Search found 1059 matches

by rr2
Tue Feb 28, 2023 9:41 am
Forum: Non-US Investing
Topic: Is 50% of Equities too much in Domestic Stocks (India)?
Replies: 41
Views: 5385

Re: Is 50% of Equities too much in Domestic Stocks (India)?

Anon9001 wrote: Tue Feb 28, 2023 9:29 am Hmm what you are saying is quite interesting. I am not sure how that would take place and due to me evaluating this a theoretical possibility I will probably be quite calm and state yes I would deal with now but IRL if that were to occur I would probably panic. I think though these events are quite rare no? Last example of country market going down significantly was Russian market which went down 90% in 2022 (For a local investor. It was 100% loss for foreigner)and I believe the World markets didn't decline that much in that year.
This is just me, but I would be inclined to treat the Indian Market as the play money portion and maybe have not more than 10%. The rest would go into a global portfolio. Again, this is just me.
by rr2
Tue Feb 28, 2023 9:25 am
Forum: Personal Investments
Topic: Any investment better than Robinhood 4.15% interest rate?
Replies: 34
Views: 4376

Re: Any investment better than Robinhood 4.15% interest rate?

whohasaquestion wrote: Tue Feb 28, 2023 8:51 am Any other fund or treasuries I should consider as well? I need the liquidity since I could be buying a house this spring. Please keep that in mind as you make the recommendation. Thanks!
Listen to @nisiprius. Keep it in a HYSA. Keep it simple.
by rr2
Tue Feb 28, 2023 9:21 am
Forum: Non-US Investing
Topic: Is 50% of Equities too much in Domestic Stocks (India)?
Replies: 41
Views: 5385

Re: Is 50% of Equities too much in Domestic Stocks (India)?

Anon9001 wrote: Tue Feb 28, 2023 9:08 am Large Collapse risk is why I own International stocks in a 50% weightage. If Domestic market collapses by 90% and International market is just doing nothing and staying stable then it is a 45% loss. Considering in this board we are trained to expect 50% loss from Equities this is fine to me.
It is possible that a complete Indian domestic collapse may be accompanied by a 50% World equities collapse. If so, your portfolio will be down by 7570%. Is that acceptable?
by rr2
Tue Feb 28, 2023 9:00 am
Forum: Non-US Investing
Topic: Is 50% of Equities too much in Domestic Stocks (India)?
Replies: 41
Views: 5385

Re: Is 50% of Equities too much in Domestic Stocks (India)?

Oh and I just saw your sig. Given the relatively tiny fraction that equities compose, it probably doesn't matter what allocation you have domestic/total world.
by rr2
Tue Feb 28, 2023 8:59 am
Forum: Non-US Investing
Topic: Is 50% of Equities too much in Domestic Stocks (India)?
Replies: 41
Views: 5385

Re: Is 50% of Equities too much in Domestic Stocks (India)?

It seems you've made up your mind Anon9001, why are you asking? Is there a specific worry you have? I am open to change as long as there is some data backing up why 50% Domestic Equities is particularly risky. I use data to support my arguements and one could argue actually this data I am using is actually over-estimating the risk of Indian Equities as I am calculating Standard Deviation on Annual Returns and Ulcer Index on Monthly Returns of these Assets from 1979 -2022. In 1979 Indian Stock Market was not even Emerging Market it was more of a Frontier Market whereas now Indian Market is much larger and is the third largest EM market. Also I think there was no regulator at the start of this time period and if I am correct then it was much...
by rr2
Thu Jan 19, 2023 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: Any Recommendations for Affordable Homeowners Insurance in Hawaii?
Replies: 14
Views: 1340

Re: Any Recommendations for Affordable Homeowners Insurance in Hawaii?

Until very recently I lived in Hilo.

I had First Insurance Co of Hawaii for hazard insurance and Zephyr for wind insurance. I used a local insurance agent (Pyramid). The cost was approx $500 for hazard and $1000 for wind. I skipped the earthquake despite having been through many of them. My house was bought for $350K but the insured value keeps going up by some formula. I also had auto and umbrella with First insurance co. So possibly there was some sort of discount.

