Search found 19866 matches

by KlangFool
Mon Apr 12, 2021 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Anxiety about the future
Replies: 50
Views: 5243

Re: Anxiety about the future

A small footnote to your post: I can't speak to your employment situation. I hope you find work in medicine that is fulfilling and not draining. But if you're thinking that your income is going to fluctuate while you find your footing, it might be worth investing your savings conservatively--perhap...
by KlangFool
Sun Apr 11, 2021 8:08 pm
Forum: Personal Investments
Topic: Mortgage Payoff vs Taxable Account - What else should I consider?
Replies: 34
Views: 2028

Re: Mortgage Payoff vs Taxable Account - What else should I consider?

OP, 1) You are not conservative. You have a 900K house and 450K investment outside the house. You are "house poor" asset wise. What if the house crash 50% and do not recover for 10 years, then, what would you do? 2) It is not safe to put more money into the house. Hence, why do you think ...
by KlangFool
Sun Apr 11, 2021 7:11 pm
Forum: Personal Investments
Topic: Mortgage Payoff vs Taxable Account - What else should I consider?
Replies: 34
Views: 2028

Re: Mortgage Payoff vs Taxable Account - What else should I consider?

OP, 1) You are not conservative. You have a 900K house and 450K investment outside the house. You are "house poor" asset wise. What if the house crash 50% and do not recover for 10 years, then, what would you do? 2) It is not safe to put more money into the house. Hence, why do you think i...
by KlangFool
Sun Apr 11, 2021 4:44 pm
Forum: Investing - Theory, News & General
Topic: Real Return Fakers & Quitting Investing For Good
Replies: 51
Views: 5158

Re: Real Return Fakers & Quitting Investing For Good

I save 1 year of expense every year. I use 0% REAL RETURN for my planning. I can be FI in less than 20 years. Klangfool, with your savings rate at 100% of your expenses, what income multiple or percentage rule do you use for your retirement comfortability? (33x/3%..) I'm guessing you enjoy your wor...
by KlangFool
Sun Apr 11, 2021 4:38 pm
Forum: Investing - Theory, News & General
Topic: Real Return Fakers & Quitting Investing For Good
Replies: 51
Views: 5158

Re: Real Return Fakers & Quitting Investing For Good

OP, I save 1 year of expense every year. I use 0% REAL RETURN for my planning. I can be FI in less than 20 years. KlangFool KlangFool Your posts have been extremely informative and beneficial on this board. I have seen you make the above comment often lately. Surely you must realize that some if no...
by KlangFool
Sun Apr 11, 2021 3:52 pm
Forum: Investing - Theory, News & General
Topic: Real Return Fakers & Quitting Investing For Good
Replies: 51
Views: 5158

Re: Real Return Fakers & Quitting Investing For Good

OP, I save 1 year of expense every year. I use 0% REAL RETURN for my planning. I can be FI in less than 20 years. KlangFool KlangFool Your posts have been extremely informative and beneficial on this board. I have seen you make the above comment often lately. Surely you must realize that some if no...
by KlangFool
Sun Apr 11, 2021 3:43 pm
Forum: Investing - Theory, News & General
Topic: [How does one compare the value of real estate in relation to other assets?]
Replies: 10
Views: 803

Re: [How does one compare the value of real estate in relation to other assets?]

Philosophically, I do not believe in buying any house that is significantly expensive enough to be consider as part of my net worth. I had been through too recession/economy crisis that when the house destroy someone's finance. I have strong bias against buying an expensive house and to be tied int...
by KlangFool
Sun Apr 11, 2021 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

I agree with you to a point. I think having an actual written down (or excel spreadsheet) budget is helpful when you are first trying to get your mind wrapped around your income in flow and outflow. I think if you keep working with a budget/spending plan for a length of time (a few years or longer)...
by KlangFool
Sun Apr 11, 2021 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

"Telecom bust. Gambled on Telecom stock. Lost 50% of my portfolio as a result of that." Telecom bust was 2001 - if you had 50% lost then the rest would still be at about 7-10X expenses at that time. 7 to 10 X expenses at 2001 plus one time expense every year since and earnings on that wou...
by KlangFool
Sun Apr 11, 2021 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

