Search found 232 matches

by mbasherp
Fri Oct 04, 2019 12:56 pm
Forum: Personal Investments
Topic: Mid-Life Portfolio Review
Replies: 6
Views: 731

Re: Mid-Life Portfolio Review

Others will do better at answering your questions, but I just wanted to say A) congratulations on a great job so far! And B) even if you don’t want to save another $6k/year, it’s advantageous to shift $6k/year from your brokerage to a Roth IRA for your spouse. That money will enjoy tax free status f...
by mbasherp
Thu Oct 03, 2019 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: Wedding Finances-Today
Replies: 107
Views: 7542

Re: Wedding Finances-Today

Recently married, within your specification. My main piece of advice is to avoid a traditional wedding planner. They likely won’t save you any more than you can save yourself, and you’ll pay them regardless. Plan it yourself, or themselves, as the case may be, and hire a day of coordinator to execut...
by mbasherp
Wed Oct 02, 2019 7:59 am
Forum: Investing - Theory, News & General
Topic: maximum downturn
Replies: 16
Views: 2090

Re: maximum downturn

Here's another perspective on the Great Depression, examining the time to recovery of assets. https://www.nytimes.com/2009/04/26/your-money/stocks-and-bonds/26stra.html. "An investor who invested a lump sum in the average stock at the market’s 1929 high would have been back to a break-even by late ...
by mbasherp
Sun Sep 29, 2019 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Do you know what your partner spends money on?
Replies: 80
Views: 6026

Re: Do you know what your partner spends money on?

We keep one checking account and multiple joint credit cards, which are used for all joint things. 95% of spending is joint. We also each have one credit card of our own and an agreed amount each month that we may spend. DW’s amount is higher; that seems to work for us. As long as the personal spend...
by mbasherp
Sun Sep 29, 2019 11:52 am
Forum: Investing - Theory, News & General
Topic: Why not use Margin Loan as eFund?
Replies: 63
Views: 3683

Re: Why not use Margin Loan as eFund?

I have a taxable account approaching six figures and I’ve wondered if this might be worth exploring. It certainly seems preferable to a HELOC as a liquidity option. We built a taxable account on moderate income because between DW and I there is only one 401k available. After we max that and 2 Roth I...
by mbasherp
Tue Sep 17, 2019 8:39 am
Forum: Personal Investments
Topic: Can I PRE-tire yet?
Replies: 10
Views: 2200

Re: Can I PRE-tire yet?

https://www.keepthrifty.com/2017/01/30/introducing-retirement-freedom/ Your plan sounds a lot like this concept (which I like). Assuming even pessimistic growth of your investments, your true retirement is already funded. That gives you the freedom to make the work between now and then more meaningf...
by mbasherp
Tue Sep 17, 2019 7:39 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 493
Views: 26030

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

If someone asked the average Joe on the street what they thought about someone who made $115K, saved half their income and got a $15K subsidy courtesy of the American tax payer they would likely get an earful. The average Joe doesn't make $115K (we are talking across the country - not your locale i...
by mbasherp
Mon Sep 16, 2019 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 493
Views: 26030

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Few things seem to get folks riled up as quickly as a content person who tells them how they can also have "enough" if they choose. That's what I see in this thread. Ron Ronnerson, great job on your optimization and your semi stoic outlook toward life. You are an example of the value of the site to ...
by mbasherp
Mon Sep 16, 2019 9:14 am
Forum: Personal Investments
Topic: Where should we cut back saving/investing?
Replies: 58
Views: 6244

Re: Where should we cut back saving/investing?

If we need to further reduce investments, in what order should we reduce savings? In case it hasn't been mentioned yet - If you need to reduce investments further, stop contributing some or all new income to Roth IRAs and instead draw down the taxable account to do so. This is essentially what I do...
by mbasherp
Sun Sep 08, 2019 10:48 am
Forum: Personal Finance (Not Investing)
Topic: 3.875% fixed rate, 30-year mortgage: are you paying it off early?
Replies: 93
Views: 3948

Re: 3.875% fixed rate, 30-year mortgage: are you paying it off early?

