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Olemiss540

Same thing I did when they predicted (incorrectly) the last 6 recessions. Maintained a comfortable asset allocation and continued to invest every 2 weeks. My goal is to stay employable and hope I can stay greedy while others are fearful.

Olemiss540

We miss you around the office. Hope the new job is treating you well and if you need any help please let me know!

90 days seems like a great timeline. Keep an eye on job postings in the interim at the new location to make sure nothing gets posted that has serious interest from your spouse.

Olemiss540

You have a net worth near 5 million dollars.

Yes. You are most definitely financially OK.

Olemiss540

I believe you are correct that opportunity cost should be involved when making a decision to rent vs buy. The otherside of the coin is that rent in uncontrolled and thus escalates through to retirement when one should typically have their house paid off. You lose the opportunity cost of a few years ...

Olemiss540

I would listen to watty. 15 yr low interest note on the house and yall keep the retirement saving up. Will be on pace for retirement when the youngest goes to college!

Olemiss540

Planning on public schools for the kids? I think yall are behind in retirement savings based on your income, and thus would divert the 529 money into taxable. I would keep the mortgage around 650k or 675k. With a 200k downpayment you are feeling a little shy on taxable funds so maybe after you get t...

Olemiss540

Get the debt kicked out ASAP. That is an emergency! You have a quarter million dollar income and a quarter million in retirement before 40!! You are way behind in boglehead standards but in top 5% probably in both metrics in the US at your age. Dont sweat retirement and keep in mind you will be able...

Olemiss540

Why delay asking this question until after buying a $500k house and signing up for a 520 dollar car payment? I would have dropped the 100k house downpayment, and 520 car payment on top of the student loan payment, continued to live like a college student for 1 year and cleaned the slate to start you...

Olemiss540

Rediculous that salesmen can convince people they would be worse off being wealthy and owning income taxes, all to make the purchaser feel they are getting in on some scheme to evade taxes and not be getting sold some BS product created to pay the salesman an extremely hefty commission and the insur...

Olemiss540

Sounds like gambling to me.

Olemiss540

I would up your contribution rate to max your 2019 401k, even if you have to spend down a bit of your taxable account to do so as you are losing 30% due to your current marginal rate to taxes! Otherwise, I cant give you much for advice since you are crushing it. Keep it up and 10 years from now you ...

Olemiss540

In my experience, she will need to pay quarterly taxes (state and federal) on her k1 income following the safe harbor rules of 110% previous years taxes or 90% of current years taxes I believe. I do not believe she can setup a separate LLC as she will already be part of a partnership corporation res...

Olemiss540

OP, Get your investments in order. You are not AT ALL concerned about the depreciation you are facing with a leveraged M4 but wont invest the money from your spouse's recent windfall due to your personal projection of stock market and bond market turbulence? That money is for 30 YEARS from now. Worr...

Olemiss540

You are LITERALLY in the 1% in terms of positioning yourself to be financially independent at a young age. Yet you are making HORRIBLE financial decisions with regards to finances. Between the two horrible car purchases you have put yourselves in a position to be bailed out by a harassment suit that...

Olemiss540

Is there an option 4: Consider buying 12k reliable transportation with cash to minimize impact to cash reserves? Also consider you could trim 401k contributions if house purchase was impending to restock some reserves. 401k loans for material (depreciating) asset purchases are a frequently used tool...

Olemiss540

With base expenses around 80k/yr, I bought a 1.5million term life insurance taking current assets into account to cover for existing expenses in the medium term. Given the risk of death to increase towards the later part of the term, and knowing our assets will grow substantially in the medium term ...

Olemiss540

I would trade almost anything for an extra 40 minutes a day with the family in a cramped house.

Olemiss540

$2.2K/month is an egregious amount of charity with the amount of debt you have. I'm not sure about that at all. The more important comparison is how much debt the OP has in relation to his/her income. The OP is getting a $55k bonus 'this' month. S/he may get bonuses of this size on a regular basis,...

Olemiss540

$2.2K/month is an egregious amount of charity with the amount of debt you have. I'm not sure about that at all. The more important comparison is how much debt the OP has in relation to his/her income. The OP is getting a $55k bonus 'this' month. S/he may get bonuses of this size on a regular basis,...

Olemiss540

I would add 12k to your Roth IRA (6k ea), pay off your car, pay off your Heloc, then pay off your student loans with the rest. I would try and clear up cashflow as much as possible then make it an absolute goal to refinance the student loans as low as possible and pay them off AS FAST AS HUMANELY PO...

Olemiss540

I would buy whichever i could find in better shape, with lower mileage, and that you could afford to pay cash for.

Olemiss540

6K in savings and 10k in debt? Nope Turn this into 50k in savings and 0 in debt and you should be good to go. I would try to bump retirement savings rates up a bit to the 50k arena but if you want to work to 60+, than I can understand prioritizing a house. Honestly, you seem on track, but a move lik...

Olemiss540

... The reason people here invest in intermediate (or another broad based bond fund) term bond fund is because their EXPECTED return is better than a MM or other taxable savings account. I'd like to point out, for other readers, that the expected return on an investment, confusingly, is not what on...

Olemiss540

... The reason people here invest in intermediate (or another broad based bond fund) term bond fund is because their EXPECTED return is better than a MM or other taxable savings account. I'd like to point out, for other readers, that the expected return on an investment, confusingly, is not what on...

Olemiss540

I am working with about an 80-85% S+P 500 index fund and the remainder in something more fixed. I know normally this is suggested to go into bonds. But since the return on bonds seems so very low, why not just park it in a money market, or savings account? All my investment funds are in non-retirem...

