Search found 58 matches

by irwinmfletcher
Sun Sep 18, 2022 5:25 am
Forum: Personal Finance (Not Investing)
Topic: Taking a HELOC now?
Replies: 5
Views: 776

Re: Taking a HELOC now?

In a similar situation. Seems to me one also needs to factor in the cost of the debt and the deductibility of the interest. Interest on the HELOC may be deductible if used for capital improvements depending on your tax situation. If you use cash now and need the money from the HELOC next year from something else, you wouldn't be able to deduct the HELOC interest. That's also a permanent problem because if you do use your HELOC you will get to keep the basis in the "cost" of your house the next time you refi (and thereby keep the interest deduction). If the after tax rate of interest is low enough it may make sense to keep the cash and use the HELOC. That is what I am planning to do as of now, with a sub 3% after tax blended rate o...
by irwinmfletcher
Sun Apr 04, 2021 2:44 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 267017

Re: First 20% of bonds in long-term Treasuries

Short-term reserves, I consider, an emergency fund (I.e., funds that are NOT invested). First bonds for investment in a high equity portfolio should be long term treasuries because of the recent negative correlation with equities in times of stress. The principle is simply this: your 80%+ equity position is driving your risk and return; why bother with any bonds that don't provide a robust return when equities crash? Only when you want to actively "derisk" your portfolio should you consider intermediate and short-term fixed-income. Emergency funds are not part of this equation. So in other words, don't really put the first 20% of what is not in equities in LTT? That is, some % in short term and then LTT. I don't keep a separate e...
by irwinmfletcher
Sun Apr 04, 2021 9:57 am
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 267017

Re: First 20% of bonds in long-term Treasuries

I still struggle with how to tie the first 20% rule in with having short term reserves (or whether there should even be any of those). If one keeps no dedicated emergency/liquidity fund and is 80/20, is it too conservative to keep all or a portion of that 20% in ITT (or shorter term fixed income)? Let's say one has 15x saved and wants 1-3 years in low volatility investments to allow them to be able to switch careers if everything is tanking, use in the next 2 years in case of emergency, etc. I believe I saw a reference in one of the threads to the 20% LTT being aside from liquidity reserves, but then the first 20% isn't really in LTT (unless we are bucketing or mental accounting and I missed that part). Perhaps in my example there really a...
by irwinmfletcher
Sun Apr 04, 2021 9:16 am
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 267017

Re: First 20% of bonds in long-term Treasuries

I still struggle with how to tie the first 20% rule in with having short term reserves (or whether there should even be any of those). If one keeps no dedicated emergency/liquidity fund and is 80/20, is it too conservative to keep all or a portion of that 20% in ITT (or shorter term fixed income)? Let's say one has 15x saved and wants 1-3 years in low volatility investments to allow them to be able to switch careers if everything is tanking, use in the next 2 years in case of emergency, etc. I believe I saw a reference in one of the threads to the 20% LTT being aside from liquidity reserves, but then the first 20% isn't really in LTT (unless we are bucketing or mental accounting and I missed that part). Perhaps in my example there really a...
by irwinmfletcher
Sun Apr 04, 2021 7:37 am
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 267017

Re: First 20% of bonds in long-term Treasuries

I still struggle with how to tie the first 20% rule in with having short term reserves (or whether there should even be any of those). If one keeps no dedicated emergency/liquidity fund and is 80/20, is it too conservative to keep all or a portion of that 20% in ITT (or shorter term fixed income)? Let's say one has 15x saved and wants 1-3 years in low volatility investments to allow them to be able to switch careers if everything is tanking, use in the next 2 years in case of emergency, etc. I believe I saw a reference in one of the threads to the 20% LTT being aside from liquidity reserves, but then the first 20% isn't really in LTT (unless we are bucketing or mental accounting and I missed that part). Perhaps in my example there really ar...
by irwinmfletcher
Wed Mar 31, 2021 6:05 am
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 267017

Re: First 20% of bonds in long-term Treasuries

Vineviz and Watchnerd, really appreciate your posts and knowledge in this and other threads.

I first read this thread about a year ago and to date haven't switched from keeping my 20% bonds in TBM and Inter-term bond index.

