Search found 1751 matches

by runner540
Sat Jan 06, 2024 10:41 pm
Forum: Personal Investments
Topic: 47yo looking to retire, $3.7MM, VHCOL (NYC)
Replies: 24
Views: 6704

Re: 47yo looking to retire, $3.7MM, VHCOL (NYC)

Thanks for the comments everyone. Please keep them coming. To respond the first few comments: I’ve built a full calculator for projected taxes under different scenarios, my projections under the 12% conversion + cap gains scenario are about $4,300 taxes due, which is already accounted for in the ~$82k realized income. I’ve already accounted for NY’s exclusion of $20k in retirement income, as it comes up every year with the RMDs from the inherited account. With another $10k in healthcare expenses, I don’t think it will result in a 20% tax rate, but I’ll start playing around with it to see what comes out. I think taking off some time and moving to a competitor is probably what I will wind up doing, but it’s important to me to have that “secu...
by runner540
Mon Dec 11, 2023 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone Make a Major Career Change in Their Forties?
Replies: 95
Views: 23459

Re: Anyone Make a Major Career Change in Their Forties?

Btw, I am thinking of switching from tech. to accounting. Currently not working due to layoff. Tech will automate accounting out of existence... (but accounting isn't gonna automate tech). Accounting is one of the easiest things to automate. Would recommend considering a field's applicability over the remaining time period of your career (20ish years?). Oof. I don't think you understand the complexity of what accountants do. Tech hasn't managed to even replace bookkeeping, only the easiest parts. Accounting isn't just data in/data out any more than law is. There is a big shortage of CPAs due to the 150 credit hour requirement so it's be a great field to get into right now if you can hack it. I'm studying for the Enrolled Agent exam which i...
by runner540
Wed Nov 29, 2023 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Please poke holes in our early retirement plan
Replies: 45
Views: 7326

Re: Please poke holes in our early retirement plan

Wow, this group really answered the call! The responses were super enlightening and I'll try to cover as much ground as I can in my own reply: For all that brought up inflation: I agree, it's a huge piece I'm missing. TBH, I'm not sure I have the technical expertise to formulate the plan using inflation, weighting of stocks vs. bonds, and different rates of return, especially given how much can change, and I'd rather not drive myself crazy but just move forward with a reasonable plan that is on auto-pilot in the background. Many asked about my mortgage: $625,000 purchase price at 6.00%, $125,000 down payment, $3,818 total mortgage/escrow payment. Pretty high rate since we bought in July - we are putting in $1,800 extra per month into a bro...
by runner540
Sun Nov 26, 2023 7:26 am
Forum: Personal Consumer Issues
Topic: Reduced Caffeine or Decaffeinated/Half Caffeinated?
Replies: 34
Views: 3725

Re: Reduced Caffeine or Decaffeinated/Half Caffeinated?

Quit cold turkey. Then any kind will taste good.
by runner540
Sat Nov 11, 2023 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Worth stretching my budget for first home?
Replies: 44
Views: 4098

Re: Worth stretching my budget for first home?

On the surface based on what you've outlined, I think you should buy it. You've been looking in the same area for years, you can put down up to 40% of the cost (which means you're nearly guaranteed to maintain enough equity to sell if/when you ever choose to), and the resulting loan will be less than 3x your gross income. Also, if you can afford it with a roughly 7.5% mortgage now, you'll REALLY be able to afford it when/if rates drop at you refinance to something substantially lower. This is not a guaranteed possibility of course, but it's likely that during the term of your loan you'll be able to cut your rate down. If you are young and/or expect your income to grow in the coming years then that adds increased cushion to the decision. If...
by runner540
Wed Oct 11, 2023 7:50 pm
Forum: Personal Consumer Issues
Topic: Remodeling - what's worth it and what isn't?
Replies: 45
Views: 4879

Re: Remodeling - what's worth it and what isn't?

