Search found 95 matches

by Simple Simon
Fri Nov 16, 2018 4:23 am
Forum: Personal Finance (Not Investing)
Topic: How Long / Hard To Become a Millionaire on Under $100k Income
Replies: 87
Views: 7340

Re: How Long / Hard To Become a Millionaire on Under $100k Income

MRMN wrote:
Thu Nov 15, 2018 4:27 pm
I earned more money my senior year of high school working as a concrete laborer than my mother did that same year.
Respect due to your mother for working as a concrete laborer :sharebeer
by Simple Simon
Fri Nov 16, 2018 2:30 am
Forum: Investing - Theory, News & General
Topic: Should I expect 4 funds to perform better than 2 funds?
Replies: 6
Views: 740

Should I expect 4 funds to perform better than 2 funds?

Say I want 50% stocks and 50% bonds. The simplest way is: 50% world stocks, 50% world bonds. But is there an advantage to: 25% home stocks, 25% international-ex-home stocks, 25% home bonds, 25% international-ex-home bonds. If so, what is the basis of the advantage, mathematically? And, if so, is the...
by Simple Simon
Wed Jun 20, 2018 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Why pay cash for a car?
Replies: 250
Views: 32950

Re: Why pay cash for a car?

I pay cash to keep things simple.

Hand over some cash. Get a car. Very simple.

v

Enter a finance contract. Get use of a car. Recurring monthly expense. Extra insurance issue. Concern about residual value. Not so simple.
by Simple Simon
Fri May 18, 2018 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Would you send your children to private school in my situation?
Replies: 93
Views: 7123

Re: Would you send your children to private school in my situation?

You have to choose between A and B. You think A is better, but it also costs more. So you weigh up the marginal benefit of A over B, and whether is is worth $(A-B) to you. You'll want to consider the opportunity cost too- what can you not do if you choose A. In your case OP I imagine it hinges on wh...
by Simple Simon
Thu Mar 22, 2018 6:38 pm
Forum: Personal Consumer Issues
Topic: Berlin - how many days and where to stay?
Replies: 33
Views: 2394

Re: Berlin - how many days and where to stay?

Theseus wrote:
Thu Mar 22, 2018 5:57 pm
I love the squares in Europe where I can get a glass of wine or a cup of coffee and people watch.
Is there something unique or flamboyant about the way you drink? :D
by Simple Simon
Thu Mar 22, 2018 6:25 pm
Forum: Investing - Theory, News & General
Topic: Working till retirement is not a great plan
Replies: 175
Views: 15634

Re: Working till retirement is not a great plan

bogglizer wrote:
Thu Mar 22, 2018 6:13 pm
What if you die first?
Ha, good point.

Reminds me of the quote in "your money or your life", it goes something like this:

At some point, everyone will (A) stop working for money, and (B) die. If A happens before B, it is called retirement. :D
by Simple Simon
Thu Mar 22, 2018 5:56 pm
Forum: Investing - Theory, News & General
Topic: Working till retirement is not a great plan
Replies: 175
Views: 15634

Re: Working till retirement is not a great plan

Surely everyone works till retirement- by definition?
by Simple Simon
Sat Mar 10, 2018 3:09 pm
Forum: Local Chapters and Bogleheads Community
Topic: Post your Financial Milestone Announcements Here
Replies: 511
Views: 58514

Re: Post your Financial Milestone Announcements Here

KlangFool wrote:
Wed Jan 10, 2018 10:20 pm
Folks,

2017 will be the first year that my portfolio growth matched my gross income. All I need is 2 more years like this.

KlangFool
Getting a really badly-paid job will make this easier :wink:
by Simple Simon
Wed Mar 07, 2018 4:32 am
Forum: Personal Finance (Not Investing)
Topic: I suck with my finances. (I am from EU)
Replies: 13
Views: 1203

Re: I suck with my finances. (I am from EU)

Another way: increase your income, without increasing your spending.
by Simple Simon
Mon Mar 05, 2018 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Housing Budget Check (paging Watty / KlangFool)
Replies: 86
Views: 7849

Re: Housing Budget Check (paging Watty / KlangFool)

I'm generally prudent (tightwad) but the single extravagance of buying a large house has been a huge source of happiness in the life of my family. It has been the Petri dish which has allowed all sort of growth. I would not change for one minute. I expect we would be wealthier if we had invested the...
by Simple Simon
Fri Mar 02, 2018 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: "Buckets" system for personal finance results in too much cash?
Replies: 21
Views: 2616

Re: "Buckets" system for personal finance results in too much cash?

