Search found 732 matches
- Thu Jun 23, 2022 7:51 pm
- Forum: Personal Finance (Not Investing)
- Topic: FIRE in Early 40's?
- Replies: 130
- Views: 12109
Re: FIRE in Early 40's?
You say “Whatever I want” is a child’s answer. Yes, it is. It is non-specific, subject to emotional whims changing by the moment and inherently selfish. Relevant to the topic at hand, it is a cop out at best; one that too many people don't realize that they can't afford to waste their short life doing. Yet, you think empty platitudes like "I'm in the business of people" or "grow to become their best and achieve their potential" are profound. :oops: You pass so much judgement without asking many questions. Is there no possibility that you might learn something from someone with a different viewpoint? I did not say my response to you was profound. I answered your question of what work I do as quite literally the way it is...
- Thu Jun 23, 2022 3:40 pm
- Forum: Personal Finance (Not Investing)
- Topic: FIRE in Early 40's?
- Replies: 130
- Views: 12109
Re: FIRE in Early 40's?
Curious what you do for work that you think is so meaningful. I had what many would consider a pretty "meaningful" career. Enough that I pursued a PhD in the field. Authored many papers, hold 30+ patents, some of which really advanced my chosen field. Pioneered technology that has saved many many lives. When I felt I had come to a point in my life where I wanted to spend my time and energy doing something else (long after we were FI, i think), I had no problem walking away. You might be surprised to hear the organization I worked for, and the field itself, has continued on with barley a notice. I suspect most people are not as special, doing things nearly as "meaningful", as they would like to imagine. I think it is lar...
- Thu Jun 23, 2022 3:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: FIRE in Early 40's?
- Replies: 130
- Views: 12109
Re: FIRE in Early 40's?
Curious what you do for work that you think is so meaningful. I had what many would consider a pretty "meaningful" career. Enough that I pursued a PhD in the field. Authored many papers, hold 30+ patents, some of which really advanced my chosen field. Pioneered technology that has saved many many lives. When I felt I had come to a point in my life where I wanted to spend my time and energy doing something else (long after we were FI, i think), I had no problem walking away. You might be surprised to hear the organization I worked for, and the field itself, has continued on with barley a notice. I suspect most people are not as special, doing things nearly as "meaningful", as they would like to imagine. I think it is lar...
- Thu Jun 23, 2022 3:00 pm
- Forum: Personal Finance (Not Investing)
- Topic: FIRE in Early 40's?
- Replies: 130
- Views: 12109
Re: FIRE in Early 40's?
Not everybody's right work is paid, or paid well enough to support their desired lifestyle. FIRE might let them explore that without an actual career or paycheck. And work certainly isn't the only way to find meaning. The pursuit of FIRE convinces far too many that they need to spend years or decades doing work that isn’t theirs before they can finally be free to do what they should’ve done all along. It is a tragedy for those people. I am not anti FI. I am anti building a life of fear and avoidance and dealing with it by hiding (RE) behind a pile of money. I don’t think there are many people here are anti FI, if there’s even one. I suspect you be hard pressed to find a single person is building a life of fear and avoidance, either. I woul...
- Thu Jun 23, 2022 2:48 pm
- Forum: Personal Finance (Not Investing)
- Topic: FIRE in Early 40's?
- Replies: 130
- Views: 12109
Re: FIRE in Early 40's?
Because the right work gives life meaning. I added that in red, not because you’re wrong, but because others never realized that there’s a thing such as capital W work… Work with meaning. Their loss, on a continuing basis unfortunately. Not everybody's right work is paid, or paid well enough to support their desired lifestyle. FIRE might let them explore that without an actual career or paycheck. And work certainly isn't the only way to find meaning. The pursuit of FIRE convinces far too many that they need to spend years or decades doing work that isn’t theirs before they can finally be free to do what they should’ve done all along. It is a tragedy for those people. I am not anti FI. I am anti building a life of fear and avoidance and dea...
- Thu Jun 23, 2022 2:10 pm
- Forum: Personal Finance (Not Investing)
- Topic: FIRE in Early 40's?
- Replies: 130
- Views: 12109
Re: FIRE in Early 40's?
Personal freedom to do what? Economic freedom to do what? “Whatever I want” is a child’s answer. The real effort is in answering that question, and then with courage often realizing that there is no reason one has to put it off until after becoming fabulously wealthy doing something else. At this point in the discussion, you're basically asking, "What is the meaning of life?" Humans have been trying to answer that for at least a couple years, if not much longer. So I don't think we're going to find the answer on an Internet investing forum. "Whatever I want" really is the correct answer, within the context of personal finance. If I want to sit here, relaxing, watching the waves, then that's what I'm going to do, and I a...
