Search found 168 matches

by TheBogleWay
Fri Jan 04, 2019 6:56 am
Forum: Investing - Theory, News & General
Topic: Growth projection percentage (6%?) and young retirement withdrawl rate (4%?)
Replies: 16
Views: 995

Re: Growth projection percentage (6%?) and young retirement withdrawl rate (4%?)

There are four main ways to express rate of return.. The reason compound should be used is that it tells you how much money you will actually end up with. Average is a meaningless number as far as portfolio growth goes. Sites that are advertising portfolio returns like to use average because it mak...
by TheBogleWay
Fri Jan 04, 2019 6:08 am
Forum: Investing - Theory, News & General
Topic: Growth projection percentage (6%?) and young retirement withdrawl rate (4%?)
Replies: 16
Views: 995

Re: Growth projection percentage (6%?) and young retirement withdrawl rate (4%?)

There are four main ways to express rate of return: any combination of real or nominal, and average or compound. I think the 9.7% you were looking at was a nominal average. When you see someone here saying 4-6% they are probably thinking in real compound While average is the sum of returns divided ...
by TheBogleWay
Fri Jan 04, 2019 5:24 am
Forum: Investing - Theory, News & General
Topic: Growth projection percentage (6%?) and young retirement withdrawl rate (4%?)
Replies: 16
Views: 995

Re: Growth projection percentage (6%?) and young retirement withdrawl rate (4%?)

Hi all Two basic questions mostly for curiosity. 1) Assuming you're in a really stock heavy lazy 3 fund portfolio, US heavy, what's an expected average interest return rate you can use for calculations? Since historically a portfolio performed at about 9.7% https://personal.vanguard.com/us/insights...
by TheBogleWay
Fri Jan 04, 2019 4:57 am
Forum: Investing - Theory, News & General
Topic: Growth projection percentage (6%?) and young retirement withdrawl rate (4%?)
Replies: 16
Views: 995

Growth projection percentage (6%?) and young retirement withdrawl rate (4%?)

Hi all Two basic questions mostly for curiosity. 1) Assuming you're in a really stock heavy lazy 3 fund portfolio, US heavy, what's an expected average interest return rate you can use for calculations? Since historically a portfolio performed at about 9.7% https://personal.vanguard.com/us/insights/...
by TheBogleWay
Wed Jan 02, 2019 11:40 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA or traditional IRA for me?
Replies: 5
Views: 418

Re: Roth IRA or traditional IRA for me?

Right, you have to use the Roth IRA. You aren't eligible for pretax traditional. The other thing to check is whether your employer allows after-tax 401k contributions. If so, you may be able to do a megabackdoor Roth in addition to your regular backdoor. I wish! I learned about mega backdoor Roths ...
by TheBogleWay
Wed Jan 02, 2019 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA or traditional IRA for me?
Replies: 5
Views: 418

Re: Roth IRA or traditional IRA for me?

Hey All. I am 30, for most of my life I've been using a Roth IRA (usually backdoor roth IRA) for my retirement goals but I'm wondering if that's still the best route for me. I'm US based, income has been averaging $400,000 the last to years, and will likely be in the 350-400 range for 2019. I am li...
by TheBogleWay
Wed Jan 02, 2019 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA or traditional IRA for me?
Replies: 5
Views: 418

Roth IRA or traditional IRA for me?

Hey All. I am 30, for most of my life I've been using a Roth IRA (usually backdoor roth IRA) for my retirement goals but I'm wondering if that's still the best route for me. I'm US based, income has been averaging $400,000 the last to years, and will likely be in the 350-400 range for 2019. I am lik...
by TheBogleWay
Thu Dec 13, 2018 5:42 am
Forum: Investing - Theory, News & General
Topic: Will the 2008 recession help avoid severity of the next recession?
Replies: 40
Views: 2589

Will the 2008 recession help avoid severity of the next recession?

