Search found 108 matches

by DC3509
Thu Feb 22, 2018 12:09 pm
Forum: Personal Consumer Issues
Topic: Mental Accounting -- How to solve problem
Replies: 31
Views: 2635

Re: Mental Accounting -- How to solve problem

This thread has been eye-opening! Personally, I budget annually and then break that down into monthly chunks. I (try to) keep a buffer in my checking account for 1/12th of my annual expenses, not including savings/retirement. I don't worry about expensive months since it all even out -- our biggest...
by DC3509
Thu Feb 22, 2018 9:20 am
Forum: Investing - Help with Personal Investments
Topic: Balance in Marriage and Student Loans
Replies: 26
Views: 1704

Re: Balance in Marriage and Student Loans

First year of marriage I would continue to rent. I also would not pay off his loans during that time, it can be stressful and would be great fuel for a fight. Why is he paying so little on his income now? Are you both looking for better jobs? Can he work extra to earn more to pay them off faster? I...
by DC3509
Thu Feb 22, 2018 12:28 am
Forum: Investing - Help with Personal Investments
Topic: Balance in Marriage and Student Loans
Replies: 26
Views: 1704

Re: Balance in Marriage and Student Loans

This is a very personal decision but below is what I would do. $25,000 to emergency fund $63,000 to Parent PLUS loan $12,000 to Private loan Let him then send the $1200/month to the private loan. I would not accelerate payments on a 1% interest loan. If you accumulated $100,000 in the last 5 years ...
by DC3509
Thu Feb 22, 2018 12:23 am
Forum: Investing - Help with Personal Investments
Topic: Balance in Marriage and Student Loans
Replies: 26
Views: 1704

Re: Balance in Marriage and Student Loans

So I am curious as to how he racked up close to $100K in student loans and yet doesn't seem to have the type of income that justifies that sort of debt load. This is a tough call and really more of a relationship question than a money question. As a pure financial matter, it makes more sense for you...
by DC3509
Wed Feb 21, 2018 11:52 pm
Forum: Personal Consumer Issues
Topic: Mental Accounting -- How to solve problem
Replies: 31
Views: 2635

Re: Mental Accounting -- How to solve problem

I would aim at having the bonus fit the future year, not the end of the year you are in. That way you could (eventually) have future bumpy expenses covered ahead of time, not trying to catch up at end of the year. Had a young friend who was always running out at end of month, so he would eat out an...
by DC3509
Wed Feb 21, 2018 2:37 pm
Forum: Personal Consumer Issues
Topic: Mental Accounting -- How to solve problem
Replies: 31
Views: 2635

Re: Mental Accounting -- How to solve problem

Several people have mentioned the "net worth" approach which I think has some validity for my circumstances. For instance, if I was looking at net worth, the past three months look fantastic because I have paid off all of my student loans! But if you look just at the savings/expense statement, it ha...
by DC3509
Wed Feb 21, 2018 8:18 am
Forum: Personal Consumer Issues
Topic: Mental Accounting -- How to solve problem
Replies: 31
Views: 2635

Re: Mental Accounting -- How to solve problem

Thanks for the replies. I should have said in my earlier post -- I am already maxing my 401K, contributing to a backdoor, have studied my expenses, and generally saving 20-30%. I love my job and so early retirement is not a goal; but I do have a pretty good idea of where I want to be in 20 years, an...
by DC3509
Tue Feb 20, 2018 11:55 pm
Forum: Personal Consumer Issues
Topic: Mental Accounting -- How to solve problem
Replies: 31
Views: 2635

Mental Accounting -- How to solve problem

So, I am a firm believer that the only way to improve your finances is to understand the pitfalls which you are prone to, and try to find ways to overcome these issues. For me, the absolute, biggest one, without a doubt, is mental accounting. In fact, I remember the moment when I read about mental a...
by DC3509
Mon Feb 19, 2018 2:30 am
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 6738

Re: Sell me on the benefits of an emergency fund

This is a very interesting thread and I appreciate the responses. In my own situation, I have an emergency fund that is about 10% of my total net worth just sitting in a big bank checking account. I have been thinking lately that perhaps I should have more of this invested. There is something to be ...
by DC3509
Mon Feb 19, 2018 2:16 am
Forum: Personal Consumer Issues
Topic: Bogleheads with $100K+ MSRP cars?
Replies: 92
Views: 8736

Re: Bogleheads with $100K+ MSRP cars?

