Search found 257 matches

by B4Xt3r
Tue Oct 16, 2018 6:35 am
Forum: Personal Finance (Not Investing)
Topic: When to stop putting money into an older vehicle
Replies: 88
Views: 5812

Re: When to stop putting money into an older vehicle

TheAccountant wrote:
Sun Oct 14, 2018 5:20 pm
You need to track your costs per mile and compare that number against what a new car would cost.
+1
by B4Xt3r
Sun Oct 14, 2018 7:15 am
Forum: Personal Finance (Not Investing)
Topic: Formula for when to buy in bulk
Replies: 41
Views: 3213

Re: Formula for when to buy in bulk

... The PV() function assumes your first payment occurs *after* 1 period has elapsed. So for an example case let's model 2 years of consumption. The length of time for our example does not effect the results. ... BTW, PV() function in excel has an optional input that allows you to select wether the...
by B4Xt3r
Sat Oct 13, 2018 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Formula for when to buy in bulk
Replies: 41
Views: 3213

Re: Formula for when to buy in bulk

BTW, I made a little utility spreadsheet. If anyone wants it, PM me for access.
by B4Xt3r
Tue Oct 09, 2018 5:31 pm
Forum: Investing - Theory, News & General
Topic: How is equity/bond allocation different from overweighting sectors/asset classes?
Replies: 5
Views: 625

Re: How is equity/bond allocation different from overweighting sectors/asset classes?

Might help you slightly to read through this post: viewtopic.php?t=239782

Different question, but somewhat related.
by B4Xt3r
Tue Oct 09, 2018 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Formula for when to buy in bulk
Replies: 41
Views: 3213

Re: Formula for when to buy in bulk

... ... ... This understanding is correct. One caveat I might throw in is that your discount rate might not exactly match the rate of return you expect of your investments. For example, if you ask yourself, "Would I rather have a guaranteed $1.00 given to me today, or a guaranteed $1.10 given to me...
by B4Xt3r
Mon Oct 08, 2018 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Formula for when to buy in bulk
Replies: 41
Views: 3213

Re: Formula for when to buy in bulk

... Let's assume that any money Bob doesn't spend on toilet paper is immediately invested in the S&P500 (quite an assumption!), and that he expects this would earn him 7% real annually. He is deciding between buying a $20 case of 48 rolls of T.P. that would last him a year, versus a $1.70 box of 4 ...
by B4Xt3r
Mon Oct 08, 2018 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Formula for when to buy in bulk
Replies: 41
Views: 3213

Re: Formula for when to buy in bulk

You can go nuts with this. The VP of sales at a company I worked for had twins. He went to the low cost supermarket and talked to the manager and bought enough diapers for the twins for as long as they would need them and took them in a single purchase. Saved more than anyone ever could with sales ...
by B4Xt3r
Mon Oct 08, 2018 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Formula for when to buy in bulk
Replies: 41
Views: 3213

Re: Formula for when to buy in bulk

Ask yourself, when was the last time you actually used a months supply of your stashed stuff? Maybe if you lived through he hurricane in Puerto Rico. Otherwise a months supply is too much. Too much storage. Then again, you won't be the one rushing to the store and emptying the shelves of everything...
by B4Xt3r
Mon Oct 08, 2018 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Formula for when to buy in bulk
Replies: 41
Views: 3213

Re: Formula for when to buy in bulk

If you wanted to take this to extremes, you'd have to include any costs for storing extra quantities, overall and other specific spending constraints, etc. If the product regularly goes on sale, and the sale discount is larger than your expected investment return, then buy enough at the sale price ...
by B4Xt3r
Mon Oct 08, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Formula for when to buy in bulk
Replies: 41
Views: 3213

Re: Formula for when to buy in bulk

The general term for this computation is determining present value of a series of payments. The equation can be read about here: http://financeformulas.net/Present_Value_of_Annuity.html Assuming there is no spoilage, transaction costs or carrying costs, then the only case where a bigger purchase at...
by B4Xt3r
Mon Oct 08, 2018 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Formula for when to buy in bulk
Replies: 41
Views: 3213

