Moral hazard: The rare people that want high limits must feel they’re at higher risk, whereas the hoi polloi buying a $1M limit do not.
Concentration risk: It’s easier to make steady profits by relying on the law of large numbers when you don’t make outsize bets on a small self-selected portion of the population.
Put the two together and it makes perfect sense to me that an insurance company would charge exponentially more for larger policy limits.
Search found 754 matches
- Fri Oct 13, 2023 8:58 pm
- Forum: Personal Finance (Not Investing)
- Topic: Do umbrella rates typically increase MORE, by percentage, than a requested increase in liability coverage?
- Replies: 11
- Views: 1400
- Fri Oct 13, 2023 7:50 pm
- Forum: Investing - Theory, News & General
- Topic: there ain't as much upside potential with annuities- but current pay outs aren't bad
- Replies: 8
- Views: 1582
Re: there ain't as much upside potential with annuities- but current pay outs aren't bad
You piqued my curiosity, so I ran it for joint life (41M/40F) with 3% COLA in my state. The first year payout was 3.5%. I think I can do better on my own, especially with TIPS yielding so much right now. Retaining the longevity risk at a 3.5% withdrawal rate honestly doesn’t scare me much more than the counterparty risk that comes with an annuity.
- Thu Oct 12, 2023 11:09 pm
- Forum: Investing - Theory, News & General
- Topic: What ratio are you stocks/bonds and how old are you?
- Replies: 449
- Views: 95529
Re: What ratio are you stocks/bonds and how old are you?
I wasn’t old enough to lose much money personally in the great financial crisis, but I was scarred by reading thousands of posts from devastated bogleheads on this board during those years. Many retirements were delayed or derailed. Many posters swore they would never again skimp on bonds if the market ever saw fit to make them whole again. Young posters with 80/20 asset allocations were given firm warnings not to overestimate their risk tolerance and to consider the efficient frontier and potential for rebalancing bonus. An AA of 100/0 or even 90/10 was anathema. It’s been a long, long bull market since then and all the visceral fear emotions have given way to exuberant greed in the “median” post around here. I am not immune—I feel more gr...
- Sun Dec 18, 2022 3:40 pm
- Forum: Personal Investments
- Topic: Immediate annuity at age 44?___High interest rates right now!
- Replies: 20
- Views: 3145
Re: Immediate annuity at age 44?___High interest rates right now!
That amount may cover your bills today, but what will your expenses be 20 years from now when 3% inflation has doubled prices?
If you use your whole nest egg to buy an annuity, how will you pay for irregular expenses like replacing vehicles or putting on a new roof?
It might make sense for you to buy an annuity, but it should be part of a larger plan instead of THE plan.
If you use your whole nest egg to buy an annuity, how will you pay for irregular expenses like replacing vehicles or putting on a new roof?
It might make sense for you to buy an annuity, but it should be part of a larger plan instead of THE plan.
- Fri Mar 04, 2022 8:00 pm
- Forum: Personal Investments
- Topic: Fidelity Investments Cold Calling Me
- Replies: 74
- Views: 9104
Re: Fidelity Investments Cold Calling Me
I don’t understand the outrage over your custodian inviting you to have a meeting with a planner. You apparently also said yes even though you later canceled. Every well run business tries to engage their customers and ask for more business (albeit not always by phone). And smart people can disagree on asset allocation, but it’s not like they were pushing variable annuities or something predatory.
- Sun Dec 12, 2021 10:23 pm
- Forum: Personal Investments
- Topic: Should I capitulate to selling International?
- Replies: 322
- Views: 24129
Re: Should I capitulate to selling International?
I’ve had the same thoughts and feelings as the OP seeing the sustained underperformance of ex-US funds, but I force myself to stay the course and hope my future self will thank me for accumulating so many cheap ex-US shares over the last decade. Make no mistake that if ex-US had dramatically outperformed US over the last decade bogleheads would be trumpeting the obvious superiority of ex-US based on youthful demographics, emerging middle class, etc. and encouraging you to increase your EM tilt to take advantage of the inevitable economic triumph of China over the US. I know this is true because I read plenty of posts saying exactly those things in the mid 2000’s. Much like I read many oaths never to hold less than 30% bonds during the Great...
