Bogleheads.org

BoggledHead2

If there’s a global virus pandemic, your asset allocation / emergency fund won’t matter

Wash your hands, rest when you dont feel well, and move on with life.

*i can’t stand people who come to work sick - like they are so kind of hero, but that’s for another thread

BoggledHead2

I would like to thank everyone who has responded to my post. As I've digested what has been said, its given me some much needed clarity - especially the fact that my bad decision(s) didn't occur just on Dec 27th. I will return to my "buy and hold forever, while buying more with every pay check" ind...

BoggledHead2

I try to keep my car expenses under $400/month, including insurance/monthly payment/gas

I know a lot of people paying that just for a lease payment ...

BoggledHead2

This is approx. 10% of the world population. Crazy! Residential lockdowns of varying strictness — from checkpoints at building entrances to hard limits on going outdoors — now cover at least 760 million people in China, or more than half the country’s population, according to a New York Times analy...

BoggledHead2

It is hard for me to understand that the market has yet to be affected by the coronavirus. I have been maximizing my Roth IRA and 401K accounts the last two years. I have been fortunate enough to have invested extra cash in a taxable IRA account. My thought/question is this: Do I cash out my taxabl...

BoggledHead2

It’s “death toll” is rising - and grabs the headlines Do a deeper dive into the “death toll”:total cases ratio ... all the sudden “98% of people are fine with minor symptoms” becomes less scary On a global scale that would be 160 million people dead. Or if you want to use a narrow focus over 6 mill...

BoggledHead2

It’s “death toll” is rising - and grabs the headlines Do a deeper dive into the “death toll”:total cases ratio ... all the sudden “98% of people are fine with minor symptoms” becomes less scary The market had a mini tantrum a week or 2 ago heading into the weekend; then people woke up and realized t...

BoggledHead2

Monitorjak wrote: ↑
Fri Feb 07, 2020 3:32 pm
My 401k is invested in FIAM BLEND TD 2045 Q

Then I’d have my Roth in something similar and just let the robots do the work

BoggledHead2

Chubb is the gold standard but very expensive. Jewelers mutual is the go to for most. But be warned, you will NOT get cash back instead you will get a 'similiar' diamond, which probably cost less then the one you bought. Word of widsom, dont get your diamond over appraised. $6k, why even bother get...

BoggledHead2

Any recommended insurance providers for an engagement ring - specifically if now homeowner/renter insurance policy? Congratulations on the engagement and hope you have a long fun partnership. We insured our ring for a couple of years I think. Chubbs was a well known jewelry insurer at the time, and...

BoggledHead2

Chubb is the gold standard but very expensive. Jewelers mutual is the go to for most. But be warned, you will NOT get cash back instead you will get a 'similiar' diamond, which probably cost less then the one you bought. Word of widsom, dont get your diamond over appraised. $6k, why even bother get...

BoggledHead2

A lot of people in my family own rental properties, so it comes up often in discussion ... REIT seem like an effortless no brainer alternative I know it’s not without risk, but dumping 500k into 1 single home/“investment” seems like a ton of risk (plus tenants, taxes, maintenance, etc) If I bought a...

BoggledHead2

You want to determine an allocation of US / International Equity and Bonds

Based on funds available in 401k, you can use the Roth to balance out your desired allocation.

You may also buy into a target date fund and just let fidelity handle the rebalancing for you

BoggledHead2

MrCastaway wrote: ↑
Fri Feb 07, 2020 9:45 am
I paid for the insurance for 1st two years basically so wife would feel comfortable wearing it

Honestly I wouldn’t be surprised if it ends up in a lockbox or something

I just know I’m not buying another 1, so if $90 helps me protect against that loss - I may do it.

Gotta read the fine prints

BoggledHead2

When I purchased my now wife's engagement ring 31 years ago, it was the most expensive thing I owned (my used car was pretty well depreciated). I gave it to her when I proposed in NYC on a beautiful fall day. She said yes! :-) Anyway the rest of the day, she was walking around with her hand stretch...

BoggledHead2

Nowizard wrote: ↑
Fri Feb 07, 2020 9:32 am
Insurance amounts on the policy and actual payout if necessary differ significantly. Consider this carefully, particularly if you are buying what would be an expensive ring for the average person ( 10-20K) that would be small in the overall market for diamonds.

Tim

Good to know, thank you.

BoggledHead2

looks like I can get it insured for 90-100 dollars a year - have to read the fine print, but I'll pay that every year to not care if this thing that still cost me thousands of dollars goes missing. Thousands of dollars? That's a lot to spend on a ring that might get lost. I spent about $500 in supp...

