Search found 325 matches

by Tal-
Wed Jan 11, 2017 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: $600,000. Now what?
Replies: 55
Views: 11867

Re: $600,000. Now what?

First, congrats. I'm sure that much of how you got here is luck, but much of it is also hard work, frugal living, and research. It's not a path that I would advocate, but it has worked out for you thus far. So, an honest congratulations for being off to a good start on a long journey. Now, to your q...
by Tal-
Thu Jan 05, 2017 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: selling property without real estate agent
Replies: 19
Views: 1869

Re: selling property without real estate agent

Yes, you can. And in this case, it probably makes sense to do the deal without an agent. The two parties will need to develop and sign a contract. A standard real estate contract is available via Google, but you could also draft something in Word and be just fine. You should specify: Price Closing D...
by Tal-
Wed Jan 04, 2017 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: Sell or Refinance/Rent Condo?
Replies: 6
Views: 768

Re: Sell or Refinance/Rent Condo?

I'd probably sell. As a rental, it's not a great investment. A positive cashflow of $300-$400/month in an ideal month on a 280K house is only slightly better than breaking even when you factor in long-term costs. When you factor in that you would need to refi, do not have a PM, do not have an intere...
by Tal-
Wed Jan 04, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: How much term life insurance?
Replies: 12
Views: 1305

Re: How much term life insurance?

And on your point about my net worth - I graduated from business school 3 and a half years ago, which has two implications: 1) I've only had this income for a few years (and, in fact, was closer to $175k three years ago out of business school, so I haven't been at my current income level for even t...
by Tal-
Tue Jan 03, 2017 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: How much term life insurance?
Replies: 12
Views: 1305

Re: How much term life insurance?

You're probably in the right range. I could be talked into anything from $1M to 3M. This means that $2M is a viable number, but going up another $1M doesn't seem unreasonable. If you do increase your life insurance, I would go with a shorter term than 30 years. I think a 10 or 20 year plan for 1M on...
by Tal-
Sun Jan 01, 2017 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Buy or keep renting in Manhattan?
Replies: 25
Views: 4037

Re: Buy or keep renting in Manhattan?

Rent. Normally, this is a nuanced decision in my eyes - but this one feels pretty clear... Buying introduces huge risk to your long-term financial security, and it is risk that would be highly correlated with both your liquid assets and income. Congrats on your wonderful financial situation. But, I ...
by Tal-
Sat Dec 31, 2016 1:51 am
Forum: Personal Finance (Not Investing)
Topic: Landlord Insurance - What To Look For?
Replies: 4
Views: 548

Re: Landlord Insurance - What To Look For?

1. What should I look for when shopping for landlord insurance? property damage, liability insurance are in my list of things to cover. The coverage is basically the same as for your primary - though you will want to expand your liability coverage. 2. How much damage should the insurance cover? The ...
by Tal-
Fri Dec 30, 2016 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Intro & Critique of portfolio
Replies: 9
Views: 1258

Re: Intro & Critique of portfolio

You're in great shape, but here are my thoughts: 1 - Congrats on the kiddo! 2 - You can't go wrong either way, but I'd would probably prioritize taxable accounts (stocks/bonds) over your student debt. This is largely due to the upcoming kiddo, and partly due to the need for flexibility. Either way, ...
by Tal-
Fri Dec 30, 2016 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for staying the course
Replies: 20
Views: 2418

Re: Advice for staying the course

I write it down. In addition to writing down my short term goals, long term goals, and plans for the coming year, I write down my own views. For me, I believe in dollar cost averaging. I believe that a balanced portfolio will increase in value over the long term. I believe that the price of an asset...
by Tal-
Fri Dec 30, 2016 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Monthly Expenses in line or too much
Replies: 81
Views: 8797

Re: Monthly Expenses in line or too much

I try to keep track of my expenses and see that my expenses are around 4700 per month, not including mortgage. It does include pretty much everything else . Kids are in good public schools ( thankfully ) so no private school expenses . We drive older cars so do have a few hundred dollars yearly in ...
by Tal-
Fri Dec 30, 2016 12:38 am
Forum: Personal Consumer Issues
Topic: When is it "OK" to get a car loan?
Replies: 42
Views: 4470

Re: When is it "OK" to get a car loan?

