Search found 290 matches

by chicagoan23
Tue Aug 21, 2018 2:47 pm
Forum: Local Chapters and Bogleheads Community
Topic: Post your Financial Milestone Announcements Here
Replies: 482
Views: 48282

Re: Post your Financial Milestone Announcements Here

Hit $3.25M last night, not including cash holdings. Was hoping to get to that number by February of next year, but the stock market's rise moved things along more quickly. Keeping the portfolio at a 50/50 allocation because I'm concerned about the inevitable downturn and, well, quite frankly, I'm n...
by chicagoan23
Tue Aug 21, 2018 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Best way to short the equity market
Replies: 97
Views: 5957

Re: Best way to short the equity market

I would think, without checking, 2019 leaps have a pretty high premium now. Define "high". I think it would be one of the most efficient. You are basically buying pure downside volility. To extend on my prior posts, consider 2 people. The first person has a slight opinion that the markets will have...
by chicagoan23
Fri Aug 17, 2018 11:46 am
Forum: Local Chapters and Bogleheads Community
Topic: Post your Financial Milestone Announcements Here
Replies: 482
Views: 48282

Re: Post your Financial Milestone Announcements Here

Hit $3.25M last night, not including cash holdings. Was hoping to get to that number by February of next year, but the stock market's rise moved things along more quickly. Keeping the portfolio at a 50/50 allocation because I'm concerned about the inevitable downturn and, well, quite frankly, I'm n...
by chicagoan23
Tue Aug 14, 2018 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Mid 30s Crisis: Personal budget, savings and goals
Replies: 36
Views: 7060

Re: Mid 30s Crisis: Personal budget, savings and goals

Sorry this is a bit long and rambling. I’ve had a lot on my mind.... I’m looking for general guidance and suggestions as I feel like I’m going through an early midlife financial crisis. I think part of it is just my wiring as I always feel like I should be doing better and don’t have enough..... We...
by chicagoan23
Fri Jul 27, 2018 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Starting from scratch
Replies: 17
Views: 1907

Re: Starting from scratch

I'm in the minority around here but I always like to share my opinion/experience on student loans, having had them for 20+ years. My advice--do not worry about the student loans. You have much higher priorities. First, your largest single annual expense for the rest of your husband's working life wi...
by chicagoan23
Thu Jul 05, 2018 4:25 pm
Forum: Investing - Theory, News & General
Topic: Invest less and pay down mortgage ?
Replies: 23
Views: 1718

Re: Invest less and pay down mortgage ?

Hi, New to the forum but an avid reader of it. Have seen this topic in several places but wanted to give my specs and get advice. —I’m 49, have about 600k invested in a 3-fund approach. —Have about 34k left on a 30year fixed mortgage, 3.375% —I regularly max out my Roth IRA but don’t make enough to...
by chicagoan23
Tue Jul 03, 2018 5:21 am
Forum: Investing - Help with Personal Investments
Topic: Newbie here needing portfolio review
Replies: 18
Views: 1427

Re: Newbie here needing portfolio review

For instance, last tax year I was hit with over 20K in capital gains loss and that worries me because the market has been doing well. This may be a good thing, as capital losses help you to reduce taxes. Assuming that you have an appropriate asset mix and are invested in low cost funds (a big assum...
by chicagoan23
Fri Jun 29, 2018 3:58 am
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 161
Views: 15252

Re: Did you celebrate when you finally hit $1m?

Still so surprised to see the bulk (90%?) of replies saying it's not significant, nor did they feel the need to celebrate in any way, or that they barely noticed. I understand that for us, those who are disciplined enough (and in the normal-ish income range) that our lifestyle doesn't change after ...
by chicagoan23
Tue Apr 24, 2018 6:53 am
Forum: Personal Finance (Not Investing)
Topic: Can I retire at age 40?
Replies: 158
Views: 18046

Re: Can I retire at age 40?

I realize that is crazy talk but I think I can pull it off... that is only 14 months away. I've been very fortunate in investing and business. Negatives to early retirement: 4 children under age 10 and future expenses for them (college etc) healthcare for 6. Positives: House and 2 newer vehicles pa...
by chicagoan23
Mon Apr 23, 2018 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Can I retire at age 40?
Replies: 158
Views: 18046

Re: Can I retire at age 40?

