Search found 1479 matches

by bigred77
Tue May 16, 2017 2:11 pm
Forum: Personal Consumer Issues
Topic: How much to tip movers?
Replies: 44
Views: 3353

Re: How much to tip movers?

Apparently I am being underpaid.

I always help out friends who move because it's an excuse to drink beer during the day and a good excuse to get some exercise. My compensation is usually $9 worth of Miller Lite and maybe a pizza at the end.
by bigred77
Tue May 16, 2017 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else agree with my logic on silicon valley housing?
Replies: 84
Views: 6751

Re: Anyone else agree with my logic on silicon valley housing?

OP, In the Bay Area and other global cities, it's incredibly hard to buy property as a single 27 year old unless you have deep pocketed family willing to help. That's just a fact of life. If you move to Austin, do you want to immediately buy a house on an acre with a 15-20 mile commute? Why? There's...
by bigred77
Tue May 16, 2017 11:57 am
Forum: Investing - Help with Personal Investments
Topic: VNQ vs Crowdedfunded Real Estate
Replies: 16
Views: 1340

Re: VNQ vs Crowdedfunded Real Estate

I don't understand the appeal of some of these newer, alternative investment options. I'm thinking of crowd funding and P2P lending specifically. They're unproven. They're more expensive. They're less transparent. They're less liquid. I read the White Coat Investor blog quite a bit and I really resp...
by bigred77
Tue May 16, 2017 9:45 am
Forum: Investing - Help with Personal Investments
Topic: New Graduate w/ Large Loans & New Job - Options
Replies: 25
Views: 1723

Re: New Graduate w/ Large Loans & New Job - Options

Congrats on finishing your education and a pretty nice salary. I don't know if you are single or what type of area you live in but if I were in your shoes this is what I would do. I would contribute the full $6000 to my company to get the 75% match. Then I would figure out a way to live on $20-25k ...
by bigred77
Mon May 15, 2017 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else agree with my logic on silicon valley housing?
Replies: 84
Views: 6751

Re: Anyone else agree with my logic on silicon valley housing?

The problem is if you need another comparable job at some point, there are a lot more of them where you are than in Austin (In terms of making 250k+ with 5 yrs experience). Some people would drastically prefer living in San Jose to Austin in terms of weather, the beach, etc. this may not apply to yo...
by bigred77
Mon May 15, 2017 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: How much house? How large of a down payment? Infinite permutations are driving me batty
Replies: 36
Views: 3063

Re: How much house? How large of a down payment? Infinite permutations are driving me batty

If the houses you like are 650k - 900k for a single family home than that's probably where you want to be. It's affordable for you. Make sure you find/buy something that you can stay in indefinitely (good schools/commute/location). Sounds like that $598k loan size the higher conforming loan limit in...
by bigred77
Mon May 15, 2017 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else dial down retirement savings?
Replies: 32
Views: 5066

Re: Anyone else dial down retirement savings?

I don't understand the sentiment about "oversaving for retirement" in this case. The alternative use of your money would be to pay taxes at your marginal rate and then prepay a rental mortgage? Why? Is your rental cashflow negative or underwater? I'd rather sell an over leveraged rental pr...
by bigred77
Mon May 15, 2017 12:34 pm
Forum: Investing - Theory, News & General
Topic: BRK.A/B a dangerous long term play?
Replies: 20
Views: 1829

Re: BRK.A/B a dangerous long term play?

I'm less interested in the short-term drop that will inevitably occur (as it does when any negative news comes out regarding a company). I'm more interested in the long-term prospects for the company. I think it boils down to one question, what makes BRK different than other mutual or hedge funds? ...
by bigred77
Mon May 15, 2017 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Individual Stock - Apple & Pharmaceutical
Replies: 22
Views: 1741

Re: Individual Stock - Apple & Pharmaceutical

It's unclear to me if the money is in your wife's name or her fathers name, but earmarked for her when he passes.

If it's the latter, understand that their will be a step up in cost basis upon his death.
by bigred77
Mon May 15, 2017 12:17 pm
Forum: Investing - Theory, News & General
Topic: BRK.A/B a dangerous long term play?
Replies: 20
Views: 1829

Re: BRK.A/B a dangerous long term play?