I agree that a big benefit of cash, is that it buys peace of mind.

Once you have 100% or 95% peace of mind, invest. This point may vary from person to person, and from year to year.
by Simple Simon
Thu Mar 01, 2018 4:08 pm
Forum: Forum Issues and Administration
Topic: Extreme views, kite flying and benchmarking
Replies: 6
Views: 1349

Extreme views, kite flying and benchmarking

Hi all. I enjoy and value this forum, and have learned a lot from people with diverse financial knowledge and experience. One thing I wonder. When a poster has a very extreme and very strong view - even if most others disagree, does this shift the consensus view in their direction somehow? An exampl...
by Simple Simon
Wed Feb 28, 2018 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

<<From my own perspective, it hinges on net worth and availability of cash.>> So, what is the ratio that you goes by? 1) House price versus the net worth excluding the house 2) Cash versus the remaining mortgage or years of annual expense KlangFool 1) Including the current value of house in net wor...
by Simple Simon
Wed Feb 28, 2018 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

1) So, you are agreeing with my formula? Aka, whether a person is "House Poor" is dependent on both their income and their net worth excluding the house? Pretty sure he is not agreeing with your formula! From my own perspective, it hinges on net worth and availability of cash. It does not depend on...
by Simple Simon
Wed Feb 28, 2018 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

If a median family with household income of 60K buy a 240K house, it will affect their ability to finance their children college education. Do you claim that it is not true? Needn't be true. Depends on many factors, like: - how much downpayment - what other assets - how many years until college edu...
by Simple Simon
Wed Feb 28, 2018 6:46 am
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

The more I think about this, it seems to me that "house-poor" is a state of mind. And one way to avoid this state of mind is to keep a healthy cash balance available. For example, when I bought my last house I put 53% down. I borrowed about 2.8x household income. I felt poor for a time after that- I...
by Simple Simon
Tue Feb 27, 2018 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

KlangFool wrote:
Tue Feb 27, 2018 4:00 pm
Do you consider folks that have [choose] to take a student loan for their kid's college as "House Poor"?
I'll say no. That would be like considering folks with electric cars as vegetarian. They are two different choices, two different things.
by Simple Simon
Mon Feb 26, 2018 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

KlangFool wrote:
Sun Feb 25, 2018 6:27 pm
You missed my point which is I do not care about the current price of my house at all. Even if it is zero, it would not affect me financially.
You could however buy an infinite number of such houses, according to your formula.
by Simple Simon
Mon Feb 26, 2018 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

I wouldn't consider the stock market to be a bad investment. But I think buying stock on 5x margin where the interest payment on the margin loan is 35% of your gross salary and you work in an unstable industry is probably a poor investment. Well, it would certainly be a risky strategy, but could tu...
by Simple Simon
Mon Feb 26, 2018 6:35 am
Forum: Personal Finance (Not Investing)
Topic: Buy outright or create new debt
Replies: 45
Views: 2731

Re: Buy outright or create new debt

We could have $500,000 sitting in regular savings account and it would make her physically sick to have to take out $3,000 for a new washer and dryer. Been like this for 20 yrs. Wish me luck with convincing her on the cars. Maybe Watty's way would work for her? Get her blessing to save $50 per mont...
by Simple Simon
Sun Feb 25, 2018 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

Klangfool. You appear to be making two recommendations.

1) That only very wealthy people should buy houses (have investments 3.5x the price of the house they wish to buy)
2) That when they buy a house, they should take the opportunity to leverage their portfolio by a factor of 1.4

Am I right?
by Simple Simon
Sun Feb 25, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

<<I thought you were recommending only buying a house outright (with no loan),>> No. My recommendation is to buy the house with 20% downpayment and 30 years fixed rate mortgage. <<only if you would still have at least 2.5x the house price in investments afterwards.>> Only buy the house that after 2...
by Simple Simon
Sun Feb 25, 2018 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

You have not answered our questions. Sorry. Q) Why do you have to buy a house? A) You don't. Why do you ask? Q) What is wrong with renting a house? A) I don't think there is anything wrong with renting a house. Why do you ask what is wrong with renting a house? Q) Who says that you must buy a house...
by Simple Simon
Sun Feb 25, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

BogleMelon, That is the number that I can sleep with. With a 60/40 portfolio, if the stock market drops 70%, I am down to 70% of my portfolio. Even at that point, I have enough money to pay off the house if I want to. KlangFool KlangFool, may I apologize, I think I have been misunderstanding your p...
by Simple Simon
Sun Feb 25, 2018 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

Yeah and that, my friend, is the secret to success. Let me say it out loud: "The Power of Compounding Interest." I chose to buy less house. I chose to live in a LCOL area with good opportunities for my career field. I chose to save early. The people who don't know this will complain why can't they ...
by Simple Simon
Sun Feb 25, 2018 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

KlangFool wrote:
Sun Feb 25, 2018 3:09 pm

People don't need more house at any age.

