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by EnjoyIt
Mon Mar 18, 2024 4:27 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 11186

Re: Can I retire with $1.75M at age 43?

Not if you have a bad sequence of return at the start. Again, this is just a pop-understanding of SWR research leading to misapplication. His social security benefit is likely very small with only ~20 years of earnings and it doesn't even sound like he's been earning all that much over that time. This is a disingenuous 'argument' that is ignoring what folks in this thread at least are saying. I don't see anyone suggesting the withdrawal rate is the problem. This forum is full of people retire early with withdrawal rates higher than 2% - very few of them I would suspect are doing so on an very lean spending, and that population may not be a good fit for this forum - there are others on the internet that are more suited to that lifestyle cho...
by EnjoyIt
Mon Mar 18, 2024 2:21 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 11186

Re: Can I retire with $1.75M at age 43?

WhiteMaxima wrote: Mon Mar 18, 2024 1:04 pm Health related cost will dry out 1.75M very easily.
How do you figure?

How do people with little money get healthcare in this country?
by EnjoyIt
Mon Mar 18, 2024 2:18 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 11186

Re: Can I retire with $1.75M at age 43?

No, it isn't really similar to that at all because the person currently spending $120k a year has a lot more room to lean out if the plan heads south than someone already living off of a very small level of expense. That's really the point all those people are making - he has little room for error on the downside when choosing a 40-60 year retirement at minimal expenses (relying on things like continued ACA subsidies at that). And basically it is a great example of how the pop understanding of the SWR research can be dangerous to people who really don't appreciate its limitations. Looking at withdrawal rate alone would be malpractice for anyone with a fiduciary responsibility - for an individual who is in their early 40s, well it isn't mal...
by EnjoyIt
Mon Mar 18, 2024 11:39 am
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 11186

Re: Can I retire with $1.75M at age 43?

The short answer is yes, if your expenses are currently in the 3K per month range and stay that way adjusted for inflation, then 1.75MM liquid assets will work just fine. This is standard FIRE/leanFIRE. To those saying no, I'd point out this is similar to someone with 5MM liquid and 10K per month expenses- which everyone would say 'go ahead and retire' all day long. No, it isn't really similar to that at all because the person currently spending $120k a year has a lot more room to lean out if the plan heads south than someone already living off of a very small level of expense. That's really the point all those people are making - he has little room for error on the downside when choosing a 40-60 year retirement at minimal expenses (relyin...
by EnjoyIt
Mon Mar 18, 2024 11:13 am
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 11186

Re: Can I retire with $1.75M at age 43?

The short answer is yes, if your expenses are currently in the 3K per month range and stay that way adjusted for inflation, then 1.75MM liquid assets will work just fine. This is standard FIRE/leanFIRE. To those saying no, I'd point out this is similar to someone with 5MM liquid and 10K per month expenses- which everyone would say 'go ahead and retire' all day long. No, it isn't really similar to that at all because the person currently spending $120k a year has a lot more room to lean out if the plan heads south than someone already living off of a very small level of expense. That's really the point all those people are making - he has little room for error on the downside when choosing a 40-60 year retirement at minimal expenses (relyin...
by EnjoyIt
Mon Mar 18, 2024 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Parents building a new house - how should they pay for it?
Replies: 52
Views: 4010

Re: Parents building a new house - how should they pay for it?

This is one of those don't ask don't tell scenarios. Just because they don't like it doesn't mean you can't or shouldn't do it. And if the lender does ask ... ? Second home which is true. And if the lender's home equity line application asks if the home in question is "for sale" or "intended to be sold shortly"? With all respect, I don't get why you think it's good to lie to a lender - especially the OP's parents who are older and (he's says) not in great shape. So they lie and then somehow one of them is speaking with the lender and innocently says, "Yes, we are moving to Indiana to be closer to my son." It's not like the lender will throw them in Bank Jail but why lie at all? Get a mortgage on the new house....
by EnjoyIt
Mon Mar 18, 2024 9:34 am
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 11186

Re: Can I retire with $1.75M at age 43?

mikejuss wrote: Mon Mar 18, 2024 7:41 am
smartinvestor2020 wrote: Mon Mar 18, 2024 7:36 am There isn’t a job out there that I would enjoy. I hate working for others. I wouldn’t start a business either.
Invest in some therapy, OP. Work gives life meaning.
Work does not give life meaning. It can and for plenty of people it does, but there is more to life than just work.

