Search found 1427 matches

by fyre4ce
Sun Jul 25, 2021 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: What is the average savings rates for bogleheads?
Replies: 209
Views: 13206

Re: What is the average savings rates for bogleheads?

About 45%, including retirement accounts, employer match, taxable savings, 529 savings, and the equity portion of our mortgage payment. This is in a VHCOL and high-tax area.
by fyre4ce
Thu Jul 22, 2021 10:50 pm
Forum: Investing - Theory, News & General
Topic: Best inflation hedge besides gold, real estate, stocks, and crypto
Replies: 122
Views: 9634

Re: Best inflation hedge besides gold, real estate, stocks, and crypto

teelainen wrote: Mon Jul 19, 2021 10:51 pm What are you currently holding besides gold, real estate, stocks, and crypto?

I have heard of some people buying small private businesses to act as a hedge against inflation and for extra diversification, but this doesn't seem passive.

Would love to hear what others are doing.
TIPS and I-bonds.
by fyre4ce
Thu Jul 22, 2021 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Mass Mutual whole life legacy pay 20
Replies: 44
Views: 1749

Re: Mass Mutual whole life legacy pay 20

You get cash value OR the death benefit, not both. You don't need any life insurance right now. So, you would be paying for insurance you don't need - not a good idea. If you do ever need life insurance, $75k will likely be WAY too little. If you ever need life insurance, get competitive priced term...
by fyre4ce
Thu Jul 22, 2021 10:48 am
Forum: Personal Finance (Not Investing)
Topic: What % of NW Should Be Wrapped Up in Your House?
Replies: 114
Views: 10125

Re: What % of NW Should Be Wrapped Up in Your House?

First, you need to be clear whether you are talking about house price or house equity . The same price house can be bought with maximum equity (paying cash), zero equity (interest-only mortgage, 0% down), or anywhere in between. But regardless, I think correlating housing costs to income is much mor...
by fyre4ce
Mon Jul 19, 2021 4:57 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Just curious, what was the rationale for not adding 529 plans to the list? I suggested they be added earlier in the thread, and they got removed somewhere along the way without much discussion. Not saying it needs to be added, just checking if there's a good reason and it's actually the group conse...
by fyre4ce
Mon Jul 19, 2021 1:12 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Just curious, what was the rationale for not adding 529 plans to the list? I suggested they be added earlier in the thread, and they got removed somewhere along the way without much discussion. Not saying it needs to be added, just checking if there's a good reason and it's actually the group consen...
by fyre4ce
Fri Jul 16, 2021 4:51 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

I was starting from the very beginning, i.e. getting ready to invest. Your starting point is after an investor has the emergency fund established and is wondering what to do next. The order of accounts in which one chooses to invest is probably most relevant for people who can't afford to contribut...
by fyre4ce
Fri Jul 16, 2021 4:21 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

First, thanks for pushing back. If I feel strongly about something, I dig a line in the stand and hold to my position. That doesn't mean I'm right. It just means I feel strongly about something. If anyone disagrees with what I say, by all means say so and explain why. Both sides learn from the expe...
by fyre4ce
Fri Jul 16, 2021 1:16 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

You're making assumptions about 'typical' investors with a certain lifestyle. Don't assume that the demographics of members who post here is the target audience. We have many, many readers who do not match those demographics. View any forum and note the number of views vs. the number of members who...
by fyre4ce
Fri Jul 16, 2021 1:58 am
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Reword the commentary for Priority #1 to say that it should start out small, around 1 months of expenses, just enough to clear essential payments, and grow over time 3-12 months as other high-priority needs are eliminated. This is more similar to the live page. This seems reasonable. That is fine. ...
by fyre4ce
Fri Jul 16, 2021 12:08 am
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

I took a stab at revising the introduction: User:LadyGeek/Prioritizing investments The latest edits made a minor issue with the current page much worse. Priority #1 is called "Emergency fund" which I pointed out might mislead people to save a lot of cash before putting any money toward cr...
by fyre4ce
Thu Jul 15, 2021 3:59 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Eh, I prefer it with either the numbered list or the table, but not both, just because it seems like there's redundant content. But that's just me. I'm tending to agree, as the after-tax return column makes it clear how the list is prioritized. A table is the best way to do that. - There should be ...
by fyre4ce
Thu Jul 15, 2021 3:44 pm
Forum: Personal Investments
Topic: Pay someone for Tax Loss Harvesting to offset capital gain?
Replies: 31
Views: 1429

Re: Pay someone for Tax Loss Harvesting to offset capital gain?

