Search found 26 matches

by mm9811
Tue May 21, 2019 5:17 pm
Forum: Investing - Theory, News & General
Topic: Delaying social security = harming nest egg?
Replies: 74
Views: 7928

Re: Delaying social security = harming nest egg?

Two things to consider.
First, as mentioned, between 66 and 70 the amount goes up 8% per year. Also added to this is the annual "inflation adjustment" to social security.
Second, If you're married there is a spousal benefit. Even though I was by far the high income earner in my family, the spousal benefit I getting is about 40% of what I would otherwise get if I took social security now (I'm 66)
We do have other investments to live off, so we are not in dire need of the social security income.
by mm9811
Tue May 21, 2019 4:45 pm
Forum: Personal Consumer Issues
Topic: Renewing TSA Precheck
Replies: 18
Views: 2729

Re: Renewing TSA Precheck

In answer to your original question. I have renewed my prechek and it added 5 years on to my expiration date.
by mm9811
Sat Aug 24, 2013 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Buying an MLS listed property without an agent
Replies: 30
Views: 3478

Re: Buying an MLS listed property without an agent

The answer to your question is very unlikely. However, there are agents out there that will assist in a purchase for a flat fee or a discount off the regular commission. Although, these same agents may not be the best negotiators if you need help with that. I've made a fortune in real estate and detest using most agents, but I still am forced to because they know what is on the market. However, I have found that typically the very best agents, that do the most sales in their market are the best to go with as they tend to be good negotiators. Consider how they earned so many sales, they are able to beat up the seller and buyer into making a deal. As I don't budge on my end they end up beating up the other party on my behalf. I still resent t...
by mm9811
Sat Aug 24, 2013 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a car - comparing prices
Replies: 8
Views: 1770

Re: Buying a car - comparing prices

I think your logic is fine. Also 200k on either car is not unrealistic, although 14 years might be depending on where you live (you know that thing called weather). Also for new cars consider pricing at truecar.com. Another consideration for new is manufacturers cheap financing/ rebate deals. Particularly at the end of a model year you might be able to pick up a great deal on a 2013 car.
by mm9811
Fri Jul 19, 2013 6:03 pm
Forum: Personal Investments
Topic: I think I just won the game … have I and what do I do next?!
Replies: 55
Views: 10895

Re: I think I just won the game … have I and what do I do ne

Congratulations There is good advice here about investing and you seem to have a handle on what you are comfortable with. I have retired 3 times, the first time around your age having made a bundle of money and having kids. I had a similar life in southern CA but didn't want to raise kids here. Moved to an awesome place and ended up with kids that have there head screwed on right. Also took time for myself and my wife to enjoy life. It sounds like you are on the same track. I would encourage you to really think about what is important in your life. To me, money buys freedom. Freedom to live as you choose, live where you choose, devout yourself to things that may not make a dime but are rewarding to you. etc. If you would like personal advic...
by mm9811
Tue Mar 12, 2013 12:20 pm
Forum: Personal Investments
Topic: Investing for 100 years!!! less wordy version!!
Replies: 17
Views: 3843

Re: Investing for 100 years!!! less wordy version!!

Aptenodytes: Well the 100 year thing isn't a joke, the idea is to leave it alone. Most of us think about money for retirement, money for the kids, money for our favorite charities, money for relatives etc. Well what do you do when that is already covered? Yes, I could give it all to some charity but I find my small gifts seem to do more than my big gifts. The big gifts seem to be about ego, getting something named after you... well that is just not me. One thing money can buy is freedom. Freedom from having to work a regular job to pay the rent. Freedom to be an artist, a musician, a writer, a philosopher. Freedom to dedicate yourself to charity work. Not until recently have I thought real long term (100 years) but it puts things in a diffe...
by mm9811
Mon Mar 11, 2013 1:27 pm
Forum: Personal Investments
Topic: Investing for 100 years!!! less wordy version!!
Replies: 17
Views: 3843

Re: Investing for 100 years!!! less wordy version!!

Watty
We have gifted sizeable portions to charities already and continue to do so. As I hope to live another 30+ years I'm not looking to resolve everything today, and I figure when I or my wife dies the other spouse will get serious about the rest of the estate. I was thinking that the money I've earned could be transfered to future generations. Part of this will be to set up a "family constitution" which will specify how funds can be used. (ie education, charity etc). I don't want to have a bunch of spendthrifts trying to be the next Paris Hilton! I'm a deliberate and methodical person. I think the first step is to get the investments set up.
thanks for your thoughts.
by mm9811
Sun Mar 10, 2013 7:28 pm
Forum: Personal Investments
Topic: Investing for 100 years!!! less wordy version!!
Replies: 17
Views: 3843

Re: Investing for 100 years!!! less wordy version!!

