Search found 2261 matches

by Admiral
Fri Sep 13, 2019 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage refi - pull cash out?
Replies: 25
Views: 1844

Re: Mortgage refi - pull cash out?

What are your other assets and how are they invested? I don't like to use my house as a piggy bank. I'd rather invest from cash flow than increase my leverage with an illiquid asset. The housing market is fickle. Can you not meet your financial goals WITHOUT this move? When will this loan be paid of...
by Admiral
Fri Sep 13, 2019 11:49 am
Forum: Personal Finance (Not Investing)
Topic: How many years for each $250k of net worth?
Replies: 36
Views: 5843

Re: How many years for each $250k of net worth?

Although we all talk endlessly about asset allocation, rate of return and a myriad of subjects related to wealth accumulation - don't forget the important part of the equation is the amount of savings that you contribute. How much can you save each year? Saving $10K a year is nice. $25K is better. ...
by Admiral
Fri Sep 13, 2019 6:21 am
Forum: Investing - Theory, News & General
Topic: Dividend stocks in a Extremely low interest rate environment
Replies: 16
Views: 2187

Re: Dividend stocks in a Extremely low interest rate environment

I hold about 12 dividend paying stocks, my annual return is about 4.5%, I view that as better than a CD. A dividend is not an interest rate you earn by holding the stock. When a company chooses to distribute profit to shareholders, the dividend yield is a measure of the recent past ratio of revenue...
by Admiral
Thu Sep 12, 2019 6:32 pm
Forum: Investing - Theory, News & General
Topic: Dividend stocks in a Extremely low interest rate environment
Replies: 16
Views: 2187

Re: Dividend stocks in a Extremely low interest rate environment

If you hold all those blue chips in TSM you will also get their dividends, plus capital appreciation, with the added benefit of diversification. Why chase dividend yield? :?:
by Admiral
Thu Sep 12, 2019 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: How many years for each $250k of net worth?
Replies: 36
Views: 5843

Re: How many years for each $250k of net worth?

Is there a way to rough estimate how many years it takes to reach each $250k of net worth. Surely it gets shorter for each new set of 250 because of compound interest (snowball effect). It took me 7 years of full time work to hit the first 250k. Can I estimate like 5 years for the next $250k, and t...
by Admiral
Thu Sep 12, 2019 10:13 am
Forum: Personal Finance (Not Investing)
Topic: ReFI Advice
Replies: 12
Views: 689

Re: ReFI Advice

I think the rate spread is borderline: you could do it, or keep current rate, which is still pretty good. If you are set on reducing the term, I think I might roll the dice and wait a month or two to see where rates are. If this is from your current lender, I would def get some other quotes. If noth...
by Admiral
Wed Sep 11, 2019 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: How can I acheive 2% using fixed income instrutments
Replies: 22
Views: 2039

Re: How can I acheive 2% using fixed income instrutments

Total Bond Admiral yield has, admittedly, been falling lately but it's still over 2%. I think the rate cuts have likely been priced in by now. What will happen if rates continue to fall is anyone's guess. It's possible the mix of holdings will shift to higher yield bonds from gov't debt, but we can'...
by Admiral
Wed Sep 11, 2019 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Refinance or pay off mortgage?
Replies: 19
Views: 1574

Re: Refinance or pay off mortgage?

If you're definitely moving in the next couple years, I'd do neither and make the minimum payment until selling. I am currently paying an extra $1200 in principal/month. I do feel I could stop doing this and pay the minimum, and put the difference into the stock market. Why in the world are you pre...
by Admiral
Wed Sep 11, 2019 6:34 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning - Pension
Replies: 24
Views: 2616

Re: Retirement Planning - Pension

As someone with a spouse who has a pension that is now vested and 10 years from claiming: Do nothing. Save and save some more, as much as you are able. Once she is vested, also do nothing different. You cannot get the years of compounding back. When you're in your 40s, or 50s, and assuming she's sti...
by Admiral
Tue Sep 10, 2019 6:33 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 112
Views: 9202

Re: Paying off mortgage early - am I thinking about this right?

You can consider your home whatever you feel since it is your home but, let me ask you some follow up question: 1) You have $80k and a $100k home with an $80k mortgage how do you invest that $80k to stay at a 60/40 portfolio? 2) If I instead used that 80k and payed off the mortgage, I now have a $1...
by Admiral
Mon Sep 09, 2019 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Which Mortgage would you need?
Replies: 11
Views: 804

Re: Which Mortgage would you need?

