Search found 436 matches

by Grogs
Fri Nov 02, 2018 6:06 am
Forum: Investing - Theory, News & General
Topic: An extreme example of inflation and a mortgage
Replies: 37
Views: 3188

Re: An extreme example of inflation and a mortgage

1) As interest rates go up it is more expensive for someone to buy your home so that puts downward pressure on housing prices. As I recall it was not unusual for housing prices to not keep up with high inflation but you could check on that. In the US, things would be different than in the 80s. Back...
by Grogs
Mon Oct 29, 2018 6:12 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 7839
Views: 1608898

Re: U.S. stocks in freefall

I took advantage of the down markets and I did my first ever TLH yesterday. I traded all of my VTSAX for the year except one lot from March into VIMAX (mid-cap fund) for a loss of ~ $1550. Right after I put in my order, the market started shooting up and it looked like some of my lots might sell fo...
by Grogs
Sat Oct 27, 2018 9:11 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 7839
Views: 1608898

Re: U.S. stocks in freefall

I took advantage of the down markets and I did my first ever TLH yesterday. I traded all of my VTSAX for the year except one lot from March into VIMAX (mid-cap fund) for a loss of ~ $1550. Right after I put in my order, the market started shooting up and it looked like some of my lots might sell for...
by Grogs
Thu Oct 25, 2018 4:14 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 7839
Views: 1608898

Re: U.S. stocks in freefall

Makes me think of the Bradbury short story "All Summer in a Day" where the sun only comes out one day a year on Venus... That was kind of a sad story. It's only once every seven years. One of my favorites. https://www.google.com/url?sa=t&source=web&rct=j&url=http://staff.esuhsd.org/danielle/English...
by Grogs
Fri Oct 12, 2018 12:16 pm
Forum: Investing - Theory, News & General
Topic: Morse Code Glide Path
Replies: 32
Views: 1817

Re: Morse Code Glide Path

I use different starting and ending points, but I use a similar formula in my spreadsheet. I got the idea from a discussion with klangfool at some point. We have very different ideas on a reasonable asset allocation--I am much more aggressive--but I appreciated his glidepath theory. I'm doing somet...
by Grogs
Fri Oct 05, 2018 9:41 am
Forum: Personal Finance (Not Investing)
Topic: [Ally online savings now at 1.80%]
Replies: 246
Views: 42088

Re: [Ally online savings now at 1.80%]

I checked Ally this morning and they're advertising 1.90% for their online savings. When I log on my account is still showing 1.85%, but I'm assuming it will update in a day or two.
by Grogs
Thu Oct 04, 2018 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Amazon Prime/Whole Foods/AMEX Blue Cash Preferred dilemma
Replies: 26
Views: 2216

Re: Amazon Prime/Whole Foods/AMEX Blue Cash Preferred dilemma

Conveniently ignoring the $200 sign up bonus. $200 is an awful sign up bonus for a card with a $95 annual fee... I think 4.4% is pretty good. What do you recommend for grocery spend? It’s 4.4% if you spend exactly $6000. It is worse if you spend more or less than $6000. I just don’t like having a $...
by Grogs
Sat Aug 25, 2018 3:01 pm
Forum: Investing - Theory, News & General
Topic: Annual Savings to Expenses Ratio: Meaningful Financial Statistic?
Replies: 22
Views: 1232

Re: Annual Savings to Expenses Ratio: Meaningful Financial Statistic?

And your scheme makes it even easier for rich people to put up impressive numbers. Lets look at 2 examples a) 1 million dollars. 400k in taxes. 100k spend. 500k savings. 50% savings rate. 5:1 savings rate b) 50k income. 0k in taxes. 25k spend. 25k savings. 50% savings rate. 1:1 savings rate. But wh...
by Grogs
Sat Aug 25, 2018 10:42 am
Forum: Investing - Help with Personal Investments
Topic: Breaking Up and Staying On Good Terms with an Advisor
Replies: 42
Views: 5254

Re: Breaking Up and Staying On Good Terms with an Advisor

Congratulations! When I switched from my high-fee advisor to VG back in 2015, I had similar concerns. When I opened the account at VG, they advised me that the funds my advisor had me in were complex, and that it would be easier to have my old advisor put everything in cash before the move. I rather...
by Grogs
Tue Aug 21, 2018 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: How common is ACH fraud on checking accounts?
Replies: 21
Views: 5674

Re: How common is ACH fraud on checking accounts?

