Search found 1357 matches

by Admiral
Mon Oct 22, 2018 6:15 am
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 47
Views: 3365

Re: Timing mortgage pay down

After maxing out the tax deferred accounts, each month I put 75% of extra funds into an 80/20 taxable account, and 25% of extra funds towards mortgage principal. I do this despite a 2.625% mortgage rate. I am hoping to finish paying off this mortgage in early 2019. Once there is no more mortgage to...
by Admiral
Sun Oct 21, 2018 1:06 pm
Forum: Personal Consumer Issues
Topic: Why Purchase an Automobile using Premium Gasoline?
Replies: 68
Views: 2842

Re: Why Purchase an Automobile using Premium Gasoline?

How many consider the type of gasoline an automobile uses when purchasing? Automobiles using regular, unleaded gasoline typically, I think, get better mileage and have comparable torque and acceleration in my experience. What justifies the choice of significantly more expensive fuel other than simp...
by Admiral
Fri Oct 19, 2018 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 47
Views: 3365

Re: Timing mortgage pay down

The one topic that seems to be discussed to no end on this forum is whether to pay down your mortgage or invest. This got me thinking whether the optimal answer depends on timing. Traditional amortization schedules heavily weigh interest in the early life of the mortgage. Your monthly payment doesn...
by Admiral
Fri Oct 19, 2018 11:58 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market Fund - interest rates rising!
Replies: 116
Views: 10796

Re: Total Bond Market Fund - interest rates rising!

that bond returns will probably be depressed for a similar time. Define "depressed"? Total Bond yield is now 2.73%, higher than it's been in ten years. Yes, it's not 4 or 5%. But it's not .5% either. Perhaps lower expectations are in order. Stocks are for risk and return, better to chase performanc...
by Admiral
Fri Oct 19, 2018 11:44 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market Fund - interest rates rising!
Replies: 116
Views: 10796

Re: Total Bond Market Fund - interest rates rising!

With those kind of piddly gains, wouldn't it be better to put the bonds/fixed-income portion of your portfolio in a short-term FDIC-insured CD? For example, bankrate.com shows a 15-month CD at 2.75% APY. It seems like that would be the better route rather than speculating on a bond fund at this tim...
by Admiral
Fri Oct 19, 2018 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Advice on using a Special Purpose Entity to get Education Improvement Tax Credits
Replies: 3
Views: 266

Re: Advice on using a Special Purpose Entity to get EITC

BL wrote:
Fri Oct 19, 2018 8:33 am
No knowledge, but abbreviations should be spelled out. I thought of Earned Income Tax Credit with EITC.

That might get others to comment.
It's spelled out in the post but I changed the thread title.
by Admiral
Fri Oct 19, 2018 6:04 am
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 47
Views: 3365

Re: Timing mortgage pay down

There is one thing missing from this discussion. Paying down a mortgage is a sure thing. If the mortgage is 3.5%, your return is 3.5%, done deal. When you invest that money in the market, you will earn and lose varying amounts each year. And that amount is unpredictable and unknowable. In the past,...
by Admiral
Fri Oct 19, 2018 5:59 am
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 47
Views: 3365

Re: Timing mortgage pay down

The one topic that seems to be discussed to no end on this forum is whether to pay down your mortgage or invest. This got me thinking whether the optimal answer depends on timing. Traditional amortization schedules heavily weigh interest in the early life of the mortgage. Your monthly payment doesn...
by Admiral
Thu Oct 18, 2018 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Advice on using a Special Purpose Entity to get Education Improvement Tax Credits
Replies: 3
Views: 266

Advice on using a Special Purpose Entity to get Education Improvement Tax Credits

The school that my children attend has set up a SPE to aggregate donations, which are then used to get Education Improvement Tax Credits, which allow them to give the money to the school for scholarships for needy families (a cause we have supported in the past via direct donation.) This is in PA. T...
by Admiral
Wed Oct 17, 2018 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6562

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

I often see the argument against paying off your mortgage early, because it is "putting more money into your house". Isn't it the opposite? I put the money in the day I closed on the house and took the mortgage. If anything the only added money going "into the house" is the interest on the mortgage...
by Admiral
Wed Oct 17, 2018 8:53 am
Forum: Investing - Help with Personal Investments
Topic: International Fund Down - What to do?
Replies: 36
Views: 2297

Re: International Fund Down - What to do?

