Search found 1513 matches

by smitcat
Fri Jul 20, 2018 6:01 pm
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

willthrill81 wrote:
Fri Jul 20, 2018 5:51 pm
smitcat wrote:
Fri Jul 20, 2018 5:47 pm
That may be the median - perhaps a look at what most have saved is more eye opening.
By definition, 50% have a smaller net worth than that.

https://www.cnbc.com/2017/04/07/how-muc ... y-age.html
by smitcat
Fri Jul 20, 2018 5:47 pm
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

You are making the common mistake of conflating income with expenses. Wise people who make recommendations about saving for retirement advise to save based on your expected expenses in retirement, not based on your income because how much you make does not (or should not) necessarily correlate to h...
by smitcat
Fri Jul 20, 2018 5:37 pm
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

Isn't enough for what exactly? It's a rule of thumb that implies you will work until the retirement age and start pulling out social security benefits immediately. It also implies you will withdraw about 80% of your income every year and maintain your standard of living. So someone that makes 200k ...
by smitcat
Fri Jul 20, 2018 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: Salary vs. Lifestyle
Replies: 112
Views: 10320

Re: Salary vs. Lifestyle

The amount of money one needs is very personal because a family can be very happy living on $50k/yr or $100k/yr while I also see families making $500k+/yr and just can't be happy. Reality is that most of the crap we buy purchases very little happiness and many of us are willing to sacrifice a lot o...
by smitcat
Fri Jul 20, 2018 3:05 pm
Forum: Personal Consumer Issues
Topic: Sail boat budget
Replies: 9
Views: 1118

Re: Sail boat budget

Well, I had a 27 foot boat moored in Seattle. It was about $350/mo. for the 30' slip. :moneybag That sounds about the same for us. We had a 31’. Slip fees, utilities, and insurance was about $250 to $300 per month. Maintenace was also a huge expense. Getting the boat hauled out for a bottom job, re...
by smitcat
Fri Jul 20, 2018 1:41 pm
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

I haven't read through all of the many responses so far, so I'm not sure if anyone has mentioned Wade Pfau's study on savings rates from a few years ago. Based on data from 1871 to the time of the study, Wade Pfau found that a 16.62% savings rate would have worked for any 30-year period during that...
by smitcat
Fri Jul 20, 2018 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Salary vs. Lifestyle
Replies: 112
Views: 10320

Re: Salary vs. Lifestyle

Everybody I know that has had higher salary has figured out a way to enjoy life while earning a higher salary. I think much of the pain now stuff is just talk to make the wealthy feel more normal and not get hassled by the less well off. Excellent points. Victoria I don't understand the points. Can...
by smitcat
Fri Jul 20, 2018 10:34 am
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

And I find a common theme here with those who strive to retire early, it's because they want to travel the world and do things they could not do when holding down the fort with a full or mostly full time job. Different strokes for different folks. Keep on saving. That's only partly true for us. We'...
by smitcat
Fri Jul 20, 2018 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Salary vs. Lifestyle
Replies: 112
Views: 10320

Re: Salary vs. Lifestyle

I was wondering if others out here have grappled with the "take the pain now, and enjoy more life's later" argument? A life lesson I have learned is that you don't need to spend a lot of money to have a lot of fun. We have had fun with less expensive activities. We have had fun with more expensive ...
by smitcat
Fri Jul 20, 2018 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Salary vs. Lifestyle
Replies: 112
Views: 10320

Re: Salary vs. Lifestyle

Morale is hard to put a dollar figure on, but once it is gone you realize just how valuable it was. I wanted to highlight this point as it's really well said. Same with general job satisfaction; I know people who work the long hours for the big pay, but love their jobs and wouldn't change it. Conve...
by smitcat
Fri Jul 20, 2018 10:12 am
Forum: Personal Finance (Not Investing)
Topic: A different take on retirement income: time segmentation
Replies: 150
Views: 8633

Re: A different take on retirement income: time segmentation

I would argue that a withdrawal strategy that provides for higher withdrawals early in one's retirement and lower withdrawals later may be more 'optimal' in a way than another withdrawal strategy provides for lower starting withdrawals and higher withdrawals later on, even if the latter provided fo...
by smitcat
Fri Jul 20, 2018 9:50 am
Forum: Personal Consumer Issues
Topic: Sail boat budget
Replies: 9
Views: 1118