- Thu Jun 23, 2022 1:22 pm
- Forum: Personal Finance (Not Investing)
- Topic: FIRE in Early 40's?
- Replies: 130
- Views: 12109
Re: FIRE in Early 40's?
Why do you want to trade your finite time on this planet for money you don't need? Because the right work gives life meaning. I added that in red, not because you’re wrong, but because others never realized that there’s a thing such as capital W work… Work with meaning. Their loss, on a continuing basis unfortunately. Not everybody's right work is paid, or paid well enough to support their desired lifestyle. FIRE might let them explore that without an actual career or paycheck. And work certainly isn't the only way to find meaning. The idea that work gives life meaning is such complete nonsense. Maybe some people find meaning in their work, but that’s pretty rare. And in the flip side, I’m sure there are tons of people who have a lot of me...
- Thu Jun 23, 2022 1:14 pm
- Forum: Personal Finance (Not Investing)
- Topic: FIRE in Early 40's?
- Replies: 130
- Views: 12109
Re: FIRE in Early 40's?
Because the right work gives life meaning. I added that in red, not because you’re wrong, but because others never realized that there’s a thing such as capital W work… Work with meaning. Their loss, on a continuing basis unfortunately. Not everybody's right work is paid, or paid well enough to support their desired lifestyle. FIRE might let them explore that without an actual career or paycheck. And work certainly isn't the only way to find meaning. No work, no wife, no kids, and 40+ more years to live. When everyone else your age is busy with their families, it might get a little depressing. Totally disagree. I am never married with no kids, as I am not interested in either. While I liked my job for much of the 23 years I worked, it was ...
- Thu Jun 23, 2022 1:10 pm
- Forum: Personal Finance (Not Investing)
- Topic: FIRE in Early 40's?
- Replies: 130
- Views: 12109
Re: FIRE in Early 40's?
Why do you want to FIRE? Why do you want to trade your finite time on this planet for money you don't need? Because the right work gives life meaning. I added that in red, not because you’re wrong, but because others never realized that there’s a thing such as capital W work… Work with meaning. Their loss, on a continuing basis unfortunately. Not everybody's right work is paid, or paid well enough to support their desired lifestyle. FIRE might let them explore that without an actual career or paycheck. And work certainly isn't the only way to find meaning. The pursuit of FIRE convinces far too many that they need to spend years or decades doing work that isn’t theirs before they can finally be free to do what they should’ve done all along....
- Wed Jun 22, 2022 9:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: FIRE in Early 40's?
- Replies: 130
- Views: 12109
Re: FIRE in Early 40's?
I added that in red, not because you’re wrong, but because others never realized that there’s a thing such as capital W work… Work with meaning. Their loss, on a continuing basis unfortunately.
- Wed Jun 22, 2022 11:23 am
- Forum: Personal Finance (Not Investing)
- Topic: Can I afford to be a SAHM?
- Replies: 41
- Views: 4856
Re: Can I afford to be a SAHM?
I'll put it this way... if you can't afford to be a SAHM with those numbers, we can't even afford to be a single family household with ours. Yet we are totally comfortable as we are.
- Wed Jun 22, 2022 9:23 am
- Forum: Investing - Theory, News & General
- Topic: Dealing with the "what ifs?" - psychology of committing to an AA
- Replies: 54
- Views: 4269
Re: Dealing with the "what ifs?" - psychology of committing to an AA
When looking at more dire scenarios, I’m of the opinion that it becomes more like how to survive a violent bear encounter: you don’t have to outrun the bear, you just have to outrun the slowest person.diabelli wrote: ↑Wed Jun 22, 2022 9:11 am My "what ifs?" used to be subtle like the OPs, with a focus on subtle differences in return.
Lately they are more apocalyptic, as I see how nuts everything can be in the world.
Specifically I wonder whether stocks will return nothing for 40 years.
So my "what ifs" have me wanting to change my AA from mainly US equities to something reflecting much more international, bonds, RE etc.
I don’t think anyone who frequents a forum like this will be the slowest person to outrun the bears you cite.
- Wed Jun 22, 2022 7:55 am
- Forum: Investing - Theory, News & General
- Topic: Dealing with the "what ifs?" - psychology of committing to an AA
- Replies: 54
- Views: 4269
Re: Dealing with the "what ifs?" - psychology of committing to an AA
Projecting into an uncertain future is rarely as productive as our obsessive minds would like us to believe. Past returns mean literally nothing moving forward; we just use them because we don’t have anything else. Really sit and ponder that - it might start to shift the way you approach this. Rather than projecting returns, assets at retirement and different portfolio constructions, why not start from a question along these lines: What choice do I know I can live with even if all the unknowables don’t go my way? What course of action, even if it ultimately means I fail, can I live with because of knowing I made the best choice available at the time? You are in the process of getting your heart and your head on the same page. Rather than le...
