Search found 6428 matches

by delamer
Tue Dec 04, 2018 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Selling stock +?
Replies: 7
Views: 847

Re: Selling stock +?

Could you just take the dividends in cash instead of having them reinvested? That would presumably avoid the fee, and you'd stop adding to your position. PPL is around $31/share right now, so you have about $37,000 worth. Even if that entire amount was a capital gain, you'd only be looking at ~$550...
by delamer
Tue Dec 04, 2018 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Why Is Insurance Worth It (Analytically)?
Replies: 89
Views: 4234

Re: Why Is Insurance Worth It (Analytically)?

It is interesting that you post this as a theoretical question, rather than providing a real-life situation that you have considered. Say you don’t have homeowner’s insurance (yes, I remember you from the other thread). And your home sustains severe damage in a fire — $200,000 damage including rebui...
by delamer
Tue Dec 04, 2018 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Thinking about downsizing car
Replies: 27
Views: 1843

Re: Thinking about downsizing car

I would target a specific replacement car and determine how much you’d actually save on gas and insurance with it. And whether you could buy one for less than $25K.

But drive the replacement before you decide anything.
by delamer
Tue Dec 04, 2018 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Life Advice (Financial + Health)
Replies: 17
Views: 1567

Re: Life Advice (Financial + Health)

I am going to take a more radical position and suggest that you are in the wrong field, or at least job. You have a family history of high blood pressure issues and at age 29 you are suffering from the same problem while at work. Unless you get some kind of psychological help that shows real results...
by delamer
Tue Dec 04, 2018 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Will we make it saving only in employer plans?
Replies: 58
Views: 4129

Re: Will we make it saving only in employer plans?

lots of areas are $8 k (or less, down to $6 k) for a kid (enough places don’t charge a full 2X if both are there) https://www.bostonglobe.com/2014/07/02/map-the-average-cost-for-child-care-state/LN65rSHXKNjr4eypyxT0WM/story.html This data is simply wrong/out of date for urban/suburban areas of medi...
by delamer
Tue Dec 04, 2018 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Question about long term care
Replies: 8
Views: 960

Re: Question about long term care

Will the state have access to the $7000.00 before they help pay for the cost of long term care? I'm not too worried about the term life insurance (I think it's for 10 or 15 years, I will check on that also. I'm concern about the in between stage of the life. You should check out the Medicaid regula...
by delamer
Tue Dec 04, 2018 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Will we make it saving only in employer plans?
Replies: 58
Views: 4129

Re: Will we make it saving only in employer plans?

lots of areas are $8 k (or less, down to $6 k) for a kid (enough places don’t charge a full 2X if both are there) https://www.bostonglobe.com/2014/07/02/map-the-average-cost-for-child-care-state/LN65rSHXKNjr4eypyxT0WM/story.html This data is simply wrong/out of date for urban/suburban areas of medi...
by delamer
Tue Dec 04, 2018 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Will we make it saving only in employer plans?
Replies: 58
Views: 4129

Re: Will we make it saving only in employer plans?

Once you are retired, you’ll definitely no longer have these (current) expenses: Payroll taxes Commuting costs Retirement savings Day care costs So even if nothing else changes, your expenses will drop significantly. And if you plan right, you will no longer have a mortgage (no P&I). You will have S...
by delamer
Mon Dec 03, 2018 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5062

Re: Out of Stocks to Pay Off Mortgage

You are missing the point of insurance. It designed to provide coverage against catastrophic loss. Which I don't need or want... My insurance is the fact that I can afford to rent or buy another house plus the 1000 compounded I put away every year into my AA. We can agree to disagree on this. We ar...
by delamer
Mon Dec 03, 2018 5:48 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns is Signing Off -- He'll be missed
Replies: 31
Views: 9090

Re: Scott Burns is Signing Off -- He'll be missed

ShaunSCO wrote:
Mon Dec 03, 2018 2:59 pm
Good afternoon. I'm new to the forum (as of today), and thought you'd like to know that Scott Burns is back online at:

https://couchpotatoinvesting.com/
Great news!