Thanks everyone for the thoughts and insights. I find it always helpful to get other opinions. NYDAD. I don't think my AA is aggressive because I look at the Real Estate as very solid. No real estate is not guaranteed to go up, but the long term trend is up. I have conservatively financed my projects that I can weather the downturns in the market. The aggressive RE investors who leveraged to the hilt lost everything in the recession. I on the other hand had plenty of dry powder to pickup some bargains. My house mortgage represents about is about 4% of my net worth and because how it was structured and used I'm able to deduct it as a passive expense (not home mortgage interest on Schedule A) which is advantageous for me. Thanks for your idea...
by mm9811
Fri Mar 08, 2013 7:25 pm
Forum: Personal Investments
Topic: Am I financially ready to buy this house?
Replies: 40
Views: 3650

Re: Am I financially ready to buy this house?

OP I don't think your nuts! This is how I started out many years ago. You are taking a risk and a gamble and only you can decide if it is worth it. As everyone has said your cash flow is very tight, but perhaps that will motivate you to try harder. The downside is vacancy, repairs, maintenance and tenant turnover. Even in very strong rental markets is a tenant moves out it may take a month or so to re rent the unit. And you will probably have to re-paint, re carpet or do other touch ups between tenants. As has been pointed out. You will get a lot of tax benefits. You only depreciate the building, so you will have to figure what the land is worth then figure out what percentage of the building you rent out and depreciate that amount. Dependi...
by mm9811
Fri Mar 08, 2013 7:11 pm
Forum: Personal Investments
Topic: Investing for 100 years!!! less wordy version!!
Replies: 17
Views: 3843

Re: Investing for 100 years!!! less wordy version!!

Thanks letsgobobby. I hope the new shortened version is more understandable.
by mm9811
Fri Mar 08, 2013 1:54 pm
Forum: Personal Investments
Topic: Investing for 100 years!!! less wordy version!!
Replies: 17
Views: 3843

Investing for 100 years!!! less wordy version!!

With a lot of hard work and good luck I have made much more than I will ever need. My goal is to take the bulk of my assets and let them grow. Thus I am looking at investing for 100 years! I’m thinking real long term!! I have recently read several of the recommended books. My net worth excluding house but including RE investment properties is in the low-mid 8 figures, without the Real Estate it is in the low 8 figures. Debt: I have no debt except 3.75% mortgage on primary residence and mortgages on various real estate holdings all under 50% loan to value. Tax Filing Status: Married filing jointly Tax Rate Fed: 33% (funny you gift away half your income assets to daughter you have less taxes too!) State Tax Rate: 9.3% for California Age: 59 a...
by mm9811
Wed Mar 06, 2013 11:44 am
Forum: Investing - Theory, News & General
Topic: "Debunking the Myth of the 8% Return"
Replies: 61
Views: 7312

Re: "Debunking the Myth of the 8% Return"

+1 for ERIC

Whenever I read these things I think of people saying "but this time it is different" be that the stock market, the real estate market or any other business.
by mm9811
Mon Feb 18, 2013 7:40 pm
Forum: Personal Investments
Topic: Confusion on Calif Muni Bond Fund VCADX
Replies: 7
Views: 1444

Re: Confusion on Calif Muni Bond Fund VCADX

I'm sorry if I'm being a little slow. But given my scenario above, it seems the advantage of holding actual bonds is you receive the full amount at maturity. While with a bond fund currently paying very low interest you have significant risk of losing principal. In other words given a 2% interest rate increase in the next five years, you will earn less interest with an individual bond then a bond fund. But with a fund you stand to lose significant principal. I guess my question is if say interest rates go up 1% the bond fund with a 5 year duration will go down 5%.
by mm9811
Sun Feb 17, 2013 1:58 pm
Forum: Personal Investments
Topic: Confusion on Calif Muni Bond Fund VCADX
Replies: 7
Views: 1444