This sounds like a very high fee for tax loss harvesting or even full investment management. It's just not that hard- you can figure out how to do it yourself. Just find the tax lots that have losses and sell them. Bingo, done.
by fyre4ce
Thu Jul 15, 2021 2:24 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Here is a first attempt at merging the two pages: User:LadyGeek/Prioritizing investments . I made cosmetic changes to the table and layout, and some small changes suggested by retiredjg. Please feel free to revise. IRA contributions are subject to income limits, but Roth IRA contribution limits may...
by fyre4ce
Thu Jul 15, 2021 2:06 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Here is a first attempt at merging the two pages: User:LadyGeek/Prioritizing investments . I made cosmetic changes to the table and layout, and some small changes suggested by retiredjg. Please feel free to revise. Eh, I prefer it with either the numbered list or the table, but not both, just becau...
by fyre4ce
Thu Jul 15, 2021 1:25 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

The more I look at the page, the more I think we should collapse all unmatched retirement contributions into a single line item. I think there's just too many special cases to make a confident recommendation of one type of account over another. Something like https://www.bogleheads.org/w/images/arc...
by fyre4ce
Thu Jul 15, 2021 1:11 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

11. Invest in low-return assets (eg. money markets, Certificates of Deposit (CDs). This just makes no sense to me. I don't know why this needs to even be on the list. It implies that a person should not use money market or CDs unless they have already completed many or most of steps 1 - 10. Some pe...
by fyre4ce
Thu Jul 15, 2021 12:07 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

If we want to merge the two versions, I have a suggestion: add fyre4ce's table , after modifications, as a section below the Funding priority list in LadyGeek's draft . A possible section title could be "Rationale". I like the explanations, but I think it's too busy for the beginning of t...
by fyre4ce
Thu Jul 15, 2021 11:16 am
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Looking at this again, the introduction stresses that this is done for tax efficiency, but I think it's more important that this is done to maximize return. Both are important, but taxes are secondary to your return (what's taxed). I agree, tax efficiency is a red herring here. I suggest something ...
by fyre4ce
Thu Jul 15, 2021 11:10 am
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

That seems a bit more than okwriter's suggestion of minimal changes.... I took a really rough cut at making this layout: https://www.bogleheads.org/wiki/User:Fyre4ce/Prioritizing_investments This is really good and comprehensive work. The only criticism I have is that it is just too much informatio...
by fyre4ce
Thu Jul 15, 2021 11:04 am
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

I think it looks good and seems useful. One comment is that I find the "Approx. After-Tax Return" column confusing. Is this the expected annual return based on how it is invested in some cases? The immediate return is mentioned for the 401k match only, is the tax deduction (where applicab...
by fyre4ce
Thu Jul 15, 2021 10:28 am
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Two comments. First, the drawing is hard to read when using dark mode on my phone. Second, can you provide an explanation for why one would pay down a car loan before adding to taxable? This is one bit I can't wrap my head around based on what's in the wiki. Paying down debt is a zero risk return. ...
by fyre4ce
Wed Jul 14, 2021 11:20 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Here's an idea for combining these ideas and possibly making a better page. I like the idea of a visual, which will especially help more novice readers. Combining this idea with the large-font text, keep the "simplified" visual, and place it in the header section of the page, right-justifi...
by fyre4ce
Wed Jul 14, 2021 4:50 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Quick comment to say that after reading the latest draft page, I'm not a fan of separating into a "simple" and "complex" list. The differences (9 vs. 11 levels) don't seem great enough to justify having two separate lists. The concern over appealing to novice readers is warranted...
by fyre4ce
Wed Jul 14, 2021 12:34 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

That is way too complex for the non-financially literate. And quite honestly, I seriously doubt anyone with that level of financial savviness is going to be that far in credit card debt. Again, the simplified version is for folks looking for simple answers. The complex version is for those looking ...
by fyre4ce
Wed Jul 14, 2021 12:11 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

For over 11 years, since the first version of "Prioritizing investments" , "get the employer match" has been its own step. All three links okwriter provided in this post have "get the employer match" as its own step. Its not at all clear why we would retreat from that ...
by fyre4ce
Tue Jul 13, 2021 10:53 pm
Forum: Personal Investments
Topic: CA muni bond (VCADX) yield
Replies: 7
Views: 982

Re: CA muni bond (VCADX) yield

Thanks for your help. I'm no expert on bonds, so bear with me as I try to unpack this. The ~2% yield you see includes bonds that were purchased years ago when interest rates were higher. As interest rates dropped over the past couple years, the NAV of the fund went up, making each share more expensi...
by fyre4ce
Tue Jul 13, 2021 9:27 pm
Forum: Personal Investments
Topic: CA muni bond (VCADX) yield
Replies: 7
Views: 982

Re: CA muni bond (VCADX) yield

I own about $118k in VCADX (CA intermediate term muni bond fund, the Admiral share class of VCAIX). The SEC yield has been hovering around 0.6-0.7% for months (0.72% as of today), but this does not come close to matching the distributions I've actually received. Actual dividends have been ~$200-210...
by fyre4ce
Tue Jul 13, 2021 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: 1.99% auto loan — early payoff?
Replies: 29
Views: 2052

Re: 1.99% auto loan — early payoff?