Re: Sail boat budget

Any sailors here who can share their annual budget for a sail boat? I assume motor boats are a different animal. Looking in the $50-150k range, likely used, 3-5 years old. Cruising, messing around, no serious racing (i.e. I dont need a new set of sails every season). Curious what to assume as % of ...
by smitcat
Wed Jul 18, 2018 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Salary vs. Lifestyle
Replies: 112
Views: 10320

Re: Salary vs. Lifestyle

livesoft wrote:
Wed Jul 18, 2018 10:58 am
Everybody I know that has had higher salary has figured out a way to enjoy life while earning a higher salary. I think much of the pain now stuff is just talk to make the wealthy feel more normal and not get hassled by the less well off.
Yes - exactly.
by smitcat
Wed Jul 18, 2018 8:27 am
Forum: Investing - Help with Personal Investments
Topic: How do you handle the urge to DO something?
Replies: 94
Views: 5608

Re: How do you handle the urge to DO something?

The Boglehead philosophy is to decide on your long term investment strategy, allocate your assets accordingly and then do nothing outside of an annual rebalance for the next 20/30/40/50+ years. That is difficult for me because I am a doer, I have to struggle daily to just leave it. My brain knows i...
by smitcat
Tue Jul 17, 2018 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: A different take on retirement income: time segmentation
Replies: 150
Views: 8633

Re: A different take on retirement income: time segmentation

https://www.kitces.com/wp-content/uploads/2016/11/Graphics_4.png Part of this chart is weird. Housing goes down quite a bit as you age. Unless the assumption is most people enter retirement with a mortgage payment, it's not clear why this would be the case. I would believe that it is due to the fac...
by smitcat
Tue Jul 17, 2018 11:45 am
Forum: Personal Finance (Not Investing)
Topic: A different take on retirement income: time segmentation
Replies: 150
Views: 8633

Re: A different take on retirement income: time segmentation

I like this concept. My essential budget look like this right now (3 years out from retirement): sorry for the formatting issues BUDGET CATEGORY MONTHLY ANNUAL AUTO FUEL 150 1,800.00 AUTO SERVICE 75 900.00 CLOTHES 300 3,600.00 DOGS / CATS 200 2,400.00 FOOD 700 8,400.00 DINING 700 8,400.00 HEALTH / ...
by smitcat
Tue Jul 17, 2018 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Anyone not have a Budget?
Replies: 115
Views: 6408

Re: Anyone not have a Budget?

Now in retirement (2018 is our third full year) I prepare a budget and track spending against that budget. Not only to ensure discipline in our financial lives, but to try and ensure we spend up to the level of our means (i.e., live our lives to the fullest). My position, exactly, Mike. By budgetin...
by smitcat
Tue Jul 17, 2018 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Anyone not have a Budget?
Replies: 115
Views: 6408

Re: Anyone not have a Budget?

No Budget. Never had one and never needed one. We pay our future selves first from incoming capital which goes into investments and retirement accounts; then we peel some off into a savings account for vacations and what we call capital improvements, etc. Out of what remains, we pay expenses. I che...
by smitcat
Tue Jul 17, 2018 9:00 am
Forum: Personal Consumer Issues
Topic: Who has owned a ski boat or waverunner & did you regret it?
Replies: 29
Views: 17610

Re: Who has owned a ski boat or waverunner & did you regret it?

My question is for the person who started this thread. What did you get? If a boat, what size and how did your outback do putting it in and out? I have a subaru baja and am wondering if I can put a 19' boat in and out with it. I'm also less than 10 mins from the ramp. Am not worried about the actua...
by smitcat
Mon Jul 16, 2018 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Should we sell our business?
Replies: 61
Views: 4795

Re: Should we sell our business?

Depending on the industry businesses sell for 3x-4x EBITDA. Your income is important, if and only if, it is out of range of what you would pay someone to do your job. And then only the difference between what you get paid and what you would pay someone else to do the work. After all, if you sell, t...
by smitcat
Mon Jul 16, 2018 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Anyone not have a Budget?
Replies: 115
Views: 6408

Re: Anyone not have a Budget?

