Search found 1966 matches

by bigred77
Sun Dec 17, 2017 12:53 am
Forum: Personal Finance (Not Investing)
Topic: Financial Assistance to Adult Child (health insurance)
Replies: 107
Views: 6765

Re: Financial Assistance to Adult Child (health insurance)

hand, she does not have a career failure. She makes double the median income for her age bracket. Her problem is her spending patterns. If she makes double the median income for her age bracket then 400 extra bucks a month shouldn’t break her. It’s her own fault she lost the previous insurance anyw...
by bigred77
Sun Dec 17, 2017 12:25 am
Forum: Personal Consumer Issues
Topic: How much do you spend on food per month, per person?
Replies: 151
Views: 10421

Re: How much do you spend on food per month, per person?

Probably 400-500 per person, per month for everything we buy at the grocery store, liquor store, and restaurants.

That’s for 2 adults. I’m sure once we add kids the price per person will come down.
by bigred77
Sat Dec 16, 2017 2:07 pm
Forum: Investing - Theory, News & General
Topic: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?
Replies: 42
Views: 2176

Re: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?

Putting 10 years expenses into fixed income and then spending solely from that bucket over the first 10 years of retirement with the remaining assets in equities is just using mental accounting to describe a rising equity glidepath. Going with a conservative AA upon retirement and then gradually ra...
by bigred77
Sat Dec 16, 2017 1:27 pm
Forum: Investing - Theory, News & General
Topic: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?
Replies: 42
Views: 2176

Re: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?

Putting 10 years expenses into fixed income and then spending solely from that bucket over the first 10 years of retirement with the remaining assets in equities is just using mental accounting to describe a rising equity glidepath. Going with a conservative AA upon retirement and then gradually ram...
by bigred77
Wed Dec 13, 2017 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on using safe-ish investments to buy S&P 500 on margin in December?
Replies: 176
Views: 6651

Re: Thoughts on using safe-ish investments to buy S&P 500 on margin in December?

My advice is that you should stop day trading with 6 figure sums of borrowed money. You have no actionable insights on short term price movements, in either magnitude or direction. You are a retail investor betting on a random walk price pattern with an upward trend over long time periods that aren’...
by bigred77
Mon Dec 11, 2017 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford to live on one income?
Replies: 70
Views: 6292

Re: Can we afford to live on one income?

OP, My wife and I have our first due in February and are planning for her to stay home as well. Our household income and expenses are eerily similar to yours. We are going to try and make it work as well. I'm going into this knowing it's going to be tight but I'm hoping for a couple of salary bumps ...
by bigred77
Thu Dec 07, 2017 12:38 pm
Forum: Personal Consumer Issues
Topic: Okay come clean....How man people share passwords for streaming services?
Replies: 41
Views: 1894

Re: Okay come clean....How man people share passwords for streaming services?

Unfortunately I pay for many services and extended family all uses my passwords.
by bigred77
Wed Dec 06, 2017 8:49 pm
Forum: Investing - Theory, News & General
Topic: Does it look like a bubble to you?
Replies: 42
Views: 4073

Re: Does it look like a bubble to you?

You might also take into consideration the effect of global IPOs over that time frame. Every IPO and new stock offering just bumps the line higher. How many private companies went public?
by bigred77
Wed Dec 06, 2017 8:20 pm
Forum: Investing - Theory, News & General
Topic: Does it look like a bubble to you?
Replies: 42
Views: 4073

Re: Does it look like a bubble to you?

Stocks are ownership of businesses that explicitly set out to make money. Not all profits are returned to shareholders via dividends and/or buybacks. Hence stock values rise even holding valuations constant. It’s supposed to go up. It’s common to go up and down in fits and spurts. That chart is in n...
by bigred77
Tue Dec 05, 2017 7:50 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Bitcoin & It’s Risks
Replies: 57
Views: 5555

Re: Larry Swedroe: Bitcoin & It’s Risks

I thought that article was excellent. I have the same position when it comes to bitcoin: The technology behind it is ground breaking but it's without a doubt purely speculative at this time. You are buying it today with the hopes of reselling it for a higher price in the future. It is not a producti...
by bigred77
Tue Dec 05, 2017 1:34 pm
Forum: Investing - Theory, News & General
Topic: How would you value a business if you considered investing in it
Replies: 30
Views: 2890

Re: How would you value a business if you considered investing in it

The "real value" of a private company is 1 of 3 things. 1.) Unknowable (this would be my position) 2.) What someone is willing to pay for it 3.) Estimated Calculated by taking some metric (EBIT, EBITDA, FCF, etc.) and applying what you deem to be an "appropriate" multiplier depending on perceptions ...
by bigred77
Mon Dec 04, 2017 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: The College Bubble - investment opportunities after the collapse?
Replies: 114
Views: 8978

Re: The College Bubble - investment opportunities after the collapse?

