Search found 1443 matches

by Admiral
Thu Dec 13, 2018 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: What percentage of your net worth is your home equity?
Replies: 274
Views: 20027

Re: What percentage of your net worth is your home equity?

This thread has jumped the shark. Don’t argue with the fool. He’s wrong. You all know he’s wrong. Don’t engage. You won’t win. Seriously. And what's the deal with the whole "don't buy unless the PITI is less than your rent" thing? Our rent was $400/month. For a dark basement with no kitchen. And th...
by Admiral
Thu Dec 13, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: What percentage of your net worth is your home equity?
Replies: 274
Views: 20027

Re: What percentage of your net worth is your home equity?

A) <<Mortgage = x%expense and x% equity. >> This is your point of view. And, folks with this point of view will buy a house with a mortgage greater than rent. KlangFool Say what? Explain to me how a mortgage payment (one that is not interest only) does not fit this description? When you pay off pri...
by Admiral
Thu Dec 13, 2018 10:41 am
Forum: Investing - Help with Personal Investments
Topic: [Bond returns are currently negative. Why should I buy bonds now?]
Replies: 19
Views: 2362

Re: [Bond returns are currently negative. Why should I buy bonds now?]

I recently sold my Total Bond holdings to harvest a tax loss. While my outlook is say, 10 years, I can't justify putting money in Total Bond today. Why? Because I have every expectation that for the short term it will continue to lose share value. So, while the SEC yield beats CDs or Money Markets,...
by Admiral
Thu Dec 13, 2018 10:36 am
Forum: Personal Finance (Not Investing)
Topic: What percentage of your net worth is your home equity?
Replies: 274
Views: 20027

Re: What percentage of your net worth is your home equity?

Folks, <<What percentage of your net worth is your home equity?>> This is a meaningless question. The only usefulness of this question is if a person counts the home equity, the person has too much house. Let's go through some examples. 1) Fully paid 400K house. Net worth excluding the house = 1 mi...
by Admiral
Thu Dec 13, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: [Bond returns are currently negative. Why should I buy bonds now?]
Replies: 19
Views: 2362

Re: [Bond returns are currently negative. Why should I buy bonds now?]

[Moved into a separate post from: Bond alternative to balance portfolio? --admin LadyGeek] I'm an EXTREME novice at investing and trying to learn as much as I can right now. This is something that I can't seem to make sense of. Can someone please have the patience to explain to me why you would buy...
by Admiral
Wed Dec 12, 2018 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Does it ever make sense to invest in ROTH IRA before maxing our 401K?
Replies: 59
Views: 4342

Re: Does it ever make sense to invest in ROTH IRA before maxing our 401K?

What I mean by "if you want to go short term or if you want to go long term" is: Short term: If a person feels that a tax deduction for this year is very important to them, they are thinking in the short term. The tax deduction is more important to them now than than having tax free income and no R...
by Admiral
Wed Dec 12, 2018 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: Does it ever make sense to invest in ROTH IRA before maxing our 401K?
Replies: 59
Views: 4342

Re: Does it ever make sense to invest in ROTH IRA before maxing our 401K?

Would there ever be a reason to contribute to a ROTH IRA before maxing our a 401K? I would think the only time this would make sense is if you think you will be in a higher tax bracket near retirement than you currently are. However, I believe my tax bracket right now will be much higher than my ta...
by Admiral
Wed Dec 12, 2018 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Does it ever make sense to invest in ROTH IRA before maxing our 401K?
Replies: 59
Views: 4342

Re: Does it ever make sense to invest in ROTH IRA before maxing our 401K?

Would there ever be a reason to contribute to a ROTH IRA before maxing our a 401K? I would think the only time this would make sense is if you think you will be in a higher tax bracket near retirement than you currently are. However, I believe my tax bracket right now will be much higher than my ta...
by Admiral
Wed Dec 12, 2018 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: Does it ever make sense to invest in ROTH IRA before maxing our 401K?
Replies: 59
Views: 4342

Re: Does it ever make sense to invest in ROTH IRA before maxing our 401K?