I had a fraudulent ACH charge on an account once. It was an account I rarely ever use anymore, and I keep less than $50 in it. I noticed something was amiss when I logged in and saw the account had gone negative. Someone had tried to pay their mortgage from my account, but that payment had bounced b...
by Grogs
Tue Aug 21, 2018 2:49 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 7839
Views: 1608898

Re: U.S. stocks in freefall

I imagine I'm largely to blame for today's highs. I deposited a large check Friday, and the funds were finally available to purchase VTSAX today. I also have contributions scheduled for the 24th and 28th, so I'm sure those will be record highs as well. :D
by Grogs
Tue Aug 21, 2018 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Early Retirement: how to get a lease without income
Replies: 9
Views: 1460

Re: Early Retirement: how to get a lease without income

My family had a lot of rentals. We never checked income beyond maybe asking them where they worked. If the answer was McDonalds, and they were trying to rent a $1000/mo. house, then we probably would ask a few more questions. When there was someone who we didn't feel really confident was going to be...
by Grogs
Tue Aug 21, 2018 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding Rental Depreciation
Replies: 9
Views: 521

Re: Understanding Rental Depreciation

TurboTax should be keeping track of the depreciation (if you properly entered the rental income into TurboTax). If you do a test account with TT and enter a sale of the property (as if you sold the property), then TurboTax will show you the amount of depreciation as it guides you down a different c...
by Grogs
Mon Aug 20, 2018 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Military career/college options (engineering - nukes?)
Replies: 45
Views: 2719

Re: Military career/college options (engineering - nukes?)

I can probably provide some info as I have both a military (Army) background and nuclear engineering PhD. I got my BS in physics and then 10 years later went back for an MS/PhD in NE. I thought it was a fairly easy transition to make because in some ways NE is like physics lite. They study a lot abo...
by Grogs
Sun Aug 19, 2018 2:11 pm
Forum: Investing - Theory, News & General
Topic: The problem with 'saving receipts' for future qualified HSA withdrawals
Replies: 24
Views: 2827

Re: The problem with 'saving receipts' for future qualified HSA withdrawals

To me, it seems like a bet on whether one will or won't have substantial medical costs. I hedge my bets towards the "will" category, but it's a bet I will be happy to lose. If so, it probably means that I've reached my senior years fairly healthy and with lower than anticipated medical costs. That s...
by Grogs
Sun Aug 19, 2018 7:32 am
Forum: Personal Finance (Not Investing)
Topic: Edward Jones rep door knocking
Replies: 90
Views: 8926

Re: Edward Jones rep door knocking

isn't it better to be invested in a high expense ratio investment than continuing their trend of not investing? source (see number 4): https://thebestschools.org/magazine/15-logical-fallacies-know/ You are saying in effect, "They either can invest in high cost EJ funds, or not at all." Nope, there'...
by Grogs
Sun Aug 19, 2018 7:20 am
Forum: Personal Finance (Not Investing)
Topic: Edward Jones rep door knocking
Replies: 90
Views: 8926

Re: Edward Jones rep door knocking

Yeah, this is how I met the local EJ rep years ago. She came by and knocked on the door one evening. She was a nice, attractive younger lady and we just talked about various things for a few minutes and then she left me her card and told me that if I needed any help with investments to give her a c...
by Grogs
Sun Aug 19, 2018 6:32 am
Forum: Personal Finance (Not Investing)
Topic: Edward Jones rep door knocking
Replies: 90
Views: 8926

Re: Edward Jones rep door knocking

I would like to ask a question without getting roasted over a fire. If you belong to this forum you are usually pretty knowledgable on investments and the importance of saving. I continuously read on here that Edward Jones is basically evil and that 99% of people don't need to have a financial advi...
by Grogs
Sat Aug 18, 2018 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Edward Jones rep door knocking
Replies: 90
Views: 8926

Re: Edward Jones rep door knocking

Yeah, this is how I met the local EJ rep years ago. She came by and knocked on the door one evening. She was a nice, attractive younger lady and we just talked about various things for a few minutes and then she left me her card and told me that if I needed any help with investments to give her a ca...
by Grogs
Sat Aug 18, 2018 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate per month???
Replies: 68
Views: 6240

Re: Savings rate per month???

