Search found 213 matches

by mass_biker
Wed Sep 23, 2020 5:26 pm
Forum: Personal Consumer Issues
Topic: Just Ordered Peloton Bike
Replies: 165
Views: 17087

Peloton content

One consideration - and this is coming from someone who has used 1) old TdF and Belgian Classics DVDs and VHS tapes while on rollers, shifting up/down for intervals 2) old Tdf and Belgian Classics videos on YouTube on a smart trainer (KICKR) toggling the power/resistance on my Wahoo app up/down 3) T...
by mass_biker
Wed Sep 23, 2020 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off sub 4% mortgage interest rate early
Replies: 167
Views: 14664

Re: Paying off sub 4% mortgage interest rate early

Has anyone come up with a good rule of thumb of % or x of expenses net of a mortgage payoff in "liquid assets" even before ER or FIRE or whatever (i.e. still working). Piggybacking on an earlier poster who noted that in one's earlier working years, "time in the market" makes all the difference, and ...
by mass_biker
Tue Sep 22, 2020 10:08 am
Forum: Personal Consumer Issues
Topic: Just Ordered Peloton Bike
Replies: 165
Views: 17087

Peloton perspective

I am a former competitive cyclist and am still pretty serious about it. My "pain cave" has rollers, a smart trainer for bike stuff. And a Concept 2 erg. We waded into the Peloton ecosystem this past year and the whole family loves it. That last piece is important - "whole family". While I get a lot ...
by mass_biker
Mon Sep 21, 2020 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Paying off sub 4% mortgage interest rate early
Replies: 167
Views: 14664

Re: Paying off sub 4% mortgage interest rate early

We refi'd our investment property into a HELOC.

The new rate was less than the original (30 year fixed), and obviously interest only.

We may chose to pay if off in full in the next year or so depending on liquidity needs (but keep the HELOC open in case liquidity needs emerge).
by mass_biker
Sun Sep 20, 2020 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Paying off sub 4% mortgage interest rate early
Replies: 167
Views: 14664

Re: Paying off sub 4% mortgage interest rate early

To the poster who paid of the mortgage with proceeds from VWALX...did you still retain the "stub" position of VWALX post-mortgage pay-off? Considering the same strategy and wondering who else out there utilizes VWALX as part of their long term taxable AA (and what the optimal % exposure ought to be ...
by mass_biker
Thu Sep 10, 2020 3:47 pm
Forum: Personal Investments
Topic: Immediate Annuity Satisfaction or Regrets?
Replies: 66
Views: 4506

Re: Immediate Annuity Satisfaction or Regrets?

Also, "not me, but my parents". They bought one ~ 2 years (and many bp higher in 10 year UST) ago. It was for the same "set it and forget it" reasons. It's been a great source of stability for their/my financial planning. Between the SPIA $ and their SS, they have $ left over every month. It's not a...
by mass_biker
Fri May 15, 2020 4:17 pm
Forum: Personal Investments
Topic: Should we sell our rental?
Replies: 31
Views: 2284

Re: Should we sell our rental?

Timely thread. We are 10 years into owning a rental in metro Boston. It has always been rented out. More recently, we have rented it out for 2 year leases. We began renting it out when we moved to another Northeast city. As time went on, and as our other assets grew (taxable, tax deferred etc.), we ...
by mass_biker
Mon May 11, 2020 1:38 pm
Forum: Personal Consumer Issues
Topic: Regret Concept 2 Model D purchase
Replies: 24
Views: 2723

Re: Regret Concept 2 Model D purchase

No regrets at all. I am a former competitive runner + cyclist. I find it a great complement to running and cycling with the standard set of workouts (2k, 5k, 1:40/20 repeats etc.) making things reasonably varied. In not more than 25-30 min, I get a great workout and can push myself pretty hard witho...
by mass_biker
Mon May 11, 2020 1:18 pm
Forum: Personal Investments
Topic: Payoff mortgage via HELOC strategy...critiques?
Replies: 3
Views: 405

Payoff mortgage via HELOC strategy...critiques?

Dear BHers - so we are at a fork in the road with our rental property. It is rented out - now going on its 10th year - in a relatively HCOL area. The rent covers the mortgage and then some. We have typically rented it out for 2 year lease terms. We are considering paying it off. Doing so would requi...
by mass_biker
Thu Apr 30, 2020 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 137
Views: 9446

Re: Trying to lower $800k tax on short term capital gains. Do conservation easements work?

