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Re: Investing rental income?

There really is not enough information to answer your question. Especially lacking is (1) goals, (2) how this money fits in with your larger investments picture, and (3) time horizon. Posting something like this format would help getting quality answer. Personally, I use the excess cash-flow from my...
by DVMResident
Sun Apr 26, 2015 5:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing rental income?
Replies: 9
Views: 713

Re: Good Modern Science Fiction

Not recent books, but some of my favorites:
-Mote in God's Eye (very thought provoking)
-Stranger in a Strange Land (classic)
-Ender's Game (I like Scott Card's work in general)
-Lucifer's Hammer (good story telling)

Listened to all as audio books. The narrators are good for all of them.
by DVMResident
Sat Apr 25, 2015 1:07 am
 
Forum: Personal Consumer Issues
Topic: Good Modern Science Fiction
Replies: 182
Views: 12292

Re: Age in Bonds Poll

MP1233 wrote:We do "ten year projected expenses in bonds/cash" rather than "age in bonds." Age in bonds is too conservative for funds that we will probably never use.


I like this and am seriously considering this approach.
by DVMResident
Thu Apr 23, 2015 1:25 pm
 
Forum: Investing - Theory, News & General
Topic: Age in Bonds Poll
Replies: 72
Views: 3642

Re: Age in Bonds Poll

"Age in bonds" was a good rule in that it was simple and easy to follow.
Now there are better glide paths, especially with the proliferation of TD funds, that are even easier to follow.
by DVMResident
Thu Apr 23, 2015 12:00 pm
 
Forum: Investing - Theory, News & General
Topic: Age in Bonds Poll
Replies: 72
Views: 3642

Re: What's your average monthly expense???

I assume these are not all retired people. Many don't seem to list health insurance as an expense and some seem very low at $100 month or so. It doesn't show up on the line budget, but should, because it's automatically deducted for W-2 employees. To be honest, I have to look at my pay stub to even...
by DVMResident
Tue Apr 21, 2015 10:48 am
 
Forum: Personal Finance (Not Investing)
Topic: What's your average monthly expense???
Replies: 85
Views: 7646

Re: What's your average monthly expense???

This looks very normal for the area. We also live in SD. Married, 1 infant child. Very similar budget, rolling 12-month expenditure is $4996. Our rent is higher by $650, which nearly accounts for the difference. Is there a reason you want your budget lower? Not meeting your savings goals? Savings is...
by DVMResident
Mon Apr 20, 2015 2:51 am
 
Forum: Personal Finance (Not Investing)
Topic: What's your average monthly expense???
Replies: 85
Views: 7646

Re: Single best piece of personal finance advice ever receiv

Bracket wrote:
topper1296 wrote:
LiveSimple wrote:Live below your means !


+1


This.


Honorable Mention goes to:

Don't invest in anything you don't understand.


I like "save half of all raises" for a how to version of "Live below your means!"
by DVMResident
Mon Apr 20, 2015 12:57 am
 
Forum: Personal Finance (Not Investing)
Topic: Single best piece of personal finance advice ever received?
Replies: 90
Views: 6866

Re: Help Evaluating Federal Job Offer

On the surface, the federal job looks much better. Commute : 7 miles vs Commute: 17 miles What is this in terms of time? If you're blasting down the highway at 65 mph, it's only a couple of extra minutes. Where I live, this could add an hour to the commute. If the commute is too long, you could move...
by DVMResident
Thu Apr 16, 2015 11:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Help Evaluating Federal Job Offer
Replies: 28
Views: 2692

Re: Does your family know about your net worth (ball park)?

From looking at the recent annual income poll result, I think most BHs are already millionaires or will become one. Q1. Does your family (parents, siblings) know about your net worth (ball park figure)? My immediate families knows my salary. While they don't know my net wealth number (I would answe...
by DVMResident
Tue Apr 14, 2015 11:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Does your family know about your net worth (ball park)?
Replies: 98
Views: 11240

Re: Is it normal for companies to pay your home closing cost

I'm in biotech with 2 terminal degrees.

