Search found 1916 matches

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: 4269

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: 6231

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: 3350

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: 1055

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: 7011

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: 4707

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: 2425

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: 8544

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: 2254

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: 18573

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: 18573

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: 10202

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: 2752

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: 8544

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: 1682

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: 4707

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: 5703

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: 736

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: 3851

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: 1903

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: 1903

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: 8721

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: 4283

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: 3086

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: 2049

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: 7531

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: 26407

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: 3851

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: 26407

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: 3511

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: 3511

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: 2996

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: 1811

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: 2334

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: 506

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: 2334

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: 2996

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: 4243

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: 4243

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: 69
Views: 7646

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: 2287

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: 733

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: 10429

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: 1196

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: 1196

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: 2581

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: 1085

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: 2984

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: 9831

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: 9831

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.