My family, my friends, and my hobbies give my life meaning far more than my job.

People who believe life is all about work are the same ones who hate retirement and get depressed. I will repeat, there is more to life than work.
by EnjoyIt
Mon Mar 18, 2024 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Parents building a new house - how should they pay for it?
Replies: 52
Views: 4010

Re: Parents building a new house - how should they pay for it?

PeninsulaPerson wrote: Mon Mar 18, 2024 1:11 am
EnjoyIt wrote: Sun Mar 17, 2024 4:27 pm
This is one of those don't ask don't tell scenarios. Just because they don't like it doesn't mean you can't or shouldn't do it.

And if the lender does ask ... ?


Second home which is true.
by EnjoyIt
Sun Mar 17, 2024 7:48 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 11186

Re: Can I retire with $1.75M at age 43?

This is a general question. I dislike and almost hate my job and was wondering if I could retire today at age 43 with about $1.75M net worth. I am very frugal and have spent about $25k per year for more than a decade. Only recently has my cost gone up to $35k. I intend to move to a cheap location to keep cost down. I’ve read about a number of FIRE movement retirees like Mr money mustache and others who were able to retire very early. Of course these bloggers are not really retired making a lot of money, but I intend to TRULY retire for many decades. Is this realistic as a frugal single person? I would like some thoughts from bogleheads. Another point is that my time is limited on this planet and I value freedom and time doing what I want o...
by EnjoyIt
Sun Mar 17, 2024 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Parents building a new house - how should they pay for it?
Replies: 52
Views: 4010

Re: Parents building a new house - how should they pay for it?

WillRetire wrote: Sun Mar 17, 2024 9:02 am OP: They have strong income, so why not have them apply for a mortgage? With equal opportunity lending, their age should not be a factor.
This is probably the best solution. They have a CD they can cash for the downpayment. Then take on a mortgage for the rest. I'm sure they can get a $400k mortgage on a $120k/yr guaranteed SS and pension income. Once the old house sells, pay the mortgage down and consider recasting. Since they have a surplus on their income plus the RMDs, they can get that mortgage paid off in the next couple of years. They can also sell off some Roth IRA to pay it off.

Again, the cost of breaking the CD isn't that big of a deal compared to other alternatives.
by EnjoyIt
Sun Mar 17, 2024 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Parents building a new house - how should they pay for it?
Replies: 52
Views: 4010

Re: Parents building a new house - how should they pay for it?

PeninsulaPerson wrote: Sun Mar 17, 2024 3:50 pm
Sowney wrote: Sun Mar 17, 2024 12:09 pm
My brother and his wife are the motive force behind this move, so they're all in. And - yes - in my view, family dynamics might be the most important factor.


That's good - very good.

As to a HELOC on a house that would be sold shortly, do be sure to check with your lender. For obvious reasons, that situation does not float a lot of lenders' boats.

Good luck to your folks. Hope it's an amazing blessing for them and your family!
This is one of those don't ask don't tell scenarios. Just because they don't like it doesn't mean you can't or shouldn't do it.
by EnjoyIt
Sun Mar 17, 2024 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Parents building a new house - how should they pay for it?
Replies: 52
Views: 4010

Re: Parents building a new house - how should they pay for it?

They have $1.1 Million in Roth and traditional IRA They need $500k. They get $120k from SS and Pensions They spend $60k Their home is worth $300k I don't know how much they have in Roth and traditional IRA, but it makes a difference to the calculations. They should be able to take a a HELOC for about $240k. Leaving them with $260k in costs. The house takes time to be built and they will likely need to put in installments. That will give them time to collect some cash from SS and pensions. Maybe by then they will get another $30k. That leaves them with $230k still needed. They have a $100k CD which they can hopefully break leaving them needing $130k. Next, They can pull cash from their Traditional IRAs. You will need to look at their tax st...
by EnjoyIt
Sun Mar 17, 2024 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: Parents building a new house - how should they pay for it?
Replies: 52
Views: 4010

Re: Parents building a new house - how should they pay for it?

They have $1.1 Million in Roth and traditional IRA They need $500k. They get $120k from SS and Pensions They spend $60k Their home is worth $300k I don't know how much they have in Roth and traditional IRA, but it makes a difference to the calculations. They should be able to take a a HELOC for about $240k. Leaving them with $260k in costs. The house takes time to be built and they will likely need to put in installments. That will give them time to collect some cash from SS and pensions. Maybe by then they will get another $30k. That leaves them with $230k still needed. They have a $100k CD which they can hopefully break leaving them needing $130k. Next, They can pull cash from their Traditional IRAs. You will need to look at their tax str...
by EnjoyIt
Sat Mar 16, 2024 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Safe deposit box-have one? What's in there?
Replies: 115
Views: 10540

Re: Safe deposit box-have one? What's in there?

