Search found 582 matches

by 9-5 Suited
Sun Sep 13, 2020 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone have a Net Worth in the 1% by age?
Replies: 42
Views: 5033

Re: Anyone have a Net Worth in the 1% by age?

Most of those who reach the 1% appear to be very successful entrepreneurs and business executives. With a small side helping of successful law partners and specialist-field docs. But yep, substantial ownership share of a business, big or small, is almost certainly the most common. As it should be.
by 9-5 Suited
Sun Sep 13, 2020 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone have a Net Worth in the 1% by age?
Replies: 42
Views: 5033

Re: Anyone have a Net Worth in the 1% by age?

I guess I can technically answer this until I turn 35 in a few months and get evicted from qualification :D

DINK couple with good corporate career success, minimal student debt, and a high savings rate. Exciting stuff!
by 9-5 Suited
Fri Sep 11, 2020 10:23 pm
Forum: Personal Finance (Not Investing)
Topic: Would you fire your financial advisor for this error?
Replies: 45
Views: 4653

Re: Would you fire your financial advisor for this error?

Seems like a pretty thoughtful advisor from the description. Quickly owned up and righted an error. Everyone makes mistakes, doesn’t mean they should be fired. We’d all be jobless.
by 9-5 Suited
Fri Sep 11, 2020 2:14 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation-What have you learned about yourself?
Replies: 51
Views: 3413

Re: Asset Allocation-What have you learned about yourself?

I heard this from another Boglehead poster first, but definitely one thing that sticks with me is that the right allocation is when you go back and forth between thinking you have too much vs. too little in a given asset class. I've now learned to read the noise of that oscillation as a signal that ...
by 9-5 Suited
Wed Sep 09, 2020 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: What % of income to spend on car?
Replies: 122
Views: 7938

Re: What % of income to spend on car?

About: 30m. 72k salary (not including 30-40k side income; volatile and don't like to include it). Living at home due to covid saving on rent. Networth: 230k I need a new car badly...current car is at 200k miles. I want to buy a 2018 Honda Accord 2.0t with 30-60k miles. The cost will be 22-25k. I'd ...
by 9-5 Suited
Tue Sep 08, 2020 10:35 pm
Forum: Investing - Theory, News & General
Topic: How do Bogleheads cope with FOMO? [Fear Of Missing Out]
Replies: 97
Views: 7333

Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

I think there’s something to acknowledging that some people engage is riskier strategies than you are truly comfortable with, and sometimes that pays off very well for them. Boglehead principles are very logical and suit my temperament well. But for many others that’s not the case, and some of those...
by 9-5 Suited
Tue Sep 01, 2020 11:10 pm
Forum: Personal Investments
Topic: What is your game plan as market is reaching its previous all time high?
Replies: 174
Views: 18599

Re: What is your game plan as market is reaching its previous all time high?

If it hasn’t already been mentioned, using a phrase like over-rebalance or rebalance a little more than usual is probably a good indication to just dial back the portfolio risk level going forward as the current one is too high. I see nothing wrong with 5-10% changes that happen gradually and reflec...
by 9-5 Suited
Sat Aug 29, 2020 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: At what point can you afford a 2nd home?
Replies: 46
Views: 3849

Re: At what point can you afford a 2nd home?

aside from forcing myself into one vacation location I have never known of a single person whose second home did that to them. It's not a thing. I grew up in Wisconsin where tons of middle class folks owned a second home "up north". It's a weekend getaway; vacations are taken elsewhere. 1. It is a ...
by 9-5 Suited
Sat Aug 29, 2020 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: At what point can you afford a 2nd home?
Replies: 46
Views: 3849

Re: At what point can you afford a 2nd home?

