Search found 1843 matches

by bigred77
Wed Apr 20, 2016 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: What do you wish you had known in your early 20's?
Replies: 46
Views: 5760

Re: What do you wish you had known in your early 20's?

I wish I had known to buy the worst house in a good neighborhood instead of a new house in a so-so neighborhood. I'm curious why you say that. In TMND, the authors suggest doing exactly the opposite, so that you're not constantly trying to keep up with the Joneses in a higher-end neighborhood. It's...
by bigred77
Wed Apr 20, 2016 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: What do you wish you had known in your early 20's?
Replies: 46
Views: 5760

Re: What do you wish you had known in your early 20's?

My 2 pieces of advice to anyone doing IB in New York would be:

- live on your salary alone and try to bank the Bonus.
- 401k's and other tax deductible accounts are your best friend.
by bigred77
Wed Apr 20, 2016 10:53 am
Forum: Investing - Theory, News & General
Topic: Current Valuations US v. Int & Expected Returns
Replies: 22
Views: 3539

Re: Current Valuations US v. Int & Expected Returns

I'm curious if anyone has good numbers for current valuations for US, International, and Emerging Markets and the resulting expected returns. Why wouldn't the expected returns be the same for large cap developed markets in the US and International? No intelligent investor is going to put his money ...
by bigred77
Wed Apr 20, 2016 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Cannot Pay Huge Tax Burden
Replies: 107
Views: 11054

Re: Cannot Pay Huge Tax Burden

20 years is a VERY long time to plan for and its basically impossible to predict what the tax law situation and/or his own personal financial situation. That being said, if I myself was in his position I would do the following: - Are all of these (or at least the majority of them) federal loans? If ...
by bigred77
Wed Apr 20, 2016 9:36 am
Forum: Personal Finance (Not Investing)
Topic: What's a reasonable mortgage amount for me?
Replies: 11
Views: 2261

Re: What's a reasonable mortgage amount for me?

You are being very conservative and can no doubt afford it. You are putting roughly 50% down on the house you most want your family to live in. After that you will still have a portfolio of financial assets worth 2X what your house costs. You're new mortgage payment will be 35% of net take home pay ...
by bigred77
Tue Apr 19, 2016 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: Reverse Mortgage - To pay off existing mortgage?
Replies: 6
Views: 898

Re: Reverse Mortgage - To pay off existing mortgage?

I've been reading some of Scott Burns' articles on them over at the asset builder blog (an author I really respect). The vast majority of Americans have most of their wealth in home equity. It's just a reality (maybe not applicable to Bogleheads). These products can be options to help them increase ...
by bigred77
Tue Apr 19, 2016 9:25 am
Forum: Personal Consumer Issues
Topic: Law School Advice
Replies: 89
Views: 9794

Re: Law School Advice

Does she want to work in Big Law (long hours, good pay, little control of your schedule, up or out mentality) then transfer to Vandy and take your shot. If she doesn't, there is no way I would leave I school in which I'm getting a full freight scholarship. It's so rare to get out of professional sch...
by bigred77
Fri Apr 15, 2016 9:08 am
Forum: Personal Finance (Not Investing)
Topic: When was the most stressful financial time in your life?
Replies: 94
Views: 13367

Re: When was the most stressful financial time in your life?

I am impressed with the resilience of members here. I have been lucky to not really have a whole lot to complain about. The most difficult for me was when I graduated from college in 2008. I was fortunate enough to have a full time job with a respectable salary lined up by the spring of my senior ye...
by bigred77
Fri Apr 15, 2016 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Magic Number? How much to save for retirement
Replies: 45
Views: 8024

Re: Magic Number? How much to save for retirement

Its just not a very fruitful exercise for the OP to try and project out a "magic retirement number". Keep saving 20%-33% for retirement, throw a little extra in the 529s or on the mortgage if you can, enjoy the rest. Be confident in your portfolio AA. Stay the course. Re-evaluate in 10 yea...
by bigred77
Tue Apr 05, 2016 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: Thought I was on the right track, but apparently not
Replies: 60
Views: 5583

Re: Thought I was on the right track, but apparently not

First, you are definitely in the top 10% of your age group in terms of networth and financial assets. You have nothing to be ashamed of in terms of progress made thus far. Now if you want to go on saving less than 20k a year and wind up being able to spend an inflation adjusted 120k per year without...
by bigred77
Tue Apr 05, 2016 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Refinance now or Wait for rate adjustment
Replies: 21
Views: 3689

