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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: 1850

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: 1860

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: 1860

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: 4768

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: 61
Views: 3398

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: 4768

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: 4768

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: 4024

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: 3078

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: 5121

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: 5121

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: 1191

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: 5176

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: 3868

Re: Grad School - Max out Roth IRA or use for tuition?

Vote: (D) due to the high rate, I'd pay the tuition instead of a ROTH funding. 7.2% is a terrible rate in the current environment. Also note you must have *earned* income to fund a ROTH. Often teaching stipends are not earned income. You can tell if income is earned or unearned based on the form it'...
by DVMResident
Mon Mar 23, 2015 3:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Grad School - Max out Roth IRA or use for tuition?
Replies: 10
Views: 938

Re: An inspiring message for Bogleheads

sharpjm wrote:it is possible that the assumption that Peter has been living at home/ with parents is incorrect.


Peter did say he is living with his dad (easy to miss):

Taylor Larimore wrote:
(I live with just my dad only)
by DVMResident
Fri Mar 20, 2015 1:08 am
 
Forum: Investing - Theory, News & General
Topic: An inspiring message for Bogleheads
Replies: 56
Views: 4202

Re: An inspiring message for Bogleheads

Taylor, Thank you for sharing the post. Very inspiring. The math might just be possible if his dad is providing free housing. When I was a resident making $38-$39k/year (woot, 3% raise once in 5 years), my living expenses were in the mid-$600's/month...in Los Angeles. How? Living nearly rent free ho...
by DVMResident
Fri Mar 20, 2015 1:04 am
 
Forum: Investing - Theory, News & General
Topic: An inspiring message for Bogleheads
Replies: 56
Views: 4202

Re: Lost job, should I contribute heavily to 401k?

Another option: is your 2015 ROTH IRA still unfilled? Put $4k into the 401(k) and save $5.5k for future use. --If you find another job before the end of the year, use the $5.5k to fill the ROTH IRA. --If you go out of work longer than expected, use the additional $5.5k to extend your ER fund. Gives ...
by DVMResident
Thu Mar 19, 2015 5:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Lost job, should I contribute heavily to 401k?
Replies: 18
Views: 1429

Re: Observations from a first time poster, long time reader.

I'll disagree the BH forum community is against FA (well, the good ones). Most forum members (including me) would say most people would benefit from a FA. However, BH's mission is educating people in financial matters. Forum members are self-motivated to learn. We are DIY-types. Well informed DIY-ty...
by DVMResident
Thu Mar 19, 2015 12:13 am
 
Forum: Investing - Theory, News & General
Topic: [New Member Observations- Covered Calls, Financial Advisors]
Replies: 226
Views: 16213

Re: job offer, 2x salary

"above market rate" --> I would take the job. Congrats :beer
by DVMResident
Wed Mar 18, 2015 10:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: job offer, 2x salary
Replies: 53
Views: 4833

Re: Buy a rental property in this market ?

Yes, a newer property generally will have less repairs than an older property. Repairs are manageable by maintaining a large ER fund and being properly insured. But repairs aren't your major risk IMO. Those are just expenses. The biggest risks IMO are running afoul with the law (easier than it sound...
by DVMResident
Wed Mar 18, 2015 6:54 pm
 
Forum: Investing - Theory, News & General
Topic: Buy a rental property in this market ?
Replies: 42
Views: 2858

Re: Buy a rental property in this market ?

If you're really interested, I'd start here: http://www.nolo.com/legal-encyclopedia/landlords -- pdfs on right column "Every Landlord's Tax Deduction Guide" and "[ Your state ] Landlord's Law Book: Rights & Responsibilities" are incredible resources. They are easy to read and...
by DVMResident
Wed Mar 18, 2015 12:37 pm
 
Forum: Investing - Theory, News & General
Topic: Buy a rental property in this market ?
Replies: 42
Views: 2858

Re: Buy a rental property in this market ?