- Tue Jun 21, 2022 7:12 pm
- Forum: Personal Consumer Issues
- Topic: Best examples of rock 'n roll music genre ?
- Replies: 185
- Views: 13680
Re: Best examples of rock 'n roll music genre ?
A friend once convinced me that the greatest single song to play for someone who asks what rock n roll is would be “Rock and Roll” by Led Zeppelin.
I remain convinced. It has every single trademark of the genre and stands the test of time.
I remain convinced. It has every single trademark of the genre and stands the test of time.
- Tue Jun 21, 2022 12:10 pm
- Forum: Personal Consumer Issues
- Topic: Any Boglehead musicians out there?
- Replies: 284
- Views: 22076
Re: Any Boglehead musicians out there?
:beer Touring/recording musician and musical director with various acts here. It’s not an easy road, but somebody has to do it! ...Now I cling to financial websites like my life depends on it because we sure aren’t high earning our way to retirement - but I don’t regret it. Cheers to you all who keep the fire burning in your chosen way. Your path was set early in life, and I'm glad you embrace it instead of regret it! Do you still get a chance to play? What are your instruments? Definitely - I’m still mid-career, on a bus or plane (or both) every week. Always been a drummer except for the mandatory voice and piano in music school. In full transparency, I’ve leveraged my experience into another career field as well and now have two going si...
- Tue Jun 21, 2022 12:05 pm
- Forum: Personal Finance (Not Investing)
- Topic: Start mortgage loan with escrow or not
- Replies: 32
- Views: 2773
Re: Start mortgage loan with escrow or not
I’ve never been offered a mortgage where they just allowed “no escrow.” Doing so would always involve a fee, sometimes as much as 1/8 of a percent higher rate. So every mortgage I’ve had has started out with escrow.
In trying to eliminate it after closing, I had some servicers want to charge as much as $500 and others just want a letter, no fee. It’s tough to know what you’ll get until you know who you’re dealing with.
In trying to eliminate it after closing, I had some servicers want to charge as much as $500 and others just want a letter, no fee. It’s tough to know what you’ll get until you know who you’re dealing with.
- Mon Jun 20, 2022 10:18 pm
- Forum: Personal Consumer Issues
- Topic: Any Boglehead musicians out there?
- Replies: 284
- Views: 22076
Re: Any Boglehead musicians out there?
Touring/recording musician and musical director with various acts here. It’s not an easy road, but somebody has to do it! I was one-track-minded since roughly age 13, got the performance degree (BM) from an elite school and just didn’t stop. Played weddings and private events, signed record deals, slept in vans, rode private jets and everything in between. Now I cling to financial websites like my life depends on it because we sure aren’t high earning our way to retirement - but I don’t regret it.
Cheers to you all who keep the fire burning in your chosen way.
- Thu Jun 16, 2022 1:19 pm
- Forum: Personal Finance (Not Investing)
- Topic: Increasing Emergency Fund as Risk Tolerance Changes
- Replies: 17
- Views: 1261
Re: Increasing Emergency Fund as Risk Tolerance Changes
I think there's an aspect of "I want it now" to your question. But like all things in that category, immediate gratification is usually not the best path. I would not stop the investments you currently make in order to boost up your EF. $1k/month will get you there.
Keep in mind that you DO have other money in a true emergency. Roth contributions can be withdrawn without penalty. I know, you'd never want to do that, but emergency funds are all mental accounting anyway... the thought that you only have 3.5 months of funds to live on if things go badly is true only in your mind.
Keep in mind that you DO have other money in a true emergency. Roth contributions can be withdrawn without penalty. I know, you'd never want to do that, but emergency funds are all mental accounting anyway... the thought that you only have 3.5 months of funds to live on if things go badly is true only in your mind.
- Wed Jun 15, 2022 9:52 pm
- Forum: Personal Finance (Not Investing)
- Topic: Personal finance book recommendations?
- Replies: 26
- Views: 2156
Re: Personal finance book recommendations?
I’m not sure of a personal finance book I’d recommend (I think it’s simple enough to get the basics from any number of blogs) but I do highly recommend reading about behavioral finance:
Your Money And Your Brain, by Jason Zweig
Your Money And Your Brain, by Jason Zweig
- Wed Jun 15, 2022 1:11 pm
- Forum: Investing - Theory, News & General
- Topic: What 3 things have you done to anticipate the recession?