Re: Confusion on Calif Muni Bond Fund VCADX

Grabiner, Thank you for the detailed and well explained information. I am still a little unclear on how interest rate risk would effective a bond fund. In response to my question 3) What I'm really concerned about is interest rate risk. If interest rates rose by 1% what would happen to my principal? you said You will lose an amount equal to the duration (5% for this fund since it has a 5-year duration) and make it up in higher yields if you hold the bonds for that amount of time. The same thing happens to the market value of your individual bonds. Lets take an example. For purposes of an example, I will ignore the diversification benefit of a fund. Assume 100,000 invested for 5 years. Current rates 1.6%, in year 3 market rates go to 2.6% an...
by mm9811
Fri Feb 15, 2013 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Green / Energy-saving home. New build or Reno experience?
Replies: 48
Views: 3949

Re: Green / Energy-saving home. New build or Reno experience

To be honest, energy efficiency is not the be all end all of environmentally friendly. I would suggest that you look at what you really mean when you say you would really like a home that is energy efficient. Get a little more detailed about the things that are important to you and allow that to guide your decision and realize that there isn't likely to be a perfect solution. It may be that choosing an existing home is more in line with what you really want, even if it isn't as energy efficient as a specially built new home. I agree with this. Energy efficiency is a factor, just as many, many other things are. It is all a trade off. Billy G got it right with.. And we were very anal about all window flashing, and sealing every penetration d...
by mm9811
Fri Feb 15, 2013 6:31 pm
Forum: Personal Investments
Topic: Confusion on Calif Muni Bond Fund VCADX
Replies: 7
Views: 1444

Confusion on Calif Muni Bond Fund VCADX

I have a significant portfolio of laddered CA intermediate muni bonds which have several maturing over the next three years. I'm of the belief that rates will go up in the next 3 to 5 years. In looking at VCADX. I'm confused by information at M* vs Vanguard. M* shows yield of 3.25%, avg duration 5.06yrs avg maturity 5.5 years yet only 22% of the bonds show a maturity under 7 years and 12% under 5 years. On Vanguard's site the SEC Yield is 1.6% with similar maturity and duration to M* and 54% of bonds maturing over 5 years. 1) What is the difference between M* Yield (3.25) and Vanguard Yield (1.6)? 2) How can M* show so many long maturities and yet show a 5.5 avg maturity? 3) What I'm really concerned about is interest rate risk. If interest...
by mm9811
Fri Feb 15, 2013 4:02 pm
Forum: Personal Investments
Topic: When is a bank CD safer than a bond fund?
Replies: 50
Views: 5880

Re: When is a bank CD safer than a bond fund?

At this time, with ultra low interest rates the EE Bonds are a "no brainer" only limitation is you have to hold for 1 year and 3mo interest penalty if you redeem before 5 years and of course the 10k limit. I don't see any justification for a bond fund unless you think interest rates are NOT going to rise anytime in the next 10years+. This is one of those times in history where we know the direction of future interest rates. The only question is when will they rise, not if.
by mm9811
Fri Feb 15, 2013 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Green / Energy-saving home. New build or Reno experience?
Replies: 48
Views: 3949

Re: Green / Energy-saving home. New build or Reno experience

As a long time builder of luxury homes I have often been asked to exceed any code required energy requirements. Some general advise. In the building business there are always "NEW AND INNOVATIVE" products that will "SAVE TIME AND MONEY" and "SAVE ENERGY" blah, blah, blah. They are not to be trusted unless they are by a major manufacture AND have been around for some years. Why do I say this? Many great products are invented, but when subject to real world field conditions do not work or live up to there claims for one reason or another. Dual Glazed windows, which I recommend everyone use in every climate are now proven technology. However, when they were introduced they were built in very low volume and often e...
by mm9811
Fri Feb 15, 2013 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Green / Energy-saving home. New build or Reno experience?
Replies: 48
Views: 3949

Re: Green / Energy-saving home. New build or Reno experience

I'm really curious about this. It's always said that radiant heat is more efficient than forced air, and I can see that being the case if you are heating the building all the time . However, in mild climates such as California, you don't need to heat 24 hours a day, even in the depths of winter. Do you, or anyone else, have any literature that speaks to the difference in energy used by radiant vs forced air if the occupants: a) turn off the heat during the day when they are at work b) turn off the heat at night because you're asleep under blankets anyways I would think that the difference between heating air, and quickly heating the huge thermal mass of a floor would shift the efficiency balance towards forced air in the case where the hea...
by mm9811
Tue Feb 05, 2013 9:56 pm
Forum: Personal Investments
Topic: Tax-free bond funds in high tax bracket
Replies: 9
Views: 1690