- Sat Apr 24, 2021 4:09 pm
- Forum: Personal Finance (Not Investing)
- Topic: Selling townhouse - to stage or not?
- Replies: 51
- Views: 4841
Re: Selling townhouse - to stage or not?
I hate paying unnecessary fees. When I sold my last house in 2014 I paid $800 to have a realtor insert the listing on the MLS and managed the photography, showings, and offers myself. It sold in a weekend for $30k over asking and no contingencies.
BUT I paid for the best photography I could find and 100% would have staged it if it had been empty. In my fee-hating opinion, those costs are NECESSARY because pictures online are how houses are sold these days.
And don’t forget to spruce up your landscaping and change out any glaringly outdated light fixtures. That stuff is super cheap, and can help spark a bidding war among the HGTV-watching masses in this market.
BUT I paid for the best photography I could find and 100% would have staged it if it had been empty. In my fee-hating opinion, those costs are NECESSARY because pictures online are how houses are sold these days.
And don’t forget to spruce up your landscaping and change out any glaringly outdated light fixtures. That stuff is super cheap, and can help spark a bidding war among the HGTV-watching masses in this market.
- Sat Apr 10, 2021 8:14 am
- Forum: Personal Finance (Not Investing)
- Topic: Remodel during housing hysteria?
- Replies: 54
- Views: 4633
Re: Remodel during housing hysteria?
To me it sounds like you’ll be paying a $200k premium (probably $300k since you’ll need somewhere to live for a year and remodel costs will inevitably exceed the estimate) to stay and remodel versus buying another house you like with a ~$500k mortgage and your current equity. I wouldn’t do it, but maybe it’s worth it to you since you love the lot and the neighbors. Just don’t kid yourself that your house will be worth anywhere near what you put into it. You’re lighting $300k on fire to buy yourself a particular outcome; it’s a luxury purchase.
- Mon Feb 22, 2021 9:32 pm
- Forum: Personal Consumer Issues
- Topic: bird's eye camera on car worth it?
- Replies: 27
- Views: 4159
Re: bird's eye camera on car worth it?
It’s a great feature on any vehicle, but you’ll especially love it when trying to maneuver a hulking minivan in and out of tight spaces.
- Mon Jan 25, 2021 9:06 pm
- Forum: Personal Investments
- Topic: What do People on this Forum Expect for Return (Basing on book, Serious Money)
- Replies: 45
- Views: 4914
Re: What do People on this Forum Expect for Return (Basing on book, Serious Money)
My plan is based on 4% real. More would be a bonus. Slightly less would be fine. Less than 3% real will require working longer.
- Sat Jan 02, 2021 8:30 am
- Forum: Personal Consumer Issues
- Topic: Need Help: Update: Bought a 2021 Toyota 4Runner TRD Pro lo New Hyundai Palisades: Is factory list price too high to pay?
- Replies: 57
- Views: 4282
Re: Need Help: New Hyundai Palisades: Is factory list price too high to pay?
I just wanted to chime in and say I’m very impressed with that vehicle and think it’s well worth the MSRP. When car shopping last year, I drove the redesigned Highlander and was very impressed. My very next stop was to drive the Telluride and I only had to drive about 2 minutes before determining it was the superior vehicle. I drove the Palisade a couple days later and it drove just as well as the Telluride with an arguably nicer interior.
- Thu Dec 24, 2020 5:54 pm
- Forum: Personal Investments
- Topic: Got a promotion & need a portfolio review
- Replies: 5
- Views: 1018
Re: Got a promotion & need a portfolio review
But wouldn’t the SIMPLE IRA also need to be converted and contributions stopped for that to work?Lou354 wrote: ↑Thu Dec 24, 2020 4:48 pm Consider converting the entire balance in her tIRA to a Roth IRA in 2020. Sure, there will be a one-time tax hit, but it could be worth it in order to be able to do backdoor Roth going forward without the hassle of dealing with the pro-rata rule. Another reason 2020 would be a good time to do it is because your taxable income in 2020 is lower than it will be in future years.
