Search found 1964 matches

by bigred77
Mon Aug 22, 2016 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: How do you view debt?
Replies: 108
Views: 8728

Re: How do you view debt?

I view it as a tool to be used (or not) based on individual circumstances. Low interest, tax deductible, non-callable debt (like a mortgage) used prudently by someone still in their prime accumulation years... seems reasonable. High interest (credit cards) or callable (margin) debt are probably best...
by bigred77
Fri Aug 19, 2016 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 304
Views: 50737

Re: Self-made Millionaires: how did hitting 7 figures change you?

There will always be someone who makes more and has more. I saw a thread earlier today by someone who was young with a multi-million dollar income and an $8M net worth. I suspect I'll never have either of those. Best to figure out early how much "enough" is so you'll know it when you get there. I a...
by bigred77
Thu Aug 18, 2016 9:13 am
Forum: Investing - Help with Personal Investments
Topic: Earlier Retirement with Lower Pension?
Replies: 26
Views: 3634

Re: Earlier Retirement with Lower Pension?

Here are the details: Income: $245K Federal Tax $48K State Tax $2K (low due to Kasich's recent support of small business in OH) Contributions to 401K, 403b, 457b, Roth IRA $88.5K Pension employee contribution $14K Remaining (our expenses not including taxes) = 245 - 48 - 2 - 88.5 - 14 = $93.5K Taxa...
by bigred77
Wed Aug 17, 2016 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 304
Views: 50737

Re: Self-made Millionaires: how did hitting 7 figures change you?

There will always be someone who makes more and has more. I saw a thread earlier today by someone who was young with a multi-million dollar income and an $8M net worth. I suspect I'll never have either of those. Best to figure out early how much "enough" is so you'll know it when you get there. I a...
by bigred77
Wed Aug 17, 2016 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 304
Views: 50737

Re: Self-made Millionaires: how did hitting 7 figures change you?

This is a very informative thread. I recently made it pass 7 figures but this includes all accounts. I am over 50. In my mind, the amount is inflated as $1 in a tax-deferred account is worth less than $1. Capital gain in taxable accounts need to be taxed. Most of my older colleagues have over $1 mi...
by bigred77
Wed Aug 17, 2016 4:49 pm
Forum: Personal Consumer Issues
Topic: Buy vs Rent & Price Limit Help
Replies: 6
Views: 628

Re: Buy vs Rent & Price Limit Help

I would likely rent a 3 bedroom property until your wife makes a definitive decision to rejoin the workforce. A $260k house is just fine with both of your salaries but maybe a touch high if it's just 1 income?
by bigred77
Tue Aug 16, 2016 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 304
Views: 50737

Re: Self-made Millionaires: how did hitting 7 figures change you?

I think you have to factor in COL *and* age. $1M when you're 65 with a paid off house, great! $1M when you're 40 with a lot of years left to live, not that great. I tend to think that you've got it somewhat backwards. If you have a $1M when you are 40 and a long life expectancy, I think that you ar...
by bigred77
Tue Aug 16, 2016 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Moving 4M from Goldman. retired and needs 200K/Y
Replies: 55
Views: 10628

Re: Moving 4M from Goldman. retired and needs 200K/Y

Do you have $36k from Rent and $45k Freelance work coming in every year that will be part of the $200k yearly need? No. At this moment I would need around 280K yearly it is mainly because we are supporting both our parents and current condo we live has really high taxes and maintenance. We are plan...
by bigred77
Tue Aug 16, 2016 12:02 pm
Forum: Investing - Theory, News & General
Topic: investment and allocation - before or after tax?
Replies: 4
Views: 499

Re: investment and allocation - before or after tax?

I think adjusting your perceived savings rate based on future tax treatment is getting too far into the weeds for very little benefit. Save an appropriate percentage (or as much as you can if that's your mindset) in a reasonably tax efficient manner. For moderate income that may mean 401k up to matc...
by bigred77
Tue Aug 16, 2016 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Can my wife stop working? Allocation ???
Replies: 25
Views: 2964

Re: Can my wife stop working? Allocation ???