DM me if you want my agent's contact details.
by rr2
Wed Jan 18, 2023 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: New Mortgage: Why would anyone choose ARM when ARM is [more] expensive than 15 year fixed ?
Replies: 41
Views: 3767

Re: New Mortgage: Why would anyone choose ARM when ARM is expensive than 15 year fixed ?

@ChiKid24 -- well stated.

Late last year I was in a similar situation. The 30 year fixed rate was 0.875% higher than the 7/1 ARM. It is a 10% savings in terms of the monthly payment. I felt it was worth the risk. I will keep looking for no cost refi rates.
by rr2
Wed Jan 18, 2023 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage: Buydowns, Points, Recasts, and Solar!?
Replies: 4
Views: 422

Re: Mortgage: Buydowns, Points, Recasts, and Solar!?

Given that you are planning to refi/recast in the near future, it is probably advantageous to pay either no points or get a credit with a slightly higher rate. Typical point pay down periods are of order a few years.

The solar is probably worth it, again assuming that you will stay there long. It depends on the electric utility rates, contracts etc.
by rr2
Wed Jan 11, 2023 12:16 pm
Forum: Personal Investments
Topic: Where to park some CASH?
Replies: 79
Views: 12850

Re: Where to park some CASH?

Is the 400k going to be used for a down payment OR are you going to be buying the house all cash?

Typically lenders ask for two months of bank statements. Any large transactions into the account usually requires an explanation letter. So be aware of this if you are planning to get a mortgage.
by rr2
Fri Jan 06, 2023 8:28 pm
Forum: Investing - Theory, News & General
Topic: Robert Merton on fixing retirement
Replies: 323
Views: 36529

Re: Robert Merton on fixing retirement

I like this funded number in theory. If you have only worked for one employer with one DC plan, I can see meaning in that number. I recently left an employer after almost 15 years and left my DC plan still with them. There is an income calculation that the plan provides but hard to see what the assumptions are. The income it gives me seems a little on the high side. It also assumes SS income but that is just a guess as they do not have access to the SS data.

It looks like it's going to be a bit of work to figure this out.
by rr2
Thu Jan 05, 2023 11:25 am
Forum: Personal Finance (Not Investing)
Topic: Help me pick a jumbo mortgage product (fixed vs ARM and rate)
Replies: 21
Views: 3545

Re: Help me pick a jumbo mortgage product (fixed vs ARM and rate)

I recently bought a condo in a (V)HCOLA. The lock was in mid-November and closing in mid-December. I used a local (regional) bank/mortgage lender. (Edit to add: I have no prior relationship with this bank and neither was I required to establish accounts.) 1. Jumbo 7/1 ARM with 30 year amortization -- 4.625% 2. Conforming 7/1 ARM with 30 year amortization -- 5.5% 3. Jumbo 30 year fixed rate mortgage -- 5.625% 4. Conforming 30 year fixed rate mortgage -- 6.5% The Jumbo discount was 0.875% and the ARM discount was 1% . But this might be specific to my lender. I went with the lowest possible rate without paying any points. In fact, I got a small credit (0.125%) for taking this rate. I also put down just enough (a little bit over 20% but less th...
by rr2
Thu Dec 22, 2022 8:09 am
Forum: Investing - Theory, News & General
Topic: Bogleheads now on YouTube
Replies: 155
Views: 48241

Re: Bogleheads now on YouTube

I just found this in my feed a few days ago. Thanks to all who made the 2022 conference videos possible. The audio/video quality is excellent.

Just a small request: Sometimes it's hard to hear the audience questions. It would be great if the speakers repeat the question before providing the answer.

I'm binging. :D
by rr2
Wed Dec 21, 2022 8:54 am
Forum: Personal Investments
Topic: Almost 62 and would appreciate a progress review in preparation for retirement from full-time in 1.5 years
Replies: 23
Views: 3643

Re: Almost 62 and would appreciate a progress review in preparation for retirement from full-time in 1.5 years

Everything looks very good for you.

I highly recommend watching Mike Piper's presentation at Bogleheads 2022. It is available on youtube.

https://www.youtube.com/watch?v=atTp3sATI44

Congratulations!
by rr2
Sat Dec 17, 2022 10:46 pm
Forum: Personal Finance (Not Investing)
Topic: How much do you keep in checking?
Replies: 309
Views: 30128

Re: How much do you keep in checking (2022)?