- Thu Dec 24, 2020 2:27 pm
- Forum: Personal Investments
- Topic: Got a promotion & need a portfolio review
- Replies: 5
- Views: 1018
Got a promotion & need a portfolio review
My spouse and I have never been high earners, but I received a couple promotions in 2020 and my income nearly doubled. Household gross income in 2021 should be approximately $255k. I’m in sales, however, so my income is extremely variable and my job is really only as secure as my next sale. We’ve never gotten a formal review on this site, and now really need for guidance with the recent change in income. Thanks in advance! ---------- Emergency funds: Yes, 12 months of lean budget Debt: Mortgage of $271k refinanced at 2.75% with 29.5/30 years now remaining. Home value is approximately $450k. Tax Filing Status: Married filing jointly Tax Rate: 24% Federal, 7.85% State State of Residence: MN Age: 33/32 Desired Asset allocation: 100% stocks / 0...
- Sat Oct 31, 2020 9:57 am
- Forum: Investing - Theory, News & General
- Topic: Where is the money going
- Replies: 17
- Views: 3675
Re: Where is the money going
My understanding is that the last transaction sets the share price. If I put in a bid for one single share of AAPL at $1, and it mysteriously gets executed, then the price of AAPL will (very briefly) reflect a $1 share price and every shareholder that will technically be poorer. In reality, there are many reasons why this wouldn’t happen, but I believe it technically could.
Put more succinctly, it’s as possible for prices to rise or fall on light volume as heavy volume.
Put more succinctly, it’s as possible for prices to rise or fall on light volume as heavy volume.
- Mon Oct 26, 2020 5:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: If I can increase my auto liability limits is an umbrella policy still necessary?
- Replies: 25
- Views: 2011
Re: If I can increase my auto liability limits is an umbrella policy still necessary?
Everybody else already chimed in with my first thought about auto not being your only insurable exposure. I have $1M/1M on on my auto, but still carry umbrella because my home and boat limits are lower and it's super cheap. Odds are I won't get sued. If I do get sued, odds it'll be because of an auto accident, and I'm grateful to have $2m of liability coverage for that remote possibility. It's much less probable I'll get sued due to an accident involving my home or boat, but ~$1.3M coverage is there for that. And don't forget that some (most?) umbrella policies can drop down and serve as primary insurance in extremely rare cases where no other primary insurance applies. It's unlikely you'll EVER make a claim on your umbrella policy whether ...
- Sat Aug 01, 2020 9:16 am
- Forum: Personal Consumer Issues
- Topic: Does a couple really "need" an SUV?
- Replies: 225
- Views: 16272
Re: Does a couple really "need" an SUV?
I would pay you good money to post this topic on the Mr Money Mustache forum!
- Mon Apr 27, 2020 7:50 pm
- Forum: Personal Consumer Issues
- Topic: Toyota vs. Kia Quality & Longevity
- Replies: 82
- Views: 9765
Re: Toyota vs. Kia Quality & Longevity
Thanks for your thoughts everyone! I think I’ll probably take the “risk” and get what I like. Now I just need to wait until I have somewhere to drive again before pulling the trigger!
- Sun Apr 26, 2020 4:04 pm
- Forum: Personal Consumer Issues
- Topic: Toyota vs. Kia Quality & Longevity
- Replies: 82
- Views: 9765
Toyota vs. Kia Quality & Longevity
A decade ago, Kia quality was nowhere near Toyota. It was obvious to me that they had sought out the lowest-cost suppliers for each component without paying much attention to quality or longevity. The paint scratched if you looked at it wrong, and the steel rusted quickly where I live in the salty upper midwest.
I am now in the market for a 3 row crossover and like the Telluride more than the Highlander, but I plan to keep the vehicle for 10+ years. I hear good things about Kia’s quality, but I was curious if any Bogleheads have insight into whether they still cheap out on supply chain vs. Toyota in 2020. For all I know Toyota could be cost-cutting more than Kia these days!
