Search found 4533 matches

by simplesimon
Mon Mar 18, 2024 1:18 pm
Forum: Personal Consumer Issues
Topic: Lawn care for first time home buyer
Replies: 33
Views: 1590

Re: Lawn care for first time home buyer

BorqaZ wrote: Mon Mar 18, 2024 12:54 pm
London wrote: Mon Mar 18, 2024 12:45 pm How big is the yard? Driveway? What region?
Zillow says 0.4 acres. We have a two story 3.2k sqft home. I don't know if that is included in the 0.4 acres.

Three car side garage, so relatively longer driveway compared to front driveway.

Trees in the back of the yard.

Midwest IN/OH region.
Check out www.thelawnforum.com which is as helpful and obsessive about lawn care as Bogleheads is for personal finance.

Reddit's a good resource too and this thread helped me get started on my lawncare journey three years ago. https://www.reddit.com/r/lawncare/comme ... lawn_this/

At minimum you need a push mower and a rotary spreader.
by simplesimon
Wed Mar 13, 2024 8:13 am
Forum: Personal Finance (Not Investing)
Topic: At what point did you prioritize health over money?
Replies: 55
Views: 6240

Re: At what point did you prioritize health over money?

What specifically are you debating? I feel like I have both my health and money.
by simplesimon
Wed Mar 13, 2024 5:53 am
Forum: Personal Investments
Topic: Financial Advisor says my portfolio is akin to a retiree at age 34
Replies: 80
Views: 8055

Re: Financial Advisor says my portfolio is akin to a retiree at age 34

How did you amass $1.3M by age 34? Keep doing that.

I would simplify the investments so that you're not holding multiple funds of essentially the same thing. Something super simple would be combining everything into the one target date retirement fund and focus on your money making ability and savings rate (perhaps what your neighbors have been doing to become wealthy, their FA had nothing to do with it.)

2% AUM? By getting good Boglehead advice you just saved yourself millions of dollars that would go towards fees over your lifetime.
by simplesimon
Tue Mar 12, 2024 8:15 am
Forum: Personal Investments
Topic: How To Invest Severance
Replies: 15
Views: 2081

Re: How To Invest Severance

Colorado21a wrote: Sun Mar 10, 2024 11:52 pm Probably a dumb question, but the primary difference between a CD and a money market fund is that the money market fund's rate will fluctuate month over month whereas the % agreed to on the CD stays constant for the duration of that CD, is that correct?
Yes that's right. You're trading liquidity for certainty of yield.
by simplesimon
Mon Mar 11, 2024 7:33 am
Forum: Personal Finance (Not Investing)
Topic: Have any of you Frugal Zebras Changed Your (Spending) Stripes?
Replies: 129
Views: 10691

Re: Have any of you Frugal Zebras Changed Your (Spending) Stripes?

While for me that is exactly the kind of comfort and convenience that I’m willing to pay for (and have). Especially since you are talking about a difference that is less than 1% of our liquid assets. What is your limit? Would you pay an extra $15,000 for business class? $20,000? Let me flip the premises: In a similar thread last year, I posed the question: at what level of wealth would you pay for business class on an international one-haul flight. Several people responded that they could not conceive of any level of wealth at which they would be willing to pay for this luxury. In any case, to answer your question, we willingly paid $6500 per ticket last year for our trip to Asia. Currently, I don't see any city pair (except to China which...
by simplesimon
Mon Mar 11, 2024 6:24 am
Forum: Personal Finance (Not Investing)
Topic: Feeling stuck with the mortgage
Replies: 30
Views: 2541

Re: Feeling stuck with the mortgage

#4 should say "Sell ASAP and take the profits." There's no "pinch" of selling early when your home price appreciated 50% in five years. That 10-year rule is for when homes appreciate at their historical long term rate. I'm not so sure that you would've made that much more being invested in a typical diversified portfolio.

It sounds like your family dynamics are such that everyone living under one roof could work and #4 would be the best choice.

