Search found 1894 matches

by bigred77
Wed Aug 16, 2017 4:38 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: World Isn't Flat-Invest Accordingly
Replies: 71
Views: 7268

Re: Larry Swedroe: World Isn't Flat-Invest Accordingly

WARNING! For those of you who are staunch TSMers, if you find this article convincing and start considering delving more into international and EM, international small, international small value, emerging small and value, you are actually taking your first dip into the world of Factor investing. Su...
by bigred77
Wed Aug 16, 2017 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Plan for making child pay for part of college
Replies: 111
Views: 6375

Re: Plan for making child pay for part of college

As another said, there's a wide range of kids and parents, and rules that work for one set of circumstances may not work for another. A downside to this process - by the time you can figure out whether your particular strategy worked for your kids, it's too late to do much about it. Even if you hav...
by bigred77
Wed Aug 16, 2017 4:09 pm
Forum: Investing - Theory, News & General
Topic: The Mathematics of Retirement Investing
Replies: 123
Views: 15223

Re: The Mathematics of Retirement Investing

In my situation, if my returns were 5.5% instead of 6.9%, over a not too long-term period of 16 years, I would need to increase my gross savings rate from 50% to 63% in order to reach the same ending ending amount. That would require a lot of additional sacrifice for us, especially since all of our...
by bigred77
Wed Aug 16, 2017 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund in Taxable... ok for me?
Replies: 27
Views: 1982

Re: Bond Fund in Taxable... ok for me?

Thanks for the excellent advice so far. It sounds like I should focus on investing in my sidelined cash in FSTVX (Total US Stock Market) in my Taxable and re-balance the IRA's to get my desired allocation of FSITX (US Bond Market) in my IRA's. So a follow-up question... between the Traditional and ...
by bigred77
Wed Aug 16, 2017 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund in Taxable... ok for me?
Replies: 27
Views: 1982

Re: Bond Fund in Taxable... ok for me?

I would rebalance in your tax advantaged accounts. That's where you want to do your rebalancing anyway, with no tax consequences. Plus it takes about 4 clicks of the mouse and can be done in 5 min. Hardly a hassle. Then hold equities in taxable. There more tax efficient. You can tax loss harvest in ...
by bigred77
Wed Aug 16, 2017 12:38 pm
Forum: Investing - Theory, News & General
Topic: Study: The Rate of Return on Everything, 1870-2015
Replies: 85
Views: 12609

Re: Study: The Rate of Return on Everything, 1870-2015

I perused the paper and specifically focused on their methodology used in real estate returns. To be honest I couldn't quite wrap my head around it. I question the validity of their findings, but it's probably not fair to criticize if I can't even understand how they constructed their data set. My m...
by bigred77
Wed Aug 16, 2017 12:20 pm
Forum: Investing - Theory, News & General
Topic: Can Bogle's philosophy lead to alt 3-fund investment phobia, nihilism, decision paralysis, etc.
Replies: 11
Views: 1399

Re: Can Bogle's philosophy lead to alt 3-fund investment phobia, nihilism, decision paralysis, etc.

I am a big believer that a boglehead portfolio will give you the best risk-adjusted returns. Not the best or highest absolute returns, but the best risk adjusted returns. I am also a big believer that a Boglehead portfolio will not allow you to earn out sized returns on capital. You'll never get out...
by bigred77
Wed Aug 16, 2017 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Cancer at 38. Going from high income to no income. Need help generating income from $5m portfolio
Replies: 45
Views: 9785

Re: Cancer at 38. Going from high income to no income. Need help generating income from $5m portfolio

Thanks for all of the responses. I use YNAB religiously so I have good records of all of our expenses. The medical expenses are a big wildcard but we have good insurance through my husband's employer. We are fairly frugal but here's the breakdown and I appreciate any insights: Utilities (gas, elect...
by bigred77
Wed Aug 16, 2017 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Cancer at 38. Going from high income to no income. Need help generating income from $5m portfolio
Replies: 45
Views: 9785

Re: Cancer at 38. Going from high income to no income. Need help generating income from $5m portfolio

Sorry to hear about your bad news. From a strictly financial POV, you seem like your in great shape to handle an indefinite number of years with no income: $3.9M in cash $1M in tax advantaged accounts. $1.5M in home equity Net Worth roughly $6.5M So here's my biggest concern. I don't believe your sp...
by bigred77
Tue Aug 15, 2017 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: New investor/poster seeking affirmation
Replies: 14
Views: 674