Thanks in advance!
I am now in the market for a 3 row crossover and like the Telluride more than the Highlander, but I plan to keep the vehicle for 10+ years. I hear good things about Kia’s quality, but I was curious if any Bogleheads have insight into whether they still cheap out on supply chain vs. Toyota in 2020. For all I know Toyota could be cost-cutting more than Kia these days!
Thanks in advance!
- Thu Apr 09, 2020 4:48 pm
- Forum: Personal Investments
- Topic: Ridiculous condo fee vs. rent and value.
- Replies: 3
- Views: 601
Re: Ridiculous condo fee vs. rent and value.
People buy based off monthly payment. I high HOA neccesarily limits the selling price people can afford.
- Mon Mar 23, 2020 9:22 pm
- Forum: Investing - Theory, News & General
- Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
- Replies: 14343
- Views: 1970353
Re: HEDGEFUNDIE's excellent adventure Part II: The next journey
I’m glad to see this downturn shaking out the weak, and even more glad to see HEDGEFUNDIE staying the course and keeping spectators such as myself updated. Now if he does make ten figures off this strategy, he will have earned it.
- Sun Mar 22, 2020 1:38 pm
- Forum: Investing - Theory, News & General
- Topic: Are we better off now than Dec 2018?
- Replies: 301
- Views: 30466
Re: Are we better off now than Dec 2018?
It appears certain that the pandemic numbers (confirmed cases & deaths) will get much worse in the coming weeks. I have no certainty whatsoever in how the market will react to that.
I find it fascinating that today’s doomsdayers are claiming to be more scared now than in 2008. I had far more concerns the financial system was doomed in the spring of 2009 than I do now. Those were VERY uncertain times, and we survived them. I personally expect this time will be no different, but appreciate your warning and your contribution to market price discovery.
I find it fascinating that today’s doomsdayers are claiming to be more scared now than in 2008. I had far more concerns the financial system was doomed in the spring of 2009 than I do now. Those were VERY uncertain times, and we survived them. I personally expect this time will be no different, but appreciate your warning and your contribution to market price discovery.
- Sat Feb 29, 2020 2:16 pm
- Forum: Personal Investments
- Topic: Sell now and start buying back in 3 months
- Replies: 80
- Views: 8344
Re: Sell now and start buying back in 3 months
It sounds to me like your asset allocation is much too aggressive for your risk tolerance. It’s a shame you’ve only realized this after a market decline, but that is common due to the way fear and greed cloud judgment.
- Sat Feb 29, 2020 2:13 pm
- Forum: Personal Finance (Not Investing)
- Topic: Need advice on general business insurance for small business
- Replies: 6
- Views: 481
Re: Need advice on general business insurance for small business
She should speak to an independent insurance agent that works with many carriers. There is no one-size-fits-all for commercial insurance, or even personal insurance for that matter.
Obviously don’t let anyone sell her cash value life insurance, cancer insurance, etc.
Obviously don’t let anyone sell her cash value life insurance, cancer insurance, etc.
- Sun Jan 05, 2020 9:54 am
- Forum: Personal Consumer Issues
- Topic: Live in Miami. Should I join a boat club?
- Replies: 29
- Views: 3564
Re: Live in Miami. Should I join a boat club?
I’m not near Miami, but I’ve also considered joining a boat club.
Pros:
-Zero hassle. Just hop on the waiting boat when your time starts, and hop off when you’re done. Someone else cleans, fuels, and does maintenance.
-Better quality boats than are available for rent
-Boats generally <3 years old
-Can try several types of boats vs buying one
-Lower up-front cost than buying a boat; no exit cost
Cons:
-Expensive in the mid/long-term. You’re paying a premium for all the above.
-Still responsible for damage (you’ll like pay for a new prop at some point)
-You will inevitably not be able to reserve a boat every time you want one. On those days, you’ll question the value of the club model.
Pros:
-Zero hassle. Just hop on the waiting boat when your time starts, and hop off when you’re done. Someone else cleans, fuels, and does maintenance.