We would leave a deposit of about 50%, then pay the loan off when we sell our current house. That is quite a bump up in house! Do you have the downpayment in cash equivalents? Otherwise you need to consider the tax impact of liquidating investments. Here is my cautionary tale: Well before the finan...
by Admiral
Mon Sep 09, 2019 8:15 am
Forum: Personal Investments
Topic: How to beat 2% safely?
Replies: 49
Views: 5823

Re: How to beat 2% safely?

livesoft wrote:
Mon Sep 09, 2019 8:05 am
Note to self: Come back and visit this thread in a few years to see that a 60/40 portfolio did better than 2% over the next few years.

Also keep using your 2% cash-back card.
Hah. One can make 2% just on TSM dividends these days.
by Admiral
Mon Sep 09, 2019 6:37 am
Forum: Personal Investments
Topic: How to beat 2% safely?
Replies: 49
Views: 5823

Re: How to beat 2% safely?

2% of $400k $8k. 3% is $12k. Before taxes.

Is the extra $4k worth market risk to you, someone who is in pretty high/very high tax brackets (i.e. makes a lot of money)? If not, don't chase the returns. If yes, but half in the market and the rest in CDs.
by Admiral
Sun Sep 08, 2019 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Can a Roth be an emergency EF?
Replies: 32
Views: 2535

Re: Can a Roth be an emergency EF?

Post your expenses. Then we can be of more help.
by Admiral
Sun Sep 08, 2019 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: 3.875% fixed rate, 30-year mortgage: are you paying it off early?
Replies: 93
Views: 3693

Re: 3.875% fixed rate, 30-year mortgage: are you paying it off early?

I don't see how it can create a false sense of security. We tell people all the time that paying down a mortgage does not improve your liquidity, although paying it off does. But mortgage interest is no less real than bond yields. Borrowing money at 4% only to lend it back out at 2% is, generally s...
by Admiral
Sun Sep 08, 2019 11:51 am
Forum: Personal Finance (Not Investing)
Topic: 3.875% fixed rate, 30-year mortgage: are you paying it off early?
Replies: 93
Views: 3693

Re: 3.875% fixed rate, 30-year mortgage: are you paying it off early?

My 3 fund has averaged 8.8% over the last 10 yrs, my mortgage is 3.5%. Is it really that complicated. I agree. However, people like to compare a mortgage with the equivalent risk-adjusted return, which is bonds, not stocks or stocks and bonds in combination. I don't do that personally, but Grabiner...
by Admiral
Sun Sep 08, 2019 11:11 am
Forum: Personal Finance (Not Investing)
Topic: 3.875% fixed rate, 30-year mortgage: are you paying it off early?
Replies: 93
Views: 3693

Re: 3.875% fixed rate, 30-year mortgage: are you paying it off early?

For the bank, it's a positive bond. For you, it's a negative bond. But in reality, whether we call it a negative bond or a debt obligation doesn't really matter. I think it matters to the extent that we have many posters comparing a mortgage rate to bonds and their returns, and advocating paying do...
by Admiral
Sun Sep 08, 2019 10:38 am
Forum: Personal Finance (Not Investing)
Topic: 3.875% fixed rate, 30-year mortgage: are you paying it off early?
Replies: 93
Views: 3693

Re: 3.875% fixed rate, 30-year mortgage: are you paying it off early?

In many ways, it effectively is. If home equity is not a bond then how is a mortgage a negative bond? It’s true that it’s a note someone holds and for which you pay interest. For them, it’s a bond. For you, it’s a debt obligation. Once it is paid off you don’t get the money back. You get home equit...
by Admiral
Sun Sep 08, 2019 10:36 am
Forum: Personal Finance (Not Investing)
Topic: 3.875% fixed rate, 30-year mortgage: are you paying it off early?
Replies: 93
Views: 3693

Re: 3.875% fixed rate, 30-year mortgage: are you paying it off early?

In many ways, it effectively is. If home equity is not a bond then how is a mortgage a negative bond? It’s true that it’s a note someone holds and for which you pay interest. For them, it’s a bond. For you, it’s a debt obligation. Once it is paid off you don’t get the money back. You get home equit...
by Admiral
Sun Sep 08, 2019 10:28 am
Forum: Personal Finance (Not Investing)
Topic: 3.875% fixed rate, 30-year mortgage: are you paying it off early?
Replies: 93
Views: 3693

Re: 3.875% fixed rate, 30-year mortgage: are you paying it off early?

