Search found 1450 matches

by bigred77
Mon Apr 03, 2017 9:26 am
Forum: Investing - Theory, News & General
Topic: 100% stocks in ROTH?
Replies: 27
Views: 1739

Re: 100% stocks in ROTH?

That is exactly what i do and roughly my line of thinking. I want the assets I expect to grow best to be put in my tax free accounts. Although you could make the argument to me that basically all I'm doing is increasing the risk of my portfolio and trying to trick myself into not realizing it. I do ...
by bigred77
Mon Apr 03, 2017 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Young-ish bogleheads: How much (if any) social security do you expect in retirement?
Replies: 88
Views: 4485

Re: Young-ish bogleheads: How much (if any) social security do you expect in retirement?

Early 30s. I expect the full retirement age will be pushed back. I also expect the cap on SS earnings and/or the tax percentage to increase. Other than those haircuts I more or less expect to receive what I am promised. Although I will probably have to postpone to my early/mid 70s to receive an equi...
by bigred77
Thu Mar 30, 2017 1:18 pm
Forum: Personal Consumer Issues
Topic: Is the secret to getting wealthy...
Replies: 48
Views: 4513

Re: Is the secret to getting wealthy...

The one concept they always bring up that I've always admired the concept of creating multiple income streams. I've tried to implement it into my own life but have failed. I don't have a skill set suited for anything like that and I value my free time too highly apparently. I've decided instead to f...
by bigred77
Thu Mar 30, 2017 1:09 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 187
Views: 25832

Re: John Bogle on international

I was away from the forum for a while. Good to see more folks have made progress in objectively evaluating the merits of arguments made in this debate rather than appealing to authority, citing past performance figures of cherry-picked periods, and violating investment principles otherwise espoused...
by bigred77
Wed Mar 29, 2017 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Selling Covered Calls - LEAPS
Replies: 7
Views: 834

Re: Selling Covered Calls - LEAPS

If you no longer feel comfortable owning those positions then you should sell them. If you have to pay more taxes next year then congratulations are in order because guess what, you made money! Options are probably not appropriate for the vast majority of retail investors. In your post I didn't see ...
by bigred77
Wed Mar 29, 2017 7:49 pm
Forum: Investing - Theory, News & General
Topic: Personal experience over time? [How far from retirement, time spent investing]
Replies: 31
Views: 3203

Re: Personal experience over time? [How far from retirement, time spent investing]

I've been investing for 9 years. I've been a boglehead for about 8.5 years. Hope to retire in 23 years but hope to have 25X current expenses in 13. I'm sure my priorities and plans will change significantly over time. I've outperformed those vanguard numbers with my personal portfolio but only becau...
by bigred77
Wed Mar 29, 2017 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: When do you plan to die?
Replies: 165
Views: 10999

Re: When do you plan to die?

No male in my family has made it past 72 except for one that passed back in the 1960s. Even if I last past that, I don't plan on sticking around much past the point where I can't drive or do anything other than sit in a chair all day. Yeah but don't all bogleheads want to make sure we can afford on...
by bigred77
Wed Mar 29, 2017 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: What do Bogleheads think about Aspiration?
Replies: 12
Views: 1012

Re: What do Bogleheads think about Aspiration?

Well it is an actively managed fund where they claim the "operating expenses" are capped at 0.5%. Now I don't know if that's an apples to apples comparison to an ER of a more traditional ETF or fund but it's a start. From their website: "Aspiration has what is called an "Expense ...
by bigred77
Wed Mar 29, 2017 4:51 pm
Forum: Investing - Help with Personal Investments
Topic: What do Bogleheads think about Aspiration?
Replies: 12
Views: 1012

Re: What do Bogleheads think about Aspiration?

As someone who works in Oil and Gas I think my feelings are hurt :( :(
by bigred77
Wed Mar 29, 2017 4:47 pm
Forum: Personal Consumer Issues
Topic: China Trip - Visa Expediter?
Replies: 26
Views: 1409

Re: China Trip - Visa Expediter?

I went to the closest consulate in person. It was not a pleasant experience and it took multiple trips (I had not yet booked my hotel and they wanted an address of where I was staying and a receipt). There were a lot of expediters there on behalf of other people and they really seemed efficient. The...
by bigred77
Wed Mar 29, 2017 1:14 pm
Forum: Investing - Theory, News & General
Topic: Doubting Shiller -- what is the "correct" P/E?
Replies: 44
Views: 2896

Re: Doubting Shiller -- what is the "correct" P/E?