I had 6 shares and sold 5 of them. This was my main reason. I realize the experts claim Warren's age, and eventual death, are factored into the price. However, I just can't see there not being some drop when he drops. There will be most definitely be a drop in BRK when Buffet steps aside or passes ...
by bigred77
Mon May 15, 2017 11:55 am
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 8340

Re: Home Country Bias...makes sense?

When two investment legends both come to the same conclusion, albeit for slightly different reasons to my knowledge, with their own sound arguments plus strong and lengthy historical data on their side, I don't believe we should take that lightly. They both know full well about Japan, the rise of A...
by bigred77
Mon May 15, 2017 11:47 am
Forum: Investing - Theory, News & General
Topic: Home Country Bias...makes sense?
Replies: 235
Views: 8340

Re: Home Country Bias...makes sense?

I seriously doubt a globally diversified portfolio will be the best performer over the long haul, and if your primary goal with international diversification is to improve returns then that is a poor reason to do it. It's more about avoiding disaster scenarios in individual countries. I'm pretty co...
by bigred77
Mon May 15, 2017 11:39 am
Forum: Investing - Help with Personal Investments
Topic: Buy and Hold Question - New Boglehead
Replies: 5
Views: 365

Re: Buy and Hold Question - New Boglehead

I don't know what your tax bracket is but I suspect if you liquidated the whole thing you'd owe about $3.5k in taxes (maybe less). That's an acceptable price to pay (for me) to streamline your investments now (and reset the cost basis in the process) once you have a well thought out plan in place th...
by bigred77
Sun May 14, 2017 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Was there a $$$ number after which things got easier?
Replies: 72
Views: 9283

Re: Was there a $$$ number after which things got easier?

I look forward to 3 events: 1- Knowing even if all income ceased, I'd be able to support a family indefinitely, even if at a lower standard of living than currently. Everyone will be sheltered, educated, and fed. 2- Knowing even if all income ceased, I'd be able to support a family indefinitely at o...
by bigred77
Thu May 11, 2017 1:17 pm
Forum: Investing - Theory, News & General
Topic: Arbitrage
Replies: 8
Views: 607

Re: Arbitrage

Some people can. Professional, institutional traders, with more advantages than you can imagine. The retail investor cannot. Even those traders can't make much off of it because as soon as they see an opportunity, so do others and price inefficiencies evaporate. That's a great thing for the rest of ...
by bigred77
Thu May 11, 2017 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Who really needs an umbrella insurance?
Replies: 38
Views: 4936

Re: Who really needs an umbrella insurance?

I have it. It's cheap. It's cheap for a reason. The chances of me ever using it are less than minuscule. It's basically black swan insurance. I would forego it in your situation. Maybe when you have a few hundred thousand in networth, own a property, or are more established in life. Once you are sho...
by bigred77
Thu May 11, 2017 12:30 pm
Forum: Investing - Theory, News & General
Topic: Why save so much for when you're old?
Replies: 163
Views: 18200

Re: Why save so much for when you're old?

I'm currently putting away 10% into my 401k and making monthly contributions to max out my Roth IRA - this comes out to putting away ~20% of my gross salary. If I wanted to save more (for the future in general), should I increase my 401k contribution or start putting away in a taxable account? In w...
by bigred77
Thu May 11, 2017 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Objectively critique an AXA recommended portfolio.
Replies: 16
Views: 808

Re: Objectively critique an AXA recommended portfolio.

I should have provided more context... I am not considering enrolling with AXA. I recently started a group to educate teachers (specifically in Orange County, Fl) about 403b/457b. My website is at http://www.educatorsfightingforfairness.wordpress.com. I've already recommended the best options (NEA ...
by bigred77
Wed May 10, 2017 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking advice for retirees (age 69, perhaps $3 MM) that are unhappy with their advisors
Replies: 34
Views: 2781

Re: Seeking advice for retirees (age 69, perhaps $3 MM) that are unhappy with their advisors

having gone through this with my parents as well as in laws, both who had "bad" advisory services *cough edwards jones cough* ... - 1% for advisory fee is reasonable for total assets under management. - i have a trusted advisor, in fact we've become very close friends and he is someone i ...
by bigred77
Wed May 10, 2017 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a luxury car (how dumb would it be to do this?)
Replies: 215
Views: 17240

Re: Buying a luxury car (how dumb would it be to do this?)

