Search found 1151 matches

by Admiral
Tue Jul 17, 2018 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Wills
Replies: 34
Views: 1435

Re: Wills

The biggest hurdle for us (and the reason we waited so long), was deciding who we wanted to become guardians for our children. This has always been our problem and the reason, to this day that we don't have a will. Our youngest turns 18 in 2 months, so I'm actually completely happy with how our sta...
by Admiral
Tue Jul 17, 2018 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Wills
Replies: 34
Views: 1435

Re: Wills

28fe6 wrote:
Tue Jul 17, 2018 11:34 am
I don't have a lawyer. How do you find a good lawyer?
Go to a local legal aid society for a recommendation.
by Admiral
Mon Jul 16, 2018 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Questions for my Parents
Replies: 19
Views: 1254

Re: Social Security Questions for my Parents

Downsize to zero mortgage. Work til 70. +1. They cannot keep that house and those mortgage payments and retire. Virtually their entire net worth is the equity in the house. They should sell it. Now if the grandparent (or maybe you mean their parent?) is really going to leave them $1.7m and they kno...
by Admiral
Sun Jul 15, 2018 6:56 am
Forum: Investing - Help with Personal Investments
Topic: Should I simplify my portfolio and switch from 3 fund to 2 fund portfolio?
Replies: 45
Views: 2014

Re: Should I simplify my portfolio and switch from 3 fund to 2 fund portfolio?

I'm not sure two funds is any more "simple" than three in the sense that it's all electronic and you need do nothing except set up your portfolio and forget it. The mechanics are the same. What you're really saying is "should I no longer hold intl stocks?" This is not an issue of simplicity but rath...
by Admiral
Thu Jul 12, 2018 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Re-casting mortgage
Replies: 11
Views: 1265

Re: Re-casting mortgage

If you have 250k laying around, that corresponds to almost 20% of a $1.3m mortgage. Did you look into a refinance instead of a recast? What rates are available?
by Admiral
Thu Jul 12, 2018 10:00 am
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 108
Views: 8487

Re: "Bonds are for Safety" ?

... It's only a "real loss" if you sell. If you buy and hold, and ride out the rough patches, and continue to invest, you are likely to come out ahead. I'm not going to lose sleep over a year or two or even three of paper losses on my TBM holdings. That's a pervasive notion which undermines financi...
by Admiral
Wed Jul 11, 2018 11:49 am
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 108
Views: 8487

Re: "Bonds are for Safety" ?

I think you miss Taylor's point. No one is saying bonds cannot lose money in real terms, especially in times of high inflation. Unless you have an inflation-protected asset, inflation is a concern and can result in actual loss. What he is saying is that in TBM losses are very small, as is the risk,...
by Admiral
Wed Jul 11, 2018 11:24 am
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 108
Views: 8487

Re: "Bonds are for Safety" ?

I think you miss Taylor's point. No one is saying bonds cannot lose money in real terms, especially in times of high inflation. Unless you have an inflation-protected asset, inflation is a concern and can result in actual loss. What he is saying is that in TBM losses are very small, as is the risk,...
by Admiral
Wed Jul 11, 2018 10:36 am
Forum: Personal Finance (Not Investing)
Topic: 30 Year vs 15 Year Mortgage
Replies: 79
Views: 4479

Re: 30 Year vs 15 Year Mortgage

I agree that there is a tiny, tiny, fraction of people who get a 30 year loan and then pay it off in 15. Why? Two reasons: First, if they have the extra money to pay down principle each month, then they refinance to save interest, as long as the rate spread is appx 1% or greater. Second, rates have...
by Admiral
Wed Jul 11, 2018 10:24 am
Forum: Personal Finance (Not Investing)
Topic: 30 Year vs 15 Year Mortgage
Replies: 79
Views: 4479

Re: 30 Year vs 15 Year Mortgage

I agree that there is a tiny, tiny, fraction of people who get a 30 year loan and then pay it off in 15. Why? Two reasons: First, if they have the extra money to pay down principle each month, then they refinance to save interest, as long as the rate spread is appx 1% or greater. Second, rates have ...
by Admiral
Wed Jul 11, 2018 6:03 am
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 108
Views: 8487

Re: "Bonds are for Safety" ?