Any upgrade/change is worth it to you if you have the money, if you use it and are not worried about "getting your money back". Any color choices or design choices will be out of style in 3-5 years. You may love a wine fridge. The next owner may rip it out first thing. If you have no intention to sell, prioritize changes based on what you will get the most out of. One rule for me: Anything surrounding alkohol is a terrible hobby. It is a bad hobby for health and longevity. But it also helps because your portfolio doesn't have to last as long. I like to cook and entertain so the most money will go into the kitchen (which is pretty typical). I think if you do a lot of the work yourself you have a much higher chance of getting your ...
by runner540
Sat Oct 07, 2023 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: Pulling the Early Retirement Trigger - 39M and Worrier by Nature
Replies: 76
Views: 12030

Re: Pulling the Early Retirement Trigger - 39M and Worrier by Nature

Like many others have said, I think you have enough money to not work in a regular job. For a 39-year-old in a single income family, amassing $5mil is super impressive. Care to share how you did it? Thank you for the compliment. I've been very lucky in my career. I'd call the mix 50% hard work, 25% networking, and 25% luck. I started in accounting and made great connections/mentors. I jumped into financial management at an insurance carrier in the C-Suite and worked closely in strategy, m&a, and operations. I took on complex, difficult projects which didn't so much rely on my technical skills, but being a manager who got people to play nice and coordinate to do complex things. In this, I was rewarded salary wise. My old boss told me, &...
by runner540
Mon Sep 11, 2023 9:12 am
Forum: Personal Finance (Not Investing)
Topic: The Elusive Jobs with Little/No Stress (Burned Out)
Replies: 67
Views: 10326

Re: The Elusive Jobs with Little/No Stress (Burned Out)

I can’t tell if it’s your job to make the data useable or get insights from it. Depending on your skills, you can probably make more doing the same job at a different company.
by runner540
Sun Sep 10, 2023 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Assistance simplifying financial life? (budgeting, pending cc charges, etc.)
Replies: 15
Views: 1726

Re: Assistance simplifying financial life? (budgeting, pending cc charges, etc.)

I'm looking to pare down my accounts and have a more "set it and forget it" financial life. Current Accounts: 1. His/hers employer retirement accounts 2. His/hers Roth IRA (yearly backdoor) - Schwab 3. Our brokerage - Schwab 4. Our checking - Schwab (used only for international travel) 5. Our checking - local bank 6. Our money market - local bank 7. My business account - local bank 8. 2 Amex Cards (only use one, don't want to close the other because it's my oldest account) 9. 1 BoA Card (used for places that don't take Amex, mainly overseas) Our finances: Right now I keep the emergency fund in SNOXX at Schwab. The rest of our cash stays in a local bank money market earning about 4.3% (not terrible) that is basically a modified &q...
by runner540
Mon Aug 28, 2023 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Help Annette Keep Working and Not Retire
Replies: 648
Views: 62211

Re: Help Annette Keep Working and Not Retire

I’ve also not deferred home costs . People with mortgages have understated liabilities because their debt is only the nominal amount rather than the mortgage amount plus interest. having no debt and having front end loaded my home costs (didn’t want the strain of a mortgage in old age) is something one can disagree with philosophically, but it’s part of why my costs are so low. No interest expense. I’m not defending it btw. I made a lot of mistakes and the result is a longer runway to retirement. That’s not how it works. By definition the mortgage is the principle, and interest is an annual flow/expense. By your definition if you had a bond as an investment, or even a bank account, you would also consider all future interest earned as part...
by runner540
Mon Aug 21, 2023 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Help Annette Keep Working and Not Retire
Replies: 648
Views: 62211

Re: Help Annette Keep Working and Not Retire

Looking for some great reasons *not* to retire for another few years. Straight talk appreciated! Esp from folks in VHCOLAs and those already retired who know the pitfalls. My main ones are: I want to keep alert, continue to make a good income, keep active, keep saving and investing and stay relevant. But performing at a high level is tiring, especially in the era of the FIRE movement and Covid era change. If I keep working I can have a high standard of living and extra to spend on health, and if I retire I’ll have to pinch pennies for 40 years, if I’m lucky enough to live so long. You know my stats: Mid 50s, total comp and other income $340k gross, portfolio $1.55 mil very conservatively invested (AA 20/80), plus small home owned outright ...
by runner540
Mon Aug 07, 2023 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Unlock value of low interest mortgage?
Replies: 95
Views: 8472

Re: Unlock value of low interest mortgage?

