Search found 11073 matches

by KlangFool
Sat Jan 19, 2019 1:37 pm
Forum: Investing - Theory, News & General
Topic: Is using an Asset Allocation Mental Accounting?
Replies: 46
Views: 1997

Re: Is using an Asset Allocation Mental Accounting?

Has anyone ever asked if using an Asset Allocation is mental accounting? I mean you are obviously obfuscating the actual dollar amount and only seem to view risk in percentage terms instead of in relation to something concrete like the possible loss in dollars. TheTimeLord, Not to me. My AA is both...
by KlangFool
Sat Jan 19, 2019 10:45 am
Forum: Investing - Theory, News & General
Topic: My trend following strategy and experience
Replies: 157
Views: 5685

Re: My trend following strategy and experience

OP, A) Are you doing this for 100% of your portfolio or just part of your portfolio? 100% of our portfolio. Our savings rate is high enough (just over 50%) that we don't need strong returns to reach financial independence in a reasonable amount of time, so somewhat poorer performance than a balance...
by KlangFool
Sat Jan 19, 2019 10:25 am
Forum: Personal Consumer Issues
Topic: Used electric car - a good deal?
Replies: 28
Views: 1528

Used electric car - a good deal?

Hi,

I had seen a few years old used electric car like Nissan Leaf selling for less than 10K. Has anyone bought a used electric car? What was your experience? Was it a good deal?

KlangFool
by KlangFool
Sat Jan 19, 2019 10:13 am
Forum: Investing - Theory, News & General
Topic: My trend following strategy and experience
Replies: 157
Views: 5685

Re: My trend following strategy and experience

OP,

A) Are you doing this for 100% of your portfolio or just part of your portfolio?

B) Are they in the tax-advantaged account? If not, how do you account for the tax inefficiency? Aka, the amount of taxes that you have to pay?

KlangFool
by KlangFool
Sat Jan 19, 2019 10:06 am
Forum: Investing - Help with Personal Investments
Topic: 100% in VTSAX - Is it crazy???
Replies: 82
Views: 7913

Re: 100% in VTSAX - Is it crazy???

Folks, After 10 years of bull market, investor's appetite for risk gone up. And, folks are usually overly-optimistic about their job security and pension anyhow. Combination of those two factors makes sure that we have plenty of 100/0 folks. And, as usual, when we hit the next recession, we will hav...
by KlangFool
Sat Jan 19, 2019 9:34 am
Forum: Investing - Theory, News & General
Topic: Total Stock & Intnl Stock vs Total World?
Replies: 7
Views: 586

Re: Total Stock & Intnl Stock vs Total World?

Let's assume I was thinking (over thinking?) about simplifying the stock side of the portfolio from a 50 / 50 Total Stock and Total International Stock asset allocation to a Total World allocation. I was looking at the portfolios of all three funds. IIRC, the Total World and Total Stock portfolios ...
by KlangFool
Sat Jan 19, 2019 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Savers Credit dilemma
Replies: 18
Views: 1375

Re: Savers Credit dilemma

That is one of the reasons I settled on the 50/50 is for the insurance against the unknowns. Machinebuzz, It is very simple. Max up your Trad. 401K = 19K. Put the tax savings into 2 X Roth IRAs = 12K. Why are you overthinking this? It is close to 50-50. Only do the Roth at the IRAs side. And, you c...
by KlangFool
Sat Jan 19, 2019 9:25 am
Forum: Investing - Theory, News & General
Topic: Total Stock & Intnl Stock vs Total World?
Replies: 7
Views: 586

Re: Total Stock & Intnl Stock vs Total World?

Let's assume I was thinking (over thinking?) about simplifying the stock side of the portfolio from a 50 / 50 Total Stock and Total International Stock asset allocation to a Total World allocation. I was looking at the portfolios of all three funds. IIRC, the Total World and Total Stock portfolios ...
by KlangFool
Fri Jan 18, 2019 10:49 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing portfolio using "bands"?
Replies: 13
Views: 627

Re: Rebalancing portfolio using "bands"?

