Search found 1479 matches

by bigred77
Tue Apr 14, 2015 9:19 am
Forum: Personal Finance (Not Investing)
Topic: I... must... stop... Spending!
Replies: 25
Views: 4690

Re: I... must... stop... Spending!

sunny_socal, I do the same thing. I have found every way possible under the sun to justify too. I also need to stop doing this. If your borrowing cost is zero and your bonus compensation is secure, I don't see it as the WORST thing in the world. If you're borrowing costs are > 0 and a bonus failing ...
by bigred77
Mon Apr 13, 2015 1:54 pm
Forum: Personal Consumer Issues
Topic: Input wanted from BMW owners
Replies: 44
Views: 6144

Re: Input wanted from BMW owners

My wife and I drive an 07 x3 and an 08 328i. I bought them just off of warranty for tremendous prices. I knew they would be expensive to maintain. I figured that into my decision. it still really hurts to write the check when something needs to be done. We've paid about 1,500 - 2,000 each year for c...
by bigred77
Mon Apr 13, 2015 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Downpayment on a house
Replies: 5
Views: 715

Re: Downpayment on a house

It's hard to give specific advice without knowing the specific in's and out's of your tax situation but I think it would be prudent to strongly consider selling off company stock and options. I would start now divesting your options up to filling your current marginal tax bracket. You're going to ha...
by bigred77
Mon Apr 13, 2015 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Is there a "filling the trough" strategy?
Replies: 12
Views: 2141

Re: Is there a "filling the trough" strategy?

There's nothing wrong with having a higher withdrawal rate earlier in retirement to finance putting off SS payments (or spending more earlier while your healthy and active) but I would strongly consider a more conservative AA than I normally would if I was going to do this. I think the higher WR wil...
by bigred77
Mon Apr 13, 2015 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Downpayment on a house
Replies: 5
Views: 715

Re: downpayment

You seem to have an awful lot of exposure to your employer via company stock and options. I would try to start diversifying away from that if possible (depending on your tax situation). What is the basis on your company stock? What marginal tax bracket are you in? I assume your stock options will be...
by bigred77
Fri Apr 10, 2015 11:00 am
Forum: Investing - Theory, News & General
Topic: Vanguard: One Third of 401k Participants Not Maxing Match
Replies: 13
Views: 2043

Re: Vanguard: One Third of 401k Participants Not Maxing Mat

That's one thing that would make it tough to leave the industry -- not that I'm looking to do so. Our match was 20% before the acquisition. The new plan is a bit more convoluted (three sub plans with some differences in how the company matches/contributes) so I'm having difficulty understanding the...
by bigred77
Fri Apr 10, 2015 10:34 am
Forum: Investing - Help with Personal Investments
Topic: New guy with another student loan/investing situation
Replies: 11
Views: 813

Re: New guy with another student loan/investing situation

Geez, this is tough... I feel like you are right on the border of trying to utilize PAYE to your benefit or just throw money at this thing. I think if your aspirations are to go into something high paying or can see yourself making six figures in the next 5 years or so, I would throw 120k at this an...
by bigred77
Fri Apr 10, 2015 9:33 am
Forum: Investing - Help with Personal Investments
Topic: New guy with another student loan/investing situation
Replies: 11
Views: 813

Re: New guy with another student loan/investing situation

What is your starting income going to be? What field are you in or more specifically what can you expect your income to rise too and how fast? Are you really planning on carrying around 200k of non-dischargeable debt until your near 50 while hoping the law governing loan forgiveness doesn't change? ...
by bigred77
Thu Apr 09, 2015 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA Question
Replies: 6
Views: 629

Re: Backdoor Roth IRA Question

See if your 401k will allow you to roll over the traditional IRA balance into it. Most plans will allow this. Then you can do backdoor Roth conversion's with no tax penalty
by bigred77
Thu Apr 09, 2015 1:16 pm
Forum: Investing - Theory, News & General
Topic: The $1 Million Goal: Source of Motivation or Discouragement?
Replies: 172
Views: 21110

Re: The $1 Million Goal: Source of Motivation or Discouragem

Person A graduates from college with a degree in Business Administration at age 23 with zero debt through a combination of scholarships and her parent's wisely saving money for her in a 529. Her uncle is a partial owner at a local business and gets A an entry-level position at that company paying $...
by bigred77
Thu Apr 09, 2015 8:48 am
Forum: Personal Consumer Issues
Topic: Poll: What is the credit limit of your credit card?
Replies: 56
Views: 7256

Re: Poll: What is the credit limit of your credit card?