I aim to have a 10K buffer in checking which is a little more than one month's expenses.
by rr2
Wed Dec 07, 2022 1:03 pm
Forum: Personal Investments
Topic: Is There A Way To Determine if You are Putting in Too Much Into Tax-Deferred Accounts?
Replies: 95
Views: 10975

Re: Is There A Way To Determine if You are Putting in Too Much Into Tax-Deferred Accounts?

@vineviz @Admiral Yep. I think the problem is it's so easy to adopt the mantra "maximize your employee match", "maximize pre-tax contributions" etc and in 90% of cases it is the right thing to do. Definitely a first world problem. But I did some back of the envelope calcluations and realized the "cost" of not doing the perceived optimal decision is "just" $65K in the worst case: We put the remaining $480K contributions into pre-tax and it grows to $861K (3.5% = (6% - 2.5% inflation) effective yield). I promptly kick the bucket at 72: wife pays 32% instead of 24% on the RMDs which costs about $65K on federal taxes. Of course I've left out state taxes etc. But the point is it's not life changing. It's ...
by rr2
Sun Dec 04, 2022 9:42 pm
Forum: Personal Investments
Topic: FIRE goal in 5 years: pay off mortgage or invest all available cash
Replies: 38
Views: 5326

Re: FIRE goal in 5 years: pay off mortgage or invest all available cash

OP -- you are making your life too complicated. And then compounding it.

Keep things simple. Contribute evenly throughout the year. For the 401k it will be 2500/month for each of you. For the IRA it will be $625/month for each of you. You mentioned you have another $45K/year = $3750/month. Just keep things simple and put it into a HYSA or CD automatically. Yes, it will lose money compared to the mortgage but you will have liquidity. Or you could put it into a low risk funds in a brokerage account at Vanguard.

You just got started saving only for the last couple of years. Try and build the stash as much as you can.

Re-evaluate in 3 years time. By this time, you would have at least 5 years of a saving habit. Then optimize.
by rr2
Sun Dec 04, 2022 8:32 pm
Forum: Personal Investments
Topic: Please reassure me that I can retire
Replies: 22
Views: 4575

Re: Please reassure me that I can retire

@copilot -- my question was -- Are you allowed to max both the 403B and the TSP simultaneously. I don't think that is allowed but I may be wrong.
by rr2
Sun Dec 04, 2022 1:40 pm
Forum: Personal Investments
Topic: Please reassure me that I can retire
Replies: 22
Views: 4575

Re: Please reassure me that I can retire

It appears that you definitely can but I have a couple of questions:

1. Is it ok to make maximum contributions to both the TSP and 403B?

2. Have you run the calculators for optimal social security benefits claiming strategies.

Good luck. With the difference in your ages, the sooner the better. A good friend of mine with a similar age difference did something like this. They both retired at the same time to take advantage of things they could do together esp. things physical activities.
by rr2
Tue Nov 29, 2022 11:33 am
Forum: US Chapters
Topic: Sad news - Sheepdog passed away
Replies: 135
Views: 25671

Re: Sad news - Sheepdog passed away

Sheepdog's avatar always put a smile on my face. Will miss your contributions.

I was just starting to invest (started very late -- approaching almost 40). Very turbulent times as can be seen in that thread from 2008.

One of his posts from around that time.
As I bring this thread back from the dead, I think...I did not sell some of my holdings at the low, after all...my years of savings keep going lower and lower and lower in perceived value.
Retirement can be stressful.....but fun. Okay, I've gone over the cliff.....
No, I'm foolishly not selling any more for at least 3 years....
Sigh......
I can sleep soundly tonight. I hope you will as well.
Jim
RIP.
by rr2
Thu Dec 23, 2021 10:37 am
Forum: Personal Investments
Topic: How much is too much tax deferred?
Replies: 115
Views: 14389

Re: How much is too much tax deferred?

