Search found 735 matches

by LFKB
Sat Nov 21, 2020 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford this $725,000 house?
Replies: 162
Views: 11236

Re: Can we afford this $725,000 house?

We're 36 with kids aged 5 and 2. Combined income = $190k per year Net worth = $1.15 M Current Home Value = $460k Current mortgage balance = $132k Current Home equity = $318k Investments (401k, HSA, Taxable Brokerage) = $710k Cash accounts ~ $150k We're looking at buying a new house for about $725k ...
by LFKB
Fri Nov 20, 2020 4:24 pm
Forum: Personal Investments
Topic: What is your percentage of debt to NW?
Replies: 139
Views: 7325

Re: What is your percentage of debt to NW?

~30% - $3M of mortgage debt at 2.375%
by LFKB
Fri Nov 20, 2020 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?
Replies: 124
Views: 6767

Re: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?

HomerJ wrote: Fri Nov 20, 2020 2:12 pm
LFKB wrote: Fri Nov 20, 2020 2:01 pmI am surprised that there are not more people that are over 100% for question 2. Many people where I live are (i.e. they could not pay off their mortgage with all their assets).
That's probably mostly a function of age, right?
Age and location, yes
by LFKB
Fri Nov 20, 2020 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?
Replies: 124
Views: 6767

Re: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?

By definition the equity in your home counts towards net worth. You can have some other metric that you define a different way, but its not "net worth". I guess facts and definitions don't matter anymore in 2020 though. I have no idea what your point is...I asked what percentage of your n...
by LFKB
Fri Nov 20, 2020 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?
Replies: 124
Views: 6767

Re: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?

25%; 25% My guess is that for most people, the % of net worth that is home equity is not a targeted investment strategy. Mine is function of the value of the home that I bought and the desire not to have a mortgage and how much I was able to attain with my portfolio not some desired goals. I don't ...
by LFKB
Mon Nov 16, 2020 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?
Replies: 124
Views: 6767

Re: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?

1. Home equity is about 22% of my net worth

2. Total owned real estate value is about 59% of my net worth
by LFKB
Mon Nov 16, 2020 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?
Replies: 124
Views: 6767

What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?

Curious to see what the breakdown is... 1. What % of your net worth is in home equity (including vacation or rental properties to the extent you have them)? Example: if you have $100k equity in your home and $1M net worth then 10% 2. How much is the total value of your owned real estate as a % of yo...
by LFKB
Sat Nov 14, 2020 6:41 am
Forum: Investing - Theory, News & General
Topic: Starved & Searching for Yield???
Replies: 147
Views: 14542

Re: Starved & Searching for Yield???

I own AGNC for yield When I bought it several months ago, it was trading below book value even though 90%+ of the mortgages are government backed The dividend yield at purchase was over 11% The stock has gone up 40%+ since I purchased You should take a look at it and come to your conclusion but IMO ...
by LFKB
Mon Nov 09, 2020 10:50 am
Forum: Personal Investments
Topic: Do you remember all the “I am selling my equities and going on the sidelines until after the election” posts from March
Replies: 2
Views: 910

Do you remember all the “I am selling my equities and going on the sidelines until after the election” posts from March

They all seemed to come right around the time the market hit its low for the year

Numerous posters warned them and begged them to stay the course

Well, we are now through the election and the stock market is up 65% since that day in March

Just a reminder to stay the course
by LFKB
Thu Nov 05, 2020 3:21 pm
Forum: Investing - Theory, News & General
Topic: Reason for Tech Rally after elections
Replies: 54
Views: 5792

Re: Reason for Tech Rally after elections

Pretty simple...