The duration is shorter, even if you can pay off either loan. Paying off a four-year auto loan has a two-year duration, while paying off a 15-year mortgage has a seven-year duration. By paying off the mortgage, you take more interest-rate risk, just as if you bought longer-term bonds. (Another part...
by fyre4ce
Tue Jul 13, 2021 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: 1.99% auto loan — early payoff?
Replies: 29
Views: 2052

Re: 1.99% auto loan — early payoff?

The duration is shorter, even if you can pay off either loan. Paying off a four-year auto loan has a two-year duration, while paying off a 15-year mortgage has a seven-year duration. By paying off the mortgage, you take more interest-rate risk, just as if you bought longer-term bonds. (Another part...
by fyre4ce
Tue Jul 13, 2021 12:04 pm
Forum: Personal Investments
Topic: CA muni bond (VCADX) yield
Replies: 7
Views: 982

CA muni bond (VCADX) yield

I own about $118k in VCADX (CA intermediate term muni bond fund, the Admiral share class of VCAIX). The SEC yield has been hovering around 0.6-0.7% for months (0.72% as of today), but this does not come close to matching the distributions I've actually received. Actual dividends have been ~$200-210 ...
by fyre4ce
Mon Jul 12, 2021 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: Interest only mortgage: the conservative choice?
Replies: 126
Views: 14263

Re: Interest only mortgage: the conservative choice?

This is not the right assumption. If LIBOR stayed the same you would be able to refi the ARM into a new ARM with a new “promo” rate, probably at the same rate you had before. Interesting perspective. I hadn't thought I could get an ARM at the same rate, but there's no good reason to think that woul...
by fyre4ce
Mon Jul 12, 2021 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Interest only mortgage: the conservative choice?
Replies: 126
Views: 14263

Re: Interest only mortgage: the conservative choice?

You're not increasing the amount of your money at risk by paying down the mortgage. The mortgage is separate from the value of the asset. Paying down the mortgage earns you a return of 2.5%, no more, no less. Take it or leave it. I am impressed you found a $1.8 million house in the Bay Area. Does i...
by fyre4ce
Mon Jul 12, 2021 9:30 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Is there a benefit to making unmatched contributions to the employer retirement plan even if one can't complete the mega backdoor roth process? Seems like one can defer taxes on earnings and perhaps there are some creditor protections, but the liquidity of the taxable account surely is an advantage...
by fyre4ce
Mon Jul 12, 2021 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Interest only mortgage: the conservative choice?
Replies: 126
Views: 14263

Re: Interest only mortgage: the conservative choice?

There’s a big difference in risk between getting a fixed rate for 30 years, and a fixed rate for 5 and variable after that. There’s less risk than you think. 1. If you are super concerned about rates rising you can get a 10 year fixed IO loan. The average lifespan of a home loan is only 7 years. Pe...
by fyre4ce
Mon Jul 12, 2021 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Interest only mortgage: the conservative choice?
Replies: 126
Views: 14263

Re: Interest only mortgage: the conservative choice?

There’s a big difference in risk between getting a fixed rate for 30 years, and a fixed rate for 5 and variable after that.
by fyre4ce
Mon Jul 12, 2021 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Thinking about inflation for future retirement
Replies: 6
Views: 780

Re: Thinking about inflation for future retirement

Yep - that's how we are looking at it (I think) 1. Decide want we want to live on in retirement For us this was ~$160k - Assuming fully paid off mortgage by the time we retire 2. Make assumptions for tax (20%) and safe withdrawal rate (3.5%) This means we need a pot of $5.5m 3. Build model of what ...
by fyre4ce
Mon Jul 12, 2021 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Why the Difference in Analysis Between Mortgage Payoff and Student Loan Payoff?
Replies: 35
Views: 2140

Re: Why the Difference in Analysis Between Mortgage Payoff and Student Loan Payoff?