Rental management companies cost quite a bit. You can try to find private managers -- mine handles a limited roster of about 20 properties but his normal job is a real estate agent. He charges 4% (50% of 1 month rent) for a new rental occupants plus $250/yr fixed amount for any years afterwards wit...
by DVMResident
Wed Mar 18, 2015 10:45 am
 
Forum: Investing - Theory, News & General
Topic: Buy a rental property in this market ?
Replies: 42
Views: 2858

Re: Buy a rental property in this market ?

Well, let me tell you about my research. I looked thru Zillow and found good properties (high rent, low crime and in good location). I spoke to few brokers who listed the house and this seemed consistent: 1) This is a great house/apartment (ofcourse) 2) You need atleast 25% downpayment 3) They can ...
by DVMResident
Tue Mar 17, 2015 11:57 pm
 
Forum: Investing - Theory, News & General
Topic: Buy a rental property in this market ?
Replies: 42
Views: 2858

Re: 15 yr cd, would you?

Nope. I'd take stocks.

On the fixed side, I'd prefer EE bonds or my mortgage (3.5%).
by DVMResident
Tue Mar 17, 2015 10:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: 15 yr cd, would you?
Replies: 17
Views: 2035

Re: Buy a rental property in this market ?

I said "over a third", not 100% of net.
This is my case. YMMV, but the fees are no joke.
by DVMResident
Tue Mar 17, 2015 8:51 pm
 
Forum: Investing - Theory, News & General
Topic: Buy a rental property in this market ?
Replies: 42
Views: 2858

Re: Buy a rental property in this market ?

Well, let me tell you about my research. I looked thru Zillow and found good properties (high rent, low crime and in good location). I spoke to few brokers who listed the house and this seemed consistent: 1) This is a great house/apartment (ofcourse) 2) You need atleast 25% downpayment 3) They can ...
by DVMResident
Tue Mar 17, 2015 7:40 pm
 
Forum: Investing - Theory, News & General
Topic: Buy a rental property in this market ?
Replies: 42
Views: 2858

Re: interest rate increase looming. what you gonna do ?

After rates rise, switch contributions from Stable Value to Bond Fund.
If rates rise a lot, may change ER bond fund holdings to MM or high-yield savings.
by DVMResident
Tue Mar 17, 2015 4:41 pm
 
Forum: Investing - Theory, News & General
Topic: interest rate increase looming. what you gonna do ?
Replies: 65
Views: 6242

Re: Poll: When to pay down debt rather than invest

Maximizing tax-advantaged space is very important to me because my career has long-training periods with a compressed salary/high tax brackets in a shorter number of year. Losing any year's tax advantaged space to pay-down debt would really bother me. The debt would have to be in the >7% range befor...
by DVMResident
Mon Mar 16, 2015 7:05 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: When to pay down debt rather than invest
Replies: 49
Views: 3926

Re: Can you quantify how Bogleheads has helped you?

I've learned a lot and it stimulated me to think of why I'm saving -- and enjoy the rest. That's a qualitative statement. The biggest quantitative impact is learning about Mega-backdoor ROTH IRAs. That's additional $18k/year (and growing each year) that would have gone into taxable accounts. So figu...
by DVMResident
Mon Mar 16, 2015 6:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can you quantify how Bogleheads has helped you?
Replies: 23
Views: 2032

Re: Laptop: Windows based vs. Apple

This is a style question. I use both Mac at work and Windows at home and work. I prefer Windows, but they both work great. Apple OS is smooth and slick, but pigeons holes you to a certain way of working. Windows is little less smooth and slick, but better file structure/organization and better multi...
by DVMResident
Mon Mar 16, 2015 2:26 pm
 
Forum: Personal Consumer Issues
Topic: Laptop: Windows based vs. Apple
Replies: 81
Views: 5710

Re: My Greatest Weakness.

