Search found 66 matches

by SantaClaraSurfer
Sun May 24, 2020 9:40 am
Forum: Investing - Theory, News & General
Topic: Taxable Account - a Swiss Army Knife for Savers
Replies: 30
Views: 3934

Re: Taxable Account - a Swiss Army Knife for Savers

I think OP is discovering that having money makes life easier. I fully agree. Yes, that's a good part of it! In practical terms, we live on the budget from when we made 40% of the income we do know. But now, after we max our retirement accounts, we save or invest the rest at Schwab and then allocat...
by SantaClaraSurfer
Fri May 22, 2020 7:45 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account - a Swiss Army Knife for Savers
Replies: 30
Views: 3934

Re: Taxable Account - a Swiss Army Knife for Savers

I want to thank everyone who replied, I read and appreciate every response. I am new to this and still have a shock when something doesn't turn out like I expected. This one was pleasant. I've been very happy with Schwab. It's really helped my wife and I leave our 401(k)s be, while we use our broker...
by SantaClaraSurfer
Fri May 22, 2020 5:54 pm
Forum: Investing - Theory, News & General
Topic: Efficiency or resiliency in investing, business, personal finance, etc.
Replies: 83
Views: 3485

Re: Efficiency or resiliency in investing, business, personal finance, etc.

I'm all about resilience and how even small contributions can add up to make a big difference. Personal Finance example. We've got an account we keep for our kids' education / futures / our parents. 1. In addition to dedicated savings targets in that account, I started putting $150 a month into a Bo...
by SantaClaraSurfer
Fri May 22, 2020 1:32 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account - a Swiss Army Knife for Savers
Replies: 30
Views: 3934

Re: Taxable Account - a Swiss Army Knife for Savers

A taxable account is a great thing, too, but not at the expense of tax-advantaged investments. And for the OP, here is a way to "leverage" a taxable account: https://www.bogleheads.org/wiki/Placing_cash_needs_in_a_tax-advantaged_account I agree with your tax-advantaged advice, and we both max our 4...
by SantaClaraSurfer
Thu May 21, 2020 3:59 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account - a Swiss Army Knife for Savers
Replies: 30
Views: 3934

Taxable Account - a Swiss Army Knife for Savers

We've only recently begun to build up our taxable brokerage account, and, even in the midst of a financial crisis, I've come to see to see this tool as an underappreciated, at least to me, Swiss Army Knife of wealth building and financial well being. Let me explain. We are a mid-career household wit...
by SantaClaraSurfer
Sat Mar 14, 2020 2:48 pm
Forum: Personal Investments
Topic: Why would TRPJX be down 3.07% today?
Replies: 2
Views: 226

Re: Why would TRPJX be down 3.07% today?

Thanks, the NAV appears correct on Fidelity and Schwab at 11.67 but both show it as down 3.07% for the day w/ date of 3/13. The T Rowe Price Website shows 11.67 but up 5.8%. Maybe a lag in the full reporting is something I just have to get used to? It seems others are having similar issues this week...
by SantaClaraSurfer
Sat Mar 14, 2020 1:03 am
Forum: Personal Investments
Topic: Why would TRPJX be down 3.07% today?
Replies: 2
Views: 226

Why would TRPJX be down 3.07% today?

I have TRPJX in my 401(k). Everything in my taxable (equities/bonds/small/large/domestic/int'l) went up today (3/13/20), but TRPJX went down 3.07%. Any explanation for this? I don't understand. Is there a lag in reporting? (My 401k is with Fidelity.) Sorry for the newbie question if this had an obvi...
by SantaClaraSurfer
Mon Mar 09, 2020 9:47 pm
Forum: Investing - Theory, News & General
Topic: "If you were happy to buy it then" fallacy
Replies: 64
Views: 4140

Re: "If you were happy to buy it then" fallacy

1. I haven't been purchasing equities all that long. (And REALLY value the general advice on this site, since my wife and I have 20 years to go, this is exactly the perspective we need.) 2. I keep a log of my ETF purchases in a Google Sheet. I basically keep a map of where I want to go for the year,...
by SantaClaraSurfer
Fri Feb 28, 2020 5:40 pm
Forum: Investing - Theory, News & General
Topic: Anybody want to guess the bottom of this "dip"?
Replies: 573
Views: 37749

Re: Anybody want to guess the bottom of this "dip"?