- But third, you you shouldn't dip into an emergency fund for a hobby. You shouldn't dip into it $50k to buy the Porche outright, and you shouldn't dip into it $15K to pay the difference between the two. This is not what an emergency fund is for! I believe the Boglehead rule of thumb is to have a m...
by Tal-
Thu Dec 29, 2016 3:52 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin Purchase
Replies: 99
Views: 14410

Re: Bitcoin Investment

I've made similar "investments" in gold, but not Bitcoin. The two are similar in several ways: both fun to have, high speculative, highly volatile, and variations on "money." And while I do not feel that gold is a good investment, I think Bitcoin is a silly investment. Twenty years from now, Bitcoin...
by Tal-
Thu Dec 29, 2016 3:32 pm
Forum: Personal Consumer Issues
Topic: When is it "OK" to get a car loan?
Replies: 42
Views: 4470

Re: When is it "OK" to get a car loan?

I don't mean to get caught up in word-choice, but I don't think you can afford the Porche. Hear me out... First, you should sell the Viper before buying another car. That's the obvious part. The second, and almost as obvious part is that you shouldn't take out a loan for a hobby. Easy peesy. But thi...
by Tal-
Mon Dec 19, 2016 12:46 am
Forum: Personal Finance (Not Investing)
Topic: Buying Rental Property w/Cash
Replies: 4
Views: 1007

Re: Buying Rental Property w/Cash

Yes - I've purchased using cash and then financed using the delayed financing rules. It's a sound strategy, but has a lot of pitfalls! First, very few banks play with delayed financing. Virtually all of them instead stick with the standard refinancing rules, which have different guidelines. Second, ...
by Tal-
Fri Dec 16, 2016 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning Advice PLEASE
Replies: 16
Views: 2623

Re: Retirement Planning Advice PLEASE

Welcome to the forum. A lot going on here. Here are my thoughts: 1- You need to: 1 - drastically decrease your exposure to real estate, 2 - Keep working for several more years, or 3 - get lucky with them. 2 - Ignore the prices you paid for the properties... that's mostly irrelevant to today's decisi...
by Tal-
Tue Dec 13, 2016 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Trust fund for under 100k [finding a trustee]
Replies: 9
Views: 995

Re: Trust fund for under 100k [finding a trustee]

The funds are to be used for the children's educational, medical and extracurricular expenses. They are currently 1 and 2 years of age. This is helpful. Here's what I'd propose: At 100K, finding a paid third-party to act as the trustee is not a good idea. This is in part due to expenses, and in par...
by Tal-
Tue Dec 13, 2016 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Trust fund for under 100k [finding a trustee]
Replies: 9
Views: 995

Re: Trust fund for under 100k [finding a trustee]

I'm talking out of my pay grade on this, but I think my read of a trust is a bit different than yours. My take is that the trustee does more than just distribute funds. Specifically, they must manage the funds in a specific way (generally following an approximation of some standard portfolio/allocat...
by Tal-
Wed Dec 07, 2016 9:08 am
Forum: Personal Finance (Not Investing)
Topic: HELP: salary negotiation
Replies: 17
Views: 2914

Re: HELP: salary negotiation

Hey there, Congrats on the new job offer! Regardless of outcome, that should feel good. I do think that you can, and probably should negotiate a higher salary. Here's how I would suggest doing so: 1: Always lead, and close with affirmations that you want the job, and are excited about the job. The s...
by Tal-
Tue Nov 29, 2016 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Turning Primary Residence Into a Rental
Replies: 16
Views: 2011

Re: Turning Primary Residence Into a Rental

- 2BR/2BA Townhouse (in a HCOL city center) - purchase price: ~$650k (2012) - mortgage: ~$440k (remaining), 30 yr, 3.5% fixed - PITI (plus HOA fee): $3000/mo. - estimated rent: $3500 - $3750 /mo. I wouldn't. The ROI is marginal for a concentrated risk and your equity is based on a generally hot "se...
by Tal-
Tue Nov 29, 2016 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Rate Question
Replies: 7
Views: 928

Re: Tax Rate Question

Your heart is clearly in the right place, but your analysis is missing, in my opinion, two big things. The first is the difference between marginal tax rate (the % you pay on the last dollar earned) vs effective tax rate (the average % paid on all dollars earned). Lots of people misunderstand the di...
by Tal-
Mon Nov 28, 2016 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Should We Buy or Rent?
Replies: 49
Views: 6295

Re: Should We Buy or Rent?