Re: New investor/poster seeking affirmation

Excellent start. Very reasonable portfolio. I would add 3 things: Start your research now on how to handle a backdoor Roth IRA every year. I would try to knock out the student loans quickly. Put a taxable investing plan in place from day one. Learn about efficient asset placement (I.E. Don't hold ta...
by bigred77
Tue Aug 15, 2017 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: RE: Retirement and College Planning
Replies: 17
Views: 1479

Re: RE: Retirement and College Planning

Besides the fact that I know several very intelligent people who had horrible life-changing experiences in real estate investing (myself included, and my PhD isn't in math, but I can do it at a 3rd grade level), what does any of this have to do with the OP? I derailed it. That's on me. I should hav...
by bigred77
Tue Aug 15, 2017 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: RE: Retirement and College Planning
Replies: 17
Views: 1479

Re: RE: Retirement and College Planning

Your maxim is silly. It doesn't matter if "everyone" did something. It only matters if "some people" did it. Just because not everyone on earth is a good skier, doesn't mean that some people cannot become good skiers. I personally went from a negative net worth to a $8xxK net worth investing in rea...
by bigred77
Tue Aug 15, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: RE: Retirement and College Planning
Replies: 17
Views: 1479

Re: RE: Retirement and College Planning

Why are you writing him off so quick.. You don't think he could be financially independent in 10-15 years? That timeframe is an eternity if he invests in real estate. His $250K cash will buy him enough rental properties to generate $3000-5000 in monthly income in the next 18-24 months tops. That's ...
by bigred77
Tue Aug 15, 2017 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: RE: Retirement and College Planning
Replies: 17
Views: 1479

Re: RE: Retirement and College Planning

Why are you writing him off so quick.. You don't think he could be financially independent in 10-15 years? That timeframe is an eternity if he invests in real estate. His $250K cash will buy him enough rental properties to generate $3000-5000 in monthly income in the next 18-24 months tops. That's ...
by bigred77
Tue Aug 15, 2017 12:31 pm
Forum: Investing - Theory, News & General
Topic: What a Low Return Outlook Means for Your Retirement?
Replies: 42
Views: 5608

Re: What a Low Return Outlook Means for Your Retirement?

Well, I'll dispute some of what you wrote. I started down this route in 1994...I hit the 62.5 times not too long ago 2015-2106...my income has been 2x the median for a college graduate, but given my woman does not work outside the home, that makes us just average. The only reason I am still working...
by bigred77
Tue Aug 15, 2017 11:44 am
Forum: Investing - Help with Personal Investments
Topic: please help...am I overextended - first home
Replies: 78
Views: 7145

Re: please help...am I overextended - first home

Your ratios are fine for getting approved for the mortgage. Your monthly PITI + HOA fee is 26% of your gross. That seems fine. Are you young and expecting career growth in the near term? If so things will be tight until the 401k loan (which let me guess, was used for the down payment?) is finished a...
by bigred77
Tue Aug 15, 2017 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Plan for making child pay for part of college
Replies: 111
Views: 6375

Re: Plan for making child pay for part of college

I was in undergrad about a decade ago now but one thing I really didn't understand until I got out of school is how valuable internships in your field are. I worked every summer doing manual labor type jobs for 2 months for the highest wage I could find but I truly believe most students would be far...
by bigred77
Tue Aug 15, 2017 9:03 am
Forum: Investing - Theory, News & General
Topic: What a Low Return Outlook Means for Your Retirement?
Replies: 42
Views: 5608

Re: What a Low Return Outlook Means for Your Retirement?

Thank you for this. A few on this board have taken jabs at me for my 62.5 times expenses model which worked out to 1.6% withdraw rate to last 50 years. To me that is my sleep well at night position. As long as we are living the life we want I see no reason to go higher thought I would not have an i...
by bigred77
Tue Aug 15, 2017 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Plan for making child pay for part of college
Replies: 111
Views: 6375

Re: Plan for making child pay for part of college

One more suggestion to help them have some "skin in the game" would be to sit them down before they make the college selection decision and really explain to them the realities of debt, student loans, and how yes, you really do have to pay it back. Then once you've put a little fear into them let th...
by bigred77
Mon Aug 14, 2017 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Can we slow down then retire?
Replies: 25
Views: 4339

Re: Can we slow down then retire?