markcoop wrote: Thu Dec 23, 2021 10:33 am I have modeled this out for myself. Taking SS and a modest pension into consideration, making a number of assumptions about rate of return and inflation and using some home-made monte carol simulations in excel, at around $1.5M real at age 72 I start to have concerns bumping into the current 22% tax bracket, SS torpedo territory and IRMAA. The single survivor case would be a smaller number. Of course, I doubt that number is too meaningful to others.
It's Christmas time. :happy
by rr2
Mon Nov 22, 2021 8:25 pm
Forum: Personal Investments
Topic: Penalty Free Withdrawal from a 401k -- 55 < age < 59.5
Replies: 8
Views: 1467

Re: Penalty Free Withdrawal from a 401k -- 55 < age < 59.5

Thanks, Alan S. for the detailed response.
by rr2
Sun Nov 21, 2021 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: 31/F – House buying advice
Replies: 50
Views: 5933

Re: 31/F – House buying advice

What is the value of the current place you are renting? If 1 M, the price to annual rent is 1000/36 = 28. This high number leans towards renting. Have you plugged your numbers into a buy-vs-rent calculator?

Are there any other lifestyle reasons for wanting to own a home? You have not listed those but these may be important for you.
by rr2
Sun Nov 21, 2021 6:13 pm
Forum: Personal Investments
Topic: Penalty Free Withdrawal from a 401k -- 55 < age < 59.5
Replies: 8
Views: 1467

Re: Penalty Free Withdrawal from a 401k -- 55 < age < 59.5

Thanks, samsoes. Indeed a part of my TIAA holdings are indeed illiquid. These are however in a 401a. The rest of it is in a 403b which is liquid.
by rr2
Sun Nov 21, 2021 4:48 pm
Forum: Personal Investments
Topic: Penalty Free Withdrawal from a 401k -- 55 < age < 59.5
Replies: 8
Views: 1467

Re: Penalty Free Withdrawal from a 401k -- 55 < age < 59.5

terran -- thanks.

Looking at the IRS documentation, there does not seem to be any mention of any restrictions. Also no information on this type of situation in the TSP website as well. One would think that this would be a benefit in favor or rolling over the old 401k to a new employers plan. There are some websites that discuss this but nothing official.
by rr2
Sun Nov 21, 2021 11:11 am
Forum: Personal Investments
Topic: Penalty Free Withdrawal from a 401k -- 55 < age < 59.5
Replies: 8
Views: 1467

Penalty Free Withdrawal from a 401k -- 55 < age < 59.5

I have a question about making penalty free withdrawals from a 401k plan at age > 55 but less than 59.5 in the following situation.

Most of the retirement funds are in a former employer's plan and very little in the current employer's plan. Will rolling over the funds from the former employer's plan to the current employer's plan allow for penalty free withdrawals of these rolled over funds when retiring at 55+ but less than 59.5?

In particular, former employer was a non-profit (TIAA-CREF tax deferred 403b plan), and current retirement plan is TSP.

Thanks.
by rr2
Sun Oct 31, 2021 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Tax filing questions -- married but one spouse will be part year resident of HI and MA
Replies: 10
Views: 786

Re: Tax filing questions -- married but one spouse will be part year resident of HI and MA

Hello Everyone,

Mahalo for all of the replies!

I have started to read the Hawaii filing instructions (and fact sheets) for the non-resident and part year resident. I am trying to get in touch first with an enrolled agent in Hawaii.

There is also a help desk for the state return tax issues in Hawaii who I will also contact. In the past, it used to be in person help with appointments or walk in. But not sure these days if it has moved to remote help.

It does appear to be a more complicated situation for the normal tax software to handle and professional help will be needed.

Thanks again and have a good rest of the weekend.
by rr2
Fri Oct 29, 2021 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Tax filing questions -- married but one spouse will be part year resident of HI and MA
Replies: 10
Views: 786

Tax filing questions -- married but one spouse will be part year resident of HI and MA

I have a question about tax filing in terms of which tax software will be best suited when one spouse moves mid year to a different state for a job. One spouse is a full year resident of one state with W2 income while the other has W2 income from both states as a part year resident for each. The only other sources of income are some dividends and a minute amount of interest.

(The HR block software does not appear to be doing part year resident returns for one of the two states.)

Thanks.
by rr2
Fri Jul 30, 2021 10:37 am
Forum: Investing - Theory, News & General
Topic: Close to retirement - locking in gains with each new market high
Replies: 241
Views: 29962

Re: Close to retirement - locking in gains with each new market high

HomerJ,

Very interesting thread. Thanks for starting it.