-Better quality boats than are available for rent
-Boats generally <3 years old
-Can try several types of boats vs buying one
-Lower up-front cost than buying a boat; no exit cost
Cons:
-Expensive in the mid/long-term. You’re paying a premium for all the above.
-Still responsible for damage (you’ll like pay for a new prop at some point)
-You will inevitably not be able to reserve a boat every time you want one. On those days, you’ll question the value of the club model.
- Fri Oct 04, 2019 8:11 am
- Forum: Personal Consumer Issues
- Topic: Do I need Uninsured Motorist Bodily Injury if I have health insurance?
- Replies: 54
- Views: 4615
Re: Do I need Uninsured Motorist Bodily Injury if I have health insurance?
I am surprised at how much misinformation has been posted in this thread. The biggest issue is that generalizations don't work with insurance. Some umbrella policies do include UM/UIM coverage; most do not. You can't say for certain what policy someone on the internet bought. Moreover, state laws vary widely, both in terms of what coverages are required and how a claim is handled. Permanent life insurance is a financial cancer, but perhaps we've gone too far in demonizing insurance agents. A good P&C insurance agent can add value to your financial planning by helping you understand your auto, home, and umbrella policies and how they interact. Questions being asked on this thread such as, "If XYZ happens, does coverage XYZ pay for i...
- Tue Aug 27, 2019 2:01 pm
- Forum: Personal Consumer Issues
- Topic: Do I need Uninsured Motorist Bodily Injury if I have health insurance?
- Replies: 54
- Views: 4615
Re: Do I need Uninsured Motorist Bodily Injury if I have health insurance?
Are you certain your umbrella policy provides coverage in the event you or your passengers are injured by an uninsured or underinsured motorist? The vast majority of umbrella policies do not.
- Sun Aug 04, 2019 10:42 pm
- Forum: Personal Finance (Not Investing)
- Topic: secured credit card
- Replies: 13
- Views: 1144
Re: secured credit card
Have you tried having him apply for one or more regular cards? I would start there and only look at secured options if all his applications get rejected.
- Fri Aug 02, 2019 9:15 pm
- Forum: Personal Finance (Not Investing)
- Topic: Is a 300/500 car policy truly enough?
- Replies: 54
- Views: 5951
Re: Is a 300/500 car policy truly enough?
Insurance prices are very different for each person, but I’ll share that it only cost me and extra $150/yr to increase my primary from 100/300 to $1M/$1M. Then a $1M umbrella was an extra $95/yr.
I bought the high primary limits mostly for the UM/UIM protection which the umbrella doesn’t provide. Great peace of mind.
I bought the high primary limits mostly for the UM/UIM protection which the umbrella doesn’t provide. Great peace of mind.
- Fri Aug 02, 2019 7:01 am
- Forum: Personal Finance (Not Investing)
- Topic: Buying $20k worth of mortgage points.
- Replies: 47
- Views: 5312
Re: Buying $20k worth of mortgage points.
+1JoeRetire wrote: ↑Fri Aug 02, 2019 6:56 amYou are asking if it's a smart move to not do what your parents are requiring you to do?degrom7 wrote: ↑Thu Aug 01, 2019 11:24 pmMy parents are gifting us $20k and insist that we add it to our 20% down payment of $96k.
So it seems buying $20k worth of points will help me reduce my monthly mortgage and help me save $64,000 over a 30 year period instead of adding it to my down payment. Is this a smart move?
That's not a smart move. Just do what you are being required to do and say "Thank You".
It doesn’t matter what option maximizes 30 year savings. It only matters what your parents want you to do with their gift.
- Wed Jul 31, 2019 9:22 am
- Forum: Personal Finance (Not Investing)
- Topic: 21 and starting career, need advice
- Replies: 15
- Views: 2107
Re: 21 and starting career, need advice
You’re doing amazing! Got a great job with no debt and a lot of savings. Government work is a marathon not a sprint, so try to live in the present and enjoy life a little.