I have a pretty clear "rent" view on this. Here's why: 1: Your income is insufficient to justify the price tag. 2: Your income is not stable enough to justify the ongoing obligation (one income, in a profession with a lot of turnover). 3: Rent is cheaper, by far, per month than a mortgage. 4: Your a...
by Tal-
Tue Oct 25, 2016 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Help with 66yr old mother
Replies: 28
Views: 3723

Re: Help with 66yr old mother

Fun topic. Here are my thoughts, as a FAQ. What is the correct stock/bond allocation? Given that the chances of her needing income from her investments is small, I would be fairly stock-heavy with this. Something like 70/30 feels right to me. However, I would never go high enough that she couldn't s...
by Tal-
Tue Oct 25, 2016 7:54 am
Forum: Investing - Help with Personal Investments
Topic: Real estate investing....thoughts
Replies: 19
Views: 3701

Re: Real estate investing....thoughts

To invest in property directly (i.e. rentals), you need several things, including time. In my experience, you can farm out 90% of the work once things are up-and-running, but getting in the game is a lot of work if you want to buy right. I work reasonable hours, and real estate has been a wonderful ...
by Tal-
Fri Oct 21, 2016 9:36 am
Forum: Personal Finance (Not Investing)
Topic: When have you given enough?
Replies: 65
Views: 6893

Re: When have you given enough?

I'm a 30-something, so I'm answering this from the perspective of the adult (and financially secure) child, and not the parent. My parents money (and that of my inlaws) is their money. If I believed that they were not living the lives that they wanted to live, so that they could give us an inheritan...
by Tal-
Thu Oct 06, 2016 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Parents are in a Variable Annuity - need help
Replies: 14
Views: 1685

Re: Parents are in a Variable Annuity - need help

Lots going on here. Quite frankly, probably lots more than I'm seeing - but I'll share my thoughts none-the-less. I'll also highlight that these get incredibly complicated! I'm needing to read the tea leaves on a few of these points... As of today, I don't think that there is a guarantee. The way th...
by Tal-
Thu Sep 29, 2016 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: ESPP strategy question
Replies: 8
Views: 950

Re: ESPP strategy question

We have an ESPP, and do the standard 'sell as fast as we can' approach as well. This results in the whole thing as income for taxes. But, I heard on a podcast (Stacking Benjamins) that in some circumstances, it may be possible to treat a part of the gains as cap gains. A 2-second search showed a tur...
by Tal-
Thu Sep 29, 2016 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Pension buy outs ???
Replies: 34
Views: 4575

Re: Pension buy outs ???

got offer 52k lump now (gross amount) $243. now for life $996 @ 65yr The math is close. Assuming that an investment will grow ~7%, and double every 10 years, you would end with ~ 200K at age 65. At that time, you could, in theory purchase an annuity, that would pay you $970 (based on today's rates)...
by Tal-
Wed Sep 28, 2016 1:41 pm
Forum: Personal Consumer Issues
Topic: Is a garbage disposal unit a good idea for a rental property?
Replies: 34
Views: 3217

Re: Is a garbage disposal unit a good idea for a rental property?

Generally speaking, no. I would NOT include a garbage disposal. We have several single-family rentals, and garbage disposals are probably the thing most likely to break. So, I've been taking them out of some properties, and even pushing back a bit on tenants who ask for them. To date, I have had 1-2...
by Tal-
Tue Sep 27, 2016 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: 1 million to add to vanguard
Replies: 69
Views: 8694

Re: 1 million to add to vanguard

Tal votes to just put it in. If this was your only money, and you were worried about your personal security, I would be open to a DCA conversation. But, with this being 20% of your assets, that's not a concern. It feels like the real question you're wondering if you should pull investable money out ...
by Tal-
Mon Sep 26, 2016 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: When (or whether) to have a second child
Replies: 37
Views: 4943

Re: When (or whether) to have a second child

Not to make light of a serious question, but this is the easiest question I've read on this board in a long time. Yes, you can financially afford to have another child. Period. Now, the questions of if and when are much more difficult and personal. My personal view is that 2 kids, about 2 years apar...
by Tal-
Mon Sep 26, 2016 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: 72t Withdrawals for Young-Retiree
Replies: 24
Views: 2592