As someone who has had earnings/investment windfalls along the way...and tax liabilities to go with them, we have 1) set up a DAF to help manage the tax liability quickly/effectively (highly recommended!) 2) leverage the DAF to give material amounts to our causes to max out matches from corporate sp...
by mass_biker
Thu Apr 30, 2020 12:05 pm
Forum: Personal Investments
Topic: pay off mortgage vs. invest in the time of covid
Replies: 19
Views: 2765

Re: pay off mortgage vs. invest in the time of covid

Another consideration: - refinance your existing mortgage into a HELOC (use the new HELOC to pay off the mortgage) - the HELOC will be drawn - then pay off the HELOC with a draw on your investment assets You are debt free. But if you have a need for liquidity, tap the HELOC. One rate I saw for a HEL...
by mass_biker
Thu Apr 30, 2020 6:34 am
Forum: Personal Investments
Topic: pay off mortgage vs. invest in the time of covid
Replies: 19
Views: 2765

Re: pay off mortgage vs. invest in the time of covid

There are some common themes here that seem to be emerging on the forum given the combination of 1) low rates 2) concern about equity valuations -i.e. do we keep investing as markets rise in spite of all the bad news? 3) concern about changing job security/certainty - see #2 above... Some considerat...
by mass_biker
Tue Apr 28, 2020 10:11 pm
Forum: Personal Investments
Topic: Payoff investment property => more /less risk tolerance
Replies: 5
Views: 452

Payoff investment property => more /less risk tolerance

Been noodling this one for a while - but as I think about the current mortgage rate on my investment property, I realize that I can pay it off lickety-split and basically earn that rate (4%) risk free with cash in hand/muni/govt funds (all in taxable). I figure the rate of the liability that I defea...
by mass_biker
Mon Apr 27, 2020 12:55 pm
Forum: Personal Investments
Topic: LT muni vs. LT treasury
Replies: 15
Views: 902

Re: LT muni vs. LT treasury

Good question. And yes, considering how do I future proof my portfolio in terms of making these allocations, and sticking with it.

That's the goal at least.
by mass_biker
Mon Apr 27, 2020 11:33 am
Forum: Personal Investments
Topic: LT muni vs. LT treasury
Replies: 15
Views: 902

Re: LT muni vs. LT treasury

All - many thanks for the responses.

Question - are folks utilizing the Permanent Portfolio weightings in their real life portfolio mixes? I have some of the building blocks. Considering taking the plunge.
by mass_biker
Sun Apr 26, 2020 1:28 pm
Forum: Personal Investments
Topic: LT muni vs. LT treasury
Replies: 15
Views: 902

Re: LT muni vs. LT treasury

Thanks all for the suggestions on munis vs. tsy...the comment on duration differences is well argued. One other consideration - how do people reconcile the allocation to the longest-dated treasuries given where we are in rates? Or is the idea that in higher rates or lower, the combo of long dated tr...
by mass_biker
Sun Apr 26, 2020 12:36 pm
Forum: Personal Investments
Topic: LT muni vs. LT treasury
Replies: 15
Views: 902

LT muni vs. LT treasury

If some aspects of the "permanent portfolio" have merit - gold, broad stock market index fund, cash, etc, - have BHers considered the use of long term investment grade munis (i.e. VWLUX) over a long term treasury? Granted, the default rate on IG long dated munis is not zero, but is the extra spread ...
by mass_biker
Sun Feb 23, 2020 4:21 pm
Forum: Personal Investments
Topic: HELOC on rental property
Replies: 3
Views: 541

HELOC on rental property

We have a rental property in a HCOL area - market value ~ $1.25m, about 50k in annual rental income. Very stable tenants - they are on the second of 2 year leas terms. We owe about 300k on this property (~20 years left on the mortgage). We net a bit shy of $2k/month after taxes, insurance etc. If I ...
by mass_biker
Mon Jan 20, 2020 4:28 pm
Forum: Investing - Theory, News & General
Topic: Annuities as bond surrogate
Replies: 16
Views: 1358

Re: Annuities as bond surrogate

Thank you all. When framed as "frozen bonds" that makes all the sense in the world. I've been calculating SWRs on various asset mixes and at various times (i.e. 8 years from now, 15 years, at age 70 etc.). The presence of an annuity stream (nearer term - certainly before 70 for tax favored plans/RMD...
by mass_biker
Mon Jan 20, 2020 8:50 am
Forum: Investing - Theory, News & General
Topic: Annuities as bond surrogate
Replies: 16
Views: 1358

