Search found 1179 matches

by bigred77
Wed Jan 11, 2017 11:31 am
Forum: Investing - Help with Personal Investments
Topic: $600,000. Now what?
Replies: 55
Views: 9968

Re: $600,000. Now what?

OP, What you are describing is a very unsustainable approach to finance where you have A.) been lucky enough to invest solely through a tremendous bull market run and, on top of that, B.) managed to make some extremely successful stock picks (through sheer luck) which has left you in a really great ...
by bigred77
Wed Jan 11, 2017 10:44 am
Forum: Investing - Help with Personal Investments
Topic: How're we doing?
Replies: 33
Views: 3365

Re: How're we doing?

Just for the record here OP. You have a negative networth!! You have fantastic incomes but if your networth was 0, that would be an improvement!! Not an ideal time to be buying a house. With such a fantastic income, I would move into a nice 2 bedroom rental and go with your plan to throw 7k a month ...
by bigred77
Wed Jan 11, 2017 9:43 am
Forum: Investing - Help with Personal Investments
Topic: Help me decide if I should Invest or Payoff Loans?
Replies: 15
Views: 1299

Re: Help me decide if I should Invest or Payoff Loans?

Pay off the car. Pay off the Student loans. Max out your Roth IRA contribution for 2016 (you have until April to do this). Max out your Roth IRA contribution for 2017. Go in and change your 401k contribution to 10% of salary. Then reassess. Your cash will have dropped down to about 10k by doing this...
by bigred77
Tue Jan 10, 2017 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: Home stretch — Where best to accumulate when close to early retirement?
Replies: 12
Views: 2133

Re: Home stretch — Where best to accumulate when close to early retirement?

My vote would be to prioritize tax deffered until you use up all the available space or you get down into the 15% tax bracket (where Roth contributions may start to make sense). You will likely have at least a couple of years where you can live on your taxable account while deffering your pensions t...
by bigred77
Tue Jan 10, 2017 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: How often do you make contributions to your portfolio?
Replies: 15
Views: 1013

Re: How often do you make contributions to your portfolio?

We contribute every paycheck to the 401k and Roth IRA's. No taxable investments yet.

I kinda just stick the funds in whatever fund looks to be lagging.

I re balance back to my predetermined AA every year on my birthday. I do not have rebalancing bands.
by bigred77
Tue Jan 10, 2017 2:08 pm
Forum: Personal Consumer Issues
Topic: Should I ask this contractor to lower his quote?
Replies: 13
Views: 1616

Re: Should I ask this contractor to lower his quote?

I would probably call back the contractor you want to work with and say he was highly recommended by a friend but the other bids came in cheaper. You want to work with him, but are going to ask if he can perform the job for $3k flat, plus materials. I don't see anything wrong with negotiating for a ...
by bigred77
Tue Jan 10, 2017 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Do you really need 2.5 million to retire well?
Replies: 267
Views: 46688

Re: Do you really need 2.5 million to retire well?

Rodc wrote:
But at some point along the journey one can buy a pension, and this option seems underutilized.


Incredibly underutilized. It can be a great tool for increasing one's income floor as well as allowing for a higher withdrawal rate.
by bigred77
Tue Jan 10, 2017 1:12 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 189
Views: 12195

Re: How Bad was 2008, really?

pinhead wrote:If you bought stocks 30 years ago, it would have the same value in 2008. Thats how bad it was.


I don't know about that. $1,000 invested in the S&P 500 in 1978 was worth like $20,000 in 2008.
by bigred77
Tue Jan 10, 2017 1:05 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 189
Views: 12195

Re: How Bad was 2008, really?

I graduated in 2008 and was lucky enough to have a job lined up in an industry that was booming (oil and gas) so I was able to sidestep the worst of the recession. My classmates who did not go into the same industry did not fare very well. And then when the recovery started they were competing with ...
by bigred77
Tue Jan 10, 2017 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Doctors and retirement
Replies: 67
Views: 7030

Re: Doctors and retirement

It does not shock me at all. I am not a doctor and our household income is just a touch under 200k per year. I am aiming for 5M-10M in retirement (closer to 10M, and I'm talking in nominal dollars assuming 2%-3% inflation in roughly 25 years). Saving 25% -33% of our income, which can be done without...
by bigred77
Mon Jan 09, 2017 6:05 pm
Forum: Personal Consumer Issues
Topic: Best Ways to Buy Time
Replies: 68
Views: 7127

