Search found 11004 matches

by KlangFool
Sat Jan 12, 2019 5:05 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Retirement Fund or 3-Fund Portfolio
Replies: 9
Views: 978

Re: Target Date Retirement Fund or 3-Fund Portfolio

I found I could reduce ER greatly by using 3 etfs in my HSA, rather than TDs or 3 mutual funds. the no-transaction fee funds my account offers didn't impress me, but the no-fee etfs are good. i got my ER down by 60%, to around .08%. I'm a little anal about it, but if I can reduce ER, its my money I...
by KlangFool
Sat Jan 12, 2019 11:10 am
Forum: Personal Consumer Issues
Topic: Duffel Bag vs Wheeled Stand Up traveling
Replies: 78
Views: 3703

Re: Duffel Bag vs Wheeled Stand Up traveling

OP, For check-in luggage, if your goal is to pack a lot of stuff that is light but take up a lot of spaces, duffel bag works very well. For example, clothes. And, once you packed on a lot of clothes in the duffel bag, you can mix in some fragile stuff by wrapping the clothes around that stuff. I mov...
by KlangFool
Fri Jan 11, 2019 9:09 pm
Forum: Investing - Theory, News & General
Topic: Salary, Portfolio size, and Asset Allocation
Replies: 33
Views: 2741

Re: Salary, Portfolio size, and Asset Allocation

With this form of thinking, one could make the argument that if my salary is cut (AND hence my savings rate decreases) that I have two options: cut expenses, or shift some of the stocks to bonds. Otherwise, I could be exposed to a larger level of risk than I want without noticing at all. 305pelusa,...
by KlangFool
Fri Jan 11, 2019 8:31 pm
Forum: Investing - Theory, News & General
Topic: Salary, Portfolio size, and Asset Allocation
Replies: 33
Views: 2741

Re: Salary, Portfolio size, and Asset Allocation

OP, It is very simple. You could not get the right answer because you have been using the wrong metric. Aka measurement. A) It has nothing to do with income at all. B) It has to do with the expense. Let's assume that your goal is Financial Independent. And, your FI number is 30 times your current an...
by KlangFool
Fri Jan 11, 2019 9:14 am
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6067

Re: Building Wealth Through Home Equity--Myth or Reality?

This is not surprising at all because most people are not very good at managing their finances. Buying a house forces them to put money into that asset, which will usually appreciate (the number I recall seeing is more like 2% per year on average). Most people who are renting are not putting the mo...
by KlangFool
Thu Jan 10, 2019 11:13 pm
Forum: Investing - Theory, News & General
Topic: Salary, Portfolio size, and Asset Allocation
Replies: 33
Views: 2741

Re: Salary, Portfolio size, and Asset Allocation

Nope. If one makes $100K and the other $200K, but they both save 50% of their income, then the person with the larger "bond" still needs the same amount of growth as the $100K individual, in order to meet their retirement spending needs. If they both save $50K then the $200K salary allows such a hi...
by KlangFool
Thu Jan 10, 2019 9:04 pm
Forum: Investing - Theory, News & General
Topic: Salary, Portfolio size, and Asset Allocation
Replies: 33
Views: 2741

Re: Salary, Portfolio size, and Asset Allocation

OP,

You may enjoy the following thread.

viewtopic.php?t=5934

KlangFool
by KlangFool
Thu Jan 10, 2019 5:26 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6067

Re: Building Wealth Through Home Equity--Myth or Reality?

That may be true but I'm about to do the opposite: 1) buy 350k house on 15yr mortgage at $2400/mo payment. I do not want to do a 30-year mortgage. 2) rent a house valued at 425k for $1800/mo, and save $600/mo extra into a MM account in this case I am favoring option 2. I will be renting a house I c...
by KlangFool
Thu Jan 10, 2019 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4425

Re: Would your FIRE plan work had your journey started 1965?

HomerJ, I am aiming for FI. So, it is all based on my current annual expense. My current annual expense is 60K. KlangFool I hope it's okay to ask this, because I do really get a lot out of your posts, here and elsewhere. Maybe I missed something though. Why are you using current annual expense? I f...
by KlangFool
Thu Jan 10, 2019 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6067

Re: Building Wealth Through Home Equity--Myth or Reality?

The correct financial comparison is renting or buying an equivalent dwelling. Of course each is unique, so the real comparison is renting or buying the very same space. PJW, Okay. So, what do you call folks that never intended to rent a 3,400 square feet single family home but use that rent to just...
by KlangFool
Thu Jan 10, 2019 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Under $100k Avg Annual Income Millionaires and How You Did It?
Replies: 117
Views: 13869

Re: Under $100k Avg Annual Income Millionaires and How You Did It?

