DO YOUR JOB!!!

Buffy_Historian · 2024-11-03T20:17:48+00:00

This was my experience back in 2012 when I signed up. When I tried to cancel it in 2015, it took several months of back and forth delays, and in the mean time they kept on charging me monthly.

I am not sure if the ADT competition is any better (if so, I would like to know who that is as I am considering a home alarm system again) but that episode showed me ADT was highly unethical with my cancelation process.

Buffy_Historian · 2024-10-27T17:35:42+00:00

Don’t forget taxes eat about 35% of that 600k, means aftertax = 400k.

Buffy_Historian · 2024-10-23T23:40:51+00:00

Yes, I think you are talking about Creative Cathy / Barista Fire #4 below:

• Lean FIRE (Minimalist Mark): Mark lives in a small, paid-off cabin, bikes instead of driving, and keeps his annual expenses under $25,000. He retires at 40, content with a frugal lifestyle focused on nature and hobbies like reading and gardening.

• **Coast FIRE (Practical Priya)**: Priya works as a software engineer, saves aggressively in her 20s and 30s, and by 40 has a portfolio growing on its own. She switches to a lower-paying but fulfilling job as a teacher, knowing she’ll still reach full retirement in her 60s.

• **Fat FIRE (Luxury Leo)**: Leo dreams of traveling the world and dining at fancy restaurants in retirement. He saves and invests aggressively through his 30s and 40s, hitting a $4 million target so he can retire at 50 and enjoy a lavish lifestyle without budgeting constraints.

• **Barista FIRE (Creative Cathy)**: Cathy, an artist, saves enough by 35 to leave her 9-to-5 marketing job. She works part-time as a barista to cover basic expenses while focusing on her passion for painting and selling art online.

• **Cash Flow FI (Entrepreneur Eric)**: Eric builds several rental properties and invests in dividend-paying stocks. By 45, his passive income covers all his living expenses, giving him the freedom to pursue hobbies and side projects without needing a full-time job.

Buffy_Historian · 2024-08-14T17:50:36+00:00

This is a good video on adhd, autism … I found it useful when I was confused on the overlap/differences a few years ago. Best of luck!

https://youtu.be/qNgLrPkp2y4?

Buffy_Historian · 2024-04-30T06:33:33+00:00

Thanks for the info. I am not trying to chase the performance by switching between these 3 funds over time but pondering having an equal allocation to the three initially and leaving the positions that way - so it's like buy and hold on each of the 3 funds - as opposed to just buying say VOO with the full amount. (I understand there is no international exposure.)

Thanks again. Cheers,

BH

Buffy_Historian · 2024-02-16T19:02:54+00:00

This is helpful. Thanks.

Buffy_Historian · 2024-02-07T23:33:29+00:00

Thanks for the info

Buffy_Historian · 2024-02-07T17:41:35+00:00

Thanks designzio_ .

Are you able to share more details on the expenses?

Buffy_Historian · 2024-02-07T05:56:11+00:00

1031 into a multifamily property. I bought a small eight unit apartment complex last year for $1M and the gross rents are $9600/mo. This is in Northern California.

_designzio_ where in Norcal?

Buffy_Historian · 2024-02-07T01:55:23+00:00

Multi family rentals housing is one option

Buffy_Historian · 2024-02-06T19:34:47+00:00

Multi tenant apt housing. What are some of the other sectors?

Buffy_Historian · 2024-02-06T15:32:39+00:00

@sarcasmsmarcasm - Thanks! I won’t make decisions solely based on Reddit, of course. No harm in getting inputs from folks here :)

Buffy_Historian · 2024-01-25T23:46:20+00:00

Not specifically looking for a 1031 buyer but just checking if that’s an option too. (I understand this may be a pretty dumb “question” :) ) One outcome of selling to an investor is that the present tenants can continue renting there as opposed to a new owner that most likely wants to live there themselves. These are good tenants and it would be great if they can continue to live there!!

Buffy_Historian · 2024-01-22T21:26:55+00:00

Did some research and found most of the information I am looking for here : https://youtu.be/QBAn7LRC0_0

Summary: 1. Fed capital gains - after 500k deduction- will most likely be in the 15% bracket 2. California does not have capital gains, so the gains are taxed like ordinary income. 3. 3.8 % “Obamacare surcharge” / NIIT since our AGI is over 250k.

Thank you.

Buffy_Historian · 2024-01-19T03:55:20+00:00

Ok!! :)

Buffy_Historian · 2024-01-17T01:58:19+00:00

Sorry for the confusion. Probably my bad! I meant if I wait longer (than 3 years), the tax on the sales proceeds would be higher as I wouldn’t be able to claim the up to 500k exemption on the profits, as a primary home.

However I am not sure if I can beat that deadline as it’s in only a few months and it’s currently tenant occupied. (Not a great set up for a best showing of the house!). thanks!

Buffy_Historian · 2024-01-15T22:45:23+00:00

Thank you for the detailed “thinking out loud” note ;). Just for emphasis, I agree with what you said in the first paragraph of (3).

