Search found 586 matches

by mbasherp
Mon Apr 12, 2021 7:24 am
Forum: Personal Investments
Topic: Mortgage Payoff vs Taxable Account - What else should I consider?
Replies: 31
Views: 1823

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

It’s important that you don’t absolutely have to pay this off in 7 years. Even if it’s not paid off: -Your rate adjustment may not necessarily be what you expect -You might be able to refinance at attractive rates -Other unexpected scenarios may arise Whether you put extra in along the way or invest...
by mbasherp
Sun Apr 11, 2021 11:00 am
Forum: Investing - Theory, News & General
Topic: The First 100k
Replies: 12
Views: 2138

Re: The First 100k

Good work! To continue the line of thought of the post above, I’ve noticed that part of that sense of numbers changing is because they mean something different. There was a time for me when $100k was “A hundred thousand bucks!” and over time it became “$4k of annual expenses.” When I see $500k, I th...
by mbasherp
Sun Apr 11, 2021 8:09 am
Forum: Personal Consumer Issues
Topic: Help analyze my HVAC decision
Replies: 17
Views: 1328

Re: Help analyze my HVAC decision

Not sure which brand you are going with, but you can get a variable speed blower motor (ECM) even with a 14 Seer single speed ac and 80% furnace system ( for example, Trane offers such a configuration) That’s part of what I’m discovering to be tricky. ECM motors are all standard now and they’re lis...
by mbasherp
Sat Apr 10, 2021 6:44 pm
Forum: Personal Consumer Issues
Topic: Help analyze my HVAC decision
Replies: 17
Views: 1328

Help analyze my HVAC decision

We are replacing our HVAC and believe we have found the winning contractor via competing bids. However I’m facing some analysis paralysis with the following: We have separate systems for upstairs and downstairs: 14 SEER single stage, 80% furnaces both up and down: $10k vs Same upstairs, but upgrade ...
by mbasherp
Thu Apr 08, 2021 1:22 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

Barring catastrophe, I think you’ll be able to retire in 20 years as is your goal. The benefit of not paying a mortgage payment will be huge on your monthly expenses and you’ll probably go from thinking “we’re close but not there yet” to realizing you have more than you need, virtually overnight... ...
by mbasherp
Thu Apr 08, 2021 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: IRS 2019 tax return not yet processed - Weird??
Replies: 13
Views: 833

Re: IRS 2019 tax return not yet processed - Weird??

I mailed an amended 2018 return a year ago. In October I called and after a 90 minute wait, was told it was received and had been in process; I should expect it to be resolved and my new refund paid by November. I called yesterday and the system hung up on me after saying they were overwhelmed with ...
by mbasherp
Sat Apr 03, 2021 3:00 pm
Forum: Personal Investments
Topic: Anyone tax gain harvesting from stock bought last March
Replies: 26
Views: 1624

Re: Anyone tax gain harvesting from stock bought last March

I tax gain harvest every year up to the top of the 0% capital gains tax bracket, as closely as I can estimate. But I wait for year end. Inevitably, some of what I TGH later this year might be funds from March 2020, so yes. There are few decisions as clear as booking tax free gains every time they’re...
by mbasherp
Mon Mar 29, 2021 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Payoff New Mortgage Aggressively or Invest?
Replies: 37
Views: 3703

Re: Payoff New Mortgage Aggressively or Invest?

You’re touching on a perpetual debate around here. It’s personal. My approach is that I want to have a lot more invested than I currently do before I start locking up extra money in my house. Maybe I’ll feel differently as I get older. It would take the worst market returns in history to not beat 2....
by mbasherp
Fri Mar 26, 2021 8:07 am
Forum: Personal Consumer Issues
Topic: Experiences with professional coaching, e.g. BetterUp or others?
Replies: 26
Views: 2606

Re: Experiences with professional coaching, e.g. BetterUp or others?

techthedj wrote: Thu Mar 25, 2021 11:39 pm Quick bump - anyone?
PM sent.
by mbasherp
Wed Mar 24, 2021 10:23 am
Forum: Personal Finance (Not Investing)
Topic: How to Deal with Worry of job loss and providing for family?
Replies: 127
Views: 10269

Re: How to Deal with Worry of job loss and providing for family?

Here are my metrics: -$80k income - Home purchase price $250k, mortgage balance remaining 80k. -1,350 monthly piti is correct -165k in investments between 401k,Roth’s, traditional, etc - 10k emergency fund In a job loss situation would you use my investments to get rid of mortgage? Or only do that ...
by mbasherp
Wed Mar 24, 2021 9:44 am
Forum: Personal Finance (Not Investing)
Topic: How to Deal with Worry of job loss and providing for family?
Replies: 127
Views: 10269

Re: How to Deal with Worry of job loss and providing for family?

