Search found 1179 matches

by bigred77
Wed Dec 21, 2016 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: First-Time Home-Buyer Needs Advice
Replies: 19
Views: 1314

Re: First-Time Home-Buyer Needs Advice

Also... for 50k.... you could just take a 50k 401k/457b loan... - pay yourself the interest. How exactly would this work? Would my money stay invested when I take out the loan? How long would I typically have to pay it back? It does not stay invested, but if you have at least 50k in fixed income in...
by bigred77
Wed Dec 21, 2016 1:32 pm
Forum: Investing - Theory, News & General
Topic: What are the REAL reasons to avoid international?
Replies: 71
Views: 5255

Re: What are the REAL reasons to avoid international?

I haven't found any reason to avoid international equities. 47% of my equity allocation is in international equities. I have made the decision to forego international bonds. I think US treasuries (and a smattering of US corporate debt) sufficiently meets my needs from the fixed income portion of my ...
by bigred77
Wed Dec 21, 2016 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: housing options-- stretch for schools?
Replies: 37
Views: 2230

Re: housing options-- stretch for schools?

We went with option A (house was 3.2X income, very good elementary and middle schools, horrible high school) but the main reason is because option B was about 5X-6X income unless we wanted a 45 minute commute each way. I figure if my career takes off we can always do private school for high school. ...
by bigred77
Wed Dec 21, 2016 1:06 pm
Forum: Personal Consumer Issues
Topic: Best time/method of buying a new car.
Replies: 34
Views: 2637

Re: Best time/method of buying a new car.

I will just note that sometimes you can get a better deal on the price of a car if you agree to finance through the dealer. When we helped my mom buy a Ford Focus they would not agree to the price I wanted unless we agreed to finance through them (I believe the dealership got a kickback incentive fo...
by bigred77
Wed Dec 21, 2016 11:24 am
Forum: Personal Consumer Issues
Topic: Is it rude to dispose of unwanted gifts?
Replies: 60
Views: 5167

Re: Is it rude to dispose of unwanted gifts?

White Coat Investor wrote:Regiftables.

It could be worse. For about two years there as my in-laws downsized they would show up with literally a minivan FULL of stuff every time they came to visit.



This would have given me so much anxiety I would have developed a nervous twitch...
by bigred77
Tue Dec 20, 2016 5:51 pm
Forum: Investing - Help with Personal Investments
Topic: Borrow money to invest?
Replies: 33
Views: 2545

Re: Borrow money to invest?

If a bank offered me a 1% 5yr loan and I knew there was a 3% 7 year CD available CD rates here are all lower than 0.5%, so that's not an option for me. Also, I wouldn't say that I need the loan - I just feel like it might be a good way to get to retirement faster than I would otherwise. You can get...
by bigred77
Tue Dec 20, 2016 1:26 pm
Forum: Investing - Theory, News & General
Topic: Price Earnings ratio of Total International Stock Market?
Replies: 5
Views: 738

Re: Price Earnings ratio of Total International Stock Market?

The return to US investors who invest in International Equities IS affected by currency swings (unless the fund your using is currency hedged, but I believe all the usual equity funds recommended from Vanguard, Fidelity, Schwab, etc are not hedged). The strengthening of the US dollar has certainly p...
by bigred77
Mon Dec 19, 2016 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: What kind of person buys a franchise?
Replies: 49
Views: 5304

Re: What kind of person buys a franchise?

I liken it a little bit to owning rental properties. It doesn't look like an attractive option to me (at least with current prices/rents in my city) but some people want to own them. Some people will fail. Some will make some money on them. Some will be wildly successful with them. I suspect those t...
by bigred77
Mon Dec 19, 2016 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Your Retirement Number, or, calculating the funding ratio
Replies: 189
Views: 19863

Re: Your Retirement Number, or, calculating the funding ratio

The biggest problem I have with this outline of the funding ratio is how I have calculated the PV of future streams of income that don't begin today, but instead several years in the future. I think the two step process I have used is an appropriate method for calculating these PVs, but my confiden...
by bigred77
Mon Dec 19, 2016 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Your Retirement Number, or, calculating the funding ratio
Replies: 189
Views: 19863

Re: Your Retirement Number, or, calculating the funding ratio

bobcat2, Am I understanding correctly in your original post you are not factoring in any more retirement contributions over the following 12 years of working until the planned retirement date? Also, that real discount rate is going to be incredibly powerful, especially when performing calculations ...
by bigred77
Mon Dec 19, 2016 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring in a Decade after Graduation
Replies: 131
Views: 15208