Reassess your finances and have a plan for the next milestones including what you'll do when kids are school age and when a parent passes. Post back here with more numbers if you need advice.
by simplesimon
Fri Mar 08, 2024 7:12 am
Forum: Personal Finance (Not Investing)
Topic: Putting in two weeks notice same day as bonus payment
Replies: 25
Views: 2775

Re: Putting in two weeks notice same day as bonus payment

Yes, that's fine. I put in my retirement notice and my manager told me to delay it because the bonus that quarter was the fiscal year end one that is delayed 2 weeks. I changed my retirement date and delayed it for 3 weeks to be sure. I got the bonus and it was well worth waiting. If you're concerned that they'll take it back, I don't think that's likely. I am just a bit nervous i have been there less than a year but an AMAZING opportunity was presented to me (i was not looking) and the timing turned out this way Do you know what the policy is around how long you have to be there to keep the bonus? They could have the right to demand it back if you had to stay at least a year. I am not 100% sure but its common knowledge people leave post b...
by simplesimon
Fri Mar 08, 2024 6:03 am
Forum: Personal Finance (Not Investing)
Topic: Putting in two weeks notice same day as bonus payment
Replies: 25
Views: 2775

Re: Putting in two weeks notice same day as bonus payment

loganvonstrangle wrote: Thu Mar 07, 2024 8:43 pm
Jack FFR1846 wrote: Thu Mar 07, 2024 8:38 pm Yes, that's fine.

I put in my retirement notice and my manager told me to delay it because the bonus that quarter was the fiscal year end one that is delayed 2 weeks. I changed my retirement date and delayed it for 3 weeks to be sure. I got the bonus and it was well worth waiting.

If you're concerned that they'll take it back, I don't think that's likely.
I am just a bit nervous i have been there less than a year but an AMAZING opportunity was presented to me (i was not looking) and the timing turned out this way
Do you know what the policy is around how long you have to be there to keep the bonus? They could have the right to demand it back if you had to stay at least a year.
by simplesimon
Thu Mar 07, 2024 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: feeling stuck with kid expenses and this phase of life
Replies: 61
Views: 7378

Re: feeling stuck with kid expenses and this phase of life

Yes, the increased spending has to come from somewhere. Myself and most others have to do the same.
by simplesimon
Thu Mar 07, 2024 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Laid off and want to downshift
Replies: 30
Views: 4761

Re: Laid off and want to downshift

dkrlz88 wrote: Thu Mar 07, 2024 7:10 pm Yes, I think I framed the issue wrong. Restated: "We used to save $120k+ per year, but if I take a lower paying less stressful role, we will only be able to save $23k per year by converting funds from taxable to tax-advantaged accounts. Does that matter?"
You'll need liquidity to buy things like cars and home repairs, but you'll probably not run your taxable account to $0 before you retire.

Based on the numbers you provided you don't need to save any more...just keep your jobs (or keep trying for a higher paying job later) and insurance and enjoy your time.
by simplesimon
Wed Mar 06, 2024 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Hedging foreign currency risk [income]
Replies: 2
Views: 312

Re: Hedging foreign currency risk [income]

My wife and her business is starting to work on international transactions where she will be paid in Euros and GBP. The nature of the contracts means that there are payments that could be at least 2 years out. Dollar amounts are $10k-20k. Is there a practical and cost effective way of hedging against currency risk for these dollar amounts? Does it make sense to do so? It would make sense to do so if one can-- my spouse persuaded her USD client to pay her in a fixed amount in GBP sterling-- they took the foreign exchange risk, to avoid that. However I believe gains on FX contracts are subject to Capital Gains Tax under IRS rules? I don't know if there is an economical way to get access to FX forward contracts (futures). Note that the cost o...
by simplesimon
Wed Mar 06, 2024 7:52 am
Forum: Personal Finance (Not Investing)
Topic: When to Actually Use my HSA Funds
Replies: 27
Views: 2533

Re: When to Actually Use my HSA Funds

I spend my contributions for expenses in the same year. Since my max contributions are greater than my expenses my HSA still accumulates.
by simplesimon
Tue Mar 05, 2024 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Hedging foreign currency risk [income]
Replies: 2
Views: 312

Hedging foreign currency risk [income]

My wife and her business is starting to work on international transactions where she will be paid in Euros and GBP. The nature of the contracts means that there are payments that could be at least 2 years out. Dollar amounts are $10k-20k.

