Search found 11925 matches

by HomerJ
Mon Jan 21, 2019 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Saving for 1-2 years rather than for a lifetime
Replies: 31
Views: 2223

Re: Saving for 1-2 years rather than for a lifetime

Hey, wiserabbit.

"Slow and Steady wins the race".

- The Turtle.
by HomerJ
Mon Jan 21, 2019 11:22 am
Forum: Personal Consumer Issues
Topic: Paying thousands per ticket to attend the NFL Super Bowl?
Replies: 121
Views: 5127

Re: Paying thousands per ticket to attend the NFL Super Bowl?

I feel like the consensus here is that people are willing to pay thousands (or reasonable amount wrt their income / net worth) to go see an event they're passionate about, be it a sporting event, a show or a concert. Again, first question is "Can you afford it?" Second question is "Is the premium w...
by HomerJ
Mon Jan 21, 2019 10:21 am
Forum: Personal Consumer Issues
Topic: Paying thousands per ticket to attend the NFL Super Bowl?
Replies: 121
Views: 5127

Re: Paying thousands per ticket to attend the NFL Super Bowl?

This is going the way of many Boglehead consumer product threads. Any purchase others enjoy that I don't enjoy is frivolous but purchases I like are absolutely worth it. True enough. If the OP has enough money, go for it. If they can spend $8k - $10k for two people, and not impact their retirement ...
by HomerJ
Sun Jan 20, 2019 11:44 pm
Forum: Personal Consumer Issues
Topic: Paying thousands per ticket to attend the NFL Super Bowl?
Replies: 121
Views: 5127

Re: Paying thousands per ticket to attend the NFL Super Bowl?

I intend to attend. It is on my bucket list. I attended one previously between the Chicago Bears and Indy Colts in Miami. I paid $3,400 for that ticket and I am willing to pay at least that much again. I am 76 years old and my time is short on this green earth. YOLO. If you already attended one, sh...
by HomerJ
Sun Jan 20, 2019 11:44 pm
Forum: Personal Consumer Issues
Topic: Paying thousands per ticket to attend the NFL Super Bowl?
Replies: 121
Views: 5127

Re: Paying thousands per ticket to attend the NFL Super Bowl?

If my team was in the game, and I could afford to go, yes, I would absolutely. You live once. I would rather spend the money on an experience of a lifetime than live with the regret of not going if I had the chance. Steve I promise you, if I never attend a SuperBowl, I will not live or die with tha...
by HomerJ
Sun Jan 20, 2019 11:41 pm
Forum: Personal Consumer Issues
Topic: Paying thousands per ticket to attend the NFL Super Bowl?
Replies: 121
Views: 5127

Re: Paying thousands per ticket to attend the NFL Super Bowl?

Would you (or have you) paid thousands per ticket to attend the NFL Super Bowl game? Share your thoughts and/or experiences if was worth it. If my team was in it, and I was 85 with plenty of money left, I'd take my kids. But no way before that. Thousands per ticket will buy you a trip almost anywhe...
by HomerJ
Sun Jan 20, 2019 2:10 am
Forum: Personal Consumer Issues
Topic: Is California worth the premium?
Replies: 89
Views: 5052

Re: Is California worth the premium?

We know that there are still beautiful places to live in CA that are not as congested as the Bay Area and we seriously considered moving to a few of them, but in the end, we decided that we could find just as beautiful places to live out of state where we would not be taxed to death and our overall...
by HomerJ
Sat Jan 19, 2019 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Divorce w/child. Spouse wants to move.
Replies: 128
Views: 8048

Re: Divorce w/child. Spouse wants to move.