I realize no-one is forcing me to do anything, but I keep hearing that folks in low interest rate mortgages feel "trapped" in their situation, and cannot change house without major penalty. I myself happen to have a low rate (2.25% / 30yr). Is there not a way to unlock the value of this mortgage? For example, shouldn't it be possible to refinance the mortgage at a higher interest rate, and be compensated (e.g. a cash payout, or a principle reduction). I am not a finance person, so I am having a hard time articulating this, but it just seems to me that there should be a way for me to "sell" this low interest rate to someone, perhaps as part of selling the house. It has a real, and I assume quite calculable value (arbitra...
by runner540
Sun Aug 06, 2023 5:03 pm
Forum: Personal Investments
Topic: Took dream job and essentially in Retirement (withdrawing) while working (accumulating)
Replies: 93
Views: 12073

Re: Took dream job and essentially in Retirement (withdrawing) while working (accumulating)

While the details are different, my family is doing something similar to your plan. I worked full time in a high paying job and saved up $4M while my husband stayed home with the kids. Then we switched places: he now has a much lower paying job that doesn't meet our total expenses, and I consult part time (but won't for too much longer) and focus on the kids and my own hobbies. The plan is he'll work for 20 years total to lock in a pension and retiree health benefits. The biggest difference is that when I stop consulting we'll be taking $60k/year from our investments, which is a 1.5% withdrawal rate, whereas your planned withdrawal rate is 2.5%. Our lower rate leaves us a lot more room for things like paying for college, unforeseen medical...
by runner540
Sat Aug 05, 2023 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Integrity of Soc Sec
Replies: 100
Views: 9917

Re: Integrity of Soc Sec

JoMoney wrote: Sat Aug 05, 2023 9:31 am I'm a bit amazed at how willing some people on here are to just accepting a reduced benefit for the premiums they paid in over their working life.
Perhaps that will make it easier to swallow if means testing are applied to continue to cover those whose plan depends on the benefit they were promised.
I don’t want that, but it’s prudent to not count on it especially for higher income/asset people. Medicare premiums are means tested already.
by runner540
Sat Aug 05, 2023 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Integrity of Soc Sec
Replies: 100
Views: 9917

Re: Integrity of Soc Sec

WalkingBackToHouston wrote: Thu Aug 03, 2023 2:08 pm When running retirement cash flow projections:
1) do you use the values that the social security agency estimates?
2) do you build in some risk factor(s) for social security being changed down the road (extending retirement age, reducing benefits, increasing taxes, etc)? if so how do you adjust the numbers?
3) what percentage do you use to inflate social security benefits as time progresses?
In my 30s.
1. No
2. Yes. I assume $0 for SS.
3. Inflating $0 is still $0
by runner540
Sat Jul 29, 2023 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Can new CPAs make a living in VHCOL areas?
Replies: 32
Views: 3750

Re: Can new CPAs make a living in VHCOL areas?

Zillions wrote: Sat Jul 29, 2023 3:01 am This is not a hypothetical question. Can young and brand new CPAs make enough to actually make a very good living in any VHCOL area (Bay Area / DC etc)? If not, what additional credentials should she earn to improve income / salary prospects?