In a job loss situation would you use my investments to get rid of mortgage? Or only do that as a worst case if I couldn’t find new employment at a rate high enough to cover my 1,350 per month? Your investments equal a big pile of liquidity; exactly what you don’t want to get rid of during a diffic...
by mbasherp
Tue Mar 23, 2021 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: What is an average retirement a/c worth in America ?
Replies: 228
Views: 22355

Re: What is an average retirement a/c worth in America ?

I’d also like to add that how much money others have has no relevance for when you might be able to retire. What determines that is simply your expenses, minus continued income (social security, pension, etc). You need a sustainable withdrawal rate (the oft cited 4% benchmark, perhaps) out of your p...
by mbasherp
Mon Mar 22, 2021 9:15 am
Forum: Personal Finance (Not Investing)
Topic: How to Deal with Worry of job loss and providing for family?
Replies: 127
Views: 10269

Re: How to Deal with Worry of job loss and providing for family?

OldBallCoach wrote: Mon Mar 22, 2021 8:26 am Having worked in college football for 150 years
Importantly - do you have any longevity tips for the rest of us? :sharebeer
by mbasherp
Mon Mar 22, 2021 8:08 am
Forum: Personal Finance (Not Investing)
Topic: How to Deal with Worry of job loss and providing for family?
Replies: 127
Views: 10269

Re: How to Deal with Worry of job loss and providing for family?

I will second (or third?) the idea of running “worst case” scenario drills on spreadsheets, if needed. This isn’t being a pessimist; it’s having the courage to look in the closet and confront the boogeyman, or whatever might be in there. Always always always, it’s not as bad on paper as you “feel” i...
by mbasherp
Sat Mar 20, 2021 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Is an Emergency Fund Really needed in our case?
Replies: 60
Views: 5526

Re: Is an Emergency Fund Really needed in our case?

Yes. https://earlyretirementnow.com/2016/05/05/emergency-fund/ https://i1.wp.com/earlyretirementnow.com/wp-content/uploads/2016/12/efffront-with-emergency-fund.png?resize=829%2C631&ssl=1 The diagram is often used on this forum, yet it is misleading. It would be correct if the X-axis was marked ...
by mbasherp
Fri Mar 19, 2021 7:22 pm
Forum: Investing - Theory, News & General
Topic: The Modern 60/40 portfolio: BTC/VTI
Replies: 74
Views: 3787

Re: The Modern 60/40 portfolio: BTC/VTI

To clarify, reflecting as your thread is titled:

Your investment portfolio is 60% Bitcoin, 40% VTI?

A) how big is your portfolio?

B) only US equities?

C) no other cryptocurrencies? Not even ETH?

This seems to have a lot of holes in it, but I love to learn things so lay the facts on me!
by mbasherp
Fri Mar 19, 2021 10:01 am
Forum: Personal Finance (Not Investing)
Topic: "If You Can" equivalent for home buying?
Replies: 9
Views: 1646

Re: "If You Can" equivalent for home buying?

This was immensely helpful to me when I was in a similar spot:

https://michaelbluejay.com/house/
by mbasherp
Fri Mar 19, 2021 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Is an Emergency Fund Really needed in our case?
Replies: 60
Views: 5526

Re: Is an Emergency Fund Really needed in our case?

While we still keep a bit of an emergency fund with similar assets, our jobs are not as secure as yours seem to be. If I were you, I would keep enough of a cash buffer to cover you if there was an issue with paychecks being deposited on time, etc... and invest the rest. Maybe that ends up being a mo...
by mbasherp
Thu Mar 18, 2021 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Sitting on too much cash? Should we rethink taxable investing?
Replies: 55
Views: 5964

Re: Sitting on too much cash? Should we rethink taxable investing?

What tax bracket are you in- federal and state? Michigan - 4.25% Federal - 22% In 2020 specifically, now that the $10,200 UI income is not taxable, we will be below 22% once we adjust for that. Our taxable income was $82,800 including $11k UI benefits. But I expect we'll be back up into the 22% bra...
by mbasherp
Thu Mar 18, 2021 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Sitting on too much cash? Should we rethink taxable investing?
Replies: 55
Views: 5964

Re: Sitting on too much cash? Should we rethink taxable investing?