.... I plan to .... The cool thing is that your child[ren] may want and do something completely different from your expectations. Will you be ready for that? If that included foregoing a college education, I would really struggle with that. bigred77, << In my mind it's all about helping my kids obt...
by bigred77
Mon Dec 04, 2017 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: The College Bubble - investment opportunities after the collapse?
Replies: 114
Views: 8978

Re: The College Bubble - investment opportunities after the collapse?

I find this whole discussion interesting. I have a baby on the way and am already planning on how I can amass 6 figure sums of money in 529 accounts by the time my kid(s) hit age 18. I plan to instill the expectation in my children that graduate degrees are the norm. I plan to encourage them to atte...
by bigred77
Thu Nov 30, 2017 8:02 am
Forum: Personal Finance (Not Investing)
Topic: Who are heirs? No will.
Replies: 41
Views: 4829

Re: Who are heirs? No will.

You likely do not need a lawyer if you or someone else can put just a little time and effort into this.

The estate will be governed by Indiana state law regarding descent and distribution. Just google it. It’s not as intimidating as it might sound.
by bigred77
Mon Nov 27, 2017 11:18 pm
Forum: Investing - Theory, News & General
Topic: What makes real estate a unique sector?
Replies: 25
Views: 1957

Re: What makes real estate a unique sector?

I do consider REITs as an acceptable proxy for diversified real estate ownership. I know not everyone agrees with that view, all you have to do is look upthread, but it’s close enough for my satisfaction. Because I view them as an acceptable enough proxy, I overweight them in my portfolio because I ...
by bigred77
Mon Nov 27, 2017 11:06 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - SARs and RSUs
Replies: 5
Views: 384

Re: Asset Allocation - SARs and RSUs

I liquidate all of my RSUs as they vest. I don’t really consider unvested shares until they vest. I consider it income and these do not impact my AA decisions. I also have options that don’t expire for 10 years that I just let ride (I never figured out a plan to optimize these but there all under wa...
by bigred77
Mon Nov 27, 2017 10:56 pm
Forum: Investing - Theory, News & General
Topic: What did you do right?
Replies: 96
Views: 10701

Re: What did you do right?

I started investing roughly a quarter of my income since age 23. I found Bogleheads at age 23. I’ve been lucky to have never been unemployed. I was very career focused in my 20s and advanced quickly. I got 2 masters degrees at a reasonable, subsidized cost. It also helped that I was very lucky in th...
by bigred77
Mon Nov 27, 2017 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Can I afford a $1,400,000 house
Replies: 93
Views: 10228

Re: Can I afford a $1,400,000 house

I think you can afford it but I would recommend waiting a few years, living a great life on 10k a month in expenses, and stockpiling assets while paying down debt before upgrading the house. I mean it’s not like your slumming it in the name of making financial progress. Your living higher on the hog...
by bigred77
Sat Nov 25, 2017 12:10 pm
Forum: Personal Consumer Issues
Topic: What are average incomes for luxury vehicle purchases? Will help me decide
Replies: 57
Views: 4559

Re: What are average incomes for luxury vehicle purchases? Will help me decide

Buy what you want. I don’t think there’s any data to answer the question you asked but if your household makes 100k per year I don’t think it’s unreasonable to buy 2 $20k vehicles every 8-10 years. If you make 200k per year then 2 $40k vehicles is the same percentage. That should get you into the BM...
by bigred77
Sat Nov 25, 2017 1:25 am
Forum: Personal Consumer Issues
Topic: Etiquette question: Paying for meals out & out of town guests
Replies: 79
Views: 6550

Re: Etiquette question: Paying for meals out & out of town guests

My wife and I hosted thanksgiving this year for 17 people including 5 overnight guests for multiple nights. The cost of everything was paid for by us (and man was it more than I expected). We also went out to dinner on Wed and everyone split checks. I was just happy the bill didn’t get set down in t...
by bigred77
Sat Nov 25, 2017 1:10 am
Forum: Investing - Help with Personal Investments
Topic: if you could use only 1 investment firm...
Replies: 79
Views: 5954

Re: if you could use only 1 investment firm...

