Search found 671 matches

by CnC
Tue Jun 25, 2019 5:47 pm
Forum: Personal Investments
Topic: Could I be financially independent in 4-5 years?
Replies: 18
Views: 2036

Re: Could I be financially independent in 4-5 years?

Agreed with most other posters. Let's take my own numbers as an example. I'm early 30's with 10-12x my expenses saved. My expenses right now are around 60k a year. I save around 1.5x what I spend each year. To me this is not quite enough expenses to judge being FI by. I could technically be FI in 5±...
by CnC
Tue Jun 25, 2019 11:17 am
Forum: Investing - Theory, News & General
Topic: Why do large personal portfolios include bonds?
Replies: 168
Views: 12438

Re: Why do large personal portfolios include bonds?

Am I missing something? The hypothetical person with significantly more than $1 million isn't spending $40K - they may be spending much more. Exactly. Most people with only 40k expenses do not save 4-5million. If your expenses are that low and your assets are that high you are working longer than y...
by CnC
Tue Jun 25, 2019 11:09 am
Forum: Investing - Theory, News & General
Topic: Attention retirement savers: college 529 plans aren't just for kids
Replies: 28
Views: 4303

Re: Attention retirement savers: college 529 plans aren't just for kids

Seems to me that the modest benefit of a 529 over a taxable accounts does not offset the chance that you won't use it in retirement. Now if your retirement is over funded anyway and you will ultimately pass on stuff to grandchildren then perhaps it makes sense. Modest benefit? For us it’s 6% saving...
by CnC
Tue Jun 25, 2019 10:47 am
Forum: Investing - Theory, News & General
Topic: I'm still young but...
Replies: 31
Views: 4229

Re: I'm still young but...

Where is the exuberance though? I’m the only person I know that invests in equities. Many people seem pessimistic. Suites me, I would be “worried” if family members and friends started investing because of FOMO Heck my in-laws think 30% stocks are risky. And literally everyone who i talk to about i...
by CnC
Thu Jun 20, 2019 1:38 pm
Forum: Investing - Theory, News & General
Topic: I'm still young but...
Replies: 31
Views: 4229

Re: I'm still young but...

Where is the exuberance though? I’m the only person I know that invests in equities. Many people seem pessimistic. Suites me, I would be “worried” if family members and friends started investing because of FOMO Exactly I have been really investing for the last 3 years the previous 10 were just to g...
by CnC
Thu Jun 20, 2019 1:30 pm
Forum: Investing - Theory, News & General
Topic: I'm still young but...
Replies: 31
Views: 4229

Re: I'm still young but...

I would say this seems quite similar to about 1996, when Alan Greenspan gave his "irrational exuberance" speech. https://en.wikipedia.org/wiki/Irrational_exuberance Does that mean we have 3 or 4 years to go before a crash? Who knows? Set it and forget it. Yes I know set it and forget it. I'm know t...
by CnC
Thu Jun 20, 2019 1:22 pm
Forum: Investing - Theory, News & General
Topic: Good times: 2008 vs Now
Replies: 85
Views: 8560

Re: Good times: 2008 vs Now

I have a very similar situation and topic up. I also graduated in spring 08 got a job bought a house got married and I'm still with the same woman in the same house with the same company. We are doing very well. Got into investing a few years ago and life is pretty great. It's almost like beginning ...
by CnC
Thu Jun 20, 2019 1:11 pm
Forum: Investing - Theory, News & General
Topic: I'm still young but...
Replies: 31
Views: 4229

I'm still young but...

Does anyone remember a stock market like this? We just got a new ath and everyone everywhere is very pessimistic about the future. In my relatively short time frame of investing I have never seen the market march higher and higher with everyone betting against it. Shouldn't we be in the FOMO stage w...
by CnC
Thu Jun 06, 2019 10:48 am
Forum: Personal Investments
Topic: Any downsides to consolidating retirement accounts?
Replies: 11
Views: 1000

Re: Any downsides to consolidating retirement accounts?

Are there any downsides to consolidating employer-sponsored retirement accounts including a 401k and a 457b accounts after no longer working for the employer, just to simplify life? Is there one type (401k vs 457b) that's better to consolidate into? A 457b has much easier withdrawal rules. I believ...
by CnC
Thu Jun 06, 2019 8:03 am
Forum: Personal Investments
Topic: Children's IRA
Replies: 13
Views: 1417

Re: Children's IRA

My two oldest kids (ages 7 and 9) are beginning to help me around the yard and house. It is very enjoyable to have their company working with me and most helpful. I have asked that they keep their time written down and I am paying them at the end of each week. It ends up being 3 or 4 hours on most ...
by CnC
Thu Jun 06, 2019 8:01 am
Forum: Personal Investments
Topic: How would you invest a lump sum of 3 million dollars in today's market?
Replies: 50
Views: 5521

Re: How would you invest a lump sum of 3 million dollars in today's market?