As far as I know, a big driver of recessions is fear. Fear and uncertainty will turn a mediocre/standard recession into a larger recession. 2008 seems a lot more recent than it was, I think it's still fresh in everyone minds, and we recovered as a country onto better times. A part of me thinks seein...
by TheBogleWay
Thu Dec 13, 2018 4:33 am
Forum: Investing - Theory, News & General
Topic: Rebalance market timing - a good idea?
Replies: 7
Views: 644

Re: Rebalance market timing - a good idea?

I've been all-index fund and hold and stick to the plan like Bogleheads suggest for nearly a decade now. However the last month I had an idea. If a recession to occur, a bad one, 50-70%+ drop in stocks, I'd be tempted to dump my bonds into stocks. Bonds were less likely to take a loss in this hypoth...
by TheBogleWay
Sat Dec 01, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: What is the lowest 'safe' emergency fund we should have?
Replies: 40
Views: 3978

Re: What is the lowest 'safe' emergency fund we should have?

In fact being debt free and having a large taxable account, quickly accessible without tax or penalty, you might not need a dedicated "emergency fund" at all. I'm glad to hear the rest of your post and that 3 months may seem logical, but I have a question about this last part you wrote. In most cas...
by TheBogleWay
Sat Dec 01, 2018 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: What is the lowest 'safe' emergency fund we should have?
Replies: 40
Views: 3978

Re: What is the lowest 'safe' emergency fund we should have?

In fact being debt free and having a large taxable account, quickly accessible without tax or penalty, you might not need a dedicated "emergency fund" at all. I'm glad to hear the rest of your post and that 3 months may seem logical, but I have a question about this last part you wrote. In most cas...
by TheBogleWay
Sat Dec 01, 2018 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: What is the lowest 'safe' emergency fund we should have?
Replies: 40
Views: 3978

What is the lowest 'safe' emergency fund we should have?

Hi BH, I want to be very invested but at the same time over the last few years I've realized the importance of an emergency fund. Generally, people lose jobs while the market is WAY down, and being forced to sell to cover life expenses is how you can lose a lot. Here's our situation: We are age 30 a...
by TheBogleWay
Thu Nov 22, 2018 6:15 am
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 754
Views: 100877

Re: How much international stock? A suggestion.

I still feel very bullish on the US stock market, we seem to lead on innovation, and that doesn't seem to be slowing down much.

Although an amateur's gut feeling isn't worth all that much.
by TheBogleWay
Thu Nov 22, 2018 6:13 am
Forum: Investing - Theory, News & General
Topic: A lot of us expected a US stock "pull back" is this it?
Replies: 61
Views: 8596

A lot of us expected a US stock "pull back" is this it?

I still consider myself a new-ish investor, been doing it ~7-8 years. Majority of stock is in the US total stock market. Down a pretty decent amount the last few months. Is this the pull back? Because this doesn't feel that bad at all. Lol. (knock on wood) Also, yes I'm aware this is somewhat of a c...
by TheBogleWay
Thu Oct 11, 2018 12:23 am
Forum: Investing - Theory, News & General
Topic: Is it smart to hold more cash right now?
Replies: 16
Views: 1792

Is it smart to hold more cash right now?

I'm not entirely sure if this falls under the "market timing" umbrella, however a lot of posters here (even those who stay the course) agree that valuations are high. I'm very heavy in stocks and US stocks and they're so high right now, I'm wondering if it would be smart to increase my "emergency fu...
by TheBogleWay
Mon Sep 17, 2018 11:24 pm
Forum: Investing - Theory, News & General
Topic: Slight fear of investing in general now
Replies: 20
Views: 2253

Re: Slight fear of investing in general now

Appreciate the replies in here.
by TheBogleWay
Fri Sep 14, 2018 3:41 am
Forum: Investing - Theory, News & General
Topic: Slight fear of investing in general now
Replies: 20
Views: 2253

