Bored

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
28fe6
Posts: 176
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Bored

Post by 28fe6 » Mon Jul 16, 2018 10:35 am

Since I started taking personal finance seriously, I have increased my savings rate from 5% to about 20%, set up almost all my bills with auto-pay and moved my funds to a high-interest online bank, started maxing my 401k instead of just getting the match, re-balanced my 401k from crappy funds into cheap index funds, decided on an AA around 50/50 until my house is paid off, resolved not to refinance my house or pay extra on the mortgage, resolved not to pay my car off, signed up for a bunch of rewards credit cards for bonuses, opened a HELOC for no particular reason just to increase my available credit, started a DAF and donated some old appreciated ESPP shares to it, got cheaper home insurance to save a few hundred per year, and switched mobile providers to save a few bucks per month. I was already ahead of the curve by not having cable TV or high interest debt.

Now what? I'm sort of running out of things to optimize. I guess this is the part where I just sit back and stop thinking about finance for a few decades? I contemplated getting a rental house or othe side gig but that would probably be going against my desire to optimize for free time. Did I miss anything big in my big personal finance re-org?
Last edited by 28fe6 on Mon Jul 16, 2018 10:39 am, edited 1 time in total.

MotoTrojan
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Re: Bored

Post by MotoTrojan » Mon Jul 16, 2018 10:38 am

28fe6 wrote:
Mon Jul 16, 2018 10:35 am
Since I started taking personal finance seriously, I have increased my savings rate from 5% to about 20%, started maxing my 401k, re-balanced my 401k into cheap index funds, decided on an AA around 50/50 until my house is paid off, resolved not to refinance my house or pay extra on the mortgage, resolved not to pay my car off, signed up for a bunch of rewards credit cards for bonuses, opened a HELOC for no particular reason just to increase my available credit, started a DAF and donated some old appreciated ESPP shares to it, got cheaper home insurance to save a few hundred per year, and switched mobile providers to save a few bucks per month. I was already ahead of the curve by not having cable TV or high interest debt.

Now what? I'm sort of running out of things to optimize. I guess this is the part where I just sit back and stop thinking about finance for a few decades?
Yup! Or frequent the forum and spread your knowledge. Maybe take 3% of contributions and open a Robinhood account to do some trading.

delamer
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Re: Bored

Post by delamer » Mon Jul 16, 2018 10:55 am

I learn something from this forum almost every day.

You certainly don’t want to assume that your finances are all set for a few decades just becuase you know so much more now than you did a year or two ago.

Think of it like the continuing education that is required of physicians, CPAs, etc. There is always something new.

Dottie57
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Re: Bored

Post by Dottie57 » Mon Jul 16, 2018 10:57 am

delamer wrote:
Mon Jul 16, 2018 10:55 am
I learn something from this forum almost every day.

You certainly don’t want to assume that your finances are all set for a few decades just becuase you know so much more now than you did a year or two ago.

Think of it like the continuing education that is required of physicians, CPAs, etc. There is always something new.
+1

mortfree
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Re: Bored

Post by mortfree » Mon Jul 16, 2018 11:00 am

Do you need term life insurance?

terran
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Re: Bored

Post by terran » Mon Jul 16, 2018 11:01 am

Congratulations, you've found out what it feels like to become rich. Personal finances become pretty boring when it's all dialed in. I still like learning and reading about people's experiences with this stuff, but it's more of a hobby than anything I'll find that's personally actionable.

If you want to add some (temporary) financial excitement you could try increasing your savings rate to 50% (or more).

28fe6
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Re: Bored

Post by 28fe6 » Mon Jul 16, 2018 11:27 am

mortfree wrote:
Mon Jul 16, 2018 11:00 am
Do you need term life insurance?
I forgot to list that. I got a $250k 20yr stop-gap policy and have another $1M through my employer. I also got a 1M umbrella policy.

Increasing savings more would be challenging with my 15yr mortgage, but I will think about it.