While a second home is a sizable purchase, the definition of can you afford it really applies similarly to all purchases. Do you have the money to pay for it or a high likelihood of being able to earn the money to pay for it soon? If so, then it is “affordable”. Only you can determine if it’s a wise...
by 9-5 Suited
Sat Aug 29, 2020 9:21 pm
Forum: Investing - Theory, News & General
Topic: “Cash is king” sentiment
Replies: 37
Views: 4110

Re: “Cash is king” sentiment

I'm periodically blown away at how much cash some hold. A recent poster's investment portfolio was 26% cash. :shock: At any given time, between 30 and 35 per cent of my liquid assets are in cash. 30% stock, 40% bond, 30% cash. To answer OP's question, I'm one of the "cash is king" people. Why? I gr...
by 9-5 Suited
Sat Aug 29, 2020 3:42 pm
Forum: Investing - Theory, News & General
Topic: “Cash is king” sentiment
Replies: 37
Views: 4110

“Cash is king” sentiment

I’ve seen a few dozen references from forum members to the phrase “cash is king” as part of their investment philosophy. I’m curious about two things from those who feel this way: 1. Are there particular life experiences you feel have contributed to this belief? 2. What specifically does the phrase ...
by 9-5 Suited
Sat Aug 29, 2020 3:26 pm
Forum: Personal Investments
Topic: Talk me out of it: Cashing out 401(k) / IRA early to move abroad
Replies: 12
Views: 1393

Re: Talk me out of it: Cashing out 401(k) / IRA early to move abroad

If you are ok accepting the withdrawal penalties and have a good plan to fund your living expenses moving forward, it’s okay to pursue your goals in a manner that isn’t financially optimal. There’s certainly more to life than that. And without discussing the political particulars, I would only add t...
by 9-5 Suited
Sat Aug 29, 2020 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Should I quit high paying job?
Replies: 76
Views: 8485

Re: Should I quit high paying job?

This can be a good situation for you. Show up to work, do a good job during working hours as a steward of the company, don’t spend any more time at work or thinking about work than is required, and become a professional job seeker getting paid $290K to look around. With the right attitude and willin...
by 9-5 Suited
Fri Aug 28, 2020 4:25 pm
Forum: Personal Investments
Topic: Financial Advisor (Morgan Stanley) wants to end relationship with ("fire") my grandfather
Replies: 62
Views: 6774

Re: Financial Advisor (Morgan Stanley) wants to end relationship with ("fire") my grandfather

Firing a $3m account is surprising to me. There is a sequence of events there of first bailing out of the AUM contract and then coming back and asking for advising. But even then it seems like "firing" a client is an extreme step for a corporate operation like that. It is hard to figure what burden...
by 9-5 Suited
Mon Aug 24, 2020 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Quit corporate job @ age 34 with $1.3M?
Replies: 225
Views: 21817

Re: Quit corporate job @ age 34 with $1.3M?

I’m a “padder” as are seemingly many who are responding suggesting you build up an extra buffer against catastrophe. But honestly I don’t think that conservatism needs to be projected to everyone, and I like your plan. I bet your side hustle can also generate more than you think as you build it up o...
by 9-5 Suited
Mon Aug 17, 2020 11:59 pm
Forum: Investing - Theory, News & General
Topic: Advice to a Millennial about nest egg "Critical Mass"
Replies: 150
Views: 16805

Re: Advice to a Millennial about nest egg "Critical Mass"

Not sure the "magic" will continue to work for young people today... Agree, personal experience seems to rely on 40 years in which long term interest rates fell from 12.5% to 1.4%, pushing up the valuation of all assets. Next 40 years won't be anything like this. LBYM is still good advice, of cours...
by 9-5 Suited
Sat Aug 15, 2020 9:18 am
Forum: Personal Investments
Topic: Best financial gift to give a newborn child
Replies: 47
Views: 4546

Re: Best financial gift to give a newborn child

UTMAs have always struck as a bit high-risk just to get some special tax treatment. I don’t have kids, but if I did I’d want to make sure any money I was giving them was delivered in a time and manner that was going to benefit their life. Once you lose control of that account when they become an adu...
by 9-5 Suited
Sat Aug 15, 2020 8:40 am
Forum: Personal Investments
Topic: Terrible experience with Ally bank- buyer beware
Replies: 144
Views: 9164

