Search found 2003 matches

by freebeer
Mon Aug 02, 2021 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: downsides to rollover VG solo 401K to VG IRA?
Replies: 2
Views: 373

Re: downsides to rollover VG solo 401K to VG IRA?

terran wrote: Mon Aug 02, 2021 2:44 pm I could be wrong, but I don't think solo 401(k)s have the same asset protections as employer plans run by businesses you don't control.
It appears you are correct. Per https://www.irafinancialgroup.com/learn ... solo-401k/ a solo 401K has same Federal bankruptcy shield as any 401K but is not considered an "ERISA" plan so if someone is "involved in a state law insolvency, enforcement, or garnishment proceeding," then there is no Federal protection and state law would apply. My state, WA, and it seems almost all others do broadly protect IRA as well as Solo 401K assets from creditors, so this seems not to be a major consideration.
by freebeer
Mon Aug 02, 2021 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: downsides to rollover VG solo 401K to VG IRA?
Replies: 2
Views: 373

downsides to rollover VG solo 401K to VG IRA?

I have a Solo 401K (100% traditional) managed by VG. In the past this let me contribute more than the normal employee limit. Now I'm 60 and in quasi-retirement - my consulting business that the 401K plan was set up in conjunction with is inactive. And even if I resume working I don't anticipate making any further contributions, certainly not needing to go above the normal contribution limit. A couple of past years I have been slightly late on my 5500-EZ filings which has caused hassle and cost. I'm thinking it would simplify things to rollover to an IRA (would stay at VG unless there is some good reason not to) but wondering if I'm missing any downsides. I also have a former employer 401K that allows partial Roth conversion so I don't reall...
by freebeer
Wed Mar 17, 2021 10:53 pm
Forum: Investing - Theory, News & General
Topic: 4% rule disputed (Again??!!)
Replies: 421
Views: 36218

Re: 4% rule disputed (Again??!!)

The other questionable implicit assumption in this paper (and many others) - is that the 30-year retirement period is an absolute. Regrettably (but fortunately for SWR), most of us will not make it that long. A 65-year-old woman has a 21% chance of reaching 95; a 65-year-old man only 12.5% (source: https://www.cbsnews.com/news/living-too-long-is-a-risk/). The probability of portfolio failure over time should be multiplied by the probability of being alive to yield the actual probability of actually running out of money, which is generally much lower than the raw 30-year rate (other than for very early retirees).
by freebeer
Sun Nov 15, 2020 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Purchase My Neighbor's Home?
Replies: 122
Views: 16915

Re: Should I Purchase My Neighbor's Home?

Why not buy and rent and then sell as a tear-down?you can control to whom you rent and then later you may get more $, and avoid hassle and cost of the year down. And new ownermsy benefit from "grandfathered" setbacks etc. if you don't year down
by freebeer
Wed Apr 15, 2020 12:22 am
Forum: Personal Finance (Not Investing)
Topic: New to Seattle area - where to buy a house
Replies: 28
Views: 3137

Re: New to Seattle area - where to buy a house

In another post you mentioned having India passports. If it's a factor for you to have a community of people who share India backgrounds, and have lots of choices of Indian cuisine, you may find that Eastside neighborhoods (Bellevue, Redmond, Sammamish) are preferable to Seattle metro neighborhoods. Of course there are people with India backgrounds everywhere but these Eastside cities are particularly known for their Indian communities, which no doubt sprung up mainly due to Microsoft. In bigger picture I second the points made by others that there are top notch public schools on the Eastside and you may not find Lakeside is the ideal fit for your kids down the road / they may not get in. I would not recommend trying to optimize house purch...
by freebeer
Fri Feb 15, 2019 10:45 pm
Forum: Personal Consumer Issues
Topic: Airbnb - cleaning fee, service fee, occupancy fee....???
Replies: 132
Views: 15341

Re: Airbnb - cleaning fee, service fee, occupancy fee....???

