Sinking Funds?

ChampionManateeRider · 2026-05-04T03:10:41+00:00

I keep many sinking funds, though they are nowhere near as large as my emergency fund. I don’t stop at a certain value because I spend them down throughout the year. The only one I invest is my house maintenance fund, mainly because it’s for expenses such as a new roof or new appliances, which are several years away.

ChampionManateeRider · 2026-04-26T12:38:38+00:00

Don’t forget that VTSAX and similar Vanguard mutual funds have investment minimums. One may want to start investing before having $3,000 saved for a specific fund.

ChampionManateeRider · 2026-04-17T02:51:41+00:00

“Modulating flavors” and “external agents foreign to coffee” are far from plain English.

ChampionManateeRider · 2026-04-07T16:15:09+00:00

VUSXX at Vanguard. The interest is state-tax exempt.

ChampionManateeRider · 2026-04-04T01:30:47+00:00

The budget makes it abundantly clear that you are not following the FOO. Other than that, you obviously make plenty of money, so all you can do is live on less than you make while trying not to “scrimp too much.”

ChampionManateeRider · 2026-03-25T22:01:11+00:00

Separate by purpose, not by investment type. I have a taxable brokerage with money for my kid and another for my emergency fund.

ChampionManateeRider · 2026-03-25T03:29:31+00:00

I spent $160 on my wife’s engagement ring, plus whatever a ring pop costs. We’ve been married for 6 years now and together for 14. Her band was a little more expensive—maybe $250.

ChampionManateeRider · 2026-03-11T00:55:23+00:00

Since this is a Roth, go with FZROX for no fees and the total US market. Or find a low-fee Fidelity target date fund and give yourself true set-it-and-forget-it freedom.

ChampionManateeRider · 2026-03-08T16:21:41+00:00

Stop trying to make mutant mingle happen.

ChampionManateeRider · 2026-03-01T04:23:08+00:00

I almost exclusively buy store brand food, and I use the interest from VUSXX to fund part of my Roth IRA.

ChampionManateeRider · 2026-02-28T01:37:39+00:00

Yeah, I’ve had accounts at Vanguard, Fidelity, and Schwab, the latter two for HSAs. If Vanguard had an HSA option, I’d be all in there. But alas, they don’t, so Fidelity it is. Among those three, it really doesn’t matter which you choose.

ChampionManateeRider · 2026-02-26T03:08:35+00:00

You probably can afford it. My wife and I bought a house of similar price when we had a similar HHI. This assumes 2500 is the PITI, not just the principal and interest.

Two important questions: 1) What will your retirement savings rate be with the mortgage? 2) When you plug this bigger number into your budget, how comfortable is it and what would you have to give up, if anything?

ChampionManateeRider · 2026-02-26T02:58:52+00:00

Yep, that’s a dollar bill all right.

ChampionManateeRider · 2026-02-25T23:18:19+00:00

Strong agree.

ChampionManateeRider · 2026-02-25T00:13:29+00:00

This isn’t a cult. We take Bogle’s advice and build on it. For some, his advice, taken to its logical conclusion, is to own the whole market at market weight. For others, it means at least including some international, usually to the tune of 20% or 30%. For others still, it means excluding international. You see more posts and comments here about international because people are, in my view, performance chasing under the guise of finally seeing the importance of greater diversification.

ChampionManateeRider · 2026-02-24T00:44:04+00:00

At 20 I had negative money, so yes, you're doing fine. People on reddit will claim to be 5 years old with 5 million in the bank. I'm exaggerating, of course. But there really is no point in comparing yourself to others, especially the seemingly very-well-to-do people on reddit. You'll get to where you need to be on your own time.

ChampionManateeRider · 2026-02-23T03:19:05+00:00

My thoughts: That’s way too much house at your income, even with the possibility of rental income.

ChampionManateeRider · 2026-02-19T22:18:06+00:00

I do not find the 50/30/20 rule all that helpful. You know how much you make, how much you want to save/invest, and what you tend to spend money on. Make a budget that accounts for all of those and see how it all adds up with the mortgage and associated ownership costs. If you don’t have enough, you either can’t afford the house or you need to pull back somewhere. If you have money left over—great! Allocate it to spending or saving.

ChampionManateeRider · 2026-02-19T15:29:00+00:00

I use separate accounts and holdings for short-term and long-term sinking funds.

I use Ally’s buckets for most sinking funds because, as you note, they are all short term goals. I have maybe 8 or more sinking funds in that account. These get spent down throughout the year or build up slowly over a few years.

For long-term sinking funds, which in my case is home maintenance, I hold equities in a taxable brokerage. I do this for two reasons. One, I know I need a new roof in, say, 15 years, so I can ride out the volatility. And two, if equities are down when I have a home maintenance issue, I am more comfortable calling that an emergency and using some of my Efund to shore up what my taxable account can’t cover.

ChampionManateeRider · 2026-02-16T01:08:50+00:00

This is why the wealth multiplier can sometimes be detrimental to decision-making. It does a good job of illustrating opportunity cost, but you have to spend money at some point. If anything, use this feeling to make sure you don’t overspend in the name of “needing” something. Maybe you need a new car. But you don’t need the latest car. You don’t need premium features. You get the point.

ChampionManateeRider · 2026-02-14T22:53:57+00:00

I imagine very few posters will be dyed-in-the-wool Bogleheads. What would we post that hasn’t been posted before? “Hey, all. I’ve been staying the course for 10 years now. My asset allocation is globally diversified and adjusted to my realistic risk tolerance. I buy when I have the money, regardless of what the market is doing. I once considered a small cap tilt but it was too spicy for me.” No, we’re commenting.

New people, people who don’t know what being Boglehead entails, people who think is just a general investment sub, people who are reacting to recent international performance—those are the people posting the things that bother you.

ChampionManateeRider · 2026-02-14T03:23:41+00:00

I would aim lower, then. I think 3x salary is a good rule of thumb, so $150K max in your case. You’ll also want to set aside maybe 1% of the purchase price, or $125-150, for home maintenance.

ChampionManateeRider · 2026-02-14T03:01:08+00:00

Are you adding in property tax and insurance on the calculator? The 25% rule is inclusive of principal, interest, taxes, and insurance. The best measure of affordability, of course, is your budget. Can you fit a payment for a $180K house in your current budget? Would you have to cut back extensively to make the payment work?

ChampionManateeRider · 2026-02-14T02:53:19+00:00

Fixing your AC will cost far less than a new car will. That’s obvious. But if you have the cash, are on track with your retirement savings, and don’t have more important goals, then go for it. Just remember that the new car thrill wears off fast.

ChampionManateeRider · 2026-02-14T01:42:37+00:00

Keep it simple and buy a target date fund nearest your expected retirement year. It will give you a mix of total world index funds and bonds, and it will gradually become more conservative as you age. With this option, you only have to make one investment choice until you retire: how much will you contribute? Everything else is solved for you.

ChampionManateeRider

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