Do not listen to anyone who tells you lump sum invest it all. That is a terrible idea. Not because it doesn't typically out perform dca investing it actually does in a vacuum when performed by unemotional robots. But in real life someone investing $3,000,000 all at one time with no prior market expo...
by CnC
Mon May 27, 2019 9:35 pm
Forum: Personal Investments
Topic: Too many eggs in one basket?
Replies: 43
Views: 4893

Re: Too many eggs in one basket?

It is certainly up to you but my MIL worked at a company for +40 years and bought company stock often. It returned pretty well but now as she starts retirement the stock took a decent downturn, while it returned decent if you take into account the taxes paid and the downturn it was not great. The ri...
by CnC
Thu May 23, 2019 11:44 pm
Forum: Personal Investments
Topic: Can I take an 85+% pay cut for fun?
Replies: 88
Views: 12786

Re: Can I take an 85+% pay cut for fun?

A few more years and you will be able to retire and do whatever you want assuming you are still saving some.
by CnC
Tue May 21, 2019 10:56 am
Forum: Personal Investments
Topic: 5.5% Load 403(b) Roth vs Low Cost Taxable Account
Replies: 81
Views: 3538

Re: 5.5% Load 403(b) Roth vs Low Cost Taxable Account

A 5% load is irresponsible by her employer.

That is really terrible. Is there anyone she can talk to to explain just how unreasonable and out of touch that is?
by CnC
Tue May 21, 2019 10:45 am
Forum: Personal Investments
Topic: Convince me that a 529 plan is a good idea.
Replies: 42
Views: 3206

Re: Convince me that a 529 plan is a good idea.

All right. The risks of actually needing the money and or not having that money available for other uses is there.while I think that those risks are very real I do agree that they are not terribly likely. Here comes to the next question. These state based programs like bright star and Bright start a...
by CnC
Mon May 20, 2019 9:50 pm
Forum: Personal Investments
Topic: Convince me that a 529 plan is a good idea.
Replies: 42
Views: 3206

Re: Convince me that a 529 plan is a good idea.

I'm very confused...As an IL resident as well, the Bright Start program has very good options with several low cost Vanguard index funds. Bright Directions is the one with higher fees as it's advisor-led. Bright Start is super easy to open up and fund. Choose either a target date fund or index fund...
by CnC
Mon May 20, 2019 5:47 pm
Forum: Personal Investments
Topic: Convince me that a 529 plan is a good idea.
Replies: 42
Views: 3206

Re: Convince me that a 529 plan is a good idea.

The Illinois plans look bad and that was the first turn off for me so I never looked again, my choices are Bright Start® College Savings Program (Direct-sold) (IL) Or Bright Directions College Savings Program (IL) Or An out of state one that doesn't give a state income break. http://www.archimedes....
by CnC
Mon May 20, 2019 5:44 pm
Forum: Personal Investments
Topic: Convince me that a 529 plan is a good idea.
Replies: 42
Views: 3206

Re: Convince me that a 529 plan is a good idea.

I'm pretty sure college isn't going to be free. If you think otherwise, then maybe a 529 isn't a good idea. If you're going to spend the 300,000, then it makes sense to maximize the tax advantage. That's the risk you take, but if you don't want to fund that much, and you can do less. Maybe there's ...
by CnC
Mon May 20, 2019 5:37 pm
Forum: Personal Investments
Topic: Convince me that a 529 plan is a good idea.
Replies: 42
Views: 3206

Re: Convince me that a 529 plan is a good idea.

The Illinois plans look bad and that was the first turn off for me so I never looked again, my choices are Bright Start® College Savings Program (Direct-sold) (IL) Or Bright Directions College Savings Program (IL) Or An out of state one that doesn't give a state income break. http://www.archimedes.c...
by CnC
Mon May 20, 2019 5:18 pm
Forum: Personal Investments
Topic: Convince me that a 529 plan is a good idea.
Replies: 42
Views: 3206

Re: Convince me that a 529 plan is a good idea.

