Search found 356 matches

by Tal-
Sat Apr 07, 2018 5:05 pm
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 15187

Re: What is your AA, given your age? and, Why?

I'm 41, wife is 43. Our allocation is 100% stocks : 0% bonds. We've stuck to that allocation since we started saving seriously in 2006. We plan to stick with it till we die. Our reasons for doing so: - Stocks will almost certainly outperform bonds by a huge margin over horizons longer than 30 years...
by Tal-
Sat Apr 07, 2018 11:28 am
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 15187

Re: What is your AA, given your age? and, Why?

Mid/Late 30's. 75% stock. Why? Our time horizon is still huge, and I believe that stocks will outpace bonds over the next 30 years. Actually, I'd be happy to go more aggressive, but the wife is more conservative than I am, and I'm not confident enough in my own predictions to differ from the expert ...
by Tal-
Sat Apr 07, 2018 2:15 am
Forum: Personal Finance (Not Investing)
Topic: Any advice for 1st time landlord
Replies: 42
Views: 4036

Re: Any advice for 1st time landlord

We have a few rentals. Here are our thoughts: 1: Hire a property manager. You may not need one long-term, but start with one for a year or two. Actually, get a CPA as well. 2: Keep a huge cash reserve, in addition to your personal emergency fund. So that you: 3: Don't sweat the small stuff. Things w...
by Tal-
Fri Apr 06, 2018 6:14 pm
Forum: Personal Consumer Issues
Topic: How often do you replace your office shoes?
Replies: 58
Views: 4470

Re: How often do you replace your office shoes?

Every 12 months, give or take.

I buy fairly inexpensive shoes, wear them 4 days a week, and don't take care of them.

After reading this thread, I now feel wasteful. :(
by Tal-
Fri Apr 06, 2018 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Keep it simple for me...please!
Replies: 12
Views: 2427

Re: Keep it simple for me...please!

Well done so far!!! Based on what you've said, here are my thoughts: 1. Is it better for me to keep adding to my money market account so I can save up for larger home repairs that will come in the years to come…or should I contribute more to my 401K, or put it in the Roth? I'd go with a Roth IRA. 2....
by Tal-
Thu Apr 05, 2018 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: Large Single Stock Position - Can't Sell - Retirement Account
Replies: 45
Views: 3756

Re: Large Single Stock Position - Cant Sell - Retirement Account

For most asset allocation contexts, I say count it, but it's obviously on the stock side of your allocation. If you would naturally be 70% stock and 30% bonds, go 10% XYZ and 60% other stock - but stay at 30% bonds. Depending on how segmented the stock portion of your portfolio is, I would reduce ot...
by Tal-
Thu Apr 05, 2018 3:10 pm
Forum: Investing - Theory, News & General
Topic: Notes on Monte Carlo simulation
Replies: 8
Views: 1389

Re: Notes on Monte Carlo simulation

A fun post that got me thinking. Thank you. Here are my thoughts: A MC stimulation can be a misleading tool to look at financial projections. This is because the inputs that go into the model have huge impacts on the outputs of the model. If memory serves, a MC assumes that the data points from the ...
by Tal-
Mon Apr 02, 2018 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Planning to trade car with my friend. Need bogleheads' wisdom
Replies: 22
Views: 2282

Re: Planning to trade car with my friend. Need bogleheads' wisdom

I may be a stick in the mud, but Tal votes no. I'll sidestep the frivolous nature of cars in this price range, and the huge red flag of the "beyond my means" comment, and the implication of living in a house where your neighbor is also making a similar purchase (implying that your home may be a fina...
by Tal-
Fri Mar 23, 2018 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Politics of Internal Promotion & Interviewing at Other Companies
Replies: 13
Views: 1239

Re: Politics of Internal Promotion & Interviewing at Other Companies

Don't bluff, but you can be transparent. After receiving an offer from your current employer, I would say something like, "this is where I want to work, and you're my top choice. But, the offer that you gave me is quite a bit lower than what I received from a few other employers. What can we do to b...
by Tal-
Wed Mar 21, 2018 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Math question to buy new car: pay full, 0% 36 months, 0.9% 60 months
Replies: 35
Views: 2806

