Bogleheads.org

On the flip side, perhaps they do indeed perceive you as offensive. As always, it is in the eye of the beholder. Friends can naturally drift apart for many reasons such as simply no longer sharing the same interests or lifestyle as before (someone married with children and living in the burbs while their friend is single and living in the city).

I would encourage you to focus on what you can and are willing to do to maintain your connections...the rest will take care of itself.

For the kind of driving you are describing for this car, I would most definitely buy used. You can pick perennial winners like the Toyota Rav4 as mentioned by one of the other posters or look around for something you like and check its quality and reliability (JD power and other sources).

One of the nice things about a new car is you may already have a good idea what issues there are, and for the most egregious...completely avoid them. It is not a certainty that a new car will be less likely to have issues.

My tax return is relatively straightforward with only a few wrinkles. In your case, I would simply pay someone...the "juice is not worth the squeeze" the way you are doing it (hire someone).

Regardless of the good advice from our forum, I strongly encourage you to talk with your plan provider...there is simply no substitute.

In particular, if the conversion process is not automated, the manual process of conversion can be a bit tricky for the uninitiated and mistakes can be made. Furthermore, first line reps from the plan provider may have limited knowledge of this process and you may need to get to the next level to get solid answers. The fact is the Mega Backdoor Roth is not that widely used when you consider how much most people can and / or are willing to save.

Make sure you are fully educated and confident in how it works to ensure smooth saving ahead.

Best wishes.

Yes. For the most expensive decision in my life I trust the advice of a professional. Well said! A lot of people also pay AUM to the “professional” advisor with the same mindset. To each their own, but I think there is a better way for most people. * Real estate attorney: this is the must have person in the transaction to ensure a smooth transaction and protect you. * Flat fee MLS broker: their services vary, but for will be hundreds of dollars…not thousands. We sold our home this way and was provided with: * MLS listing * Broker sign (so does not appear as FSBO * Appointment app for showings, etc. * Light support…question about the forms for example. * You set the fee for the buying agent The main challenge I see for some people is having...

Yes. For the most expensive decision in my life I trust the advice of a professional. Well said! A lot of people also pay AUM to the “professional” advisor with the same mindset. To each their own, but I think there is a better way for most people. * Real estate attorney: this is the must have person in the transaction to ensure a smooth transaction and protect you. * Flat fee MLS broker: their services vary, but for will be hundreds of dollars…not thousands. We sold our home this way and was provided with: * MLS listing * Broker sign (so does not appear as FSBO * Appointment app for showings, etc. * Light support…question about the forms for example. * You set the fee for the buying agent The main challenge I see for some people is having...

Valuations are arguably high, but I don't quite get the idea of an "Index bubble". Nor does anyone know how such a thing would actually manifest itself in the markets if things would sour. All the usual advice still applies...live beneath your means, solid savings rate, create a diversified portfolio and keep on chugging.

No one knows, but now is probably not a horrible time to invest in Bonds. One option could be to start directing most of your new contributions (not Roth) in this direction.

Of course, if you have a sizable portfolio, you will likely have to exchange some stocks for bonds to achieve the allocation you want when you are ready to do so.

My own portfolio drifted from 60/40 to 70/30 during the recent volatility. I am also attempting to sell nothing and prioritize pre-tax contributions toward bonds to bring them back up a bit.

Best wishes.

I greatly appreciate your desire to maintain your savings rate. However, it can be the case that you may need to make compromises / trade offs to get where you want to go. My initial comments / suggestions: * Stay where you are living now…if feasible to do so and maintain good standing with those who are helping you. * Be more flexible with your savings rate…in the short run: You are still young and possibly a growing family sooner versus later it seems. Often times, it can take quite some time to build up income. Positively, your track over the next few years appears to be much less fuzzy than most. * Put only 20% down on your mortgage: Your mortgage provides valuable financial benefits including: - Liquidity - Hedge against further infla...

