Search found 6103 matches

by randomguy
Wed Sep 19, 2018 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Puerto Rico as legal tax Haven?
Replies: 9
Views: 1588

Re: Puerto Rico as legal tax Haven?

If you're earning the money in Puerto Rico maybe... if you're earning money from elsewhere in the U.S. (i.e. from stocks, bonds, retirement account ... a decent job) then you've got income taxable to the Feds. Maybe read the article? If you get your 180-something Puerto Rico days, you dodge Federal...
by randomguy
Wed Sep 19, 2018 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 44
Views: 2796

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

Not that it would necessarily change my pov, but I didn't realize OP/spouse have 2 pensions coming. Did I miss something? :confused There is a line an annuity (1% of high 3 for every year worked – part-time or full-time) . which is basically a "pension". Obviously missing details about things like ...
by randomguy
Wed Sep 19, 2018 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 44
Views: 2796

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

rivers03, Why would anyone choose to pay tax now? You can never do better than the folks that defer their taxes. The impact is asymmetrical. A) In the worst case, it is not too bad for the deferred tax folks. They ended up paying the same tax 30+ years later. B) The worst case for folks that pay ta...
by randomguy
Wed Sep 19, 2018 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 44
Views: 2796

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

Right but their 2 pensions could likely be ~80k pushing them into the 22% bracket based on current tax laws? Of course things will change, but it is not unreasonable to think that 2 pensions alone will fill the bottom bracket for 2 higher-ish earners. We don’t have an exact income breakdown but bas...
by randomguy
Wed Sep 19, 2018 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: What's the best early retirement strategy for us?
Replies: 39
Views: 2936

Re: What's the best early retirement strategy for us?

What is a good basic strategy? Payoff mortgage early, refinance, max out retirement plans...we need some order to the chaos :) Doesn't really matter. Pretty much all that does is getting that 48k/year into savings by either paying off the house or getting in the retirement accounts. Save that for 1...
by randomguy
Wed Sep 19, 2018 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: What's the best early retirement strategy for us?
Replies: 39
Views: 2936

Re: What's the best early retirement strategy for us?

What is a good basic strategy? Payoff mortgage early, refinance, max out retirement plans...we need some order to the chaos :) Doesn't really matter. Pretty much all that does is getting that 48k/year into savings by either paying off the house or getting in the retirement accounts. Save that for 1...
by randomguy
Wed Sep 19, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: “Majority of working-age Americans have no retirement savings”
Replies: 73
Views: 3727

Re: “Majority of working-age Americans have no retirement savings”

The median retirement account balance among working-age Americans is zero, according to a research report by the National Institute on Retirement Security, a non-profit research group based in Washington. The first sentence is a non-starter for me. How can you possibly get a median of 0 when lookin...
by randomguy
Wed Sep 19, 2018 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Leasing Cars in Retirement
Replies: 78
Views: 5309

Re: Leasing Cars in Retirement

I didn't quote any response to get in the middle, but I would venture to say that among non-Bogleheads, most people entering leases couldn't identify the interest rate or many other key figures in their lease. They know what they have to put down, the payment, and the number of months. Sure. But wh...
by randomguy
Wed Sep 19, 2018 11:33 am
Forum: Investing - Theory, News & General
Topic: “Majority of working-age Americans have no retirement savings”
Replies: 73
Views: 3727

Re: “Majority of working-age Americans have no retirement savings”

So where do all these retired people that I see all over the US come from? I suspect people do not tell pollsters the truth about their savings. +1 Why in the world would I want to reveal my financial status to a government agency? You don't have to. Since all of your bank and investment accounts a...
by randomguy
Wed Sep 19, 2018 11:28 am
Forum: Investing - Theory, News & General
Topic: “Majority of working-age Americans have no retirement savings”
Replies: 73
Views: 3727

Re: “Majority of working-age Americans have no retirement savings”

Is is safe to say that "The majority of retirement-age Americans are retired" ? According to the BLS, the groups with the largest projected increase in labor force participation are those age 65 and older . The answer to the entire retirement savings problem is simple: work until you die. I wouldn'...
by randomguy
Tue Sep 18, 2018 6:19 pm
Forum: Investing - Theory, News & General
Topic: Is there such thing as saving TOO much?
Replies: 78
Views: 6608

Re: Is there such thing as saving TOO much?