I don't know if I accept that. My understanding of the risk free rate is that it represents a guaranteed rate of return, known in advance, with no default risk, over a given period of time (which can change). For pricing an asset you can't assume you know how long someone will want to hold it. But ...
by bigred77
Wed Mar 29, 2017 1:04 pm
Forum: Investing - Theory, News & General
Topic: anyone factor in future inheritance?
Replies: 78
Views: 4897

Re: anyone factor in future inheritance?

DaftInvestor wrote:I have factored in the opposite (aging in-laws with no savings that might need some caring for sometime in the future).


Same here, on both side of the family :shock:
by bigred77
Wed Mar 29, 2017 12:55 pm
Forum: Investing - Theory, News & General
Topic: Doubting Shiller -- what is the "correct" P/E?
Replies: 44
Views: 2896

Re: Doubting Shiller -- what is the "correct" P/E?

This took me a while to really grasp what you are saying here. I don't think the historical P/E ratios are all that off at all. They make alot of sense to me. Since 1900 the average interest rate on the 10 yr treasury is close to 5% (I don't think that's a CAGR number, just the average annual inter...
by bigred77
Wed Mar 29, 2017 11:52 am
Forum: Investing - Theory, News & General
Topic: Doubting Shiller -- what is the "correct" P/E?
Replies: 44
Views: 2896

Re: Doubting Shiller -- what is the "correct" P/E?

This took me a while to really grasp what you are saying here. I don't think the historical P/E ratios are all that off at all. They make alot of sense to me. Since 1900 the average interest rate on the 10 yr treasury is close to 5% (I don't think that's a CAGR number, just the average annual intere...
by bigred77
Tue Mar 28, 2017 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Not opting for 529... anyone else?
Replies: 175
Views: 10159

Re: Not opting for 529... anyone else?

I personally like the 529 accounts but I especially like them if you can front load them when the kid is very young. Then you really get some bang for your buck by the time they turn 18. So if you can dump $25k or more in at birth you should receive some really nice tax perks by the time they go to...
by bigred77
Tue Mar 28, 2017 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Our Risky 401K
Replies: 19
Views: 1553

Re: Our Risky 401K

yes the company stock is part of a company profit sharing plan the company had in prior years. Shares were added to the individuals 401K account. The stock has to stay in the 401K. I have heard that some employees converted their stock into various other funds offered by the 401K plan. To have the ...
by bigred77
Tue Mar 28, 2017 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Our Risky 401K
Replies: 19
Views: 1553

Re: Our Risky 401K

Is the company stock within your 401k? I'm confused. What does this statement mean: "I can not touch it before then....other than have it diversified. But I would then lose the NUA treatment" What do you mean by "have it diversified"? By NAU treatment are you referring to "n...
by bigred77
Mon Mar 27, 2017 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: House gifted via quitclaim is now under contract—what should I know regarding capital gains
Replies: 4
Views: 730

Re: House gifted via quitclaim is now under contract—what should I know regarding capital gains

Did you add in the cost to renovate the house to the cost basis?

Did also account for any depreciation recapture if you claimed the property as a rental in 2016 (my understanding is it doesn't matter if you actually claimed the depreciation or not, the IRS assumes you did when you sell it)?
by bigred77
Mon Mar 27, 2017 6:27 pm
Forum: Investing - Theory, News & General
Topic: Illusion of poverty/wealth
Replies: 159
Views: 20662

Re: Illusion of poverty/wealth

My MIL easily lives off of her pension +SS and saves some each month. She also has $1.7M in savings and growing. She feels poor and worries about running out of money. But that makes her happy, so who am I to judge? You don't have to judge and if she wants for nothing then no harm, no foul. BUT... ...
by bigred77
Mon Mar 27, 2017 6:15 pm
Forum: Investing - Theory, News & General
Topic: Are passive funds dependent on active funds?
Replies: 24
Views: 1491

Re: Are passive funds dependent on active funds?