We max all available tax advantaged accounts first. Then we invest an amount in taxable brokerage that’s roughly what the difference from equivalent 15 year payment would be, rounded up by $100. I plan to continue this at least until the taxable investment balance exceeds the mortgage balance. Chanc...
by mbasherp
Fri Aug 30, 2019 12:27 pm
Forum: Personal Investments
Topic: Young people with good earnings and still want to work do 100 equities
Replies: 44
Views: 4627

Re: Young people with good earnings and still want to work do 100 equities

80/20 for efficient frontier +1 I am here at (32 years old), I read enough that the extra 20% in stocks is not going to give me that much more in return for the risk. That is true in the past only. The efficient frontier was developed from historical data. The future may or may not be like the past...
by mbasherp
Sat Aug 24, 2019 5:03 pm
Forum: Investing - Theory, News & General
Topic: Quantifying risk
Replies: 37
Views: 1253

Re: Quantifying risk

Klang,

We’re clearly not going to get anywhere here.

I’ll just rephrase and say that risks in the future will not be identical to risks in the past. History may rhyme but it does not repeat. And risk for me may or may not be risk for you.
by mbasherp
Sat Aug 24, 2019 4:54 pm
Forum: Investing - Theory, News & General
Topic: Quantifying risk
Replies: 37
Views: 1253

Re: Quantifying risk

OP, It is actually a very simple question. A) What is your current investment net worth (excluding home equity)? B) What is your annual saving amount? C) When do you plan to FI and/or retire? D) What is the return rate that you need to reach your goal? After you answer (A) to (D), it is very easy t...
by mbasherp
Sat Aug 24, 2019 4:35 pm
Forum: Investing - Theory, News & General
Topic: Quantifying risk
Replies: 37
Views: 1253

Re: Quantifying risk

OP, It is actually a very simple question. A) What is your current investment net worth (excluding home equity)? B) What is your annual saving amount? C) When do you plan to FI and/or retire? D) What is the return rate that you need to reach your goal? After you answer (A) to (D), it is very easy t...
by mbasherp
Tue Aug 13, 2019 8:51 am
Forum: Investing - Theory, News & General
Topic: this time it's different
Replies: 92
Views: 10381

Re: this time it's different

One of the wisest observations ever made: The more things change, the more they stay the same. Of course this time is different. It always is. We are always in unprecedented times. However, the wisdom of living below your means and investing the difference in a diversified manner will always be appl...
by mbasherp
Fri Aug 09, 2019 1:16 pm
Forum: Investing - Theory, News & General
Topic: Come over to the Liability Matchng portfolio side: the water is fine
Replies: 170
Views: 11045

Re: Come over to the Liability Matchng portfolio side: the water is fine

Liability matching makes lots of sense to me. I would even argue that those who call it mental accounting vs “one portfolio” may be incorrect. I’m going against modern portfolio theory here, but I believe that the concept of one portfolio is actually the real mental accounting. We can blend it toget...
by mbasherp
Fri Aug 09, 2019 12:44 am
Forum: Personal Finance (Not Investing)
Topic: Bogleheads, give me strength to resist a car purchase when I find myself way ahead of our financial goals
Replies: 61
Views: 4313

Re: Bogleheads, give me strength to resist a car purchase when I find myself way ahead of our financial goals

I’ll skip commenting on the car, but I will throw out there that you are most likely aiming for $2 million in today’s dollars. That means your estimated 7% return is a real return. That is optimistic by anyone’s standards for the next 15 years. I enjoy projecting out into the future to set goals, bu...
by mbasherp
Fri Aug 09, 2019 12:19 am
Forum: Personal Investments
Topic: thoughts on international funds
Replies: 67
Views: 4734

Re: thoughts on international funds

Returns aside, as a matter of logic: I am comfortable with my parents holding nearly all US stocks. They are approaching retirement and their time horizon is much shorter than mine. No matter what, they’ll likely be fine. I would be a fool to expect US outperformance for my investing horizon of 60+ ...
by mbasherp
Tue Jul 30, 2019 7:07 pm
Forum: Personal Consumer Issues
Topic: What is the official bogleheads home fire extinguisher?
Replies: 52
Views: 2563

Re: What is the official bogleheads home fire extinguisher?

