Search found 1846 matches

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: 1725

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: 8178

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 ...
by bigred77
Thu Aug 03, 2017 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: How much do kids cost in a high COLA?
Replies: 57
Views: 3948

Re: How much do kids cost in a high COLA?

With your housing costs in a HCOL area I would think an annual income of 80k - 100k would support a sustainable middle class lifestyle (at least how I would define it). You could get by on less but you have to prioritize. Some might think you need more. Depends on how YOU define middle class lifesty...
by bigred77
Thu Aug 03, 2017 9:53 pm
Forum: Personal Finance (Not Investing)
Topic: Deciding between retirement and general savings in my 20s
Replies: 28
Views: 2956

Re: Deciding between retirement and general savings in my 20s

Max the 401k and Roth IRA via regular contributions from your base salary and live on the remainder. Throw your bonus and any raises into general savings. Re-evaluate when your compensation or life circumstances change significantly.
by bigred77
Thu Aug 03, 2017 4:43 pm
Forum: Investing - Theory, News & General
Topic: What happens to those who don't save?
Replies: 13
Views: 1955

Re: What happens to those who don't save?

My mother lives just fine on a SS check of about $1150 per month, Medicare, in a paid off condo worth about 90k, and has maybe 50k in IRAs for emergencies should they arise. It was tough to have her transition to this reality. We had to cut her expenses to the bone and get REALLY efficient. I took o...
by bigred77
Wed Aug 02, 2017 9:31 pm
Forum: Personal Consumer Issues
Topic: Best "investment tip" I have gotten from Bogleheads
Replies: 47
Views: 7185

Re: Best "investment tip" I have gotten from Bogleheads

I've been wanting to make my entire backyard (its small; 400 sqft or so) a paverstone patio for years now. Then I can fire the lawn service. The yield on that investment is 16.8% per year in saved lawn fees. That's how I'm justifying the expense to myself anyway :mrgreen:
by bigred77
Wed Aug 02, 2017 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 276
Views: 23859

Re: How much money do you need to retire?

Currently at 56x annual expenses, firecalc says I have more than enough to retire with 100% success and will have $41m leftover for my child when I die. But, Vanguard calculator says I'm short that I'd need 60x at least. So I don't know how much I need. If Vanguard says your short with a sub 2% wit...
by bigred77
Wed Aug 02, 2017 12:11 pm
Forum: Personal Consumer Issues
Topic: Startup vs big company (financial equity at stake)
Replies: 57
Views: 3619

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

It sounds like you want to leave. I don't see anything wrong with leaving. You already own 0.7% of a private company. You have your lottery ticket in hand. If it all works out and they cash out for $600M in 4 years you get $4.2M instead of $8.4M. That's OK (IMO, its still an awful lot of money). You...
by bigred77
Wed Aug 02, 2017 11:57 am
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 276
Views: 23859

Re: How much money do you need to retire?

I'm 32 now (as is my wife). I want $5M in 2017 dollars at age 55 to retire (plus a paid of property and some additional funds set aside for the kids). I would use a 4% withdrawal rate. That, to me, funds a pretty extravagant lifestyle (might as well dream big right?) To get there I need to avoid job...
by bigred77
Tue Aug 01, 2017 7:16 pm
Forum: Investing - Theory, News & General
Topic: Equal Parts Small, Mid, Large Cap Indexes
Replies: 56
Views: 3254

Re: Equal Parts Small, Mid, Large Cap Indexes

@jhbolden1517 I think I'm understanding your post better. When you said "constant percentage" I assumed you meant percentage of the funds total holdings, not percentage of publically traded shares for any unique company. I think I follow your thoughts on buybacks and reduced float but I don't see it...
by bigred77
Tue Aug 01, 2017 5:43 pm
Forum: Investing - Theory, News & General
Topic: Equal Parts Small, Mid, Large Cap Indexes
Replies: 56
Views: 3254

Re: Equal Parts Small, Mid, Large Cap Indexes

I ask this because The Three Fund Portfolio seems to be good enough for most people on here. The three fund portfolo is a bad portfolio. Now it is a lot better than many other portfolios, but it has serious problems. The bonds don't have enough duration risk to help with correlations. The USA stock...
by bigred77
Tue Aug 01, 2017 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA: if known result, why complete?
Replies: 44
Views: 2758

Re: FAFSA: if known result, why complete?