Re: Best Ways to Buy Time

Obvious ones are maid and lawn service. I hate grocery shopping so I would partake in instacart if I didn't care about spending 5%-10% more on groceries (or so it seems in my city). I would Uber a lot more places. Especially if parking is going to be a pain. Find a good jack of all trades handy man ...
by bigred77
Mon Jan 09, 2017 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Predicting future Net Worth
Replies: 31
Views: 4049

Re: Predicting future Net Worth

It sounds like your trying to plot 8 data points and use regression analysis to plot a trend line? I think you'd be better off to project how much you will save, how much debt you can/will pay off, and use a a range of projections for returns on your assets. 5 years is awfully short for projecting a...
by bigred77
Mon Jan 09, 2017 12:34 pm
Forum: Investing - Theory, News & General
Topic: "How Market Crashes Happen"
Replies: 9
Views: 1208

Re: "How Market Crashes Happen"

I thought this Credit Suisse document I found linked from there pretty interesting: https://doc.research-and-analytics.csfb.com/docView?language=ENG&format=PDF&sourceid=em&document_id=x745112&serialid=knrGGNw%2bo620toTTx96qBQ%3d%3d ... The investors leaving active managers are likel...
by bigred77
Mon Jan 09, 2017 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Best Financial Moves You've Made
Replies: 141
Views: 15396

Re: Best Financial Moves You've Made

Deciding from day 1 to set aside a healthy percentage of my income FIRST, and then live on the remainder.
by bigred77
Fri Jan 06, 2017 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Is driving for uber worth it for side money?
Replies: 67
Views: 10398

Re: Is driving for uber worth it for side money?

I had the same thought process. I could drive only when surge pricing hit and I wanted to actually do it. I even began the sign up process. Then I realized it just didn't make any sense. I would be far better off in my situation just reducing expenses (this may not apply to you but we do not live al...
by bigred77
Fri Jan 06, 2017 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Assuage my fears? (Buying a house)
Replies: 12
Views: 933

Re: Assuage my fears? (Buying a house)

I think many first time home buyers discount location. They just can't overcome the difference in size and aesthetics for their dollar when they first start looking. It's just hard. That being said, you already bought the house, so just enjoy it. Stay as long as you can/want. In the future, if you c...
by bigred77
Fri Jan 06, 2017 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Car for Teen next year...new vs used?
Replies: 50
Views: 3388

Re: Car for Teen next year...new vs used?

When I was 16 I got a old beater car for my birthday and I was eternally grateful. Then I had a couple of fender benders, hit a deer, and finally didn't keep track of oil changes (there was no oil warning light, or at least it wasn't functioning) and the engine seized up because I was running it wit...
by bigred77
Fri Jan 06, 2017 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 262
Views: 16495

Re: Annual Vacation Budget

2 People... We set aside 5k per year specifically for travel but probably double that with actual travel expenses. We typically do a big 2/3 week international trip every summer. Usually do another smaller 3-4 day weekend domestic trip per year as well. 10k represents about 5.5% of our gross income.
by bigred77
Thu Jan 05, 2017 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Difference between HCOL and LCOL [High and Low Cost of Living]
Replies: 35
Views: 2989

Re: Difference between HCOL and LCOL

Daycare and Private School costs that get posted on here seem dramatically higher to me. I think there are some savings when traveling FROM a HCOL city. Airfare is much lower when flying out of an international airport then when you fly from a smaller or rural airport and have to change planes. Publ...
by bigred77
Wed Jan 04, 2017 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: spousal disagreement over how much house to buy
Replies: 99
Views: 6373

Re: spousal disagreement over how much house to buy

Good location, new construction, top school district, next to a park, PITI less than 25% of gross income and you have 20% to put down. What's the problem? Buy the house and enjoy it! Btw... is 23% of gross assuming a 15yr or 30yr mortgage. It wouldn't change my recommendation to buy it either way bu...
by bigred77
Wed Jan 04, 2017 2:10 pm
Forum: Investing - Theory, News & General
Topic: Whats your number to walk away?
Replies: 245
Views: 27149

Re: Whats your number to walk away?

