Search found 2331 matches

by goodenyou
Fri Sep 18, 2020 10:06 am
Forum: Personal Investments
Topic: College Savings or “Other” Strategy
Replies: 16
Views: 914

Re: College Savings or “Other” Strategy

I saved tens of thousands of dollars in taxes by saving in a 529 plan for 3 kids. Paid full freight for three plus graduate school. I would have been hammered in taxes in a taxable account.
by goodenyou
Fri Sep 18, 2020 8:21 am
Forum: Personal Investments
Topic: Smarty Pants (not)
Replies: 9
Views: 1395

Re: Smarty Pants (not)

I am contemplating sacrificing a bit of return for reduced credit risk by exchanging some Tax-Free Intermediate Bond for Intermediate Treasury Bonds as I get closer to retirement. I have my emergency fund in HY savings at Ally and a small position relative to total NW in I-Bonds.
by goodenyou
Tue Sep 15, 2020 4:15 pm
Forum: Investing - Theory, News & General
Topic: "The Cash Panickers"
Replies: 35
Views: 6007

Re: "The Cash Panickers"

Many “panickers” are hoping for a second crash to get back in. The problem with getting out is that you lose your courage to get back in. It is never the right time.
by goodenyou
Mon Sep 14, 2020 10:41 pm
Forum: US Chapters
Topic: How many bogleheads do you know in real life?
Replies: 165
Views: 15117

Re: How many bogleheads do you know in real life?

VictoriaF wrote: Sun Sep 13, 2020 3:59 pm
goodenyou wrote: Tue Feb 19, 2019 9:39 am Boglehead-style investing is not sexy.
We are doomed to extinction.

Victoria
You can still be a sexy Boglehead even if your investing style is not sexy.
by goodenyou
Fri Sep 11, 2020 8:27 am
Forum: Personal Finance (Not Investing)
Topic: How to stop judging how other people spend/invest
Replies: 76
Views: 4738

Re: How to stop judging how other people spend/invest

Watching people make poor choices in life is painful. I often use it as a teaching moment for my kids. When we are around people that reveal their decisions on money matters, my wife and I often cringe. You can see the car wreck in slow motion.
by goodenyou
Wed Sep 09, 2020 4:41 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth
Replies: 35
Views: 2296

Re: Mega Backdoor Roth

My retirement account is with Charles Schwab. Just spoke with them. I can contribute after tax dollars and then convert this to my Roth 401k account that is housed with them. I cannot convert to another institution (my IRAs are with Vanguard). In your original post, you said the plan allowed you to...
by goodenyou
Wed Sep 09, 2020 10:34 am
Forum: Personal Investments
Topic: Mega Backdoor Roth
Replies: 35
Views: 2296

Re: Mega Backdoor Roth

I would contribute the maximum to a traditional 401(k), get the maximum match from the employer, and whatever is leftover [$57k- (employee contribution + match)] contribute as a spill-over after-tax contribution. Then, I would convert the spillover amount to a Roth 401(k). Why would the spillover a...
by goodenyou
Wed Sep 09, 2020 9:35 am
Forum: Personal Investments
Topic: Mega Backdoor Roth
Replies: 35
Views: 2296

Re: Mega Backdoor Roth

I would fill ALL potential retirement plans in any capacity (Traditional, Roth, etc.) because that space has valuable asset protection in addition to any potential tax benefits. 401k plans (ERISA protection) are near bullet-proof when it comes to any potential judgement. Are you suggesting do 457b ...
by goodenyou
Wed Sep 09, 2020 8:27 am
Forum: Personal Investments
Topic: Mega Backdoor Roth
Replies: 35
Views: 2296

Re: Mega Backdoor Roth

I would fill ALL potential retirement plans in any capacity (Traditional, Roth, etc.) because that space has valuable asset protection in addition to any potential tax benefits. 401k plans (ERISA protection) are near bullet-proof when it comes to any potential judgement.
by goodenyou
Thu Aug 20, 2020 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: Health Care Costs (California Family) - Not a political discussion
Replies: 19
Views: 975

Re: Health Care Costs (California Family) - Not a political discussion

Looks like your yearly grocery bills and healthcare costs are about the same. $36-37k/year. That is close to half your annual budget. Living the upper middle class go-go lifestyle with teenagers is very expensive. I avoid revealing what I spend per year because I would be flamed. I would limit those...
by goodenyou
Thu Aug 20, 2020 8:34 am
Forum: Personal Investments
Topic: Please review my de-risking/cash-out plan
Replies: 111
Views: 5455

Re: Please review my de-risking/cash-out plan

Klang,

You have mentioned in the past that you are in the real estate hotbed of Northern Virginia/Loudoun/Fairfax Counties. You may have a great opportunity to downsize your house and/ or move further west or even West Virginia for lower cost.