Re: Refinance now or Wait for rate adjustment - Update

I wanted to provide an update to my mortgage situation, and seek your advice. Current loan amount: $40k. Interest rate 2.75% (on a 5/1 yr ARM).The rate is scheduled to reset on Oct. 1, 2016. It is based on Libor 1 yr rate +2.5%. Expect to payoff the loan by end of 2019 in all the scenarios below (w...
by bigred77
Tue Apr 05, 2016 10:24 am
Forum: Investing - Theory, News & General
Topic: Are Bogleheads too conservative?
Replies: 135
Views: 17124

Re: Are Bogleheads too conservative?

Bogleheads as a whole are a very financially conservative and risk adverse group in my opinion (that's not necessarily a bad thing). The 3 fund portfolio however, is definitely not "too conservative" (it depends way more on your split among the 3 funds anyway). It will work just fine to me...
by bigred77
Tue Apr 05, 2016 9:22 am
Forum: Personal Finance (Not Investing)
Topic: starter home vs. final home
Replies: 37
Views: 4659

Re: starter home vs. final home

If you can afford your "dream home" on your current income and only need maybe 1-3 years to save up the down payment, then by all means wait it out and go for the dream home. If your "dream home" would require a household raise of 30% and about 5 years to save up 20% down, I woul...
by bigred77
Fri Apr 01, 2016 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Please explain "pocket-change prepayments" on a mortgage
Replies: 47
Views: 6126

Re: Please explain "pocket-change prepayments" on a mortgage

Just wanted to point out for the sake of clarity to the OP, you don't have to physically write out 2 separate checks. If you send in a payment that's higher than the required amount, the additional amount is applied to the principal balance. The accelerated reduction in principal lets you pay less i...
by bigred77
Thu Mar 31, 2016 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Future college grad
Replies: 4
Views: 340

Re: Future college grad

- Max your 401k from day 1. - Max your Roth IRA with monthly contributions (5500/number of paychecks per year). - Live close to work if possible (minimize your commute). Unless this city is Chicago I'm fairly confident you can find a nice 1 bedroom apartment near work that's affordable. - Put some c...
by bigred77
Thu Mar 31, 2016 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Please explain "pocket-change prepayments" on a mortgage
Replies: 47
Views: 6126

Re: Please explain "pocket-change prepayments" on a mortgage

For all 3 mortgages I've had in my life (all 30 year), I added enough extra to the first payment to make sure 50% of the check was applied to principal (excluding the escrow amount). Then I kept that payment fixed moving forward. Seemed like a good idea to throw a little something extra on it. Not a...
by bigred77
Thu Mar 31, 2016 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: How To Withdraw Roth IRA Earning for House Downpayment
Replies: 3
Views: 522

Re: How To Withdraw Roth IRA Earning for House Downpayment

If you do this, just withdraw the amounts 10 days before your scheduled closing. It shouldn't be a big deal.

I would suggest however, that you look into taking a 401k loan instead. Withdrawing from Roth space would be my absolute last resort (that space is precious).
by bigred77
Wed Mar 30, 2016 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Refinancing to 30 years ?
Replies: 5
Views: 798

Re: Refinancing to 30 years ?

I would say no, do not refinance, for a variety of reasons. - I would not want to pay fees and a higher interest rate just for the benefit of a lower monthly payment if I am already handling current payment just fine - There's no reason to do this now. You might follow through and move to a differen...
by bigred77
Tue Mar 29, 2016 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Which Engineering Discipline for the next 20+ years !!!
Replies: 122
Views: 10025

Re: Which Engineering Discipline for the next 20+ years !!!

The next 20 years?

Petroleum engineers will still be in high demand. Make sure you can handle the wild swings in the industry.

Financial Engineering is also a growing field. If you help create the next collateralized debt obligation, you will not want for money :mrgreen:
by bigred77
Tue Mar 29, 2016 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Investing Young + LBYM = No Corp Ladder
Replies: 92
Views: 10487

Re: Investing Young + LBYM = No Corp Ladder

Middle aged professionals >$300k income that I've seen usually have networth around 500k-1m. Keep in mind many of these professionals start their career out $200-400k in the hole and 5-15 years behind everyone else due to additional schooling. Just what I've seen. YMMV This pretty much jives with m...
by bigred77
Tue Mar 29, 2016 1:15 pm
Forum: Personal Consumer Issues
Topic: best way to negotiate with cable company?
Replies: 38
Views: 5248

Re: best way to negotiate with cable company?