Is there a practical and cost effective way of hedging against currency risk for these dollar amounts? Does it make sense to do so?
by simplesimon
Tue Mar 05, 2024 5:20 pm
Forum: Investing - Theory, News & General
Topic: Aggressive savers: Reduce stocks % the closer you are to your target numbers?
Replies: 32
Views: 3574

Re: Aggressive savers: Reduce stocks % the closer you are to your target numbers?

For those who are aggressive savers (think >50% of income), and are targeting a FI number ASAP... should you reduce the stock allocation the closer you are to your FI numbers? In other words switch from a "maximize returns" perspective to "maximize odds of success" perspective? I'm currently 2+ years to FI (assuming no layoffs), and that is achievable even with zero portfolio growth. When you are that close to "winning", do you still keeping going with your original portfolio (80/20), or taper it down to something safer such that a recession won't reset your clock by another 1-2 years? It makes sense to reduce risk since luck plays such a significant role in how long the portfolio lasts. How much you reduce yo...
by simplesimon
Tue Mar 05, 2024 7:17 am
Forum: Investing - Theory, News & General
Topic: Aggressive savers: Reduce stocks % the closer you are to your target numbers?
Replies: 32
Views: 3574

Re: Aggressive savers: Reduce stocks % the closer you are to your target numbers?

pasadena wrote: Tue Mar 05, 2024 7:13 am My IPS says I'm supposed to start tapering down right about now - 5 years out from early retirement, going from 80/20 today to 60/40 upon retirement.

I have to admit, this is hard and I'm not sure I won't give myself another year before I do it. I still want to retire at 60/40 but I may decide to do a shorter and steeper taper. I'm fully aware that this increases the risk that I'd have to work a year or two longer. I did update my 401(k) contributions to go to bonds, though.

Or not. I mean, that's what the IPS is for, right? But man, it's hard. I'm happy with my AA, so it's in line with my risk tolerance.
Maybe take comfort in that it's a lot better to do it now than if the markets went the other way last year.
by simplesimon
Mon Mar 04, 2024 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Payoff mortgage or maintain liquidity?
Replies: 52
Views: 3605

Re: Payoff mortgage or maintain liquidity?

All things being equal, would you rather maintain liquidity or payoff a mortgage? Assumption: there is no advantage to either option, ie, you can't earn more after taxes maintaining the cash. The cash is in a taxable account. You can't right off the mortgage interest. The interest earned on the pile of taxable cash and the mortgage exactly offset each other. There is no other debt, just the mortgage. You do not need to tap an emergency fund to payoff the mortgage, you have adequate cash reservrs to payoff the mortgage and maintain your emergency fund. The choice is to be debt free or maintain liquidity Which would you prefer? Prefer liquidity up to a point where there is very little marginal benefit for more liquidity. In practical terms e...
by simplesimon
Sun Mar 03, 2024 5:23 pm
Forum: Personal Investments
Topic: Cash for options exercise
Replies: 13
Views: 1156

Re: Cash for options exercise

plsgoobs wrote: Sun Mar 03, 2024 5:09 pm
plog wrote: Sun Mar 03, 2024 5:05 pm
I don't want to get into the whether I should or should not exercise debate.
Then you follow that with 3 red flags we are suppose to ignore and just help with ideas for financing this questionable investment we aren't allowed to question. Challenge accepted:
Fair enough. My point was that there are a hundred threads about whether or not to exercise options, but less about the ways of financing them in today's environment.
Is it really different than how to buy anything else? HELOC may be your cheapest source of secured financing. Do you have nothing else in a taxable account?
by simplesimon
Sat Mar 02, 2024 4:11 pm
Forum: Personal Consumer Issues
Topic: Do you simplify financial details with your love ones?
Replies: 16
Views: 1948

Re: Do you simplify financial details with your love ones?

gavinsiu wrote: Sat Mar 02, 2024 3:55 pm Understood. I wonder how financial advisors deal with this. A percentage of their client probably don’t know about stocks and bond. My mom’s understanding of stocks and bond is that they return more than cash long term but is volatile. May be this level of understanding is good enough?
Does she need to know more than that? For what purpose?

