Search found 859 matches

by hightower
Fri Jan 22, 2021 6:45 am
Forum: Personal Investments
Topic: Priority of investing versus pay off of mortgage debt
Replies: 38
Views: 4046

Re: Priority of investing versus pay off of mortgage debt

Hi everyone, I am behind in my retirement. I have about 18 years to retire. Single dad w 2 teens. The wonderful people in this thread are helping me with asset allocation, savings rate, and rebalancing. https://www.bogleheads.org/forum/viewtopic.php?f=1&t=335474&p=5728663#p5728663 The topic came up for how much I can save and we discussed how not having a mortgage when you retire is good. However, we wanted to get more input as to what to do as I am unsure if I should prioritize retirement savings vs. paying off the mortgage by the time I retire or shortly thereafter. Maybe you folks could help me on how to strategize for how to pay off the house before I retire (or when I retire; or within a few years of retirement) while also inc...
by hightower
Wed Jan 20, 2021 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Car purchase for college, financing and loan payoff
Replies: 9
Views: 608

Re: Car purchase for college, financing and loan payoff

Have been reading for a long time, first time posting. I have a question regarding purchasing a used car for my daughter. Initially, inspired by Dave Ramsey, I thought that paying cash for the car is the only way to go. After visiting dealerships this weekend to find a good value on a used 2020 Nissan Altima, we discovered, that the best deals are available if we finance. Cash purchase will be at least $1k more per the information from dealerships. So, now I am thinking that it might be indeed a good idea to finance the purchase. Since we are considering financing now, maybe it is also good to start building credit history for my daughter who is 20. I was thinking that I will finance the car and co-sign with her and after making three requ...
by hightower
Wed Jan 20, 2021 2:38 pm
Forum: Personal Consumer Issues
Topic: Washing machine decision/feedback - GE GFW850SSNWW vs. LG WM4000HWA
Replies: 32
Views: 7752

Re: Washing machine decision/feedback - GE GFW850SSNWW vs. LG WM4000HWA

I've searched for previous front-loader washing machine threads, but didn't see this newer model GE washing machine discussed. Does anyone have experience with the GE 5.0 cu. ft. washing machine with the UltraFresh vent system (GFW850SSNWW)? https://www.geappliances.com/appliance/GE-5-0-cu-ft-Capacity-Smart-Front-Load-ENERGY-STAR-Steam-Washer-with-SmartDispense-UltraFresh-Vent-System-with-OdorBlock-and-Sanitize-Allergen-GFW850SSNWW I'm trying to decide between the LG WM4000HWA (https://www.lg.com/us/washers/lg-wm4000hwa-front-load-washer) and the GE. Consumer Reports gives the LG a higher rating (overall score of 86 vs. 74 for the GE). The GE gets a 1/5 in owner satisfaction and a 3/5 in predicted reliability, but otherwise gets high marks...
by hightower
Mon Jan 18, 2021 2:50 pm
Forum: Personal Investments
Topic: Age 38 - How are we doing for early retirement?
Replies: 9
Views: 1961

Re: Age 38 - How are we doing for early retirement?

Obviously this depends on when/what age we'd retire and how much we'd expect to spend. But we're just starting to think about retiring early if we feel we have "enough" at some point before our 60s. Some of the funds we're in are slightly less aggressive than recommended for our age since we're thinking we might want to access it early (via Roth conversion ladders etc.). Cash (in “high interest” savings) – used for travel, home projects, e-fund: $70k Debt: Just our mortgage: $505k; Home value: ~$800k Tax filing status: Married joint State of residence: VA Age: 38/38 Current retirement assets total: $740k Taxable: $36k in VTSAX His 401k: $260k in T Rowe Price Retire 2050 TR C (60% US stocks, 30% non-US stocks, 6% bonds, 4% money m...
by hightower
Fri Jan 08, 2021 2:28 pm
Forum: Personal Investments
Topic: Should I sell my Tesla [stock] now or wait?
Replies: 43
Views: 3518

Re: Should I sell my Tesla [stock] now or wait?

Tesla was selling for about 250 to 350 until about December of 2019, then it jumped to about $1,500 by August 2020 when it did a 5 for 1 stock split, $300 after the split. When I heard about the pending split, I bought mine on August 8 for $15,010 a share, $302 after the split. As I write this in the middle of the day on January 8th, the price is now at $872, a 189% gain in only 5 months. If I can hold my shares until August, I can get a nice LTCG and manage my IRA income so that I can take that income tax free, but I risk a huge drop if the value goes back to pre-spike levels. What is everyone else’s opinion on how the price for TSLA will react over the next 8 months? Also, it's posts like this that make me glad I decided not to play the ...
by hightower
Fri Jan 08, 2021 2:27 pm
Forum: Personal Investments
Topic: Should I sell my Tesla [stock] now or wait?
Replies: 43
Views: 3518

Re: Should I sell my Tesla [stock] now or wait?