In in the review settings, I answer this question with the next skill set I want to acquire. My current answer, is "While I work well on a team, I have limited managerial experience. To bring the most value to future teams and leverage and grow team member's talents to their fullest potential, ...
by DVMResident
Mon Mar 16, 2015 12:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: My Greatest Weakness.
Replies: 37
Views: 5691

Re: Stock Options: Mental Accounting of Value

Thanks Reb Tevye. Your experience is something I can't get from the plan documents and I appreciate it. I have an IPS, but it does not consider Stock Options/RSU. This is a new form of compensation to me. The IPS needs an update. Ideally, I would own 0% of my portfolio as the risk of the employer go...
by DVMResident
Mon Mar 16, 2015 12:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Stock Options: Mental Accounting of Value
Replies: 6
Views: 557

Re: Stock Options: Mental Accounting of Value

I resolved to hold options to expiration and exercise then. Interesting. This makes sense for making as stocks tend to gain on average over time. Follow-up question: our stock is heavy dividend payers and will probably continue to be. Over the last 5 years, dividends are 3-to-4% per year and have m...
by DVMResident
Sun Mar 15, 2015 10:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Stock Options: Mental Accounting of Value
Replies: 6
Views: 557

Stock Options: Mental Accounting of Value

Dear BH Forum, Just finished first year working for a mega-corp and was awarded the following as part of a Long-Term Incentive Program: -RSU valued $5k'ish with a 3 year vesting period AND -Stock Options with a current grant price that can be Exercised between 3 to 10 years from issue date (standard...
by DVMResident
Sun Mar 15, 2015 8:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Stock Options: Mental Accounting of Value
Replies: 6
Views: 557

Re: Buying a Home. 30yr FRM vs. 15yrFRM vs. ARM 5/1

OP, A couple of questions: (1) "kids within the next 3 years" Will you or your spouse stay home with the kid(s)? If yes, will that impact your ability to afford the payments? (2) Are you maxing tax advantage spaces (401(k), IRAs +/- 529s)? --> If you're not, I would consider the 30-year an...
by DVMResident
Sun Mar 15, 2015 11:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Buying a Home. 30yr FRM vs. 15yrFRM vs. ARM 5/1
Replies: 32
Views: 2702

Re: Pet insurance?

LadyGeek wrote:Besides, a credit card is not an Emergency fund.


Full hardly agree.

Unfortunately in the ER, some people end up relying on http://www.carecredit.com/, which can be worse than a credit card.
by DVMResident
Fri Mar 13, 2015 11:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pet insurance?
Replies: 32
Views: 1925

Re: Pet insurance?

I've been out of practice for a while. Maybe some of the other vets on the forum can weigh in. *** The advantage of pet insurance is it's a predictable expense and relatively low for a puppy. It protects you from the shock of an emergency costs. However, overtime the premiums are higher than the ave...
by DVMResident
Fri Mar 13, 2015 5:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pet insurance?
Replies: 32
Views: 1925

Re: Dip? What Dip? Did you catch it?

Nope, not only did I miss the dip, I hit the peak the peek earlier this year.
But got the Oct 2014 dip along with a quarter match. 8-)
DCA swings both ways and I like being average. Well, BH average, which is pretty good.
by DVMResident
Fri Mar 13, 2015 2:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Dip? What Dip? Did you catch it?
Replies: 134
Views: 11673

Re: Poll: Do you consider mortgage payments an investment?

I don't quite follow this one. Real estate is almost always worth something , despite the rare expectations of $1 time shares and blighted areas of Detroit. Iliquid assets are still assets. It's not that hard to sell a house. DVMResident, 1) How about the case where the house is so under water that...
by DVMResident
Thu Mar 12, 2015 10:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Do you consider mortgage payments an investment?
Replies: 58
Views: 3702

Re: Poll: Do you consider mortgage payments an investment?

I'll point out, despite all the circling we, the forum, have done on this topic, there is only 1 vote for "The thread has changed how I would answer the question now as to in the past."

We're all pretty stuck in our views :o
by DVMResident
Thu Mar 12, 2015 8:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Do you consider mortgage payments an investment?
Replies: 58
Views: 3702

Re: Poll: Do you consider mortgage payments an investment?

