Search found 94 matches

by Nick341981
Wed Dec 14, 2016 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: What happens to those who don't invest?
Replies: 70
Views: 6218

Re: What happens to those who don't invest?

Note that a house should be considered a retirement asset, so anyone paying down a mortgage is technically saving (the principal repayments). Even with no liquid retirement assets, a 300-800k property provides rent-free living and can be sold. Except for the fact that in a lot of states(Texas is a ...
by Nick341981
Wed Dec 14, 2016 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: What happens to those who don't invest?
Replies: 70
Views: 6218

Re: What happens to those who don't invest?

Note that a house should be considered a retirement asset, so anyone paying down a mortgage is technically saving (the principal repayments). Even with no liquid retirement assets, a 300-800k property provides rent-free living and can be sold. Except for the fact that in a lot of states(Texas is a ...
by Nick341981
Wed Dec 14, 2016 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: What happens to those who don't invest?
Replies: 70
Views: 6218

Re: What happens to those who don't invest?

The same thing that always happens: These folks will inherit money from their parents, they will work until age 67, and they will collect SS. They are living the dream and will be fine. I doubt it. Most baby boomers will take out reverse mortgages and leave nothing but a pile of bills to their kids
by Nick341981
Tue Dec 13, 2016 11:17 pm
Forum: Personal Investments
Topic: Pay down mortgage or index invest?
Replies: 12
Views: 2225

Re: Pay down mortgage or index invest?

It all depends on what rate your financed at but let's just say for example you have a fixed rate 30 year mortgage at 3.25% and you are in the 3rd year. Feds are going to raise interest rates this month and more than likely next year too. If the government does as much infrastructure improvement as ...
by Nick341981
Tue Nov 22, 2016 3:06 pm
Forum: Personal Consumer Issues
Topic: Karate/Taekwondo for an 8 year old?
Replies: 35
Views: 4589

Re: Karate/Taekwondo for an 8 year old?

Aside from the benefits mentioned above, one thing I've found useful is learning how to fall down properly (judo classes in college). That skill has saved my butt (actually, my head) several times through the years when I slipped on ice or gravel. +1 - Recommend judo, you will learn discipline, but...
by Nick341981
Thu Nov 17, 2016 10:13 am
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 35193

Re: How to retire early (in your 30s or 40s)?

If you started taking out 55k 17 years ago and were increasing by 3% for inflation you would be up to 91k. The rest of the country is managing to get by on 55k but you need almost 2x that? I would be more worried about staying closer to the American mean and making my money last, especially for an ...
by Nick341981
Wed Nov 16, 2016 10:39 pm
Forum: Personal Investments
Topic: Portfolio return: very low. Any suggestions
Replies: 36
Views: 6095

Re: Portfolio return: very low. Any suggestions

Most here will strongly disagree but for me personally I have just kept it extremely simple and followed the advice of Warren Buffett who seems to think that a low fee S&P 500 index offers everything you need including diversity and there is nothing to worry about as far as lagging the market. O...
by Nick341981
Wed Nov 16, 2016 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 35193

Re: How to retire early (in your 30s or 40s)?

I think inflation and worrying about it is a little over valued. In 1999 the average family took home 57k a year, in 2013 the average family took home 52k. This is over 17 years and even though average income has declined 52k is still pretty good. https://en.m.wikipedia.org/wiki/Household_income_in...
by Nick341981
Wed Nov 16, 2016 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 35193

Re: How to retire early (in your 30s or 40s)?

I think inflation and worrying about it is a little over valued. In 1999 the average family took home 57k a year, in 2013 the average family took home 52k. This is over 17 years and even though average income has declined 52k is still pretty good. https://en.m.wikipedia.org/wiki/Household_income_in...
by Nick341981
Wed Nov 16, 2016 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 35193

Re: How to retire early (in your 30s or 40s)?

These were the numbers I came up with for a hypothetical person. Let's call him Bob. Bob has just finished college in finance or engineering, and is starting to work. 1. Bob is 22. 2. Bob makes 70k per year 3. Bob's salary grows 4% a year such that by the time he is 40, he is making 141k per year. ...
by Nick341981
Fri Nov 11, 2016 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 35193

Re: How to retire early (in your 30s or 40s)?

1. Be a doctor, lawyer, engineer, consultant, financial analyst, accountant. White collar essentially. Hmmmm, do you live in the north? I live in south Texas on the gulf coast. I have an associates degree in process technology that cost me about $6k. I work as a process operator for a major chemica...
by Nick341981
Fri Nov 11, 2016 9:43 am
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 35193

Re: How to retire early (in your 30s or 40s)?