Re: Terrible experience with Ally bank- buyer beware

That really sucks. You weren’t penny wise and pound foolish though. This is a very rare and unpredictable experience. You did everything right and had a terrible outcome. It’s an example also of why I feel OK doing business with Bank of America for my non-investing banking needs. They’ve got their o...
by 9-5 Suited
Sat Aug 15, 2020 12:08 am
Forum: Investing - Theory, News & General
Topic: Vanguard paper on its investors who moved to all-cash during the pandemic
Replies: 61
Views: 7674

Re: Vanguard paper on its investors who moved to all-cash during the pandemic

Not necessarily, and not for everyone. Well then you'll have to let us know when it is a good time to completely divest. Jack said never. That’s easy. When you are not in a position to bear the risk of loss. When an investor is not in a position to bear the risk of loss they turn their imaginary lo...
by 9-5 Suited
Sun Aug 09, 2020 1:09 pm
Forum: Investing - Theory, News & General
Topic: What if I have to fund more of my retirement myself?
Replies: 24
Views: 2809

Re: What if I have to fund more of my retirement myself?

If you are worried about this, I would assume you will receive 75% of your expected pension/SS values as a “bad case” scenario and then set an asset allocation with the rest of the money that allows you a high probability of achieving your desired annual expenses less the pension/SS. And ideally an ...
by 9-5 Suited
Sat Aug 08, 2020 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: Access to e-bills in joint checking: separate logins
Replies: 24
Views: 1223

Re: Access to e-bills in joint checking: separate logins

A bank representative told me that they would consider it fraud for us to use only one login for our joint accounts, and that they would not support us if a problem arose while we had only one. Fairly typical terms of service for online accounts - especially individually owned ones. We have set up ...
by 9-5 Suited
Mon Aug 03, 2020 9:37 am
Forum: Non-US Investing
Topic: Do you include your house in your portfolio?
Replies: 36
Views: 2956

Re: Do you include your house in your portfolio?

I don't calculate net worth, because it's not a meaningful number. I only consider investment assets, and I don't consider our home an investment asset. Our home is also relatively low in value compared to our investment assets. If I did include it, home equity would be maybe 12% of our portfolio. ...
by 9-5 Suited
Thu Jul 30, 2020 2:00 pm
Forum: Personal Investments
Topic: High net worth, volatility phobic investor seeking help
Replies: 84
Views: 5828

Re: High net worth, volatility phobic investor seeking help

I’m pretty worried about Vera being able to achieve her financial goals. She needs to go back to work. Maybe if she had saved more prudently, she could relax in a financially secure retirement.
by 9-5 Suited
Mon Jul 20, 2020 11:37 pm
Forum: Personal Finance (Not Investing)
Topic: It is okay to spend money on depreciating assets?
Replies: 51
Views: 3677

Re: It is okay to spend money on depreciating assets?

Not everybody is lucky enough to make it to 70. If you do the dollar you saved at 30 will be spent buying BENGAY at 70. Not a JetSki. The future is uncertain and the end is always near. If a JetSki will give you pleasure then you should buy it. Amen. That approach to pricing items may be theoretica...
by 9-5 Suited
Sun Jul 19, 2020 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Unexpectedly taking on parents' debt: pay it all or?
Replies: 33
Views: 4153

Re: Unexpectedly taking on parents' debt: pay it all or?

To have a few hundred thousand saved in your late twenties you must have a great career. What percent of your annual income would it take up to make all of your parents’ debt payments? If it’s a reasonable budget item for you without forcing too much insane belt tightening, I think that’s a wonderfu...
by 9-5 Suited
Sun Jul 12, 2020 1:07 am
Forum: Personal Finance (Not Investing)
Topic: Take out a new mortgage?
Replies: 11
Views: 1018

Re: Take out a new mortgage?