Does a boglehead have one? My home is covered by a USAA homeowner's policy (and cars in the garage are covered too), so not sure why I should pay a lot of money to protect the house they're on the hook for if it goes up in smoke. Now if USAA wants me to protect the house they're insuring, I might b...
by mbasherp
Tue Jul 30, 2019 10:56 am
Forum: Personal Finance (Not Investing)
Topic: The Quality of a Retirement with no Retirement Savings
Replies: 30
Views: 3015

Re: The Quality of a Retirement with no Retirement Savings

Keep in mind there are many programs for elderly people with no assets. He will get some amount of social security income, yes, but he will likely also eventually draw Supplemental Security Income benefits too. SNAP will probably come into play, as well as one of the many programs that help seniors ...
by mbasherp
Mon Jul 29, 2019 6:25 pm
Forum: Personal Consumer Issues
Topic: What is the official bogleheads home fire extinguisher?
Replies: 52
Views: 2563

Re: What is the official bogleheads home fire extinguisher?

I have always avoided the big box store brands due to the high numbers of failures and recalls. I keep Amerex ABC fire extinguishers in both 5 and 2.5 lb sizes. You might notice that the stores often sell Kidde or First Alert, yet Amerex is what’s hanging on the walls. That’s enough of a statement t...
by mbasherp
Thu Jul 25, 2019 11:50 am
Forum: Personal Investments
Topic: How much life insurance should I get? (baby on the way)
Replies: 44
Views: 2606

Re: How much life insurance should I get? (baby on the way)

You are wise to have done your homework on SS Survivors benefits. I don’t understand why most ignore them. Your plan seems solid; you might choose to put your wife’s at 500k because the cost isn’t that much more than 250k. 750k sounds like the sweet spot for you. We opted for 500k each with lower co...
by mbasherp
Wed Jul 24, 2019 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Feel like we are spinning our wheels (financially speaking). How far behind are we?!
Replies: 63
Views: 6620

Re: Feel like we are spinning our wheels (financially speaking). How far behind are we?!

Your original post is light on details, but if it's accurate, you've got a net worth of $277k at 32/33. Congratulations! You seem to be doing great. I don't see why the $130k in checking and savings can't be a $100k downpayment and $30k emergency fund, or 110/20. Can you buy a home for $500k? Then y...
by mbasherp
Fri Jul 19, 2019 12:59 pm
Forum: Personal Consumer Issues
Topic: Do you buy cellphone outright or pay over 2 years?
Replies: 129
Views: 8413

Re: Do you buy cellphone outright or pay over 2 years?

In the case of DW and I, doing payments at 0% was the only way to qualify for the BOGO deal at the time. Upon reading the fine print, if we were to pay off the balance early, we would have to pay for two phones instead of one. I thought it was very odd, but I’ll also take full advantage of the cheap...
by mbasherp
Wed Jul 17, 2019 1:31 pm
Forum: Personal Investments
Topic: Gold?
Replies: 137
Views: 7716

Re: Gold?

As an accumulator for several more decades, I have a harder time owning bonds than gold. The things bonds protect my portfolio from are behavioral and emotional in nature. The things gold protects my portfolio from are structural. Real tail risk stuff. Not that I hold a lot, but I see a genuine role...
by mbasherp
Mon Jul 15, 2019 11:01 am
Forum: Personal Investments
Topic: Phase out EF [Emergency Fund]?
Replies: 111
Views: 5429

Re: Phase out EF [Emergency Fund]?