Thanks.
A brand new CPA needs training and experience. They need to put in their time to make their human capital more valuable. They need to pay attention to exit options. M&A work is hard not more lucrative. A few years at Big 4 can set them up for a much more lucrative path later (controller, CFO). If they want to make six figure out of school: i banking or software engineering.
by runner540
Sat Jul 29, 2023 10:57 am
Forum: Personal Consumer Issues
Topic: Do they bargain at Tiffany's
Replies: 102
Views: 12986

Re: Do they bargain at Tiffany's

Petrocelli wrote: Fri Jul 28, 2023 10:08 am Mrs. Petrocelli and I are coming up on 40 years of marriage in a couple years. I'd like to get her something special. has anyone shopped at Tiffany's? Do you know if they bargain?
Lol no
by runner540
Mon Jul 24, 2023 7:25 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance and Will Question from new dad
Replies: 64
Views: 4830

Re: Life insurance and Will Question from new dad

Put your wife as your POD for all of your retirement/investment accounts. Then everything transfers to her instantly when you pass. Assume you both are on each others bank accounts, and on the house deed? I think you both can be on the car title too. If all that is already done, a will doesn't do that much for you honestly! Although state laws can vary a lot. So that being said, I am in favor of asking friends for a lawyer recommendation. It's not that much money, in the long run. It's good for you guys to be on top of this, and now that you have kids, think about whether you want to set up a trust so that long term.... your monies all go to your children if/once you pass, and if your wife remarries and passes. A lawyer can talk you throug...
by runner540
Sat Jul 22, 2023 7:19 am
Forum: Personal Investments
Topic: Retirement considerations for early 30s: how much is enough, calculating expenses, and when to let off the gas?
Replies: 25
Views: 2268

Re: Retirement considerations for early 30s: how much is enough, calculating expenses, and when to let off the gas?

We are in our early 30s and I have a high income (anywhere from $400-700k depending on the year). We have worked extremely hard over the last decade and have paid off student loans, paid off cars, bought two houses, and have $825k saved up in our investment accounts. I generally like what I do for work (lawyer), but not where I work. Unfortunately, there is no way I could make this kind of money without starting over at another firm, and I don't know how long I can keep up this pace... will it be another 5 years or 10 before I get burned out? I'd like to have a concrete number in my head for "financial independence" so that when I hit it, I know I can take bigger risks (like starting my own firm), or move somewhere else where it ...
by runner540
Fri Jul 21, 2023 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: What role has generosity played in your wealth building?
Replies: 160
Views: 13840

Re: What role has generosity played in your wealth building?

KlangFool wrote: Fri Jul 21, 2023 2:11 pm abundance versus scarcity.

It is a choice.

A) Abundance

I have more than enough for myself and I can afford to give to others.

B) Scarcity

I do not have enough for myself and I cannot afford to give to others.

Can someone really claim to be wealthy but do not have a sense of abundance? That is my question.

KlangFool
I don’t always agree with KF but I do on this!

Giving helps teach “enough”. Late 30s, young family.
by runner540
Wed Jul 19, 2023 8:13 pm
Forum: Personal Investments
Topic: Afraid to Retire - Should I be…
Replies: 165
Views: 26204

Re: Afraid to Retire - Should I be…

If I had, say, only half of the portfolio you have accumulated then I would consider working a few more years to achieve at least the higher pension value. In your situation, with $5M plus, I'd retire. I think I would spend the rest of this year figuring out what I want to do in retirement, get some of those things lined up, and retire in January. I don't know what your combined income has looked like over the years, but you and your wife have done amazingly well. [/quote] Thanks for everyone’s insightful responses - your time in answering is much appreciated! To answer your inquiry, Bernard: yes, we are very fortunate to accumulate over our 30 year careers. My wife’s good timing (luck and hard work) as it relates to mergers and acquisitio...
by runner540
Sun Jul 16, 2023 2:32 pm
Forum: Personal Consumer Issues
Topic: Best credit card to open?
Replies: 8
Views: 1364

Best credit card to open?