Nowizard
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Re: Bored

Post by Nowizard » Mon Jul 16, 2018 11:32 am

If the title means the boredom extends beyond finances, it may be time to consider a different balance between saving and spending. Prudent financial planning brings comfort for many, not boredom, though you may be only in a temporary state. A balance between saving for the future while spending enough to enjoy the present is an ideal goal.

Tim

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Stinky
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Re: Bored

Post by Stinky » Mon Jul 16, 2018 11:40 am

28fe6 wrote:
Mon Jul 16, 2018 11:27 am
mortfree wrote:
Mon Jul 16, 2018 11:00 am
Do you need term life insurance?
I forgot to list that. I got a $250k 20yr stop-gap policy and have another $1M through my employer. I also got a 1M umbrella policy.

Increasing savings more would be challenging with my 15yr mortgage, but I will think about it.
How stable is your job? $1 million term life insurance through your employer is a lot, and you'd hate to see that go away through a job change.

I'd at least look at the cost of $1 million of term on the open market versus your employer coverage. Maybe 10-year to start off with, to most directly compare to employee rates, then looking to 20 or 30 year term depending on your insurance needs.

I also learn something on this forum each day.
It's a GREAT day to be alive - Travis Tritt

mortfree
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Re: Bored

Post by mortfree » Mon Jul 16, 2018 11:45 am

28fe6 wrote:
Mon Jul 16, 2018 11:27 am
mortfree wrote:
Mon Jul 16, 2018 11:00 am
Do you need term life insurance?
I forgot to list that. I got a $250k 20yr stop-gap policy and have another $1M through my employer. I also got a 1M umbrella policy.

Increasing savings more would be challenging with my 15yr mortgage, but I will think about it.
Key word in my question was “need”. So you have it.

In your OP all I see are words like I, my house, my car, my savings rate, my 401k.

Do you have people who depend on your salary?

Sorry if too personal.

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Sheepdog
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Re: Bored

Post by Sheepdog » Mon Jul 16, 2018 12:01 pm

Dottie57 wrote:
Mon Jul 16, 2018 10:57 am
delamer wrote:
Mon Jul 16, 2018 10:55 am
I learn something from this forum almost every day.

You certainly don’t want to assume that your finances are all set for a few decades just becuase you know so much more now than you did a year or two ago.

Think of it like the continuing education that is required of physicians, CPAs, etc. There is always something new.
+1
#2
I am still learning about a lot of things, including myself, from this forum and am close to 85. Continuing education indeed.
It's not what you gather, but what you scatter which tells what kind of life you have lived---Helen Walton

28fe6
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Re: Bored

Post by 28fe6 » Mon Jul 16, 2018 12:17 pm

mortfree wrote:
Mon Jul 16, 2018 11:45 am
28fe6 wrote:
Mon Jul 16, 2018 11:27 am
mortfree wrote:
Mon Jul 16, 2018 11:00 am
Do you need term life insurance?
I forgot to list that. I got a $250k 20yr stop-gap policy and have another $1M through my employer. I also got a 1M umbrella policy.

Increasing savings more would be challenging with my 15yr mortgage, but I will think about it.
Key word in my question was “need”. So you have it.

In your OP all I see are words like I, my house, my car, my savings rate, my 401k.

Do you have people who depend on your salary?

Sorry if too personal.
I have 3 small kids and a wife who doesn't work. I bought the 250k policy after my first kid just to have something quickly. It's through state farm and costs me like $40/mo. I'm 33; it always seemed like not the greatest price for only 20 years and only $250k.

I'm definitely not bored overall--see the part about 3 kids-- I would love to get back to never thinking about money but I'm burned by missing some good opportunities in the past through apathy, like not taking advantage of tax deferred space and ESPP opportunities, paying way too much for home owners insurance for 10 years, etc.