So, it doesn't have a $100K+ MSRP, but it was definitely expensive enough -- we just leased a Maserati Levante, the new SUV model from Maserati. Kind of a long story, but needed a new car, finally have my financial house in order, and I became more and more curious about luxury cars and whether they...
by DC3509
Mon Feb 19, 2018 1:47 am
Forum: Investing - Help with Personal Investments
Topic: Late 20's female looking for some advice towards financial independence
Replies: 31
Views: 3741

Re: Late 20's female looking for some advice towards financial independence

OP -- you do realize you are way ahead of the curve financially for someone your age -- right? It appears at the end of the day you have a net worth of about $140K -- that is fantastic for someone your age. Unfortunately, I think people here sometimes compare themselves against everyone else (its ow...
by DC3509
Sun Feb 18, 2018 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 6738

Re: Sell me on the benefits of an emergency fund

OP, you don't need an EF. I feel an EF is good for those starting out, or when all one's investments are in tax advantaged and not easy to get at. If one has enough in taxable or enough assets in some form, I don't think they need a designated EF. It would be a comfort thing at that point to have o...
by DC3509
Sun Feb 18, 2018 1:10 am
Forum: Investing - Help with Personal Investments
Topic: How to advise a parent
Replies: 22
Views: 1884

Re: How to advise a parent

I have been in this same boat over the past year and it felt like a no-win situation. My parents were faced with sudden retirement due to a RIF, and neither are financial experts. They had major decisions to make about lump sum versus annuity, if they take the lump sum where to invest, etc. They mad...
by DC3509
Thu Feb 15, 2018 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Gut check: is this lifestyle creep?
Replies: 37
Views: 5460

Re: Gut check: is this lifestyle creep?

But by the definition of spending rate increase, keeping the same savings rate and spending rate would not be creep. The creep, even as quoted by investopedia article, is when retirement savings can't sustain pre-retirement spending because spending rate grows in relation to savings. If someone mak...
by DC3509
Sun Feb 11, 2018 4:26 pm
Forum: Personal Consumer Issues
Topic: Does it ever make sense to buy a new car?
Replies: 103
Views: 6440

Re: Does it ever make sense to buy a new car?

As someone who just participated in one of these car threads recently, I second some of the posters here who say that there are just entirely too many variables here to really offer good advice. If you are maxing out your 401K, have an emergency fund, saving in a taxable account, not house poor, and...
by DC3509
Tue Feb 06, 2018 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

I would not consider the free dealer loaners as a benefit to the car, even if lowers the miles. We do have another used car that we would be keeping and is very reliable -- so it fall more into the "fun ride" category at the end of the day.
by DC3509
Mon Feb 05, 2018 1:16 am
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

You say you will be ok with 5000 miles/yr because you do not drive much, but you've driven your current car an average of 15,000 mile/yr. Did you used to drive a lot more? What's changed? If you now drive less, how many years have you been driving 5-7000 miles a year? FWIW, unless you're really in ...
by DC3509
Sat Feb 03, 2018 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

It's funny how a thread that recognizes up front that there are various pros and cons to leasing and doesn't want to get into that debate, and instead wanted to focus on whether this was specifically a good lease deal on its own terms turns into "You are only doing this because you can't buy it" and...
by DC3509
Sat Feb 03, 2018 7:09 am
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

I appreciate the alternative ideas, but taking Ubers everywhere is not how I want to spend my life, even if it saves me a couple of bucks, technically. My time is just as valuable as my money at this point and I want the convenience of being able to go where I need to go when I need to go there rath...
by DC3509
Fri Feb 02, 2018 11:17 pm
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

