Search found 92 matches

by DJB
Sun Dec 06, 2015 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: Moving to another country - converting currency
Replies: 9
Views: 2152

Moving to another country - converting currency

Hi All,

Next week, my fiancee from South Korea will be moving to the United States for good. She will be looking to convert most of her cash to US dollars, and I am wondering if anyone has any suggestions for how to find the best exchange rate. It isn't millions of dollars, but enough where a percent or two can make a real difference. Is there anything else we need to consider?

I greatly appreciate any suggestions!
by DJB
Tue Jun 02, 2015 11:23 pm
Forum: Personal Consumer Issues
Topic: Another "should I buy this condo" post
Replies: 9
Views: 2821

Re: Another "should I buy this condo" post

All of this is excellent advice. The point about looking for a place together seems rings true. You've all saved me some stress and headache (and perhaps more). Well done as always, Bogleheads!
by DJB
Mon Jun 01, 2015 11:31 pm
Forum: Personal Consumer Issues
Topic: Another "should I buy this condo" post
Replies: 9
Views: 2821

Another "should I buy this condo" post

This board has helped me so much in the past, I figured I would solicit your advice once again. I'm currently 30, living in the SF Bay Area (though not in the city), and considering buying a condo. Appreciate your feedback in either direction. I'm currently paying $1775 for rent in a small and very average1-BR. The condo I'm considering purchasing is ~475K for a large and beautiful 1-BR that's about 6 years old. I have enough for 20% down, and after crunching the numbers, the monthly mortgage payment would be about the same. The HOA (just over 300/mo) and tax breaks seem like a wash, and I may even come out ahead and pay less overall. Of course, there is the opportunity cost of the down payment and additional costs for maintenance and trans...
by DJB
Mon Jun 01, 2015 10:11 am
Forum: Personal Consumer Issues
Topic: Best way to learn tennis for adult
Replies: 29
Views: 6117

Re: Best way to learn tennis for adult

Plus one for this. I learned on my own (actually, in group "lessons" as a while a kid), and learned many years later that my technique was completely flawed. To become at all competitive, I had to unlearn and then relearn basics like how to hold the racket. Definitely go with an instructor at the beginning for the fundamentals. It will be worth the expense for years to come. Definitely start with a beginner clinic at your local public tennis center/parks and rec department. Don't try to teach yourself because you'll just have to go back and unlearn all those bad techniques if you decide to take the sport up seriously. If you find that you enjoy the clinic, then take some private lessons and join a USTA league team. Beginner clinic...
by DJB
Fri Apr 17, 2015 12:00 am
Forum: Investing - Theory, News & General
Topic: Collecting: A Hobby First, Investment Second
Replies: 33
Views: 5057

Re: Collecting: A Hobby First, Investment Second

Rick Ferri wrote:I'm frequently asked questions about how collectibles fit into one’s investing. My blog in the WSJ describes collecting as above all an act of love. Collecting for investment alone is a lot of work and it rarely pays well. It should be viewed as a hobby first and an investment second. Only when a potential financial benefit is combined with the “psychological return” of holding collectibles does the expected payoff make sense.

Read the article here: Collecting: A Hobby First, Investment Second

Rick Ferri
I respectfully disagree with this. I've invested my entire nest egg in Beanie Babies and as soon as the market recovers, it will be smooth sailing into retirement.
by DJB
Thu Apr 16, 2015 11:51 pm
Forum: Personal Finance (Not Investing)
Topic: How do you value a pension?
Replies: 18
Views: 3698

Re: How do you valuate a pension?

I have found some practical value in a similar exercise, however instead of calculating the net value of my pension, I looked at the incremental present value of each year going forward. The purpose for doing so is to get a rough sense of the value of my total compensation to help me evaluate my current position in relation to others. It also taught me just how back-loaded these DB pensions plans are in terms of their value.
by DJB
Sun Mar 01, 2015 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Costs of loyalty to employer
Replies: 14
Views: 2640

Costs of loyalty to employer

Hi All, I saw this article in Forbes recently, and it validates what many others have shared and I have long suspected that the best way to earn a high salary is to change employers several times, especially early in one's career (http://www.forbes.com/sites/cameronkeng/2014/06/22/employees-that-stay-in-companies-longer-than-2-years-get-paid-50-less/). I have been thinking about this as it pertains to my career. I am 30 and have been with my current large employer for 7 years (first job out of graduate school). I've had a great career, really like what I do, and have received three promotions during my time there. I have been very loyal to them, and they have treated me fairly, although I'm quite sure I could make significantly more money i...
by DJB
Tue Feb 03, 2015 5:33 pm
Forum: Personal Investments
Topic: Approaching Roth IRA income limits
Replies: 15
Views: 2690