Re: Math question to buy new car: pay full, 0% 36 months, 0.9% 60 months

There aren't any bad options here. Mathematically, you only need to return something like 1.3% to break even on a 750 discount after 3 years, or 1.6% for the five year option. This better than treasury bonds (~2.5%) and is lower than the expected returns from a diversified portfolio. With that said,...
by Tal-
Tue Mar 20, 2018 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity
Replies: 13
Views: 1394

Re: Annuity

When you bought the annuity presumably it served some purpose in your life. I am surprised at some of the rapid-fire responses I've seen above. As I understand it, what you have is providing you with a "guaranteed' regular income that is better than a CD-ladder or similar would provide. It particip...
by Tal-
Tue Mar 20, 2018 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Sold house, trying to decide what to do with equity
Replies: 11
Views: 1139

Re: Sold house, trying to decide what to do with equity

I would go with door #2, with a little bit of door #3 thrown in. I would max the Roth IRAs first. These are obviously great tools, but money you put into a Roth can be tapped without penalty or tax if dire circumstances arise, and you blow through your 3 months EF. More likely, this money would stay...
by Tal-
Mon Mar 19, 2018 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Buy bonds or pay down mortgage
Replies: 19
Views: 1910

Re: Buy bonds or pay down mortgage

Mortgage of $370k left at 4.375% In my other thread, people are recommending I buy more bonds for my advanced age (44) However wondering if it might just be more prudent to put say $20k into mortgage vs another $20k into FSITX? I would anticipate interest rates to increase gradually...and looks lik...
by Tal-
Mon Mar 19, 2018 11:41 am
Forum: Personal Consumer Issues
Topic: 2018 Forester vs CRV vs RAV4
Replies: 143
Views: 18332

Re: 2018 Forester vs CRV vs RAV4

I'm a vote for the CRV. I normally love Toyotas, but I found the Rav4 to be very disappointing. The interior felt cheaply made, and the car felt like it was designed for someone of only one height. My wife, who is short (5 ft) could not find a good combination of the seat/wheel/door/etc. Not a fan. ...
by Tal-
Mon Mar 19, 2018 9:21 am
Forum: Personal Consumer Issues
Topic: Paging BH Gearheads: Reasonable Net Worth for Exotic
Replies: 104
Views: 7759

Re: Paging BH Gearheads: Reasonable Net Worth for Exotic

This is hard to answer because a 250K purchase with many more K in annual obligations is a big decision that will impact all other parts of your financial life - and we only have a glimpse into yours. But, here are a few considerations: 1: I strongly encourage you to treat the purchase as having zer...
by Tal-
Thu Mar 15, 2018 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: First Post: Fees question
Replies: 10
Views: 979

Re: First Post: Fees question

Thank you all for the answer and the great reference material. I've been lurking/educating myself for some time now. What triggered the question was my advisor's intent to add a fee (<1% AUM). Prior to now, income realized via 12B-1(0.25%) was sufficient. He stated this is due to the fiduciary chan...
by Tal-
Thu Mar 15, 2018 2:22 pm
Forum: Personal Consumer Issues
Topic: Tires on a 15 year old car....Replace or not?
Replies: 79
Views: 6214

Re: Tires on a 15 year old car....Replace or not?

Psyayeayeduck wrote:
Thu Mar 15, 2018 8:35 am
Never skimp on anything that is between you and the ground. This includes, but not limited to, beds, shoes, and tires.
This quote made me happy. It also happens to be true :)
by Tal-
Mon Mar 12, 2018 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Property Sale - Tax Implications
Replies: 8
Views: 1006

Re: Rental Property Sale - Tax Implications

He is simply wrong about this, assuming you have calculated the numbers correctly. In the no gain/no loss situation there is no recapture. Specifically, the definition of Unrecaptured Section 1250 gain in section 1(h)(6) explicitly requires a taxable gain for the recapture provisions to apply: "The...
by Tal-
Sun Mar 11, 2018 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: unable to claim Sch E loss for rental. 8582 limitation
Replies: 10
Views: 898

Re: unable to claim Sch E loss for rental. 8582 limitation

The short answer is, I'm not sure. I think that you can use those losses to offset other gains, but I could be off on that. The longer answer is: Why do you have a rental that has consistent losses? I don't mean to pry, but even after depreciation and expenses, most of my property run in the black e...
by Tal-
Sun Mar 11, 2018 12:56 am
Forum: Personal Finance (Not Investing)
Topic: Purchasing a Very expensive home in HCOL Area
Replies: 42
Views: 6117

Re: Purchasing a Very expensive home in HCOL Area

I feel like there's some info missing here, and it's hard to weigh in without a better understanding of your income, expenses, and assets.