I realize that is crazy talk but I think I can pull it off... that is only 14 months away. I've been very fortunate in investing and business. Negatives to early retirement: 4 children under age 10 and future expenses for them (college etc) healthcare for 6. Positives: House and 2 newer vehicles pa...
by chicagoan23
Wed Apr 18, 2018 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated Taxes Question -- Help!
Replies: 14
Views: 1151

Re: Estimated Taxes Question -- Help!

It seems to me that you should give this accountant a raise. You didn't have to pay in December what you are now paying in April towards your 2017 tax liability, so you have had the use of that money for four months longer than you would have if you were the one computing estimates. You also didn't ...
by chicagoan23
Wed Apr 04, 2018 7:45 pm
Forum: Local Chapters and Bogleheads Community
Topic: Post your Financial Milestone Announcements Here
Replies: 482
Views: 48282

Re: Post your Financial Milestone Announcements Here

According to my social security records (and 2018 paychecks) I just hit $3 million in career wages and self-employment earnings, dating back 28 years to when I was making $4.25/hr at age 15. Very interesting to see that progression, and compare it to current net worth/portfolio size. I wish I had k...
by chicagoan23
Thu Mar 22, 2018 5:22 pm
Forum: Investing - Help with Personal Investments
Topic: Best way to short the equity market
Replies: 97
Views: 5957

Re: Best way to short the equity market

... then can you explain why it isn't OK to use the inverse ETFs, especially those that use leverage? Yes, they are designed for daily trading but a downtrend in a leveraged ETF would be very profitable anyway, even with tracking errors and fees. Because they re-balance daily you don't get the inve...
by chicagoan23
Thu Mar 22, 2018 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Best way to short the equity market
Replies: 97
Views: 5957

Re: Best way to short the equity market

I plan to short the equity market; however, I don't see a great investment vehicle to do this. I have a 401k, roth IRA, and a traditional cash account. So 2 of the 3 will not allow margin to short stocks. I looked at inverse ETFs such as "SH" but those are created specifically for daily trading and...
by chicagoan23
Wed Mar 14, 2018 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Review of my full portfolio - am I on the right track?
Replies: 14
Views: 1511

Re: Review of my full portfolio - am I on the right track?

Outstanding write up on the 64/40 allocation by Bernstein. http://web.archive.org/web/20061214061904/http:/dfmadvisors.com/pdf/Bernstein6040.pdf Such a good read: Consider the following analysis conducted by Jeremy Siegel of the Wharton School of the University of Pennsylvania, who studied long-ran...
by chicagoan23
Wed Mar 14, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Review of my full portfolio - am I on the right track?
Replies: 14
Views: 1511

Re: Review of my full portfolio - am I on the right track?

1. I think of my other assets (home equity, cars) as part of my net worth largely because they are things that will have value to me no matter what my portfolio does. In other words, they allow me to be more aggressive with my portfolio than I would be if I didn't own those assets. If you have home ...
by chicagoan23
Mon Mar 12, 2018 5:42 pm
Forum: Local Chapters and Bogleheads Community
Topic: Post your Financial Milestone Announcements Here
Replies: 482
Views: 48282

Re: Post your Financial Milestone Announcements Here

According to my social security records (and 2018 paychecks) I just hit $3 million in career wages and self-employment earnings, dating back 28 years to when I was making $4.25/hr at age 15. Very interesting to see that progression, and compare it to current net worth/portfolio size.
by chicagoan23
Mon Mar 12, 2018 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Amount saved by age
Replies: 58
Views: 8834

Re: Amount saved by age

It is challenging to keep a high savings rate. It requires an engineered lifestyle, understanding exactly where the big costs are and how to minimize them so you don't have to worry about the little stuff. We don't coupon clip. Minimalism is enormously helpful in this efficient lifestyle, which we'...
by chicagoan23
Mon Mar 12, 2018 10:47 am
Forum: Investing - Help with Personal Investments
Topic: Amount saved by age
Replies: 58
Views: 8834

Re: Amount saved by age

I know everyone’s circumstances are different; however, is there a general rule of thumb as to how much you should aim to save by age group? I am a young investor fyi (29). Thanks all. So much is dependent on salary that there isn't a rule of thumb that applies to everyone from a dollar value basis...
by chicagoan23
Tue Feb 27, 2018 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: What Now?
Replies: 2
Views: 608

Re: What Now?

I would stop the Roth, stop the CDs/downpayment fund and max out the employer 401(k). After that, I'd look for other tax-advantaged space to take advantage of, including an HSA. I'd even cash in some of the CDs to live off of in order to fully fund those two pre-tax accounts. There's no reason for y...
by chicagoan23
Tue Feb 27, 2018 2:22 pm
Forum: Investing - Theory, News & General
Topic: Personal rules for buying in a down market?
Replies: 55
Views: 4323

Re: Personal rules for buying in a down market?