Tesla was selling for about 250 to 350 until about December of 2019, then it jumped to about $1,500 by August 2020 when it did a 5 for 1 stock split, $300 after the split. When I heard about the pending split, I bought mine on August 8 for $15,010 a share, $302 after the split. As I write this in the middle of the day on January 8th, the price is now at $872, a 189% gain in only 5 months. If I can hold my shares until August, I can get a nice LTCG and manage my IRA income so that I can take that income tax free, but I risk a huge drop if the value goes back to pre-spike levels. What is everyone else’s opinion on how the price for TSLA will react over the next 8 months? Ask all the people who sold before how they feel!! Are you joking? HODL...
by hightower
Fri Jan 08, 2021 2:07 pm
Forum: Personal Investments
Topic: Should I sell my Tesla [stock] now or wait?
Replies: 43
Views: 3518

Re: Should I sell my Tesla [stock] now or wait?

Interesting opinion piece. Opinion: I’ve pulled out all the stops for Tesla — but can’t find the upside on the stock https://www.marketwatch.com/story/ive-pulled-out-all-the-stops-for-tesla-but-cant-find-the-upside-on-the-stock-11610117368?mod=home-page Love it. Great piece, thanks for sharing. And the author is right. "Even if a lot of things go very right, it is extremely difficult to believe that the stock’s future will look like its recent past. In my view, a great many things have to go perfectly well – many of them outside of Tesla’s control – for this not to end horribly." In my opinion, when Tesla's become more widespread and you're seeing them everywhere, all the time, people are going to lose that excitement for owning ...
by hightower
Fri Jan 08, 2021 1:50 pm
Forum: Personal Investments
Topic: Should I sell my Tesla [stock] now or wait?
Replies: 43
Views: 3518

Re: Should I sell my Tesla [stock] now or wait?

Tesla was selling for about 250 to 350 until about December of 2019, then it jumped to about $1,500 by August 2020 when it did a 5 for 1 stock split, $300 after the split. When I heard about the pending split, I bought mine on August 8 for $15,010 a share, $302 after the split. As I write this in the middle of the day on January 8th, the price is now at $872, a 189% gain in only 5 months. If I can hold my shares until August, I can get a nice LTCG and manage my IRA income so that I can take that income tax free, but I risk a huge drop if the value goes back to pre-spike levels. What is everyone else’s opinion on how the price for TSLA will react over the next 8 months? Also, it's posts like this that make me glad I decided not to play the ...
by hightower
Fri Jan 08, 2021 1:41 pm
Forum: Personal Investments
Topic: Should I sell my Tesla [stock] now or wait?
Replies: 43
Views: 3518

Re: Should I sell my Tesla [stock] now or wait?

Tesla was selling for about 250 to 350 until about December of 2019, then it jumped to about $1,500 by August 2020 when it did a 5 for 1 stock split, $300 after the split. When I heard about the pending split, I bought mine on August 8 for $15,010 a share, $302 after the split. As I write this in the middle of the day on January 8th, the price is now at $872, a 189% gain in only 5 months. If I can hold my shares until August, I can get a nice LTCG and manage my IRA income so that I can take that income tax free, but I risk a huge drop if the value goes back to pre-spike levels. What is everyone else’s opinion on how the price for TSLA will react over the next 8 months? Lol, welcome to the world of buying individual stocks. I know I'm not o...
by hightower
Fri Jan 08, 2021 1:31 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3621
Views: 568920

Re: Major Milestone reached!

Can't share this w/ anybody other than my family members, Just crossed the 500K mark! Its been quite the journey, starting at -130K in debt right out of college at age 22 to now making over 400K at age 31. Life is good and fun when the stock market is going up like crazy (Thank you Tesla / Nio / ARKK / ARKG / CRISPR / Nvidia). Last year decided to switch up my portfolio to individual stocks and ark funds, placed my 100K downpayment into nio, and it has handsomely paid off thus far, hopefully it doesn't end anytime soon :greedy I am definitely starting to feel the effects of compounding interest, what a powerful force it is. Looking forward to what the future holds. Cheers. :beer Sounds a bit like a troll post? I'm guessing you know we all ...
by hightower
Mon Jan 04, 2021 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Can I Afford a $900k house?
Replies: 28
Views: 3907

Re: Can I Afford a $900k house?

If this is your first house, just understand that owning a house is much more than just the payment. Get a quote on insurance to see one aspect. You will find new/interesting ways to blow cash that will "Bogle" your mind. Yes, another very important point. Here's an example from my life. We just had to replace our 10 year old HVAC system. Cost us 11k. We didn't expect that this year. Then, just this week, after a heavy rain, we noticed some water damage on the ceiling of our garage. Now we have a roofer coming to figure out where the leak in the roof is. I'm guess we're in for another expensive surprise. We also had to buy a new dishwasher this year. That's on top of the thousands we spent on new furniture and such when we moved ...
by hightower
Mon Jan 04, 2021 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Can I Afford a $900k house?
Replies: 28
Views: 3907

Re: Can I Afford a $900k house?

