Search found 373 matches
- Thu Mar 21, 2024 9:42 pm
- Forum: Personal Consumer Issues
- Topic: Contractors and construction costs
- Replies: 15
- Views: 3198
Re: Contractors and construction costs
I’m a heavy DIYer. I’ve seen materials costs come down a good bit. Lumber was insane. April 2020 4x8 sheet of osb was $12. It peaked around $45 for me and is now around $15 again. 2x4 $3 down from around 2x that. The problem seems to me largely labor. I saw a guy on Facebook today Who wanted a set of stairs installed on his deck and most people thought it was a two to $3000 job for a professional (I agree) and he got three quotes with lowest at $7500. Seems to me the trades are squeezing everything they can out of desperate people in a supply limited labor market. I don’t blame them, but my DIY skills have never paid off so well: I finished a nice room in my basement recently for $1500 in materials only. I’m in western ny and bought a new ...
- Tue Mar 19, 2024 10:03 am
- Forum: Personal Finance (Not Investing)
- Topic: Did you use Real Estate to build wealth?
- Replies: 72
- Views: 9355
Re: Did you use Real Estate to build wealth?
The value of our real estate is a substantial percentage of our net worth. We paid it off by building a house, living in it about ten years, selling, building another to live in for about ten years, selling, and now we're building a third and final house with cash. When I say "building", I mean we were our own general contractor and did much of the finish work ourselves. I wouldn't recommend it to others unless they know they have the right skills.
I don't really like having such a large asset that only pays me imputed rent, but no house payment is pretty nice as we approach retirement.
I don't really like having such a large asset that only pays me imputed rent, but no house payment is pretty nice as we approach retirement.
- Tue Mar 19, 2024 7:14 am
- Forum: Investing - Theory, News & General
- Topic: Genius of the Financial Industry
- Replies: 44
- Views: 3034
Re: Genius of the Financial Industry
If only they stopped there...z3r0c00l wrote: ↑Tue Mar 19, 2024 6:39 amRight, because they just pay for the Army, Navy, Air Force, highways, power lines, clean drinking water, social security, NIH, police, justice system, prisons, NASA, free public schooling, inexpensive state schools, national parks, local parks and waterways, bridges, tunnels, dams, reservoirs, libraries, roads... don't get much back there. ...
- Wed Mar 13, 2024 9:34 pm
- Forum: Investing - Theory, News & General
- Topic: Where does your [investing] inspiration come from?
- Replies: 31
- Views: 3117
Re: Where does your inspiration come from?
When I read Malkiel's Random Walk when I was about thirty, it resonated so much, it changed my life forever. There have been a few others like Millionaire Next Door, Why We Get Fat, and How to Think Like a Roman Emperor.
- Tue Mar 12, 2024 2:29 pm
- Forum: Investing - Theory, News & General
- Topic: Taxable accounts: VTI vs AVUS (VT vs AVGV etc)
- Replies: 26
- Views: 5951
Re: Taxable accounts: VTI vs AVUS (VT vs AVGV etc)
Split VT into VTI / VXUS for the foreign tax credit and just let it float in tangent with VT's composition or tilt it however you see fit. You'll thank yourself later. AVGV is ok but it's an all value fund and you'll be stuck with whatever composition it decides for you. I guess that kind of gets to the heart of my question. Must I split equities into two funds for best tax efficiency? I really prefer a single fund, but not at a significant cost. Because AVGV is a fund of funds, you get the foreign tax credit. Thank you. So AVGV would actually be more tax efficient than VT because VT is not a fund of funds? How does AVGV compare to a combination of VTI/VXUS from a tax standpoint? Probably not because it has higher yields. You'd want to loo...