A mortgage is not a “negative bond.” In many ways, it effectively is. If home equity is not a bond then how is a mortgage a negative bond? It’s true that it’s a note someone holds and for which you pay interest. For them, it’s a bond. For you, it’s a debt obligation. Once it is paid off you don’t g...
by Admiral
Sun Sep 08, 2019 10:16 am
Forum: Personal Finance (Not Investing)
Topic: 3.875% fixed rate, 30-year mortgage: are you paying it off early?
Replies: 93
Views: 3693

Re: 3.875% fixed rate, 30-year mortgage: are you paying it off early?

A mortgage is not a “negative bond.” In many ways, it effectively is. If home equity is not a bond then how is a mortgage a negative bond? It’s true that it’s a note someone holds and for which you pay interest. For them, it’s a bond. For you, it’s a debt obligation. Once it is paid off you don’t g...
by Admiral
Sun Sep 08, 2019 9:58 am
Forum: Personal Finance (Not Investing)
Topic: 3.875% fixed rate, 30-year mortgage: are you paying it off early?
Replies: 93
Views: 3693

Re: 3.875% fixed rate, 30-year mortgage: are you paying it off early?

Good point. For diversification's sake we'll continue buying bonds, but since we're young and mortgaged we've chosen a very low bond allocation--we are definitely employing your advice here to an extent. Thanks, aristotelian. I don't see the point of diversification when it is guaranteed to be subo...
by Admiral
Sun Sep 08, 2019 7:49 am
Forum: Personal Finance (Not Investing)
Topic: 3.875% fixed rate, 30-year mortgage: are you paying it off early?
Replies: 93
Views: 3693

Re: 3.875% fixed rate, 30-year mortgage: are you paying it off early?

It's a mistake in pure math terms to give up a tax deduction at your marginal federal rate to save your mortgage rate. So, that's the first thing. Second, if you can pre-pay a 30 year mortgage such that "We are refinancing and have enough extra each month to pay it off in 16 years" that means you sh...
by Admiral
Sat Sep 07, 2019 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: Paying "early" on mortgage may be unwise
Replies: 188
Views: 15035

Re: Paying "early" on mortgage may be unwise

I remember this thread and now think I have a problem with my mortgage. Until reading this thread (or parts of it), I assumed my extra payment(s) would go toward principal. If it doesn't where does it go? For example, I send them a check for 1 years worth of payments. If they don't apply it to prin...
by Admiral
Sat Sep 07, 2019 7:31 am
Forum: Personal Finance (Not Investing)
Topic: Can it get better than 15 year fixed mortgage at 3%?
Replies: 44
Views: 3319

Re: Can it get better than 15 year fixed mortgage at 3%?

We refinanced back in fall of 2016 to a 15 year mortgage at 3% APR. Now I'm seeing articles about home loan rates dropping to new lows. Can it get much better than what we're currently locked into? In October, 2016 I refinanced to a 15 year fixed at 2.25% (from 4%, which I thought would be the lowe...
by Admiral
Fri Sep 06, 2019 11:19 am
Forum: Personal Investments
Topic: Looking for stream of dividends
Replies: 61
Views: 4854

Re: Looking for stream of dividends

I won't try to convince you of the preferred total return method of investing since it's already been mentioned. Since your goal is to collect dividends and leave money for your heirs: 50% VYM (Vanguard High Dividend Yield ETF) 50% VYMI(Vanguard High Dividend Yield International ETF) Diversified ac...
by Admiral
Fri Sep 06, 2019 9:57 am
Forum: Personal Investments
Topic: Looking for stream of dividends
Replies: 61
Views: 4854

Re: Looking for stream of dividends

I won't try to convince you of the preferred total return method of investing since it's already been mentioned. Since your goal is to collect dividends and leave money for your heirs: 50% VYM (Vanguard High Dividend Yield ETF) 50% VYMI(Vanguard High Dividend Yield International ETF) Diversified ac...
by Admiral
Fri Sep 06, 2019 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Need to get a car in a hurry.
Replies: 48
Views: 4771

Re: Need to get a car in a hurry.