Approaching Roth IRA income limits

Hi All, I make a habit of maxing out my Roth IRA each January and this year was no exception. As I was doing my taxes, I realized I was awfully close to the income limit threshold (total MAGI was 112K+; phase-out starts at 114K for a single person). Depending on my increase/bonus this year, there is a good chance my income in 2015 will exceed 114K. Two questions: Given that I have already plunked down $5500 for my Roth, how do I approach this this year? I'll get my annual raise in March, but my end of year bonus usually comes in December, so I won't know for sure until then whether I'll exceed the income limits or not. It's likely the next couple years my income will be somewhere in the phase-out zone. How do I decide how much to contribute...
by DJB
Fri Jan 09, 2015 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Purchasing a car with credit cards for cash back rewards?
Replies: 36
Views: 5936

Re: Purchasing a car with credit cards for cash back rewards

For my last car, I negotiated to pay 16.5K on my credit card. The strategy was to wait for the dealership to call me the next day after I looked at a car. They wanted me to come back to complete the deal. I told then I would like to buy the car today, but I left my checkbook at home. I would come in if they allowed me to put the full down payment on my card. Otherwise, I'm not sure when I would be able to come in again. Given those choices, they relented, and I earned a ton of bonus points. :)
by DJB
Tue Dec 23, 2014 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Lawyer recommendations - SF Bay Area
Replies: 3
Views: 868

Lawyer recommendations - SF Bay Area

I am looking on behalf of a family member who is in a dispute with a former landlord. I don't have all the facts, but apparently the landlord is accusing my family member of intentionally damaging property and has indicated criminal and civil action will be likely. Neither my family member or I have any trusted sources to find someone who could be helpful in this kind of this, so I thought I would ask this community if anyone had any personal recommendations. Please feel free to PM me or post any other suggestions you may have for finding someone with the right background.

Thank you in advance!
by DJB
Sun Nov 16, 2014 11:22 am
Forum: Personal Finance (Not Investing)
Topic: "Downgrading" to a Porsche
Replies: 39
Views: 8650

Re: "Downgrading" to a Porsche

Valuethinker wrote:I like the idea of an older 911 than a Boxster. The Boxster just looks like a 'loadsamoney City dealer' car here in London.

Beware, they handle quite differently from a normal car-- that rear engine.

And you will develop a close and very personal relationship with your mechanic. Such is owning a car for love rather than sense.
And just to clarify, I wasn't asking just a financial question. It was a car question and lifestyle question and financial question rolled into one. I appreciate those who responded with advice in one if these areas. Helpful as always.
by DJB
Sun Nov 16, 2014 11:20 am
Forum: Personal Finance (Not Investing)
Topic: "Downgrading" to a Porsche
Replies: 39
Views: 8650

Re: "Downgrading" to a Porsche

I asked my pal JM, an authentic car expert, what he thought about the OP's situation. Below is his reply: it's stupid to ask for car advice on a money board. Unless you desperately need to get out of an expensive payment/insurance/fuel consumption/maintenance money pit situation, the car you own is the least expensive option, unless you do something extremely drastic, like selling a 3 year old BMW 7 series and getting a 5 year old Honda Civic. He has a very nice car which he likes and has proven itself to be reliable, both in his own experience, and in general in the market. He's probably got it paid off or close to it, and if he sells his $20K BMW he will probably do well to get $18k for it, and then he will spend $10k plus California sal...
by DJB
Fri Nov 14, 2014 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: "Downgrading" to a Porsche
Replies: 39
Views: 8650

"Downgrading" to a Porsche

I realize I may got a lot of flack for this post, but so far BH's have never let me down with excellent advice, so, I'll give it a shot. To summarize, a little over two years ago I bought myself a nice treat - a CPO 2009 BMW 335i coupe (Paid a tad under 30K). I was 27 and had been a life-long saver (probably to the extreme). I had a long work commute and this decision was partly driven by comfort and partly as an experiment to see whether I found any value in splurging more generally. Opinions on this forum were mixed, but I went ahead with it. After two years, I'm very happy with the car. It made the commute MUCH more comfortable and the car, surprisingly, has had no issues and been very cheap to maintain. A bit over 2 years later, I'm mov...
by DJB
Sat Nov 08, 2014 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: What if I Never Buy a House?
Replies: 109
Views: 19539

Re: What if I Never Buy a House?