(Updated totals below including 401K) I have a good amount of International Exposure in my 3 Fund Portfolio Brokerage (taxable) and notice that my International / Bond had been walloped and down 5% from when I purchased. What would be your guys suggestions moving forward and is there anything I can...
by Admiral
Tue Oct 16, 2018 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Sell & Buy New Home Now vs. Next Spring
Replies: 25
Views: 1048

Re: Sell & Buy New Home Now vs. Next Spring

You haven't told us where you live... your property taxes may be a factor in your decision, and a drop in house prices would help you out there. You will be paying property taxes long after you pay off your house (assuming you stay in that house long-term, which of course is a big assumption). Unle...
by Admiral
Tue Oct 16, 2018 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Confusion
Replies: 2
Views: 205

Re: Backdoor Roth IRA Confusion

All, I received an email today from vanguard. It says "As a result of the Tax Cuts and Jobs Act signed into law late last year, investors who convert a traditional IRA or other tax-deferred retirement account to a Roth IRA after December 31, 2017, can no longer recharacterize (in other words, rever...
by Admiral
Tue Oct 16, 2018 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Sell & Buy New Home Now vs. Next Spring
Replies: 25
Views: 1048

Re: Sell & Buy New Home Now vs. Next Spring

A home purchase is one of the most significant (and thus stressful) financial decisions one can make. Therefore, it should not be rushed... and especially not by some random agent or banker. If you're worried about getting into a particular school district for next year, you can always rent for a ye...
by Admiral
Fri Oct 12, 2018 12:54 pm
Forum: Investing - Theory, News & General
Topic: Does it make sense to consider that stocks are 'on sale' when there's a correction?
Replies: 84
Views: 4282

Re: Does it make sense to consider that stocks are 'on sale' when there's a correction?

I think you're taking the term "on sale" too literally. Many (most?) people on the forum who buy stocks do so on a regular schedule that coincides with their paychecks and hence retirement account contributions. Assuming the amount invested each period is fixed, and the stocks being purchased are th...
by Admiral
Fri Oct 12, 2018 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth if income is in phase out range
Replies: 13
Views: 653

Re: Backdoor Roth if income is in phase out range

My wife and I have almost completed moving all of our traditional IRA's into our current employer 401k plans in preparation for a backdoor roth conversion. Our MAGI seems to be somewhere within the Roth IRA phase out range, but I can't predict the exact amount due to potential year end bonuses, and...
by Admiral
Thu Oct 11, 2018 11:31 am
Forum: Personal Consumer Issues
Topic: Keep a backup hot water heater?
Replies: 97
Views: 4709

Re: Keep a backup hot water heater?

Mine is 13 years old, though it's one of those "lifetime" (riiight) Phase II water heaters with a plastic or PVC type exterior (the inside is still metal) that supposedly keeps it from bursting. What I've done is placed one of those $5 leak detectors on the floor next to it--on the hope/assumption ...
by Admiral
Thu Oct 11, 2018 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Pls help us design our family life!!!
Replies: 42
Views: 5152

Re: Pls help us design our family life!!!

Your house is much too expensive for your CURRENT incomes (forget about reduced incomes). It strikes me as that simple. 40% +/- of your take home. That's not real sustainable if you want to reduce your income.

You need less house. Sorry, but that's what jumps out at me.
by Admiral
Thu Oct 11, 2018 10:32 am
Forum: Personal Consumer Issues
Topic: Keep a backup hot water heater?
Replies: 97
Views: 4709

Re: Keep a backup hot water heater?

If it fails order a replacement and heat water on the stove for sponge baths and wash your clothes in cold water until it's installed, or just wear different clothes. Sounds rough but you will survive. Also "hot water heater" is a redundant misnomer. Why would you have a device to heat water that's...
by Admiral
Thu Oct 11, 2018 9:40 am
Forum: Personal Consumer Issues
Topic: Keep a backup hot water heater?
Replies: 97
Views: 4709

Re: Keep a backup hot water heater?

