Search found 2656 matches

by Bacchus01
Thu Sep 21, 2017 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 183
Views: 23640

Re: Let's talk about your FI # and family income [Financial Independence]

I like this format someone else posted: Current Situation married, 3 kids, 20 year career, now exec mgmnt annual W2 income - six figures annual expenses - 28% of income net worth including property - 5.5x annual income.10x annual expenses. Our target FI number is $10M. Yeah, I know, that's high, but...
by Bacchus01
Thu Sep 21, 2017 7:54 am
Forum: Investing - Theory, News & General
Topic: What inflation rate do you use for your planning?
Replies: 105
Views: 10700

Re: What inflation rate do you use for your planning?

I'm digging this thread up because I was just thinking about this very issue. I had always planned with 3% inflation and a 5% long-term real return given fairly aggressive portfolio holdings. I really liked all the analysis above. It helped put some perspective on things. The historical rate of infl...
by Bacchus01
Wed Sep 20, 2017 1:52 am
Forum: Personal Finance (Not Investing)
Topic: 30yr Mortgage Refi Rates
Replies: 16
Views: 3020

Re: 30yr Mortgage Refi Rates

I'm surprised a banker would even say such a thing without understanding more details.

A half percent on many loans could easily cover closing costs.

I'd refinance every week if the differential had a payback under 12 months
by Bacchus01
Thu Sep 07, 2017 5:34 am
Forum: Personal Finance (Not Investing)
Topic: How to buy raw (unimproved) land?
Replies: 34
Views: 4967

Re: How to buy raw (unimproved) land?

Find a land specialist investor. I've done this. I used a company that is now part of Compeer Financial. I got a 20 year with 10% down for like 2.75%. There are options out there. Your local place is likely not great at it. BTW, my experience with Compeer has been EXCELLENT This is the information ...
by Bacchus01
Thu Sep 07, 2017 5:30 am
Forum: Investing - Theory, News & General
Topic: Do retiree BHs actually run down their portfolios?
Replies: 73
Views: 10405

Re: Do retiree BHs actually run down their portfolios?

So, 4% is a safe withdrawal rate but 5% is insane reckless folly?

I don't believe I follow that logic very well. Huh?
by Bacchus01
Thu Aug 31, 2017 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: How to buy raw (unimproved) land?
Replies: 34
Views: 4967

Re: How to buy raw (unimproved) land?

pshonore wrote:
Thu Aug 31, 2017 9:15 am
One other fact, interest paid on a "raw land" mortgage is not deductible for tax purposes until you start construction for a personal residence.
However, if you treat raw land as an investment, you can add that interest to the basis which creates a future tax deduction essentially
by Bacchus01
Wed Aug 30, 2017 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: How to buy raw (unimproved) land?
Replies: 34
Views: 4967

Re: How to buy raw (unimproved) land?

I just checked "Compeer Financial" and they don't offer loans where I bought from. But by all means if you think you can get a 2.75% interest rate on a raw land purchase (which is, btw, lower than even a house mortgage interest rate) then absolutely try that route. Are you suggesting I'm lying? I b...
by Bacchus01
Wed Aug 30, 2017 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Living Expenses - what's "reasonable"?
Replies: 101
Views: 12060

Re: Living Expenses - what's "reasonable"?

For a family of 5, we spend $25K per person per year all-in (food, shelter, etc.) excluding savings.

I would expect that for 2 of us, that number would be a bit higher at around $30k per person per year. In retirement, I'm planning for $45K per pers per year (in today's dollars)
by Bacchus01
Wed Aug 30, 2017 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: What should the savings be for an average professional
Replies: 168
Views: 22782

Re: What should the savings be for an average professional

I was talking to a friend who am I open with about money topics and issues. We got talking about how much an average earning professional like an engineer or accountant should have saved after working for 20 years. To keep things simple, we just talked about a single earner family. Obviously there ...
by Bacchus01
Wed Aug 30, 2017 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: How to buy raw (unimproved) land?
Replies: 34
Views: 4967

Re: How to buy raw (unimproved) land?