My job is not very stable and I expect to have to move interstate every 5 years or so, so I have a $50k emergency fund which is probably enough in combination with Roth funds.

AlwaysWannaLearn
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Re: Bored

Post by AlwaysWannaLearn » Mon Jul 16, 2018 1:16 pm

.....
Last edited by AlwaysWannaLearn on Wed Jul 18, 2018 9:58 pm, edited 1 time in total.

AlwaysWannaLearn
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Re: Bored

Post by AlwaysWannaLearn » Mon Jul 16, 2018 1:26 pm

.....
Last edited by AlwaysWannaLearn on Wed Jul 18, 2018 9:57 pm, edited 1 time in total.

Loik098
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Re: Bored

Post by Loik098 » Mon Jul 16, 2018 3:54 pm

Make sure you do routine maintenance on your house and vehicles, including appliances, HVAC, etc.

Know the ages of your big items, how long they are expected to last, and the most common reason they fail. Have a plan in place for whether you would fix/replace each appliance, for example. Study about how to fix your own stuff. Doing so can have a big impact on your financials.

An example: your A/C could go out tomorrow. Are you prepared? Have you learned the basics about your system so that you can diagnose problems? If the capacitor went out on your condenser unit, would you know how to test for that, and how to replace it (you totally can!)? Or, would you have to pay $300 to have someone come out and do it for you? If you need a whole new system, where would you go to look for one? Do you know what type you need, what SEER rating you'd want, and what a good bid would look like?

P.S. Pay attention to the terms on that HELOC and make sure you aren't paying interest for no reason.

mak1277
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Re: Bored

Post by mak1277 » Mon Jul 16, 2018 4:10 pm

To me, the beauty of Bogleheads was learning about a three-fund portfolio. I set it up and contribute new money to it and....that's it.

I happen to believe that the search for "optimization" is largely a waste of time. So enjoy the fact that you're bored and spend time with your kids. If I spend more than 30 seconds a month thinking about finances it's too much.

28fe6
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Re: Bored

Post by 28fe6 » Mon Jul 16, 2018 6:40 pm

Loik098 wrote:
Mon Jul 16, 2018 3:54 pm
Make sure you do routine maintenance on your house and vehicles, including appliances, HVAC, etc.

Know the ages of your big items, how long they are expected to last, and the most common reason they fail. Have a plan in place for whether you would fix/replace each appliance, for example. Study about how to fix your own stuff. Doing so can have a big impact on your financials.

An example: your A/C could go out tomorrow. Are you prepared? Have you learned the basics about your system so that you can diagnose problems? If the capacitor went out on your condenser unit, would you know how to test for that, and how to replace it (you totally can!)? Or, would you have to pay $300 to have someone come out and do it for you?
I'm really handy so I have expense avoidance covered where possible. I put new caps in the AC last year and a new-used fan this year. I have a lathe so I could have turned a new motor shaft but I splurged on a $40 used motor. Getting lazy in my old age. I did have to spend $700 on my tankless water heater rebuild last winter though. Not much DIY potential for those types of units.

I decided not to pay off the car because the interest is low and I would rather divert new funds to tax advantaged accounts. It was a choice between paying extra on the car or contributing to tax advantaged accounts. I still owe about $6k and the loan costs me about $250/year interest. But my mortgage costs me like $5k/year in interest. Even if I get a windfall, the numbers say putting it towards my mortgage would be better since the mortgage rate is higher.

misscourtneyk
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Re: Bored

Post by misscourtneyk » Tue Jul 17, 2018 10:57 am

Unfortunately, having your financial life in order is pretty boring. My remedy is to frequent the forum, and work on a side hustle to increase my earnings. Definitely considering opening an account for some "fun" trading in order to scratch that itch, but time hasn't allowed yet.
Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.

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220volt
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Re: Bored

Post by 220volt » Tue Jul 17, 2018 11:18 am

Personal finance/investing Bogglehead style can be learned in one minute. Everything that comes after is reinforcement.