Re: Formula for when to buy in bulk

^Lets assume that you actually use all the product you buy.
by B4Xt3r
Mon Oct 08, 2018 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Formula for when to buy in bulk
Replies: 41
Views: 3213

Formula for when to buy in bulk

Hi All, I have had something annoy me for a while now, and I'm curious if someone knows the answer. Let's assume that I have buy a certain product and that it is offered at various prices per unit depending on how much of it I buy. The choice is then, should I buy more of the product less often or l...
by B4Xt3r
Mon Oct 08, 2018 6:32 am
Forum: Investing - Theory, News & General
Topic: “It’s probably wise to sell to the sleeping point.” - Jack Bogle
Replies: 83
Views: 11545

Re: “It’s probably wise to sell to the sleeping point.”

Interesting. The 5-10% reduction in stocks would have many here wagging their fingers and chanting “market timing” if someone mentioned doing that in a post. If you actually read some of Jack Bogle's books, you would realize that there are a number of unbogleheads-forum things about Bogle himself. ...
by B4Xt3r
Mon Oct 08, 2018 6:21 am
Forum: Personal Finance (Not Investing)
Topic: New Car: No Collision/Comprehensive?
Replies: 52
Views: 4234

Re: New Car: No Collision/Comprehensive?

My opinion is that insurance is only needed when you cannot afford the risk. If you can, why pay insurance companies for a service you can already afford yourself? Seems wasteful unless the mental satisfaction you derive from being insured is worth the premium.
by B4Xt3r
Sat Oct 06, 2018 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: What is your annual cost for health insurance?
Replies: 137
Views: 9580

Re: What is your annual cost for health insurance?

Man, 20k premiums make me wonder if it is better just to take the risk, save $20k/year, and then pay the uninsured rates at hospitals. I don't have the numbers handy, but at somepoint you have to do the cost/benifit analysis. I'd be curious if someone actually had the numbers handy?
by B4Xt3r
Sun Sep 30, 2018 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: How to get 9-box data for free
Replies: 4
Views: 612

How to get 9-box data for free

Hi All,

I am curious if someone knows a way to get morningstar 9-box data for free? I used to use there "instant x-ray" tool, but that seems to not longer be functioning correctly.

Thx!
by B4Xt3r
Sun Sep 30, 2018 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Reasonable, free tax forecaster
Replies: 9
Views: 942

Re: Reasonable, free tax forecaster

^Thanks.

A very simple one that I found was this: https://smartasset.com/taxes
by B4Xt3r
Sat Sep 29, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Reasonable, free tax forecaster
Replies: 9
Views: 942

Reasonable, free tax forecaster

Hi All,

I'm looking for a reasonable, free tax forecaster just to make sure that my employer will be withholding enough for taxes. Can someone make a suggestion?

Thanks!
by B4Xt3r
Thu Sep 13, 2018 6:39 am
Forum: Investing - Theory, News & General
Topic: Commodities have never been cheaper - time to buy?
Replies: 46
Views: 5135

Re: Commodities have never been cheaper - time to buy?

...Despite our intellectual understanding that it makes sense to buy the unloved and sell what everyone wants... I have no such "understanding." What you have described is simply one of many active investing strategies, such as "growth at a reasonable price." This one is just "contrarian investing....
by B4Xt3r
Wed Sep 05, 2018 6:23 am
Forum: Personal Finance (Not Investing)
Topic: Help make me more employable
Replies: 18
Views: 2586

Re: Help make me more employable

What you don't have is any of the management/business side which is where you need to be to make the real money. Focus on that and office politics/personal relationship skills. Any recommendation as how to navigate office politics? Take courses on interpersonal communication as well as speech and w...
by B4Xt3r
Tue Sep 04, 2018 6:42 am
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1733

Re: [How do I include inflation in my pay raise?]