Re: 72t Withdrawals for Young-Retiree

Tal has a few thoughts... I've heard that a 72(t) withdrawal can be difficult to manage, and if the incorrect amount is taken, or paperwork doesn't line up exactly, all hell breaks loose. Still, philosophically, it can be a viable resource. While you need to take a 72t on the full account amount, th...
by Tal-
Mon Sep 26, 2016 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Buy a new house with cash? Please advise
Replies: 26
Views: 3884

Re: Buy a new house with cash? Please advise

I am far from a real estate expert but found similar info on line and used it to guide my rent/buy decisions the last few years. Based on this type of calculation, we decided to rent out a home we could probably sell for around $250k, getting $1500 per month or 0.60%. Although a little thin on the ...
by Tal-
Sun Sep 25, 2016 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Buy a new house with cash? Please advise
Replies: 26
Views: 3884

Re: Buy a new house with cash? Please advise

Would house #1 make a viable rental? No. Unless it rents for something like $6000 month (literally), you should NOT keep this as a rental. And... it won't rent for $6000/month... How did you come to $6000? I'm playing with rough numbers here, so bare with me. The most intuitive way to think about a...
by Tal-
Sun Sep 25, 2016 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Buy a new house with cash? Please advise
Replies: 26
Views: 3884

Re: Buy a new house with cash? Please advise

My thoughts, to the questions that you didn't actually ask: Would house #1 make a viable rental? No. Unless it rents for something like $6000 month (literally), you should NOT keep this as a rental. And... it won't rent for $6000/month... Should you buy your new house in cash? Probably not. You're i...
by Tal-
Sun Sep 25, 2016 4:12 pm
Forum: Investing - Theory, News & General
Topic: Financial planner: % of AUM plus commissions?
Replies: 21
Views: 1957

Re: Financial planner: % of AUM plus commissions?

As some context, I tend to be much more favorable towards the use of financial planners than most people on this board :) 1% AUM is on the low side of standard, though % of AUM is never how you should look at fees. That's a bit like using monthly payments to determine if you can buy a car. Instead, ...
by Tal-
Sun Sep 25, 2016 3:54 pm
Forum: Personal Consumer Issues
Topic: Protein Powders
Replies: 45
Views: 4516

Re: Protein Powders

Optimum Nutrition's (ON) whey proteins are great. They blend easily, taste great, are inexpensive, and score exceptionally well on the 'how healthy it is' tests.

I've tried others, but have become brand loyal to ON.
by Tal-
Sat Sep 24, 2016 1:24 am
Forum: Personal Consumer Issues
Topic: Would you buy this house in a flood zone? HELP!
Replies: 63
Views: 5922

Re: Would you buy this house in a flood zone? HELP!

Few decisions are as clean as yes/no. There have been a lot of "no" responses above, but the topic is not really that simple. Flood plane stuff is a big negative. It will significantly negatively impact future house values, and the added insurance cost is nothing to sneeze at! But, if you were getti...
by Tal-
Tue Sep 20, 2016 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: Help me invest for my child's "surprise" future.
Replies: 7
Views: 1669

Re: Help me invest for my child's "surprise" future.

I may be missing the mark on something, but I think you're in good shape. I am not sure that I would consider a trust. In theory, you could probably set up a trust in his name, and continue to fund it - but I'm pretty sure that doing so would basically make it HIS money today (though he couldn't acc...
by Tal-
Tue Sep 20, 2016 2:50 pm
Forum: Personal Consumer Issues
Topic: Ideas for adult brothers vacation
Replies: 24
Views: 2944

Re: Ideas for adult brothers vacation

If you want something a bit more expensive, luxurious, but still with a hint of adventure, check out an Alaskan cruise. Not something that all groups of brothers would enjoy, but it would also be a perfect fit for others. Lots of wildlife and scenery. Some hiking opportunities. Good guided activitie...
by Tal-
Thu Sep 15, 2016 3:05 pm
Forum: Personal Consumer Issues
Topic: How much is your cell phone bill?
Replies: 263
Views: 31580

Re: How much is your cell phone bill?

Verizon
2 lines
4 GB data (?)
unlimited talk/text
Included price-reduced new phones with 2 year contract.