I've been planning to switch at least some of that 20% to LTT. I keep no separate emergency fund, so not sure I have the guts to go all 20% LTT. Is it reasonable to go half ITT and half LTT? I plan to stay 80/20 forever, although when I get to 25-30x I may reevaluate (probably about half way there right now, 10 years or so from retirement). I have no concern with seeing ITT go down 5-10%, but seeing LTT go down 15-20% would give me some heartburn if that is all I held for fixed income.
by irwinmfletcher
Wed Jun 14, 2017 8:58 am
Forum: Personal Investments
Topic: Pay Mortgage vs. Buy Bonds
Replies: 61
Views: 9366

Re: Pay Mortgage vs. Buy Bonds

Grabiner-- First, I greatly appreciate your posts on this topic. I've spent more time thinking about this issue than any other in personal finance (bonds and mortgages), and your posts are always enlightening. I appear to be in a similar situation as you, and wonder what you would do in my scenario. Like you I was renting a year ago and was 70/30 stock/bond. I recently bought a house, with a large mortgage (HCOL area), but to date have not adjusted my allocation. Assume these numbers: 750k house (liquidation value after closing costs, commissions, etc.) 670k mortgage (roughly 3.5% rate (blended with HELOC) on a 30yr) 550k in stocks 230k in bonds Probably 20 years out from retirement. It appears I am over 100% in stocks, based on the negativ...
by irwinmfletcher
Tue Aug 26, 2014 6:42 am
Forum: Personal Finance (Not Investing)
Topic: convince me not to use traditional IRA for house downpayment
Replies: 23
Views: 3729

Re: convince me not to use traditional IRA for house downpay

Isn't this like taking a bank loan for one year at 15% or what ever your tax rate is? Are you trying to avoid PMI or something like that? Just save up more and delay the house purchase. Never touch retirement for anything. Break the piggy bank now, how many more things will you find in the future that you dip into this savings? who knew you couldn't save up for a house until after you have funded $51,500/year for retirement? That's 2 401Ks ($34,000), HSA as 401K extender ($6500) and 2 backdoor roths ($11,000). In other words, could a couple who did the above every year for 10 years, made 7% per year, has no debt, and makes over $200,000k a year buy a house? No way! Can't afford it! Despite a net worth of $761,000, because they have no emer...
by irwinmfletcher
Sat Aug 23, 2014 6:09 am
Forum: Personal Finance (Not Investing)
Topic: convince me not to use traditional IRA for house downpayment
Replies: 23
Views: 3729

Re: convince me not to use traditional IRA for house downpay

Thanks for all of the responses. I plan to use taxable funds only (and really always did, but the penalty free withdrawal seemed like something to consider and wanted to make sure I wasn't missing something). If you had left that $20,000 alone to earn a conservative APY estimate of only 7% over perhaps 30 years until retirement at the same time the 30 year mortgage would be pid off , it could have grown to $162,330, earning $142,330 in interest. So you've given up $142,330 in potential earnings to save $10,349 in interest on the debt. That's 13.8 times as much interest earnings lost than you save on the debt. jimb But wait a minute: if I take the 20k from the TIRA, I still have 20k in taxable. If that grows at 7% a year (assume for simplici...
by irwinmfletcher
Fri Aug 22, 2014 11:11 am
Forum: Personal Finance (Not Investing)
Topic: convince me not to use traditional IRA for house downpayment
Replies: 23
Views: 3729

Re: convince me not to use traditional IRA for house downpay

Bob great point on il taxes. Have to reevaluate.

Joe and primer:not an affordability issue.
Consider 2 neighbors, a and b. they both want to buy a 400k house.

A has no emergency fund or house fund. He has 2 million in assets. 40k in taxable and 1960000 in tax deferred.

B has a 40 k house fund and a 60 k emergency fund. He also has 300k in tax deferred.

They are the same age and currently have the same income.

Can only b afford the house since he has a house fund?