Re: Retiring in a Decade after Graduation

Maybe this should be elaborated on as I don't get why this thread is sad or funny...Although, i will admit I may have missed a few posts that you are referring too. Sure. My comment was on the kind of exuberance that only someone under 30 can have. I recognize it because it was something I had. My ...
by bigred77
Mon Dec 19, 2016 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Your Retirement Number, or, calculating the funding ratio
Replies: 189
Views: 19863

Re: Your Retirement Number, or, calculating the funding ratio

bobcat2, Am I understanding correctly in your original post you are not factoring in any more retirement contributions over the following 12 years of working until the planned retirement date? Also, that real discount rate is going to be incredibly powerful, especially when performing calculations f...
by bigred77
Mon Dec 19, 2016 11:16 am
Forum: Investing - Theory, News & General
Topic: Concept of Bogleheads needing to "Save more"
Replies: 61
Views: 4854

Re: Concept of Bogleheads needing to "Save more"

I also want to point out that these SAFEMIN savings rates represent the rates that would have worked in the absolute worst of times (from the past) . From the article: "Using the SAFEMIN savings rate was always sufficient to finance desired retirement expenditures regardless of the actual weal...
by bigred77
Mon Dec 19, 2016 10:34 am
Forum: Investing - Theory, News & General
Topic: Retreat to cash
Replies: 219
Views: 21974

Re: Retreat to cash

"Retreat to Cash" sounds too similar to the infamous "Prevent Defense" in football. And seeing how that almost cost the game in the 4th quarter for my beloved Packers yesterday against the Bears, I can't recommend. :oops: IMHO, the best defense is a good offense, both in footbal...
by bigred77
Mon Dec 19, 2016 10:28 am
Forum: Investing - Theory, News & General
Topic: Concept of Bogleheads needing to "Save more"
Replies: 61
Views: 4854

Re: Concept of Bogleheads needing to "Save more"

I also want to point out that these SAFEMIN savings rates represent the rates that would have worked in the absolute worst of times (from the past) . From the article: "Using the SAFEMIN savings rate was always sufficient to finance desired retirement expenditures regardless of the actual wealt...
by bigred77
Mon Dec 19, 2016 10:06 am
Forum: Investing - Theory, News & General
Topic: Concept of Bogleheads needing to "Save more"
Replies: 61
Views: 4854

Re: Concept of Bogleheads needing to "Save more"

As others have said, the advice is "save enough." What's enough? Wade Pfau has put a lot research into this area and the answer is shockingly high: http://resource.fpanet.org/resource/981547A8-1D09-67A1-ACAC12B70A5C0D51/0511-Pfau-Table-1.jpg Additional reading (a bit dense): Safe Savings ...
by bigred77
Thu Dec 15, 2016 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan with low interest, keep or pay off early?
Replies: 26
Views: 2351

Re: Student Loan with low interest, keep or pay off early?

I wouldn't touch paying off student loans at 2.65% interest. You get some tax benefits from the interest and should be able to invest money you would be paying towards the student loans to generate a higher return. Only reason to payoff is if you are uncomfortable with holding debt. If the OP and h...
by bigred77
Thu Dec 15, 2016 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: House Mortgage Rate
Replies: 18
Views: 3845

Re: House Mortgage Rate

Yeah don't sweat it. You can always refi later of rates go down. If they go up you'll be happy with what you have. You did fine. When i bought my house about 3 and half years ago I paid almost a full point to buy the rate down to 4.25% (I think, maybe it was 4.125%). I was convinced I would never r...
by bigred77
Thu Dec 15, 2016 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on how to fund my first house
Replies: 6
Views: 925

Re: Advice on how to fund my first house

I'm sure there are loan types available specific to building a new house (and probably lenders who specialize with these) but I'm unfamiliar with them. I would shop it around to get an idea of rates, repayment schedules, draw schedule, etc. I would try to find the most flexible of the above loan pro...
by bigred77
Wed Dec 14, 2016 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: Save and invest for Down payment of Pay off Student Loan Debt
Replies: 7
Views: 703