Re: Slight fear of investing in general now

This is completely normal. As you get older and your portfolio grows (i.e. you have more to lose) while your future earning power diminishes (i.e. you have less time to make up any losses with earnings from your work)--it is expected that you will get more risk adverse. You should probably re-exami...
by TheBogleWay
Fri Sep 14, 2018 2:43 am
Forum: Investing - Theory, News & General
Topic: Slight fear of investing in general now
Replies: 20
Views: 2253

Slight fear of investing in general now

Hi BH, For better or worse (probably worse) as I've gotten older I've defined a lot of myself based on what I *expect* I'll be able to do for my current and future family/friends as a provider. It's a giant deal to me and extremely important to me, I have a lot of people who will depend on me. On to...
by TheBogleWay
Sun Aug 19, 2018 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Odd credit issue? (took out loan for ring and credit drops 90 pts?)
Replies: 15
Views: 1064

Re: Odd credit issue? (took out loan for ring and credit drops 90 pts?)

There have been three to four posts in the past week about a credit score "mysteriously" dropping. What do almost all have in common? Credit Karma. Credit Karma is not a FICO score. It is a Vantage 3.0 score. Virtually no one uses that score for anything of any value, they use FICO. If you have acc...
by TheBogleWay
Sun Aug 19, 2018 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: Odd credit issue? (took out loan for ring and credit drops 90 pts?)
Replies: 15
Views: 1064

Re: Odd credit issue? (took out loan for ring and credit drops 90 pts?)

After a quick Google search, I may have found out what happened. It turns out that instead of a more traditional loan, what they do is use Wells Fargo and essentially open up a credit card. So, it instantly looks like I took a 20k credit limit credit card and maxed it. I'm not entirely happy about t...
by TheBogleWay
Sun Aug 19, 2018 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Odd credit issue? (took out loan for ring and credit drops 90 pts?)
Replies: 15
Views: 1064

Odd credit issue? (took out loan for ring and credit drops 90 pts?)

Hi All, I just recently got engaged. I splurged on a ring, which is abnormal for me/us as it's $20k, but that's less than a months income and not too big of a deal. Don't judge me... we're normally very very big savers and live frugal. The store had a 0% interest option for a 12 month loan, so natur...
by TheBogleWay
Sat Aug 18, 2018 12:56 am
Forum: Investing - Theory, News & General
Topic: Remind me (again) how real estate isn't a GREAT investment?
Replies: 158
Views: 14462

Re: Remind me (again) how real estate isn't a GREAT investment?

Are you confusing the down payment requirements for an owner occupied home vs an investment property? 0% down you say? I don't know, am I? I know you can get a mortgage with 0% down these days, you pay a bit in interest rate and some insurance fees on the home but it's possible, assumed you could d...
by TheBogleWay
Sat Aug 18, 2018 12:16 am
Forum: Investing - Theory, News & General
Topic: Remind me (again) how real estate isn't a GREAT investment?
Replies: 158
Views: 14462

Re: Remind me (again) how real estate isn't a GREAT investment?

Pretty frequently I'll hear people say they "bought" a rental property, and the tenant's rent covers the entire mortgage payment. It sounds like that's not uncommon at all. In fact, it sounds more common that rent covers the mortgage payment than the opposite. Many even say it covers the mortgage a...
by TheBogleWay
Fri Aug 17, 2018 11:39 pm
Forum: Investing - Theory, News & General
Topic: Remind me (again) how real estate isn't a GREAT investment?
Replies: 158
Views: 14462

Re: Remind me (again) how real estate isn't a GREAT investment?

Besides the cost of the down payment, you are not factoring in: Potential months not rented while looking for new tenants. Cost of upkeep / repairs on building. Time spent on finding reliable contractors / plumbers / electricians to do those repairs. Cost to repair damage tenants may cause. Possibi...
by TheBogleWay
Fri Aug 17, 2018 11:17 pm
Forum: Investing - Theory, News & General
Topic: Remind me (again) how real estate isn't a GREAT investment?
Replies: 158
Views: 14462

Remind me (again) how real estate isn't a GREAT investment?