Start a side hustle in a totally unrelated field from your current job.
or
Try to excel the skill at your current job (job security)
"If I had only followed the advice of financial analysts in 2008, I'd have a million dollars today, provided I started with a hundred million dollars" - Jon Stewart

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WolfpackFan
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Re: Bored

Post by WolfpackFan » Tue Jul 17, 2018 11:36 am

Do you have your Will and Estate Planning completed? That should keep ya busy for a while.

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wabbajack
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Re: Bored

Post by wabbajack » Tue Jul 17, 2018 3:53 pm

How come nobody ever mentioned spending?
If you're bored and you've got your financial house in order, guess what? It may be time for a remodel!

In all seriousness, if you've optimized everything to the point of diminishing returns, I would challenge you to find the most value you can extract out of your spending. There's a whole world of traveling, collecting (cars, watches, baseball cards, etc.), or other hobbies out there. Pick your poison.

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VictoriaF
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Re: Bored

Post by VictoriaF » Tue Jul 17, 2018 3:56 pm

wabbajack wrote:
Tue Jul 17, 2018 3:53 pm
In all seriousness, if you've optimized everything to the point of diminishing returns, I would challenge you to find the most value you can extract out of your spending. There's a whole world of traveling, collecting (cars, watches, baseball cards, etc.), or other hobbies out there. Pick your poison.
A spin on wabbajack's advice: Anyone bored with the Bogleheads investing should move into the points-and-miles game. It's endlessly exciting and addictive, while the potential loss is limited.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

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sergeant
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Re: Bored

Post by sergeant » Tue Jul 17, 2018 3:59 pm

Yea, you missed Roth IRA's for you and spouse.
Lincoln 3 EOW!

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cfs
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Re: Bored

Post by cfs » Tue Jul 17, 2018 4:10 pm

Wow! I just can't remember the last time I was bored! Here is an idea for the bored gang: Create a list of 101 things to do whenever there is nothing to do. Good look with the listing y gracias por leer / cfs
~ Member of the Active Retired Force since 2014 ~

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Sandtrap
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Re: Bored

Post by Sandtrap » Tue Jul 17, 2018 4:13 pm

28fe6 wrote:
Mon Jul 16, 2018 10:35 am
Since I started taking personal finance seriously, I have increased my savings rate from 5% to about 20%, set up almost all my bills with auto-pay and moved my funds to a high-interest online bank, started maxing my 401k instead of just getting the match, re-balanced my 401k from crappy funds into cheap index funds, decided on an AA around 50/50 until my house is paid off, resolved not to refinance my house or pay extra on the mortgage, resolved not to pay my car off, signed up for a bunch of rewards credit cards for bonuses, opened a HELOC for no particular reason just to increase my available credit, started a DAF and donated some old appreciated ESPP shares to it, got cheaper home insurance to save a few hundred per year, and switched mobile providers to save a few bucks per month. I was already ahead of the curve by not having cable TV or high interest debt.

Now what? I'm sort of running out of things to optimize. I guess this is the part where I just sit back and stop thinking about finance for a few decades? I contemplated getting a rental house or othe side gig but that would probably be going against my desire to optimize for free time. Did I miss anything big in my big personal finance re-org?
Congratulations!
You are in excellent shape right now and have put a good foundation in place.
1 Did you write your IPS Statement yet.
2 A will? in case you pass away tommorow. Where does all this stuff go?
3 There are some personal and financial "black swans" around the corner for everyone, are you ready?

Today is good. Tommorow. . . . who knows. In a few weeks, months, years, you may not be wondering, "what else" because things will be happening and demanding all of your attention and resources.

Enjoy the "calm" before the "storm.
j

Katietsu
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Re: Bored

Post by Katietsu » Tue Jul 17, 2018 4:15 pm

Did the OP say he had 3 young children and a wife who was not currently employed? If so, then you need to address life insurance. Possibly not enough now. Definitely not enough if you lose your job. Even if the workplace insurance is guaranteed convertible to an individual policy, it will probably be at a high rate that gets higher with age.