Have you contemplated this option?
by goodenyou
Wed Aug 19, 2020 8:29 pm
Forum: Personal Investments
Topic: 529 Plans - Locking in gains
Replies: 18
Views: 1543

Re: 529 Plans - Locking in gains

Just ask yourself what you believe is the possible gain by having a stock or bond exposure in a 529 with very large withdrawal rates over a very short period of time. Is it worth it?
by goodenyou
Tue Aug 18, 2020 10:50 pm
Forum: Investing - Theory, News & General
Topic: Investors Are Clinging to an Outdated Strategy — At the Worst Possible Time
Replies: 93
Views: 12102

Re: Investors Are Clinging to an Outdated Strategy — At the Worst Possible Time

nisiprius wrote: Tue Aug 18, 2020 2:33 pm This is just the "salesperson's inverse."

a) The stuff you have sucks.
b) The stuff I offer you is not the stuff you have.
c) Therefore, what I offer you doesn't suck.
Sounds like a “political inverse”.
by goodenyou
Tue Aug 18, 2020 9:51 pm
Forum: Personal Finance (Not Investing)
Topic: Did any inheritance make positive effect on your life?
Replies: 229
Views: 18957

Re: Did any inheritance make positive effect on your life?

As a teenager, I inherited what was about $37 from my mormor. I bought an orange two-person bivvy (probably cotton with a fly that was treated to shed water) and a small alcohol-burning Trangia stove. They provided my first introduction to backwoods camping and were a positive influence on my choic...
by goodenyou
Tue Aug 18, 2020 4:11 pm
Forum: Personal Investments
Topic: [Where can I invest my cash?]
Replies: 30
Views: 2982

Re: [Where can I invest my cash?]

I am not sure that an anxious or “jittery” person would be comforted by an advisor either. Once you realize that the advisor knows little more than you about the direction of markets, you will derive little comfort from them. I think you have to choose a risk tolerance (volatility that you can endur...
by goodenyou
Tue Aug 18, 2020 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Did any inheritance make positive effect on your life?
Replies: 229
Views: 18957

Re: Did any inheritance make positive effect on your life?

I don't think so for us. Our inheritance will come after we have far exceeded our financial needs. Although it is likely to be a very significant amount, it won't change how we live our lives It will change how much we pass to our children, however. After a certain point, there is a diminishing val...
by goodenyou
Tue Aug 18, 2020 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Did any inheritance make positive effect on your life?
Replies: 229
Views: 18957

Re: Did any inheritance make positive effect on your life?

I don't think so for us. Our inheritance will come after we have far exceeded our financial needs. Although it is likely to be a very significant amount, it won't change how we live our lives It will change how much we pass to our children, however. After a certain point, there is a diminishing valu...
by goodenyou
Tue Aug 18, 2020 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank Horror Story: Is this right?
Replies: 107
Views: 7993

Re: Ally Bank Horror Story: Is this right?

I had a similar situation with online paying with a twist. I paid with Quicken though Chase with an automatic electronic (physical) check that was sent in advance of the due date. It was important for the check not to be late because the late fees were outrageous. The debit was taken out of my chec...
by goodenyou
Tue Aug 18, 2020 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank Horror Story: Is this right?
Replies: 107
Views: 7993

Re: Ally Bank Horror Story: Is this right?

I had a similar situation with online paying with a twist. I paid with Quicken though Chase with an automatic electronic (physical) check that was sent in advance of the due date. It was important for the check not to be late because the late fees were outrageous. The debit was taken out of my check...
by goodenyou
Tue Aug 18, 2020 9:59 am
Forum: Personal Investments
Topic: Any downsides of not having a taxable account and spending the extra money instead?
Replies: 25
Views: 3376

Re: Any downsides of not having a taxable account and spending the extra money instead?

I made the mistake of taking my youngest daughter to New York last fall on a long weekend and she fell in love with it. Now daddy's little girl has her sights set on NYU. Tuition $53,308, guessing around $30,000 for room, board and books, so, I'm in for the better part of $350,000 . . . Take her th...
by goodenyou
Tue Aug 18, 2020 9:53 am
Forum: Personal Investments
Topic: Any downsides of not having a taxable account and spending the extra money instead?
Replies: 25
Views: 3376

Re: Any downsides of not having a taxable account and spending the extra money instead?