Re: Save and invest for Down payment of Pay off Student Loan Debt

To me it's a nobrainer, I would pay off the student loans tomorrow, put $5,500 in a Roth IRA for 2016 (via the backdoor method), do the same for 2017, make sure I was maxing out the 401k. Then I would get rid of the roboadvisor and throw my bonus and all savings back into cash for the next 12 months...
by bigred77
Wed Dec 14, 2016 6:17 pm
Forum: Investing - Help with Personal Investments
Topic: End Of Year Investing Guidance Young Couple
Replies: 7
Views: 1159

Re: End Of Year Investing Guidance Young Couple

Backdoor Roth IRA contributions for your wife. I don't think you are eligible if you have an SEP IRA. $5,500 for 2016 $5,500 for 2017 Start a taxable brokerage account and come up with a plan for tax efficient investing given your income level and lack of tax advantaged space. Maybe come up with a p...
by bigred77
Wed Dec 14, 2016 2:38 pm
Forum: Investing - Theory, News & General
Topic: winning game, sell stocks despite high bond prices?
Replies: 47
Views: 4004

Re: winning game, sell stocks despite high bond prices?

I suggest a small incremental change in AA to something like 57% stocks to go with your age of 40ish. That is 5% shift from your 62% after your donations. IMO anything smaller is meaningless. Anything bigger (like going to 50% right now) is just too conservative versus your age IMO. So 57/43 stocks...
by bigred77
Wed Dec 14, 2016 2:37 pm
Forum: Investing - Theory, News & General
Topic: winning game, sell stocks despite high bond prices?
Replies: 47
Views: 4004

Re: winning game, sell stocks despite high bond prices?

I don't know why anyone would bother shifting their AA by any less than at least 5-10 absolute percentage points. Moving from 58% to 55% stocks will not make a noticeable difference. Its just noise IMO. I would normally suggest someone whose need to take risk has significantly shifted just go ahead ...
by bigred77
Tue Dec 13, 2016 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: sell some stock to purchase more home?
Replies: 18
Views: 1637

Re: sell some stock to purchase more home?

I would not be selling any investments. Your current home equity is more than enough to use as a down payment. You mention the rental helps you at tax time but you seem to have a relatively low percentage of your investments in retirement accounts. If you like depreciating your rental, you'll love m...
by bigred77
Tue Dec 13, 2016 5:35 pm
Forum: Investing - Theory, News & General
Topic: The age old 529 plan vs retirement question
Replies: 14
Views: 1740

Re: The age old 529 plan vs retirement question

I am of the opinion that retirement accounts should be maxed (or nearly maxed) first, before any 529 contributions are made. There just more flexible tools to use over a financial lifetime IMO. There is no state income tax where I live so the main benefit of 529s is tax free investment gains if used...
by bigred77
Tue Dec 13, 2016 11:03 am
Forum: Investing - Theory, News & General
Topic: I fundamentally don't understand bond funds
Replies: 22
Views: 2096

Re: I fundamentally don't understand bond funds

When the bond matures, principal is repaid in full (or at least the par amount is paid, the bond may have actually been bought at a discount or premium). Bond funds can take this principal and buy new bonds. I suspect it doesn't even get to that point though. I assume most bond funds are going to be...
by bigred77
Mon Dec 12, 2016 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: What % of your net income do you save (not including 401k/IRA)
Replies: 59
Views: 4811

Re: What % of your net income do you save (not including 401k/IRA)

We save roughly 25% of our pretax household income into retirement accounts. We save basically nothing in non-tax advantaged accounts. We do prepay debt at an accelerated pace though. Probably 20% of our after tax, take home income gets spent on debt principal repayments, over and above any minimum ...
by bigred77
Wed Dec 07, 2016 3:50 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement with $8M in investments
Replies: 164
Views: 19090

Re: Retirement with $8M in investments

I have flown commercial a lot. And I tried various other private charters. The cost of net jets versus other private options is not significant unless you get lucky with filling open return legs and other factors. I have 6 kids and a dog. Its so amazing to be able to decide to go to our place in fl...
by bigred77
Wed Dec 07, 2016 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring in a Decade after Graduation
Replies: 131
Views: 15208

Re: Retiring in a Decade after Graduation

I don't have a hard time with that assertion the OP made. I'm still young by the standards of many on this forum, but in my 25 years of being employed I have yet to find any such mythical unicorn job. I have resigned myself to taking a job that many don't want because I get paid low six-figures, se...
by bigred77
Wed Dec 07, 2016 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring in a Decade after Graduation
Replies: 131
Views: 15208