Go get a level term policy. Probably level for 20 or 30 years depending on projected family situation and net worth increases.

Darwin
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Re: Bored

Post by Darwin » Fri Sep 07, 2018 11:56 pm

misscourtneyk wrote:
Tue Jul 17, 2018 10:57 am
Unfortunately, having your financial life in order is pretty boring. My remedy is to frequent the forum, and work on a side hustle to increase my earnings. Definitely considering opening an account for some "fun" trading in order to scratch that itch, but time hasn't allowed yet.
Got that right, too! Good to hear you're passing along the boring-but-true message. Rebalancing is about as exciting as it gets... Except for when the next crash comes. Which it always does. And when it does, the smart will look at their remaining 50% and (yawn) rebalance again. The rest will flee the market. They shouldn't, but they always do. Boring is the rule in this game. Whenever I get nervous, I definitely tend to log in here to calm the nerves. Helped in 2008!
Kayaking and skiing can be pretty fun though, and might replace a person's temptation to tinker. Just sayin. 8-)

Cruise
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Re: Bored

Post by Cruise » Sat Sep 08, 2018 1:41 pm

OP: The biggest threat to your financial future is divorce, alimony, and child support. Make sure you invest in your future by nurturing your marital relationship and avoiding infidelity.

Dottie57
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Re: Bored

Post by Dottie57 » Sat Sep 08, 2018 3:34 pm

OP: check finances once or twice a year to rebalance. Rebalance during bear markets.

Beware of lifestyle creep. Every pay raise and bonus should partially go into savings and investments. If no space is available in retirement accounts, then put money into taxable. Really wish I had built up taxable more. Even$25 or $50 a month would have built up over the years.

P.S. i am very happy being bored. Being close to hysterical during the period of 2007-2009 was not good.

go_mets
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Re: Bored

Post by go_mets » Sat Sep 08, 2018 3:50 pm

will and living will for both you and your wife!

medical insurance and whether to use one that has a HSA?

If you get a side gig, then solo 401(k).
Also 20% pass-through tax deduction for sole proprietors.
I just learned about this today!

JoeJohnson
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Re: Bored

Post by JoeJohnson » Sun Sep 09, 2018 7:57 am

I'm curious why 50/50 AA while paying mortgage?

jehovasfitness
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Re: Bored

Post by jehovasfitness » Sun Sep 09, 2018 8:04 am

FWIW I'm 37 and pay $33/mo for a 20 yr term, that started last year, life insurance for 750k coverage.

My health markers are excellent tho.

If looking to switch I'll give you name of company

remomnyc
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Re: Bored

Post by remomnyc » Sun Sep 09, 2018 8:07 am

I second getting a larger (min $1m) term life policy outside of your employer, especially if your job is not stable and dropping your current expensive $250k policy. My 25-year $1m term policy is $520/year and I got it in my late 30s. Fix your costs now while you're young. Make sure your have enough to support your wife until she could support herself, pay off the mortgage, and get the kids through school.

blinx77
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Re: Bored

Post by blinx77 » Sun Sep 09, 2018 8:22 am

In addition to all the above may I suggest playing tennis? It is great exercise and super cheap (used rackets plus court and local court) and social (you need a friend).

Just take 90% of the time you used to spend worrying about money and use it for a hobby. Doesn't actually need to be tennis! I do disagree with the advice to spend lots of money. You are bored because you've solved the finance issue, but that doesn't mean you've reached your destination. You (like me) are "on track" but not "there."

Leave the big spending to the folks that are "there" and focus on fun, relatively affordable hobbies.

I actually picked up golf, which is fun but kind of expensive so I would not recommend it for those trying to optimize. But it does help pass the time in the long stretch of "on track" but before "goal achieved."