Two kids not yet in kindergarten. Paying >3k/month for the both of them in daycare (we ended up at the most expensive one we looked at for convenience, but the others were pretty similarly priced. Just about every infant room in a reasonable radius/commute is at least $2k). Even with summers and af...
by KlangFool
Thu Jan 10, 2019 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Under $100k Avg Annual Income Millionaires and How You Did It?
Replies: 117
Views: 13869

Re: Under $100k Avg Annual Income Millionaires and How You Did It?

<<Full-time daycare anywhere within 10 miles of me is more than $1k/month.>> 3) For folks that save first and spend later, they decide what to save and spend the rest. If they do not have enough money to pay $1K/month, they do not pay 1K per month. In some areas, there is just no better option than...
by KlangFool
Thu Jan 10, 2019 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6067

Re: Building Wealth Through Home Equity--Myth or Reality?

This is not surprising at all because most people are not very good at managing their finances. Buying a house forces them to put money into that asset, which will usually appreciate (the number I recall seeing is more like 2% per year on average). Most people who are renting are not putting the mo...
by KlangFool
Thu Jan 10, 2019 2:34 pm
Forum: Personal Consumer Issues
Topic: Engineering school
Replies: 83
Views: 7118

Re: Engineering school

I worked part-time at the university computing center for 5 years while I was doing my degree. When I graduated, I started working as a person with 5 years of relevant working experience. Nobody even cares to look at my degree and/or my CGPA since I am not a fresh graduate. So, you could follow a c...
by KlangFool
Thu Jan 10, 2019 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6067

Re: Building Wealth Through Home Equity--Myth or Reality?

This is not surprising at all because most people are not very good at managing their finances. Buying a house forces them to put money into that asset, which will usually appreciate (the number I recall seeing is more like 2% per year on average). Most people who are renting are not putting the mo...
by KlangFool
Thu Jan 10, 2019 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6067

Re: Building Wealth Through Home Equity--Myth or Reality?

The following article appeared in a recent home building industry publication discussing the benefits of home ownership for wealth accumulation. The premise seems to be that most Americans acquire the majority of their wealth through home ownership. JiggyWillis, 1) Survivorship bias https://en.wiki...
by KlangFool
Thu Jan 10, 2019 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 79
Views: 7462

Re: Pay off a 30 year mortgage in 15 years? The cost of flexibility

According to Bankrate.com, the 30 year mortgage interest rate as of 1/9/2019 was 5.01%. On this same day, 15 year mortgage rates were 4.07%. willthrill81, The answer is highly dependent on the specific circumstances. In my case, it was A) 30 years at 3.49% B) 15 years at 3.00% It was close to a no-...
by KlangFool
Thu Jan 10, 2019 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Under $100k Avg Annual Income Millionaires and How You Did It?
Replies: 117
Views: 13869

Re: Under $100k Avg Annual Income Millionaires and How You Did It?

My annual expense is 60K with 2 kids. I am in the Northeast. So, it is a lie even with 1K per kid per month. Many of my peers have a 600K house. So, it is obvious that they cannot afford 2K per kid per month too. Full-time daycare anywhere within 10 miles of me is more than $1k/month. And these are...
by KlangFool
Thu Jan 10, 2019 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Under $100k Avg Annual Income Millionaires and How You Did It?
Replies: 117
Views: 13869

Re: Under $100k Avg Annual Income Millionaires and How You Did It?

This thread is an inspirational one. It's been a good read. I'd like to hear from the parents here. Average cost of raising a kid in the US is $2k/month. With daycare in a high COLA area, earning less than $100k and saving sufficiently to eventually net over a millionaire has got to be a struggle. ...
by KlangFool
Thu Jan 10, 2019 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Under $100k Avg Annual Income Millionaires and How You Did It?
Replies: 117
Views: 13869

Re: Under $100k Avg Annual Income Millionaires and How You Did It?

I'd like to hear from the parents here. Average cost of raising a kid in the US is $2k/month. With daycare in a high COLA area, earning less than $100k and saving sufficiently to eventually net over a millionaire has got to be a struggle. yeahman, This is obviously a lie. US median household income...
by KlangFool
Wed Jan 09, 2019 11:41 pm
Forum: Personal Finance (Not Investing)
Topic: Under $100k Avg Annual Income Millionaires and How You Did It?
Replies: 117
Views: 13869

Re: Under $100k Avg Annual Income Millionaires and How You Did It?