I am confident that I can reach my long-term financial goals at a roughly 65/35 allocation, and I really don't ever want to drop my equities allocation below that, no matter how much money I have. All new money goes in according to that allocation pretty much immediately. If the stock market crashe...
by chicagoan23
Tue Feb 27, 2018 1:12 pm
Forum: Investing - Theory, News & General
Topic: Personal rules for buying in a down market?
Replies: 55
Views: 4323

Re: Personal rules for buying in a down market?

I am confident that I can reach my long-term financial goals at a roughly 65/35 allocation, and I really don't ever want to drop my equities allocation below that, no matter how much money I have. All new money goes in according to that allocation pretty much immediately. If the stock market crashes...
by chicagoan23
Mon Feb 26, 2018 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Help with GIANT interest car loan (28%)
Replies: 44
Views: 5734

Re: Help with GIANT interest car loan (28%)

Trying to help my sister in law. She has a terrible credit record and got a car at 28% interest! She got the loan for 60 months and still has 3 years to go. Still owes around $13,500 from original loan of $18k. She already had a loan on her 401k that she is still paying down. She has no CC and no b...
by chicagoan23
Wed Feb 21, 2018 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Interested on opinions on paying off low-rate ARM
Replies: 23
Views: 1087

Re: Interested on opinions on paying off low-rate ARM

You can't predict the future, but you do know that you have fixed-rate debt at an interest rate of 2.4% for a period of five years. To me that note has significant value, as a five-year ARM taken today would have an APR of around 4.5% or so. I would keep that note until the day it resets. It may res...
by chicagoan23
Sun Feb 18, 2018 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: I reduced my exposure to US stocks before the correction.
Replies: 39
Views: 4597

Re: I reduced my exposure to US stocks before the correction.

I'm a huge fan of this forum! My portfolio has been pretty conservative for my age (I'm 43yo): 50/50. I've found the books written by John Bogle incredibly inspiring, clear and well written. I know that Mr. Bogle is not a fan of investing in overseas market because US companies do make money abroad...
by chicagoan23
Fri Feb 16, 2018 9:04 pm
Forum: Investing - Help with Personal Investments
Topic: Did you learn anything from the market correction?
Replies: 160
Views: 13090

Re: Did you learn anything from the market correction?

I actually learned a few things: 1. The volatility products are terrible and I am happy to have stayed away from them, but they aren’t going to have a big impact long-term when the underlying economy and credit markets are strong. They are just trader’s instruments. Noise. 2. Taking action on Really...
by chicagoan23
Thu Feb 15, 2018 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Number at which to stop worrying
Replies: 169
Views: 18993

Re: Number at which to stop worrying

I’ll give you an honest answer — $15 million. That leaves me with $10 million to buy TIPS to cover $250k per year (infl adj) for the next 40 years. And $5 million to aggressively grow for my kids and grandkids. But I’ll probably quit before I hit that number. Maybe. That's the number that gets you ...
by chicagoan23
Tue Feb 13, 2018 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Number at which to stop worrying
Replies: 169
Views: 18993

Re: Number at which to stop worrying

This is different from other threads which talk about the number for early retirement. I want to continue working for the foreseeable future, but keep thinking at what level of NW could I relax a bit and not worry too much. Family of four in a MCOL area and single earner. Kids yet to go to college....
by chicagoan23
Mon Feb 12, 2018 3:59 pm
Forum: Personal Consumer Issues
Topic: I’m not renewing my Costco membership.
Replies: 80
Views: 8427

Re: I’m not renewing my Costco membership.

Historically Costco's entire annual profit is represented by its total annual membership fees. Put another way, everything they sell is more or less at cost, net of expenses. According to their most recent annual report, total revenue from membership fees was $2.85 billion, and net income was $2.67...
by chicagoan23
Mon Feb 05, 2018 11:02 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6759
Views: 1470348

Re: U.S. stocks in freefall

Let the short VIX speculators have their fun (or misery) but that activity doesn't mean anything with respect to underlying intrinsic value or market fundamentals. Actually it might. The VIX contracts were probably hedged with underlying, and leaking into prior returns elsewhere (and thus causing c...
by chicagoan23
Mon Feb 05, 2018 6:51 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6759
Views: 1470348