Our budget allows us to know what we spend on items which in turn is data for decision making in the future. It tells us what are taxes are, what are pretax savings rate is , what are post tax savings rate is and can be used easily to compare lifestyle changes or potential moves which include retire...
by smitcat
Sun Jul 15, 2018 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone not have a Budget?
Replies: 115
Views: 6408

Re: Anyone not have a Budget?

Now in retirement (2018 is our third full year) I prepare a budget and track spending against that budget. Not only to ensure discipline in our financial lives, but to try and ensure we spend up to the level of our means (i.e., live our lives to the fullest). My position, exactly, Mike. By budgetin...
by smitcat
Sun Jul 15, 2018 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Spending profile in retirement
Replies: 19
Views: 1580

Re: Spending profile in retirement

Perhaps consider these 'automated' options that are available in the extended IORP planner due to the diligence of the developer..... Spending Strategies The Traditional Spending Model (TSM), used by most retirement planners including ORP, is to assume or compute an initial spending level for the fi...
by smitcat
Sat Jul 14, 2018 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Should we sell our business?
Replies: 61
Views: 4795

Re: Should we sell our business?

The current value according to the bean counting investment bankers is $900k. This calculation didn't include revenue from our new locations in other parts of the US....I priced in expansion and additional locations when the valuation didn't include those (yet). Unless the bean counters are working...
by smitcat
Sat Jul 14, 2018 6:43 am
Forum: Investing - Help with Personal Investments
Topic: Self Employed 48years old and nothing saved for retirement
Replies: 40
Views: 4751

Re: Self Employed 48years old and nothing saved for retirement

I am concerned about the seasonal aspect of your income. Investing each and every month / payday is essential to building up your retirement resources. During the FA months of your business do you work for some other entity? If not now, can you do so for the future?? I have retirement resources bec...
by smitcat
Sat Jul 14, 2018 6:10 am
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

For the sake of my argument, I will say we want to retire at 50. This topic is open to discussion, I feel that 10-20% savings is simply not enough and should be aimed more at 40% to achieve an early retirement goal. I want to retire at 50. To calculate the percentage I need to save, I simply determ...
by smitcat
Fri Jul 13, 2018 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: 26 years old. Roth ira with edward jones last 3.5 years.
Replies: 44
Views: 2538

Re: 26 years old. Roth ira with edward jones last 3.5 years.

so after calling vanguard, their fees to sell the funds are considerably high. Like 5% in some cases. I think the only option is it get EJ to liquidate About 5 years back we moved funds from a broker (not EJ) to Vanguard - almost every one had a flat fee that was pretty low not anywhere near 5%. Th...
by smitcat
Fri Jul 13, 2018 4:13 pm
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

For the sake of my argument, I will say we want to retire at 50. This topic is open to discussion, I feel that 10-20% savings is simply not enough and should be aimed more at 40% to achieve an early retirement goal. I want to retire at 50. To calculate the percentage I need to save, I simply determ...
by smitcat
Fri Jul 13, 2018 4:09 pm
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

Just Ignore it. Most people are laid off before 50 if not earlier and never get back to good jobs. Plan accordingly. Sorry you feel that way David. While he may have an overly pessimistic view. His larger point is valid. Especially in some fields, if you are planing to retire 60+, it would be wise ...
by smitcat
Fri Jul 13, 2018 11:45 am
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

Just Ignore it. Most people are laid off before 50 if not earlier and never get back to good jobs. Plan accordingly. Ladies and Gentlemen, Good Morning. After having been in deep thought last night after reviewing my finances, doing a couple math of checks and determining what percent of my paychec...
by smitcat
Fri Jul 13, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: 26 years old. Roth ira with edward jones last 3.5 years.
Replies: 44
Views: 2538

Re: 26 years old. Roth ira with edward jones last 3.5 years.