1. The market loves when government is split, and it looks like the Rs will maintain the Senate and be able to stop any corporate tax increases

2. Trump was much more likely to push for more oversight and/or breakups of the major tech companies
by LFKB
Wed Oct 28, 2020 8:48 pm
Forum: Investing - Theory, News & General
Topic: first million [in your retirement portfolio]
Replies: 170
Views: 23934

Re: first million [in your retirement portfolio]

27, started at 21, and self made (between me and my wife)
by LFKB
Thu Oct 22, 2020 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Relationship mortgage discounts for moving a million assets
Replies: 628
Views: 92159

Re: Relationship mortgage discounts for moving a million assets

When I Refi’d with BofA I got 0.5% off for moving over $1M the first time, then 0.25% off my second refi for adding another $500k (which was the max amount / discount). They also gave me a total of about $7k in cash incentives for moving the assets over, so long as I left them there for 9 months. C...
by LFKB
Wed Sep 30, 2020 11:49 pm
Forum: Personal Finance (Not Investing)
Topic: Relationship mortgage discounts for moving a million assets
Replies: 628
Views: 92159

Re: Relationship mortgage discounts for moving a million assets

When I Refi’d with BofA I got 0.5% off for moving over $1M the first time, then 0.25% off my second refi for adding another $500k (which was the max amount / discount). They also gave me a total of about $7k in cash incentives for moving the assets over, so long as I left them there for 9 months. C...
by LFKB
Mon Sep 28, 2020 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: Relationship mortgage discounts for moving a million assets
Replies: 628
Views: 92159

Re: Relationship mortgage discounts for moving a million assets

When I Refi’d with BofA I got 0.5% off for moving over $1M the first time, then 0.25% off my second refi for adding another $500k (which was the max amount / discount). They also gave me a total of about $7k in cash incentives for moving the assets over, so long as I left them there for 9 months. Cu...
by LFKB
Wed Sep 16, 2020 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: Who has the best rate for borrowing against your stocks thru margin / loan management account?
Replies: 6
Views: 545

Re: Who has the best rate for borrowing against your stocks thru margin / loan management account?

vsquid wrote: Wed Sep 16, 2020 1:53 pm Interactive brokers starts at 1.5% and goes down for large balances. It is tied to their own benchmark rate which is close to LIBOR.
thanks. I just found the tiered pricing based on asset level online. Appreciate it.
by LFKB
Wed Sep 16, 2020 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Who has the best rate for borrowing against your stocks thru margin / loan management account?
Replies: 6
Views: 545

Re: Who has the best rate for borrowing against your stocks thru margin / loan management account?

have you read all the conditions/risks: Risks of LMA Borrowing Securities-based financing involves special risks. You should review the LMA Loan Agreement and related documents and disclosures carefully and consult with your own independent tax and legal advisors. A decline in the value of your col...
by LFKB
Wed Sep 16, 2020 1:51 pm
Forum: Investing - Theory, News & General
Topic: The Fed, Snowflake, and Stocks
Replies: 53
Views: 5953

Re: The Fed, Snowflake, and Stocks

Tingting1013 wrote: Wed Sep 16, 2020 1:50 pm
LFKB wrote: Wed Sep 16, 2020 1:50 pm Snowflake is trading at 180x last twelve months revenue
How about forward revenue?
I haven't seen a projection for 2021 revenue but my guess is it is likely around 85x 2021 revenue
by LFKB
Wed Sep 16, 2020 1:50 pm
Forum: Investing - Theory, News & General
Topic: The Fed, Snowflake, and Stocks
Replies: 53
Views: 5953

Re: The Fed, Snowflake, and Stocks

Snowflake is trading at 180x last twelve months revenue. My friend works there in enterprise sales and is not even very senior and made about $4 million today.
by LFKB
Wed Sep 16, 2020 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Who has the best rate for borrowing against your stocks thru margin / loan management account?
Replies: 6
Views: 545

Who has the best rate for borrowing against your stocks thru margin / loan management account?