I regret not buying when I had the chance. I've had similar thoughts to the OP much of my life - I planned to rent forever and loved the flexibility and financial benefits. I moved to the Bay Area in '08, and was here during the crash. There were all kinds of incentives - first time home buyer's tax credit, super low mortgage rates, and plummeting prices. Everyone told me it was a great time to buy, but I smugly brushed them off and thought things would continue to stay bad. Boy was I wrong. The first time home buyer's credit went away, rates went up (though are still very low), and housing prices in my neighborhood are 2-3 times more expensive now than they were back then. I had to give up my rent controlled apartment, and now I'm effectiv...
by DJB
Tue Nov 04, 2014 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Too much house?
Replies: 10
Views: 2757

Too much house?

Hi All, Some of you may know I recently made an offer (which was rejected) for a 1-BR condo in the SF Bay Area (250-325K). At the time, some of you had suggested I look at 2-BR condos and rent a room. Initially, I thought that was totally out of my price range, but I found some new neighborhoods I like where the prices are a bit lower. I'm considering now making another offer on a 2-BR/2.5 BA townhouse priced at 385K, but wanted your input on whether I would be buying too much house. Details: 29 and in a complicated long-distance relationship. Kids potentially 5+ years away. Stable job I like a lot, been there for over 6 years. Salary is a little over 100K with some moderate growth anticipated. Emergency fund: Check 100K in taxable mutual f...
by DJB
Tue Oct 28, 2014 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need life insurance?
Replies: 21
Views: 2472

Do I need life insurance?

My dad has had some health scares recently, and I believe this is the main reason he has been urging me to buy term life insurance. I'm 29 and (knock on wood) very healthy, so for $20-40/month I can get a pretty comprehensive policy. I'm currently single, though there is a reasonable probability (70%?) that in the future I will end up with a wife/kids. I don't think life insurance is a bad idea, but generally don't want to rush out to buy something. Here's my thinking: The only reason I'd want insurance is to protect my family. I'm currently single, and while there is a reasonable probability I end up with a wife/kids in 5+ years, there is no guarantee I'd even need it at all. I don't plan to die. I'm a realist about this stuff and have had...
by DJB
Mon Oct 27, 2014 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling rich to feeling poor overnight
Replies: 85
Views: 15437

Re: Feeling rich to feeling poor overnight

Imagine the guy in Omaha who has your same exact job. He probably makes 12K less than you in salary and pays 1K less per month than the expensive places you're lamenting. So financially it's a wash, and you get to live in SF instead of Omaha. Point is, you're being compensated for the high rent already, so just pay it and stop worrying about it. Of course the guy in Omaha is living in a 2000 square-foot house with 3 bedrooms and a nice backyard instead of a tiny studio (AND paying 1k less a month), but you're right... There is no ocean in Omaha. All true. In addition, my company has offices all over CA but also across the country, some in high COL areas and some much lower. From what I gather, salaries are not adjusted for COL in my organi...
by DJB
Mon Oct 27, 2014 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Buying First Home Opinions
Replies: 17
Views: 2639

Re: Buying First Home Opinions

I do think there is something you are missing with their argument; they are not crazy, but neither is your father. Either choice can be justified financially, but I think what you are missing is that the interest on mortgages is front loaded. You don't actually save much by making additional payments or choosing a shorter amortization schedule until many years have passed; the primary interest savings come toward the end of the mortgage. The primary reason the equity is building up faster with a shorter term loan because of the $470 extra you are paying each month which is going to principal. That same $470 could be used to increase your net worth in other ways, such as by saving it or investing it in a retirement account, so "buildin...
by DJB
Fri Oct 24, 2014 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling rich to feeling poor overnight
Replies: 85
Views: 15437

Re: Feeling rich to feeling poor overnight

AviN wrote:I live in downtown Jersey City, a somewhat expensive area where a studio is at least $1500. I pay $1050 and live in a half-studio (around 230 square feet). It's more than enough space for me.
I love the "tiny house" movement. I would do it myself, but convincing my girlfriend of that would be the bigger challenge...
by DJB
Fri Oct 24, 2014 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling rich to feeling poor overnight
Replies: 85
Views: 15437

Re: Feeling rich to feeling poor overnight

lululu wrote:You make say what $200,000 a year? And you might have to pay, say $2,500 a month's rent? And you're worried? About what? Or do I somehow have these numbers wrong?