Having a budget doesn’t imply to me that you necessarily have separate accounts for different expenses. It just means that you have a target for how much you’ll spend for an given item or category. delamer, I do not have a target for an given item or category. That is my whole point. My annual expe...
by KlangFool
Sun Apr 11, 2021 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Theory: The Only Four Situations Justifying Debt
Replies: 103
Views: 6906

Re: Theory: The Only Four Situations Justifying Debt

DesertMan, I disagreed on all 4. 1) I buy house assuming ZERO appreciation and substantial discount to renting. I took a mortgage knowing that I have the asset to pay it off at any time. 2) No reason to go into debt for college education. I worked at the university. The university paid me plus givi...
by KlangFool
Sun Apr 11, 2021 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

Do you place a limit on how much you’ll spend for it? If so, then you have a car budget. delamer, My limit is not on the price of the car. It is on the limit of the VALUE of the car to me. For example, if I can be convinced than a hybrid SUV makes a lot of sense to me, I won't mind spending 40K to ...
by KlangFool
Sun Apr 11, 2021 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

Wouldn't a Big Expense that you can't cash flow indicate that you might need to "budget" for that expense? Especiaally an expense you KNOW is coming - property taxes, a vacation, school tuition? You'd need alot of disposable income every month to handle a large property tax bill (on your ...
by KlangFool
Sun Apr 11, 2021 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

Wouldn't a Big Expense that you can't cash flow indicate that you might need to "budget" for that expense? Especiaally an expense you KNOW is coming - property taxes, a vacation, school tuition? You'd need alot of disposable income every month to handle a large property tax bill (on your ...
by KlangFool
Sun Apr 11, 2021 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

Wouldn't a Big Expense that you can't cash flow indicate that you might need to "budget" for that expense? Especiaally an expense you KNOW is coming - property taxes, a vacation, school tuition? You'd need alot of disposable income every month to handle a large property tax bill (on your ...
by KlangFool
Sun Apr 11, 2021 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

Wouldn't a Big Expense that you can't cash flow indicate that you might need to "budget" for that expense? Especiaally an expense you KNOW is coming - property taxes, a vacation, school tuition? You'd need alot of disposable income every month to handle a large property tax bill (on your ...
by KlangFool
Sun Apr 11, 2021 8:56 am
Forum: Personal Consumer Issues
Topic: buying laptop
Replies: 15
Views: 1344

Re: buying laptop

Folks,

Check out Costco. Very generous return policy with no restocking fee.

KlangFool
by KlangFool
Sun Apr 11, 2021 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Theory: The Only Four Situations Justifying Debt
Replies: 103
Views: 6906

Re: Theory: The Only Four Situations Justifying Debt

Folks, Car loan. A few years ago, I was buying my new Altima. I was planning to buy it with CASH. Then, the dealer told me that they would pay me $2,000 if I take a car loan of any size. So, I took a minimum 10K 3 years car loan in order to get the $2,000. The total amount of the interest for that l...
by KlangFool
Sun Apr 11, 2021 7:56 am
Forum: Personal Investments
Topic: Remind me how to stick to Strategic asset allocation
Replies: 11
Views: 828

Re: Remind me how to stick to Strategic asset allocation

OP, Don't do SAA. Instead of 3 funds portfolio, use an all-in-one fund like Target Date Retirement Fund and/or Vanguard Life Strategy fund. KlangFool i’m non us, target date fund not available Which country? I think there might be an ETF version of balanced fund that you can use. KlangFool Indonesi...
by KlangFool
Sun Apr 11, 2021 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Theory: The Only Four Situations Justifying Debt
Replies: 103
Views: 6906

Re: Theory: The Only Four Situations Justifying Debt

2) No reason to go into debt for college education. I worked at the university. The university paid me plus giving me an in-state tuition waiver. I graduated with 8K of savings. As for graduate education, someone (employer or the college) should pay you for the graduate education. Or else, it is no...
by KlangFool
Sun Apr 11, 2021 7:41 am
Forum: Personal Finance (Not Investing)
Topic: Theory: The Only Four Situations Justifying Debt
Replies: 103
Views: 6906