I've not been paying much attention to my asset allocation recently. I peeked and it was off significantly (60% stock target is almost 70% now). This is as expected given the current market. Now I have brought it back in line, maybe a teensy bit below. I have a ways to go (5+ years) to retirement but it doesn't hurt to rebalance back. It's been years since I did it last.

Good luck!
by rr2
Sun Mar 14, 2021 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Marginal effective tax rates 100%+ this year for 150 - 160k AGI
Replies: 174
Views: 16071

Re: Marginal tax rates 100%+ this year for 150 - 160k AGI

smithers wrote: Sun Mar 14, 2021 5:53 am
rr2 wrote: Sun Mar 14, 2021 3:26 am Our 2020 agi will end up in the 150-160k range while our 2019 is well below. Our 2021 agi may be below 150k. Haven't filed 2020 taxes yet. I expect that we will be getting the stimulus check. Will there be a clawback on the 2021 taxes? Thanks.
There's no "clawback". You should wait to get your stimulus check (based on your lower 2019 income) before filing for 2020. Based on what people are saying in other threads, that will probably be any day now, but I would go so far as to file for an extension if it takes longer-- it could easily be worth thousands of dollars to you.
Thanks very much for your suggestion of an extension if needed. In this case, procrastination helps :happy
by rr2
Sun Mar 14, 2021 3:26 am
Forum: Personal Finance (Not Investing)
Topic: Marginal effective tax rates 100%+ this year for 150 - 160k AGI
Replies: 174
Views: 16071

Re: Marginal tax rates 100%+ this year for 150 - 160k AGI

Our 2020 agi will end up in the 150-160k range while our 2019 is well below. Our 2021 agi may be below 150k. Haven't filed 2020 taxes yet. I expect that we will be getting the stimulus check. Will there be a clawback on the 2021 taxes? Thanks.
by rr2
Sun Feb 21, 2021 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: I Think I *Can* Buy This Home, *Should* I Buy It?
Replies: 44
Views: 4106

Re: I Think I *Can* Buy This Home, *Should* I Buy It?

Very good questions by @denovo. It was not obvious to me if the OP intended to sell their current house and move into this one. I just want to make an addition to Q2.
denovo wrote: Sun Feb 21, 2021 5:13 pm
I've got a bunch of questions. May help if you update your post?

1. Why are your in-laws selling?
2. Are you going to rent the property?
2a: If renting, will you rent the whole house including the attached dwelling back to your (future) in-laws? If so, will you be asking for FMV?
3. How far is this property from your current residence?
4. Do you have any experience landlording?
5. Have you talked to a lender? Since your wife has no income, and your current mortgage, you may not easily get a 700k loan, especially not at a good rate.
by rr2
Thu Feb 18, 2021 3:31 pm
Forum: Personal Investments
Topic: What % of your TOTAL portfolio is in TIAA Trad?
Replies: 45
Views: 4973

Re: What % of your TOTAL portfolio is in TIAA Trad?

cheese_breath wrote: Thu Feb 18, 2021 3:13 pm
rr2 wrote: Thu Feb 18, 2021 3:00 pm ... I do expect that changes may be made at least to the liquid forms of TRAD much like the IRAs. For now my liquid TRAD inside my 403b still give at least 3%.
TIAA closed the IRA 3% guaranteed Traditional in August 2013. IRA Traditional contributions since then only have 1% guarantee. Did you have other changes in mind?
Indeed, I have stopped contributing to TRAD inside my IRAs since then. I would guess that similar to the changes made to the IRA contributions, TIAA may remove the 3% guarantee for the liquid form in other non IRA accounts.
by rr2
Thu Feb 18, 2021 3:00 pm
Forum: Personal Investments
Topic: What % of your TOTAL portfolio is in TIAA Trad?
Replies: 45
Views: 4973

Re: What % of your TOTAL portfolio is in TIAA Trad?