This is about my mom’s understanding and she trusts me with the investment decisions.
by simplesimon
Fri Mar 01, 2024 12:03 pm
Forum: Personal Investments
Topic: Investing in Demutualization (Thrifts) IPOs
Replies: 5
Views: 768

Re: Investing in Demutualization (Thrifts) IPOs

I've participated in two but both banks were local and I was already a stakeholder. I made money but honestly it was more a psychological win than a meaningful monetary benefit since I only allocated about 5% of investments in each. I did not hear of any limitation based on how much is in the account. Thanks! That is a good data point. The last 8 thrifts to IPO (since Jan 2022) had max subscriptions ranging from 20,000-80,000 shares (median of 32,500). So if the average allocation is 5% and average IPO pop is 20%, that is only $3,250. Not worth the effort if that 5% is representative. There was a Seeking Alpha author who said he received about half his allocation on Needham (which was a 80,000 max subscription and a 30% IPO pop, so that is...
by simplesimon
Fri Mar 01, 2024 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Real Stories of College Savings: what was your plan, and what happened?
Replies: 98
Views: 7341

Re: Real Stories of College Savings: what was your plan, and what happened?

Thanks for starting the thread. I have a similar profile as you and am in MA and invested in the MA 529 plan. They have a "target date" fund that starts aggressive then transitions to conservative over time.
by simplesimon
Fri Mar 01, 2024 9:40 am
Forum: Personal Investments
Topic: Investing in Demutualization (Thrifts) IPOs
Replies: 5
Views: 768

Re: Investing in Demutualization (Thrifts) IPOs

I've participated in two but both banks were local and I was already a stakeholder. I made money but honestly it was more a psychological win than a meaningful monetary benefit since I only allocated about 5% of investments in each.

I did not hear of any limitation based on how much is in the account.
by simplesimon
Thu Feb 29, 2024 1:01 pm
Forum: Personal Investments
Topic: Is the 401k still worth it?
Replies: 22
Views: 2069

Re: Is the 401k still worth it?

whereskyle wrote: Thu Feb 29, 2024 12:54 pm Wife's 401k has no good investment options. Money-market fund has a .6% ER. All balanced funds have an ER of 1%. Index funds with .6% ER.

This begs the question. When there is no good option, is the 401k still worth it above the match for the tax savings? Will likely default to a 1% ER target-date fund.

Thanks, all.
From what I recall many years ago when I contemplated the same thing, ER would have to be in the ~2% range and held there for a long time to erase the tax benefits, even more if there is a match. I'd go with the 0.6% index fund.
by simplesimon
Thu Feb 29, 2024 12:13 pm
Forum: Investing - Theory, News & General
Topic: Retirees: at what age...?
Replies: 48
Views: 5174

Re: Retirees: at what age...?

connor wrote: Thu Feb 29, 2024 10:13 am Have you ever read about Warren Buffet's lifestyle? Is he "shackled" or just living the modest lifestyle that comes naturally to him?
He was definitely shackled. The emotions he had around the purchase of a private jet is like what many Bogleheads feel about spending more on things they can afford. Fortunately for him, he came around to enjoying it.
by simplesimon
Wed Feb 28, 2024 5:56 pm
Forum: Personal Finance (Not Investing)
Topic: Reluctant breadwinner
Replies: 14
Views: 1176

Re: Reluctant breadwinner

meadowrue wrote: Wed Feb 28, 2024 5:52 pm
barnaclebob wrote: Wed Feb 28, 2024 5:34 pm Without any numbers or even indication of your salary progression its not possible to give financial advice. I just say that I hope you aren't sinking your families money into the business anymore.
Business is profitable, but barely. I make $130K/year in a LCOL area, plus an annual bonus of around 10%. DH brings in $30K in a good year, $15K in a bad year, but business expenses are $5-$10K a year. Our annual expenses are $90K, so we’re basically breaking even. He hasn’t had a loss from his business yet, so that’s a positive!
$90k sounds high for LCOL. It could be helpful to post everything so we can see if there are ways to trim this down assuming this doesn’t include much discretionary/fun spend.
by simplesimon
Wed Feb 28, 2024 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Reluctant breadwinner
Replies: 14
Views: 1176

Re: Reluctant breadwinner

How to make it financially: analyze your spending to income and try to reduce fixed costs to as close to 50% of pay as you can.