Planning a couple of large purchases (totaling $5-7k) in the next month or two. I have frozen my credit. Usually use one credit card for most purchases.
Is it worth unfreezing and opening a new card?
I’d be most interested in Admirals lounge access and/or cash back.
Any specific card recs?
by runner540
Sun Jul 16, 2023 7:46 am
Forum: Personal Consumer Issues
Topic: Best way to live in Chicago
Replies: 42
Views: 4817

Re: Best way to live in Chicago

SpaghettiLegs wrote: Sun Jul 16, 2023 7:17 am Club Quarters is a hotel chain that has nice facilities in downtown major US cities, including Chicago. It’s been a while since I stayed in one but it was nice.

https://clubquartershotels.com/corporate-rates
This. OP how does this fit into your 30’s post? Are you going to live somewhere else?
by runner540
Sat Jul 15, 2023 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Credit card transactions -- do you look into it closely?
Replies: 94
Views: 6728

Re: Credit card transactions -- do you look into it closely?

We have so many credit card transactions per month and looking into each transaction closely is becoming a challenge. How do you handle this? We are starting to skip looking into it closely and that is not a good trend. What does "look into it closely" mean? Generally you'd just recognize something instantly as a charge you made or not, and you get notifications every time your card is used, so I'm not seeing the problem. I used to record all my expenses - for decades - so I'd know how much I spent in different categories. It took an hour or so total every month. I haven't done that for the last seven years or so and the only difference is one fewer wasted hour. However I can see that being useful if you have a multi-person house...
by runner540
Sat Jul 08, 2023 3:07 pm
Forum: Personal Consumer Issues
Topic: Gym accessory Gift suggestions for college girl
Replies: 18
Views: 1860

Re: Gym accessory Gift suggestions for college girl

What’s your budget?
Agree with Lulu or Athleta gift card
Good wireless headphones
Massage gift card?
by runner540
Thu Jul 06, 2023 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Staying the course - kids complicate things
Replies: 47
Views: 4548

Re: Staying the course - kids complicate things

Anyone else go through a phase where you wonder if you are doing the right thing by saving so much vs "upgrading" for your kids. Mine are 1 and 3. We have done well, have good incomes ~200k at 35yo in GA, have a decent house, and have no financial stressors. Our kids go to a good private school - public locally is a mess. Have a NW over 1M. Sometimes it have some regrets that I haven't splurged a bit more on things (bigger house/yard), a boat, nicer car, nicer toys for my kids. I know in the end it will teach them how to properly manage their finances and set a good example but sometimes the temptation is there to make a life change and stray from the high level of saving we do. Anyone struggle with this at times? Any regrets or ...
by runner540
Sat Jul 01, 2023 7:54 am
Forum: Personal Finance (Not Investing)
Topic: High expenses
Replies: 138
Views: 13034

Re: High expenses

I got so many helpful feedback so far and I truly appreciate it. This is an awesome group! Thank you!! Update: - yesterday DW and DH had a discussion about our expenses going forward and agreed in principle to put a hold on non essential expenses. Hopefully this will help reduce our expenses by a few thousand dollars. - we also paid cc and other bills yesterday and found out that we spent $24,768.79 in June. The delta is from a party we threw mid June to introduce both sides of the family to each other in lieu of a missed wedding due to covid. We eloped. One of us thought this was a total waste of money but the other insisted. - we realized that the $2,000 food (and other) budget from Costco includes random items from Amazon as well. Going...
by runner540
Sat Jul 01, 2023 7:42 am
Forum: Personal Finance (Not Investing)
Topic: So we made the mistake of trying to build a home...
Replies: 170
Views: 29535

Re: So we made the mistake of trying to build a home...

Buildornottobuild wrote: Sat Jul 01, 2023 7:34 am
mjg wrote: Thu Jun 29, 2023 4:04 pm I'm the odd ball here (perhaps).

Build it.

When you are leaving this earth, you won't be saying "I wish I had one million more and didn't build that house". You work hard, and have saved and invested. Given that you can afford it, enjoy your quality of life.