My investments are held at Merrill Edge. They are offering a 2.55% loan management account (can fluctuate but is tied to LIBOR). I haven't really looked into other options so wanted to see how this rate compares and who offers the lowest rates for this. I would only be drawing down about 15-20% of m...
by LFKB
Tue Sep 15, 2020 12:39 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

Lots of 37%ers on Bogleheads. No one recommends VUL. Saying there are benefits seems to be more of a theoretical math problem that you work on for fun, but don’t actually want to implement. . Honestly, if there really is a reason to buy one, you nor anyone else is explaining why. I see the fees. I ...
by LFKB
Tue Sep 15, 2020 1:06 am
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

OP is in finance and sounds like a smart dude. He posted almost the same question last year. https://www.bogleheads.org/forum/viewtopic.php?f=1&t=274362&p=4408623#p4408623 Something is holding OP back despite the fact that this is a “no brainer” and no one can convince him otherwise. OP, ei...
by LFKB
Tue Sep 15, 2020 12:55 am
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

The math is pretty simple - the after tax returns are better because the tax savings are greater than cost of insurance and commissions. It’s a win win. If the math is simple, then buy it. How many pages in that NW prospectus? Did you see the part about 2% + 0.55% + 6.95% charges on each Premium pa...
by LFKB
Tue Sep 15, 2020 12:54 am
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

There aren’t any other ways to create this type of tax benefit and hold equities, so not sure I need to Quit worrying about taxes. Don't let the tax tail wag the dog. The Total Stock Market Index fund is extremely tax-efficient. You only pay on dividends, and no capital gains unless you sell. Or ma...
by LFKB
Mon Sep 14, 2020 9:56 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

Stinky wrote: Mon Sep 14, 2020 9:25 pm
HomerJ wrote: Mon Sep 14, 2020 8:45 pm
Quit worrying about taxes. Don't let the tax tail wag the dog.
Best quote of this thread!
Do you have a 401k? IRA? 529?
by LFKB
Mon Sep 14, 2020 9:54 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

There aren’t any other ways to create this type of tax benefit and hold equities, so not sure I need to Quit worrying about taxes. Don't let the tax tail wag the dog. The Total Stock Market Index fund is extremely tax-efficient. You only pay on dividends, and no capital gains unless you sell. Or ma...
by LFKB
Mon Sep 14, 2020 9:49 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

https://www.prudential.com/personal/life-insurance/variable-life-insurance-performance/vul-protector-2018-prospectus/ Looking at that prospectus, it does appear you're not going to get the S&P 500 returns. It's not JUST a 0.19% expense ratio vs a 0.04% expense ratio (from Vanguard) Sales Charge...
by LFKB
Mon Sep 14, 2020 8:37 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

Thanks. I am mid 30s in California with income well above the highest state and federal tax levels and currently paying 37.1% capital gains rates, so it appears I am exactly the person you are saying it would make sense for. Which means you can afford to pay a CPA and a "real" investment ...
by LFKB
Mon Sep 14, 2020 7:29 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

Thanks. I am mid 30s in California with income well above the highest state and federal tax levels and currently paying 37.1% capital gains rates, so it appears I am exactly the person you are saying it would make sense for. Which means you can afford to pay a CPA and a "real" investment ...
by LFKB
Mon Sep 14, 2020 4:24 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

You note the dramatic tax benefits of the VUL policy, but remember it's a cost-benefit analysis. There are also dramatic costs: the insurance itself, which you might be able to take out if you would have purchased insurance anyway, but the "commissions" and other expenses are significant....
by LFKB
Mon Sep 14, 2020 4:12 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Re: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

It is definitely not guaranteed for tax savings to be greater than costs. It rarely is which is why you don’t see non insurance folks recommending it. I wouldn’t be surprised if they illustrated it working out. There was an article written by insurance industry experts you might want to look at. Si...
by LFKB
Mon Sep 14, 2020 1:01 pm
Forum: Investing - Theory, News & General
Topic: Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read
Replies: 90
Views: 4582

Variable Universal Life Insurance Experts - Seems Like a No Brainer - Please Read

Please only respond if you have looked into a variable universal policy from a reputable company like Northwest Mutual and properly understood the tax benefits of it...I am looking for what I am missing/not thinking of... It seems pretty straight forward 1) Yes, there is a commission involved and yo...
by LFKB
Mon Aug 17, 2020 11:09 pm
Forum: Investing - Theory, News & General
Topic: What percentage of public companies are profitable?
Replies: 2
Views: 364

Re: What percentage of public companies are profitable?