Its amazing how much this topic has changed in a week. Who knows how to retire this early now. Guess we will have to see how healthcare changes and go from there. It might get way harder if not impossible soon. I'm hoping for the best though. Yeah when medicare gets gutted for future retires we are...
by Nick341981
Fri Nov 11, 2016 8:05 am
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 35193

Re: How to retire early (in your 30s or 40s)?

Its amazing how much this topic has changed in a week. Who knows how to retire this early now. Guess we will have to see how healthcare changes and go from there. It might get way harder if not impossible soon. I'm hoping for the best though.
by Nick341981
Fri Nov 04, 2016 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 35193

Re: How to retire early (in your 30s or 40s)?

Observation: Isn't the money/happiness threshold $80K income (or something like that). Doesn't that mean you need a few millions in the bank if you're going to live off your investments? You should probably subtract taxes, health care, mortgage from that 80k and for most it would come out to around...
by Nick341981
Fri Nov 04, 2016 2:03 am
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 35193

Re: How to retire early (in your 30s or 40s)?

It just depends on if you have access to a mega back door Roth or are self employed such as a physician. In these two situations that I can think of off the top of my head you could easily be putting back around 50k a year in tax deferred accounts or more. 50k a year over 10 years at a hypothetical...
by Nick341981
Fri Nov 04, 2016 1:29 am
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 35193

Re: How to retire early (in your 30s or 40s)?

It just depends on if you have access to a mega back door Roth or are self employed such as a physician. In these two situations that I can think of off the top of my head you could easily be putting back around 50k a year in tax deferred accounts or more. 50k a year over 10 years at a hypothetical ...
by Nick341981
Thu Nov 03, 2016 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: How to retire early (in your 30s or 40s)?
Replies: 173
Views: 35193

Re: How to retire early (in your 30s or 40s)?

Max out your 401k, then max out your RothIRA, if you're lucky enough to have a mega back door Roth then max that out too, after that put into a taxable account. I would say have 30x what you live on a year and plan to withdraw 3% a year. So for example if your living expenses are 30k a year you will...
by Nick341981
Mon Oct 31, 2016 10:37 pm
Forum: Personal Finance (Not Investing)
Topic: Health Insurance rates went up
Replies: 155
Views: 23767

Re: Health Insurance rates went up

One theory is that the market will eventually stabilize in a bifurcated state, essentially becoming two distinct markets inside one system. According to this theory, the individual marketplace will consist of two very different types of insurers and two very different types of clients. Low income f...
by Nick341981
Sun Oct 30, 2016 10:41 am
Forum: Personal Finance (Not Investing)
Topic: 2017 ACA plan previews
Replies: 172
Views: 22106

Re: 2017 ACA plan previews

A silver plan can be had for as little as 30 a month with $2500 deductible, for a individual . Not to mention the cost sharing subsidy. Unless you are unhealthy and have to take a lot of medication it's a great deal. +1 As a sidenote, our local family includes doctors. None have carried insurance, ...
by Nick341981
Sun Oct 30, 2016 9:08 am
Forum: Personal Finance (Not Investing)
Topic: 2017 ACA plan previews
Replies: 172
Views: 22106

Re: 2017 ACA plan previews

Change is definitely coming. Overall the ACA is good thing for early retirees who have a paid off house and low living expenses. I would hate to see it come to this and I really hope I'm wrong but I can see means testing being thrown out as a solution. If it comes to that early retirement will be a...
by Nick341981
Sun Oct 30, 2016 8:08 am
Forum: Personal Finance (Not Investing)
Topic: 2017 ACA plan previews
Replies: 172
Views: 22106

Re: 2017 ACA plan previews

Change is definitely coming. Overall the ACA is good thing for early retirees who have a paid off house and low living expenses. I would hate to see it come to this and I really hope I'm wrong but I can see means testing being thrown out as a solution. If it comes to that early retirement will be a ...
by Nick341981
Sat Oct 29, 2016 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: 2017 ACA plan previews
Replies: 172
Views: 22106

Re: 2017 ACA plan previews

Fat people aren't the problem. The problem is we haven't defined how much an 85 year old life is worth. Medical costs get astronomical as you age, and the system is set up to do whatever it takes to help someone without any thought whatsoever as to the amount of resources it costs to do it. Should ...
by Nick341981
Sat Oct 29, 2016 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: 2017 ACA plan previews
Replies: 172
Views: 22106