Close to 30%. TIAA Trad comprises our entire fixed income/bond allocation. Still working. rr2: You are the only respondent with a higher % than me. Do you have any concerns about credit risk given that you so much at TIAA? I have not thought about this at all. When I get closer to retirement, I will devote some more attention. I cannot imagine that it will all just evaporate overnight. I do expect that changes may be made at least to the liquid forms of TRAD much like the IRAs. For now my liquid TRAD inside my 403b still give at least 3%. Edit to add: It is my contributions that are at 60% CREF Stock, 30% TIAA Trad, 10% TIAA Re. Due to market fluctuations, it is likely that the current allocation is different. I have not rebalanced in a lo...
by rr2
Wed Feb 17, 2021 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Saving 50% of salary; what does it really mean?
Replies: 258
Views: 35712

Re: Saving 50% of salary; what does it really mean?

Mike Scott wrote: Wed Feb 17, 2021 4:49 pm For statistics and usage of median, average and percentile income in the US, check out this page...
https://dqydj.com/average-median-top-ho ... 0in%202019.
Thanks for the link. Very informative.
by rr2
Wed Feb 17, 2021 4:04 pm
Forum: Personal Investments
Topic: What % of your TOTAL portfolio is in TIAA Trad?
Replies: 45
Views: 4973

Re: What % of your TOTAL portfolio is in TIAA Trad?

Close to 30%. TIAA Trad comprises our entire fixed income/bond allocation. Still working.
by rr2
Sun Jan 03, 2021 10:23 pm
Forum: Personal Finance (Not Investing)
Topic: Coming up with mortgage down payment
Replies: 74
Views: 6209

Re: Coming up with mortgage down payment

Plus add the fact that appreciation is not a guaranteed. Another anecdotal point: we were house envy after living in condos for 5 years so we purchased our 1st house in 2007 for $460k with 5% down in a red-hot market; our house to income ratio was 34% and I was thinking we were doing great! Fast forward 6 months and the housing market completely imploded (fun read: https://knowledge.wharton.upenn.edu/article/housing-bubble-real-causes/ ) and we found ourselves completely underwater due to the value dropping by 30%. We stayed in that house for another 10 years and sold it for $465k after countless upgrades to make it more livable for our growing family. The lesson we learned (and I try to pass on to others) is it doesn't always go as you pl...
by rr2
Sat Jan 02, 2021 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Coming up with mortgage down payment
Replies: 74
Views: 6209

Re: Coming up with mortgage down payment

Wait it out.

Is the 50-70K downpayment 10% or 20%? What is the house price you are aiming for?

You are making $220K and have around $80K all put together in NW. I assume that this income is very recent. Make a savings plan. Start a savings plan with IRA/401K/Taxable/and a down payment fund.
by rr2
Mon Nov 30, 2020 2:30 am
Forum: Personal Finance (Not Investing)
Topic: H&R Block 2020 software offer
Replies: 426
Views: 43500

Re: H&R Block 2020 software offer

Fed + State at 22.49 now at amazon and also newegg.
by rr2
Wed Nov 18, 2020 12:51 am
Forum: Personal Investments
Topic: I may die poor
Replies: 159
Views: 19832

Re: I may die poor

All I had to read was the title “I may die poor” and the first thread “ I am 40yo - making 140k a year”. Seriously? If you read further, my question really is, what am I doing wrong? Was hoping to find something to dig into so I could research and educate myself to be in a better position - Granted the title may seem dramatic but that is how I was feeling when I wrote it, considering my son is grading college in December which I will pay for, my mom is older and will need help. I was just trying to educate myself. Your question has been answered many times already. None of this is going to happen till you realize your situation. Fortunately you are only 40 and have some time on your side to change. But that clock is ticking. Good luck.
by rr2
Sun Oct 25, 2020 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Potential job loss at 62
Replies: 37
Views: 4840

Re: Potential job loss at 62

If possible, refinance to a thirty year. Rates are really low.
by rr2
Fri Oct 23, 2020 9:24 pm
Forum: Personal Investments
Topic: Going “all in” on paying mortgage
Replies: 178
Views: 17653

Re: Going “all in” on paying mortgage

^^ Ben Mathew viewtopic.php?p=5562762#p5562762

Great post. Very well written.
by rr2
Wed Oct 14, 2020 5:53 pm
Forum: Investing - Theory, News & General
Topic: The Wrong Way to Think About Debt - The White Coat Investor
Replies: 215
Views: 31476

Re: The Wrong Way to Think About Debt - The White Coat Investor

I refinanced a house with a mortgage in the amount of $280 K almost 9 years ago. I had two choices -- either a 30 year at 3.5% or a 15 year at 2.875%. I took the 30 year at 3.5% and invested the difference every month in VTSAX.