Thanks.
by delamer
Mon Dec 03, 2018 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5062

Re: Out of Stocks to Pay Off Mortgage

At the risk of being skewered alive, one benefit to paying off mortgage is to not pay for homeowner's insurance going forward. Others are: 2. Fewer assets exposed to creditors, suers (if home is under 250-500k) 3. Simplicity 4. Higher risk adjusted return (Do you hold ANY bonds yield under 4.65%? E...
by delamer
Mon Dec 03, 2018 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Out of Stocks to Pay Off Mortgage
Replies: 73
Views: 5062

Re: Out of Stocks to Pay Off Mortgage

At the risk of being skewered alive, one benefit to paying off mortgage is to not pay for homeowner's insurance going forward. Others are: 2. Fewer assets exposed to creditors, suers (if home is under 250-500k) 3. Simplicity 4. Higher risk adjusted return (Do you hold ANY bonds yield under 4.65%? E...
by delamer
Mon Dec 03, 2018 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3819

Re: Basic Bucket Theory

Ok, after reading all the comments (thank you all) regarding my initial idea of having several buckets I have a new plan... Bucket 1: 2 years of living expenses in a money market fund. Bucket 2: 25 years of living expenses with this allocation: 40% vtsax, 10% vtiax, 50% vbtlx I will be retiring in ...
by delamer
Mon Dec 03, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Adjusting annual withdrawal % based on previous year performance
Replies: 3
Views: 327

Re: Adjusting annual withdrawal % based on previous year performance

It isn’t clear if you want to use a variable withdrawal rate or if you are talking about the 4% constant method. The 4% constant SWR doesn’t take into account your portfolio performance from year to year. It is 4% of your portfolio value at retirement. That dollar amount is adjusted each year for in...
by delamer
Mon Dec 03, 2018 10:53 am
Forum: Investing - Theory, News & General
Topic: Older Dads - how do you plan for your own retirement while still raising kids?
Replies: 38
Views: 5083

Re: Older Dads - how do you plan for your own retirement while still raising kids?

I’m not sure if it is any harder for older parents. Should be easier as you have more time to let the education funds compound before you need it. You basically just deferred the expense to a later point in life. May have made you feel richer than you were. I don’t think there is any secret to this...
by delamer
Mon Dec 03, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Park large sum for limited time
Replies: 5
Views: 469

Re: Park large sum for limited time

We currently have money we need for a house downpayment in the settlement fund. I don’t know the answers to your questions, but will you really need all the money on very short notice? Surely a week’s notice would be enough time to get access? Given that you are talking about 6 months, have you figu...
by delamer
Sun Dec 02, 2018 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Changing asset allocation when saving for big expenses?
Replies: 10
Views: 982

Re: Changing asset allocation when saving for big expenses?

We have one asset allocation for retirement money.

We have separate asset allocations for money going toward other savings goals, like paying for college.

Does that help?
by delamer
Sun Dec 02, 2018 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: Buying service years in pension
Replies: 18
Views: 1557

Re: Buying service years in pension

The other thing to look at is how much of your expected retirement expenses will be covered by current pension and Social Security benefits. If your current benefits will cover a high percentage of your expenses (say 70% or more), than the need to annuitize more income is low. If, however, your curr...
by delamer
Sun Dec 02, 2018 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Trying not to use the term timing, but...
Replies: 23
Views: 1855

Re: Trying not to use the term timing, but...

I seem to have an odd risk tolerance. I prefer to hold higher amounts of stocks versus bonds, however here I am asking for thoughts on making a pretty substantial eggs in one basket move. I don’t want to offend a new poster. But what you are describing just makes no sense, especially given that you...
by delamer
Sun Dec 02, 2018 11:50 am
Forum: Personal Consumer Issues
Topic: FIOS cost after initial deal ?
Replies: 7
Views: 673

Re: FIOS cost after initial deal ?

We’ve had FIOS for 5 years — internet, phone, TV.

We are paying $10 more per month in base price than with the initial 2-year contract.
by delamer
Sun Dec 02, 2018 11:36 am
Forum: Personal Consumer Issues
Topic: declining employer benefits?
Replies: 36
Views: 3981

Re: declining employer benefits?