Annuities as bond surrogate

Has anyone considered the use of deferred annuities or SPIAs in favor of fixed income in their taxable portfolios? Our tax advantaged (401k, 403b etc,) portfolio is 100% equities. Our taxable portfolio is split 50/50 equities and munis. High 7 digit portfolio in total ex real estate. Good likelihood...
by mass_biker
Sun Nov 03, 2019 7:39 am
Forum: Personal Investments
Topic: More 1031 questions
Replies: 0
Views: 243

More 1031 questions

We have a townhouse in a Northeast city that has been rented (CF positive) for the last 10 years; current tenants have 1 more year on their lease. We are likely to sell this townhouse in 3 years. In terms of valuation, I calculate the FCF yield (using current market value) as barely keeping pace wit...
by mass_biker
Sat Aug 24, 2019 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Cash for non-qualified stock options at a private company
Replies: 2
Views: 164

Re: Cash for non-qualified stock options at a private company

I had the same offer some 7+ years back. Options that could be "cash settled" vs. letting them ride. It is important to remember that options are either worth something (above the strike) or worth nothing (below the strike). In my situation, our company was valued once a quarter; the valuation was f...
by mass_biker
Sat Aug 17, 2019 9:28 am
Forum: Personal Investments
Topic: Carry taxation
Replies: 0
Views: 443

Carry taxation

Odd question to be asking the BHers given that it is more "PE" than anything else - but - in a potential job situation where a piece of the target total comp is carry/promote on the underlying investment/business, should one be assessing the impact as net of LT of capital gains taxes at some exit po...
by mass_biker
Thu Aug 08, 2019 7:39 am
Forum: Personal Investments
Topic: 1031 exchange question
Replies: 3
Views: 457

1031 exchange question

Q - I have a home in metro Boston that has been rented out for the past ~ 10 years. It cash flows decently and has appreciated materially since purchase. The current tenants have about a year left on the lease and I am beginning to weigh the implications of a sale of the property and the 1031 rules....
by mass_biker
Mon Jun 10, 2019 9:45 pm
Forum: Personal Consumer Issues
Topic: I'm thinking about buying a supercar anyone here done this and feedback?
Replies: 241
Views: 16516

Re: I'm thinking about buying a supercar anyone here done this and feedback?

One vote here for the sleeper supercar...went through a similar decision making progress a while back and pulled the trigger on a supercar (to me) that is truly a sleeper/everyday driver. 2018 AMG wagon. To me - the best of both worlds. Highly recommended (and if you can wrap your head around the de...
by mass_biker
Thu Jun 06, 2019 5:52 am
Forum: Personal Consumer Issues
Topic: Does a big family need 2 big cars? Question for 3 kid+ families
Replies: 58
Views: 4598

Re: Does a big family need 2 big cars? Question for 3 kid+ families

3 kids. Family car/school hauler = minivan w AWD (Sienna) -> 3 rows My car/daily driver = station wagon w AWD -> 2 rows Kids are 15/9/6 - all 5 of us can ride in it pretty easily. Even the bigger kid can sit in the second row between the two others (in boosters). When I got my car, a criteria was be...
by mass_biker
Wed Jun 05, 2019 5:31 am
Forum: Personal Finance (Not Investing)
Topic: W-2 earner looking to lower effective tax rate
Replies: 33
Views: 4323

Re: W-2 earner looking to lower effective tax rate

Same situation - to consider 1) max out 401k 2) TIRA/back door ROTH 3) HSA/HDHP 4) Deferred comp if available 5) 529s (for our state) 6) After tax $ in muni bond funds for taxable < don't discount this... I echo other posters' views on deferred comp. Yes, it is an unsecured liability, but are you in...
by mass_biker
Tue Oct 02, 2018 9:35 pm
Forum: Personal Investments
Topic: Deferred comp contributions
Replies: 5
Views: 751

Re: Deferred comp contributions

A variation on the last response - my NQ plan had a "re-deferral" option - whereby upon a separation of service, I would defer the first distribution (of five) for another five years. This was not apparent in the plan documentation - I had to speak with someone in HR to find out. So that is what I c...
by mass_biker
Mon Aug 27, 2018 4:06 pm
Forum: Investing - Theory, News & General
Topic: Best way to sell long held mutual fund
Replies: 13
Views: 1632

Re: Best way to sell long held mutual fund

Agree re: DAF.
Did the same for the VGHCX that my wife and I owned for almost 15 years. Wonderful fund. Horribly tax inefficient.
The contribution into the DAF a few years back felt great.
We are now beginning to make distributions from the DAF - which feels even better.
by mass_biker
Fri Jun 29, 2018 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred Comp good idea?
Replies: 25
Views: 3253

Re: Deferred Comp good idea?