I had to fight tooth and nail to get a credit limit over 2500 dollars. I started working in 2008 and credit was TIGHT. I had to pay for a hotel stay on a business trip over 3 different credit cards! Now I finally have one card with a 20k limit and a couple others around 10k-15k. For some reason they...
by bigred77
Wed Apr 08, 2015 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Am I justified in being angry with executor?
Replies: 22
Views: 4165

Re: Am I justified in being angry with executor?

I deal with estates containing real property on a daily basis and I can tell you it can take FOREVER... If there are multiple states involved, that can complicate things. If there is any financing on the properties, that can take forever. If there was once financing on the property and the liens wer...
by bigred77
Wed Apr 08, 2015 9:51 am
Forum: Investing - Theory, News & General
Topic: How do I grow my Roth IRA faster than my traditional IRA?
Replies: 24
Views: 3064

Re: How do I grow my Roth IRA faster than my traditional IRA

I just keep all of my fixed income in my 401k and rebalance within it. I keep my Roth's 100% equities. I also knowingly don't tax adjust my asset allocation to account for taxable / tax free / tax deferred space. I figure it's easy enough for me to just ignore it in my accumulation stage and it will...
by bigred77
Tue Apr 07, 2015 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: Cost of College & Weighing the Merits of Top Schools
Replies: 304
Views: 28554

Re: Cost of College & Weighing the Merits of Top Schools

In Business, STEM, Academia, etc I think there is a decided advantage in going to an elite school. Many graduate and professional programs DO consider the pedigree of ones undergraduate school in the admissions process. There's a gray area where decisions have to be made on value. If you live in Atl...
by bigred77
Wed Apr 01, 2015 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Do you not strive for success because it might offend others
Replies: 30
Views: 2272

Re: Do you not strive for success because it might offend ot

Differences in means can sometimes strain relationships. It happens. Envy is a real thing.

It does not in any way affect my ambition or how I spend money.

I do watch what I say or how i talk around certain people though.
by bigred77
Wed Apr 01, 2015 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Corporate Finance vs Personal Finance
Replies: 9
Views: 1972

Re: Corporate Finance vs Personal Finance

You can try to transfer over everything if you want. There's a logical argument to be made for most any aspect of running your personal finances like a business. I like to think of my own finances as that of bigred77 inc. Some key considerations however are that: - Emotions. personal finance is just...
by bigred77
Tue Mar 31, 2015 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement AA
Replies: 5
Views: 654

Re: Retirement AA

1.) 1 million in a SPIA at 66 will likely provide for all of your spending needs.

2.) 1 million in LifeStrategy Moderate Growth fund to fund COLA adjustments, if needed
by bigred77
Thu Mar 26, 2015 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Need Some Advice-Recovered from Great Recession
Replies: 12
Views: 2248

Re: Need Some Advice-Recovered from Great Recession

I had a very positive condo owning experience. Bought in 2009 for 175k. Sold in 2013 for 210k. Condo is worth almost 250k today. i was in a newer building (built around 2003) and HOA fees were just over 300 per month. This was for a 1 bed apartment (850 sq ft). There is less privacy, sometimes it wa...
by bigred77
Wed Mar 25, 2015 1:22 pm
Forum: Investing - Theory, News & General
Topic: Should a BH investor never use futures/options?
Replies: 70
Views: 6420

Re: Should a BH investor never use futures/options?

Whats with all the derivatives talk on bogleheads recently?? A.) The vast majority of bogleheads have no need for this nor should they utilize options or futures. B.) They can be useful as hedging instruments, usually for business purposes. C.) They can be used to speculate, if you want to and under...
by bigred77
Wed Mar 25, 2015 1:15 pm
Forum: Investing - Theory, News & General
Topic: U.S. cash pouring into international
Replies: 23
Views: 3136

Re: U.S. cash pouring into international

I stay true to my AA and do not "tactically" overweight sectors or countries...

That being said...