The old rule of thumb is not to pay more than 30% if your income as rent. The % is higher now.
Low 6 figs = a little over 100K. Nowhere close to 200K.
by DJB
Fri Oct 24, 2014 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling rich to feeling poor overnight
Replies: 85
Views: 15437

Re: Feeling rich to feeling poor overnight

fareastwarriors wrote:Where do you want to live? Living in the city versus living in a sleepy East Bay suburb is not even a comparison...
Oakland - Piedmont Ave, Grand Lake, Temescal, Uptown...
by DJB
Fri Oct 24, 2014 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling rich to feeling poor overnight
Replies: 85
Views: 15437

Re: Feeling rich to feeling poor overnight

Don't move 30 minutes further from your job/life/friends. Commuting takes a huge toll on people's life and job satisfaction and also their relationships. It's impressive that you've been able to max out all tax advantaged space due to having a below-market rental for a little while. But now you don't have that - and it's OK not to max out all that space every year. Would you beat somebody up who makes $80K for not maxing out everything? What about $95K? You live in one of if not the most expensive city in America. You make good money. You're saving a ton. Suck it up and pay the higher rent and take your gross savings rate down a notch from incredibly impressive to impressive. 8-) Besides if it works out with the girl you can team up and ho...
by DJB
Fri Oct 24, 2014 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling rich to feeling poor overnight
Replies: 85
Views: 15437

Re: Feeling rich to feeling poor overnight

I think one option you missed is to find the 800 to 1100 dollars per month you need for additional rent through cutting other expenses. Do you have an expensive car you can downgrade or go without? ~300-600 per month Can you increase deductibles on any insurance you have? ~100 per month Go from expensive cell phone plan to prepaid. ~50 per month Drop cable. ~50-100 per month Eat out/drink less. ~50-100 per month Make extensive use of credit card rewards/sign on bonus's. ~50-100 per month The point I'm trying to make is for a lot of people making over 6 figures there is a good amount of lifestyle optimization that can be done which can sometimes amount to 1k or more per month. If moving 30 minutes away would increase your commute, separate ...
by DJB
Fri Oct 24, 2014 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling rich to feeling poor overnight
Replies: 85
Views: 15437

Re: Feeling rich to feeling poor overnight

Peterjens wrote:
retiredjg wrote:What if you just offered to pay more on your present location?
Why not negotiate?
I am currently a "caretaker" for a house where the owner is rarely around. My long-distance girlfriend is planning a long-term visit, and he won't allow her to stay, even though I've offered to pay additional rent. Not much I can really do about this, unfortunately.
by DJB
Fri Oct 24, 2014 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Feeling rich to feeling poor overnight
Replies: 85
Views: 15437

Feeling rich to feeling poor overnight

I have always felt rich. By almost every standard, I am rich. I'm 29, make low 6-figures, and have savings of $350K+. I max out all my tax advantaged space which comes to 33% of my gross pay. I live in the SF Bay Area. Recently, I learned that I have to move out of my current place by Dec. 1. I've gotten by paying somewhat below-market rent for years, but in the last couple years the housing market has blown up. Now, to find any comparable place in my general vicinity I will have to pay at least $800 more per month. Probably more like $1100. And just like that I went from feeling rich to feeling poor. I know this is a comparison problem and I understand my status in the world. I have lived in sub-Saharan Africa and so I know what real pover...
by DJB
Thu Oct 23, 2014 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Making an offer today
Replies: 44
Views: 7013

Re: Making an offer today

I don't understand why anyone feels the OP did something wrong with what they offered. The seller probably spent all of 1 minute deciding it wasn't viable for them. No harm, no foul. Additionally, the value of the home currently has nothing at all to do with what the seller paid for it. It may make a difference in what the seller will take for it, but shouldn't have anything to do with market value. I agree with your post. If the buyer has the time and patience, he could go around and offer on any property at a price he felt appropriate. If someone gets offended, by a 'low' offer, then that person is way too sensitive. Thanks for both of you. I'm new to this house buying thing, and I'm glad to know that some people don't think my approach ...
by DJB
Thu Oct 23, 2014 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Making an offer today
Replies: 44
Views: 7013