Currently, mutual funds hold about $8 trillion in stocks or about 1/3rd of the total US market; of those mutual funds, about 70% are active and 30% are index funds. So index funds now hold about 10% of the total market. The other 90% is held either by non-fund investors or by actively managed mutua...
by bigred77
Mon Mar 27, 2017 5:52 pm
Forum: Investing - Theory, News & General
Topic: Illusion of poverty/wealth
Replies: 159
Views: 20662

Re: Illusion of poverty/wealth

I think it's worth noting that the authors seem to assume a "6% rule" whereas most Bogleheads seem to adhere to a 4% rule. So, according to them, yes, many people here have an illusion of poverty. They are not assuming a 6% rule, they are using actual SPIA pricing that anyone can go out a...
by bigred77
Mon Mar 27, 2017 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Anything unique for withdrawls from 3Fund after age 60?
Replies: 9
Views: 882

Re: Anything unique for withdrawls from 3Fund after age 60?

1.) What are your total expenses and how much are you making from your part time work both before and after your retirement contributions? Let's say they are 100k. Sounds like you plan to withdraw about 80k from the portfolio and then use 20k or earned income from your part time job, is that about r...
by bigred77
Mon Mar 27, 2017 4:49 pm
Forum: Investing - Theory, News & General
Topic: Illusion of poverty/wealth
Replies: 159
Views: 20662

Re: Illusion of poverty/wealth

Geez... the following text from the article REALLY jumped out at me: "Yet, other people feel that $5,000 a month is more adequate than a $1 million lump sum. They suffer from the illusion of poverty. Because they might be inclined to think about wealth in terms of monthly income as opposed to a...
by bigred77
Mon Mar 27, 2017 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Boston apartment hunting advice/can I afford a studio?
Replies: 48
Views: 3511

Re: Boston apartment hunting advice/can I afford a studio?

Can you live somewhere in Boston where you can get rid of the car? My impression of the Boston public transit system is that it was pretty decent. Remember, no insurance, parking, gas, maitenance, etc will pay for a lot of Ubers. I think that's fine since you have the large taxable account. Keep max...
by bigred77
Mon Mar 27, 2017 2:02 pm
Forum: Personal Consumer Issues
Topic: Need advice about massive changes in daughter's college program by dean
Replies: 52
Views: 4207

Re: Need advice about massive changes in daughter's college program by dean

Texas Senate Bill 1 (an appropriations bill) is expected to reduce funding significantly to Texas state colleges and universities. There may be no place to transfer to. Voters wil have to vote to raise their taxes to help the situation. Put yourself in the dean's shoes: The dean may not even have a...
by bigred77
Mon Mar 27, 2017 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Massive Student Loan Debt - Girlfriend
Replies: 86
Views: 7392

Re: Massive Student Loan Debt - Girlfriend

If the PSLF program were to fail, it seems paying back the debt would be insurmountable on her income alone, presumably leaving me to absorb the payments. This is probably late, but one thing that has been bothering me about your initial post is why you feel $175K of debt is insurmountable for some...
by bigred77
Mon Mar 27, 2017 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Weathering sell-off days like today
Replies: 107
Views: 6569

Re: Weathering sell-off days like today

For those of you that invest, how do you keep a cool head on a day such as today to not panic and ride through this sell-off? Maybe this will help. Of all the famous quotations Mike Tyson has spawned over the past quarter century, my favorite is this: "Everybody has a plan until they get punch...
by bigred77
Mon Mar 27, 2017 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Massive Student Loan Debt - Girlfriend
Replies: 86
Views: 7392

Re: Massive Student Loan Debt - Girlfriend

My generation (barely a millennial) has been told since we could understand language to go to a good college with absolutely no regard to making it a cost/benefit decision. There is no education on how long it takes to pay off 100k of student debt or even what the payments would be. I agree that so...
by bigred77
Mon Mar 20, 2017 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: What would it take to buy a house in our neighborhood?
Replies: 20
Views: 1505

Re: What would it take to buy a house in our neighborhood?

Could probably afford a $1M property right now with 10% down and a mortgage equal to 3X your income. The longer you can keep renting, and saving, and growing your income the better off you will be. That said, if you found the perfect property tomorrow for 900k I think you could easily pursue it. I d...
by bigred77
Mon Mar 20, 2017 10:54 am
Forum: Investing - Help with Personal Investments
Topic: Risks of Margin Account (VBS)
Replies: 5
Views: 325

Re: Risks of Margin Account (VBS)

If you want access to a margin enabled account, then Vanguard would not be my custodian of choice. I would probably use Interactive Brokers. They are much cheaper. If you don't want or need margin, then Vanguard is the place to be if you want to use their mutual funds and/or ETFs. Just make sure the...
by bigred77
Thu Mar 16, 2017 12:42 pm
Forum: Personal Consumer Issues
Topic: selling home/lease back/long escrow
Replies: 14
Views: 641