If a can afford the house, where should he take the money from first?
by irwinmfletcher
Fri Aug 22, 2014 6:14 am
Forum: Personal Finance (Not Investing)
Topic: convince me not to use traditional IRA for house downpayment
Replies: 23
Views: 3729

convince me not to use traditional IRA for house downpayment

Looking for some good reasons not to use the first time home buyer exception for withdrawing funds from a traditional IRA (mine and spouse's) for a down payment. The funds are going to have to come from somewhere in the portfolio obviously, so the 2 choices are taxable or traditional IRA or a mix of both. If they come solely from taxable, that's fine but then I have $20,000 less in taxable for a rainy day. If $20,000 comes out of the TIRA, I have will have to pay $5,600 in tax now. But I will have to pay tax at some point no matter what. Yes, I can try to arbitrage the rates and withdraw that $20,000 20 years from now at 15% ($3,000 in tax, so $2,600 less in taxes), but there is no guarantee the rate situation will be the same. Further, if ...
by irwinmfletcher
Sun Jun 29, 2014 5:12 am
Forum: Personal Consumer Issues
Topic: How many Bogleheads golf?
Replies: 81
Views: 8496

Re: How many Bogleheads golf?

love the game (even though I stink) and try to play or practice 1-2 times per week. My job doesn't allow me to play much more than that, but would if I could. I really should have chosen a career where golfing with customers was part of the job (e.g., banker--one of my good friends plays so much for work he doesn't even want to play on weekends). Most of my good friendships these days are maintained through golf. Cost, 3-4 k per year right now, which generally includes one sweet golf trip. I could see this getting up to $10-20k in about 5-10 years if time and funds allow it.
by irwinmfletcher
Fri Jun 13, 2014 2:11 pm
Forum: Personal Investments
Topic: Mortgages/Black Swans/Larry Portfolio/Antifragility
Replies: 27
Views: 2724

Re: Mortgages/Black Swans/Larry Portfolio/Antifragility

Count me in--the bonds would be in tax deferred accounts where the taxes would make it uneconomical to take out except in a dire case (the black swan).

Savvy--that is a risk on the rents, but it is much easier to move somewhere cheaper from a rental in that case. Assume some savvy renters who lock in rents for 5 year blocks. If house prices go up that is a risk and why A is thinking of buying, but with a large reserve.
by irwinmfletcher
Fri Jun 13, 2014 11:24 am
Forum: Personal Investments
Topic: Mortgages/Black Swans/Larry Portfolio/Antifragility
Replies: 27
Views: 2724

Re: Mortgages/Black Swans/Larry Portfolio/Antifragility

Zed--it mitigates the risk because the money is there to pay the loan off. It could be used if necessary, just not without some tax cost. If in stocks of course the money may not be there when you need it.

Jack--indeed, although if you have the same money in a safe asset, the risk of high ltv is offset. It is just a matter of financing technique and cost at that point.
by irwinmfletcher
Fri Jun 13, 2014 11:06 am
Forum: Personal Investments
Topic: Mortgages/Black Swans/Larry Portfolio/Antifragility
Replies: 27
Views: 2724

Re: Mortgages/Black Swans/Larry Portfolio/Antifragility

Freddie--fair point and understood. The question really is whether the risk is worth the reward (unknowable). Being anti-fragile is knowable on day 1. May be better to just rent and keep the equity upside without the risk downside.

Sdsailing--unfortunately not possible in my market (no 300k house my wife would live in!) Of course, renting until the multiples changes (1 million portfolio, then a 500k house) is an option. One I am seriously considering.
by irwinmfletcher
Fri Jun 13, 2014 10:45 am
Forum: Personal Investments
Topic: Mortgages/Black Swans/Larry Portfolio/Antifragility
Replies: 27
Views: 2724

Re: Mortgages/Black Swans/Larry Portfolio/Antifragility

Zed--not sure. I can't predict the correlation and don't pretend that I can. The point is protection from fragility. They would likely crash in tandem in a black swan scenario, it seems to me. In my example it doesn't matter--if residential real estate goes up then A benefits. If they both crash he is protected.
by irwinmfletcher
Fri Jun 13, 2014 5:30 am
Forum: Personal Investments
Topic: Mortgages/Black Swans/Larry Portfolio/Antifragility
Replies: 27
Views: 2724