I only use 1 right now as it is, Fidelity, and I’ve been very pleased.

If I had reason to utilize more exotic tools it would be Interactive Brokers but Ive yet to use them myself.
by bigred77
Thu Nov 23, 2017 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: How Does Real Estate Affect Asset Allocation?
Replies: 34
Views: 3369

Re: How Does Real Estate Affect Asset Allocation?

I only have a couple of fuzzy “rules of thumb”. My personal residence is an asset and part of my net worth but it does not affect the AA of my financial assets. If I had investment real estate, I would prefer it’s value (net of financing) not make up more than 1/3 of my net investible assets. If I h...
by bigred77
Mon Nov 20, 2017 6:06 am
Forum: Personal Finance (Not Investing)
Topic: HELOC to Maximize Retirement Contribution
Replies: 32
Views: 3355

Re: HELOC to Maximize Retirement Contribution

I see nothing wrong with the idea. You are essentially a couple with a 35%+ savings rate who needs to tap some home equity to pay college costs. As long as you keep those costs reasonable you should be fine.
by bigred77
Sat Nov 18, 2017 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: What we don't know
Replies: 42
Views: 3460

Re: What we don't know

We know to save as much as possible, invest in low cost funds, pick an appropriate asset allocation, keep debt reasonable, and stay the course.

It’s not that hard.
by bigred77
Fri Nov 17, 2017 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: To buy or not to buy...house buying question (budget)
Replies: 17
Views: 2102

Re: To buy or not to buy...house buying question (budget)

I would absolutely max out your 401k, 403b, and Backdoor Roth IRA space. Max all tax advantaged space. I don’t understand why anyone would recommend against that. Keep paying down your student loans at an accelerated pace. If you see a house in the price range you described (call it under 750k) then...
by bigred77
Thu Nov 16, 2017 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: Too much risk for early retirement?
Replies: 21
Views: 3862

Re: Too much risk for early retirement?

You have enough money to retire on 100k per year in expenses.

You have ways to access those funds without penalty and flexibility to really optimize your lifelong tax burden.

You have no financial reason to not retire right now if you want to.
by bigred77
Thu Nov 16, 2017 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Been thinking about this post for a while...Mom's retirement
Replies: 13
Views: 1818

Re: Been thinking about this post for a while...Mom's retirement

I think a straight forward SPIA once she retires (if she can make to 70 that would be great!) would be an excellent idea here.

I second the thought to downsize the house as soon as possible. Make sure the new place is “age in place” friendly.
by bigred77
Thu Nov 16, 2017 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Help for semi retired friend with 8 figure savings
Replies: 68
Views: 5898

Re: Help for semi retired friend with 8 figure savings

I would personally have: 25% each in US and INTL equity index funds. 40% in fixed income, mainly Muni's 10% in Real Estate and "alternatives" like VC and PE. My 10% would all be in REITs because if I wouldn't want the hassle of actively managing those other investments but to each their own. I would...
by bigred77
Wed Nov 15, 2017 11:34 pm
Forum: Investing - Theory, News & General
Topic: Car loans vs. Home loans - Are markets efficient?
Replies: 12
Views: 1317

Re: Car loans vs. Home loans - Are markets efficient?

It’s term risk. You have to incentivize someone to loan you money at a fixed rate for 15 or 30 years, no matter how credit worthy you are or how good the collateral is.
by bigred77
Tue Nov 14, 2017 5:30 pm
Forum: Personal Consumer Issues
Topic: Did you want to set up a payment plan for that?
Replies: 19
Views: 2708

Re: Did you want to set up a payment plan for that?