I'm a bit confused by the discussion of tax brackets. Can someone provide an example with numbers? I'll make up some numbers to make the math easier. Suppose that the standard deduction is $20,000, and you then pay 10% tax on taxable income up to $10,000, and 15% tax on the amount from $10,000 to $...
by B4Xt3r
Mon Sep 03, 2018 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Help make me more employable
Replies: 18
Views: 2586

Help make me more employable

Hi All, Over the next one to two years, I am considering the idea of spending my Saturdays learning a new skill in order to make myself more employable in the future. Pertinent background: Recently hired at F500 company where I help automate the testing/RnD process for building lasers - am satisfied...
by B4Xt3r
Mon Sep 03, 2018 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1733

Re: [How do I include inflation in my pay raise?]

I'm a bit confused by the discussion of tax brackets. Can someone provide an example with numbers?
by B4Xt3r
Sun Sep 02, 2018 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1733

Re: Inflation, raises, and taxes.

As measured by real wages, yes most people I know have to spend a higher percentage of income on relatively non-discretionary expenditures - medical expenses, sales and property taxes, etc. - vs. a decade ago. ... I don't see why the current situation wouldn't be sustainable indefinitely. How can i...
by B4Xt3r
Sun Sep 02, 2018 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1733

Re: [How do I include inflation in my pay raise?]

This thread is incredibly helpful and also totally nuts! The latest CPI-U annual increase for the San Francisco region is 3.9%, according to BLS. Using my own (but probably not atypical) effective and marginal rates, I would need a 4.5% increase just to keep up with cost of living. The standard pay...
by B4Xt3r
Sun Sep 02, 2018 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1733

Re: [How do I include inflation in my pay raise?]

You got it. You do bring up an interesting point that our progressive tax system does tend to require higher than inflation increases just to maintain the same standard of living. I hadn't thought about that before your post. Bold is mine. That is an interesting point, because if your effective rat...
by B4Xt3r
Sun Sep 02, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1733

Re: [How do I include inflation in my pay raise?]

Example, say your salary is $100,000. You take home $80,000 but your marginal rate is 35%. If inflation is 2%, you need $80,000 = $81,600 to maintain your same standard of living. You will need an absolute raise of $1,600/.65 = $2461. That is a raise of 2.46%, which is precisely the amount that I s...
by B4Xt3r
Sun Sep 02, 2018 11:55 am
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1733

Re: Inflation, raises, and taxes.

I disagree. If your marginal rate is X and your effective rate is Y, then you you need (1-Y) x 2% / (1-X) to maintain the same spending power. Your formula assumes that your effective rate is 0. In reality, things get even more complicated with the different deductions and such if they're not index...
by B4Xt3r
Sun Sep 02, 2018 11:54 am
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1733

Re: Inflation, raises, and taxes.

As measured by real wages, yes most people I know have to spend a higher percentage of income on relatively non-discretionary expenditures - medical expenses, sales and property taxes, etc. - vs. a decade ago. ... I don't see why the current situation wouldn't be sustainable indefinitely. How can i...
by B4Xt3r
Sun Sep 02, 2018 11:50 am
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1733

Re: Inflation, raises, and taxes.

I disagree. If your marginal rate is X and your effective rate is Y, then you you need (1-Y) x 2% / (1-X) to maintain the same spending power. Your formula assumes that your effective rate is 0. In reality, things get even more complicated with the different deductions and such if they're not index...
by B4Xt3r
Sun Sep 02, 2018 11:00 am
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1733

Re: Inflation, raises, and taxes.

That sounds approximately correct. Most people I know have seen inflation-adjusted wages decrease considerably for the past decade or so. OK, thanks, I don't doubt it - I was surprised when I realized the above line of reasoning. I'm curious how this is sustainable, then? Is everyone's quality of l...
by B4Xt3r
Sun Sep 02, 2018 10:40 am
Forum: Personal Finance (Not Investing)
Topic: [How do I include inflation in my pay raise?]
Replies: 29
Views: 1733

[How do I include inflation in my pay raise?]