My wife and I just had a newborn, so we're looking to buy a $900k house near our parents (eventually will need free babysitting :D ) in California. For the past couple years, we've aggressively fully paid off over $400k of cumulative student loans and both our cars, while still maxing out IRAs/401k almost every year. Being debt-free, here is a current snapshot of where we stand: - age: 35 - household income: $225k (expected to increase every year) - combined IRA/401k: $340k - taxable brokerage: $50k - cash for down payment: $220k We're hoping we can do a 15yr mortgage but after running some numbers through a mortgage calculator, I think we can afford the monthly payments if we are to still max out our IRAs/401ks. However, this will hardly ...
by hightower
Thu Dec 31, 2020 9:54 am
Forum: Personal Investments
Topic: How to invest $200k (from 2.25% cash out refinancing)?
Replies: 193
Views: 14729

Re: How to invest $200k (from 2.25% cash out refinancing)?

The interests are so ridiculously low so I decided to take a portion of my equity out while doing refinancing. I am getting a 2.25% 15-year loan. $200K of the loan is cash out. I already max out my 401k and IRA for many years. I also have some taxable accounts with half stock index and half bond index. What would be your suggestions for investing the 200k? I don’t disagree with this approach. Seems a little ridiculous that you are being criticized. Math is math. A dummy can make 7% annualized in index funds over the long haul and you are paying 2.25%. It’s math. Obviously some things to consider are income security and how long you plan to stay in the house. Personally I am not doing this now bc I buy individual companies and right now I d...
by hightower
Wed Dec 30, 2020 2:01 pm
Forum: Investing - Theory, News & General
Topic: Preparing for (high) volatility
Replies: 8
Views: 698

Re: Preparing for (high) volatility

I have been thinking about the following the last few days so appreciate expert opinions: There is extreme polarization of views and events (political, climate, pandemic, you name it...) because of social media (and other factors...). Volatility is the nature of the stock market and always a factor to consider so how does an investor prepare for it especially if it increases going forward? Any studies out there which have studied volatility over various decades/ time periods? Just have a sensible asset allocation, rebalance, keep up the savings, stay the course, don't get emotional i.e. the usual BH philosophy? Thanks in advance as always! I've felt this way since like 2015 or even before. What I've learned since then is to not do anything...
by hightower
Mon Dec 28, 2020 4:57 pm
Forum: Non-US Investing
Topic: I want 15% yearly ROI. How to go about it? [Croatia]
Replies: 146
Views: 16819

Re: I want 15% yearly ROI. How to go about it? [Croatia]

antisa wrote: Sun Dec 27, 2020 5:19 pm If I would like to earn on average 15% from my portfolio investments, how to go about it?

Let's assume I can tolerate any risk and my time horizon is 30 years.
I would like to be married to Margot Robbie. Oh and I want to win the lottery.
by hightower
Mon Dec 21, 2020 6:48 am
Forum: Personal Consumer Issues
Topic: I'm buying a Tesla...Why I'm NOT paying cash
Replies: 25
Views: 3772

I'm buying a Tesla...Why I'm NOT paying cash

Typically, I preach that if you can't pay cash for a car, you can't afford it. I still believe this. My belief is you should only spend what you are capable of paying cash for. However, that doesn't mean paying cash is always the smartest option. I am picking up a brand new Tesla Model 3 LR AWD on Dec 30th (as long as it arrives on time). This will be my daily driver, replacing my BMW i3. We needed a slightly larger car that is easier to fit my 2 year old in and I needed more range for my new job that will involve highway driving a few times per week. We earn over $300k a year, so this is a very affordable car for us. I have been approved for a $48k 6 year 2.14% loan through Tesla. I'm putting down a little over $6k so that I'm not financin...
by hightower
Fri Dec 18, 2020 4:32 pm
Forum: Personal Investments
Topic: Time to buy Tesla?
Replies: 79
Views: 14471

Re: Time to buy Tesla?

GingerandPiper wrote: Tue Feb 04, 2020 2:28 pm I'm grinning as I write this. I just got a text from my freshman in college grandson who advised me to put $50 in Tesla because the stock is going up!

Well, I guess there is "fun money" to be spent but.....

I think I'll pass, but still wanted to alert the Boglehead community of this opportunity. :-)

Ginger
Well...turns out your grandson was right, lol. Your $50 dollars of tesla stock (`0.33 shares) would be worth around $230 at closing today;) How much did he buy? Too bad you all didn't buy $50k
by hightower
Tue Dec 15, 2020 7:16 am
Forum: Investing - Theory, News & General
Topic: Is Tesla being added to the S&P 500 concerning?
Replies: 87
Views: 11416

Re: Is Tesla being added to the S&P 500 concerning?