- Tue Mar 12, 2024 1:49 pm
- Forum: Investing - Theory, News & General
- Topic: Taxable accounts: VTI vs AVUS (VT vs AVGV etc)
- Replies: 26
- Views: 5951
Re: Taxable accounts: VTI vs AVUS (VT vs AVGV etc)
I'm sitting on the proceeds from the sale of a house in my brokerage account. It's currently all in a money market fund, but I would like to purchase equities with a portion of it. I've never owned equity funds in a taxable account and, for some reason, I'm a little hesitant about it. I think it's the perceived tax complexity that's giving me pause, which may be a little irrational. I would prefer a single fund that holds both domestic and int'l, so I'm considering either VT or AVGV. My simple question is, are both of these funds considered appropriate in a taxable account? I'm pretty sure the answer is yes, but I'm just making sure before I act. Split VT into VTI / VXUS for the foreign tax credit and just let it float in tangent with VT's...
- Tue Mar 12, 2024 9:20 am
- Forum: Investing - Theory, News & General
- Topic: Taxable accounts: VTI vs AVUS (VT vs AVGV etc)
- Replies: 26
- Views: 5951
Re: Taxable accounts: VTI vs AVUS (VT vs AVGV etc)
I'm sitting on the proceeds from the sale of a house in my brokerage account. It's currently all in a money market fund, but I would like to purchase equities with a portion of it. I've never owned equity funds in a taxable account and, for some reason, I'm a little hesitant about it. I think it's the perceived tax complexity that's giving me pause, which may be a little irrational. I would prefer a single fund that holds both domestic and int'l, so I'm considering either VT or AVGV. My simple question is, are both of these funds considered appropriate in a taxable account? I'm pretty sure the answer is yes, but I'm just making sure before I act. Split VT into VTI / VXUS for the foreign tax credit and just let it float in tangent with VT's...
- Tue Mar 12, 2024 9:09 am
- Forum: Investing - Theory, News & General
- Topic: Taxable accounts: VTI vs AVUS (VT vs AVGV etc)
- Replies: 26
- Views: 5951
Re: Taxable accounts: VTI vs AVUS (VT vs AVGV etc)
I'm sitting on the proceeds from the sale of a house in my brokerage account. It's currently all in a money market fund, but I would like to purchase equities with a portion of it. I've never owned equity funds in a taxable account and, for some reason, I'm a little hesitant about it. I think it's the perceived tax complexity that's giving me pause, which may be a little irrational.
I would prefer a single fund that holds both domestic and int'l, so I'm considering either VT or AVGV. My simple question is, are both of these funds considered appropriate in a taxable account? I'm pretty sure the answer is yes, but I'm just making sure before I act.
I would prefer a single fund that holds both domestic and int'l, so I'm considering either VT or AVGV. My simple question is, are both of these funds considered appropriate in a taxable account? I'm pretty sure the answer is yes, but I'm just making sure before I act.
- Thu Mar 07, 2024 9:08 pm
- Forum: Personal Consumer Issues
- Topic: Alaska trip without taking a cruise - help
- Replies: 53
- Views: 4884
Re: Alaska trip without taking a cruise - help
When I go back to Alaska, I will spend all my time on the Kenai Peninsula. I will get an Air BNB and take day trips to all the wonderful scenic trails.
- Mon Mar 04, 2024 8:18 pm
- Forum: Personal Consumer Issues
- Topic: sauna or hot tub, which to get and why?
- Replies: 52
- Views: 4859
Re: sauna or hot tub, which to get and why?
I have built saunas in three different homes I've owned. I believe it improves my sleep significantly among other benefits.
I do like to soak in a hot tub, but prefer a garden tub so I can just drain the water each time.
I do like to soak in a hot tub, but prefer a garden tub so I can just drain the water each time.
- Wed Feb 21, 2024 7:57 pm
- Forum: Personal Finance (Not Investing)
- Topic: Michigan ACA Silver near FPL; Vision and Dental
- Replies: 8
- Views: 897
Re: Michigan ACA Silver near FPL; Vision and Dental
Following. Can't answer your questions, but I live close to you and may be looking at ACA in a year or two, so I'm interested in the discussion.
- Tue Feb 20, 2024 7:14 pm
- Forum: Personal Consumer Issues
- Topic: Best < $100 purchase?
- Replies: 299
- Views: 56508
Re: Best < $100 purchase?
Probably a $99 DeWalt drill/driver. Use it for nearly every project.