Your intuition is pointing the right direction here. You’re already aware that you should put more to 401k but have said you aren’t comfortable, so I’ll leave that as is. But it makes little sense to save cash all year which is intended to be invested the next January in a Roth IRA. If it should be ...
by mbasherp
Thu Mar 18, 2021 7:02 am
Forum: Personal Consumer Issues
Topic: Irish Whiskey
Replies: 32
Views: 2920

Re: Irish Whiskey

Redbreast 12 is just outside the range you mention, but became my gold standard for all sub $100 whiskey once I tried it.

I can’t recommend it highly enough!
by mbasherp
Tue Mar 16, 2021 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: IRS $10,200 unemployment exclusion instructions are out
Replies: 32
Views: 3445

Re: IRS $10,200 unemployment exclusion instructions are out

I also think the IRS knows they cannot possibly handle such an influx of amended returns. I amended a 2018 return last year - accepted in May... still waiting for a refund.
by mbasherp
Tue Mar 16, 2021 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: What expenses should be part of an emergency fund?
Replies: 37
Views: 2896

Re: What expenses should be part of an emergency fund?

Our emergency fund is based off of 6 months of “base” expenses - meaning normal things with only minor cutbacks like eating out and personal spending amounts. That means it includes daycare, health insurance, home maintenance, car repairs, etc. In practice though, our emergency fund is 3 months in a...
by mbasherp
Sun Mar 14, 2021 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: IRS $10,200 unemployment exclusion instructions are out
Replies: 32
Views: 3445

Re: IRS $10,200 unemployment exclusion instructions are out

From what I can see, they have not given instructions about how to proceed if you already filed. But folks like myself that hadn’t filed yet can proceed.
by mbasherp
Sun Mar 14, 2021 11:42 am
Forum: Personal Finance (Not Investing)
Topic: IRS $10,200 unemployment exclusion instructions are out
Replies: 32
Views: 3445

IRS $10,200 unemployment exclusion instructions are out

Hi, Bogleheads- I haven’t seen it posted here yet, so wanted to share that the IRS has released details of how to account for the exclusion of $10,200 of UI benefits for 2020. It allowed me to finish and file my return, since I was waiting on it: https://www.irs.gov/faqs/irs-procedures/forms-publica...
by mbasherp
Sat Mar 13, 2021 3:31 pm
Forum: Personal Investments
Topic: Should I max out my 401K?
Replies: 18
Views: 1315

Re: Should I max out my 401K?

You mention being able to get down into the 12% bracket with enough 401k contributions. This is a great thing because the 0% capital gains and dividends bracket is closely aligned with that. Essentially, if you’re willing to put more into your 401k, not only do your income taxes go down, but any div...
by mbasherp
Thu Mar 11, 2021 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Updating W4 -- Child Tax Credit Increase
Replies: 38
Views: 2750

Re: Updating W4 -- Child Tax Credit Increase

Between the new child tax credit amount and the updated child and dependent care credit cap of $4k, we are in a very different situation.

I already updated our w4 forms to have nothing withheld the rest of the year. We will still get a refund next spring.
by mbasherp
Tue Mar 09, 2021 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Renting for life - a bad idea?
Replies: 154
Views: 11012

Re: Renting for life - a bad idea?

To speak in broad strokes about the current situation, I’ve read that home prices have been going up much faster than rents. So the “pricing out” seems to be happening to those who feel they must buy, rather than anyone renting for life. I think that if you truly do the math and it makes sense for y...
by mbasherp
Mon Mar 08, 2021 11:10 pm
Forum: Investing - Theory, News & General
Topic: Which financial institution went insolvent in 2008 and caused clients to lose all savings?
Replies: 13
Views: 2180

Re: Which financial institution went insolvent in 2008 and caused clients to lose all savings?

MF Global comes to mind, but that was 2011 and most customers ultimately got back the bulk of their assets, if I remember correctly.

I wonder what are the chances that a few terrible investment choices might’ve been made. Of course, that’s not a riveting story...
by mbasherp
Sun Mar 07, 2021 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: 35 and thinking about early retirement or partial retirement
Replies: 131
Views: 13745

Re: 35 and thinking about early retirement or partial retirement

I’ll be a dissenting opinion here. If your wife is happy working, she can cover the bulk of your annual expenses on her own. That means you have bought huge flexibility for yourself and your family and can explore/choose something else to do which is more fulfilling, with very little regard for how ...
by mbasherp
Thu Mar 04, 2021 12:17 pm
Forum: Investing - Theory, News & General
Topic: How crazy is it to hold 100% equities until retirement? (ERN)
Replies: 540
Views: 21837

