Search found 192 matches

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: 21
Views: 1004

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: 23
Views: 978

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: 25
Views: 2057

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: 77
Views: 6055

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: 5403

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: 7295

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: 7295

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: 8092

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: 1310

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: 3472

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: 3303

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: 1593

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: 5352

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: 381

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: 3460

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: 7831

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: 1739

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: 1312

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: 3046

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: 11686

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: 3356

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: 6437

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: 175
Views: 18309

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: 2006

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: 277

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: 2120

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: 160
Views: 14948

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: 2176

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: 3585

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: 5439

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 ...
by Tal-
Wed Aug 23, 2017 12:09 am
Forum: Investing - Help with Personal Investments
Topic: Financing new home purchase
Replies: 17
Views: 1289

Re: Financing new home purchase

First, I'll echo the comments above. It's hard to provide specific thoughts without specifics on the situation. And, there is a tone to your post that make me think that this is stretching you a bit thin. Are you sure you can afford this? With that said, here are my thoughts: Assuming you'll sell yo...
by Tal-
Thu Aug 10, 2017 12:07 am
Forum: Personal Finance (Not Investing)
Topic: I pay $6K in rent. Am I an idiot for not buying?
Replies: 50
Views: 6952

Re: I pay $6K in rent. Am I an idiot for not buying?

Since you are such a high earner I would probably keep doing what I'm doing until life circumstances change. Then re-evaluate if you want to keep renting or buy at that point. Given your income I don't think you've got too much to worry about in terms of real estate cycles. Also since you're likely...
by Tal-
Wed Aug 09, 2017 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: Opinions Needed - Are We Good?
Replies: 32
Views: 3040

Re: Opinions Needed - Are We Good?

Enter those inputs into any calculator out there, and they will say that you can retire. But, I'm not sure that I'm buying it. And, I worry that if you retire now, you'll find yourself in a rough spot in 15 years. If I'm you, I would make myself a deal. If you can live off 50K/year for two years, fo...
by Tal-
Wed Aug 09, 2017 11:38 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell my rental property?
Replies: 15
Views: 2170

Re: Should I sell my rental property?

It's a complicated question. Obviously, the yield on your rental is pretty weak. If you were just looking to preserve capital, that would be fine, but given that you don't own your own home (but would like to), I think that money needs to work harder for you. I'm also very uneasy with so much money ...
by Tal-
Tue Jun 13, 2017 8:30 am
Forum: Investing - Help with Personal Investments
Topic: Variable Life Insurance as an Investment Vehicle
Replies: 39
Views: 3030

Re: Variable Life Insurance as an Investment Vehicle

As a general statement, I try and believe that there are no bad investments, only bad fits for situations. Insofar that this is true, a variable life insurance policy for you is not a good fit. If you were sitting on $2M in your taxable accounts and has real concerns about life insurance needs (i.e....
by Tal-
Mon Jun 12, 2017 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Property Repairs - Whose to Pay?
Replies: 32
Views: 3448

Re: Rental Property Repairs - Whose to Pay?

Landlord with more than half-a-dozen rentals. The carpet is a pretty clear if/then. If the lease specifies that they will pay for it, then the outcome is clear. If the lease is silent on this, giving the carpets a deep clean would be expected as normal use, and I feel strongly that you should not ch...
by Tal-
Fri Jun 09, 2017 11:24 pm
Forum: Investing - Help with Personal Investments
Topic: How to divide investments for early retirement
Replies: 16
Views: 2454

Re: How to divide investments for early retirement

Don't lose sight of the forest through the trees. At this point, I think that your priority should be saving for a long-term retirement. And tax advantaged accounts like your IRA/401k are clearly the best choices. Stick with those. These accounts also several options to access the money before 59.5....
by Tal-
Wed Jun 07, 2017 8:29 am
Forum: Personal Consumer Issues
Topic: My Wife is having our 5th child. What is an appropriately extravagant push gift?
Replies: 90
Views: 8573

Re: My Wife is having our 5th child. What is an appropriately extravagant push gift?

While not entirely foreign, this idea does strike me as odd. I can't imagine a new mother, with a new baby, getting excited about opening a gift. That's not to say that these aren't great ideas - only that any object seems trivial to me at this point. With that said, if the wife is expecting it... I...
by Tal-
Sat Apr 22, 2017 8:57 am
Forum: Personal Finance (Not Investing)
Topic: IRS refund today!
Replies: 43
Views: 4116

Re: IRS refund today!