OP - can you provide clarity on these?
by Tal-
Sat Mar 10, 2018 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: Can I take an 85+% pay cut for fun?
Replies: 80
Views: 10148

Re: Can I take an 85+% pay cut for fun?

No. I'm sorry, but in my opinion, you can't afford to do it.

If you were willing to spend less, sure. But those numbers simply aren't strong enough to justify that lifestyle, this early in life, with that little income.

Sorry for voting in the no camp :(
by Tal-
Sat Mar 10, 2018 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: [Can someone not named in a trust see its contents?]
Replies: 26
Views: 1744

Re: are lawyers allowed to look into trusts?

Talk to a lawyer licensed in your state, not anonymous Bogleheads. I hate to say it, but the answer really is that simple. You need an attorney. With that said, one of the first questions I'd ask is if you can pay the attorney exclusively out of the trust - and how that would effect both your and y...
by Tal-
Sat Mar 10, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Amount saved by age
Replies: 58
Views: 9222

Re: Amount saved by age

The most common numbers you'll see are 15% - 20%, meaning you should be saving this much per year. To your point, there is huge variability in this, but that's a common range that is probably relevant for a 29 year olds. Note that I feel that 20% - 25% is far far far better, but I'm also conservativ...
by Tal-
Thu Mar 08, 2018 4:37 pm
Forum: Investing - Help with Personal Investments
Topic: Would YOU retire
Replies: 67
Views: 9797

Re: Would YOU retire

I tend to be conservative on the "can I retire now" question, so take this for what it's worth. It's close... Pros: *Pensions (two of them!) *Little/no debt *$2M+ in investable assets is a good bucket of cash *Your high income target suggests that you could take less than that if needed, and still b...
by Tal-
Thu Mar 08, 2018 10:52 am
Forum: Personal Finance (Not Investing)
Topic: To sell or not sell rental home?
Replies: 7
Views: 655

Re: To sell or not sell rental home?

Sell. When you factor in vacancies, or your time, or minor repairs, or just about anything else, you're cash flow negative both on an annual, and multi-year basis. And, even when you factor in reasonable appreciation, debt pay-down, and taxes, I can't imagine that keeping it would generate even a vi...
by Tal-
Thu Mar 08, 2018 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford a 760K home
Replies: 32
Views: 3540

Re: Can we afford a 760K home

I think you can afford either the apt you're in, or the house in the suburbs. Not both.
by Tal-
Tue Mar 06, 2018 12:17 am
Forum: Investing - Help with Personal Investments
Topic: Just out of college, new job w/ 401k
Replies: 18
Views: 1651

Re: Just out of college, new job w/ 401k

Congrats on your start! My suggestions: For now, I would actually invest 100% into Vanguard's total stock market index. I tend to say that diversifying is primarily for security, but security doesn't matter all that much when you have $500 invested. So, for simplicity, I think you're good with all y...
by Tal-
Tue Feb 27, 2018 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 19691

Re: Defining "House Poor"

House Poor: The inability to responsibly sustain a standard of living (and saving) that is commensurate with your house.
by Tal-
Tue Feb 27, 2018 9:46 am
Forum: Personal Consumer Issues
Topic: Strategies for getting out of a car dealership quickly?
Replies: 78
Views: 8008

Re: Strategies for getting out of a car dealership quickly?

Thanks so much for all the input! I'm happy to report that it was not as difficult as I anticipated. I told my kids to bring some books and games along since we might be waiting for a while, and we went to the dealership last night. They gave me a form to fill out, and I asked them for a copy so th...
by Tal-
Mon Feb 26, 2018 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: Australian with a $6m portfolio mess!!
Replies: 15
Views: 3000

Re: Australian with a $6m portfolio mess!!