Your future raise means nothing. Your actual salary is about the same ($80k to $75k). The only thing you are losing is your $40k side business. I suspect your spouse is likely to say "Too bad, choose between seeing the kid more often or the money from the side business". If you are super diplomatic ...
by HomerJ
Fri Jan 18, 2019 6:51 pm
Forum: Personal Consumer Issues
Topic: Strategies to combat or justify lifestyle creep
Replies: 91
Views: 7123

Re: Strategies to combat or justify lifestyle creep

Dude just buy the Tesla. Money is for buying stuff. Either now or later. Which one you pick is totally up to you. Just be mindful that the one thing you can’t buy is more time on this earth. I don’t know about buying a Tesla. CEO indicates there are problems. However some creep should be fine. Mone...
by HomerJ
Fri Jan 18, 2019 2:15 pm
Forum: Personal Consumer Issues
Topic: Strategies to combat or justify lifestyle creep
Replies: 91
Views: 7123

Re: Strategies to combat or justify lifestyle creep

Now, I find myself fortunate enough to be in a position to pay in cash and it wouldn't affect my retirement date or financial goals too much at all. This is how the life style creep happens. But that's okay. If you've done the numbers, and it doesn't affect your retirement date or financial goals t...
by HomerJ
Fri Jan 18, 2019 1:14 pm
Forum: Personal Consumer Issues
Topic: Strategies to combat or justify lifestyle creep
Replies: 91
Views: 7123

Re: Strategies to combat or justify lifestyle creep

I'd rather own a $20k car, and spend $30k on 300-600 little $50-$100 luxuries than spend $50k on a car. Or own a $20k car, and spend $30k on a boat and jetski. Or own a $20k car, and spend $30k on 3 totally awesome vacations. All those things would give me more pleasure than upgrading an existing de...
by HomerJ
Fri Jan 18, 2019 10:01 am
Forum: Investing - Help with Personal Investments
Topic: 100% in VTSAX - Is it crazy???
Replies: 82
Views: 7912

Re: 100% in VTSAX - Is it crazy???

After it's peak in 1929, the DJIA decreased by 89% over a three year period. It recovered its peak in 1954, or about 25 years later. According to this article (https://www.nytimes.com/2009/04/26/your-money/stocks-and-bonds/26stra.html), the break-even point for the market after the 1929 debacle was...
by HomerJ
Thu Jan 17, 2019 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 129
Views: 7103

Re: How much house can I afford (really)?

CPA_RIA wrote:
Thu Jan 17, 2019 11:54 am
While not 1:1 with current income, it's enough to cover my current average annual spending ($162k).
Except your current average spending will go up if you buy a bigger house.

And your saving rate will go down.

And I would never plan around working until 67. That's not always up to you.
by HomerJ
Thu Jan 17, 2019 11:29 am
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 129
Views: 7103

Re: How much house can I afford (really)?

You only have 500+K outside the house versus 420K house. You are "House Poor" asset wise. You have very little asset outside the house. It is close to 1 to 1. House is illiquid. CPA_RIA, Note this is KlangFool's opinion only. I agree that "house-poor" is something to avoid, but in my opinion, you a...
by HomerJ
Thu Jan 17, 2019 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15957

Re: Why are you NOT buying rental properties?

onourway wrote:
Thu Jan 17, 2019 10:36 am
tomtoms wrote:
Thu Jan 17, 2019 10:34 am
Obviously, real estate investment is not for everyone. If it was then the return wouldn’t be so good.

I want to hear from those who tried but failed. What went wrong?
Did you not read the past 4 pages of responses filled with stories of what has gone wrong for people?
This.
by HomerJ
Thu Jan 17, 2019 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15957

Re: Why are you NOT buying rental properties?

tomtoms wrote:
Thu Jan 17, 2019 10:34 am
Obviously, real estate investment is not for everyone. If it was then the return wouldn’t be so good.
Let's see some numbers. Why are you unable to provide any real numbers?
by HomerJ
Thu Jan 17, 2019 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15957

Re: Why are you NOT buying rental properties?

28 year old here about to chime in. Naive perhaps, but I do want to own at least 2-3 rentals by the time I am 35. I already have one now, so far going smooth. It is a 3 bed 2 bathroom single family home. I live in 1 room and I have the other 2 rooms filled with friends. Mortgage is 1200, they pay 6...
by HomerJ
Thu Jan 17, 2019 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15957

Re: Why are your NOT buying rental properties?

Just recently my coworker told me he made $40 k in overtime last year. I made that much from just one property last year and I don’t have to pay 50% tax! I made it to the bottom of the first page and can’t believe no one addressed this. To me this is more eye-opening the fact that someone believes ...
by HomerJ
Wed Jan 16, 2019 11:34 pm
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15957

Re: Why are you NOT buying rental properties?