Can you live your current lifestyle with your current income dropping down to about 100k (minus 18k in stated 401k contributions) without drawing on savings? If you can do that (which equates with your current expenses being less than your goal retirement income) then you are fine and I think you ca...
by bigred77
Tue Aug 16, 2016 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Moving 4M from Goldman. retired and needs 200K/Y
Replies: 55
Views: 10628

Re: Moving 4M from Goldman. retired and needs 200K/Y

Do you have $36k from Rent and $45k Freelance work coming in every year that will be part of the $200k yearly need? No. At this moment I would need around 280K yearly it is mainly because we are supporting both our parents and current condo we live has really high taxes and maintenance. We are plan...
by bigred77
Mon Aug 15, 2016 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Self-made Millionaires: how did hitting 7 figures change you?
Replies: 304
Views: 50737

Re: Self-made Millionaires: how did hitting 7 figures change you?

I am still a few years away from hitting $1M in net worth (and a number of years away if we are only counting financial assets) but I'm surprised people aren't treating it as a bigger milestone. Roughly 10% of households in the US ever hit that number. To me, hitting that number means I can handle a...
by bigred77
Thu Aug 11, 2016 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Purchasing land as an investment
Replies: 14
Views: 1647

Re: Purchasing land as an investment

What you are describing is a highly speculative, illiquid, non-diversified investment with very high transaction and carrying costs. It is absolutely not worth it for anticipated returns in the 5%-8% range. Unless you have inside information about a new road being built or a developer planning a pro...
by bigred77
Thu Aug 11, 2016 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Am I saving enough? Budget & Retirement
Replies: 8
Views: 1992

Re: Am I saving enough? Budget & Retirement

Take home pay of $6500
Mortgage Expenses of $1700
Left Over funds of $3500

So your only spending $1300 a month outside of the mortgage?

Take $3500 excess, put $2000 in a taxable brokerage account, throw an extra $500 onto the mortgage payment, and live a little with the remainder.
by bigred77
Thu Aug 11, 2016 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Does playing in WNBA make fiscal sense
Replies: 41
Views: 2807

Re: Does playing in WNBA make fiscal sense

As a former D1 athlete (football) and someone who worked in two other major college athletic departments, two very basic reasons: people want to win (and UCONN is utterly dominant in women's basketball) and the HUGE majority of D1 athletes really couldn't care about the future past the possibility ...
by bigred77
Wed Aug 10, 2016 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Refinancing mortgage to 15-year vs. college savings
Replies: 23
Views: 2482

Re: Refinancing mortgage to 15-year vs. college savings

That decision seems pretty close to me. I would probably think about it like this: Do I want to pay a fee for the right to pay a higher interest rate, have a higher minimum payment, and dedicate the funds I was contributing to the 529 account to repaying a mortgage with a rate of 2.75%? If you're in...
by bigred77
Wed Aug 10, 2016 11:44 am
Forum: Personal Consumer Issues
Topic: Buying a new home at age 50 in a nicer neighborhood
Replies: 133
Views: 16750

Re: Buying a new home at age 50 in a nicer neighborhood

Is the new home going to be your retirement home? Are you prioritizing features that will allow you to age in place?
by bigred77
Wed Aug 10, 2016 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Using 60 day rollover as cash buffer while buying a house
Replies: 24
Views: 3368

Re: Using 60 day rollover as cash buffer while buying a house

My understanding is you have 60 calendar days from the date you removed funds from the Roth IRA to return them. I would leave myself some wiggle room (at least 3-5 days) and call the brokerage company about the deposit back into the IRA. When I did this Fidelity was giving me some explanation about ...
by bigred77
Tue Aug 09, 2016 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Best housing option for my mom living by herself?
Replies: 22
Views: 2481

Re: Best housing option for my mom living by herself?

OP, I went through a VERY similar situation with my own mother. She was divorced, a hoarder, unable to maintain the family home of about 20 years, was laid off for 4+ years (I had been sending her money every couple of months but didn't know the extent of the situation), pretty close to $100k in cre...
by bigred77
Mon Aug 08, 2016 5:51 pm
Forum: Personal Consumer Issues
Topic: European Vacation Cost
Replies: 13
Views: 1827

Re: European Vacation Cost

May is definitely going to be cheaper than June. Price out the main flight first. Flying into Paris or a German city will likely be cheaper. Check out easyjet.com for intra-European flights. The trains are also a great alternative. Sometimes its better to book round trip for the main flight instead ...
by bigred77
Fri Aug 05, 2016 12:29 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 21950

Re: A costly mistake made by both investors and advisors

Y ou can say current valuation is the "best" estimate because ALL estimates for the long-term future are complete guesses This is example of the fruitlessness of the conversation. Clearly this is not the case as the evidence shows and I have explained many times. It cannot have no informational val...
by bigred77
Fri Aug 05, 2016 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: How soon to get HELOC after closing on mortgage refi?
Replies: 4
Views: 860

Re: How soon to get HELOC after closing on mortgage refi?