Obamacare subjects a company to a $100/day/employee penalty for reimbursing an employee purchased healthcare plan. Starting in 2017 an exception was added that allows a company that does not offer a group health plan and has < 50 employees to offer a Qualified Small Employer Health Reimbursement Ar...
by delamer
Sun Dec 02, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: My mutual funds are declining, please help!
Replies: 54
Views: 5110

Re: My mutual funds are declining, please help!

people are afraid of crashes because it can potentially cause financial ruin even if you stay the course... 2000-2013 was flat inflation adjusted, that is 13 whole years with nothing to show for it while taking substantial capital risk. If one would've sinply put their money in a risk free CD they ...
by delamer
Sun Dec 02, 2018 10:50 am
Forum: Personal Consumer Issues
Topic: declining employer benefits?
Replies: 36
Views: 3981

Re: declining employer benefits?

Obamacare subjects a company to a $100/day/employee penalty for reimbursing an employee purchased healthcare plan. Starting in 2017 an exception was added that allows a company that does not offer a group health plan and has < 50 employees to offer a Qualified Small Employer Health Reimbursement Ar...
by delamer
Sun Dec 02, 2018 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Budgeting strategies
Replies: 21
Views: 1818

Re: Budgeting strategies

We save 50% of our gross income. We aren't too concerned about how we spend the remainder as long as we don't go into debt. The '50-30-20' rule doesn't make sense to me. Who cares how much of your income is spent on discretionary versus non-discretionary items? What really matters, at least when it...
by delamer
Sat Dec 01, 2018 3:48 pm
Forum: Personal Consumer Issues
Topic: declining employer benefits?
Replies: 36
Views: 3981

Re: declining employer benefits?

Well I'm probably just stuck keeping their standard offering even though the premiums are $3000/year more and losing the HSA reduces my tax advantaged space by $7000/year. I figure that sets me back $3000-$4000 per year in the overall scheme. We had verbally agreed on a salary, but I think I will h...
by delamer
Sat Dec 01, 2018 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Too Much Savings Regret
Replies: 112
Views: 16918

Re: Too Much Savings Regret

Too much savings can be hard to determine because of the uncertainties of life. Someone could lose their job well before retirement or they or loved ones could get an illness resulting in major expenses. Statistics show that a significant percentage of people retire prior to their planned retiremen...
by delamer
Sat Dec 01, 2018 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Too Much Savings Regret
Replies: 112
Views: 16918

Re: Too Much Savings Regret

Too much savings can be hard to determine because of the uncertainties of life. Someone could lose their job well before retirement or they or loved ones could get an illness resulting in major expenses. Statistics show that a significant percentage of people retire prior to their planned retiremen...
by delamer
Fri Nov 30, 2018 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3819

Re: Basic Bucket Theory

Ok, I am a bit confused. So if I understand some of the criticism, it is that I am making this too complex. So instead I could, hypothetically, add my different allocations up... for example if I had 3 buckets with these allocations 80/20, 50/50, 20/80 I could just have 1 bucket that is 50/50 and t...
by delamer
Fri Nov 30, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting strategies
Replies: 21
Views: 1818

Re: Budgeting strategies

If spending has increased in certain flexible categories, you may want to simply budget those categories, at least to start. For example, you can say $200/ month for eating out and then STOP eating out when you hit the limit. Another good strategy is to look at regular bills and focus on lowering t...
by delamer
Fri Nov 30, 2018 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3819

Re: Basic Bucket Theory

We are using the lazy portfolio theory here and trying to think thru the bucket approach. Bucket 1: 2 years worth of living expenses invested in a money market. Bucket 2: 7 years worth of living expenses invested LifeStrategy 20/80 Bucket 3: 10 years of living money invested in LifeStrategy 60/40 B...
by delamer
Fri Nov 30, 2018 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Is Wells Fargo doing a bait and switch with mortgage rate?
Replies: 24
Views: 2168

Re: Is Wells Fargo doing a bait and switch with mortgage rate?

You need to be sure that you have details on the closing costs in order to compare the loan offers.

We also are talking to lenders about mortgages now.