I have no idea. All that and no guess. :? Okay! My actions today mean I put my guess that at in 8-12 months, however much lower this goes (maybe 7-15% more? who knows?) we will be back to around this level or better. I wouldn't be shocked to see a big sell off if there's additional bad virus news (...
by SantaClaraSurfer
Fri Feb 28, 2020 5:24 pm
Forum: Investing - Theory, News & General
Topic: Anybody want to guess the bottom of this "dip"?
Replies: 573
Views: 37749

Re: Anybody want to guess the bottom of this "dip"?

I have no idea. We are mid-career, 20+ years from retiring, and committed to steady purchases via automated 401(k) and our own after tax savings/investing. So, buy less high, buy more low, it all just moves forward in a (mostly) DCA fashion. Once in awhile, since we buy ETFs, I can try to buy the di...
by SantaClaraSurfer
Tue Nov 12, 2019 6:29 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 155
Views: 20069

Re: Debunking Bonds in Taxable

My humble input would be to observe that there are multiple real-world advantages to having your 401(k) reflect your current asset allocation that don't involve maximizing return. My wife and I keep our 401(k)s as two, separate, mini 3-funds portfolios. It's great to have that as a bulwark for our r...
by SantaClaraSurfer
Thu Oct 17, 2019 4:43 pm
Forum: Personal Investments
Topic: Target Date Fund Conundrum
Replies: 16
Views: 2619

Re: Target Date Fund Conundrum

In my 401(k): -The US Total Market is great and cheap -The best available Bond Fund is US only (and not broad) -The best available Int'l is Large Cap Developed Only -The TDF is diverse and good, will get me better diversity in bonds and int'l and inflation hedges, but has a higher fee I made 32% of ...
by SantaClaraSurfer
Wed Sep 11, 2019 4:57 pm
Forum: Personal Investments
Topic: Where should we cut back saving/investing?
Replies: 58
Views: 6727

Re: Where should we cut back saving/investing?

We pay a small amount per year to run Good Budget app jointly on our phones/laptops. It does NOT connect to our bank account. Once per month ahead of our monthly budget we reconcile the excel file from the bank and our Good Budget data to check for missing items. (We really would not have to do this...
by SantaClaraSurfer
Thu Sep 05, 2019 3:18 pm
Forum: Personal Investments
Topic: Late starter Question
Replies: 10
Views: 1191

Re: Late starter Question

My own personal take: (First off: I am lucky that my wife is NOT a late starter, so that eases our overall situation.) 1. My experience would be to advise against trying to "catch up fast" other than by spending less in order to increase savings/investing rate. 2. I've been very happy with a general...
by SantaClaraSurfer
Sun Sep 01, 2019 10:39 am
Forum: Personal Consumer Issues
Topic: My new car buying experience.
Replies: 62
Views: 19187

Re: My new car buying experience.

AZAttorney11 wrote:
Sun Sep 01, 2019 10:21 am
Why would you ever negotiate monthly payment terms instead of negotiating the lowest out the door price of the vehicle?
I'd say researching price and preapproved financing and then arming yourself to speak the language that will be spoken to you is the smart move.
by SantaClaraSurfer
Sun Sep 01, 2019 10:13 am
Forum: Personal Consumer Issues
Topic: My new car buying experience.
Replies: 62
Views: 19187

Re: My new car buying experience.