So put it in a MM fund in a Roth. Why not use the tax code to your advantage? Define "emergency". Is making a bridge loan to a child an emergency? Is home repair and emergency? IRA are for retirement not emergencies. I assume "EM" is not emerging markets. Those are things that that I would not clas...
by Admiral
Wed Dec 12, 2018 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: What percentage of your net worth is your home equity?
Replies: 274
Views: 20027

Re: What percentage of your net worth is your home equity?

Mine is around 28%, curious about other bogleheads. 10-12% I hesitate to even use the word investment when it comes to a home. Almost prefer to use the word expense , but going with the home as an investment - or at least an asset - for the sake of a net worth discussion... The ER fees on that equi...
by Admiral
Wed Dec 12, 2018 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Does it ever make sense to invest in ROTH IRA before maxing our 401K?
Replies: 59
Views: 4342

Re: Does it ever make sense to invest in ROTH IRA before maxing our 401K?

This may have been addressed in essence already, but what if you frame the question like this: Assume the investor is already investing in a 401k to reach the company match, that this amounts to say $5,000 in contributions out of $19,000 2019 limit, and that the 401k options are good. Now, assume t...
by Admiral
Wed Dec 12, 2018 11:57 am
Forum: Personal Finance (Not Investing)
Topic: What percentage of your net worth is your home equity?
Replies: 274
Views: 20027

Re: What percentage of your net worth is your home equity?

Forget whether the home is an "important" or "major" part of your assets, for the moment, which is Klang's argument. If I buy a piece of land for $100, and a year later it's appreciated to $10,000, does that not count as part of my net worth? Even if I borrow the $100, I still have $9,900 in equity....
by Admiral
Wed Dec 12, 2018 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Does it ever make sense to invest in ROTH IRA before maxing our 401K?
Replies: 59
Views: 4342

Re: Does it ever make sense to invest in ROTH IRA before maxing our 401K?

This may have been addressed in essence already, but what if you frame the question like this: Assume the investor is already investing in a 401k to reach the company match, that this amounts to say $5,000 in contributions out of $19,000 2019 limit, and that the 401k options are good. Now, assume t...
by Admiral
Wed Dec 12, 2018 10:29 am
Forum: Personal Consumer Issues
Topic: Certified Used BMW, Audi or Mercedes
Replies: 90
Views: 9631

Re: Certified Used BMW, Audi or Mercedes

I was thinking of buying a Certified pre owed vehicle from one of the "luxury" german manufacturers. My local mechanic says owning these cars after their warranty can be costly. He says stick with Japanese brands. I'm wondering if this is a dated school of thought of if this still holds true today?...
by Admiral
Wed Dec 12, 2018 9:53 am
Forum: Personal Consumer Issues
Topic: Certified Used BMW, Audi or Mercedes
Replies: 90
Views: 9631

Re: Certified Used BMW, Audi or Mercedes

Having owned BMWs for 20 years, and seen them get more and more complex and electronics-laden, I would no longer be comfortable owning one out of warranty. The cars are just much different now. German car makers are known for their engineering prowess, not for their electronics acumen. My mechanic (...
by Admiral
Wed Dec 12, 2018 9:43 am
Forum: Investing - Help with Personal Investments
Topic: Does it ever make sense to invest in ROTH IRA before maxing our 401K?
Replies: 59
Views: 4342

Re: Does it ever make sense to invest in ROTH IRA before maxing our 401K?

It is really all as simple as that. There are many factors to consider... Gotta go with Admiral on this one. The math can be simple...or not-so-simple...and that's even if one assumes perfect foreknowledge of one's own future tax situation. Right. I also think it's not immaterial that the benefits ...
by Admiral
Tue Dec 11, 2018 7:41 pm
Forum: Investing - Help with Personal Investments
Topic: Does it ever make sense to invest in ROTH IRA before maxing our 401K?
Replies: 59
Views: 4342

Re: Does it ever make sense to invest in ROTH IRA before maxing our 401K?

Both sides of this discussion has good points of view. It all gets down to one thing. If you are looking at the short term of things, then go with the 401-k or traditional IRA. If you are looking at the long term of things, then go with the Roth IRA. It is really all as simple as that. Huh? What do...
by Admiral
Tue Dec 11, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Does it ever make sense to invest in ROTH IRA before maxing our 401K?
Replies: 59
Views: 4342

Re: Does it ever make sense to invest in ROTH IRA before maxing our 401K?