We have 2 BMWs in our household, 9 and 10 years old, both over 100k miles. Maintenance and repair costs have been more than our previous VW and Toyota but it not by much. Tires have been the same, oil changes are 100 instead of 30 bucks, batteries have been more, we have to replace an occasional act...
by bigred77
Wed May 10, 2017 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: Maximum Gain,swinging for the fences
Replies: 65
Views: 4563

Re: Maximum Gain,swinging for the fences

In that case, the clear winner is a leveraged portfolio. OP also stated "with new investment dollars" though. Would that eliminate the possibility of using leverage? Seems like "going negative" or eating into the existing portfolio is a non-starter. That would require the OP to ...
by bigred77
Wed May 10, 2017 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: How should I refinance my resident home?
Replies: 23
Views: 1106

Re: How should I refinance my resident home?

Money is fungible. At your level of assets and leverage ratio I would pretty much collateralize whatever I needed to in order to obtain the best terms for financing. I would make my decision solely on obtaining the lowest, after tax borrowing cost. You have $3.4M in assets and $0.9M in liabilities. ...
by bigred77
Wed May 10, 2017 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Young professional planning for early semi-retirement
Replies: 34
Views: 3999

Re: Young professional planning for early semi-retirement

First thing you do is download the free ebook "If You Can" by Bill Bernstein. Then you max out your 401k from day one on the job. Then you max out your Roth IRA from day 1 on the job. Put everything in target date retirement funds (make sure they utilize index funds) to start. Then you see...
by bigred77
Wed May 10, 2017 11:02 am
Forum: Investing - Theory, News & General
Topic: If everybody indexed, the only word you could use is chaos, catastrophe
Replies: 48
Views: 6287

Re: If everybody indexed, the only word you could use is chaos, catastrophe

On the list of financial catastrophes that I would spend any time thinking about, this ranks close to the bottom.

I'm sorry, this is bogleheads, this ranks in the lowest 7.694 percentile :mrgreen:
by bigred77
Wed May 10, 2017 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Able to Back Door Roth?
Replies: 8
Views: 642

Re: Able to Back Door Roth?

Can you just leave it in the old 401k?

Are there substantial assets in this plan?
by bigred77
Tue May 09, 2017 1:51 pm
Forum: Investing - Theory, News & General
Topic: Why Does The 60/40 Work So Well?
Replies: 72
Views: 9175

Re: Why Does The 60/40 Work So Well?

... I see Bogleheads blessing a 100% equity portfolio in certain circumstances when a poster says all the right things (I have a stable job, save a ton of money, never blinked in 2000 and 2008, etc.) but I never see any suggestions to push the expected return any further. Why are we drawing this ar...
by bigred77
Tue May 09, 2017 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Where to park my fat stacks [money]?
Replies: 20
Views: 2266

Re: Where to park my fat stacks [money]?

25% in a Intermediate Muni Bond Fund 25% in Total Bond Index Fund 25% in US Total Stock Market 25% in Total International Stock Market Being that your still in your early 50s, I would suggest a 50/50 equity to fixed income split. Beyond that, I would just keep it as simple as possible. What are your...
by bigred77
Tue May 09, 2017 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Are we doing better now?
Replies: 20
Views: 2907

Re: Are we doing better now?

I understand that with a username like cashisking500 this might be unpalatable to you but I would give serious thought just paying off both car loans and using the freed up cashflow to increase your 401k contributions to 10% each, rebuild your cash reserves, and even consider a 15yr mortgage instead...
by bigred77
Tue May 09, 2017 12:23 pm
Forum: Investing - Theory, News & General
Topic: Why Does The 60/40 Work So Well?
Replies: 72
Views: 9175

Re: Why Does The 60/40 Work So Well?

