Search found 103 matches

by Markr867
Sun Mar 19, 2023 8:51 am
Forum: Personal Investments
Topic: Did I give my parents bad advice? VASIX
Replies: 27
Views: 3631

Re: Did I give my parents bad advice? VASIX

Absolutely understand, and I hope that they too have 15-20 more years (or more) to recoup their losses and make money on their investment. The fact that I inserted myself at all was because I felt that they were being taken advantage of by this neighbor and I didn't want to see them being swindled. I think I would not use the language "recoup their losses." It is the nature of the beast that value of investment assets rises and falls yo unpredictable degrees at unpredictable times. You just live with the rise and fall. The enterprise is worthwhile because there is an underlying upward trend to be expected. Where that trend ends up is an uncertain proposition except that the expectation is that the average of it is good. You're ri...
by Markr867
Sun Mar 19, 2023 8:49 am
Forum: Personal Investments
Topic: Did I give my parents bad advice? VASIX
Replies: 27
Views: 3631

Re: Did I give my parents bad advice? VASIX

It is really unlikely that their Edward Jones portfolio would have done any better. To assuage your own feelings, you might try to make the effort to find out exactly what their portfolio was, and use a tool like PortfolioVisualizer to see how it would have done. Since October of 2021, US stocks (VTSAX) have lost about -12%, bonds (VBTLX) have lost about -14%, and VASIX has lost about -13%. In other words, if the Edward Jones portfolio was mostly stocks and bonds, it's very likely that, too, would have lost just about -13%. Well, see, that's the problem. They weren't invested in stocks/bonds, they were in some sort of cash equivalent fund at Edward Jones. So they would have kept their initial investment and it would have even grown very sl...
by Markr867
Sun Mar 19, 2023 8:40 am
Forum: Personal Investments
Topic: Did I give my parents bad advice? VASIX
Replies: 27
Views: 3631

Re: Did I give my parents bad advice? VASIX

Two valuable lessons for you here. First, investing is a long-term proposition. I'm 70 and hope to have 15-20 more years of investing horizon. Second, and perhaps most important, advising friends and family is fraught with peril if the investment underperforms in the early years (even if the advice is sound). As a result, I avoid at all costs engaging in financial discussions with family and friends. There is little upside and a lot of downside potential. Absolutely understand, and I hope that they too have 15-20 more years (or more) to recoup their losses and make money on their investment. The fact that I inserted myself at all was because I felt that they were being taken advantage of by this neighbor and I didn't want to see them being...
by Markr867
Sun Mar 19, 2023 8:34 am
Forum: Personal Investments
Topic: Did I give my parents bad advice? VASIX
Replies: 27
Views: 3631

Re: Did I give my parents bad advice? VASIX

What was their portfolio at Edward Jones? What were they invested in there? What is their desired asset allocation? Life strategy income is in general a reasonable recommendation for someone that wants a low percentage of stocks. But last year both stocks and bonds lost money as you know. Most every buy and hold index investor was down some. You did save them the Edward Jones fees. I don't remember the exact name of what they were invested in, but they were earning maybe 1% and they were, as you noted, being charged a fee. And this was back when the stock market was going up every day. I did sit them down and make sure that they understood what VASIX consisted of, and they were fine with it. They are comfortable with 18% stocks, I think it...
by Markr867
Sun Mar 19, 2023 8:20 am
Forum: Personal Investments
Topic: Did I give my parents bad advice? VASIX
Replies: 27
Views: 3631

Did I give my parents bad advice? VASIX

Good morning! My parents are 73 and 72, retired, and are very fiscally conservative with their money after being burned during 2008 when they had money invested for my college education and lost a large chunk of it exactly when they needed it. For the past few years, they were invested at Edward Jones with a neighbor who is a "financial advisor". They were earning essentially nothing on their money, so I offered to help them try to get a better return. I set them up with a Vanguard account and told them to invest their ~$300K in VASIX (part Roth IRA part Traditional IRA). The problem is, they did this in October 2021, which was probably the worst time because the market was just about to reach its peak. Fast forward to today, they...
by Markr867
Sat Mar 04, 2023 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford $325,000 home
Replies: 111
Views: 11523

Re: Can we afford $325,000 home

The area that we're looking to buy in should see meaningful appreciation and growth in the next 3-5 years. The city is investing heavily into a nearby park putting up and a light rail extension should go up in the area as well. Given the other light rail expansions in the past 2 years, a lot of money and new development sparked all around. I would remove this from your thought process and calculations. I have friends who thought the same based on planned development and it never panned out. The development took years longer than expected and, once completed, did not have the transformative effect people hoped for. This this this. We bought a condo in Arlington, VA in 2017, not long before Amazon announced that they were building their HQ2 ...
by Markr867
Sun Jan 22, 2023 4:11 pm
Forum: Personal Investments
Topic: Roth Recharacterization Sanity Check
Replies: 7
Views: 562

