Search found 4980 matches

by randomguy
Fri Dec 08, 2017 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage as percentage of take-home pay
Replies: 79
Views: 5601

Re: Mortgage as percentage of take-home pay

The OP's question was looking for a meaningful number. He's trying to make an intelligent decision. You're house poor peers didn't. Since the OP is trying to ensure he doesn't do the same thing, I don't think advising him he needs to wait until he has enough assets to pay it off is appropriate for ...
by randomguy
Fri Dec 08, 2017 5:55 pm
Forum: Personal Consumer Issues
Topic: Extended warranty on 2018 Outback
Replies: 47
Views: 1519

Re: Extended warranty on 2018 Outback

Does it really matter. And yes I would buy insurance for car repairs. And no I tend not to buy any of these products as I would rather self insure against <5k losses. YMMV And, you really feel you were clear, random? Because you said both of these things in this one. Maybe you confused yourself? So...
by randomguy
Fri Dec 08, 2017 5:05 pm
Forum: Personal Consumer Issues
Topic: Extended warranty on 2018 Outback
Replies: 47
Views: 1519

Re: Extended warranty on 2018 Outback

So, you do buy insurance for car repairs, or you tend not to buy any of these products? You have said both now. You're just in this one to argue then? If DW or I were to die, it would be difficult for the other to go on living the same lifestyle we have now. So, we insure against that because it wo...
by randomguy
Fri Dec 08, 2017 4:43 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin now the largest quantifiable bubble in history?
Replies: 88
Views: 6498

Re: Bitcoin now the largest quantifiable bubble in history?

Somewhere back I read that evidence seems to support the semi-strong form as the most reflective of current stock markets. It's definitely not strong form. at any rate, is bitcoin now the largest quantifiable bubble in history? I don't think that's even close to remotely true, either in real or nom...
by randomguy
Fri Dec 08, 2017 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: on keeping a tranche of active mgmt in Roth
Replies: 16
Views: 603

Re: on keeping a tranche of active mgmt in Roth

I have this urge to use my Roth space to hold a few actively-managed core equity funds, which would make my domestic equity allocation 15-20% active. What are your expectations if you do this? An active fund manager would be in the investing hall of fame if they could beat a comparable index fund b...
by randomguy
Fri Dec 08, 2017 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in my early 40s? Crazy or actually doable?
Replies: 57
Views: 6665

Re: Retire in my early 40s? Crazy or actually doable?

Or find some job that you enjoy more but doesn't pay well. I suggest reflecting on this advice rather than planning to just withdraw from the workforce altogether. As others have responded, your potential income from investments appears sufficient to sustain your current level of expenses, but cons...
by randomguy
Fri Dec 08, 2017 4:09 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle Is Worried About U.S. Pensions
Replies: 80
Views: 6976

Re: Jack Bogle Is Worried About U.S. Pensions

Why? The 4% rule would work fine with those conditions and our current inflation situation. No, it does not. It is simple algebra. If the average return from bonds is less than 4%, one is forced to take on more stocks. If the average return of bonds is a lot less than 4% and that of stocks is not t...
by randomguy
Fri Dec 08, 2017 3:53 pm
Forum: Personal Consumer Issues
Topic: Extended warranty on 2018 Outback
Replies: 47
Views: 1519

Re: Extended warranty on 2018 Outback

Nobody needs an extended warranty Google "Doug Demuro Bumper to Bumper Carmax" to have lots and lots of entertainment His Aston Martin story was also funny.:). It should be noted that the warranty was just mispriced. He tried the same thing a couple of years latter and the cost of the warranty was ...
by randomguy
Fri Dec 08, 2017 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in my early 40s? Crazy or actually doable?
Replies: 57
Views: 6665

Re: Retire in my early 40s? Crazy or actually doable?

randomguy: no, I would not hang her out to dry. Fortunately she spends about the same as me, so I think I have enough cushion to cover both of us if she gets sick and couldn't work anymore. She likes her job a lot more than me. She is totally okay with me retiring because she would get to see me mo...
by randomguy
Fri Dec 08, 2017 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage as percentage of take-home pay
Replies: 79
Views: 5601

Re: Mortgage as percentage of take-home pay

I'm currently having this debate with a friend. I've always subscribed to the rule that your mortgage should be no more than 25% of your take-home pay. Are you comfortable going up to 25 or 30% of take-home pay for a mortgage? What do the Bogleheads say? Mine is currently between 18 and 19% on a 20...
by randomguy
Fri Dec 08, 2017 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in my early 40s? Crazy or actually doable?
Replies: 57
Views: 6665

Re: Retire in my early 40s? Crazy or actually doable?