Bogleheads: There are many different kinds of bonds. Some risky. Some safe. YEAR--INFLATION--BOND INDEX 1976-------4.9%--------15.6% 1977-------6.7-----------3.0 1978-------9.0-----------1.4 1979------13.3-----------1.9 1980------12.5-----------2.7 1981-------8.9-----------6.3 1982-------3.8-------...
by Admiral
Tue Jul 10, 2018 11:24 am
Forum: Investing - Help with Personal Investments
Topic: Do you count pension contributions as a portion of your overall retirement contributions.
Replies: 47
Views: 3501

Re: Do you count pension contributions as a portion of your overall retirement contributions.

That is correct CyclingDuo. That is exactly what I am asking/thinking. The logically fallacy (in my thinking) is this: If one counts contributions to a pension as a part of your total contribution to retirement, then you should also count your contribution to Social Securtiy as contribution. So as ...
by Admiral
Tue Jul 10, 2018 10:04 am
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 108
Views: 8487

Re: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters

For the 2 years ending yesterday, Vanguard Intermediate Term Treasury (VFIUX), often characterized here as an even safer alternative to Total Bond Market, is down -3.84% and down almost -10% after taxes and inflation. I don't think something that drops ~10% in real terms over 2 years even remotely ...
by Admiral
Tue Jul 10, 2018 8:44 am
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 108
Views: 8487

Re: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters

My take away is that bonds are for safety until inflation starts getting out of control. I have stayed the course for 30 years but living through the inflation of 70's I will move to cash and or short term bonds when and if inflation starts hitting 3-4% with more coming down the road. There were po...
by Admiral
Tue Jul 10, 2018 8:40 am
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 108
Views: 8487

Re: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters

While your post (intentionally) doesn't address safe withdrawal rates and the stock to bond ratio, this is, IMO, the key driver of the "bonds are for safety" Boglehead mantra. And, I think it is still accurate, just not at the (extreme) margins. Virtually all research that's been posted on the board...
by Admiral
Mon Jul 09, 2018 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund in Roth?
Replies: 7
Views: 573

Re: Emergency Fund in Roth?

I have 60,000 in an emergency fund earning 1.6% at Capital One360. But it came to me I might have a better solution. If I put 6500 yearly as I am still working in my 60’s into a Roth I could take it our without a penalty at any time should the need be. Then if I don’t need it would be nontaxable an...
by Admiral
Mon Jul 09, 2018 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund in Roth?
Replies: 7
Views: 573

Re: Emergency Fund in Roth?

I have 60,000 in an emergency fund earning 1.6% at Capital One360. But it came to me I might have a better solution. If I put 6500 yearly as I am still working in my 60’s into a Roth I could take it our without a penalty at any time should the need be. Then if I don’t need it would be nontaxable an...
by Admiral
Mon Jul 09, 2018 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Do you count pension contributions as a portion of your overall retirement contributions.
Replies: 47
Views: 3501

Re: Do you count pension contributions as a portion of your overall retirement contributions.

I've seen this question somewhere on the forum but can't dig it up. When contributing to a pension should you include that amount as part of your overall contribution amount? If so what part of the breakdown below? If you contribute 5% to a pension and your workplace contributes 5% and you contribu...
by Admiral
Tue Jul 03, 2018 6:47 am
Forum: Personal Consumer Issues
Topic: Repair Vehicle or Move On?
Replies: 22
Views: 1493

Re: Repair Vehicle or Move On?

Get a second opinion. Radiators are a few hundred bucks, gaskets (if you're referring to valve cover gaskets) are the same, or less. Even with labor those should both be done for around a grand or maybe $1500. Now, a valve job is different and can be costly. But I'm not sure how you get to $4500 unl...
by Admiral
Tue Jul 03, 2018 6:26 am
Forum: Investing - Help with Personal Investments
Topic: Is now a good time to buy my way into a proper bond alloc?
Replies: 10
Views: 589

Re: Is now a good time to buy my way into a proper bond alloc?

