Search found 373 matches

by Outer Marker
Tue Jan 07, 2020 5:40 pm
Forum: Personal Investments
Topic: Debt payoff
Replies: 102
Views: 6041

Re: Debt payoff

So sell the car, and live within your means. A car priced at 30% of your net income means that you'd be paying a similar amount for a car as you do for housing. Doesn't that make you even a *little* bit queasy? You asked for our opinion. You're getting it. If you want to learn to succeed with money...
by Outer Marker
Tue Jan 07, 2020 1:40 am
Forum: Personal Investments
Topic: Holistic Financial Advice Please
Replies: 23
Views: 2343

Re: Holistic Financial Advice Please

If you want REIT exposure, make it at least 10% to be meaningful, and decrease Total Stock by that amount. We probably have too much in real estate given the two houses. And, when it comes to real estate I somehow don't trust other people very much. Will consider getting rid of it. REITs aren’t the...
by Outer Marker
Mon Jan 06, 2020 6:27 am
Forum: Personal Investments
Topic: Holistic Financial Advice Please
Replies: 23
Views: 2343

Re: Holistic Financial Advice Please

My wife allocations are as follows: VTSAX Vanguard Total Stock Market Index 42% VBTLX Vanguard Total Bond Market Index 19% VTMGX Vanguard Developed Markets Index 19% VEMAX Vanguard Emerging Markets Stock Index 9% VTABX Vanguard Total International Bond Index 6% VGSLX Vanguard Real Estate Index 5% a...
by Outer Marker
Sun Jan 05, 2020 10:15 pm
Forum: Personal Investments
Topic: Holistic Financial Advice Please
Replies: 23
Views: 2343

Re: Holistic Financial Advice Please

Thank you! I think I'd take a more aggressive 70/30 split. We don't need much in cash, maybe just $20K operational. We'll hopefully be able to save more cash this year and increase that. Which means that, $260K of the $280K in cash can go to a Fidelity Brokerage Account and get invested in (VTSAX 8...
by Outer Marker
Sun Jan 05, 2020 6:35 pm
Forum: Personal Investments
Topic: Debt payoff
Replies: 102
Views: 6041

Re: Debt payoff

You haven't increased your inflation risk. You've eliminated a debt. The increased equity in real estate can also serve as a hedge against inflation. Outer Marker, Please explain how would that works? A) A 400K house with a 300K mortgage B) A 400K house without a mortgage. Assuming the 400K house b...
by Outer Marker
Sun Jan 05, 2020 6:32 pm
Forum: Personal Investments
Topic: Debt payoff
Replies: 102
Views: 6041

Re: Debt payoff

I am 50+ years old. I have a 300K 3.49% mortgage. My portfolio is averaging 7+% per year. Why would I pre-pay and/or pay off the mortgage? Because there is no other 100% safe, guaranteed investment that pays 3.49%. It eliminates long-term risk, reduces the amount that will need to be drawn on the p...
by Outer Marker
Sun Jan 05, 2020 3:58 pm
Forum: Personal Investments
Topic: Debt payoff
Replies: 102
Views: 6041

Re: Debt payoff

I am 50+ years old. I have a 300K 3.49% mortgage. My portfolio is averaging 7+% per year. Why would I pre-pay and/or pay off the mortgage? Because there is no other 100% safe, guaranteed investment that pays 3.49%. It eliminates long-term risk, reduces the amount that will need to be drawn on the p...
by Outer Marker
Sun Jan 05, 2020 2:06 pm
Forum: Personal Investments
Topic: Debt payoff
Replies: 102
Views: 6041

Re: Debt payoff

I am 50+ years old. I have a 300K 3.49% mortgage. My portfolio is averaging 7+% per year. Why would I pre-pay and/or pay off the mortgage? Because there is no other 100% safe, guaranteed investment that pays 3.49%. It eliminates long-term risk, reduces the amount that will need to be drawn on the p...
by Outer Marker
Sun Jan 05, 2020 1:43 pm
Forum: Personal Investments
Topic: Holistic Financial Advice Please
Replies: 23
Views: 2343

Re: Holistic Financial Advice Please

Since I'm not getting more replies, let me make this a bit more concrete: What would would you recommend for my TSP, for her guideline.com 401K (assume access to Vanguard index funds), for the RothIRA and for the significant cash portion? We won't need the cash in the next one year and even then we...
by Outer Marker
Sun Jan 05, 2020 1:28 pm
Forum: Personal Investments
Topic: [Where should I hold my cash?]
Replies: 5
Views: 354

Re: [Where should I hold my cash?]