Not sure why people are concerned about Tesla being added to the SP500. Like others have mentioned, it's been part of VTSAX for a very long time already.
Let's say it does something "crazy" to the markets when added, like maybe it causes a sharp decline in other stocks that day (I have no idea why it would do this, but it seems others are concerned it could). If this happens guess what I'll do? I'll buy more of the funds I already own. One day sale on stocks. NBD
by hightower
Mon Dec 14, 2020 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: We won the game…then we rolled the dice
Replies: 201
Views: 27765

Re: We won the game…then we rolled the dice

More risk, more potential profit, but also more potential losses. Thanks for sharing your experience. Glad to hear that at least you got the wake up call and downsized your lifestyle a little bit (getting rid of the fancy private schools for instance was a great move no matter what). I am currently obsessed with the desire to quit my job and start up a small business of my own (a small/local farm on land we already own/live on). However, I am not willing to dive into it until I know I have a more secure footing with regards to our income. So, I'm still working my regular 9-5 while I continue to plan and save. It may never happen. But, hearing the struggle of others I do question my sanity for even considering it, lol. How about find a way ...
by hightower
Mon Dec 14, 2020 3:07 pm
Forum: Personal Investments
Topic: Vanguard recommends a 90% stocks/10% bonds allocation for someone 29 years old?
Replies: 41
Views: 6082

Re: Vanguard recommends a 90% stocks/10% bonds allocation for someone 29 years old?

My understanding is that asset allocation is the only way to control investment risk. Taking more risk doesn’t always lead to better returns. Vanguard recommends a 90% stock/10% bond allocation for my 29 year old son, which seems very aggressive. That works great during a bull market, but not so great during a prolonged bear market. I suppose that might be okay for the people who could stay-the-course during a sell-off like the one on March 23, 2020, but many investors don’t understand their risk tolerance and subsequent reaction until a major sell-off happens. Too often that leads to investors selling at the worst possible time and getting back in the market after stocks have had a big run-up. Am I seeing this clearly or is there somethin...
by hightower
Mon Dec 14, 2020 12:58 pm
Forum: Personal Consumer Issues
Topic: Toilet Crack Repair Products
Replies: 121
Views: 7229

Re: Toilet Crack Repair Products

DTalos wrote: Sun Dec 13, 2020 1:40 am I like my toilet and newer ones have a lower gallons per flush rate. Also, a replacement toilet involves a high labor rate to replace, vs a product that might extend the longevity of the toilet tank.

I was thinking about using a masonry crack filler, but I read it's not waterproof. Seems difficult to find something waterproof.
Replacing a toilet is a piece of cake. Takes 5 minutes assuming you have everything you need on hand. Lower gallons per flush rate is a good thing, why would you WANT to waste water?
There's no way you will be able to adequately fix a cracked toilet in a sanitary, safe manner. It's only a matter of time before it gets worse and ends up causing water damage in your house.
Best of luck with your ventures!
by hightower
Mon Dec 14, 2020 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: We won the game…then we rolled the dice
Replies: 201
Views: 27765

Re: We won the game…then we rolled the dice

More risk, more potential profit, but also more potential losses. Thanks for sharing your experience. Glad to hear that at least you got the wake up call and downsized your lifestyle a little bit (getting rid of the fancy private schools for instance was a great move no matter what).

I am currently obsessed with the desire to quit my job and start up a small business of my own (a small/local farm on land we already own/live on). However, I am not willing to dive into it until I know I have a more secure footing with regards to our income. So, I'm still working my regular 9-5 while I continue to plan and save. It may never happen. But, hearing the struggle of others I do question my sanity for even considering it, lol.
by hightower
Mon Dec 14, 2020 12:40 pm
Forum: Personal Investments
Topic: 27 years old - How am I doing?
Replies: 30
Views: 5257

Re: 27 years old - How am I doing?

Hi everyone :) It's been a year since my last check-in and I'm excited to both review my current financial position and learn what else I can improve upon from my fellow Bogleheads. Thanks all in advance for your advice/wisdom. I hope everyone and their families are safe and healthy this holiday season. With that said, here's my current financial snapshot: Net worth : $218,300 - Cash: $12,000 (EF of $4.5k, $6.0k earmarked to front load 2021 Roth IRA, remainder in checking) - Investments: $186,300 - Other Assets: $20,000 (Car) - Debt: None Annual income (pre-tax) : $76,500 + 12-15% bonus (however, anticipating $0 bonus for this year) Annual savings : $38,992 (Would also aim to save my end of year bonus, if any) - 401k: $19,500 - 401k employ...
by hightower
Fri Dec 11, 2020 4:12 pm
Forum: Personal Consumer Issues
Topic: Favorite Travel Experiences
Replies: 178
Views: 18025

Re: Favorite Travel Experiences

Retired at 56 in 1996. Many favorite places. The fjords and scenery in Norway were beautiful. St Petersburg, Russia is remote but interesting. Germany was great...the railways run on time. We especially enjoyed Berlin, Nurenberg, Regensburg, Munich and Bavaria. Italy, is great...train from Rome to Florence to Venice. Cinque Terre, Amalfi Coast, Naples, Vesuvius, and Isle of Capri in the south were scenic. We cruised from Venice to Egypt (Cairo, Giza Pyramids and Sphinx) and Israel (Dead Sea, River Jordan, Sea of Galilee, and Jerusalem). Both Egypt and Israel were by private guided tours. Have seen most of UK...England (wife from Liverpool), Wales, Scotland (Edinburgh and Isle of Skye were nice), as well as Ireland. The many backpacking tri...
by hightower
Fri Dec 11, 2020 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: What should a 23 year old consider before purchasing a Tesla?
Replies: 264
Views: 19196

Re: What should a 23 year old consider before purchasing a Tesla?