KlangFool
Let me rephrase that. A family of 5 needs more accommodation than a retired couple. At least, this is my view - perhaps you disagree?
by Simple Simon
Sun Feb 25, 2018 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

At the time when people wish to accumulate wealth - usually 20s, 30s, 40s - they also tend to need more house. At the time when people have accumulated as much wealth as they need- say 60s, 70s, 80s - they tend to need less house.

House poor at 70 is perhaps different to house poor at 27?
by Simple Simon
Sun Feb 25, 2018 2:43 am
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

Can a renter be house poor?
by Simple Simon
Sat Feb 24, 2018 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

Do you know your future? Or, anyone's future? How long will someone be fully-employed? When I was young, I do not believe that I could be unemployed or affected by any recession? It is an unknowable number. What is the value of 30% of an unknowable number? For a young person, they will put in an ov...
by Simple Simon
Sat Feb 24, 2018 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

Housing is a basic need and when you pay so much on it and keep on paying regularly - that you have to seriously adjust on other needs then you become house poor. KlangFool is pointing to the high risk that one is taking when he is spending a significant part of his resources on only one aspect of ...
by Simple Simon
Sat Feb 24, 2018 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

OP, If the house price is more than 40% of your net worth excluding your house, you are "House Poor". KlangFool -"Honey, I have good news and bad news." -"The good news: I had our house valued, it's worth 20% more than last year." -"The bad news: this means we are now house poor." -"In fact, if our...
by Simple Simon
Sat Feb 24, 2018 7:35 am
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

OP, If the house price is more than 40% of your net worth excluding your house, you are "House Poor". KlangFool -"Honey, I have good news and bad news." -"The good news: I had our house valued, it's worth 20% more than last year." -"The bad news: this means we are now house poor." -"In fact, if our...
by Simple Simon
Fri Feb 23, 2018 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19840

Re: Defining "House Poor"

Someone is house poor if they own less than one house. :happy
by Simple Simon
Wed Feb 21, 2018 4:07 pm
Forum: Personal Consumer Issues
Topic: [What UN-frugal thing do you do? What do you splurge on?]
Replies: 567
Views: 42049

Re: What UN-frugal thing do you do?

Gym membership- the most expensive deal on the menu. Unlimited classes like pilates, ski fit, aqua fit, swim, gym use, wattbike, squash. In the Winter I probably visit 6 or 7 times per week - sometimes swim in the morning before work and use the gym or a class in the evening. If I had to pay per use...
by Simple Simon
Sat Feb 10, 2018 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford this house?
Replies: 50
Views: 5354

Re: Can I afford this house?

Thank you all for taking the time to respond to my post. for those dying to know, we decided not to get the townhouse. it was really at our max budget and we just could not get comfortable with it. i do laugh though because all the non-bay area people making comments about moving out of the bay and...
by Simple Simon
Sat Feb 10, 2018 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Surprise financial disaster, severe debt $300K caused by brother-in-law - Please help!
Replies: 249
Views: 66119

Re: Surprise financial disaster, severe debt $300K caused by brother-in-law - Please help!

phatkev wrote:
Fri Feb 09, 2018 7:33 pm
I’m not really a doctor.
In this thread's opening post you said you were a physician. Maybe you have retired since?
by Simple Simon
Sun Feb 04, 2018 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford this house?
Replies: 50
Views: 5354

Re: Can I afford this house?

Any asset that goes up 20% in a year can easily go down 20% or 30% in the next year. Visualize how you might feel next year when you are lying in bed at night in your $2M house - except sorry, now it is $1.4M house. With your $1.25M mortgage, knowing that if circumstances forced you to sell you will...
by Simple Simon
Fri Sep 22, 2017 2:10 am
Forum: Investing - Theory, News & General
Topic: AA if you were just starting out again
Replies: 49
Views: 4566

Re: AA if you were just starting out again

We are all just starting out again. The future is a blank page, we have just scribbled our investments in the top left corner. How will your story unfold? When I was younger, I set out to write a thriller. As time went by there were moments of comedy, and elements of tragedy too. There is unrequited...
by Simple Simon
Wed Sep 20, 2017 9:17 am
Forum: Personal Consumer Issues
Topic: Name something you had to have and now you regret purchasing it?
Replies: 387
Views: 46978

Re: Name something you had to have and now you regret purchasing it?