It takes 15 min. to fill out the form. I have no idea what the grumbling is all about. You might get some aid. You might not. It's 15 min. I see no reason why you wouldn't do it, just in case. My "grumbling" is that my family finances are not the business of a large institution -- or the Federal go...
by bigred77
Tue Aug 01, 2017 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Rent vs sell condo with big capital gain
Replies: 17
Views: 1700

Re: Rent vs sell condo with big capital gain

So it sounds like most of you would take the guarantee of selling at today's property price and tax free capital gains vs chasing a potentially higher return by holding & renting the condo. Thanks for the feedback, that reaffirms our conclusion - it is tempting to keep the property given the relati...
by bigred77
Tue Aug 01, 2017 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Where can I improve? Am I on the right track?
Replies: 20
Views: 2233

Re: Where can I improve? Am I on the right track?

Ok I see. I even wrote 503b when I was thinking of a 403b. :oops: In that case I would still use a portion of your taxable savings to max out backdoor Roth IRA's for both Spouses. Your decision is taxable investing vs Roth with funds that are going to be post tax either way. Roth space should always...
by bigred77
Tue Aug 01, 2017 12:26 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing - Less Effective?
Replies: 5
Views: 456

Re: Factor Investing - Less Effective?

I'm going to try and be nice. That article had nothing useful about it. There is nothing to be gained from reading or thinking about that. 4 years. Randomly generated portfolios. What are the correlations between those 8 ETFs (and for each of them to the S&P500 index) over the 4 years they were test...
by bigred77
Tue Aug 01, 2017 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Where can I improve? Am I on the right track?
Replies: 20
Views: 2233

Re: Where can I improve? Am I on the right track?

My only advice would be to put more into the 503b (I'd probably max it out) before contributing so much to a taxable brokerage account. I would also put money into 2 backdoor Roth IRA's before contributing to taxable as well. Are you contributing to taxable in preparation for a big tax bill when you...
by bigred77
Tue Aug 01, 2017 11:34 am
Forum: Personal Finance (Not Investing)
Topic: FAFSA: if known result, why complete?
Replies: 44
Views: 2758

Re: FAFSA: if known result, why complete?

It takes 15 min. to fill out the form. I have no idea what the grumbling is all about.

You might get some aid. You might not. It's 15 min. I see no reason why you wouldn't do it, just in case.
by bigred77
Tue Aug 01, 2017 11:28 am
Forum: Investing - Theory, News & General
Topic: "the top 1 percent of families had $1.08 million or more saved in 2013."
Replies: 26
Views: 4059

Re: "the top 1 percent of families had $1.08 million or more saved in 2013."

Other than making guesses, how would anyone know how much people have saved. I report my taxable income to the government, but not how much I have saved. Even an analysis of 401k plans would not include IRA accounts. Where would this data come from? The source was the survey of consumer finances I ...
by bigred77
Tue Aug 01, 2017 11:27 am
Forum: Investing - Theory, News & General
Topic: "the top 1 percent of families had $1.08 million or more saved in 2013."
Replies: 26
Views: 4059

Re: "the top 1 percent of families had $1.08 million or more saved in 2013."

Seems like a very reasonable number.

FYI - they restrict this to retirement savings by households who are headed by someone between 32 and 62 and everything was done in 2013.
by bigred77
Tue Aug 01, 2017 10:46 am
Forum: Personal Consumer Issues
Topic: What are your monthly expenses?
Replies: 59
Views: 6125

Re: What are your monthly expenses?

Housing: 3,800 Electricity: 120 Cell Phones 200 Cable: 200 Maid Service: 300 Gardner: 70 Groceries: 500 Gas: 250 Discretionary: 1000ish Travel:625 Total: 7000ish Savings: 3500ish That's for a family of 2. There some slush in there (I don't track all that closely). We make more than that but the lump...
by bigred77
Tue Aug 01, 2017 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Sell inherited investments to pay off mortgage?
Replies: 23
Views: 2111

Re: Sell inherited investments to pay off mortgage?