Find a land specialist investor. I've done this.

I used a company that is now part of Compeer Financial. I got a 20 year with 10% down for like 2.75%.

There are options out there. Your local place is likely not great at it. BTW, my experience with Compeer has been EXCELLENT
by Bacchus01
Wed Aug 30, 2017 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: What should the savings be for an average professional
Replies: 168
Views: 22782

Re: What should the savings be for an average professional

Average professionals don't save 20%+ of their income. Average professionals don't LBTM. Average professionals are reflected in the oft-quoted statistics about not being able to come up with $500 in cash for an emergency: https://www.cbsnews.com/news/most-americans-cant-afford-a-500-emergency-expen...
by Bacchus01
Wed Aug 30, 2017 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: What should the savings be for an average professional
Replies: 168
Views: 22782

Re: What should the savings be for an average professional

Can't comment on how much someone in that scenario SHOULD have, but this thread sure makes me very glad to be part of a DINK couple. Even in a HCOL area, with a HS diploma/AA degree my SO and I lucky enough to have 2X gross annual income saved at age 30/26. If we have kids down the line (35/31) we ...
by Bacchus01
Wed Aug 30, 2017 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: What should the savings be for an average professional
Replies: 168
Views: 22782

Re: What should the savings be for an average professional

I was talking to a friend who am I open with about money topics and issues. We got talking about how much an average earning professional like an engineer or accountant should have saved after working for 20 years. To keep things simple, we just talked about a single earner family. Obviously there ...
by Bacchus01
Mon Aug 28, 2017 9:55 pm
Forum: Investing - Theory, News & General
Topic: too much money in indexes?
Replies: 19
Views: 4540

Re: too much money in indexes?

If everyone indexed there would be no active trading. No active trading means no price changes. No price changes mean your returns are dividend based only. While that's the extreme, it could end up muting returns. I don't think that is what would happen. There would still be money flowing in and ou...
by Bacchus01
Sun Aug 20, 2017 9:49 pm
Forum: Investing - Theory, News & General
Topic: too much money in indexes?
Replies: 19
Views: 4540

Re: too much money in indexes?

When you see more than 50% active funds consistently beating an appropriate index after fees, the tide will turn . I will then join the active crowd. I don't see that happening anytime soon. Dale If everyone indexed there would be no active trading. No active trading means no price changes. No pric...
by Bacchus01
Sun Aug 20, 2017 9:42 pm
Forum: Investing - Theory, News & General
Topic: I own no international stocks. Can you guess why?
Replies: 167
Views: 21265

Re: I own no international stocks. Can you guess why?

Because you've moved out of equities altogether. You've won the game and based on your advanced age, why take risk?
by Bacchus01
Fri Aug 18, 2017 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Jobs that pay over $100,000
Replies: 157
Views: 21087

Re: Jobs that pay over $100,000

Private Equity. Get a finance degree and make $100K quick. But, work like a slave to get there.
by Bacchus01
Fri Aug 18, 2017 5:59 pm
Forum: Personal Investments
Topic: Investments that Colleges Don't Count Against You.
Replies: 18
Views: 4222

Re: Investments that Colleges Don't Count Against You.

What if I start a small company, an LLC and invest everything in it and take a small salary. How does that get counted?

What if I defer my compensation under a non qual deferred compensation plan at work?
by Bacchus01
Thu Aug 17, 2017 10:04 pm
Forum: Personal Investments
Topic: Should I roll over my old 401k?
Replies: 9
Views: 1266

Re: Should I roll over my old 401k?

In another, locked, thread, someone made this comment: The latest report from GAO criticized service providers for encouraging terminated employees to rollover to an IRA as opposed to leaving the assets in the plan or rolling over to the plan at the new employer. Why would I NOT want to roll over m...
by Bacchus01
Thu Aug 17, 2017 9:29 pm
Forum: Personal Consumer Issues
Topic: Is it worth it? [demanding jobs vs time with family]
Replies: 182
Views: 16693

Re: Is it worth it?