I'd like to hear from the parents here. Average cost of raising a kid in the US is $2k/month. With daycare in a high COLA area, earning less than $100k and saving sufficiently to eventually net over a millionaire has got to be a struggle. yeahman, This is obviously a lie. US median household income...
by KlangFool
Wed Jan 09, 2019 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Is buying a $700K first home crazy?
Replies: 70
Views: 7269

Re: Is buying a $700K first home crazy?

TropikThunder wrote:
Wed Jan 09, 2019 9:33 pm
KlangFool wrote:
Wed Jan 09, 2019 12:16 pm
I do not see what do you get out of buying a house. You could spend the money elsewhere with a lot more fun
That's not for you to say.
TropikThunder,

I am entitled to my own opinion. It is up to OP to decide whether it is worthwhile.

KlangFool
by KlangFool
Wed Jan 09, 2019 6:06 pm
Forum: Investing - Theory, News & General
Topic: Fell in Love with Fidelity
Replies: 60
Views: 6184

Re: Fell in Love with Fidelity

international001, <<If you have a whole portfolio Taxable + tax-sheltered.. what difference does it make if you have one fund for stocks or 20. You can just rebalance on the tax-sheltered side>> 1) It is easier to tax loss harvest with fewer stock funds. 2) It is easier to track and manage with few...
by KlangFool
Wed Jan 09, 2019 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4425

Re: Would your FIRE plan work had your journey started 1965?

That is not a problem for me. I do "Pay Yourself First". I auto deduct from my paycheck for the savings. Then, I spend the rest. I could not spend the money that I do not have. In fact, I do not budget at all. You also make a lot of money. Let's not ignore that variable. My wife and I saved half ou...
by KlangFool
Wed Jan 09, 2019 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4425

Re: Would your FIRE plan work had your journey started 1965?

That is not a problem for me. I do "Pay Yourself First". I auto deduct from my paycheck for the savings. Then, I spend the rest. I could not spend the money that I do not have. In fact, I do not budget at all. You also make a lot of money. Let's not ignore that variable. My wife and I saved half ou...
by KlangFool
Wed Jan 09, 2019 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Is buying a $700K first home crazy?
Replies: 70
Views: 7269

Re: Is buying a $700K first home crazy?

More responses below (I removed some of the old posts for clarity). Kedar, 1) What is your annual savings including retirement before buying the house? Right now, $129K. 2) Your annual expense after buying the house is 84K. So, how could you cover your annual expense and pay the mortgage with one i...
by KlangFool
Wed Jan 09, 2019 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Is buying a $700K first home crazy?
Replies: 70
Views: 7269

Re: Is buying a $700K first home crazy?

Thanks, Klang. Responses below. OP, 1) What is your annual savings before buying the house? $84K, not including retirement (15% of gross income). 2) What is your annual savings after buying the house? $50K, again not counting retirement. 3) What is your annual expense before buying the house? $55K ...
by KlangFool
Wed Jan 09, 2019 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Is buying a $700K first home crazy?
Replies: 70
Views: 7269

Re: Is buying a $700K first home crazy?

OP, 1) What is your annual savings before buying the house? 2) What is your annual savings after buying the house? 3) What is your annual expense before buying the house? 4) What is your annual expense after buying the house? 5) Is this a recourse loan or non-recourse loan? Aka, if your house is und...
by KlangFool
Wed Jan 09, 2019 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4425

Re: Would your FIRE plan work had your journey started 1965?

OP, I save 1 year of expense every year. My AA range from 70/30 to 60/40. This FIRE plan works under any stock market condition. KlangFool How is it possible to save 1 yr of expense every yr? Are you projecting lower or equal expenses in the future? Example: - gross pay: $100K, - taxes: $30K, - sav...
by KlangFool
Wed Jan 09, 2019 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Are we at "Peak FI"?
Replies: 93
Views: 9866

Re: Are we at "Peak FI"?

OP, 1) No, we are not at "Peak FI". 2) But, coming from a culture/country with above 30+% gross saving rate A) Many of my family members are millionaires. They are all over the world B) My older brother and older sister FIRE at 49 years old. C) Many of my family members are semi-retired. D) Most of...
by KlangFool
Wed Jan 09, 2019 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Are we at "Peak FI"?
Replies: 93
Views: 9866

Re: Are we at "Peak FI"?

