Search found 1336 matches

by bigred77
Tue Mar 28, 2017 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 31
Views: 1423

Re: Not opting for 529... anyone else?

I personally like the 529 accounts but I especially like them if you can front load them when the kid is very young. Then you really get some bang for your buck by the time they turn 18. So if you can dump $25k or more in at birth you should receive some really nice tax perks by the time they go to...
by bigred77
Tue Mar 28, 2017 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Our Risky 401K
Replies: 17
Views: 1125

Re: Our Risky 401K

yes the company stock is part of a company profit sharing plan the company had in prior years. Shares were added to the individuals 401K account. The stock has to stay in the 401K. I have heard that some employees converted their stock into various other funds offered by the 401K plan. To have the ...
by bigred77
Tue Mar 28, 2017 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Our Risky 401K
Replies: 17
Views: 1125

Re: Our Risky 401K

Is the company stock within your 401k? I'm confused. What does this statement mean: "I can not touch it before then....other than have it diversified. But I would then lose the NUA treatment" What do you mean by "have it diversified"? By NAU treatment are you referring to "n...
by bigred77
Mon Mar 27, 2017 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: House gifted via quitclaim is now under contract—what should I know regarding capital gains
Replies: 4
Views: 504

Re: House gifted via quitclaim is now under contract—what should I know regarding capital gains

Did you add in the cost to renovate the house to the cost basis?

Did also account for any depreciation recapture if you claimed the property as a rental in 2016 (my understanding is it doesn't matter if you actually claimed the depreciation or not, the IRS assumes you did when you sell it)?
by bigred77
Mon Mar 27, 2017 6:27 pm
Forum: Investing - Theory, News & General
Topic: Illusion of poverty/wealth
Replies: 30
Views: 4450

Re: Illusion of poverty/wealth

My MIL easily lives off of her pension +SS and saves some each month. She also has $1.7M in savings and growing. She feels poor and worries about running out of money. But that makes her happy, so who am I to judge? You don't have to judge and if she wants for nothing then no harm, no foul. BUT... ...
by bigred77
Mon Mar 27, 2017 6:15 pm
Forum: Investing - Theory, News & General
Topic: Are passive funds dependent on active funds?
Replies: 24
Views: 1225

Re: Are passive funds dependent on active funds?

Currently, mutual funds hold about $8 trillion in stocks or about 1/3rd of the total US market; of those mutual funds, about 70% are active and 30% are index funds. So index funds now hold about 10% of the total market. The other 90% is held either by non-fund investors or by actively managed mutua...
by bigred77
Mon Mar 27, 2017 5:52 pm
Forum: Investing - Theory, News & General
Topic: Illusion of poverty/wealth
Replies: 30
Views: 4450

Re: Illusion of poverty/wealth

I think it's worth noting that the authors seem to assume a "6% rule" whereas most Bogleheads seem to adhere to a 4% rule. So, according to them, yes, many people here have an illusion of poverty. They are not assuming a 6% rule, they are using actual SPIA pricing that anyone can go out a...
by bigred77
Mon Mar 27, 2017 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Anything unique for withdrawls from 3Fund after age 60?
Replies: 9
Views: 732

Re: Anything unique for withdrawls from 3Fund after age 60?

1.) What are your total expenses and how much are you making from your part time work both before and after your retirement contributions? Let's say they are 100k. Sounds like you plan to withdraw about 80k from the portfolio and then use 20k or earned income from your part time job, is that about r...
by bigred77
Mon Mar 27, 2017 4:49 pm
Forum: Investing - Theory, News & General
Topic: Illusion of poverty/wealth
Replies: 30
Views: 4450

Re: Illusion of poverty/wealth

Geez... the following text from the article REALLY jumped out at me: "Yet, other people feel that $5,000 a month is more adequate than a $1 million lump sum. They suffer from the illusion of poverty. Because they might be inclined to think about wealth in terms of monthly income as opposed to a...
by bigred77
Mon Mar 27, 2017 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Boston apartment hunting advice/can I afford a studio?
Replies: 32
Views: 1533

Re: Boston apartment hunting advice/can I afford a studio?