Mine is 13 years old, though it's one of those "lifetime" (riiight) Phase II water heaters with a plastic or PVC type exterior (the inside is still metal) that supposedly keeps it from bursting. What I've done is placed one of those $5 leak detectors on the floor next to it--on the hope/assumption t...
by Admiral
Thu Oct 11, 2018 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage vs. Cash
Replies: 28
Views: 2182

Re: Mortgage vs. Cash

15-year mortgage (borrow 300k or so). keep some liquidity. You are worried about stocks crashing or being all-time high. Do you have any concerns about the housing market? Interest rates, affordability, etc... To others: I regret having had a paid off mortgage (age 39).... because I moved and now I...
by Admiral
Thu Oct 11, 2018 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage vs. Cash
Replies: 28
Views: 2182

Re: Mortgage vs. Cash

Try to find someone, anyone who regrets paying off their mortgage. I'm glad every day and it was more than 15 years ago. If it were me, I'd pay in cash. You have to decide if you want to borrow money to invest it, because that's what you're doing. Do you invest with money borrowed on margin? Why no...
by Admiral
Wed Oct 10, 2018 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: Do Bonds Go in Taxable?
Replies: 70
Views: 6066

Re: Do Bonds Go in Taxable?

... $1 pre-tax into your 401k vs. $1 pre-tax into your Roth (say, $0.70 into the account) will be worth the same in retirement if you tax-rate doesn't change. But if your 401k grows more than your Roth, you could be forced to "withdraw" (via RMD) more than you'd normally have even spent, thus forci...
by Admiral
Wed Oct 10, 2018 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Do Bonds Go in Taxable?
Replies: 70
Views: 6066

Re: Do Bonds Go in Taxable?

What about RMDs? Bonds will grow less, thus less RMDs/taxes. This I am not getting. If my portfolio grows less, then I will have less RMD. Why should I strive for that? What is the condition under which I am better off with my portfolio growing less than more? I mean even if (hypothetically) 90% of...
by Admiral
Wed Oct 10, 2018 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Do Bonds Go in Taxable?
Replies: 70
Views: 6066

Re: Do Bonds Go in Taxable?

What about RMDs? Bonds will grow less, thus less RMDs/taxes. This I am not getting. If my portfolio grows less, then I will have less RMD. Why should I strive for that? What is the condition under which I am better off with my portfolio growing less than more? I mean even if (hypothetically) 90% of...
by Admiral
Wed Oct 10, 2018 10:29 am
Forum: Personal Consumer Issues
Topic: Mazda 3 w/ Snow tire or Subaru AWD with All Season Tire
Replies: 56
Views: 3428

Re: Mazda 3 w/ Snow tire or Subaru AWD with All Season Tire

One thing not mentioned: ground clearance. Outback has lots, Mazda 3 not so much. If your daughter is going to be driving in winter mountain conditions such that 4-5 inches of snow might be on the ground and the trip is still required, then a sedan with lower clearance is going to be an issue.
by Admiral
Wed Oct 10, 2018 10:21 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 7401
Views: 1553970

Re: Stocks tumbling?

I don't know about ya'll but I have not seen my Total Bond return over 3% for like a decade so I am loving it!

Course, I don't have to sell...
by Admiral
Wed Oct 10, 2018 10:08 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 7401
Views: 1553970

Re: Stocks tumbling?

I like the fire sale. I hope it keeps up until Friday when I buy again :D.

Remember, if you bought stocks a week ago, you're now getting the same thing for less money!
by Admiral
Wed Oct 10, 2018 9:31 am
Forum: Personal Consumer Issues
Topic: Kirkland (Costco) Razor
Replies: 31
Views: 3097

Re: Kirkland (Costco) Razor

Stainless Steel Safety Razor (made in Germany) on Amazon: $38. You will have it for the rest of your life 100 blades: $8. https://www.amazon.com/Merkur-Long-Handled-Safety-Razor/dp/B00374F5CY/ref=sr_1_6_s_it?s=beauty&ie=UTF8&qid=1539181684&sr=1-6&keywords=safety+Razor 1 box lasts a year. Do you thin...
by Admiral
Tue Oct 09, 2018 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: How to get over paper loss?
Replies: 43
Views: 3843

Re: How to get over paper loss?