OP, 1) No, we are not at "Peak FI". 2) But, coming from a culture/country with above 30+% gross saving rate A) Many of my family members are millionaires. They are all over the world B) My older brother and older sister FIRE at 49 years old. C) Many of my family members are semi-retired. D) Most of ...
by KlangFool
Wed Jan 09, 2019 9:46 am
Forum: Investing - Theory, News & General
Topic: Ray Dalio’s latest fearmongering round
Replies: 101
Views: 11494

Re: Ray Dalio’s latest fearmongering round

Gold is a very poor hedge. It is taxed as a collectible and the trading costs are obscene. If we did get to where money was becoming worthless good luck on trying to keep yourself fed with shavings from your Krugerrands. Arable land, a seed store, and a barn full of milkable animals would probably ...
by KlangFool
Wed Jan 09, 2019 8:31 am
Forum: Investing - Theory, News & General
Topic: Fell in Love with Fidelity
Replies: 60
Views: 6184

Re: Fell in Love with Fidelity

bck63, <<My AA goal is 50/50, if stocks drop by 50 percent I invest 100% new money in stocks, for as long as it takes to rebalance. >> Essentially, you do not actively rebalance. The AA could be 100/0 or 0/100 now, you would do nothing. <<Let me ask -- how do you balance taxable accounts? Any help ...
by KlangFool
Wed Jan 09, 2019 12:54 am
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4425

Re: Would your FIRE plan work had your journey started 1965?

OP, I save 1 year of expense every year. My AA range from 70/30 to 60/40. This FIRE plan works under any stock market condition. KlangFool How is it possible to save 1 yr of expense every yr? Are you projecting lower or equal expenses in the future? mtmingus, 1) I am not projecting anything. I am s...
by KlangFool
Tue Jan 08, 2019 10:21 pm
Forum: Investing - Theory, News & General
Topic: Fell in Love with Fidelity
Replies: 60
Views: 6184

Re: Fell in Love with Fidelity

Okay so I can be a little impulsive, but I opened a Fidelity brokerage account and have fallen in love. I had three goals I wanted to achieve: -- Invest in bond market index fund -- increase international stock exposure with an international index fund -- Expand US stock exposure with a total stock...
by KlangFool
Tue Jan 08, 2019 8:22 pm
Forum: Investing - Theory, News & General
Topic: Fell in Love with Fidelity
Replies: 60
Views: 6184

Re: Fell in Love with Fidelity

What do you do when the stock market drops 50%? You have to rebalance now. It cannot be done with new money and earned dividends. KlangFool One can rebalance in their non-taxable accounts, since it's all just one portfolio. Like OP I hold 3 funds in my taxable account, and rebalance using my IRA or...
by KlangFool
Tue Jan 08, 2019 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: 401k Withdrawal to pay debt or keep hacking away
Replies: 13
Views: 793

Re: 401k Withdrawal to pay debt or keep hacking away

N10sive wrote:
Tue Jan 08, 2019 5:02 pm
I guess I will stop retirement contributions.
N10sive,

You should contribute enough to get the employer match.

KlangFool
by KlangFool
Tue Jan 08, 2019 7:42 pm
Forum: Investing - Theory, News & General
Topic: Fell in Love with Fidelity
Replies: 60
Views: 6184

Re: Fell in Love with Fidelity

No big deal at all. My AA goal is 50/50, if stocks drop by 50 percent I invest 100% new money in stocks, for as long as it takes to rebalance. I'm not touching this money for 12-15 years. When things go the other way and stocks rise, I will rebalance by putting more money in bonds. Let me ask -- ho...
by KlangFool
Tue Jan 08, 2019 7:02 pm
Forum: Investing - Theory, News & General
Topic: Fell in Love with Fidelity
Replies: 60
Views: 6184

Re: Fell in Love with Fidelity

I agree with Klang, rebalance is a issue. Take just Total stock market and kept rest as cash/CD/municipal bonds (instead of bond index fund) in taxable. Why is rebalancing with this taxable account any different than rebalancing with any taxable account? It seems to me the best way to rebalance a t...
by KlangFool
Tue Jan 08, 2019 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4425

Re: Would your FIRE plan work had your journey started 1965?

