Search found 307 matches

by Tal-
Fri May 25, 2018 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: should I buy or rent
Replies: 18
Views: 1105

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: 28
Views: 3458

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: 3834

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: 3834

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: 3834

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: 1467

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: 3488

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: 6302

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: 2773

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: 6575

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: 1015

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...
by Tal-
Tue May 15, 2018 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Am I working with the wrong realtor?
Replies: 22
Views: 2643

Re: Am I working with the wrong realtor?

Your agent didn't do anything wrong. Proactively pursing a house under contract is not a good idea for anyone involved. It's not good for the seller because it can be viewed as negotiating after they have already come to terms on a contract (many sellers ask for no more showings once under contract)...
by Tal-
Fri May 11, 2018 8:08 am
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6556

Re: Factors Suggesting One Should Buy SPIA

Jim Otar discusses that in his book. Basically the conclusion is that annuities are most applicable in the "gray" area where withdrawals from portfolio are just able to cover expenses, say right at the infamous 4% rule. People withdrawing less don't need an SPIA and people trying to withdraw more a...
by Tal-
Thu May 10, 2018 2:24 pm
Forum: Investing - Theory, News & General
Topic: Got a Question for the Experts Panel at the Bogleheads Conference?
Replies: 18
Views: 4787

Re: Got a Question for the Experts Panel at the Bogleheads Conference?

What role should market valuations (relative to historical norms) play in such safe withdrawal rate assumptions such as the 4% rule?
by Tal-
Tue May 08, 2018 9:08 am
Forum: Investing - Help with Personal Investments
Topic: Young investor, any advice?
Replies: 9
Views: 842

Re: Young investor, any advice?

You're off to a good start. Props! A few thoughts: 1: Yes - transferring from EJ should be a priority. But, it's important to remember that the adviser may not be a bad guy/girl - this is simply a business decision. And, you will always be your own Chief Financial Officer. 2: Find a way to bump your...
by Tal-
Mon May 07, 2018 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Minimizing Capital Gains on Inheritance
Replies: 12
Views: 1467

Re: Minimizing Capital Gains on Inheritance

Our situation: My spouse is still working and earns about $96,500. We have one child. She has about $10,000 in qualified dividends per year; myself about $15,000. We have about $1500 in interest and $1000 in short-term gains annually split roughly evenly. The stock inheritance represents about 20% ...
by Tal-
Sun May 06, 2018 8:37 pm
Forum: Investing - Theory, News & General
Topic: A company that grows 5% per year vs. a company that grows 10% per year
Replies: 9
Views: 1060

Re: A company that grows 5% per year vs. a company that grows 10% per year

(I don't understand what you're trying to learn from this thought exercise.) Can future growth ever truly accurately be priced in to the current price of the company. Nine times out of 10, it seems like the higher a company's past growth is, the more it's future growth is underestimated. You think ...
by Tal-
Sun May 06, 2018 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Are bonds necessary/beneficial in my situation?
Replies: 21
Views: 2037

Re: Are bonds necessary/beneficial in my situation?

You're right, I've never lived through any giant correction. I can't positively say that I'll act one way or another, but I do confidently think that I'd do what the accepted "best route" is which is stay the course. I THINK that I'm almost sure I would, and can't even imagine myself doing anything...
by Tal-
Sun May 06, 2018 2:43 am
Forum: Investing - Help with Personal Investments
Topic: Are bonds necessary/beneficial in my situation?
Replies: 21
Views: 2037

Re: Are bonds necessary/beneficial in my situation?

First, congrats. That's an awesome financial story for a 29 year old. Hell, it's a pretty awesome story for a 55 year old... :) At first blush, I think you do need to avoid a 100% stock allocation. You're right - on average, returns are higher as you have a higher allocation of stocks (relative to b...
by Tal-
Sun May 06, 2018 2:29 am
Forum: Investing - Theory, News & General
Topic: A company that grows 5% per year vs. a company that grows 10% per year
Replies: 9
Views: 1060

Re: A company that grows 5% per year vs. a company that grows 10% per year

I think you're confusing the value of an individual stock, with a company's total value. If Company A has 10 stocks outstanding, the value of that company is $1000. That is the key number. Now, you can think of your $100 as buying 10% of the company. Note that this is true if stock price were $5, bu...
by Tal-
Fri May 04, 2018 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: Rental Property as Investment
Replies: 12
Views: 664

Re: Rental Property as Investment

I'm a big fan of real estate and own several rentals myself. But I would never (ever!) do something like this!!!! Lots and lots of reasons around this. It's complicated, with ongoing complications in taxes, decision-making, exiting, etc. It's inflexible. It confuses friendship with money with time w...
by Tal-
Wed May 02, 2018 2:15 pm
Forum: Personal Consumer Issues
Topic: Are bonus and equity pro-rated at lay off?
Replies: 16
Views: 1565

Re: Are bonus and equity pro-rated at lay off?