Only I would worry about is the wife standing alone part. If she gets sick and can't work would you really hang her out to dry? And what does she feel about you retiring while she keeps working? Is that 1.25 million in munibonds the current market value (i.e. I assume you get a nice premium for a 4....
by randomguy
Fri Dec 08, 2017 2:25 pm
Forum: Personal Consumer Issues
Topic: Extended warranty on 2018 Outback
Replies: 47
Views: 1519

Re: Extended warranty on 2018 Outback

If an item needs an extended warranty, I buy the alternate which does not need an extended warranty. If I think Subaru breaks lot more often than Toyota, I will NOT buy Subaru at all. If I wanted the Subaru, I will just add the cost of the extended warranty to my purchase up front. For example, if ...
by randomguy
Fri Dec 08, 2017 2:10 pm
Forum: Personal Consumer Issues
Topic: Extended warranty on 2018 Outback
Replies: 47
Views: 1519

Re: Extended warranty on 2018 Outback

I don't get these new warranties with deductibles. To me, a warranty mean they fix it no charge. These deductibles make it sound a lot like insurance. Would you buy insurance for car repairs? Does it really matter. And yes I would buy insurance for car repairs. It is really all about It all depends...
by randomguy
Fri Dec 08, 2017 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: What do Bogleheads say when they don't want to spend money?
Replies: 103
Views: 5290

Re: What do Bogleheads say when they don't want to spend money?

This is a strange thread. Someone today was telling me about a show they watch on Netflix. They asked me if I'd seen it. Nah, don't have Netflix, I said. Shrug. No further explanation needed. Netflix is easy for me.... I don't have a TV... I'd like to nominate this reply for the best answer of this...
by randomguy
Fri Dec 08, 2017 11:30 am
Forum: Personal Consumer Issues
Topic: Extended warranty on 2018 Outback
Replies: 47
Views: 1519

Re: Extended warranty on 2018 Outback

I don't get these new warranties with deductibles. To me, a warranty mean they fix it no charge. These deductibles make it sound a lot like insurance. Would you buy insurance for car repairs? Does it really matter. And yes I would buy insurance for car repairs. It is really all about It all depends...
by randomguy
Fri Dec 08, 2017 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Should I file taxes w/o her?
Replies: 44
Views: 2282

Re: Should I file taxes w/o her?

I knew I wasn't going to get any sympathy but I wanted to see if there was a better way to avoid the high taxes. While our funds aren't in one pot, She has a golden heart and is extremely generous so I'll quit while I'm ahead, thank you! :happy Other than getting divorced there is no good way for h...
by randomguy
Thu Dec 07, 2017 10:37 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle Is Worried About U.S. Pensions
Replies: 80
Views: 6976

Re: Jack Bogle Is Worried About U.S. Pensions

I understand why a lot of posters here disagree with what Jack has been saying lately, but some people seem even a bit sour about it. I'm not changing my plan based on his predictions, and not very confident that's what will actually happen, but consider this: What happens if you listen to Jack, an...
by randomguy
Thu Dec 07, 2017 10:33 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle Is Worried About U.S. Pensions
Replies: 80
Views: 6976

Re: Jack Bogle Is Worried About U.S. Pensions

Why? The 4% rule would work fine with those conditions and our current inflation situation. No, it does not. It is simple algebra. If the average return from bonds is less than 4%, one is forced to take on more stocks. If the average return of bonds is a lot less than 4% and that of stocks is not t...
by randomguy
Thu Dec 07, 2017 10:11 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate from SPIA???
Replies: 41
Views: 2403

Re: Safe Withdrawal Rate from SPIA???

The idea is that you purchase an SPIA that supplies you with say 1000 dollars per year. At year one, you spend an initial amount of say 800 dollars. You take the excess 200 dollars and you invest it in the S&P. This is your SPIA excess investment fund. Why not just start with the original principal...
by randomguy
Thu Dec 07, 2017 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Should I file taxes w/o her?
Replies: 44
Views: 2282

Re: Should I file taxes w/o her?

I knew I wasn't going to get any sympathy but I wanted to see if there was a better way to avoid the high taxes. While our funds aren't in one pot, She has a golden heart and is extremely generous so I'll quit while I'm ahead, thank you! :happy Other than getting divorced there is no good way for h...
by randomguy
Thu Dec 07, 2017 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Should I file taxes w/o her?
Replies: 44
Views: 2282

Re: Should I file taxes w/o her?