FYI. The bonuses are for new customers only. You wouldn’t be able to do another card with the same company and get be bonus again. [/quote] Spending bonuses are seperate from account bonuses. In some cases you may only have one card but there are ways to get 2 (i.e using a ssn and a ssn/eid to get ...
by smitcat
Fri Jul 13, 2018 10:40 am
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

Even for discussing early retirement, there is no 'set' savings rate needed. Some might consider retiring at age 60 to be 'early', while others would think of it as retiring at age 35. The savings rates needed to achieve that would be very different from each other. I think that those who don't pla...
by smitcat
Fri Jul 13, 2018 10:33 am
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

Even for discussing early retirement, there is no 'set' savings rate needed. Some might consider retiring at age 60 to be 'early', while others would think of it as retiring at age 35. The savings rates needed to achieve that would be very different from each other. I think that those who don't pla...
by smitcat
Fri Jul 13, 2018 10:09 am
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 111
Views: 12522

Re: Saving 20% of paycheck isn't enough

Ladies and Gentlemen, Good Morning. After having been in deep thought last night after reviewing my finances, doing a couple math of checks and determining what percent of my paycheck I save, it now appears blatant to me that the average advice of "save 10% - 20% of your paycheck and live with the ...
by smitcat
Fri Jul 13, 2018 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Would you trade experiences in your youth for early retirement
Replies: 81
Views: 5162

Re: Would you trade experiences in your youth for early retirement

Our goal was to not sacrifice either early or later on.
by smitcat
Thu Jul 12, 2018 6:46 pm
Forum: Personal Consumer Issues
Topic: 2011 Honda was with 6 differential flushes?
Replies: 13
Views: 1113

Re: 2011 Honda was with 6 differential flushes?

My daughter bought 2011 Honda CRV that has great service records (all done by Honda shops). It currently has 82k miles. And All Wheel Drive. But I see that the differential fluid has been flushed/changed 6 times. Did the Honda Service shops just take advantage of the previous owner or am I missing ...
by smitcat
Thu Jul 12, 2018 6:17 pm
Forum: Personal Consumer Issues
Topic: 2011 Honda was with 6 differential flushes?
Replies: 13
Views: 1113

Re: 2011 Honda was with 6 differential flushes?

My 2006 Honda CRV manual says change diff fluid at 90,000 miles.
by smitcat
Thu Jul 12, 2018 8:26 am
Forum: Investing - Theory, News & General
Topic: College Costs - Debt staying steady, Parents picking up the rest of tab
Replies: 4
Views: 572

Re: College Costs - Debt staying steady, Parents picking up the rest of tab

Yes I've always noted the 5-6K annual limit and 30K or thereabouts cap doesn't constitute a crisis of debt for undergrads even if they max out on federal loans. In contrast ParentPlus loans are a high interest retirement-wrecking time bomb for parents, and a family-relation destroyer if parents tak...
by smitcat
Thu Jul 12, 2018 8:00 am
Forum: Investing - Help with Personal Investments
Topic: Self Employed 48years old and nothing saved for retirement
Replies: 40
Views: 4751

Re: Self Employed 48years old and nothing saved for retirement

I am a 48 year old self employed female. I am currently trying to pay down my debt in order to buy a house debt free. I have nothing saved for retirement and would like advice on where to start putting money so I have something by the time I retire. I have started a Roth IRA this year. What else sh...
by smitcat
Thu Jul 12, 2018 7:37 am
Forum: Personal Finance (Not Investing)
Topic: Planning ahead: Best way to buy $1M New Home?
Replies: 10
Views: 1393

Re: Planning ahead: Best way to buy $1M New Home?

We have used a bridge loan twice in our lifetimes. It is very unerving evben when you 'think' you have the time frames and each transaction 'locked up' with no liklelihood of changes. I would lay it out on paper to see the potential results and costs of the bridge loan geting extended while at the s...
by smitcat
Wed Jul 11, 2018 2:36 pm
Forum: Personal Consumer Issues
Topic: Should I contact GMC about A/C issues?
Replies: 42
Views: 1904

Re: Should I contact GMC about A/C issues?

I come from a GM family, over a dozen or so cars in my 38 years. Having experience with only GM cars, you just don't know any better. Here's an article from Consumer Reports that supports my observations: https://www.consumerreports.org/car-reliability-owner-satisfaction/10-best-cars-to-get-to-2000...
by smitcat
Wed Jul 11, 2018 2:34 pm
Forum: Personal Consumer Issues
Topic: Should I contact GMC about A/C issues?
Replies: 42
Views: 1904

Re: Should I contact GMC about A/C issues?