I was expecting a refund, but got a call from the IRS that there was a big problem with my return. Turns out, I owed $5K in back taxes, and would be picked up by the sheriff if I didn't pay that day. Thankfully, once I verified my SSN, my wife's SSN, my credit card info and bank info, I was able pay...
by Tal-
Tue Apr 18, 2017 3:37 pm
Forum: Personal Consumer Issues
Topic: Best cruise
Replies: 50
Views: 4609

Re: Best cruise

If budget is a big factor (and it sounds like it is), I'd narrow your search to cruises in and around the US. The two most popular (and generally, best) options are the Caribbean if you like blue water, warm weather and sandy beaches, and Alaska if you like nature, wildlife, trees, and mountains. No...
by Tal-
Mon Apr 17, 2017 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Dissect my plan
Replies: 10
Views: 619

Re: Dissect my plan

As mentioned above, I think the best use of that excess cash is to chip away at the student debt. Overall, it seems like you're in pretty good shape. But, I'm not sure about the 100/month for your daughter going into a Wealthfront account in her name. Setting aside cash for her is probably a good th...
by Tal-
Fri Apr 14, 2017 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Should I pay off these loans?
Replies: 24
Views: 2665

Re: Should I pay off these loans?

If I can rephrase your question: Should you pay off your other debt before you buy another house? Without knowing more, I feel like the obvious and correct answer is yes.

Would you agree?
by Tal-
Fri Mar 24, 2017 9:47 am
Forum: Investing - Help with Personal Investments
Topic: Consolidating old 401ks question
Replies: 6
Views: 450

Re: Consolidating old 401ks question

To verify:

She contributed to her 401k in two different ways - in part as a traditional 401k (pre-tax) and in part as a Roth 401k (post-tax). Is that 100% accurate?
by Tal-
Wed Mar 22, 2017 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Series 65 Volunteer Advising?
Replies: 33
Views: 2492

Re: Series 65 Volunteer Advising?

With that said, there are risks. Because you have a 65, you actually *can't* say a bunch of stuff that you otherwise could. This is where compliance support would help. And, even if you're fully compliant and do everything right, you still run the risk of being sued. Can someone elaborate on this? ...
by Tal-
Tue Mar 21, 2017 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: I would appreciate comments on my asset allocation.
Replies: 18
Views: 1628

Re: I would appreciate comments on my asset allocation.

I'm actually not a fan. I don't especially mind the 50/50 allocation or the small/mid cap tilt - but the two seem incompatible to me. Your stock/bond allocation suggests conservative investing, which is fine. Your stock portfolio suggests aggressive investing, which is also fine. At first glance, yo...
by Tal-
Tue Mar 21, 2017 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Series 65 Volunteer Advising?
Replies: 33
Views: 2492

Re: Series 65 Volunteer Advising?

I must admit that when I read the initial post, I thought it was a crazy idea. But as I research this, it's not all-together absurd. I'm pretty sure that sponsorship was required for a 65 for a long time, but my read is that sponsorship is no longer required. I also believe that a 65 would let you l...
by Tal-
Mon Mar 20, 2017 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: rental property expense question
Replies: 12
Views: 1709

Re: rental property expense question

I have my taxes done, in large part so I don't need to know this level of detail. With that said, to me, that sounds an awful lot like an improvement, and thus, capital. And, I would have figured that you can't segment out labor from parts. Meg knows this type of thing better than me - but that's my...
by Tal-
Mon Mar 20, 2017 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 57
Views: 5801

Re: Advice: Overextending by buying? How much house to buy?

Rent. Simply put, you can't afford a $2M house. That's true because of your income. It's true because you can't afford the down payment. It's true because it would kill your liquidity. It's true because it would introduce huge risk at a time in your lives where you don't need to take on that much ri...
by Tal-
Mon Mar 13, 2017 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: Another rent versus buy - moving from MCOL to VHCOL
Replies: 15
Views: 1700

Re: Another rent versus buy - moving from MCOL to VHCOL

With a big move like that I would rent for a year regardless of the "rent vs buy" numbers. That will give you a year to decide if you really want to stay there and to learn more about the area and the local housing market. Be sure to check on the tax details of the zero percent loan. I wo...
by Tal-
Mon Mar 13, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: How to tackle fiancee's student loan debt
Replies: 33
Views: 3278

Re: How to tackle fiancee's student loan debt

I think that my thoughts would vary drastically based on your relationship and specific plans with your fiance. Assuming that you are planning to be married for life, and plan to have joint finances, the time around marriage is when you start to merge finances. If you end up doing this a month or tw...