I parked mine at Citizensaccess. FDIC insured at 1.85%. . .

https://www.citizensaccess.com/online-s ... rview.html
by Outer Marker
Sun Jan 05, 2020 1:22 pm
Forum: Personal Investments
Topic: Debt payoff
Replies: 102
Views: 6041

Re: Debt payoff

I’m learning. I see why most people see it as mistake. But if my end goal is for her to be student loan debt and car free in 3 years. House is payed off by the age of 50. Leading up for the next 30 years max our 401ks( I am only doing 7%- with a dollar per dollar 7% match. ) and also maxing out my ...
by Outer Marker
Sun Jan 05, 2020 1:10 pm
Forum: Personal Investments
Topic: Can someone in layman’s terms tell my why I should have a HSA?
Replies: 25
Views: 2930

Re: Can someone in layman’s terms tell my why I should have a HSA?

I have been wondering about this same question... I have a high deductable/HSA option. I am currently on a very good "Cadillac Plan" with most of the premium paid for by employer, but not insubstantial premiums paid for by me. I'm in decent heath, but probably higher than average costs going forward...
by Outer Marker
Tue Dec 17, 2019 5:57 am
Forum: Personal Finance (Not Investing)
Topic: Another House payoff question
Replies: 4
Views: 841

Re: Another House payoff question

There's not enough information here to give sound advice. Are you maxing out all 401K and Roth/Backdoor Roth opporutnities? Why is the money sitting idle in a 2% savings account instead of deployed as part of your overall investment plan and asset allocation? If you are on the cusp of getting a usef...
by Outer Marker
Mon Dec 16, 2019 6:22 am
Forum: Personal Investments
Topic: Seeking advise on New Annuity investments
Replies: 10
Views: 722

Re: Seeking advise on New Annuity investments

rhurhurun, welcome to the forum. In general, indexed annuities are great for the person who sells them and not so good for the person to whom they are sold. See Equity-indexed annuity for more. Is there a particular reason you want to use these annuities instead of, for example, some form of a Thre...
by Outer Marker
Sat Dec 14, 2019 11:12 am
Forum: Personal Investments
Topic: Helping Widowed Aunt
Replies: 34
Views: 3460

Re: Helping Widowed Aunt

Nope, she has zero knowledge on investing. She actually was going to take a check and throw it all into a savings account. Out of the entire family i'm the only one that's even investing outside of a work 401k so naturally she came to me for my opinion. I've recommended she speak with an advisor at...
by Outer Marker
Sat Dec 14, 2019 12:35 am
Forum: Personal Investments
Topic: Helping Widowed Aunt
Replies: 34
Views: 3460

Re: Helping Widowed Aunt

So how about this breakout. Her IRA 34% VTSAX - Total Stock Market Index Admiral Shares 33% VTWAX - Total World Stock Index Admiral Shares 33% VBTLX - Total Bon Market Index Admiral Shares For her individual she'd have cap gains on 50% of the current balance, so it's sorta stuck where it is i'd thi...
by Outer Marker
Fri Dec 13, 2019 6:36 am
Forum: Personal Investments
Topic: Helping Widowed Aunt
Replies: 34
Views: 3460

Re: Helping Widowed Aunt

Questions: 1. Want to minimize her taxes, thinking how can i move $$ from the IRA to the individual and let it grow so later she only pays taxes on the capital gains. 2. Should she pay off the car and/or home? all at once now, or just x amount per year to avoid getting nailed with taxes from the IR...
by Outer Marker
Fri Dec 13, 2019 5:55 am
Forum: Personal Investments
Topic: Set it and Forget it?
Replies: 37
Views: 4300

Re: Set it and Forget it?