I have heard of various metrics on lease deals, but not the miles one you cited. I can understand it if you are trying to maximize miles per dollar, but I am not sure that really matters in my situation. I will never drive 12,000 miles in a year so why would I get a 12,000 mile lease, even if that i...
by DC3509
Fri Feb 02, 2018 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

You haven’t even said how much the lease costs (down + monthly), so it’s hard to say much. I question the need for such a high end vehicle that you will almost never drive. If you live in the city and don’t normally drive, having a fancy car you start feeling like you have to drive because you’re p...
by DC3509
Fri Feb 02, 2018 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

This is definitely just a weekend car and an occasional road trip to visit family about 200 miles away any reason not to rent a high end luxury car every weekend? I am guessing you will get a big bill for wear and tear items when you go and turn in the Maserati Renting a car every weekend is a majo...
by DC3509
Fri Feb 02, 2018 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

All, Thank you for the helpful responses. We spent a few hours at the dealership today -- some follow-up thoughts -- 1.) On the mileage -- the mileage could be increased to 7,500 for about an extra $100 per month. The overage rate on the lease is .30 per mile. I think its a close-call if we would be...
by DC3509
Wed Jan 31, 2018 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

Ah.....a Levante. Have you watched the Doug DeMuro youtube review of the car? You may want to before you lease it. I did, and I would not pay $80,000 for it. The question is whether I want to pay ~$20 for the ability just to drive it for 3 years and whether it is worth it at that price point. Also,...
by DC3509
Wed Jan 31, 2018 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

It is a 2017 Levante. I am not a car nut at all and have no idea how to fix anything on a car.

It is not 0% down, but even when you add in the down-payment and divide it by the lease term, you are at less than 1%.
by DC3509
Wed Jan 31, 2018 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

Just to give a little more context ... I know the downsides of leasing. And they are real. But part of this for me is -- I drive a 8 year old car now that has major issues. I have never driven a luxury car. Part of me actually thinks I might dislike the experience -- like driving a museum or somethi...
by DC3509
Wed Jan 31, 2018 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Re: Car Lease -- High Residual Value -- what am I missing?

Thanks for the responses. A couple of folks have suggested renting a fancy car on the weekends -- not going to happen. I have a very busy and hectic job (usually work 6 or even 7 days a week) and do not have the time or patience to deal with car rentals. Moreover, we live in a very urban area and th...
by DC3509
Tue Jan 30, 2018 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: Car Lease -- High Residual Value -- what am I missing?
Replies: 49
Views: 4437

Car Lease -- High Residual Value -- what am I missing?

All, I am debating the whole lease versus buy equation -- many of the threads that have already been posted here on this subject are excellent resources. But I have come across one peculiar situation and wanted your thoughts. One of the cars I am considering for a lease is a 2017 Maserati. The deale...
by DC3509
Tue Jan 23, 2018 11:41 pm
Forum: Personal Finance (Not Investing)
Topic: Working in the real world
Replies: 118
Views: 8811

Re: Working in the real world

I am in the same boat -- family history, geographic background, and household income today. I think this Board attracts a certain "type" and there is nothing wrong if you evolved into that type over time. I know I did. That being said, there are times I think that some posters here can be harsh and ...
by DC3509
Tue Jan 23, 2018 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: am I crazy to do a lump sum investment with my entire retirement in this current stock market?
Replies: 47
Views: 5829

Re: am I crazy to do a lump sum investment with my entire retirement in this current stock market?

You can read through some of my prior posts -- I was helping my parents invest a lump sum last summer and I worried about the same thing -- we are dumping a ton of money into what everyone is saying is a high point. Eventually, I ignored that line of thinking, followed what several suggested here, a...
by DC3509
Fri Jan 05, 2018 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: 401K Loan vs Line of Credit vs Emergency Fund
Replies: 6
Views: 528

401K Loan vs Line of Credit vs Emergency Fund

I wanted to get some Boglehead perspective on something I am facing now -- Without getting into the details too much, I need to make a significant purchase in the near term. The timing is such that I cannot just "save" for it and buy it in a few months, though I do anticipate that however I pay for ...
by DC3509
Mon Oct 02, 2017 9:44 am
Forum: Investing - Help with Personal Investments
Topic: We need help! Individual stock portfolio getting out of hand.
Replies: 23
Views: 2174

Re: We need help! Individual stock portfolio getting out of hand.