I'm curious why the preference for taxable investments over IRA's? Because I don't want to withdraw from the IRAs until I'm at least 60 (although converting from Traditional to Roth is fine), and I don't want to spend down the taxable account to nothing, or to near-nothing, before I get to 60. Mayb...
by bigred77
Wed Jan 04, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: Do you model where you *should* be? And if so *how*?
Replies: 8
Views: 1065

Re: Do you model where you *should* be? And if so *how*?

I still have a very long ways to go so I focus on my savings percentage. I think that gives me a better indication of how I'm doing vs anything else I could look at. I also focus on yearly total debt balance reduction. If the debt balance goes up, I better know why and have a good reason for it. I a...
by bigred77
Wed Jan 04, 2017 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Investing/Portfolio questions (age 31)
Replies: 7
Views: 974

Re: Investing/Portfolio questions (age 31)

If I were you, I would elect to defer a percentage of my paycheck to the 403b, put it all in the Vanguard Target Retirement 2050 fund (same as your Roth) and then leave everything else constant (keep maxing your Roth like your doing). Maybe start with 10% of salary, or more if you wish, and go from ...
by bigred77
Wed Jan 04, 2017 1:22 pm
Forum: Investing - Theory, News & General
Topic: Whats your number to walk away?
Replies: 245
Views: 27149

Re: Whats your number to walk away?

Most will have a mix of cash, CDs, taxable, 401k/Rollover IRA, Roth IRA and add up the full value. Thanks. If that's the case, then I guess my answer goes something like this: For what I would expect to provide a basic, but reasonably comfortable, retirement : $2.5 million total portfolio, with at ...
by bigred77
Wed Jan 04, 2017 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with cash gifts?
Replies: 8
Views: 881

Re: What to do with cash gifts?

I absolutely would be maxing out the 457. Next I would try to find a solution for the self employed spouse to get as much money into tax advantaged accounts as possible (I would look into solo 401ks, SIMPLE IRAs, SEP IRAs, I'm less familiar with the self employed retirement options world). The rest ...
by bigred77
Wed Jan 04, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: You have 5-10 minutes to teach someone about personal finance
Replies: 54
Views: 3961

Re: You have 5-10 minutes to teach someone about personal finance

Bogleheads.org. 5 seconds +1. I have recommend this site to a number of my friends. I have recommended this site numerous times. I only got confirmation from 1 person that they actually came here and read anything. They seemed to be really appreciative and we still have conversations at social func...
by bigred77
Wed Jan 04, 2017 10:40 am
Forum: Investing - Theory, News & General
Topic: What inflation rate do you use for your planning?
Replies: 67
Views: 4098

Re: What inflation rate do you use for your planning?

Umm. Prudently forecasting assets into the future when you are too old to work much is very useful and responsible- even though we know we may be wrong. And. Any forecast of future asset value at least implicitly makes a forecast of inflation. I posted earlier about calculating future real asset su...
by bigred77
Wed Jan 04, 2017 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Thinking of upgrading primary residence, do you recommend?
Replies: 29
Views: 2083

Re: Thinking of upgrading primary residence, do you recommend?

OP is 43. The family has roughly: 850k in retirement savings. 30k in E-Fund 50k in college savings 150k in home equity that they could use as a down payment. They absolutely can afford to upgrade their home if it would make them happier. Their retirement saving is on track (more than on track). They...
by bigred77
Tue Jan 03, 2017 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Properties and Asset Allocation
Replies: 12
Views: 1308

Re: Rental Properties and Asset Allocation

I consider real estate a separate asset class. I think it falls somewhere between equities and bonds on the risk return spectrum. I'm about 10 years out from an early (semi?) retirement. My issue is that I invested in a property management company 20 years ago, and in the process I acquired a portfo...
by bigred77
Tue Jan 03, 2017 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Study on SWR rates for Early Retirement
Replies: 63
Views: 5905

Re: Study on SWR rates for Early Retirement

I will note that the original article uses a 100% equities portfolio for its calculations. The study looks at 100% 75% 50% 25% and 0% equities. However, what frequently goes entirely UNEXPLORED by these studies is what amount you end up with in the 90% of SUCCESSFUL outcomes. Indeed, in some not-in...
by bigred77
Tue Jan 03, 2017 12:53 pm
Forum: Investing - Theory, News & General
Topic: Whats your number to walk away?
Replies: 245
Views: 27149

Re: Whats your number to walk away?