I'll be back to try to answer some. But, thank you for posting some of the #'s. My issue is how do you qualify the risk of not using the funding for college because sometime in the next 20 years college becomes free. What about the risk of having $300,000 tied up in college costs that you can't touc...
by CnC
Mon May 20, 2019 4:04 pm
Forum: Personal Investments
Topic: Convince me that a 529 plan is a good idea.
Replies: 42
Views: 3206

Convince me that a 529 plan is a good idea.

Hey all CnC here. I have made quite a few different threads about my savings and questions. But one thing I have never touched is a 529 plan and although I have read about them I'm still having a hard time seeing the benefits everyone here keeps talking about. Below is the short overview of my retir...
by CnC
Tue May 14, 2019 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?
Replies: 58
Views: 4060

Re: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?

I never used or even had a credit card as a young adult. It caused problems getting a loan in 2008 since I had no credit at all. Luckily I'm from the Midwest where family history and common sense prevails so I got a loan from the family bank at a very good interest rate. Fast forward 11 years and th...
by CnC
Sun May 12, 2019 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited ranch
Replies: 97
Views: 7914

Re: Inherited ranch

Unlike most people here I would certainly be for selling to family. Because coming from a farm family nothing is more crushing to parents or farm families is some kid who moved off and wants to cash out the family farm causing his or her siblings to lose the family farm to some big corporation. But,...
by CnC
Sun May 12, 2019 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: How much is a 0% 5 year loan worth?
Replies: 16
Views: 2125

Re: How much is a 0% 5 year loan worth?

I'm trying to figure out how much a 5 year 0% loan is worth vs what car loans for extremely good credit or paying cash for a newer used vehicle. Any help on the present value of say a 500 a month loan for 5 years and investing the difference vs 30,000 lump sum? It sounds like you are assuming that ...
by CnC
Sun May 12, 2019 8:14 am
Forum: Personal Finance (Not Investing)
Topic: How much is a 0% 5 year loan worth?
Replies: 16
Views: 2125

How much is a 0% 5 year loan worth?

Buying a new Pacifica since we have 2 kids with a third in the oven. We keep cars for a long time this is replacing a 2002 liberty. Right now on top of the current offers rebates ect the car dealers are offering us a 0% 5 year loan. I'm trying to figure out how much a 5 year 0% loan is worth vs what...
by CnC
Thu May 02, 2019 7:00 pm
Forum: Personal Investments
Topic: portfolio questions
Replies: 10
Views: 1016

Re: portfolio questions

Here is a back test link from 2002 to 2012 which includes both high and low interest rates. Treasuries seemed to do okay and one of the worst year was 2009 when I think interest rates were severely cut. hmm now I am confused again https://www.portfoliovisualizer.com/backtest-portfolio#analysisResul...
by CnC
Thu May 02, 2019 11:49 am
Forum: Personal Investments
Topic: portfolio questions
Replies: 10
Views: 1016

Re: portfolio questions

Here is a back test link from 2002 to 2012 which includes both high and low interest rates. Treasuries seemed to do okay and one of the worst year was 2009 when I think interest rates were severely cut. hmm now I am confused again https://www.portfoliovisualizer.com/backtest-portfolio#analysisResul...
by CnC
Thu May 02, 2019 11:04 am
Forum: Personal Investments
Topic: portfolio questions
Replies: 10
Views: 1016

Re: portfolio questions

There is nothing wrong with VUSTX and vti. Just know that VUSTX is long term treasury meaning you have a very high chance of the bonds being paid back, but the potential to lose quite a bit of money to a sharp increase in inflation & interest rates. I personally don't think investing in long term bo...
by CnC
Wed May 01, 2019 9:28 pm
Forum: Personal Investments
Topic: portfolio questions
Replies: 10
Views: 1016

Re: portfolio questions

you can use morningstar to compare funds you can also use google. I personally would stick to fidelity or vanguard funds. The total us stock market includes the total market which has small caps as well as large caps you can adjust your weighting if you want to buy extra small cap funds if you feel ...
by CnC
Wed May 01, 2019 12:18 pm
Forum: Personal Investments
Topic: Social responsibility investing in my 401k?
Replies: 13
Views: 707

Re: Social responsibility investing in my 401k?