Hey All, I've been a BH'er for almost a decade now. My self taught education through this forum/others has essentially brought me to a Boglehead style investing model, I have used the lazy 3 fund portfolio with basic rules about taxable accounts/all that for many years and it's gone GREAT and I have...
by TheBogleWay
Fri Jul 20, 2018 1:47 am
Forum: Investing - Theory, News & General
Topic: International Stocks in Taxable?
Replies: 34
Views: 3413

Re: International Stocks in Taxable?

The complexity piece doesn't really come to play, unless you are holding a substantial amount. I believe an amount that dishes out over 20k in foreign dividends as that kicks in several other IRS 'choose your own adventure' forms that needs to be filled out. The rest is pretty simple from my own ex...
by TheBogleWay
Thu Jul 12, 2018 6:36 pm
Forum: Investing - Theory, News & General
Topic: What recent (last ~8 months) events have changed the total US stock market?
Replies: 14
Views: 1467

Re: What recent (last ~8 months) events have changed the total US stock market?

I stand corrected on my wording, it's not drastic, but I'm still curious if anyone is able to label the minor changes since January just for fun.

Thanks!
by TheBogleWay
Thu Jul 12, 2018 3:44 am
Forum: Investing - Theory, News & General
Topic: What recent (last ~8 months) events have changed the total US stock market?
Replies: 14
Views: 1467

Re: What recent (last ~8 months) events have changed the total US stock market?

The Tax Cuts and Jobs Act of 2017 , which potentially increases after-tax margins on US sales, and somewhat incentivizes the repatriation of funds held internationally and may be fueling record levels of stock buybacks https://money.cnn.com/2018/07/10/investing/stock-buybacks-record-tax-cuts/index....
by TheBogleWay
Thu Jul 12, 2018 3:01 am
Forum: Investing - Theory, News & General
Topic: What recent (last ~8 months) events have changed the total US stock market?
Replies: 14
Views: 1467

What recent (last ~8 months) events have changed the total US stock market?

Just for my knowledge and for fun, can some of you here explain some world/US events that have really impacted the total US stock market over the last 8 months? Relatively vague is fine. There have been some drastic swings, while I know a lot of them can't be explained, I know some can (after the fa...
by TheBogleWay
Sat Jul 07, 2018 3:45 am
Forum: Personal Finance (Not Investing)
Topic: How do normal people afford the Bay Area?
Replies: 48
Views: 5629

Re: How do normal people afford the Bay Area?

Anyone who thinks 200,000 is not enough income to live a nice life in the Bay Area is mistaken.Yes,you cannot live in the more expensive areas if you need a big place and have 4 kids,but people are getting a bit carried away with all the hyperbole,or they simply have expectations that are too high....
by TheBogleWay
Fri Jul 06, 2018 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Teaching local communities how to save/invest
Replies: 12
Views: 1052

Re: Teaching local communities how to save/invest

Appreciate all the comments about YouTube, I really want to do this in person, at least to start. I'm around 30 also but think it's a lot more impactful than a YT video.
by TheBogleWay
Fri Jul 06, 2018 3:45 am
Forum: Personal Finance (Not Investing)
Topic: Teaching local communities how to save/invest
Replies: 12
Views: 1052

Teaching local communities how to save/invest

I hope this thread topic fits this subsection, looked like the best place. It's personal, and finance related, but about helping others and not necessarily myself. One of my major life goals that I'd like to achieve is setting up some sort of routine where I speak to a crowd (doesn't have to be big ...
by TheBogleWay
Fri Jul 06, 2018 3:39 am
Forum: Personal Consumer Issues
Topic: Trip to Hawaii - what do I need to know
Replies: 54
Views: 7032

Re: Trip to Hawaii - what do I need to know

I went to Hawaii with my SO about 8 months ago. I've only been once, and only went to Oahu, but I may have some decent feedback if you pick that island. We're close to 30. First, people said Oahu was one of the "less impressive" islands so my expectations were low. It beat all of my expectations. We...
by TheBogleWay
Fri Jul 06, 2018 2:30 am
Forum: Investing - Help with Personal Investments
Topic: Can you help me figure out how much emergency fund $ I REALLY need?
Replies: 38
Views: 3203

Re: Can you help me figure out how much emergency fund $ I REALLY need?