KlangFool wrote:
Mon Jul 15, 2019 10:51 am


Who says so? I keep 1 year of EF. But, I won't mind letting the EF oscillate between 6 months to 12 months.
I stand corrected. From your numerous posts, I thought you continuously reiterated that you always keep 12 months.
by mbasherp
Mon Jul 15, 2019 10:36 am
Forum: Personal Investments
Topic: Phase out EF [Emergency Fund]?
Replies: 111
Views: 5429

Re: Phase out EF [Emergency Fund]?

KlangFool wrote:
Mon Jul 15, 2019 10:32 am
I am covered for all possibilities with one pool of money. I could buy a new car any time with my EF.

KlangFool
No you couldn't, without violating your own rule of keeping 1 year of emergency fund. That's the difference. Your approach is static. Life is dynamic and my approach reflects that.
by mbasherp
Mon Jul 15, 2019 10:28 am
Forum: Personal Investments
Topic: Phase out EF [Emergency Fund]?
Replies: 111
Views: 5429

Re: Phase out EF [Emergency Fund]?

If we're trying to be truly objective about this, the best analysis I've seen is here: https://earlyretirementnow.com/2018/04/18/emergency-fund-in-stocks/ The math doesn't lie when you take a comprehensive approach. Personally, I am shifting away from a sacred cash emergency fund. I am fully funding...
by mbasherp
Thu Jul 11, 2019 10:30 am
Forum: Personal Investments
Topic: 25 years to retirement; assume 0 future contributions
Replies: 21
Views: 2577

Re: 25 years to retirement; assume 0 future contributions

Investments would probably be best between 60/40 and 100/0. That’s obviously a broad range. Your timeline suggests stock heavy but your inability to save more suggests a conservative approach. The variable here is that you have no space in your budget to absorb financial shocks. If you need to draw ...
by mbasherp
Thu Jul 04, 2019 11:41 am
Forum: Investing - Theory, News & General
Topic: How do you brace for impact?
Replies: 65
Views: 6168

Re: How do you brace for impact?

In my mind, to be prepared for recession, nothing should be changed from “normal.” One’s personal finance should always be prepared for recession - minimal debt, fully funded emergency fund or equivalent. One’s investments should be structured as to be impervious to anything so transitory or unpredi...
by mbasherp
Wed Jul 03, 2019 7:50 pm
Forum: Personal Investments
Topic: Gold & Silver in a portfolio
Replies: 61
Views: 3044

Re: Gold & Silver in a portfolio

I target 5% in my portfolio. Currently around 3%. Others have covered the reasons well. I’ll add that at my age I’m not so concerned with the benefit of bonds in my portfolio. I’m otherwise 95% equities. Physical precious metal is basically a tiny slice of extreme tail risk protection which I feel i...
by mbasherp
Wed Jul 03, 2019 7:28 am
Forum: Personal Finance (Not Investing)
Topic: How much should I have saved for retirement by age 40?
Replies: 111
Views: 18543

Re: How much should I have saved for retirement by age 40?

Has anyone tried the simple spreadsheet I linked to earlier that translates retirement age goals into retirement income projections, based on current portfolio and current salary, while also assessing the impact of unfavorable market returns? If yes, did it help you assess the robustness of your pl...
by mbasherp
Thu Jun 27, 2019 9:01 am
Forum: Investing - Theory, News & General
Topic: Zero Interest Rates Forever...if true, is it actionable?
Replies: 25
Views: 3129

Re: Zero Interest Rates Forever...if true, is it actionable?

Forever is ridiculous. But for decades, it's certainly possible. It would change how I feel about carrying a sub 4% mortgage (not such a good idea after all). Otherwise, I'd probably wait much longer to add any bonds to my portfolio. Currently 95% equity/5% gold and I think I'd still feel good about...
by mbasherp
Thu Jun 27, 2019 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Anybody else unable to afford a home/have six figure income?
Replies: 60
Views: 7417

Re: Anybody else unable to afford a home/have six figure income?