Re: Theory: The Only Four Situations Justifying Debt

2) No reason to go into debt for college education. I worked at the university. The university paid me plus giving me an in-state tuition waiver. I graduated with 8K of savings. As for graduate education, someone (employer or the college) should pay you for the graduate education. Or else, it is no...
by KlangFool
Sun Apr 11, 2021 7:38 am
Forum: Personal Finance (Not Investing)
Topic: Theory: The Only Four Situations Justifying Debt
Replies: 103
Views: 6906

Re: Theory: The Only Four Situations Justifying Debt

DesertMan, I disagreed on all 4. 1) I buy house assuming ZERO appreciation and substantial discount to renting. I took a mortgage knowing that I have the asset to pay it off at any time. 2) No reason to go into debt for college education. I worked at the university. The university paid me plus givi...
by KlangFool
Sat Apr 10, 2021 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Anxiety about the future
Replies: 50
Views: 5243

Re: Anxiety about the future

OP, I live through and still surviving through Telecom Bust. The whole industry goes to hell. 1+ million laid off over 6+ years. I had been facing quarterly and annual laid off since Telecom Bust. It is over 10+ years. And, I had been unemployed for more than 1 year a few times. A) It is never as ba...
by KlangFool
Sat Apr 10, 2021 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Frequency in Retirement
Replies: 22
Views: 1712

Re: Withdrawal Frequency in Retirement

It sounds as though you intend to maintain and replenish the 3-year cash buffer in a way that optimizes taxes and via rebalancing opportunities. Are you concerned with 40% in bonds + 3 years in cash as too fixed income heavy? I too break it down to 15 years stocks and 10 years bonds/cash. Buddtholo...
by KlangFool
Sat Apr 10, 2021 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Theory: The Only Four Situations Justifying Debt
Replies: 103
Views: 6906

Re: Theory: The Only Four Situations Justifying Debt

DesertMan, I disagreed on all 4. KlangFool, I always appreciate your wise contributions. I agree that if you don't have to take out the debt in order to accomplish the goal, you shouldn't do it. But young folks like me are not wealthy enough to avoid doing so; for example, there's no way I could pa...
by KlangFool
Sat Apr 10, 2021 1:40 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Frequency in Retirement
Replies: 22
Views: 1712

Re: Withdrawal Frequency in Retirement

OP, I have 3 years of expense in CASH. The actual withdrawal has nothing to do with my actual expense need. My withdrawal method and timing is totally flexible in order to maximize tax efficiency. KlangFool I too have 3 years in cash on a 60/40 AA. Klangfool, do you plan to drawdown the cash positi...
by KlangFool
Sat Apr 10, 2021 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

Folks,

At my income level, the #1 budget breaker is the house. Once a person overspend on the house, nothing else matters. Budget would not work unless the person downsize the house.

KlangFool
by KlangFool
Sat Apr 10, 2021 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

I think it means that reducing spending alone will not suffice to get one out of debt; one must also increase his or her income. mikejuss, I disagreed. The savers would not be in debt in the first place. The spender will get into debt because of overspending. It is behavioral problem. Increasing th...
by KlangFool
Sat Apr 10, 2021 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Theory: The Only Four Situations Justifying Debt
Replies: 103
Views: 6906

Re: Theory: The Only Four Situations Justifying Debt

I am trying to craft an investment/personal finance policy statement. Based on my experiences, I think I have come up with a Bogleheadish truism about when debt should be used, and when it should not be used. The answer to debt is always NO, with four exceptions. The only four situations that a per...
by KlangFool
Sat Apr 10, 2021 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Frequency in Retirement
Replies: 22
Views: 1712

Re: Withdrawal Frequency in Retirement

OP,

I have 3 years of expense in CASH. The actual withdrawal has nothing to do with my actual expense need. My withdrawal method and timing is totally flexible in order to maximize tax efficiency.

KlangFool
by KlangFool
Sat Apr 10, 2021 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

What if I told you that you could be FI or retire sooner if you optimize your saving and spending? If you save 2 years of annual expense, you’ll get to the finish line sooner. Of course if you just want to retire at 55 or 60, it don’t matter. H-Town, I would say that I do not care. I believe in a b...
by KlangFool
Sat Apr 10, 2021 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

This morning, I read a Tweet I found depressing: "In 13 years as a financial advisor, I've never seen anyone actually turn their life around with a budget. They either earn their way out of their spending habits, or they are in debt forever." Do you agree? Budgets are make it or break it....
by KlangFool
Sat Apr 10, 2021 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

I view my budget as a way of allocating limited resources. While I’m not naturally a spender, it can be awfully easy to spend if you are flush with cash. I see people my age with incomes I can only assume are relatively similar to mine lease/own luxury vehicles, ATVs, dirt bikes, season tickets, al...
by KlangFool
Sat Apr 10, 2021 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Do budgets work?
Replies: 114
Views: 4329

Re: Do budgets work?