My relatives have been buying rental properties for the last 40 years and they are some of the happiest people I know! Live off the cash flow, travel and enjoying life. Wait... you started this thread with statement... I am only starting this thread because I was turned off to buying rental propert...
by HomerJ
Wed Jan 16, 2019 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15957

Re: Why are your NOT buying rental properties?

Yellow house said he hasn’t had any problems in 24 months; not that he/she has been the owner for 24 months. Also, your 9.5% return appears to be calculated from present value. Likely YH paid less, plus you aren’t considering leverage. True, but if so that’s even more disingenuous. There are plenty...
by HomerJ
Wed Jan 16, 2019 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15957

Re: Why are your NOT buying rental properties?

tomtoms wrote:
Wed Jan 16, 2019 4:57 pm
Here are my answers:
Please show your numbers how you are clearing $3300 profit each month on a single rental property with a mortgage and a property manager.

Thanks.
by HomerJ
Wed Jan 16, 2019 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: Variable annuity, a success story?
Replies: 42
Views: 2030

Re: Variable annuity, a success story?

The guaranteed $100k is magic Annuity money, it not your Dads money. He can’t get his hands on it. The value is in the underlying investments minus the fees. The guarantee stops after 10 yrs. After 2020, the growth on actual value will not keep up with fees and the 5% annual withdrawals. The actual...
by HomerJ
Wed Jan 16, 2019 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: Variable annuity, a success story?
Replies: 42
Views: 2030

Re: Variable annuity, a success story?

Yes, an immediate annuity can pay out 6.2%, but as my math has shown, that 6.2% would have been applied on an amount smaller than $100k, given VT/BND market performance. So 5% on a guaranteed $100k wins. And a much larger number given Vanguard Total Stock Market/Total Bond Market performance. Your ...
by HomerJ
Wed Jan 16, 2019 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15957

Re: Why are your NOT buying rental properties?

My co-worker owns 4 rentals, and he has had to switch property managers a few times, because they don't care about the costs.

If a plumber needs to be sent out, they will pay whatever is asked, and pass the bill on to my co-worker, because it's NOT THEIR MONEY.
by HomerJ
Wed Jan 16, 2019 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15957

Re: Why are your NOT buying rental properties?

I get the hustling part but my coworkers hustle at work all of the time. Just recently my coworker told me he made $40 k in overtime last year. I made that much from just one property last year and I don’t have to pay 50% tax! You CLEARED, net profit, $3300 a month, from one property, with a proper...
by HomerJ
Wed Jan 16, 2019 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: Variable annuity, a success story?
Replies: 42
Views: 2030

Re: Variable annuity, a success story?

$50k to $100k in 10 years represents a guaranteed* 7.2% CAGR. Assuming that the 5% lifetime payout is a fair rate, I would definitely take the deal. The 5% lifetime payout is NOT a fair rate. This is how insurance companies get you. They sold the policy with a "guaranteed" 7.2% rate.. But then they...
by HomerJ
Wed Jan 16, 2019 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Variable annuity, a success story?
Replies: 42
Views: 2030

Re: Variable annuity, a success story?

I checked how a 65/35 VT/BND $50k investment would have done since 2010 - it would have only grown to 81k as of today. Let’s say it will grow to $86k by 2020. That amount would buy an SPIA of $5,300/yr. I just checked VTSAX (Vanguard Total Stock Market) and $32,500 (65% of $50,000) would have grown...
by HomerJ
Wed Jan 16, 2019 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: 100% in VTSAX - Is it crazy???
Replies: 82
Views: 7912

Re: 100% in VTSAX - Is it crazy???

bg5 wrote:
Wed Jan 16, 2019 9:17 am
my wife and I will both have pensions and we will be able to live a comfortable life off just our pensions alone.
dont plan to touch this money for a long period of time. As of now that time period seems to be around 25 years.
Sounds solid to me.
by HomerJ
Wed Jan 16, 2019 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

TomatoTomahto wrote:
Wed Jan 16, 2019 11:55 am
O...M...G
I know, right? :)
by HomerJ
Wed Jan 16, 2019 1:25 am
Forum: Investing - Theory, News & General
Topic: When would you stop being a Boglehead?
Replies: 95
Views: 7389

Re: When would you stop being a Boglehead?