It's all relative. The home we bought a few years ago for around 250k in a MCOL area would be 10x that in San Francisco, judging by Zillow listings. We make just over 100k combined. I doubt either of us will break 100k individually aside from inflation, although that is a goal. Theoretically, you on...
by mbasherp
Tue Jun 25, 2019 9:46 pm
Forum: Personal Consumer Issues
Topic: How do you sell silver bars?
Replies: 15
Views: 1618

Re: How do you sell silver bars?

Provident Metals (based in TX but primarily online) has been a reliable source for buying and selling over the years for me.
by mbasherp
Tue Jun 25, 2019 8:18 am
Forum: Personal Investments
Topic: Worried about the future/not saving enough
Replies: 39
Views: 5312

Re: Worried about the future/not saving enough

I use Quicken 2007 on an old laptop. Nothing is automatic and I kind of like it this way. I've heard a lot about YNAB and other budgeting apps/programs but frankly, can't bring myself to paying for an app. Mint is completely free and is owned by Intuit, the same company millions trust through their...
by mbasherp
Mon Jun 24, 2019 9:58 am
Forum: Personal Investments
Topic: Worried about the future/not saving enough
Replies: 39
Views: 5312

Re: Worried about the future/not saving enough

CorradoJr, First, resolve to redirect the entire childcare amount to investments once your child is in school. That's a few years away at most. That's a lot of money. Second, realize that eventually you will have to pay off the $50k in debt which you move around. Zero interest is good, but it doesn'...
by mbasherp
Sun Jun 09, 2019 9:34 am
Forum: Personal Finance (Not Investing)
Topic: How are your 30s financially different than your late 20s?
Replies: 47
Views: 5960

Re: How are your 30s financially different than your late 20s?

Everyone is different. I only got my life in order by the end of my 20s. The early 30s were a time of huge progress; letting the efficiency I had added to my life do its good work. Big surprises will always occur. What I’ve noticed it that they are more and more manageable. The bar for what constitu...
by mbasherp
Sat Jun 08, 2019 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: Paying for rent is throwing away money...myth?
Replies: 302
Views: 20348

Re: Paying for rent is throwing away money...myth?

This is so much simpler than we make it. Renting is throwing money away if it is cheaper to own the same house after including all expenses. In my case, that was true. It was far cheaper to buy in the same neighborhood, including maintenance et al than to rent the home 2 houses down. There is no har...
by mbasherp
Sat Jun 08, 2019 2:12 pm
Forum: Personal Investments
Topic: How am I doing?
Replies: 13
Views: 1148

Re: How am I doing?

I'm surprised that with such a high income there's such a big hat (house) and relatively little cattle (savings). $1M in savings and $1.24M debt means you have a negative Net Worth. This is only true if the house is worth $240k or less. Highly unlikely. Let’s not be alarmist by using incorrect meas...
by mbasherp
Tue Jun 04, 2019 8:03 am
Forum: Personal Finance (Not Investing)
Topic: How much life insurance do we NEED
Replies: 11
Views: 1048

Re: How much life insurance do we NEED

Your first step should be to go online to the Social Security website, create your profile (if you haven't already) and see exactly what your survivors benefit would be today. It it usually more significant than expected and it changed my calculations when I was deciding on term life insurance. I ag...
by mbasherp
Wed May 29, 2019 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford to pay for our kid's college (at all)?
Replies: 234
Views: 15671

Re: Can we afford to pay for our kid's college (at all)?

OP, I’m sure that some of these responses will rub you the wrong way. But I encourage you to try to digest what others are saying because you seem to require some sort of “snap out of it” moment to see your situation truthfully and holistically. I would sit down with both kids and lay out every deta...
by mbasherp
Sat May 18, 2019 8:45 pm
Forum: Investing - Theory, News & General
Topic: Why does the stock market grow faster than the economy?
Replies: 28
Views: 4463

Re: Why does the stock market grow faster than the economy?