Rather than stop looking, I think one needs to look even more. After awhile, one will get used to losing money. I am serious about this. Meh. Like how often? Once a day? Three times? I see no reason to check obsessively. Once a week, twice a month, whatever, to make sure your automatic investments ...
by Admiral
Tue Oct 09, 2018 9:04 am
Forum: Investing - Help with Personal Investments
Topic: How to get over paper loss?
Replies: 43
Views: 3843

Re: How to get over paper loss?

I've held onto $20k company stock from my ESPP and had a paper loss of about $6-7k. Bogleheads advised me to sell it all and buy an index fund and don't try to time the market. I really didn't want to take a loss, but decided to sell $10k company stock and put it all in SCHB last week. A week later...
by Admiral
Thu Oct 04, 2018 6:18 am
Forum: Investing - Help with Personal Investments
Topic: Pay off debt or invest?
Replies: 14
Views: 1227

Re: Pay off debt or invest?

Welcome to Boggleheads :) I actually disagree, rather strongly, with the advice above... I think you should invest 100% of this (less taxes). You didn't mention your age, but if you're 12 years into your mortgage with very little retirement savings, that means that you're probably a bit behind. Doi...
by Admiral
Wed Oct 03, 2018 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off debt or invest?
Replies: 14
Views: 1227

Re: Pay off debt or invest?

You should also consider a SEP IRA (assuming you have no employees) though no Roth is available in that case. You can sock away a lot every year, and esp if you are over 50.
by Admiral
Wed Oct 03, 2018 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Long or medium bonds
Replies: 88
Views: 5549

Re: Long or medium bonds

The intent is to hold this fund in a taxable account. My Bracket is 22% and 6% State+Local. That is why VWAHX seemed so appealing. I intend to retire prior to 59.5 when I can withdraw from my 403b early and am already capping my Roth IRA which along with fees make me think I can do better in taxabl...
by Admiral
Wed Oct 03, 2018 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Long or medium bonds
Replies: 88
Views: 5549

Re: Long or medium bonds

The intent is to hold this fund in a taxable account. My Bracket is 22% and 6% State+Local. That is why VWAHX seemed so appealing. I intend to retire prior to 59.5 when I can withdraw from my 403b early and am already capping my Roth IRA which along with fees make me think I can do better in taxabl...
by Admiral
Wed Oct 03, 2018 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Long or medium bonds
Replies: 88
Views: 5549

Re: Long or medium bonds

When people say that the asset allocation should be 60/40 or 80/20 or 25/75 or any specific stock bond ratio they never really say what kind of bonds. The stock side is always SNP500/Total index or some approximation there of. The bond side is less talked about it seems and while I have a high risk...
by Admiral
Wed Oct 03, 2018 6:49 am
Forum: Investing - Help with Personal Investments
Topic: In retirement
Replies: 22
Views: 2353

Re: In retirement

livesoft: it may be "needless" (and I agree) but characterizing it as "huge" seems like a stretch. I have to disagree. $4,000 is huge compared to $0. I don't have $4,000 to flush down the toilet. Well most things are big compared to zero! The OP may face large tax consequences in altering the portf...
by Admiral
Wed Oct 03, 2018 6:31 am
Forum: Investing - Help with Personal Investments
Topic: In retirement
Replies: 22
Views: 2353

Re: In retirement

That's a huge needless tax bill. Don't let anyone tell you that it is normal. The amounts of interest and dividend income suggest a rather large taxable portfolio as well. The capital loss of $-3,000 hints at a nice taxable portfolio, too. We have no way of knowing if the OP is spending $100,000 or...
by Admiral
Wed Oct 03, 2018 6:16 am
Forum: Investing - Help with Personal Investments
Topic: In retirement
Replies: 22
Views: 2353

Re: In retirement

It would be helpful to see your holdings, so we can see what is generating such large dividends (25k). That is a large contributing factor.

But...if you're paying $4k on $66k AGI that does not strike me as excessive tax. That's...um...6%.
by Admiral
Tue Oct 02, 2018 9:33 am
Forum: Personal Finance (Not Investing)
Topic: How many months/years of living expenses do you save each year?
Replies: 29
Views: 3417

Re: How many months/years of living expenses do you save each year?