So much going on in this thread... from the genesis of the 60/40 portfolio recommendation to outright doubting of Modern Portfolio Theory!! Well my opinion is that it basically comes down to risk adjusted returns (as Nisiprius suggested). 60/40 will usually have better risk adjusted returns than eit...
by bigred77
Mon May 08, 2017 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Liquidate Retirement Assets to pay medical bills
Replies: 4
Views: 496

Re: Liquidate Retirement Assets to pay medical bills

I would at least explore bankruptcy protections afforded them in the state they live in. Retirement accounts are likely protected from creditors. When someone gets a medical bill 2.5X their annual household income, it's probably time to look at all options.
by bigred77
Sun May 07, 2017 4:43 pm
Forum: Investing - Theory, News & General
Topic: Uses of Debt
Replies: 21
Views: 2247

Re: Uses of Debt

Money is fungible. I borrowed heavily in my late 20s because interest rates were so low and I needed a lot of money for education expenses, a house, furniture, cars, etc. I was plowing about 30% of my household income into retirement accounts and it made more sense to borrow at super low rates of ta...
by bigred77
Thu May 04, 2017 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy for Mortgage Downpayment < 20%
Replies: 28
Views: 1597

Re: Strategy for Mortgage Downpayment < 20%

I think you would be far better off putting 20% down and just rebuilding your cash position as fast as possible. How long would it take to get it back to where you want it assuming you don't accelerate mortgage payments? Under foreseen circumstances probably 4-5 months. With 20% down, it would be l...
by bigred77
Thu May 04, 2017 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy for Mortgage Downpayment < 20%
Replies: 28
Views: 1597

Re: Strategy for Mortgage Downpayment < 20%

I think you would be far better off putting 20% down and just rebuilding your cash position as fast as possible. How long would it take to get it back to where you want it assuming you don't accelerate mortgage payments?
by bigred77
Thu May 04, 2017 12:29 pm
Forum: Personal Consumer Issues
Topic: Where to Live on $60K or Less a Year?
Replies: 213
Views: 17965

Re: Where to Live on $60K or Less a Year?

I would be on the first flight to Denver and start trying to see if I could find acceptable housing that I could afford.

Can you live with a 2 bedroom Condo close to town? How about a house in the exurbs as long as you don't have a commute?
by bigred77
Mon May 01, 2017 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Do you count lock-up shares part of your AA?
Replies: 18
Views: 914

Re: Do you count lock-up shares part of your AA?

I personally would ignore them until they were owned without restriction (and then i would immediately liquidate them). I would view it like a bonus that I expect to receive soon but I'm not entirely sure what the amount is going to be. The only way I would view it differently is if I intended to ho...
by bigred77
Mon May 01, 2017 11:08 am
Forum: Personal Consumer Issues
Topic: buying dining table is hard
Replies: 55
Views: 3328

Re: buying dining table is hard

I personally prefer Restoration Hardware (especially if you like wood and BIG furniture). It's expensive though. You have to really keep your eyes peeled to find a good deal. We bought our dining table and 10 chairs from RH on clearance and we spent under $3k. Go to their sale page for dining room f...
by bigred77
Mon May 01, 2017 11:04 am
Forum: Investing - Theory, News & General
Topic: Are we all forgetting our taxable accounts?
Replies: 79
Views: 9682

Re: Are we all forgetting our taxable accounts?

I have no intention of giving up tax advantaged space for the sole reason of "it's easier to access my money". If and when I am able and willing to save more than my tax advantaged space will allow, then I will start a taxable account. If things go as planned I will not have taxable invest...
by bigred77
Fri Apr 21, 2017 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: The Value of Debt in Retirement
Replies: 16
Views: 1362

Re: The Value of Debt in Retirement

Is it better to have 5 million in assets with 1 million in debt or 3 million in assets and no debt? It's better to have 5M in assets and 1M in debt. Because obviously I'd prefer a $4M net worth to a $3M net worth. I can liquidate assets to pay off the debt at any time. At that level of assets thoug...
by bigred77
Fri Apr 21, 2017 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Switching Insurance Companies - How painful is it?
Replies: 6
Views: 583

Re: Switching Insurance Companies - How painful is it?

I was with USAA for a number of years before switching because their costs were no longer competitive for my situation. I shopped all of my policies together because that was easiest (I did not have term life, so maybe exclude that when shopping around as I assume your premiums are locked in already...
by bigred77
Fri Apr 21, 2017 8:45 am
Forum: Personal Consumer Issues
Topic: How much to pay a housekeeper?
Replies: 23
Views: 2809

Re: How much to pay a housekeeper?