Never lose track that your total cost = Monthly x Months. Research a fair price. Calculate taxes, typical fees, and subtract your down payment. That's your total fair cost. Get pre-approved for the lowest rate you can. Go to an Auto Loan Calculator Website and calculate your Fair Monthly payment for...
by SantaClaraSurfer
Thu Aug 29, 2019 9:34 am
Forum: Investing - Theory, News & General
Topic: A theory of one's general investing mindset: 'Good enough' or 'Optimize'
Replies: 297
Views: 14102

Re: A theory of one's general investing mindset: 'Good enough' or 'Optimize'

I don't think of it as mutually exclusive. This lens is a bit of a different take. Our strategy, w/ "good enough" or "optimize" level. Tier 1: Earnings / Savings Rate / Career Growth / Budgeting " Highly Optimized / Many Inputs / Many small changes for Long term Growth and Month to Month Spend Manag...
by SantaClaraSurfer
Mon Aug 26, 2019 12:00 pm
Forum: Personal Consumer Issues
Topic: Another car affordability question, YOLO vs. extreme FI
Replies: 64
Views: 3929

Re: Another car affordability question, YOLO vs. extreme FI

Some things to think about 1. What are your total transportation costs? If you are a FIRE type, how does transportation fit into your lifetime goals? What percentage of your annual income are your transportation costs? 2. What is the Delta in cost between the most realistic alternative option and th...
by SantaClaraSurfer
Sun Aug 25, 2019 11:32 pm
Forum: Personal Investments
Topic: Need Advice: Checking/Savings Accounts
Replies: 22
Views: 2335

Re: Need Advice: Checking/Savings Accounts

Credit Union (Do this if at all possible. Game changer. They are non profit. A good one makes a huge difference.) 2 Checking Accounts (we are both joint on each others account) Checking Account A = All Bills, Paychecks deposited etc. Checking Account B = Fun, which means, basically, restaurants. Thi...
by SantaClaraSurfer
Sat Aug 24, 2019 9:36 pm
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 1474
Views: 169651

Re: What frugal thing did you do today?

1. Used Good Budget. 2. We skipped a restaurant brunch an made French Toast w fresh Brioche Challah $5.28, and berries, cream and eggs we had at home. Seriously, we started Good Budget to be able to use our ATM card everywhere and not do the cash envelope thing. But now that we have an array of mont...
by SantaClaraSurfer
Thu Jul 25, 2019 12:51 pm
Forum: Personal Investments
Topic: What to do with cash in Schwab?
Replies: 42
Views: 3323

Re: What to do with cash in Schwab?

LilyFleur wrote:
Wed Jul 24, 2019 11:16 pm
Do you report anything at all anywhere from SWKXX on your taxes?
Yes, we fully report and comply!! I could have put it better, maybe say that it's doesn't effectively impact our gross income??

IANAA!!
by SantaClaraSurfer
Wed Jul 24, 2019 1:38 pm
Forum: Personal Investments
Topic: What to do with cash in Schwab?
Replies: 42
Views: 3323

Re: What to do with cash in Schwab?

We use SWKXX for our "savings goal accounts." Ie. everything with a near term, but not immediate need for withdrawal. We both have Schwab ATMs so, for example, we could sell an amount equal to our vacation spending $$ and then just use the cards, esp. overseas where Schwab is convenient. However, we...
by SantaClaraSurfer
Wed Jul 24, 2019 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Sell paid off house, invest proceeds and rent
Replies: 47
Views: 4087

Re: Sell paid off house, invest proceeds and rent

Here's some perspective from the reverse scenario: I'm 50, my wife is 40. We are "almost empty nesters" with two kids going through college over the next six years. We've decided to rent for our remaining career years and invest the savings in a taxable account. Folks who feel like renting is tossin...
by SantaClaraSurfer
Sun Jul 14, 2019 9:40 am
Forum: Personal Finance (Not Investing)
Topic: Advice on how to organize brokerage account with multiple goals?
Replies: 6
Views: 890

Re: Advice on how to organize brokerage account with multiple goals?

We park our cash for goals in a single Money Fund at Schwab and track it. We use GoodBudget. Ex. 5000 in Money Fund GoodBudget folders: 1000 Vacation 2500 Car 1500 Home Improvement We reconcile once a month. It can be tricky when you've spent money and there's money coming in. But that's a good prob...
by SantaClaraSurfer
Fri Jul 12, 2019 11:46 pm
Forum: Personal Investments
Topic: Advice for a College Grad Looking to Build Wealth
Replies: 31
Views: 1876

Re: Advice for a College Grad Looking to Build Wealth

1. Absolutely agree. I actually have been sticking to Daily Budget Original (helps me track my day-to-day spending. Giving me a dollar amount I can spend each day for things like food, clothes, drink etc) $20 :D 2. Do you recommend I look into partnering with a Credit Union at my age? What are the ...
by SantaClaraSurfer
Fri Jul 12, 2019 4:33 pm
Forum: Investing - Theory, News & General
Topic: Index Fund Creator Jack Bogle Didn't Like ETFs Being Used For Speculation
Replies: 84
Views: 4610

Re: "ETFs are a loser’s game. Let me be very clear about that."

