Search found 3340 matches

by JBTX
Thu Jul 19, 2018 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: What is the most severe hyperbolic discounting you have ever acted on?
Replies: 29
Views: 1734

Re: What is the most severe hyperbolic discounting you have ever acted on?

For material or consumer goods I just don't experience this. Actually the opposite. Sometimes I spend too much time agonizing over certain purchases. We tend to waste money on conveniences like eating out or personal services. I'm not sure that is quite the same thing. Now things like time or career...
by JBTX
Thu Jul 19, 2018 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: New book based on Millionaire Next Door
Replies: 51
Views: 6953

Re: New book based on Millionaire Next Door

I still think lawyers and Dr's represent higher than their proportion of millionaires in America. They may do less with more, but they still are at that level in absolute terms relative to their proportions in the workforce I believe. Obviously small business owners that don't have to flaunt it mak...
by JBTX
Thu Jul 19, 2018 5:17 pm
Forum: Investing - Theory, News & General
Topic: Investing for safety from U.S. Markets
Replies: 4
Views: 200

Re: Investing for safety from U.S. Markets

In before the lock.

These trends you fear are not confined to the US.
by JBTX
Thu Jul 19, 2018 4:43 pm
Forum: Investing - Theory, News & General
Topic: I may have understood why it's so hard to save and invest
Replies: 41
Views: 3809

Re: I may have understood why it's so hard to save and invest

When I was in my 20s I would look at my savings not in present value but in potential future inflation adjusted values 30-40 years into the future. For that period of time you could be looking at 4 to 6 times your original investment. So instead of $1500 it is worth maybe $7500.
by JBTX
Thu Jul 19, 2018 4:22 pm
Forum: Personal Consumer Issues
Topic: I ran out of credit card signups bonus...
Replies: 90
Views: 13012

Re: I ran out of credit card signups bonus...

Lots of people here have questions about applying for a business rewards card if you don't actually own a business. I did this just yesterday so I can probably clear up some confusion. Here's what I did: 1) Applied for Chase Ink Business card. - For TIN# I used my SS# - Chose "Sole Proprietor" - Pe...
by JBTX
Thu Jul 19, 2018 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Semi-Retire by 40-45, possible/realistic?
Replies: 17
Views: 2648

Re: Semi-Retire by 40-45, possible/realistic?

Hi Bogleheads, I have learned so much from you guys and am very thankful for this site. Looking forward to the responses. My wife and I would like to transition into part time work by the time we hit age 40-45 depending on how our portfolio performs in the next decade or so. We want to spend more t...
by JBTX
Wed Jul 18, 2018 9:41 pm
Forum: Investing - Theory, News & General
Topic: Help me understand TIPs.
Replies: 23
Views: 1645

Re: Help me understand TIPs.

TIPS are good for inflationry periods. Given we have had declining inflation over almost 35 years, they have not been as attractive as traditional treasuries. But inflation can't go down forever. The graph below is of U.S. inflation rates since 1983. The downward trend looks fairly weak to me with ...
by JBTX
Wed Jul 18, 2018 6:04 pm
Forum: Investing - Theory, News & General
Topic: Help me understand TIPs.
Replies: 23
Views: 1645

Re: Help me understand TIPs.

I have a hard time recommending TIPS. Risk and return are linked and this is one of the safest investments out there. The only case where they would beat normal treasuries are in a situation where inflation increased unexpectedly. I'm pretty much just amusing myself here with semantics, but I'm sur...
by JBTX
Wed Jul 18, 2018 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Salary vs. Lifestyle
Replies: 74
Views: 6657

Re: Salary vs. Lifestyle

Everybody I know that has had higher salary has figured out a way to enjoy life while earning a higher salary. I think much of the pain now stuff is just talk to make the wealthy feel more normal and not get hassled by the less well off. Excellent points. Victoria I don't understand the points. Can...
by JBTX
Wed Jul 18, 2018 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Salary vs. Lifestyle
Replies: 74
Views: 6657

Re: Salary vs. Lifestyle

This is a highly personal choice and only you can answer. There are so many variables Would I go from a job I like to one I don't for significantly more money? Probably not. Would I go to a job I liked as much but worked more for more money? Maybe. I will say this. Make sure you understand the choic...
by JBTX
Wed Jul 18, 2018 3:36 pm
Forum: Personal Consumer Issues
Topic: Hardwood Floors
Replies: 12
Views: 1438

Re: Hardwood Floors

We used Bella Cera engineered wood. We bought in mainly because it matched the color scheme and it looked really good. It is very dark and glued on. It can chip and scratch, but luckily with a black floor marker you can color the divits and it isn't noticeable. It is hand carved and distressed so it...
by JBTX
Wed Jul 18, 2018 3:27 pm
Forum: Investing - Theory, News & General
Topic: Help me understand TIPs.
Replies: 23
Views: 1645

Re: Help me understand TIPs.