Thanks for your experience. I've had a few conversations with people I know who have expressed similar sentiment. With the property taxes being estimated at 18k/yr, I'm feeling a bit better. 35k/yr was another story.
At your comp and house budget level, $1250/month should not be the decision factor. There are much bigger risks and questions.
by runner540
Fri Jun 30, 2023 10:42 pm
Forum: Personal Consumer Issues
Topic: Moving to NYC and concerned about layoffs/firings
Replies: 47
Views: 4641

Re: Moving to NYC and concerned about layoffs/firings

PeaksAndValleys wrote: Fri Jun 30, 2023 9:49 pm You're in a fine position. Time to move on from worrying about this and come up with a better game plan for your career than focusing on what some possible severance, unemployment and a YEAR looking for another job would look like.

The undertone of this thread gets to me.
Yes. Put your effort into building skills and getting things done, and you will worry much less about the details of unemployment. If you’re that concerned about expenses live somewhere cheaper than NYC.
by runner540
Wed Jun 28, 2023 7:21 am
Forum: Personal Investments
Topic: Retirement progress check-in; dealing with fear and regret
Replies: 92
Views: 12406

Re: Retirement progress check-in; dealing with fear and regret

My spreadsheet used to have a column totaling all my losses from my stupid mistakes but one day I deleted it and moved on. I hope you do too. Thank you for sharing that mini-story. I bet that felt good when you hit delete! I will try to learn from that and apply it in other areas of my life. Ha ha...I did the exact same thing, but eventually had to delete it because when I logged it every day it was a new slap in the face. So many great comments and encouraging words from everyone that I can't reply to each right now. But I will end with a very Bogleheads-type question: I averaged together the various 2040 target date fund allocations from Fidelity, Vanguard, Schwab, TRP, and JPM, and they came out to 52.6% US, 29.2% international, 11.9% U...
by runner540
Sat Jun 24, 2023 6:45 am
Forum: Personal Finance (Not Investing)
Topic: Checking Account - Minimum Balance?
Replies: 88
Views: 7211

Re: Checking Account - Minimum Balance?

DoubleComma wrote: Thu Jun 22, 2023 8:51 pm We too are YNAB budgeters and keep about 70 days of cash. That’s about $18k, balance moves between $15-$20 through the month.
I could have written this exact response. I have a young family and an intense job, and never want to think about cash flow.
by runner540
Tue Jun 20, 2023 6:41 am
Forum: Personal Finance (Not Investing)
Topic: Financial health check
Replies: 15
Views: 1971

Re: Financial health check

No. You are going to cut Gross income by the same amount as savings, and say that expenses cannot be reduced.
by runner540
Fri Jun 16, 2023 7:30 am
Forum: Personal Consumer Issues
Topic: What periodicals do you subscribe to? Cost? Print or digital? (2023)
Replies: 94
Views: 6041

Re: What periodicals do you subscribe to? Cost? Print or digital? (2023)

dukeblue219 wrote: Wed Jun 14, 2023 9:38 pm Washington Post (print) and NY Times digital. Plus far too many streaming services to count.

Why WaPo home delivery for this millennial? Because I love seeing my kids reading the paper over breakfast before school rather than staring at another screen.

Same. We get daily delivery of local paper (major metro) to support journalism, get off screens, and set the example to our kids. Plus a digital subscription to National paper, and a couple of high quality magazines. Total approx $100/month.
by runner540
Sun Jun 11, 2023 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: How much home should we afford as first-time buyers and when?
Replies: 10
Views: 1800

Re: How much home should we afford as first-time buyers and when?