- Replies: 164
- Views: 23781
Re: What 3 things have you done to anticipate the recession?
1) always project an immediate 50% loss of equity value when imagining the future. I already did my worrying!
2) confirm that my emergency fund is in shape. Yep! Still there! Switching to I bonds 5 years ago was a particularly shrewd move.
3) feel gratitude that our family will definitely be able to weather whatever arrives economically. We are fortunate!
2) confirm that my emergency fund is in shape. Yep! Still there! Switching to I bonds 5 years ago was a particularly shrewd move.
3) feel gratitude that our family will definitely be able to weather whatever arrives economically. We are fortunate!
- Wed Jun 15, 2022 1:04 pm
- Forum: Investing - Theory, News & General
- Topic: An extreme example of inflation and a mortgage
- Replies: 42
- Views: 5082
Re: An extreme example of inflation and a mortgage
Bumping my old thread:
I remembered that I penned this post several years ago - for those who locked in the all time low pandemic mortgage rates, this scenario isn’t far off!
I’m interested to see what others think now. I never imagined that I would be so close to predicting the future!
FYI: I kept my money where my mouth is and did a 2.5% 30 year refi last fall.
I remembered that I penned this post several years ago - for those who locked in the all time low pandemic mortgage rates, this scenario isn’t far off!
I’m interested to see what others think now. I never imagined that I would be so close to predicting the future!
FYI: I kept my money where my mouth is and did a 2.5% 30 year refi last fall.
- Wed Jun 15, 2022 12:51 pm
- Forum: Personal Investments
- Topic: Is it worth increasing my investments during this period?
- Replies: 41
- Views: 5825
Re: Is it worth increasing my investments during this period?
What you’re suggesting IS market timing in a minor way, but if it results in you investing the amount of money that you could afford to all along, then it serves you well.
We always invest everything we can, so there no dial to turn up when the market drops. Set it and forget it…
We always invest everything we can, so there no dial to turn up when the market drops. Set it and forget it…
- Mon Jun 13, 2022 4:20 pm
- Forum: Investing - Theory, News & General
- Topic: How to handle the “crash?”
- Replies: 105
- Views: 15434
Re: How to handle the “crash?”
- Mon Jun 13, 2022 1:50 pm
- Forum: Investing - Theory, News & General
- Topic: How to handle the “crash?”
- Replies: 105
- Views: 15434
Re: How to handle the “crash?”
The best way to handle a crash is to be happier the lower it goes, gleefully shoveling money into a market consumed by fear because you know the truth is that buying lower will help you reach your goals that much faster.
- Mon Jun 13, 2022 12:17 pm
- Forum: Personal Investments
- Topic: Lost 1 million ! Any body else in same boat ? Looking for some reassurance
- Replies: 394
- Views: 59867
Re: Lost 1 million ! Any body else in same boat ? Looking for some reassurance
Perhaps you didn’t do a good job of setting expectations if you’re already in this mental state.
I have a couple “net worth progression” spreadsheets where I project into different possible futures to see what it will take to reach various goals. Oddly, my favorite to play with is the one that involves an immediate 50% loss in all stocks with no rapid recovery, just median returns afterwards.
Brutal, huh? Perhaps that’s why I am not concerned by the current market. I’ve already envisioned our balances MUCH smaller. The best part is that we’ll still reach our most important goals anyway.
I have a couple “net worth progression” spreadsheets where I project into different possible futures to see what it will take to reach various goals. Oddly, my favorite to play with is the one that involves an immediate 50% loss in all stocks with no rapid recovery, just median returns afterwards.
Brutal, huh? Perhaps that’s why I am not concerned by the current market. I’ve already envisioned our balances MUCH smaller. The best part is that we’ll still reach our most important goals anyway.
- Sat Jun 11, 2022 12:29 pm
- Forum: Personal Finance (Not Investing)
- Topic: Retired with 2.75% mortgage - Pay it off or let it ride
- Replies: 60
- Views: 6926
Re: Retired with 2.75% mortgage - Pay it off or let it ride
This is why I was thinking to pay off the mortgage in the next 15-20 years so the inheritance was debt free. On a net basis, the inheritance IS debt free. Either you take withdrawals now to pay it off or they take withdrawals when you pass to do so - the only factors are variations in tax consequences and interest paid vs investment returns. In general I think having no mortgage is good in retirement due to sequence of returns risk, but in your case I would lean toward keeping it and letting the estate net out to a paid off house when you pass. More than likely the children will be in their prime working years so he will have "skipped" the withdraws at 22% to pay them at 35%+. Oh goody! Agreed on SORR but also remember investment...