I would spend $25k if a cheaper Tesla was available. I don’t want to spend $25k on a gas car and have it outdated since the world is moving towards electricity. You can get a brand new Chevy Bolt for 28k now. Or a used Nissan leaf can be found for great deals too. Also, a used BMW i3 can be had for 12-14k. They are excellent cars, well made with none of the quality issues that Tesla is famous for. Save up cash and buy one of those if you want an electric car. Used 2017 Chevy Bolts are 13k LT or go crazy with the 16k Premier (with fancy pants leather and all the options). https://www.autotrader.com/cars-for-sale/chevrolet/bolt/tacoma-wa-98407?dma=&channel=ATC&relevanceConfig=default&searchRadius=500&location=&marketExten...
by hightower
Wed Dec 09, 2020 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: What should a 23 year old consider before purchasing a Tesla?
Replies: 264
Views: 19196

Re: What should a 23 year old consider before purchasing a Tesla?

neb2020 wrote: Wed Dec 09, 2020 4:00 pm Has anyone considered the intangible downsides for owning a Tesla?

I feel that (opinion, unfortunately no studies to back this up), than owing a Tesla simply paints a target on your back. That you're rich, loaded and "come rob me". I would feel unsafe owning a Tesla because of this.
You should check out the Youtube channel "Wham Bam Teslacam" Lot's of video footage recorded by Tesla's cars sentry mode. Road rage incidents, vandalism, break in's. It's entertaining to say the least.
by hightower
Wed Dec 09, 2020 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: What should a 23 year old consider before purchasing a Tesla?
Replies: 264
Views: 19196

Re: What should a 23 year old consider before purchasing a Tesla?

It’s your money - do what you want with it. Not one anyone else wants you to do. Just ensure you understand your options and alternatives. For example: Option 1 - spend $50k on the Tesla over 5 years Option 2 - spend $25k for a cheaper car over next 5 years and invest the other $25k, which growing at 8% over the next 30 years becomes $250k I would spend $25k if a cheaper Tesla was available. I don’t want to spend $25k on a gas car and have it outdated since the world is moving towards electricity. You can get a brand new Chevy Bolt for 28k now. Or a used Nissan leaf can be found for great deals too. Also, a used BMW i3 can be had for 12-14k. They are excellent cars, well made with none of the quality issues that Tesla is famous for. Save u...
by hightower
Wed Dec 09, 2020 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Talk me out of buying a $1m condo in San Francisco in December 2020
Replies: 104
Views: 12150

Re: Talk me out of buying a $1m condo in San Francisco in December 2020

ClevrChico wrote: Wed Dec 09, 2020 10:53 am
varietyjumping wrote: Wed Dec 09, 2020 12:23 am
  • Personal details: It's just me. No spouse, no kids, don't want or plan to have kids.
I believe you, but all of my friends (and myself) that said this were married with at least one kid within a few years. :D
Yep. I said the same thing up until the age of about 34 or so. Although I was already married at his age. My wife didn't want kids at the time either. Now we have a 2 year old and I'm 38. And my wife wants another one right now
by hightower
Wed Dec 09, 2020 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Talk me out of buying a $1m condo in San Francisco in December 2020
Replies: 104
Views: 12150

Re: Talk me out of buying a $1m condo in San Francisco in December 2020

Convincing me to not buy a condo (likely approaching $1m) in late 2020 in San Francisco sounds easy, right? But... the many of the usual assumptions are different for this kind of post: I actually like it here! Want to for at least 5-10+ more years. Have enough cash for at least 20% down on a condo, priced out of all single-family homes. Renting a cheap, not so nice one bedroom and would like to move to something nicer and build equity. Personal details: It's just me. No spouse, no kids, don't want or plan to have kids. Don't own a car and don't want to buy one: walking/biking everywhere is extremely important to me. Love living in a dense urban area. Would seemingly (?) be buying in a dip in the local market: people are fleeing small cond...
by hightower
Wed Dec 09, 2020 2:59 pm
Forum: Investing - Theory, News & General
Topic: TESLA Valuation
Replies: 111
Views: 9118

Re: TESLA Valuation

In certain ways this stock reminds me of Apple from many years ago. They both have very smart, charismatic, visionary, unafraid leaders who led the development of tangible products that people actually can see and use to their delight (i.e iPods, iPhones, Tesla cars, etc.). Jobs went on to revolutionize tech industries and even its customer service (genius appointments) to an extent, creating a devoted following globally, and an ecosystem around his products. I'm writing off the top of my head, but most fans know much more than me and could go on and on. Many remember the market cap of Apple as the iPod came out, then the iPhones, and on and one. While I am fan of both companies, I sense the investment community - institutionally and retai...
by hightower
Wed Dec 09, 2020 2:16 pm
Forum: Investing - Theory, News & General
Topic: TESLA Valuation
Replies: 111
Views: 9118

Re: TESLA Valuation

I'm a big Tesla fan. I am waiting to take delivery on a Model Y Performance any day now in fact. I also have 2 Powerwalls in my basement tied to solar and my house is running off of them right now. I really hope Tesla is as successful as I think they will be. I also hope I don't live to regret buying one of their cars. But, I'm not willing to bet my hard earned cash on their stock anymore. Their share price just doesn't make any sense. A company that is barely profitable should not be more valuable than Berkshire Hathaway. As Elon has admitted himself just last week..."the stock price is due to investor expectations of future profits rather than recent results. If, at any point, they conclude that's not going to happen, our stock will ...
by hightower
Wed Dec 09, 2020 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: What should a 23 year old consider before purchasing a Tesla?
Replies: 264
Views: 19196

Re: What should a 23 year old consider before purchasing a Tesla?