I think people have a hard time wrapping their heads around tips because they tend to focus on nominal measures and not real. Bingo! We see this here all the time. Plus there is a recency bias given their performance has not been stellar over the last 35 years due to declining inflation, plus the l...
by JBTX
Wed Jul 18, 2018 3:21 pm
Forum: Investing - Theory, News & General
Topic: Help me understand TIPs.
Replies: 23
Views: 1645

Re: Help me understand TIPs.

I have a hard time recommending TIPS. Risk and return are linked and this is one of the safest investments out there. The only case where they would beat normal treasuries are in a situation where inflation increased unexpectedly. I'm not a huge TIPS fans myself, but the exception you provide is a ...
by JBTX
Wed Jul 18, 2018 12:43 pm
Forum: Investing - Theory, News & General
Topic: Help me understand TIPs.
Replies: 23
Views: 1645

Re: Help me understand TIPs.

Tips are better used in a tax deferred account vs a taxable account given interest is accrued and annually taxable at ordinary tax rates Tips are not totally risk free. They do have a real interest rate that does go up and down, apart from the inflation component which can cause fluctuation in value...
by JBTX
Wed Jul 18, 2018 11:20 am
Forum: Investing - Help with Personal Investments
Topic: Heresy: Is It Worth Converting tIRAs to Roth?
Replies: 41
Views: 3498

Re: Heresy: Is It Worth Converting tIRAs to Roth?

One question is will you retire in the same state? Given your 24% federal rate and your situation I would consider a partial conversion at 24, but adding another 9% state raises the threshold substantially.
by JBTX
Wed Jul 18, 2018 11:01 am
Forum: Personal Consumer Issues
Topic: Amazon Prime Day 2018
Replies: 87
Views: 9186

Re: Amazon Prime Day 2018

I bought two things that have been on my list for awhile I wanted the Bose Quiet Comfort 25 (non blue tooth) because of it's excellent noise cancelling features. Watched it at $300 then $200 then jumped at $140 last year (but too late). At $125 it was right in the sweet spot. Also needed a 256GB mi...
by JBTX
Wed Jul 18, 2018 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Thinking about job change but current job gives 9% salary into 401k..
Replies: 24
Views: 2362

Re: Thinking about job change but current job gives 9% salary into 401k..

The 9% could be a non elective employer match, or it could be a profit share, or a combination of both. If circumstances change they could ultimately change either, although they would be less likely to change a non elective match than a profit share.
by JBTX
Tue Jul 17, 2018 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: How can I pay my credit card balance with a Visa Gift Card?
Replies: 32
Views: 2417

Re: How can I pay my credit card balance with a Visa Gift Card?

I researched many sources (Quora, etc.) and found conflicting answers. Can I pay my credit card balance with a Visa Gift Card? Has anyone on this forum been able to do so without paying any fees? There are two issues with these type of transactions. 1) The issuer expects you to use the card to buy ...
by JBTX
Tue Jul 17, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Rollover to a expensive 401k worth it?
Replies: 15
Views: 602

Re: Rollover to a expensive 401k worth it?

Every year you will incur about $1000 in extra expenses in that 401k Each year by doing backdoor Roth you'd save maybe: 11000 *.08 return = approx $1000 gain times 15% cap gains rate = $150 per year. Tax efficient index funds would be less than that since they don't recognize gains that often. So th...
by JBTX
Tue Jul 17, 2018 1:15 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 171
Views: 10670

Re: Why is leveraging property good but leveraging stocks bad?