There are a lot of factors that could be at play, but could your household run on just the husband's income? I'm assuming he alone makes at least 6-figures, why not you stay home and raise the children? There should be nothing more important to the two of you than family. As you may have inferred, ...
by Bacchus01
Thu Aug 17, 2017 8:47 pm
Forum: Personal Investments
Topic: Lost $7000 today in ONE DAY!
Replies: 183
Views: 20568

Re: Lost $7000 today in ONE DAY!

I wish it was only that. I'm not looking, but guessing closer to $40K

But, if it stays down tomorrow I'll TLH. Then in 20 years I'll forget about it.
by Bacchus01
Wed Aug 16, 2017 7:07 pm
Forum: Personal Investments
Topic: Backdoor Roth IRA
Replies: 12
Views: 1784

Re: Backdoor Roth IRA

I think the institutional index fund is about the best fund you can get. I'd move my IRA into the 401k for that alone. The backdoor Roth is just a bonus. Thanks for your input. The historical returns have BEN good and the expense ratio cannot be beat. Is it advisable to invest in an index fund in a...
by Bacchus01
Wed Aug 16, 2017 7:05 pm
Forum: Personal Consumer Issues
Topic: Credit score dropped 100 points overnight
Replies: 31
Views: 5579

Re: Credit score dropped 100 points overnight

A few months back we refinanced our house and I apparently had a past due medical bill. Credit score had dropped to 690! Got that cleared up and off my record. Bought a car two weeks ago. Credit score was 830. Same service.
by Bacchus01
Mon Aug 14, 2017 7:31 pm
Forum: Personal Investments
Topic: Backdoor Roth IRA
Replies: 12
Views: 1784

Re: Backdoor Roth IRA

I think the institutional index fund is about the best fund you can get. I'd move my IRA into the 401k for that alone. The backdoor Roth is just a bonus.
by Bacchus01
Mon Aug 14, 2017 12:57 pm
Forum: Personal Investments
Topic: Where to invest after maxing out, with a twist
Replies: 14
Views: 2757

Re: Where to invest after maxing out, with a twist

I did something similar a few years back. You are already ahead from a planning stage. We had moved several times, and sold a house, cashed some options, etc and pretty soon we're sitting on like $400K thinking "what the heck?" We had a mess of investments but no rhyme or reason and we had done noth...
by Bacchus01
Sat Aug 12, 2017 2:39 pm
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 168
Views: 19882

Re: What Percentage CASH are you?

We don't have a % target, but a dollar target. We try to hold around $100K in cash. Anything over that gets invested. $100K gives us flexibility to do just about anything we need to do, with enough buffer that we don't need to save up for it or liquidate an investment. Need a new car? Need to put a ...
by Bacchus01
Mon Aug 07, 2017 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: How do you deal with financial anxiety?
Replies: 40
Views: 4141

Re: How do you deal with financial anxiety?

Sorry if you thought I ignored you. Thank you for the input.

I was spending so much time defending not buying a Honda to those who completely missed the point.

You stated it better here.
by Bacchus01
Sun Aug 06, 2017 7:11 pm
Forum: Personal Investments
Topic: Forced Early Retirement - Advice Sought
Replies: 32
Views: 5378

Re: Forced Early Retirement - Advice Sought

I'm a little confused as I don't know if I saw all the details. What are you getting for severance? What are you getting as a stay bonus? It looks like that is just $30K? That seems very light at your salary and experience if it is both. I would expect severance AND a stay bonus. Based on your age, ...
by Bacchus01
Sun Aug 06, 2017 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

And I have enormous anxiety over the purchase. And I make over $400K a year. Why in the world do we have these anxieties? My mistake. I did not see the 400k salary. With that salary drive what ever you want, unless you are in deep debt. I would purchas the Tesla. Ride in style with great gas milage...
by Bacchus01
Sun Aug 06, 2017 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

This is more of an emotional rant, but I'm curious if other people have as much trouble spending and why that is. Current example. I drive a 2012 CPO BMW 528i XDrivr. Bought in 2014 with 18k mikes. It recently had a significant issue, covered under warranty, but is at 95k miles and about to run out...
by Bacchus01
Sun Aug 06, 2017 12:00 pm
Forum: Personal Investments
Topic: 529: possible to use $140k parental gift tax exemption twice within 5 years with two children?
Replies: 17
Views: 1839

Re: 529: possible to use $140k parental gift tax exemption twice within 5 years with two children?