Mortgages/Black Swans/Larry Portfolio/Antifragility

I have spent a lot of time recently struggling with whether to buy a house, and the impact it could have on a portfolio. I have read the posts on mortgages as negative bonds and the like, but there seemed to be a lot of argument over terminology that clouded the real world applications. Consider 2 investors, Investor A and Investor B: Investor A has $450,000 in stocks, $200,000 in bonds, and rents. Investor B has $400,000 in stocks, $200,000 in bonds, a $550,000 house, and $500,000 in debt. Observations: 1. They have the same net worth. 2. They are both renters in a sense. A rents housing, B rents money (the interest) to invest in other assets. Whether one is a better idea than the other depends on the host of factors (ROI, interest rates, ...
by irwinmfletcher
Fri Apr 25, 2014 5:42 am
Forum: Personal Finance (Not Investing)
Topic: Tell Me I'm Stupid To Consider Quitting My Job and Moving
Replies: 163
Views: 50083

Re: Tell Me I'm Stupid To Consider Quitting My Job and Movin

perhaps I missed it, but maybe you could share with us how you got to around $1.8 million by 37 (basically 12 years out of law school)? By my calculation that is saving about $90,000 per year for 12 years at 8%. Could be informative for others who want to get to the same place.
by irwinmfletcher
Sat Feb 01, 2014 7:31 am
Forum: Personal Investments
Topic: lending club and non-deductible IRAs
Replies: 3
Views: 592

Re: lending club and non-deductible IRAs

EmergDoc wrote:I use a Roth. I agree it's a lousy taxable investment, if for no other reason than the bookkeeping issues. At least in a taxable account you can write off your defaults.
EmergDoc: Since I can't use a Roth for new contributions and can't backdoor, do you think it makes more since to roll over existing traditional IRA funds to lending club (and just put new any money in taxable in stocks/munis), or make new non-deductible IRA contributions to expand the tax deferred space?

I could roll over a Roth I suppose, but would rather just keep that in stocks and TBM. I would prefer to avoid doing it in taxable for tax reasons alone.
by irwinmfletcher
Sun Nov 24, 2013 4:45 am
Forum: Personal Finance (Not Investing)
Topic: Lease or buy a car?
Replies: 31
Views: 5200

Re: Lease or buy a car?

boglerocks wrote:What percentage of your monthly income would you be comfortable spending on a lease?
Honestly I have never leased, but no more than 3%. Of course I also take public transportation for the majority of my travel so that may skew the answer.

Check this link for the best deals: http://usnews.rankingsandreviews.com/ca ... ase-Deals/
by irwinmfletcher
Sun Nov 24, 2013 4:37 am
Forum: Personal Finance (Not Investing)
Topic: Lease or buy a car?
Replies: 31
Views: 5200

everyone leases a car, they just don't know it

whether you buy or lease, the car isn't going to last forever. If I buy a $30,000 car for cash and it last 15 years (junk value at end), it cost me $2000 per year or $166.67 per month. The rest is just comparison (cost of lease, having a new car, repairs, etc.). Not to mention you have lost the use of $30,000 upfront over paying $x per month on a lease (or loan).
by irwinmfletcher
Sat Aug 24, 2013 6:00 am
Forum: Personal Investments
Topic: mutifamily housing/landlording books
Replies: 0
Views: 319

mutifamily housing/landlording books

I am contemplating buying a 3 unit building, living in one and renting the other 2, and am looking for book recommendations. I have searched the site, and John Reed seems to pop up, but he has about 50 books and am not sure which is best. I know many think this is a bad idea in general, but some mitigating factors here: 1. I am actually looking for another job, not really for me, but for my spouse (stay at home mom right now). She would run the building (and wants to do it/has the aptitude to do it). 2. I work in commercial real estate and with multifamily housing, so the issues are familiar to me (although evaluating the proper cap rate, tax benefits, etc. is where I need help). I am on the legal side. 3. Plan would be to live there as lon...
by irwinmfletcher
Sun Jun 16, 2013 6:45 am
Forum: Personal Finance (Not Investing)
Topic: Article about young americans not using credit cards
Replies: 81
Views: 8310