Bonuses will rarely be paid, or pro-rated at lay off. As other mentioned, it will depend on the plan - but that's extremely rare.

I can't speak to equity.
by Tal-
Wed May 02, 2018 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Services that offer to buy your house?
Replies: 22
Views: 2463

Re: Services that offer to buy your house?

What kind of research or preparation should be done before contacting or dealing with these people? First, I want to echo the comments above. Do not sell your house in this way! There is no harm or shame in listing a fixer-upper house on the open market. Second, you asked about research. These buye...
by Tal-
Tue May 01, 2018 3:18 pm
Forum: Personal Consumer Issues
Topic: Maple syrup
Replies: 59
Views: 4935

Re: Maple syrup

wilked wrote:
Sun Apr 29, 2018 7:33 am
Looks like amazon best price is $60/gal
I'd wage Costco will sell it in 50 gallon barrels...
by Tal-
Mon Apr 30, 2018 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: 401K vs Rental Property
Replies: 14
Views: 1006

Re: 401K vs Rental Property

I own several rentals that have treated me well. So, I'm probably bias... I think you have 3 options: 1: Pay off mortgage. This isn't typically thought to be the most efficient use of your money, but is also a guaranteed return and a big psychological win. I can't fault you for doing this. 2: Invest...
by Tal-
Fri Apr 27, 2018 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Buy or build
Replies: 21
Views: 1495

Re: Buy or build

I encourage you to spend 1 day looking at houses in the ~650K range. You most likely will not find anything that's better than your designed build, but even that would be an important data point.

Yes, you can afford to build. The question now is simply if it's the best fit (and it probably is).
by Tal-
Thu Apr 26, 2018 9:01 am
Forum: Personal Consumer Issues
Topic: Wedding - financial burden on couple and attendees
Replies: 168
Views: 10224

Re: Wedding - financial burden on couple and attendees

Pair the destination wedding with a "reception" in the hometown, after the honeymoon. This makes it easy for people who can't join the wedding to feel welcomed, gives people who can't go an "out", and lets everyone control costs. Make the reception at home super informal - Costco sandwiches at someo...
by Tal-
Thu Apr 26, 2018 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Applying for 2 life insurance policies at the same time
Replies: 4
Views: 516

Re: Applying for 2 life insurance policies at the same time

This seems like a lot of work to me. Sure - in theory - you probably control for a little bit of risk by using two companies instead of one. But the chances of that risk happening seem very small. So, this may be more of a perceived benefit than an actual one. Having two policies is also more work, ...
by Tal-
Wed Apr 25, 2018 8:32 am
Forum: Personal Finance (Not Investing)
Topic: How to be a good executor to family
Replies: 44
Views: 3405

Re: How to be a good executor to family

I'm not the OP, but I do have a related question: How transparent should you be on bad news, and how? For example, if I'm deciding person A gets something that person A and B both want, is it fair to send a single email including both with your reasoning, which may not resonate well with person B (f...
by Tal-
Wed Apr 25, 2018 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Who benefits from "best and final offer" on condo?
Replies: 107
Views: 5983

Re: Who benefits from "best and final offer" on condo?

While "best and final" as described may not have ended with the highest possible sale price, it still could have been to the benefit of the sellers: 1) They have a time constraint on when they need to accept offer 2) They believe it is important to keep their implied word in terms of "best and fina...
by Tal-
Thu Apr 19, 2018 12:32 am
Forum: Personal Consumer Issues
Topic: Buy rental property out of state !
Replies: 16
Views: 1402

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: 5677

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: 1482

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: 1482

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: 1482

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: 669

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: 1288

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: 660

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: 272

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: 462

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: 4125

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: 1155

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: 1155

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: 1169

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: 520

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: 1157

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: 1296

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: 1157

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...