With Comcast I call once a year and just tell them I want to cancel my service. They transfer me to a retention specialist. They ask me why I want to cancel. I tell them the price is more than I can afford. They tell me I can choose a less expensive package. I tell them i want the exact same package...
by bigred77
Tue Mar 29, 2016 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Competing Offers when Selling Home
Replies: 20
Views: 1722

Re: Competing Offers when Selling Home

I would respond to the 2 offers by saying "We have multiple bids. There is a previously scheduled open house on X. Please submit final and best offer before midnight the day after X". Make sure everybody who attends the open house is aware that you are reviewing final and best offers the n...
by bigred77
Tue Mar 29, 2016 10:59 am
Forum: Investing - Theory, News & General
Topic: 3% annuity costs a little more than a CPI-U adjusted one
Replies: 17
Views: 1737

Re: 3% annuity costs a little more than a CPI-U adjusted one

I think for me it would depend on how large a chunk of my portfolio I was considering annuitizing. If I was using 50% or more of my investable assets, I would opt for the CPI-U adjusted product. if I was using 15%-25% of my investable assets, I would use the fixed, nominal product and adjust my rema...
by bigred77
Mon Mar 28, 2016 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Comprehensive Retirement Guide
Replies: 10
Views: 1981

Re: Comprehensive Retirement Guide

I just went through getting my wife signed up for Medicare and I would highly recommend the "Medicare for Dummies" book despite its condescending title. Is is somehow done in association with AARP but I am not sure of the relationship. Be sure to get the current edition since a lot has ch...
by bigred77
Fri Mar 25, 2016 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Best & Worst Financial Decisions?
Replies: 92
Views: 10420

Re: Best & Worst Financial Decisions?

Worst: Buying a Toyota in 2008 :D
Best: Buying a BMW in 2014 :D

I financed the Toyota with 0 down, at 7.9% interest over 72 months, and even bought and financed the extended warranty :shock:
I bought the BMW with a personal check :D
by bigred77
Fri Mar 25, 2016 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Safe Withdrawal Rate at different retirement ages?
Replies: 10
Views: 2303

Re: Safe Withdrawal Rate at different retirement ages?

My own very unscientific view on the topic: Age 49 and below: all else equal, if I can live my desired lifestyle on a 3.5% withdrawal rate, I'm done. Ages 50 -60: all else equal, if I can live my desired lifestyle on a 4% withdrawal rate, I'm done. Ages 60 -65: all else equal, if I can live my desir...
by bigred77
Fri Mar 25, 2016 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Financially, how have you done/doing vs. your parents?
Replies: 134
Views: 13523

Re: Financially, how have you done/doing vs. your parents?

I'm a millennial (early 30's) who has already exceeded all of my immediate family financially. My dad left his home country for England at 18, earned a degree in Mechanical Engineering, and worked/traveled internationally for some time after. He met my mother in the US around age 30 while on a work ...
by bigred77
Wed Mar 23, 2016 10:17 am
Forum: Personal Finance (Not Investing)
Topic: Has your definition of "a lot" of money changed?
Replies: 57
Views: 6695

Re: Has your definition of "a lot" of money changed?

How can anyone raise a family and save appropriately with a household income under 200k per year?!?!? I don't know what the cost of living is where you live. However, DW and I raised two children, sent both of them to college without loans, paid off our house, and retired comfortably. We never had ...
by bigred77
Wed Mar 23, 2016 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Has your definition of "a lot" of money changed?
Replies: 57
Views: 6695

Re: Has your definition of "a lot" of money changed?