Re: Article about young americans not using credit cards

Anyone that doesn't use a credit card is either irresponsible with money or making a very, very poor decision in my opinion. I accumulate about $5,000 in credit card rewards per year and have never paid a dollar of interest. And where do you think the money to pay the so-called rewards comes from? The card processor extorts it from the merchants, and the merchants pass it along in the form of higher prices. At best it's a zero-sum game. To the extent that it isn't, it's because some people are willing to be what you would call irresponsible. It sounds like we all agree. There are basically 3 groups of people.. a) Irresponsible people who throw money on the ground (90% of credit card users revolve a balance at least once a year). b) People ...
by irwinmfletcher
Sat May 04, 2013 6:52 am
Forum: Personal Investments
Topic: help me tilt international
Replies: 6
Views: 1069

Re: help me tilt international

Thanks Livesoft--was hoping you'd respond.

Question: do you cap the total small tilt at 50%? In other words, 50% total international, 25% small cap and 25% small cap value. I guess you could also go 4 corners with 25% total international, 25% large value, 25% small cap and 25% small value, with the ETFs.

Can you buy the other funds through the VG brokerage? I don't have a brokerage account (yet).
by irwinmfletcher
Sat May 04, 2013 6:35 am
Forum: Personal Investments
Topic: help me tilt international
Replies: 6
Views: 1069

help me tilt international

Thinking of rejiggering my international holdings and want to see what the current view is on tilting. Currently portfolio is 70/30 as follows (all VG funds, all tax deferred but cash and muni bonds): 30 (bonds and cash) 10 500 index 10 large value index 8 small value index 7 small index 3 PMM 10 REIT 8 EM index 7 Pac index 7 Eur index I would like to tilt the international to small/small value. One somewhat complicating factor is my new international money in 401K is in total international. So I could move all of my international money to total international and then add maybe 25% to VSS or the small cap int'l index (I know there is a purchase fee). Not sure if there is a good small value option in vanguard. Or I could keep the 3 int'l fun...
by irwinmfletcher
Wed Apr 17, 2013 5:41 am
Forum: Investing - Theory, News & General
Topic: Tiny down payments for home mortgages are back
Replies: 25
Views: 5409

Re: Tiny down payments for home mortgages are back

sounds great to me for a couple of reasons:

1. for those on the sidelines, another potential housing bust sounds appetizing. I still think homes are about 25% overvalued (compared to renting) in my area.
2. if I were to buy I would prefer to put 0% down. In my perfect world, if I could find a 3% fixed rate mortgage with no money down and 50 year term (100 would be even better) I would take that 7 days a week and twice on Sunday. No prepayment penalty of course!
by irwinmfletcher
Sun Apr 14, 2013 11:48 am
Forum: Personal Finance (Not Investing)
Topic: why is turbotax telling me to mail 1040-v with check?
Replies: 7
Views: 1226

Re: why is turbotax telling me to mail 1040-v with check?

I just did it this morning so it does not show up yet on my credit card.

But I put the credit card info in through turbo tax--not sure why it would take it and then tell me to send a check, unless there is a glitch in their system.

As for the fee basically a wash after cash back and the avoided hassle (or thought of avoiding a hassle!) of transferring funds, making sure I get it postmarked, going to post office, etc.
by irwinmfletcher
Sun Apr 14, 2013 11:09 am
Forum: Personal Finance (Not Investing)
Topic: why is turbotax telling me to mail 1040-v with check?
Replies: 7
Views: 1226

why is turbotax telling me to mail 1040-v with check?

So I e-filed and used the pay by credit card option, but when I got my notice of acceptance the turbotax email told me to send 1040-v with my check.