While it might s a myth that it is illegal to store cash inSDB it is not that you are not allowed to store firearms there. At least not allowed in any bank I ever used. Plus I would hate to card a firearm rearm into a bank. I carry a firearm into the bank all the time. What’s the concern? Plenty of people carry a firearm when they take out a decent amount of cash. I realize many do but short of being police officer or similar I would be concerned some one sees it and overeacts inappropriately I think what you and I are experiencing is different cultural norms. When I lived in NYC I would have thought just like you. It is very difficult to get a firearm in NYC and therefore one can spend their entire life and never see one outside of a hols...
by EnjoyIt
Fri Mar 15, 2024 9:08 pm
Forum: Investing - Theory, News & General
Topic: Should I Keep Sacrificing or Start Enjoying Myself
Replies: 32
Views: 3573

Re: Should I Keep Sacrificing or Start Enjoying Myself

My advice: Increase spending this year from 30% up to 35%. Let’s see how it feels. Maybe next year go from 35% to 40%. See how that feels.

The reason why I like slow lifestyle creep is that you slowly get to enjoy your wealth more and more. If you jump straight to spending 70%, sure you will get a rush from it, but in a year or two you will get used to it with nowhere to go.

My second piece of advice is to not sacrifice relationships. The joys of life are in interactions with friends and family (if you like your family.)
by EnjoyIt
Fri Mar 15, 2024 5:48 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

unwitting_gulag wrote: Having been a California renter for a while, I'd aver that this particular application of the "greater fool theory" is actually solid and stable. It's easy to dip into frustration with overcrowding and associated local ills, but we have the example of the defense industry bust 30 years ago, to gauge what happened with real estate prices long term. Answer: they dipped, and by some reckoning crashed... but a decade later, they recovered, and then some. I agree that the greater fool theory will still work in coastal California real estate but not to the egregious extent it did in the past. I bought a small 1 BR condo with access to a pool in Mountain View right on the border with Palo Alto in 1973. It cost 36K...
by EnjoyIt
Fri Mar 15, 2024 5:37 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

I assume it ends with more housing being built, which lowering inflation-adjusted housing prices in areas with high demand. There's been some legislative and executive action to force California cities/counties to allow more housing to be built. California has dropped in population in recent years, and some other US states/areas with net domestic migration have built a lot of housing and managed to keep prices from skyrocketing. Where I am renting, it is still relatively costly, but rent is lower than a few years or even a decade ago. Considering inflation, rents are 10-20% lower. I assume it's because a lot of housing has been built in the immediate area. I think an added solution is to stop allowing foreign nationals to own property in t...
by EnjoyIt
Fri Mar 15, 2024 4:27 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

Being tracking expenses for 17 years so this fairly accurate for my family. Here's the annual expense: - Phone/internet $4k (including phone/router purchase) - Car $6k (License fee and sunk fund for future car purchase) - Kid's activities $11k (swimming/soccer and other kid's activities) - Clothing $1k - Entertainment $3k - Gas $5k - General merchandise/grocery $14k (we buy much of our grocery from costco so hard to separate out :oops: ) - Home maintenance/improvement $15k (including sunk fund for roof repair/paints and etc) - Insurance $10k (home owner got quite a bit more expensive due to the house in wildland zone) - Personal care $3k - Restaurants/take out $12k - Travel $10k - Utilities $4k - Property tax $16k - Healthcare premium/co-p...
by EnjoyIt
Fri Mar 15, 2024 4:24 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

This strikes me as true and fascinating. Of course it's not just coastal California; it seems to be true of many cities around the world now. I wonder how this ends, and if anything like this has happened before in history. I suppose that if property wealth just passes down to subsequent generations, maybe it doesn't end? Among the coastal California natives that I've met so far, inheriting their parents' property seems to be a key part of the plan. I assume it ends with more housing being built, which lowering inflation-adjusted housing prices in areas with high demand. There's been some legislative and executive action to force California cities/counties to allow more housing to be built. California has dropped in population in recent ye...
by EnjoyIt
Fri Mar 15, 2024 4:21 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