I appreciate the in depth explanation! That helps a lot, I get it. Quick question: how do you decide what % to set the band at then? Also what is the rational in using bands as opposed to just adhering to a strict AA? It is not possible to adhere to a strict AA unless you use a balanced fund. You w...
by KlangFool
Fri Jan 18, 2019 10:29 pm
Forum: Investing - Theory, News & General
Topic: What do you think about this 5 Fund portfolio vs 3 Fund one ?
Replies: 9
Views: 1295

Re: What do you think about this 5 Fund portfolio vs 3 Fund one ?

OP,

Don't waste your time reading junk like this. It is click bait.

KlangFool
by KlangFool
Fri Jan 18, 2019 10:14 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing portfolio using "bands"?
Replies: 13
Views: 627

Re: Rebalancing portfolio using "bands"?

Also what is the rational in using bands as opposed to just adhering to a strict AA? ericcohen, It is not possible to adhere to a strict AA unless you use a balanced fund. You would be rebalancing all the time that you look. The goal of the 5/25 band based rebalancing is to rebalance as infrequent ...
by KlangFool
Fri Jan 18, 2019 10:11 pm
Forum: Personal Consumer Issues
Topic: Importance of college summer internships??
Replies: 44
Views: 1807

Re: Importance of college summer internships??

This wasn't so much of a "how does one find an internship?" thread. I think she is mostly doing the right things for that. It was more of a "how important are summer internships really?" sort of thread. texasdiver, <<This wasn't so much of a "how does one find an internship?" thread. >> It is the s...
by KlangFool
Fri Jan 18, 2019 9:53 pm
Forum: Personal Consumer Issues
Topic: Importance of college summer internships??
Replies: 44
Views: 1807

Re: Importance of college summer internships??

OK, a little more context here. The daughter is convinced that summer internships are of upmost importance and how everyone gets ahead in her field. Since last fall she has been applying for everything she can find all over the country but the ones that sound the coolest are also uber competitive a...
by KlangFool
Fri Jan 18, 2019 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Price-to-rent
Replies: 11
Views: 1051

Re: Price-to-rent

I have never been in a house more than 4 years due to moving for work. It’s worked out fine, but it’s a hassle. I am considering an ARM. I would have been better off with an ARM on all previous houses. 28fe6, Then, you should not buy a house. Much less buying a house on ARM. <<I am considering an A...
by KlangFool
Fri Jan 18, 2019 8:32 pm
Forum: Personal Consumer Issues
Topic: Importance of college summer internships??
Replies: 44
Views: 1807

Re: Importance of college summer internships??

Plan C is to live at home or in her college town apartment and earn money waiting tables, cashiering, or whatever. texasdiver, This is a great learning experience if she does not have any real job at all. My kids learned a lot from their experience while doing that in high school. KlangFool She wor...
by KlangFool
Fri Jan 18, 2019 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

deanmoriarty, That means you will retire at 42 to 47 years old. It is not the usual 62 to 67 years old. It is a difference of 20 years. The usual advice of 100/0 because you are 30+ is wrong for you too. KlangFool Absolutely agree on that, I would never dream of going 100/0 in my situation, I'm cur...
by KlangFool
Fri Jan 18, 2019 8:16 pm
Forum: Personal Consumer Issues
Topic: Importance of college summer internships??
Replies: 44
Views: 1807

Re: Importance of college summer internships??

texasdiver wrote:
Fri Jan 18, 2019 8:03 pm

Plan C is to live at home or in her college town apartment and earn money waiting tables, cashiering, or whatever.
texasdiver,

This is a great learning experience if she does not have any real job at all. My kids learned a lot from their experience while doing that in high school.