I save $15,888/year (25% of gross), not including employer match or mortgage pre-payment, which is 8 months of living expenses saved per year. I really need to figure out how to get my savings rate to 30% of gross. Perhaps start with not pre-paying your mortgage? :wink: OP: We save $55k per year wh...
by Admiral
Tue Oct 02, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: Bonds... Why do people bother with them. ?
Replies: 71
Views: 7361

Re: Bonds... Why do people bother with them. ?

How many people on here were 100% stocks in 2008? I was. Not anymore. :wink: OP: Bonds are to reduce portfolio volatility, and for some small return. If your investing horizon is long and you can stand highly volatile returns (i.e. steep drops) without selling as equities fall, then don't hold bond...
by Admiral
Mon Oct 01, 2018 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Auto Deductibles
Replies: 19
Views: 1465

Re: Auto Deductibles

Car insurance rates are all over the place and are influenced by countless factors: who's driving, their age, their driving record, the car (make, model, year) where you live, and on and on. So, I'm not sure how helpful the replies will be to your particular situation. However, if it helps, we recen...
by Admiral
Mon Oct 01, 2018 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Why is Home Part of NW [Net Worth]
Replies: 98
Views: 6737

Re: Why is Home Part of NW

1) I do not count net worth. It is a meaningless number. A home with positive equity can be sold to generate liquid assets. That is very far from meaningless. 2) I only count my investment value aka the portfolio that can feed me when I am retired/FI. A home owned free and clear should reduce one's...
by Admiral
Mon Oct 01, 2018 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Why is Home Part of NW [Net Worth]
Replies: 98
Views: 6737

Re: Why is Home Part of NW [Net Worth]

I don't know what a "net worth portfolio" is. Your home is part of your net worth because it is an asset. It is not part of your investment/retirement portfolio (typically) because you bought it to live in and if you sell it and spend the money on something else you have no where to live. This is o...
by Admiral
Sun Sep 30, 2018 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Salary negotiation: saying a number first on purpose?
Replies: 43
Views: 3963

Re: Salary negotiation: saying a number first on purpose?

There is no reason for you to tell them your current salary, and they don't need to ask, as they know what the industry pays. Just tell that what you want in the new position. Do not include benefits in your calculation. They know what those cost the company, you do not, and it's not material. I wou...
by Admiral
Sun Sep 30, 2018 7:33 am
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 650
Views: 80241

Re: How much money do you want to retire?

Can you elaborate what you will be spending the 150k/yr on if debt free? I Cannot speak for Jwood but our core costs for retirement are near $60K a year. Another $60K a year will cover all kinds of 'elective' activities including travel , boating, winter home rental, etc . The balance we would like...
by Admiral
Fri Sep 28, 2018 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 650
Views: 80241

Re: How much money do you want to retire?

I would venture that the vast, vast majority on this board intend to work long enough to save enough to maintain or increase their standard of living in retirement. It's that simple. Their costs may decrease in retirement (empty nest, mortgage paid off) but they are not going to give up the things t...
by Admiral
Fri Sep 28, 2018 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Testing validity of Monte Carlo Simulators
Replies: 34
Views: 2127

Re: Testing validity of Monte Carlo Simulators

Those inputs (expected returns, expected variance, and expected correlation) will determine the output. Unfortunately, it is up to the investor to use they judgement abut what those inputs should be. Correct. And when it comes to predicting what the world will look like in 20 or 30 or (gasp!) 50 or...
by Admiral
Fri Sep 28, 2018 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Pension vs 401k, help
Replies: 31
Views: 2128

Re: Pension vs 401k, help

Currently have a State pension, in which I am vested. If I continue working until I have 30 years of service, which will be 11.5 more years. The pension will pay $41,000 per year until both my wife and I are deceased. If I quit my job now, we will receive $21,400 per year starting when I turn 62, w...
by Admiral
Thu Sep 27, 2018 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Testing validity of Monte Carlo Simulators
Replies: 34
Views: 2127

Re: Testing validity of Monte Carlo Simulators

I think that the problem (if it can be said to be a "problem") is that MC simulators don't account for human behavior and psychology. Just because a model says that one can safely withdraw 4.5% in perpetuity and not deplete a portfolio doesn't mean that Joe Retire who left the workforce in November,...