I believe that changing a beneficiary to your kid is considered a gift and is limited to $14,000 total in the 529 or $70,000 if you use the five year contribution rule. I though the actual gifting took place when you changed beneficiaries to a new generation??? In other words, when you are both the...
by Bacchus01
Sun Aug 06, 2017 11:53 am
Forum: Personal Investments
Topic: 85/15 too aggressive at age 35?
Replies: 104
Views: 15518

Re: 85/15 too aggressive at age 35?

I think you are too aggressive at 87/13 at your ages. You might consider a maximum of 80/20. Although you weathered the last big market drop, you only had invested an amount basically equal to what you invest now in a single year. Not much of a test in my mind. And I think at 35 they are too conser...
by Bacchus01
Sun Aug 06, 2017 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

I never used to spend money on more frivolous things; no wants, just needs. Frankly not even on needs. My wife is more a spender than I. We gave ourselves an allowance to limit her spending. That allowance enabled me to spend on things I never would have: nice items supporting my hobbies like more ...
by Bacchus01
Sun Aug 06, 2017 8:24 am
Forum: Personal Investments
Topic: 529: possible to use $140k parental gift tax exemption twice within 5 years with two children?
Replies: 17
Views: 1839

Re: 529: possible to use $140k parental gift tax exemption twice within 5 years with two children?

I understand your question better. For yourself, you can contribute as much as the plan allows in one year. You are not limited to the $14/yr gift tax limits. I don't do that because I get a state tax deduction, so we only contribute annually up to the state tax deduction level for each account ($3,...
by Bacchus01
Sun Aug 06, 2017 8:20 am
Forum: Personal Investments
Topic: 529: possible to use $140k parental gift tax exemption twice within 5 years with two children?
Replies: 17
Views: 1839

Re: 529: possible to use $140k parental gift tax exemption twice within 5 years with two children?

Assuming your goal is to open 529s pre-birth, and then superfund afterbirth. 529 funding is debated here on BH (e.g. fund retirement/HSA first, etc etc). Assuming you want to stick with goal, your plan seems overly complicated. I'd suggest: Go ahead and open 2 529 now in parents' names. Each can re...
by Bacchus01
Sun Aug 06, 2017 8:09 am
Forum: Personal Finance (Not Investing)
Topic: Do you count vehicle equity in net worth?
Replies: 203
Views: 16215

Re: Do you count vehicle equity in net worth?

I'm kinda surprised that so many nominal Bogleheads don't seem to understand what Net Worth is, vis a vis Investible Assets. I thought that on average we had good financial literacy here. Oh well... Kind of ironic don't you think when you made up a definition of net worth that is totally incorrect ...
by Bacchus01
Sun Aug 06, 2017 8:04 am
Forum: Personal Investments
Topic: 529: possible to use $140k parental gift tax exemption twice within 5 years with two children?
Replies: 17
Views: 1839

Re: 529: possible to use $140k parental gift tax exemption twice within 5 years with two children?

Assuming your goal is to open 529s pre-birth, and then superfund afterbirth. 529 funding is debated here on BH (e.g. fund retirement/HSA first, etc etc). Assuming you want to stick with goal, your plan seems overly complicated. I'd suggest: Go ahead and open 2 529 now in parents' names. Each can re...
by Bacchus01
Sat Aug 05, 2017 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: First Home - How Much *Should* I spend?
Replies: 8
Views: 1362

Re: First Home - How Much *Should* I spend?

While I've lost money on two of our four houses, I would still tell my 20 something self "buy more house."

