Search found 1661 matches

by bigred77
Thu Jul 13, 2017 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Sale of Oil/Gas Royalty
Replies: 21
Views: 948

Re: Sale of Oil/Gas Royalty

Well if you sell for more than your cost basis, you will have long term capital gains. If it was producing when you inherited it, and if that was oh 3-10 years ago, I doubt you have a capital gain. Prices were much better back then. In fact, I assume an accountant worth their salt could help you sho...
by bigred77
Thu Jul 13, 2017 12:52 pm
Forum: Personal Consumer Issues
Topic: Hotel tipping: how much to leave?
Replies: 72
Views: 3663

Re: Hotel tipping: how much to leave?

I know many people do, but I don't tip housekeeping at hotels. Not at a low end motel and not at the Four Seasons. I will tip the guy who brings my luggage up to the room and the I will tip whoever brings my food if I order room service. No deep reasoning behind this, just the routine I've gotten in...
by bigred77
Thu Jul 13, 2017 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Do you count vehicle equity in net worth?
Replies: 178
Views: 7178

Re: Do you count vehicle equity in net worth?

I track my networth and update it frequently. It's probably the number 1 metric I use to gauge my financial progress. I don't include cars, just financial assets and my house minus all debt. If I had a car loan I'd look at it as a liability without a corresponding asset (just like I would a student ...
by bigred77
Thu Jul 13, 2017 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Corporate Bond Website?
Replies: 34
Views: 1833

Re: Corporate Bond Website?

Just because you invest in individual corporate bonds with the intention of holding them to maturity, does not mean your principal will be unaffected by interest rate changes. If you buy 10k worth of bonds and rates go up, when you log in tomorrow you will see less than 10k as your account balances...
by bigred77
Tue Jul 11, 2017 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Structuring payoff offer for house in foreclosure, above water
Replies: 17
Views: 1666

Re: Structuring payoff offer for house in foreclosure, above water

I don't know where the IRS lien fits in the hierarchy of claims to be paid from sale but if the house you think is worth 600k sells for 178k or more than I'm confident the primary mortgage holder is made whole. I can't imagine they would deal with you at all. Especially because their likely just the...
by bigred77
Tue Jul 11, 2017 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: Corporate Bond Website?
Replies: 34
Views: 1833

Re: Corporate Bond Website?

Just because you invest in individual corporate bonds with the intention of holding them to maturity, does not mean your principal will be unaffected by interest rate changes. If you buy 10k worth of bonds and rates go up, when you log in tomorrow you will see less than 10k as your account balances....
by bigred77
Fri Jul 07, 2017 1:53 pm
Forum: Investing - Theory, News & General
Topic: Weak Evidence for International in Vanguard Research - Am I Missing Something?
Replies: 74
Views: 5052

Re: Weak Evidence for International in Vanguard Research - Am I Missing Something?

There are some things in investing that I pretty much accept as inevitable: - There will be another recession eventually and stocks will suffer big (20%, 30% 40%, 50%, maybe even more) losses. - There will be another decade or longer will US treasuries outperform stocks - There will be a decade or l...
by bigred77
Sat Jul 01, 2017 8:11 pm
Forum: Investing - Theory, News & General
Topic: would you take a new mortgage to invest in stock market?
Replies: 30
Views: 2662

Re: would you take a new mortgage to invest in stock market?

Yes I would. But it depends on age and where I am positioned over my investing lifecycle. If I have a paid off house in my early 40s, and mortgage rates are like they are today, I absolutely would. If I have a paid off house and I'm in my early 60s and in/close to retirement. I would not. I wouldn't...
by bigred77
Fri Jun 30, 2017 6:39 am
Forum: Personal Consumer Issues
Topic: How did you handle the costs of your child's wedding?
Replies: 170
Views: 11958

Re: How did you handle the costs of your child's wedding?