Pretty much everyone here (myself included) is convinced about the low-cost, do-it-yourself investing philosophy. But I’m curious: at which point would you start considering to delegate the management of your portfolio to firms like Merrill Lynch and Morgan Stanley? $10M? $50M? Literally never? 1% ...
by HomerJ
Tue Jan 15, 2019 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

Yeah, because paying off a mortgage and being left with no money is really gonna help when you lose your job. I wrote many times that liquidity and opportunity cost are among the most important reasons to hold a mortgage. It's safer to have a mortgage. An emergency fund is cost of doing business. W...
by HomerJ
Tue Jan 15, 2019 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Millionaire by 40 and How you Did it?
Replies: 90
Views: 10233

Re: Millionaire by 40 and How you Did it?

1 mil it’s not what it used to be. It’s around 8-10 million these days in order to be in the top 1% of the distribution in the US. Top 10% live pretty well too. Yes!. If only ppl were so rational. But relative wealth seems to be more important, as evidenced by the myriad threads that enable forum m...
by HomerJ
Tue Jan 15, 2019 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

You first deny the validity of history and then pick and chose examples from history the way you like to prove your point. It is unlikely to have high inflation because it did not happen in the past but is it likely to have a S&P 500 return lower than almost any time in history? Maybe you are right...
by HomerJ
Tue Jan 15, 2019 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

P.S.: I am predicting a recession in 2019 or 2020. The worst possible thing that I can do is to tie up my money in the house. Isn't it exactly the opposite? You have a $300k debt that is at risk in the stock and bond markets. If there is a recession, the value of that $300k you have invested in ris...
by HomerJ
Tue Jan 15, 2019 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

HomerJ , 1) I am a 60/40 person. <<You are losing money each month.>> 2) No, my portfolio is beating 5% per year. 3) 45% of my portfolio is in the taxable account. KlangFool (1) The bond part of your portfolio is trailing your interest payments. (2) You didn't beat 5% last year even with the stocks...
by HomerJ
Tue Jan 15, 2019 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Millionaire by 40 and How you Did it?
Replies: 90
Views: 10233

Re: Millionaire by 40 and How you Did it?

I started my own business when I was 34. It generated 4x the income I had in my prior salaried job. My net worth before starting the biz was $100k. Hit the 2 comma club when I turned 39. The only lifestyle change we made was eating out more than we used to, otherwise our spending stayed the same. S...
by HomerJ
Tue Jan 15, 2019 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Millionaire by 40 and How you Did it?
Replies: 90
Views: 10233

Re: Millionaire by 40 and How you Did it?

Two income couple making $75k each by your early 30s and living on one salary will get you pretty close. By 45 at least. But if you want to hit that milestone by 40, spend less or make more. We always saved half of our raises. So our lifestyle would still go up year to year, but our savings percenta...
by HomerJ
Tue Jan 15, 2019 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Millionaire by 40 and How you Did it?
Replies: 90
Views: 10233

Re: Millionaire by 40 and How you Did it?

hdas wrote:
Sat Jan 12, 2019 7:58 am
1 mil it’s not what it used to be. It’s around 8-10 million these days in order to be in the top 1% of the distribution in the US.
Top 10% live pretty well too.
by HomerJ
Tue Jan 15, 2019 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

You first deny the validity of history and then pick and chose examples from history the way you like to prove your point. It is unlikely to have high inflation because it did not happen in the past but is it likely to have a S&P 500 return lower than almost any time in history? Maybe you are right...
by HomerJ
Tue Jan 15, 2019 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

Also note that paying off a mortgage is not always a choice between stocks or mortgage. Unless you are 100% stocks. Even when we had a primary mortgage, we were 50/50 stocks/bonds. The extra money we used to pay off the mortgage was taken equally from both sides. Paying off a mortgage with bond mon...
by HomerJ
Mon Jan 14, 2019 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