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midareff
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Re: Bored

Post by midareff » Sun Sep 09, 2018 8:49 am

Sounds like you need a new hobby.

JW-Retired
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Re: Bored

Post by JW-Retired » Sun Sep 09, 2018 9:17 am

delamer wrote:
Mon Jul 16, 2018 10:55 am
I learn something from this forum almost every day.
Yes, same here. But it's a rare thing that it's something I need to take any action on.

28fe6,
If you crave action it's very doubtful that Boglehead investing is going to supply it.
JW
Retired at Last

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corn18
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Re: Bored

Post by corn18 » Sun Sep 09, 2018 9:34 am

I'm with you on the bored part. The main elements have been covered already:

1. Write an IPS
2. Estate planning
3. Evaluate life insurance
4. College savings

I have been exploring the fringes lately and looking closer at retirement scenarios. I think I have a good handle on spending in retirement. The part that vexed me was taxes and withdrawal strategies. I took a look at i-ORP and learned how to make a plan to get me to 70.5 with no 401k/IRA money left. Also gave me a better idea of taxes (which I was way overestimating). I eeked a few good weeks of barely excited out of that.

Then I started looking at SS and death. I found a hole in my plan @ age 79 whereby my death + expiring term life could put a crimp in my wife's income. So that solidified our plan to take SS @ 70. Heart rate barely budged for that one, but building the overly complex spreadsheet to do the analysis did provide a few hours of feeling useful.

Then I have my master savings/retirement spreadsheet that I continue to add useless rows and columns to that spit out marginally useful data on esoteric scenarios that may or may not happen. I use it to spit out best case/ worst case data sets. I do nothing with the output, which leads to more boredom.

Lately, I have been contemplating meddling with my kid's savings plans, but they have not indicated any desire for me to participate.

I also find entertainment here on BH.org. It is fascinating to read all of the posts that run completely counter to the BH philosophy on these fora. Tilt here, what about this oddball fund, markets in freefall, markets soaring, etc... We certainly try hard to not be BH here on BH.org. But I think it is good to constantly challenge the status quo. Just don't do anything about it. Don't just do something, stand there!

Other than that, I continue to bore the crap out of my wife with monthly updates on how we are doing.

Outside of finances, I am definitely not bored, but I am thankful that BH.org has gotten me to this utterly and completely bored place with finances.

dh
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Re: Bored

Post by dh » Sun Sep 09, 2018 9:46 am

OP - congratulations! :sharebeer

I think we should change the commonly used expression to: "when you become bored with your finances, you've won the game." Like you, I found learning about finances and getting everything set up to be where the excitement lives. That fact is common in almost anything we accomplish - learning, growing, developing, rather than achieving, is where we find the most joy.

As several others have mentioned, sharing your knowledge with others engages a sense of altruism that is as fulfilling as learning it for yourself. The other areas I have appreciated is developing myself: 1. practicing a side gig now that I can do in retirement, and 2. learning a new sport (pickleball).

My other suggestion is to celebrate what you have accomplished. Well done, my friend!

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Nicolas
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Re: Bored

Post by Nicolas » Sun Sep 09, 2018 2:09 pm

There ain't no cure for the summertime blues.
De gustibus non est disputandum.

delamer
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Re: Bored

Post by delamer » Sun Sep 09, 2018 2:19 pm

Nicolas wrote:
Sun Sep 09, 2018 2:09 pm
There ain't no cure for the summertime blues.
:D

28fe6
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Re: Bored

Post by 28fe6 » Sun Sep 09, 2018 8:07 pm

JoeJohnson wrote:
Sun Sep 09, 2018 7:57 am
I'm curious why 50/50 AA while paying mortgage?
Since you asked, I'm waiting for the crash. Or, in bogleheading terms, I have "decided on an asset allocation that I can live with through up and down markets."