Has this happened to anyone else? Did my credit card payment not get submitted?
by irwinmfletcher
Mon Mar 25, 2013 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Mark Cuban on Cash
Replies: 24
Views: 4763

Re: Mark Cuban on Cash

it is easy to bash Cuban but you folks should so some reading before trying it. The fact is he has built and sold multiple businesses. He started a company in his 20s, sold it and was a multimillionaire by 30. Then he started broadcast.com as a way to listen Indiana University basketball games (his alma mater) over the internet while living in Dallas. It was really the precursor to all of the internet streaming of content that all of use today. That was the company he sold to Yahoo for billions before the crash, I believe. He then correctly forecasted the crash and got out of tech stocks before the bubble burst. I submit that most of us could learn a lot by listening to what he has to say. Yes, he is weird, but weird people change the world...
by irwinmfletcher
Sat Mar 23, 2013 6:23 am
Forum: Personal Investments
Topic: Are Boglehead SWRs Too Conservatve?
Replies: 62
Views: 7182

Re: Are Boglehead SWRs Too Conservatve?

William I agree with you about the doom and gloom SWR posts. However, as I have gotten older I get more of a kick out of looking at my account balance than actually buying "stuff".

Buying experiences is a different story. There I have a lot of things I think about spending money on.
by irwinmfletcher
Sat Mar 23, 2013 6:06 am
Forum: Personal Consumer Issues
Topic: New Doctor: Rent or Buy Home in Chicago?
Replies: 47
Views: 4482

Re: New Doctor: Rent or Buy Home in Chicago?

I live in Chicago and would recommend that rather than looking for apartments, look for a condo that the owner can't sell. Make sure parking is included. These folks are much easier to negotiate with than an apartment landlord, and the places will be nicer as the neighbors are owners rather than renters.

Also, make sure you lock up your renewal options from the start. Say a 1 year lease with 4 1 year renewal options at maybe a 2% at most increase per year.

I am currently doing just that--renting a 2200 sf condo, with parking included.

There are tons of condo buildings--just look on realtor.com and select rentals in the zip code you want to live in. Can try craiglist too.
by irwinmfletcher
Sun Mar 17, 2013 3:32 pm
Forum: Personal Investments
Topic: Quitting job and starting law school in the Fall - help!
Replies: 97
Views: 20758

Re: Quitting job and starting law school in the Fall - help!

"To respond to the poster that said lawyers are glorified waiters, I would respond that almost everyone who is employed needs to serve someone."

Sort of raises the question though doesn't it?

We all need an income. The question is really whether being a lawyer, taking all things into account, is a good way (or the optimal way) to go about it.

The question is not "how can I make money doing nothing". Adding value is a very important skill that everyone should shoot for, no matter what they do.

I merely say that there are much better ways to earn a buck, and to have a lot more fun doing it.

But to each their own.
by irwinmfletcher
Sun Mar 17, 2013 10:16 am
Forum: Personal Consumer Issues
Topic: New Doctor: Rent or Buy Home in Chicago?
Replies: 47
Views: 4482

Re: New Doctor: Rent or Buy Home in Chicago?

I live in Chicago (have owned and rented) and I would rent for the reasons noted above. You may change your mind in the next five years.

Renting has more optionality than buying, which has tremendous value in your situation.
by irwinmfletcher
Sun Mar 17, 2013 6:02 am
Forum: Personal Investments
Topic: Quitting job and starting law school in the Fall - help!
Replies: 97
Views: 20758

Re: Quitting job and starting law school in the Fall - help!

I think the OP's original question is really irrelevant, which is why so many responses are not addressing it. I don't care if he comes out of law school with $0 debt or $500,000, that is just a minor consideration in what he will be doing the rest of his life, which factors in the millions, not to mention quality of life issues. I feel compelled to respond as I have been down this path. I didn't go to a T-14 school, but top 30. I finished in the top 5% of my class and got one of the coveted jobs ($125,000 a year in 1999 dollars). I didn't go to law school with any specific plan of what I wanted to do when I got out of it (the first problem). I started in a more litigation based practice, where the hours and schedule were more predictable, ...
by irwinmfletcher
Sat Mar 09, 2013 5:25 am
Forum: Personal Finance (Not Investing)
Topic: how much leverage in buying a house?
Replies: 13
Views: 2661

how much leverage in buying a house?