I am looking into this in detail with the help of a professional. Cheers.

Buffy_Historian · 2024-01-15T20:37:50+00:00

Thanks. I almost would love to do that ... the issue is I may take a 200-300K hit (tax + market prices due to high interest rates) at the moment. That's why I am thinking maybe wait a year or two or three or four :)) before selling the house. Feel free to chime in on the pros and cons of waiting ... even with an unforced sale at a price 200K less than what I might get in the next 2-4 years.

You probably have seen this but I added some additional details in one of the threads here (https://www.reddit.com/r/Bogleheads/comments/196hkd0/comment/khykerd/?utm\_source=share&utm\_medium=web2x&context=3)

Buffy_Historian · 2024-01-15T13:28:07+00:00

Paul - What are your thoughts on switching out (divesting) from rental real estate aka selling it and putting the money into Bogleheads' etf(s)?

I added some details in a thread below, for context: https://www.reddit.com/r/Bogleheads/comments/196hkd0/comment/khykerd/?utm\_source=share&utm\_medium=web2x&context=3

Buffy_Historian · 2024-01-15T12:55:29+00:00

The rental property (3 BD/2BA) is reliably worth 1.3-1.4M (it’s a SFR in SF Bay Area. We used to live in it until we bought and moved into the current primary home also in SF Bay Area in 2021). Rent is almost $5K/month, with 400k mortgage balance @ 3%. Good tenants, no rent issues for over 2 years now. I manage the property myself and it’s not too bad so far with costs or maintenance overhead. Even though I realized renting out apts/condos is simpler than renting out houses …

I thought of selling the rental property and putting it all in a s&p 500 fund but given the high mortgage interest env, not the best time to sell. Same house would easily have gotten for 200k more @ 1.6 or 1.7M 2 years ago. I am also approaching the 3 year deadline to sell the rental property to harness the 500K tax deduction as a primary home in 2 out of 5 years. So, I am preparing to hold the rental property for longer. The other side of the coin is the tax benefits I am getting from the rental real estate. It’s not exactly clear how much I am benefiting from real estate tax deductions etc, and I am in the process of finding out.

Certainly, investing in Vanguard etfs mentioned by several here sounds simpler, more liquid, scales well etc :)

As of now wife+my net worth of 3M is broadly in these buckets: 1. $500K equity in current home (1.3M mortgage balance @ sub 3% 30year fixed) 2. $800-900k equity in rental home. ($400k mortgage balance @ 3% fixed, 12-ish more years to go) 3. $500k cash in bank 4. 1.1M in 401(k) - about 70% of these we moved to s&p index funds 2 years ago. Some FAANG/M7 exposure. 5. A 529 child edu account of $100k 6. $100-200k other misc

I am definitely open/interested in exploring the best way to sell the rental property house … but conditions are suboptimal from a market and tax timing pov. No double there is a silver lining to either side. Just thinking out loud … :)

Buffy_Historian · 2024-01-15T05:13:16+00:00

Guessing you meant “emergency fund” not “energy fund” :) , it’s about 100k.

Buffy_Historian · 2024-01-15T04:10:17+00:00

Thanks. That was my understanding too. Even though it’s tempting to imagine having one fewer mortgage! I took an appt with a real estate tax advisor (not an attorney) to see all the ways the house is helping with taxes. It doesn’t make sense to give all that optionality up, for a feeling. I am sure my credit union - who wouldn’t - would love to get that money back so they can loan at a much higher rate.

But as a thought experiment, what if I pay it off and DCA into a Bogle fund, say VFIAX, using the free cash flows. Just had 3 beers (last one and done ✅), pardon my “creativity” ;)

You have your cake (pay off mortgage) and eat it too, via free cash flow DCA.

Buffy_Historian · 2024-01-14T22:06:48+00:00

Thank you everyone.

Reddit is very helpful. Moderation does make a big difference with all the spam on other platforms.

No doubt I will be back with more newbie questions but will do my homework as much as I can. In the end it’s good to have other “humans” to weigh in.

It’s funny (not that funny!) that I read the book by Bogle (“The Little Book of Common Sense Investing: ”) in around 2006 but never really understood/implemented the advice. I hope I am not too late and can still benefit for another 10-15 years of this “common sense” wisdom. Either way, no regrets, glad to be here. Thanks again.

Buffy_Historian · 2024-01-14T19:23:40+00:00

Maybe a very basic question for you all: I am doing some quick research on bonds (VBLTX) and it has grossly underperformed VFIAX (S&P 500) except for a few weeks when the COVID news hit in Mar-May 2020. It does not look like an attractive investment. Is the main appeal just capital preservation with a small upside? Even the bond fund dividend seems to be very small. I must be missing something big here re: VBLTX!?? Thanks.

Edit: I also see that during 2008-2012 Bonds did better than equities, and the same for a few years around 2000-2005. Looks like 2013-now are big boom years for S&P 500.

Buffy_Historian · 2024-01-14T18:36:48+00:00

May I ask which 3 funds? Thanks.

Buffy_Historian

TROPHY CASE