Re: selling home/lease back/long escrow

I've been in a hot market where properties priced at all appropriately typically received an offer within days. In that case we listed it slightly before market value, received multiple offers, and asked everyone for final and best offers by some deadline a few days away. We got an excellent price. ...
by bigred77
Thu Mar 16, 2017 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Should I invest or save for the next few years
Replies: 14
Views: 1088

Re: Should I invest or save for the next few years

If I were you I would invest it all according to my long term AA and remain flexible on my house purchase timing. If the market crashes in 2-4 years then you just postpone the home buying. If it soars than you have even more to put down when the timing is right.
by bigred77
Thu Mar 16, 2017 11:46 am
Forum: Investing - Help with Personal Investments
Topic: College Savings Outside 529 Plan
Replies: 20
Views: 1257

Re: College Savings Outside 529 Plan

I am very pro 529 and also engage in lots of mental accounting myself. That being said, I agree you have more than enough in the 529s and should switch to contributing to a taxable brokerage account. When doing that, I think it would make the most sense to consider these new taxable contributions as...
by bigred77
Wed Mar 15, 2017 3:04 pm
Forum: Investing - Theory, News & General
Topic: BND Jumps 0.5% on Fed Announcement
Replies: 43
Views: 4371

Re: BND Jumps 0.5% on Fed Announcement

I was waiting for someone to bring this up. :D Fed raises the overnight rate target to 0.75% - 1% Yield curve flattens. Bonds and Bond funds increase in value. An important reminder that the fed can only exert control on the overnight rate. That influences, but does not control, interest rates over ...
by bigred77
Wed Mar 15, 2017 8:18 am
Forum: Investing - Help with Personal Investments
Topic: Do you avoid international investing like Jack Bogle?
Replies: 151
Views: 8341

Re: Do you avoid international investing like Jack Bogle?

Mine is almost the same as jhfentons. Close to 50% of equities is in International with a tilt to small and EM. Jack Bogle and Warren Buffet both have made statements in the past that indicate they have some home country bias. It's OK, these guys are titans of industry, not infallible. We all have b...
by bigred77
Tue Mar 14, 2017 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate investing the Boglehead way
Replies: 32
Views: 6317

Re: Real estate investing the Boglehead way

Different people approach real estate investing in different ways. If you have a background in construction, it might be profitable for you to do fixer-uppers. Personally, I do rental real estate for income (single family homes and townhouses). I generally look for these things: - safe neighborhood...
by bigred77
Tue Mar 14, 2017 12:18 pm
Forum: Investing - Theory, News & General
Topic: Fewer investment grade corporate bonds due to tax proposal?
Replies: 7
Views: 498

Re: Fewer investment grade corporate bonds due to tax proposal?

I'm trying to respond on the theory aspect of "what effects would eliminating the corporate interest tax deduction generate?" I assume there would probably be some reduction in the amount of corporate debt floating around but debt financing is still cheaper to use than equity capital. I do...
by bigred77
Mon Mar 13, 2017 10:57 am
Forum: Personal Consumer Issues
Topic: How many pairs of jeans do you own?
Replies: 64
Views: 4113

Re: How many pairs of jeans do you own?

Own or wear? Half the jeans I own are a size too small, but I keep them in hopes I might get back into them. Not sure if I should consider them an investment or take the loss now. Shoes > socks? Seems strange to me unless you're a collector (AFAIK, shoes are a depreciating asset). I can wear the sa...
by bigred77
Thu Mar 09, 2017 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Down payment money location if money isn't tight
Replies: 6
Views: 764

Re: Down payment money location if money isn't tight

The inheritance pretty much makes what you do with the 125k borderline insignificant. If you keep it in cash you end up with $3.125M If you put it all in stocks and double it, you have 4% more $3.25M If you lose it all you have 4% less ($3M) I would try to plan what you would do after you have contr...
by bigred77
Wed Mar 08, 2017 5:36 pm
Forum: Personal Consumer Issues
Topic: Car dilemma?
Replies: 25
Views: 1822

Re: Car dilemma?