Re: Making an offer today

ieee488 wrote:
DJB wrote: But I figured it couldn't hurt to ask, especially knowing my intentions were honest and I genuinely want to strike a fair deal.
To you it was a "fair" price. Apparently not so to the seller.
Don't act as if you are doing the seller a "favor" by offering a "fair" price.
I've never said anything about doing the seller a favor. I didn't make an offer out of the goodness of my heart. But I don't think I hurt anybody, either.
by DJB
Thu Oct 23, 2014 12:24 am
Forum: Personal Finance (Not Investing)
Topic: Making an offer today
Replies: 44
Views: 7013

Re: Making an offer today

A side note... In my city and I think many other major cities, if a property is priced relatively correctly, an offer less than 90% of the asking price is usually not received well. In my experience, if I thought the property was priced that incorrectly, I'd just move on down the road and assume the seller was either not motivated to sell at a fair price or not looking at their property rationally. Completely agree. It's often better to let the price drop down the reality on its own than to make a "low ball" offer and hurt feelings. We offered 90% of asking price and closed at 94% of asking price, but we only made our offer after the price had dropped 15% already. We wouldn't have been able to negotiate off that initial number......
by DJB
Thu Oct 23, 2014 12:14 am
Forum: Personal Finance (Not Investing)
Topic: Making an offer today
Replies: 44
Views: 7013

Re: Making an offer today

4nursebee wrote:OP, how old are you?
I am 29.
by DJB
Wed Oct 22, 2014 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Making an offer today
Replies: 44
Views: 7013

Re: Making an offer today

You hit the nail on the head with #4. My offer was rejected. Quick update (with numbers) for those interested. The condo I made an offer on is listed right around $300K. I offered $255K, which I believe is on the low end of the ballpark (but still in the ballpark) based on what comparable properties have sold for recently. Seller verbally told the agent that she needs 289K to break even and really wants that. (she paid nearly 350K right at the peak). No counter offer. I would be willing to negotiate my offer price, but I think 289K is crazy for what it is. I would be shocked if she could get that much today. Unit has been listed for about 6 weeks and my offer was the first one she received. I told my agent to tell hers that I am interested ...
by DJB
Sun Oct 19, 2014 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: Should I (physician) get an MBA?
Replies: 31
Views: 6496

Re: Should I (physician) get an MBA?

I am a hospital administrator (no MD) in a large healthcare system and work closely with our physician leaders. There are not many physicians with strong leadership skills, and the career paths for that that do possess these skills have much more potential. What's interesting, though, is that very few have actual business degrees - they simply learn these skills on the job and through training, reading, etc. Physician leadership generally begins with strong clinical credibility. To then become a leader, more than anything you'll learn in school, focus on personal attributes/self-awareness. Practice courage. Read personal development books. Find a mentor - ask one of the MD leaders in your org. Physician leadership is an awesome career path....
by DJB
Fri Oct 17, 2014 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Making an offer today
Replies: 44
Views: 7013

Re: Making an offer today

So after asking for advice whether you should or not with the general consensus being no, you ignored the advice. [OT comment removed by admin LadyGeek] I did ask for advice, but there didn't seem to be consensus either way. There was definitely a split with more people than I expected encouraging me to go for it. The main reason against it was resale value, and some suggested I buy a 2BR-2BA instead. I looked into these. The only way I could afford it would be to move to a less desirable area, which I wasn't prepared to do. And from a financial standpoint, the demand may not be as great when it's time to sell, but as long as I get a good enough deal on the buying side, I think it's a wash. I wasn't really after consensus, since I know I'd...
by DJB
Fri Oct 17, 2014 1:46 pm
Forum: Personal Investments
Topic: 30-yr fixed or 7-year ARM
Replies: 5
Views: 998