I would buy a single premium immediate annuity, with inflation adjustment, sufficient to cover your bare minimum monthly expenses. 60/40 or even 50-50 for the remainder of the portfolio. Also recommend that you rebalance right away, rather than putting this off awaiting retirement distributions. Sit...
by Outer Marker
Fri Dec 13, 2019 5:30 am
Forum: Personal Investments
Topic: Pay off car loans or not?
Replies: 33
Views: 2379

Re: Pay off car loans or not?

I would pay off those car loans in a heartbeat. You're losing 1 percent in guaranteed return. You indicate that you have "a lot" saved up for a house. You may need to adjust how much house you buy after paying off the car loans. Personally, I would not buy more house than I could afford with a 20% d...
by Outer Marker
Sun Dec 08, 2019 12:36 pm
Forum: Personal Investments
Topic: Whats the Best Investment in for My Needs?
Replies: 50
Views: 3341

Re: Whats the Best Investment in for My Needs?

If you can't bear to see the equity side bouncing up and down, you may be better off with something like LifeStrategy Income, which has this same thing going on internally but shields it from plain view on your monthly statements. https://investor.vanguard.com/mutual-funds/profile/overview/vasix Hi...
by Outer Marker
Fri Dec 06, 2019 4:46 pm
Forum: Personal Investments
Topic: VTSAX Vs Car Loan vs Mortgage Extra
Replies: 13
Views: 1049

Re: VTSAX Vs Car Loan vs Mortgage Extra

Take a bit of time to read “The Millionaire Next Door” as you’re contemplating the car. That was a wake up call for me. Thanks and while i do that... do feel free to let me know if i am doing somethimg incorrect in buying my lease car back. A car is a consumption item. You make a good dollar. Maybe...
by Outer Marker
Fri Dec 06, 2019 3:54 am
Forum: Personal Investments
Topic: VTSAX Vs Car Loan vs Mortgage Extra
Replies: 13
Views: 1049

Re: VTSAX Vs Car Loan vs Mortgage Extra

Take a bit of time to read “The Millionaire Next Door” as you’re contemplating the car. That was a wake up call for me.
by Outer Marker
Thu Dec 05, 2019 6:17 am
Forum: Personal Investments
Topic: Whats the Best Investment in for My Needs?
Replies: 50
Views: 3341

Re: Whats the Best Investment in for My Needs?

Vanguard's model porfolio allocations may help you better understand: https://personal.vanguard.com/us/insights/saving-investing/model-portfolio-allocations?lang=en As pointed out, the equity side of the portfolio is always going to be high risk and have its ups and downs, but that is balanced out b...
by Outer Marker
Sun Dec 01, 2019 10:07 pm
Forum: Personal Investments
Topic: Vanguard IRA question
Replies: 8
Views: 644

Re: Vanguard IRA question

Let me correct myself. It appears that vanguard no longer charges a fee for trading their ETF's. . . .

https://investor.vanguard.com/investing ... sions/etfs
by Outer Marker
Sun Dec 01, 2019 9:55 pm
Forum: Personal Investments
Topic: Vanguard IRA question
Replies: 8
Views: 644

Re: Vanguard IRA question

Opened up a vanguard IRA and just did a small contribution to understand the basics. Just $50 bucks. Can I not buy any stocks because everything under the buy and sell tabs has like 1000-3000 dollar purchase options. Or am I under the wrong section of the website? Some funds have purchase limits, b...
by Outer Marker
Sun Dec 01, 2019 9:50 pm
Forum: Personal Investments
Topic: Gut check on down payment cash
Replies: 7
Views: 1010