- Fri Feb 16, 2024 6:00 pm
- Forum: Personal Investments
- Topic: Small Cap Value - US/International
- Replies: 25
- Views: 2433
Re: Small Cap Value - US/International
Do a search for the "Larry Portfolio". I think you will find an equity recommendation of 50% SCV, 30% Int'l SCV, and 20% EM Value.
- Wed Feb 14, 2024 8:47 am
- Forum: Personal Investments
- Topic: What I just learned from the BH's - What about you?
- Replies: 25
- Views: 2909
Re: What I just learned from the BH's - What about you?
Nevermind. I actually read the Wiki on Wash Sale rules. My bad. The above is something I learned today.Morse Code wrote: ↑Wed Feb 14, 2024 8:24 amWhy couldn't you buy the exact ETF in your IRA? Do wash sale rules apply to all your accounts collectively?
- Wed Feb 14, 2024 8:24 am
- Forum: Personal Investments
- Topic: What I just learned from the BH's - What about you?
- Replies: 25
- Views: 2909
Re: What I just learned from the BH's - What about you?
Why couldn't you buy the exact ETF in your IRA? Do wash sale rules apply to all your accounts collectively?
- Wed Feb 14, 2024 8:01 am
- Forum: Personal Investments
- Topic: Basic Question About Taxable Investing in Equities
- Replies: 11
- Views: 765
Re: Basic Question About Taxable Investing in Equities
Each of the 10 "tax lots" will have a different cost basis. The brokerage keeps up with this for you, but...you have choices about how you choose to see the basis and how you sell from your investment. If you choose "average cost basis", the account will assign the average basis to each share in each tax lot. If you sell using average cost basis, the basis used for each share is the average. If you choose "specific ID" for your cost basis, each tax lot will retain its actual basis. You'll have 10 different lots with 10 different cost basis amounts. Specific ID seems to be the most common choice here because people might want to sell or distribute shares that have the highest or the lowest cost basis. Examples....
- Wed Feb 14, 2024 7:42 am
- Forum: Personal Investments
- Topic: Basic Question About Taxable Investing in Equities
- Replies: 11
- Views: 765
- Wed Feb 14, 2024 7:32 am
- Forum: Personal Investments
- Topic: Basic Question About Taxable Investing in Equities
- Replies: 11
- Views: 765
Basic Question About Taxable Investing in Equities
In taxable accounts, I have only held money market funds for emergencies and short term saving. Due to the proceeds from the sale of a house, I'm now in a position to invest in equities in a taxable brokerage account, so I'm trying to understand the tax considerations.
If I purchase shares in a stock ETF for $10,000, ten times, for a total of $100,000, will it complicate my future taxes a lot more than if I just purchase $100,000 in one lump sum? In other words, are fewer transactions better than more, from a tax complexity standpoint, or is it easily tracked so "six of one, half dozen of the other"?
If I purchase shares in a stock ETF for $10,000, ten times, for a total of $100,000, will it complicate my future taxes a lot more than if I just purchase $100,000 in one lump sum? In other words, are fewer transactions better than more, from a tax complexity standpoint, or is it easily tracked so "six of one, half dozen of the other"?
- Sun Feb 11, 2024 9:01 am
- Forum: Investing - Theory, News & General
- Topic: Avantis Core Fixed Income ETF (AVIG)
- Replies: 19
- Views: 2029
Re: Avantis Core Fixed Income ETF (AVIG)
Thank you! Exactly the kind of discussion I was looking for.nedsaid wrote: ↑Sat Feb 10, 2024 11:40 am There is a similar thread than ran two years ago that discusses these issues. The original poster in that thread was discussing making a DFA or an Avantis Fixed Income fund as the core of their fixed income portion of their portfolio. Vineviz, NiceUnparticularman, Taylor Larimore, and myself weighed in here. You might find it interesting.
viewtopic.php?t=391133
- Sat Feb 10, 2024 6:03 am
- Forum: Investing - Theory, News & General
- Topic: Avantis Core Fixed Income ETF (AVIG)
- Replies: 19
- Views: 2029
Re: Avantis Core Fixed Income ETF (AVIG)
I'm not necessarily interested in active management, but I do want a single bond fund for my fixed income allocation. It seems the prevailing wisdom on the forum has changed to either a bond ladder or multiple funds to manage average duration. Makes me want to just go all stocks and a money market fund with a few years of expenses in retirement. I don't know if the prevailing wisdom has changed or will change, the prevailing wisdom is based on Jack Bogle's ideas on investing which has stood the test of time. I have seen enough of multiple portfolios over multiple periods perform and react to different scenarios, and at the end a lot of what we discuss has not made a huge difference. It is always very very hard to improve substantially over...