I got married half a decade ago. First in my social circle. My wife and I were the only ones to foot the bill ourselves, simply because there was no family money available to us. Everyone else I know had parents who paid the majority of costs. Our wedding and honeymoon and everything sans engagement...
by bigred77
Tue Jun 27, 2017 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: advice on how to invest inheritance wisely
Replies: 12
Views: 1134

Re: advice on how to invest inheritance wisely

One thing I'd add is if your still a student I assume your taxable income is low. You may want to consider withdrawals from the inherited IRAs in excess of the RMDs to fill up space in lower tax brackets. You don't have to spend the money, just withdraw it and reinvest it in a taxable account.
by bigred77
Tue Jun 27, 2017 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth Contributions for lower PMI
Replies: 2
Views: 287

Re: Withdraw Roth Contributions for lower PMI

I would not touch your Roth funds in this situation. That space is precious. Talk to another mortgage broker. It's fairly easy avoid PMI with a 10% down payment. You can get a standard 30 year fixed for 80% of the purchase price, put 10% down, and get a piggy back loan for the remaining 10% at a sli...
by bigred77
Mon Jun 26, 2017 6:33 pm
Forum: Personal Consumer Issues
Topic: Best way to look for a "long-term" rental
Replies: 6
Views: 718

Re: Best way to look for a "long-term" rental

Airbnb.com
VRBO.com
by bigred77
Mon Jun 26, 2017 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Looking into selling a structured settlement and need some advice
Replies: 66
Views: 4014

Re: Looking into selling a structured settlement and need some advice

I guess just to be a dissenting opinion, I don't think the upfront offer is unreasonable. You are still facing credit risk of the entity making the payments staying solvent for maybe 70+ years and you are facing inflation risk for 70+ years hoping it stays close to 3% or so. Also if you keep the set...
by bigred77
Mon Jun 26, 2017 6:28 am
Forum: Personal Finance (Not Investing)
Topic: Paying bills
Replies: 3
Views: 677

Re: Paying bills

Fidelity would be a viable option for you to consolidate. They have very good cash management products and a good online bill pay setup.
by bigred77
Mon Jun 26, 2017 6:25 am
Forum: Investing - Help with Personal Investments
Topic: Looking into selling a structured settlement and need some advice
Replies: 66
Views: 4014

Re: Looking into selling a structured settlement and need some advice

Sounds pretty easy to model. You know the amount and timing of the cashflows, you have an offer on the table which can be used as the net present value of the cashflows, all you need to calculate is the discount rate used by the potential buyer (the IRR). I'm sure if you post all the details someone...
by bigred77
Sun Jun 25, 2017 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Analysis of my portfolio as I contemplate early retirement?
Replies: 8
Views: 948

Re: Analysis of my portfolio as I contemplate early retirement?

You have 19 years worth of expenses in your taxable account with the ability to tax gain harvest and do Roth conversions to optimize your taxes. That's with a real return of 0. That brings you to 70 and you will have had 2 decades to leave your tax advantaged accounts to grow untapped. You are golde...
by bigred77
Fri Jun 23, 2017 8:57 am
Forum: Personal Finance (Not Investing)
Topic: 401k loan as "bridge loan" - own current home in cash - poke holes in this plan
Replies: 24
Views: 1134

Re: 401k loan as "bridge loan" - own current home in cash - poke holes in this plan

I have nothing against 401k loans but the limit is typically 50% of your balance or 50k, whichever is less. Can you delist your home and take out a HELOC for your down payment? Many places won't put a HELOC on a property listed for sale.
by bigred77
Wed Jun 21, 2017 4:53 am
Forum: Personal Finance (Not Investing)
Topic: Co-workers advising to buy house RIGHT NOW
Replies: 63
Views: 6288

Re: Co-workers advising to buy house RIGHT NOW

Enjoy your Glenfiddich. Stop worrying about what everyone is telling you to do. If you feel content, don't let someone knock you out of your comfort level. Regardless of where home prices are headed, this is the best advice - thanks ERISA Stone. We just have to work on how to stop worrying about wh...
by bigred77
Thu Jun 15, 2017 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: house or condo for a frequent traveling family?
Replies: 17
Views: 1746

Re: house or condo for a frequent traveling family?

I thought houses were always a much better investment then condos, could you be a little more specific about the differences in how they appreciate? thanks! It's hard to be specific but in general there is no hard and fast rule that says houses appreciate at a different rate than condos. All reside...
by bigred77
Thu Jun 15, 2017 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: House closing in 2 weeks. RE Attorney made a mistake and won't fess up. What to do???
Replies: 8
Views: 1174

Re: House closing in 2 weeks. RE Attorney made a mistake and won't fess up. What to do???