Is the income all salary or is some variable? Don’t count the bonuses/RSUs when setting budget.
Don’t touch retirement account. You can afford $1MM: use the $525k taxable to put >50% down, then the mortgage will be manageable even if income is lower in the future.
by runner540
Sat Jun 10, 2023 9:24 am
Forum: Personal Investments
Topic: Portfolio review - long time lurker with some life changes
Replies: 22
Views: 2763

Re: Portfolio review - long time lurker with some life changes

Portfolio review - long time lurker with some life changes I have been reading the forum for a number of years, but never posted. My spouse (67) and I (68) have worked all our lives and saved some, spent some (probably more than necessary), raised a couple of kids who still struggle with fully launching and now are the conservators for a grandson in early grade school. Spouse also works and will probably continue until 70 to get her full retirement benefits and max SS, but my situation is changing. The company I have worked for for a couple of decades has now fizzled-out and will be going out of business within weeks. Some bad executive decisions mostly. I would have liked the job to continue until 70, but that's changed. My K.I.S.S. and m...
by runner540
Sat Jun 10, 2023 7:35 am
Forum: Personal Investments
Topic: Baby on the way... Ideas for financial planning?
Replies: 42
Views: 3842

Re: Baby on the way... Ideas for financial planning?

This is a long way of saying that finding good/reliable childcare needs to be your top priority. You may not need something full time with your schedules, but if you don't have at least half time care then I think you need to come to terms with your wife being stay at home, at least for the first few years. I suggest getting on lists ASAP. Working and caring for a child at the same time is very stressful. Pick one and focus on that. A lot of concern and good tips on child care. I realize this is a big one, and easy to ignore before the baby arrives. First, we are both taking parental leave - 8 weeks paternity, 12-weeks maternity. My wife has been working around 24 hours a week and we hope she can pick that up again in the Fall. I will need...
by runner540
Thu Jun 08, 2023 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Moving to One Income and Efficiently Saving
Replies: 9
Views: 926

Re: Moving to One Income and Efficiently Saving

Do you get a match? I’d keep contributing at least to that level.
by runner540
Tue Jun 06, 2023 7:12 am
Forum: Personal Finance (Not Investing)
Topic: Help with multiple financial decisions, relocating from Washington to San Francisco Bay Area
Replies: 23
Views: 2812

Re: Help with multiple financial decisions, relocating from Washington to San Francisco Bay Area

If the equity has declined, all the more reason to sell to free up some cash to buy something larger in the South Bay IMO. The equity math is the same. One reason against upgrading to a larger property is I'd be effectively doubling the interest rate on my mortgage (3% -> 7.25%) while also doubling its size ($450k -> $1.1M). "golden handcuffs" i don't understand why you want a house less than 10 years old. in general, the best locations in town are the ones that got built on first, and so when you are looking for a good home, the highest quality build and well-maintained stock on the best locations will be relatively older. I agree, the main reasons I tend to prefer homes built in the last 10 or may be 20 years are energy efficie...
by runner540
Sun Jun 04, 2023 7:31 pm
Forum: Personal Investments
Topic: I am 28 and Husband is 32, starting retirement prep
Replies: 21
Views: 2529

Re: I am 28 and Husband is 32, starting retirement prep

SalleeSue wrote: Sun Jun 04, 2023 7:13 pm Wow everyone! Thank you so much! This is amazing information. My professor recommended using this forum and now I really see why! This is incredibly helpful!
Welcome and you are off to a good start being young and focused on retirement planning.
Focus on saving as much as you can. 15% is a good guideline. If you’re only at 5 or 10%, use any raises to increase your savings.
by runner540
Sun Jun 04, 2023 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for controlling spending during "messy" 30's?
Replies: 34
Views: 4407

Re: Advice for controlling spending during "messy" 30's?

Good for you being aware of it. Time and money are tight with 2-3 littles. Two things you can do:
Get the YNAB budget app and both you and your wife use it together on your phones.
Increase your income.
by runner540
Sun Jun 04, 2023 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Spending for late 30s retiree
Replies: 55
Views: 6163

Re: Spending for late 30s retiree

makeitcount wrote: Sun Jun 04, 2023 2:33 pm I would be OK with 3% of the 3.1m (2.7+0.4) and would reevaluate if/when those inheritances materialize.
Would not include the $400k private company equity. If OP actually gets cash flow from that, spend it. But the principal could easily go to $100k or $0.
by runner540
Sat Jun 03, 2023 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: Spending for late 30s retiree
Replies: 55
Views: 6163