BoggledHead2

Define what you think is "on time"? An employer is required to send the employee deferrals to the 401k plan administrator as soon as the deferrals can reasonably be segregated from the employer's general funds. The DOL has a 7 business day safe harbor (Friday payday, Tuesday of the week following t...

BoggledHead2

Look, I hate wedding nonsense. In my area, it’s so over the top and wasteful that - quite frankly - it’s nauseating. I genuinely hate it. The “normal” amount spent on an engagement ring is 15-20K followed by rehearsal dinners, showers, etc. before the eventual 50-100K wedding ceremony and party. It’...

BoggledHead2

looks like I can get it insured for 90-100 dollars a year - have to read the fine print, but I'll pay that every year to not care if this thing that still cost me thousands of dollars goes missing. Thousands of dollars? That's a lot to spend on a ring that might get lost. I spent about $500 in supp...

BoggledHead2

Another vote for Jewelers Mutual. Have wife’s engagement and wedding ring and my once-in-a-lifetime watch covered. I just had to send the watch in for maintenance and it was covered if sent by (registered) mail. The insurance alone to send it in the mail was $70. Wife’s rings are sent back periodic...

BoggledHead2

Why would a home owner want to buy REITs? For that matter, why would anyone who claims to believe in diversification in equities? It's just another sector, the same as tech, energy, consumer goods, etc. Because real estate is the largest asset class in the world. It’s not just another sector. If on...

BoggledHead2

Why would a home owner want to buy REITs? For that matter, why would anyone who claims to believe in diversification in equities? It's just another sector, the same as tech, energy, consumer goods, etc. Because real estate is the largest asset class in the world. It’s not just another sector. If on...

BoggledHead2

simplesimon wrote: ↑
Thu Feb 06, 2020 5:00 pm
Jewelers Mutual

initial quote was 90/year, which is awesome - just need to read the fine print / get appraisal.

having the ring custom made, so i don't even have it yet - just getting all my ducks in a row. Thanks as always BH!

BoggledHead2

Buy a cheaper ring? In all seriousness, neither my wife or I have worn our rings for over 3 years. May even sell them and put the money in VTI. I'm paying 1/3 - 1/4 the price of what most people in my area are spending on it ... for something I actually like / this is nice and know she'll love. and...

BoggledHead2

If you get coverage, try to have it cover "all losses, including mysterious disappearance". Otherwise, you'll probably need to provide some sort of proof of a theft, which might mean accusing someone you aren't sure did anything wrong. That would cover suddenly realizing the ring is gone, without a...

BoggledHead2

simplesimon wrote: ↑
Thu Feb 06, 2020 5:00 pm
Jewelers Mutual

This was the 1st option I was exploring, good to know!

BoggledHead2

Any recommended insurance providers for an engagement ring - specifically if now homeowner/renter insurance policy?

BoggledHead2

anon_investor wrote: ↑
Thu Feb 06, 2020 1:46 pm
To use your own words: “keep doing what you’re doing and enjoy how boring it is”

If you own VTSAX/VTI or a similar total stock market fund, you already have some REITs.

Thanks; It's clear I have to just accept I'm in pretty good financial shape and need to just embrace/enjoy the boredom of it.

BoggledHead2

Why would a home owner want to buy REITs? For that matter, why would anyone who claims to believe in diversification in equities? It's just another sector, the same as tech, energy, consumer goods, etc. I'm not a home owner, and the diversification I was referring to was in relation to buying 1 ren...

BoggledHead2

Am I way off base in viewing REIT as a smart “tilt” due to not being 100% correlated with markets as well as the high dividend output somewhat providing additional “safety”/income to ones portfolio? In a word, yes: 1. the reduced correlation won't help you much when it hits the fan 2. dividends get...

BoggledHead2

Work for small company, recently switched 401K providers and payroll/finance managers My bi-monthly checks get deducted 401K contributions, but they rarely go in “on time” and often require a reminder to check on them. Is this normal? I believe I read a company is legally allowed to “hold” these con...

BoggledHead2

Am I way off base in viewing REIT as a smart “tilt” due to not being 100% correlated with markets as well as the high dividend output somewhat providing additional “safety”/income to ones portfolio? I know the are volatile, but those high dividends seem appealing to me ... especially if I could use ...

BoggledHead2

I want to add “real estate” to portfolio HCOL and weighed the pros and cons ... I want to add REIT rather than buy a rental property and deal with all the hassle (tenants, legal, property taxes, maintenance, etc.) Currently in “2 fund portfolio” ... how much of ones portfolio should be REIT? I know ...