When I was a senior in college (2008): $1,000 dollars seems like "a lot". A job paying 40k per year? There would be nothing I couldn't buy! Only VPs at Exxon and Apple make over 200k per year! 8 years later: $10,000 seems "not insignificant". If my annual savings dips below 40k ...
by bigred77
Tue Mar 22, 2016 3:03 pm
Forum: Investing - Theory, News & General
Topic: The Next 40 Years
Replies: 35
Views: 4310

Re: The Next 40 Years

What is your reason for being so conservative on your allocation? Unless you don't think 75/25 is conservative I guess. I think most models would say you should be 80%+ stocks in your early 30's. Not saying your allocation is wrong, just questioning. I personally am 90%+ stocks and plan to be that ...
by bigred77
Tue Mar 22, 2016 2:01 pm
Forum: Investing - Theory, News & General
Topic: The Next 40 Years
Replies: 35
Views: 4310

Re: The Next 40 Years

I am early 30s myself. I try to invest 1/3 of my household income (I don't make it, probably around 25% right now but I'm still reducing debt as best I can). I have a reasonable and appropriate AA (75/25 for me, tilted towards small, value, and EM). I don't really "plan" with an expected p...
by bigred77
Tue Mar 22, 2016 10:48 am
Forum: Personal Consumer Issues
Topic: Cost of home projects
Replies: 11
Views: 1401

Re: Cost of home projects

We did almost the exact same type job in my mothers suburban Houston home before putting it on the market 2 years ago. 25 years old and 25 years of deferred maintenance. 3-4 bedrooms, 2.5 baths, 2400 sq ft, blue collar neighborhood priced from 175k - 250k. Brand new laminate floor throughout (tile i...
by bigred77
Tue Mar 22, 2016 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Take Small Mortgage or TSP Loan?
Replies: 11
Views: 1105

Re: Take Small Mortgage or TSP Loan?

Just use your emergency fund to pay cash. Immediately open up a HELOC if your worried about unexpected needs popping up at just the wrong time. Pay absolutely no interest unless you actually draw on the HELOC for some unforeseen reason. Probably would be lower interest than a TSP loan plus tax deduc...
by bigred77
Thu Mar 17, 2016 4:59 pm
Forum: Investing - Theory, News & General
Topic: Friendly Reminder of the Enemy
Replies: 8
Views: 3035

Re: Friendly Reminder of the Enemy

Excellent post and reminder. Investing is REALLY simple and 90% of it I have learned was from the first several hours of reading. The other 10% is unlikely to contribute much, if any, but if fun to discuss on here as mental exercises go. Here are the basics for the younger investors out there: 1. S...
by bigred77
Tue Mar 15, 2016 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: portfolio questions
Replies: 11
Views: 996

Re: portfolio questions

I would suggest utilizing the Fidelity brokerage link option and investing in Fidelity's Spartan index Funds. There are no fees to use these and I consider them perfect substitutes to Vanguards funds (at least the basic ones: total stock market, total international, total bond, etc.) I would focus o...
by bigred77
Tue Mar 15, 2016 9:53 am
Forum: Investing - Help with Personal Investments
Topic: To Sell or Keep my Investment Property??
Replies: 34
Views: 3837

Re: To Sell or Keep my Investment Property??

How much do you have invested in financial assets vs how much equity do you have in this rental? If I had 500k in financial assets and 500k equity in the rental, I would be concerned that 50% of my money is in a single asset many miles away from me. If I had 2 million in financial assets and 500k eq...
by bigred77
Mon Mar 14, 2016 8:57 am
Forum: Investing - Help with Personal Investments
Topic: 28 year old, $6mm, how to retire?
Replies: 71
Views: 15598

Re: 28 year old, $6mm, how to retire?

60/40 portfolio.
Live on 10k per month.
Have fun until you get bored.
Figure out what you want to do next with your life.
by bigred77
Tue Mar 08, 2016 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Setting lower expectations
Replies: 13
Views: 1810

Re: Setting lower expectations

... I would call this unprecedented because of whats implied above from those SWR. Per FireCalc, a 60/40 portfolio (10 basis points in fees, 5 year treasury interest rates for fixed income) with an initial withdrawal rate of 3.33% and adjusted each year for inflation has a 100% success rate of last...
by bigred77
Tue Mar 08, 2016 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC paydown vs. 1st Mortgage paydown. Which first?
Replies: 5
Views: 393

Re: HELOC paydown vs. 1st Mortgage paydown. Which first?

Not that it's a huge deal but you could probably refinance both into a 15 year mortgage and cut your interest sate to 3% or less. Just keep paying what your currently paying and your payoff date would happen even faster.