Re: U.S. stocks in freefall

It is comforting that Vanguard Total Bond Market Index was up 47 bps today and TIPs were up about 40 bps.....at least that is a positive sign for me. A flight to safety during a Really Bad Day--even when interest rates are still expected to rise--is exactly why you hold "safe" assets. Let the short ...
by chicagoan23
Mon Feb 05, 2018 4:25 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6759
Views: 1470348

Re: U.S. stocks in freefall

For those who are waiting to move money into ETFs, now is an excellent opportunity to set unusually low limit orders. With cascading down days and flash crashes, if you set a limit order that is 5% or even 10% below market prices, you might get lucky and have that executed before an almost immediate...
by chicagoan23
Fri Feb 02, 2018 6:34 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6759
Views: 1470348

Re: U.S. stocks in freefall

On a day like this, some people will see their portfolio lose in value similar to the cost of a luxury European car. I believe today is my first ever day down $25k+....not quite luxury European car territory but maybe a Chevy. And yet I'm pleased because due to some recent rebalancing my total port...
by chicagoan23
Fri Feb 02, 2018 3:03 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6759
Views: 1470348

Re: U.S. stocks in freefall

Anybody know the reason for the fall? I am confused as the US economy is growing, the job market is tight, earnings are decent and the world economy seems to be picking up. Internationally Oil prices are increasing as is demand, there is no real war that can or may break out. Syria, Iraq, Afghanist...
by chicagoan23
Fri Feb 02, 2018 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Need some investment suggestion: will market crash big?
Replies: 21
Views: 2735

Re: Need some investment suggestion: will market crash big?

Hi everyone, I am new to this forum and I would appreciate some advice on my current financial status. Because of some really bad investing experience my parents had, I am away from all different kind of investment for many years. Saving the money in bank is the only approach I manage my money. The...
by chicagoan23
Wed Jan 31, 2018 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Should I stop contributing to 401(k) to pay off debt
Replies: 44
Views: 3066

Re: Should I stop contributing to 401(k) to pay off debt

Dave Ramsey would say yes - stop contributing to your retirement until your debt is paid off. You can see what he calls his 'baby steps' at https://www.daveramsey.com/baby-steps/ I would probably split the difference somewhat, and contribute only enough to retirement to get any employer match while...
by chicagoan23
Wed Jan 31, 2018 12:28 pm
Forum: Investing - Theory, News & General
Topic: When did the bad news start in 2008?
Replies: 135
Views: 14032

Re: When did the bad news start in 2008?

Hello All, Long-time lurker here and have been learning a lot from everyone in this forum, so thank you. I got into investing in Q3 last year with a simple 80/20 stocks/bonds portfolio and have been extremely happy with the returns so far in this extremely bullish market. I understand that the long...
by chicagoan23
Tue Jan 30, 2018 6:35 pm
Forum: Investing - Theory, News & General
Topic: When did the bad news start in 2008?
Replies: 135
Views: 14032

Re: When did the bad news start in 2008?

Hello All, Long-time lurker here and have been learning a lot from everyone in this forum, so thank you. I got into investing in Q3 last year with a simple 80/20 stocks/bonds portfolio and have been extremely happy with the returns so far in this extremely bullish market. I understand that the long...
by chicagoan23
Tue Jan 30, 2018 10:17 am
Forum: Investing - Help with Personal Investments
Topic: I bought a stock today - Redfin (RDFN)
Replies: 288
Views: 23437

Re: I bought a stock today - Redfin (RDFN)

Tough crowd in here but I have to say I'm with the OP. I think it's mostly just a reaction of a bunch of tortoises seeing a hare. People here are very much against single stock picks or high concentration and really prefer the slow and steady approach. Neither is wrong, and it's not binary either. ...
by chicagoan23
Mon Jan 29, 2018 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: I bought a stock today - Redfin (RDFN)
Replies: 288
Views: 23437

Re: I bought a stock today - Redfin (RDFN)

I am pretty confident long term, but only because I did my DD. It's kinda like walking into an organic chemistry test after you spend months & months studying the material. What does your due diligence reveal about a 5.5% drop today? It is a reminder to ignore the day to day and focus on the big pi...
by chicagoan23
Sat Jan 27, 2018 8:24 am
Forum: Investing - Help with Personal Investments
Topic: Cash heavy portfolio
Replies: 28
Views: 3057