You may be underestimating just how expensive coastal California is. One will definitely need a strict budget to raise a family on $150-170k pre-tax there. Agree with this, including health care insurance premium estimated from covered CA and removing mortgage, we'll need ~$150k pre-tax here in bay area. While we don't live frugally, we're not extravagant neither. - House bought more than 10 years ago so low property tax basis - All yard work and house work is done by ourselves w/o any outsourcing - Most oil changes, auto maintenance and minor repairs were done by me - No expensive after school care for the kid since we have a SAHM - DW cooks most meals so we only dine out 1-2 time every week - Only economy class on travels Minimum wage fo...
by EnjoyIt
Fri Mar 15, 2024 1:34 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

You may be underestimating just how expensive coastal California is. One will definitely need a strict budget to raise a family on $150-170k pre-tax there. Agree with this, including health care insurance premium estimated from covered CA and removing mortgage, we'll need ~$150k pre-tax here in bay area. While we don't live frugally, we're not extravagant neither. - House bought more than 10 years ago so low property tax basis - All yard work and house work is done by ourselves w/o any outsourcing - Most oil changes, auto maintenance and minor repairs were done by me - No expensive after school care for the kid since we have a SAHM - DW cooks most meals so we only dine out 1-2 time every week - Only economy class on travels Minimum wage fo...
by EnjoyIt
Fri Mar 15, 2024 1:29 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

This strikes me as true and fascinating. Of course it's not just coastal California; it seems to be true of many cities around the world now. I wonder how this ends, and if anything like this has happened before in history. I suppose that if property wealth just passes down to subsequent generations, maybe it doesn't end? Among the coastal California natives that I've met so far, inheriting their parents' property seems to be a key part of the plan. I assume it ends with more housing being built, which lowering inflation-adjusted housing prices in areas with high demand. There's been some legislative and executive action to force California cities/counties to allow more housing to be built. California has dropped in population in recent ye...
by EnjoyIt
Thu Mar 14, 2024 9:31 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

You may be underestimating just how expensive coastal California is. One will definitely need a strict budget to raise a family on $150-170k pre-tax there. You may be underestimating just how expensive coastal California is. One will definitely need a strict budget to raise a family on $150-170k pre-tax there. +1. Does that include a paid off house? If so, can you please share an example budget for those of us who don't understand and can make some sense of what you and KyleAAA are trying to convey. Subtract property taxes and home maintenace, and you're at about $100,000. I wouldn't call that frugal, but it's not lavish by Santa Barbara and Los Angeles standards. They're called high cost of living locales for a reason. My problem with the...
by EnjoyIt
Thu Mar 14, 2024 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Safe deposit box-have one? What's in there?
Replies: 115
Views: 10540

Re: Safe deposit box-have one? What's in there?

Gold coins, cash, Glock 9mm, and 9mm ammo. While it might s a myth that it is illegal to store cash inSDB it is not that you are not allowed to store firearms there. At least not allowed in any bank I ever used. Plus I would hate to card a firearm rearm into a bank. I carry a firearm into the bank all the time. What’s the concern? Plenty of people carry a firearm when they take out a decent amount of cash. I realize many do but short of being police officer or similar I would be concerned some one sees it and overeacts inappropriately I think what you and I are experiencing is different cultural norms. When I lived in NYC I would have thought just like you. It is very difficult to get a firearm in NYC and therefore one can spend their enti...
by EnjoyIt
Thu Mar 14, 2024 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Safe deposit box-have one? What's in there?
Replies: 115
Views: 10540

Re: Safe deposit box-have one? What's in there?

LotsaGray wrote: Thu Mar 14, 2024 8:32 pm
EnjoyIt wrote: Wed Aug 09, 2023 9:55 pm Gold coins, cash, Glock 9mm, and 9mm ammo.
While it might s a myth that it is illegal to store cash inSDB it is not that you are not allowed to store firearms there. At least not allowed in any bank I ever used. Plus I would hate to card a firearm rearm into a bank.
I carry a firearm into the bank all the time. What’s the concern? Plenty of people carry a firearm when they take out a decent amount of cash.
by EnjoyIt
Thu Mar 14, 2024 8:30 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