Re: 30-yr fixed or 7-year ARM

Case for ARM: Being a small condo, there is a good chance I will be ready for a larger place in 5-7 years. I would save about $100/mo with this option. Even if I decide to keep the condo and be a landlord, after 7 years, if I applied my 100/savings to my load, I would have only $84K left. Even if rates jumped, there is a good chance I would be able to plunk down the remaining 84K and pay off the place at that point. Are you allowed to rent the condo out if you move and want to keep it? What are the parameters of the ARM, ie reset margins, how frequently after the initial 7-years, rate cap, etc. I don't fundamentally have an issue with fixed vs ARM as long as the scenario is well thought through. Most don't own specific property more than 7...
by DJB
Fri Oct 17, 2014 12:44 pm
Forum: Personal Investments
Topic: 30-yr fixed or 7-year ARM
Replies: 5
Views: 998

30-yr fixed or 7-year ARM

I am making an offer today on a 1-BR condo. In a previous thread, LongerPrimer asked why I am leaning towards a 3-yr fixed mortgage vs. an ARM. A great question that I struggled with and realized I could use some Bogleheads expertise. The rate difference between ARM and Fixed is 1%. Let's say the house price is $265K and the loan is $200K. Case for fixed: Even with the higher interest, I can easily afford to pay my mortgage and max out all my tax-advantaged accounts. The 30-year term gives me security, and I do believe that the return on my index funds will beat the 3.875 rate over time. I am also very open to the possibility of being a landlord if I decide to move to a larger place. I intend to stay in the area for a long time: Very stable...
by DJB
Fri Oct 17, 2014 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Making an offer today
Replies: 44
Views: 7013

Making an offer today

After much deliberation and input from this board, I am pulling the trigger on making an offer on a 1-BR condo. Thanks to everyone who has offered their input. I will disclose financial details at a later date. My offer is well below asking price and somewhat lower than my agent suggested. I realized that my goal in this deal isn't to squeeze every penny from the owners. I could have gone that route, and frankly I 'maximize' in most other areas of my life. I want a good deal, but I it doesn't have to be a great deal, and I don't want to take another person to the cleaners. I found my agent through Redfin. I could have shopped around more, but the first person and I hit it off pretty well. He has been a very good resource. I've looked at 8-1...
by DJB
Mon Oct 13, 2014 10:15 pm
Forum: Personal Consumer Issues
Topic: Leaning towards buying a 1-BR condo in Bay Area
Replies: 21
Views: 3428

Re: Leaning towards buying a 1-BR condo in Bay Area

Thanks for all the wonderful suggestions already in this thread! DJB: Can you provide information about your intended mortgage? We might be able to offer suggestions. Thank you and best wishes. Taylor The 1-BRs I'm looking at run about 300K. I am considering making an offer on a unit now for 260K, with between 60-80K down depending on the mortgage rates. I have about 100K in taxable mutual funds I could use as a down payment, and my parents have offered to "gift" me some money using a ~2% home equity loan. I definitely have flexibility on my side. Using mortgage calculators, I am finding that my total monthly payment, including mortgage, taxes, HOA, and insurance will be right around $1600. Certainly the first few years I would re...
by DJB
Mon Oct 13, 2014 9:17 am
Forum: Personal Consumer Issues
Topic: Leaning towards buying a 1-BR condo in Bay Area
Replies: 21
Views: 3428

Leaning towards buying a 1-BR condo in Bay Area

I have never thought it would make financial sense to buy in the Bay Area, but I am close to making an offer on a 1BR condo in the East Bay. The way the numbers work out, the mortgage + taxes + HOA will be approximately the same as the cost to rent a comparable unit. Overall, it appears slightly cheaper when I factor in tax deductions, although I know these are not huge. I'm 29, have a very stable career in the area, and don't plan to have kids for 5+ years. So I would plan to stay in this unit for at least that time, and I would be open to being a landlord beyond that if I chose to upgrade. I don't plan on capital appreciation, and even with this unit I can continue maxing out my tax advantaged accounts (about 40K per year). I found a unit...
by DJB
Fri Oct 10, 2014 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: First meeting with real estate agent
Replies: 14
Views: 2546

First meeting with real estate agent

After lots of great advice on these forums, I decided to start looking at possible condos to buy in Oakland, CA. I have my first visit with a real estate agent tomorrow. I like Redfin's business model and I found him as a partner agent through their website.

Any advice for a first time home buyer? I'm more in the browsing mode than dead set on buying, and I am sure I will want to be patient and learn as much as I can about the market before I'm ready to take the plunge?