I think annuities (SPIA) are an underutilized tool but I don't think they make as much sense for your situation because your so young. The mortality credits won't be favorable to you, plus interest rates are lower than the historical norms (not that I'm recommending timing the interest rate cycle bu...
by bigred77
Mon Aug 14, 2017 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: REIT
Replies: 52
Views: 3829

Re: REIT

I am confused about REITs. I currently have $20,000 in a Vanguard REIT ETF, adding $5,000 every few months for about a year. This was suggested as a way to get into real estate investing. The value was at the beginning, and still is, negative. Is there something I am missing? Why is it not gaining ...
by bigred77
Mon Aug 14, 2017 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: REIT
Replies: 52
Views: 3829

Re: REIT

I am confused about REITs. I currently have $20,000 in a Vanguard REIT ETF, adding $5,000 every few months for about a year. This was suggested as a way to get into real estate investing. The value was at the beginning, and still is, negative. Is there something I am missing? Why is it not gaining ...
by bigred77
Mon Aug 14, 2017 1:34 pm
Forum: Investing - Theory, News & General
Topic: What a Low Return Outlook Means for Your Retirement?
Replies: 42
Views: 5608

Re: What a Low Return Outlook Means for Your Retirement?

Frankly, I didn't find the article all that compelling. If I hold volatility (measured by standard deviation) constant to historical values for both US equities and fixed income, but then reduce the mean nominal return for those distributions by 40% or so, yeah, I expect the numbers to look gruesome...
by bigred77
Mon Aug 14, 2017 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: All in stocks: Where to go now?
Replies: 24
Views: 2526

Re: All in stocks: Where to go now?

I think a target date fund is a great choice until someone can articulate exactly why they want or need to deviate from it. Especially if the vast majority of your investments are in tax advantaged accounts.
by bigred77
Mon Aug 14, 2017 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Do you manage your asset allocation like a Target Fund?
Replies: 20
Views: 1683

Re: Do you manage your asset allocation like a Target Fund?

I hold a lower percentage of equities than most TD funds applicable to my age and estimated retirement date. I will hold a higher percentage of equities in retirement than TD funds usually do (or at least I plan to). I prefer to just change my AA 1 or 2 times over my lifetime. Right now I'm 75/25 in...
by bigred77
Mon Aug 14, 2017 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Rent Out or Sell My Condo...
Replies: 21
Views: 2172

Re: Rent Out or Sell My Condo...

Just using very high level numbers: a 375k property that rents for 2200 a month is not a very compelling rental property in my opinion. If it's a good investment, your going to be relying on appreciation, which you should probably have a compelling argument for. Something like this area is just star...
by bigred77
Mon Aug 14, 2017 11:06 am
Forum: Personal Finance (Not Investing)
Topic: What % of income to buy a car is not excessive?
Replies: 48
Views: 3857

Re: What % of income to buy a car is not excessive?

I'm still hoping to get 3 more years or so out of our current fleet of cars but if they both happened to die today I would be looking to spend just under 40% of our gross, annual household income on 2 vehicles that I would hope to hold for 10 years (that's 40% of gross total for 2 vehicles combined)...
by bigred77
Fri Aug 11, 2017 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: Individual stocks for fun
Replies: 24
Views: 1878

Re: Individual stocks for fun

If I wanted to speculate over the next number of years I would look at distressed oil companies as a bet on recovering commodity prices and a bet that some of them can manage their over leveraged capital structures. Pretty big fat tails on those potential return distributions in my opinion.
by bigred77
Fri Aug 11, 2017 12:19 pm
Forum: Investing - Theory, News & General
Topic: Anyone Out There Who Has Failed To Stick To Their Long Term Investing Plan?
Replies: 35
Views: 4248

Re: Anyone Out There Who Has Failed To Stick To Their Long Term Investing Plan?