I see the fees at hotels too - resort fee, parking fee, and occupancy tax. Tips for doorman, concierge, and others . If one cant afford, one shouldnt stay at a place like that whether hotel or airbnb have never seen any fees like that at any hotel I've stayed at coast to coast. Any. Ever. Anywhere. Talking Maine to California. Per night "resort fees" have become increasingly common at urban hotels over the last couple years ... hotels that are in no way "resorts". I paid one last night in Seattle and have paid in Manhattan, Las Vegas, etc.. Don't like them, but it is what it is. The cleaning fee on AirBnB is another story. Since AirBnB units are typically not cleaned during stays, it is economically beneficial to both t...
by freebeer
Mon Feb 11, 2019 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: fire buyer's real estate agent
Replies: 34
Views: 3266

Re: fire buyer's real estate agent

Hi, My current real estate agent is being very pushy about putting offers on homes, some are out of our price range. The agent also asked me to consider taking out a higher interest loan to afford homes outside of our price range. What is a good way to gently end this professional relationship? We did not sign a buyer's contract. This agent took us to look at houses for 2 weekends and I feel bad wasting their time. The homes we looked at are either too expensive for our current budget or lack quality school systems, which is a deal breaker for me. So I think we will hold off on buying and continue to rent. But when we do decide to buy later, I prefer to use a different agent who is not as aggressive. That's why I want to end the relationsh...
by freebeer
Sun Feb 10, 2019 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: How do I keep from becoming irrelevant
Replies: 57
Views: 9284

Re: How do I keep from becoming irrelevant

I will be turning 38 years old this year. I got a late-ish start to my career (started around age ~27) so I am probably not as far along financially as someone who started straight out of a decent undergrad. Not as far along as I would like to be. I also tend to worry a lot. My financial projections have me retiring comfortably in my mid-60s assuming no financial disasters, or decrease in employment, and after near maxing out retirement accounts. I worry as I start to near my late 40s/50s/60s, I will face age discrimination in the workplace. I am talking about layoffs or issues finding new employment. I fear this will disrupt my financial projections/planning and I may come up short in retirement. What should I focus on to ensure I stay re...
by freebeer
Sat Feb 09, 2019 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Buying house with son [and his girlfriend]
Replies: 169
Views: 16032

Re: Buying house with son

....The legal agreement she signs stipulates that the house is sold immediately if they break up in advance. This in itself would be a deal-breaker for me. Giving a 25% owner of a somewhat illiquid asset the right to force an immediate sale on demand would not be a reasonable condition of any arms-length partnership. What if the RE market is very bad? What if the market is good but you have a strong reason to push cap gains into the next year because you have already a big cap gains in this year? What if you have already purchased plane tickets for a visit with your son in 4 months time and it will be inconvenient not to have the place to stay in? And I know from painful experience that getting mutual agreement on terms of sale and divisio...
by freebeer
Wed Feb 06, 2019 10:04 pm
Forum: Personal Investments
Topic: Real estate investment Cabo San Lucas Mexico- vacation home
Replies: 17
Views: 2505

Re: Real estate investment Cabo San Lucas Mexico- vacation home

sergeant wrote: Wed Feb 06, 2019 10:01 pm ...We warned him that if he went into Mexico we would cease paying his way through school.
Way to give him life experience!
by freebeer
Tue Feb 05, 2019 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Crazy lady backs into my car...don't think she will pay me out of pocket
Replies: 103
Views: 11849

Re: Crazy lady backs into my car...dont think she will pay me out of pocket

Never handle an accident involving vehicles with humans inside them outside of insurance. Those humans could always come back later (before the statute of limitations runs out, which can be years in the future) and blame you for medical injury that occurred during the accident. They will do this regardless of how many times (in texts or otherwise) they have admitted fault for the accident. Yes, and never go outside when it's raining either, you could get hit by lightning! "They will do this..." alarmism without any examples where someone has EVER admitted fault and paid someone outside of insurance yet then come back years later and sued for an injury - much less any data that this is a frequent occurrence - is unreasonable. I wo...
by freebeer
Mon Jan 28, 2019 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: $500k, 5-bed house -- Can he really afford it and what to do?
Replies: 30
Views: 3179

Re: $500k, 5-bed house -- Can he really afford it and what to do?

He thought he could make up for the lost rent income in LCOL with the new rental house in HCOL, and he's now asking me to manage the new house for him on Airbnb. I just don't know how he can maintain the same income level as before with a $500 house with only 5 rooms (he'll live in one). The 5 houses he owns in LCOL has 20+ rooms to generate $100k income. So, the math does pencil out if he's charging $400-$450 per room. My son is paying twice that for his share of a shared house in HCOL college town so I guess it's plausible for room rent in LCOL area. Depending on state and local laws it might be an unlawful or at least unlicensed business activity which might explain why others won't touch it. But nevertheless it is income and no I don't...
by freebeer
Sat Jan 26, 2019 10:27 pm
Forum: Investing - Theory, News & General
Topic: Unconventional investment choices
Replies: 86
Views: 11715