I've yet to sell a single share of an ETF. SCHB is a Boglehead friendly investment, if I ever saw one. Zero complaints. However, I did have some issues with my last LOWC purchase that make me think that the smaller ETFs are more vulnerable to the above criticisms. I guess there was not enough trade ...
by SantaClaraSurfer
Fri Jul 12, 2019 4:16 pm
Forum: Personal Investments
Topic: Advice for a College Grad Looking to Build Wealth
Replies: 31
Views: 1876

Re: Advice for a College Grad Looking to Build Wealth

1. Learn how to use an app like Good Budget and create Monthly, Annual and Goal envelopes so that you are always only spending money that you already have saved. Once you do this, your appropriate savings rate/spending rate will become super clear. 2. We've had great luck with Credit Unions. Saved u...
by SantaClaraSurfer
Fri Jul 12, 2019 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford this 2.3 million dollar home?
Replies: 273
Views: 29496

Re: Can I afford this 2.3 million dollar home?

I've no idea how much I left on the table, in terms of reduced equity grants and/or career progression compared to if I'd stayed in silicon valley, but on the other hand I don't care -- things worked out so well, we've got "Enough" That's awesome. And "enough" means you don't really need to quantif...
by SantaClaraSurfer
Thu Jul 11, 2019 8:58 pm
Forum: Investing - Theory, News & General
Topic: Three most important elements of investment success
Replies: 67
Views: 7195

Re: Three most important elements of investment success

Agreed. Number 1 is most of the ballgame. (We just downsized our vacation to keep to this goal. We will still have a blast!) Number 2 can be counterintuitive (esp. maxing 401(k) and living on net pay) but is most of the rest of the ballgame. Number 3 has less impact on ultimate outcomes, in my view,...
by SantaClaraSurfer
Thu Jul 11, 2019 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford this 2.3 million dollar home?
Replies: 273
Views: 29496

Re: Can I afford this 2.3 million dollar home?

We are not at that income level, but faced with VHCOL area we decided to rent at $4500/mo. versus purchase (comparable was above $1.15 million.) Deciding factor for us was considering: a) How far we would have to extend ourselves to make a down payment that would make buying work. b) How long our du...
by SantaClaraSurfer
Thu Jul 11, 2019 12:23 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation of the Ultra-Wealthy, can I copy their portfolio with index funds?
Replies: 63
Views: 5784

Re: Asset Allocation of the Ultra-Wealthy, can I copy their portfolio with index funds?

Doesn't anyone invested in a total market index fund have more than a little exposure to real estate / venture capital investments / pe already?

And that's not counting the other ways folks might be participating (pension funds, annuities, life insurance, etc.).
by SantaClaraSurfer
Fri Jun 28, 2019 5:52 pm
Forum: Personal Investments
Topic: Does anyone tilt away from the industry they work in?
Replies: 37
Views: 2275

Re: Does anyone tilt away from the industry they work in?

We actually do the opposite with a small part of our portfolio. (ie. Not our 401(k)s, which are the core of our retirement planning and are set up with a 3 fund Boglehead approach.) Basically, part of our Taxable investment portfolio are funds that we view as "in lieu of" purchasing a house in our a...
by SantaClaraSurfer
Tue Jun 25, 2019 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: How did you lower your annual expenses?
Replies: 145
Views: 14713

Re: How did you lower your annual expenses?