Sourc3 wrote: Tue Dec 08, 2020 3:06 am Of course you should get it. Every 23 year old needs to be able to look back in 10 years and say ‘that was stupid’. This could be your opportunity.

I’ve done my share of rightly justified but stupid financial decisions at your age like getting a bmw.
Lol, best post. Absolutely true though. I did plenty of dumb things at that age too. I think that's why this thread is getting so many responses. Because we all see an opportunity to help prevent another 20 something from making a stupid financial decision. Not just that, but at that age he has an opportunity to be a super star and take advantage of compounding interest from a very young age. By time he's my age (38), he could be in the 2 comma club already.
by hightower
Wed Dec 09, 2020 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: What should a 23 year old consider before purchasing a Tesla?
Replies: 264
Views: 19196

Re: What should a 23 year old consider before purchasing a Tesla?

If you want to go battery electric but save a ton of money, check out off-lease 2017 Chevy bolts. Definitely not the Tesla aesthetic but they can be had for impressively little money for a car with a 200 plus mile range and a good overall reputation. Other electric manufacturers have slow cars. Chevy Bolt's 0-60 is 6.5 seconds, while the model 3 I'm looking at is 4.2. Plus no self-driving. I would rather just get a gas car at that point for the performance rather than get a crappy EV. Look, I get it, Tesla's are fast and that's why a lot of people like them. Other EV's are not "slow" though. They are still faster than most typical ICE cars even at 0-60 in 6 seconds. If you don't believe me, go test drive one and floor it at every...
by hightower
Wed Dec 09, 2020 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: What should a 23 year old consider before purchasing a Tesla?
Replies: 264
Views: 19196

Re: What should a 23 year old consider before purchasing a Tesla?

It’s your money - do what you want with it. Not one anyone else wants you to do. Just ensure you understand your options and alternatives. For example: Option 1 - spend $50k on the Tesla over 5 years Option 2 - spend $25k for a cheaper car over next 5 years and invest the other $25k, which growing at 8% over the next 30 years becomes $250k I would spend $25k if a cheaper Tesla was available. I don’t want to spend $25k on a gas car and have it outdated since the world is moving towards electricity. You can get a brand new Chevy Bolt for 28k now. Or a used Nissan leaf can be found for great deals too. Also, a used BMW i3 can be had for 12-14k. They are excellent cars, well made with none of the quality issues that Tesla is famous for. Save u...
by hightower
Wed Dec 09, 2020 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: What should a 23 year old consider before purchasing a Tesla?
Replies: 264
Views: 19196

Re: What should a 23 year old consider before purchasing a Tesla?

I'm going to add my 2 cents to this discussion too just because. If you don't have enough cash on hand to pay for this car in full with cash, you can not afford this car. Now, I'm not necessarily opposed to taking out a car loan if the terms are good...BUT you should have the option of paying cash meaning cash in hand now. If you don't, you can't afford a 50k luxury car. I make over 300k a year and a 60k Tesla is a big deal to me. I have enough cash at my disposal to buy a couple of Tesla's with cash if I wanted to. That's the type of person who should be buying a 50k car. Not a 23 year old making a modest salary with no savings. 100k/yr is commendable, but you won't be able to build real wealth if you get used to spending half a years sala...
by hightower
Sun Dec 06, 2020 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Hate My Job
Replies: 239
Views: 25642

Re: Hate My Job

Trapper wrote: Sun Dec 06, 2020 9:37 am Become a slacker (hard to do for people our age), so you eventually get terminated. That way you will qualify for unemployment. You will be on the same boat as many others in this era of COVID, so after a break you will be able to re-enter the workforce untainted.
This is not a bad idea IF he doesn't plan on looking for work ever again. But, if he has any plans to find a new job, it would be best to leave on good terms for the resume/references.
by hightower
Sat Dec 05, 2020 8:49 am
Forum: Personal Consumer Issues
Topic: "Buy once, cry once"
Replies: 137
Views: 22690

Re: "Buy once, cry once"

No matter how well made it is, furniture will look dated after 10-15 years. Buy mid-range furniture so you won't feel bad about replacing it when the time comes. Not necessarily if purchasing timeless designs...think the Eames lounge chair, Barcelona chair, Noguchi table, etc. Ahem.... I do not consider any of those three designs to be timeless. Well, not to be insulting, but you're just plain wrong. Eames era lounge chairs for instance are still very relevant today, especially for anyone wanting to go with a mid-century modern theme. There's a reason those chairs are still very expensive. They represent a look that a lot of people still really love. Perhaps you don't like those particular looks, that's fine. But, what you need to do is de...
by hightower
Sat Dec 05, 2020 8:38 am
Forum: Personal Consumer Issues
Topic: "Buy once, cry once"
Replies: 137
Views: 22690