Re: Gut check on down payment cash

... I'm going to throw out CDs because I don't really want to lock up the money... So ... I surprisingly haven't been able to find anything that can beat a Citizens Access 1.85% APR savings account, even when looking at treasury ETFs and the like. Chasing .1 or .2% more for an intermediate fund, fo...
by Outer Marker
Sat Nov 30, 2019 6:50 am
Forum: Personal Investments
Topic: Fee based planner
Replies: 8
Views: 928

Re: Fee based planner

Ditto on the recommendations to post your situation and portfolio for review here. I paid an hourly fee-only planner $3,500 for a review and recommendations some 15 years ago before I found this forum and got geeked up on personal finance and read a bunch of books. He did a solid job, and was needed...
by Outer Marker
Sat Nov 30, 2019 3:05 am
Forum: Personal Investments
Topic: Isn't it a bad idea to have everything in equity I thought?
Replies: 58
Views: 5111

Re: Isn't it a bad idea to have everything in equity I thought?

As to asset allocation, I would take a good look at Vanguard's model portfolio allocations and expected returns. You'll notice that the ride is a lot smoother at 70/30 than 100/0 without giving up a lot of return. https://personal.vanguard.com/us/insights/saving-investing/model-portfolio-allocations...
by Outer Marker
Wed Nov 27, 2019 7:11 am
Forum: Personal Investments
Topic: Retired Mother Came Into Money And Is Scared To Lose Any Of It
Replies: 29
Views: 3466

Re: Retired Mother Came Into Money And Is Scared To Lose Any Of It

.......... She will not collect social security because of her pension, which will only go up slightly per year, which is why I worry......... I've noticed several questions regarding whether OP's mother will get Social Security so I thought it would be helpful to quote the above. Normally a pensio...
by Outer Marker
Wed Nov 27, 2019 7:01 am
Forum: Personal Investments
Topic: several years of bond contributions only?
Replies: 16
Views: 1696

Re: several years of bond contributions only?

one problem with this approach is it may not be enough.. My portfolio isn't **that** big but it's enough to where now that I've been doing this for a bit I see that it's possible my bond contributions could only just maintain the current allocation at best and fall behind at worst if the market con...
by Outer Marker
Wed Nov 27, 2019 6:25 am
Forum: Personal Investments
Topic: A little discouraged with earnings, is it really this slow?
Replies: 96
Views: 16048

Re: "Dream Car in 2020" ?

And, if the OP is buying a 1997 rocket, it is fully depreciated and possibly on the upswing. A collector's car that sells for more than it originally sold for in 1997 is not fully depreciated if OP is planning on driving the car. Just the opposite. It has a higher depreciation cost than the car had...
by Outer Marker
Wed Nov 27, 2019 12:16 am
Forum: Personal Investments
Topic: A little discouraged with earnings, is it really this slow?
Replies: 96
Views: 16048

Re: "Dream Car in 2020" ?

I've been having the urge to save for my dream car in 2020 and tackle that goal before I invest into taxable for anything else. achen2991: In my opinion, you may be making a big mistake. An automobile is used to get from point A to point B in reasonable comfort. Almost any car will do this. Below i...
by Outer Marker
Tue Nov 26, 2019 11:05 pm
Forum: Personal Investments
Topic: several years of bond contributions only?
Replies: 16
Views: 1696

Re: several years of bond contributions only?

Note 100/0 and 80/20 aren't different enough to make much difference. I'd respectfully disagree that there is an appreciable difference between 100/0 and 80/20: https://personal.vanguard.com/us/insights/saving-investing/model-portfolio-allocations I like the 70/30 ride in a growth portfolio even be...
by Outer Marker
Tue Nov 26, 2019 5:35 am
Forum: Personal Investments
Topic: Retired Mother Came Into Money And Is Scared To Lose Any Of It
Replies: 29
Views: 3466

Re: Retired Mother Came Into Money And Is Scared To Lose Any Of It

I’d split the money half between a target retirement income fund and half in an online savings account. My 90 year old mom was similarity risk adverse. It’s a lot easier for her to have the ups and downs of the market “hidden” within a diverse income fund than for her to see the individual results o...
by Outer Marker
Tue Nov 26, 2019 5:23 am
Forum: Personal Investments
Topic: Challenge Conventional Thought: Why NOT pay off a mortgage with 20-25 years before retirement?
Replies: 143
Views: 10289

Re: Challenge Conventional Thought: Why NOT pay off a mortgage with 20-25 years before retirement?