I’m not sure if it’s been brought up, but something I think about often is that GDP doesn’t have to grow for profits to soar. Increased efficiency in products, services, etc are a big part of the future in my opinion.
by mbasherp
Sat May 18, 2019 5:37 pm
Forum: Personal Investments
Topic: How to calculate exactly how much money you'll have by retirement?
Replies: 75
Views: 8150

Re: How to calculate exactly how much money you'll have by retirement?

Longinvest, I followed your variable savings rate concept closely in another thread and have enjoyed following along here. It is the most reasonable proposal I have seen yet for the question that most accumulators are asking. Thank you for being so detailed! I hope your approach continues to be disc...
by mbasherp
Sat May 04, 2019 11:56 am
Forum: Investing - Theory, News & General
Topic: Dollar cost buying into 30+ CAPE markets
Replies: 44
Views: 2748

Re: Dollar cost buying into 30+ CAPE markets

While I disagree that there is nothing but downside risk, I’d rather ask: What’s the alternative? Invest we must, as a wise man said. There are so many alternatives... Just let your imagination run wild. If you plan to rely on the stock as the only source to make your wealth, then you are at the me...
by mbasherp
Sat May 04, 2019 10:25 am
Forum: Investing - Theory, News & General
Topic: Wouldn't this make Traditional IRA far superior to Roth?
Replies: 82
Views: 8576

Re: Wouldn't this make Traditional IRA far superior to Roth?

For some reason no one ever talks about inflation when comparing Roth to Traditional. I will always choose to keep today's dollars and pay taxes later. Tomorrow's dollar will be worth less. I don’t understand how inflation would affect things in this particular situation. Can you elaborate? Using a...
by mbasherp
Sat May 04, 2019 12:52 am
Forum: Investing - Theory, News & General
Topic: Wouldn't this make Traditional IRA far superior to Roth?
Replies: 82
Views: 8576

Re: Wouldn't this make Traditional IRA far superior to Roth?

folkher0 wrote:
Fri May 03, 2019 6:08 pm
For some reason no one ever talks about inflation when comparing Roth to Traditional.

I will always choose to keep today's dollars and pay taxes later. Tomorrow's dollar will be worth less.
I don’t understand how inflation would affect things in this particular situation. Can you elaborate?
by mbasherp
Sat May 04, 2019 12:44 am
Forum: Personal Investments
Topic: At 28, I Don't See How I Can Make Any Projections for My Retirement Amount or Age?
Replies: 83
Views: 6755

Re: At 28, I Don't See How I Can Make Any Projections for My Retirement Amount or Age?

What I’ve done to try to get some sense of the future is establish what I term my “net worth progression” spreadsheet. It contains year end data for all my accounts dating as far back as I can. But it also runs forward to age 70. What I most commonly use it for is to see if things continue exactly ...
by mbasherp
Fri May 03, 2019 5:58 pm
Forum: Personal Investments
Topic: At 28, I Don't See How I Can Make Any Projections for My Retirement Amount or Age?
Replies: 83
Views: 6755

Re: At 28, I Don't See How I Can Make Any Projections for My Retirement Amount or Age?

What I’ve done to try to get some sense of the future is establish what I term my “net worth progression” spreadsheet. It contains year end data for all my accounts dating as far back as I can. But it also runs forward to age 70. What I most commonly use it for is to see if things continue exactly a...
by mbasherp
Fri May 03, 2019 1:27 pm
Forum: Investing - Theory, News & General
Topic: Dollar cost buying into 30+ CAPE markets
Replies: 44
Views: 2748

Re: Dollar cost buying into 30+ CAPE markets

While I disagree that there is nothing but downside risk, I’d rather ask:

What’s the alternative? Invest we must, as a wise man said.