Re: Roth Recharacterization Sanity Check

As you are not eligible to make a direct Roth contribution, yes you need to call Vanguard to either have the contribution returned to you or to recharacterize the contribution to a traditional IRA (non-deductible) contribution. The amount that needs to be corrected is the $6k contribution plus earnings. A non-deductible traditional IRA contribution may be converted to Roth (aka a backdoor Roth). But if you have any other 12/31/2023 pretax IRA balances (IRA, SEP-IRA SIMPLE-IRA), a 2023 conversion will be subject to pro-rated taxes. Depending on which option you choose, you will receive some 2023 tax forms and likely need to file Form 8606 for 2023. Very helpful, thank you. Because I put the $6K into stocks on 1/1/22, I'm fairly certain ther...
by Markr867
Sun Jan 22, 2023 11:23 am
Forum: Personal Investments
Topic: Roth Recharacterization Sanity Check
Replies: 7
Views: 562

Re: Roth Recharacterization Sanity Check

As you are not eligible to make a direct Roth contribution, yes you need to call Vanguard to either have the contribution returned to you or to recharacterize the contribution to a traditional IRA (non-deductible) contribution. The amount that needs to be corrected is the $6k contribution plus earnings. A non-deductible traditional IRA contribution may be converted to Roth (aka a backdoor Roth). But if you have any other 12/31/2023 pretax IRA balances (IRA, SEP-IRA SIMPLE-IRA), a 2023 conversion will be subject to pro-rated taxes. Depending on which option you choose, you will receive some 2023 tax forms and likely need to file Form 8606 for 2023. Very helpful, thank you. Because I put the $6K into stocks on 1/1/22, I'm fairly certain ther...
by Markr867
Sun Jan 22, 2023 11:10 am
Forum: Personal Investments
Topic: Roth Recharacterization Sanity Check
Replies: 7
Views: 562

Roth Recharacterization Sanity Check

Happy Sunday, Bogleheads! I'd like a quick sanity check please to make sure I'm not screwing anything up from a tax perspective. On January 1, 2022, I dumped $6K into my Roth IRA as I always have done. It turns out that my MAGI in 2022 ended up being higher than expected, and now all $6K in Roth contributions are excess. I have my Roth IRA through Vanguard. It sounds like all I need to do is call Vanguard and ask them to recharacterize all $6K from a Roth to a Traditional, and then I can click the "Convert to Roth IRA" button to get it back into my Roth with no tax consequences? Is it really that easy, or am I going to trigger some sort of tax? I understand that I have to do all of this before I file my 2022 taxes. Please let me k...
by Markr867
Sun Dec 18, 2022 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: How much do you keep in checking?
Replies: 309
Views: 30119

Re: How much do you keep in checking (2022)?

I start every month with $6K, which is a little more than one month of spending. Most bills are paid around the 1st of the month, paychecks come in twice a month, and I do a final CC payment a few days before the end of the month. If I’m over $6K at the end of the month, that means I had a good month and I do a sweep to savings/brokerage. If it’s under, that means the month was expensive and I either move from brokerage or I just absorb it the next month. It seems to work for me.
by Markr867
Mon Oct 03, 2022 3:44 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1202066

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Potentially dumb question incoming...

I purchased my 2021 allocation of I-Bonds on 10/19/21, with an issue date of 10/1/21. I assumed that I could take them out on 10/1/22 since 12 months has passed since the "issue date." When I log in to TreasuryDirect, it says I have no securities available for redemption. Is it 12 months from issue date or 12 months from purchase date?

I don't need/want to cash them out now, but I thought I'd at least have the option.

Thank you!
by Markr867
Tue Sep 13, 2022 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Credit Card "Churning" for Bonuses --- Can't You Just Run Out of Decent Cards to Get?
Replies: 124
Views: 15187

Re: Credit Card "Churning" for Bonuses --- Can't You Just Run Out of Decent Cards to Get?

Firemenot wrote: Tue Sep 13, 2022 9:23 am Seems like way too much work to play the credit card churn game. I’m assuming you disagree as you’re looking to keep doing?
Everyone is entitled to their opinion of course, but we were able to fly business class to the Maldives and stayed in an overwater villa for a week. Total cost out of pocket was about $100. I'd say that is well worth the work that we put in.
by Markr867
Mon Sep 12, 2022 9:49 am
Forum: Personal Finance (Not Investing)
Topic: [Mortgage Question]
Replies: 19
Views: 2100

Re: [Mortgage Question]