If you expect that tax rates will be "much lower" in retirement, why aren't you maxing both? If one invests the Boglehead way his taxes will not be lower in retirement. He will find himself investing for tax avoidance not income. You have been warned. Warned three times, apparently. I don't even kn...
by Admiral
Tue Dec 11, 2018 11:18 am
Forum: Personal Consumer Issues
Topic: Question on car leasing
Replies: 7
Views: 2097

Re: Question on car leasing

No, that would not necessarily be the buyout amount. The residual value is based on the seller's prediction of what the car will be worth at the end of the lease. It has to be determined at the beginning of the lease because they make you pay for the predicted depreciation over the course of the le...
by Admiral
Tue Dec 11, 2018 10:27 am
Forum: Personal Consumer Issues
Topic: Question on car leasing
Replies: 7
Views: 2097

Question on car leasing

Is there a way to determine--without going into a dealer, i.e online--what the lease buyout would be for a particular car, assuming one knows the total price? The intention would be a large downpayment and then to buy the car after 3 years. For example, I'm pricing a lease for a car that has a cost ...
by Admiral
Tue Dec 11, 2018 9:32 am
Forum: Personal Consumer Issues
Topic: Certified Used BMW, Audi or Mercedes
Replies: 90
Views: 9631

Re: Certified Used BMW, Audi or Mercedes

A beemer out of warranty will cost at least $1,000/yr to maintain. Plan for that! To compound that, if you visit the dealer while IN-warranty, they will find stuff such that your total bill is $1,000. My BMW 325i after warranty had, until I got sick of paying for it and gladly got rid of it on crai...
by Admiral
Wed Dec 05, 2018 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

I'm going to use a mortgage calculator to show why the duration matters: I have a $100,000 mortgage for 10 years at 4%. If I pay it off tomorrow (versus paying for 10 years), I am out $100,000 but save $21,494.17 in interest. Let's now say I have 5 years left. I owe $44,840.29. I could pay it off, ...
by Admiral
Wed Dec 05, 2018 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

I think one other point worth noting is to understand, historically, how home values have fared versus stocks. As per Case and Shiller, in the US, housing has beaten inflation, on average by 1-2% over the last 80 years. The S+P, as we know has returned about 7% after inflation. Now, this is not an ...
by Admiral
Wed Dec 05, 2018 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

Please post the mortgage term and how many years remaining. Without that information we have no idea how much of what you are paying each month is interest versus principal. This is crucial info to help determine if the savings is worthwhile. The remaining term / how much is interest vs. principal ...
by Admiral
Wed Dec 05, 2018 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

Have we heard back from the OP? I think one other point worth noting is to understand, historically, how home values have fared versus stocks. As per Case and Shiller, in the US, housing has beaten inflation, on average by 1-2% over the last 80 years. The S+P, as we know has returned about 7% after ...
by Admiral
Wed Dec 05, 2018 12:04 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 8550
Views: 1672729

Re: U.S. stocks in freefall

The volatility in the markets is getting utterly ridiculous. Averages down 3% over a tweet? Another example of the skittishness of professional investors who ought to know better. Unbelievable. What stupid stuff out there are the hedge funds doing? No big changes today :) . Gives us a whole 'nother...
by Admiral
Wed Dec 05, 2018 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

I would do the very same thing in your shoes. (Depending possibly on how many capital gains you have in the stocks or some other unknown factor.) My gut reaction is that stocks have done well, why not cap off a good run with the 4.625% final return on the money? However perhaps the most compelling ...
by Admiral
Wed Dec 05, 2018 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Vang Wellesley for Retirement
Replies: 37
Views: 4272

Re: Vang Wellesley for Retirement

I'm a retiree who has had a 50% Wellington / 50% Wellesley Income allocation for more than a decade. Following is a table that shows what $100,000 invested in Wellington, Wellesley Income and various Vanguard index funds on January 1, 2000 would be worth as of November 30, 2018. (Source: Portfolio ...
by Admiral
Tue Dec 04, 2018 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

This is just not correct. You don't "get an extra $45 per year until the mortgage is paid off." You realize ZERO ACTUAL savings until the mortgage is paid in full, because the payment does not change month to month or year to year. The savings is in the future, in inflated dollars, so it's actually...
by Admiral
Tue Dec 04, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: Vang Wellesley for Retirement
Replies: 37
Views: 4272