You may be underestimating just how expensive coastal California is. One will definitely need a strict budget to raise a family on $150-170k pre-tax there. +1. Does that include a paid off house? If so, can you please share an example budget for those of us who don't understand and can make some sense of what you and KyleAAA are trying to convey. Even if your house is paid off, it can easily cost $40-50k per year in taxes and maintenance on a normal 3br/2ba home in a VHCOL area like coastal California. Income taxes are also high. The emphasis on VHCOL should be on the V. Until you move from a MCOL city to a VHCOL city, it's hard to fathom just how much of a price jump it is. I only live in Seattle, which is much cheaper than the bay area, ...
by EnjoyIt
Thu Mar 14, 2024 7:01 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

You may be underestimating just how expensive coastal California is. One will definitely need a strict budget to raise a family on $150-170k pre-tax there. You may be underestimating just how expensive coastal California is. One will definitely need a strict budget to raise a family on $150-170k pre-tax there. +1. Does that include a paid off house? If so, can you please share an example budget for those of us who don't understand and can make some sense of what you and KyleAAA are trying to convey. Even if your house is paid off, it can easily cost $40-50k per year in taxes and maintenance on a normal 3br/2ba home in a VHCOL area like coastal California. Income taxes are also high. The emphasis on VHCOL should be on the V. Until you move ...
by EnjoyIt
Thu Mar 14, 2024 6:54 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

If so, can you please share an example budget for those of us who don't understand and can make some sense of what you and KyleAAA are trying to convey. Here is ours, for a family of 2 adults with 3 cats and a paid-off home in CA. Not by the coast. Paid off cars, too. 2015/2017 Chevys. This is for the last 12 months. Mandatory expenses : $89k : $9k cars (insurance, registration, gas, 2 EV charger replacements, and one major repair) $3k financial services (things like Costco, employer benefits like life insurance, credit card AF, umbrella liability) $9.5k Groceries (mainly Costco) $13.5k health ($6.5K of premiums through employer, rest is copays/OTC/one exercise bike) $43.5k home ($15k of property tax, $4k insurance, the rest is mainly main...
by EnjoyIt
Thu Mar 14, 2024 6:31 pm
Forum: Investing - Theory, News & General
Topic: 5M, probably enough to retire to a frugal lifestyle
Replies: 180
Views: 15196

Re: 5M, probably enough to retire to a frugal lifestyle

KyleAAA wrote: Thu Mar 14, 2024 4:58 pm You may be underestimating just how expensive coastal California is. One will definitely need a strict budget to raise a family on $150-170k pre-tax there.
mikejuss wrote: Thu Mar 14, 2024 5:18 pm
KyleAAA wrote: Thu Mar 14, 2024 4:58 pm You may be underestimating just how expensive coastal California is. One will definitely need a strict budget to raise a family on $150-170k pre-tax there.
+1.
Does that include a paid off house?

If so, can you please share an example budget for those of us who don't understand and can make some sense of what you and KyleAAA are trying to convey.
by EnjoyIt
Thu Mar 14, 2024 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: Ran an analysis regarding the opportunity cost of investing in real estate. Curious what my takeaway should be?
Replies: 20
Views: 1652

Re: Ran an analysis regarding the opportunity cost of investing in real estate. Curious what my takeaway should be?

The reason for the large discrepancy in price was due to the fact that their apartment was a condo (mine is a co-op), had an extra bathroom and a small private outdoor space. I'm not sure you can compare your apartment to your friend's apartment. My experience is bathrooms and outdoor space add a lot of value to a property. For example: I purchased an 806 sq ft post WWII "starter home" with 2 beds/1 bathroom. It's a "cookie cutter house" with a partial basement. in that there are hundreds of them sprinkled across my suburb. The houses that have had a second bathroom room (toilet and sink) added to the basement instantly raised the sale value by 20K to 50K (50K if it's got a shower stall big enough for a,um, larger adult...
by EnjoyIt
Thu Mar 14, 2024 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Ran an analysis regarding the opportunity cost of investing in real estate. Curious what my takeaway should be?
Replies: 20
Views: 1652

Re: Ran an analysis regarding the opportunity cost of investing in real estate. Curious what my takeaway should be?

SubPar wrote: Thu Mar 14, 2024 9:57 am Yeah, agree with AerialWombat.

I don't know that I understand the purpose of the exercise other than sating some internal envy that your friend made a bit more money in a frothy real estate market. This is not how investment real estate is analyzed. Apples to oranges from a relative performance/benchmarking perspective.
I think what I take away from this is that spending less on a home you live in provides you with more money to invest which in turn makes you wealthy faster.