By all means read the wiki and take your time. No rush here. But I would not think about this as if you inherited 250k in various investment assets. I would think about this as if you inherited 250k in cash. You can sell everything tomorrow with minimal tax consequences and actually go to cash yours...
by bigred77
Tue Aug 01, 2017 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Fresh start, how aggressive to pay the loan?
Replies: 5
Views: 690

Re: Fresh start, how aggressive to pay the loan?

I would rather use the emergency fund to pay it off and then build back the emergency fund.
by bigred77
Tue Aug 01, 2017 6:38 am
Forum: Investing - Theory, News & General
Topic: Has the "bond bubble" caused you to change your allocation?
Replies: 90
Views: 9593

Re: Has the "bond bubble" caused you to change your allocation?

Early 30s. 25% of my portfolio is in bonds. I have resisted the urge to tinker. If I had a compelling stable value fund I might consider it. I suspect moving to CDs is just going to be wasted effort for the same results as holding a total bond market index fund for the next 5 years. At best your see...
by bigred77
Mon Jul 31, 2017 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Moving to the suburbs - how much can i afford?
Replies: 22
Views: 1095

Re: Moving to the suburbs - how much can i afford?

Well first, what changed in the past 2 years from when you bought the current property? Why are you moving so quickly? If it's just the school system you could easily afford private school if you preferred city living (your already paying 2,800+ per month for childcare and a 529 plan. That should a...
by bigred77
Mon Jul 31, 2017 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Moving to the suburbs - how much can i afford?
Replies: 22
Views: 1095

Re: Moving to the suburbs - how much can i afford?

Well first, what changed in the past 2 years from when you bought the current property? Why are you moving so quickly? If it's just the school system you could easily afford private school if you preferred city living (your already paying 2,800+ per month for childcare and a 529 plan. That should af...
by bigred77
Mon Jul 31, 2017 2:07 pm
Forum: Personal Consumer Issues
Topic: Cheapest transportation to airport?
Replies: 39
Views: 2347

Re: Cheapest transportation to airport?

Why not just use the park n fly.

Fastest and cheapest option. Why wouldn't you lean towards that one?
by bigred77
Mon Jul 31, 2017 12:37 pm
Forum: Investing - Theory, News & General
Topic: Preparing for change = personal financial planning implications
Replies: 10
Views: 1001

Re: Preparing for change = personal financial planning implications

My takeaway is that change is inevitable, the supply of jobs is outside my control (excluding entrepreneurship), and this guy is making a lot of bold predictions that he doesn't support with any evidence. My only action item would be to make sure you and your children are as competitive as possible ...
by bigred77
Mon Jul 31, 2017 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Should we increase our retirement savings rate?
Replies: 35
Views: 2807

Re: Should we increase our retirement savings rate?

Do you have any aspiration at all to retire earlier than 55? If so, then I would say it's virtually impossible to over save for retirement, because more money means retire even earlier. If I want to retire under 55, I need to set aside in taxable, as I won't be able to use retirement money before 5...
by bigred77
Mon Jul 31, 2017 8:45 am
Forum: Personal Finance (Not Investing)
Topic: How to calculate your retirement number
Replies: 95
Views: 8983

Re: How to calculate your retirement number

If I hit 33x expenses, I'd retire at any age. If I hit 25x expenses, I'd retire if I was over 50. If I hit 20x residual expenses after SS and/or pensions, I'd retire if I was over 60. We always wonder about the 25x calculation. Is that based on years? If our generation has FRA set at 67, does one s...
by bigred77
Sun Jul 30, 2017 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate your retirement number
Replies: 95
Views: 8983

Re: How to calculate your retirement number

If I hit 33x expenses, I'd retire at any age.
If I hit 25x expenses, I'd retire if I was over 50.
If I hit 20x residual expenses after SS and/or pensions, I'd retire if I was over 60.
by bigred77
Fri Jul 28, 2017 8:16 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate: gross or net?
Replies: 56
Views: 3315

Re: Savings rate: gross or net?