As for taxes, I've always paid close to 20% in taxes, even the first year of marriage, in which our combined annual gross income was just shy of $10k. Of course, we got it all back in April, but that no effect on our month-to-month income. And you can't just front-load (or back-load) expenses to ma...
by randomguy
Tue Sep 18, 2018 4:16 pm
Forum: Personal Consumer Issues
Topic: How much to spend on rent (balancing savings) - VHCOL area
Replies: 11
Views: 793

Re: How much to spend on rent (balancing savings) - VHCOL area

Given the above, how much would you be comfortable spending on rent? A big part of me wants to get something nice and close to the office but the prices feel insane. Spending 2 hours/day commuitng to save a few bucks on housing is also insane:) You could easily pay 5 or 6k (and probably up around 8...
by randomguy
Tue Sep 18, 2018 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Leasing Cars in Retirement
Replies: 78
Views: 5309

Re: Leasing Cars in Retirement

I recently bought a boat by "triggering a taxable event." In my case I had funds specifically earmarked for a purchase such as this (car, truck, boat, etc.) So I'd have to ask you - if you're not willing to spend the money on a car, then what else are you using that money for? Put it this way - lea...
by randomguy
Tue Sep 18, 2018 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying SS? How Long It Will Take for It to Pay Off?
Replies: 44
Views: 3192

Re: Delaying SS? How Long It Will Take for It to Pay Off?

suppose the market goes down some or all of those 8 years...then what? I believe one *can* create higher returns than the SS increases. And it gets the money into your estate sooner. But market performance has sequence of returns risk while the SS increases from 62 to 70 are fixed Investing your SS...
by randomguy
Tue Sep 18, 2018 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Advisor suggesting 7 Bond funds for my 40%
Replies: 44
Views: 5055

Re: Vanguard Advisor suggesting 7 Bond funds for my 40%

What did the vanguard advisor say when you asked them why their were so many bond funds? It seems like that knowing their rational would allow you to make a more informed decision about if you agree with it or not. And if you can't ask this type of question, why have them?
by randomguy
Tue Sep 18, 2018 3:09 pm
Forum: Personal Consumer Issues
Topic: New SUV
Replies: 24
Views: 1989

Re: New SUV

There's always a catch to those deals. For example, a close friend of mine leased a Hyundai at what seemed like a good price with zero down. She brought it back, and they nitpicked the entire car. Said tires were no good (they were), tried to bill her thousands for normal wear and tear, but "they'l...
by randomguy
Tue Sep 18, 2018 2:49 pm
Forum: Personal Consumer Issues
Topic: New SUV
Replies: 24
Views: 1989

Re: New SUV

Lets be honest - has anybody really talked about their car and said "I didn't get a good deal on it?" Run the numbers yourself on the lease and you'll quickly determine that it's the highest margin sale on new cars for the dealership. Have you checked out the Chevy Blazer that's returning for 2019?...
by randomguy
Mon Sep 17, 2018 7:09 pm
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 111
Views: 7250

Re: Argument for taking social security before 70. Comments?

We're less interested in squeezing every dollar out of the SSA, and more interested in using the longevity insurance feature of the program. Thus it makes sense for me as the much higher earner to delay my benefit as long as I am in average or better health, and for my spouse to take hers somewhere...
by randomguy
Mon Sep 17, 2018 1:40 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Advisor suggesting 7 Bond funds for my 40%
Replies: 44
Views: 5055

Re: Vanguard Advisor suggesting 7 Bond funds for my 40%

2) You could simplify to 1 fund in the taxable, VWIUX, the intermediates and skip the short and long term muni funds. Also, no need to hold 2% VBISX or the TIPS if you want to streamline further. [/quote] You could. You could also hold 3 fund and get the exact duration and credit risk that you want....
by randomguy
Sun Sep 16, 2018 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Leasing Cars in Retirement
Replies: 78
Views: 5309

Re: Leasing Cars in Retirement

I think driving it into the ground was at one time maximizing cost savings. Been there done that drove a Pinto for 11 years. :oops: It might now be less valid since more up to date cars have better safety and accident avoidance features. One accident avoided can be a lot of savings on repairs and f...
by randomguy
Sun Sep 16, 2018 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: How real is cyber risk?
Replies: 140
Views: 6937

Re: How real is cyber risk?