I greatly appreciate your desire to maintain your savings rate. However, it can be the case that you may need to make compromises / trade offs to get where you want to go. My initial comments / suggestions: * Stay where you are living now…if feasible to do so and maintain good standing with those who are helping you. * Be more flexible with your savings rate…in the short run: You are still young and possibly a growing family sooner versus later it seems. Often times, it can take quite some time to build up income. Positively, your track over the next few years appears to be much less fuzzy than most. * Put only 20% down on your mortgage: Your mortgage provides valuable financial benefits including: - Liquidity - Hedge against further inflat...

You have provided too little information to make an assessment. Please see link below which will help us better understand your portfolio, etc.


viewtopic.php?f=1&t=6212

What we have offered our 4 children:

* Community college for 2 years


* State university for the remainder


* All while living at home


People have different ideas about what is an acceptable education.

That is what we are willing to fund and was acceptable to us. If someone wants to live on campus or do something else, that is up to them.


Best wishes.

While this particular bank collapse was somewhat unique, you should heed the warning and not keep more than the FDIC insured amount at any single bank.

My answer is no, a $3,000 mattress isn't worth it. I researched mattresses, looking for the best memory foam mattress similar to the big brand and found bed in a box dot com. It's been my best mattress in my life. Currently the cheapest version of the memory foam mattress is $599. It's very similar to the $3,000 mattresses I've tried before. As soon as I lay down on it I'm yawning and falling asleep. That good. We also bought bed in a box and have been very pleased with it. We actually tried a couple of the online stores and had both beds shipped to us at the same time to "start the clock" to be able to return it after trying it out. We decided the first bed was not for us after a week or so. We then tried the bed in a box which ...

As they say, hindsight is 20/20. Nonetheless, I appreciate and do remember the general discussions around long term treasuries as I was trying to educate myself about bonds (and still in pursuit) which I had invested in for the first time in 2019 (BND / BNDX 80/20). For many of the reasons cited here and elsewhere, I chose to stick with my existing investments. More recently, the topic has come up again and given the change in the investing environment (LTTs clobbered and the risk / reward now appeared to be more promising), I took another look to consider whether or not to make LTTs 20% of my portfolio...and decided to make preparations to pull the trigger. Alas, I reflected a bit more about my motivation and reasoning for LTTs (higher ove...

My recommendation would be to invest nothing into this overly complex setup. The juice is not worth the squeeze.

I just leave it...the juice is not worth the squeeze imo. YMMV.

I've done Huntington in the past and signed up for the $600 about a month ago. I don't recall any issues...definitely worth a shot.

Now Citibank can be a real pain...but I still do it anyway.

It is a worthwhile endeavor, and I believe you can do it.

We made the same choice a bit younger (late 20s). Similar to your own description, it was what my wife had always wanted. We simply decided to try and after more than 20 years...it has worked out and one of our best decisions (4 kids and a bit farther down the road than you at age 50).

There are undoubtedly some trade-offs...such a potentially working longer, etc. Focus on what you can influence (expenses for example) and accept that you may have to adapt your plans along the way.

Best wishes.

As others have highlighted, it is simply too much house for your income. Similar to TinyHouse, I also think more along the lines of 3x income as a rule of thumb (opinions vary).

Rent, continue saving, and enjoy life until you are able to satisfy the 20% down payment. You make a solid income for your 20s and I strongly believe you will find that yourself in a better position for the long term by waiting.

Best wishes.

* Roth IRA: Yes.


* Taxable: DBR gave a good example where you would not reinvest. However, as you are firmly in the accumulation phase, I would be generally inclined to also say Yes.


* 401k: Possible the option may be difficult to find. Ask your provider and you will get the correct answer.

Both people and the future are funny things and can sometimes be quite surprising.

Consequently, my experiences have conditioned me throughout life to expect nothing from anyone and plan accordingly...regardless of whether or not the possibility may exist. To that extent, I could only be surprised and appreciative if there was such a gift, but it makes no difference in how I live or plan / invest financially.

YMMV.

Is financial effectiveness a function of Net worth / lifetime earning? No, this is not a useful measure. It's unreasonable to assume the ratio for someone earning for example $30k/yr should be comparable to someone earning $300k/yr. 30K/yr saving 50% is the same as 300K/yr saving at 5%. Saving rate is more important than high earning. While individual effort to save will vary, and not everyone with higher income will save more, savings rate being independent of income is unrealistic due to base levels of non-discretionary expenditures. I also don't find this metric to be particularly valuable and / or influencing my behavior in a meaningful way. Of course, I appreciate the discussion and am thrilled if it is helpful to anyone.

