Search found 616 matches

by Chadnudj
Sat Jul 15, 2017 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Reduce MAGI
Replies: 8
Views: 1270

Re: Reduce MAGI

Hello, I am on track to make $105 this year, making maximum contributions to 401k and HSA. Full-time grad student and filing single; not a homeowner. I am interested in learning about possible strategies for reducing my MAGI to enable deductions for education expenses and student loan interest paym...
by Chadnudj
Sat Jul 15, 2017 9:18 am
Forum: Personal Finance (Not Investing)
Topic: What am I missing here? [I'm a bachelor]
Replies: 51
Views: 3131

Re: What am I missing here? [I'm a bachelor]

Looked at a house today, $240,000 with a 30 year fixed at 3.75% APR I will pay $270,000 in interest/$510,000 total principle+interest at the end of the 30 years. Add in all the home maintenance, and the taxes. This is why I rent. I have no kids, no wife. Don't need it. The white picket fence Americ...
by Chadnudj
Fri Jul 14, 2017 7:12 am
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4603

Re: When to max out 401k (Aspiring Early Retiree)

I am loathe to implement it because I fear getting into debt. Lifestyle creep should be avoided, but not every major expense will be lifestyle creep. For example, my car breaks down and I need a new one. What if I can't pay cash to repair it because i dont' have enough reserves? Then I need to buy ...
by Chadnudj
Sat Jul 08, 2017 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Helping an 18 year old start investing
Replies: 16
Views: 824

Re: Helping an 18 year old start investing

VTSAX (or, since they're younger and probably not eligible for Admiral Fund Shares, the Investor Shares of the same), all the way. Actually, VTI (the ETF version of VTSAX) might be even better, since there is no minimum necessary (save the amount to buy 1 full share) They are 18 years old, and have ...
by Chadnudj
Mon Jul 03, 2017 12:23 pm
Forum: Investing - Help with Personal Investments
Topic: The conundrum I am in concerning need vs desire
Replies: 19
Views: 2196

Re: The conundrum I am in concerning need vs desire

Friends, In just a few weeks I will be retiring and will be moving my 401K to a Vanguard traditional IRA. The IRA will be a 3-fund portfolio of TSM, TINTL, and TBM. (The current 401K is in the American Fund Balanced Fund which has approximately a 60/40 asset allocation). My military retirement and ...
by Chadnudj
Mon Jul 03, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Student loan payoff vs emergency fund or continue investing
Replies: 20
Views: 1720

Re: Student loan payoff vs emergency fund or continue investing

I'll be a slight dissenter here: Don't worry about increasing the emergency fund. You have a taxable account of $132k, that you're contributing around $36k a year to. That IS an emergency fund -- you could always sell shares if you needed money, and do so in as tax-efficient a manner as possible. Yo...
by Chadnudj
Sun Jul 02, 2017 9:38 am
Forum: Investing - Help with Personal Investments
Topic: 33 and getting serious about retirement
Replies: 17
Views: 2133

Re: 33 and getting serious about retirement

I'll just say you should really consider re-financing those student loans -- SoFi and others have much lower interest rates than that for someone like yourself (high earner, highly educated, etc.)....you're likely to find rates down near 4% if not lower than that if you can stomach a variable intere...
by Chadnudj
Thu Jun 29, 2017 9:35 am
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 142
Views: 9804

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

There is, of course, a middle ground between both positions. 1. You set asset allocation ranges that are comfortable based on your age/ability to take risk/need to take risk, etc. and 2. You allow yourself to fluctuate within those ranges based on valuations. So, for instance, someone could say tha...
by Chadnudj
Thu Jun 29, 2017 12:16 am
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 142
Views: 9804

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

Who cares what we call it? Let them call it market timing if they wish. Look guys. If you want to change your AA based on valuations, be my guest. It may indeed be the smart thing to do. But quit making up terms. You are not buying and holding if you change your AA back and forth based on valuation...
by Chadnudj
Wed Jun 28, 2017 11:48 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 142
Views: 9804

Re: CAPE Ratios?