2) reallocate now before bonds fall more,
How are bonds "falling"? Prices may be lower, which means yields are higher. This is a good thing for anyone buying bonds, as long as their duration matches your investing horizon. Just stick to your plan.
by Admiral
Wed Jun 27, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Retire at 55, what's the magic number
Replies: 169
Views: 22031

Re: Retire at 55, what's the magic number

Do people really hate the more affordable midwest that much that they'd rather pay the premium to live in states like NY or CA for example? The answer is yes, they do. But people just don't pick up and move to a place where they have no friends or family just because they want to live on 40k a year...
by Admiral
Sat Jun 23, 2018 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Escrowing mortgage and real estate taxes
Replies: 11
Views: 605

Re: Escrowing mortgage and real estate taxes

We escrow even though lender does not require it due to our LTV ratio. No fees (in fact I feel like by law they cannot charge fees but someone can confirm.) I find it easier to just let them handle it versus having to think about putting the money aside. Plus then no temptation to spend the money! T...
by Admiral
Sat Jun 23, 2018 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Can you retire on $2M?
Replies: 173
Views: 20652

Re: Can you retire on $2M?

HomerJ wrote:
Sat Jun 23, 2018 8:30 am
Also, how are you planning on getting 8% interest on 2 million in cash? Have you not looked at what CDs and saving accoints pay in interest?

You are asking very strange questions for someone smart enough to accumulate 2 million dollars.
Let's not equate wealth with intelligence :wink:
by Admiral
Sat Jun 23, 2018 7:57 am
Forum: Personal Finance (Not Investing)
Topic: Can you retire on $2M?
Replies: 173
Views: 20652

Re: Can you retire on $2M?

I still feel like the OP is clickbait. Where are the details? schrute: Where did this (or will this) $2m come from? If it came from wages from age 21 to 40, that means you have been a high earner, which means you are likely to have a SS payment. If you do (or would) why is this not included in your ...
by Admiral
Fri Jun 22, 2018 10:57 am
Forum: Personal Finance (Not Investing)
Topic: What do we mean when we say "HCOL vs LCOL" location?
Replies: 34
Views: 2355

Re: What do we mean when we say "HCOL vs LCOL" location?

No, there is no rule of thumb. I live in a place where the average annual income is $1,800 so anything higher than that is HCOL. Also, you spend your entire time talking about tax which is almost totally unrelated to whether something is high cost of living or not. Singapore is low tax but high cos...
by Admiral
Fri Jun 22, 2018 10:34 am
Forum: Personal Finance (Not Investing)
Topic: What do we mean when we say "HCOL vs LCOL" location?
Replies: 34
Views: 2355

Re: What do we mean when we say "HCOL vs LCOL" location?

The federal government tracks cost of living, and the locality pay that federal employees earn gives you an idea of what areas should be labeled HCOL, MCOL, and LCOL. Look at the chart on this page: https://www.federalpay.org/gs/locality. If you're living in an area the federal government considers...
by Admiral
Fri Jun 22, 2018 10:21 am
Forum: Personal Finance (Not Investing)
Topic: What do we mean when we say "HCOL vs LCOL" location?
Replies: 34
Views: 2355

Re: What do we mean when we say "HCOL vs LCOL" location?

No, there is no rule of thumb. I live in a place where the average annual income is $1,800 so anything higher than that is HCOL. Also, you spend your entire time talking about tax which is almost totally unrelated to whether something is high cost of living or not. Singapore is low tax but high cos...
by Admiral
Fri Jun 22, 2018 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Can you retire on $2M?
Replies: 173
Views: 20652

Re: Can you retire on $2M?

You can argue between a 2% and 3% SWR, and you have a reasonable chance of ending with nothing. Anything higher you have to use a lot of imagination to justify. What data do you use to justify such small withdrawal rates? 3.3+% (or thereabouts) seems to be a perpetual withdrawal rate that takes you...
by Admiral
Fri Jun 22, 2018 10:07 am
Forum: Personal Finance (Not Investing)
Topic: What do we mean when we say "HCOL vs LCOL" location?
Replies: 34
Views: 2355

What do we mean when we say "HCOL vs LCOL" location?

We often use these terms on the board but I'm wondering if there is a rule of thumb...? For example, some places are obviously very HCOL: New York City (high state and local tax, high real estate pricing), and SF is similar/worse. Other places may have zero state income taxes and low property taxes ...
by Admiral
Fri Jun 22, 2018 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Can you retire on $2M?
Replies: 173
Views: 20652

Re: Can you retire on $2M?