Just wanted to share with the group that based on all of your collective advice and experience, we've decided NOT to pay down the mortgage. Rather, we will continue to invest and set our AA at 80/20 (compromise b/w my wife's preference for 70/30 and my preference which was 90/10 stock/bonds). Since...
by Outer Marker
Sun Nov 24, 2019 9:57 am
Forum: Personal Investments
Topic: Help with AA please
Replies: 11
Views: 982

Re: Help with AA please

1. plan is keep 80/20 (1.8m in investable assets). If reach 2m, go 75/25 and glide path to 60-65/35-40 if get to 2.5-3m range which would be 25-30x expenses. Does this plan make sense? 2. 80/20 not counting house equity seems aggressive in isolation but stocks only make up 45% of NW which seems con...
by Outer Marker
Sat Nov 23, 2019 6:02 pm
Forum: Personal Investments
Topic: 15% Bond Allocation - 45% TSP G Fund, 45% CA Long-Term Muni, 10% Corp.
Replies: 14
Views: 1027

Re: 15% Bond Allocation - 45% TSP G Fund, 45% CA Long-Term Muni, 10% Corp.

All G Fund. I'm jealous. :sharebeer I'm still having a problem wrapping my head around the difference between the G and F fund. I also have the TSP and am looking to put my bond allocation within my TSP. Why do you recommend all G fund versus splitting it with the F? In reading other threads, some ...
by Outer Marker
Sat Nov 23, 2019 1:32 pm
Forum: Personal Investments
Topic: 15% Bond Allocation - 45% TSP G Fund, 45% CA Long-Term Muni, 10% Corp.
Replies: 14
Views: 1027

Re: 15% Bond Allocation - 45% TSP G Fund, 45% CA Long-Term Muni, 10% Corp.

What role do you want bonds to serve in your portfolio? I view them as "ballast" to help smooth out the bumps in the road, and potentially provide a rebalancing opportunity and "bonus" in a down market. The G fund provides absolute preservation of principle and a higher rate than any risk-free oppor...
by Outer Marker
Wed Nov 20, 2019 8:12 pm
Forum: Personal Investments
Topic: High ER 401K fund choice
Replies: 13
Views: 739

Re: High ER 401K fund choice

So, your question inspired me to practice what I preach. Change is not that difficult to accomplish if you are polite and rational. From today's email exchange with HR. (Granted, I work for great and employee-focused organization) -- "From: Director Human Resources, Big Corp Date: November __ To: "O...
by Outer Marker
Tue Nov 19, 2019 10:28 pm
Forum: Personal Investments
Topic: High ER 401K fund choice
Replies: 13
Views: 739

Re: High ER 401K fund choice

I know this can be a delicate matter - especially as a new employee - but it may be worth your while to lobby for changes to your 401K to make it at least marginally acceptable. At minimum a low cost S&P 500 Index and Total Bond Index. Your employer has a fiduciary duty to the plan participants and ...
by Outer Marker
Tue Nov 19, 2019 12:07 am
Forum: Personal Investments
Topic: Thinking of switching IRAs to Fidelity for Access to RZV
Replies: 6
Views: 507

Re: Thinking of switching IRAs to Fidelity for Access to RZV

It's not deep value like RZV, but have you considered Vanguard's S&P 600 Value ETF VIOV? https://investor.vanguard.com/etf/profile/VIOV Yep. Looked at it and considered it. The "deep value" is really what I'm after. If its not true small cap value, I don't think its worth the complexity of splittin...
by Outer Marker
Tue Nov 19, 2019 12:01 am
Forum: Personal Investments
Topic: Thinking of switching IRAs to Fidelity for Access to RZV
Replies: 6
Views: 507