Welcome to the forum! Let me channel some William Bernstein on this Thursday morning... 1.) Individual stocks are a losers game, even if you are trying to be careful about it. That's because stocks are a zero-sum transaction. For every buyer, there must be a seller -- for every winner, there is a l...
by DC3509
Thu Sep 28, 2017 7:19 am
Forum: Investing - Help with Personal Investments
Topic: We need help! Individual stock portfolio getting out of hand.
Replies: 23
Views: 2174

Re: We need help! Individual stock portfolio getting out of hand.

Welcome to the forum! Let me channel some William Bernstein on this Thursday morning... 1.) Individual stocks are a losers game, even if you are trying to be careful about it. That's because stocks are a zero-sum transaction. For every buyer, there must be a seller -- for every winner, there is a lo...
by DC3509
Mon Sep 25, 2017 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Is it a stupid financial decision to rent for another year?
Replies: 13
Views: 971

Re: Is it a stupid financial decision to rent for another year?

Given that we are in the same area, I know a thing or two about the housing market you are looking at now. I also second the opinion about continuing to rent. At that price point you are talking about a fairly large house. Do you have other cash reserves to handle the inevitable problems that come a...
by DC3509
Sat Sep 23, 2017 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: Take The Lump Sum or The Immediate Annuity?
Replies: 34
Views: 3566

Re: Take The Lump Sum or The Immediate Annuity?

In situations like this, all else being equal, the lump sum favors the issuer. The annuity favors the individual. 123 said: When interest rates are low the lump sum is often the better choice, depending on how you view mortality issues. In most cases the calculation of the lump-sum is based on a co...
by DC3509
Tue Sep 19, 2017 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 68
Views: 6584

Re: What is FI if you love your job? [Financial Independence]

Isn't there a healthy medium? I recently spent some time with a truly wonderful couple -- I can tell you that they never adopted a FI lifestyle, and did many of the things that Stanley would scold them about in his book -- designer clothes, second homes, etc. But they both had high paying jobs and ...
by DC3509
Tue Sep 19, 2017 11:09 pm
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 68
Views: 6584

Re: What is FI if you love your job? [Financial Independence]

I recently spent some time with a truly wonderful couple -- I can tell you that they never adopted a FI lifestyle, and did many of the things that Stanley would scold them about in his book -- designer clothes, second homes, etc. But they both had high paying jobs and some inheritances mixed in. DC...
by DC3509
Tue Sep 19, 2017 7:50 am
Forum: Investing - Help with Personal Investments
Topic: Take The Lump Sum or The Immediate Annuity?
Replies: 34
Views: 3566

Re: Take The Lump Sum or The Immediate Annuity?

I wrote some other threads recently on this subject as my parents faced the same choice with similar numbers as you. As other posters have already said, the "right" decision depends on a lot of factors which you haven't discussed -- the rest of your portfolio, life expectancy, etc. For now, I think ...
by DC3509
Mon Sep 18, 2017 9:13 am
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 68
Views: 6584

Re: What is FI if you love your job?

I agree but being very strict about FI can involve a lot of significant tradeoffs in the present, and I worry that I might regret those in the years to come, especially if I am still doing what I love to do anyway and haven't really "retired" to anything. I feel like a lot of the FI stuff I read pr...
by DC3509
Mon Sep 18, 2017 7:52 am
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 68
Views: 6584

Re: What is FI if you love your job?