Re: 2017 ACA plan previews

Like I said, there is very little difference in using tobacco and getting charged extra for making that choice and having a high sugar diet for example which has been shown to lead to all kinds of health problems including cancer. Both are poor health choices and both should be charged accordingly....
by Nick341981
Sat Oct 29, 2016 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: 2017 ACA plan previews
Replies: 172
Views: 22106

Re: 2017 ACA plan previews

People seem to conclude that most of the costs are driven by the "optionally unhealthy" - that's the term I'll use, imperfect as it is, because I can't think of anything else. There are loads of people like me. Loads. If I had to guess, the optionally unhealthy don't cost as much as peopl...
by Nick341981
Sat Oct 29, 2016 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: 2017 ACA plan previews
Replies: 172
Views: 22106

Re: 2017 ACA plan previews

Certainly just "anecdotal", but some of the folks who complain the most about health and health insurance costs are those who do not take care of themselves very well at all. Bad diets, overweight/obese, smoking, sedentary -- and who have health problems directly related to or caused by l...
by Nick341981
Sat Oct 29, 2016 11:43 am
Forum: Personal Finance (Not Investing)
Topic: 2017 ACA plan previews
Replies: 172
Views: 22106

Re: 2017 ACA plan previews

I think one major cause of tension is that healthy people resent paying the same as less healthy people. I used to live in a town with a large senior citizen population, and they always complained about paying taxes to support schools. They didn't have any school age children, but they were paying ...
by Nick341981
Fri Oct 28, 2016 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: 2017 ACA plan previews
Replies: 172
Views: 22106

Re: 2017 ACA plan previews

"For us, 20k is achieved by doing Roth conversions so we can precisely control how much to tweak income for IRS purposes."

I've looked around but could someone please explain this part to me more specifically or pm me? Not trying to take over the topic.
by Nick341981
Fri Oct 28, 2016 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: 2017 ACA plan previews
Replies: 172
Views: 22106

Re: 2017 ACA plan previews

For most the solution is pretty simple, minimalism. Pay off your house, live in a state with low property taxes, Colorado for example and learn to get by on around 26k a year.. Similar conclusion but 26k/year is too high. In our case, using 2017 Preview function for a MFJ, if we report anything abo...
by Nick341981
Fri Oct 28, 2016 4:01 pm
Forum: Personal Investments
Topic: Withdraw tax strategy question
Replies: 5
Views: 915

Re: Withdraw tax strategy question

Ok, I think I got it, if I bought a share for 10 and it grows to 15, then when I go to sell it after I'm retired and not working I will only be taxed on the 5 dollar part and that is the part that will be counted at income for the year I'm selling? For a taxable account. 401k is all taxed. Sorry, I'...
by Nick341981
Fri Oct 28, 2016 9:29 am
Forum: Personal Investments
Topic: Withdraw tax strategy question
Replies: 5
Views: 915

Withdraw tax strategy question

I was wondering how it works when you retire early and are making withdraws from an after tax vanguard account. Example if I put 50k into the account with after tax money and it doubled to 100k, I would only pay long term capital gains tax on the 50k that is interest and dividends. My question is co...
by Nick341981
Fri Oct 28, 2016 6:50 am
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 502
Views: 226206

Re: The Mega Backdoor Roth IRA

retiredjg thanks for the very helpful reply. I am not so much worried about passing money on to my heirs because my wife and I are DINK's so that part doesn't concern us much. I didn't consider the RMD when we get to 70 and that could definitely bump us up tax brackets and hurt significantly. I woul...
by Nick341981
Fri Oct 28, 2016 6:18 am
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 502
Views: 226206

Re: The Mega Backdoor Roth IRA

Would these after tax contributions be protected the same way pretax contributions are? Examples include if you file bankruptcy your 401k is generally protected. Another example is when the government means test for government assistance your 401k is exempted from the means test. I can make after ta...
by Nick341981
Thu Oct 27, 2016 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: 2017 ACA plan previews
Replies: 172
Views: 22106

Re: 2017 ACA plan previews

If you're a small business owner or are successfully self employed you're definitely getting a raw deal right now on the ACA imho. For most the solution is pretty simple, minimalism. Pay off your house, live in a state with low property taxes, Colorado for example and learn to get by on around 26k a...
by Nick341981
Sat Feb 13, 2016 11:18 pm
Forum: Investing - Theory, News & General
Topic: S&P500 has basically gone nowhere for 15 years
Replies: 59
Views: 8845

Re: S&P500 has basically gone nowhere for 15 years

So after inflation and taxes, a return between 0-1%. With the YTD drop, using the S&P 500 and not the total market, assuming the highest tax rate, that basically wipes out all the return.[/quote] Yikes, when you take into account the volitality of the tech bubble crash and the housing bubble tha...
by Nick341981
Sat Feb 13, 2016 11:12 pm
Forum: Investing - Theory, News & General
Topic: S&P500 has basically gone nowhere for 15 years
Replies: 59
Views: 8845