Margin loans are typically higher than mortgage rates plus you have margin calls. My margin loan rate is currently 3.1%. What's your mortgage rate? I thought mortgages were currently at 4.6% or so? My mortgage is 3.25. It is a 15 year. I'm not at all an expert on margin loans. Just from basic googl...
by JBTX
Mon Jul 16, 2018 7:07 pm
Forum: Personal Consumer Issues
Topic: Would you pay $120 for a 5 year dishwasher warranty?
Replies: 61
Views: 2610

Re: Would you pay $120 for a 5 year dishwasher warranty?

Conventional wisdom is you don't. And I typically don't. We have a whole new set of kitchen appliances and I'm not purchasing warranty on any of them. That said, there have been occasions where I bought one, in spite of the conventional wisdom. The rationale is that of it were to malfunction I would...
by JBTX
Mon Jul 16, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Planning to invest, but where?
Replies: 4
Views: 342

Re: Planning to invest, but where?

Max out your 401k first. Not just to the employer match.
by JBTX
Mon Jul 16, 2018 6:55 pm
Forum: Personal Consumer Issues
Topic: How much did your braces/invisalign braces cost?
Replies: 32
Views: 2497

Re: How much did your braces/invisalign braces cost?

First kid was around $4200 what we spent. Insurance may have picked up a little in addition to that. Second kid was less than $3000 with no insurance pickup. Same provider. His are a little less complicated than first. I was recently quoted by my dentist $7500 for me for invisiline. I have no intent...
by JBTX
Mon Jul 16, 2018 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Families - What's your total annual credit card spend?
Replies: 76
Views: 4861

Re: Families - What's your total annual credit card spend?

I've never run the numbers, but probably $80k-$100k for family of 4. We put everything on the card we can.
by JBTX
Sun Jul 15, 2018 11:58 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 171
Views: 10670

Re: Why is leveraging property good but leveraging stocks bad?

Agree that leveraging for stocks per se isn't bad. But margin loans are. Margin loans are typically higher than mortgage rates plus you have margin calls. We could easily pay off our modest mortgage by tapping into a small portion of retirement portfolio but I'd rather retain the 3.25% loan and keep...
by JBTX
Sun Jul 15, 2018 11:25 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone not have a Budget?
Replies: 114
Views: 6270

Re: Anyone not have a Budget?

Historically not really. On occasion I'll take prior year spending categories and set goals/ targets for current year but I rarely follow up. It is really about meeting:

1. Long term savings goals
2. Short term liquidity goals.
by JBTX
Sun Jul 15, 2018 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: What rate of return are you using for retirement projections?
Replies: 99
Views: 8874

Re: What rate of return are you using for retirement projections?

I use around 3.0% real for entire portfolio.

I suspect most people use the lowest number that safely still meets their objectives.
by JBTX
Sun Jul 15, 2018 11:30 am
Forum: Investing - Help with Personal Investments
Topic: Investing vs Debt
Replies: 12
Views: 648

Re: Investing vs Debt

+2 to rural avalon Funding Roths at a low tax bracket while low 30s or paying of 6.6 debt is a judgement call. You could argue either way on that. You are kind of in the middle. Less than 5% I'd say definitely fund the Roth. More than 8% I'd say definitely pay off the debt. I would tend to favor the...
by JBTX
Sun Jul 15, 2018 1:32 am
Forum: Personal Finance (Not Investing)
Topic: 401k for 1099 income
Replies: 6
Views: 605

Re: 401k for 1099 income

You can't exceed a total of $18500 total employee contributions tax deferred for all qualified plans put together. However you could fund the employer match of a self employed 401k. It would only be approx.20% of self employment income, or $2400, so that may not be enough to be worth the effort.
by JBTX
Thu Jul 12, 2018 11:23 pm
Forum: Investing - Theory, News & General
Topic: The value of international stocks, in pictures
Replies: 62
Views: 7380

Re: The value of international stocks, in pictures

I agree if returns are "different" seems to me there is diversification benefit. Looking at the OP graphs it is hard to conclude there is no diversification benefit. We keep looking over limited data time frames which include the last 30-40 years where the US has had an overall extraordinary run. Th...
by JBTX
Thu Jul 12, 2018 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: Eesh! 100% Company Stock - Help me with my 401k!
Replies: 20
Views: 1426

Re: Eesh! 100% Company Stock - Help me with my 401k!