- Fri Feb 09, 2024 1:51 pm
- Forum: Investing - Theory, News & General
- Topic: Avantis Core Fixed Income ETF (AVIG)
- Replies: 19
- Views: 2029
Re: Avantis Core Fixed Income ETF (AVIG)
Yes. Actually 30% stocks, so I would have to account for that. I just wonder if getting three bond funds in a package is worth the .08 ER compared to cheaper pure bond funds.nisiprius wrote: ↑Fri Feb 09, 2024 1:32 pmTo point out the obvious, it also has 20% stocks, but I assume you knew that.Morse Code wrote: ↑Fri Feb 09, 2024 12:35 pm Thanks for the responses.
What do you guys think about using something like Vanguard's Target Retirement Income Fund as my sole fixed income component? It would give me US bonds, Int'l bonds, and short term TIPS in one package.
I think it's one of many perfectly reasonable choices.
- Fri Feb 09, 2024 12:35 pm
- Forum: Investing - Theory, News & General
- Topic: Avantis Core Fixed Income ETF (AVIG)
- Replies: 19
- Views: 2029
Re: Avantis Core Fixed Income ETF (AVIG)
Thanks for the responses.
What do you guys think about using something like Vanguard's Target Retirement Income Fund as my sole fixed income component? It would give me US bonds, Int'l bonds, and short term TIPS in one package.
What do you guys think about using something like Vanguard's Target Retirement Income Fund as my sole fixed income component? It would give me US bonds, Int'l bonds, and short term TIPS in one package.
- Fri Feb 09, 2024 8:59 am
- Forum: Investing - Theory, News & General
- Topic: Avantis Core Fixed Income ETF (AVIG)
- Replies: 19
- Views: 2029
Re: Avantis Core Fixed Income ETF (AVIG)
My advice is not to overthink bond funds (at least normal "core" bond funds--intermediate-term, investment grade). You can do your own backtesting, but what I've found is that in any portfolio with any "normal" allocation to stocks, the stock-bond ratio is hugely important, and changes would have made a big difference. The exact composition of the stocks would have made much less difference. The exact composition of bonds would have made even less. Don't think that all investing decisions need equal consideration just because they are decisions, and in all investigations look at numeric data and not just peoples' words. Focus on "how much does this matter," not just on "which is better." If you're &q...
- Fri Feb 09, 2024 6:12 am
- Forum: Investing - Theory, News & General
- Topic: Avantis Core Fixed Income ETF (AVIG)
- Replies: 19
- Views: 2029
Re: Avantis Core Fixed Income ETF (AVIG)
FYI Vanguard now has two active bond etfs, VCRB and VPLS. Probably worth considering too. I'm not necessarily interested in active management, but I do want a single bond fund for my fixed income allocation. It seems the prevailing wisdom on the forum has changed to either a bond ladder or multiple funds to manage average duration. Makes me want to just go all stocks and a money market fund with a few years of expenses in retirement. Decide what average duration suits you and use a Treasury index fund that is closest. That was my original plan, to use intermediate term Treasury, but this forum has me overthinking things I think, implying that a single intermediate term fund is suboptimal. I really value simplicity for my wife's sake after ...
- Fri Feb 09, 2024 5:57 am
- Forum: Investing - Theory, News & General
- Topic: Avantis Core Fixed Income ETF (AVIG)
- Replies: 19
- Views: 2029
Re: Avantis Core Fixed Income ETF (AVIG)
I'm not necessarily interested in active management, but I do want a single bond fund for my fixed income allocation. It seems the prevailing wisdom on the forum has changed to either a bond ladder or multiple funds to manage average duration. Makes me want to just go all stocks and a money market fund with a few years of expenses in retirement.