I will not wade into politics even though I really wish to. Let's start by looking at your goals and what your questions actually are. You don't want to invest in "evil" companies and are willing to knowingly sacrifice money to do so. That is your right and I commend you on going in understanding th...
by CnC
Tue Apr 30, 2019 10:07 pm
Forum: Personal Investments
Topic: Initial retirement investing in a record high stock market
Replies: 105
Views: 8220

Re: Initial retirement investing in a record high stock market

jdamo wrote:
Tue Apr 30, 2019 9:38 pm
Money now in VMFXX Vanguard Money Mkt Fund
Where WAS it?

I could be wrong but it seems odd that you built up an entire retirement nest egg in vmfxx
by CnC
Tue Apr 30, 2019 7:12 pm
Forum: Personal Investments
Topic: I'm 37, late to the game, worth about 35k...
Replies: 42
Views: 7236

Re: I'm 37, late to the game, worth about 35k...

I'm a bit younger than you, and I have a much different outlook so bare with me as I try to reconcile between our viewpoints to give you an answer. Your net worth at 37 isn't that bad, but making in the $20,000 range you are going to fall behind where you need to be very quickly. Let's start with So...
by CnC
Thu Apr 25, 2019 8:00 pm
Forum: Personal Investments
Topic: Disabled, Disillusioned, but Significant Assets - Move Overseas, Offshore?
Replies: 47
Views: 3398

Re: Disabled, Disillusioned, but Significant Assets - Move Overseas, Offshore?

I'm a bit confused, OP. Your situation: - both about 50 y.o. - $3M nest egg - stand to inherit another $2M - by your accounts, very frugal In other words, you are rich...many would say very rich..... and set for life if you don't do anything financially stupid (which you probably won't if you are f...
by CnC
Thu Apr 25, 2019 4:21 pm
Forum: Personal Investments
Topic: Does household income limit apply to Roth IRA for kids?
Replies: 18
Views: 1105

Re: Does household income limit apply to Roth IRA for kids?

Wow lots of snarky replies here. The best thing you can do for a kid is get them to open a Roth IRA. now one can argue that you should wait until they make money and save money to do it. But it's still a very good idea. I don't understand how you can cheer a 529 plan it's scoff at a parent trying to...
by CnC
Thu Apr 25, 2019 2:32 pm
Forum: Personal Investments
Topic: Pensions and early retirement issues
Replies: 19
Views: 2210

Re: Pensions and early retirement issues

Am I understanding the following correctly? If you start at Age 55, your benefit at Age 60 will have grown to $72600 + (5 x $2200) = $83600 ? In this case, isn't the annual difference at Age 60 equal to $107700 - $83600 = $24100 (rather than $35100) -- plus the extra $1000 growth after? Assuming th...
by CnC
Thu Apr 25, 2019 1:25 pm
Forum: Personal Investments
Topic: Pensions and early retirement issues
Replies: 19
Views: 2210

Re: Pensions and early retirement issues

How old are you and what is your current vested pension amount? Not what you think you will get in 20 years? The reason I ask is that yes: one who has a huge pension PLUS ss PLUS a pre-tax account should be saving in both taxable and Roth. However, that's not you. That may BE you. But you're not th...
by CnC
Thu Apr 25, 2019 12:59 pm
Forum: Personal Investments
Topic: Pensions and early retirement issues
Replies: 19
Views: 2210

Re: Pensions and early retirement issues

I guess I don't understand: You're in your 30s. Isn't this a decision to be made 20-25 years from now? What is it you're going to do (or not do) today, or for the next 20 years, based on the answers you get? There are a million variables they may affect your decision between now and then (like: dif...
by CnC
Thu Apr 25, 2019 12:46 pm
Forum: Personal Investments
Topic: Taxable and Tax-deferred/free as separate Asset Allocations for young family?
Replies: 29
Views: 1372

Re: Taxable and Tax-deferred/free as separate Asset Allocations for young family?

You do make a good alternative (standard?) scenario. Paraphrasing but basically treat the whole bag as a single AA, keep all bonds in tax deferred and tax eff stocks in taxable and whatever type of stocks in roth. A couple issues (our personal factors so likely not the same with everyone else) with...
by CnC
Thu Apr 25, 2019 10:58 am
Forum: Personal Investments
Topic: Investment advice for $800,000 age 62
Replies: 24
Views: 3253

Re: Investment advice for $800,000 age 62

What are your vanguard mutual funds are they stock funds or blended? If they are stock you are nearly at 40/60. 320k in total market would get your 40%. Really you just need to transfer out of vanguard money market fund into bond funds. You will still be in mostly the same shape just slightly better...
by CnC
Thu Apr 25, 2019 10:29 am
Forum: Personal Investments
Topic: Taxable and Tax-deferred/free as separate Asset Allocations for young family?
Replies: 29
Views: 1372

Re: Taxable and Tax-deferred/free as separate Asset Allocations for young family?