Get your financial plan on auto-pilot ASAP so you can focus on new goals:
-Date someone that makes me happy
-Make friends with a boat owner
-Try a new food each month
-Visit a new country
I’m not saying don’t save. I’m saying let your saving be boring and automatic, and then focus on more interesting things.
Get your financial plan on auto-pilot ASAP so you can focus on new goals:
-Date someone that makes me happy
-Make friends with a boat owner
-Try a new food each month
-Visit a new country
I’m not saying don’t save. I’m saying let your saving be boring and automatic, and then focus on more interesting things.
- Sat Jun 01, 2019 7:29 am
- Forum: Personal Consumer Issues
- Topic: Painting Cabinets - Is it that hard ?
- Replies: 38
- Views: 3789
Re: Painting Cabinets - Is it that hard ?
It depends how long you want the paint to last. Lots of prep with sanding is definitely the right way to do it. Her cabinets will look great on day #1 even if she doesn’t prep, but day #700 she’ll be ready to paint or replace them again, whereas the professionally done cabinets will look great.
Also, it’s one of those projects that just takes forever. Halfway through, she’ll be thinking “Why on earth didn’t I just pay the $2,000?!” But then she’ll eventually finish and have the smug satisfaction of a highly visible DIY project and her money still in the bank.
Also, it’s one of those projects that just takes forever. Halfway through, she’ll be thinking “Why on earth didn’t I just pay the $2,000?!” But then she’ll eventually finish and have the smug satisfaction of a highly visible DIY project and her money still in the bank.
- Sun May 26, 2019 9:27 am
- Forum: Investing - Theory, News & General
- Topic: Is the housing market starting to collapse?
- Replies: 122
- Views: 15494
Re: Is the housing market starting to collapse?
We can talk about nominal home prices all day long, but the market is driven by mortgage payment amounts, and those are extremely low due to low interest rates. IF interest rates rise anytime soon (I personally doubt it), I assume many homes on the market today will become unaffordable to the average buyer. Even then, I would just expect home price stagnation and a continuation of low inventory. I simply don’t see the lax lending standards I would associate with a pending collapse. /crystal ball reading
- Sun May 26, 2019 8:18 am
- Forum: Personal Consumer Issues
- Topic: Where to buy products at TRUE wholesale prices?
- Replies: 51
- Views: 4930
Re: Where to buy products at TRUE wholesale prices?
A few people have mentioned alibaba. Please keep in mind those prices on the website don’t include freight or selling expenses. Buying 10,000 coffee mugs for 12 cents each is cheap, but you might have to pay an extra $4 each to transport them across the ocean, truck them from the dock to your warehouse, store them, and retail them in an online or physical storefront. Retailing is expensive—that’s why all the small retail in America is going belly up.
OP, your question shows a serious lack of understanding of how modern retail works. I recommend you get some coffee with a friendly local retail store owner and make sure you understand the lay of the land before you put any money at risk.
OP, your question shows a serious lack of understanding of how modern retail works. I recommend you get some coffee with a friendly local retail store owner and make sure you understand the lay of the land before you put any money at risk.
- Sun May 26, 2019 7:25 am
- Forum: Personal Investments
- Topic: Put more money in the market or buy real estate in DC area?
- Replies: 26
- Views: 2889
Re: Put more money in the market or buy real estate in DC area?
What is your current exposure to the stock market vs DC real estate? Hard to say how best to diversify without knowing your current allocation.
- Wed May 01, 2019 11:15 am
- Forum: Investing - Theory, News & General
- Topic: Do I live in a HCOL area?
- Replies: 56
- Views: 5246
Re: Do I live in a HCOL area?
+1 This seems about right.quantAndHold wrote: ↑Wed May 01, 2019 11:04 am I would suggest the following:
The St Louis Fed, which keeps this kind of data, says the median home price in the country is currently $307k.
Some company that Kiplinger uses tracks median home prices in 100 cities. The median price in the median city on that list is $190k (Lancaster, PA).
I would suggest that if the median home price in your location is less than $190k, you’re in a LCOL area. If it’s between $190k and $307k (37 more cities on that Kiplinger list), you’re in a MCOL area. Above that are 14 HCOL cities, with median home prices of $335-$664k, and 2 VCOL outliers at the very top ($800k+).