Question: For those including the employer match, are you including it in both the numerator and denominator? Yes, of course I don't. My logic is that the match isn't money I could just go out and spend on things if I wanted, just something extra that gets added to retirement accounts. I view it as...
by Grogs
Sat Aug 18, 2018 7:44 am
Forum: Investing - Theory, News & General
Topic: For those of you in the Accumulation Phase - How often do you check?
Replies: 81
Views: 9436

Re: For those of you in the Accumulation Phase - How often do you check?

Probably every other day, it's just too easy. Everyone month I tally in an Excel spreadsheet to see if I'm outside of rebalancing bands in order to direct next month's contributions (my form of active management!) Everyone here is talking about a spreadsheet this and a spreadsheet that. Why can't a...
by Grogs
Fri Aug 17, 2018 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Automatic Investment in a Taxable Account
Replies: 20
Views: 1961

Re: Automatic Investment in a Taxable Account

I’m not aware of any accumulating (no dividend) investment methods in the US. I am confused by this statement. Suppose if you buy a stock, but never sell it, I assume the stock will have unrealized gain and loss, but incur minimal dividend or interest. Is my understanding correct? Total stock marke...
by Grogs
Fri Aug 17, 2018 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Savings rate per month???
Replies: 68
Views: 6240

Re: Savings rate per month???

Married, both 30, no kids (yet). I calculate our savings rate on a gross household (pre-tax), annual basis: 25-27% split between our 401ks and Roth IRAs. We both get a small ($1,200 per person) employer contribution to our 401ks--factored into the savings rate--since our employer also provides a we...
by Grogs
Fri Aug 17, 2018 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: PITI 20% to 30% lower than renting
Replies: 41
Views: 2863

Re: PITI 20% to 30% lower than renting

Grogs, <<To me, it would be more realistic to assume that both rents and home prices would appreciate at about the rate of inflation. >> That assumption only makes the numbers work out even better. The nominal $1,800 per month is not affected by the increases in the rent and house price. <<but that...
by Grogs
Fri Aug 17, 2018 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: PITI 20% to 30% lower than renting
Replies: 41
Views: 2863

Re: PITI 20% to 30% lower than renting

Folks, This thread is to go over the number and calculation on using PITI to decide whether to buy. Aka, an explanation of my model and system. 1) This is for folks that the house not as an investment but purely as an expense. 2) Not house appreciation is assumed and used to justify the house purch...
by Grogs
Wed Aug 15, 2018 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Experian email alert! "Your score decreased"
Replies: 37
Views: 3780

Re: Experian email alert! "Your score decreased"

The funniest one for me was when I bought my condo. Month 1 when I bought it, my score dropped 30 points. Month 2 after the first payment, my score went up 50 points. I had half the liquid assets and a large new mortgage payment I had to make every month, but I was somehow a better credit risk. :?:...
by Grogs
Wed Aug 15, 2018 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Should I accept a large cash gift from my mother?
Replies: 44
Views: 5963

Re: Should I accept a large cash gift from my mother?

After being out of town for six weeks, I finally got a chance to sit down with my mother and it looks like the question has worked itself out, at least for now. I talked to her on the phone a few weeks ago, and she mentioned that she had opened another account because of FDIC limits. Apparently she ...
by Grogs
Wed Aug 15, 2018 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation across 401k/taxable/Roth ira
Replies: 3
Views: 373

Re: Asset allocation across 401k/taxable/Roth ira

Seems like you have good funds in the 401k. Unless it's a really bad plan (high admin fees for example) I would just put more in there after you Max the Roth. I keep my Roth 100% stock funds for the growth and keep all of my bonds in my 401k. This will likely be better from a tax standpoint because ...
by Grogs
Sun Aug 12, 2018 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Experian email alert! "Your score decreased"
Replies: 37
Views: 3780

Re: Experian email alert! "Your score decreased"

The funniest one for me was when I bought my condo. Month 1 when I bought it, my score dropped 30 points. Month 2 after the first payment, my score went up 50 points. I had half the liquid assets and a large new mortgage payment I had to make every month, but I was somehow a better credit risk. :?: ...
by Grogs
Sun Aug 12, 2018 8:58 am
Forum: Personal Finance (Not Investing)
Topic: SS 2019 COLA could be close to 3%
Replies: 55
Views: 6035