I don't think that's true at all. Certainly it is possible. The median FAMILY income is what, 55k or something? A good reference for this is Table 1 on page 6 of this annual Census publication (for 2016) . This table indicates that in 2016, median household income in the United States was $59k per ...
by Admiral
Fri Jun 22, 2018 9:01 am
Forum: Personal Consumer Issues
Topic: Boglehead guilt with buying a car - Volvo vs Toyota Highlander
Replies: 69
Views: 4487

Re: Boglehead guilt with buying a car - Volvo vs Toyota Highlander

One tangential piece of information, Volvo Car Group is majority owned by the Chinese company Geely. I heard Toyota is Japanese owned. I believe their point is that Volvo is no longer the niche Swedish luxury car player it used to be, and that most people still commonly associate with the name/bran...
by Admiral
Fri Jun 22, 2018 8:55 am
Forum: Personal Consumer Issues
Topic: Boglehead guilt with buying a car - Volvo vs Toyota Highlander
Replies: 69
Views: 4487

Re: Boglehead guilt with buying a car - Volvo vs Toyota Highlander

You should also test drive the Mazda CX-9. The third row is small but it's there. It drives very well (for a truck) and for 40k you can get one nicely appointed. The interior is on par with luxury SUVs, IMO. And you're saving A LOT of money. It's no Volvo, but it's nicer than the Highlander and driv...
by Admiral
Fri Jun 22, 2018 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Can you retire on $2M?
Replies: 173
Views: 20652

Re: Can you retire on $2M?

Yes, absolutely I could and never worry about money again. As could I, totally depends on your lifestyle expectations. I suspect most, even on this board, would totally balk at the idea off living off of $40k/yr or suggest that it isn't even possible, but I disagree . With a pair of children in day...
by Admiral
Fri Jun 22, 2018 6:56 am
Forum: Personal Consumer Issues
Topic: Boglehead guilt with buying a car - Volvo vs Toyota Highlander
Replies: 69
Views: 4487

Re: Boglehead guilt with buying a car - Volvo vs Toyota Highlander

In my opinion, always throw the "service/maintenance department" into your consideration of a vehicle brand, whether an indy or the dealer. An unscrupulous service department can cost you unnecessary thousands over 10 years. Do some research and talk to happy and unhappy customers to help you make ...
by Admiral
Fri Jun 22, 2018 6:36 am
Forum: Personal Consumer Issues
Topic: Boglehead guilt with buying a car - Volvo vs Toyota Highlander
Replies: 69
Views: 4487

Re: Boglehead guilt with buying a car - Volvo vs Toyota Highlander

Just FYI Car and Driver rates the Highlander as terrible in terms of driving dynamics, if you care. Strict family hauler and that's about it. Go read up on it at their site (free). They also think the hybrid is a waste of money. (And don't kid yourself, you're still polluting even if you're saving 2...
by Admiral
Fri Jun 22, 2018 6:27 am
Forum: Personal Finance (Not Investing)
Topic: Can you retire on $2M?
Replies: 173
Views: 20652

Re: Can you retire on $2M?

This "hypothetical" does not include "hypothetical" expenses, nor "hypothetical" SS. If you can live on 40k a year, then yes, a 2% SWR is fine. If you require 60k a year but will have 30k in SS benefits, then yes. If you require 80k a year and have only $2m with no SS, then very likely not. What's t...
by Admiral
Wed Jun 20, 2018 6:48 am
Forum: Personal Finance (Not Investing)
Topic: $1M Term Life Insurance
Replies: 14
Views: 1681

Re: $1M Term Life Insurance

I cannot tell you what your rates will be, but here's some perspective: When we got our $1m 20 year policies, I was 44 and spouse was 46. I was the highest rating (elite preferred or whatever nomenclature they use) and she was one step below that due to a parent who died on the younger side. My poli...
by Admiral
Wed Jun 20, 2018 6:28 am
Forum: Personal Consumer Issues
Topic: Sherwin Williams paint
Replies: 52
Views: 3640

Re: Sherwin Williams paint

Benjamin Moore Aura is the best quality paint on the market IMHO, with a price to match. Regal Select, also by BM, is the next step down, still very good and $10 less per gallon. I prefer BM to SW but they are both good. We are having some painting done this month and pros use only BM or SW, nothing...
by Admiral
Tue Jun 19, 2018 8:38 am
Forum: Personal Finance (Not Investing)
Topic: ARM options, thought process
Replies: 8
Views: 828

Re: ARM options, thought process

I have an ARM at 3.75% that will be eligible for rate change in 2022. While I certainly can't predict future rate trends, it seems like my rate would rise, perhaps significantly, in 2022. The loan amount is about 50% of the current market value, I have no other debt, and could pay off the loan with...
by Admiral
Mon Jun 18, 2018 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: Invest more or accelerate mortgage payoff?
Replies: 15
Views: 1029

Re: Invest more or accelerate mortgage payoff?