How many miles on the Camry? I ask because a 2003 model w/ high miles BB value may be very low...to the extent that fixing it may not be worth it. You may not get it back in the sale. Don't rush a car purchase. There are zillions of NEW 2018 models still on dealer lots (not to mention 2019s), as the...
by Admiral
Fri Sep 06, 2019 9:26 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: 3% is the new 4%
Replies: 662
Views: 47866

Re: Larry Swedroe: 3% is the new 4%

Can’t read all 521 posts, but I read a slug of them, none of which mentioned Variable Percentage Withdrawal (“VPW”), as opposed to setting a rigid 4%, 3%, 3.33%, or other withdrawal rate at the outset of drawdown, then letting it ride come what may. https://www.bogleheads.org/wiki/Variable_percenta...
by Admiral
Fri Sep 06, 2019 7:22 am
Forum: Personal Investments
Topic: Looking for stream of dividends
Replies: 61
Views: 4854

Re: Looking for stream of dividends

I want to first thank everyone who took the time to help my wife and I on the Wellesley/dividends question. I’ve read and reread the responses 3 times and if I clarify some thoughts it may help. I guess the whole Wellesley idea was to simplify the process, keep the ER somewhat low, have a managemen...
by Admiral
Fri Sep 06, 2019 7:04 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 112
Views: 9202

Re: Paying off mortgage early - am I thinking about this right?

No, you're not. A bond (or bond fund) is not the same as a house, regardless of whether the mortgage rate and the yield of the bond/fund are equivalent. This is a misconception. One is a cash equivalent, one is not. It's possible to lose a small amount of principal if one is forced to sell a bond/f...
by Admiral
Thu Sep 05, 2019 12:45 pm
Forum: Personal Investments
Topic: Looking for stream of dividends
Replies: 61
Views: 4854

Re: Looking for stream of dividends

Vanguard has a nice paper on total return from your portfolio (dividends and selling shares). One of the points they make is that shifting a lot of money into dividend producing investments can have some downsides. First, your portfolio may end up being less diversified and less productive in the l...
by Admiral
Thu Sep 05, 2019 12:35 pm
Forum: Personal Investments
Topic: Looking for stream of dividends
Replies: 61
Views: 4854

Re: Looking for stream of dividends

Since the OP asked about dividends, I am assuming that is what they wish the discussion to center around. Since you are dealing with taxable money I think your comment of dividends is a good one given the preferential treatment dividends receive in the tax code. Which is to say taking 10K in intere...
by Admiral
Thu Sep 05, 2019 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Kitces: The Problem with FIREing at 4% and the Need for Flexible Spending Rules
Replies: 199
Views: 13532

Re: Kitces: The Problem with FIREing at 4% and the Need for Flexible Spending Rules

I would also add (and this is not news) that human behavior and psychology would make it highly unlikely that a retiree with an 80/20 portfolio who went through a severe stock downturn (2008 anyone?) would continue to pull the same % from the portfolio each year--regardless of what the predictive ch...
by Admiral
Thu Sep 05, 2019 10:07 am
Forum: Personal Finance (Not Investing)
Topic: What insurance plans cover the most orthodontics?
Replies: 5
Views: 317

Re: What insurance plans cover the most orthodontics?

We've used United Concordia. $2k lifetime on braces (or braces-related costs like full mouth photos, appliances, etc), paid out quarterly. So, we got $4k out of them for 2 kids. The rest we get back from our flex account so at least we save the taxes. Most orthos offer monthly payments with no inter...
by Admiral
Thu Sep 05, 2019 7:14 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 112
Views: 9202

Re: Paying off mortgage early - am I thinking about this right?

What if I don't have 20 years left on my mortgage and my $1000 can be converted to Roth at 0% and grow for 50 years? Sure, in very specific circumstances with some specific assumptions the math may work. We could just as easily make the assumption that when rates rise my $1000 can be rolled tax fre...
by Admiral
Wed Sep 04, 2019 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 112
Views: 9202

Re: Paying off mortgage early - am I thinking about this right?

There are some plausible and efficient options. The simplest is for the investor to simply direct future contributions that would have gone to buy bonds to pay down the mortgage . If the investor has a taxable account and would not encounter significant capital gains from selling, those funds could...
by Admiral
Wed Sep 04, 2019 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 112
Views: 9202

Re: Paying off mortgage early - am I thinking about this right?

I feel like all these "pay off mortgage vs. invest" threads are overly focused on the balance sheet (e.g. maximizing net worth) while generally ignoring the cash flow statement, which is how we actually experience our lives. Paying off your mortgage eliminates a substantial cash flow risk. I think ...
by Admiral
Wed Sep 04, 2019 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 112
Views: 9202

Re: Paying off mortgage early - am I thinking about this right?