Can you live somewhere in Boston where you can get rid of the car? My impression of the Boston public transit system is that it was pretty decent. Remember, no insurance, parking, gas, maitenance, etc will pay for a lot of Ubers. I think that's fine since you have the large taxable account. Keep max...
by bigred77
Mon Mar 27, 2017 2:02 pm
Forum: Personal Consumer Issues
Topic: Need advice about massive changes in daughter's college program by dean
Replies: 52
Views: 3499

Re: Need advice about massive changes in daughter's college program by dean

Texas Senate Bill 1 (an appropriations bill) is expected to reduce funding significantly to Texas state colleges and universities. There may be no place to transfer to. Voters wil have to vote to raise their taxes to help the situation. Put yourself in the dean's shoes: The dean may not even have a...
by bigred77
Mon Mar 27, 2017 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Massive Student Loan Debt - Girlfriend
Replies: 86
Views: 6149

Re: Massive Student Loan Debt - Girlfriend

If the PSLF program were to fail, it seems paying back the debt would be insurmountable on her income alone, presumably leaving me to absorb the payments. This is probably late, but one thing that has been bothering me about your initial post is why you feel $175K of debt is insurmountable for some...
by bigred77
Mon Mar 27, 2017 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Weathering sell-off days like today
Replies: 106
Views: 5569

Re: Weathering sell-off days like today

For those of you that invest, how do you keep a cool head on a day such as today to not panic and ride through this sell-off? Maybe this will help. Of all the famous quotations Mike Tyson has spawned over the past quarter century, my favorite is this: "Everybody has a plan until they get punch...
by bigred77
Mon Mar 27, 2017 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Massive Student Loan Debt - Girlfriend
Replies: 86
Views: 6149

Re: Massive Student Loan Debt - Girlfriend

My generation (barely a millennial) has been told since we could understand language to go to a good college with absolutely no regard to making it a cost/benefit decision. There is no education on how long it takes to pay off 100k of student debt or even what the payments would be. I agree that so...
by bigred77
Mon Mar 20, 2017 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: What would it take to buy a house in our neighborhood?
Replies: 20
Views: 1371

Re: What would it take to buy a house in our neighborhood?

Could probably afford a $1M property right now with 10% down and a mortgage equal to 3X your income. The longer you can keep renting, and saving, and growing your income the better off you will be. That said, if you found the perfect property tomorrow for 900k I think you could easily pursue it. I d...
by bigred77
Mon Mar 20, 2017 10:54 am
Forum: Investing - Help with Personal Investments
Topic: Risks of Margin Account (VBS)
Replies: 5
Views: 275

Re: Risks of Margin Account (VBS)

If you want access to a margin enabled account, then Vanguard would not be my custodian of choice. I would probably use Interactive Brokers. They are much cheaper. If you don't want or need margin, then Vanguard is the place to be if you want to use their mutual funds and/or ETFs. Just make sure the...
by bigred77
Thu Mar 16, 2017 12:42 pm
Forum: Personal Consumer Issues
Topic: selling home/lease back/long escrow
Replies: 14
Views: 537

Re: selling home/lease back/long escrow

I've been in a hot market where properties priced at all appropriately typically received an offer within days. In that case we listed it slightly before market value, received multiple offers, and asked everyone for final and best offers by some deadline a few days away. We got an excellent price. ...
by bigred77
Thu Mar 16, 2017 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Should I invest or save for the next few years
Replies: 14
Views: 1017

Re: Should I invest or save for the next few years

If I were you I would invest it all according to my long term AA and remain flexible on my house purchase timing. If the market crashes in 2-4 years then you just postpone the home buying. If it soars than you have even more to put down when the timing is right.
by bigred77
Thu Mar 16, 2017 11:46 am
Forum: Investing - Help with Personal Investments
Topic: College Savings Outside 529 Plan
Replies: 15
Views: 677

Re: College Savings Outside 529 Plan

I am very pro 529 and also engage in lots of mental accounting myself. That being said, I agree you have more than enough in the 529s and should switch to contributing to a taxable brokerage account. When doing that, I think it would make the most sense to consider these new taxable contributions as...
by bigred77
Wed Mar 15, 2017 3:04 pm
Forum: Investing - Theory, News & General
Topic: BND Jumps 0.5% on Fed Announcement
Replies: 43
Views: 4182

Re: BND Jumps 0.5% on Fed Announcement

I was waiting for someone to bring this up. :D Fed raises the overnight rate target to 0.75% - 1% Yield curve flattens. Bonds and Bond funds increase in value. An important reminder that the fed can only exert control on the overnight rate. That influences, but does not control, interest rates over ...
by bigred77
Wed Mar 15, 2017 8:18 am
Forum: Investing - Help with Personal Investments
Topic: Do you avoid international investing like Jack Bogle?
Replies: 151
Views: 7447

Re: Do you avoid international investing like Jack Bogle?