Companies like Nikola are valued even before they have revenue because they have a leading position in a huge and growing addressable market and they have demonstrated enough to have large contracts from sizable customers. America’s ability to value these companies and provide capital to them (typic...
by LFKB
Thu Jul 16, 2020 11:39 am
Forum: Personal Investments
Topic: California Turbo Tax Users
Replies: 11
Views: 741

California Turbo Tax Users

How long did it take for your state return to be accepted? My federal return was accepted immediately but my state return is still pending. Is this typical?
by LFKB
Tue Jun 16, 2020 1:28 am
Forum: Personal Finance (Not Investing)
Topic: Finding the best rate - SoCal jumbo mortgage
Replies: 28
Views: 2139

Re: Finding the best rate - SoCal jumbo mortgage

Update: called around to a bunch of lenders today. Best rates were Chase (3.125% with 0.013% lender credit) and CIT Bank (3.025% with 0.084% loan cost). Both are offering some form of relationship discount. Chase is offering 0.5% (!) with moving $500k non-retirement assets, which I can do with a gi...
by LFKB
Tue Jun 16, 2020 1:24 am
Forum: Personal Finance (Not Investing)
Topic: Finding the best rate - SoCal jumbo mortgage
Replies: 28
Views: 2139

Re: Finding the best rate - SoCal jumbo mortgage

Chase is not great. I have shopped rates a few times and they’ve never been competitive. I am in a jumbo in So Cal and just closed my refi through BofA in May on a 10 year ARM IO at 2.375%. If it had been a purchase not a refi I could’ve gotten 2%. Citi and Wells were competitive, but Chase was not.
by LFKB
Thu May 28, 2020 8:13 pm
Forum: Investing - Theory, News & General
Topic: Sitting on a bunch of cash; what to do with it if I believe we're headed for SPX 1800 and protracted recession?
Replies: 206
Views: 21906

Re: Sitting on a bunch of cash; what to do with it if I believe we're headed for SPX 1800 and protracted recession?

So I don't really see any hot takes here on predictions of inflation versus deflation in a scenario of protracted recession with several injections of stimulus. I guess I'll just keep the money in my settlement fund until I start redeploying into stocks in the next 2–18 months. As for people saying...
by LFKB
Tue May 26, 2020 9:24 am
Forum: Investing - Theory, News & General
Topic: Bogleheads: What is your largest single stock holding? (if any)
Replies: 79
Views: 4383

Re: Bogleheads: What is your largest single stock holding? (if any)

Amazon, Google and NVIDIA are each about 3% of my portfolio. All have done extremely well and I have owned them for a number of years due to belief in the company and that they were actually cheap on a relative basis to the broader market when I bought them based on their P/E and growth prospects.
by LFKB
Tue May 26, 2020 12:58 am
Forum: Investing - Theory, News & General
Topic: Anybody do any GOOD timing the market?
Replies: 123
Views: 8375

Re: Anybody do any GOOD timing the market?

I sold bonds and bought equities at SP 2200 on 3/23

I sold equities and bought bonds at SP 2870
by LFKB
Wed May 20, 2020 8:53 am
Forum: Personal Consumer Issues
Topic: What is your most luxury/expensive hobby.
Replies: 264
Views: 20836

Re: What is your most luxury/expensive hobby.

I probably spend $50k per year traveling and about $25k per year on golf
by LFKB
Wed May 20, 2020 1:04 am
Forum: Investing - Theory, News & General
Topic: S&P500 vs World Performance
Replies: 195
Views: 14131

Re: S&P500 vs World Performance

Isn’t American outperformance mostly down to FAANG? Who knows where the next FAANG will originate? I mean, in the next few decades we’ll probably have self driving flying cars, cures for lots of incurable diseases, amazing new green technology. I’d rather cast my net wide. It’s an easier decision f...
by LFKB
Mon May 11, 2020 10:00 am
Forum: Investing - Theory, News & General
Topic: Vanguard May 7 Webcast
Replies: 19
Views: 1928