Yeah with real estate transaction you just do the best you can do identify and eliminate fluff as the process moves along. Then go over the closing settlement statement as closely as possible (I've always found at least one minor mistake). Then just know that there is always something that will pop ...
by bigred77
Thu Jun 15, 2017 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate Prices, expecting over listing?
Replies: 8
Views: 900

Re: Real Estate Prices, expecting over listing?

It has to do with how hot the market is IMO. If I price my house right at market value and it would go under contract in under a week then that's a hot market. I probably want to price it a little under market to try and get multiple offers. Once you send out word to someone who's already made an of...
by bigred77
Thu Jun 15, 2017 12:25 pm
Forum: Investing - Theory, News & General
Topic: How riskier are Aaa corporate bonds?
Replies: 14
Views: 1414

Re: How riskier are Aaa corporate bonds?

I'd also say in most instances, a retail investor shouldn't have any need to purchase individual corporate bonds. For the vast majority, a bond fund will do just fine. Cd's are also a fine choice. If you insist on individual securities, I think treasuries would work just fine. If you are buying indi...
by bigred77
Thu Jun 15, 2017 12:19 pm
Forum: Investing - Theory, News & General
Topic: When you purchase shares, where does the money go?
Replies: 19
Views: 1619

Re: When you purchase shares, where does the money go?

So the mutual fund company purchases the shares. Where does the money go after that? Meaning does a portion of it go to Apple, Microsoft, the companies that make up the funds? When the mutual fund purchases shares, they do so on the open market (I'm not counting IPOs here, because most index funds ...
by bigred77
Thu Jun 15, 2017 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage amount vs savings vs interest deduction
Replies: 26
Views: 1609

Re: Mortgage amount vs savings vs interest deduction

Well I would probably aim to put down 300k and play with the numbers from there. - I believe the mortgage tax deduction is limited to interest charged on up to $1M in principal, plus I assume you would itemize even with a paid off property (your property taxes alone probably put you over the line), ...
by bigred77
Wed Jun 14, 2017 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Walk me through a backdoor Roth?
Replies: 42
Views: 2044

Re: Walk me through a backdoor Roth?

You can't add $30K at one time to an IRA, so you can't backdoor roth $30K in cash. You have to accumulate it in an IRA. This. You can only contribute up to 5.5k per year to a backdoor Roth. I also recommend doing it in a lump sum. You can do it in monthly installments but if you have the assets I'd...
by bigred77
Wed Jun 14, 2017 7:13 pm
Forum: Investing - Theory, News & General
Topic: What growth rate for your projection calcs?
Replies: 31
Views: 2669

Re: What growth rate for your projection calcs?

I have multiple decades to go until retirement. I have a 75/25 portfolio with small and value tilts, 40% or so of equities in INTL, that I intend to hold until retirement with annual rebalancing. I plan using 5% real for my portfolio. I think that is a conservative number. I see what happens if I ge...
by bigred77
Wed Jun 14, 2017 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Bond funds vs bonds (yes, again)
Replies: 16
Views: 1448

Re: Bond funds vs bonds (yes, again)

I guess I don't see the issue here. Yes, if interest rates go up my bond fund will drop in value, but as the fund ads new bonds at the higher yield I benefit from the higher yield, right? Presumably it all comes out in the wash, so to speak. Someone please correct me if I'm wrong. I'm no expert at ...
by bigred77
Wed Jun 14, 2017 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: house or condo for a frequent traveling family?
Replies: 17
Views: 1746

Re: house or condo for a frequent traveling family?

Maybe a happy medium would be a house where the HOA takes care of yard work, provided that the HOA fees are generally reasonable? I actually own a house in a small community where the HOA does collect a reasonable fee and hires out landscaping for all residents. I think it's fantastic. You have mor...
by bigred77
Wed Jun 14, 2017 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: REIT in a taxable account
Replies: 19
Views: 2272

Re: REIT in a taxable account

The only thing I would add is if this was a known speculative investment, with a return profile where you think you will either hit it out of the park or really take a bath on it, then I could see choosing to own it in a taxable account. That way if it tanks, you can tax loss harvest and you won't h...
by bigred77
Wed Jun 14, 2017 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: house or condo for a frequent traveling family?
Replies: 17
Views: 1746

Re: house or condo for a frequent traveling family?