This morning, I read a Tweet I found depressing: "In 13 years as a financial advisor, I've never seen anyone actually turn their life around with a budget. They either earn their way out of their spending habits, or they are in debt forever." Do you agree? mikejuss, << They either earn th...
by KlangFool
Sat Apr 10, 2021 10:30 am
Forum: Personal Investments
Topic: Deciding it it's worth it to buy long-term individual stocks
Replies: 57
Views: 5159

Re: Deciding it it's worth it to buy long-term individual stocks

1. you have to buy before the rumor. how do you know this if it is unknown???? i.e., you won't know if there is a rumor, good or bad, until after the rumor has already come out. by your definition thenn it is too late because the rumor will have already pushed up the stock's value from less than 1 ...
by KlangFool
Sat Apr 10, 2021 9:26 am
Forum: Personal Investments
Topic: Deciding it it's worth it to buy long-term individual stocks
Replies: 57
Views: 5159

Re: Deciding it it's worth it to buy long-term individual stocks

ok, thanks. when you find some of those stocks that possibly will go up 10X to 30X in less than 5 years, please do let us know. I'd be very interested in tracking the actual performance of those stocks. arcticpineapplecorp., I do not understand what do you mean by this. But, let me give you an exam...
by KlangFool
Sat Apr 10, 2021 8:51 am
Forum: Personal Investments
Topic: Remind me how to stick to Strategic asset allocation
Replies: 11
Views: 828

Re: Remind me how to stick to Strategic asset allocation

OP, Don't do SAA. Instead of 3 funds portfolio, use an all-in-one fund like Target Date Retirement Fund and/or Vanguard Life Strategy fund. KlangFool i’m non us, target date fund not available Which country? I think there might be an ETF version of balanced fund that you can use. KlangFool
by KlangFool
Fri Apr 09, 2021 10:26 pm
Forum: Personal Investments
Topic: Remind me how to stick to Strategic asset allocation
Replies: 11
Views: 828

Re: Remind me how to stick to Strategic asset allocation

OP,

Don't do SAA. Instead of 3 funds portfolio, use an all-in-one fund like Target Date Retirement Fund and/or Vanguard Life Strategy fund.

KlangFool
by KlangFool
Fri Apr 09, 2021 10:20 pm
Forum: Personal Investments
Topic: Deciding it it's worth it to buy long-term individual stocks
Replies: 57
Views: 5159

Re: Deciding it it's worth it to buy long-term individual stocks

Can you please provide us with several such examples of stocks to consider buying now that have at least the possibility of 10X to 30X in less than 5 years from now? I would like to track the stocks you believe are easy to pick that will possibly go up 10X to 30X in less than the next 5 years. It w...
by KlangFool
Fri Apr 09, 2021 10:13 pm
Forum: Personal Investments
Topic: Protect savings from imminent inflation?
Replies: 24
Views: 2084

Re: Protect savings from imminent inflation?

OP, Why should someone cares if their portfolio and/or saving rate is big enough? Let's say the annual expense is X and the portfolio is 30X. Let's assume that the inflation = I. As long as the portfolio is growing at I + X%, the portfolio will get bigger regardless of the inflation rate. Let's say ...
by KlangFool
Fri Apr 09, 2021 8:59 pm
Forum: Personal Investments
Topic: AA - Too conservative?
Replies: 27
Views: 2657

Re: AA - Too conservative?