Re: Cash heavy portfolio

As to the other question earlier in the thread, I fully appreciate I need to increase equity exposure at some point (and don’t see stocks as “a fundamentally bad investment”). More of a question of timing and execution given current market conditions. Appreciate that the market digests all availabl...
by chicagoan23
Fri Jan 26, 2018 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: I bought a stock today - Redfin (RDFN)
Replies: 288
Views: 23437

Re: I bought a stock today - Redfin (RDFN)

Honest question: what was so compelling about the price you paid today that made it irresistible for you to devote 20% of your portfolio to RDFN? Do you think people are missing something, or do you think the future prospects are so bright that it is a good deal at almost any price? You mentioned th...
by chicagoan23
Fri Jan 26, 2018 7:23 pm
Forum: Investing - Help with Personal Investments
Topic: Cash heavy portfolio
Replies: 28
Views: 3057

Re: Cash heavy portfolio

You probably already know this, but all of the factors that you listed are well known and widely considered, and the risks associated with each of them are part of how this stock market is priced. That doesn’t mean you are wrong, but it also doesn’t mean you are right. So with that out of the way, w...
by chicagoan23
Wed Jan 24, 2018 12:38 pm
Forum: Investing - Theory, News & General
Topic: In what ways could BogleHeads be badly wrong ?
Replies: 244
Views: 24815

Re: In what ways could BogleHeads be badly wrong ?

The broad BogleHead investment philosophy has (or would have) served investors well for the last few decades. i.e. establish a stock/bond mix in line with age/risk; invest in a broad, low cost index funds; hold and rebalance over cycles. Is that going to be true going forward ? Whats the possibilit...
by chicagoan23
Mon Jan 22, 2018 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Am I being greedy?
Replies: 51
Views: 6601

Re: Am I being greedy?

I have more than doubled my investments since I started investing in 2012. It is all thanks to this forum and my own dumb luck of getting in at the right time. The risk of being 100% invested in stocks has paid off well. With that said, I can't help but always wanting to reach the next milestone. I...
by chicagoan23
Mon Jan 22, 2018 11:45 am
Forum: Personal Consumer Issues
Topic: Kauai Travel Tips
Replies: 43
Views: 2640

Re: Kauai Travel Tips

- Rent a convertible. The drives are beautiful. 1. A word of caution: My wife and I rented a convertible and: (i) were sunburned almost immediately; and (ii) almost got stuck in the mud on several drives. Hard to have a convertible with kids but I'd avoid minivans too....try to get a Jeep if you ar...
by chicagoan23
Wed Jan 17, 2018 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice - Investing 100K in vanguard emerging/value/bond funds today, am I CRAZY?
Replies: 14
Views: 2123

Re: Portfolio Advice - Investing 100K in stocks today, am I CRAZY?

1. My bad, I should be in 24% tax bracket ($165K to $315K) My income tax last year was about 64K. Please note I am a mid westerner (Chicago) and income levels weren't in this range until 2016 when I moved to PNW. 2. My spouse is working. I agree I should buy term life insurance given the liabilitie...
by chicagoan23
Wed Jan 17, 2018 8:12 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice - Investing 100K in vanguard emerging/value/bond funds today, am I CRAZY?
Replies: 14
Views: 2123

Re: Portfolio Advice - Investing 100K in stocks today, am I CRAZY?

Some more questions..... 1. You are in the narrow tax bracket of $416,700 to $470,700 in taxable income, putting gross income into the $500k+ range, and yet you have a total of $300k saved at age 38, and a net worth of $550k including home equity? What is your annual spending? How much did you pay i...
by chicagoan23
Fri Jan 12, 2018 12:58 pm
Forum: Personal Consumer Issues
Topic: Almost a pathological fear of debt, to my detriment?
Replies: 79
Views: 5413

Re: Almost a pathological fear of debt, to my detriment?

Still, I'm wondering if there are things I can do in terms of changing my perspective or just getting okay with at least holding on to SOME debt when it's at such a low interest rate, like my car loan? Credit and insurance make the world go 'round. There's nothing wrong with borrowing money if it's...
by chicagoan23
Thu Jan 11, 2018 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off 6.5% Student Loan or Invest
Replies: 22
Views: 1497

Re: Pay off %6.5 Student Loan or Invest

Do you max out your tax-favored accounts? If you have a high income, it may make sense to keep your student loan debt--even at a high rate--in order to max out tax-favored accounts such as a 401(k) and IRAs. Lowering your biggest expense (taxes) might be worth adding on a new expense (student loan d...