Search found 11042 matches

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: 6076

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: 7122

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: 6076

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: 6076

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: 7560

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: 13910

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: 13910

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: 13910

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: 13910

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: 7290

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: 6192

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: 4429

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: 4429

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: 7290

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: 7290

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: 7290

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: 4429

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: 9874

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: 9874

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: 11509

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: 6192

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: 4429

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: 6192

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: 6192

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: 795

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: 6192

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: 6192

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: 4429

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: 6192

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: 6192

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: 795

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: 4429

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: 4429

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: 7406

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: 7406

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: 11509

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: 9874

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: 10534

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...
by KlangFool
Tue Jan 08, 2019 11:59 am
Forum: Investing - Theory, News & General
Topic: Ray Dalio’s latest fearmongering round
Replies: 101
Views: 11509

Re: Ray Dalio’s latest fearmongering round

Folks,

If you are worried enough about something, then, be prepared. Do something. If you are not worried enough to prepare for it, why waste your time talking about it.

KlangFool
by KlangFool
Tue Jan 08, 2019 11:52 am
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: 10534

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

So here is my take on this, just for laughs. From where I sit, it looks like she has all of her ducks in a row and has her half of the money for your (as in both of you and not her ) wedding, and she has the means for her half of the house both of you plan to buy. You have $18,000 in an emergency f...
by KlangFool
Tue Jan 08, 2019 9:50 am
Forum: Personal Consumer Issues
Topic: Engineer Co-op question
Replies: 14
Views: 905

Re: Engineer Co-op question

OP,

1) Apply.

2) Why limit yourself to co-op? People hire people. Find out who you know in this company. If they like you, they could hire you as an intern and/or part-time or contractor.

KlangFool
by KlangFool
Tue Jan 08, 2019 9:19 am
Forum: Personal Finance (Not Investing)
Topic: When did tax planning become important for you?
Replies: 20
Views: 1427

Re: When did tax planning become important for you?

OP, 1) I max up my Trad. 401K since I started working 20 to 30 years ago. 2) Beyond that, I invest in my taxable account. 3) 10+ years ago, I learned about Roth IRA. And, I started contributing to Roth IRA. 4) 5 to 10 years ago, I learn about tax-inefficiency of Balanced fund in the taxable account ...
by KlangFool
Tue Jan 08, 2019 9:01 am
Forum: Investing - Theory, News & General
Topic: Ray Dalio’s latest fearmongering round
Replies: 101
Views: 11509

Re: Ray Dalio’s latest fearmongering round

Folks, If you believe that inflation and interest rate will go up, why are you pre-paying your 30 years low-interest fixed rate mortgage? From a personal finance standpoint, 1) Buy a reasonable price house to lower your housing expense. Then, you had hedged about 40% to 50% of inflation by fixing yo...
by KlangFool
Mon Jan 07, 2019 10:22 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: 10534

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

A lot of things I don't understand here: 1. Paying 25-30k for a wedding, in general 2. Paying 25-30k for a weeding when not you seem to make considerable amounts of money (pretty insane if you ask me). You don't even max your 401k? 3. Marrying someone without living in the same house for couple of ...
by KlangFool
Mon Jan 07, 2019 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: Tax-Efficient Funds for Taxable Account
Replies: 16
Views: 1768

Re: Tax-Efficient Funds for Taxable Account

how do you manage withdrawals? I don't want to be forced to touch the stocks as shorter term money withdrawing a chunk in a down swing, NMBob, Why is that a bad thing? You sell stock in the taxable account and buy it back in your tax-advantaged account. And, you get a tax loss to reduce your taxabl...
by KlangFool
Mon Jan 07, 2019 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Tax-Efficient Funds for Taxable Account
Replies: 16
Views: 1768

Re: Tax-Efficient Funds for Taxable Account

Thanks for all the replies thus far. It might be worth clarifying that the money invested will not be retirement (i.e. part of my overall portfolio/asset allocation). Instead, I was hoping to invested in the aforementioned LifeStrategy fund as an alternative to using CD's, since the level of risk o...
by KlangFool
Mon Jan 07, 2019 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: investing until it's uncomfortable..or cruise control
Replies: 8
Views: 881

Re: investing until it's uncomfortable..or cruise control

This is where I question how much I should push the savings thing since 530k + 50k at 6% growth over the next 15-20 or so years should comfortably get me to a satisfactory 'I quit' number. TarHeel2002, 1) What if you are not fully-employed continuously over the next 15 to 20 years? <<530k + 50k>> 2...
by KlangFool
Mon Jan 07, 2019 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Job Loss Checklist
Replies: 18
Views: 1900

Re: Job Loss Checklist

get a decent basic profile on LinkedIn (which I hate with a passion). BanditKing, 1) I was unemployed for more than 1 year. I applied for many jobs. But, the only contract work and job offers are the unsolicited offers from the Linkedin contacts. So, in your case, I would spend more time and effort...
by KlangFool
Mon Jan 07, 2019 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Job Loss Checklist
Replies: 18
Views: 1900

Re: Job Loss Checklist

BanditKing wrote:
Mon Jan 07, 2019 4:34 pm

[*]I've already fully funded my 2019 ROTH @$6000
BanditKing,

Do you have enough earned income for the 2019 Roth IRA contribution?

KlangFool
by KlangFool
Mon Jan 07, 2019 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Are we at "Peak FI"?
Replies: 93
Views: 9874

Re: Are we at "Peak FI"?

I was in college during Houston Oil Bust. I graduated into Texas Saving & Loan Crisis. I was in Asia during the Asian Currency Crisis. I was in Telecom during Telecom Bust. Then, my employer laid off 50% of its employees at my location on 1/1/2009. Yikes. Where are you located now so I can avoid th...