I keep about $24k in saving/cd’s. This is about 6 months of bare minimum living expenses. It is also a good fund for my wife if something were to happen to me unexpected. Think about what is best for your family. This might deserve it's own thread or some searching, but care to give any tips on CDs...
by TheBogleWay
Thu Jul 05, 2018 10:47 pm
Forum: Investing - Help with Personal Investments
Topic: Can you help me figure out how much emergency fund $ I REALLY need?
Replies: 38
Views: 3203

Re: Can you help me figure out how much emergency fund $ I REALLY need?

$10k. No. Not based on info you’ve provided. I’d ballpark 6 months of necessary expenses. Doesn’t have to sit in your checking account. A high yield savings account is fine. There are many other options. Kinda depends how susceptible you might be to an emergency. Don’t count on your credit card to ...
by TheBogleWay
Thu Jul 05, 2018 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: Can you help me figure out how much emergency fund $ I REALLY need?
Replies: 38
Views: 3203

Can you help me figure out how much emergency fund $ I REALLY need?

I've heard some say 3 months expenses, and I've heard some say 6 months expenses should be available in your checking. I spend about $5,000/month encompassing everything, but that's also at my current lifestyle where we aren't in a major financial crash/I'm well employed earning a good income. If a ...
by TheBogleWay
Wed Jun 27, 2018 9:54 pm
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 209
Views: 22560

Re: Did you celebrate when you finally hit $1m?

Still so surprised to see the bulk (90%?) of replies saying it's not significant, nor did they feel the need to celebrate in any way, or that they barely noticed. I understand that for us, those who are disciplined enough (and in the normal-ish income range) that our lifestyle doesn't change after h...
by TheBogleWay
Wed Jun 27, 2018 9:31 pm
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 209
Views: 22560

Re: Did you celebrate when you finally hit $1m?

FedGuy wrote:
Fri Jun 22, 2018 9:27 pm
When I saw I joined the two comma club, I posted on this board and went to get take-out.

To this day, I've never mentioned it to anyone except on this board.

We should make a liquor, and call it Dos Comas
by TheBogleWay
Fri Jun 22, 2018 7:05 pm
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 209
Views: 22560

Re: Did you celebrate when you finally hit $1m?

At $1m, I made a little video of me speaking to the camera on how I got to that point and I also filmed the $1m account balance on Morning star. I did it for me to look back at one day with no plan to post it publicly. I celebrated by going on a family cruise. Although the cruise was pre-planned so...
by TheBogleWay
Fri Jun 22, 2018 6:45 pm
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 209
Views: 22560

Re: Did you celebrate when you finally hit $1m?

I'm surprised to see a majority of you barely noticed or cared! I guess it all depends on your perspective. Sure, it's just a number and your life doesn't change from when you had $990,000, but it's the milestone that counts. Technically birthdays are the same thing, why celebrate 30, 40, 50, etc wh...
by TheBogleWay
Fri Jun 22, 2018 5:06 am
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 209
Views: 22560

Did you celebrate when you finally hit $1m?

Did you celebrate your first $1m and if so, how? I'm getting close, excluding some big crash or unexpected emergency, I'm predicting about 1 year give or take 6 months. It reminds me of looking at the clock near the end of class. The first portion seems to have went by quickly, and now at the very e...
by TheBogleWay
Fri Jun 22, 2018 4:57 am
Forum: Personal Finance (Not Investing)
Topic: Is the first 100k really the hardest?
Replies: 156
Views: 45586

Re: Is the first 100k really the hardest?