Re: S&P500 has basically gone nowhere for 15 years

It's showing that, including dividends, 2000 through 2015 inclusive: --1.83% real (annualized) when corrected for inflation, --4.02% uncorrected for inflation, --over the whole period $1.00 grew to $1.88 which is far from "going nowhere." We can crosscheck that last one easily at Mornings...
by Nick341981
Sat Feb 13, 2016 8:16 pm
Forum: Investing - Theory, News & General
Topic: S&P500 has basically gone nowhere for 15 years
Replies: 59
Views: 8845

Re: S&P500 has basically gone nowhere for 15 years

Thanks for the great replies. I was just trying to get some perspective on the situation from some more informed people. I looked on Morningstar and from 2000 to 1/31/16 10k grew to about 17k. Dividends during this time period were at historic lows also. When you factor in inflation it's hard to no...
by Nick341981
Sat Feb 13, 2016 8:13 pm
Forum: Investing - Theory, News & General
Topic: S&P500 has basically gone nowhere for 15 years
Replies: 59
Views: 8845

Re: S&P500 has basically gone nowhere for 15 years

Yeah, please exclude his comments on social security. I was more regarding the first paragraph when creating this topic.
by Nick341981
Sat Feb 13, 2016 6:59 pm
Forum: Investing - Theory, News & General
Topic: S&P500 has basically gone nowhere for 15 years
Replies: 59
Views: 8845

Re: S&P500 has basically gone nowhere for 15 years

Thanks for the great replies. I was just trying to get some perspective on the situation from some more informed people. I looked on Morningstar and from 2000 to 1/31/16 10k grew to about 17k. Dividends during this time period were at historic lows also. When you factor in inflation it's hard to not...
by Nick341981
Sat Feb 13, 2016 4:24 pm
Forum: Investing - Theory, News & General
Topic: S&P500 has basically gone nowhere for 15 years
Replies: 59
Views: 8845

S&P500 has basically gone nowhere for 15 years

https://www.facebook.com/RBReich/posts/ ... 74688957:0

I'm just curious to get bogleheads feedback on the current market we have been in. Do you feel that this is something that will persist such as Japan?
by Nick341981
Sat Sep 19, 2015 3:35 pm
Forum: Personal Investments
Topic: Question about mortgage and investing
Replies: 18
Views: 1906

Re: Question about mortgage and investing

I'm not against holding debt that is financed at a rate that just slightly above inflation. Mortgage rates in the 80's were around 12-15%. I'm an optimist and think that even though the market is crappy right now, over a 25 year invest time frame odds are pretty high that I would make about a 7% spr...
by Nick341981
Sat Sep 19, 2015 3:02 pm
Forum: Personal Investments
Topic: Question about mortgage and investing
Replies: 18
Views: 1906

Re: Question about mortgage and investing

Will do, as far as the rest of the info, I looked it up and I payed 6000 interest and 7500 property tax, and itemized them from my taxes. I made 125k last year, and filled as single, no kids. Also, in the taxable account about 130k would be money that has already been taxed, only about 70k if I'm re...
by Nick341981
Sat Sep 19, 2015 2:42 pm
Forum: Personal Investments
Topic: Question about mortgage and investing
Replies: 18
Views: 1906

Re: Question about mortgage and investing

Denevo, thanks, that pretty much answers the question for me.

Gill, I don't have my tax forms on me right now unfortunately so I am making close approximations. I know for sure the fixed rate is 3.25 and I itemized interest and property taxes
by Nick341981
Sat Sep 19, 2015 2:31 pm
Forum: Personal Investments
Topic: Question about mortgage and investing
Replies: 18
Views: 1906

Re: Question about mortgage and investing

25% tax bracket, yes I itemize mostly because of the taxes and insurance on the new mortgage. 401k/Ira maxed, money is in a taxable account which by the time I ever take it out most would be taxed as long term capital gains. As far as future rate of return goes, I'm assuming the entire global econom...
by Nick341981
Sat Sep 19, 2015 1:54 pm
Forum: Personal Investments
Topic: Question about mortgage and investing
Replies: 18
Views: 1906

Question about mortgage and investing

3 years ago I locked in a 30yr mortgage at 3.2% interest. I will have enough in my vanguard account to pay off the mortgage in about 5 years, my question is with this rate being so low and the historical rate of return being what it is with stocks(10%) would it be better to hold on to the mortgage a...