- Fri Jun 10, 2022 2:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: Retired with 2.75% mortgage - Pay it off or let it ride
- Replies: 60
- Views: 6926
Re: Retired with 2.75% mortgage - Pay it off or let it ride
On a net basis, the inheritance IS debt free. Either you take withdrawals now to pay it off or they take withdrawals when you pass to do so - the only factors are variations in tax consequences and interest paid vs investment returns.
In general I think having no mortgage is good in retirement due to sequence of returns risk, but in your case I would lean toward keeping it and letting the estate net out to a paid off house when you pass.
- Thu Jun 09, 2022 12:59 pm
- Forum: Personal Consumer Issues
- Topic: Economics of Wine Refrigerator
- Replies: 16
- Views: 2136
Re: Economics of Wine Refrigerator
I’m not sure if sharing direct vendors is allowed on this forum, but I’ll say that wine-searcher.com is a great way to discover them. I haven’t found one sole best source for everything but I’ve noticed patterns for the wine types we buy most and now have a short list of sellers I frequent.
(Mods feel free to delete if not allowed) my favorites are:
The Wine Buyer
B-21
Wine Library
- Thu Jun 09, 2022 8:04 am
- Forum: Personal Consumer Issues
- Topic: Economics of Wine Refrigerator
- Replies: 16
- Views: 2136
Re: Economics of Wine Refrigerator
I can’t tell you what your own economic analysis should be, but I’ll share mine as someone who recently grew into a medium sized fridge: I realized that some varieties and bottles we love are often far cheaper when buying online. I’m able to stock up on much better wines at lower prices by having a place to store them well. Some of these will be better with more age and/or are special years that we want to be able to open on future anniversaries. While the fridge was a one time cost and it has ongoing costs in electricity, it allows me to save money by spending far less per bottle, plus it allows me to hold older bottles for the future when I want them, instead of paying even more or not finding them at all. For example, I just added 3 bott...
- Mon Jun 06, 2022 7:44 am
- Forum: Investing - Theory, News & General
- Topic: Paying down mortgage vs. investing in times of rising mortgage rates
- Replies: 79
- Views: 8940
Re: Paying down mortgage vs. investing in times of rising mortgage rates
Here is what I don´t understand. If it is so obvious that investing your money in stocks and bonds is better in every way than paying down your mortgage, why do banks give out mortgages in the first place? Why are they so generous to us? Instead of getting the terrible return from you, they could get the much better and more liquid returns from stocks and bonds. I’m adding another reply to this to cover something I didn’t the first time: The majority of banks don’t keep the mortgages on their books. Your question of why do they give them out in the first place is that they are profitable to issue and sell. Often a bank will issue a mortgage and sell it to another bank (often Freddie Mac or Fannie Mae… look them up) and then these are bundl...
- Mon Jun 06, 2022 7:04 am
- Forum: Investing - Theory, News & General
- Topic: Paying down mortgage vs. investing in times of rising mortgage rates
- Replies: 79
- Views: 8940
Re: Paying down mortgage vs. investing in times of rising mortgage rates
Here is what I don´t understand. If it is so obvious that investing your money in stocks and bonds is better in every way than paying down your mortgage, why do banks give out mortgages in the first place? Why are they so generous to us? Instead of getting the terrible return from you, they could get the much better and more liquid returns from stocks and bonds. This is a much more complicated question than you might realize. Keep in mind that markets are made up of innumerable participants, each with their own goals. My goal is building wealth for decades down the road. A trader at a hedge fund might need x% profits by lunch today. A bank may need a certain number this quarter, and so on. We should never assume others are like ourselves. ...
- Sun Jun 05, 2022 7:39 am
- Forum: Investing - Theory, News & General
- Topic: Paying down mortgage vs. investing in times of rising mortgage rates
- Replies: 79
- Views: 8940
Re: Paying down mortgage vs. investing in times of rising mortgage rates
Inflation is 8 percent. Your mortgage principal is inflating away at the same rate. I have a long term fixed mortgage. I love it. This. It's not talked about enough on Bogleheads. This is possibly because we haven't seen marked inflation until very recently. But even in a low inflation environment, debt holders win. Provided, of course, you can cash flow the payment :) "Inflating away" your debt only works if your wage increases with inflation. Not everyones wage keeps up with the inflation rate. This is wrong. You wave doesn’t even have to increase “with inflation” to benefit. Any increase at all (and over time, they all move somewhat) will have the same result to a lesser degree. Your mortgage is 100% fixed. See my earlier post...