Bogleheads: One of the benefits of Boglehead stay-the-course investing is that CAPE ratios are meaningless. Stay the course. No matter what happens, stick to your program. I've said stay-the-course a thousand times and I meant it every time. It is the most important single piece of investment wisdo...
by Chadnudj
Wed Jun 28, 2017 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: Howdy! Seeking some [401k] advice please
Replies: 7
Views: 653

Re: Howdy! Seeking some advice please

After reading the above, looks like I've decided to lean towards the 90% stocks and 10% bonds. I'm just looking for any suggestions to better my current 401k plan. In that case, I'd put 100% of your 401k contributions (and I agree with previous posters -- do all of it Traditional 401k, don't do Rot...
by Chadnudj
Wed Jun 28, 2017 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: I need a strategy to address debt and savings
Replies: 38
Views: 4070

Re: I need a strategy to address debt and savings

Oh, also, forgot to ask: would it make sense to try to refinance my student loans to a private lender like Sofi? My federal loan is a consolidation. I work in private industry, so there's no concern with missing out on the loan forgiveness public service benefit. Not going to happen for me. No one ...
by Chadnudj
Wed Jun 21, 2017 8:33 am
Forum: Personal Consumer Issues
Topic: Oregon personal Trip
Replies: 25
Views: 1950

Re: Oregon personal Trip

I definitely loved Crater Lake, so another vote for it (particularly if you have a lot of time to hike/enjoy hiking). I'd also definitely drive the Columbia River Gorge with plenty of time to stop and hike the waterfalls along the way -- simply gorgeous scenery, and Hood River at the east end of it ...
by Chadnudj
Tue Jun 20, 2017 6:13 am
Forum: Personal Finance (Not Investing)
Topic: Storing funds for a house
Replies: 10
Views: 1332

Re: Storing funds for a house

A 3-5 year timeline is JUST getting to the point where you can likely/probably do better investing it rather conservatively than just putting it in CDs/high-interest savings. I'd echo the Vanguard LifeStrategy option -- the LifeStrategy Income fund is a 20/80 stocks to bonds fund that should give yo...
by Chadnudj
Mon Jun 19, 2017 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: So sick of it! [Paying off student loans]
Replies: 42
Views: 6385

Re: So sick of it! [Paying off student loans]

Gang, I have 4 kids and we have one income so I am terrified to have less than 100k cash in the bank. I will probably have about 135k or so by October or November. This seems to be the answer to your question. Keep $100k in cash in the bank. Divert the $35k plus whatever extra you have every month ...
by Chadnudj
Mon Jun 12, 2017 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: Pay Mortgage vs. Buy Bonds
Replies: 61
Views: 5110

Re: Pay Mortgage vs. Buy Bonds

I don't think it's a "no brainer" to pay off the mortgage (or more accurately accelerate principal payments on your mortgage) than buy bonds. Bonds have (relatively) instant liquidity. Equity in your home does not. That liquidity aspect should play a role in your analysis, at minimum. Not ...
by Chadnudj
Mon Jun 12, 2017 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: New(ish) to investing - Too much cash? - Need guidance
Replies: 10
Views: 1437

Re: New(ish) to investing - Too much cash? - Need guidance

My advice: Move forward. You have too much in cash? So what? Treat it as a VERY large emergency fund (almost surely more than 1 year expenses, probably 2-3). Everyone needs one anyway and typically builds it at the same time as building their other retirement/taxable savings....you just took a diffe...
by Chadnudj
Mon Jun 12, 2017 7:09 am
Forum: Personal Consumer Issues
Topic: Your fav espionage/thriller books for summer
Replies: 4
Views: 654

Re: Your fav espionage/thriller books for summer

I highly recommend Chris Pavone's "The Expats." It's kinda sequel, "The Accident," is also very good.
by Chadnudj
Sat Jun 10, 2017 12:24 am
Forum: Investing - Help with Personal Investments
Topic: How to divide investments for early retirement
Replies: 16
Views: 2065

Re: How to divide investments for early retirement

I'll just note that, per your post, you just bought a home that you're planning as your forever home and have a forecast that you can pay it off in 20 years. Given you're currently 32, that means 52. So, that means, when you're 52 or so, you'll all of a sudden have a rather substantial amount of mon...
by Chadnudj
Wed May 31, 2017 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Which debt to pay off first?
Replies: 37
Views: 2745

Re: Which debt to pay off first?

I'll go against the grain. In your situation (dual-income, no kids, but plenty of debt as obligations on your paychecks every month), I think cashflow is king. You need to use this $60k to free up as much cashflow as possible for the two of you as you can, since that will (a) stretch your emergency ...
by Chadnudj
Wed May 31, 2017 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Should I max out wife's 401k
Replies: 26
Views: 1508

Re: Should I max out wife's 401k

Even with high fees like that, you should max out her 401k (so long as you've first maxed out your own hopefully better 401k and IRAs for the both of you first). I'd also have your wife talk with the employer (ideally along with some co-workers) about finding a better 401k plan. Employers can get in...
by Chadnudj
Fri May 26, 2017 2:56 pm
Forum: Personal Consumer Issues
Topic: Worth it to Refinance?
Replies: 18
Views: 1158

Re: Worth it to Refinance?