- Thu Feb 08, 2024 2:40 pm
- Forum: Investing - Theory, News & General
- Topic: Avantis Core Fixed Income ETF (AVIG)
- Replies: 19
- Views: 2029
Avantis Core Fixed Income ETF (AVIG)
The increased interest in fixed income investments on the forum coincides with my need to start paying more attention to fixed income as I approach retirement, so I'm exploring all my options, but I'm a little overwhelmed with all the possibilities. Does anyone have opinions or analysis to offer on this ETF from Avantis? I think of Avantis as an equity play. Do they have something to offer on the fixed income side that justifies the .15 ER and would help keep things simple for me?
- Mon Feb 05, 2024 6:50 pm
- Forum: Investing - Theory, News & General
- Topic: Lifecycle Investing Challened - Scott Cederburg
- Replies: 83
- Views: 8026
Re: Lifecycle Investing Challened - Scott Cederburg
Ok in that case I return to my confusion about how your graph tells us: A) that there is a causal relationship between relative equity valuations and investor asset allocation preference (a high bar of proof) as opposed to B) the inevitable and mathematically necessary correlative relationship between relative equity valuations and overall asset allocation across all investors I simply stated that " investor behavior is both irrational and predictable", and that "In other words, there is a strong positive correlation between stock prices and investor allocation to stocks -- investors buy more as prices rise, and vice versa." I think 0.94 since 1975 is a fairly strong positive correlation. Buying on the way up and sellin...
- Wed Jan 31, 2024 5:26 pm
- Forum: Personal Consumer Issues
- Topic: Suggestions on where to move?
- Replies: 135
- Views: 10939
Re: Suggestions on where to move?
Agree. I would never live very far from the 45th parallel north.Gecko10x wrote: ↑Wed Jan 31, 2024 3:44 pm...it's all too damn hot & humid in the summer...Isabelle77 wrote: ↑Wed Jan 31, 2024 1:17 pmYes, we considered the Grand Rapids area for a minute but it's too cold.Sax32 wrote: ↑Wed Jan 31, 2024 1:16 pmI'm from Minnesota and Wisconsin and Michigan are extremely cold in the winter. I myself cannot wait to get a secondary home in either Texas, Florida or Arizona when I'm ready. I hate winters and need an escape. The Spring, Summer and Fall are nice.Gecko10x wrote: ↑Wed Jan 31, 2024 11:41 am If you don't want hot & humid summers, you could go further north.
Maybe a medium to large city in Wisconsin or Michigan?
Ithaca, NY is nice but might not be big enough for you... maybe Syracuse, although I've not been there.
Lexington, KY seemed nice the short times I was there.
- Tue Jan 23, 2024 8:28 am
- Forum: Personal Consumer Issues
- Topic: What are some of the things that improved YOUR quality of life?
- Replies: 254
- Views: 42503
Re: What are some of the things that improved YOUR quality of life?
Doing things ourselves like house cleaning, yardwork, cooking, maintenance, home improvements...
- Wed Jan 03, 2024 8:39 pm
- Forum: Investing - Theory, News & General
- Topic: Avantis mix you prefer
- Replies: 15
- Views: 2382
Re: Avantis mix you prefer
I don't see the point in owning both AVGE and AVGV. I like AVGV all by itself.17outs wrote: ↑Wed Jan 03, 2024 2:57 pm Question to those interested: If you wanted to make a preferred 2 fund equity portfolio using Avantis funds which would you use?
I am curious on what others like in this area. I was looking at AVGE/AVGV in 50/50 but maybe even a 40/60. The latter Xray shows:
20 16 10
13 10 4
13 11 4
US 65 exUS 35
This is for long term money (30 years)
AVGE/AVUV 65/35 xray shows
12 12 10
8 8 3
24 18 6
US 80 exUS 20
Thoughts on these? What do you like better for a total portfolio with a good scv tilt while staying globally diversified?