With Valuations where they are abroad (vs the US market) and with the dollar being as strong as it is right now... makes alot of sense to me...
by bigred77
Tue Mar 24, 2015 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Help w/ adult child hard-wired for poor financial decisions?
Replies: 45
Views: 6201

Re: Help w/ adult child hard-wired for poor financial decisi

Many people that age need to get a kick in the pants from "life" before they start to "get it".

Shes still really young. I would remain supportive and keep encouraging positive steps in the right direction.
by bigred77
Mon Mar 23, 2015 12:16 pm
Forum: Investing - Theory, News & General
Topic: [New Member Observations- Covered Calls, Financial Advisors]
Replies: 227
Views: 24927

Re: [New Member Observations- Covered Calls, Financial Advis

I think we got offtrack with the discussion of LTCM. My recollection is they were caught on the wrong side of a convergence trade in foreign bonds which ultimately led to their downfall. It was not selling covered calls on something like SPY. Uncle Pennybags, I understand you dislike the strategy be...
by bigred77
Fri Mar 20, 2015 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: Help w/ my mom's financial situation
Replies: 18
Views: 2217

Re: Help w/ my mom's financial situation

I am in a VERY similar situation to the OP. - medical problems, especially from long time smokers, can come fast and hard. my mom is on SSDI at 59. - My mom is trying to make it on a paid off condo, freshly bought car, and 1200 a month in SSDI. She has maybe 50k in IRAs. She always complains she doe...
by bigred77
Thu Mar 19, 2015 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Lowest income at which able to Max 401k and IRA
Replies: 31
Views: 3757

Re: Lowest income at which able to Max 401k and IRA

I would immediately switch from a Roth 401k to a traditional 401k in your situation. Just doing that and then paying off the car note at your present income would free up TONS of cashflow. if you switch jobs for a paycut you will simply have to reduce your lifestyle, your savings, or a combination o...
by bigred77
Thu Mar 19, 2015 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Can we afford a condo?
Replies: 16
Views: 2427

Re: Can we afford a condo?

As long as you don't plan on retiring immediately upon purchase I think you have no problems.

If you can commit to working 2 more years I would tell you to go ahead and buy it.
by bigred77
Thu Mar 19, 2015 3:47 pm
Forum: Investing - Theory, News & General
Topic: [New Member Observations- Covered Calls, Financial Advisors]
Replies: 227
Views: 24927

Re: Observations from a first time poster, long time reader.

For those who actually understand what a covered call is, please explain how the pennies/steamroller analogy applies. The steamroller is the stock market crash. Normally we agree to incorporate it into portfolios because the rewards are equally outsized. But, when we agree to limit the rewards in e...
by bigred77
Thu Mar 19, 2015 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Experience with PenFed refinance
Replies: 75
Views: 8064

Re: Experience with PenFed refinance

I wanted to bump this older thread to see if anyone has had any experience with Penfed refinancings lately. I was just ultimately denied from a refinance with another company and it was a complete and utter nightmare. I had a bad appraisal but i still was plenty under 80% LTV. The loan was approved,...
by bigred77
Wed Mar 18, 2015 2:36 pm
Forum: Investing - Help with Personal Investments
Topic: Interest rate hike signaled
Replies: 25
Views: 3119

Re: Interest rate hike signaled

I have a watchlist of every single Vanguard ETF, including 52 different ETFs. Literally every single one of them is up right now. Every single one. How is this even possible? My guess: A lot of people were moving to cash until after the announcement. Those people plowed cash right back into both eq...
by bigred77
Wed Mar 18, 2015 12:15 pm
Forum: Investing - Theory, News & General
Topic: [New Member Observations- Covered Calls, Financial Advisors]
Replies: 227
Views: 24927

Re: Observations from a first time poster, long time reader.

- If we assume efficient markets, this is a zero sum strategy. I think most academics would tell you that on average, you would have a string of up years (vs just holding the ETF as a benchmark) and then lag the benchmark the following year by enough to basically equal the benchmark, net of transact...
by bigred77
Tue Mar 17, 2015 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Did you buy a house because of low interest rate?
Replies: 25
Views: 2657

Re: Did you buy a house because of low interest rate?