I am of the camp that considers the mortgage a bond [with some favorable features], so my actual bond allocation is negative until I pay the mortgage down more. This puts me at greater than 100% stocks. I try not to overthink it. 50/50 it is for now.

tarmangani
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Re: Bored

Post by tarmangani » Sun Sep 09, 2018 10:08 pm

Cruise wrote:
Sat Sep 08, 2018 1:41 pm
OP: The biggest threat to your financial future is divorce, alimony, and child support. Make sure you invest in your future by nurturing your marital relationship and avoiding infidelity.
Lol, this comment needs more love. Seriously true!

Darwin
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Re: Bored

Post by Darwin » Sun Sep 09, 2018 10:26 pm

Dottie57 wrote:
Sat Sep 08, 2018 3:34 pm
Beware of lifestyle creep. Every pay raise and bonus should partially go into savings and investments. If no space is available in retirement accounts, then put money into taxable. Really wish I had built up taxable more. Even$25 or $50 a month would have built up over the years.
+1
Personaly, I let 1/3 of my overtime go to my "travel" fund. Gave an incentive to do the extra hours.

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siamond
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Re: Bored

Post by siamond » Sun Sep 09, 2018 10:32 pm

OP, if you're not already doing that, then start using a tool to track & archive your household's expenses on a monthly basis (e.g. Mint, Personal Capital, Quicken, whatever). After setting them up, those tools are very automated, and don't require much more than one hour of attention every month. Learning about your actual expenses habits, and building historical data about those will prove invaluable in latter stages of your life. It's simply good financial hygiene.

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Cycle
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Re: Bored

Post by Cycle » Sun Sep 09, 2018 10:45 pm

It took me years of lifestyle optimization to get to a high savings rate (70% net).

The tradeoffs may appear negative to most BHs, but are actually lifestyle benefits. Like owning just one car means we can afford to hire out all the maintenance, so I don't need to own a bunch of specialized tools (so I sold them). Not having a car of my own means I have to bike to work, so I don't need get additional exercise if I don't want to. Obviously cars are rediculously expensive, even 200k mile ones.

Living in a transitional neighborhood on a busy street isn't what one would expect of a millionaire, but I paid $95k for my unit and put $50k into rennovating it exactly how we wanted it. I have no stress about not having a mortgage, bc its just not a lot of money. I understand there is a tax inefficiency, but I don't care and value simplicity highly. The taxes are low. We don't care about the schools, bc we can move when our kids are school age if we desire.

We have a small yard, but this means I don't need to own and maintain gas powered devices, so i just use shears, reel mower, and a snow shovel. Free 20 minutes of exercise. The yard is attractive to Rover customers when we get paid to dog sit.

By living in a multifamily building, we have the advantage that half of our building expenses are business expenses. For capital projects in our unit, those will eventually be depreciated when they are put in service. I try to hire everything out to give me more free time, but if the savings are enough I'll do it myself... Like a couple mini split AC systems I saved 10k on by installing myself.

We use work trips and credit card points to reduce the costs of international vacations. Last year we went to Ecuador and Galapagos, Denmark and Sweden, Basque region of Spain, Ireland, and Crater Lake.

We have had opportunities to persue startups and other high risk employment options, but have just plugged away at our megacorp jobs since graduating ar 22. I still was working full time when I got my graduate degree. We could take sabbaticals, but are currently just tracking to fire in a little under 10 years at age 45 and 4.5MM.

We aspire to be minimalists, to give us more free time and reduce our consumption. The tangible benefit is that we can save 20k per year by living in a 1000 sq ft home with a small family. Since we don't have any clutter, it only takes us 30 minutes to clean the home for company, so we don't need to hire a cleaning maid.

One can only optimize so much, especially with things like daycare, but usually there are inefficiencies in everyones plan. Sometimes the best optimization involves not doing anything, like making due with the current kitchen, car, vacationing locally, renting instead if buying etc.