You may be underestimating the costs of college and all the additional costs as your children get into their late teens and early twenties. We have three children and the costs are staggering. One in graduate school, one in undergraduate school and one to start college next year. Keeping them debt ...
by goodenyou
Tue Aug 18, 2020 6:49 am
Forum: Personal Investments
Topic: Any downsides of not having a taxable account and spending the extra money instead?
Replies: 25
Views: 3376

Re: Any downsides of not having a taxable account and spending the extra money instead?

You may be underestimating the costs of college and all the additional costs as your children get into their late teens and early twenties. We have three children and the costs are staggering. One in graduate school, one in undergraduate school and one to start college next year. Keeping them debt f...
by goodenyou
Mon Aug 17, 2020 9:13 pm
Forum: Personal Investments
Topic: How stable is a Stable Value Fund?
Replies: 4
Views: 602

How stable is a Stable Value Fund?

My 401k is one of those lousy Mass Mutual high expense funds/poor choices plans. There is an option for a Stable Value/MM fund paying 1.5% with 0% expense ratio. I have read that some of these funds can lose money for various reasons beyond traditional MM funds. Should this be a concern, or is it th...
by goodenyou
Sun Aug 16, 2020 9:17 pm
Forum: Investing - Theory, News & General
Topic: Investors Are Clinging to an Outdated Strategy — At the Worst Possible Time
Replies: 93
Views: 12102

Re: Investors Are Clinging to an Outdated Strategy — At the Worst Possible Time

I would not bet against a 60/40 portfolio over the long-term. That has never turned out well for investors who said it won't work going forward because this time is different. Rick Ferri Good point, so I guess you just have to accept that returns are going to be low(er) going forward and create a d...
by goodenyou
Sun Aug 16, 2020 8:40 pm
Forum: Investing - Theory, News & General
Topic: Investors Are Clinging to an Outdated Strategy — At the Worst Possible Time
Replies: 93
Views: 12102

Re: Investors Are Clinging to an Outdated Strategy — At the Worst Possible Time

Just for arguments sake, what purpose do near zero percent bonds play in a 60/40 portfolio? How does one get 7%-8% return if 40% is zero? A ~12% return on the equity side plus a ~0% on the bond side would get you 7%-8%. Of course, returns will only be zero if interest rates are zero and simply stay...
by goodenyou
Sun Aug 16, 2020 8:23 pm
Forum: Investing - Theory, News & General
Topic: Investors Are Clinging to an Outdated Strategy — At the Worst Possible Time
Replies: 93
Views: 12102

Re: Investors Are Clinging to an Outdated Strategy — At the Worst Possible Time

6/2009, Bill Gross, at that time the famous "Bond King"--manager of a bond fund which for a while was the largest mutual fund in the world-- was quoted: Echoing views expressed by Peter L. Bernstein, Gross said that the policy portfolio is dead. A 60/40 allocation and the promotion of risky (equity...
by goodenyou
Sun Aug 16, 2020 10:07 am
Forum: Personal Investments
Topic: Talk me out of Covid 19 timing
Replies: 119
Views: 7877

Re: Talk me out of Covid 19 timing

Having close contact to physicians with knowledge in this area who claim it is going to spike and this winter will be rough. Physicians don’t know squat. I can say that because I am one with a significant knowledge of immunology and can understand the epidemiology of infectious diseases. Many got i...
by goodenyou
Sun Aug 16, 2020 9:33 am
Forum: Personal Investments
Topic: MYGAs When Nearing Retirement
Replies: 46
Views: 4610

Re: MYGAs When Nearing Retirement

This is from the Texas Life and Health Insurance Guaranty Association.

It may be of interest.

https://txlifega.org/?page_id=96
by goodenyou
Sat Aug 15, 2020 10:10 am
Forum: Personal Investments
Topic: Terrible experience with Ally bank- buyer beware
Replies: 144
Views: 9165

Re: Terrible experience with Ally bank- buyer beware

This really makes me appreciate USAA. Yeah, no kidding. Did two six figure wires this year, both received at other institution within a couple hours. Took ten minutes on the phone with USAA. Bear in mind that Ally headquarters is in Detroit, which was one of the hardest hit places for COVID early o...
by goodenyou
Fri Aug 14, 2020 9:29 am
Forum: Personal Investments
Topic: How do you manage cash flow for investing?
Replies: 26
Views: 2002

Re: How do you manage cash flow for investing?