OP, 1) Are you FI yet? How would you know that you will feel the same way when more money does not make any difference in your life? The first million feels great! The second million does not feel as great. The third million may not matter. 2) Would you feel the way 5 years from now? 10 years from ...
by DC3509
Mon Sep 18, 2017 7:50 am
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 68
Views: 6584

Re: What is FI if you love your job? [Financial Independence]

In my experience, those who "love their jobs" are generally either one day away from either hating their jobs or being committed. The sane ones end up hating their jobs (like most people) and developing a smart strategy to achieve FIRE. I think I have been very fortunate to be in an industry where ...
by DC3509
Mon Sep 18, 2017 7:48 am
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 68
Views: 6584

Re: What is FI if you love your job? [Financial Independence]

Thanks for all of the great and very interesting replies. Just a few notes -- 1.) While I have not lost my job because of a recession yet, my career path was definitely set back several years because of the Great Recession and almost didn't happen at all. So, I am acutely aware of how things can cha...
by DC3509
Sun Sep 17, 2017 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 68
Views: 6584

Re: What is FI if you love your job?

I greatly enjoy my job and would continue to work even if I didn't need the money. I save because I know that there will come a point where I may either not be able to work or no longer feel like I do currently. Once I have reached FI, I'll assess how I'm feeling about my job. If I continue to love...
by DC3509
Sun Sep 17, 2017 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 68
Views: 6584

Re: What is FI if you love your job?

OP, 1) Are you FI yet? How would you know that you will feel the same way when more money does not make any difference in your life? The first million feels great! The second million does not feel as great. The third million may not matter. 2) Would you feel the way 5 years from now? 10 years from ...
by DC3509
Sun Sep 17, 2017 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 68
Views: 6584

What is FI if you love your job? [Financial Independence]

I have a philosophical question that I have been thinking about a lot lately. I enjoy these forums, and have learned a lot here and through the recommended books. But I also have a very strong sense that most of the FI movement, at its heart, involves people who do not like their jobs and want out, ...
by DC3509
Fri Sep 15, 2017 10:58 am
Forum: Investing - Help with Personal Investments
Topic: Investing parents nest egg -- any final thoughts?
Replies: 37
Views: 3030

Re: Investing parents nest egg -- any final thoughts?

Thanks for the reply; if you take 30 years at 4.3%, you still get a 90% success rate. This site seems to use Monte Carlo -- Bengen's calculations do not and he even has a chapter on why he prefers to use the dataset he does -- but either way, you are talking about a success rate of somewhere betwee...
by DC3509
Thu Sep 14, 2017 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Investing parents nest egg -- any final thoughts?
Replies: 37
Views: 3030

Re: Investing parents nest egg -- any final thoughts?

I would carve it out: 50% total stock 15% international 25% total bond 10% total international bond Try to start with 4% and see how far they can run with it for the year. Better to keep as much as you can working for them while it can be earning. You might want to run this simulation below and sho...
by DC3509
Wed Sep 13, 2017 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Investing parents nest egg -- any final thoughts?
Replies: 37
Views: 3030

Re: Investing parents nest egg -- any final thoughts?

Why invest it? If there's no need to pass it on to heirs, how about an annuity to give them a set income instead? The OP's parents are in poor health and their grandparents died fairly young. If you expect to die before actuarial tables predict, annuities are poor choices. If it is a sure way to co...
by DC3509
Wed Sep 13, 2017 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Milestone Reached - "Quarter Millionaire!"
Replies: 41
Views: 5399

Re: Milestone Reached - "Quarter Millionaire!"

Congrats. I am in the same boat -- didn't really get serious about this until early to mid 30s, but it is nice to see things growing now and great to hear other success stories!
by DC3509
Wed Sep 13, 2017 7:51 am
Forum: Investing - Help with Personal Investments
Topic: Investing parents nest egg -- any final thoughts?
Replies: 37
Views: 3030

Re: Investing parents nest egg -- any final thoughts?

I didn't read the other threads but a couple of things; 1) If you are taking an ongoing roll in managing their finances then there needs to be a clear backup plan in case you get run over by the proverbial Mack truck tomorrow. 2) The X% safe withdrawal rate is a good reality check to make sure that...