The "tradeoffs" of an efficient lifestyle may look like compromises from the outside, the pauper phrase is often used in BH, but the efficient life has lots of free time, plenty of sleep, and no money problems.

jester14
Posts: 29
Joined: Sun Jul 16, 2017 11:15 am

Re: Bored

Post by jester14 » Sun Sep 09, 2018 11:36 pm

A few suggestions - some may be slightly outside of personal finance, but close enough. I hope they are helpful!

+1 for looking into an IRA

Have you considered and learned about hsa's?

Do you have a taxable account set up and your entire portfolio optimized as best you can for tax efficiency?

Have you considered looking into other blogs and forums around personal finance? Warning - it can become an addiction!

+1 for mint

Optimize spending, particularly groceries.

Maybe look into 529's.

Focus on your next career move - work toward a promotion or lateral.

Read relentlessly. So much to learn!

Health - optimize your training, nutrition, etc.

Pick up an instrument or language

Basketball is also pretty cheap, a good counterbalance to golf.

+1 on parent and spouse

Simplify, complete any old 401k rollovers

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celia
Posts: 8380
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Bored

Post by celia » Mon Sep 10, 2018 8:02 am

I have 3 small kids and a wife who doesn't work. I bought the 250k policy after my first kid just to have something quickly.
Your wife certainly does work! It's just that you aren't paying her (enough). :D

She needs life insurance too. If something happened to her, will you have to pay someone to do the things she does? After all, she is an equal contributor to your family.

She also needs to understand the family finances and investments. If you were to die, would she understand what you have invested and how to manage it and when to withdraw it? You need to put something in writing for her (or your executor/trustee in case you both die at the same time). Start by asking her what SHE needs to know. Then show her what you wrote and take her comments into account for the next version. This is an iterative process.

cpumechanic
Posts: 95
Joined: Tue Dec 21, 2010 11:42 pm

Re: Bored

Post by cpumechanic » Mon Sep 10, 2018 8:25 am

Look up Manufactured Spend on Flyertalk.com
I haven't paid for a tank of gas all summer and made $60 cash on each free tank.
Its a nice hobby that makes it easy to spend more on restaurants then I should.
Shh,, don't tell anyone else about this....just you tho ..............since you are bored.

Check for flood damaged cars on Copart.com.
Make sure you go inspect the car in person prior to purchase and be sure to bid low, and include the horrendous fees Copart charges.
(Minimum 15% of winning bid price).
Look for signs of a "light dunk" fresh water preferred...
If there are no lights in the dash with battery connected.. move on.

Wife and I cleaned a flood 2013 Mazda 3 in the driveway last summer, and Grandma is happy driving same for grand total of $3900 including all parts and fees. Her joy at Bluetooth cell phone connection is priceless for an 85 year old women.
There was a very clear mud water line about 1 inch up on the black oil pan.. so I was confident that there was zero water in engine, transmission, or any electrical component in dash. Fluid changes and careful inspection confirmed that.

Set up the new Fullview on Fidelity.. then call them when the silly new software breaks and wait on hold for 35 minutes to talk to someone who has never used the software but is pretending to care about your issue and will put you back on hold to ask someone else your question.

:sharebeer

Regards

CPU
We either make ourselves miserable, or we make ourselves strong. The amount of work is the same.

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birdog
Posts: 159
Joined: Fri Apr 07, 2017 1:35 pm

Re: Bored

Post by birdog » Mon Sep 10, 2018 8:31 am

Track your expenses (via Personal Capital or Mint) and visit MrMoneyMustache for some ideas on how to help you boost your savings rate way above the 20% you are currently at. It can be a fun (and profitable) game.

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randomizer
Posts: 1526
Joined: Sun Jul 06, 2014 3:46 pm

Re: Bored

Post by randomizer » Mon Sep 10, 2018 10:25 am

I make spreadsheets, track expenses, read books, read/post here, but in general, becoming financially independent it very, very boring.
87.5:12.5, EM tilt — HODL the course!

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