One thing I'm a bit curious about... how long have you been paying extra on the condo mortgage? Every lender has different rules on recasting, but I don't think it would be too unusual for a lender to allow a recast for a fee without a lump sum if you already have pre-paid a fair amount. (As in already 10k in pre-payments.). Could be worth asking if that's not a possibility (lender might just not have noticed when you first inquired) if you really want to extend that mortgage and free up cash flow to your other priorities. Oh we've prepaid a LOT. We started with $232K on this mortgage in 2020 and we're down to $66K two years later. We've been aggressively pre-paying every month since getting the mortgage (not anymore though). Might not hur...
by Markr867
Thu Sep 08, 2022 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: [Mortgage Question]
Replies: 19
Views: 2100

Re: [Mortgage Question]

Thank you all for the replies. It definitely gives us something to think about and consider. We had not taken into account any tax implications of keeping the condo long term. Between the HOAs, property taxes, and potential tax implications, we'll need to take a long hard look at the cost to keep it once we do decide to move. Having a two year window seems like a good opportunity to "test out" State College and ensure that we really do like it and want to live there. Barring any major downtown in the DC housing market, I think our condo would sell very quickly. We're essentially the "worst house on the nicest block" and our building remains one of the most affordable options in our desirable neighborhood. For now, I thin...
by Markr867
Wed Sep 07, 2022 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: [Mortgage Question]
Replies: 19
Views: 2100

Re: What Would You Do?

Tried to provide some answers in red. There are a few missing pieces here... Do you either of you have any debt outside the mortgage? If so, how much, at what rate? No other debts besides this mortgage. Do you have a 6-12 month emergency fund? You do mention you have savings, but this is ear marked for a wedding, vehicle, and downpayment on a house. If you do have one, is it still 6-12 months of expenses after you buy a vehicle (car loan?) and a new home (presumably larger monthly payment)? Yes, we have well over a 12 month emergency fund. This applies even if our expenses go up with a car and another house. Personally - until you have a little one on the way and a 1 bedroom would definitely been cramped, I'd hold off on the move, until it ...
by Markr867
Wed Sep 07, 2022 5:52 am
Forum: Personal Finance (Not Investing)
Topic: [Mortgage Question]
Replies: 19
Views: 2100

[Mortgage Question]

Hi all, My partner (36) and I (33) have a lot of different paths that we could take with our finances over the next few years and I know we're on the right track, but I wanted to get some advice and input on what makes the most sense. Some background.. We currently own a one-bedroom condo in Arlington, VA and we have $66K left on a 15-year mortgage with a 2.5% rate. The condo was fine pre-pandemic, but now we both work from home 95% of the time, the condo is getting too small, and we want to speed up the process of buying a house in State College, PA. We are planning to keep the condo even if we move. It is in a great area and we see the price continuing to rise and we'd like to have the "city" condo for at least a little while. W...
by Markr867
Sat Jun 04, 2022 9:38 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1202066

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

fujiters wrote: Sat Jun 04, 2022 9:36 am
Markr867 wrote: Sat Jun 04, 2022 9:35 am So I feel dumb for even posting this because I thought I understood how I-Bonds work, but I'm a bit confused. I bought $5K worth of I-Bonds in March, so the issue date was set as 3/1/22. I thought I would see interest post in June since the 3 month penalty window would be March, April, and May. But June 1 came and went with no interest posted. Why is that?
June 1 would show accumulated interest through May. You will see interest from June on July 1.
I knew I was missing something super obvious. Thank you!
by Markr867
Sat Jun 04, 2022 9:35 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1202066

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

So I feel dumb for even posting this because I thought I understood how I-Bonds work, but I'm a bit confused. I bought $5K worth of I-Bonds in March, so the issue date was set as 3/1/22. I thought I would see interest post in June since the 3 month penalty window would be March, April, and May. But June 1 came and went with no interest posted. Why is that?
by Markr867
Sun Feb 13, 2022 8:26 am
Forum: Personal Finance (Not Investing)
Topic: Pay raises for 2022
Replies: 421
Views: 63178

Re: Pay raises for 2022

13% raise, 4% bonus and 40 hour “Time Off” award. For a federal government employee, I was shocked. Financial regulator with comp setting authority? I'm surprised they gave out raises before the full year appropriations bill was signed unless you're at a non-appropriated agency. My place is dragging their feet on the new CBA negotiations and 2022 pay raise but we wont know anything until the appropriations bill is signed. The new guy seems very anti-employee so I'm not expecting much. We have paybands so we don't get the step increases regular GS folks get. Nope, a DoD agency. It seems like a lack of an appropriations bill didn't matter at all to my leadership, since we've been told that CIVPAY/labor dollars are a "must pay" rega...
by Markr867
Fri Feb 11, 2022 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Pay raises for 2022
Replies: 421
Views: 63178