I can see how the PMI comes out as more expensive than the student loans, but there is a large red flag here -- your student loans are currently variable interest rates. And we know the Fed is planning to raise rates in the near future. While that's FAR from certain to happen, it's a known risk and ...
by Chadnudj
Fri May 26, 2017 9:28 am
Forum: Personal Consumer Issues
Topic: Worth it to Refinance?
Replies: 18
Views: 1158

Re: Worth it to Refinance?

I would probably use the funds to pay off the student loan in full first. Then I'd throw the remaining money at the car loan and use my former student loan payment to accelerate payments. I would want to free up cash flow first, then use that to pay down debt, or invest, or whatever. You can get PM...
by Chadnudj
Mon May 22, 2017 2:43 pm
Forum: Personal Consumer Issues
Topic: What to do w/ $60k Lump Sum?
Replies: 33
Views: 2490

Re: What to do w/ $60k Lump Sum?

So here's the situation. I am selling a property and will walk away with roughly $60k at closing. I have the following debt/situations: 1) Current house - only put 3% down on a $362k house so I pay PMI. The PMI is $192 a month and my interest rate is 3.5% for 20 years. There is no length of time I ...
by Chadnudj
Mon May 22, 2017 2:38 pm
Forum: Investing - Theory, News & General
Topic: Why Invest in Average?
Replies: 34
Views: 3266

Re: Why Invest in Average?

I love that this commercial involves an expert artist building a needlessly complex and expensive installation of art over the course of an entire day, presumably, that only results in accomplishing its goal at night when a light shines on it at a specific angle. (In other words, active management) ...
by Chadnudj
Fri May 05, 2017 8:45 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with inheritance
Replies: 37
Views: 3672

Re: What to do with inheritance

Sorry for your loss. One practical idea I can offer you -- once you pay off your student loans (perhaps with the cash portion of the sale of the property), continue to make your student loan payments but into 529 accounts for your kids. It's basically the same Boglehead-ish principle of paying your ...
by Chadnudj
Mon May 01, 2017 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401(k) - should we do a traditional or Roth IRA?
Replies: 15
Views: 806

Re: Roth 401(k) - should we do a traditional or Roth IRA?

Change your husband's current level of contribution to a traditional 401k.

Then take the increased monthly paycheck, and invest the increase/difference in Roth IRAs (and/or taxable accounts once you max out the Roth IRAs).

That's the easiest/best approach, most likely.
by Chadnudj
Wed Apr 19, 2017 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Inherited over $500k looking to invest & produce income
Replies: 13
Views: 2537

Re: Inherited over $500k looking to invest & produce income

Thanks for the comments and reply. In no way am I taking anything personally and I truly appreciate all of the feedback. I have no desire to distribute more eggs into real estate than other areas, but I am more comfortable in that area because I've spent a large part of my life working in most of t...
by Chadnudj
Mon Apr 17, 2017 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts about de-risking 529 investment allocation
Replies: 9
Views: 748

Re: Thoughts about de-risking 529 investment allocation

Given the fact that each child now has more than $50k for each year of an assumed 4 year college education (and taking into account the current investment climate), I am considering transitioning their investment allocations (which can only be done twice per year) from aggressive to moderate or eve...
by Chadnudj
Mon Apr 17, 2017 11:30 am
Forum: Investing - Help with Personal Investments
Topic: Lump sum investment or DCA?
Replies: 25
Views: 1514

Re: Lump sum investment or DCA?

I finally setup a trust account for personal investing. Should I invest a lump sum this week, 20k in the total stock market, or DCA monthly for 2017. I'm interested in accelerating my retirement savings. I'm 41, I max out my 401k and IRA, using the 3 fund approach. Target retirement age is 68. I co...
by Chadnudj
Mon Apr 10, 2017 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: Need suggestions to invest 50K.
Replies: 10
Views: 1025

Re: Need suggestions to invest 50K.