My one and only relocation thus far included up to $10k of selling home costs or "breaking lease fees." HR told me "standard" total relocation packages for our industry for terminal degree candidates in the $30-35k range.
by DVMResident
Mon Apr 13, 2015 11:19 pm
 
Forum: Personal Consumer Issues
Topic: Is it normal for companies to pay your home closing costs?
Replies: 5
Views: 666

Re: Should I sell our rental house, reinvest profits elsewhe

wife pregnant but she will stay working This is a personal comment: I would carefully consider this in your choice to keep or sell the rental. While rentals are not that much work, but there are periods when the time commitment spikes. You need to able to absorb those spikes: full weekends showing ...
by DVMResident
Mon Apr 13, 2015 6:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I sell our rental house, reinvest profits elsewhere?
Replies: 36
Views: 2029

Re: At my age & tax bracket, is a Roth smart?

joebh wrote:
DVMResident wrote:ROTHs make sense when either (1) you expect to be in a lower bracket in retirement than today or (2) you're out of space.


When you expect to be in a lower bracket?


Sorry, correction: higher bracket. Thanks for seeing the mistake.
by DVMResident
Mon Apr 13, 2015 4:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: At my age & tax bracket, is a Roth smart?
Replies: 24
Views: 2456

Re: At my age & tax bracket, is a Roth smart?

ROTHs make sense when either (1) you expect to be in a lower bracket in retirement than today or (2) you're out of space. Can you explain on your tax advantaged options, like 401(k), SEP-IRA, etc.? And your goals with this money? At first glance, your bracket is fairly high. Therefore, traditional s...
by DVMResident
Mon Apr 13, 2015 4:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: At my age & tax bracket, is a Roth smart?
Replies: 24
Views: 2456

Re: Downpayment on a house

Similar to the comments before, it's hard to give advice without knowing your tax status. But the stock options starting to expire in 2018 would be at the top of my list: (1) You need the cash now (2) You're close to the expected maximum extraction value (advice is typically hold-on to 2 years prior...
by DVMResident
Mon Apr 13, 2015 2:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Downpayment on a house
Replies: 5
Views: 581

Re: Moving to an expensive new home - mortgage paydown quest

Minor correction to the OP: your CA bracket is higher. Tax Bracket (Married)/Marginal Tax Rate $0+ 1.00% $15,174+ 2.00% $35,952+ 4.00% $46,346+ 6.00% $57,359+ 8.00% $67,751+ 9.30% $345,780+ 10.30% $414,936+ 11.30% $691,560+ 12.30% $1,000,000+ 13.30% http://www.tax-brackets.org/californiataxtable
by DVMResident
Sun Apr 12, 2015 11:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Moving to an expensive new home - mortgage paydown question
Replies: 6
Views: 1022

Re: Should I sell our rental house, reinvest profits elsewhe

Can't address the life-style issue. That's a personal call. Not enough info: What is your on-cash ROI? Home value and gross rental income and fixed costs? What would be the capital gains/recapture taxes would be imposed on the $250k? Do you have any years of expected lower income (e.g. staying home ...
by DVMResident
Fri Apr 10, 2015 6:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I sell our rental house, reinvest profits elsewhere?
Replies: 36
Views: 2029

Re: How to know if I am saving enough?

45% is more than "enough." At your age, your target rate should be in the 12-20% range, depending on your time horizon: http://resource.fpanet.org/resource/981547A8-1D09-67A1-ACAC12B70A5C0D51/0511-Pfau-Table-1.jpg ^Wade Pfau's work. That being said, I think "front-loading" retire...
by DVMResident
Fri Apr 10, 2015 4:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to know if I am saving enough?
Replies: 25
Views: 2685

Re: converting to rental property

I didn't see depreciation. You would have to depreciate the asset based (I think) on the FMV at the time of conversion (structure only, FMV of land is not included as a depreciable asset). I didn't calculate depreciation into the mix. Looks like it'd be $4,924.24 the first year (assuming June) and ...
by DVMResident
Tue Apr 07, 2015 12:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: converting to rental property
Replies: 14
Views: 766

Re: Real estate and reits

Interesting. I've noticed the same things on the individual property side. The price-to-rent ratios are awful now (~0.6%). On the macro-side, seeing a spike in the Case-Schiller Index. Probably correlated with the rich valuation you're seeing the REITs.
Thanks for the reference.
by DVMResident
Mon Apr 06, 2015 11:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Real estate and reits
Replies: 22
Views: 2179

Re: Massive student debt @ 6.8%

Those loan are very heavy for your income level and have a high interest rate. That interest is on par than the projected returns of stocks ( http://www.bogleheads.org/wiki/Historical_and_expected_returns ). A ROTH IRA isn't a bad idea considering you'll someday earn more than $12k/yr (even full tim...
by DVMResident
Mon Apr 06, 2015 7:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Massive student debt @ 6.8%
Replies: 62
Views: 6251