I realize rates are down but if you made the decision to pay off a few months ago, doesn’t seem like rates are that much lower to justify doing the exact opposite now. My old rate was 4.25%. I paid off with the possibility of taking out a new mortgage in the back of my head. When I finally ran the ...
by 9-5 Suited
Sun Jul 12, 2020 12:55 am
Forum: Personal Finance (Not Investing)
Topic: Take out a new mortgage?
Replies: 11
Views: 1018

Re: Take out a new mortgage?

You are leaving out one major factor: difference in risk. Run the two scenarios again assuming the house and stocks lose 50% of their value, just to see an extreme case. Borrowing to invest will (by definition!) always look smart if you only assume a single scenario where the investment return is hi...
by 9-5 Suited
Tue Jul 07, 2020 4:15 pm
Forum: Investing - Theory, News & General
Topic: Does Rebalancing Payoff?
Replies: 11
Views: 1141

Re: Does Rebalancing Payoff?

If you don't rebalance, it must mean that you don't care what your AA is, in which case you might as well be 100% stocks. There are multiple reasons for not having a 100% stock allocation. The ability to have something to rebalance with is probably one of the minor reasons. There are other major re...
by 9-5 Suited
Mon Jul 06, 2020 8:19 pm
Forum: Personal Consumer Issues
Topic: Thinking of buying myself a luxury item.. Is LV wallet a legit purchase?
Replies: 153
Views: 7721

Re: Thinking of buying myself a luxury item.. Is LV wallet a legit purchase?

The issue with that adage is it is a false dichotomy. I bought a $500 wallet as a personal gift for getting a new job. Our savings rate will continue to be over 40% of gross income and have a seven figure net worth. It is interesting what type of spending gets judged most heavily. A $1,000 wallet t...
by 9-5 Suited
Mon Jul 06, 2020 8:10 pm
Forum: Personal Investments
Topic: Do you ever feel you've missed out due to the 3-fund portfolio?
Replies: 125
Views: 9667

Re: Do you ever feel you've missed out due to the 3-fund portfolio?

How much did he actually make though? On quick glance TSLA is up 13%, so he made $13k for every $100k invested. Not really life changing unless he had seven figures in there. These things are very fleeting. Recently Elon tweeted (kind of humorously) that he thought Tesla stock was overvalued. It dro...
by 9-5 Suited
Mon Jul 06, 2020 4:38 pm
Forum: Personal Consumer Issues
Topic: Thinking of buying myself a luxury item.. Is LV wallet a legit purchase?
Replies: 153
Views: 7721

Re: Thinking of buying myself a luxury item.. Is LV wallet a legit purchase?

LV is $50 wallet with a $950 brand. This is my current wallet: https://www.slimfoldwallet.com/products/thin-wallet-original-tyvek?variant=30187910889603 Tyvek blocks the wind and has a good R value in my pants pocket. :D I there is an old adage about having a $20 wallet with $1,000 in it or a $1,00...
by 9-5 Suited
Sat Jul 04, 2020 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Manager vs. Direct report salary issues
Replies: 151
Views: 10416

Re: Manager vs. Direct report salary issues

It might be useful to imagine that General Managers of MLB teams sign deals almost exclusively with people who make more than them, and sometimes more than them by about 10x. It’s not really useful to judge success that way, especially in small amounts. Individual contributors with in-demand skills ...
by 9-5 Suited
Fri Jul 03, 2020 8:07 pm
Forum: Personal Investments
Topic: Share your budget progression
Replies: 14
Views: 1529

Re: Share your budget progression

As inspired by the share your net worth progression thread: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=139157 For those of you who have tracked your budget, what have you spent each year? Have only been tracking this earnestly since 2016 and started working in 2008. Total Expenses, Exclud...
by 9-5 Suited
Sat Jun 27, 2020 5:47 pm
Forum: Investing - Theory, News & General
Topic: Is there any situation where IUL is good?
Replies: 8
Views: 479

Re: Is there any situation where IUL is good?