Re: Unconventional investment choices

Nearly 25% of my net worth is in real estate, concentrated in one county of suburban Seattle. That is, I suppose, unconventional. Even more so because some of it is operating as AirBnB guest suite spaces (quite profitably, but still not quite the same level of fire-and-forget as VG Total Stock Market).
by freebeer
Sun Dec 30, 2018 3:47 pm
Forum: Personal Investments
Topic: Opinions sought $3.5 M Net Worth
Replies: 76
Views: 11610

Re: Opinions sought $3.5 M Net Worth

I'm roughly in same situation: age, portfolio size, income (although I started down the part-time path some years ago), spending. I'm presently in between gigs although not yet calling myself retired. For what it's worth my primary personal decision factor has not been about the money it's been about the fact that so much of my life has been wrapped up in my work, which I enjoy (and don't find overly stressful). One of my friends who recently retired admitted to me that he always thought less of folks who retired early, and that was kind of a brake on his doing so himself (although he did and is enjoying it... it was on a weekday hike where we were talking about this, something he wouldn't be doing if still working). Other peoples' opinions...
by freebeer
Sun Dec 16, 2018 11:51 pm
Forum: Personal Finance (Not Investing)
Topic: Airbnb as side gig
Replies: 44
Views: 3971

Re: Airbnb as side gig

MotoTrojan wrote: Sun Dec 16, 2018 8:13 pm I also wouldn't let anyone into my home for $60/day. If you have a guest-house or room that is not tied to the rest of your home that is a different story. A co-worker of mine has been extremely successful taking this to the extreme (slice-and-dice).
Yes. I have a mother-in-law guest suite with its own separate entrance ... with lockbox for self-check-in I frequently host guests whom I never see in person. Very little impact on my day-to-day, especially as I have a reliable cleaner for changeovers. It would be a very different situation if it was a bedroom in the main living area and I don't think I would find it worth the reduction in privacy or the overall hassle factor.
by freebeer
Sun Dec 16, 2018 9:52 am
Forum: Personal Investments
Topic: Modifying McClung's Prime Harvesting guardrails
Replies: 4
Views: 991

Re: Modifying McClung's Prime Harvesting guardrails

"120% appears to be an arbitrary amount." Yes, well isn't the whole approach including starting with bond-only withdrawals rather arbitrary? My assumption is that 120% was used because it back-tests best along with the rest of the scheme. Anyway, the smaller you make the threshold for equity to bond exchanges the more this scheme will approach the results of a fixed stock/bond allocation where withdrawals for spending are made from both bonds and equities so as to preserve the allocation. The "bond only harvesting" with lumpy refresh at 120% is to me simply a cute way to implicitly get the benefits of a reverse glide-path at start of retirement which helps mitigate the dread "bear market at start of retirement"...
by freebeer
Wed Dec 12, 2018 10:33 pm
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 249
Views: 26921

Re: What Happened to you during the Financial crisis of 2007–2008

We stayed the course with 60/40 overall allocation and equity sub-allocation, re-balancing according to our investment plan. The only "marketing timing" thing I did was to buy a ladder of TIPS bonds in 2008 when the yields were very high. Well, later in the cycle we bought a larger house when RE was still a buyer's market. Both paid off well, and although that doesn't mean these were good decisions there wasn't a lot of downside risk.
by freebeer
Sun Dec 02, 2018 1:26 pm
Forum: Personal Consumer Issues
Topic: Travel To Cuba - Tips
Replies: 17
Views: 2309

Re: Travel To Cuba - Tips

I went in 2017. Some tips: 1. Bring Euros not dollars, better exchange rate (no 10% penalty) 2. Old Havana (Habana Vieja) has many nice nooks & crannies and unlike say Venice you can get away from the hordes pretty easily... if you avoid Obispo Street you immediately depart from the 90% of the tourists who never get more than a block from it. Plaza de Cristo is a good bet (El Dandy is a quite nice restaurant/bar there). 3. Salsa dancing in decreasing order of touristy-ness: Hotel Florida, El Canon, Casa de Musica Miramar, Club 1830. 4. Salsa lessons: very affordable, high quality teaching, and a must-do if you have interest in dancing. Casa de Sol is the big one but can get quite crowded. I recommend El Canon or Salsabor or PM me for te...
by freebeer
Sun Nov 18, 2018 7:15 pm
Forum: Personal Investments
Topic: Current Retirees: Do you touch your principal?
Replies: 79
Views: 10100

Re: Current Retirees: Do you touch your principal?