My thoughts: 1. If we wanted to convert our cash into equities, how long should we drip the lump sum over i.e. how long to average the cash into the market? Normally, the answer to this question is "all at once" - but given the amount of cash that you have, and how unimportant optimizing returns see...
by Tal-
Sat Feb 24, 2018 12:55 pm
Forum: Personal Consumer Issues
Topic: Roof Shingle Recommendations
Replies: 26
Views: 2451

Re: Roof Shingle Recommendations

I just got a new roof, and did a fair bit of research. I agree with the above; shingles are just part of the whole roof, and clearly there are other factors that are more relevant. With that said, I'd place Owens Corning and GAF as top tier shingles. It's hard to go wrong with either. CertainTeed is...
by Tal-
Fri Feb 23, 2018 1:54 pm
Forum: Personal Consumer Issues
Topic: Caribbean Cruise 1st timer Cash or Card?
Replies: 32
Views: 2167

Re: Caribbean Cruise 1st timer Cash or Card?

*Virtually all tipping that is expected on the ship will be done on your tab. Some of this is automated, some is at your discretion, but all of this is done via your tab. Tipping ship employees with cash beyond that is not common, but greatly appreciated... you'd be surprised how much a $20 bill is ...
by Tal-
Sun Feb 18, 2018 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Sanity Check on Primary/Rental Purchase: killing cash-flow
Replies: 24
Views: 1942

Re: Sanity Check on Primary/Rental Purchase: killing cash-flow

I've slept on it and run multiple simulations. I'm really not comfortable with our budget that being that tight without hefty reserves. I've decided to low-ball an offer of $1.1m. If accepted, our (near) cash-reserves will be mid-5 digits (realtor fee is 1%...might be able to recapture some of that...
by Tal-
Sat Feb 17, 2018 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Sanity Check on Primary/Rental Purchase: killing cash-flow
Replies: 24
Views: 1942

Re: Sanity Check on Primary/Rental Purchase: killing cash-flow

I own several rentals, and we have a similar age and income as you. No! No No No!!! In real estate, cashflow is king - even if you don't plan to take that cashflow as additional income. Cashflow is, by far, the single best metric to determine the quality of a rental investment. And, in this situatio...
by Tal-
Thu Feb 15, 2018 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy to sell a sought-after condo
Replies: 15
Views: 1243

Re: Strategy to sell a sought-after condo

I'll provide a dissenting opinion on this one, as I tend to disagree with the theme of most responses. If you're in a seller's market with a super-attractive piece of real estate, I think you should have an agent. This is not a good FSBO option. The biggest reason for this is that determining prices...
by Tal-
Tue Feb 13, 2018 10:37 am
Forum: Personal Consumer Issues
Topic: What big item (>20k) are you saving up for?
Replies: 159
Views: 15790

Re: What big item (>20k) are you saving up for?

Lots of investing goals that are <$20K, but I think you're asking about purchases... So:

New roof (25k) with solar (15k).
by Tal-
Tue Feb 13, 2018 12:59 am
Forum: Personal Finance (Not Investing)
Topic: Selling a rental property
Replies: 15
Views: 1376

Re: Selling a rental property

First, this is a business decision. Selling it to the rents is great if it makes sense, but you don't need to take less (net) to make this happen. Keep that in mind. :) Yes, you can sell a rental yourself, but first, verify that they are qualified to get financing. Ask them if they have been pre app...
by Tal-
Fri Feb 09, 2018 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: 4% rule and early retirement?
Replies: 69
Views: 10594

Re: 4% rule and early retirement?

My view: For someone retiring before 50, with a ~70/30 is stock/bond allocation: 2.5% is the safe number, that I believe can be taken basically in perpetuity. 3.0% is probably the best number, and roughly the number we're shooting for. 3.5% is probably safe for early retirees *if* this includes disc...
by Tal-
Thu Feb 08, 2018 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Tenants want to break lease early and is pregnant
Replies: 105
Views: 10314

Re: Tenants want to break lease early and is pregnant

We own quite a few rentals, and have had, somewhat similar situations. My view: Let them leave. In fact, I completely agree with the advice to buy them a gift and wish them well. Breaking a lease early (but with notice) should have virtually no impact on, or cost to you. To illustrate this point, co...
by Tal-
Thu Feb 08, 2018 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Option bonus from company - not sure which to pick
Replies: 11
Views: 790