The thought of going from a new(ish) Audi A5 convertible to a Toyota Corolla seems like a harsh adjustment. Especially when you just agreed to spend a lot more time in the car commuting :annoyed It's clearly the better financial choice however. If you have no qualms about the difference in driving e...
by bigred77
Wed Mar 08, 2017 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Opportunity Cost of Temporarily Raiding Retirement Account
Replies: 21
Views: 1884

Re: Opportunity Cost of Temporarily Raiding Retirement Account

If this was a coastal city or tight sellers market than yes, cash is king and FHA financing might cause you to lose out in a multiple offer situation. If these properties sit on the market for a number of weeks/months We are in Metro Detroit. The average listing duration is 1-2 days right now. Some...
by bigred77
Tue Mar 07, 2017 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Opportunity Cost of Temporarily Raiding Retirement Account
Replies: 21
Views: 1884

Re: Opportunity Cost of Temporarily Raiding Retirement Account

Do you qualify for a FHA loan? Yes, but (unless I'm missing something) an FHA loan is much worse than a conventional loan. #1 An FHA loan has more hoops to go through vs conventional. Sellers are less likely to accept offers from FHA buyers. #2 An FHA loan requires 3.5% down. I have at least 5% dow...
by bigred77
Tue Mar 07, 2017 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: GEICO auto rates vs. USAA: too good to be true?
Replies: 127
Views: 10495

Re: GEICO auto rates vs. USAA: too good to be true?

I had Geico for years, even had a claim, and my experience was very good. Then I shopped around and USAA was priced the best. I had a claim with them too, no complaints. Then a few years later I shopped around again and Amica was the best priced. Very happy with them, no claims so far, no complaints.
by bigred77
Tue Mar 07, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: Opportunity Cost of Temporarily Raiding Retirement Account
Replies: 21
Views: 1884

Re: Opportunity Cost of Temporarily Raiding Retirement Account

Why do you need 20% down? Why can't you put 5-10% down and then pay off enough principal to have lmo removed in a few years. I did this (albeit put 10-15% down) and had pmi removed within 2 years. I would say this. putting 20% down on a real estate purchase is not the 11th commandment. You sound li...
by bigred77
Tue Mar 07, 2017 1:25 pm
Forum: Personal Consumer Issues
Topic: Dispute with neighborhood association
Replies: 37
Views: 4465

Re: Dispute with neighborhood association

I've had very mixed experiences with HOA's. My childhood home is in a large suburban neighborhood. They pay an HOA fee once a year. The neighborhood is well established and most homes are 20+ years old. The board of the HOA was all retired residents, who somehow felt like they were running the board...
by bigred77
Tue Mar 07, 2017 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable investment plan for kids college
Replies: 76
Views: 3542

Re: Taxable investment plan for kids college

I can just tell you would I would do. I would put at least SOME of the excess funds in a 529 account. You are earmarking funds for college. I would not willingly pay capital gain taxes and taxes on dividends/income over the course of the next 2 decades when I don't have to with the 529s. Maybe see w...
by bigred77
Mon Mar 06, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Net Worth Calculation (Question/Opinion)
Replies: 26
Views: 1738

Re: Net Worth Calculation (Question/Opinion)

I typically don't but I mentally know I'd take that haircut as a cost of liquidating the asset. I use a pretty conservative estimate of home value anyway. What would I get if I had to list the property as is and wanted it to go under contract within 2-4 weeks? In reality I'd likely spruce it up some...
by bigred77
Mon Mar 06, 2017 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Wedding cash gift
Replies: 68
Views: 4171

Re: Wedding cash gift

I did a Saturday afternoon wedding for about 250 people for about 25k (ceremony and reception, not counting rings or honeymoon). We did not skimp on the higher end venue, sit down dinner, all inclusive open bar, and photographer. We skimped on the music (DJ was bad, no band, would not recommend), th...
by bigred77
Thu Mar 02, 2017 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Low Interest Variable Debt
Replies: 8
Views: 435

Re: Low Interest Variable Debt

My advice would be to switch your Roth 401k to a traditional 401k since you are in the 25% marginal tax bracket.

Then I would bump up that contribution from 5% to 20%.

Then I would take the remainder of the "extra" and apply it to your student loans every month.
by bigred77
Thu Mar 02, 2017 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: Pros and cons of a mortgage
Replies: 10
Views: 1149

Re: Pros and cons of a mortgage

In retirement, with no need to try and arbitrage investment returns and borrowing rates, I would not look for ways to get fancy for no real benefit (or at best, a very tiny benefit). I would just pay cash for the property. You can presumably easily afford to do so unless your expenses are in the $30...

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