This can be subjective, but in my opinion, if one changes their AA during a bear market because they overestimated their risk tolerance, that's a failure to stick to their long term plan. If one changes their AA after a bear market because they overestimated their risk tolerance, that's an adaptatio...
by bigred77
Fri Aug 11, 2017 10:31 am
Forum: Investing - Theory, News & General
Topic: "Bonds: Ballast for your portfolio"
Replies: 45
Views: 6191

Re: "Bonds: Ballast for your portfolio"

Personally, I expose my portfolio to an equal-weight allocation of four different investment-grade assets *, using total-market index ETFs, representing a 50/50 allocation to stocks and bonds: Investment-grade domestic stocks Investment-grade international stocks, which are exposed to currency fluc...
by bigred77
Fri Aug 11, 2017 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Feeling guilty about travel expenses
Replies: 25
Views: 3314

Re: Feeling guilty about travel expenses

Sounds like you are relatively young. I would agree with others, maybe try to up your savings rate a little bit but I would not feel guilty about traveling. It sounds like you live below your means. Your day to day living expenses don't sound outlandish if your saving 10% and spending 30% on travel....
by bigred77
Fri Aug 11, 2017 8:39 am
Forum: Investing - Help with Personal Investments
Topic: Home Ownership / Investing
Replies: 18
Views: 1048

Re: Home Ownership / Investing

HCOL areas are usually HCOL areas because they have experienced outsized real estate appreciation over the past couple of decades. So that's probably coloring the outlook of your social circle. Buying property you plan to live in for a long while is typically the better choice over renting a very si...
by bigred77
Thu Aug 10, 2017 11:45 am
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 90
Views: 6956

Re: What Percentage CASH are you?

less than 1%

I'd rather add it to my portfolio as quickly as possible. I'd prefer to at least put funds in CDs or a short term bond fund if I need liquidity.
by bigred77
Thu Aug 10, 2017 11:43 am
Forum: Personal Finance (Not Investing)
Topic: College and Paying for it
Replies: 61
Views: 4654

Re: College and Paying for it

I have the school of thought that an undergraduate degree is just that, an undergraduate degree that in today's society is pretty much expected someone will obtain (in the past, the expectation being everyone will get a high school degree). I am sorry but as a society we have NOT made that decision...
by bigred77
Wed Aug 09, 2017 4:40 pm
Forum: Personal Finance (Not Investing)
Topic: What's the deal with AMICA???
Replies: 21
Views: 2376

Re: What's the deal with AMICA???

I shop all my policies as a package (homeowners + 2 cars + umbrella) and Amica was the cheapest I could find for our situation. We came from USAA which had been good but their premiums skyrocketed for some reason causing us to shop around again. Amica has gone up 15% this year but after shopping my ...
by bigred77
Wed Aug 09, 2017 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: kids think lazy if retire?
Replies: 70
Views: 8457

Re: kids think lazy if retire?

I have a lot more than 30x expenses and I have no intention of retiring in the foreseeable future. Life is complicated and assuming that figure is enough for 50 years of retirement is foolish. All sorts of bad things can happen over that long a time. Work to 70 or 75, cutting the duration of retire...
by bigred77
Wed Aug 09, 2017 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Invest in U.S. ETFs Now?
Replies: 25
Views: 2226

Re: Invest in U.S. ETFs Now?

The S&P500 has been consistently setting new all-time highs ever since April of 2013. The CAPE10 and many other valuation metrics have shown the index to be above its long term historical averages the whole time. Prognosticators have called the market "expensive" the whole time. Since April 2013 the...
by bigred77
Wed Aug 09, 2017 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Life at crossroads. What would you do ?
Replies: 198
Views: 18408

Re: Life at crossroads. What would you do ?

WCI, love your blog ! There is an incorrect assumption in your maths. 85k is gross. It's more like 65k after taxes. My assumptions are more like I need 3.5% withdrawal which is cutting it too close. 65k after taxes from your wife means you need 35k after taxes via portfolio withdrawal. In the absol...
by bigred77
Tue Aug 08, 2017 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: Life at crossroads. What would you do ?
Replies: 198
Views: 18408

Re: Life at crossroads. What would you do ?