Yes, I'd say so, because if you actually reach a savings of $100k, I think that defines what sort of person you are. If you can control your urges enough to save $100,000, you have the ability to plan for your future, and it likely took a lot of work to get there. At $100k, you start to notice inter...
by TheBogleWay
Sat May 26, 2018 4:18 am
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 54
Views: 5124

Re: The "4% withdrawl rate" - would it apply to someone "retiring" in their 70s?

How much is invested? How much income do they expect from that? 2% CDs or stocks and bonds at whatever allocation? How much do they spend each year for normal expenses? Only from that can they, or any of us, make a reasonable estimate of their withdrawal rate. They can decide on any rate they wish,...
by TheBogleWay
Sat May 26, 2018 3:49 am
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 54
Views: 5124

Re: The "4% withdrawl rate" - would it apply to someone "retiring" in their 70s?

How much are this person’s monthly expenses? Are we talking meeting minimal life expenses or splurging with the extra $1,000/month? If due to overspending early on are there places to cutback if necessary in later years? The less you spend, the longer the nest egg will last. But, at mid-70s, no rea...
by TheBogleWay
Sat May 26, 2018 2:31 am
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 54
Views: 5124

The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?

I am close to somebody who is "retiring" in their mid 70s. They don't have any retirement, but may finally have a small nest egg after selling their home and their net worth if all goes well should be about $300-400k. At their age, would you still recommend a 4% withdrawl rate? Assuming it's $350,00...
by TheBogleWay
Sat May 26, 2018 2:01 am
Forum: Investing - Theory, News & General
Topic: I'm an indexer... but...
Replies: 37
Views: 4951

Re: I'm an indexer... but...

8 years of staying the course during a bull market. Lol. This is said so often around here, I get it completely, it's a scary thought to imagine a bad recession. That being said, I feel like I'd stay the course. Keep an emergency fund, and I don't know why in my right mind I'd sell unless it was so...
by TheBogleWay
Fri May 25, 2018 10:58 pm
Forum: Investing - Theory, News & General
Topic: I'm an indexer... but...
Replies: 37
Views: 4951

Re: I'm an indexer... but...

The fund has outperformed VTSAX (total US market) over 5 and 10 year periods by a few percent. Why is VTSAX the right comparison? When I do a factor-regression on the fund[1] the factors are pretty far from "total US market". It is a heavy growth fund with a large profitability tilt. It also has ne...
by TheBogleWay
Fri May 25, 2018 10:45 pm
Forum: Investing - Theory, News & General
Topic: I'm an indexer... but...
Replies: 37
Views: 4951

Re: I'm an indexer... but...

The boglehead investment method isn't law. There's nothing wrong with holding a few shares in PRGFX in addition to your portfolio. Besides the proven track record for investment returns for a 3 fund portfolio... Simplicity, convenience, ease of investment/rebalancing, etc. is whats appealing to the...
by TheBogleWay
Fri May 25, 2018 10:37 pm
Forum: Investing - Theory, News & General
Topic: I'm an indexer... but...
Replies: 37
Views: 4951

I'm an indexer... but...

I've always been a Boglehead 3 fund style investor, have never swayed with 8 years of investing. I often preach indexing and the 3 fund portfolio. However a friend recently brought up the fund PRGFX, which is the T. Row Price Growth Stock. - https://finance.yahoo.com/quote/PRGFX/performance?p=PRGFX ...
by TheBogleWay
Fri May 25, 2018 1:57 am
Forum: Personal Finance (Not Investing)
Topic: Are there any experienced real-estate people here?
Replies: 39
Views: 4186

Re: Are there any experienced real-estate people here?

If the market is very strong I would price it so you get multiple offers and hopefully there will be a bidding war which will drive the price up (likely to happen in a desirable area of Seattle). It is not a good strategy to significantly over price the house (greater than 10%) hoping a naive buyer...