Greetings. I have been a visitor of this forum for a while and the Boglehead philosophy has helped me a lot after I lost a lot of money in the 2008 crash. I am in a bit of dilemma about investing $50K which I will need in about 5 years for my sons college tuition. Currently the money is in a money ...
by Chadnudj
Sun Apr 09, 2017 9:02 am
Forum: Investing - Help with Personal Investments
Topic: 36yo looking for feedback
Replies: 25
Views: 3763

Re: 36yo looking for feedback

2. Thoughts on my asset allocation are appreciated. I think I have a high risk tolerance, but looking back at 2008, my balance was so much lower that I didn’t really lose much. Age in bonds has always felt too conservative to me, but that was assuming I worked until 62. FWIW, I'm about the same age...
by Chadnudj
Thu Apr 06, 2017 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401K or Traditional 401K?
Replies: 21
Views: 1067

Re: Roth 401K or Traditional 401K?

I apologize if it seems like I'm hijacking OP's thread. I think I need to switch to Traditional as I have been doing Roth while my salary has been increasing. But wouldn't 4% of ~$1.2MM put me in the same tax bracket that I am currently in? Yes. And when your traditional balance starts to approach ...
by Chadnudj
Wed Apr 05, 2017 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401K or Traditional 401K?
Replies: 21
Views: 1067

Re: Roth 401K or Traditional 401K?

Hi, I'm looking for Boglehead advice on this one. I have been investing in my company regular 401K (5% with a match of 5%) for several years now. I currently have a balance of $55,000 in it. I recently learned that the company is now offering a Roth 401K option as well. Should I consider moving my ...
by Chadnudj
Tue Apr 04, 2017 12:12 am
Forum: Personal Finance (Not Investing)
Topic: Advice Needed: Enough to Retire, but the Tax Bill is a shock
Replies: 58
Views: 8622

Re: Advice Needed: Enough to Retire, but the Tax Bill is a shock

I'm sure others have given good tax advice....but given that one of your goals is to "leave something to heirs" and you seem to have more than enough (between pension, SS, and savings) to retire, may I suggest you: (a) Open up a 529 plan for your daughter (you can later change the benefici...
by Chadnudj
Mon Apr 03, 2017 11:56 pm
Forum: Investing - Theory, News & General
Topic: Social Security for Millennials
Replies: 144
Views: 14925

Re: Social Security for Millennials

I'm not worried about it at all. Why? 1. I'm 37, and do not have near 25-33 times expenses saved. Hell, I'm not entirely certain what my long term expenses will be, what with having two kids under the age of 3. 2. I'm healthy and currently employed, and generally speaking enjoy my work/going to work...
by Chadnudj
Fri Mar 31, 2017 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Saving 50% of salary; what does it really mean?
Replies: 142
Views: 11482

Re: Saving 50% of salary; what does it really mean?

Often I come across references to saving over 50% of salary on this forum. I am little bit perplexed how that is possible. I ran some numbers on taxformcalculator.com with dual income professional couple over 55 and assumed their combined salary $300K. Even without including the real estate taxes o...
by Chadnudj
Thu Mar 30, 2017 10:38 am
Forum: Investing - Help with Personal Investments
Topic: Sanity Check, or does it even matter if I'm sane?
Replies: 19
Views: 2060

Re: Sanity Check, or does it even matter if I'm sane?

I should have stated my question re $2M better. We have enough to support our lifestyle with just the cash bucket, but I want to be sure that we can handle an otherwise ruinous medical situation, a tragic car accident where innocents are injured/killed, etc. On the latter, maybe just buy a large um...
by Chadnudj
Fri Mar 10, 2017 12:58 am
Forum: Investing - Help with Personal Investments
Topic: Need 3% from $657K annually. What AA is best?
Replies: 21
Views: 3614

Re: Need 3% from $657K annually. What AA is best?

Maybe I'm foolhardy, but I personally am hoping to say in either Vanguard LifeStrategy Growth (80/20) or LifeStrategy Moderate Growth (60/40) forever (probably Moderate, just to be safe, but who knows.....I'm 37 now, and may have entirely different feelings about risk when I'm 47 or 57 or 67) I get ...
by Chadnudj
Wed Mar 08, 2017 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA and Roth 401k
Replies: 11
Views: 745

Re: Roth IRA and Roth 401k

Given your situation (single, making $70k a year, want to save for a house), I'd: 1. Change your future Roth 401k contributions to traditional 401k, and save up to the match. 2. Open a Roth IRA and try to get it up to the $5500 a month match. 3. Then try to increase the traditional 401k up to the ma...
by Chadnudj
Tue Mar 07, 2017 8:14 am
Forum: Investing - Help with Personal Investments
Topic: roth vs traditional 401k
Replies: 16
Views: 1203

Re: roth vs traditional 401k

In almost 99% of situations, the traditional 401k is better than the Roth. I suspect you are within that 99%, unless you (a) have a sizeable pension and/or (b) already have a large amount of money in traditional 401ks/IRAs and are near to (5-10 years away from) retirement. Do the traditional 401k, a...
by Chadnudj
Mon Mar 06, 2017 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: At what age did you drop life and disability insurance?
Replies: 56
Views: 4101

Re: At what age did you drop life and disability insurance?