This seems like an anachronistic way to frame the question. Many stocks pay no dividends and there is no fundamental difference between selling some of such stock for spending and spending instead of reinvesting dividends. Either way the value of your holdings declines. So we are in that sense all spending some principal.
by freebeer
Thu Nov 01, 2018 9:54 pm
Forum: Personal Investments
Topic: retiring abroad with savings worth 200k...
Replies: 101
Views: 19266

Re: retiring abroad with savings worth 200k...

Not to pile on the negativity but just one more note: Puerto Vallarta is quite expensive by Mexican standards- a tourism-oriented place with high percentage of expats and visitors. If you wanted to live frugally in USA you wouldn't go to San Diego, or in Spain go to Barcelona. That's what your mentioned destination sounds like to me. There are plenty of places you could live cheaply in Mexico - including some with beautiful beaches - but on your budget you will have to find a place that's off the beaten track not smack in the middle of it. Some outlying areas of Puerto Vallarta's greater area are a bit more out of the way (Sayulita, Chacala, Yelapa) but are still gringo-infested = $$ that you can't afford on your budget IMHO.
by freebeer
Fri Oct 05, 2018 10:37 am
Forum: Personal Finance (Not Investing)
Topic: How much effort to close an estate and is it worth it?
Replies: 13
Views: 1809

Re: How much effort to close an estate and is it worth it?

Was your uncle employed or otherwise subject to withholding? Maybe there's already some money at IRS so that some or all of the tax liability is covered. Or if not, was he high enough income that the 2 years of taxes are likely to wipe out most of the $40K? For me, that would be the question - no need to pay extensive legal fees, so if some hours of personal effort plus a few hours of lawyer time could net $40K less $4K of legal fees, that'd be a no brainer for me. And not all property counts towards the $30K threshold so maybe simple form could still be used: (https://www.newyorkelderlawattorneyblog.com/considered-small-estate-new-york-probate-court/). If your sister is trying to get you to do all the work in order to get her slice well th...
by freebeer
Mon Oct 01, 2018 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: Why is Home Part of NW [Net Worth]
Replies: 98
Views: 8507

Re: Why is Home Part of NW [Net Worth]

... But surely the landlord is much richer than you would be, because while you were consuming the rents by living in your own house, he was intelligently renting out the place, thereby receiving both rents as well as any capital appreciation. Of course homes are part of net worth calculations, but that does not make them good investments. Say I have 2 million dollars and I can allocate it however I choose. I can buy a house for $200,000 and invest 1.8 million dollars in surrounding properties and receive rental income. Or I can buy a 2 million dollar house and invest $0 in being a landlord. My net worth starts at $2 millio n in both cases, but in 10 years, they will look very different. Which portfolio is better? Yes, homes are assets. No...
by freebeer
Mon Oct 01, 2018 9:37 pm
Forum: Personal Consumer Issues
Topic: city water sewer vs well septic
Replies: 36
Views: 4225

Re: city water sewer vs well septic

No one has discussed what I think is the big issue, at least in my suburban area that has a mix of well/public water and septic/sewer: marketability of the home. Generally speaking people fear risk, and well and septic both represent risks. They also both encumber use of the property to varying degrees. Lots of incoming buyers from the Big City have no idea about septic systems and even fewer about wells, so RE agents have to handhold them. So on average a house that's got public water and sewer connection is going to appeal more readily to some people that may be turned off by the potential risks and the encumbrances of well/septic . Larger market = higher price, all other things being equal. Of course all other things are not necessarily ...
by freebeer
Fri Sep 28, 2018 7:50 pm
Forum: Personal Consumer Issues
Topic: How to sell a 60-percent ownership share in an inherited 4-plex rental unit
Replies: 9
Views: 1438

Re: How to sell a 60-percent ownership share in an inherited 4-plex rental unit

Depending on the state and title details it may be that the majority owner could unilaterally decide to sell assuming steps were taken not to abuse the minority owner rights, for example making sire to seek highest market price. I would suggest aunt consult a local attorney if neice doesn't instantly agree to sell. Trying to sell the 60% share on its own probably not doable at anything like 60% of property value,.
by freebeer
Thu Sep 27, 2018 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Buying house in retirement??
Replies: 31
Views: 6619

Re: Buying house in retirement??

I think it's a bit of a yellow caution flag if you feel you "need" to carry a mortgage, unless you have a lot of pension+SS income relative to assets (some of which you could use to purchase a home for cash). Renting might be more prudent, and/or perhaps could you downsize a bit more than planned to fit within your retirement assets and income.