Would love some guidance from you really smart people.
by DJB
Tue Oct 07, 2014 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Another "Am I ready to buy?" post
Replies: 3
Views: 1236

Another "Am I ready to buy?" post

HI All, I've been firmly in the "rent my whole life" camp for a while, at least living in the SF Bay area (Oakland to be precise). A couple factors have me starting to think about potentially buying a place: Friction with my landlord who I share the house with but who is rarely home. I currently pay $1500 inc. utilities, which is a bit below market in the area. I am in a long distance relationship, and my GF is considering staying with me for ~3 months. Above landlord does not appear to too fond of the idea of her staying here, even after I offered to pay for her time. It seems like it's probably time to leave. The housing market around here is crazy. Renting a decent 1-BR around here will run me 1600-2000/month + utilities. I can...
by DJB
Sun Aug 24, 2014 1:38 pm
Forum: Personal Consumer Issues
Topic: Best nose hair trimmer (is this okay to ask?)
Replies: 36
Views: 5234

Re: Best nose hair trimmer (is this okay to ask?)

I have recently found hair in new places, and after lots of evaluation it seems like there is are no "professional grade" nose hair trimmers on the market. I've got capital. Anyone with gadgetry experience want to do business?
by DJB
Sun Aug 24, 2014 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Which apartment to chose? (Bay Area)
Replies: 13
Views: 2297

Re: Which apartment to chose? (Bay Area)

Heard there was a quake up there. Are you OK in your area? Was the damage localized? I've always considered moving to Northern CA but have always been a little watchful about the quakes! I was jostled awake at 3:30am - the shaking seemed to last for about 10 seconds. No damage here - the only damage was near the epicenter. Of course, there is always the chance of another "big one." It was a little strange when I moved out here feeling tremors every once it a while, but overall I'm fine dealing with it. I once saw a map that showed the cumulative risk of all natural disasters (hurricanes, storms, earthquakes, etc), and actually the Bay Area was somewhere in the middle with everything accounted for. There are risks anywhere, and I ...
by DJB
Sun Aug 24, 2014 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Which apartment to chose? (Bay Area)
Replies: 13
Views: 2297

Re: Which apartment to chose? (Bay Area)

Thank you all for the thoughtful comments and suggestions. I did express my displeasure to my current landlord about the hefty rent increase. I didn't go so far as to say I will start looking at other places because of it since I didn't want to invite him to give me 30 days notice. I value the flexibility to stay or go. But it's true - I would probably never have considered moving if the rent increase were smaller. The comments about "easing off the gas pedal" resonated with me. Maybe that's because it's what I wanted to hear, but it's always good to have some validation. "Find a place you want to live" is such simple advice, but it is really powerful. I think that's what I am going to do. In the meantime, if anyone here...
by DJB
Sat Aug 23, 2014 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: Which apartment to chose? (Bay Area)
Replies: 13
Views: 2297

Which apartment to chose? (Bay Area)

Hi All, I'd love your input in helping me decide on an apartment in the Bay Area. As background, I am 29, in a long-distance relationship, and have a good start to my career and retirement savings. I make low 6-figures, and put away 18% in my 401K, max my roth, put 10% in after-tax into my 401K which I rollover to my Roth, and receive a 7% company match along with a DB pension. I have enough left over to put a couple hundred bucks into a taxable account. Total, I have about 350K in retirement savings. For housing, I currently pay $1300/month in Oakland for a room in a big mansion, all utilities paid. The landlord is rarely here, but which has been great, but he just raised the rent to $1500, which got me looking. Best deal I've found so far...
by DJB
Sat Aug 02, 2014 9:15 am
Forum: Personal Consumer Issues
Topic: Arthur Murray Dance Lessons
Replies: 20
Views: 7097

Re: Arthur Murray Dance Lessons

PS: Congratulations on your upcoming nuptials. Good luck!
by DJB
Sat Aug 02, 2014 9:13 am
Forum: Personal Consumer Issues
Topic: Arthur Murray Dance Lessons
Replies: 20
Views: 7097

Re: Arthur Murray Dance Lessons

I took a package of classes with Arthur Murray in the Bay Area and was highly disappointed. I bought a discount package (5 privates, a couple groups, and a "party") on Groupon for about half their normal price. I wanted to mostly learn salsa, so a bit different from your goal. After the lessons, I felt fairly confident that I knew kind of what I was doing. Afterwards, I went to a private instructor based on the recommendation of a good friend. It was clear the level of instruction was on a completely different level. I found I had to unlearn many bad habits I was taught at Arthur Murray. The AM instructors were mostly young kids, at least at the place by me, with a huge emphasis on sales vs.really learning how to dance. My recomme...
by DJB
Wed Jul 16, 2014 2:26 pm
Forum: Personal Investments
Topic: Nuts and bolts - In-Service After Tax Rollover to Roth IRA
Replies: 17
Views: 2307