I think the SS advice on this forum is very good. Take it if you need to, defer it if you can. Bias your decision based on any knowledge you have about whether your expected life span is shorter or longer than the average. This. What I often see as an influence in many discussions around topics like Social Security or investing is the often strong desire to "optimize" the outcome, which is not guaranteed. Social Security: "If I delay and die before I collect, I will have left money on the table" Investing: "Backtesting suggests to me that if I modify my portfolio with a few tweaks / tilts here or there, I can get a better return than if I stuck with a more simple setup and take what the market gives me" For my...

I don't think this approach really delivers anything useful and would just pay as agreed (monthly). I understand the desire to improve ones credit score, especially when younger. Typically,the path follows your income and purchases coupled with being diligent about your finances along the way (paying on time, not carrying balances, etc.)...and takes a bit of time. In particular, as you move beyond revolving credit into installment loans (can start as small as a loan for a computer with free interest for 12 mos. which you pay off before that free interest period is up and then there is something like a car and eventually a house), you create a strong track record of being a good credit risk with increasing amounts to give you the flexibility...

Real-estate attorney is reasonably priced and I would not be involved in such a transaction without one (have also custom built a home).

We are a family of 6 with 4 cars...soon to be 5. I am a believer in buying used and while I realize prices have risen considerably in the last few years for various reasons, buying a new 52K car would be a no for me. Positively, it appears that you plan to drive the vehicle for a very long time which is great. Although I have been partial to Honda minivans over the years, Toyota has always been the close runner up and a solid car maker with a good history of reliability.

Best wishes.

* Agree - PayFlex is very wanting. Fidelity is the way to go. * Please make sure you understand what minimum account balance PayFlex may require to keep the account open. In the past, I have even written on the Fidelity transfer form: ***CASH TRANSFER ONLY - DO NOT CLOSE ACCOUNT*** People make mistakes...so I try to help them help me. :wink: * I would maintain only cash in PayFlex and not create additional complexity by investing in stocks, etc. Just decide how often you want to deal with the transfer paperwork and keep it simple. * You can complete and send the Fidelity form via their process. Do not hesitate to call them if you are unsure about the form. For example, you want it to be clear that it is a cash transfer. In my case, I found...

* Agree - PayFlex is very wanting. Fidelity is the way to go. * Please make sure you understand what minimum account balance PayFlex may require to keep the account open. In the past, I have even written on the Fidelity transfer form: ***CASH TRANSFER ONLY - DO NOT CLOSE ACCOUNT*** People make mistakes...so I try to help them help me. :wink: * I would maintain only cash in PayFlex and not create additional complexity by investing in stocks, etc. Just decide how often you want to deal with the transfer paperwork and keep it simple. * You can complete and send the Fidelity form via their process. Do not hesitate to call them if you are unsure about the form. For example, you want it to be clear that it is a cash transfer. In my case, I found...

* Agree - PayFlex is very wanting. Fidelity is the way to go. * Please make sure you understand what minimum account balance PayFlex may require to keep the account open. In the past, I have even written on the Fidelity transfer form: ***CASH TRANSFER ONLY - DO NOT CLOSE ACCOUNT*** People make mistakes...so I try to help them help me. :wink: * I would maintain only cash in PayFlex and not create additional complexity by investing in stocks, etc. Just decide how often you want to deal with the transfer paperwork and keep it simple. * You can complete and send the Fidelity form via their process. Do not hesitate to call them if you are unsure about the form. For example, you want it to be clear that it is a cash transfer. In my case, I found ...

I’m super surprised that the majority of posters are seeing social security as a maximizing lifetime income sum rather than a longevity insurance. Why the hesitancy to draw down on your retirement savings while waiting for an inflation protected annuity guaranteed to grow by 8%/year between 62-70? Retirement savings are designed to be de accumulated in retirement. Bogleheads are very oriented towards attempting to optimize every aspect of finances, and life in general, so it's not surprising to me. This. The desire to “optimize” and “maximize” can have a strong influence on people. Some folks conducting back-testing in the attempt to discover the “secret sauce” of out performance, often resulting in a more complex portfolio which is simply...