So, over time you end up with 90% or more of your NW in mutual funds? People are comfortable with that and the inherent fluctuations that result from it? I have the Mint.com app and look at it every day and see the swings. Maybe this is the problem? Do the BH rules for being 100% index funds change...
by goodenyou
Fri Aug 14, 2020 9:13 am
Forum: Investing - Theory, News & General
Topic: Should I change my AA now? Is this 'capitulating'?
Replies: 12
Views: 1043

Re: Should I change my AA now? Is this 'capitulating'?

You're not gonna get a whole lotta love for international equities here. Many here (and probably elsewhere) are bemoaning the significant under performance of ex-US equities for more than a decade. There are many threads on whether or not an international position is even needed (based on the global...
by goodenyou
Thu Aug 13, 2020 4:38 pm
Forum: Investing - Theory, News & General
Topic: "Where Are the Liquid Alternative Shareholders’ Yachts?"
Replies: 64
Views: 5040

Re: "Where Are the Liquid Alternative Shareholders’ Yachts?"

Although I don't believe most liquid alts are a good investment, it's not fair to compare their performance to a stock megabull market. They are designed for diversification when stocks fail. Liquid alts didn't fail to outperform stocks, they failed to provide a positive return after expenses to th...
by goodenyou
Thu Aug 13, 2020 9:03 am
Forum: Investing - Theory, News & General
Topic: Allocation horizon and subdividing volatility over time
Replies: 6
Views: 441

Re: Allocation horizon and subdividing volatility over time

The discussion of cash buckets and de-risking a portfolio bleeds into the strategy of safety-first vs. probability based investing. Because, as Nisi pointed out, the length of the bear market is unknown and we cannot assume past is prologue, therefore, the proper size of the bucket is difficult choo...
by goodenyou
Wed Aug 12, 2020 11:08 am
Forum: Personal Investments
Topic: Moving to Cash?
Replies: 158
Views: 11354

Re: Moving to Cash?

Moving to cash, to me, is like shorting the market. It has that weird schadenfreude vibe to it. It would make me want to root for a continued decline so that I could someday get back in. If not, I will be left with the unenviable position of eating crow by selling high, watching low, and buying in h...
by goodenyou
Tue Aug 11, 2020 10:49 am
Forum: Investing - Theory, News & General
Topic: Won the game
Replies: 49
Views: 7580

Re: Won the game

It simply means to reduce risk after meeting your financial goals. The "game" was to construct a portfolio with a risk-reward profile that has the goal of getting to a personal financial endpoint. Stopping it means that there is less utility in the (higher) risk-on position. Am I missing something m...
by goodenyou
Tue Aug 11, 2020 9:23 am
Forum: Investing - Theory, News & General
Topic: Anyone else hoarding cash right now?
Replies: 201
Views: 21430

Re: Anyone else hoarding cash right now?

I have “excess” cash that is de-risking my portfolio. I am willing to pay for the privilege of myopic loss aversion because I have met my financial goals. If things were more stable, I would most likely deploy the cash into bond funds. Investors will likely be rewarded for their risk taking either i...
by goodenyou
Mon Aug 10, 2020 4:42 pm
Forum: Investing - Theory, News & General
Topic: Real life example of 7 digit 401k/Roth IRA portfolios
Replies: 60
Views: 6216

Re: Real life example of 7 digit 401k/Roth IRA portfolios

About 17 years. Since I own my own company, I include pension and profit in the "401k" amount to get up to the maximum. Prior to age 50, that was in the $50k/year range, and now with catch-up and increasing limits, it is $63k/year. My wife works for an international Megacorp Pharma and is also highl...
by goodenyou
Sun Aug 09, 2020 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: What percent of net worth should a persons house be?
Replies: 201
Views: 18587

Re: What percent of net worth should a persons house be?

KyleAAA wrote: Sun Aug 09, 2020 11:39 am Anywhere from 0 to 100% is the range I would shoot for. No other answer is reasonable.
Actually, for many, at some point their homes are greater than 100% of their net worth. I had student loans and a mortgage at when I first started working.
by goodenyou
Sun Aug 09, 2020 6:20 am
Forum: Personal Finance (Not Investing)
Topic: Starting divorce process - how to succeed financially?
Replies: 79
Views: 10264

Re: Starting divorce process - how to succeed financially?

If you are aiming for half his Social Security as though that would be better than what you can or will earn in the future, you have set the bar very low for yourself as a 29 year old. I doubt that you will do that based on your ambitions.
by goodenyou
Sat Aug 08, 2020 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Starting divorce process - how to succeed financially?
Replies: 79
Views: 10264

Re: Starting divorce process - how to succeed financially?