Re: Vang Wellesley for Retirement

I am thinking putting all my 401k assets into Wellesley other then a 4 year spending cash account that I will drip fill from dividends from Wellesley. In years where capital gains are positive I may take some off the table to assist in the cash account. Thoughts ? It would be helpful to know your a...
by Admiral
Tue Dec 04, 2018 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: NYT Article: The Myth of Steady Retirement Spending
Replies: 50
Views: 6932

Re: NYT Article: The Myth of Steady Retirement Spending

The 800# gorilla is health care costs for a spouse with unequal longevity to the other one. Are you referring to early retirees (i.e. before Medicare eligibility), retirees' healthcare expenditures not covered by Medicare, or Medicare itself failing? The gorilla is probably nursing home care. Medic...
by Admiral
Tue Dec 04, 2018 7:47 am
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

Please post the mortgage term and how many years remaining. Without that information we have no idea how much of what you are paying each month is interest versus principal. This is crucial info to help determine if the savings is worthwhile. How many years remaining is crucial for the exact opposi...
by Admiral
Tue Dec 04, 2018 7:40 am
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

I would do the very same thing in your shoes. (Depending possibly on how many capital gains you have in the stocks or some other unknown factor.) My gut reaction is that stocks have done well, why not cap off a good run with the 4.625% final return on the money? However perhaps the most compelling ...
by Admiral
Mon Dec 03, 2018 7:23 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

I would do the very same thing in your shoes. (Depending possibly on how many capital gains you have in the stocks or some other unknown factor.) My gut reaction is that stocks have done well, why not cap off a good run with the 4.625% final return on the money? However perhaps the most compelling ...
by Admiral
Mon Dec 03, 2018 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

Please post the mortgage term and how many years remaining. Without that information we have no idea how much of what you are paying each month is interest versus principal. This is crucial info to help determine if the savings is worthwhile. How many years remaining is crucial for the exact opposi...
by Admiral
Mon Dec 03, 2018 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

Paying it off is also not a slam dunk easy choice but if you do and it turns out to have been a "mistake" in hindsight then having a paid off house by your mid 30s is a pretty good "mistake" and would be more of a missed opportunity than a real mistake. Amen to this. The only way this is ever a "mi...
by Admiral
Mon Dec 03, 2018 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5018

Re: Out of Stocks to Pay Off Mortgage

We are at the point where we are seriously considering selling off stocks to pay off our mortgage. Background: - Husband and I are mid-30s - About $200k left on mortgage (at 4.625%) - Have a little over $230k in taxable account - Have considerable invested in 401k and IRAs which won’t be touched as...
by Admiral
Mon Dec 03, 2018 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Home Purchase Price vs. Gross Income
Replies: 59
Views: 4287

Re: Home Purchase Price vs. Gross Income

When I bought my first place it was 2x, and it nearly killed me. Interest rates were over 10%, and I had a minimalistic down payment. When we bought our second house, it was 2x, and it was a small stretch. Interest rates were at 8%, and we had a 10% down payment. When we bought our third house, it ...
by Admiral
Mon Dec 03, 2018 7:26 am
Forum: Personal Finance (Not Investing)
Topic: Home Purchase Price vs. Gross Income
Replies: 59
Views: 4287

Re: Home Purchase Price vs. Gross Income

I honestly don't recall what our incomes were 15 years ago when we bought. All I know is we put down 30% on a $560k house.

Today, we owe less than 1x annual income and the house value is more than 2x annual income. Seem like reasonable ratios :sharebeer
by Admiral
Fri Nov 30, 2018 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: The first million?
Replies: 36
Views: 5482

Re: The first million?

However I am sorry to report that stock real returns have never been over 5% in the years following valuations this high. The information you cite appears to use forward P/E for the S&P 500, which currently sits at 16.35 according to the WSJ: http://www.wsj.com/mdc/public/page/2_3021-peyield.html I...
by Admiral
Fri Nov 30, 2018 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Net Worth Question - Current Value or Personal Contribution?
Replies: 31
Views: 2083

Re: Net Worth Question - Current Value or Personal Contribution?