Some deductions are not available for married filing separately. The one I was concerned about when I checked was student loan interest, but it seems unlikely that would be the only one. The real killer is the brackets being different.He might end up paying less tax, but she will pay a lot more and...
by randomguy
Thu Dec 07, 2017 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Quit jobs to gain lower EFC [Expected Family Contribution]
Replies: 86
Views: 5071

Re: Quit jobs to gain lower EFC

Yep, mathematically just about dollars for quarters to get 60 man hours per week off! Yes. So why are you working today? At a high level you are saying you are willing to work for 100k/year but not 50k/year or whatever the number work out to. That is a fine choice. But where do you draw the line? 8...
by randomguy
Thu Dec 07, 2017 6:54 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle Is Worried About U.S. Pensions
Replies: 80
Views: 6976

Re: Jack Bogle Is Worried About U.S. Pensions

It will be interesting to see people applying the 4% rule when bonds yield is below 1% and stocks produce a 4% return. Besides, personal retirement accounts in the US are notoriously underfunded, and not by a little, and only wealthy people can live on a lot less money. Why? The 4% rule would work ...
by randomguy
Thu Dec 07, 2017 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: CPA: The best profession if you want to make the most money + keep the most money?
Replies: 58
Views: 5660

Re: CPA: The best profession if you want to make the most money + keep the most money?

If you want to become extremely rich neither being a doctor or a CPA is a great idea. Starting a business is just about the only way to get extremely rich. Just rich on the other hand is open to a lot of professional careers. CPAs are not overly high paid. If I had to guess you friends are doing wel...
by randomguy
Thu Dec 07, 2017 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: What do Bogleheads say when they don't want to spend money?
Replies: 103
Views: 5290

Re: What do Bogleheads say when they don't want to spend money?

This is probably a tangential issue, but what do you say when someone really wants you to spend your money, and you don't want to? IOW, when you're talking to a salesperson? Years ago a nice woman came to my door and tried to sell me new windows for my house. The house definitely could've used new ...
by randomguy
Thu Dec 07, 2017 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: What do Bogleheads say when they don't want to spend money?
Replies: 103
Views: 5290

Re: What do Bogleheads say when they don't want to spend money?

Reading some of these replies: :shock: Do you people really speak to others like that? In what universe is "I do not have the budget for that." A response anyone would give or expect when asked about a $10 a month streaming service. For people on a limited income it is something you hear. And yes 1...
by randomguy
Thu Dec 07, 2017 6:11 pm
Forum: Personal Consumer Issues
Topic: selling an older car on eBay-no bites!
Replies: 65
Views: 4545

Re: selling an older car on eBay-no bites!

Another vote for Craigslist. Sold an '07 camry a couple weeks ago within a few hours of the CL ad being posted. The market for 10 year old cars (i.e. people looking for beaters to commute with) and 40 year old caprice wagons is a bit different. I don't suppose you have the orginial window sticker? ...
by randomguy
Thu Dec 07, 2017 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2176

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

I'm confused by this thread. You would set the AA the same in each account if you didn't want I-ORP to spend money from the account that had the lowest returns first, and you just wanted to see what the recommendation would be if the AA is the same. agreed But most people don't have the same AA in ...
by randomguy
Wed Dec 06, 2017 1:17 pm
Forum: Investing - Theory, News & General
Topic: Amount You Need To Save Annually Over Lifespan
Replies: 80
Views: 8704

Re: Amount You Need To Save Annually Over Lifespan

NPT, Let me summarize a bit. If you live like your peers, you will save nothing. Average American save close to nothing. KlangFool [/quote] Only if your peers are average americans. My peers were all college educated people with 100k+/year jobs who were saving at least 6% (i.e. everyone did the mat...
by randomguy
Wed Dec 06, 2017 1:13 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate from SPIA???
Replies: 41
Views: 2403

Re: Safe Withdrawal Rate from SPIA???

Are there any comparisons from the past (future may/will differ, etc.) about how an inflation adjusted SPIA really did/did not keep up with the actual inflation as it occurred going forward? It would be interesting to know if it *ever* came even close, etc. RM Obviously it depends on what you buy. ...
by randomguy
Wed Dec 06, 2017 12:58 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate from SPIA???
Replies: 41
Views: 2403

Re: Safe Withdrawal Rate from SPIA???