I closed on a refi mortgage last year and applied for a HELOC less than 10 days later (it was admittedly with the same lender but I don't think that should matter). I sent the same documentation I used for my refi (although i don't think they required as much) but with up to date pay stubs. They acc...
by bigred77
Fri Aug 05, 2016 10:21 am
Forum: Investing - Theory, News & General
Topic: "Your 10 Most Important Financial Decisions"
Replies: 21
Views: 3693

Re: "Your 10 Most Important Financial Decisions"

That's a great list, Taylor. As I read it, what occurred to me is how many of those very critical decisions are made so early in life. I try to stress to young people that much of their financial and personal success will likely be determined by the choices they make between ages 15 and 25. I also ...
by bigred77
Thu Aug 04, 2016 8:15 am
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 21950

Re: A costly mistake made by both investors and advisors

As to current times and P/E. First I would say that far fewer companies pay dividends today and payout ratios are MUCH lower, that should lead to bit higher EPS growth and justify slightly higher P/E. Slightly. I believe that the investment community has voted, and the results suggest much more tha...
by bigred77
Thu Aug 04, 2016 8:02 am
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 21950

Re: A costly mistake made by both investors and advisors

I think it makes a lot of sense to say that the best prediction of future returns depends on P/E (or CAPE10) and is independent of term, but the reliability of the prediction might be better at intermediate terms. I.e. our best guess for 30-year returns is the same as our best guess for 10-year ret...
by bigred77
Wed Aug 03, 2016 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Does an SPIA have an impact on retirement accumulation targets?
Replies: 25
Views: 1657

Re: Does an SPIA have an impact on retirement accumulation targets?

I also think SPIAs are a very useful (and underutilized) tool for many people. I think 25x expenses (minus pensions and/or SS payments) is still a good target to aim for. I also think aiming for 25x expenses in your residual portfolio (post SPIA purchase; minus annuity, pensions and/or SS payments) ...
by bigred77
Tue Aug 02, 2016 5:50 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 21950

Re: A costly mistake made by both investors and advisors

But the math is what matters. It simply assumes valuations don't change because we cannot forecast if they will change. Horrible assumption with no basis in reality that destroys the entire model. What assumption would you make about earnings going forward if not the same? Do you think earnings are...
by bigred77
Tue Aug 02, 2016 5:29 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 21950

Re: A costly mistake made by both investors and advisors

BigRed yes of course CAPE 10, or any other metric has less value over short periods. So does the DDM or any other metric. But the math is what matters. It simply assumes valuations don't change because we cannot forecast if they will change. So earnings yield is like bond yield. You buy a 10 year b...
by bigred77
Tue Aug 02, 2016 5:01 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 21950

Re: A costly mistake made by both investors and advisors

It would have been very useful to clarify that expected returns forecasts (with all the uncertainty coming with it) are about the coming 10 to 15 years, and NOT about the rest of our lives. No, this is incorrect. When financial economists forecast returns they are UNCONDITIONAL returns, meaning reg...
by bigred77
Tue Aug 02, 2016 4:35 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 21950

Re: A costly mistake made by both investors and advisors

It would have been very useful to clarify that expected returns forecasts (with all the uncertainty coming with it) are about the coming 10 to 15 years, and NOT about the rest of our lives. No, this is incorrect. When financial economists forecast returns they are UNCONDITIONAL returns, meaning reg...
by bigred77
Tue Aug 02, 2016 1:11 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 21950

Re: A costly mistake made by both investors and advisors

Expected real returns for equity portions of portfolios are going to be roughly 6% if you have a 50/50 mix of US TSM and Total International. 6% real supports 4% SWR so what's the problem ? I feel dumber with every post ! :idea: It does, but that 6% is strictly for the equity portion of the portfol...
by bigred77
Tue Aug 02, 2016 12:52 pm
Forum: Investing - Theory, News & General
Topic: A costly mistake made by both investors and advisors
Replies: 240
Views: 21950