Does your family travel with you? If the spouse and baby stay at home then I wouldn't use the frequent travel as such a primary driver in the decision process. Do you want a single family home? Would your spouse be comfortable handling maintenance/repairs by themselves (or would you hire it out anyw...
by bigred77
Wed Jun 14, 2017 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off more of mortgage or wait?
Replies: 23
Views: 2653

Re: Pay off more of mortgage or wait?

If you would itemize even with no mortgage, any money you are prepaying the mortgage with is locking in an after tax return of 3.375%*(1- Your Marginal Tax Rate). In the 25% tax bracket that's about 2.5%. In the highest tax bracket that's a hair over 2% flat. If you were paying off the property and ...
by bigred77
Wed Jun 14, 2017 5:49 pm
Forum: Investing - Theory, News & General
Topic: Is Inflation Dying of Old Age?
Replies: 82
Views: 7085

Re: Is Inflation Dying of Old Age?

Looking around for an analysis of real stock returns historically at various levels of inflation, this study surfaced: S&P 500 Real Returns, 1872-2014 https://s14.postimg.org/43ssljo5d/graph_realreturns_CPI.jpg Source: Pioneer Investments Not only have U.S. real equity returns not suffered at l...
by bigred77
Wed Jun 14, 2017 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: retitling property
Replies: 5
Views: 447

Re: retitling property

You didn't say how things were titled but if the LLC owns the house then the family member can be bought out of their ownership in the LLC and the title to the house remains unchanged. If the house is not titled to the LLC then you probably would have to go about correcting it. If you expect possibl...
by bigred77
Wed Jun 14, 2017 5:34 pm
Forum: Personal Finance (Not Investing)
Topic: valuing real estate for probate
Replies: 4
Views: 475

Re: valuing real estate for probate

Gill wrote:I would use the purchase price for both probate and estate tax value to establish basis.
Gill


+1
by bigred77
Wed Jun 14, 2017 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: The Average Mortgage?
Replies: 15
Views: 1199

Re: The Average Mortgage?

I too am guilty of looking up people's names via the county appraisal district's website. I can see when they bought any property and what the appraised value is and was. I'd be too embarrassed to tell people I do this but I find it entertaining and informative (my state does not require loan amount...
by bigred77
Wed Jun 14, 2017 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Help My Mother "Survive"?
Replies: 67
Views: 4829

Re: Help My Mother "Survive"?

OP, my mother was in a similar position not too long ago. This is an incredibly common financial position to be in (outside of boglehead circles). 2 things I would stress: She has to try and get a higher paying job if at all possible. She has to at least take on full-time, or close to full time hour...
by bigred77
Wed Jun 14, 2017 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Who takes financial chances and why is this forum so financially conservative?
Replies: 139
Views: 12505

Re: Who takes financial chances and why is this forum so financially conservative?

My perception of this board is that it's pretty darn conservative. That's fine most of the time, being financially conservative is a prudent choice. You definitely lower your chances of getting in trouble. Sometimes however, I think the advice some posters get is so over the top conservative that it...
by bigred77
Wed Jun 14, 2017 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Would you take a 25% pay cut for more professional satisfaction?
Replies: 57
Views: 3686

Re: Would you take a 25% pay cut for more professional satisfaction?

Only if you can afford to take lower paying job and only if you think one of the first two opportunities will provide you with those perceive benefits. If I was in my 20's, yes, I would go for it. That's interesting. I think my opinion is just the opposite. I've been out of my 20s for a few years n...
by bigred77
Mon Jun 12, 2017 9:51 pm
Forum: Investing - Theory, News & General
Topic: Safemax with varying AA
Replies: 41
Views: 2238

Re: Safemax with varying AA

There have been a couple of projects that I am aware of that look into a rising equity glidepath in retirement. I've read some of the material but didn't find the conclusions all that convincing (it's been a while though). I don't know if your parameters were specifically used but you can google &qu...
by bigred77
Mon Jun 12, 2017 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: Bond funds vs bonds (yes, again)
Replies: 16
Views: 1448

Re: Bond funds vs bonds (yes, again)

The other day, I was watching a PBS fundraising program that featured Suze Orman, whom I normally tune out. She addressed the issue of bond funds. As per usual, she recommended individual bonds over bond funds because of interest rates presumably rising, thus lowering the value of the bond funds (a...
by bigred77
Mon Jun 12, 2017 4:35 pm
Forum: Investing - Theory, News & General
Topic: Add TIPS and High Yield Corporate Bonds To Your Portfolio?
Replies: 16
Views: 1475

Re: Add TIPS and High Yield Corporate Bonds To Your Portfolio?