- Sun Apr 28, 2019 10:40 am
- Forum: Personal Consumer Issues
- Topic: Are these 50% off Netflix cards a scam ?
- Replies: 8
- Views: 2909
Re: Are these 50% off Netflix cards a scam ?
I once bought one locally off craigslist 10 years ago. The guy had bought the gift card with his credit card, and he did a credit card chargeback a month after he sold it to me, so Netflix immediately cancelled my service. Lesson learned.
- Sat Apr 06, 2019 10:12 am
- Forum: Personal Investments
- Topic: BofA / Merrill Edge is [Tempting me to] Switch from Vanguard
- Replies: 49
- Views: 5935
Re: BofA / Merrill Edge is Making Me Switch from Vanguard
LFKB, your investable assets would qualify you to work with BOA’s private client group, US Trust. They may or may not be able to offer you an even better deal on that mortgage; certainly worth a call. Those salespeople have a LOT of strings they can pull within BOA to offer good deals. (It probably doesn’t need to be said, but they’re also out to make a buck, so buyer beware as with any salesperson.)
- Thu Feb 28, 2019 9:28 pm
- Forum: Personal Finance (Not Investing)
- Topic: Should I move to a high cost of living area?
- Replies: 48
- Views: 3416
Re: Should I move to a high cost of living area?
If you’re making $600k in MCOL area, I’d want at least $1 million/year to move to the Bay Area. Do you like the place you currently live in? Why? It’s not as though everything is twice the price. A $20k car doesn’t cost $40k. A $7 bottle of shampoo doesn’t cost $14. Only housing is dramatically more expensive, and $150k/yr buys a lot of house. Now if he was making only $150k in MCOL I would agree that double the salary is required, but it’s silly to say that double the salary is required no matter the starting salary. Cars aren’t double in the Bay Area but they are more expensive. When I was buying my last BMW I was in the Bay Area and tried to negotiate with them on the model I wanted (which was a moderately option 5 series not a fancy M ...
- Thu Feb 28, 2019 9:21 pm
- Forum: Personal Investments
- Topic: Why Does a Custom Variable Universal Life Insurance Policy Not Make Sense For Me?
- Replies: 46
- Views: 3752
Re: Why Does a Custom Variable Universal Life Insurance Policy Not Make Sense For Me?
I do believe the one place whole life insurance can make sense is as a tax shelter for UHNW individuals. Unfortunately, it gets sold far more often as a “tax shelter” for the middle class.
Can you implement this strategy later in life once your assets begin to exceed the estate tax threshold? That would lower your risk. I suspect you’re underestimating the total fees you would pay (they really go out of their way to obscure them), but those high fees may be worth paying to avoid even higher taxes on your estate.
Can you implement this strategy later in life once your assets begin to exceed the estate tax threshold? That would lower your risk. I suspect you’re underestimating the total fees you would pay (they really go out of their way to obscure them), but those high fees may be worth paying to avoid even higher taxes on your estate.
- Thu Feb 28, 2019 9:06 pm
- Forum: Personal Finance (Not Investing)
- Topic: Should I move to a high cost of living area?
- Replies: 48
- Views: 3416
Re: Should I move to a high cost of living area?
Why? It’s not as though everything is twice the price. A $20k car doesn’t cost $40k. A $7 bottle of shampoo doesn’t cost $14. Only housing is dramatically more expensive, and $150k/yr buys a lot of house.Glockenspiel wrote: ↑Thu Feb 28, 2019 8:56 pm If you’re making $600k in MCOL area, I’d want at least $1 million/year to move to the Bay Area. Do you like the place you currently live in?
Now if he was making only $150k in MCOL I would agree that double the salary is required, but it’s silly to say that double the salary is required no matter the starting salary.
- Thu Feb 28, 2019 8:32 pm
- Forum: Personal Finance (Not Investing)
- Topic: Should I move to a high cost of living area?
- Replies: 48
- Views: 3416
Re: Should I move to a high cost of living area?