Re: Retiring in a Decade after Graduation

My only advice would be to make a large salary, live on maybe 20% of your salary, invest the rest in as tax efficient a manner as possible (which usually means maxing out 401ks, Roth IRAs, and saving a healthy chunk in a taxable brokerage account), and pray for an extended bull market. It takes a sp...
by bigred77
Wed Dec 07, 2016 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: HELP: salary negotiation
Replies: 17
Views: 2279

Re: HELP: salary negotiation

I would tell them that you're excited for the opportunity and are sure you will exceed their expectations but because you are taking on more responsibility, are increasing your book of business by 33%, and foregoing certain retirement benefits (401k match) you think a raise in base salary is both ju...
by bigred77
Wed Dec 07, 2016 10:59 am
Forum: Personal Consumer Issues
Topic: What to get a 13 Y/O who's interested in money?
Replies: 32
Views: 1636

Re: What to get a 13 Y/O who's interested in money?

There's a board game someone gave me as a joke ("Mogul: the game of Real Estate acquisition, finance, and management") that i actually REALLY got a kick out of. The only problem is I have never in my life been able to convince a group of people to actually play with me. The rule book is a ...
by bigred77
Tue Dec 06, 2016 6:44 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk. Using puts to hedge.
Replies: 26
Views: 1804

Re: Sequence of returns risk. Using puts to hedge.

Dan: One data point. Using historic performance since 1926, the portfolio yield difference between a 100% stock portfolio and a 50/50 stock/bond portfolio is 1.9% (10.2% versus 8.3%), less than the 2.1% cost of your strategy. The worst year for a 50/50 portfolio was 1931, with a return of -22.5% , ...
by bigred77
Tue Dec 06, 2016 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: simulating wealth building effects of home ownership
Replies: 39
Views: 2650

Re: simulating wealth building effects of home ownership

Hi. Family is moving to a HCOL area shortly. Turning 40 shortly. Home ownership is not in the cards for us in the near future. We'd like to stay flexible and don't want a high percentage of net worth tied up in a personal home. How could we simulate the wealth building effects of home ownership wit...
by bigred77
Tue Dec 06, 2016 1:27 pm
Forum: Investing - Theory, News & General
Topic: Should traders only BUY regardless of their TA ?
Replies: 12
Views: 1218

Re: Should traders only BUY regardless of their TA ?

Your parameters will make them execute 4-5 trades each and every trading day.

I suspect, given equal skill levels, they will average roughly the same outcome.
by bigred77
Tue Dec 06, 2016 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Feel like I'm spending more even though I'm saving more
Replies: 39
Views: 3842

Re: Feel like I'm spending more even though I'm saving more

OP is doing great. The "pay yourself first and then spend the rest" approach is a pretty good method. Revisit the numbers once your income breaches 6 figures to make sure your on target to reach your goals. Maxing all tax advantaged space is great until your income rises to the point where...
by bigred77
Mon Dec 05, 2016 2:14 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns risk. Using puts to hedge.
Replies: 26
Views: 1804

Re: Sequence of returns risk. Using puts to hedge.

I think you would be much better off by just lowering your allocation to equities (although not all the way to 20/80, maybe something like 50/50). Bogleheads obsess about lowering investment costs by just a few basis points and your strategy incurs 210 basis points of insurance cost. Plus the S&...
by bigred77
Mon Dec 05, 2016 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Lost: Could really use some advice on our next round of financial goals
Replies: 25
Views: 2387

Re: Lost: Could really use some advice on our next round of financial goals

I think you are undervaluing the importance of tax advantaged investment space, especially at your ages/income level. I would prioritize: 1.) max both 401ks 2.) max backdoor Roth IRAs Then with funds over and above that, you will have to make choices (cars, remodel, vacations, prepaying mortgage, 52...
by bigred77
Mon Dec 05, 2016 1:49 pm
Forum: Personal Consumer Issues
Topic: Men's Fashion - Best Bang for Buck
Replies: 79
Views: 7163

Re: Men's Fashion - Best Bang for Buck

I finally bought some Brooks Bros dress shirts because I wanted something nicer but found the fit is really bad on my body type. The quality and feel are great but the fit (and I've tried all of their different fits) just can't be overcome without a tailor. Ironically my old brand, Stafford, which I...
by bigred77
Thu Dec 01, 2016 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: The new normal: 2%, 3%?
Replies: 72
Views: 4608

Re: The new normal: 2%, 3%?