Re: Pay raises for 2022

13% raise, 4% bonus and 40 hour “Time Off” award. For a federal government employee, I was shocked.
by Markr867
Wed Feb 09, 2022 8:13 am
Forum: Personal Investments
Topic: 32 & 35 - FIRE Planning Checkup
Replies: 51
Views: 5759

Re: 32 & 35 - FIRE Planning Checkup

It would be hard to spend $100,000 in retirement if you’re spending a lot less than that now. The reason you’re spending a lot less than that now is because that’s make sense for you. If your current spend was wrong for you, then you’d be spending more or less. Travel is definitely a way to drive your expenses far beyond what you are happy spending, but you probably won’t do that since you’d likely be unhappy spending that much. What you’re doing is playing games with the numbers in order to get to the hypothetical spend that would give you comfort. I played the same sorts of games too, specifically by adding a big travel expense. At age 50, though, my desire to go through the hassles of international travel have trended downward, not upwa...
by Markr867
Tue Feb 08, 2022 12:46 pm
Forum: Personal Investments
Topic: 32 & 35 - FIRE Planning Checkup
Replies: 51
Views: 5759

Re: 32 & 35 - FIRE Planning Checkup

Paying off your home is never dumb. Don't let anyone tell you that its more sophisticated to borrow on your home to invest (which is exactly what you are doing when you don't pay off a mortgage but could). Congrats on your success but as a tax payer I have to scratch my head when you can make $300k a year combined working for the government in a stress free manner! Clearly you are skilled at handling money but wow! I know that there are people firmly on both sides of the "pay down mortgage vs. invest" debate, so I wanted to add that caveat in there so this thread wasn't derailed by one comment. :D I will say that we are lucky with our jobs. No working late/weekends, no managing of people, and non-demanding bosses = low stress in ...
by Markr867
Tue Feb 08, 2022 12:16 pm
Forum: Personal Investments
Topic: 32 & 35 - FIRE Planning Checkup
Replies: 51
Views: 5759

Re: 32 & 35 - FIRE Planning Checkup

aristotelian wrote: Tue Feb 08, 2022 12:04 pm I think you've got a good plan and if anything you can probably retire earlier if we get halfway decent returns. Can you clarify does the $100k spending assume a paid off mortgage? At the very least it sounds like you've got some flexibility in that budget so I would have no problem with you retiring with a 3.5% withdrawal rate understanding your budget might have to go down to 70-80k if returns are poor.
It assumes a paid off mortgage. If we keep the condo in VA, we would get a 15-year mortgage in PA and aim to pay it off within 10 years. If we sell the condo in VA, the proceeds from that would most likely cover the entire mortgage in PA. Even if we had to get a small mortgage, it would be gone in a few years.
by Markr867
Tue Feb 08, 2022 11:40 am
Forum: Personal Investments
Topic: 32 & 35 - FIRE Planning Checkup
Replies: 51
Views: 5759

Re: 32 & 35 - FIRE Planning Checkup

Those figures would considerably impact the overall FIRE number, withdrawal rates, asset allocations, glidepaths, possible conversions, etc. -- basically every important investment decision to make for an early retiree. I have managed to retire at 45 without giving a single moment's thought to SS. I don't plan to think about it until it's time to take it, honestly. At which point, it will just be used to by stupidly expensive things that I wouldn't buy if I didn't have that "found money". Or...it will be used as a cushion in my original calculations. "ignoring" it is probably the wrong term...I really have not ignored it, I just haven't used it to determine if I have enough money to retire. This is pretty much exactly h...
by Markr867
Tue Feb 08, 2022 11:25 am
Forum: Personal Investments
Topic: 32 & 35 - FIRE Planning Checkup
Replies: 51
Views: 5759

Re: 32 & 35 - FIRE Planning Checkup

Thanks to you both for the links. So I took the data from SSA and copied it into the calculator and then assumed that I work 10 more years earning $147K per year (I couldn't get the slider to go any higher), and it says that my benefit if I wait until 70 would be $3,049 per month or $36,588 yearly. Does that seem right? Seems awfully high given that I would be "retiring" at 42. And it also assumes that there are no changes to SS between now and 2059.