Mine is almost the same as jhfentons. Close to 50% of equities is in International with a tilt to small and EM. Jack Bogle and Warren Buffet both have made statements in the past that indicate they have some home country bias. It's OK, these guys are titans of industry, not infallible. We all have b...
by bigred77
Tue Mar 14, 2017 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate investing the Boglehead way
Replies: 32
Views: 5984

Re: Real estate investing the Boglehead way

Different people approach real estate investing in different ways. If you have a background in construction, it might be profitable for you to do fixer-uppers. Personally, I do rental real estate for income (single family homes and townhouses). I generally look for these things: - safe neighborhood...
by bigred77
Tue Mar 14, 2017 12:18 pm
Forum: Investing - Theory, News & General
Topic: Fewer investment grade corporate bonds due to tax proposal?
Replies: 7
Views: 450

Re: Fewer investment grade corporate bonds due to tax proposal?

I'm trying to respond on the theory aspect of "what effects would eliminating the corporate interest tax deduction generate?" I assume there would probably be some reduction in the amount of corporate debt floating around but debt financing is still cheaper to use than equity capital. I do...
by bigred77
Mon Mar 13, 2017 10:57 am
Forum: Personal Consumer Issues
Topic: How many pairs of jeans do you own?
Replies: 64
Views: 3547

Re: How many pairs of jeans do you own?

Own or wear? Half the jeans I own are a size too small, but I keep them in hopes I might get back into them. Not sure if I should consider them an investment or take the loss now. Shoes > socks? Seems strange to me unless you're a collector (AFAIK, shoes are a depreciating asset). I can wear the sa...
by bigred77
Thu Mar 09, 2017 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Down payment money location if money isn't tight
Replies: 6
Views: 713

Re: Down payment money location if money isn't tight

The inheritance pretty much makes what you do with the 125k borderline insignificant. If you keep it in cash you end up with $3.125M If you put it all in stocks and double it, you have 4% more $3.25M If you lose it all you have 4% less ($3M) I would try to plan what you would do after you have contr...
by bigred77
Wed Mar 08, 2017 5:36 pm
Forum: Personal Consumer Issues
Topic: Car dilemma?
Replies: 25
Views: 1611

Re: Car dilemma?

The thought of going from a new(ish) Audi A5 convertible to a Toyota Corolla seems like a harsh adjustment. Especially when you just agreed to spend a lot more time in the car commuting :annoyed It's clearly the better financial choice however. If you have no qualms about the difference in driving e...
by bigred77
Wed Mar 08, 2017 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Opportunity Cost of Temporarily Raiding Retirement Account
Replies: 21
Views: 1753

Re: Opportunity Cost of Temporarily Raiding Retirement Account

If this was a coastal city or tight sellers market than yes, cash is king and FHA financing might cause you to lose out in a multiple offer situation. If these properties sit on the market for a number of weeks/months We are in Metro Detroit. The average listing duration is 1-2 days right now. Some...
by bigred77
Tue Mar 07, 2017 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Opportunity Cost of Temporarily Raiding Retirement Account
Replies: 21
Views: 1753

Re: Opportunity Cost of Temporarily Raiding Retirement Account

Do you qualify for a FHA loan? Yes, but (unless I'm missing something) an FHA loan is much worse than a conventional loan. #1 An FHA loan has more hoops to go through vs conventional. Sellers are less likely to accept offers from FHA buyers. #2 An FHA loan requires 3.5% down. I have at least 5% dow...
by bigred77
Tue Mar 07, 2017 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: GEICO auto rates vs. USAA: too good to be true?
Replies: 127
Views: 9470

Re: GEICO auto rates vs. USAA: too good to be true?