I used this while at my former co. - it was particularly useful in years when tranches of PRSUs were coming due. The options permitted participants to defer 50% of base and 100% of bonus. The fund choices were pretty varied. However, I was able to do what was called a "deferral of distribution" (it ...
by mass_biker
Wed Jun 20, 2018 7:02 am
Forum: Personal Investments
Topic: Calculating safe withdrawal rate (dialing it back)
Replies: 8
Views: 1433

Re: Calculating safe withdrawal rate (dialing it back)

Appreciate all the input - the process of moving from an all-encompassing gig where my time is clearly not my own, and demands take precedence over everything is not easy for me. It's good to feel needed/necessary - a long way from 10 years ago when I was RIF'd in the Great Financial Crisis - but I ...
by mass_biker
Tue Jun 19, 2018 4:23 pm
Forum: Personal Investments
Topic: Calculating safe withdrawal rate (dialing it back)
Replies: 8
Views: 1433

Re: Calculating safe withdrawal rate (dialing it back)

delamer - excellent point. I'm stress-testing the withdrawal to expect the worst. But to your point, in 13 years when the youngest is done with high school, and +5 years past that, when done with college (assuming the 529s hold in there), the burn rate ought to be headed lower. As I read this, my co...
by mass_biker
Tue Jun 19, 2018 11:23 am
Forum: Personal Investments
Topic: Calculating safe withdrawal rate (dialing it back)
Replies: 8
Views: 1433

Re: Calculating safe withdrawal rate (dialing it back)

Tamarind - to answer your questions: 1) wife is encouraging me to consider dialing it back a bit; she is reentering the workforce after ~ 10 years at home and could use someone around a bit more 2) the 300k/spend estimate is high; realistically it is somewhere $200-250k - but I wanted to highside it...
by mass_biker
Tue Jun 19, 2018 5:15 am
Forum: Personal Investments
Topic: Calculating safe withdrawal rate (dialing it back)
Replies: 8
Views: 1433

Calculating safe withdrawal rate (dialing it back)

Thank you all for your answers to my prior posts on "Plan B" or contemplating early retirement. Per your advice, I've tried to quantify the various buckets of assets and would like your input on a safe withdrawal rate if I decide to step back from my current gig or dial it back down. While my work i...
by mass_biker
Mon May 14, 2018 5:23 am
Forum: Personal Investments
Topic: Early Retirement - aka - plan B.
Replies: 7
Views: 2257

Re: Early Retirement - aka - plan B.

Very helpful; and I totally forget about the ability to tap into tax advantaged accounts early. Thank you. I've always bifurcated between taxable and tax advantaged; but you're right, it's all one pot available for withdrawal. My default mechanism has always been to keep working to build cushion eit...
by mass_biker
Sun May 13, 2018 9:33 pm
Forum: Personal Investments
Topic: Early Retirement - aka - plan B.
Replies: 7
Views: 2257

Early Retirement - aka - plan B.

Do any of you BHers model out a plan B scenario - i.e. ER if there is a change to the current gig (i.e. roles, responsibilities, geography etc.) I'm trying to bifurcate the role of taxable and tax deferred/exempt monies in my investment strategy and how assumptions on either could lead me to choose ...
by mass_biker
Mon Apr 30, 2018 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: 1031 exchange - a twist
Replies: 2
Views: 540

Re: 1031 exchange - a twist

Yes - I will (and do) have a primary address elsewhere. Just thinking through if there is an angle here to roll one property into a multi family and then use one of the apartments in the multi family for 3 days a week or so.
by mass_biker
Mon Apr 30, 2018 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: 1031 exchange - a twist
Replies: 2
Views: 540

1031 exchange - a twist

After leaving the Boston area some 8+ years ago, we rented out our home. It has been rented, and cashflowing positively, since then. Needless to say, home prices in metro Boston continue to surprise on the upside and our appreciation from cost basis has been meaningful. My work has changed over the ...
by mass_biker
Mon Apr 23, 2018 5:33 am
Forum: Personal Finance (Not Investing)
Topic: How long have you been unemployed?
Replies: 97
Views: 12676

Re: How long have you been unemployed?

RIF = "reduction in force", so yes, you're right. When I was RIF'd, I tried doing what you mentioned at the end - focusing on personal goals. Having started working straight out of college under immense pressure to start paying back student loans and knowing there was little/no parental support comi...
by mass_biker
Sun Apr 22, 2018 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: How long have you been unemployed?
Replies: 97
Views: 12676

Re: How long have you been unemployed?