Edited: I see that the slider doesn't go higher than $147K because that is the 2022 max for SSI taxable earnings.
by Markr867
Tue Feb 08, 2022 10:56 am
Forum: Personal Investments
Topic: 32 & 35 - FIRE Planning Checkup
Replies: 51
Views: 5759

Re: 32 & 35 - FIRE Planning Checkup

I understand where you guys are coming from regarding the pension and SS. So for the sake of discussion... Pensions: - If my partner retires at 45, he will have 22 years of service in the government. Let's say he maxes out at a high 3 of $175K. 1% per year x 22 years = 22% of $175K or $38.5K that would start at age 62. He will probably stay with the government since he already has 12 years there. - If we do end up moving to State College, I may not stay with the government. So I would not have any pension in that case (less than 5 years of service). But I could stay with the government, who knows. That will become more clear in a few years. Total pensions = $38.5K, but potentially more. Social Security: I will be honest that I have no idea ...
by Markr867
Tue Feb 08, 2022 9:49 am
Forum: Personal Investments
Topic: 32 & 35 - FIRE Planning Checkup
Replies: 51
Views: 5759

Re: 32 & 35 - FIRE Planning Checkup

Wiggums wrote: Tue Feb 08, 2022 8:53 am Keep in mind that will owe taxes on money withdrawn from retirement type accounts (except Roth). It may make sense to do some Roth conversions in retirement. You should think about where you will pull cash between retirement and age 59.5
Good point. Our brokerage accounts are about $900K right now. 10 more years of contributing at least $20K per year will be $1.1M without any growth. Using 4% growth, that puts us over $1.5M, which should fund us from retirement until 59. Then the TSPs and Roths kick in. And, hopefully, pensions and SS after that.
by Markr867
Tue Feb 08, 2022 9:43 am
Forum: Personal Investments
Topic: 32 & 35 - FIRE Planning Checkup
Replies: 51
Views: 5759

Re: 32 & 35 - FIRE Planning Checkup

What you are missing is life happens, plans change, the future is uncertain. It’s great to dream but make sure you live life in the moment as well. I would focus my energies into building an even stronger foundation with my partner, my family, my friends, and my community. Find your purpose and your drive. I strongly suggest putting your excellent savings rate on auto-pilot, find a balance and enjoy life. Thanks, WoodSpinner! We're definitely working on getting less hands on and just letting it ride from here on out and reevaluating annually. We're taking advantage of our situation to prioritize what is important to us. We're lucky that we are both working remote still, so we try to spend a week at each of our parents' house every few mont...
by Markr867
Tue Feb 08, 2022 8:18 am
Forum: Personal Investments
Topic: 32 & 35 - FIRE Planning Checkup
Replies: 51
Views: 5759

Re: 32 & 35 - FIRE Planning Checkup

You don't seem to be accounting for pensions or social security at all? So at pension age, you may only need to cover $100k minus your pensions. And at social security age, you may only need to cover $100k minus your pensions minus your social security benefits. You are correct. I'm trying to ignore pensions and Social Security for now. I know that sounds foolish, but I know it will be hard for us to actually pull the trigger and retire whenever we hit our "number" (whether that is $3.3M or something else). Knowing that the pensions and SS will be there and just increase the chance that this plan is successful will make it mentally easier to pull the trigger. How much are you spending right now? Hard to say if $100k is a lot unle...
by Markr867
Tue Feb 08, 2022 7:53 am
Forum: Personal Investments
Topic: 32 & 35 - FIRE Planning Checkup
Replies: 51
Views: 5759

32 & 35 - FIRE Planning Checkup

Hi all. My partner and I are very interested in the FIRE movement and we have a very solid foundation for our ages. We have a NW of $1.9M - $1.5M investments, $400K condo (with $300K in equity), $50K in cash. We are both federal employees with non-stressful, secure jobs. We both make $150K for a household income just over $300K. It is a good situation, but we are not interested in working longer than we need to just to accumulate money that we won't be able to spend during our lifetimes. We will not be having kids and we will receive pensions at age 62. The amount will be determined by how long we work in the government, but I would expect these to throw off about $30K between the two of us. I'm estimating retirement spending of $100K, incl...
by Markr867
Thu Jan 13, 2022 6:09 pm
Forum: Personal Investments
Topic: Portfolio Review for 33 year old
Replies: 5
Views: 1442

Re: Portfolio Review for 33 year old

acejacksingh wrote: Thu Jan 13, 2022 5:51 pm Additional Question Added.
There is a three month lag in interest starting to post to account for the 3 month interest "penalty" if you withdraw before 5 years. You'll see interest start posting at the end of the fourth month.
by Markr867
Fri Jan 07, 2022 8:33 am
Forum: Personal Investments
Topic: Am I on track at age 30? Should I switch my roth IRA fund?
Replies: 12
Views: 2268

Re: Am I on track at age 30? Should I switch my roth IRA fund?