- Sat Jun 04, 2022 9:15 pm
- Forum: Investing - Theory, News & General
- Topic: Paying down mortgage vs. investing in times of rising mortgage rates
- Replies: 79
- Views: 8940
Re: Paying down mortgage vs. investing in times of rising mortgage rates
Good gosh, OP… you have gotten some really bad info somewhere. Like, run away and never consider looking back type bad info. I write that because I care. Don’t go back there. In the USA, no ordinary fixed rate mortgage I have ever heard of during modern times is callable. Your home value doesn’t matter after closing. Neither does whether you keep a job as long as your account can clear that monthly payment. You hold ALL the cards. Comparing a mortgage balance to an entire portfolio makes no sense. The comparison is the benefit of sending the NEXT dollar to this place, or that place. Maybe that’s 100k next dollars, one at a time, into your portfolio or against your mortgage balance, but either way it’s one dollar at a time toward the returns...
- Sun May 29, 2022 6:53 am
- Forum: Investing - Theory, News & General
- Topic: Are there many people with financial industry backgrounds on Bogleheads?
- Replies: 106
- Views: 14358
Re: Are there many people with financial industry backgrounds on Bogleheads?
I have a sibling who works in finance. She is always asking for my opinion or advice on personal finance topics. Despite that, she usually does her own thing that doesn’t work out quite so well.
- Wed May 18, 2022 1:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: Am I being to conservative? Pension+SS=future expenses
- Replies: 38
- Views: 4429
Re: Am I being to conservative? Pension+SS=future expenses
As a matter of philosophy more than specific to your questions:
I once ran estimate on social security payment amounts for my wife and I, 30 years from now when we would claim them. As long as we pay off our home, those would cover all expenses! I could say screw it, save nothing, just keep an emergency fund and count on that to sustain us in old age.
Instead, we save 1/3 of gross income. We decided that we like options and that a guess of anything 30 years from now is more likely to be wrong than right. There are many things worse than hitting financial independence at a relatively young age. Our savings amount is enough to get us there and also not so high as to deprive us of anything important.
I once ran estimate on social security payment amounts for my wife and I, 30 years from now when we would claim them. As long as we pay off our home, those would cover all expenses! I could say screw it, save nothing, just keep an emergency fund and count on that to sustain us in old age.
Instead, we save 1/3 of gross income. We decided that we like options and that a guess of anything 30 years from now is more likely to be wrong than right. There are many things worse than hitting financial independence at a relatively young age. Our savings amount is enough to get us there and also not so high as to deprive us of anything important.
- Sun May 15, 2022 12:22 pm
- Forum: Personal Finance (Not Investing)
- Topic: Mortgage and inflation
- Replies: 26
- Views: 3697
Re: Mortgage and inflation
With inflation (say 10% annual), the fixed mortgage cost (say 3% rate) will cost less in real terms over time Even bumping down the inflation and mortgage up a bit, how come banks are lending if they know they'll get paid back over 30 years with inflated dollars? Because in the USA, mortgages are effectively subsidized by the federal government. A 30 year, non-callable fixed rate loan is basically unheard of in the rest of the world. Yet Americans who worry about their mortgage and pay it off as soon as possible think they’re the smartest people in the room. It really is a deal. It really is too good to be true, especially right now. And yet there it is. Millions of people still call them bad. Of course millions of people still smoke, so 🤷...
- Tue Apr 26, 2022 7:53 pm
- Forum: Personal Finance (Not Investing)
- Topic: High income relative to net worth ... When to quit?
- Replies: 121
- Views: 18257
Re: High income relative to net worth ... When to quit?
You are wealthy.
You are rich.
You are young.
You are successful.
Are you wise?
There is wisdom in knowing how much is enough.
That is not an answer to your question; it’s just the direction you should look.
You are rich.
You are young.
You are successful.
Are you wise?
There is wisdom in knowing how much is enough.
That is not an answer to your question; it’s just the direction you should look.
- Tue Apr 26, 2022 1:48 pm
- Forum: Forum Issues and Administration
- Topic: Fidelity adding Bitcoin to 401(k) offerings - forum rule update?
- Replies: 3
- Views: 1348
Fidelity adding Bitcoin to 401(k) offerings - forum rule update?
I haven’t seen this posted here yet; if it has been, please delete!
In the news today is the announcement that Fidelity will begin offering Bitcoin holdings in 401(k) accounts. I am well aware of the forum’s stance on crypto - is it time to think about making a change?
In the news today is the announcement that Fidelity will begin offering Bitcoin holdings in 401(k) accounts. I am well aware of the forum’s stance on crypto - is it time to think about making a change?
- Sun Apr 17, 2022 7:37 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone regret paying off mortgage early?