But if you do need to go the mortgage route, why not plan to buy in your last year+ of working, and suck up a long commute (/ short-term renting a pied-à-terre near your workplace) for those months in exchange for easy qualification for mortgage and, especially, lower interest rates and costs by being able to take advantage of conventional financing?
by freebeer
Mon Sep 24, 2018 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: How to evaluate a pay package of a startup
Replies: 14
Views: 2226

Re: How to evaluate a pay package of a startup

I am getting an offer from a startup with 50-100 employee. I currently work for a private medium/large company which has a well defined Bonus/401k (with vested period) matching and salary estimate. With the startup(s) I am not sure how to evaluate my salary. They are providing equity, but I am really not sure how to evaluate that. I googled around, but I am not really sure what to ask. I saw the following: https://www.quora.com/How-do-you-evaluate-stock-options-in-an-offer-from-a-startup I have seen bunch of my friends getting burned with startup and leave with no equity or worthless equity. So i would rather ask for a higher salary with a lower equity rate than go high on equity. Do folks , who joined startup mid career have some article/...
by freebeer
Sat Sep 22, 2018 8:51 pm
Forum: Personal Consumer Issues
Topic: Seattle and (Victoria OR Vancouver) next week.
Replies: 25
Views: 2250

Re: Seattle and (Victoria OR Vancouver) next week.

I would skip Rainier this time of year and instead go to Bainbridge Island from Seattle and spend night there and/or Port Townsend then take car ferry to Victoria from PT. If weather nice go to Hurricane Ridge en route if not so great go to Dungeness spit. Lots of beautiful scenery, much less traffic/tourists than staying on I-5 corridor.
by freebeer
Mon Sep 10, 2018 11:01 am
Forum: Personal Investments
Topic: Max you should invest in a 529?
Replies: 193
Views: 17323

Re: Max you should invest in a 529?

My kids are in high school and my friends have been sending their kids off to college the past few years. The more I see, the more I think Klangfool has the right idea. I would max my retirement accounts and pay down debt. It seems like there's a sweet spot for income when getting aid and scholarships. It seems if your family income is under a $150K/year there's all kind of financial aid available. Might not be your first choice school but it's out there. If you're income is over $500k then you should be fine. Save whatever you want. Anything in-between is tough. No aid available. For our in-state public university a 4 year degree costs $140K. Multiply that times 2-3 kids and it adds up fast. I don't see how the value proposition for colle...
by freebeer
Wed Sep 05, 2018 9:42 am
Forum: Personal Investments
Topic: Max you should invest in a 529?
Replies: 193
Views: 17323

Re: Max you should invest in a 529?

My kids are in high school and my friends have been sending their kids off to college the past few years. The more I see, the more I think Klangfool has the right idea. I would max my retirement accounts and pay down debt. It seems like there's a sweet spot for income when getting aid and scholarships. It seems if your family income is under a $150K/year there's all kind of financial aid available. Might not be your first choice school but it's out there. If you're income is over $500k then you should be fine. Save whatever you want. Anything in-between is tough. No aid available. For our in-state public university a 4 year degree costs $140K. Multiply that times 2-3 kids and it adds up fast. I don't see how the value proposition for colle...
by freebeer
Tue Sep 04, 2018 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Pre nups.
Replies: 70
Views: 10720

Re: Pre nups.

TheAncientOne wrote: Mon Jun 25, 2018 7:29 pm I believe it's ok for the wealthy partner who presumably is the one who wants the prenup to pay for both attorneys. However, the attorney representing the less well off partner must be completely independent of the partner paying for the prenup other than receiving compensation for this one matter. Best if the attorney is paid in full prior to the negotiations.
What is OK/musts is all based on state specific ststute and precedent. OP should get legal advice incluiding about whether separate attorneys are needed and if so how payment should be handled.
by freebeer
Tue Aug 21, 2018 10:20 am
Forum: Personal Consumer Issues
Topic: Composite Decking Material
Replies: 41
Views: 5759

Re: Composite Decking Material

Beware location-specific opinions that may not apply to you. Considerations in AZ (baking sun) or WA/OR (lots of rain) may dictate very different optimal solutions. For example in WA, my area, the ipe/ironwood type decking, if treated with a linseed or soy based oil as recommended to retain color, will tend to accumulate mold/slime/moss/etc. (that apparently feast on that oil) over winters and become dangerously slick (like ice). So you have to buy into letting it go naturally gray if you want that decking, unless you don't plan to walk on it. But that may not be a thing where you live. So I suggest you look for local advice.
by freebeer
Mon Aug 06, 2018 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Will you pay for your kids' college/graduate education?
Replies: 366
Views: 22798

Re: Will you pay for your kids' college/graduate education?