I’m currently 36 married with kids and have about $1m in retirement savings. My target for retirement savings is around 2.5m and I’d like to retire in 20 years. Is my current asset allocation too conservative to reach my goal? waterwell, No. You can reach 2.65 million in 20 years with a 5% annual r...
by KlangFool
Fri Apr 09, 2021 8:29 pm
Forum: Personal Investments
Topic: Deciding it it's worth it to buy long-term individual stocks
Replies: 57
Views: 5159

Re: Deciding it it's worth it to buy long-term individual stocks

OP, I only buy individual stock that could go up 10X to 30X in less than 5 years. Can you stock achieve that? If not, the answer is no. KlangFool two questions: 1. how does one actually KNOW that one's stock will go 10X to 30X in less than 5 years? 2. if this was known in advance, then why wouldn't...
by KlangFool
Fri Apr 09, 2021 6:32 pm
Forum: Investing - Theory, News & General
Topic: Real Return Fakers & Quitting Investing For Good
Replies: 51
Views: 5158

Re: Real Return Fakers & Quitting Investing For Good

OP,

I save 1 year of expense every year. I use 0% REAL RETURN for my planning. I can be FI in less than 20 years.

KlangFool
by KlangFool
Fri Apr 09, 2021 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: PSA: H&R 4/8/2021 update -> Unemployment benefit exclusion
Replies: 0
Views: 128

PSA: H&R 4/8/2021 update -> Unemployment benefit exclusion

Folks, This is a public service announcement. The 3/18/2021 update did not provide the worksheet that shows whether the unemployment benefit should be excluded from income. I updated my H&R yesterday with the 4/8/2021 update and recalculated my tax filing. The worksheet is there and it calculate...
by KlangFool
Fri Apr 09, 2021 3:36 pm
Forum: Personal Investments
Topic: Family with 4 little humans: chances of retiring/financial independence
Replies: 70
Views: 7036

Re: Family with 4 little humans: chances of retiring/financial independence

I get your point, but you don't know how the tax-deferred accounts will perform. If he is bond heavy in the next 10-15 years, his mortgage might actually outperform. Paying off the loan in a lump sum from the pre-tax account could also make for a big tax bill that year. Sometimes it makes sense to ...
by KlangFool
Fri Apr 09, 2021 3:30 pm
Forum: Personal Investments
Topic: No Bonds
Replies: 40
Views: 2474

Re: No Bonds

Klangfool below are my answers to your questions. I am also including the article that influenced my thinking - https://www.andersongriggs.com/our-letters-to-clients/-a-bond-free-portfolio-why-cash-should-replace-bonds-to-reduce-risk-and-improve-returns 1) Why is that necessary? If we have a protra...
by KlangFool
Fri Apr 09, 2021 2:09 pm
Forum: Personal Investments
Topic: What is a good asset allocation for us?
Replies: 17
Views: 1511

Re: What is a good asset allocation for us?

At 1.8% withdrawal rate, your portfolio will grow bigger every year. So, where is the problem? KlangFool LOL, the problems are that I'm new to this (see reference to earlier financial negligence), with too many unknowns, and can't just rely on something like the laws of physics to tell me the corre...
by KlangFool
Fri Apr 09, 2021 1:11 pm
Forum: Personal Investments
Topic: No Bonds
Replies: 40
Views: 2474

Re: No Bonds

Hello Bogleheads, My entire portfolio is in VSMGX (Vanguard LifeStrategy Moderate Growth). If I switch to 70% VT (Vanguard Total World Stock) and 30% Cash the expected return and risk are similar. Since I am planning to retire early next year, I am also protected against SOR with a hefty cash amoun...
by KlangFool
Fri Apr 09, 2021 12:19 pm
Forum: Personal Consumer Issues
Topic: Housing circumstances
Replies: 44
Views: 2592

Re: Housing circumstances

- Klang - lets be clear that saying we should all live in a 2000 sf home is basically telling me to get a divorce. 3000 sf (admittedly with a not-ideal floor plan) has been barely tolerable at best. Ollie123, A) Things will change when the toddler come into the house. That is my point. B) Parenting...
by KlangFool
Fri Apr 09, 2021 12:08 pm
Forum: Personal Investments
Topic: Allocate 401k by contribution source
Replies: 15
Views: 919

Re: Allocate 401k by contribution source

OP, You should not contribute to Roth 401K. So, where is the problem? In 90+% of the time, when we go into the details of someone contributing to Roth 401K, it always ended up that the person made a mistake. In summary, you had made a mistake if you contributed to Roth 401K. All your contributions ...