How to deal with being the main breadwinner: term life, disability insurance, and cash buffer are in place. Have confidence in my skills but also an idea of what to do in case of job loss (claim unemployment, some expense cutting, rely on cash buffer.) The rest of it is out of my control and I am at peace with that.
by simplesimon
Wed Feb 28, 2024 8:22 am
Forum: Investing - Theory, News & General
Topic: Do cap-weighted funds strictly align with BH philosophy?
Replies: 118
Views: 8901

Re: Do cap-weighted funds strictly align with BH philosophy?

Now in a taxable account, that $1 dividend gets taxed - hopefully as a "qualified" dividend, but at my tax rates, I'm left with only $0.76 after 20% LTCG and 3.8% NIIT. So I'd prefer if they hadn't paid the dividend to begin with... Back on topic, again with a total stock market - dividends remain irrelevant. If companies pay them - fine. If companies don't - fine. I don't care. My "preference" for not getting dividends (at least in taxable) has no impact on my choice. I simply accept what the market provides - however it provides. I'm not "picking" one way or the other... Let me come at my question in another way. Could the same arguments you've made not be made for VOO and QQQ? Yes the arguments can be made ...
by simplesimon
Tue Feb 27, 2024 1:18 pm
Forum: Personal Investments
Topic: Feel like I won the "game" at 41---Thoughts on Future Asset Allocation
Replies: 21
Views: 3934

Re: Feel like I won the "game" at 41---Thoughts on Future Asset Allocation

archiehr wrote: Tue Feb 27, 2024 12:53 pm My internal dilemma is whether to take more risk.
What would taking more risk accomplish for you?
by simplesimon
Tue Feb 27, 2024 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Why not convert all my funds to ETFs?
Replies: 59
Views: 6137

Re: Why not convert all my funds to ETFs?

Read this post about the "ritual" of buying/selling ETFs: viewtopic.php?p=2223489#p2223489
by simplesimon
Tue Feb 27, 2024 9:08 am
Forum: Personal Finance (Not Investing)
Topic: How to deal with/spend too much money?
Replies: 91
Views: 8902

Re: How to deal with/spend too much money?

Yes we have hobbies, not sure sharing the specifics of what they are matter. In all hobbies or interests one can always have better workspace, tools, quality. Yes we can do all those things, it is really about the change, getting used to it, the thought processes behind it, and no longer being as frugal. New world. an example. We'd like a better over the range hood to get rid of kitchen odors. The best hoods need wider space than is available. Do we then spend up to 100K for a full kitchen remodel or just get an almost good enough hood? or, I kind of want to learn to turn bowls. Do I buy a $5000 lathe, $1000 worth of tools, spend months to learn, then get some nice bowls? Someone mentioned Ramit Sethi above, who I credit with helping me wi...
by simplesimon
Mon Feb 26, 2024 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Podcast for Young Adult on Basic Personal Finance?
Replies: 10
Views: 1154

Re: Podcast for Young Adult on Basic Personal Finance?

Bogle Millennial wrote: Mon Feb 26, 2024 1:46 pm Dave Ramsey is a good introductory structure for budgeting and getting out of debt. I would agree to move onto other resources for investment guidance and philosophies though once you get to his Baby Steps 4 and beyond.

I also recommend Ramit Sethi's podcast, I will teach you to be rich. It goes into a number of topics but I appreciate his attention to how we develop our views of finances and money and the impact those have on our ability to execute a personal finance plan.
I'm a big fan of IWT and think the book is the best for someone just starting out. I give a copy of Ramit's book to all my new grad hires.
by simplesimon
Mon Feb 26, 2024 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: High Salary (>$500,000) careers
Replies: 244
Views: 28594

Re: High Salary (>$500,000) careers

123 wrote: Thu Feb 22, 2024 7:15 pm
alfaspider wrote: Thu Feb 22, 2024 11:29 am ...high-end sales are all paths that can get you there without being a senior executive or starting something on your own.
+1 Sales opportunities exist in every business line and every industry. Those with an aptitude for sales can achieve extraordinary salaries. The only limits are those they place upon themselves (geographic or industry).
+1, it's all about revenues

https://www.bloomberg.com/news/articles ... efore-bust
by simplesimon
Mon Feb 26, 2024 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Why Emergency Fund?
Replies: 80
Views: 8445

Re: Why Emergency Fund?

nisiprius wrote: Mon Feb 26, 2024 11:23 am Debt is not cash.