I am trying to decide when to wade back into the housing market and have read all of the buying versus renting threads. In my situation I am not sure buying ever really comes out ahead economically speaking, but I suspect I will buy again at some point. My question has to do with leverage, and how leveraged were you when you bought your last house? After buying and selling 2 houses, with the 3rd it doesn't seem to make sense to buy a house unless I have at least 2 times the mortgage amount in liquid assets. In other words, for a $600,000 house with a $500,000 mortgage, I would need at least $1,000,000 in liquid assets after the purchase to buy. So a max leverage of about 31% ($1.6m assets, $500k liabilites). Am I being too conservative? Not...
by irwinmfletcher
Fri Mar 08, 2013 1:07 pm
Forum: Investing - Theory, News & General
Topic: What's your number? Why?
Replies: 258
Views: 37563

Re: What's your number? Why?

"I make way more than the "average" Dr. and will be around $1.5M at age 40. However, I have 3 kids who I would spend every penny on and a wife who has been at home for the ast 8 years. Take those things awayand I'd be well over $3M by 40."


Bacchus--

what is your specialty? That is still impressive at any level. We're about the same age--maybe I should I had gone to med school instead of law school!
by irwinmfletcher
Fri Mar 08, 2013 10:39 am
Forum: Investing - Theory, News & General
Topic: What's your number? Why?
Replies: 258
Views: 37563

Re: What's your number? Why?

I am always surprised in these threads how many plan to have multiple millions (over $2 mil) by 40. By my math even saving $50,000 a year starting at 22 (no easy feat) and earning 7% a year won't get you there by 40 assuming you start with $0.

Perhaps we have an inordinate number of NYC investment bankers and Silicon Valley entrepreuer Bogleheads?
by irwinmfletcher
Sat Mar 02, 2013 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Owner's Title Insurance
Replies: 11
Views: 1538

Re: Owner's Title Insurance

I would recommend it strongly. The key is it not only guarantees your title, subject to the noted exceptions, but the title company pays the legal fees if any issue comes up.

No sophisticated buyer would forego title insurance.
by irwinmfletcher
Sat Mar 02, 2013 6:44 am
Forum: Investing - Theory, News & General
Topic: Build Your Own Annuity
Replies: 157
Views: 22009

Re: Build Your Own Annuity

Can someone explain why treasury is guaranteeing a 3.5% return after 20 years in this environment?

I had no idea this was the case--thanks Mel for posting.

Is it possible to buy these in an Ira and avoid (defer) the tax after the 20th year?
by irwinmfletcher
Fri Feb 01, 2013 7:51 am
Forum: Personal Finance (Not Investing)
Topic: How do you know when enough is in a 529 Plan?
Replies: 32
Views: 3778

the elephant in the room

Is at what point is spending money for college a waste. If my parents had $250,000 saved when I was 18 I would beg them to just let me invest it (and not touch it) and go be an entrepreneur.

Should be a millionaire by 38, at the latest, under that scenario. As opposed to spending $250,000, starting your work career at $0, and having to bust ass to be a millionaire by 40 or 45.
by irwinmfletcher
Fri Jan 18, 2013 4:18 pm
Forum: Personal Investments
Topic: lending club and non-deductible IRAs
Replies: 3
Views: 592

lending club and non-deductible IRAs

I've been thinking about trying lending club, and a non-deductible IRA seems like the perfect vehicle to do it since the interest would otherwise be taxable at ordinary income rates.

My income is too high for a Roth and I can't backdoor Roth due to a variety of reasons.

Am I missing something? Anyone else do it this way?
by irwinmfletcher
Thu Jan 17, 2013 10:54 pm
Forum: Personal Consumer Issues
Topic: Your most intense movie scene
Replies: 155
Views: 19673

Sharon Stone in Basic Instinct

Enough said.
by irwinmfletcher
Thu Jan 17, 2013 10:51 pm
Forum: Non-US Investing
Topic: Thinking of moving to Switzerland
Replies: 60
Views: 5989

Re: Thinking of moving to Switzerland

You are in college, but know you will be in the top tax bracket for reasons you can't say. So that means what, about $400,000 in income out of college? On that I would you think you could have a good time just about anywhere.
by irwinmfletcher
Thu Jan 17, 2013 6:59 pm
Forum: Personal Investments
Topic: What to Invest in - Real estate, or buy a business?
Replies: 24
Views: 2540

Re: What to Invest in - Real estate, or buy a business?