Re: SS 2019 COLA could be close to 3%

Isn’t the whole point of COLA to track inflation? If it’s doing its job effectively then you shouldn’t be excited by a 3% increase because everything is 3% more expensive (or am I missing something). I don't think you're missing anything. Of course, your personal rate of inflation is probably diffe...
by Grogs
Sun Aug 12, 2018 6:41 am
Forum: Personal Finance (Not Investing)
Topic: House Value & Mortgage as a Percentage of Net Worth
Replies: 83
Views: 6328

Re: House Value & Mortgage as a Percentage of Net Worth

OP, PITI versus gross pay and whatever is irrelevant to me. I start with what I want in housing. Then, I decide whether rent or buy make the most sense in term of cost. I would only buy if A) The PITI with 20% down payment and 30 years fixed rate mortgage is 20% to 30% lowered than renting. B) My n...
by Grogs
Sun Aug 12, 2018 6:04 am
Forum: Personal Finance (Not Investing)
Topic: House Value & Mortgage as a Percentage of Net Worth
Replies: 83
Views: 6328

Re: House Value & Mortgage as a Percentage of Net Worth

I think 25% on housing is a pretty good rule of thumb. Like the poster above said though, if your circumstances are different, that number could vary a bit. If you already have a large percentage of your gross committed to other costs (like childcare, education, student loans, etc.) then it should p...
by Grogs
Sat Aug 11, 2018 10:26 am
Forum: Investing - Theory, News & General
Topic: Average Investor Return Chart
Replies: 10
Views: 1358

Re: Average Investor Return Chart

Our company gave a presentation a few years ago when they were discussing changes to the retirement plan. One of their cons for switching to a defined contribution plans was that "investors underperform the market by 180 basis points when investing on their own." I was highly skeptical of that numbe...
by Grogs
Sat Aug 11, 2018 9:35 am
Forum: Personal Finance (Not Investing)
Topic: PMI at 80% question
Replies: 7
Views: 691

Re: PMI at 80% question

AerialWombat is correct >22% they have to drop PMI. You could call the servicer of the loan when if the equity is >20% and ask them if they will drop PMI. Many times they won't even require a new appraisal. Is this the only requirement? I've seen several posters state that according to their mortga...
by Grogs
Sat Aug 11, 2018 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Should I accept a large cash gift from my mother?
Replies: 44
Views: 5963

Re: Should I accept a large cash gift from my mother?

Any holdings she has that are TOD or similarly have a beneficiary listed move to the designated person upon presentation of a death certificate. No probate, no executor. In my experience bank or credit unions are very fast while fund companies may take time if you don't use the same company/adviser...
by Grogs
Sat Aug 11, 2018 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Should I accept a large cash gift from my mother?
Replies: 44
Views: 5963

Re: Should I accept a large cash gift from my mother?

We faced a similar situation a while back with my wife’s mother. Ultimately we remedied it by buying a new home together where we both could live - separate living spaces for privacy, but we were there to care for her as she aged. It was wonderful for all of us. I’ll note that the house was entirel...
by Grogs
Fri Aug 10, 2018 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Is your monthly expense really that stable or in reality, pretty volatile?
Replies: 46
Views: 3483

Re: Is your monthly expense really that stable or in reality, pretty volatile?

I have the surplus cash flow to take care of these, but what's sort of bothering/annoying me i guess is these on the fly expenses are throwing my monthly investment ritual off balance - e.g. i expect to invest $X amount in taxable, but now can only do $X-$3000. I suppose that's what extra savings i...
by Grogs
Fri Aug 10, 2018 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Should I accept a large cash gift from my mother?
Replies: 44
Views: 5963

Re: Should I accept a large cash gift from my mother?

Is she properly insured? Besides medical, are all her remaining properties insured for the correct amount and does she have liability insurance? With renters in the properties, there is the chance of damage (either from them or from weather) and for being sued if someone falls/gets hurt. She has a ...
by Grogs
Fri Aug 10, 2018 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Should I accept a large cash gift from my mother?
Replies: 44
Views: 5963

Re: Should I accept a large cash gift from my mother?

+1 to the poster above who said that if the time comes, mom probably won't want to qualify for medicaid and would prefer to spend her money for care You say she is safe from estate taxes but haven't given much information about her assets. Will she still be safe if she dies after the increased exem...
by Grogs
Fri Aug 10, 2018 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Should I accept a large cash gift from my mother?
Replies: 44
Views: 5963

Re: Should I accept a large cash gift from my mother?