Some charge points, origination fees, commitment fees, processing fees, etc. A lender can inflate those is to keep its interest rate down.
by delamer
Thu Nov 29, 2018 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Buying with no interest
Replies: 22
Views: 2023

Re: Buying with no interest

The advantage of the 0% financing is keeping a portion of your money invested. I suspect that the actual dollars that you would gain with 2% interest (for 6 months or a year) is trivial. Even $10,000 at 2% for a whole year is just $200.

Not to mention that you lose your reward card benefits.
by delamer
Thu Nov 29, 2018 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: My 401k isn't making any money
Replies: 35
Views: 4280

Re: My 401k isn't making any money

This S&P500 index is up 16% from April 1, 2017 through today. So what is it that you are investing in that you have lost money? Particularly since presumably have been making regular contributions during that period. I may have misspoke - I guess I meant from Nov '17. The small contributions from A...
by delamer
Thu Nov 29, 2018 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: My 401k isn't making any money
Replies: 35
Views: 4280

Re: My 401k isn't making any money

This S&P500 index is up 16% from April 1, 2017 through today.

So what is it that you are investing in that you have lost money?

Particularly since presumably have been making regular contributions during that period.
by delamer
Thu Nov 29, 2018 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage/Debt to Income Issues due to Car Loan
Replies: 20
Views: 1101

Re: Mortgage/Debt to Income Issues due to Car Loan

So I made a bit of a mistake a couple of years ago in buying a new car for a 2.6% apr for 7 years with a payment of $635/mo. after already having bought a different new car a year before. I don't mean this to sound harsh but that sounds like around a $50,000 car, and sometimes mistakes have consequ...
by delamer
Wed Nov 28, 2018 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation—no bonds at all for a young(ish) and broke(ish) investor?
Replies: 49
Views: 2775

Re: Asset allocation—no bonds at all for a young(ish) and broke(ish) investor

Also, personally, I prefer to limit exposure to bonds — particularly corporate bonds. I have a higher-than-average stock allocation for my age, but also a higher cash allocation and a bit of government bonds. The idea being to take risk via stocks and minimize it via bonds (by avoiding corporate). ...
by delamer
Wed Nov 28, 2018 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: 25k Bonus - Tax Consequences?
Replies: 20
Views: 2339

Re: 25k Bonus - Tax Consequences?

You can estimate the federal tax on your bonus by downloading the TaxCaster app.

Enter you base salaries and other information to get the tax on it. Then add your bonus and see what the difference is.

This doesn’t reflect payroll taxes and state taxes, of course.
by delamer
Wed Nov 28, 2018 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: My mutual funds are declining, please help!
Replies: 54
Views: 5110

Re: My mutual funds are declining, please help!

This feels like a good time to put the Bogleheads Investment book I read years ago to use! I think you should re-read that book, because you've apparently forgotten most of it. :) Hear, hear! Assuming that this is retirement money, than you need to take a long-term view. If the money is for some ot...
by delamer
Wed Nov 28, 2018 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation—no bonds at all for a young(ish) and broke(ish) investor?
Replies: 49
Views: 2775

Re: Asset allocation—no bonds at all for a young(ish) and broke(ish) investor

wizardling: listen to what Watty, and others, say. I can promise you that many of those people advising you to go 100% stocks will panic and sell their own stock holdings when there is a decline of 20% or more. Some will be able to “stay the course” and keep invested but others won’t. It is very di...
by delamer
Wed Nov 28, 2018 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Asset allocation—no bonds at all for a young(ish) and broke(ish) investor?
Replies: 49
Views: 2775

Re: Asset allocation—no bonds at all for a young(ish) and broke(ish) investor?

It is important to understand why you have bonds in a portfolio. It may feel like they are just an anchor to slow you down but their role is to reduce the volatility of the portfolio. It is easy for people to say that they will be OK if their 401k drops 50% but there is a very real risk that when t...
by delamer
Wed Nov 28, 2018 10:21 am
Forum: Personal Finance (Not Investing)
Topic: What's your safety number?
Replies: 24
Views: 2385

Re: What's your safety number?