I find posts like these refreshing because on the whole I think Boglheads need to be challenged on the group think that stock and bond investing is the optimal way to invest.

I would either stick with what you know (rentals) or what you love. That could be restaurants, but if I were going to do that I would work in the industry for a few years and make mistakes on someone else's dime. At your age you could go be a bartender/GM yourself and make every mistake you can without the risk, then buy.
by irwinmfletcher
Fri Nov 30, 2012 9:43 am
Forum: Investing - Theory, News & General
Topic: The anti-Taleb reviews Antifragile
Replies: 197
Views: 35411

Re: The anti-Taleb reviews Antifragile

I find it interesting that many on here spend so much time talking about Taleb's investing theory when 95% of the book has nothing to do with personal investing. If you don't like his investing advice (which I do not follow), I think there is some excellent stuff about living life in general.

For example, in anti-fragile (and I am not even a quarter through it), there is much about the variabilty and fragility of career choices that is pure gold in my opinion.
by irwinmfletcher
Thu Aug 30, 2012 2:36 pm
Forum: Personal Investments
Topic: Money Mag Article
Replies: 74
Views: 17253

Re: Money Mag Article

Confused--I think Bernstein is assuming you are in your 60s, hence 20 to 25 times should last you until you pass if you can make a small profit over inflation. If you are in your 40s, 25 years only gets you until most people retire--maybe 40 to 50 times is more accurate in that case.
by irwinmfletcher
Thu Jun 21, 2012 10:46 am
Forum: Personal Investments
Topic: Thoughts on Bernstein's new book
Replies: 10
Views: 2587

Thoughts on Bernstein's new book

Since the earlier thread turned into a dissertation on how to download an e-book I thought I would see if anyone had thoughts on the actual content. I noted the following: He seems to be influenced by Bodie--recommendation for a TIPS ladder in retirement with your safe money Two buckets at retirement, one for your necessities (TIPS ladder) and one for growth (stocks). The one for growth could be pretty small comparatively. This contrasts with more of a one portfolio apprach while you are accumulating. Has some guidelines on when to switch from growth to preservation. Roughly when you have 25 times annual outflows. Lots of data on value/foreign premiums. Most interesting to me was a one pargaraph discussion on paying off the mortgage and neg...
by irwinmfletcher
Wed Jun 20, 2012 7:36 am
Forum: Investing - Theory, News & General
Topic: Bill Bernstein's new e-Book now available
Replies: 109
Views: 19681

Finished it last night. Seems Bill is a little more conserva

than he used to be. Implies that it would be the rare person who should have more than 50% in stocks, and also seems to be saying if you have mortgage debt you should pay it off before investing.

He gives an example of one with a 50/50 $200,000 portfolio with a $150,000 mortgage. Says investor really has $100,000 in stocks and $50,000 net debt and should probably pay off the mortgage. Taken to its logical conclusion would one never invest in stocks until their mortgage is paid off, or at least until they have bond holdings equal to their debt?

Maybe I just misread it.
by irwinmfletcher
Mon Jun 04, 2012 10:27 am
Forum: Personal Investments
Topic: Wide rebalancing bands?
Replies: 3
Views: 640

Wide rebalancing bands?

Does anyone have really wide rebalancing bands? I am fine if my stock allocation is anywhere between 50% and 70%, so I wouldn't reblanace into stocks unless they fell below 50% or sell unless they were over 70%, but would continue new contributions at 70/30 or 60/40.

Anyone else do this? Is there a flaw I am missing, other than I might miss out on some small rebalancing bonus?
by irwinmfletcher
Fri May 18, 2012 4:22 pm
Forum: Investing - Theory, News & General
Topic: Battle-Royale: Rent-Generating Investments vs. Stock Market
Replies: 57
Views: 6152

Re: Battle-Royale: Rent-Generating Investments vs. Stock Mar

I agree with exigent, and to make it even more apples to apples, put all of the stock money in the REIT index. Viola, you in essence own commercial real estate and have professional management and you are diversified across the entire US.

I still think you can make better returns in local markets--I know one investor who makes about a 25% yearly return renting houses he buys with cash and has for years and years--but this would be a better comparison.