I had Geico for years, even had a claim, and my experience was very good. Then I shopped around and USAA was priced the best. I had a claim with them too, no complaints. Then a few years later I shopped around again and Amica was the best priced. Very happy with them, no claims so far, no complaints.
by bigred77
Tue Mar 07, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: Opportunity Cost of Temporarily Raiding Retirement Account
Replies: 21
Views: 1753

Re: Opportunity Cost of Temporarily Raiding Retirement Account

Why do you need 20% down? Why can't you put 5-10% down and then pay off enough principal to have lmo removed in a few years. I did this (albeit put 10-15% down) and had pmi removed within 2 years. I would say this. putting 20% down on a real estate purchase is not the 11th commandment. You sound li...
by bigred77
Tue Mar 07, 2017 1:25 pm
Forum: Personal Consumer Issues
Topic: Dispute with neighborhood association
Replies: 37
Views: 4087

Re: Dispute with neighborhood association

I've had very mixed experiences with HOA's. My childhood home is in a large suburban neighborhood. They pay an HOA fee once a year. The neighborhood is well established and most homes are 20+ years old. The board of the HOA was all retired residents, who somehow felt like they were running the board...
by bigred77
Tue Mar 07, 2017 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 3263

Re: Taxable investment plan for kids college

I can just tell you would I would do. I would put at least SOME of the excess funds in a 529 account. You are earmarking funds for college. I would not willingly pay capital gain taxes and taxes on dividends/income over the course of the next 2 decades when I don't have to with the 529s. Maybe see w...
by bigred77
Mon Mar 06, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Net Worth Calculation (Question/Opinion)
Replies: 26
Views: 1620

Re: Net Worth Calculation (Question/Opinion)

I typically don't but I mentally know I'd take that haircut as a cost of liquidating the asset. I use a pretty conservative estimate of home value anyway. What would I get if I had to list the property as is and wanted it to go under contract within 2-4 weeks? In reality I'd likely spruce it up some...
by bigred77
Mon Mar 06, 2017 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Wedding cash gift
Replies: 68
Views: 3649

Re: Wedding cash gift

I did a Saturday afternoon wedding for about 250 people for about 25k (ceremony and reception, not counting rings or honeymoon). We did not skimp on the higher end venue, sit down dinner, all inclusive open bar, and photographer. We skimped on the music (DJ was bad, no band, would not recommend), th...
by bigred77
Thu Mar 02, 2017 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Low Interest Variable Debt
Replies: 8
Views: 388

Re: Low Interest Variable Debt

My advice would be to switch your Roth 401k to a traditional 401k since you are in the 25% marginal tax bracket.

Then I would bump up that contribution from 5% to 20%.

Then I would take the remainder of the "extra" and apply it to your student loans every month.
by bigred77
Thu Mar 02, 2017 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Pros and cons of a mortgage
Replies: 10
Views: 1096

Re: Pros and cons of a mortgage

In retirement, with no need to try and arbitrage investment returns and borrowing rates, I would not look for ways to get fancy for no real benefit (or at best, a very tiny benefit). I would just pay cash for the property. You can presumably easily afford to do so unless your expenses are in the $30...
by bigred77
Thu Mar 02, 2017 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Where do we reasonably go from here?
Replies: 11
Views: 1696

Re: Where do we reasonably go from here?

You sound like a very good candidate for a backdoor Roth IRA. Please continue researching that and complete one for the 2016 calendar year before April 15th. Maybe go ahead and do another $5,500 just to take care of your 2017 contribution limit at the same time. I think 80/20 is maybe too aggressive...
by bigred77
Wed Mar 01, 2017 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: How Much to Stretch for "Forever Home"
Replies: 42
Views: 3915

Re: How Much to Stretch for "Forever Home"

HCOL area and 4 kids is always going to be challenging. How are the schools you're currently zoned too? Can you at least wait until all the kids are in school and you free up some of that $2500 a month in childcare costs (and hopefully you can go back to work full time at that point instead of 3 day...
by bigred77
Wed Mar 01, 2017 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: College student first time investing and student loans.
Replies: 8
Views: 355

Re: College student first time investing

When i was 19 I invested in Keystone light, McCormicks Vodka, and on special occasions, Jim Beam :mrgreen:
by bigred77
Wed Mar 01, 2017 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Question for Retired Members--life mistakes
Replies: 64
Views: 8453

Re: Question for Retired Members--life mistakes

Our definitions of "usual" and "everybody" appear to diverge. Oh, I forgot to add that we lived in Europe for a few years in our twenties working for almost no money and traveling quite a bit. We didn't save any money then, but had a great time. Of course, no kids and no home-ow...
by bigred77
Wed Mar 01, 2017 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Advice For Buying A Home
Replies: 11
Views: 1037