KlangFool
by KlangFool
Fri Jan 18, 2019 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

Your reasoning is absolutely wrong. Your annual expense is about 30K. 30X 30K = 900K. Your FI number is about 1 million. In summary, you are very close to FI and you can get out of the Bay area in a few years. KlangFool Thats a good point. However I want to live comfortably if I'm "retired" so that...
by KlangFool
Fri Jan 18, 2019 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Price-to-rent
Replies: 11
Views: 1051

Re: Price-to-rent

I will consider buying if the PITI with 20% down payment and 30 years mortgage is 20% to 30% lower than renting. The rent is $1,900 per month. So, the PITI has to be lower than $1,520 or $1,260. The house is 350K. The PITI is $1,400 . So, it might be worthwhile to buy. KlangFool What numbers are yo...
by KlangFool
Fri Jan 18, 2019 5:22 pm
Forum: Investing - Help with Personal Investments
Topic: Fund suggestions for a taxable account with a ~15-year time horizon
Replies: 16
Views: 857

Re: Fund suggestions for a taxable account with a ~15-year time horizon

OP, 1) You could withdraw your retirement fund before 59 1/2 years old. https://www.madfientist.com/how-to-access-retirement-funds-early/ Thanks for the link! Unfortunately, it seems that I would have to know at least five years in advance if I needed the funds, so it's probably not the most ideal ...
by KlangFool
Fri Jan 18, 2019 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Price-to-rent
Replies: 11
Views: 1051

Re: Price-to-rent

Do you have a ratio below or above which you refuse to rent/buy? I'm renting a house in Boise ID for $1900/mo. This seems like a lot to me, since my previous 15-year mortgage was only $1600/mo (on a $225k house). The house I'm renting is worth about $350k to buy. According to online calculators thi...
by KlangFool
Fri Jan 18, 2019 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Fund suggestions for a taxable account with a ~15-year time horizon
Replies: 16
Views: 857

Re: Fund suggestions for a taxable account with a ~15-year time horizon

OP, 1) You could withdraw your retirement fund before 59 1/2 years old. https://www.madfientist.com/how-to-access-retirement-funds-early/ 2) There is no reason to treat the taxable account as a separate portfolio that you need to invest for 15 years. Go over the reason why do you think so. And, we w...
by KlangFool
Fri Jan 18, 2019 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

You can actually reduce your lifetime portfolio risk by increasing your stock allocation now (to 100%) and decreasing it in your 50s and 60s. Ben Mathew, Come on. OP is 30 years old with 280K. She is saving 140K per year. Her annual expense is 26K. So, why would she work until the 50s and 60s? Age ...
by KlangFool
Fri Jan 18, 2019 10:52 am
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 129
Views: 7103

Re: How much house can I afford (really)?

OP, Since you are sending your kids to private school, I would assume that you will be sending your kids to private colleges. The private college is around 60K to 80K per kid per year now. So, please make sure that you have the money to pay for it in 10+ years. I live in a very affluent neighborhoo...
by KlangFool
Fri Jan 18, 2019 10:33 am
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 129
Views: 7103

Re: How much house can I afford (really)?

OP, Since you are sending your kids to private school, I would assume that you will be sending your kids to private colleges. The private college is around 60K to 80K per kid per year now. So, please make sure that you have the money to pay for it in 10+ years. I live in a very affluent neighborhood...
by KlangFool
Fri Jan 18, 2019 8:38 am
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

s8r wrote:
Fri Jan 18, 2019 8:03 am
I don't think anyone in his/her early 30s should even consider bonds.
s8r,

If you have 280K now and saving 140+K per year, should you be 100% stock?

KlangFool
by KlangFool
Thu Jan 17, 2019 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

6-8 years is too soon to rely on selling stocks IMO. Hold a percentage that guarantees you can cover the down payment in bonds. Then bump it back up. pdavi21, OP's annual saving is 140+K. Half of that is from the annual bonus. So, why OP need to save for the house's down payment? KlangFool His numb...
by KlangFool
Thu Jan 17, 2019 9:36 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

You can actually reduce your lifetime portfolio risk by increasing your stock allocation now (to 100%) and decreasing it in your 50s and 60s. Ben Mathew, Come on. OP is 30 years old with 280K. She is saving 140K per year. Her annual expense is 26K. So, why would she work until the 50s and 60s? Age ...
by KlangFool
Thu Jan 17, 2019 9:28 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

pdavi21 wrote:
Thu Jan 17, 2019 9:12 pm
6-8 years is too soon to rely on selling stocks IMO. Hold a percentage that guarantees you can cover the down payment in bonds. Then bump it back up.
pdavi21,

OP's annual saving is 140+K. Half of that is from the annual bonus. So, why OP need to save for the house's down payment?