Re: "Buy once, cry once"

No matter how well made it is, furniture will look dated after 10-15 years. Buy mid-range furniture so you won't feel bad about replacing it when the time comes. Not necessarily if purchasing timeless designs...think the Eames lounge chair, Barcelona chair, Noguchi table, etc. Very true. There are a lot of classic, timeless designs that will be relevant no matter when you use them. 1920's-30's style bathrooms, American Farmhouse kitchens, Mid-Century modern living rooms, etc, etc. If you're aware of the look you're going for and choose quality, time tested designs, they will last decades and still look good. People tend to get into trouble when they buy whatever is trendy at the moment and they don't pay attention to the overall theme. Mos...
by hightower
Sat Dec 05, 2020 8:29 am
Forum: Personal Consumer Issues
Topic: "Buy once, cry once"
Replies: 137
Views: 22690

Re: "Buy once, cry once"

what are your thoughts on this mantra? i think it makes sense - for certain items. right now my wife and i are furniture shopping. i could spend $1500 on something that might last 8 years or $3500 on an heirloom piece that might last 25+. where do your habits usually lead to? We are definitely in the camp of buying quality items once, rather than the cheap stuff multiple times. We tend to go with antique/vintage things such as furniture. Our main living room couch is a antique from the 1930's for instance. When we renovate our kitchen we intend to buy high quality cabinets and a high quality stove that will easily last the rest of our lives. Doing the work myself to help justify the increased cost of the cabinets and appliances. The one ar...
by hightower
Thu Dec 03, 2020 7:43 am
Forum: Personal Consumer Issues
Topic: Buying a 1.3M house - worried about unexpected expenses
Replies: 100
Views: 10826

Re: Buying a 1.3M house - worried about unexpected expenses

Yes, if the seller is not allowing an inspection, ABSOULUTELY WALK AWAY. That is a major red flag as stated above. I can't imagine what they are trying to hide, but I've never heard of a seller trying to block a home inspection. I would never agree to buy a home without an inspection and a chance to walk through the house with the inspector myself. It's an educational time to ask questions and understand what you're buying. Also, NEVER again put that large of a good faith deposit down on any home purchase. Unless you're wealthy and 75k loss doesn't bother you. I got screwed by a seller once after the deal fell through for reasons that weren't my own (didn't appraise for enough) and the seller refused to release my 4,000$ deposit. Since then...
by hightower
Thu Dec 03, 2020 7:37 am
Forum: Personal Finance (Not Investing)
Topic: Kill the Mortgage or no?
Replies: 42
Views: 3471

Re: Kill the Mortgage or no?

I think it doesn't matter what you do with the mortgage at this point. 50k in the grand scheme of things is not a big deal. You're kind of splitting hairs at this point. Are you bored or something;)? Lol, no but really, I don't think there's a wrong answer here
by hightower
Wed Dec 02, 2020 4:25 pm
Forum: Personal Consumer Issues
Topic: Recommendation for a beginner chess book for teens
Replies: 8
Views: 690

Re: Recommendation for a beginner chess book for teens

Sounds like others have recently been watching "The Queen's Gambit" on Netflix? ;)

I have started playing Chess on my phone a lot lately. It's a tough game! Most of the time I lose because of pure laziness (not checking for enemy pieces that are a threat, or jumping right in front of danger). It's fun! I too may end up reading a book on it, but so far I've just been playing a lot of games and learning from my mistakes.
by hightower
Tue Dec 01, 2020 9:13 am
Forum: Investing - Theory, News & General
Topic: Tesla leaving Extended for S&P500.
Replies: 37
Views: 5272

Re: Tesla leaving Extended for S&P500.

snailderby wrote: Tue Dec 01, 2020 9:04 am
abuss368 wrote: Mon Nov 30, 2020 10:14 pm I did read about this in the Wall Street Journal. This is resulting in additional buying as the company is added to the S&P 500 index, thus helping the increase in share price.

Crazy how this company has been valued higher than GM!
Tesla's market cap is more than five times the value of Ford and GM combined? :shock:

Tesla: $560 billion
GM: $64 billion
Ford: $36 billion
Yes, it's quite crazy. Although Tesla is not strictly a car company, so a little tough to compare directly to Ford or GM. But, still, their value is hard to justify based on their revenue/profit. It will continue to be a very interesting story to follow that's for sure.
by hightower
Sat Nov 21, 2020 12:25 pm
Forum: Personal Investments
Topic: What is your percentage of debt to NW?
Replies: 203
Views: 20336

Re: What is your percentage of debt to NW?