An extra $150k will easily cover the new mortgage payment, but depending on where you’re coming from, the taxes might put you at a net financial loss. I would make the decision based on the merits of the job and lifestyle in the new location vs the old. The finances will be similar enough to take them out of the equation.
- Thu Feb 28, 2019 3:13 pm
- Forum: Personal Consumer Issues
- Topic: Going to "cash-only" restaurants?
- Replies: 109
- Views: 7141
Re: Going to "cash-only" restaurants?
I'm picturing you guys sitting at home scrubbing your credits cards with disinfecting wipes after handing them to a cashier!
- Sat Feb 09, 2019 2:03 pm
- Forum: Personal Consumer Issues
- Topic: Would you eat lab grown meat?
- Replies: 64
- Views: 2795
Re: Would you eat lab grown meat?
Only if it tasted good.
- Thu Feb 07, 2019 4:54 pm
- Forum: Personal Investments
- Topic: Merrill Edge or Fidelity
- Replies: 42
- Views: 5887
Re: Merrill Edge or Fidelity
It really doesn’t matter. They’re both great options, and you can switch easily if you change your mind.
- Sat Jan 26, 2019 10:41 am
- Forum: Personal Finance (Not Investing)
- Topic: 1.2% is a competitive fee?
- Replies: 24
- Views: 1623
Re: 1.2% is a competitive fee?
His job is to make you feel bad so you won’t leave. Your job is to ignore his nonsense and leave anyway.
- Sat Jan 26, 2019 9:34 am
- Forum: Personal Finance (Not Investing)
- Topic: Unpleasant surprise 2018 Federal Tax - high level overview?
- Replies: 114
- Views: 18237
Re: Unpleasant surprise 2018 Federal Tax - high level overview?
Our itemized deductions stayed flat at ~$30k, but personal exemptions are no longer allowed so our tax owed increased quite a bit. There’s nothing I can do about it, so I’ll pay the tax and move on. At the end of the day I still feel very lucky to have been born in the USA, and lucky to earn enough to pay taxes.
- Sun Dec 30, 2018 1:02 pm
- Forum: Personal Consumer Issues
- Topic: Thoughts on the new Maxima?
- Replies: 42
- Views: 3923
Re: Thoughts on the new Maxima?
If you buy and hold vehicles (and the fact that you’re driving a 2007 says that you do), then I think it’s important to let emotions play a sizable role in your decision. You clearly love the Maxima, so don’t let strangers on the internet tell you that you shouldn’t drive what you love for the next 10-15 years.
- Tue Dec 11, 2018 10:30 pm
- Forum: Personal Consumer Issues
- Topic: Buy Lexus CPO now or wait until end of Dec.?
- Replies: 23
- Views: 2389
Re: Buy Lexus CPO now or wait until end of Dec.?
I have two local Lexus dealers and neither would haggle at all on CPO RX350's. They did, however, drop the price by about $200 every week until each vehicle finally sold.
It's funny everyone is mentioning Subaru's, because that's what we ended up buying instead of the Lexus--mostly because our stroller fit better in the trunk!
It's funny everyone is mentioning Subaru's, because that's what we ended up buying instead of the Lexus--mostly because our stroller fit better in the trunk!
- Tue Oct 30, 2018 12:01 pm
- Forum: Personal Finance (Not Investing)
- Topic: Moving to Minnesota
- Replies: 28
- Views: 3859
Re: Moving to Minnesota
You can’t go wrong by renting very near to work. You can always move a year or two later after you’ve gotten to know the area.
- Sat Sep 08, 2018 9:10 pm
- Forum: Personal Consumer Issues
- Topic: Getting Top Dollar for Selling our Condo
- Replies: 16
- Views: 1632
Re: Getting Top Dollar for Selling our Condo
A $250 Nest thermostat will make your condo approximately $25 more appealing to a buyer. A $10k bathroom upgrade will likely fetch $5k extra. The only upgrades with positive ROI are typically fresh paint and landscaping. Or upgrades to an otherwise marginally inhabitable dwelling (ie flipping).