1. We use the paid version of the Good Budget App for all major expense categories. We use this App every day. We then meet once a month and run our budget on Google Sheets to reconcile accounts. 2. We save for typical Annual expenses (Christmas, Birthdays, Petcare, Auto) as part of our standard Mon...
by SantaClaraSurfer
Thu Jun 13, 2019 3:31 pm
Forum: Investing - Theory, News & General
Topic: The Case Against ETFs
Replies: 193
Views: 11157

Re: The Case Against ETFs

I purchase our ETFs @1x month. I've got a tracker that I follow for our one year strategy. (ex. We are at 30% of our year allocation for SCHB.) I have a sheet that lets me enter available funds and then purchase blocks of ten and calculate remaining funds based on price per share. Typically, I purch...
by SantaClaraSurfer
Sun Jun 02, 2019 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: For those who earn $500k+ per year. How'd you do that?
Replies: 369
Views: 42175

Re: For those who earn $500k+ per year. How'd you do that?

I'd like to hear too... even if only over $200k. I'm a structural engineer making $90k + benefits. Sounds decent but factor in 4 kids + wife, single income, and living in California it's lean living. Always thought in high school and college I wouldn't have to live this lean having my PE stamp. Eve...
by SantaClaraSurfer
Mon May 13, 2019 12:38 am
Forum: Personal Finance (Not Investing)
Topic: When did you realize it wasn't enough?
Replies: 33
Views: 7629

Re: When did you realize it wasn't enough?

We were in debt, and decided to move steadily towards increasing income. It worked. There was a key moment when we realized that we could do it, and we pushed forward and stretched to repay a 401(k) loan when one of us took a new job and was forced to choose or lose. That decision (repay, save more ...
by SantaClaraSurfer
Sun May 12, 2019 10:35 pm
Forum: Personal Consumer Issues
Topic: The psychology of money / wealth (a reflection)
Replies: 2
Views: 1126

The psychology of money / wealth (a reflection)

I am someone who has experienced money/wealth from multiple sides in adulthood. In this, I suppose I am similar to many, and also very unlike some who have experienced either steady wealth or constant need. In the interest of transparency, I probably had less than most folks on this board at one poi...
by SantaClaraSurfer
Mon May 06, 2019 10:16 am
Forum: Personal Investments
Topic: Boglehead investing through a major downturn
Replies: 58
Views: 7408

Re: Boglehead investing through a major downturn

Thank you everyone for the excellent grounding and advice. My wife and I are were mostly "survivors" of previous downturns (read: we left with debt on our backs). We were not investors/savers. That kind of stress is also bad, but it's a different kind of stress. Coming out of the 2007-10 recession (...
by SantaClaraSurfer
Fri May 03, 2019 8:18 pm
Forum: Personal Investments
Topic: Boglehead investing through a major downturn
Replies: 58
Views: 7408

Boglehead investing through a major downturn

I'm 50 and my wife is 40. We are both maxing out our 401(k) plans. With her match that means $27,000 per year into a Vanguard Target Date Fund. I have no match, but am 50, so my $25,000 per year goes into the best version of a 3 Fund portfolio I could construct in my Fidelity 401(k). Given our situa...
by SantaClaraSurfer
Tue Apr 30, 2019 2:18 pm
Forum: Investing - Theory, News & General
Topic: Target Date Funds doing it backwards?
Replies: 44
Views: 5438

Re: Target Date Funds doing it backwards?

Two quick built-in disadvantages of a rebalance-on-your-own approach: a) Underestimates psychology of investor inputs esp. in negative market environments. b) Can you explain what you are doing/did to your spouse/partner? The two items are linked. We sometimes talk about AA, rebalancing, DCA as if t...
by SantaClaraSurfer
Fri Apr 19, 2019 3:59 pm
Forum: Investing - Theory, News & General
Topic: Help me test / align this slightly alternate take
Replies: 4
Views: 577

Re: Help me test / align this slightly alternate take

These responses are all super helpful and let me understand that I'm pretty close to aligned!! The kind of questions/challenges I want to be able to withstand (and that this set up should protect against): 1. Spouse and I follow our allocation glide path and the market has a major downturn proximate...
by SantaClaraSurfer
Sun Apr 14, 2019 10:40 pm
Forum: Investing - Theory, News & General
Topic: Help me test / align this slightly alternate take
Replies: 4
Views: 577

