation and expenses, most of my property run in the black e...
by Tal-
Sun Mar 11, 2018 12:56 am
Forum: Personal Finance (Not Investing)
Topic: Purchasing a Very expensive home in HCOL Area
Replies: 42
Views: 5626

Re: Purchasing a Very expensive home in HCOL Area

I feel like there's some info missing here, and it's hard to weigh in without a better understanding of your income, expenses, and assets.

OP - can you provide clarity on these?
by Tal-
Sat Mar 10, 2018 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: Can I take an 85+% pay cut for fun?
Replies: 80
Views: 9095

Re: Can I take an 85+% pay cut for fun?

No. I'm sorry, but in my opinion, you can't afford to do it.

If you were willing to spend less, sure. But those numbers simply aren't strong enough to justify that lifestyle, this early in life, with that little income.

Sorry for voting in the no camp :(
by Tal-
Sat Mar 10, 2018 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: [Can someone not named in a trust see its contents?]
Replies: 26
Views: 1569

Re: are lawyers allowed to look into trusts?

Talk to a lawyer licensed in your state, not anonymous Bogleheads. I hate to say it, but the answer really is that simple. You need an attorney. With that said, one of the first questions I'd ask is if you can pay the attorney exclusively out of the trust - and how that would effect both your and y...
by Tal-
Sat Mar 10, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Amount saved by age
Replies: 58
Views: 8226

Re: Amount saved by age

The most common numbers you'll see are 15% - 20%, meaning you should be saving this much per year. To your point, there is huge variability in this, but that's a common range that is probably relevant for a 29 year olds. Note that I feel that 20% - 25% is far far far better, but I'm also conservativ...
by Tal-
Thu Mar 08, 2018 4:37 pm
Forum: Investing - Help with Personal Investments
Topic: Would YOU retire
Replies: 67
Views: 8789

Re: Would YOU retire

I tend to be conservative on the "can I retire now" question, so take this for what it's worth. It's close... Pros: *Pensions (two of them!) *Little/no debt *$2M+ in investable assets is a good bucket of cash *Your high income target suggests that you could take less than that if needed, and still b...
by Tal-
Thu Mar 08, 2018 10:52 am
Forum: Personal Finance (Not Investing)
Topic: To sell or not sell rental home?
Replies: 7
Views: 572

Re: To sell or not sell rental home?

Sell. When you factor in vacancies, or your time, or minor repairs, or just about anything else, you're cash flow negative both on an annual, and multi-year basis. And, even when you factor in reasonable appreciation, debt pay-down, and taxes, I can't imagine that keeping it would generate even a vi...
by Tal-
Thu Mar 08, 2018 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford a 760K home
Replies: 32
Views: 2906

Re: Can we afford a 760K home

I think you can afford either the apt you're in, or the house in the suburbs. Not both.
by Tal-
Tue Mar 06, 2018 12:17 am
Forum: Investing - Help with Personal Investments
Topic: Just out of college, new job w/ 401k
Replies: 18
Views: 1485

Re: Just out of college, new job w/ 401k

Congrats on your start! My suggestions: For now, I would actually invest 100% into Vanguard's total stock market index. I tend to say that diversifying is primarily for security, but security doesn't matter all that much when you have $500 invested. So, for simplicity, I think you're good with all y...
by Tal-
Tue Feb 27, 2018 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 16558

Re: Defining "House Poor"

House Poor: The inability to responsibly sustain a standard of living (and saving) that is commensurate with your house.
by Tal-
Tue Feb 27, 2018 9:46 am
Forum: Personal Consumer Issues
Topic: Strategies for getting out of a car dealership quickly?
Replies: 78
Views: 6955

Re: Strategies for getting out of a car dealership quickly?

Thanks so much for all the input! I'm happy to report that it was not as difficult as I anticipated. I told my kids to bring some books and games along since we might be waiting for a while, and we went to the dealership last night. They gave me a form to fill out, and I asked them for a copy so th...
by Tal-
Mon Feb 26, 2018 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: Australian with a $6m portfolio mess!!
Replies: 15
Views: 2503

Re: Australian with a $6m portfolio mess!!

My thoughts: 1. If we wanted to convert our cash into equities, how long should we drip the lump sum over i.e. how long to average the cash into the market? Normally, the answer to this question is "all at once" - but given the amount of cash that you have, and how unimportant optimizing returns see...