I do think the empirical stories folks give are a waste of time as I have personally seen it go every way possible of paying and not paying for college and the only consistency is there is no consistency. I agree with everything you said and especially the part quoted above. Every empirical story folks give here = single observation. Yes and I think folks should not "judge" given drastically differing circumstances. Ex and I will pay full freight for college (undergrad) for both kids, first is at expensive private school who knows about second. Our guidance to kids has been grad school is on them and they should consider and funding for same and ROI vs. working after undergrad as their responsibility. But maximum cost for undergr...
by freebeer
Sun Jul 29, 2018 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Help Please!! Contract payments not being paid
Replies: 16
Views: 2269

Re: Help Please!! Contract payments not being paid

Contact the Government Contracting Officer and let that individual know you are a sub on the Government contract and the Prime is not paying their subs. I would urge against this without at least warning the prime who after all is who hired you, not the government, who hired them. My perspective is that you are in a business creditor position and while it sucks it is part of what going IC route implies, and it's a no-no to bug that business customers unless truly no alternative (the butcher doesn't show up and bug diners at a restaurant even if they havent been paid). If you have reason to believe there is real insolvency risk vs just ownership change process snafus then I would go to a senior person and says you need a hard date to get pa...
by freebeer
Sun Jul 29, 2018 8:50 am
Forum: Personal Investments
Topic: Firecalc Says No Benefit to a Higher Equity Asset Allocation??
Replies: 47
Views: 5955

Re: Firecalc Says No Benefit to a Higher Equity Asset Allocation??

http://i68.tinypic.com/11acxnc.jpg What would you do with the following Firecalc output? This view tests Asset Allocation (Equities/Bonds split) vs. Portfolio success rate over 35 years. Note: "Success" for Firecalc is any positive balance across all 35 years. Clearly I need to be 50/50 or above. But the flatline after 50/50 seems to be telling me that the additional risk has no benefit. Granted the higher equity shares 60, 70, 80% would make my heirs happier...but if I'm nearing retirement and facing Sequence of Risk horizon, I think this is telling me that anything above 50/50 is foolish. Thoughts? The benefit is higher expected terminal portfolio value which the diagram doesn't illustrate. Importance of that brnefit depends on...
by freebeer
Fri Jul 27, 2018 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Advice For Friend Going Through Divorce
Replies: 25
Views: 4610

Re: Advice For Friend Going Through Divorce

In my divorce the “clock stopped” on separation. That is the key date. Valuations made on that date and assets split effective that date. Anything the parties do after that date really wouldn’t matter as long as it doesn’t involve obfuscation or dishonest behaviour. Divorces are usually very difficult. Mine was brutal. 15 years of bitter litigation. Asset split was simple in theory although she negotiated a much better deal than 50/50 because I agreed to let spouse and daughter stay in matrimonial home. Tough part was determining ongoing alimony. Some advice? Be generous, don’t sweat the small stuff, never be dishonest, do everything you can to maintain a good relationship with any children, finally, move on. I needed to be able to “look m...
by freebeer
Tue Jul 10, 2018 8:47 am
Forum: Personal Investments
Topic: [Considering the Vanguard LifeStrategy Fund]
Replies: 66
Views: 9492

Re: Lifestyle Strategies

Vanguard Life Strategy Fund Great Idea... I Currently hold monies in Lifestrategy Conservtive Growth Fund. I glance it it a couple times a year. It is simple and effective. :happy Thank you. I think my question is whether site members feel comfortable with have very large portions of their portfolio in 1 or 2 accounts like Lifestyle Strategies. You will find both KISS lumpers and optimize total returns slice-and-dice splitters here. That is an evergreen debate, and you seem like a slice and dicer, so fine. But almost alll slice-and-dicers would say: a) 17 funds is too many for an effective portfolio (if you have a couple big chunks in TSM and total international stock market then you probably only have 20% left to allocate, so that's maybe...
by freebeer
Sun Jul 08, 2018 11:08 am
Forum: Investing - Theory, News & General
Topic: Spending Patterns in Retirement: Retirees are Slow to Exhaust their Assets
Replies: 16
Views: 4306