I don't have a lot of suggestions to add, but wanted to add kudos and provide some encouragement. I'm 32 with very similar stats (salary, asset allocation, tax rate, etc.) I just looked back to my NW on December 31, 2019 when I was 30 (I keep a spreadsheet that tracks my NW at the end of each year), and I was at $339K. Just over 2 years later, I'm at $604K. I remember feeling similarly to how you are feeling now - how will it ever grow? $1M seems so out of reach. I know it is said over and over, but just stick with it. The market returns have obviously helped over the last two years, but I've been shocked at how fast the money has started accumulating, and I'm targeting to be at around $725K at the end of this year when I'm only 33. I promi...
by Markr867
Wed May 19, 2021 9:37 am
Forum: Personal Investments
Topic: Investing for Retired Parents
Replies: 11
Views: 1136

Re: Investing for Retired Parents

Choices for very conservative funds include Target Retirement Income (30/70) and Life Strategy Income (20/80) funds. If they want to keep the Roth all stocks, then it is a little more complicated. This might be a case where never attending to rebalancing or the separate excursions of stocks and bonds is recommended using the above types of funds. This is great advice and I'm looking into these now - thank you! They didn't ask for stocks to be in the Roth, that was just my thought process based on my own portfolio and the guidance that I've read here. But for them, it's probably easiest to just have them in one fund. They are a bit concerned about exposure to equity, but they are open to the idea because their portfolio hasn't grown at all.
by Markr867
Wed May 19, 2021 7:25 am
Forum: Personal Investments
Topic: Investing for Retired Parents
Replies: 11
Views: 1136

Investing for Retired Parents

Good morning, everyone. My parents are retired (both in their early 70s) and they were investing their money in accounts at Edwards Jones, managed by a neighbor. The fees were too high for my liking when I looked at what they were invested in (they were paying nearly 1% expense ratios), so I suggested that they move their money to Vanguard. They just did the transfer and the money hit their account yesterday. I'm trying to help them get comfortable investing and managing their own money with my help. Some background: - They are VERY risk adverse. They had money invested in the stock market for my college expenses and had to pull it out in 2008/2009, so they were pulling it out at the bottom of the market. They are now convinced that this wi...
by Markr867
Fri Nov 20, 2020 8:26 am
Forum: Personal Investments
Topic: 31 Years Old - Allocations
Replies: 11
Views: 1376

Re: 31 Years Old - Allocations

No need to change anything. Getting married and filing jointly may drop your tax bracket making Roth TSP more desirable. Even in the 22% tax bracket Roth TSP is likely the correct choice with a future pension (of course lots of changes are likely in your next 20yrs). That said, Traditional TSP could be the right choice if you really retire early and defer the pension, you could plan on Roth conversations during low income years with less income and no pension. Thanks for the reply. Could you (or anyone else) please expand on why the Roth TSP would be better? I make $132K and my partner makes $125K (also government with a pension down the road), so combined we're at $257K. That would put us in the 24% tax bracket when we get married. For no...
by Markr867
Thu Nov 19, 2020 1:56 pm
Forum: Personal Investments
Topic: 31 Years Old - Allocations
Replies: 11
Views: 1376

Re: 31 Years Old - Allocations

Overall looks good and you're on the right track. I'd be interested to see how cash factors in as I like to account for that in my allocations. As you build more wealth you may want to look to diversify beyond public equities and into some alts like real estate. But for now I think you're in a great spot with allocations. Keep it up the good work! Cash is at $30K, which is about one year's worth of pared down expenses in the event of a job loss. Maybe slightly high, but with the pandemic and a wedding coming up at some point, I'm comfortable with that amount for now. I definitely would like to get into real estate in the future. We own a condo in Arlington, VA, and when we pay it off, our plan is to move to a LCOL area and keep this place ...
by Markr867
Thu Nov 19, 2020 11:27 am
Forum: Personal Investments
Topic: 31 Years Old - Allocations
Replies: 11
Views: 1376

Re: 31 Years Old - Allocations

No need to change anything. Getting married and filing jointly may drop your tax bracket making Roth TSP more desirable. Even in the 22% tax bracket Roth TSP is likely the correct choice with a future pension (of course lots of changes are likely in your next 20yrs). That said, Traditional TSP could be the right choice if you really retire early and defer the pension, you could plan on Roth conversations during low income years with less income and no pension. Thanks for the reply. Could you (or anyone else) please expand on why the Roth TSP would be better? I make $132K and my partner makes $125K (also government with a pension down the road), so combined we're at $257K. That would put us in the 24% tax bracket when we get married. For no...
by Markr867
Wed Nov 18, 2020 6:39 pm
Forum: Personal Investments
Topic: 31 Years Old - Allocations
Replies: 11
Views: 1376

Re: 31 Years Old - Allocations

tashnewbie wrote: Wed Nov 18, 2020 6:36 pm Looks good to me. A couple thoughts:

1. How do you contribute $1930/month (>$23k/year) to TSP? At your age the current max is $19.5k/year.

2. If you want to be able to TLH, be aware of the wash sale rule. You may want to change the funds in the Roth IRA, or at the very least turn off automatic reinvestment of dividends in both the Roth IRA and taxable brokerage account.
1. Sorry, should have stated that this includes my 5% agency match.