Are there any other issues that I have missed? Suggestions on which way you would go, or other variables to consider? Thanks! As far as I can tell, you've covered all the angles. On balance, I think if I were in your shoes I'd probably "let" your mom give you at least a good chunk of the potential ...
by Grogs
Fri Aug 10, 2018 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Should I accept a large cash gift from my mother?
Replies: 44
Views: 5963

Re: Should I accept a large cash gift from my mother?

Thanks, lots of good questions/info. I'll answer this one first because it asked several pertinent background questions. Hi all, When my father died, my mother was left with quite a few rental properties. She has since decided that she doesn't care too much for the stresses of being a landlord, and ...
by Grogs
Fri Aug 10, 2018 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Should I accept a large cash gift from my mother?
Replies: 44
Views: 5963

Re: Should I accept a large cash gift from my mother?

She should keep it. What happens if you die first or become incapacitated and she needs it. She could easily live 20-30 more years with unexpected expenses, not only major illnesses but very expensive dental work such as discussed in another thread. What if she has an large unanticipated expense (n...
by Grogs
Fri Aug 10, 2018 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Should I accept a large cash gift from my mother?
Replies: 44
Views: 5963

Should I accept a large cash gift from my mother?

Hi all, When my father died, my mother was left with quite a few rental properties. She has since decided that she doesn't care too much for the stresses of being a landlord, and so this year she has sold off most of the big ones. It wasn't ideal from a tax standpoint, but the stress was affecting h...
by Grogs
Fri Aug 10, 2018 6:25 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs. Traditional 401k
Replies: 36
Views: 2096

Re: Roth 401k vs. Traditional 401k

At that level of income, regular (tax deductable) 401k plus back-door Roth IRA likely is the best option. This is unless you are sure that you will stay at 30+% income tax rate for ever. This would be my suggestion if your 401k plan allows it. Put the full 18.5 into traditional, then anything beyon...
by Grogs
Fri May 18, 2018 10:44 pm
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 51
Views: 5763

Re: Rob Arnott:index Investors Buy High, Sell Low

Aren't VG and the other large fund companies allowed to swap stocks between funds? Seems like that would take most of the wind out of the sails of people trying to front run the S&P500 index. When company number 500 drops out of the index, they can transfer most of it to a completion index. Likewise...
by Grogs
Thu May 17, 2018 8:20 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 11918

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

Yep. Cheer up, eventually you can hit $24k/year! Frankly, we’ve never had the income to save significantly more. This is one of those threads where a popcorn-eating emoji would be useful. This will be the first year I can actually contribute the pre-tax max ($18.5k). I'm doing an additional 2% into...
by Grogs
Thu May 17, 2018 4:47 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 11918

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

Yeah, it's the Mega backdoor. See the Bogleheads wiki article about this. It's not available in most 401k plans. It requires the plan to allow after-tax contributions, and ideally allow in service rollovers to either Roth 401k or Roth IRA (or both). The details on how to perform a rollover differ b...
by Grogs
Wed May 16, 2018 8:24 pm
Forum: Investing - Theory, News & General
Topic: How do companies that offer 401k profit?
Replies: 9
Views: 1585

Re: How do companies that offer 401k profit?

Im curious, how does a company like Vanguard that offers a large corporation a 401k portfolio make a profit off of said corporations employees buying into the 401k? I'm assuming you're asking something like this: " I work for Employer A, and our retirement plan is held/administered at Organization ...
by Grogs
Wed May 16, 2018 5:08 am
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 11918

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

I'm not at a point yet where I can contribute the 51k or so I would need to hit 55k after the company match. The 55k includes all of your contributions as well. So if you're putting in 18.5k and getting 4k match, then the remaining is 32.5k. Understood. I was just saying that right now my total ann...
by Grogs
Tue May 15, 2018 7:33 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 11918

Re: 2018 401k limit is $55K - do you max it out? Why/why not?

I'm not at a point yet where I can contribute the 51k or so I would need to hit 55k after the company match. The 55k includes all of your contributions as well. So if you're putting in 18.5k and getting 4k match, then the remaining is 32.5k. Understood. I was just saying that right now my total ann...