Hi All, I am seeking a double check as to whether or not I am understanding the following correctly. Let's assume that CPI-U is 2% Let's assume that the total tax I pay on my next dollar is 35% If my pay is to not take a real cut, then I need to receive a nominal raise of 2%/0.65 = 3.07%? Thanks, B4...
by B4Xt3r
Sun Aug 26, 2018 10:52 am
Forum: Investing - Theory, News & General
Topic: 2000-2018 retirement - sequence of returns
Replies: 153
Views: 13691

Re: 2000-2018 retirement - sequence of returns

Thanks a lot Homer, I feel much better now about having 45% bonds in my portfolio. Thank you, Homer. It took me a long time to see the value of bonds and this reinforces it. You've helped me a lot. What do you make of the following post? It seemingly shows that 2000 was an outlier, and I draw the o...
by B4Xt3r
Sun Aug 26, 2018 10:50 am
Forum: Investing - Theory, News & General
Topic: 2000-2018 retirement - sequence of returns
Replies: 153
Views: 13691

Re: 2000-2018 retirement - sequence of returns

50/50 seems like a good balance for retirement. After seeing Siamond's post above, do you still stand by this statement? Yes, of course. I don't believe in either 100% stocks or 100% bonds during withdrawal. Neither do I, but I'll admit that I do not have a really convincing historical argument - p...
by B4Xt3r
Sun Aug 26, 2018 9:40 am
Forum: Investing - Theory, News & General
Topic: 2000-2018 retirement - sequence of returns
Replies: 153
Views: 13691

Re: 2000-2018 retirement - sequence of returns

HomerJ wrote:
Fri Aug 24, 2018 12:28 pm

50/50 seems like a good balance for retirement.
After seeing Siamond's post above, do you still stand by this statement?
by B4Xt3r
Sun Aug 26, 2018 9:38 am
Forum: Investing - Theory, News & General
Topic: 2000-2018 retirement - sequence of returns
Replies: 153
Views: 13691

Re: 2000-2018 retirement - sequence of returns

randomizer wrote:
Sun Aug 26, 2018 7:28 am
This doesn't tell me that I need (more) bonds. It just tells me what happened in one specific time interval. Nobody knows nothin', at they say. Sticking with 88:12 for now (still trying to accumulate).
I believe this is the correct conclusion, esp. after seeing Siamond's post above.
by B4Xt3r
Sun Aug 26, 2018 7:23 am
Forum: Investing - Theory, News & General
Topic: 2000-2018 retirement - sequence of returns
Replies: 153
Views: 13691

Re: 2000-2018 retirement - sequence of returns

Thanks a lot Homer, I feel much better now about having 45% bonds in my portfolio. Thank you, Homer. It took me a long time to see the value of bonds and this reinforces it. You've helped me a lot. What do you make of the following post? It seemingly shows that 2000 was an outlier, and I draw the o...
by B4Xt3r
Sun Aug 26, 2018 7:16 am
Forum: Investing - Theory, News & General
Topic: 2000-2018 retirement - sequence of returns
Replies: 153
Views: 13691

Re: 2000-2018 retirement - sequence of returns

Mostly for the sake of testing a new feature planned for the next update of the Simba backtesting spreadsheet , let me add my 2 cents... I took Homer's basic parameters (18 years time period, compare 100% stocks with 100% bonds, then 50/50). $1M to start with, $40k fixed (inflation-adjusted) withdr...
by B4Xt3r
Wed Aug 15, 2018 6:56 am
Forum: Personal Consumer Issues
Topic: most compelling TV character ever
Replies: 260
Views: 25281

Re: most compelling TV character ever

bowtie wrote:
Sun Aug 05, 2018 5:20 pm
As long as we are listing Jean Luc Picard, I'll add "Q" and Data.
+1 esp. for Data. The episode where he plays his evil brother, himself, and his father was golden.
by B4Xt3r
Sun Aug 05, 2018 6:46 pm
Forum: Investing - Theory, News & General
Topic: US and UK Deep History: Safe Withdrawal Rates
Replies: 38
Views: 3469