Re: How crazy is it to hold 100% equities until retirement? (ERN)

I was you in 2002. I was 100% stock and I gambled on Telecom stock. I capitulated. I kept most of my money in CASH for many years. I was you. I assume that nothing could go wrong until the Telecom Bust. The sad part of this story is with my saving rate, I do not need to take the unnecessary RISK of...
by mbasherp
Thu Mar 04, 2021 12:13 pm
Forum: Investing - Theory, News & General
Topic: How crazy is it to hold 100% equities until retirement? (ERN)
Replies: 540
Views: 21837

Re: How crazy is it to hold 100% equities until retirement? (ERN)

There’s an astoundingly clear line in this debate between those who define risk as volatility and those who don’t. I don’t. I’ll also add, for the naysayers complaining about the impossibility of a flexible retirement date, that the condition for that is not exclusively a bulletproof career. Again, ...
by mbasherp
Tue Mar 02, 2021 9:33 pm
Forum: Investing - Theory, News & General
Topic: Making the case for above-average returns
Replies: 38
Views: 3533

Re: Making the case for above-average returns

We have never seen growth like this before, We went from horse & cart to atom bombs and jet travel inside 50 years. The pace of technology feels slower today. The big internet muscle movement was email & web, which we have had for around a quarter century. US life expectancy has leveled off...
by mbasherp
Sun Feb 28, 2021 4:14 pm
Forum: Investing - Theory, News & General
Topic: Making the case for above-average returns
Replies: 38
Views: 3533

Re: Making the case for above-average returns

We have never seen growth like this before, We went from horse & cart to atom bombs and jet travel inside 50 years. The pace of technology feels slower today. The big internet muscle movement was email & web, which we have had for around a quarter century. US life expectancy has leveled off...
by mbasherp
Sun Feb 28, 2021 2:26 pm
Forum: Investing - Theory, News & General
Topic: Making the case for above-average returns
Replies: 38
Views: 3533

Re: Making the case for above-average returns

My theory as to why it’s possible: Technology has recently entered another rapid acceleration phase, the chief benefit of which is making our lives more efficient, both in speed and cost. The benefits of this are hard to quantify (and impossible to do so in advance) but will reach every nation in th...
by mbasherp
Fri Feb 26, 2021 10:06 pm
Forum: Investing - Theory, News & General
Topic: Debt is a Negative Bond - The White Coat Investor
Replies: 542
Views: 27330

Re: Debt is a Negative Bond - The White Coat Investor

“Debt is not a negative bond, it’s a liability.” It’s almost like we could call a liability... a... negative asset! Gee, then they could be opposite parts of the same financial document or something. Act on it or not, but debt is a negative bond. The key is that not all bonds are the same, and fixed...
by mbasherp
Thu Feb 25, 2021 8:51 pm
Forum: Personal Investments
Topic: Too High to Buy?
Replies: 51
Views: 5911

Re: Too High to Buy?

Plus, I'm almost 60 and lost my job in the Pandemic, so yeah, it's pretty scary to think about buying back in, and dreading a Market crash of some kind. It sounds like maybe a re-evaluation of your risk level and asset allocation is in order. Certainly nothing wrong with that! Why not start from sq...
by mbasherp
Thu Feb 25, 2021 8:37 pm
Forum: Personal Investments
Topic: Too High to Buy?
Replies: 51
Views: 5911

Re: Too High to Buy?

I’m not you, but I don’t think it’s too high to buy. I bought $2k of VTI at the close today in our taxable account. Tomorrow, a 401k contribution will hit, and next week another $1k will go into taxable on schedule... I have no illusions about getting the best (low) price. But I believe in following...
by mbasherp
Sun Feb 21, 2021 8:53 pm
Forum: Investing - Theory, News & General
Topic: Margin loan for cash flow
Replies: 44
Views: 3175

Re: Margin loan for cash flow

I love the idea, but no matter how hard I look, I can’t find anything that says I wouldn’t be liquidated in another flash crash. Even borrowing 1% on margin - If VTI drops to pennies for a fraction of a second as it did during the last one, IB can liquidate my holdings with no notice. Screwed. I wo...
by mbasherp
Sun Feb 21, 2021 8:51 pm
Forum: Investing - Theory, News & General
Topic: Is too much saving a zero sum game ?
Replies: 72
Views: 7275

Re: Is too much saving a zero sum game ?