The people who wait until 70 because it provides a higher survivor benefit likely did not save enough money to carry them through retirement. They need the guarantee of the higher benefit to ensure the surviving spouse has sufficient income. I don't think that's necessarily true. From the posts I've seen on this Forum, the people who can afford to wait are doing so because SS is an inflation-protected income stream, which is hard to duplicate with investments. They would rather pull from investments prior to 70 in order to maximize the inflation-protected income stream later on. That said, the average BH'er is a lot more well off than the average American. :) I also do not think this is true. For myself, I think of waiting until 70 as form...

Given your resources (and still growing), makes sense to me to continue filling up the 529 space and gift it downstream.

Some initial comments: * Based upon what you provided my starting assumption is your annual expenses in retirement are the same as now: $132K * If you retire early at age 50, I would utilize a greater multiple of expenses versus the standard 25x. Opinions may vary, but let's use 33x as an example. $132K * 33 = $4.3M portfolio needed to support the longer retirement. Food for thought as you mentioned that you thought 3M was sufficient (maybe you are using different assumptions). * Don't beat yourself up about the mortgage. There are far worse things...you are in good shape. * I think you could invest and increase you safety net a bit....6 mos. of expenses or a bit more depending on how you feel about it. Longer term, it is often recommended ...

I think you are right to be giving a lot of consideration about when to retire and your claiming strategy as it can can have significant implications over the long term. Not surprisingly, each person's comfort level about what is sufficient for their retirement and all the unknowns that may transpire during that period. If the risks you are thinking about appear, is your portfolio setup resilient enough to weather those potential storms? Delaying social security is a form "insurance" to help reduce the chance of running out of money...for both you and your spouse. * 60K annual expense = $1.5M portfolio @ 4% withdrawal rate * Does your annual expense projection also take into account "lumpy" and / or unexpected expenses t...

TravellingTechOnFire wrote: ↑Mon Feb 27, 2023 6:41 pm Dang, this makes me really want to never use a debit card. I really need to consider going 100% credit card for all transactions.

That is what I do.

The way I see it is that if my debit card is compromised, it is my money that has been taken and needs to be recovered. In the case of the credit card, it is the bank’s money that needs to be recovered and I remain whole the entire time.

Easy choice for me.

Local large bank (Chase): because you sometimes need local presence to get things done. Small amount. I don’t love Chase, but it serves my purpose.

Online large bank (Cap One): meets my needs, no issues in my own experience (some others have had the opposite). Main accounts for bills / other, etc.

Any bank / credit union with good promotions: Typically 1 or more accounts in a given year to squeeze out a little extra juice (ex: 25k for 90 days = $600)

With bonds you will have interest rate risk…thus the overall return may work out better or worse than you expected.

If that is ok for you, then great. Otherwise, you may wish to consider other investments.

As far as the setup to achieve what you want, my bias would be toward simplicity.

Doesn’t matter. Whatever feels good to you.

I also don't worry too much about the scenario described. I try to be practical. Of course, I have learned that one person's practical is someone else's "too much" or "not enough". To each their own. For myself: * Facial recognition for phone unlock (can't steal my password) * auto-lock: 30 seconds (not much time) * Generally do not access financial accounts via apps in my phone (not much to work with) - Mainly only checking so I can take advantage of easy check deposits via phone * If someone gained access to my phone: - Authenticator also requires a code (getting in the phone itself is not enough) More generally * Authenticator where possible * 2FA if otherwise not available - e-mails - financial accounts I am sure the...

I tried it long ago (FM) when I was very interested in international along with tilting, etc. I am very satisfied to have reconsidered my thinking including the value of simplicity in ones portfolio and completely reworked my previous portfolio from something like 10-12 investments to 4 (VTI / VXUS) and (BND / BNDX). Why do you think it might be a good idea for your portfolio? How much do you think you would invest? If you do not invest a sufficient % to make a difference in your portfolio, I wouldn't even bother thinking about it. More generally, I would encourage you not to underestimate the value of simplicity and resist the desire to "optimize" your portfolio with various tidbits and tilts (your own "secret sauce") w...