In the accumulation phase, I split my fixed income 40/40/20 between Total Bond, TIPS, and Intermediate term corporate bonds. In retirement I plan to just hold 50/50 Total Bond and TIPS. I chose this allocation because I like round numbers, it's easy to rebalance around, and at this level of granular...
by bigred77
Mon Jun 12, 2017 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement or permanent limbo around 50?
Replies: 19
Views: 2389

Re: Retirement or permanent limbo around 50?

I saw this in another thread and it's a sobering thought. Is this reality if you don't have a government job? Retirement or permanent limbo around 50 is common among the large group of people I know directly or indirectly. I only know one person in a similar situation (former mortgage banker) who l...
by bigred77
Mon Jun 12, 2017 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: New(ish) to investing - Too much cash? - Need guidance
Replies: 10
Views: 1443

Re: New(ish) to investing - Too much cash? - Need guidance

Well a couple of thoughts. I do think you are a good candidate to do a mega backdoor Roth IRA if your employer plan allows this. I would do this before I did anymore taxable investing (unless you make buying a house a goal and want to set money aside specifically for a down payment). I think you are...
by bigred77
Mon Jun 12, 2017 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Retire Early?? Part 2: Withdrawal Strategy and Plan
Replies: 12
Views: 1723

Re: Retire Early?? Part 2: Withdrawal Strategy and Plan

Your initial withdrawal rate seems reasonable. An appropriate AA should account for your sequence of returns risk. All the big ratios seem within the realm of prudence. The withdrawal location issue seems to be a question of optimizing lifetime tax liabilities. I think in general, It's going to be b...
by bigred77
Fri Jun 09, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Handshake Deal for Home Purchase
Replies: 13
Views: 2039

Re: Handshake Deal for Home Purchase

The absolutely only way I would do this is a closed purchase (money exchanges hands) with a lease back to 9/1 as part of the closing. I would include a reasonable amount as a security deposit, refundable when they leave the property in acceptable condition, that could be obtained via the funds payab...
by bigred77
Thu Jun 08, 2017 5:31 pm
Forum: Investing - Theory, News & General
Topic: Retirees: What are you doing about withdrawing?
Replies: 31
Views: 4286

Re: Retirees: What are you doing about withdrawing?

Interesting to see the mechanics of what people are doing in practice. I am not retired or withdrawing anything, but my general plan is to rebalance the portfolio once a year (I do not have bands, I just do it annually). At the time I rebalance, I would sell assets to generate 12 months worth of cas...
by bigred77
Thu Jun 08, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Recession Planning
Replies: 35
Views: 2615

Re: Recession Planning

I would not change my financial plan in the face of a recession. If I were to lose my job, I'm generally aware of expenses I could cut and accelerated debt repayments that I would stop (I have not made a concrete list though). There's a lot of fat in my budget that I could cut. I estimate I could sl...
by bigred77
Thu Jun 08, 2017 8:30 am
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 7362

Re: 100% Stock Portfolio?

You've given me something to think about. LIBOR + a small amount vs expected Rate of growth of VTI - Tax. Margin loans are tax deductible (assuming you used it to buy an ETF and not a car). Assuming you itemise then the cost is: LIBOR + a small amount - tax deduction If you're at 28% rate then your...
by bigred77
Thu Jun 08, 2017 8:10 am
Forum: Investing - Theory, News & General
Topic: 100% Stock Portfolio?
Replies: 138
Views: 7362

Re: 100% Stock Portfolio?

In terms of return there isnt much difference between a 100/0 or an 80/20. The 80/20 protects you more when the market crashes. I believe going 100/0 was only generating 1.5% more returns. The difference is a lot less. Over long periods of time (10, 20+ years) the difference is usually less than 0....
by bigred77
Wed Jun 07, 2017 10:11 pm
Forum: Personal Consumer Issues
Topic: Buying a House with an Old but Working Roof
Replies: 19
Views: 1124

Re: Buying a House with an Old but Working Roof

You are free to offer whatever price you want but a roof with 5-10 years of useful life yet isn't exactly a good negotiation point (IMO). If I was the seller and you specifically stated that as justification for a lower price I wouldn't think you were a serious buyer. If it bothers you, by all means...

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