Re: Option bonus from company - not sure which to pick

I'd vote for cash. Normally, an HSA would be better, but if my understanding is correct (i.e. them putting $1000 into the HSA means you must put $1000 less into the HSA), then as you noted, the selecting the HSA option is really just taking cash. I'd also rather you do a 401(K), but if you have debt...
by Tal-
Tue Feb 06, 2018 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Requesting Advice on Plan
Replies: 12
Views: 745

Re: Requesting Advice on Plan

Lots going on here... Regarding Real Estate: The only thing more expensive than buying real estate, is selling real estate. And, you're doing a lot of both :( If possible, I would advise against selling your 3-plex. And staying in your current home is probably a better option than selling, renting a...
by Tal-
Mon Feb 05, 2018 9:45 am
Forum: Personal Finance (Not Investing)
Topic: general "am I on the right track" question
Replies: 29
Views: 2867

Re: general "am I on the right track" question

A few thoughts: 1: Props. You're in great shape for financial security and independence. Props! 2: I agree with your decision to not buy a house - at least given this market. Maybe the real estate market will double in 5 years, maybe it will be cut in half; who knows. But, for now, I agree that rent...
by Tal-
Sun Feb 04, 2018 6:16 pm
Forum: Personal Consumer Issues
Topic: Potential employer wants me to give offer - how to respond?
Replies: 63
Views: 7210

Re: Potential employer wants me to give offer - how to respond?

Avoid giving specifics. I've had friends in situations where they gave a number, and then got that number, only to learn that they were significantly underpaid. So, I'd try to answer without giving specifics. Here are a few approaches: The deferral: "For me, salary is just part of the total compensa...
by Tal-
Fri Feb 02, 2018 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Term insurance premiums: buy now or wait a year or two
Replies: 23
Views: 1109

Re: Term insurance premiums: buy now or wait a year or two

Like above, I'd echo the "get it now" comment. I also encourage you to focus on term only for now, and not get lost in the muck on whole life. You may or may not need, or may or may not benefit from a whole life policy. But, they are complicated, and expensive, and determining if you need one is oft...
by Tal-
Fri Jan 19, 2018 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Automation of Net Worth Tracking
Replies: 6
Views: 1106

Re: Automation of Net Worth Tracking

We use Mint.com for this. It tracks most assets just fine, and does so on a daily basis.
by Tal-
Mon Jan 15, 2018 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: Fired my VPA, Portfolio Critique
Replies: 12
Views: 1325

Re: Fired my VPA, Portfolio Critique

These are very (very!) aggressive. At 36 with 20+ years until retirement, I'm good with this is you are, but I want to be sure you're comfortable with an asset allocation that basically holds a nominal amount of bonds.

Thoughts? Is this intentional???
by Tal-
Wed Jan 10, 2018 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: "Emergency Fund" Strategy
Replies: 39
Views: 5178

Re: "Emergency Fund" Strategy

I'll have a dissenting/minority opinion on this one. Having real estate means that you really need to have a strong emergency fund. I'd recommend something like '20K for real estate emergency fund' + 'standard 3-6 months for personal emergency fund'. Big numbers... Because the emergency fund needs ...
by Tal-
Wed Jan 10, 2018 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: New to HSA's - A Couple of Questions
Replies: 5
Views: 647

Re: New to HSA's - A Couple of Questions

the benefits ... is that payroll deductions to HSA are FICA exempt. You have foregone most of this benefit but contributing the majority of the HSA upfront out of existing funds. I've never paid a HSA payment from existing funds, and honestly, didn't even know that this was possible. With that said...
by Tal-
Wed Jan 10, 2018 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: "Emergency Fund" Strategy
Replies: 39
Views: 5178

Re: "Emergency Fund" Strategy

I'll have a dissenting/minority opinion on this one. Having real estate means that you really need to have a strong emergency fund. I'd recommend something like '20K for real estate emergency fund' + 'standard 3-6 months for personal emergency fund'. Big numbers... Because the emergency fund needs t...
by Tal-
Mon Jan 08, 2018 1:29 pm
Forum: Personal Consumer Issues
Topic: Are Password Managers Really Necessary?
Replies: 129
Views: 9264

Re: Are Password Managers Really Necessary?

The security of password managers feels like the key question, but I'm not sure I have the technical savvy to follow this discussion, or the distinction between a password manager being hacked and the good guy being at risk. So, let me ask a simple question: In the last 3-5 years, how many people (o...