To OP: Did you invest the difference or did you spend it on something else?
by EnjoyIt
Wed Mar 13, 2024 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Mental health or Money: navigating the OMY question
Replies: 48
Views: 4796

Re: Mental health or Money: navigating the OMY question

Years ago I asked a coworker when he was going to retire. He said "when I have two bad days in a row". I said no way, thought he was joking. He was a good manager. A few months later he came up to me unannounced and said "that's one". One what? Oh! One bad day. Right. I still didn't believe it. The next day he came up and simply said "that's two". That was it. Smart man. If you can't cope your way through the year with the extra vacation and sick time, this might be something to consider. I love that story and that is my path as well. Currently semi-retired or work part time however you want to describe it. I average about 2-3 days a week. Usually if I have 1 bad day, I'm likely off the next day or the day aft...
by EnjoyIt
Tue Mar 12, 2024 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: One spouse retiring earlier than the other?
Replies: 38
Views: 2997

Re: One spouse retiring earlier than the other?

Based on your previous posts you can both retire today. This isn't really a financial question for you like it would be for others. Most people we know had one spouse retire before the other (us included). As long as the working spouse doesn't feel slighted in some way, it works just fine. The retired spouse can take on more of the household burden allowing the working spouse more downtime when they are not working. If I recall correctly, you still have teenagers or maybe college students. Your wife might be able to enjoy some time with them before they leave the nest. It is financial in the sense that the effect of her retiring today does not greatly impact our finances. We lose about $150K in contributions to tax-deferred accounts and $6...
by EnjoyIt
Tue Mar 12, 2024 8:57 pm
Forum: Personal Finance (Not Investing)
Topic: One spouse retiring earlier than the other?
Replies: 38
Views: 2997

Re: One spouse retiring earlier than the other?

Marq1 wrote: Tue Mar 12, 2024 7:39 pm
I have never met a person who "hates" retirement.
Get a few beers into them and then the truth starts to flow, it's tough for most to admit they made a mistake!
I met one person who truly hates retirement. But then again, he doesn't gets along well with his wife or his adult child who lives at home.

Most people find themselves happy when retired. The ones I met who have not, either had no hobbies or lacked the funds for a joyful retirement.
by EnjoyIt
Tue Mar 12, 2024 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Mental health or Money: navigating the OMY question
Replies: 48
Views: 4796

Re: Mental health or Money: navigating the OMY question

Health!

There is nothing more important than your health. What is one more year if the health consequences affect your quality of life and maybe even your longevity.

Congrats on the new role. I hope it takes the bulk of your stress away. If not, OMY is just not worth it.
by EnjoyIt
Tue Mar 12, 2024 7:19 pm
Forum: Investing - Theory, News & General
Topic: How many are holding cash right now?
Replies: 203
Views: 31082

Re: How many are holding cash right now?

bendix wrote: Tue Mar 12, 2024 12:17 pm It´s all relative. I think historically I held between 10 and 15 percent in cash. Now I am at 23-24 percent cash. It´s more than my historical average has been, but it´s not crazy or wild. I´m still putting new money into stocks, but at a slower pace than in the past and I put more new money into VMFXX and EDV than I put in stocks.
May I ask, why so much cash? Are you looking to make a large purchase soon? Or, are you holding cash in lieu of bonds?
by EnjoyIt
Tue Mar 12, 2024 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: How much car can I afford?
Replies: 114
Views: 9035

Re: How much car can I afford?

You have two paid off cars why throw money away! The 16 yr old Honda lacks a lot of newer safety features. But it's in excellent shape and could probably run another 10 yrs. I guess my rationale is if I don't spend my money, what am I going to do with it? I don't have kids and I'm not much of a charity guy. I didn't live frugally saving money just to leave it all behind when it's my time to go. If I want to buy a Porsche, I would already buy it yesterday. I don't think you need to justify your purchase to strangers on the internet. There is something else, isn't there? Buying a $150K car is a big financial decision for me. It's no different than asking Bogleheads if upgrading to a bigger house makes sense financially. Like I mentioned befo...
by EnjoyIt
Tue Mar 12, 2024 11:13 am
Forum: Personal Finance (Not Investing)
Topic: One spouse retiring earlier than the other?
Replies: 38
Views: 2997

Re: One spouse retiring earlier than the other?

You have $4.2 million. You spend $108k/yr. That is a 2.6% withdrawal rate. That does not include SS and pension.
Therefore this is not a can we retire question. This is all psychological.