I've always assumed gross income was the denominator. I thought this stemmed from general advice, which assumed new investors would start with their 401k first and foremost. If you want to save 15%, sign up for a 15% election to your 401k. That election is going to be based off of gross income. I th...
by bigred77
Thu Jul 27, 2017 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Expected rate of return
Replies: 26
Views: 1878

Re: Expected rate of return

When I play round with projections, I use 5% real as my baseline and I have a 75/25 portfolio. If you are using 5% nominal that's conservative over 30 years. If your projections show you'll be in good shape with that return then I would consider yourself good to go. If your projections say you will ...
by bigred77
Thu Jul 27, 2017 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Why are they beating S/P? What am I missing?
Replies: 72
Views: 4509

Re: Why are they beating S/P? What am I missing?

That's a pretty impressive performance. I would naturally be skeptical but it no doubt could be real.

Do you know what the beginning balance was? Were there any contributions or withdrawals over this time period? If not the balance should almost 6.5 times bigger than it was 19 years ago.
by bigred77
Wed Jul 26, 2017 8:44 pm
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6292

Re: 5% fee per year to buy s&p500 with principle gaurantee

I'm not claiming that bogleheads are the most sophisticated investors around, but if you could point me in the direction of a strategy that provides better risk adjusted returns than a boglehead strategy with academic research supporting it, I certainly like to review it. The Put-Write strategy has...
by bigred77
Wed Jul 26, 2017 4:41 pm
Forum: Personal Consumer Issues
Topic: From Chi-Midway: Taxi, Uber, Lyft, or other?
Replies: 26
Views: 2105

Re: From Chi-Midway: Taxi, Uber, Lyft, or other?

White Coat Investor wrote:I prefer Uber to a taxi, but not by much. Honestly, I view them as very close to equivalent. I mean, what's the difference, a functional app? Seems like yellow cab or whoever could bridge that gap.
In my city cabs are close to 2X the price of Uber or Lyft. It's the $$$$
by bigred77
Wed Jul 26, 2017 12:01 pm
Forum: Investing - Theory, News & General
Topic: Time, not material goods, 'raises happiness'
Replies: 38
Views: 4260

Re: Time, not material goods, 'raises happiness'

I googled local housecleaning services after reading this. I can afford it and it's past time. :oops: It will change your life (especially if you hate cleaning like I do). Beware: After you've had this service for a little while, it tends to get moved from a "nice to have" to a "must have" :D I don...
by bigred77
Wed Jul 26, 2017 11:49 am
Forum: Investing - Theory, News & General
Topic: VNQ allocation [Vanguard REIT Index]
Replies: 20
Views: 1423

Re: VNQ allocation

If your reason is "I saw this included in some allocation guidelines" I would say don't do anything. You need to really understand WHY it's recommending REIT holdings over and above what's included in a broad market index. If you agree with the reasoning, understand that asset class can be extremely...
by bigred77
Wed Jul 26, 2017 11:02 am
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6292

Re: 5% fee per year to buy s&p500 with principle gaurantee

"Standard Techniques" is a subjective term. This practice is certainly not standard around Bogleheads. It's certainly not standard among retail investors. I suppose I would classify it as "relatively easy to understand and implement for experienced investors" at best. Hate having to break it to you...
by bigred77
Wed Jul 26, 2017 10:03 am
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6292

Re: 5% fee per year to buy s&p500 with principle gaurantee

It seems to me that many posters on this thread haven't fully understood what the OP proposes to do. Long calls, or protective puts (if one already owns the underlying security), are absolutely standard techniques. Will he beat the market ? Likely not, due to extra transaction costs and, more impor...
by bigred77
Tue Jul 25, 2017 9:45 pm
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6292

Re: 5% fee per year to buy s&p500 with principle gaurantee

Here are the numbers. From Jan., 1972, to June, 2017, the S&P 500 would have taken $10,000 to $823,904. Using the OP's approach, the final balance would be $509,272. Both of these are in nominal dollars. Where such an approach might still be worthwhile is in retirement, when years of negative retur...
by bigred77
Tue Jul 25, 2017 9:23 pm
Forum: Investing - Theory, News & General
Topic: 5% fee per year to buy s&p500 with principle gaurantee
Replies: 64
Views: 6292