Re: Real estate and reits

For decades, I have invested heavily in individual REITs, usually buying them when the real estate cycle is down or when a particular REIT has a problem, like ARCP (American Realty Capital Properties) did recently. There are different kinds of REITs. Some hold mortgages, some hold properties, some ...
by DVMResident
Mon Apr 06, 2015 4:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Real estate and reits
Replies: 22
Views: 2179

Re: Rental flooring decision

Another vote for laminate. Lighter, natural wood patterns look great and make the space look larger. The laminate is tough and lasts a long time. It's cheap, ~$2/sq ft (not including moulding and joiners). Installation is simple (requiring little skill if the ground is level), though requires quite...
by DVMResident
Mon Apr 06, 2015 1:32 pm
 
Forum: Personal Consumer Issues
Topic: Rental flooring decision
Replies: 34
Views: 2818

Re: Best approach without 401k? (IRA+529)

Would you need loans for business school? If I were you in the current loan enviroment (7's%), I would (1) max the tIRA and (2) save every extra dollar for school in the 529s and high yield savings account/iBonds/CDs. 4 years of savings $5k + $3.9k = $35.6k total You'll still have to take out some l...
by DVMResident
Mon Apr 06, 2015 12:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best approach without 401k? (IRA+529)
Replies: 3
Views: 393

Re: VRBO rental gone awry- recourse for security deposit?

Withholding deposit is supposed to reflect actual costs (in CA, at least) and can not be punitive.

IMO, a reasonable charge is the mileage rate: $0.575 per mile.
by DVMResident
Sun Apr 05, 2015 6:41 pm
 
Forum: Personal Consumer Issues
Topic: VRBO rental gone awry- recourse for security deposit?
Replies: 50
Views: 5029

Re: Pay Off Mortgage to Save for Bigger House

What letsgobobby said.

When finding your ideal house, sometimes you need to move fast and make a strong offer. Having a contingency to sell your condo will make your offer weaker.
by DVMResident
Sun Apr 05, 2015 10:58 am
 
Forum: Personal Finance (Not Investing)
Topic: Pay Off Mortgage to Save for Bigger House
Replies: 10
Views: 1548

Re: Microsoft's Surface 3- anyone considering?

I've been eying it, but like the Yoga line more. I'm prefer the laptop-first/tablet-second to the tablet-first/laptop-second form factor. Solid keyboards and larger track win over the type covers. However, the stylus is very tempting for digital art. Currently hauling around a USB pen tablet accesso...
by DVMResident
Sun Apr 05, 2015 1:35 am
 
Forum: Personal Consumer Issues
Topic: Microsoft's Surface 3- anyone considering?
Replies: 35
Views: 3756

Re: Rental property returns

That $8000 first-time homeowner credit was too tempting. Yeah, for some reason it was available for multi-unit buildings of up to 4 units so I managed to cash in on it when I bought my duplex. 4 or less-unit buildings are considered residential, similar to single family homes. 5 or more-unit buildi...
by DVMResident
Sun Apr 05, 2015 1:20 am
 
Forum: Investing - Theory, News & General
Topic: Rental property returns
Replies: 39
Views: 3928

Re: Why Vanguard Why?

Try Fidelity. They have lots of branches and excellent service.
Stick withe "Spartan" funds -- low cost, index funds.

Vanguard is more self-service/DIY kind of company.
Disclosure: I have both. IRAs are VG and 40X(x) at Fido. Happy with both.
by DVMResident
Sun Apr 05, 2015 1:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Why Vanguard Why? [Problems opening new account]
Replies: 85
Views: 6847

Re: Rental flooring decision

Another vote for laminate. Lighter, natural wood patterns look great and make the space look larger. The laminate is tough and lasts a long time. It's cheap, ~$2/sq ft (not including moulding and joiners). Installation is simple (requiring little skill if the ground is level), though requires quite ...
by DVMResident
Sat Apr 04, 2015 6:14 pm
 
Forum: Personal Consumer Issues
Topic: Rental flooring decision
Replies: 34
Views: 2818

Re: In my situation, would you pay down mortgage?

Thread title: In my situation , would you pay down mortgage? Time horizon is important for deciding about risk:reward of investments. -If you think you're planning on selling the house in <5 years, a 3.65% return is considerably better than a 5-year CDs at 2% (though you didn't say if you're itemizi...
by DVMResident
Fri Apr 03, 2015 12:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: In my situation, would you pay down mortgage?
Replies: 31
Views: 1457

Re: In my situation, would you pay down mortgage?