Re: Spending for late 30s retiree

We are in our late 30s and have about ten times as much wealth (although no inheritance coming), but we know what it is like to have the OP's financial profile, because we did in our early-mid 30s (again, minus the inheritance). Our answer? About $80K annual income, which allows, assuming all capital gains or qualified dividends, for about $56K in actual annual spending. In our opinion OP is very much not ready to retire. The margin of safety required to face what is coming –– inflation, unforeseeable medical costs, college costs which will be about $200K/yr/child for OP, possible divorce, the child's inability to afford a home which will require a $3M disbursement from principal, and confiscatory taxes and policies –– you just don't have ...
by runner540
Fri Jun 02, 2023 7:34 am
Forum: Personal Finance (Not Investing)
Topic: New house budget
Replies: 16
Views: 1445

Re: New house budget

I was always using HHI * 3 = house price math and it made a lot of sense. My wife wants to get a nicer and bigger house (~1.1 - 1.2 m) and the formula still works for our 2022 HHI (~400k) However , We both work in tech, and who knows about next layoff wave Base comp is ~250k Time is ticking, we have 5-10 yrs of our careers max From budgeting perspective, we're close to classic 1/3 for taxes, 1/3 for expenses, 1/3 for savings. NW ~ 1m Question - is HHI*3 still applicable? What adjustments to the formula can you suggest? - NW 1m - Want to retire in 10 years or less - Spends a third of 400k - Want to buy over 1m house The math just doesn't work. That’s exactly the q - how to make it work :sharebeer ? You will need to change one or more of the...
by runner540
Sat May 27, 2023 7:49 pm
Forum: Personal Investments
Topic: Portfolio Review: Messy Portfolio After Inheritance
Replies: 58
Views: 5286

Re: Portfolio Review: Messy Portfolio After Inheritance

Sorry for your loss. Please be cautious about commingling inherited accounts. Learn about the implications should you split up, before taking action.
by runner540
Sat May 27, 2023 1:30 pm
Forum: Personal Investments
Topic: Portfolio Review: new house, big windfall
Replies: 13
Views: 2244

Re: Portfolio Review: new house, big windfall

You don’t say the source of the windfall. If it’s an inheritance, you and spouse need to both understand the consequences of “commingling” that money with your other assets, should you later split up. Learn about this before taking action, and the spouse that actually inherited, should think critically about it. If they want to keep it in a separate account, they should.
by runner540
Thu May 25, 2023 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Mid-career Sabbatical
Replies: 25
Views: 2481

Re: Mid-career Sabbatical

Sent you a PM
by runner540
Wed May 24, 2023 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Prefunding retirement
Replies: 71
Views: 8912

Re: Prefunding retirement

:sharebeer Hi all, When can one reasonable consider retirement “prefunded” in the sense that the future value of your present savings are roughly equal to the expected future liability of retirement? As an example, if a 30 year old expects to retire at 65, they have potentially a 6.5x multiplier just by compounding interest. Therefore if they want to retire with 1.5 M, then they would have roughly speaking funded that 1.5 M liability with ~230k. Using the logic above, do you think it’s reasonable to relax retirement savings some in such a situation? For example, potentially just down to a company match in a 401k? Be sure you’re comparing apples and apples: all real or all nominal amounts and rates. Otherwise you could be very disappointed.
by runner540
Wed May 24, 2023 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Federal Income Tax Safe Harbor For Engaged Couple
Replies: 6
Views: 495

Re: Federal Income Tax Safe Harbor For Engaged Couple

Leesbro63 wrote: Wed May 24, 2023 7:52 am My nephew, a high earner, is getting married next month and will filed jointly for 2023. His fiancé' has a more moderate income. If he pays 110% of his 2022 income as estimated tax (4 payments), will the newlywed couple be "safe harbored"?
Show him the IRS withholding calculator. Best practice to run it a couple of times during the year and after any big bonuses or life events.
https://www.irs.gov/individuals/tax-wit ... -estimator