Shares in Electricitie de France. Those guys have lost like 90% since 2004

A postgraduate qualification in sports and exercise medicine. Cost me 6K and a whole lot of time, yet to pay back a penny.

That's it though
by Simple Simon
Wed Sep 20, 2017 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 183
Views: 23321

Re: Let's talk about your FI # and family income [Financial Independence]

coach - "where there is muck there is brass" - work which is unpopular, unpleasant or dangerous often pays well So I'm guessing you think being an inner city school teacher is pleasant, right? Lol. I agree with you, most of the time, but when I start really thinking about it I can think of many car...
by Simple Simon
Wed Sep 20, 2017 8:46 am
Forum: Personal Finance (Not Investing)
Topic: What is the right career path for me?
Replies: 24
Views: 3077

Re: What is the right career path for me?

"3. What menial tasks do you want to spend most of your day doing? Stereotyping here, but physicians are touching sick people and filling out paperwork all day. Researchers spend a lot of time in the lab repeating experiments, peer reviewing, and writing papers. Businesspeople make a lot of phone c...
by Simple Simon
Tue Sep 19, 2017 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 183
Views: 23321

Re: Let's talk about your FI # and family income [Financial Independence]

coach - "where there is muck there is brass" - work which is unpopular, unpleasant or dangerous often pays well
by Simple Simon
Tue Aug 29, 2017 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Can we/should we afford a $2M house?
Replies: 96
Views: 18362

Re: Can we/should we afford a $2M house?

You can afford a $525K house.
by Simple Simon
Wed May 17, 2017 1:45 pm
Forum: Personal Consumer Issues
Topic: Best watch for around $5,000?
Replies: 1115
Views: 274742

Re: Best watch for around $5,000?

best watch for $5,000?

100 Timex Ironman watches
by Simple Simon
Tue Feb 07, 2017 3:53 pm
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 407
Views: 75582

Re: Do you think Ric Edelman is correct, never pay down mortgage

Let's assume you owed $100k. You invested $100k on Jan 1, 2009 in an S&P Index fund, and reinvested the dividends. Today, you'd have $169k (before taxes, after inflation) True. And if we could Marty McFly back to 2009 it would be the best thing to do. But looking forward - if someone invests $100k ...
by Simple Simon
Thu Dec 22, 2016 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Can Bogleheads Have Fun Too?
Replies: 29
Views: 3503

Re: Can Bogleheads Have Fun Too?

Look at all the requests for 1. Food and Eating 2. Travel 3. Vehicles (Cars, Trucks, Bikes, Motorcycles, 4-wheelers, and many more) 4. Watches (I have no idea why they are fun though) 5. Shoes and clothes 6. Purses and accessories 7. Movies, books, TV shows, games, and other media 8. Gifting 9. You...
by Simple Simon
Sat Dec 10, 2016 2:22 pm
Forum: Local Chapters and Bogleheads Community
Topic: Boglehead's newest millionaire
Replies: 89
Views: 11519

Re: Boglehead's newest millionaire

When we cross the threshold, apart from maybe posting here, I will not tell anybody. Not even my wife, unless she asks. Which she won't. She doesn't seem to care about that sort of thing, so I figure why burden her with cares she doesn't need? I'll just keep telling her we are doing fine and as long...
by Simple Simon
Wed Dec 07, 2016 6:04 am
Forum: Personal Consumer Issues
Topic: Should I fill out survey evaluation of my boss?
Replies: 53
Views: 6174

Re: Should I fill out survey evaluation of my boss?

Don't write anything you haven't already said to their face, and publically in your workplace. That way you can't go any more wrong.
by Simple Simon
Tue Dec 06, 2016 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: want to buy property, abandoned trailer on it
Replies: 39
Views: 3575

Re: want to buy property, abandoned trailer on it

buy the land and get a free trailer
by Simple Simon
Wed Nov 30, 2016 5:13 am
Forum: Investing - Help with Personal Investments
Topic: New UK investor need help with passive investment plan
Replies: 7
Views: 1035

Re: New UK investor need help with passive investment plan

I'm assuming the OP will be investing as much as possible in an ISA account. ISA stands for Individual Savings Account. It's a tax shelter to encourage UK residents to save and invest. Benefits from three "no"s - No tax on income - No tax on capital gains - No need to tell the tax man about it. Ther...