- Replies: 2483
- Views: 294031
Re: Anyone regret paying off mortgage early?
Happy the person, then, whose stocks fall 50%, that they might be less attached. Yes! Yes wholeheartedly! You expect me to say no, it seems. If you can say, in trying your best to provide for your future needs, that things came up which are less than ideal, non-attachment is your friend. And if the course of action which ultimately didn’t turn out well was also the most logically sound, well then there’s no need to be unhappy in the slightest. You did your best with what you had. It is what it is. I know I could accept that. We need not make a false choice between greed and fear. There are many paths forward. The one I am articulating could use more voice on this forum. Yet still you and I have the problems of housing and old age. Expensiv...
- Sun Apr 17, 2022 1:30 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone regret paying off mortgage early?
- Replies: 2483
- Views: 294031
Re: Anyone regret paying off mortgage early?
Yes! Yes wholeheartedly! You expect me to say no, it seems.
If you can say, in trying your best to provide for your future needs, that things came up which are less than ideal, non-attachment is your friend. And if the course of action which ultimately didn’t turn out well was also the most logically sound, well then there’s no need to be unhappy in the slightest. You did your best with what you had. It is what it is. I know I could accept that.
We need not make a false choice between greed and fear. There are many paths forward. The one I am articulating could use more voice on this forum.
- Sat Apr 16, 2022 12:55 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone regret paying off mortgage early?
- Replies: 2483
- Views: 294031
Re: Anyone regret paying off mortgage early?
If "home" means your refuge, the place you have made your own, the place your children can always come back to, the edifice that secures your place in the world whose borders you would defend, the place that everything you love is there - a mortgage is a worry and an irritant and best gone ASAP. Most people are the second kind, which is why Realtors cynically call every thing they sell a "home" and not a "house" which would be more accurate. Well said. My home is not an option I look to leverage to invest the proceeds somewhere else. I think almost everyone is the second kind but some people want to fool themselves they are "outsmarting", "leveraging" or "optimizing" the market an...
- Fri Apr 15, 2022 6:02 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone regret paying off mortgage early?
- Replies: 2483
- Views: 294031
Re: Anyone regret paying off mortgage early?
I think almost everyone is the second kind but some people want to fool themselves they are "outsmarting", "leveraging" or "optimizing" the market and interest rates by borrowing to invest elsewhere. Same kind of smarter than the average bear stuff lead to the GFC of 2007-2009. Well, my perspective is mainly informed by common business practices, where financing the purchase of an expensive, durable productive asset with a loan secured by that asset is very common. The basic logic is businesses don't want to tie up too much capital in such assets, only getting it back over a long period of time as the productive asset is used to generate profits. Instead, as long as the business managers think they can invest ...
- Fri Apr 15, 2022 12:51 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone regret paying off mortgage early?
- Replies: 2483
- Views: 294031
Re: Anyone regret paying off mortgage early?
If "home" means your refuge, the place you have made your own, the place your children can always come back to, the edifice that secures your place in the world whose borders you would defend, the place that everything you love is there - a mortgage is a worry and an irritant and best gone ASAP. Most people are the second kind, which is why Realtors cynically call every thing they sell a "home" and not a "house" which would be more accurate. Well said. My home is not an option I look to leverage to invest the proceeds somewhere else. I think almost everyone is the second kind but some people want to fool themselves they are "outsmarting", "leveraging" or "optimizing" the market an...
- Fri Apr 15, 2022 12:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: Anyone regret paying off mortgage early?
- Replies: 2483
- Views: 294031
Re: Anyone regret paying off mortgage early?
I’ve read this thread several times but I don’t know if I’ve ever replied. I definitely don’t regret keeping my mortgage - which was a conscious choice I made after a windfall. I’ve since refinanced all the way down to a 2.5% 30 year. This isn’t to say that I’ve gone the other way and cashed out every penny of available equity to invest, but rather I just keep the same moderate mortgage I’ve always had (which many would call tiny these days due to the market) and worry about other things. It’s not remotely the largest line item in our budget. Of course, age is important. If I were living off my portfolio and retired, even 2.5% leverage is something I wouldn’t bother with. I will buy some of the “emotion” argument, but until full financial i...
- Tue Apr 12, 2022 8:00 am
- Forum: Personal Investments
- Topic: Almost 40 and trying to catch up - Am I doing this right?
- Replies: 13
- Views: 2319
Re: Almost 40 and trying to catch up - Am I doing this right?
You didn’t mention the interest rates on your debt, but if you want to cut back on the mortgage prepayments for other goals you could look into recasting your mortgage with your current servicer - you would reamortize the remaining balance over the remaining loan term for what is usually a couple hundred dollar fee. That would likely make your payment minuscule and you would have the ability to hit many other areas instead. I’m leaving the “mortgage payoff vs invest” topic alone here and just speaking to what you mentioned.