When it comes to quality, Honda is light years ahead of GM Honda is certainly taking a huge hit to its reputation for its recent behavior. I lived through the GM bad camshaft era, the GM bad intake gasket era and I can't even begin to count how many dozens of disk brake rotors were replaced prematu...
by smitcat
Wed Jul 11, 2018 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Second Opinion(s) on Financial Situation Married Couple 55 years old.
Replies: 39
Views: 4127

Re: Second Opinion(s) on Financial Situation Married Couple 55 years old.

I wasn't clear whether you estimated the SS based on the website which assumes you will be working until FRA or if you downloaded the calculator and figured out your PIA. Two different numbers. Also the insurance numbers go up as you get older - it's a moving target. Look closely at your sites ACA ...
by smitcat
Wed Jul 11, 2018 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Second Opinion(s) on Financial Situation Married Couple 55 years old.
Replies: 39
Views: 4127

Re: Second Opinion(s) on Financial Situation Married Couple 55 years old.

I wasn't clear whether you estimated the SS based on the website which assumes you will be working until FRA or if you downloaded the calculator and figured out your PIA. Two different numbers. Also the insurance numbers go up as you get older - it's a moving target. Look closely at your sites ACA ...
by smitcat
Wed Jul 11, 2018 9:47 am
Forum: Investing - Theory, News & General
Topic: SS taken at 62 vs. 70, but measured from 70+
Replies: 189
Views: 11048

Re: SS taken at 62 vs. 70, but measured from 70+

Apparently you overlooked where I said "part." If we make the assumption that people are more likely to move into "poverty" as they age, then it stands to reason that women will be at higher risk than men. According to the 2010 Census , there were 1.8 million men between the ages of 80-84, whereas ...
by smitcat
Wed Jul 11, 2018 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Home equity loan for a business quandary
Replies: 30
Views: 1192

Re: Home equity loan for a business quandary

A decade ago, my brother bought a business using a home-equity loan with collateral from my parents’ home. Even though their house was long ago paid off, they went along with it and took out the loan for $110k. My brother promised to quickly pay off the loan or to convert it into a business loan in...
by smitcat
Wed Jul 11, 2018 9:29 am
Forum: Personal Consumer Issues
Topic: Should I contact GMC about A/C issues?
Replies: 42
Views: 1904

Re: Should I contact GMC about A/C issues?

When it comes to quality, Honda is light years ahead of GM My co-worker has a Subaru sitting in their garage with a siezed engine due to huge oil loss. Any engine will fail if the oil level is not maintained. There are known probelms with certain Subaru engines consuming huge amounts of oil in cert...
by smitcat
Wed Jul 11, 2018 7:15 am
Forum: Personal Consumer Issues
Topic: Tool cabinets?
Replies: 32
Views: 2069

Re: Tool cabinets?

I'm reorganizing my garage this summer and have my tools scattered across about 6 different tool boxes, bags, and buckets. I'm thinking about consolidating the majority of my mechanical tools into one of the big rolling tool cabinets like this: https://www.costco.com/SPG-International-42%22-Tool-Ch...
by smitcat
Wed Jul 11, 2018 7:04 am
Forum: Personal Consumer Issues
Topic: Should I contact GMC about A/C issues?
Replies: 42
Views: 1904

Re: Should I contact GMC about A/C issues?

munemaker wrote:
Tue Jul 10, 2018 10:15 pm
When it comes to quality, Honda is light years ahead of GM
My co-worker has a Subaru sitting in their garage with a siezed engine due to huge oil loss - waiting till they can afford a new engine.
Cousin has the CRV that is diluting oil - adding oil and changing oil every other week now.
by smitcat
Tue Jul 10, 2018 7:39 am
Forum: Personal Consumer Issues
Topic: Honda Accord Maintenance at 3 Years - Am I Getting Hosed?
Replies: 95
Views: 5363

Re: Honda Accord Maintenance at 3 Years - Am I Getting Hosed?

This is absolutely true and has been that way forever. Most all use the same type of fluid and the systems are mostly sealed . Honda wants you to use Honda brake fluid and tell you only in a pinch use standard DOT3. I think that is nonsense I went with DOT3 and had Sears replace it for $69. Tranny ...