KlangFool
by KlangFool
Thu Jan 17, 2019 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

Your reasoning is absolutely wrong. Your annual expense is about 30K. 30X 30K = 900K. Your FI number is about 1 million. In summary, you are very close to FI and you can get out of the Bay area in a few years. KlangFool Thats a good point. However I want to live comfortably if I'm "retired" so that...
by KlangFool
Thu Jan 17, 2019 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

nix4me wrote:
Thu Jan 17, 2019 8:40 pm
At your age - 100% equity
OP is will get her first million in less than 5 years. Age is always the wrong metric to set your AA.

KlangFool
by KlangFool
Thu Jan 17, 2019 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

OP,

You pay is not very high. It is your annual bonus/RSU that makes the difference. But, if your bonus stop, you can get the same pay in the other part of the USA. Why would you stay in the bay area? Especially when you have about 1 million and you could semi-retired or FI.

KlangFool
by KlangFool
Thu Jan 17, 2019 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

1) Your numbers make absolutely no sense. How do you arrive at this number? I’m planning for annual expenses of 100k a year (2018 dollars) if I end up having a family (I would like kids someday, hopefully). To reach FI, I would need 30x annual expenses, which is 30*100k = 3m after tax (2018 dollars...
by KlangFool
Thu Jan 17, 2019 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

1) I disagreed with others that you need to save for down payment. Your annual savings is 140+K. You could pay your house down payment from your annual saving That's a good perspective 2)Your emergency fund is too low. What is your annual expense? Will that 5K last 2 months? It should be at least 6...
by KlangFool
Thu Jan 17, 2019 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Should I increase my stock allocation to 90% stocks?
Replies: 59
Views: 4114

Re: Should I increase my stock allocation to 90% stocks?

OP, 1) I disagreed with others that you need to save for down payment. Your annual savings is 140+K. You could pay your house down payment from your annual saving. 2) Your emergency fund is too low. What is your annual expense? Will that 5K last 2 months? It should be at least 6 months. 3) Actually,...
by KlangFool
Thu Jan 17, 2019 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 129
Views: 7103

Re: How much house can I afford (really)?

Can you break down the expenses? Something is off to be spending $160K a year in expenses. I think you can afford a bigger house, but I fear you will just buy more stuff for the house. Yes you have a high income which is great, but you don't need to spend that much. I am sure you can take that $160...
by KlangFool
Thu Jan 17, 2019 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 129
Views: 7103

Re: How much house can I afford (really)?

Can you break down the expenses? Something is off to be spending $160K a year in expenses. I think you can afford a bigger house, but I fear you will just buy more stuff for the house. Yes you have a high income which is great, but you don't need to spend that much. I am sure you can take that $160...
by KlangFool
Thu Jan 17, 2019 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Should I buy Company Stock in 401(k)
Replies: 8
Views: 533

Re: Should I buy Company Stock in 401(k)

Remember Enron!

KlangFool
by KlangFool
Thu Jan 17, 2019 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: 57 yr old w/$14K
Replies: 24
Views: 3607

Re: 57 yr old w/$14K

sonomasmiles wrote:
Thu Jan 17, 2019 2:23 pm

Most of his working life was paid in cash
sonomasmiles,

If he filed taxes, he would be paying self-employment taxes and qualify for social security benefit.

KlangFool
by KlangFool
Thu Jan 17, 2019 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security work only 1 quarter in a year
Replies: 6
Views: 724

Re: Social Security work only 1 quarter in a year

https://www.ssa.gov/pubs/EN-05-10070.pdf

OP,

1) It is 35 years.