I pay a company (not an individual housekeeper) to come do a full house cleaning every other week (3k+ sq ft). They do a good job, probably takes 2 people 2-3 hours per service visit. I pay about $140 after tax per visit. I think it's a little on the high side. Major city in the South.
by bigred77
Thu Apr 20, 2017 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: How to reduce my income tax
Replies: 31
Views: 3162

Re: How to reduce my income tax

If you can get your federal income tax burden down around an effective rate of 12.5% on a gross income of over 250k than I think your doing really well.
by bigred77
Thu Apr 20, 2017 12:25 pm
Forum: Personal Consumer Issues
Topic: What To Do With My Car While in NYC
Replies: 32
Views: 2887

Re: What To Do With My Car While in NYC

Sell it or loan it to a family member (maybe they can pay you something per month to subsidize your payment)
by bigred77
Thu Apr 20, 2017 8:34 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 336
Views: 36769

Re: Larry Swedroe says "Goodby."

Very sorry to hear this become official.

I hope Larry reconsiders in the future.
by bigred77
Wed Apr 19, 2017 12:20 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe : Integrated Investment Plan
Replies: 35
Views: 6646

Re: Larry Swedroe : Integrated Investment Plan

I sense a fair amount of pearl clutching about how Larry handled certain interactions. My thoughts: 1) I think it is important to remember that in the vast amount of scenarios it was him responding to someone else who cast the first stone IMO. 2) He has dealt with many of the issues raised over and...
by bigred77
Wed Apr 19, 2017 10:24 am
Forum: Personal Consumer Issues
Topic: Tips on Uber
Replies: 64
Views: 5204

Re: Tips on Uber

I've only tipped 2X in an Uber with over 100+ rides. My rating is around 4.7. Once when my friend (and probably me as well :D ) was obnoxiously intoxicated. Once again when I asked if they could stop at a convenience store so I could run in and buy something on my way home. Both times I gave an extr...
by bigred77
Wed Apr 19, 2017 8:16 am
Forum: Investing - Help with Personal Investments
Topic: Inherited over $500k looking to invest & produce income
Replies: 13
Views: 2449

Re: Inherited over $500k looking to invest & produce income

Thanks to all for taking the time to reply. Your thoughts, comments, and ideas are all appreciated. Just to cover some of what I've read and answer a few questions. 1. My plan is to "semi retire" or what I call live life in "financial freedom". To do that we need to create cash ...
by bigred77
Tue Apr 18, 2017 3:54 pm
Forum: Investing - Theory, News & General
Topic: Weight loss and investing
Replies: 35
Views: 4090

Re: Weight loss and investing

I see a lot of the similarities as well. My problem is I'm knowledgeable on both fronts. I know exactly what to do, how to do it, and why to do it. I have found I have pretty good financial discipline and have seen the results. I have found I have almost no diet/exercise discipline and have not seen...
by bigred77
Tue Apr 18, 2017 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: which mortgage to go with?
Replies: 5
Views: 777

Re: which mortgage to go with?

Honestly, with the cost of your housing apparently so low compared to your income I would try to take a 401k loan and just pay cash for the condo. You have 60k in cash now and want to save 20k per year going forward? Just use the first year to pay off the 401k loan and set up max retirement contribu...
by bigred77
Tue Apr 18, 2017 1:28 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe : Integrated Investment Plan
Replies: 35
Views: 6646

Re: Larry Swedroe : Integrated Investment Plan

Azanon, I think your view is incorrect. I believe Larry was only trying to give back. He was just trying to get the word out on the winning strategy. he doesn't get much of anything in return except the satisfaction of helping others. I could be wrong, but doubt it strongly. Dave Being active on a ...
by bigred77
Tue Apr 18, 2017 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Did anything surprise you in your 2016 taxes?
Replies: 83
Views: 7098

Re: Did anything surprise you in your 2016 taxes?

No real surprises other than our tax liability was higher than I would have guessed (although if I had done any projections I would have clearly seen it coming). Refinanced in late 2015 so less mortgage interest, no tuition expenses to deduct in 2016, and more income. Was an eye opener though.

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