I'm a little surprised at the replies here. Yes, Bogleheads, with their generally high incomes and generally high savings rates can just eat $200 - $1000 expenses in stride. Just write a check or swipe your credit card and pay the bill at the end of the month. A huge chunk of this country does not h...
by bigred77
Mon Nov 13, 2017 10:42 am
Forum: Investing - Help with Personal Investments
Topic: What's your weighted average expense ratio?
Replies: 65
Views: 4243

Re: What's your weighted average expense ratio?

Mine is about 12 basis points with a slice and dice approach, close to 50% of equities are international, and I factor in trading costs of ETFs within my 401k brokerage link.

I'm satisfied. I think one day I could get it under 10 basis points as the index fund price wars rage on.
by bigred77
Thu Nov 09, 2017 11:45 pm
Forum: Personal Consumer Issues
Topic: Best Approach for Purchasing Many Furnishings
Replies: 27
Views: 2112

Re: Best Approach for Purchasing Many Furnishings

My first post college apartment was a condo that I actually bought via short sale so I expected to spend a number of years there. All I had was “college” furniture so I took my first bonus and furnished the whole 800sqft for about $5k or so from a discount furniture store. I thought I was such the s...
by bigred77
Wed Nov 08, 2017 2:56 pm
Forum: Personal Consumer Issues
Topic: Cable switching thought exercise
Replies: 15
Views: 1089

Re: Cable switching thought exercise

I doubt you need to play these games. At least I know you don't need to if your referring to Comcast. You call and ask to cancel your service after the promo period ends because of price. You insist on getting the deal their website shows for new subscribers. You deny them 2X when they come back wit...
by bigred77
Tue Nov 07, 2017 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: From 100% equity to 80/20. Overnight or over a year?
Replies: 23
Views: 2410

Re: From 100% equity to 80/20. Overnight or over a year?

I vote for overnight. You’ve made the decision, no reason to delay the execution.
by bigred77
Tue Nov 07, 2017 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: How old are you and how much do you save for retirement a year
Replies: 244
Views: 30125

Re: How old are you and how much do you save for retirement a year

Wife and I are both 32 and our household saves 42k per year into tax advantages accounts (including employer match).

We’re transitioning into a single income household in 2018 and hope to not have to decrease contributions but the budget is lookin skin tight :shock:
by bigred77
Tue Nov 07, 2017 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: BH Ideal net worth allocation
Replies: 22
Views: 3497

Re: BH Ideal net worth allocation

Really not uncommon for younger people to have substantial portions of their net worth in housing if they prioritized that earlier than others. Can also happen if you bought a house and immediately saw some significant appreciation. I don't know what "ideal" is but I would strive for some asset loca...
by bigred77
Fri Nov 03, 2017 10:14 pm
Forum: Investing - Theory, News & General
Topic: Dividends better than buybacks in retirement accounts
Replies: 32
Views: 2841

Re: Dividends better than buybacks in retirement accounts

I have read on here that buybacks and dividends achieve the same goals in regards to total return, but is that really the case? Take Dell for example. Dell purchased its own shares at 40, 30, and 20 dollars per share. They then went private at $15 per share. All that buyback money went poof for inv...
by bigred77
Fri Nov 03, 2017 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loans: Best to Pay Down or Wait for Forgiveness?
Replies: 33
Views: 2754

Re: Student Loans: Best to Pay Down or Wait for Forgiveness?

For me it is not just math. You incurred an obligation willingly, so I think you should pay it off. Especially with the assets you own and salary. I don't think this is fair. The law allows for this, just as it allows for tax loopholes and other things. Is forgiveness even possible after more than ...
by bigred77
Fri Nov 03, 2017 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: This is why I'm glad I started investing at 23
Replies: 27
Views: 5359

Re: This is why I'm glad I started investing at 23

I’m actually glad I started saving aggressively at 23 precisely so I can make my own run at climbing the corporate ladder. I’ve seen some ambitious people 10+ years my senior make aggressive career choices that backfire when someone else gets that promotion they were gunning for and suddenly they’re...
by bigred77
Fri Nov 03, 2017 9:23 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loans: Best to Pay Down or Wait for Forgiveness?
Replies: 33
Views: 2754

Re: Student Loans: Best to Pay Down or Wait for Forgiveness?