I don’t understand this concept of a safety number.

Are you talking about how much we let sit in cash equivalents — after paying our taxes, making retirement contributions, and covering living expenses — before investing it in stocks/bonds?
by delamer
Wed Nov 28, 2018 12:30 am
Forum: Investing - Help with Personal Investments
Topic: Just retired...need to move money from company 457 plan
Replies: 7
Views: 809

Re: Just retired...need to move money from company 457 plan

Here are some suggestions using low cost, index funds: https://www.bogleheads.org/wiki/Lazy_portfolios Your risk tolerance and other assets/sources of income should be key factors in how much to hold in stocks versus bonds. You can adjust the weight for stocks/bonds in these portfolios depending on ...
by delamer
Mon Nov 26, 2018 11:22 pm
Forum: Personal Finance (Not Investing)
Topic: Using equity in my current home to help buy my next one?
Replies: 7
Views: 1108

Re: Using equity in my current home to help buy my next one?

So you have found the apartment that you want to buy already? It still is possible to get a bridge loan to allow you to buy the new place before you sell the old: https://www.thebalance.com/what-are-bridge-loans-1798410 You could check with the holder of your current mortgage and see if they offer b...
by delamer
Mon Nov 26, 2018 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: I don't know what to do with my money. Advice?
Replies: 40
Views: 4303

Re: I don't know what to do with my money. Advice?

Thanks! I'll learn what you mean by "3 fund portfolio" ... thanks for this advice. I'm probably going to work until 75, but I don't plan to live in this house. I plan to sell it and move into a low cost area about an hour outside of DC. Because I'm not going to live in it permanently and will sell ...
by delamer
Mon Nov 26, 2018 10:39 pm
Forum: Investing - Theory, News & General
Topic: Is today a bad time to rebalance?
Replies: 18
Views: 2251

Re: Is today a bad time to rebalance?

Stocks may go down in the short term, but the long term trend for stocks always is up.

Pick an allocation and rebalance either once a year or when your allocation is off by a target percentage (like more than 5%).

You are overthinking the process.
by delamer
Mon Nov 26, 2018 10:33 pm
Forum: Personal Finance (Not Investing)
Topic: Student Debt
Replies: 11
Views: 977

Re: Student Debt

Until you are married, this debt is for your girlfriend to manage. Let her do the legwork on refinancing or loan forgiveness plans that she might be eligible for. It is fine to discuss the impact on your future joint finances, but remember that is is her issue to deal with for now. Don’t take respon...
by delamer
Mon Nov 26, 2018 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: What financial information do you share with your family and relatives?
Replies: 112
Views: 9717

Re: What financial information do you share with your family and relatives?

All over thanksgiving I had helped my cousin who we rarely communicate in person with his 401K. We reviewed his investments and he was overexposed with Employee stock and under invested in mutual funds. We set up online portfolio using Morningstar Portfolio Manager and I inputted my entire portfoli...
by delamer
Mon Nov 26, 2018 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: I don't know what to do with my money. Advice?
Replies: 40
Views: 4303

Re: I don't know what to do with my money. Advice?

with everything you said, I would start adding $4-6K per month into a taxable account, using 3 fund portfolio, and use the other $2-4K to pay down mortgage, since it is such a high amount at your age. You really need to max out that 401K, only 200K at your age is not enough. Hate paying down a mort...
by delamer
Mon Nov 26, 2018 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage application: Disclosing All Assets?
Replies: 17
Views: 2096

Re: Mortgage application: Disclosing All Assets?

We applied for a loan, and to get pre-qualified for our builder, today. I gave the banker income, debts, and assets in taxable accounts and then he stopped me. He said there was no need for any other asset information; it was just more paperwork to submit (for us) and review (for them). He suggested...
by delamer
Mon Nov 26, 2018 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: I don't know what to do with my money. Advice?
Replies: 40
Views: 4303

Re: I don't know what to do with my money. Advice?

A savings plan that rests on your continuing to work until age 75 needs to have a serious backup plan. The odds are against you being able to work until then. Physical health, mental cognition, and/or employment offers at your current earnings level are simply not all likely to be present at that ag...