After 9 years:
Mortgage balance = $225 K
Mortgage balance assuming 15 year FRM = $126 K
VTSAX balance (excl dividends/taxes) = $132 K

If I were to pay down the mortgage with the entire VTSAX balance, the mortgage remaining would be = $93 K

Thus I have an extra $33 K in 9 years. Maybe for WCI this is not a significant amount of money. But for us it is.

Yes, I am aware that this came with a risk. Also aware that I need to take taxes into account.

About to refinance again, this time down to 2.5% for a 30 year.
by rr2
Tue Jun 09, 2020 4:23 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Friendly States
Replies: 441
Views: 41289

Re: Retirement Friendly States

We recently retired and moved to the Big Island. Like I said, no place is perfect. We are in our early 50s, and fairly healthy and active. Someday, the need for better healthcare may become an issue, or maybe it will improve here. But, for now we are enjoying everything this place has to offer. East side or West? We are lucky to both live and work here. We have been here for a long while. It is truly a wonderful place with warm days, less warm nights. Lots of blue skies and sea, puffy clouds. Rains a lot. Makes everything green. It is amazing to look up from the beach and see the snow in winter. But it is expensive as almost everything is shipped in. Groceries are easily double mainland US prices. And it is far from everywhere. Mainland US...
by rr2
Sun Mar 08, 2020 3:38 am
Forum: Personal Investments
Topic: Guidance on investing Indian money in India and reducing tax liability in US
Replies: 4
Views: 721

Re: Guidance on investing Indian money in India and reducing tax liability in US

If the amount in USD is not much (as you mentioned) in both absolute terms and as a fraction of your assets, make your life simple and just transfer it all to the US after selling it. Less paperwork hassles makes it worth it.
by rr2
Sun Sep 23, 2018 2:11 pm
Forum: Personal Consumer Issues
Topic: Don't trust Tripadvisor reviews
Replies: 64
Views: 8498

Re: Don't trust Tripadvisor reviews

GoldenFinch wrote: Thu Sep 20, 2018 9:39 pm
White Coat Investor wrote: Thu Sep 20, 2018 4:41 pm I wrote a fake review for Tripadvisor.

https://www.tripadvisor.com/ShowUserRev ... oming.html
Clearly creative writing is one of your other hobbies! :beer
That was hilarious. I have never skied, but I might now. I'll die for sure. :sharebeer
by rr2
Mon Apr 02, 2018 8:57 pm
Forum: Personal Consumer Issues
Topic: New Microwave - what to select?
Replies: 11
Views: 1770

Re: New Microwave - what to select?

McCharley wrote: Mon Apr 02, 2018 8:47 pm We got a powerful Panasonic "inverter technology" one about seven years ago and it still runs like a champ.

This looks like the newer model of the same thing:
https://www.amazon.com/gp/product/B01DE ... _qh_dp_hza

It is very fast, and the knob is a nicer interface than the buttons most microwaves have. :beer

Do not get an underpowered microwave -- they can take forever to do something like defrosting. :annoyed
Unfortunately, I have one of these models and the door switch is starting to act very flakey after about 3 years. You have to literally slam the door to get it to lock.
by rr2
Wed Mar 28, 2018 5:31 pm
Forum: US Chapters
Topic: A lot of heavy hitters this morning
Replies: 244
Views: 34883

Re: A lot of heavy hitters this morning

Ok. I apologize. I did not intend to demoralize rather illustrate that you don’t need to be a doctor or a google employee to make it FI. Slow and steady savings gets you there. Lots of $100,000 jobs around. As long as husband and spouse makes $100,000 each it should be doable. I respectfully suggest a dose of reality. Perhaps in San Francisco or NYC such jobs abound, but certainly not everywhere. DW and I never made anywhere near 100K, and we both have MS degrees. Yet, by starting early, being thrifty, and investing successfully, we have a very comfortable retirement. I am sure the people that know us would be most surprised to learn of our net worth. @ davidsorensen32 -- This post of yours did come across as very disconnected. The fractio...