Employed post college until the GFC - not a great place to be if your job is investments.
Following the trifecta of Lehman + Bear + AIG, found myself on the bench in late 2008.
Re-employed mid 2009.
That RIF was the best thing that ever happened to me and my family.
by mass_biker
Sun Feb 18, 2018 8:42 am
Forum: Personal Investments
Topic: To buy or not to buy in Boston for Investment
Replies: 18
Views: 2183

Re: To buy or not to buy in Boston for Investment

We own an investment property in Boston metro. We got there "by accident" as this was our primary residence until we moved away. Originally, we thought our move would be temporary and we would be back in the area - thus we rented it out. That was 9 years ago. The vacancy rate in what I consider "met...
by mass_biker
Sat Feb 10, 2018 9:04 am
Forum: Personal Investments
Topic: Accredited investor resources
Replies: 26
Views: 2763

Re: Accredited investor resources

My experiences with these types of investments is to a) pick a limit that is appropriate as a % of total investment assets (I exclude real estate holdings from this calc) - say 5-10% b) consider your means of funding this - either from cash on hand or security sales etc. c) consider your liquidity n...
by mass_biker
Fri Feb 09, 2018 10:57 am
Forum: Personal Investments
Topic: to superfund or not to superfund a 529
Replies: 14
Views: 2563

Re: to superfund or not to superfund a 529

I say superfund solely for the purpose of time value of money. Get time working on your side.
And not to market time, but the superfunding we did for child #2 (in the depths of the financial crisis) turned out to be one of the best financial decisions we ever made.
by mass_biker
Sun Jan 28, 2018 12:22 pm
Forum: Personal Investments
Topic: FIRECalc et al. - user experience
Replies: 11
Views: 2102

FIRECalc et al. - user experience

I use these types of monte carlo simulators to run various iterations of: - Early retirement - Increasing after tax savings - Portfolio mixes - Spend down - Other sources (rental income) and uses (college tuition) In most cases, and even when stressing the scenarios pretty heavily, I end up with a 1...
by mass_biker
Fri Jan 26, 2018 6:56 am
Forum: Personal Investments
Topic: Best option for tax-inefficient funds in taxable
Replies: 13
Views: 1340

Re: Best option for tax-inefficient funds in taxable

I had the same issue with the Vgd Health Care Fund - bought as a young 'un in taxable.
Great returns over the holding period but hideously tax inefficient.
I used it to seed my DAF (as like you, I didn't need the $ in the "immediate future") and the tax benefit was helpful.
by mass_biker
Wed Jan 24, 2018 9:07 pm
Forum: Personal Investments
Topic: Your bond allocation when you were 48
Replies: 125
Views: 9594

Re: Your bond allocation when you were 48

I am 47. I estimate 95% stocks The 5% bonds is my muni holdings in my taxable account in an amount equivalent to my outstanding mortgage. As long as I can earn > on a tax equivalent basis than my mortgage rate, I'll keep them. It also provides me with immediate liquidity if anything goes pear shaped...
by mass_biker
Wed Jan 17, 2018 6:32 pm
Forum: Personal Investments
Topic: Company moving profit sharing from 401k to deferred compensation plan
Replies: 5
Views: 797

Re: Company moving profit sharing from 401k to deferred compensation plan

My company had the same - "Non Qualified Deferred Compensation" Plan. 409A I believe. I used it during years when I had large RSUs vesting (which I could not control, nor defer). Originally my company would contribute a piece of base comp to the plan (3 year vest) but they took that benefit away. Ho...
by mass_biker
Sun Jan 14, 2018 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Sell or Keep a rental condo
Replies: 36
Views: 3403

Re: Sell or Keep a rental condo

Can someone help me with this analysis - comparable framework to the OP. Purchase price = 500k Improvements = 300k Have rented it out for 8 years, so assume depreciation is as follows 500k + 300k = 800k over 30 years - so...800/30 = 27/year x 8 = 216k in total reduction of basis Thus, current basis ...
by mass_biker
Sat Jan 06, 2018 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: How much are you putting in a 529?
Replies: 111
Views: 14952

Re: How much are you putting in a 529?

We aim to have contributed 100k per kid (we have 3) by their 5th birthday - assuming we have maxed out other buckets (401k, TIRA etc.) No exact science. Since we moved to a state that allows a modest tax credit on contributions, we also add that amount each year per 529. Our asset allocation for the...