2. TLH is something I really need to educate myself more about. Putting that on my list of things to research when I have some time. Thank you!
by Markr867
Wed Nov 18, 2020 6:26 pm
Forum: Personal Investments
Topic: 31 Years Old - Allocations
Replies: 11
Views: 1376

31 Years Old - Allocations

Hi all, Looking for critique on my current portfolio allocations and how I could improve going forward. 31 years old, engaged, interested in an "early" retirement (sometime in our early 50s). TSP Current Balances F Fund (Fixed Income): $41,511 C Fund (Common Stock): $119,848 S Fund (Small Cap Stock): $8,703 New Allocations - $1,930/month F Fund: 25% C Fund: 70% S Fund: 5% HSA - Fidelity Current Balances FTBFX (Fidelity Total Bond Fund): $3,606 FSKAX (Fidelity Total Market Index Fund): $4,369 New Allocations None - no longer participating in a HDHP Roth IRA - Vanguard Current Balances VTIAX (Vanguard Total International Stock Market): $23,539 VTSAX (Vanguard Total Stock Market): $44,765 New Allocations - $6,000/year A mix of VTIAX,...
by Markr867
Thu Jun 18, 2020 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1265284

Re: Refinance Mega Thread

We are about to close tomorrow with Northpointe on a 15 year refinance, and I have to say, the process has been pretty awful. They offered us a great rate back in mid-April, but almost every step of the way, we had to ping the mortgage rep in order to keep the process moving. We wouldn't hear anything, but as soon as we e-mailed, magically something happened. They had to extend our rate lock because they couldn't get all of the documents in order (despite us being extremely responsive and returning all requests within a few hours at most), and we still have not received a final closing disclosure for tomorrow despite asking multiple times. Would steer clear. Maybe they are overwhelmed with the number of requests that came in during April, b...
by Markr867
Tue Apr 14, 2020 6:16 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 12862
Views: 1265284

Re: Refinance Mega Thread

Good morning, all. We reached out to Northpointe Bank (Thanks for the suggestion!) and we got some interesting quotes, but I'd like some help verifying my numbers before we pull the trigger... We got our mortgage originally in March 2017 at 4.375%, but refinanced in September 2019.We pay a significant amount extra each month and are on track to have the current mortgage paid off by November 2027. Current Mortgage Original Loan Amount: $251,000 Current Loan Amount: $232,366.71 Term: 15 Year Fixed Interest Rate: 3.125% Payment: $2,110 (includes everything - PITI) Extra Payment: $1,140 (monthly) Total Payment: $3,250 (monthly) Quoted Options from Northpointe 2.5% with $1900 in closing costs 2.625% with $900 in closing costs We have the option ...
by Markr867
Tue Dec 31, 2019 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: What Are Your 2020 Goals?
Replies: 56
Views: 13110

Re: 2020 Goals?

Sorry to hear about your accident, but glad you seem to be pulling through.

My 2020 goals are pretty non-eventful, but I've listed them below:
- Max out my 401K, Roth IRA, HSA, and invest at least $20K into taxable (that's ~$50K of savings on $120K of income.. not bad)
- Go to at least two new states (I have a goal to visit all 50 by the age of 40)
- Run at least 1000 miles
- Run my second marathon in a time of 3 hours 45 minutes or less

The first one is obviously money driven, the second shouldn't cost us much because we travel on points, and the last two are nearly free :mrgreen: (besides the cost of running shoes, etc.)
by Markr867
Tue Dec 31, 2019 5:49 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 4273
Views: 1072136

Re: Share your net worth progression

I've been a long time lurker in this thread and it is very motivating and inspiring. I haven't kept track of my net worth like I should have, so I'm starting now and I will revisit each year with my updates. This will help me stay accountable.

Net Worth as of 12/31:

- 2019: $339K (30 years old)

At the beginning of this decade, I was still in college with a negative net worth. Looking forward to seeing how things progress in 2020. :sharebeer
by Markr867
Tue Jul 23, 2019 8:18 am
Forum: Personal Finance (Not Investing)
Topic: Help! Should we refinance our 4.375% mortgage loan?
Replies: 16
Views: 2113

Re: Help! Should we refinance our 4.375% mortgage loan?

Thanks for all the responses, everyone. The more I play around with different calculators, I can't see how this doesn't make sense, given that we plan to either stay in the condo or rent it out for many years to come. Keep in mind that there are two main ways to avoid paying up front for the closing cost of a refinance: 1. The cost can be wrapped into the new mortgage. You pay nothing out of pocket, but you still end up owing more and paying more. The break-even point depends on closing costs and old/new rates, but if you sell or refinance again before the break-even point, you'll have paid more. 2. You can get a lender credit that covers the closing cost, like negative points. In exchange you pay a slightly higher rate. But so long as this...
by Markr867
Mon Jul 22, 2019 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Help! Should we refinance our 4.375% mortgage loan?
Replies: 16
Views: 2113

Help! Should we refinance our 4.375% mortgage loan?