I think Vanguard would be responsible for that. I said "if you are hacked" and I meant you not Vanguard. I don't think that is the most likely scenario. All the cases I know of involved hacks of individual investors or seemed to involve hacks of individual investors. Never heard of a hack of a brok...
by randomguy
Sun Sep 16, 2018 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area housing frenzy cooling
Replies: 120
Views: 17670

Re: Bay Area housing frenzy cooling

Pretty funny saying Oakland isn't real Bay Area. I live here and am actually OK with that statement! :wink: Based on purely anecdotal information, it seems to me a lot of people are considering moving to somewhere between the East Bay and Sacramento-- Lodi, Manteca, Stockton, Vacaville etc. I think...
by randomguy
Sun Sep 16, 2018 1:29 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Disrupted Expectations
Replies: 53
Views: 5999

Re: Larry Swedroe: Disrupted Expectations

The question I have is who believes in these estimates enough to increase their holdings of developed international and EM given they are getting almost 50% higher returns? As much as I like them, I sure am not increasing past the 30% I like to hang around.
by randomguy
Sun Sep 16, 2018 1:21 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area housing frenzy cooling
Replies: 120
Views: 17670

Re: Bay Area housing frenzy cooling

Two cents: if you make this "joke" when you meet folks who live in other parts of the Bay, it might rub some the wrong way. Anyway, going by prices, here's Trulia's heat map - the red (1.5MM+ median) spots wrap the Bay, east and west on all sides, with a few patchy exceptions: Are you kidding? It i...
by randomguy
Sat Sep 15, 2018 11:03 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Disrupted Expectations
Replies: 53
Views: 5999

Re: Larry Swedroe: Disrupted Expectations

Interesting point Park. It appears the plus or minus 5 years around retirement can be a danger window for sequence of returns risk. For the probabilistic folks out there, does it make sense to minimize the risk (i.e. smooth our returns by taking risk off the table) & thus return outside of the sequ...
by randomguy
Sat Sep 15, 2018 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: The Boglehead is anti-entrepreneur?
Replies: 62
Views: 3841

Re: The Boglehead is anti-entrepreneur?

I would say it is more likely the opposite is true - an entrepreneur has no patience of piddling and plodding for 30+ years and then living a frugal lifestyle by spending 3-4% of your savings and then you die. That seems utterly ridiculous to some of them. Very few entrepreneurs are looking to get ...
by randomguy
Sat Sep 15, 2018 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: The Boglehead is anti-entrepreneur?
Replies: 62
Views: 3841

Re: The Boglehead is anti-entrepreneur?

For extreme examples about guys like Zuckerberg or Bezos. Would you say they aren't entrepreneurs because they didn't plough all their money into their company but instead diversified along the way (i.e. all those private placements where he sold stock). Zuckerberg isn't remotely diversified. Even ...
by randomguy
Sat Sep 15, 2018 10:16 pm
Forum: Investing - Theory, News & General
Topic: Pension alternatives
Replies: 40
Views: 2904

Re: Pension alternatives

I don't see an SPIA as useful to anybody that doesn't have a fairly big investment portfolio. If you've only saved 50k or 100k, you probably don't want to take money out of those savings to get an SPIA. I dunno. Consider a couple of modest means who are retiring with two small social security check...
by randomguy
Sat Sep 15, 2018 10:04 pm
Forum: Investing - Theory, News & General
Topic: Pension alternatives
Replies: 40
Views: 2904

Re: Pension alternatives

Find me a SPIA that makes payouts based on 6-8% returns (i.e. what pensions use) and I bet a lot of people would find them appealing. Locking your money up with 3% returns like todays SPIAs offer isn't as remotely as appealing. When I check immediateannuities.com it shows the current joint life pay...
by randomguy
Sat Sep 15, 2018 7:30 pm
Forum: Personal Consumer Issues
Topic: That Extravagant Thing You Do
Replies: 304
Views: 52339

Re: What is your luxury good?