You spend so much time in it. Make it as nice as you can afford.
by Bacchus01
Sat Aug 05, 2017 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

You bought a 5 series BMW and think you have trouble spending? Obviously relative to your income that isn't a lot, but it isn't exactly a cheap car either. If you made $400k and were driving a 2003 Corolla I'd say you have trouble spending. Well, in perspective I paid about $36K for the BMW and $37...
by Bacchus01
Sat Aug 05, 2017 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

You bought a 5 series BMW and think you have trouble spending? Obviously relative to your income that isn't a lot, but it isn't exactly a cheap car either. If you made $400k and were driving a 2003 Corolla I'd say you have trouble spending. Well, in perspective I paid about $36K for the BMW and $37...
by Bacchus01
Sat Aug 05, 2017 3:48 pm
Forum: Personal Investments
Topic: 85/15 too aggressive at age 35?
Replies: 104
Views: 15518

Re: 85/15 too aggressive at age 35?

I think you are too aggressive at 87/13 at your ages. You might consider a maximum of 80/20. Although you weathered the last big market drop, you only had invested an amount basically equal to what you invest now in a single year. Not much of a test in my mind. And I think at 35 they are too conser...
by Bacchus01
Fri Aug 04, 2017 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

Do you have this anxiety over every car/large purchase? Or, has it just started with this one? It has definitely changed over time. I used to fret over buying a new TV for $1K. Not so much. Ironically, I have zero anxiety on buying a house. Own three properties and looking for more. Have no anxiety...
by Bacchus01
Fri Aug 04, 2017 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

110 mile daily commuting, a new Honda Civic Type R fits you very well. Fun, reliable, and exciting. Can't buy honda. They compete with part of my business in another business. I'm brand passionate and will not support competitors anywhere. Also, the small cars are louder and are not as stable at hi...
by Bacchus01
Fri Aug 04, 2017 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

My experience with those brands has been overall excellent. Other than the BMW you're trying to get rid of! My experience is that Ford is the most reliable brand and that I will only need two in my lifetime, despite driving about 18,000 miles per year. But the statistics don't bear my experience ou...
by Bacchus01
Fri Aug 04, 2017 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

110 mile daily commuting, a new Honda Civic Type R fits you very well. Fun, reliable, and exciting. Can't buy honda. They compete with part of my business in another business. I'm brand passionate and will not support competitors anywhere. Also, the small cars are louder and are not as stable at hi...
by Bacchus01
Fri Aug 04, 2017 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

Truth is at your salary it's no big deal. But I think the anxiety stems from realizing your commuting costs are pretty expensive. No one likes to throw money away (in this case a new car every few years), regardless of how much they make. Didn't read all the comments but I'm assuming moving closer ...
by Bacchus01
Fri Aug 04, 2017 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

Do you have this anxiety over every car/large purchase? Or, has it just started with this one? It has definitely changed over time. I used to fret over buying a new TV for $1K. Not so much. Ironically, I have zero anxiety on buying a house. Own three properties and looking for more. Have no anxiety...
by Bacchus01
Fri Aug 04, 2017 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

This is more of an emotional rant, but I'm curious if other people have as much trouble spending and why that is. <car purchase example> Why in the world do we have these anxieties? Leaving aside the specifics of the car purchase, have you ever done any reading in behavioral economics? Books like D...
by Bacchus01
Fri Aug 04, 2017 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

I thought of buying a commuter and a truck or SUV, but I'm kind of out of space to park them at our current place. I have a 3 car but it is full with my and my wife's car and the third bay contains a restored 1940 Ford Pickup that has been in my family for 77 years. And my 16 year old will probably ...
by Bacchus01
Fri Aug 04, 2017 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7827

Re: Anyone else have trouble spending?

Nowizard wrote:My apologies if the comment was not clear, but it was intended to convey that the anxiety might be related to considering purchase of what is rated as a less than reliable vehicle as part of it.

Tim

No worries. Reliability concern is not even factoring into my anxiety.