Hi, all. We are 2.5 years into a 30 year mortgage on our condo in Northern Virginia. We paid $380,000 for our condo and put 20% down, so our loan amount started at $304,000. The rate we got was 4.375% and we currently owe ~$253,000. Our total monthly payment (principal, interest, escrow, insurance, and taxes) is $1,840. We are paying $3,250 on the mortgage every month in an effort to pay it off quickly. We are on track to have it paid off in about 10 years at this rate. We plan to live in the condo for at least 5 more years, and if we ever move, we are 95% certain we would keep it as an investment property. I called our mortgage lender (we are very happy with them and would like to continue using them). I was quoted about $3k in closing cos...
by Markr867
Thu Jul 04, 2019 7:45 am
Forum: Personal Investments
Topic: Help With Asset Allocation for 30 Year Old
Replies: 4
Views: 1063

Re: Help With Asset Allocation for 30 Year Old

Duckie wrote: Wed Jul 03, 2019 5:01 pm I would allocate contributions as follows:
  • In the 401k put 50% of each contribution toward VBMFX and 50% toward VFINX.
  • In the Roth IRA contribute 100% to VTSAX.
  • In taxable contribute 100% to VTIAX (for now).
  • In the HSA contribute 100% to FSKAX (as long as you have your deductible amount in a fixed income fund).
  • Once or twice a year add up the dollar amounts in each account, figure the percentages, and rebalance in the 401k and, if necessary, the Roth IRA to get your desired AA.
This is exactly what I was looking for, and it makes sense to me.

My deductible is around $2.5K, so I'll put the $3K I have in there now in FTBFX and then, going forward, I'll contribute to FSKAX.

Thanks for the help.
by Markr867
Wed Jul 03, 2019 11:55 am
Forum: Personal Investments
Topic: Help With Asset Allocation for 30 Year Old
Replies: 4
Views: 1063

Help With Asset Allocation for 30 Year Old

Hi, all. I just started a new job last week and since I'm going to be moving my 401K and HSA over to my new company, I want to take a moment and figure out my asset allocation in the most tax-advantaged way possible. Background Emergency funds: Have $30K in Ally earning between 2.1-2.8%; this represents about 10 months of expenses for me Debt: $255K left on a 30-year mortgage at 4.375% (this is split with my partner) Tax Filing Status: Single Tax Rate: 25% Federal, 5.75% State State of Residence: VA (in Arlington, VA, so a HCOL area) Age: 30 Desired Asset Allocation: 90% Stocks/10% Bonds (80/20 Domestic/International) Current Portfolio 401K - $112K invested in a LifePath 2055 fund. I am moving this to my new 401K as soon as I figure out the...
by Markr867
Tue Apr 02, 2019 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Should We Refinance?
Replies: 1
Views: 355

Should We Refinance?

With all of the talk about mortgage rates dropping, I've been starting to research if a refinance makes sense in our case.. of course I would like to get the opinions of the trusty people here. We are 2 years into a 30 year mortgage on our condo in Northern Virginia. We paid $380,000 for our condo and put 20% down, so our loan amount started at $304,000. The rate we got was 4.375% and we currently owe $261,800. Our total monthly payment (principal, interest, escrow, insurance, and taxes) is $1,840. We are paying $3,250 on the mortgage every month in an effort to pay it off quickly. We plan to stay in the condo for at least 5 more years, and if we ever move, we would probably keep it as an investment property. Given that we have excellent cr...
by Markr867
Sun Feb 03, 2019 7:18 am
Forum: Personal Investments
Topic: Ally Bank's nightmarish online reviews -- should I be worried?
Replies: 105
Views: 21339

Re: Ally Bank's nightmarish online reviews -- should I be worried?

I opened a savings account with them during their 1% bonus promo a few months ago. I've been very happy since, and I'm considering making them my main bank.
by Markr867
Sun Feb 03, 2019 7:16 am
Forum: Personal Investments
Topic: Seeking Guidance As I Turn 30
Replies: 15
Views: 1610

Re: Seeking Guidance As I Turn 30

+1 on the HSA. One thing I don't see is a car fund to pay cash for your next car. You might also be at a point it would make sense to do some things like modest travel while you are young if you have not been doing that. Since we live in Arlington, with great public transit, we only need one car and we hardly use the one we have. We expect it to last many more years and we would absolutely pay cash for a new one (would come out of our liquid savings). Travel is definitely a HIGH priority for us. We do at least one large international trip per year, but we play the whole credit card "churning" game and have amassed at least $15K in points just sitting there waiting to be used. We're planning a large Maldives trip next year. Flight...