Re: Spending Patterns in Retirement: Retirees are Slow to Exhaust their Assets

https://www.ebri.org/pdf/FF.300.AssetPreservation.3Apr18.pdf https://www.blackrock.com/investing/retirement/blackrock-retirement-institute/savings-and-investing/spending-in-retirement TLDR: The researchers found that after 18 years of retirement, the wealthiest group, those with $500,000 or more of savings, had retained 83% of their assets. But even those with $200,000 to less than $500,000 of savings had retained 77% of their assets, and those with less than $200,000 retained 80%. -------------------------------------------- May not be true going forward with employee pensions disappearing, future of SS unknown etc. Interesting nonetheless. One thing not mentioned (as far as I could tell from quick skim) is that this may not be an indicat...
by freebeer
Mon Jun 25, 2018 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Sudden appearance of multiple buyers real or negotiation tactic?
Replies: 61
Views: 5956

Re: Sudden appearance of multiple buyers real or negotiation tactic?

The likelihood that there are no other offers is low. That's fraud/unethical behavior and 99%+ of professional realtors and brokers value their reputation and license and would have no part of that even if the seller directed them to tell you there were bogus multiple offers. It is possible the seller's realtor went out to people who had seen the house and said "someone is close to making an offer, price is dropping to $XXXK, do you want to make an offer too?" Seller could disclose price drop but not value of your offer or other offers. If you spent days or weeks negotiating the price down its possible the seller and their agent had this in their hip pocket all along waiting for you to make a decision. If that's what happened I'd...
by freebeer
Sun Jun 24, 2018 8:01 am
Forum: Investing - Theory, News & General
Topic: Does an IPS really need to be 5 pages long to be valuable?
Replies: 64
Views: 15865

Re: Does an IPS really need to be 5 pages long to be valuable?

I can't believe no one has mentioned the IPS on 3x5 card meme or referenced on of the BH threads about it such as viewtopic.php?t=220158
by freebeer
Sun Jun 17, 2018 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Boat Liability
Replies: 7
Views: 1470

Re: Boat Liability

I know, I know...dont buy a boat...well, I am buying a boat anyway We are not talking about a yacht here...more like a 100-200K boat fishing/pleasure boat. I want asset protection though. I will have maximal boat insurance (300K) with an umbrella policy of 2 million. I live in TN. Aside from insurance, are there any recommendations on titling? (wife and I, only wife, or only me?). I have read about basic LLC filings and boat titling through the LLC (these seem cumbersome and I question whether they would even hold up in court given they are not real corporations (AKA no bank account, revenue, employees...ala LLC=Me=my assets to a judge). FLP seems quite similar to the LLC route. Does anyone have any wisdom on how to title the boat or any o...
by freebeer
Thu Jun 14, 2018 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Why is the cost of renting private rooms in San Francisco Bay Area so cheap?
Replies: 26
Views: 5147

Re: Why is the cost of renting private rooms in San Francisco Bay Area so cheap?

A hypothesis: more renters/owners in the SF Bay Area are familiar with and open to the "sharing economy" and thus the supply of private rooms is higher than in LA. After all, AirBnB started in SF, also Uber, etc. If in fact a higher % of household units offer up such rooms, then that increased supply could result in a lower price even if the base rent/purchase price of the home/apartment is higher.
by freebeer
Thu Jun 14, 2018 10:39 am
Forum: Personal Finance (Not Investing)
Topic: I was rear ended and the other guy wants a payout!
Replies: 109
Views: 12611

Re: I was rear ended and the other guy wants a payout!

If the other driver was already coming down the road they should have been visible in your side mirror, if you pulled out in a manner that forcred them to brake, maybe it really was your fault. Even if they were over the speed limit the principke is dont pukl out in a way that makes the person already in the lane have to hit their brakes. That's good defensive driving anyway.
by freebeer
Mon Jun 11, 2018 8:26 pm
Forum: Personal Consumer Issues
Topic: Can we discuss whisk?
Replies: 29
Views: 3893

Re: Can we discuss whisk?

Lagavulin
by freebeer
Fri Jun 08, 2018 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need an umbrella insurance policy?
Replies: 16
Views: 2778

Re: Do I need an umbrella insurance policy?