Have we really forgotten 2008 so quickly? Many HELOC lines of credit were frozen. You can only use a HELOC "whenever you need it" if those needs coincide with times when the bank has extra money it wants to lend out. Banks also reduced credit card limits, sometimes down to the actual amount already borrowed.

Emergencies are not always uncorrelated. 2008-2009 included a stock market crash, job loss... and freezing of lines of credit.
You'd be surprised. viewtopic.php?t=425358
by simplesimon
Mon Feb 26, 2024 6:02 am
Forum: Personal Finance (Not Investing)
Topic: Purchase House with Cash or Mortgage with Large Down Payment?
Replies: 26
Views: 3203

Re: Purchase House with Cash or Mortgage with Large Down Payment?

The return on paying for it in cash is guaranteed (not paying the 7%) while investing it to get 7% per year is not guaranteed. And because of tax drag, you'll need more than 7% investment returns...way more if you're looking at a risk-adjusted basis.

It's okay to speculate where interest rates are going - just recognize it for what it is: a gamble.
carvegybe wrote: Mon Feb 26, 2024 2:02 am I hope to retire in 10 years or less
I'm not sure why you're running 30-year payoff scenarios when your paycheck stops coming in at 10 years or less.
by simplesimon
Mon Feb 26, 2024 5:52 am
Forum: Personal Investments
Topic: Age 68 w unexpected income... where to invest?
Replies: 3
Views: 933

Re: Age 68 w unexpected income... where to invest?

I would figure out how to spend it or give it away or both.
by simplesimon
Mon Feb 26, 2024 4:16 am
Forum: Personal Finance (Not Investing)
Topic: Savings Strategy with volatile income
Replies: 10
Views: 993

Re: Savings Strategy with volatile income

I would hang onto the cash especially since you have daycare. I don’t know about where you live but if I were to pull my kid out of daycare I would not be able to get them back in anywhere given how long the waitlists are.

Secondly if you still have 20+ years of working years ahead of you, the opportunity cost of $100k is not meaningful compared to your net worth plus human capital that you’ll be investing.
by simplesimon
Sun Feb 25, 2024 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Quantifiable benefits of HELOC?
Replies: 19
Views: 1437

Re: Quantifiable benefits of HELOC?

Tom_T wrote: Sun Feb 25, 2024 9:59 am
simplesimon wrote: Sun Feb 25, 2024 9:56 am
cshell2 wrote: Sun Feb 25, 2024 9:18 am
simplesimon wrote: Sun Feb 25, 2024 8:58 am
Tom_T wrote: Sun Feb 25, 2024 7:56 am Debt is a tool. You can use it wisely or unwisely.
Yes and I'm wondering if I need the tool in my toolbox at all.
If it doesn't cost you anything to keep it open why wouldn't you want the additional tool just in case?
There are costs. $65 annually and mindspace.
You asked the question to start the thread, but it seems like you've already decided that you can do without it. People have listed benefits, but those don't appeal to you. Then, close it. :) It's not going to make-or-break you. It's a luxury that some people like to have available to them. Personal preference.
I haven’t decided yet but based on the responses so far yes leaning towards closing it.
by simplesimon
Sun Feb 25, 2024 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Quantifiable benefits of HELOC?
Replies: 19
Views: 1437

Re: Quantifiable benefits of HELOC?

cshell2 wrote: Sun Feb 25, 2024 9:18 am
simplesimon wrote: Sun Feb 25, 2024 8:58 am
Tom_T wrote: Sun Feb 25, 2024 7:56 am Debt is a tool. You can use it wisely or unwisely.
Yes and I'm wondering if I need the tool in my toolbox at all.
If it doesn't cost you anything to keep it open why wouldn't you want the additional tool just in case?
There are costs. $65 annually and mindspace.
by simplesimon
Sun Feb 25, 2024 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Why Emergency Fund?
Replies: 80
Views: 8445

Re: Why Emergency Fund?