Re: US and UK Deep History: Safe Withdrawal Rates

What "safe withdrawal rate" exists at the 90% level (i.e. like 90% of the retirement periods the portfolio didn't run out) for the 70% equities equally split between 35% domestic and 35% international (and the remaining in 30% bonds)? Is that more like 5% perhaps? Here you are. First line is the ab...
by B4Xt3r
Sat Aug 04, 2018 8:17 pm
Forum: Investing - Theory, News & General
Topic: US and UK Deep History: Safe Withdrawal Rates
Replies: 38
Views: 3469

Re: US and UK Deep History: Safe Withdrawal Rates

If you'll entertain it, I have a quick question since you seemingly have the data. What "safe withdrawal rate" exists at the 90% level (i.e. like 90% of the retirement periods the portfolio didn't run out) for the 70% equities equally split between 35% domestic and 35% international (and the remaini...
by B4Xt3r
Fri Jul 20, 2018 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Somewhat odd HSA question
Replies: 5
Views: 595

Re: Somewhat odd HSA question

She actually maxed it out. That said, it seems that we cannot max my new one out for the rest of the year. Thanks.
by B4Xt3r
Thu Jul 19, 2018 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Somewhat odd HSA question
Replies: 5
Views: 595

Somewhat odd HSA question

Hi All, DW has an HSA where she named me as the beneficiary that she essentially maxed to the family limit. During that time, my health insurance came through her job. She recently quit so that we could move for me to begin a job, where I will have an HSA, will name her as the beneficiary, and provi...
by B4Xt3r
Tue Jul 17, 2018 3:16 pm
Forum: Personal Consumer Issues
Topic: Would you pay $120 for a 5 year dishwasher warranty?
Replies: 61
Views: 3124

Re: Would you pay $120 for a 5 year dishwasher warranty?

No. Two reasons. 1) I can afford to replace if something goes wrong. 2) My assumption is that the warranty company calculated the price of the warranty to exceed the expected costs they will end up paying out to customers. Why would I pay for something that is negative expected value when I can eas...
by B4Xt3r
Thu Jul 12, 2018 7:26 am
Forum: Personal Finance (Not Investing)
Topic: Emergency fund checkup
Replies: 19
Views: 1642

Re: Emergency fund checkup

OP here, I'd like to reiterate that I'm not asking for advice for about where to put my emergency fund nor wether or not to save for moving expenses. I'm only asking as to whether or not I have reasonably estimated all one-time costs associated with selling a ~$300k house, moving ~1500 miles, and bu...
by B4Xt3r
Thu Jul 12, 2018 7:20 am
Forum: Personal Finance (Not Investing)
Topic: Emergency fund checkup
Replies: 19
Views: 1642

Re: Emergency fund checkup

Roth IRAs are for retirement savings, not for parking emergency funds. Emergency funds should be kept outside so you can access them without taxes or penalties. Contributions can be withdrawn at any time, tax and penalty free. For this reason, many bogleheads actually use Roth IRAs as a part of the...
by B4Xt3r
Wed Jul 11, 2018 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency fund checkup
Replies: 19
Views: 1642

Re: Emergency fund checkup

It doesn't make sense to me to increase your emergency fund by 21k to account for realtor fees, etc. You're headed down the road of mental accounting at that point, and also setting yourself up for significant cognitive bias around your transaction. Regarding the rest of your numbers, I think you a...
by B4Xt3r
Wed Jul 11, 2018 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency fund checkup
Replies: 19
Views: 1642

Re: Emergency fund checkup

What are you missing? An EF should be refillable. A rIRA (all your tax-advantaged accounts) is not. If you remove $5K from your rIRA to pay for this move, you'll lose the otherwise tax-free market growth from now until withdrawn in retirement. Assume 7% market growth over 40yrs and you are giving u...
by B4Xt3r
Wed Jul 11, 2018 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency fund checkup
Replies: 19
Views: 1642

Re: Emergency fund checkup

Most people don't consider those expenses as "emergency" expenses. Most emergencies are hard to predict — will you be hit by a car and injured, or have flood damage to your house, or lose your job? So to handle these low-probability risks you set aside a big lump of money for them, and then move on...