Re: A costly mistake made by both investors and advisors

It would have been very useful to clarify that expected returns forecasts (with all the uncertainty coming with it) are about the coming 10 to 15 years, and NOT about the rest of our lives. Whether we're accumulators or retirees, this makes a HUGE difference, as periods of low returns are typically...
by bigred77
Mon Aug 01, 2016 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Switch from Allstate to Amica/USAA?
Replies: 34
Views: 3098

Re: Switch from Allstate to Amica/USAA?

I was with USAA for home and auto coverage for a number of years. I have no complaints, was satisfied with their customer service and rates. I priced my insurance a year ago and switched to Amica strictly because of prices savings (I now have auto, home, and umbrella). I have been very satisfied wit...
by bigred77
Mon Aug 01, 2016 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: What is a modest retirement (definition)?
Replies: 66
Views: 7920

Re: What is a modest retirement (definition)?

My mother lives completely within her cash flow of just under $1200/month via SS disability payments. She has a paid off condo and probably 50k in retirement accounts that she does not touch. The money is there for future medical and/or non-reoccurring expenses. She has no debt (or at least she won'...
by bigred77
Mon Aug 01, 2016 2:34 pm
Forum: Personal Consumer Issues
Topic: Should I flip my neighbor's house to save the neighborhood?
Replies: 72
Views: 8373

Re: Should I flip my neighbor's house to save the neighborhood?

It would make sense to me if I thought I could buy it, rehab it, and sell it an a reasonable time frame and make a reasonable profit given the risk level. Can you buy it for 100k, put 40k more into it, and sell it for 200k within 6 months? If so, that would probably make sense to me. Can you buy it ...
by bigred77
Mon Aug 01, 2016 9:13 am
Forum: Personal Finance (Not Investing)
Topic: What does a real estate oil bust look like
Replies: 18
Views: 2789

Re: What does a real estate oil bust look like

Katy (and the Houston suburbs in general, maybe not counting the Woodlands as I'm less familiar with that area) has always seemed like a slow and steady Real Estate market to me. There were never any huge run ups until maybe 2 years ago when the supply of housing got way too tight and prices really ...
by bigred77
Fri Jul 29, 2016 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Is retirement a serious option for me?
Replies: 14
Views: 2454

Re: Is retirement a serious option for me?

Total Assets over $1M+. Debt of 0. Potential Inheritance: 500k+ Age 61 If retirement isn't a "serious option" for you than it's not a serious option for anyone. Can you map out concrete numbers on what your expenses will be including insurance costs, a sinking fund for large non-recurring expenses (...
by bigred77
Thu Jul 28, 2016 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Retirement vs Non-Retirement Asset Allocations
Replies: 17
Views: 1259

Re: Retirement vs Non-Retirement Asset Allocations

When I was entering the workforce from school, I tried to pick a long term savings percentage to dedicate to retirement savings (long term investing). I decided to start at 25% of income and try to raise it over time to 33%. I then made lifestyle decisions (where to live, what car to buy, where to g...
by bigred77
Wed Jul 27, 2016 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Any retirees here who have been life-long renters?
Replies: 140
Views: 13050

Re: Any retirees here who have been life-long renters?

From what I've seen, if you could purchase a $XXX,XXX house in cash, you could also rent something similar using proceeds of a equivalently sized investment portfolio. What you've seen is very different from the way things work around here. In my town (affluent suburb in Upstate NY in school distri...
by bigred77
Tue Jul 26, 2016 11:49 am
Forum: Personal Consumer Issues
Topic: When does it make sense to have a second vechicle?
Replies: 33
Views: 3200

Re: When does it make sense to have a second vechicle?