- Sat Dec 23, 2023 7:49 am
- Forum: Investing - Theory, News & General
- Topic: Replace Bonds With International Stocks?
- Replies: 210
- Views: 26049
Re: Replace Bonds With International Stocks?
A retiree in the year 2000 did better with bonds in their portfolio than being in 100% global equity mix. I do remember that one we had folks in our office 55-64ish age range getting ulcers, panicking etc due to being nearly or actually all equities at that point. I work in tech and I remember all the dancing during the irrational exuberance phase that quickly turned into wailing and tears. Any analysis of investing strategy that does not strongly weigh human behavior should be viewed with extreme caution IMO. As they say in the RR podcast, a person should "turn off the human brain and behave like data". Some folks are better than others at this (different thresholds for panic selling). You mean behave like past data and fool you...
- Thu Dec 21, 2023 4:54 pm
- Forum: Investing - Theory, News & General
- Topic: The Illusion of the Small Cap premium
- Replies: 121
- Views: 17583
Re: The Illusion of the Small Cap premium
But the definition of "small cap premium" is small minus large. Poorly chosen title, at the very least.White Coat Investor wrote: ↑Wed Dec 20, 2023 3:57 pmI think the article is saying that you could get the same increased return with midcaps.
- Thu Dec 21, 2023 4:46 pm
- Forum: Personal Finance (Not Investing)
- Topic: how much do you think you need to retire?
- Replies: 298
- Views: 63092
Re: how much do you think you need to retire?
You're speaking my language.InNameOnly wrote: ↑Thu Dec 21, 2023 6:35 am Turns out less than I thought. Retired in 2019 with our paid off home on 40 acres in the woods. Life is like a permanent holiday. Get up, hike with the dog, return home and fix a meal, read till I feel like a nap. Drive to town once a week for groceries. Life is good.
Been retired 5 years with what I thought was 25x and portfolio is now up 22%. Been doing Roth conversions each year. Again, life is good. Keep it simple.
- Mon Dec 18, 2023 10:07 am
- Forum: Investing - Theory, News & General
- Topic: Paul Merriman -SCV- 1930-2019 Evidence - Patience Leads to Better Returns
- Replies: 161
- Views: 22240
Re: Paul Merriman -SCV- 1930-2019 Evidence - Patience Leads to Better Returns
I guess you could say the same thing about "real world returns".rkhusky wrote: ↑Mon Dec 18, 2023 6:49 amDepends on how you define “a sound”.Morse Code wrote: ↑Mon Dec 18, 2023 4:40 amSo if a tree falls in the woods, but there is no one there to hear it, it didn't make a sound?TipsQuestions wrote: ↑Sun Dec 17, 2023 2:48 pm Any SCV data more than 20-30 years old doesn't reflect real world returns, and should be discounted, if not discarded.
- Mon Dec 18, 2023 4:45 am
- Forum: Investing - Theory, News & General
- Topic: The Illusion of the Small Cap premium
- Replies: 121
- Views: 17583
Re: The Illusion of the Small Cap premium
- Mon Dec 18, 2023 4:40 am
- Forum: Investing - Theory, News & General
- Topic: Paul Merriman -SCV- 1930-2019 Evidence - Patience Leads to Better Returns
- Replies: 161
- Views: 22240
Re: Paul Merriman -SCV- 1930-2019 Evidence - Patience Leads to Better Returns
So if a tree falls in the woods, but there is no one there to hear it, it didn't make a sound?TipsQuestions wrote: ↑Sun Dec 17, 2023 2:48 pm Any SCV data more than 20-30 years old doesn't reflect real world returns, and should be discounted, if not discarded.
- Sat Dec 16, 2023 12:49 pm
- Forum: Investing - Theory, News & General
- Topic: The Illusion of the Small Cap premium
- Replies: 121
- Views: 17583
Re: The Illusion of the Small Cap premium
So small outperformed large, but it was an illusion?