I probably would need $6M to retire today in my early 30s. I am nowhere close to that number. With maybe $2M I might make a career change to something much lower stress / more enjoyable. I do wonder at what point financial security might affect my career ambition. I don't have a good handle on what ...
by bigred77
Tue Jan 03, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: Are Younger people funding 529 Plans?
Replies: 109
Views: 7327

Re: Are Younger people funding 529 Plans?

They are definitely not prevalent among people in their 20s/30s. Even among people in this age range who are making saving/investing a priority (that's not a large percentage) there are simply too many competing priorities for their dollars. I have a number of highly educated friends who are startin...
by bigred77
Thu Dec 29, 2016 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: Paying myself a salary for investment and tax management?
Replies: 71
Views: 4359

Re: Paying myself a salary for investment and tax management?

You missed the income tax coming out of the second calculation when distributed. They're aftertax 401k contributions. The biggest thing is that in order to get 50k+ into a solo 401k, you are limited to 18k in self deferral. The additional amounts are considered "profit sharing" and is lim...
by bigred77
Thu Dec 29, 2016 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Paying myself a salary for investment and tax management?
Replies: 71
Views: 4359

Re: Paying myself a salary for investment and tax management?

John, Let's say you pay yourself a $100k salary for doing the work that you would have CPAs do otherwise. Now, you have to pay FICA (about 12.4%) and Medicare (about 2.5%) taxes on that - that's close to $15k. Then, you contribute $54k to the retirement accounts - that you can save income taxes on....
by bigred77
Thu Dec 29, 2016 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Paying myself a salary for investment and tax management?
Replies: 71
Views: 4359

Re: Paying myself a salary for investment and tax management?

John, Let's say you pay yourself a $100k salary for doing the work that you would have CPAs do otherwise. Now, you have to pay FICA (about 12.4%) and Medicare (about 2.5%) taxes on that - that's close to $15k. Then, you contribute $54k to the retirement accounts - that you can save income taxes on....
by bigred77
Thu Dec 29, 2016 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Are there any benefits to achieving "great wealth"?
Replies: 106
Views: 8020

Re: Are there any benefits to achieving "great wealth"?

You get security (don't have to worry about food, shelter, or basic comforts) even if you don't have an income. You also get options (can afford the risk to make demands at your job, take a new job, or quit doing any job). You have the opportunity to call yourself a "man/woman of leisure" ...
by bigred77
Thu Dec 29, 2016 9:14 am
Forum: Investing - Help with Personal Investments
Topic: Paying myself a salary for investment and tax management?
Replies: 71
Views: 4359

Re: Paying myself a salary for investment and tax management?

Even if you maxed out a solo 401k you are talking about, at best, maybe 50 basis points of your portfolio being affected. It's not worth your time to worry about this. If I contributed $60,000 to a 401k + IRA each year, the savings over the long run would be meaningful. It would not be "meanin...
by bigred77
Thu Dec 29, 2016 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Paying myself a salary for investment and tax management?
Replies: 71
Views: 4359

Re: Paying myself a salary for investment and tax management?

Even if you maxed out a solo 401k you are talking about, at best, maybe 50 basis points of your portfolio being affected.

It's not worth your time to worry about this.
by bigred77
Wed Dec 28, 2016 11:24 pm
Forum: Investing - Theory, News & General
Topic: Expected returns 2017-2047
Replies: 30
Views: 2886

Re: Expected returns 2017-2047

Bad: -1% real Ok: 0% real Good: 1% real Spectacular: 2% real I am just trying to keep up with inflation in the most tax efficient manner possible. You are aware that your prediction for "spectacular" returns is worse than 95% of observed 30 year periods? That's... pessimistic to say the l...
by bigred77
Wed Dec 28, 2016 3:47 pm
Forum: Personal Consumer Issues
Topic: At what age, income, and NW would you buy a $50k car?
Replies: 174
Views: 10811

Re: At what age, income, and NW would you buy a $50k car?

OP here. Annual expenses for family of 3 are ~$100k. The rest is taxes and savings. After looking at prices, a 2-3 year old off-lease CPO Lexus for $35k may be a better value than a new one at $50k. 2-3 yr old CPO cars w/ about 30k miles on them are the sweet spot for entry level luxury cars (BMW, ...
by bigred77
Wed Dec 28, 2016 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Save or pay down the mortgage?
Replies: 11
Views: 912

Re: Save or pay down the mortgage?