I upgraded earlier then I would have and bought much more house than I would have due to low interest rates. It worked out well for me. I understand this was not a risk free decision. I have no problem borrowing (to buy assets) when interest rates are low and I have no problem lending when interest ...
by bigred77
Fri Mar 13, 2015 10:58 am
Forum: Investing - Theory, News & General
Topic: Options Trading - very simple intro book wanted
Replies: 15
Views: 2242

Re: Options Trading - very simple intro book wanted

I have a textbook from an old finance class that I thought was pretty well organized and a relatively easy read.

Options, Futures, and other Derivatives
John C Hull
by bigred77
Wed Mar 11, 2015 3:57 pm
Forum: Investing - Theory, News & General
Topic: If 2% is real, we are . . . . ?
Replies: 63
Views: 8049

Re: If 2% is real, we are . . . . ?

Understand that Dr Bernstein is only relaying his CALCULATIONS for EXPECTED returns... This is simply him taking calculated values and plugging them into formulas that the majority of finance academics accept to be the best models we have... Most would agree with his calculated values... HOWEVER: - ...
by bigred77
Tue Mar 10, 2015 10:01 am
Forum: Investing - Theory, News & General
Topic: The Single Greatest Predictor of Future Stock Market Returns
Replies: 19
Views: 4164

Re: The Single Greatest Predictor of Future Stock Market Ret

Its human nature to look for patterns in random data.

I have to think at least some of this article comes from this tendency.
by bigred77
Mon Mar 09, 2015 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: How to create a 3% return portfolio?
Replies: 52
Views: 6996

Re: How to create a 3% return portfolio?

You seem like an ideal candidate for an immediate annuity if your over the age of 60 or so. I would recommend you look into those more closely and/or tell us why you dislike them so much. 30/70 is not an inappropriate AA for you but I don't necessarily think it's optimal either if you can live on 3%...
by bigred77
Mon Mar 09, 2015 10:42 am
Forum: Investing - Help with Personal Investments
Topic: Re-balancing with a brokerage link 401k
Replies: 6
Views: 893

Re: Re-balancing with a brokerage link 401k

I have the same with my 401k at fidelity. I agree you need to revisit your time frames for "rebalancing". I only do it once per year. You can also choose your specific "lots" when you choose to sell and avoind any early redemption fee (unless your selling the whole fund and you m...
by bigred77
Fri Mar 06, 2015 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Does My Daughter Need A Prenup?
Replies: 175
Views: 10571

Re: Does My Daughter Need A Prenup?

I find it disturbing that any parent believes they do or should have that kind of control over their adult children. You need to recognize your role in the relationship. She's 25, get out of the way and let her make her own decisions. You can make suggestions but I'd caution that unsolicited advice...
by bigred77
Fri Mar 06, 2015 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Anyone had your home appraised recently?
Replies: 23
Views: 2299

Re: Anyone had your home appraised recently?

I'm in the process of refinancing right now and just had the appraisal done. My appraiser did not know or understand my area and valued my property about 10% below what it should be. Zillow on the other hand overestimates my property value by around 10%. My property probably isn't even within their ...
by bigred77
Thu Mar 05, 2015 3:07 pm
Forum: Investing - Theory, News & General
Topic: Negative bond yields
Replies: 25
Views: 2956

Re: Negative bond yields

If buying negative yield bonds was clearly seen as a bad idea by nearly everybody, they wouldn't be able to sell them, would they? Clearly that's not how they are viewed by the bond market so maybe it would be worth thinking it through. You might not like it, but that's not really the main issue is...
by bigred77
Thu Mar 05, 2015 10:32 am
Forum: Investing - Help with Personal Investments
Topic: Phillip Morris International PM
Replies: 5
Views: 483

Re: Phillip Morris International PM

a.) I would not invest in individual stocks in the first place. If you can sell, incur no capital gains, and reinvest in a more boglehead manner (that presumably you agree is a better fit for you) than I would certainly do so. b.) There are worse things to speculate on than addiction remaining profi...
by bigred77
Wed Mar 04, 2015 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Best strategy bridging into retirement
Replies: 37
Views: 4515

Re: Best strategy bridging into retirement

1.) pay off the mortgage balance 2.) Take pension as soon as eligible. 3.) defer SS till 70. 4.) I would annuitize a chunk of my 401k (maybe 1/4 to 1/3). 5.) I would manage my withdrawls from other sources to maximize my tax savings, re-evaluate my AA, and let loose of the purse strings (you have mo...
by bigred77
Tue Mar 03, 2015 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Anyone investing in Vanguard Global ex-U.S. Real Estate ETF
Replies: 16
Views: 2580

Re: Anyone investing in Vanguard Global ex-U.S. Real Estate

I split my REIT allocation 50/50 between VNQ and VNQI.