I would go with option 4. Lower your interest expense. Come up with a plan to pay it off over 10 years or so. You don’t want to be worrying about potential tax law changes over the next 19 years or be stuck with student loan payments into your mid 50s. Can you allocate $2K a month to it (plus put 10...
by bigred77
Wed Nov 01, 2017 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: I'm fairly young but done with saving money
Replies: 75
Views: 10499

Re: I'm fairly young but done with saving money

$2M probably gives you a safe withdrawal rate of $70-80k/year. Is that enough, especially when you figure in inflation? Even at 2%/year, inflation will take a huge chunk out of what that $80k will pay for 20, 30, or 40 years from now. Assuming 2% inflation, $80k now will be worth $35k in today’s do...
by bigred77
Tue Oct 31, 2017 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Will we be house poor in Boston? Help us to set a budget limit
Replies: 36
Views: 3452

Re: Will we be house poor in Boston? Help us to set a budget limit

I think you are well served considering a 30 year mortgage based on the current interest rate spread between 15 and 30 year interest rate spreads. You are locking in a 30 year amortization schedule, not 30 years of guaranteed payment obligations. You are buying cashflow flexibility and longer term l...
by bigred77
Wed Oct 25, 2017 4:35 pm
Forum: Personal Consumer Issues
Topic: Air China out of Dulles-- your experience?
Replies: 5
Views: 633

Re: Air China out of Dulles-- your experience?

I've flown on a number of Air China flights from Houston to/from Beijing and I was very impressed with their service and comfort compared to any other coach experience. Their prices were obviously the best and I never had any safety concerns. Great value. I MUCH preferred Air China to ANA. Night and...
by bigred77
Wed Oct 25, 2017 6:51 am
Forum: Personal Finance (Not Investing)
Topic: Should I Wait to Buy a Home?
Replies: 16
Views: 2942

Re: Should I Wait to Buy a Home?

I suspect that a lot of the high end market is less mortgaged than the entry level or middle market. Quite frankly I expect a lot of grumbling from a lot of parties with a vested interest in the mortgage interest tax deduction but ultimately a very muted market response even if it did come to pass....
by bigred77
Tue Oct 24, 2017 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Wait to Buy a Home?
Replies: 16
Views: 2942

Re: Should I Wait to Buy a Home?

They're talking about getting rid of the state income and property tax deductions. Maybe the mortgage interest deduction, too. Would this make you hesitate to by a home now? The higher-end market in our area has stalled. I'm wondering if people are waiting to see what happens with tax reform. Shoul...
by bigred77
Tue Oct 24, 2017 12:31 pm
Forum: Investing - Theory, News & General
Topic: Building very high net worth
Replies: 81
Views: 9938

Re: Building very high net worth

Honestly, if you are talking about high net worth, $12 million no longer qualifies because there are now over 2,000 billionaires. I would think it would take at least $100 million to be considered "quite wealthy" these days. $12 million is just comfortable when a new studio apartment can easily cos...
by bigred77
Fri Oct 20, 2017 1:50 pm
Forum: Personal Consumer Issues
Topic: Any BMW X5 owners?
Replies: 17
Views: 2805

Re: Any BMW X5 owners?

I have owned 2 BMWs (328i and X3) for the past 4-5 years out of warranty. They are 9 and 10 years old now, both with over 100k miles. I have had to do basic maintenance on both and a couple of reasonable repairs (oil/filter/brake fluid changes, new tires/batteries/lights, some repairs like new actua...
by bigred77
Wed Oct 11, 2017 8:33 am
Forum: Personal Consumer Issues
Topic: Greek Islands Cruise Excursions
Replies: 9
Views: 1087

Re: Greek Islands Cruise Excursions

Athens is obviously full of historic sights but everything was pretty close together (which helps when you have limited time). You can probably see the Parthenon, Acropolis, Temple of Zeus, and tour the Acropolis museum all in one day (then find a place for a nice meal). They're all right next to ea...
by bigred77
Tue Oct 10, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Shifting Gears - Sanity Check
Replies: 19
Views: 1409

Re: Shifting Gears - Sanity Check

I would not put TIPS in a Roth. You want your funds with the highest growth potential there, such as US TSM/Int TSM. That's the only thing I see that I would call a glaring error. My concern is the tax implications. I have to plan my life and investments around the new reality of a fixed and very l...