And a SPIA is a great Plan B. If you are 15 years into retirement, and your money has dropped to 60% of what you started, you will probably be able to buy a 7% or 8% SPIA with a good chunk of your remaining money, and along with Social Security, be just fine. I am assuming above that one retires at...
by bigred77
Thu Dec 01, 2016 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: At 10x, how long before I reach 25x?
Replies: 18
Views: 3716

Re: At 10x, how long before I reach 25x?

#Cruncher's numbers look accurate. I say put your head down for 10 years and you'll probably be good to go. If returns are bad you'll still be in the ballpark of where you want to be. If returns are good you'll have some breathing space. You're just about at the tipping point where investment return...
by bigred77
Thu Dec 01, 2016 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Stop 401k contributions to pay debt?
Replies: 9
Views: 581

Re: Stop 401k contributions to pay debt?

I say continue on your current course and encourage your wife in her job search... maybe take 100% of her earnings and pay down debt when she starts working again before you ratchet your spending/lifestyle back up to pre-layoff levels...
by bigred77
Thu Dec 01, 2016 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Just bought a lot of bonds today per my IPS--and felt very uneasy doing it
Replies: 23
Views: 2946

Re: Just bought a lot of bonds today per my IPS--and felt very uneasy doing it

I purchased just under $300k of VFIUX (intermediate term treasuries) today. It was very hard to click "submit". My plan was to DCA into a 50-50 portfolio this year, and I had 12/1 written down as a date to make some major fixed income purchases. I just know I am going to lose 10-15% of th...
by bigred77
Thu Dec 01, 2016 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling like you've "made it"
Replies: 107
Views: 10617

Re: Feeling like you've "made it"

this is fun! I'm 36 wife is 35, two kids. We make a combined $180k a year. Pretty solid. Upon reflection I find that we are debt free except for mortgages. We have rentals, we have investments (270k) Net worth is about $600k. My major anxiety is we are always cash poor. I somehow manage to always f...
by bigred77
Wed Nov 30, 2016 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling like you've "made it"
Replies: 107
Views: 10617

Re: Feeling like you've "made it"

I am of very similar age/stats... Welcome to the "ambitious yuppie millennial" club where we get together to vent about our first world problems and anxieties :mrgreen: Common topics of conversation include "I still can't seem to move into management because these darn older workers w...
by bigred77
Wed Nov 30, 2016 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage?
Replies: 107
Views: 7407

Re: Pay off mortgage?

If I had un-invested cash just sitting the bank or in a MM fund in excess of my mortgage I would just pay it off.

Set up a no-fee HELOC and then, should the need arise, you have access to that liquidity. You will only be charged interest if you actually withdraw on the line of credit.
by bigred77
Wed Nov 30, 2016 12:49 pm
Forum: Personal Consumer Issues
Topic: Should I buy a new car for safety's sake?
Replies: 152
Views: 6593

Re: Should I buy a new car for safety's sake?

I was unaware that everyone buying new Toyotas in 2007 were buying death traps :mrgreen: :mrgreen: I know there have been safety advancements in the past 10 years but I can't believe people are recommending the improvement is so vast. A 2007 toyota is definitely "safe enough" as someone pr...
by bigred77
Wed Nov 30, 2016 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Miami- be very careful buying RE here
Replies: 25
Views: 2981

Re: Miami- be very careful buying RE here

Folks, I am not familiar with Florida's law. As far as I can remember, in Texas, the beach belongs to the public / state. So, there were cases where due to some hurricanes, the beach moved further inland and some private houses are subsequently on the beach / public land. Hence, the house owner no ...
by bigred77
Tue Nov 29, 2016 10:59 pm
Forum: Investing - Theory, News & General
Topic: "Sequence of returns risk"
Replies: 42
Views: 2922

Re: "Sequence of returns risk"

BTW, sure - sequence of returns effects your total income in retirement (assuming you don't do a fixed amount withdrawal). But apart from being an interesting mathematical fact, why should we much care about this? How is it an actionable piece of information? I don't see how it is, unless we could ...
by bigred77
Tue Nov 29, 2016 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Need some mortgage advice
Replies: 27
Views: 2828

Re: Need some mortgage advice

I don't know what would happen if you started the underwriting process with the 2nd lender while still proceeding along with your current lender. I just don't think it's done. Both lenders will probably be mad at you for potentially wasting their time and there could be wasted fees on a second appr...

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