Thank you for your comments! Yes, agreed .... the usual way to deal with inflation risk is to ladder SPIAs ... this has the advantage of "doing it when you need it". Yes, I would guess that spending goes down with age (except perhaps at the very end with end-of-life-care and terminal care medical e...
by randomguy
Wed Dec 06, 2017 1:30 am
Forum: Investing - Theory, News & General
Topic: Amount You Need To Save Annually Over Lifespan
Replies: 80
Views: 8704

Re: Amount You Need To Save Annually Over Lifespan

That's simply astounding if it is just job-income! Assuming you started with around $30k back in 1997, your current income is $340+k. Of course there are many who achieve that kind of growth through investments in RE, or stock options in nascent industries, etc. But just through salary increments i...
by randomguy
Wed Dec 06, 2017 1:24 am
Forum: Investing - Theory, News & General
Topic: Amount You Need To Save Annually Over Lifespan
Replies: 80
Views: 8704

Re: Amount You Need To Save Annually Over Lifespan

I know what you meant and wasnt trying to pick a fight with you :sharebeer I was basically saying I dont believe 15% is anywhere close to being enough of gross pay. Meaning 15% of what gross income number. It just wont get you there unless you come out with a starting wage of at least 125k. It is p...
by randomguy
Wed Dec 06, 2017 1:12 am
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2176

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

munemaker wrote: Working with BigFoot's spreadsheet and iOrp, spending the taxable first while making heavy Roth conversions gave me the best results, and I experimented with it quite a bit. I've commented on both the RMP and I-ORP calculators before. I have run a number of scenarios in both progra...
by randomguy
Tue Dec 05, 2017 8:03 pm
Forum: Personal Consumer Issues
Topic: selling an older car on eBay-no bites!
Replies: 65
Views: 4545

Re: selling an older car on eBay-no bites!

And, no one is buying?! :D I'm hoping the OP would say Camaro/Trans Am/FIrebird. Outside of those, there wasn't much happening in 1977. That was the Mustang II era even... a rough stretch for cool cars then. The guy is on bogleheads. it is clearly going to be a first generation Accord/Civic. Or may...
by randomguy
Tue Dec 05, 2017 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2176

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

If you have any of your retirement savings invested in an ordinary, taxable brokerage account, you should use this money first in retirement. By doing this, you allow the money you have saved in your tax-advantaged accounts to continue to grow on a tax-deferred or tax-free basis as you spend the mo...
by randomguy
Tue Dec 05, 2017 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2176

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

To me , it seems good to spend down tax-deferred to reduce the future RMD. Plus Roth conversion if the total withdraw plus conversion is below certain tax bracket. Leave aft-tax asset alone for emergency or some other purpose. The advantage of tax deferred is the money you would have spent on taxes...
by randomguy
Mon Dec 04, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE [financial independence/retire early]
Replies: 132
Views: 11648

Re: FIRE [financial independence/retire early]

I feel like I'm going in circles here. The 4% rule is great rock solid wonderful all hail 4%. There, did that satisfy your "near religious confidence"? I said it has worked virtually in every senerio in American history it is even more solid if You are willing to adjust your spending or go back to ...
by randomguy
Mon Dec 04, 2017 2:43 pm
Forum: Personal Consumer Issues
Topic: Growing Number of Electric Vehicles
Replies: 112
Views: 8229

Re: Growing Number of Electric Vehicles

When a Save Power Days event is called, your smart thermostat service provider may automatically adjust the thermostat temperature in your home. In other words: We reserve the right to turn off the AC in your home on hot days, but trust us, this is a *benefit* for you. Going back to my original pos...
by randomguy
Mon Dec 04, 2017 2:39 pm
Forum: Personal Consumer Issues
Topic: Growing Number of Electric Vehicles
Replies: 112
Views: 8229

Re: Growing Number of Electric Vehicles

Eventually, there will be battery exchanges like propane tank exchanges have evolved into. I wouldn't worry about this. Unlikely. People have been pushing this idea for 10 years (google better place) and it has made no progress. And of course this does nothing about battery charging stressing the g...
by randomguy
Mon Dec 04, 2017 2:30 pm
Forum: Personal Consumer Issues
Topic: How to convince DW that high miles used car is OK
Replies: 106
Views: 6551

Re: How to convince DW that high miles used car is OK

The frequency of stranding doesn't rise with age if you are proactive with maintenance. Any stats to back that up? I must admit I have never been really that worried about getting stranded. It just isn't an event that happens very often (and I am not I am not in deserted places). The times it has h...
by randomguy
Mon Dec 04, 2017 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Who keeps more money out of 100k? Self-employed vs Employed?
Replies: 39
Views: 2733

Re: Who keeps more money out of 100k? Self-employed vs Employed?