We have $2.25 million ($1.5 million on me, $750k on wife) in term life insurance that we can keep up until age 80. Given the relatively low cost of it (we're just 37), I'm planning on keeping it forever, even beyond reaching FI, to provide a windfall in case either/both of us die before 80 (and my f...
by Chadnudj
Wed Mar 01, 2017 3:15 pm
Forum: Personal Consumer Issues
Topic: Favorite survival books?
Replies: 41
Views: 3756

Re: Favorite survival books?

River of Doubt, all about Teddy Roosevelt and his son's journey in the Amazon....really interesting story of survival with a historical angle....
by Chadnudj
Tue Feb 28, 2017 12:17 pm
Forum: Investing - Help with Personal Investments
Topic: 100K gift for kids education...where to put it.
Replies: 35
Views: 2520

Re: 100K gift for kids education...where to put it.

I would put it all in 529's. I am curious as to your reasons why not. I do not like UGMA's because there is no guarantee the funds will be spent on education. What if one or more of the kids decide not to go to college? Then you could roll that money over for that kid's (hopeful) eventual children.
by Chadnudj
Tue Feb 28, 2017 10:31 am
Forum: Personal Finance (Not Investing)
Topic: 2016 Tax Refund...Wife asked, "Is it legal?!?!"
Replies: 17
Views: 3672

Re: 2016 Tax Refund...Wife asked, "Is it legal?!?!"

Now when you withhold for the whole year, your refund will be even bigger for 2017! But you know, I'm sure, that the tax refund is really YOUR money since you over-withheld from your paychecks. So don't forget to update the amount with your employer(s). While celia is, of course, right, I will note...
by Chadnudj
Mon Feb 27, 2017 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan fixed vs variable
Replies: 3
Views: 268

Re: Student Loan fixed vs variable

I'll go contrary to the rest of the advice here, somewhat. 1.34% (the difference between the 10 year fixed 4.49% rate and the 10 year variable 3.15% rate) is pretty large. Given that the Fed bumps interest rates seemingly a 0.25% increments, and at least recently has tended to do so rather slowly (l...
by Chadnudj
Sun Feb 26, 2017 8:39 am
Forum: Personal Consumer Issues
Topic: critique Italian itinerary
Replies: 34
Views: 2604

Re: critique Italian itinerary

You spent only one day in Firenze, one of the most beautiful - art and architecture and countryside - cities in the world? Please reconsider staying longer on this trip. Agreed. I'd actually skip Cinque Terre -- it's fine and all, but that time of year it'll be a bit cooler (and the most fun in Cin...
by Chadnudj
Sat Feb 25, 2017 11:03 pm
Forum: Investing - Help with Personal Investments
Topic: Please evaluate our situation
Replies: 47
Views: 3541

Re: Please evaluate our situation

I would look carefully at the numbers for repaying the money back to her pension. It may very well pay off for her to repay it and delay collecting it, I just don't know. (I did repay in a similar plan, and it has paid off very well.) I agree that Life Strategy Growth may be the way to go. Where do...
by Chadnudj
Fri Feb 24, 2017 11:47 pm
Forum: Investing - Theory, News & General
Topic: Please vote on the wisest decision
Replies: 50
Views: 3652

Re: Please vote on the wisest decision

This is the IRS defination of "Covered by an Employer's Retirement Plan": "You’re covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has a: Defined contribution plan (profit-sharing, 401(k), stock bonus and money purchase pension plan) ...
by Chadnudj
Fri Feb 24, 2017 11:40 pm
Forum: Investing - Theory, News & General
Topic: Please vote on the wisest decision
Replies: 50
Views: 3652

Re: Please vote on the wisest decision

Also, I'm missing something, but why can't your wife do a traditional IRA because she has a pension? That makes no sense to me....she should be able to do a Roth OR Traditional IRA, even if she qualifies for a pension....heck, many workers with pensions ALSO have a 401k (or the public sector equiva...

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