Re: Thinking of switching IRAs to Fidelity for Access to RZV

Hmmm. This is fishy. When I searched for RZV through the path: Investing » Investment products » Other companies' funds & ETFs This is what came up: "Invesco S&P SmallCap 600® Pure Value ETF (RZV) This fund can be transferred to your Vanguard brokerage account but isn't available for purchase throug...
by Outer Marker
Mon Nov 18, 2019 10:49 pm
Forum: Personal Investments
Topic: Thinking of switching IRAs to Fidelity for Access to RZV
Replies: 6
Views: 507

Thinking of switching IRAs to Fidelity for Access to RZV

My desired AA includes a 10 percent allocation to small cap value, as well as a 10 percent allocation to REITS. Problem is that the Vanguard Small-Cap Value Index Fund (VISVX) I hold in my Vanguard IRA's is not really a true small cap value fund. Its more like a small/mid cap blend, and has a lot of...
by Outer Marker
Mon Nov 18, 2019 6:59 pm
Forum: Personal Investments
Topic: Do Inherited IRA's Preclude Backdoor Roth?
Replies: 9
Views: 643

Re: Do Inherited IRA's Preclude Backdoor Roth?

Thank you all for the replies. This sounds like good news. The inherited traditional IRA was from my aunt, not a spouse, so it sounds like I am in the clear. There were no non-deductable contributions to this IRA. The Vanguard registry does indicate "My Name - Inherited IRA" and the RMD's are report...
by Outer Marker
Mon Nov 18, 2019 10:20 am
Forum: Personal Investments
Topic: Not retired at 71 [need SEP advice] update!
Replies: 22
Views: 2332

Re: Not retired at 71 [need SEP advice]

One question bothering me, to get into these type investments at this high market level am I making a mistake not waiting for a dip or correction? No one knows. If you wait for a correction, you might miss out on another 5 years of gains, or you might be able to buy in at a bargain. Holding a diver...
by Outer Marker
Mon Nov 18, 2019 9:25 am
Forum: Personal Investments
Topic: Do Inherited IRA's Preclude Backdoor Roth?
Replies: 9
Views: 643

Do Inherited IRA's Preclude Backdoor Roth?

I had rolled my own IRA's into a 401K and had been doing backdoor Roth contributions for several years. I now have an Inherited Roth approx $235,000 and Inherited Traditional approx. $90,000 from which I am required to take RMD. Does the existance of the inherited accounts preclude me from doing Rot...
by Outer Marker
Mon Nov 18, 2019 8:21 am
Forum: Personal Investments
Topic: Not retired at 71 [need SEP advice] update!
Replies: 22
Views: 2332

Re: Not retired at 71 [need SEP advice]

I don't want to retire it's that simple. To do what, play golf more than I do now, I intend to stay active not watch TV during the day. Not paying off that small mortgage, cash is King I have no mortgages on my two other homes I'm about to build a commercial building the loan is in place for 700K, ...
by Outer Marker
Sun Nov 17, 2019 8:53 pm
Forum: Personal Investments
Topic: Separate $ in...retirement??
Replies: 38
Views: 3622

Re: Separate $ in...retirement??

For 20 years of marriage my wife and I have had a 'his,' 'hers,' and 'ours,' account. It's worked out well: we've been fortunate to have good jobs over most of our lifetime, and are on the cusp of retirement. *** However, my wife is now suggesting we simply each control and spend from our retiremen...
by Outer Marker
Sun Nov 17, 2019 8:34 pm
Forum: Personal Investments
Topic: Not retired at 71 [need SEP advice] update!
Replies: 22
Views: 2332

Re: Not retired at 71 [need SEP advice]

So at my age I suppose a fund with a target date of 2025 is what I should start looking at. That's a very reasonable place to start. And pay off the mortgage ASAP out of current income. I would also highly recommend you spend a weekend reading "The Investor's Manifesto" by Bill Bernstein. Its an ea...