As has been pointed out by other replies you premise is based on a false equivalency. No doctor or any other professional would ever agree to be an Independent Contractor at an equivalent rate of pay as a W-2 employee. For example, ER physicians who are ICs, typically receive a 25% - 50% (or more) ...
by randomguy
Mon Dec 04, 2017 12:06 pm
Forum: Personal Consumer Issues
Topic: RV rentals
Replies: 21
Views: 1841

Re: RV rentals

Any recommended places to rent RVs for a short 2-day trip ? Need an RV that sleeps at least 8-9 people. Am in FL. Google "RV rentals". First hit https://gorving.com/where-to-find/rentals . then come back and ask about peoples experience with your favorite results. There a couple of boards though th...
by randomguy
Mon Dec 04, 2017 11:50 am
Forum: Personal Consumer Issues
Topic: How to convince DW that high miles used car is OK
Replies: 106
Views: 6551

Re: How to convince DW that high miles used car is OK

15 years ago I needed a large car but I had other things to spend my money on. I bought a Lincoln town car with 90k miles from the heir of the person who bought it new. It was so cheap that I had enough cash in my house and counted $100 bills out to buy it. Those cars are built like a tank and can ...
by randomguy
Mon Dec 04, 2017 11:46 am
Forum: Investing - Theory, News & General
Topic: Ok reasons for a 37 year old to have a 60/40 mix?
Replies: 61
Views: 8481

Re: Ok reasons for a 37 year old to have a 60/40 mix?

Vanguard did a study titled Recessions and Balanced Portfolio Returns https://personal.vanguard.com/pdf/icrrbp.pdf and found that a 50/50 "portfolio's returns ... are not drastically different in recessionary periods than in expansionary periods, in spite of its exposure to stocks." Your portfolio ...
by randomguy
Mon Dec 04, 2017 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Who keeps more money out of 100k? Self-employed vs Employed?
Replies: 39
Views: 2733

Re: Who keeps more money out of 100k? Self-employed vs Employed?

So it seems there is no tax/financial advantage to being a sole proprietor other than freedom/flexibility? Am I correct on this point? Otherwise it is almost that the employee gets to keep more of their earned money (again, accounting for taxes, healthcare, benefits, etc. and assuming little to no ...
by randomguy
Mon Dec 04, 2017 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Who keeps more money out of 100k? Self-employed vs Employed?
Replies: 39
Views: 2733

Re: Who keeps more money out of 100k? Self-employed vs Employed?

If a salaried employee makes $100k plus benefits, the employee is not being paid $100k, but $100k, plus whatever the value of the benefits is. JT A great and accurate answer... Yep but the self employed person can also play games. Maybe you give yourself a 25% employer match so you are 80k salary (...
by randomguy
Sat Dec 02, 2017 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: The College Bubble - investment opportunities after the collapse?
Replies: 114
Views: 7660

Re: The College Bubble - investment opportunities after the collapse?

I dunno. Isn't perpetual wealth self-correcting over generations? Look at the Vanderbilts. Looking at the 2016 Forbes' richest families... 1. Walton family. Founder died a quarter century ago ago but I guess this still counts as "new" wealth? 2. Koch family. Conglomerate was founded by Fred Sr. Koc...
by randomguy
Sat Dec 02, 2017 10:20 pm
Forum: Personal Consumer Issues
Topic: Growing Number of Electric Vehicles
Replies: 112
Views: 8229

Re: Growing Number of Electric Vehicles

Not everyone - you couldn't pay me to take one. Or a Prius. And any $100k+ vehicle would likely boost one's cachet, so I don't think that's saying much. The real question you should be asking about having all EV's is the infrastructure to provide enough charging stations for future EV's (if they al...
by randomguy
Sat Dec 02, 2017 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Best Financial Moves You've Made
Replies: 158
Views: 21659

Re: Best Financial Moves You've Made

one move was refinancing to 15 year mortgage. Interest payment savings were huge and having a paid for house gives us financial flexibility. Going with a 30 year mortgage instead of paying cash for the house. brought in retirement by over a decade and not having money tied up n the house gives me t...