BoggledHead2

I think you are ok, because the funds in the Traditional IRA left as if 12/31/2019 were all non-deductible contributions. The pro rata rule comes into play if there is any pre-tax balance in the Traditional IRAs as of 12/31/2019. Judging by your post, there is none. You will just have to report a n...

BoggledHead2

Welcome to bogleheads exclamation point At your age I would not pass up the opportunity to fully fund the Roth every year. So yes I recommend funding the 2019 via Backdoor. You made no mention of tIRAs so therefore there is no pro rata rule to be concerned. You will have to sell the funds held in T...

BoggledHead2

Yes Boggledhead2, it really is that simple and yes you can use that old IRA. Where people mess up, and a lot of them do mess up, is usually in the paperwork. You will save yourself a lot of grief if you figure out the paperwork ahead of time. I have an accountant; Is there additional paperwork I’d ...

BoggledHead2

I have 1 traditional IRA

$0 Balance. It was used a couple years ago to convert a plan from previous employer into my Roth (paid taxes on the conversion).

Technically the tIRA is still “open”, but has had $0 balance for years.

Can I use this tIRA for a future Backdoor Roth?

BoggledHead2

I have a traditional IRA - $0 balance (previous conversion from first employer) May be married/over income limit to contribute directly to ROTH in near future. For future reference, is the backdoor Roth simply contributing to that Traditional IRA, “converting” that contribution to my Roth IRA, and p...

BoggledHead2

Hard to answer the question without knowing what "affordable" rent even means. $500k move-in ready house is very affordable to me and is not HCOL. Affordable = I can pay rent, max out my retirement accounts, save $500-1000 extra a month, and still travel/enjoy my life (weekends, free time, etc.) Re...

BoggledHead2

Here is a rent vs buy calculator that you can play with to see if one of the options is more favorable financially. https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html Be sure to compare what it would cost to buy or rent identical properties. One common mistake people make when...

BoggledHead2

OP, Only when it is significantly cheaper than renting. Assume no price appreciation in your house purchase decision. If the PITI of 20% down payment 30 years mortgage is 20% to 30% cheaper than renting, you may start considering. KlangFool Thank you; Basically, under these parameters no one should...

BoggledHead2

Maybe look at how the medium price has changed to get a sense, hard to base on one or two homes. That said, you would know if your in a market that historically goes wild. If your not, then the payment variance is more critical (ie would you buy this as an investment for cash flow). I'd imagine the...

BoggledHead2

A few items at play: 1. How fast can you save the 20+% down and closing costs? How secure are jobs? Can you make it on 1 income or need 2? 2. How much will the house purchase affect your retirement investing/savings? 3. How do you value the "lifestyle" of renting vs buying? For many, #3 and the des...

BoggledHead2

OP, Only when it is significantly cheaper than renting. Assume no price appreciation in your house purchase decision. If the PITI of 20% down payment 30 years mortgage is 20% to 30% cheaper than renting, you may start considering. KlangFool Thank you; Basically, under these parameters no one should...

BoggledHead2

We are in a VHCOL area and trying to figure out the home purchase thing too. Sounds like the math is the most important to you, so how will the mortgage payment compare to your current rent? Do rents historically go up a lot in your area? How about home price appreciation? Often times on the coasts...

BoggledHead2

HCOL Area: - "Starter Homes" aren't really an option, and homes basically cost 500K to even be considered somewhat move-in ready. You're spending 300K on a true "fixer upper". - Property taxes are the highest in the U.S. Current rent is very affordable and "great value" compared to what others would...

BoggledHead2

In an ideal scenario, would 100% of my 401K be in a bond fund? (with taxable/Roth IRA making up equity)? - Thinking worst case scenario I would just turn my 401K into traditional IRA down the road and then use better bond fund if needed There is no special reason a 401k should be all bonds. The usu...

BoggledHead2

Thank you; we recently switched 401K providers so I'll dive deeper into new fund options (previous 401K options were ... awful). Total Bond is an OK fund to put in taxable account? In general you want to avoid getting too much income in taxable accounts and have that income be taxed at higher rates...

BoggledHead2

Want to slowly add Bonds into portfolio; 20+ year horizon 1. Want my ROTH to be 100% equity for now 2. 401K 100% Equity 3. Taxable account Is a Total Bond fund bad to add to taxable? Should I use my 401K for bond placement? Thanks for all of your help, BH! Want to slowly add Bonds into portfolio; 2...

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