Re: Vanguard May 7 Webcast

Many of you may know Vanguard had a live web cast yesterday concerning investing in the current climate. There were several points made during the session that surprised me. 1. Vanguard is using revised estimates for equities earnings over the next decade. They have moved to 6-7% vs 4%. 2. Vanguard...
by LFKB
Fri May 08, 2020 1:52 am
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 137
Views: 9469

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

The problem with many of these options to invest in a real estate or opportunity zone is that the tax break is theoretically priced into the asset, so you may be saving on taxes at the expense of lower future returns. I suppose there are ways to make it work if you hold for short enough, but I haven...
by LFKB
Fri May 08, 2020 1:24 am
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 137
Views: 9469

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

You should have done your tax planning before selling and not after. One way to potentially do it would have been to hedge your position so you could essentially lock in your gain but realize half your gain this year and half of it next. That would have resulted in a much lower tax burden given you ...
by LFKB
Thu May 07, 2020 1:39 am
Forum: Personal Finance (Not Investing)
Topic: 529: Your favorite low cost one?
Replies: 77
Views: 5292

Re: 529: Your favorite low cost one?

I use Nevada because they have low cost Vanguard investment options and it interfaces directly with the Vanguard website/app and I didn’t want to have to manage another platform
by LFKB
Mon May 04, 2020 3:04 pm
Forum: Investing - Theory, News & General
Topic: Is Disney the most tempting value stock?
Replies: 223
Views: 13946

Re: Is Disney the most tempting value stock?

Disney is not at all a value stock. Even after the share price has come down, the stock is still valued very highly on both a P/E and EV/EBITDA basis. A huge chunk of their earnings (parks, movies, ESPN, cruise ships) is in a really tough spot right now and the one bright spot if Disney Plus.
by LFKB
Fri May 01, 2020 1:51 pm
Forum: Investing - Theory, News & General
Topic: If you invest in REITs, are you sticking with VNQ/VGSLX or getting selective
Replies: 47
Views: 6365

Re: If you invest in REITs, are you sticking with VNQ/VGSLX or getting selective

I recently diversified my REIT position from 100% VNQ to about 15% AGNC and the remaining 85% VNQ. I’ll likely add more AGNC soon as well.

AGNC has a 12% dividend, trades below book value and 90%+ of the paper they own is backed by Fannie, Freddie and Ginnie.
by LFKB
Fri Apr 24, 2020 3:54 pm
Forum: Personal Investments
Topic: Does anyone sell puts in order to force re-balancing and collect premiums?
Replies: 34
Views: 1897

Re: Does anyone sell puts in order to force re-balancing and collect premiums?

I called today. I can sell an October SPY 245 (think of that as SP500 At 2450) put at $15.65. I would write two contracts, meaning I would collect $3,130 in premium. The worst case scenario would be that I have to buy 200 shares of SPY at $245 for $49k and I would have collected $3,130 to do that. I...
by LFKB
Thu Apr 23, 2020 10:17 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 927
Views: 68775

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

I have been living this advice for the past year, ever since I saw the LTT Light. It has paid off handsomely, to say the least. Both in terms of absolute return and equity risk mitigation. What made you see the light and decide on LTT and how do you allocate your bond allocation between LTT and oth...
by LFKB
Thu Apr 23, 2020 8:53 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 927
Views: 68775

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

I have been living this advice for the past year, ever since I saw the LTT Light. It has paid off handsomely, to say the least. Both in terms of absolute return and equity risk mitigation. What made you see the light and decide on LTT and how do you allocate your bond allocation between LTT and oth...
by LFKB
Thu Apr 23, 2020 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Moving out of NYC due to pandemic
Replies: 164
Views: 13269

Re: Moving out of NYC due to pandemic

Why did you move to NYC in the first place? I wouldn’t over react to this too much during the thick of it. The whole world could feel very different in a month or two. However, if you didn’t love NY in the first place then I’d say go for it. I love visiting NY but I would never want to raise a famil...