With your net worth less than your existing insurance coverage limits it is highly unlikely any plaintiff lawyer is going to go after you vs. just settling with insurance company even if something terrible happens. I mean you can spend the $ on umbrella but you certainly don't "need" it. Even for much higher net worth households, its utility is very debatable.
by freebeer
Sat Jun 02, 2018 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: What do you guys do on the side?
Replies: 299
Views: 39312

Re: The Side Hustle

Recently started AirBnB hosting. Have pretty automated and a reliable cleaner but it's not zero effort (although I'm 2000 miles away at the moment and had two sets of guests come through with zero hassles). So far I'm pretty happy with it. Even in my initial low-low pricing to get early favorable reviews to boost bookings later it's covering well over half my housing costs. I had MIL area that was very under-used but it means I've given up little space and even less privacy (it has separate entrance).
by freebeer
Sat Jun 02, 2018 2:52 pm
Forum: Investing - Theory, News & General
Topic: Reading Suggestions for Retirement Planning
Replies: 9
Views: 1819

Re: Reading Suggestions for Retirement Planning

Hi, I'm planning to stop working in the next 2 years (when I turn 66) when I'll begin drawing on my retirement accounts. I've been following the 3 fund approach for the past 8 years. I'd like to hear suggestions on books for reading that discuss strategies for managing your funds into retirement and especially WHAT TO DO NOW to prepare for my tapping the funds in 2 years. Thanks very much. Congratulations on staying the course since the last bear market. But you didnt mention your investment approach into/during that downturn ... So one thing to consider is sequence of return risk and what you will do if there's a big drop right after you retire. Basically you've had a 3-fund approach through a consistent bull market period. I.e. WHAT TO D...
by freebeer
Mon May 28, 2018 10:08 am
Forum: Investing - Theory, News & General
Topic: The "4% withdrawal rate"- would it apply to someone "retiring" in their 70s?
Replies: 54
Views: 6295

Re: The "4% withdrawl rate" - would it apply to someone "retiring" in their 70s?

zwzhang wrote: Sat May 26, 2018 9:16 am Interesting!
Can we think it in a simpler way? How about a 25 year TIP ladder? If the guy is 75 years old now, it will cover the expenses until he is 100 years. To me, this is safe enough.

So let's see, the $300 - 400K will buy roughly $15,0000 - 20,000 TIP (strip) per year in the 25 years ladder. Easily meets the $1000/month goal.

Why bother so much?
Isn't responsive to what sounds like a bit more need for income... OP did not say $1000/moth was the goal.

I would just recommend a 50/50 allocation and 5% annual withdrawal and call it good. Life expectancy is not linear and at age 75 the chances will be extremely low that they will outlive this and the chances of leaving a substantial inheritance will still be reasonably high.
by freebeer
Mon May 28, 2018 9:37 am
Forum: Non-US Investing
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 7896

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

German 10-year bonds yield 0.4%. I don’t see what’s attractive about them. if you read my OP perhaps you will The point is that there is not really "a big upside possible" for these low-yield German bonds, and there is also a downside from inflation risk. What you call "upside" is really only the possible avoidance of downside that would come from holding potentially cratering Italian bonds. There are many, many other investment vehicles you could choose to avoid that downside scenario, there's nothing special about German bonds. That there would be an upside from restoration of the German Mark as a currency is extremely speculative. For example you could buy a combination of an all-world stock index fund and all-world ...
by freebeer
Sat May 26, 2018 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: medicaid as early retirement medical insurance (or maybe Obamacare)
Replies: 41
Views: 5476

Re: medicaid as early retirement medical insurance (or maybe Obamacare)

datamonkee wrote: Thu May 24, 2018 8:17 pm Questions:
1. Is medicaid (Texas) a feasible medical insurance option for early retirees? What are the eligibility requirements (i had a hard time finding this online)?
2. Is Obamacare insurance a better option if you get it subsidized fully by the federal government?
I'm confused by the "early retirement" part as I thought you had to be 65 to qualify for Medicaid (barring disability and a few other special cases).
by freebeer
Fri May 25, 2018 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Additional Liability of Getting Married (Protecting Taxable accounts)
Replies: 18
Views: 2633

Re: Additional Liability of Getting Married (Protecting Taxable accounts)

Don't listen to any generic advice on this forum about marital property issues because the applicable law is highly state-specific in terms of valid form and procedure for a pre-nup, what is considered community vs. separate property, etc. You need a lawyer in your current state of residence if you both want to arrange things so as to make sure that her premarital assets stay hers but depending on the state it could be as simple as merely keeping those funds in separate account(s) and making sure to retain the brokerage statements that confirm that: a pre-nup might be overkill. Shielding your assets from creditors is another story, but it seems unnecessary to consider trust vehicle for that purpose until and unless you get to high seven fig...