Olemiss540

$50k dollar car? Did you hit the million dollar mark already? I would recommend spending every year checking to ensure you save 33% of gross income, TOTALLY IGNORE your yearly investment balance goals, then spend 33% on whatever you want, and send uncle Sam the last 33%. You are in a transitional pe...

Olemiss540

Racecar and boat. Add up to 10% of my NW. Boat has become pretty essential for keeping the kids entertained while the racecar has become more non-essential as the kids get older! Otherwise, very little money in anything inside of the house. Spend your money on whatever your deem "essential" to your ...

Olemiss540

Which scenario works better for you: 1.) Market stays hot for next two decade and then blows up for a long term recession starting just before retirement 2.) Market tanks for the next five years while you are building your investment balance and then explodes for a two decade bull run Both are equal...

Olemiss540

Why is your rate so high? Are you also paying PMI on top of your high rate due to you low downpayment? How much is your emergency fund in dollars and months of expenses? Are you maxing all available tax advantaged spaces (HSA, 401k Roth IRA)?

Olemiss540

I would set a goal for retirement and work backwards from there. What age are you eligible for your pension and how much do you need in investments at that time? Are you on track or behind that goal? That's a LOTTA money and could supercharge your investments. I would lend towards investing a large ...

Olemiss540

willthrill81 wrote: ↑
Tue Aug 06, 2019 4:31 pm

chevca wrote: ↑
Tue Aug 06, 2019 4:28 pm
You have to be right twice.
A systematized, rules-based approach could at least be backtested and rationally analyzed.

If only it could be forward tested.

Olemiss540

Your savings and spending are approximately equal, so I say you are pretty balanced. Many here feel "nauseous" spending 50k per year, where I find you need to project savings/expenses year to year and make sure your are on pace to hitting your targets. Just check yourself each year and make adjustme...

Olemiss540

You got a nice raise, and, I think your review was balanced. Too many people get reviews that have been inflated. At least you got useful, actionable feedback. Work on the issues identified, and realize you will probably never get a review that will not show some area you need to improve. If you ev...

Olemiss540

Personally, I would buy whatever house that would prevent me from having to take a loan from my in-laws. Would much rather liquidate some of my taxable investments if needed for an emergency.

600k to 650k plus downpayment would be max.

Olemiss540

911 Carrera S for 40kish. Plenty of sports car and the maintenance will be worth not having to pay daily depreciation costs on a new car!

Olemiss540

Consider putting all funds in both accounts into a Vanguard target retirement date fund of your choice and keep it simple. That's what I did!

Olemiss540

Keeping it for 2-3 years, go with used engine and 15k mile warranty. Keeping it for a LONG TIME, spend the 3k and hope for another 100k miles out of the truck.

Olemiss540

Would it not be more tax efficient to hold all of your fixed income inside the IRA and hold all equities in taxable account (aside from a small cash fund) in order to ensure as tax efficient as possible? That would allow for the equities to be redeemed at LTCG rates and the CDs/bonds to be taxed at ...

Olemiss540

At 20 years old, I would not be in a rush to get money set aside for a house. There are plenty of ways to move into a house when the time comes (can rent or utilize some Roth IRA contribution money if necessary), but you gain SOOOO much time for compounding if you get your retirement accounts funded...

Olemiss540

What's your projected salary next year?

Olemiss540

Just focus on maxing 401k and RIRAs and knocking the debt out. Once that's completed come back here and start chunking everything you can into a taxable account towards equities. That will grow extremely fast once you have the debt knocked out and can easily double as a liquid "emergency" fund. The ...

Olemiss540

No idea why you are in a rush to spend the cash sitting in your taxable account? Enjoy liquidity and consider investing the entire taxable account in broad diversified stock indexes, then invest the 401k in sufficient bonds to bring you asset allocation into a 60/40ish realm while you prep for retir...

Olemiss540

This is one reason I sincerely appreciate being fortunate enough to build a balance in my HSA tax free. Much quicker to build it up not paying any income or payroll taxes on contributions and since it is in a tax advantaged account, I dont even notice the money building up.

Olemiss540

OP, Check out the Wiki. https://www.bogleheads.org/wiki/Roth_IRA_as_an_emergency_fund KlangFool Thanks Klang. I sincerely respect the multiple posters on this board that take the time to provide links and helpful documents to posters as I am always posting on my phone! Some of you must have favorit...

Olemiss540

Reach your family out of pocket max? I would have probably given the hospital billing a handful of calls after all of the invoices arrived to work out some cash deals or 0 interest. I would definitely continue funding Roths and putting Roth money in a secure short term bond fund. YOU ARE ABLE TO REM...

Olemiss540

In that age group, you are setting long term goals and are somewhat early in the process. IT TAKES TIME to squirrel away and for compounding to start rolling under it's own power. Keep track of your net worth and your long range goals and check back each month. Every year you will see how quickly it...

Olemiss540

I think you should consider two things: How far away is competent healthcare (for example, in rural areas it may be far) Why is state tax more important than, say, the cost of real estate? For example, why is it more important to save 3-4% (or whatever) in state income tax than save $100,000 on a h...

Olemiss540

I buy cheap cars in cash and then hold basic liability insurance. Saves me a TON compared to most non-bogleheads on registration, taxes, and insurance costs. Many do not factor these costs into their purchase price of near new or new vehicles so they end up with a slanted idea of how much they are s...

Olemiss540

Not in a big rush to buy but would like to have done my homework and be ready when the time comes. Yes, I agree paying cash for everything in life is almost always the best scenario but it's not in the cards right now with two kids in full time daycare, mortgage, savings/retirement accounts and oth...

Olemiss540

And I agree with the poster(s) that say this wasn't "practice" this was an out and out fishing expedition meant to take advantage of your relationship with the goal to reel you in. This is a classic sales prospecting strategy. I have sales training books dating back to at least the mi-1960’s that t...

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