- Wed Dec 13, 2023 7:27 am
- Forum: Investing - Theory, News & General
- Topic: My Case Against Factor Investing
- Replies: 93
- Views: 19567
Re: My Case Against Factor Investing
"Long periods of underperformance" might be trying on a late retiree. And you can't eat "a form of diversification." But what is under-performing what? The S&P 500 was more likely to under-perform small-cap value (SCV) in each decade, rather than the other way around. [https://www.bogleheads.org/forum/viewtopic.php?t=300811 So Mr. Ferri was incorrect when he used the phrase? ...are willing to pay higher fees, and are capable of suffering through long periods of underperformance.... Rick Ferri did not specify the frequency or likelihood of such underperformance The dataset we have shows that it occurs roughly 20% of the time, similar to the frequency of occurrence for treasuries outperforming the Total Stock Market I...
- Wed Dec 06, 2023 9:50 am
- Forum: Investing - Theory, News & General
- Topic: Avantis ETF Filing Today
- Replies: 106
- Views: 19869
Re: Avantis ETF Filing Today
AVGV and chill...drumboy256 wrote: ↑Wed Dec 06, 2023 9:35 am Oddly enough, I checked AVGV's FoF's and it looks like AVMV (Avantis Mid-cap Value) ETF has become part of the family..... Carry on!
- Wed Nov 08, 2023 10:20 am
- Forum: Personal Investments
- Topic: Permission to Do Something Scary (to me)
- Replies: 57
- Views: 6780
Re: Permission to Do Something Scary (to me)
Many thanks for all the thoughtful replies. Rather than address every comment, I'll give a few general responses: Some of you seem to think I'm suggesting retiring on 18x. I fully intend to keep making enough income so we don't have to dip into savings, whether I leave my current job or not. I don't really see the need to subject myself to a full portfolio review. We have about $1.1M with a newly built house worth $800-900K, two new vehicles, and no debt. My current employer is very unstable. Chances are good the company will either be bought-out, or go out of business in the next 2-3 years. After reading the many replies, I think the obvious thing for me to do is start the habitat business as a "side-hustle" on evenings and Satur...
- Tue Nov 07, 2023 9:11 pm
- Forum: Personal Investments
- Topic: Permission to Do Something Scary (to me)
- Replies: 57
- Views: 6780
Re: Permission to Do Something Scary (to me)
Instead I'm contemplating quitting my six-figure salary corporate job and taking a lower paying job or starting a small business doing something I enjoy. Morse Code, " Instead I'm contemplating quitting my six-figure salary corporate job and taking a lower paying job " Why do you think the lower paying job is less stressful and easier? Normally, they are not. "starting a small business doing something I enjoy. " How much money can you afford to lose while doing it? KlangFool I never said my job is stressful or hard. I've been doing it for almost thirty years and it gives me no satisfaction, just a paycheck. The type of business I'd like to start has very little start up cost or overhead. The loses would come from the op...
- Tue Nov 07, 2023 8:42 pm
- Forum: Personal Investments
- Topic: Permission to Do Something Scary (to me)
- Replies: 57
- Views: 6780
Re: Permission to Do Something Scary (to me)
I've seen that before. It does provide a different perspective.m@ver1ck wrote: ↑Tue Nov 07, 2023 8:31 pm There’s also this other calculator - that plots probably of death at an age vs probably of money lasting you.
It’s an eye opener.
Turns out the probability of my dying at certain times is 98% and change of money running out 5%..
Leading me to consider tapping out from the workforce earlier.
- Tue Nov 07, 2023 8:41 pm
- Forum: Personal Investments
- Topic: Permission to Do Something Scary (to me)
- Replies: 57
- Views: 6780
Re: Permission to Do Something Scary (to me)
This would be living my dream if I could pull it off.Beensabu wrote: ↑Tue Nov 07, 2023 8:03 pmThat is really cool. You'd definitely be filling a need.Morse Code wrote: ↑Tue Nov 07, 2023 6:36 pm The business would be a different field and would be providing wildlife habitat services in a rural area. I already have knowledge and experience with this. Leads would be provided by the local Natural Resources Conservation Service. They told me they have people ask for this kind of help frequently to implement practices required by various government programs.