* Age 50

* Current HSA balance: 55K

* 100% invested in VTI

My current plan is to continue contributions and not touch the funds until retirement.

* Triple tax advantaged

* Past and current expenses including Medicare premiums

* I can use them for both myself and my spouse for qualified medical expenses


Future health is unknown and medical expenses can be significant. I see the HSA as another component of a robust / diversified portfolio to provide funding and flexibility for a key expense.

retire2022 wrote: ↑Sat Feb 25, 2023 2:39 pm Op

If one reads through the BH wiki “getting started” and gone through 30 plus years of investing in the lazy portfolio I don’t see the need for one.

My life of 34 years of investing 2 million portfolio all most all diy.

The heavy lifting is live below one means contribute DCA all in lazy portfolio and read this forum all one needs.

+1

This has been my experience as well. I recognize that some people are more naturally interested than others, but no one will care more about your money than you…and high likelihood you will do it better with the help of the knowledgeable and generous peeps on this forum.

* Sharing is preferable option to me if reasonably doable. * if 3 cars are needed, I would be interested in another used one to minimize overall costs including insurance. The great thing about used cars is you can already know which ones are the likely duds. * In my view, DD drives what we offer and typically oldest vehicle. If we are buying a used car for one of the kids (we have 4 and small fleet of cars), we are happy for them to be involved and share their preferences as long as it meets our criteria: * What we are willing to spend * Not to exceed a max mileage or excessive amount relative to the age of the car * JD power quality and reliability rating in the 80s Has worked out well for everyone so far. Nonetheless, the final decision ...

Zillow estimate means nothing to me.

Look at the recent sale prices for similar houses / area and you get a better picture while keeping in mind the trend of the local market (prices rising or falling). One hint is if you see sellers dropping their price since initial listing.

I certainly have no idea what will happen. However, I am not encouraged by valuations with CAPE currently at ~30. Of course, that doesn’t mean investors wont push it even further upward….we shall see.

Congratulations on your first post! Some initial questions/ comments: * General: - Do not underestimate the value of simplicity in your portfolio. Minimize the number of ETFs /Funds to 3-4 max. Much easier to manage for the long term. - How many children? (I assume very young, long time before college) - Wife is no longer working outside the home? (not entirely clear to me) - Are you sure about your tax bracket? I ask because your annual contributions of $70,500 on income within the 12% MFJ tax bracket doesn't seem quite right to me? - PCS...Civilian Permanent Change of Station? (if so, I learned something new!) - Would be great if you could include the names of the funds as we may not be familiar with all of them / have to look them up. - ...

* Emergency funds: great. Should be invested in very safe instruments so it is there when you need it. * Mortgage @ 2.5%: Fantastic as you have a very beneficial setup that provides you: - Hedge against inflation - Liquidity - Leverage for further investments (can contribute more during the accumulation phase for example) Unless you have more money than you know what to do with, I would be very reluctant to do anything with this debt other than to pay as agreed. * Individual stocks and / or active funds: higher costs, more risk, and with no guarantee of better performance. You are simply rolling the dice and hoping for the best based upon your "special sauce" selections. * Simplicity: Do not underestimate the value of simplicity i...

sc9182 wrote: ↑Thu Feb 16, 2023 5:22 pm Keep chugging along .. be feast/famine .. btw - you are doing decently for typical age 40 cohorts ..

10-15 years is a long way to go/project .. keep working .. saving and investing — this is how, you got here (good to be !!) — continue to plug along ..

This.

MrJedi wrote: ↑Fri Feb 17, 2023 10:13 am The amount is trivial so do whatever makes you spend less time fretting over this. I would just let it sit. Or you can find a mutual fund to drain it into since those can be invested to the penny if something non zero bugs you. With the relatively high interest rates you may generate a little bit of money next month too from interest in the settlement/cash fund. Then you will need to revisit again. Or find something better to do.

+1