Interesting. I'm probably a "commodity purchaser" because I can't think of any luxury goods I own or even want (my stopwatch cost $15 and my car is a 10 year-old base model Toyota), but I recently paid a premium to get us an ocean view on a beach vacation. The thing is, we have two small children w...
by randomguy
Sat Sep 15, 2018 7:20 pm
Forum: Personal Consumer Issues
Topic: [Wearing] Shorts in Egypt
Replies: 70
Views: 4854

Re: [Wearing] Shorts in Egypt

I know there of plenty here who follow the "I'll just wear whatever is practical wherever I go" school, but I think that can be very disrespectful. Of course lots of folks don't care about that either. It amazed me how many tourists in Rome, even in winter, wandered around St Pete's in their cargo ...
by randomguy
Sat Sep 15, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: The Boglehead is anti-entrepreneur?
Replies: 62
Views: 3841

Re: The Boglehead is anti-entrepreneur?

I just depends on who you are. If you are truly an entrepreneur, you don’t have money to invest in a 401k. You are using your capital. But if you are not actively running a company with your own money, then the BH way is the way to go. JT Sure for some random definition of entrepreneurships. There ...
by randomguy
Sat Sep 15, 2018 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: How to retire
Replies: 9
Views: 1746

Re: How to retire

That works well if no children or grandchildren involved in the decision. That is the main reason people age in place instead of moving. I always wonder if regret doesn't enter into that decision later. It is more than kids. It is the whole social network you have with churches, organizations, frie...
by randomguy
Sat Sep 15, 2018 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: The Boglehead is anti-entrepreneur?
Replies: 62
Views: 3841

Re: The Boglehead is anti-entrepreneur?

Building a company is a concentrated risk. It sometimes leads to riches but the more likely outcome is languishing or failure. But we working stiffs aren't immune to failure. Something could happen today that obliterates my human capital, and then I would find out how good that employer provided di...
by randomguy
Sat Sep 15, 2018 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: The Boglehead is anti-entrepreneur?
Replies: 62
Views: 3841

Re: The Boglehead is anti-entrepreneur?

I just depends on who you are. If you are truly an entrepreneur, you don’t have money to invest in a 401k. You are using your capital. But if you are not actively running a company with your own money, then the BH way is the way to go. JT Sure for some random definition of entrepreneurships. There ...
by randomguy
Sat Sep 15, 2018 4:01 pm
Forum: Personal Consumer Issues
Topic: Developer Laptop
Replies: 26
Views: 1597

Re: Developer Laptop

The ability to use an external GPU for number crunching might be interesting. In particular, you could tinker with the processor and internal GPU, and if and when you have a need to scale up, you could get an external one. In this scenario I think Apple is at a disadvantage because even the externa...
by randomguy
Sat Sep 15, 2018 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: The Boglehead is anti-entrepreneur?
Replies: 62
Views: 3841

Re: The Boglehead is anti-entrepreneur?

I told a former colleague I used the BH forums and his response was “Yeah, they don’t like our tribe.” What he meant was we believed in taking risk. He built and sold a company: I had 80% of my NW tied to my company stock for more than 15 years. Both of us had borrowed heavily at times to maximize ...
by randomguy
Sat Sep 15, 2018 3:01 pm
Forum: Personal Consumer Issues
Topic: The twenty dollar rule revisited
Replies: 44
Views: 4978

Re: The twenty dollar rule revisited

One of the keys to stop spending is to not shop for entertainment. Also plan your spending. Groceries - go with a list and nothing on the list comes home. Same with clothes , shoes, toys for kids, - anything really. I also go to an expensive craft show each year. Go with a budget - intentional spen...
by randomguy
Sat Sep 15, 2018 1:21 pm
Forum: Personal Consumer Issues
Topic: The twenty dollar rule revisited
Replies: 44
Views: 4978

Re: The twenty dollar rule revisited

So getting constructive feedback on the Internet is a problem? The question with stuff like this is are you really trying to correct a problem or are you trying to control your spouse. There is a history of rules like this happening to apply to one spouse (i.e. your 10 dollar/day coffee additction ...
by randomguy
Sat Sep 15, 2018 12:32 pm
Forum: Investing - Theory, News & General
Topic: Pension alternatives
Replies: 40
Views: 2904

Re: Pension alternatives

It's always puzzled me that people generally like pensions and social security, but turn their noses up at SPIAs. In the absence of a pension, I really like the idea of using SS + annuity to create an income floor to protect against bad times. Find me a SPIA that makes payouts based on 6-8% returns...
by randomguy
Sat Sep 15, 2018 12:28 pm
Forum: Investing - Theory, News & General
Topic: Pension alternatives
Replies: 40
Views: 2904