Re: 5% fee per year to buy s&p500 with principle gaurantee

Here are the numbers. From Jan., 1972, to June, 2017, the S&P 500 would have taken $10,000 to $823,904. Using the OP's approach, the final balance would be $509,272. Both of these are in nominal dollars. Where such an approach might still be worthwhile is in retirement, when years of negative retur...
by bigred77
Tue Jul 25, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Returning to College - Looking for Financing Advice
Replies: 21
Views: 1449

Re: Returning to College - Looking for Financing Advice

Its been a few years but when I was in grad school the only difference between subsidized federal loans and unsubsidized federal loans was that subsidized loans did not incur interest while you were enrolled at least half time. Unsubsidized federal loans were still offered at the same interest rate...
by bigred77
Tue Jul 25, 2017 4:03 pm
Forum: Investing - Theory, News & General
Topic: BASE INVESTMENT or What Your Ruler
Replies: 14
Views: 890

Re: BASE INVESTMENT or What Your Ruler

I don't really have a comparative index for my portfolio but If I had to pick one it would be Vanguard LifeStrategy Growth. My opinion is your benchmark should be something of comparable risk and makeup. Comparing cash to the S&P500 isn't something I'd be interested in doing. Comparing online saving...
by bigred77
Tue Jul 25, 2017 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Returning to College - Looking for Financing Advice
Replies: 21
Views: 1449

Re: Returning to College - Looking for Financing Advice

How much is the tuition/fee/book cost? Can you cash flow half of that number? 3/4? Taking on a little bit of debt for grad school is fine and NYC (and their schools) costs a ton. I would try awfully hard to cash flow AT LEAST 50% of this thing and pay back the remaining 50% 2-3 years after the prog...
by bigred77
Tue Jul 25, 2017 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Returning to College - Looking for Financing Advice
Replies: 21
Views: 1449

Re: Returning to College - Looking for Financing Advice

How much is the tuition/fee/book cost? Can you cash flow half of that number? 3/4? Taking on a little bit of debt for grad school is fine and NYC (and their schools) costs a ton. I would try awfully hard to cash flow AT LEAST 50% of this thing and pay back the remaining 50% 2-3 years after the progr...
by bigred77
Tue Jul 25, 2017 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Investing Education and Mansplaining
Replies: 128
Views: 8332

Re: Investing Education and Mansplaining

Sounds like a market opportunity IMHO…  If someone can successfully package Jack Bogle's advice for millennials… (VICE, BuzzFeed) it would be a huge hit. I feel like Mr. Money Moustache (blog) or Rachel Cruze (Dave Ramsey's daughter) are tackling some of the lifestyle/thrift aspects of it but we ha...
by bigred77
Tue Jul 25, 2017 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Investing Education and Mansplaining
Replies: 128
Views: 8332

Re: Investing Education and Mansplaining

I don't know, I have been "quantsplained" here many times by people who believe investing is an engineering problem or a math equation. Don't get me wrong, the math is helpful and vital, but it has limitations, mostly due to irrational humans and their behavior in the investment markets. Can't tell...
by bigred77
Tue Jul 25, 2017 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Low risk return over 2.8%? Suggestions?
Replies: 18
Views: 1886

Re: Low risk return over 2.8%? Suggestions?

Just wanted to point out if your goal is to beat a 2.8% after tax effective interest rate, you need to get risk free returns of 2.8% AFTER tax. So any interest income or short term gains need to beat your before tax 4.15% interest rate. 2.8% would be your hurdle rate for Muni funds (ignoring any sta...
by bigred77
Tue Jul 25, 2017 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Financial Characteristics of Physicians
Replies: 24
Views: 2253

Re: Financial Characteristics of Physicians

I just think with doctors there are 2 big challenges facing them these days: Student Loan Debt Not making that large salary until their 30s. With those 2 things working against them (plus their tax burden once that large salary kicks in), yes they do have to allocate a larger percentage of their inc...
by bigred77
Mon Jul 24, 2017 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement withdrawals and the impact on your portfolio
Replies: 4
Views: 681

Re: Retirement withdrawals and the impact on your portfolio

If you started retirement 10 years ago with a balanced AA (60/40 or 50/50) and followed the 4% rule you have more money today then when you started (nominally at least) and 10 less years of living expenses to fund.