Re: Advice For Buying A Home

My advice from my own experience would be: - Try not to become emotionally invested in any property until the closing is done and they hand you the keys (HA! I failed at this as a first time buyer). - The seller typically wants to sell the house just as bad as you want to buy it. - There is no perfe...
by bigred77
Wed Mar 01, 2017 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: Possibly Financially Independent and Feeling Miserable
Replies: 153
Views: 15531

Re: Possibly Financially Independent and Feeling Miserable

I think you have done quite well to have such a nest egg at (to me) relatively young ages. But just taking your numbers and words at face value, I am thinking that $60K a year really is not that much money. I don't know what your lifestyle is now but even to live a modest comfortable middle class l...
by bigred77
Wed Mar 01, 2017 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Possibly Financially Independent and Feeling Miserable
Replies: 153
Views: 15531

Re: Possibly Financially Independent and Feeling Miserable

You can buy a immediate annuity in 2 years (2 years because I couldn't find a quote online for any age less than 40 and your spouse is only 38) that will pay you 60k a year until both spouses are deceased for roughly $1.3M (not that I would suggest a 42 and 40 year old couple buy a SPIA, but you cer...
by bigred77
Tue Feb 28, 2017 7:56 pm
Forum: Investing - Theory, News & General
Topic: Extreme Valuations, and why you should reconsider
Replies: 307
Views: 20174

Re: Extreme Valuations, and why you should reconsider

Larry, I'd also like to ask for your off the cuff opinion on something. Because I largely agree with your position on valuations being important and informative, that they are the best tool we have to derive expected returns, and that there is indeed a purpose to calculating expected returns (I just...
by bigred77
Tue Feb 28, 2017 7:19 pm
Forum: Investing - Theory, News & General
Topic: Extreme Valuations, and why you should reconsider
Replies: 307
Views: 20174

Re: Extreme Valuations, and why you should reconsider

[url]The problem with lowering expectations is that Boglehead suggested planning numbers are already EXTREMELY conservative.[/url] I wonder how any knows if this is true. If forecasting more than say 5% real return to stocks and maybe 1% at best for safe bonds that would IMO not be conservative Lar...
by bigred77
Tue Feb 28, 2017 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: Income fund for ROTH
Replies: 19
Views: 993

Re: Income fund for ROTH

Kelli28, Most around here would not recommend PTY or anything remotely similar to it. For fixed income investments, most here would recommend pretty plain vanilla stuff: - A total bond market index fund or ETF (look at BND or AGG) - An intermediate term bond index or treasury fund or ETF (look at BI...
by bigred77
Tue Feb 28, 2017 1:46 pm
Forum: Investing - Theory, News & General
Topic: Extreme Valuations, and why you should reconsider
Replies: 307
Views: 20174

Re: Extreme Valuations, and why you should reconsider

I think the issue with bogleheads and valuations is that bogleheads have less "levers to pull" as it were. - Most bogleheads are saving a significant portion of their income (if they are still working). I'd venture to guess a significant portion of them are already saving "as much as ...
by bigred77
Tue Feb 28, 2017 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: Riding the fence on early retirement
Replies: 20
Views: 3639

Re: Riding the fence on early retirement

Sounds like you need to really sit down and decide on well thought out Asset Allocation. I probably would not recommend 100% stocks to a 43 year old who is considering an early retirement. Especially not one who appears to be pretty close to achieving their retirement income goals. I think anything ...
by bigred77
Mon Feb 27, 2017 2:03 pm
Forum: Investing - Theory, News & General
Topic: Extreme Valuations, and why you should reconsider
Replies: 307
Views: 20174

Re: Extreme Valuations, and why you should reconsider

Now of course there are bubbles and crashes, that take valuations far above or below some equilibrium point. But if it is mean reverting, it is probable pulled toward an increasing mean, now almost 25. So I am interested in which factors drive the mean CAPE higher since about 1996 when the big chan...
by bigred77
Mon Feb 27, 2017 12:56 pm
Forum: Personal Consumer Issues
Topic: Do Boglehead DIY or Pay a Professional?
Replies: 95
Views: 6977

Re: Do Boglehead DIY or Pay a Professional?

99% of jobs I will call the handyman (or other professional). I have many strengths but being handy is not one of them.

For manual labor (house cleaning and lawn maintenance) I also hire out. The cost is worth it to me to preserve my free time. Also, I'm kinda lazy.

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