Many others have commented on the main premise, but I’ll add:

I save and invest aggressively to have the freedom to donate my time and skills directly to people and causes in need. That is often far more effective than throwing money at them.
by mbasherp
Sun Feb 21, 2021 12:17 pm
Forum: Investing - Theory, News & General
Topic: Margin loan for cash flow
Replies: 44
Views: 3175

Re: Margin loan for cash flow

It's maybe possible, though I strongly doubt it, that the quotes in a flash crash could cause IB to liquidate you. But the orders should fill at reasonable prices due to the issue stated above. So you just buy back in. I’m not sure either, as I know I’m not the only one who has asked a similar ques...
by mbasherp
Sun Feb 21, 2021 9:12 am
Forum: Investing - Theory, News & General
Topic: Margin loan for cash flow
Replies: 44
Views: 3175

Re: Margin loan for cash flow

I love the idea, but no matter how hard I look, I can’t find anything that says I wouldn’t be liquidated in another flash crash. Even borrowing 1% on margin - If VTI drops to pennies for a fraction of a second as it did during the last one, IB can liquidate my holdings with no notice. Screwed. I wou...
by mbasherp
Sat Feb 20, 2021 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 2490
Views: 571136

Re: Share your net worth progression

brian91480 wrote: Fri Feb 12, 2021 9:05 pm I never tracked this. I wish I had.

This thread both depresses me, and also motivates me to do better. I'm at almost $1.1 million at age 40.
Don’t be depressed. $1 million by 40 is my stretch goal. I will feel like a champ if we hit that!
by mbasherp
Mon Feb 15, 2021 11:13 am
Forum: Investing - Theory, News & General
Topic: The premise of the "emergency fund" is flawed
Replies: 559
Views: 32891

Re: The premise of the "emergency fund" is flawed

No doubt, carrying an EF is inconsistent with a purely logical approach to AA. It means your asset allocation is different than you pretend it is. Of course, that’s not a crime. I wonder... if you knew layoffs were coming soon, would you hold on to any extra cash from your remaining paychecks or wou...
by mbasherp
Sun Feb 07, 2021 10:54 pm
Forum: Personal Investments
Topic: ESPP, 10% off, no lookback, worth it?
Replies: 26
Views: 1732

Re: ESPP, 10% off, no lookback, worth it?

DW’s ESPP sounds like she may work for the same company. We did it for a while, but stopped. Why? We had two separate events where the stock dropped so significantly between the purchase date and when we could sell the shares in her account that we were either flat or LOST money even after the disco...
by mbasherp
Thu Feb 04, 2021 5:18 pm
Forum: Personal Investments
Topic: Cryptocurrency *play money*- Algorand?
Replies: 56
Views: 4036

Re: Cryptocurrency *play money*- Algorand?

When I read posts that really hate on blockchain and say that there’s zero intrinsic value to it, I like to replace the word “blockchain” with “internet” and read the post like it’s 25 years old. As far as intrinsic value, let’s be honest - ALL value is relative, except maybe life itself. Let’s get ...
by mbasherp
Sat Jan 30, 2021 9:32 am
Forum: Personal Investments
Topic: Low-budget retirement ideas with $300K to $400K net worth
Replies: 21
Views: 2999

Re: Low-budget retirement ideas with $300K to $400K net worth

Spend some time over at earlyretirementextreme.com - lots of folks doing the kinds of things you mention.
by mbasherp
Thu Jan 21, 2021 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Any freelancers in here? Advice on incorporating?
Replies: 24
Views: 1064

Re: Any freelancers in here? Advice on incorporating?

The primary benefit of an LLC is liability protection from the actions of your employees, but if you are the only one doing the work you will be exposed even with an LLC between you and your clients. I have never heard this before. I was planning on forming an LLC for my “side work” this year speci...
by mbasherp
Wed Jan 20, 2021 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Any freelancers in here? Advice on incorporating?
Replies: 24
Views: 1064

Re: Any freelancers in here? Advice on incorporating?

The primary benefit of an LLC is liability protection from the actions of your employees, but if you are the only one doing the work you will be exposed even with an LLC between you and your clients. I have never heard this before. I was planning on forming an LLC for my “side work” this year speci...
by mbasherp
Tue Jan 19, 2021 1:30 pm
Forum: Personal Investments
Topic: Still max 401k even if no income tax liability?
Replies: 31
Views: 2291

Re: Still max 401k even if no income tax liability?

Traditional 401k contributions do not make sense in the 0% bracket unless they can help you get a tax credit. In addition to the earlier suggestion about Roth conversions (if you have a traditional/rollover IRA), you may also want to consider tax-gain harvesting if you have a taxable account, since...