So you'll prepay a 2.75% mortgage but pay the minimum on a 2.65% student loan? That makes no sense, IMHO. Only because of the difference of estimated savings in prepaying each. Estimated $10k saved in interest on the student loan vs. $230kish on the mortgage. That is not the correct comparison. Vir...
by Admiral
Mon Jun 18, 2018 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Invest more or accelerate mortgage payoff?
Replies: 15
Views: 1029

Re: Invest more or accelerate mortgage payoff?

So you'll prepay a 2.75% mortgage but pay the minimum on a 2.65% student loan?

That makes no sense, IMHO.
by Admiral
Mon Jun 18, 2018 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early
Replies: 43
Views: 3689

Re: Paying off mortgage early

Thanks for sharing this. I am in a similar situation and debating whether to pay it off. Can you please share the way to earn 3.25% tax deferred? I still owe on a mortgage (about 50K at 3.25%). If I stick to scheduled payment it will be paid off when I'm 68. I plan to retire before 68. Currently it...
by Admiral
Mon Jun 18, 2018 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Tax implications of holding Wellesley Emergency in taxable
Replies: 8
Views: 894

Re: Tax implications of holding Wellesley Emergency in taxable

When you say "These are the only two funds I have" it appears that you do not have any tax advantaged accounts, since you note that both of these holdings are in a taxable account. So you are saving $2,500 per month, but in a taxable account? I suggest putting that monthly investment in a tax-shelt...
by Admiral
Mon Jun 18, 2018 5:53 am
Forum: Investing - Help with Personal Investments
Topic: Tax implications of holding Wellesley Emergency in taxable
Replies: 8
Views: 894

Re: Tax implications of holding Wellesley Emergency in taxable

When you say "These are the only two funds I have" it appears that you do not have any tax advantaged accounts, since you note that both of these holdings are in a taxable account. So you are saving $2,500 per month, but in a taxable account? I suggest putting that monthly investment in a tax-shelte...
by Admiral
Sat Jun 16, 2018 7:09 am
Forum: Investing - Theory, News & General
Topic: Rate hikes vs - Muni, Corp, Total Bond funds
Replies: 14
Views: 1850

Re: Rate hikes vs - Muni, Corp, Total Bond funds

Grabiner, Thank you for your good point and explanation. What would you recommend is the best way to look at a bond fund like VWIUX (Intermediate Muni) over time in light of the changing Federal Funds Rate? Bob If you would have bought it a year ago when it was $14.21, why would you not buy it now ...
by Admiral
Fri Jun 15, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early
Replies: 43
Views: 3689

Re: Paying off mortgage early

Here is our approach: 1) We round the mortgage payment up a little to get a small amount of additional principal reduction every month. 2) Our monthly budget already includes tax deferred savings, so any savings over my budget goes to taxable investments. 3) We have a "sell trigger" balance for tax...
by Admiral
Fri Jun 15, 2018 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early
Replies: 43
Views: 3689

Re: Paying off mortgage early

I have absolutely no idea what you mean. Can you not explain what you meant that passing away with a big mortgage at a ripe old age is sub-optimal? I'm not trying to argue - just trying to understand. Looking forward with a long runway I think it is a better solution to not have a mortgage as you a...
by Admiral
Thu Jun 14, 2018 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early
Replies: 43
Views: 3689

Re: Paying off mortgage early

There's a distinction between "pay down" and "pay off." At your rate paying off might make sense, while paying down might not. I am not a fan of ARMs, personally, due to the rate risk, but some don't care. It's impossible to give proper advice without knowing your other financial particulars. What i...
by Admiral
Thu Jun 14, 2018 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Timeshare ever worth it? Please share details
Replies: 123
Views: 10696

Re: Timeshare ever worth it? Please share details

We have a timeshare in the mtns (actually my parents but we use it). It's fine, nothing fancy, two weeks a year with the option to buy other weeks at pretty reasonable rates. I think they maybe paid $20k like 10 years ago, only because they knew they would keep going back every summer (which they do...