Re: Pension alternatives

In the beginning, you say: If I put $200K in another 4 rental properties, I bet I can get at least $15K a year from the additional properties If you buy a fixed annuity, you will get about $1,000 a month ($12K a year) which is not that far off from $15K without all the associated expenses. And you ...
by randomguy
Sat Sep 15, 2018 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area housing frenzy cooling
Replies: 120
Views: 17670

Re: Bay Area housing frenzy cooling

Couple likely reasons for that. High end ones were more likely to be bought with cash by wealthy who could weather the downturn easier. Lower priced ones were more likely bought with mortgages and owners may have become unemployed and more distressed. I have no clue if cash buyers were numerous to ...
by randomguy
Sat Sep 15, 2018 11:44 am
Forum: Personal Consumer Issues
Topic: Thoughts on Car Expenditures
Replies: 19
Views: 718

Re: Thoughts on Car Expenditures

The utility of going from no car to a 30k car is very high. The utility of going from a 30k care to 125k is basically zero. There is some entertainment value though.
by randomguy
Sat Sep 15, 2018 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Overfunding Tax-Advantaged Accounts?
Replies: 4
Views: 537

Re: Overfunding Tax-Advantaged Accounts?

Hi, my wife and I are 50 and have managed to accumulate about $1.7M in 401(k) and Roth-IRA accounts, but we only have about $200K in taxable accounts. We're sort of on the borderline between the 32% and 35% federal tax brackets. Between my Solo 401(k), her employer 401(k) + match and backdoor Roth ...
by randomguy
Sat Sep 15, 2018 1:05 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area housing frenzy cooling
Replies: 120
Views: 17670

Re: Bay Area housing frenzy cooling

First off Oakland isn't real bay area You lost me in your first line. It's not 'real' Bay Area? It's literally on the Bay, and just across it from SF. What could be more 'Bay Area'? :shock: :) https://upload.wikimedia.org/wikipedia/commons/b/bc/Bayarea_map.png Yes, it's geographically part of the B...
by randomguy
Fri Sep 14, 2018 7:33 pm
Forum: Investing - Help with Personal Investments
Topic: Lower Return Decade Says Jack: Thoughts?
Replies: 81
Views: 6483

Re: Lower Return Decade Says Jack: Thoughts?

The key is, the only way you get to that 6-7% over 10 years, is that you assume PE10 stays around 30 or higher. I think Bogle and others (Grantham for example) tend to assume some level of at least partial reversion towards historical averages when they are saying 3-5%. It is certainly possible PE1...
by randomguy
Fri Sep 14, 2018 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: OK to break the chain of homeownership?
Replies: 12
Views: 933

Re: OK to break the chain of homeownership?

I didn't think there was a REIT that conclusively tracks home prices. If there are, do tell. You would need to define home prices. Tracking the US market as a whole doesn't help if the place you want to buy is going up at 3x the rate. The general REIT correlation with house prices is pretty weak. I...
by randomguy
Fri Sep 14, 2018 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: How real is cyber risk?
Replies: 140
Views: 6937

Re: How real is cyber risk?

Anyone have stats on how much cybercrime there is that involves people losing money from brokerage accounts or having thier bank account emptied? I am not aware of much.What I am aware of is a ton of companies getting hacked, losing data, and people getting hit with all sorts of identity theft issu...
by randomguy
Fri Sep 14, 2018 3:41 pm
Forum: Personal Consumer Issues
Topic: Benefits/longevity of more expensive ($300+) mens dress shoes?
Replies: 73
Views: 7953

Re: Benefits/longevity of more expensive ($300+) mens dress shoes?

I have acquired 8 pairs of Allen Edmonds over the last 15 years. All different styles and/or colors. Although no shoes last forever, having them resolved through Allen Edmonds is pretty economical - like 100 for full resole and reconditioning - after that like brand new. I have to wear professional...
by randomguy
Fri Sep 14, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Lower Return Decade Says Jack: Thoughts?
Replies: 81
Views: 6483

Re: Lower Return Decade Says Jack: Thoughts?

We have been at this level of cape10 3 times in the past, give or take. All 3 times the next 10 years were either negative or very low single digits. It took a long time to recover after 1929. 10 years after 2000 crash was probably negative. 10 years after 2006/2007 was probably about flat. 18 year...