Re: Tax-free bond funds in high tax bracket

First off, congratulations on doing well in your business. I'm a retired builder/developer and one of the best things I ever did was set up a pension plan in my 20's. I don't know what is available to you, or all the laws now, but when I was doing it, my corporation was putting away 25% of my salary into a pension plan and of course this was deductible at the corporate level.
One thing on the muni's I'm not clear on is if interest rates go up, does the bond fund have capital losses? (as the value of the muni's goes down if interest rates go up)
best of luck to you. :D
by mm9811
Sun Feb 03, 2013 11:37 am
Forum: Personal Investments
Topic: Withdraw From IRA to install solar system
Replies: 18
Views: 2919

Re: Withdraw From IRA to install solar system

Suppose I could install a solar system at my house to zero out a $150/month electric bill for an up front investment of $30,000. If I withdraw that amount from my IRA, at a marginal income tax rate of 25%, wouldn't the income tax be offset by the 30% federal tax credit? http://www.energystar.gov/index.cfm?c=tax_credits.tx_index I will consult a tax expert, and calculate expected savings before proceeding, but I would appreciate Boglehead thoughts on this scheme? I am a massive fan of renewable energy. But, generally, it's not something you should reduce retirement savings accounts to do. Consider: - bad weather might damage the array - there could be other technical issues (inverters need replacing every 10 years) - performance might not b...
by mm9811
Sat Feb 02, 2013 5:55 pm
Forum: Personal Investments
Topic: Two Comma Club
Replies: 200
Views: 48008

Re: Two Comma Club

steve roy wrote:I can tell you MY mistake.

Having a broker/manager who took 2% off the top for twenty years. If I had been a Boglehead then (1970s, 1980s, 1990s) I would have been far better off. Happily, I was not stupid forever, just a quarter of a century.
Wow, Ive been stupid for nearly 40years (but only at 1%) so am I more or less stupid? Or More stupid and cheaper? I'll have to think that over! :oops:
by mm9811
Sat Feb 02, 2013 5:46 pm
Forum: Personal Investments
Topic: how to start investing at market highs?
Replies: 40
Views: 5602

Re: how to start investing at market highs?

Assuming your planning on contributing every year. Just put it in the market and "forget-a-bot-it"
:sharebeer
by mm9811
Sat Feb 02, 2013 5:37 pm
Forum: Personal Investments
Topic: Investing Contest Article
Replies: 18
Views: 1744

Re: Investing Contest Article

I had to chuckle a few times. The asset management firm BlackRock was a co-sponsor of the contest. The article quotes Michael Fredericks, lead portfolio manager for the BlackRock Multi-Asset Income Fund. “The traditional 60/40 approach to building a portfolio is on the way out, it is being replaced, he said, by tactical asset allocation, a strategy in which investors change their allocation based on the current pricing of asset classes." The BlackRock Multi-Asset Income Fund "A" shares have a 5.25% front-end commission and 1.30% annual fee (0.98% after waiver), "C" shares have a 2.03% fee (1.73% after waiver), and Institutional shares have a 1.03% fee (0.73 after waiver). It seems the only thing tactical going on h...
by mm9811
Sat Feb 02, 2013 5:25 pm
Forum: Personal Investments
Topic: Need a little basic portfolio/asset allocation advice
Replies: 14
Views: 1998

Re: Need a little basic portfolio/asset allocation advice

What I try and do as look at all my investments in one big pot. Figure out what I want to do, then allocate between the tax deferred and taxable accounts as appropriate. In you case, probably go with Equity Index fund (.07%) or the bond fund (.07%) in your 401k. Which one would depend on how you want to juggle the other investments.

To put this in perspective start out with your bond/equity mix (40/60) in dollars. Then figure out what you would like in dollars in each asset class. Then back into how to do this based on what you can/can't put into your 401k's and tax efficiency on your investments.

Also consider down the road when you will be retiring and how you want to change investments as you move along.
by mm9811
Sat Feb 02, 2013 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: 15yr vs 30yr Mortgage Question
Replies: 37
Views: 3462

Re: 15yr vs 30yr Mortgage Question

First, lets keep it simple. You only have so much that you can apply to your loan payments. Since roughly half your debt (student loan) is at 5.8% it makes sense to have the most amount of cash flow to pay down that debt so as most have said go with the 30 year. Second, I have been in real estate for over 40 years and have never seen rates close to current rates so as others have said lock up that cheap money for 30 years. If you have excess cash flow than start investing long term. Historic rates on equities is about 7% over inflation. Third, the one thing you haven't address is how long do you realistically plan to stay in the new house? Will you be starting a family in the next 10 years? Will you be having more/less income in the next 10...