Time horizon is important for deciding about risk:reward of investments. -If you think you're planning on selling the house in <5 years, a 3.65% return is considerably better than a 5-year CDs at 2% (though you didn't say if you're itemizing the deduction, it might be less). -If you plan on living i...
by DVMResident
Fri Apr 03, 2015 11:30 am
 
Forum: Investing - Help with Personal Investments
Topic: In my situation, would you pay down mortgage?
Replies: 31
Views: 1457

Re: What are you up YTD?

YTD: 3.23%

Due to my brilliant half equities international position 8-) (just don't look at 2014)
by DVMResident
Fri Apr 03, 2015 10:28 am
 
Forum: Investing - Help with Personal Investments
Topic: What are you up YTD?
Replies: 319
Views: 39167

Re: Paying for children college

need about 400K to send our 2 kids to college Sounds steep (or an expensive private school). Does that number include 15-years of inflation? If yes, your salary should be higher then, too. There are options to make education much cheaper: -Going to local JC for 2-year and living at home (higher GPA...
by DVMResident
Fri Apr 03, 2015 10:10 am
 
Forum: Personal Finance (Not Investing)
Topic: Paying for childrens' college
Replies: 121
Views: 7921

Re: Earthquake coverage in CA

I don't carry earthquake insurance. The premiums are expensive and, as you noted, the deductible is high. Now my house (now rental) is one story and small. In addition to being cheaper to rebuild, this kind of structure is at the lowest risk of earthquake damage. It survived '94 just fine. I figure ...
by DVMResident
Fri Apr 03, 2015 9:56 am
 
Forum: Personal Finance (Not Investing)
Topic: Earthquake coverage in CA
Replies: 20
Views: 1100

Re: Do I have TOO much in retirement accounts?

Very timely post. We're living parallel lives and stats: we're were both in school for way too long. -32/36, 10 month old kid, income ~$122k/yr + options/RSU, wife is SHAM, HCOL area ~$150k in retirement accounts (mostly ROTH), saving $48k/yr in retirement (split pre/roth 2:1), and we have rental pr...
by DVMResident
Thu Apr 02, 2015 6:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do I have TOO much in retirement accounts?
Replies: 10
Views: 2414

Re: Should a true BH visit this forum regularly?

A "true" BH doesn't have to come here everyday. Really, reading the Wiki will you almost everything you need to know about investing. Then you can go on with your life. However, I find visiting the forum for answers to questions I wouldn't even think to ask ("you don't know what you d...
by DVMResident
Tue Mar 31, 2015 7:12 pm
 
Forum: Investing - Theory, News & General
Topic: Should a true BH visit this forum regularly?
Replies: 32
Views: 3026

Re: Investment Property - Why doesn't this make sense?

The monthly fixed costs are $1,900. He's assuming he can get $1,900 after fees. This assumption needs to be examined closely. Rent does not equal costs. Rent equals market rate -- which can be lower or higher than fixed costs. Generally a 15 year mortatage means he'll probably end up with a negative...
by DVMResident
Mon Mar 30, 2015 6:13 pm
 
Forum: Investing - Theory, News & General
Topic: Investment Property - Why doesn't this make sense?
Replies: 18
Views: 1954

Re: RMDs for 25-year-old - take out enough to fund annual Ro

Yes, to clarify: M has earned income, not just taxable income. M has a graduate student/TA type job that pays at least $5,500 each year. Just to double check, is the income reported on a W-2 or a 1098-T? W-2 = earned income 1098-T = unearned income My TA work was "unearned" income. It is ...
by DVMResident
Mon Mar 30, 2015 12:24 am
 
Forum: Personal Finance (Not Investing)
Topic: RMDs for 25-year-old - take out enough to fund annual Roth?
Replies: 38
Views: 2054

Re: RMDs for 25-year-old - take out enough to fund annual Ro

Yes, to clarify: M has earned income, not just taxable income. M has a graduate student/TA type job that pays at least $5,500 each year. Just to double check, is the income reported on a W-2 or a 1098-T? W-2 = earned income 1098-T = unearned income My TA work was "unearned" income. It is ...
by DVMResident
Mon Mar 30, 2015 12:09 am
 
Forum: Personal Finance (Not Investing)
Topic: RMDs for 25-year-old - take out enough to fund annual Roth?
Replies: 38
Views: 2054

Re: Mortgage Debt in Retirement?

why is the bank lending you the money instead of investing the money itself? Because banks sell your mortgage on the secondary market (e.g. GNMA funds) to lend out another mortgage (minus the minimum balance-to-loan ratio requirements). Each bank dollar represents many dollars of debts and many mul...
by DVMResident
Sun Mar 29, 2015 10:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Debt in Retirement?
Replies: 74
Views: 5270

Re: How many of you invest in individual stocks?

