Search found 429 matches

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: 1179

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: 33
Views: 4086

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: 5310

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: 6845
Views: 1495511

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: 1429

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: 501

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: 2663

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: 2724

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: 8697

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: 8697

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: 8697

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: 8697

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: 6146

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: 76
Views: 8784

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: 1914

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: 6146

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: 2825

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: 2825

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: 3487

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: 5797

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: 362

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: 3487

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: 26
Views: 2882

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: 6224

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: 6224

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: 1330

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: 677

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: 5797

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: 5797

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: 3398

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: 5797

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: 5797

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: 5797

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: 5797

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: 5797

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: 5797

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: 2019

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: 5577

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: 11439

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: 11439

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: 1547

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: 11439

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: 11439

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 7:05 pm
Forum: Investing - Theory, News & General
Topic: 2018 401k limit is $55K - do you max it out? Why/why not?
Replies: 110
Views: 11439

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. For the past couple of years, I've been doing 18k to the 401k pretax, then $5500 to a Roth IRA and somewhere around $15k to a regular brokerage account. I may rethink that strategy going forw...
by Grogs
Sat Mar 10, 2018 9:04 am
Forum: Investing - Theory, News & General
Topic: How Index ETF is considered liquid when capital gain tax is ready to hit on liquidation
Replies: 10
Views: 1258

Re: How Index ETF is considered liquid when capital gain tax is ready to hit on liquidation

Epsilon 2. Yes i believe there is a way to wash the unrealized capital gain by being temporary permanent resident on capital gain tax free country, but not sure yet. But this is not abut me. This is about general bogleheads investment strategy and i see that a US person will pays 20% rate for long ...
by Grogs
Fri Mar 09, 2018 11:56 am
Forum: Investing - Theory, News & General
Topic: Contribution Amounts...Percentage vs Specific
Replies: 15
Views: 919

Re: Contribution Amounts...Percentage vs Specific

We would then miss out on matching contributions in November and December because she is not eligible to contribute more than the maximum. Right, but everything she did contribute was properly matched it would seem, so how does she lose any money by this? Unless I'm interpreting things incorrectly,...
by Grogs
Sat Mar 03, 2018 3:37 pm
Forum: Investing - Theory, News & General
Topic: Fully Fund IRA before Taxable or Avg over year?
Replies: 10
Views: 725

Re: Fully Fund IRA before Taxable or Avg over year?

This. If investing >$66K/yr I assume you are doing a backdoor Roth, otherwise no other form of IRA really makes sense. I think that you may have misread OP's question. I think that he is talking about investing $5500/year, not per month (which is $66K/year). I disagree. Look at the title of the thr...
by Grogs
Sat Mar 03, 2018 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: CD - Early Withdrawal and Reinvest
Replies: 11
Views: 1057

Re: CD - Early Withdrawal and Reinvest

With a six month EWP, I think you're going to be hard pressed to get a high enough interest rate to break even. Without breaking out the calculator, I think you would need to get a CD with at least 3% to come out better than just holding the CD to maturity. 10-yr treasuries are running around 2.85% ...
by Grogs
Wed Feb 28, 2018 8:48 pm
Forum: Investing - Theory, News & General
Topic: Why have Emergency Funds?
Replies: 54
Views: 4455

Re: Why have Emergency Funds?

It’s really as asset allocation question. You could include your cash fund as part of your non stock allocation. Instead of being 60/40 maybe you are 60/35/5. The difference in returns for cash and bonds is not nearly as dramatic as stocks and cash, and part of your cash fund could include accumula...
by Grogs
Sun Feb 25, 2018 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Fast IRS refund
Replies: 41
Views: 4180

Re: Fast IRS refund

I try to always get a small refund on my taxes. For whatever reason, when I try to have a tax payment withdrawn from my checking account, the payment will bounce and I have to mail a check via snail mail. Refunds TO my checking account go through no problem. I normally try to tune my withholding so ...