Differences I can think of: Interest rates vary depending on the mortgage and student loan type. But mortgages tend to be slightly lower interest than student loans, and tend to be fixed-rate whereas student loans are more commonly variable. Advantage: tends to be the mortgage, but it depends Mortga...
by fyre4ce
Mon Jul 12, 2021 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Why the Difference in Analysis Between Mortgage Payoff and Student Loan Payoff?
Replies: 35
Views: 2140

Re: Why the Difference in Analysis Between Mortgage Payoff and Student Loan Payoff?

The debts aren't the same. 1) Rarely have student loan rates been so low. "General thinking" tends to be based on what's been true for a long time, not what's suddenly true over the past year or so. 2) a mortgage is a secured debt, student loan is unsecured 3) mortgage interest is fully d...
by fyre4ce
Mon Jul 12, 2021 4:38 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

Is there a benefit to making unmatched contributions to the employer retirement plan even if one can't complete the mega backdoor roth process? Seems like one can defer taxes on earnings and perhaps there are some creditor protections, but the liquidity of the taxable account surely is an advantage...
by fyre4ce
Mon Jul 12, 2021 3:53 pm
Forum: Investing - Theory, News & General
Topic: Realizing gains in taxable - question about method
Replies: 42
Views: 3068

Re: Realizing gains in taxable - question about method

If you are trying to raise a certain amount of cash while generating the minimum amount of taxable gains, put each lot into a spreadsheet and add a column that calculates (unrealized gains) / (current market value). Then sort smallest to largest, and work your way down the table until you have the c...
by fyre4ce
Mon Jul 12, 2021 12:41 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

The list below, copied verbatim (other than links) from the current wiki, seems appropriate to keep as is. In particular, the placement of the HSA for reasons already given. Removing any mention of variable annuities (currently mentioned in a sentence added to #9) would be good. The number of peopl...
by fyre4ce
Mon Jul 12, 2021 12:13 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

I was just going off of fyre4ce's suggested wording above. Would these work better? - "Contribute to work-based plan to get employer match" - "Make remaining contributions to work-based plan" Btw, "Employer retirement plan" is the title of this wiki article. I'm fine w...
by fyre4ce
Mon Jul 12, 2021 11:44 am
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Wiki - Prioritizing investments (proposed updates)

^^^ That helped considerably. I was going by my own preferences, but now see a broader perspective. Thanks! A few more ideas on this point: To be clear, the recommendation for a more typical Boglehead isn't to first contribute just the matched amount, then go off and do HSAs/IRAs, then come back. I...
by fyre4ce
Sun Jul 11, 2021 11:41 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Proposal: Prioritizing Investments sidebar (inspired by Finiki).

I think the reasoning for prioritizing the HSA over normal retirement accounts are: Withdrawals are penalty-free after age 65, so it works like an IRA with the special property that withdrawals for medical expenses are tax-free Contributions made through an employer are payroll tax-deductible (anot...
by fyre4ce
Sun Jul 11, 2021 6:40 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Proposal: Prioritizing Investments sidebar (inspired by Finiki).

Other comments: I was never nuts about having "emergency fund" be #1 priority, because there's a wide diversity of opinion on what constitutes a proper emergency fund. Some forum members have no dedicated emergency fund at all, others have 2+ years of expenses in cash. No one would serious...
by fyre4ce
Sun Jul 11, 2021 5:58 pm
Forum: Investing - Theory, News & General
Topic: Wiki - Prioritizing investments (proposed updates)
Replies: 237
Views: 12184

Re: Proposal: Prioritizing Investments sidebar (inspired by Finiki).

I think the reasoning for prioritizing the HSA over normal retirement accounts are: Withdrawals are penalty-free after age 65, so it works like an IRA with the special property that withdrawals for medical expenses are tax-free Contributions made through an employer are payroll tax-deductible (anoth...
by fyre4ce
Sun Jul 11, 2021 12:32 am
Forum: Personal Finance (Not Investing)
Topic: real estate question - Carryover passive loss options on sale of house
Replies: 11
Views: 807

Re: real estate question - Carryover passive loss options on sale of house

Passive loss carryovers are fully deductible against ordinary income. They don’t interact with capital gains in any of the ways you’re describing. You’re thinking they behave more like capital loss carryovers, but that’s incorrect. Passive loss can only offset passive income unless the special allo...
by fyre4ce
Sat Jul 10, 2021 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: real estate question - Carryover passive loss options on sale of house
Replies: 11
Views: 807

Re: real estate question - Carryover passive loss options on sale of house

Passive loss carryovers are fully deductible against ordinary income. They don’t interact with capital gains in any of the ways you’re describing. You’re thinking they behave more like capital loss carryovers, but that’s incorrect.