It sounds like you drive roughly 22.5k miles per year. You're going to go through cars quicker than others who drive less. Your Malibu sounds like it was a good choice for you. Practical, good gas mileage, and reliable. You don't need a backup car for a 3 year old car. If something breaks, you have ...
by bigred77
Tue Jul 26, 2016 11:02 am
Forum: Personal Finance (Not Investing)
Topic: First house purchase advice
Replies: 14
Views: 1512

Re: First house purchase advice

If you are set on buying now, I would buy something suitable for kids. Get the space, schools, and location you want now. Upgrading later is a hassle and expensive. SFH vs Townhome is a personal decision for you to make. Buy something you can see yourself living in at least until your kids are teena...
by bigred77
Tue Jul 26, 2016 10:55 am
Forum: Personal Consumer Issues
Topic: What is your plan if you lose job tomorrow ??
Replies: 73
Views: 7892

Re: What is your plan if you loose job tomorrow ??

My wife and I could PROBABLY get by on her salary plus unemployment/severance for a while but we would have to cut all luxuries, new savings, and pay only the minimums on our debt servicing. I like to think I would take a few days or a week to decompress before starting the job hunt but with that bi...
by bigred77
Tue Jul 19, 2016 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: What to do with a bit of extra money each month? (UPDATED)
Replies: 41
Views: 3892

Re: What to do with a bit of extra money each month?

Right now you have an extra $400 dollars at the end of every month laying around. Your currently being taxed on this money as well. Put that $400 a month into the 403b (traditional) and invest an extra $4,800 a year for retirement. Take the tax savings ($4,800 * 15% = $720; plus an increased child t...
by bigred77
Tue Jul 19, 2016 11:44 am
Forum: Investing - Theory, News & General
Topic: NY Times article-Shiller on land and homes
Replies: 18
Views: 2939

Re: NY Times article-Shiller on land and homes

I found the article interesting and entertaining. I disagree pretty strongly on his theory that urban, megacity land prices may stall or even decline. 200 sq ft apartments might house one, single, mid 20s worker, but they are not going to be desirable for couples and families. I think real estate wi...
by bigred77
Mon Jul 18, 2016 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Should I pursue my MBA?
Replies: 33
Views: 2709

Re: Should I persue my MBA?

Where do you live (major cities have more options)? Will your employer kick in any tuition reimbursement for it? What are your post MBA career goals? Do you want to simply move into a management role with your current employer (or at least your current department/function)? How much do the local pro...
by bigred77
Thu Jul 14, 2016 10:48 am
Forum: Investing - Theory, News & General
Topic: Jason Zweig: Sorry, You're Just Going To Have To Save More Money
Replies: 16
Views: 4428

Re: Jason Zweig: Sorry, You're Just Going To Have To Save More Money

Biggest takeaway for me was that investors can't simply park money in an intermediate term bond fund and then turn a blind eye. It's now time for retail investors to read up on CD terms, EE/E and I bonds, and stable value funds. There are now significant differences in fixed income options. Not so ...
by bigred77
Thu Jul 14, 2016 9:04 am
Forum: Investing - Theory, News & General
Topic: Jason Zweig: Sorry, You're Just Going To Have To Save More Money
Replies: 16
Views: 4428

Re: Jason Zweig: Sorry, You're Just Going To Have To Save More Money

Biggest takeaway for me was that investors can't simply park money in an intermediate term bond fund and then turn a blind eye.

It's now time for retail investors to read up on CD terms, EE/E and I bonds, and stable value funds. There are now significant differences in fixed income options.
by bigred77
Wed Jul 13, 2016 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Sound bite.
Replies: 14
Views: 1442

Re: Sound bite.

I generally agree with the premise and plan to hold about 60% equities myself at that age.

I disagree with making a blanket statement like that and implying that the statement should be some sort of "rule of thumb" for people that age.
by bigred77
Wed Jul 13, 2016 10:59 am
Forum: Personal Consumer Issues
Topic: How much cash to give when invited to a wedding?
Replies: 81
Views: 9310

Re: How much cash to give when invited to a wedding?

I'm in my early 30s in the South. All of our male friends are now getting married (all the girls seem to get married at a much younger age down here). I give $100 dollars per wedding on behalf of my wife and I whether we travel out of the country for the wedding or it's 5 miles from my house. For br...
by bigred77
Wed Jul 13, 2016 9:54 am
Forum: Personal Consumer Issues
Topic: Do you tip Uber drivers?
Replies: 49
Views: 8289

Re: Do you tip Uber drivers?

I use Uber quit a bit.

I only tip a few bucks extra if I make a special request (i.e. can they stop on the way and let me run into the convenience store?)