Some More Details about the Target Fund: Target Retirement 2055 Fund Fund Category / Average Cash 2.28% / 3.73% Convertibles 0.00% / 0.04% Domestic Bond 6.53% / 4.94% Preferred Stock 0.01% / 0.07% Foreign Bond 3.32% / 1.54% Foreign Stock 33.53% / 31.41% Others 0.34% / 4.52% Domestic Stock 54.00% / ...
by JBTX
Thu Jul 12, 2018 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Eesh! 100% Company Stock - Help me with my 401k!
Replies: 20
Views: 1426

Re: Eesh! 100% Company Stock - Help me with my 401k!

Some More Details about the Target Fund: Target Retirement 2055 Fund Fund Category / Average Cash 2.28% / 3.73% Convertibles 0.00% / 0.04% Domestic Bond 6.53% / 4.94% Preferred Stock 0.01% / 0.07% Foreign Bond 3.32% / 1.54% Foreign Stock 33.53% / 31.41% Others 0.34% / 4.52% Domestic Stock 54.00% / ...
by JBTX
Thu Jul 12, 2018 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Credit score after becoming debt free?
Replies: 44
Views: 2901

Re: Credit score after becoming debt free?

Why would you choose to go into debt again? To buy a house in the event I do not have enough readily available cash to pay for it without incurring tax penalties. So you worked hard and used up your source of readily available cash to become totally debt free and are very proud of it. And now you w...
by JBTX
Thu Jul 12, 2018 9:31 am
Forum: Personal Consumer Issues
Topic: Is expensive olive oil worth it?
Replies: 59
Views: 5442

Re: Is expensive olive oil worth it?

There is a documentary series on Netflix called "Rotten." One of the episodes is about olive oil and how pretty much all of it is faked up and down the price spectrum. It's worth watching. I thought I saw a similar thing on 60 minutes years ago. https://www.google.com/amp/s/www.cbsnews.com/amp/news...
by JBTX
Wed Jul 11, 2018 9:28 pm
Forum: Investing - Theory, News & General
Topic: Dow 40000 prediction for 2025
Replies: 44
Views: 3869

Re: Dow 40000 prediction for 2025

Houston we have a problem. -- We have one thread telling us to get ready for a LOST decade. -- We have this thread telling us to get ready for Dow 40k in seven years. Which one is correct? Gracias por leer ~cfs~ Most likely neither, and obvious answer is no one knows. But my take/guess is that the ...
by JBTX
Wed Jul 11, 2018 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life - We're doing it. What to look for?
Replies: 128
Views: 7489

Re: Whole Life - We're doing it. What to look for?

Agreed. This is a very good policy. Over the last few months I was looking at policies for a friend and they were exactly like you described. Zero cash value for 5 years and not much addition through year ten. I would see rates of return between 2.5% and 4.0%. Really dismal returns. As to after yea...
by JBTX
Tue Jul 10, 2018 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life - We're doing it. What to look for?
Replies: 128
Views: 7489

Re: Whole Life - We're doing it. What to look for?

If the SO has shopped for term coverage and really cannot get a policy, or the premiums for term would be higher than this whole life policy, then this policy is the least expensive way to get additional life insurance. I'm guessing like you are saying that if they instead pursued a different term ...
by JBTX
Tue Jul 10, 2018 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life - We're doing it. What to look for?
Replies: 128
Views: 7489

Re: Whole Life - We're doing it. What to look for?

A term policy of 20 years for a 35 year old standard risk 100k would be about $175 per year. Your whole life is almost $1000 per year. https://www.quickquote.com/term-life-insurance-quotes It's Impossible to say if your quote us good because we dont know the cash value at 20 years or any other poin...
by JBTX
Tue Jul 10, 2018 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life - We're doing it. What to look for?
Replies: 128
Views: 7489

Re: Whole Life - We're doing it. What to look for?

I have also found it interesting that one of the major knocks against WL is the amount of principal that goes towards salesman's commissions. With Navy Mutual, they claim their salesman are commission-free and the company is a non-profit. While these are probably true statements, I suspect a fair a...
by JBTX
Tue Jul 10, 2018 7:29 am
Forum: Investing - Theory, News & General
Topic: WCI blog post - "This Real Estate Bubble - Likely Isn't a Bubble"
Replies: 58
Views: 6559

Re: WCI blog post - "This Real Estate Bubble - Likely Isn't a Bubble"