2) Yes, it is counted as one year.

https://www.ssa.gov/planners/credits.html

3) You need to make sure that you have 40 work credits to qualify for the benefit.

KlangFool
by KlangFool
Thu Jan 17, 2019 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Paying extra on mortgage - what am I missing?
Replies: 57
Views: 4356

Re: Paying extra on mortgage - what am I missing?

OP, Before you even think about doing this, A) Do you max up your Trad. 401K? B) What is your marginal tax rate? C) Do you pay state income tax? D) Do you qualify for the tax credit if you max up your Trad. 401K? If your marginal tax rate is 22%, how does it makes any sense to pay 22% tax in order ...
by KlangFool
Thu Jan 17, 2019 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 129
Views: 7103

Re: How much house can I afford (really)?

Of course. My current private school tuition will be rolled into the cash stream. And, something we may not agree on, is that I don't think higher ed tuition will be increasing at the historical 6% pace that it has been - something is going to break or it's only going to be available to the HNW cro...
by KlangFool
Thu Jan 17, 2019 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Paying extra on mortgage - what am I missing?
Replies: 57
Views: 4356

Re: Paying extra on mortgage - what am I missing?

OP, Before you even think about doing this, A) Do you max up your Trad. 401K? B) What is your marginal tax rate? C) Do you pay state income tax? D) Do you qualify for the tax credit if you max up your Trad. 401K? If your marginal tax rate is 22%, how does it makes any sense to pay 22% tax in order t...
by KlangFool
Thu Jan 17, 2019 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15961

Re: Why are your NOT buying rental properties?

Just recently my coworker told me he made $40 k in overtime last year. I made that much from just one property last year and I don’t have to pay 50% tax! I made it to the bottom of the first page and can’t believe no one addressed this. To me this is more eye-opening the fact that someone believes ...
by KlangFool
Thu Jan 17, 2019 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 129
Views: 7103

Re: How much house can I afford (really)?

Absolutely. Here's my scam. **Obviously assumes no layoffs. (Thought I'd disclose that up front b/c I'm beginning to see how you think :D ) Retirement age = 67. Gives me 27 years to save. Rough math: FV Annuity: $50k @ 5% for 27 years = $2.8 million FV Current Assets = $400k compounded at 5% for 27...
by KlangFool
Thu Jan 17, 2019 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15961

Re: Why are you NOT buying rental properties?

Obviously, real estate investment is not for everyone. If it was then the return wouldn’t be so good. I want to hear from those who tried but failed. What went wrong? Did you not read the past 4 pages of responses filled with stories of what has gone wrong for people? onourway, That is not the prob...
by KlangFool
Thu Jan 17, 2019 10:35 am
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 129
Views: 7103

Re: How much house can I afford (really)?

Of course. My current private school tuition will be rolled into the cash stream. And, something we may not agree on, is that I don't think higher ed tuition will be increasing at the historical 6% pace that it has been - something is going to break or it's only going to be available to the HNW cro...
by KlangFool
Thu Jan 17, 2019 10:30 am
Forum: Investing - Help with Personal Investments
Topic: Why are you NOT buying rental properties?
Replies: 221
Views: 15961

Re: Why are you NOT buying rental properties?

OP, <<(2) Put $80 k (20% down payment) on $400 k house. Lets assume a modest 4% appreciation per year and your tenants pay for all expenses (mortgage, property tax, fixes, property manager, etc). After 18 years, the house would double to $800 k. >> I am interested in knowing why do you think this is...
by KlangFool
Thu Jan 17, 2019 10:27 am
Forum: Personal Finance (Not Investing)
Topic: How much house can I afford (really)?
Replies: 129
Views: 7103

Re: How much house can I afford (really)?

FV Annuity: $400/month at 4% compounded for 13yrs = ~$81,000 for my oldest. (Will be a bit more for my youngest.) Add in the $20k that I already have (per kid) and thats $100k. You said it costs you $240k for 2 kids - my rough estimate is $120k/each as well. My target savings is 80-85% of total tui...