My advice is to start looking for things to do once you actually retire. Make sure you have hobbies and travel plans. Having one spouse retire today can get the process started, but your she best have some idea of what she will do with herself once out of work. The best thing you two can do today is work on your health. Make sure you are eating healthy, exercising, and sleeping well. It is time you invest in yourself so you can enjoy all that money you saved up.

Congrats on your success and good luck in what can be an amazing future.
by EnjoyIt
Mon Mar 11, 2024 4:26 pm
Forum: Investing - Theory, News & General
Topic: William Bernstein On the Financial Industry
Replies: 81
Views: 9784

Re: William Bernstein On the Financial Industry

The trouble as I see it is a mismatch between the number of people that could benefit from some decent advice (as mentioned by WCI), and the number of people that meet the 1) 2) & 3) criteria (as mentioned by Bill Bernstein). There are a huge number of potential clients in need, all competing for a relatively small number of decent advisers, which is why Rick Ferri, Allan Roth, Jon Luskin, etc. are all booked for a year in advance. When someone can't find one of the "good advisers" they settle for someone else, often at their own peril. Vanguard may be close to "cookie cutter" in it's advice, but it's a heck of a lot less harmful than the crap we see from Raymond James, Edward Jones and that ilk. In this forum we of...
by EnjoyIt
Mon Mar 11, 2024 10:57 am
Forum: Investing - Theory, News & General
Topic: How many are holding cash right now?
Replies: 203
Views: 31082

Re: How many are holding cash right now?

Dr Chaos wrote: Mon Mar 11, 2024 10:38 am
EnjoyIt wrote: Mon Mar 11, 2024 10:25 am
Dr Chaos wrote: Mon Mar 11, 2024 10:15 am Not looking to hoard cash in this deflationary environment but have recently been reducing debt.
Where is deflation?

https://www.statista.com/statistics/139 ... lation-us/
Sorry, meant inflationary.

Multitasking isn't always a good idea.
Currently interest on money market funds is beating inflation. This has been going on for almost 1 year now. On an after tax basis for maybe about 9 months. Holding cash isn't that big of an issue, today.
by EnjoyIt
Mon Mar 11, 2024 10:25 am
Forum: Investing - Theory, News & General
Topic: How many are holding cash right now?
Replies: 203
Views: 31082

Re: How many are holding cash right now?

Dr Chaos wrote: Mon Mar 11, 2024 10:15 am Not looking to hoard cash in this deflationary environment but have recently been reducing debt.
Where is deflation?

https://www.statista.com/statistics/139 ... lation-us/
by EnjoyIt
Mon Mar 11, 2024 10:10 am
Forum: Investing - Theory, News & General
Topic: How many are holding cash right now?
Replies: 203
Views: 31082

Re: How many are holding cash right now?

the_wiki wrote: Mon Mar 11, 2024 9:31 am I have a fair bit in cash but only because I need it. Emergency fund, travel budget, tuition money due next fall, etc.
I am looking to make a large purchase soon (in the next 3-24 months.) Over the last year or so I have been diverted all dividends and new contributions to money market funds. That is except for Roth and HSA contributions which I am keeping in equities. If I don't have enough cash by the time the purchase happens, I will be selling bonds and equities to cover the shortfall. If the market tanks again b y the time I need to make the purchase I will be selling mostly bonds or delay said purchase.
by EnjoyIt
Sat Mar 09, 2024 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Is HCOLA better than LCOL??
Replies: 62
Views: 3333

Re: Is HCOLA better than LCOL??

It depends on so many factors.

HCOL areas tend to cost a lot to live in and if the compensation doesn’t make up the difference then it’s better to live in a LCOL area.

I’m a physician who moved from a VHCOL to a medium/high COL area. There, I made significantly more money, paid less in taxes and was able to save a ton while having a good quality of life. Today in our 40s we are financially independent. I could have never accomplished what I have in the VHCOL area.