I have not seen a better (cheaper) alternative to satisfy my need for exposure to international real estate.
by bigred77
Mon Mar 02, 2015 6:44 pm
Forum: Investing - Theory, News & General
Topic: ...it is madness to risk losing what you need in pursuing wh
Replies: 48
Views: 6547

Re: ...it is madness to risk losing what you need in pursuin

To compare with SWR, USA Today got quotes of 3.79% and 3.63% payouts for an inflation adjusted annuity for a 65 year old man: http://www.usatoday.com/story/money/columnist/waggoner/2012/10/18/waggoner-inflation-adjusted-annuity/1639119/ But that ends when the man dies, so it not directly comparable...
by bigred77
Mon Mar 02, 2015 6:31 pm
Forum: Investing - Theory, News & General
Topic: Poll: Average E/R [Expense Ratio]
Replies: 49
Views: 5594

Re: Poll: Average E/R

I am at 12 basis points.

I slice and dice. Everything I own is in Fidelity Spartan Funds and Vanguard ETFs.

My yearly expenses (including 5 trading commisions per year at Fidelity for the ETFs) are equal to about 13.5 basis points.
by bigred77
Tue Feb 24, 2015 10:01 am
Forum: Personal Finance (Not Investing)
Topic: How much did you have saved up for retirement at age 30?
Replies: 173
Views: 19934

Re: How much did you have saved up for retirement at age 30?

Barring any huge market swings in the next month I'll be right at 275k retirement 400k NW Came from a combination of aquiring a STEM degree, early and often investing during the market bottom in 09', a pretty good ESOP, and the purchase of a foreclosure for our first home. Consequently these are th...
by bigred77
Mon Feb 23, 2015 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Chase for everyday banking
Replies: 28
Views: 3053

Re: Thoughts on Chase for everyday banking

If you do not need to go into a local branch all that often, you should check out Fidelity's Cash Management account. Free checks, no fees, free bill pay, free ATM reimbursements etc. Plus my employer 401k is at fidelity so i have my IRAs there as well. Very nice to have all my financial informatio...
by bigred77
Mon Feb 23, 2015 9:38 am
Forum: Personal Finance (Not Investing)
Topic: What % of your gross income do you spend on mortgage/rent?
Replies: 155
Views: 15286

Re: What % of your gross income do you spend on mortgage/ren

Yeesh...

PITI + HOA fees = 30% of base salaries...

I thought I was right in line but now I feel like a spendthrift... At least this is on a 20 yr mortgage...
by bigred77
Mon Feb 16, 2015 5:56 pm
Forum: Investing - Theory, News & General
Topic: Average amount saved for retirement by age
Replies: 133
Views: 32074

Re: Average amount saved for retirement by age

The guesstimates on many online links are way off. The best source for this kind of information is from EBRI's annual surveys and data. They break down the amount of median and average savings by age group and by salary. A family earning between $50,000 and $100,000 had an average amount of $129,00...
by bigred77
Mon Feb 16, 2015 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: One stock
Replies: 35
Views: 2815

Re: One stock

if i had to buy today at today's prices... XOM (Exxon)
by bigred77
Mon Feb 16, 2015 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: Projection at age 28 - Is this correct?
Replies: 10
Views: 1759

Re: Projection at age 28 - Is this correct?

OP, your projections for final account value in nominal dollars are done correctly (one could argue your projecting to put your yearly contributions in on Jan 1st every year so your final value is being slightly overstated). I don't agree that 8% projected returns are outlandish. No one knows what y...
by bigred77
Thu Feb 12, 2015 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: 401k Loan for house
Replies: 22
Views: 2737

Re: 401k Loan for house

I account for my 401k loan as a fixed income investment for AA purposes in my portfolio. When i put on my lender hat I've been quit pleased with the 4.25% return I've seen when comparing the loan to my alternative (TBM). When i put on my borrower hat I've been quite pleased to borrow at a 4.25% rate...

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