I don't think it wise to be associated with "emotionally abusive, binge-drinking and miserable human beings." in a marriage or outside of one. But, that's me.
by goodenyou
Sat Aug 08, 2020 1:58 pm
Forum: Investing - Theory, News & General
Topic: Anyone else hoarding cash right now?
Replies: 201
Views: 21430

Re: Anyone else hoarding cash right now?

Probably because gold has been universally accepted as a valuable commodity across multiple civilizations throughout the planet for thousands of years. All the investments in gold are through the stockmarket though. The average investor doesn't actually own physical gold. So I'm thinking if society...
by goodenyou
Sat Aug 08, 2020 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Starting divorce process - how to succeed financially?
Replies: 79
Views: 10264

Re: Starting divorce process - how to succeed financially?

Your SWR at 29 years of age is less than 4%. Much less. Plus, you would have no reserve assets in the event of a financial shock or contingency expense. That is, if you withdraw a lump sum out of the $1.75M, your cash flow would have to be reduced to continue the identical safe withdrawal rate. You ...
by goodenyou
Sat Aug 08, 2020 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Starting divorce process - how to succeed financially?
Replies: 79
Views: 10264

Re: Starting divorce process - how to succeed financially?

Be very very careful about work-life balance and what your goals in life are before your start down the medical education pathway. I speak from experience after practicing for 25 years in a surgical subspecialty with 3 kids and one wife. Finding the right partner and being the right partner are not ...
by goodenyou
Sat Aug 08, 2020 7:28 am
Forum: Personal Finance (Not Investing)
Topic: What percent of net worth should a persons house be?
Replies: 201
Views: 18587

Re: What percent of net worth should a persons house be?

I am weighing in only because, though I doubt a ratio of house value to net worth is valuable, I do think there should be some sort of ratio of home value to income or net worth. I just don't know how to answer the question myself. Certainly it is not reasonable to expect a person to live in a $30,...
by goodenyou
Fri Aug 07, 2020 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Custom Home Thoughts
Replies: 103
Views: 7513

Re: Custom Home Thoughts

We found a great all-brick 4k sq ft home in our area on 17 acres. It had a beautiful pool and a 4 car garage. It sold for $950K with an asking price of $1.2M. (Something fishy here). But, it was nearly 20 years old and would have taken at least $250K to bring it up to current. This could be the hom...
by goodenyou
Fri Aug 07, 2020 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: Custom Home Thoughts
Replies: 103
Views: 7513

Re: Custom Home Thoughts

I am moving out of a 5000++sq ft house that we have been in for 20 years. It is way above average cost for our area. It needs some work as it is 20 years old. We raised 3 kids in it. Pool, expensive landscaping, expensive appliances. The works. I can’t get out of it fast enough. I will be taking a ...
by goodenyou
Fri Aug 07, 2020 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: What percent of net worth should a persons house be?
Replies: 201
Views: 18587

Re: What percent of net worth should a persons house be?

I would like to keep it less than 10%, especially in retirement. Unless you live in a VHCOL area where there is sustained real estate appreciation, I think it is unwise to keep a large percentage of your NW in a home. Currently, we are at 6% and paid off. We are contemplating taking a loss on the s...
by goodenyou
Fri Aug 07, 2020 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: What percent of net worth should a persons house be?
Replies: 201
Views: 18587

Re: What percent of net worth should a persons house be?

I would like to keep it less than 10%, especially in retirement. Unless you live in a VHCOL area where there is sustained real estate appreciation, I think it is unwise to keep a large percentage of your NW in a home. Currently, we are at 6% and paid off. We are contemplating taking a loss on the sa...
by goodenyou
Thu Aug 06, 2020 2:11 pm
Forum: Investing - Theory, News & General
Topic: Anyone else hoarding cash right now?
Replies: 201
Views: 21430

Re: Anyone else hoarding cash right now?

Hoarding an asset that pays me virtually nothing? Why on earth would I do such a thing? I try to keep as little cash as possible on me at all times. Most investors that accumulate cash are not concerned with opportunity cost. They are concerned with preserving as much capital in the short term as p...
by goodenyou
Thu Aug 06, 2020 10:31 am
Forum: Investing - Theory, News & General
Topic: Dr. Wade Pfau is my guest on the "Bogleheads on Investing" podcast!
Replies: 279
Views: 14623

Re: Dr. Wade Pfau is my guest on the "Bogleheads on Investing" podcast!

Readers may not be familiar with finance terminology. It's helpful to define acronyms. ...but I can see how including SORR analysis could drop that age a bit. SORR - Sequence Of Returns Risk The chance that the market will tank when you need the money the most. (This is an informal definition which...