To keep this actionable, I will note that I am tracking this data closely because I may be ready to buy a house in the next 3-5 years. Also, to keep this intellectually honest, we need to acknowledge that the source/author is a mortgage lender, who makes money when people buy houses and use a lot o...
by JBTX
Tue Jul 10, 2018 7:13 am
Forum: Personal Consumer Issues
Topic: Resume Question
Replies: 10
Views: 658

Re: Resume Question

I'm not sure if there is an established convention. I might be more detailed about the current employer, brief about the same duties with earlier employers, and include something unique about each employer. Maybe something like: 2016-present. Megacorp Inc. Test technician. Utilized industry-standar...
by JBTX
Tue Jul 10, 2018 6:45 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life - We're doing it. What to look for?
Replies: 128
Views: 7489

Re: Whole Life - We're doing it. What to look for?

A term policy of 20 years for a 35 year old standard risk 100k would be about $175 per year. Your whole life is almost $1000 per year. https://www.quickquote.com/term-life-insurance-quotes It's Impossible to say if your quote us good because we dont know the cash value at 20 years or any other poin...
by JBTX
Tue Jul 10, 2018 1:43 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life - We're doing it. What to look for?
Replies: 128
Views: 7489

Re: Whole Life - We're doing it. What to look for?

A term policy of 20 years for a 35 year old standard risk 100k would be about $175 per year. Your whole life is almost $1000 per year. https://www.quickquote.com/term-life-insurance-quotes It's Impossible to say if your quote us good because we dont know the cash value at 20 years or any other point...
by JBTX
Mon Jul 09, 2018 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life - We're doing it. What to look for?
Replies: 128
Views: 7489

Re: Whole Life - We're doing it. What to look for?

There may be times whole life makes sense for somebody and I don't pretend to be an expert. But keep in mind whole life is a combination of a guaranteed low rate of return investment, and payment on premature death (which is effectively or similar to term insurance). Most of the premium you pay is r...
by JBTX
Mon Jul 09, 2018 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: A little guidance welcomed
Replies: 16
Views: 804

Re: A little guidance welcomed

I want to get the cc down and gone as soon as possible. Would it be wise to knock back the 401k and put towards the card for a year to get it gone? If your employer is not matching, I would pay debt first. I feel like we are doing ok from the people I work with and friends but are reading here I fe...
by JBTX
Sun Jul 08, 2018 11:32 pm
Forum: Personal Consumer Issues
Topic: WiFi router
Replies: 35
Views: 2470

Re: WiFi router

An orbi may be more than what you need but has worked well for us. Much better for streaming Netflix and no issues over the 8 months we've had it. No more dead spots in our house.
by JBTX
Sun Jul 08, 2018 11:28 pm
Forum: Investing - Help with Personal Investments
Topic: Should I rollover 401 and 457? Newbie
Replies: 11
Views: 690

Re: Should I rollover 401 and 457? Newbie

I am new to the community and greatly appreciate the expertise on so many different subjects. I am asking for advice on whether to rollover a 401 and 457 into an IRA and where best to invest it. I am 57 and my wife is 60. We are both retired from professions we worked at for 32 years and are now wo...
by JBTX
Sun Jul 08, 2018 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Florida Retirement System Options
Replies: 9
Views: 593

Re: Florida Retirement System Options

I'd go with the total market index. It has lower fees and is more broadly diversified. The large cap has performed better over last 5 years because in general large cap stocks have out performed small cap over the last 5. Over the long term small caps have done as well or better than large caps so t...
by JBTX
Sun Jul 08, 2018 11:00 pm
Forum: Investing - Theory, News & General
Topic: How did Druckenmiller achieve a positive return in 2008?
Replies: 14
Views: 1743

Re: How did Druckenmiller achieve a positive return in 2008?

If you had a large enough bond allocation, especially treasuries, it could have happened. Vanguard wellesley income did not lose money from year end to year end during that stretch . The key is comparing year end to year end. Vanguard intermediate treasuries was up about 10% in 2008. Yes, vanguard ...
by JBTX
Sun Jul 08, 2018 3:41 pm
Forum: Investing - Theory, News & General
Topic: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]
Replies: 13
Views: 2383

Re: I did not know about the Lifestyle funds. [Vanguard LifeStrategy]

Based on posts at mutual fund observers the funds only differ in stock bond allocation. In particular the share of us equities to foreign equities is the same for all funds so if you want fewer foreign stocks (or more) than Vanguard thinks you should have you will need to own at least on additional...