Help me test / align this slightly alternate take

I am a huge fan of this site and deeply appreciative of the quality of the advice and insights to be had here on the wiki and in the forums. In my 20's I worked, for a short spell, running computer-assisted plans directed at everyday people for a major financial services company. The reason I share ...
by SantaClaraSurfer
Sun Apr 14, 2019 10:37 pm
Forum: Personal Investments
Topic: Help me test/align this slightly alternate take
Replies: 2
Views: 303

Re: Help me test/align this slightly alternate take

Flyer24 wrote:
Sun Apr 14, 2019 10:21 pm
You might post this in the Theory forum. This section is for your personal investments.
Ok will do!
by SantaClaraSurfer
Sun Apr 14, 2019 9:42 pm
Forum: Personal Investments
Topic: Help me test/align this slightly alternate take
Replies: 2
Views: 303

Help me test/align this slightly alternate take

Moved post to the Theory Forum. Moderators feel free to delete. Thank you.
by SantaClaraSurfer
Fri Apr 12, 2019 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: RSU moving from Employer Grant Account into Our Trust: Tax Status
Replies: 4
Views: 429

Re: RSU moving from Employer Grant Account into Our Trust: Tax Status

I am assuming the employer-chosen brokerage RSU account will have to report out the difference in price somehow. It won't. The share is already paid for in full. Moving it to another account of yours is just like when people move their shares from Vanguard to Schwab. It isn't taxable. You keep the ...
by SantaClaraSurfer
Fri Apr 12, 2019 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: RSU moving from Employer Grant Account into Our Trust: Tax Status
Replies: 4
Views: 429

Re: RSU moving from Employer Grant Account into Our Trust: Tax Status

No, they are moving from one brokerage to a different one. I am assuming the employer-chosen brokerage RSU account will have to report out the difference in price somehow. We aren't selling the share, so I don't exactly know how to accurately name and search for what the appreciation should be called.
by SantaClaraSurfer
Fri Apr 12, 2019 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: RSU moving from Employer Grant Account into Our Trust: Tax Status
Replies: 4
Views: 429

RSU moving from Employer Grant Account into Our Trust: Tax Status

My wife and I are moving 1 share from an employer RSU account (the account at the employer-designated brokerage set up to receive shares) into our Taxable Brokerage Account set up under our Trust (we keep all of our assets in this Trust.) My question relates to taxes. When the RSUs vest, we receive ...
by SantaClaraSurfer
Wed Mar 20, 2019 11:31 am
Forum: Personal Investments
Topic: What role do bonds play in your portfolio?
Replies: 79
Views: 7699

Re: What role do bonds play in your portfolio?

Thanks to everyone for their answers. I've learned a good bit, and that's why I'm here. At this point, taking what I've learned, my answer would map to this framework (which I posted in another thread): Tier 1: Defined Benefits: SSI, Pensions, etc. Tier 2: Tax-Advantaged Accounts 401(k), Roth, etc. ...
by SantaClaraSurfer
Tue Mar 19, 2019 10:19 am
Forum: Personal Investments
Topic: The case for 100% equities
Replies: 200
Views: 15391

Re: The case for 100% equities

Alternate take: Tier 1: Defined Benefits: SSI, Pensions, etc. Tier 2: Tax-Advantaged Accounts 401(k), Roth, etc. (up to your maximum) Tier 3: Tax-Advantaged Fixed Income Investments (US Savings Bonds, etc.) Tier 4: Taxable Fixed Income Investments Tier 5: Taxable Equity Investments If you take the w...
by SantaClaraSurfer
Fri Mar 15, 2019 5:21 pm
Forum: Personal Investments
Topic: What role do bonds play in your portfolio?
Replies: 79
Views: 7699

Re: What role do bonds play in your portfolio?

Taxable bond funds (Schwab U.S. Bond ETF, SCHZ) in a taxable account are not very tax-efficient. Wiki article "Tax-efficient fund placement" . It is not prudent to use tax-exempt bonds or bond funds in a taxable account unless in a very high tax bracket. Thank you for sharing your insights. We are ...