All this forum is based on the assumption of future being similar with the past. Otherwise nothing makes sense: SWR, investments, retirement and we should have a forum about gold and ammunition instead. "It wouldn't take long" means tens of years at 3% effective interest rate. That's very long in m...
by HomerJ
Mon Jan 14, 2019 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

Also note that paying off a mortgage is not always a choice between stocks or mortgage. Unless you are 100% stocks. Even when we had a primary mortgage, we were 50/50 stocks/bonds. The extra money we used to pay off the mortgage was taken equally from both sides. Paying off a mortgage with bond mon...
by HomerJ
Mon Jan 14, 2019 8:45 pm
Forum: Investing - Theory, News & General
Topic: Anyone beating the index instead of buying it?
Replies: 51
Views: 5066

Re: Anyone beating the index instead of buying it?

It is not worth the effort. You have to be lucky for 10+ years before it matters. Meanwhile, you could lose everything in any of those 10+ years. KlangFool I don't see how you could lose everything, unless you put everything into one stock, which I'm not advocating. If you put into at least 8 good ...
by HomerJ
Mon Jan 14, 2019 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

Also note that paying off a mortgage is not always a choice between stocks or mortgage. Unless you are 100% stocks. Even when we had a primary mortgage, we were 50/50 stocks/bonds. The extra money we used to pay off the mortgage was taken equally from both sides. Paying off a mortgage with bond mone...
by HomerJ
Mon Jan 14, 2019 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

Just to put a number on it, last 30 years S&P 500 had a return of about 1500%. 300k$ invested in 1988 would have been 4.5 million today. So prepaying mortgage was pretty much the largest destroyer of wealth. You going to reimburse the OP if the next 30 years aren't the same as the last 30 years? Be...
by HomerJ
Mon Jan 14, 2019 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Alternatives to Permanent Life Insurance
Replies: 8
Views: 430

Re: Alternatives to Permanent Life Insurance

but I can't seem to figure out what those other options might be beyond just buying index funds in a taxable account. Just buy index funds in a taxable account. That's what I do. You pay very few taxes until you sell. Dividends are around 2% a year, you'll pay 15%-20% on those. That's a 0.3% - 0.4%...
by HomerJ
Mon Jan 14, 2019 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a Mortgage when You can Pay Cash for a House
Replies: 162
Views: 8662

Re: Getting a Mortgage when You can Pay Cash for a House

My parents are in the opposite situation, have 2 mortgages, but it allows them to live a lifestyle they couldn't afford otherwise. When I was younger my dad joked that when he died he wanted to be down to his last dollar and that seems be the glide path he's on ! This doesn't make any sense. Is the...
by HomerJ
Mon Jan 14, 2019 12:14 pm
Forum: Personal Consumer Issues
Topic: Disciplined with finances, but not so with diet
Replies: 217
Views: 9747

Re: Disciplined with finances, but not so with diet

For people who track calories, how do you handle foods where there's no reliable way to know how many calories there are? Occasionally I get motivated to track my calories, but then I immediately hit a food where I can't tell, and I get frustrated. Example: For lunch I want to have a serving of an ...
by HomerJ
Mon Jan 14, 2019 11:27 am
Forum: Investing - Theory, News & General
Topic: Anyone beating the index instead of buying it?
Replies: 51
Views: 5066

Re: Anyone beating the index instead of buying it?

With 8.8%, I can reach my number in 14 years. With 12%, I can reach my number in 12 years. So, I only gain 2 years. But, I take the risk of losing everything over that 12 years. It is a lousy bet! Yes, of course, it's a lousy bet. But that wasn't the question. Your first response was confusing to t...
by HomerJ
Mon Jan 14, 2019 9:55 am
Forum: Investing - Theory, News & General
Topic: Anyone beating the index instead of buying it?
Replies: 51
Views: 5066

Re: Anyone beating the index instead of buying it?

Folks, https://www.vanguard.com/us/insights/saving-investing/model-portfolio-allocations <<Historical Risk/Return (1926–2017) Average annual return 8.8% Best year (1933) 36.7% Worst year (1931) –26.6% Years with a loss 20 of 92>> This is the basic 60/40 portfolio with an average return of 8.8%. For...