OP, I save 1 year of expense every year. My AA range from 70/30 to 60/40. This FIRE plan works under any stock market condition. KlangFool How is it possible to save 1 yr of expense every yr? Are you projecting lower or equal expenses in the future? mtmingus, 1) I am not projecting anything. I am s...
by KlangFool
Tue Jan 08, 2019 6:05 pm
Forum: Investing - Theory, News & General
Topic: Fell in Love with Fidelity
Replies: 60
Views: 6184

Re: Fell in Love with Fidelity

Okay so I can be a little impulsive, but I opened a Fidelity brokerage account and have fallen in love. I had three goals I wanted to achieve: -- Invest in bond market index fund -- increase international stock exposure with an international index fund -- Expand US stock exposure with a total stock...
by KlangFool
Tue Jan 08, 2019 5:35 pm
Forum: Investing - Theory, News & General
Topic: Fell in Love with Fidelity
Replies: 60
Views: 6184

Re: Fell in Love with Fidelity

Okay so I can be a little impulsive, but I opened a Fidelity brokerage account and have fallen in love. I had three goals I wanted to achieve: -- Invest in bond market index fund -- increase international stock exposure with an international index fund -- Expand US stock exposure with a total stock...
by KlangFool
Tue Jan 08, 2019 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: 401k Withdrawal to pay debt or keep hacking away
Replies: 13
Views: 793

Re: 401k Withdrawal to pay debt or keep hacking away

Watty wrote:
Tue Jan 08, 2019 12:53 pm
I would not do anything until you have very firm plans for your next job
Watty,

Actually, OP should not do anything until OP had started working in a new job for a few weeks.

KlangFool
by KlangFool
Tue Jan 08, 2019 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4425

Re: Would your FIRE plan work had your journey started 1965?

OP, I save 1 year of expense every year. My AA range from 70/30 to 60/40. This FIRE plan works under any stock market condition. KlangFool How is it possible to save 1 yr of expense every yr? Are you projecting lower or equal expenses in the future? mtmingus, 1) I am not projecting anything. I am s...
by KlangFool
Tue Jan 08, 2019 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Would your FIRE plan work had your journey started 1965?
Replies: 66
Views: 4425

Re: Would your FIRE plan work had your journey started 1965?

OP,

I save 1 year of expense every year. My AA range from 70/30 to 60/40. This FIRE plan works under any stock market condition.

KlangFool
by KlangFool
Tue Jan 08, 2019 2:51 pm
Forum: Investing - Theory, News & General
Topic: Safe withdrawal rate at 38 years old
Replies: 95
Views: 7391

Re: Safe withdrawal rate at 38 years old

All of these responses have been very helpful. Thank you! I think what I'm trying to get at (and perhaps not articulating it very well) is what kind of income we could reasonably expect from this money. I'm trying to figure out a range (in dollars) by starting with a percentage. There is certainly ...
by KlangFool
Tue Jan 08, 2019 2:50 pm
Forum: Investing - Theory, News & General
Topic: Safe withdrawal rate at 38 years old
Replies: 95
Views: 7391

Re: Safe withdrawal rate at 38 years old

Almost every reply is based on what the average investor should do. Someone retiring with $500K needs to be absolutely certain that they will not run out of money when they are 85 years old. The OP didn't mention how much money he made from the sale of his business. If it was $100 million, then his...
by KlangFool
Tue Jan 08, 2019 1:08 pm
Forum: Investing - Theory, News & General
Topic: Ray Dalio’s latest fearmongering round
Replies: 101
Views: 11494

Re: Ray Dalio’s latest fearmongering round

Folks, If you are worried enough about something, then, be prepared. Do something. KlangFool But what should we do? Please tell us! munemaker, Diversification. Be prepared for inflation, deflation, hyperinflation and so on. A) Inflation i) 30 years fixed rate mortgage on a reasonably priced house t...
by KlangFool
Tue Jan 08, 2019 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Are we at "Peak FI"?
Replies: 93
Views: 9866

Re: Are we at "Peak FI"?

As far as FIRE is concerned, yes the bull run made it possible. The lifestyle of frugality and high to extremely saving (20% to over 50% of gross income) is likely here to stay. I graduated University in 2008, the worst possible time for a new graduate and was underemployed for many years despite t...
by KlangFool
Tue Jan 08, 2019 12:41 pm
Forum: Investing - Help with Personal Investments
Topic: Fiancée Thinks I'm Putting Too Much Towards Retirement/ Not Enough Towards Short-Term Goals
Replies: 136
Views: 10528

Re: Fiancée Thinks I'm Putting Too Much Towards Retirement/ Not Enough Towards Short-Term Goals

To both Klangfool and onourway, I do see your points, but those are long term goals that they will both agree on later. Who knows if they will have kids 10 years from now or tomorrow? Maybe they decide that they will save all possible cash and then use the savings to live off of for a few years and...