Re: Nuts and bolts - In-Service After Tax Rollover to Roth I

Wow - thanks for posting! A couple of questions - are you still held to the $5500 limit per year of the Roth? Also - do you need to make a rollover quarterly or can you do it every calendar year to simplify the process? Thanks so much again for sharing. Anil The key benefit of this is that you aren't held to the $5500 annual limit. I max our my Roth presently, and now 10% of my salary will be added to that. In my pla, you can roll the money over as often as you wish - never, once per year, up to once per quarter. Some plans may only allow you to do this once per year. I'm choosing to do mine every quarter for tax purposes, more freedom in fund choice, and peace of mind, but for some it may be simpler to do it less often. Glad you found thi...
by DJB
Wed Jul 16, 2014 10:51 am
Forum: Personal Investments
Topic: Nuts and bolts - In-Service After Tax Rollover to Roth IRA
Replies: 17
Views: 2307

Nuts and bolts - In-Service After Tax Rollover to Roth IRA

There have been frequent questions on this board (myself included) about this process, so I wanted to share my experience. Hopefully it's of some benefit to others. After I learned on these forums that it's theoretically possible to make after tax contributions contributions to my 401K (on top of the 17.5K contribution limit) and move it into my Roth (holy &^%$), here are the steps I took: 1. Confirmed with my employer that they do in fact allow contributions of 10% of my salary on an after-tax basis. 2. Since my 401K is with Fidelity, I called them twice to confirm that they allow in-service rollovers. Both said yes and it's allowed once per calendar quarter. 3. I was already contributing 18% of my salary pre-tax, and I upped it to inc...
by DJB
Wed Jun 25, 2014 10:48 am
Forum: Investing - Theory, News & General
Topic: How common are after-tax in service rollovers?
Replies: 17
Views: 1938

Re: How common are after-tax in service rollovers?

Thanks, everyone, for the feedback and input. I tried running some calculations about what this after-tax rollover could be worth. I plugged in 5% nominal returns and 3% inflation, and the tax benefits result in 2000-2500 more per year. Not bad. I would never try to use this in a salary negotiation with another potential employer, but it's good to understand the value of various components of your company's plan. I'm amazed how little people seem to value the DB pension provided by my company. I think it's a huge advantage, if you can use it. Look at how much trouble people go through to squeeze $5,500 into a backdoor Roth IRA. You've got the ability to do five or more of them! This benefit will only grow if your salary goes up. Here is one...
by DJB
Mon Jun 23, 2014 8:45 am
Forum: Investing - Theory, News & General
Topic: How common are after-tax in service rollovers?
Replies: 17
Views: 1938

How common are after-tax in service rollovers?

I recently learned that my company allows after-tax 401K contributions of 10% of salary, along with four in service rollovers allowed per year to my Roth IRA. I plan to take full advantage of this opportunity. Two questions:

1) How common is it for companies to offer this? Is this something that most companies offer, or just one in a handful?
2) Should I view this as a "benefit" of my current employment? If so, how much should I value it in my total compensation package? What whatever it's worth, I'm 29 and make low six figures, so will be putting in about 10K/year additional into my Roth.

I appreciate your thoughts!
by DJB
Sun May 25, 2014 10:44 am
Forum: Personal Investments
Topic: 401K in-kind rollover vs. taxable
Replies: 5
Views: 795

Re: 401K in-kind rollover vs. taxable

1) No reason not to do this. Loss of a TLH source is a small price to pay in relation to having all your gains in a Roth IRA where they are tax deferred until such time that they become tax free. 2) You could sell the highest basis investments to fund the AT 401k contributions and pay the lower LTCG taxes in order to have future gains tax free. You are probably not going to hold these investments until you die anyway (for the step up), so those gains will just get larger over the years. This is sort of like getting out of an annuity with high fees. You either have to bite the bullet before it gets any larger or you are stuck paying those fees indefinitely. Note that 1) above is offset by this point because you could not have both TLH poten...