Interesting and well-timed discussion. Not to humble brag, but I was just realizing that, hypothetically, if we were to liquidate all taxable accounts and throw in all savings, we could probably just barely pay off the mortgage balance. As a result, all sorts of thought exercises started coming to ...
by Admiral
Wed Sep 04, 2019 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 112
Views: 9202

Re: Paying off mortgage early - am I thinking about this right?

What bonds are yielding today, and the mortgage rate, are exactly what are relevant. If you have 15 years left on your mortgage, you could buy a portfolio of bonds maturing in 1-15 years, paying enough each year to make that year's mortgage payments. If you do this, and use the bond payments to mak...
by Admiral
Wed Sep 04, 2019 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 112
Views: 9202

Re: Paying off mortgage early - am I thinking about this right?

Bonds are earning about 2% right now. If you are choosing between paying down mortgage and buying bonds, you should certainly be paying down the mortgage at 3.875%. So one should make their mortgage-paydown decision based on the daily fluctuations in the bond market? That's what you're suggesting? ...
by Admiral
Wed Sep 04, 2019 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 112
Views: 9202

Re: Paying off mortgage early - am I thinking about this right?

Bonds are earning about 2% right now. If you are choosing between paying down mortgage and buying bonds, you should certainly be paying down the mortgage at 3.875%. So one should make their mortgage-paydown decision based on the daily fluctuations in the bond market? That's what you're suggesting? ...
by Admiral
Tue Sep 03, 2019 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 112
Views: 9202

Re: Paying off mortgage early - am I thinking about this right?

Bonds are earning about 2% right now. If you are choosing between paying down mortgage and buying bonds, you should certainly be paying down the mortgage at 3.875%. So one should make their mortgage-paydown decision based on the daily fluctuations in the bond market? That's what you're suggesting? ...
by Admiral
Tue Sep 03, 2019 6:11 am
Forum: Personal Investments
Topic: Vanguard Website: Anyone else not seeing 8/30 contribs?
Replies: 5
Views: 534

Re: Vanguard Website: Anyone else not seeing 8/30 contribs?

student wrote:
Tue Sep 03, 2019 6:08 am
You should check with HR/Benefits.
Well as noted I see that the contribs were made as per my employer (not to mention that the money in not in my paycheck). Just not clear why they are not reflected at Vanguard. Perhaps something to do with the holiday.
by Admiral
Tue Sep 03, 2019 5:56 am
Forum: Personal Investments
Topic: Thoughts on VNQ? [Vanguard Real Estate ETF]
Replies: 42
Views: 5275

Re: Thoughts on VNQ? [Vanguard Real Estate ETF]

Jgardner wrote:
Mon Sep 02, 2019 11:11 pm
What is the difference between VGSIX and VGSLX??
The expense ratio. The former is Investor Class shares, the latter Admiral Class shares.
by Admiral
Tue Sep 03, 2019 5:54 am
Forum: Personal Investments
Topic: Vanguard Website: Anyone else not seeing 8/30 contribs?
Replies: 5
Views: 534

Vanguard Website: Anyone else not seeing 8/30 contribs?

I see they were made in my employer's Web site but Vanguard shows nothing.

Anyone else having this issue?
by Admiral
Fri Aug 30, 2019 7:57 am
Forum: Personal Investments
Topic: $1,000 a month or $180,000 Pension Question
Replies: 55
Views: 5618

Re: $1,000 a month or $180,000 Pension Question

On paper: pension not DROP for that amount of money. No brainer.

That said: is your job dangerous? Physically demanding? Do you enjoy it? Hate it?
by Admiral
Fri Aug 30, 2019 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Pay off mortgage with sale of taxable account assets?
Replies: 87
Views: 4459

Re: Pay off mortgage with sale of taxable account assets?

Also, when you pay off a mortgage, you're not getting a guaranteed return like an investment. The mortgage rate is a fixed finance charge. It's a fixed dollar amount that does not compound. This is incorrect. The return you get on your "investment" is equal to your mortgage rate. The "return" you a...
by Admiral
Thu Aug 29, 2019 1:09 pm
Forum: Personal Investments
Topic: Question about Roth 401K
Replies: 26
Views: 1170

Re: Question about Roth 401K

Will you also receive social security? With that huge pension plus SS, I would say yes absolutely, you should have some Roth monies. You don't have to do all Roth, it could be 50/50.

You'd get better advice if you posted your portfolio: size and how its structured (taxable vs deferred).