You could also look into a 10 year refinance if terms are worth it.
by bigred77
Tue Mar 08, 2016 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Setting lower expectations
Replies: 13
Views: 1810

Re: Setting lower expectations

I think advisers tell their clients this because if the client's expectations aren't met, the adviser is more likely to be fired. Plus, if we do get an 8% return, the client is getting less after all fees are deducted. On the other hand, if you keep reading Bogleheads you will be inundated with pos...
by bigred77
Tue Mar 08, 2016 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Setting lower expectations
Replies: 13
Views: 1810

Re: Setting lower expectations

I think advisers tell their clients this because if the client's expectations aren't met, the adviser is more likely to be fired. Plus, if we do get an 8% return, the client is getting less after all fees are deducted. On the other hand, if you keep reading Bogleheads you will be inundated with post...
by bigred77
Mon Mar 07, 2016 11:55 am
Forum: Personal Consumer Issues
Topic: Property Tax Abatement and Escrow Account Trouble
Replies: 8
Views: 1038

Re: Property Tax Abatement and Escrow Account Trouble

I had similar issues with Wells Fargo when they were my loan servicer but they were pretty easy to work with.

I would suggest you call back and hope for a more competent person. I would keep escalating it each time until you get to someone who can help you.
by bigred77
Thu Mar 03, 2016 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: Do You Give Your Friends Investment Advice?
Replies: 58
Views: 5534

Re: Do You Give Your Friends Investment Advice?

I used to be very excited to discuss personal finance topics at any opportunity. Now I mainly wait to be asked and gauge the response I get before going any deeper. My family members now seek my advice on all financial matters.
by bigred77
Thu Mar 03, 2016 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: REPAYE program
Replies: 23
Views: 2328

Re: REPAYE program

Note that even though the formula for REPAYE seems to indicate lower payments than IBR, REPAYE has no cap on payments as income rises (unlike IBR). Once someone has an attending level salary their payments can increase far beyond the standard payment amount. As far as I can tell, there is no clear ...
by bigred77
Thu Mar 03, 2016 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Has your number changed?
Replies: 52
Views: 7429

Re: Has your number changed?

I have a pie in the sky number that I like to dream about but being so early in the accumulation stage I also just try to save and grow the pot as best I can.
by bigred77
Thu Mar 03, 2016 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Does everyone really need to save $1 million for retirement?
Replies: 225
Views: 34342

Re: Does everyone really need to save $1 million for retirement?

Currently, the typical "retirement age" family has a median of ~$150k in retirement assets. How exactly do those millions of retirees maintain shelter, pay for food, and healthcare? They don't all have huge pensions. They have SS and Medicare...which you won't have if you RE at 45 (your s...
by bigred77
Thu Mar 03, 2016 11:37 am
Forum: Personal Finance (Not Investing)
Topic: I know it's nuts! Buying stake in LLC at bankruptcy auction?
Replies: 12
Views: 2053

Re: I know it's nuts! Buying stake in LLC at bankruptcy auction?

My understanding (and I know this is probably a huge oversimplification) is that the whole point of LLCs and Corporations is that the company owners can not be found personally liable for anything (assuming they did not break the law and acted in good faith). They could only lose the equity they put...
by bigred77
Thu Mar 03, 2016 11:27 am
Forum: Personal Consumer Issues
Topic: House size advice for when the kids start leaving home?
Replies: 38
Views: 3469

Re: House size advice for when the kids start leaving home?

I would consider buying the big 4/5 bedroom house now and then downside in 10 years or so when the youngest child is out of college. There is a risk of one or both of you becoming emotionally attached to "home" and not wanting to move. I've seen it a lot with parents and there peers group ...
by bigred77
Wed Mar 02, 2016 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Grad school: student loans vs. family resources?
Replies: 12
Views: 1081

Re: Grad school: student loans vs. family resources?

- If the student doesn't qualify for subsidized financial aid; whatever loan they get will start to accrue interest immediately while subsidized loans will have deferred interest. At 6.8% a year they will go deeper and deeper into debt before beginning payback. I don't think subsidized (interest de...
by bigred77
Wed Mar 02, 2016 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Grad school: student loans vs. family resources?
Replies: 12
Views: 1081

Re: Grad school: student loans vs. family resources?

Its almost always preferable to accept family assistance if available It sounds like your talking about law school. Maybe if the student always dreamed of being a public defender and would likely qualify for loan forgiveness they could use the loan money instead. The student could then receive the f...