You have more than enough money to supplement your wife's income and meet your annual expenses. You don't have to rush. You don't really even have to bring in an income as long as your wife keeps working. I would take a deep breath and then continue the job search. Find something that you really wan...
by bigred77
Tue Aug 08, 2017 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: When does renting make sense
Replies: 112
Views: 10065

Re: When does renting make sense

Renting is a fine choice and has a lot of benefits: mobility, less maintenance costs, ability to consume only as much space as you need on a year to year basis, no down payment requirement, etc. Buying is a fine choice and has a lot of benefits: participate in market value changes, lock in the major...
by bigred77
Tue Aug 08, 2017 1:51 pm
Forum: Personal Consumer Issues
Topic: Las Vegas Slot Machine Strategy (maximize entertainment value)
Replies: 31
Views: 2720

Re: Las Vegas Slot Machine Strategy (maximize entertainment value)

In Vegas I love the sports books. I don't gamble on sports at home, but while there I can place some bets for 50 bucks a pop and then watch the games and get 3-4 hours of entertainment. The next best thing is blackjack when your with a group of your own friends at the tables and play for an hour or ...
by bigred77
Tue Aug 08, 2017 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: kids think lazy if retire?
Replies: 70
Views: 8457

Re: kids think lazy if retire?

You earned, saved, and invested well enough to live a life of leisure. Live it up!! You want to sit around the house and decompress? Have at it. You want to watch netflix all day? Do it. You want volunteer? Great. You want to read? By all means. Travel? Go for it. Your kids won't think your lazy. Yo...
by bigred77
Tue Aug 08, 2017 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: How much do you think we need?
Replies: 9
Views: 1674

Re: How much do you think we need?

2 million plus your pension would provide for a 6 figure income in retirement even ignoring your rental properties and SS. I'm sure you could get by.
by bigred77
Tue Aug 08, 2017 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: College and Paying for it
Replies: 61
Views: 4654

Re: College and Paying for it

How do people afford these places? Why do these college rankings say that so many people get aid? I actually went to an Ivy league and ran the numbers out of interest after reading an article and it told me I'd be paying _more_ than what the magazine stated as the "list price". Most people don't af...
by bigred77
Mon Aug 07, 2017 10:49 am
Forum: Personal Consumer Issues
Topic: Buying a Vehicle the Old Fashioned Way
Replies: 57
Views: 5667

Re: Buying a Vehicle the Old Fashioned Way

It's just a matter of how much time and effort you want to sink into trying to get the absolute lowest price possible. If you want minimal hassle and are Ok with a good price that you find acceptable (and many here are Ok with that) then that's a fine approach. If you want to spend a couple of weeks...
by bigred77
Mon Aug 07, 2017 10:32 am
Forum: Personal Finance (Not Investing)
Topic: financial planning for purchasing "forever home" in a few years
Replies: 5
Views: 715

Re: financial planning for purchasing "forever home" in a few years

Personally I would probably max out all of my tax advantaged space first and then pay down the mortgage in lieu of saving or taxable investing if my time frame was 5-6 years. I would accept that I have to sell my current property first before buying a new one. It sounds like you will have a down pay...
by bigred77
Sat Aug 05, 2017 1:07 am
Forum: Personal Consumer Issues
Topic: Startup vs big company (financial equity at stake)
Replies: 57
Views: 3809

Re: Startup vs big company (financial equity at stake)

how much longer till you hit one year and your short term gains turn into long term gains? If it's close I assume you can sign a contract to sell the shares at an agreed upon price on that day in the future? Just a simple forward contract like when you buy a house before closing?
by bigred77
Fri Aug 04, 2017 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Helping mom with debt, investing, and spending
Replies: 34
Views: 1883

Re: Helping mom with debt, investing, and spending

What's she doing for healthcare insurance? Medicare disability usually doesn't kick in until two (?) years after starting disability. She has been on disability for a while now, and mentioned that her healthcare costs are deducted before her SSDI payment is deposited, which I take to mean she is on...
by bigred77
Fri Aug 04, 2017 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Helping mom with debt, investing, and spending
Replies: 34
Views: 1883

Re: Helping mom with debt, investing, and spending

I see 2 big priorities: The smaller and probably easier one to accomplish: get her live within her current cash flow. Forget the IRA for and possibly paying off the debt for a second. She has an income of right about 50k per year and debt under 150k. She is a household of 1. That should be enough in...
by bigred77
Fri Aug 04, 2017 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: Are we house poor? [Property Tax Madness]
Replies: 79
Views: 8635

Re: Are we house poor?

Take a deep breath. Maybe have beer or glass of wine :mrgreen: You have a paid off house and live on 2k per month? That's 24k per year. Your pension is expected to be double that. You haven't addressed any SS either. Plus you have almost 250k already saved and are saving 50k per year? Your on track ...