In Excel, let's assume that you currently have a portfolio that's valued at $400,000. Here's how to find the answer to your question: In any cell in the spreadsheet, enter the following formula: =FV(5%,30,-400000) The answer you get is: = $1,728,777 This is the amount you'd have in 30 years based o...
by Admiral
Fri Nov 30, 2018 9:56 am
Forum: Investing - Help with Personal Investments
Topic: The first million?
Replies: 36
Views: 5482

Re: The first million?

No added opinions on the math, as other posters have it right, I'd just ask: What's so special about $1 million? That's just a number, and a conservative safe withdrawal amount is just $40,000/year. Your goal should have a connection to (or reflect) your projected expenses. If you're planning to sav...
by Admiral
Thu Nov 29, 2018 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Help with evaluating real estate investments
Replies: 6
Views: 590

Re: Help with evaluating real estate investments

When I say conservative I mean to say that it's speculative in that it's not a large % of the overall portfolio. Ah, OK, I misunderstood. The rest of my reply still stands. I'm sure you'll get contrary advice (from WanderingDoc, among others). If you are a HNW individual and a sophisticated r.e. in...
by Admiral
Thu Nov 29, 2018 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Help with evaluating real estate investments
Replies: 6
Views: 590

Re: Help with evaluating real estate investments

I am considering 2 different Real Estate opportunities to add to a conservative % of my overall portfolio. One of them is a local direct multi-family opportunity with a well established developer. These would be Class A apartments. https://www.ibmadison.com/In-Business-Madison/August-2017/Plan-Comm...
by Admiral
Thu Nov 29, 2018 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Explain to me what bonds are.
Replies: 15
Views: 1333

Re: Explain to me what bonds are.

Just to be clear, you already own bonds via VBTLX (total bond market fund). So why the desire to add other types of bonds vs just buying more VBTLX? Are you trying to reduce taxes, reduce risk, someone at work said ibonds are the greatest thing in the world, etc? Now I'm going to sound really ignor...
by Admiral
Thu Nov 29, 2018 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: Net Worth Question - Current Value or Personal Contribution?
Replies: 31
Views: 2083

Re: Net Worth Question - Current Value or Personal Contribution?

I would suggest using a more robust calculator or, better yet, a Monte Carlo simulator. That one does not even appear to account for inflation (so I assume you're assuming 5% real, not nominal). Those types of calculators are pretty much worthless for market-rate investments like stocks, where retu...
by Admiral
Thu Nov 29, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Net Worth Question - Current Value or Personal Contribution?
Replies: 31
Views: 2083

Re: Net Worth Question - Current Value or Personal Contribution?

I would suggest using a more robust calculator or, better yet, a Monte Carlo simulator. That one does not even appear to account for inflation (so I assume you're assuming 5% real, not nominal). Those types of calculators are pretty much worthless for market-rate investments like stocks, where retur...
by Admiral
Thu Nov 29, 2018 7:26 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 409
Views: 46432

Re: U.S. stocks continue to soar!

you're jumping from one concept to another. I claimed that people here say, "I know nothing therefore do xyz," then have the brass to say things like "what drop! lol!" when staring at 15% index movements. that is a behavioral fact and not subject to your interpretation. that behavior is child like ...
by Admiral
Wed Nov 28, 2018 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Pay extra into mortgage or invest, considering Trump's tax plan ?
Replies: 29
Views: 2236

Re: Pay extra into mortgage or invest, considering Trump's tax plan ?

Thanks for your thoughts. Beneath my questions, there's an underlying concern about longer term market returns being less than 5% (after-tax). That being said, our investment time horizon is over 10 years. I can appreciate that opinions or thoughts will vary depending on one's age/stage and how clo...
by Admiral
Wed Nov 28, 2018 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Pay extra into mortgage or invest, considering Trump's tax plan ?
Replies: 29
Views: 2236

Re: Pay extra into mortgage or invest, considering Trump's tax plan ?

Age: 43 (me); Wife: 40 no kids, no pets, no plans for either Each of us essentially started over 7 years ago after getting divorced. Thankfully, we have no debts, except a mortgage (see below). Desired retirement age for me: 65 Desired retirement age for my wife: 65 Tax bracket (2018): 24% cash: 50...