JSPECO9 wrote: Sun Feb 25, 2024 12:45 am Someone knock some sense into me please.
You'll do what you do and learn along the way. This was certainly the case for me and for almost everyone in the history of the world.
“In the words of Fred Schwed, one of the most astute observers of the investment scene (and certainly the funniest): There are certain things that cannot be adequately explained to a virgin either by words or pictures. Nor can any description I might offer here even approximate what it feels like to lose a real chunk of money that you used to own.”
― William J. Bernstein, If You Can: How Millennials Can Get Rich Slowly
by simplesimon
Sun Feb 25, 2024 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Quantifiable benefits of HELOC?
Replies: 19
Views: 1437

Re: Quantifiable benefits of HELOC?

Tom_T wrote: Sun Feb 25, 2024 7:56 am Debt is a tool. You can use it wisely or unwisely.
Yes and I'm wondering if I need the tool in my toolbox at all.
by simplesimon
Sun Feb 25, 2024 6:47 am
Forum: Personal Finance (Not Investing)
Topic: Quantifiable benefits of HELOC?
Replies: 19
Views: 1437

Re: Quantifiable benefits of HELOC?

VanguardInvestor1972 wrote: Sat Feb 24, 2024 9:34 pm I have one open that I have never used. I consider it a back up to my emergency funds held in cash. There is a nominal annual fee to keep it open but I consider the sleep-at-night benefits worth it.
Outer Marker wrote: Sun Feb 25, 2024 6:23 am +1. My HELCO has no fees and provides a ready means to access cash if I need it. It adds zero complexity to my financial life to have a book of HELOC checks on hand. My HELOC has no fees. Having the $250K invested, vs sitting in cash, provides a significant benefit in terms of opportunity cost.
When you run out of cash you will start borrowing?
by simplesimon
Sat Feb 24, 2024 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Quantifiable benefits of HELOC?
Replies: 19
Views: 1437

Quantifiable benefits of HELOC?

I opened a HELOC a couple of years ago and after using it on a home project and quickly paying it down it's remained unused. I am considering closing it to simplify my finances and reduce number of accounts.

There was a benefit to using the HELOC because I didn't want to liquidate mutual funds at the time but I have since built up a larger cash cushion and plan to pay for future large expenditures in cash. I don't know that there was a meaningful quantifiable benefit of using the HELOC.

Has anyone used the HELOC where it provided you a meaningful benefit (that doesn't include using it to invest since I don't plan on doing that)?
by simplesimon
Thu Feb 22, 2024 10:00 am
Forum: Personal Finance (Not Investing)
Topic: FIRE vs Loving your work
Replies: 101
Views: 8363

Re: FIRE vs Loving your work

greg24 wrote: Thu Feb 22, 2024 9:50 am Many of those who choose to work when they have the funds to retire have a career that offers them high compensation, autonomy, power, respect, or some combination of those factors. It is easy to keep going when you have a nice job that treats you well.
I don't have enough to retire but the factors you describe are definitely contributors to my own job satisfaction.
by simplesimon
Thu Feb 22, 2024 6:55 am
Forum: Personal Finance (Not Investing)
Topic: Career advice: stay put and take large pay cut to keep lifestyle?
Replies: 22
Views: 1651

Re: Career advice: stay put and take large pay cut to keep lifestyle?

You’ve explored another companies and the alternative is even lower pay and more work and less flexibility?

Take some time to let you feel what you feel. I suspect you came here to vent as this doesn’t really look like a choice.
by simplesimon
Tue Feb 20, 2024 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Most informative website to learn about mortgages?
Replies: 4
Views: 581

Re: Most informative website to learn about mortgages?

iceport wrote: Tue Feb 20, 2024 11:59 am Sorry too hear this. The Mortgage Professor was definitely my go-to site, too. I saw it get bigger and more elaborate over the years, and I had hoped that would translate into some form of permanence. I had no idea Professor Guttentag was so old. Hopefully most of the functionality on that site will be preserved.
It's changed a bit. The links that directed first time buyers to specific articles are gone, you have to do a bit of digging after clicking Resources and Articles.
safari wrote: Tue Feb 20, 2024 12:15 pm Professor Guttentag passed away on February 6, 2024 at the age of 100.

https://en.m.wikipedia.org/wiki/Jack_M._Guttentag
Wow, RIP.
by simplesimon
Tue Feb 20, 2024 7:23 am
Forum: Personal Finance (Not Investing)
Topic: Most informative website to learn about mortgages?
Replies: 4
Views: 581

Most informative website to learn about mortgages?