$149/month

Time to go shopping!
by Tal-
Wed Sep 14, 2016 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning Advice - New to Forum
Replies: 8
Views: 1350

Re: Retirement Planning Advice - New to Forum

bogle-feet, and -tal, thank you for the thoughtful replies. I think we're in a unique position. Our combined annual income is around 66K, and my wife technically wouldn't even qualify for a Roth IRA if we weren't married, at least that's what I'm told, due to her grant funding. I'm not extremely we...
by Tal-
Wed Sep 14, 2016 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: 24 year old new dividend portfolio
Replies: 151
Views: 11443

Re: 24 year old new dividend portfolio

Welcome to the forum. And congrats on a great start! Here are my thoughts, as a Q&A: Should you invest all at once, or over time? Research shows that on average, investing all at once is the right option. It's true that this puts your money at risk, and that it may go down, but learning to stay the ...
by Tal-
Wed Sep 14, 2016 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning Advice - New to Forum
Replies: 8
Views: 1350

Re: Retirement Planning Advice - New to Forum

Props to ya! Dave Ramsey does great work, and has helped a lot of people. But, his great work is typically done around debt, and not around long-term financial standing. This is to say that I agree; I think you have graduated from the Dave Ramsey stage of your finances! :) I'll let others speak to s...
by Tal-
Tue Sep 13, 2016 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Should I pay off my mortgage?
Replies: 45
Views: 5447

Re: Should I pay off my mortgage?

Lots of thoughts on this one. But first, congrats. You're in great shape. You are clearly focusing on long-term returns, and don't have an issue with debt. You think you can do decently in the market, and would invest in the market with excess cash (stop having a bunch of cash just laying around!). ...
by Tal-
Mon Sep 12, 2016 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Physician employment and fair salary and raises
Replies: 58
Views: 7812

Re: Physician employment and fair salary and raises

Lots going on here. I'll try and provide some insight as best I can. As a provider, the general assumptions about pay, pay rate increases, etc. are not always relevant. If a new IS Analyst joined a company, I would be shocked and horrified if they got 0 pay raises in 5 years. But, as a provider, the...
by Tal-
Mon Sep 12, 2016 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: New to here. Need help with retirement planning.
Replies: 28
Views: 3084

Re: New to here. Need help with retirement planning.

I'm leery of 529s because 1) what if college is free 14 years from now when my kids start re: presidential candidates college reform (I'll be hit with a 10% penalty and tax bracket rate if we withdraw $ 2) what if they get full rides or scholarships? 3) They most likely will be staying at home to s...
by Tal-
Thu Sep 08, 2016 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie, Hopeful for some Great Advice!!
Replies: 10
Views: 1224

Re: Newbie, Hopeful for some Great Advice!!

Props to ya! While everyone's path to financial freedom is somewhat unique, it feels like there are several phases that everyone goes through. You've done a great job with several of the challenging steps - budgeting, securing a place to live, and living off less than you're making. That's a credit ...
by Tal-
Thu Sep 08, 2016 11:50 am
Forum: Investing - Help with Personal Investments
Topic: New to here. Need help with retirement planning.
Replies: 28
Views: 3084

Re: New to here. Need help with retirement planning.

At the highest levels, clearly doing great. I think my biggest suggestions is something that you already know - and that's to start shifting your savings into investments (i.e. stocks/bonds/401k/ira/etc.). Do that, and you're in great shape. With that said, it feels like you're looking for more spec...
by Tal-
Wed Sep 07, 2016 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Convert to a Roth, or stay Traditional IRA?
Replies: 7
Views: 838

Re: Convert to a Roth, or stay Traditional IRA?

Props! I don't know you from Adam, but you've obviously done well for yourself. A credit to you. Your spending or family planning may change my mind on this, but assuming a fairly normal outlook, I would not convert this. At this point, with more than $6M in assets, you're in great shape to have a w...
by Tal-
Wed Sep 07, 2016 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Career Advancement
Replies: 10
Views: 2005

Re: Career Advancement

Here are Tal's thoughts, framed as answers to questions that you didn't really ask... :) Is your career stagnant? No. There is nothing wrong with staying at a job for a year, or two, or three. Don't rush thing. Do you need an MS or Ph.D.? If you're getting interviews today, the problem is not with y...