#3. Scheduled mortgage pmt is a mandatory expense. So the principal pmt of this pmt is not an investment. But the extra principal pmt is an investment. Scheduled payments are only mandatory in a short-term sense. You can de facto opt out via a cash-out refi, HELOCs, and reserve mortgages (granted t...
by DVMResident
Thu Mar 12, 2015 8:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Do you consider mortgage payments an investment?
Replies: 58
Views: 3702

Re: Mathematical: Am I on track towards my retirement goal?

Besides, no one knows what the tax rates and brackets will be 30 years from now :-) Of course, all of these estimates are very rough. For these purposes, I think it's reasonable to assume today's tax brackets. I think it's safe to say progressive income tax brackets are here to stay for the foresee...
by DVMResident
Thu Mar 12, 2015 6:18 pm
 
Forum: Investing - Theory, News & General
Topic: Mathematical: Am I on track towards my retirement goal?
Replies: 21
Views: 2066

Re: [Poll] How long did you hold primary residence mortgage?

Stayed in primary residence for 2 years before job change.

Kept house as a rental. About ~3 years into a 30 year mortgage at 3.5%. Planning to keep it to term, but we'll see where life takes us.
by DVMResident
Thu Mar 12, 2015 5:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: [Poll] How long did you hold primary residence mortgage?
Replies: 34
Views: 2708

Re: Ink Cartridges dry up on seldom used printer, any ideas?

Years ago (2001?), I purchased an all-in-one HP. The stupid thing would "test" ink level by injecting a small amount every time I tried to scan. When the ink would run dry, it stop scanning. It was a scam. In 2005, I switched to Brother black and white laser printer. I made it through vet ...
by DVMResident
Thu Mar 12, 2015 3:15 pm
 
Forum: Personal Consumer Issues
Topic: Ink Cartridges dry up on seldom used printer, any ideas?
Replies: 32
Views: 1721

Re: Mathematical: Am I on track towards my retirement goal?

Great model. Thanks. You forgot to model taxes. Most of your investments are pre-tax. You also forgot SS. Wife doesn't have a 401(k)? 3% SR is very conservative. Conservative to the point of adding years on to your working years and/or squeezing pennies. $150k/year expenses is high, especially if yo...
by DVMResident
Thu Mar 12, 2015 1:49 pm
 
Forum: Investing - Theory, News & General
Topic: Mathematical: Am I on track towards my retirement goal?
Replies: 21
Views: 2066

Re: Anyone ever use a closet design company?

I installed 2 Elfa closests and 3 shelving racks. If you're a little handy and have a drill and level, it's easy enough. Or, they can install it. Their software is very user friend, you can really customize, and their staff are experienced/well trained. If you have lots of shoes, you can add shoe ra...
by DVMResident
Thu Mar 12, 2015 11:41 am
 
Forum: Personal Consumer Issues
Topic: Anyone ever use a closet design company?
Replies: 22
Views: 1506

Re: Renting out a private room in primary residence

If I may add tax a question:
How is depreciation handled?
Will renting out part of home void the home exemption for primary residence?

(not sure, but important considerations)
by DVMResident
Wed Mar 11, 2015 5:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Renting out a private room in primary residence
Replies: 17
Views: 1799

Re: Evaluating new job offer and 401k plan

i think you are making a huge mistake in taking a job that has such a salary decrease, unless you feel you are going to be terminated in your current job shortly. The 401k and other benefits are not really relevant to the decision. If I were you I would keep looking for a more suitable job - one th...
by DVMResident
Wed Mar 11, 2015 1:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Evaluating new job offer and 401k plan
Replies: 30
Views: 2400

Re: Do you consider mortgage payments as savings?

Folks, I am an engineer by profession. If something behave and function like an expense, it is an expense. I do not care or bother if someone's else accounting or economic definition call it as something else. If a definition is useless from my point of view, I will choose not to use it. Now, if so...
by DVMResident
Mon Mar 09, 2015 3:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 410
Views: 20159
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