This cycle is unfortunately common. Your friend was likely sold on this concept because she doesn’t understand it, but it sounds “smart”. She is then second hand selling it, perhaps in good faith or perhaps not, to others in her friend network. Most of the time I think the people like your friend ar...
by 9-5 Suited
Mon Jun 22, 2020 10:33 pm
Forum: Investing - Theory, News & General
Topic: Malkiel weighs in on passive investing and alternatives to the 60/40...
Replies: 39
Views: 4708

Re: Malkiel weighs in on passive investing and alternatives to the 60/40...

Dividend paying stocks like IBM in place of bonds? Man, I don’t know about this advice. How could it possibly be the case that anything other than total return matters? The uniqueness of dividends is mostly, if not entirely, an illusion. And anybody who reads that advice and buys single stocks to ge...
by 9-5 Suited
Mon Jun 22, 2020 6:49 pm
Forum: Investing - Theory, News & General
Topic: Top 10 Things Bogleheads Get Wrong - White Coat Investor
Replies: 143
Views: 13988

Re: Top 10 Things Bogleheads Get Wrong - White Coat Investor

And now for the side betting pool: which of these 10 items will become the primary debate within this thread? Dave Ramsey, ever the polarizing figure, appears to be in the early lead.
by 9-5 Suited
Fri Jun 19, 2020 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Car Loan vs Cash
Replies: 38
Views: 2634

Re: Car Loan vs Cash

New Providence wrote: Fri Jun 19, 2020 10:13 am
cal91 wrote: Fri Jun 19, 2020 10:07 am
We have 4 kids 6yrs and under
With all that action, you probably need a new mattress too. :D
Comment of the year candidate. Great laugh.
by 9-5 Suited
Wed Jun 17, 2020 10:45 am
Forum: Personal Investments
Topic: Using credit cards for leverage (no, seriously)
Replies: 53
Views: 3998

Re: Using credit cards for leverage (no, seriously)

I'll take "Ideas 99.999% of wealthy people have never concerned themselves with" for $1,000 please, Alex."

There really is such a thing as trying to be too clever, especially when the upside of the complex and risky strategy is so meh.
by 9-5 Suited
Sat Jun 13, 2020 9:59 am
Forum: Personal Finance (Not Investing)
Topic: $120,000 in credit card debt
Replies: 72
Views: 9693

Re: $120,000 in credit card debt

1A: use the windfall to pay off the debt 1B: stop the behaviors that led to the debt in the first place 2: redirect old debt payments toward an emergency fund or other investment account The windfall eases this situation significantly. You are not bankrupt and (personal opinion) anyone who suggests ...
by 9-5 Suited
Sun Jun 07, 2020 9:29 am
Forum: Investing - Theory, News & General
Topic: Markets back near all time highs - how are you feeling and path forward ?
Replies: 238
Views: 21214

Re: Markets back near all time highs - how are you feeling and path forward ?

While I wish the V shape had been more U shaped to allow for more purchasing of equities at lower prices, I’m happy about the underlying assumption of the improving market that better times may be on the horizon for all of us societally, and especially those most negatively impacted by the virus. Lo...
by 9-5 Suited
Mon Jun 01, 2020 8:48 pm
Forum: Personal Investments
Topic: Total Bond Market Index (or VAIPX) for short term cash needs?
Replies: 14
Views: 1677

Re: Total Bond Market Index (or VAIPX) for short term cash needs?