Wife and I go back and forth whether we want to buy a new house or stay. I want to put an extra $300 towards the mortgage now. She wants to put it into savings. My thinking is if we don't end up moving, I accelerate the mortgage payments. If we do move, we would have more equity towards the house a...
by bigred77
Wed Dec 28, 2016 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Monthly Expenses in line or too much
Replies: 81
Views: 6905

Re: Monthly Expenses in line or too much

People are just going to subconsciously compare their total spending to the number you posted and reply accordingly. If they spend more, they'll tell you it seems right in line. If they spend less, they'll tell you it's too much and you can/should cut the fat. I say pick a reasonable savings rate ta...
by bigred77
Wed Dec 28, 2016 9:32 am
Forum: Personal Finance (Not Investing)
Topic: large purchase [engagement ring]
Replies: 72
Views: 5086

Re: large purchase [engagement ring]

Just curious how old the OP is. 200k is not an entry level salary but it sounds like maybe you are just entering the work force? Are you starting from 0 financially? Do you have student loans or anything already. 14k for an engagement ring is not a big deal at 200k in salary but I might not advise t...
by bigred77
Tue Dec 27, 2016 1:54 pm
Forum: Investing - Theory, News & General
Topic: Remember what it was like before the recession?
Replies: 81
Views: 8125

Re: Remember what it was like before the recession?

There is always some economic threat. There is always bad news. There are always bear market prognosticators. There is always some reason why "this time is different". There is always a "new normal". All markets (financial, labor, real estate, etc.) continue to ebb and flow. Up a...
by bigred77
Tue Dec 27, 2016 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: I'll never save a 20% down payment. Rent for life?
Replies: 138
Views: 12647

Re: I'll never save a 20% down payment. Rent for life?

My post shows how the numbers would work. Assuming the $59K is their income, the OP can buy a home with an FHA loan for 30 years with as little as 3.5% down and pay no more per month than they'll be paying for rent for a comparable home. They even have more income than necessary to qualify for the ...
by bigred77
Tue Dec 27, 2016 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: I'll never save a 20% down payment. Rent for life?
Replies: 138
Views: 12647

Re: I'll never save a 20% down payment. Rent for life?

OP, I've you plan to live in that area for the next decade plus, I would buy with a FHA mortgage (5% or so down, yes you will have PMI for a while). That's what those programs are there for. It seems drastically cheaper to buy than rent in your city (seriously, if you can buy houses for 130k and re...
by bigred77
Tue Dec 27, 2016 11:14 am
Forum: Personal Finance (Not Investing)
Topic: I'll never save a 20% down payment. Rent for life?
Replies: 138
Views: 12647

Re: I'll never save a 20% down payment. Rent for life?

OP, I've you plan to live in that area for the next decade plus, I would buy with a FHA mortgage (5% or so down, yes you will have PMI for a while). That's what those programs are there for. It seems drastically cheaper to buy than rent in your city (seriously, if you can buy houses for 130k and ren...
by bigred77
Thu Dec 22, 2016 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Will ETFs make mutual index funds obsolete?
Replies: 28
Views: 1905

Re: Will ETFs make mutual index funds obsolete?

ETFs are the fastest growing asset class of all time. Will ETFs be the future of investing, and will they make index mutual funds obsolete? Or will the buy-and-hold investor always prefer funds? ETFs are not an asset class!!! (Sorry, I've seen this statement before and it makes me irrationally angr...
by bigred77
Thu Dec 22, 2016 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Pre-pay mortgage vs Taxable?
Replies: 54
Views: 3492

Re: Pre-pay mortgage vs Taxable?

If the balance is 70k I would make just paying it off a priority to increase cashflow, make my life simpler, and get a guaranteed 4.375% If you owed 200k+, my answer might be different. I also echo Klangfool's comment that if you are not also doing backdoor Roth IRA's then that should come first (pr...
by bigred77
Thu Dec 22, 2016 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Financing an MBA - Taking Loans vs Withdrawing from Retirement Accounts
Replies: 8
Views: 708

Re: Financing an MBA - Taking Loans vs Withdrawing from Retirement Accounts

OP, congrats on getting in to a great school. In your shoes, I would treat tax advantaged space as sacred. You will most likely be making a high income over the course of your career and you are going to want all the tax advantaged space you can get. Here's what I would do if I were you: Play with t...

Go to advanced search