Actually, I am a very similar age with a similar retirement goal but I think the opposite is a better approach. You want as little taxes taken out of your taxable account each year and as much growth in your Roth each year. You want your pre tax money to hold all of your safe slow growing items. It ...
by CnC
Thu Apr 25, 2019 10:15 am
Forum: Personal Investments
Topic: Pensions and early retirement issues
Replies: 19
Views: 2210

Re: Pensions and early retirement issues

Yes, there are some more complex things you can do with the interest you’ll be forgoing by not receiving distributions from ages 55 to 59, offset by higher interest starting at age 60. And you can do that math. But unless your health is well below average, I believe that you should plan to defer un...
by CnC
Thu Apr 25, 2019 9:25 am
Forum: Personal Investments
Topic: Pensions and early retirement issues
Replies: 19
Views: 2210

Re: Pensions and early retirement issues

I will try to bump this, perhaps I was not clear about my question. I would like to know which is a better deal. At first glance delaying the pension seems better but is there any calculations that could help me differentiate between the two. To clarify the question is as follows . My pension and an...
by CnC
Tue Apr 23, 2019 3:39 pm
Forum: Personal Investments
Topic: Invest 529 or taxable account?
Replies: 55
Views: 3825

Re: Invest 529 or taxable account?

I think there is a point here that may be getting lost when I read the phrase, "withdraw from retirement accounts to pay for college". The point is this, if you are maxing out a 401k and two IRAs (or Roth IRAs), by temporarily stopping the IRA contributions and reducing the 401k contributions to em...
by CnC
Tue Apr 23, 2019 1:16 pm
Forum: Personal Investments
Topic: Where to invest for early retirement?
Replies: 16
Views: 1413

Re: Where to invest for early retirement?

We are putting a decent amount in our brokerage account.

We plan to spend it to fund our early retirement and pay for our Roth conversions in retirement.


We are looking at at least a match for our Roth's in taxable each year.
by CnC
Tue Apr 23, 2019 12:55 pm
Forum: Personal Investments
Topic: Getting through a 2008-like crash during retirement
Replies: 38
Views: 5032

Re: Getting through a 2008-like crash during retirement

[removed snarky, personal attack -might72] I think the idea is not that there is any problem with investments but rather the people who work on Wall Street who might come between a retail investor and the gains that would be justified by the fair value of their investments. In my opinion that is a ...
by CnC
Tue Apr 23, 2019 12:50 pm
Forum: Personal Investments
Topic: Invest 529 or taxable account?
Replies: 55
Views: 3825

Re: Invest 529 or taxable account?

Yes. So money taken from a retirement account could potentially be used to pay for the last full year or the second semester of junior year and the last two semesters of senior year if the withdrawal could be timed to come out after the last FAFSA submission and before the tuition payment is due. F...
by CnC
Tue Apr 23, 2019 11:30 am
Forum: Personal Investments
Topic: Invest 529 or taxable account?
Replies: 55
Views: 3825

Re: Invest 529 or taxable account?

Yes. So money taken from a retirement account could potentially be used to pay for the last full year or the second semester of junior year and the last two semesters of senior year if the withdrawal could be timed to come out after the last FAFSA submission and before the tuition payment is due. F...
by CnC
Tue Apr 23, 2019 11:12 am
Forum: Personal Investments
Topic: Invest 529 or taxable account?
Replies: 55
Views: 3825

Re: Invest 529 or taxable account?

We are choosing a taxable account offers a 529 because we prefer the flexibility a taxable account offers. But we chose maxing 401k's iras and being debt free first. How realistic is the scenario that you pay $0 for tuition or room & board for your kids? If you think you'll pay at least $1, then it...
by CnC
Tue Apr 23, 2019 10:45 am
Forum: Personal Investments
Topic: Invest 529 or taxable account?
Replies: 55
Views: 3825

Re: Invest 529 or taxable account?

We are choosing a taxable account offers a 529 because we prefer the flexibility a taxable account offers.


But we chose maxing 401k's iras and being debt free first.
by CnC
Tue Apr 23, 2019 10:41 am
Forum: Personal Investments
Topic: Getting through a 2008-like crash during retirement
Replies: 38
Views: 5032

Re: Getting through a 2008-like crash during retirement

[removed reference to political comment and response to it - might72]