There is a 10-30% chance I may need to take a loan from my 401k in the next year. I am currently 100% in stocks in that account. Thinking of selling some of my S+P 500 index soon (since it is near all time highs) to lock in some gains. I am new to bond market investing (but have spent a few days on...
by 9-5 Suited
Mon Jun 01, 2020 8:25 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34530

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used

But what if your 300 K 80/20 also has a 200 K mortgage and 200 K in equity in their home? Certainly there are many in such a situation, perhaps the majority of people, have some debt. That portfolio is not 80/20. Almost everyone is using leverage, we just don’t think of it that way. Isn’t that also...
by 9-5 Suited
Mon Jun 01, 2020 8:16 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34530

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used

Your logic is entirely correct, and would apply perfectly to robots. The thing you aren't accounting for when you say "should never be used" is that human beings invest, and human beings have emotions. Those emotions have merit in making personal finance decisions. It can take a while to becoming a...
by 9-5 Suited
Mon Jun 01, 2020 7:47 pm
Forum: Investing - Theory, News & General
Topic: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used [vs. lump sum]
Replies: 760
Views: 34530

Re: Why Dollar Cost Averaging (DCA) is a mental accounting bias and should never be used

I think DCA makes 0 sense in any circumstance and is an entirely a mental accounting bias. Let's say today you had 300k in an 80/20 portfolio. Would you ever think, now is the time to take less risk, pull 200k out, and slowly put it back in? That's equivalent to having a 100k 80/20 portfolio and ge...
by 9-5 Suited
Sat May 30, 2020 8:02 pm
Forum: Investing - Theory, News & General
Topic: What Is the Stock Market Even for Anymore?
Replies: 25
Views: 3781

Re: What Is the Stock Market Even for Anymore?

Weird strawman argument. Perhaps one lesson this crisis can reinforce is that we should stop thinking of the stock market as a barometer of national prosperity. Maybe it served that function in the past, but it doesn’t now. Instead, the market has become an emblem and engine of American inequality....
by 9-5 Suited
Wed May 27, 2020 9:02 pm
Forum: Investing - Theory, News & General
Topic: Swedroe’s Bond Advice - no total bond index
Replies: 195
Views: 17353

Re: Swedroe’s Bond Advice - no total bond index

The investor may have OTHER risks (e.g. inflation risk, shortfall risk, etc.), but matching bond duration to investment horizon is an important part of making sure you aren't taking on more risk than you need to and that you are compensated for the risks you DO take. This is the part that terrifies...
by 9-5 Suited
Wed May 27, 2020 8:47 pm
Forum: Personal Investments
Topic: Paying Off/Down Mortgage vs Investing
Replies: 15
Views: 1891

Re: Paying Off/Down Mortgage vs Investing

Since you are taking standard deduction, the 2.625% you are paying, is break-even with a CD yielding 2.625/0.78 = 3.37% for 8 years. It's a decent return, certainly more than what you will be getting from Total Bond Market Index fund. At the same time, it's also a rate that can be reasonably expect...
by 9-5 Suited
Tue May 26, 2020 1:46 pm
Forum: Investing - Theory, News & General
Topic: Swedroe’s Bond Advice - no total bond index
Replies: 195
Views: 17353

Re: Swedroe’s Bond Advice - no total bond index

If I recall, Larry is not a fan of corporate bonds because of their correlation with equity performance and frequent use of call features embedded in the bonds. He also does not like the mortgage-backed securities, I believe because of pre-payment risk and the fact that if rates rise those are long-...
by 9-5 Suited
Mon May 25, 2020 1:19 pm
Forum: Investing - Theory, News & General
Topic: Value of Liquidity
Replies: 28
Views: 2224

Value of Liquidity

In threads regarding the merits of paying down debt, one critical element to the decision matrix is liquidity. This has prompted me to think about the extent to which I personally value liquidity and what the limits to that value are. To simplify a hypothetical scenario to get at the philosophy, ass...
by 9-5 Suited
Sun May 24, 2020 8:10 am
Forum: Personal Consumer Issues
Topic: If Jeep has such poor reliability, how come they are everywhere?
Replies: 174
Views: 13918

Re: If Jeep has such poor reliability, how come they are everywhere?

Reliability is valued very highly among the population of Bogleheads. In the general population I am sure other factors, like how cool a car looks or how it handles unusual road conditions, are higher in the decision matrix. There is nothing wrong with you prioritizing things other than reliability ...