Not sure that your question makes much sense because net worth means that you've already subtracted your debts from your assets??? So, to ask what your percentage of debt to NW means you're calculating your net worth, then adding your debt back to your calculation?? Your networth is really the key figure to keep in mind. NW = assets minus debts My networth is somewhere in the 750k range. My assets are well above 1 million dollars, but I have a 380k mortgage. Hence how I get to a NW of 750k. I carry no debt currently other than our mortgage. I may have temporary debt on my name for convenience sake, such as a new furnace that I paid for with a 0% interest offer just so I didn't have to liquidate any investments. It will be paid off quickly ...
by hightower
Fri Nov 20, 2020 11:05 am
Forum: Personal Investments
Topic: What is your percentage of debt to NW?
Replies: 203
Views: 20336

Re: What is your percentage of debt to NW?

Not sure that your question makes much sense because net worth means that you've already subtracted your debts from your assets??? So, to ask what your percentage of debt to NW means you're calculating your net worth, then adding your debt back to your calculation?? Your networth is really the key figure to keep in mind. NW = assets minus debts My networth is somewhere in the 750k range. My assets are well above 1 million dollars, but I have a 380k mortgage. Hence how I get to a NW of 750k. I carry no debt currently other than our mortgage. I may have temporary debt on my name for convenience sake, such as a new furnace that I paid for with a 0% interest offer just so I didn't have to liquidate any investments. It will be paid off quickly (...
by hightower
Wed Nov 18, 2020 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Happily retired but seriously considering going back to work
Replies: 82
Views: 9390

Re: Happily retired but seriously considering going back to work

In brief, I am 63 and have thoroughly enjoyed being busily retired for several years. My family and I don't have a real need for more money. I have been offered a fulltime job (about 40-50 hours a week) related to my former career that I believe would be interesting and challenging. The employer understands my comfortable lifestyle; reading between the lines and absent unforeseen events, I can tell the employer doesn't want me to accept the job unless I have about a 5-year commitment in mind. I agree with that thinking on several levels. Fwiw, the job would be mostly remote during Covid and a combo of remote/doable commute post-Covid. I have three weeks to weigh the offer and decide. Other than asking myself non-monetary questions that onl...
by hightower
Wed Nov 18, 2020 9:01 am
Forum: Personal Investments
Topic: 401(k) max out? Thinking it may *not* be the right thing anymore...
Replies: 21
Views: 3022

Re: 401(k) max out? Thinking it may *not* be the right thing anymore...

My thoughts are "A bird in the hand is worth two in the bush." I know I get a tax benefit right now with my Traditional 401k. I don't know what my tax rate will be even next year, much less when I retire. I don't know what capital gains/dividend taxes will be in the future and I don't know that tax laws will continue to treat Roth IRAs the same. So, I max out my 401k Traditional because I know that will reduce my current income by $19.5k. I max out my HSA because it will reduce my current income by $3,550. These deductions allow me to make a larger Roth (or a Roth at all depending on income). It might come back to bite me when I need to start taking RMDs but I don't know that I will even be around when it comes time to start taki...
by hightower
Tue Nov 17, 2020 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Student Loans before buying a house? [Help prioritizing finances]
Replies: 29
Views: 1545

Re: Refinance Student Loans before buying a house?

Spouse and I are looking to buy a house within the next two years, with the earliest possible date being in June 2021. We ran up some credit cards while both in Grad school and have made it a priority to pay it all down - the last payment will go out 12/15/2020 at which point the only credit card "debt" will be on our everyday card which we always pay in full. We both have student loans - mine were refinanced a year ago to a private company and hers are still federal. Given our house buying timeframe and our recently improved credit status, should we look into refinancing my loans again and hers for the first time? Main motivation here is that I think interest rates have dropped considerably over the past 12 months and even if no...
by hightower
Tue Nov 17, 2020 2:01 pm
Forum: Non-US Investing
Topic: I took a 10yr loan to buy TSLA shares
Replies: 289
Views: 62811

Re: I took a 10yr loan to buy TSLA shares [Austria]

I have a small stake in Tesla as well, but I won't be buying anymore. It's less than 10% of my entire portfolio and I'm mostly invested in broad market index funds outside this. BUT, I paid for it with cash from my job. I would never go into debt just to place a bet on a single company. That's incredibly risky, especially if you get too comfortable with doing it and get in over your head. The debt could pile up to an unmanageable level and all of your bets could be failures. Yes, Tesla is an exciting company and I feel strongly about it, but there is ZERO guarantee they will succeed and grow beyond what they are now. You have to fully recognize and appreciate that as a real possibility. You could come out just fine or even better than fine,...
by hightower
Tue Nov 17, 2020 1:45 pm
Forum: Personal Consumer Issues
Topic: Essential kitchen appliances?
Replies: 55
Views: 4049

Re: Essential kitchen appliances?

Hi everyone, I'm a single guy that plans on moving out in the next 2-3 months and I'll be living by myself (maybe, who knows?). I'm learning how to cook and plan on mostly eating at home in order to save on eating expenses and being healthy. Since I'm by myself, I'm not going to be making any feasts and really only need to make a protein and vegetable dish for dinner. Do you guys have any suggestions on some kitchen appliances/tools that would make my cooking life a lot easier? I cook a lot for my wife and 2 year old. So, a little different than cooking for myself, but it's not a bad idea to cook meals for others still (friends like friends who cook good food:)). Could be a good way to meet someone too? ;) Anyway, my favorite/most used ite...