For someone who’s trying to catch up you aren’t starting from a bad place whatsoever… have some gratitude for that!
For someone who’s trying to catch up you aren’t starting from a bad place whatsoever… have some gratitude for that!
- Sat Apr 09, 2022 6:04 pm
- Forum: Personal Investments
- Topic: Mortgage Payoff/Pursue Other Options
- Replies: 49
- Views: 5349
Re: Mortgage Payoff/Pursue Other Options
I don’t always understand the romanticized view of paying off a mortgage and some dramatic effect of being “debt free.” With an advantageous rate, is there some room for a grey area, where maybe you just don’t like how much of your income is going to the monthly payment? We all seem to argue about the importance of $0 but why? My personal example: Sub $200k mortgage at 2.5%, 29 years remaining. The $765 payment is not even the 2nd largest item in our monthly budget. Paying it off would cause nothing dramatic at all. I could understand wanting to get out from a huge payment, but what about doing a recast and getting it down to an amount where you just say, “meh, whatever”? If we took a huge chunk of our portfolio to pay it off, $765 more to...
- Sat Apr 09, 2022 1:55 pm
- Forum: Personal Investments
- Topic: Mortgage Payoff/Pursue Other Options
- Replies: 49
- Views: 5349
Re: Mortgage Payoff/Pursue Other Options
I don’t always understand the romanticized view of paying off a mortgage and some dramatic effect of being “debt free.” Speaking as someone who has been laid off twice and it took some time to pull in a paycheck again, yes, I will be happy to have that mortgage gone. And I feel that way even though now I am in a great job and feel quite secure about it. Even though I have a sizable emergency fund. You just never know and I am willing to take only so much risk with the roof over my head, shelter being a basic survival need. This isn't romanticizing. It's a practical view of my personal finances and a decision based on many complex factors. Others make different decisions and keep the mortgage because it suits them. I choose to pay mine off....
- Fri Apr 08, 2022 9:54 pm
- Forum: Personal Investments
- Topic: Mortgage Payoff/Pursue Other Options
- Replies: 49
- Views: 5349
Re: Mortgage Payoff/Pursue Other Options
I don’t always understand the romanticized view of paying off a mortgage and some dramatic effect of being “debt free.” With an advantageous rate, is there some room for a grey area, where maybe you just don’t like how much of your income is going to the monthly payment? We all seem to argue about the importance of $0 but why? My personal example: Sub $200k mortgage at 2.5%, 29 years remaining. The $765 payment is not even the 2nd largest item in our monthly budget. Paying it off would cause nothing dramatic at all. I could understand wanting to get out from a huge payment, but what about doing a recast and getting it down to an amount where you just say, “meh, whatever”? If we took a huge chunk of our portfolio to pay it off, $765 more to ...
- Sat Apr 02, 2022 8:23 pm
- Forum: Personal Finance (Not Investing)
- Topic: Switch jobs / careers?
- Replies: 18
- Views: 2126
Re: Switch jobs / careers?
You say you’re around 25x expenses. Most people around that point would be looking for something fresh and new and not bothered by making 3x LESS pay (well, 1/3 of pay, you get it). You have a double safety net of high net worth and high earning spouse and you’ve been offered a 3x increase. I can’t imagine why you would stay… you haven’t shown any need for the “stability” that staying would offer. The stability of your current job is a handicap for you as an individual here, if it’s anything at all. This is accurate in terms of finances. The issue I worry about is career fulfillment. I’d like to have a job that I really enjoy for at least a few more years. I thought when I was younger that my present gig would fill this role, but it has be...
- Sat Apr 02, 2022 6:25 pm
- Forum: Personal Finance (Not Investing)
- Topic: Switch jobs / careers?
- Replies: 18
- Views: 2126
Re: Switch jobs / careers?
You say you’re around 25x expenses. Most people around that point would be looking for something fresh and new and not bothered by making 3x LESS pay (well, 1/3 of pay, you get it).
You have a double safety net of high net worth and high earning spouse and you’ve been offered a 3x increase. I can’t imagine why you would stay… you haven’t shown any need for the “stability” that staying would offer. The stability of your current job is a handicap for you as an individual here, if it’s anything at all.
You have a double safety net of high net worth and high earning spouse and you’ve been offered a 3x increase. I can’t imagine why you would stay… you haven’t shown any need for the “stability” that staying would offer. The stability of your current job is a handicap for you as an individual here, if it’s anything at all.