The Mortgage Professor's website/blog was tremendously helpful for me when I was first looking to buy a home and to learn about mortgages. As they say, when you're buying a home you're really shopping for two things: the house and the mortgage.

Somewhere it mentioned the Professor turned 100 in 2023 and it looks like he's given up control of the website to his son and a former student and the main page sells advisory services. All of the articles are still there but hard to get to and not organized, which is really unfortunate.

What is your favorite resource that covers mortgages in detail?
by simplesimon
Mon Feb 19, 2024 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: 20-30X income, is that the "retirement rut"?
Replies: 90
Views: 13512

Re: 20-30X income, is that the "retirement rut"?

Say you are in your 40s with a $100,000 salary with a NW of $2,000,000 or 20x Income to NW ratio You are not quite motivated to work harder in your career (e.g. staying in the office until 8pm) because your investments daily fluctuations is more than your salary. You are comfortable enough to give your boss/upper management the middle finger if he pulls a fast one on you. However, you are not quite ready to retire early yet as in today's economy, $2million doesn't carry your that far, especially in HCOL cities like NY or SF. Is that a career to retirement "rut"? Perhaps, but in exchange I'd be cranking up the spending. I have the opposite instinct- I'd want to crank up the savings. You are almost free, but not quite. Why give up ...
by simplesimon
Sun Feb 18, 2024 6:19 am
Forum: Personal Consumer Issues
Topic: Recommendations for Vehicle with One Young Child
Replies: 25
Views: 1597

Re: Recommendations for Vehicle with One Young Child

liz24 wrote: Sun Feb 18, 2024 6:06 am
simplesimon wrote: Sun Feb 18, 2024 6:03 am Do you have a budget? Surely you've seen Honda CRV's around...any reason you're not starting there?
Great question, and sorry I did not place that in my original post- I would love to spend less than $40,000, if possible. Around $30,000 would be ideal, but I understand that may not be possible. I am not sure if I should do new or used, and I suppose that would make a slight numeric different too.

Thank you!
If it were me I'd get another Civic, but I don't buy into having larger just for safety.
by simplesimon
Sun Feb 18, 2024 6:03 am
Forum: Personal Consumer Issues
Topic: Recommendations for Vehicle with One Young Child
Replies: 25
Views: 1597

Re: Recommendations for Vehicle with One Young Child

Do you have a budget? Surely you've seen Honda CRV's around...any reason you're not starting there?
by simplesimon
Sat Feb 17, 2024 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Housing Question (Teachers)
Replies: 8
Views: 883

Re: Housing Question (Teachers)

Questions How much house can we afford? <- 3 times income, so $168,000 x 3 = $504,000 (or less). How much would you put down? <- 20% - which should negate the need for PMI. Thank you in advance. My answers to these questions are above in blue. Regards, I like the above and another guideline will get you pretty close to the same value: say cap housing expense to 28% of gross income and assume a mortgage is 2/3 of the expense (the rest going to taxes, insurance, and maintenance). $168k * 28% / 1.5 / 12 translates to a monthly mortgage of $2,600. Assuming a 6% interest rate on a 30-year mortgage, that's a mortgage size of $433k and with a 20% down payment is a home value of $540k . You'll find that these amounts are going to be conservative c...
by simplesimon
Thu Feb 15, 2024 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Down 7-Year ARM Or Invest?
Replies: 35
Views: 1692

Re: Pay Down 7-Year ARM Or Invest?

Hello friends, We recently bought a new home and at the time the best rate we could find was a 7-year ARM at 5.875%. We currently have a remaining balance of about $800k. Due to our annual bonuses, we will be able to contribute an additional 100k toward principal yearly. Our original plan was to pay down $100k a year until we pay off our home. Our retirement plan appears to be in good shape so we do not have to consider that in this scenario. A couple of questions: 1. Is it better to pay down the home or put the $100k into a HYSA until we have $800k? 2. If we pay down the home, should we consider recasting at some point to decrease our monthly payments + interest? Thanks in advance. Would you rather have simplified finances or try to optim...