- Tue Nov 07, 2023 6:37 pm
- Forum: Personal Investments
- Topic: Permission to Do Something Scary (to me)
- Replies: 57
- Views: 6780
Re: Permission to Do Something Scary (to me)
happyisland wrote: ↑Tue Nov 07, 2023 6:17 pm I guess I'll go against the grain here and say I think you should take the pay cut and the increase in life enjoyment. I'd rather have to tighten my belt and be happy than be financially more secure but miserable. I followed my own advice 20 years ago, giving up a lucrative career that was making me unhappy for an entrepreneurial venture with my best friend. I would undoubtedly have more money in the bank if I had stuck it out for the last 2 decades, but I am doing fine money-wise, and far happier than I think I would have been otherwise.
- Tue Nov 07, 2023 6:36 pm
- Forum: Personal Investments
- Topic: Permission to Do Something Scary (to me)
- Replies: 57
- Views: 6780
Re: Permission to Do Something Scary (to me)
Instead I'm contemplating quitting my six-figure salary corporate job and taking a lower paying job or starting a small business doing something I enjoy. It would help to qualify this some more. You could be talking about leaving a job which pays $300K to take a $20K a year job or leaving a job that pays $125K to take a job that pays $75K. Those are very different situations. It also was not clear if you were talking about taking a lower paying job in the same general field or starting over in some new field altogether. I don't have the statistics handy but a lot of small businesses fail and are often high pressure for the owners so I would be cautious about that. It would also be good to see what sort of jobs are available in your own fie...
- Tue Nov 07, 2023 5:54 pm
- Forum: Personal Investments
- Topic: Permission to Do Something Scary (to me)
- Replies: 57
- Views: 6780
Re: Permission to Do Something Scary (to me)
AllMostThere wrote: ↑Tue Nov 07, 2023 3:16 pm You really need to have a good handle on your expenses, now and in the future. Health Insurance is very expensive, so have a plan how to fund. Retiree insurance, ACA or other? Additionally, I would use additional modeling tools. Take a look a FireCalc, it's pretty good. Nothing wrong with downshifting provided you have a reliable plan and a fully aligned partner. Good luck. Come back here often.
https://firecalc.com/
- Tue Nov 07, 2023 5:44 pm
- Forum: Personal Investments
- Topic: Permission to Do Something Scary (to me)
- Replies: 57
- Views: 6780
Re: Permission to Do Something Scary (to me)
I would slog it out to ensure a rock-solid retirement but that’s just me. I like the feeling of security. I agree with this advice. Here are three potential strikes against your plan. Given that we don't have a complete picture of your finances, these may be more/less relevant to you, but are worth considering. 1. I retired at age 54 but had many more years of expenses covered, so consider it less risky than what you are proposing. 18x is a great start, to be sure. I would not have retired with only 18x. 2. Another challenge with your proposal is health insurance. I have super affordable retiree health insurance (thanks to my spouse) but there are many, many posts on these forums regarding very high health care expenses and game playing to...
- Tue Nov 07, 2023 3:31 pm
- Forum: Personal Investments
- Topic: Permission to Do Something Scary (to me)
- Replies: 57
- Views: 6780
Re: Permission to Do Something Scary (to me)
I like this thinking, which is probably where this is headed for me.Beensabu wrote: ↑Tue Nov 07, 2023 3:25 pm You could stick with the job (and the salary) for at least a couple more years or until you get laid off. But just take it easy and do all the prep for starting your side business.
Then find a part-time job doing whatever that offers health insurance benefits for part-timers, and spend the rest of the time on your "fun for me" business that you'll have gotten the ball rolling on by then.
- Tue Nov 07, 2023 3:27 pm
- Forum: Personal Investments
- Topic: Permission to Do Something Scary (to me)
- Replies: 57
- Views: 6780
- Tue Nov 07, 2023 3:24 pm
- Forum: Personal Investments
- Topic: Permission to Do Something Scary (to me)
- Replies: 57
- Views: 6780
Re: Permission to Do Something Scary (to me)
With all due respect, I'm considering making a change because I'm unhappy in my current situation and I've finally reached a stage where I can possibly do something about it.