All that worked out because I made more and spent less. That may be different for someone else’s profession.
by EnjoyIt
Thu Mar 07, 2024 2:44 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Stocks have been a complete disaster
Replies: 170
Views: 15853

Re: Emerging Markets Stocks have been a complete disaster

When the government can confiscate a private business in their country, ... Good thing nobody thinks anything like that could ever happen in USA. But, for example, history reports that President Truman believed he had the power to nationalize the US steel industry by decree in 1952 when he issued EXECUTIVE ORDER 10340 : ... NOW, THEREFORE, by virtue of the authority vested in me by the Constitution and laws of the United States, and as President of the United States and Commander in Chief of the armed forces of the United States, it is hereby ordered as follows: 1. The Secretary of Commerce is hereby authorized and directed to take possession of all or such of the plants, facilities, and other property of the companies named in the list at...
by EnjoyIt
Thu Mar 07, 2024 1:57 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Stocks have been a complete disaster
Replies: 170
Views: 15853

Re: Emerging Markets Stocks have been a complete disaster

Nathan Drake wrote: Thu Mar 07, 2024 1:42 pm
Can it go lower? Sure. And US can go from around 34 right now to 50. But one should ponder the potential for bad long term outcomes when valuations are so high, history shows us it tends to correct.
That is why I diversify in US, international, bonds, and own a house so that I can have a roof over my head.

Anything outside of that is a play to outsmart the market. I am not smart enough to make such plays so I stay out, outside of my slight tilt towards US equities.
by EnjoyIt
Thu Mar 07, 2024 1:36 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Stocks have been a complete disaster
Replies: 170
Views: 15853

Re: Emerging Markets Stocks have been a complete disaster

When the government can confiscate a private business in their country, or when corruption is the only way to get business done, it may be very difficult to sustain said business long term. Maybe that is why it is so cheap. As they say, you get what you pay for. Just because something is cheap doesn't always mean it is a bargain. Don't get me wrong, I have my share of Emergent markets in my international ex-US index fund and have no plans of changing that. But, I have no interesting in tilting more towards it. Most EM funds are only around 20% China. There are plenty of legitimate businesses in China. It wasn’t always cheap. It is now, so maybe the risk is appropriately priced. All it needs to do is be slightly less risky than today for th...
by EnjoyIt
Thu Mar 07, 2024 1:31 pm
Forum: Personal Consumer Issues
Topic: Should I buy this phone?
Replies: 24
Views: 1883

Re: Should I buy this phone?

I posted several months ago about a cell phone scam I encountered. Thankfully, my credit card company found in my favor. However, I have another (yes, stupid) cell phone question. I love the idea of having the newest gadget, but am shocked by the price of very phones these days. And I've been back and forth about whether I really need an expensive phone, especially after that scam I ran into. I am 45 years old, not a social media influencer. My only debt is my current home, which has about $190,000 balance on a 6.1% 30 year mortgage. I make about $99,000 a year but only take home about $1500 a week after pre-tax and post-tax deductions. I contribute the max to my IRA and my 457 account every year and should receive a very modest pension. T...
by EnjoyIt
Thu Mar 07, 2024 1:20 pm
Forum: Investing - Theory, News & General
Topic: International (Non-US) versus US Equities (The "Arguments")
Replies: 5216
Views: 832918

Re: International (Non-US) versus US Equities (The "Arguments")

Today, international finally reached Jan 2018 peak. Dividend re-investment or inflation not included. It still has a lot to go before it reaches 2007 levels.

I'm still holding on to my international.
by EnjoyIt
Thu Mar 07, 2024 1:16 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Stocks have been a complete disaster
Replies: 170
Views: 15853

Re: Emerging Markets Stocks have been a complete disaster

When the government can confiscate a private business in their country, or when corruption is the only way to get business done, it may be very difficult to sustain said business long term. Maybe that is why it is so cheap. As they say, you get what you pay for. Just because something is cheap doesn't always mean it is a bargain.

Don't get me wrong, I have my share of Emergent markets in my international ex-US index fund and have no plans of changing that. But, I have no interesting in tilting more towards it.
by EnjoyIt
Thu Mar 07, 2024 7:35 am
Forum: Personal Finance (Not Investing)
Topic: Fraud [Credit Card application]
Replies: 12
Views: 1828

Re: Fraud [Credit Card application]

Metsfan91 wrote: Wed Mar 06, 2024 7:55 pm
EnjoyIt wrote: Thu Feb 29, 2024 11:53 am Today I logged into credit karma and noticed someone applied for 2 credit cards on my behalf. I took care of the problem and froze all three reporting agencies.

This post is to remind everyone to check their own credit reports and consider freezing the reporting agencies as well. The process is pretty quick and free.

Expedia
Transunion
Experian
is it expedia or equifax? I froze few years ago during Experian breach. I think freeze is still in place. I didn't need any new credit.
Oops. Your right. That’s a typo on my part and I will correct. Thanks.