Make a poll? There's quite a number of BH who hold individual stocks.

No individual stocks here outside of employer RSU/stock options (not by choice).
by DVMResident
Sun Mar 29, 2015 9:59 am
 
Forum: Investing - Theory, News & General
Topic: How many of you invest in individual stocks?
Replies: 70
Views: 4883

Re: Mortgage Debt in Retirement?

I'll also point you're asking the question on the BH forum, which is a group of similar minded savers. If a BH has excess cash-flow, we'll invest it. That is not true of the general public. Many people would have greatly benefited from paying off their mortgage because it was a "forced-savings&...
by DVMResident
Fri Mar 27, 2015 11:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Debt in Retirement?
Replies: 74
Views: 5270

Re: Mortgage Debt in Retirement?

If current interest rates are greater (or roughly similar) than your mortgage rate, there is no numbers based reason to pay off the mortgage. You give up liquidity and you lose a few bucks in the cost of opportunity investing elsewhere. Our mortgage is scheduled to finish 5~8 years into retirement. ...
by DVMResident
Fri Mar 27, 2015 10:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage Debt in Retirement?
Replies: 74
Views: 5270

Re: Illiquid Assets

401(k)s are illiquid assets for a young person.

You get to buy stocks at a discount in the form of a tax break and, if you liquidate early, you pay a plenty.
by DVMResident
Wed Mar 25, 2015 11:38 pm
 
Forum: Investing - Theory, News & General
Topic: Illiquid Assets
Replies: 46
Views: 4266

Re: I've Got to be Doing "Something". And You?

Been a landlord for 3 years and had the opposite experience. The returns have been and I believe will continue to be great. Much better than my stock returns. I purchased the rental in the early phase of my career using a low amount of capital (didn't have much) during the housing recession. I used ...
by DVMResident
Wed Mar 25, 2015 5:49 pm
 
Forum: Investing - Theory, News & General
Topic: I've Got to be Doing "Something". And You?
Replies: 22
Views: 3136

Re: Where do I learn how much one SHOULD spend on a home?

YoungBoglehead wrote:my goal is building wealth.


^ Don't buy a house. Houses are terrible investment vehicles: you lose 10% when selling, liquidate, violate, and across the US only 1% real (above inflation) returns on average.

Sorry.

Houses are consumption items. Buy a house because you need/want one.
by DVMResident
Tue Mar 24, 2015 4:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Where do I learn how much one SHOULD spend on a home?
Replies: 64
Views: 5384

Re: Where do I learn how much one SHOULD spend on a home?

I'll echo there is no need to buy a house, especially before having/about to have a family. If you're not married, I would really reconsider. There is a high chance the future-Mrs. has different tastes/commute that is not compatible with whatever you pick now. Why do you think you want a house? *** ...
by DVMResident
Tue Mar 24, 2015 4:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Where do I learn how much one SHOULD spend on a home?
Replies: 64
Views: 5384

Re: Please help ..hit with AMT

For most people, the best move move is to keep traditional pre-tax money as pre-tax. There is some confusion about backdoor conversions. Using is a backdoor ROTH is most useful when (1) people have run out of pre-tax space and need additional tax-advantaged space, (2) phased out of IRAs, or (3) are ...
by DVMResident
Tue Mar 24, 2015 12:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Please help ..hit with AMT
Replies: 10
Views: 1213

Re: Excess Cash - Play Monopoly or Repay Debt?

You're doing awesome and diversified with investments, solid income, and rental properties (plus family to support you through the volatility). You're winning the game of achieving Financial Independence. You just need time for the debt to deleverage/inflate away. The downside is you have a lot of s...
by DVMResident
Mon Mar 23, 2015 7:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Excess Cash - Play Monopoly or Repay Debt?
Replies: 67
Views: 5368

Re: VBRO and Airbnb versus property values

Can you find the home on Airbnb? Should easy enough to search. They have stats on the account owner, including times when the unit is already blocked out (I.e . When it's rented). Screen shot the ad and e-mail it the HOA. Should be enough evidence for a written warning. Hard to know impact on home v...
by DVMResident
Mon Mar 23, 2015 5:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: [Neighbor violating HOA rules by using] VBRO and Airbnb
Replies: 38
Views: 4000
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