Search found 658 matches

Return to advanced search

Re: Can a Boglehead put down 10% on a house?

I haven't read all the responses, but I would absolutely go ahead and buy a home in that range with 10% down. The fact that you are currently in a 1 br apt and not simply trying to upgrade a house you don't really need to move from is one reason for my opinion, along with the prospect of interest ra...
by Meg77
Tue Aug 26, 2014 3:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can a Boglehead put down 10% on a house?
Replies: 30
Views: 2349

Re: Changing AA from 90/10 to 80/20

I agree that 80/20 is a very reasonable long term AA (though I am 30 and still maintain my original 90/10 AA). I just wanted to say that one method of adjusting your AA is to do so gradually via new contributions rather than picking a date to sell a bunch of stocks and buy bonds. Until very recently...
by Meg77
Tue Aug 26, 2014 3:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Changing AA from 90/10 to 80/20
Replies: 6
Views: 896

Re: SP500 and recency bias

I for one have the opposite problem. The higher the S&P goes, the more I want to sell some things and/or shift my AA to favor bonds. But then it ticks up even higher...I have to remind myself you can't time the market, but it sure is tempting to take some gains off the table and wait for an inev...
by Meg77
Tue Aug 26, 2014 2:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: SP500 and recency bias
Replies: 20
Views: 1673

Re: Mortgages and financial freedom

I haven't read all the responses, but I am on the other end of the typical Boglehead extreme and am probably a bit too comfortable with debt. I think of leverage - particularly long term fixed rate tax deductible leverage - as a powerful tool. It has enabled me to accumulate a very large asset base ...
by Meg77
Tue Aug 26, 2014 12:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mortgages and financial freedom
Replies: 56
Views: 3365

Re: Total International Bond Index Fund

I've been thinking about whether I should add this fund as well, to replace a small portion of my bond holdings. I haven't gone too deeply into the studies or historical performance (which, of course, doesn't guarantee future results anyway, as we all know). However on its face it seems like any add...
by Meg77
Tue Aug 26, 2014 11:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Total International Bond Index Fund
Replies: 21
Views: 1522

Re: To be truly rich, take stock of your life before investi

This reminds me of the values exercises I have seen in some financial planning materials which make a distinction between goals and values. Linking your financial goals to your values helps you stay motivated to reach them. It can also encourage you to spend in line with things that really matter to...
by Meg77
Wed Aug 20, 2014 11:23 am
 
Forum: Investing - Theory, News & General
Topic: To be truly rich, take stock of your life before investing
Replies: 30
Views: 4451

Re: Savings Percentage [rules of thumb]

Short answer: I always look at gross income figures because it's the simplest way to calculate it and gauge progress. Net pay is misleading since taxes fluctuate and your withholding could include investments (401k, ESPP, and HSA) and expenses (insurance premiums). Plus your tax withholding is unlik...
by Meg77
Tue Aug 19, 2014 5:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Savings Percentage [rules of thumb]
Replies: 49
Views: 5290

Re: Stop Passing Up This Great Deal - In Money Magazine

You aren't forced to take out RMDs each year (which could enable you to avoid selling at a market low in down years) This is an oft repeated but completely incorrect point about RMDs. An RMD in no way forces you to realize a loss on any security, it just forces you to remove that security from your...
by Meg77
Thu Aug 14, 2014 4:20 pm
 
Forum: Investing - Theory, News & General
Topic: Stop Passing Up This Great Deal - In Money Magazine
Replies: 80
Views: 11056

Re: Is the goal in sight? Should I relax?

Obviously you are doing better than the majority of people out there, but it's impossible to tell you if the goal is in sight or if you should "relax" without knowing key variables such as your age, income, and desired income in retirement. $1.6MM is a lot in savings; if you are used to li...
by Meg77
Thu Aug 14, 2014 4:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is the goal in sight? Should I relax?
Replies: 19
Views: 2315

Re: Where do you buy clothes?

Well since I seem to be in the minority, I'll post. I buy most of my clothes at Nordstrom. Work clothes are the likes of Hugo Boss; dresses are often Diane von Furstenburg, and shoes are Prada or Jimmy Choo or Dolce & Gabbana. These brands are very expensive, but I don't own many clothes and the...
by Meg77
Thu Aug 14, 2014 12:19 pm
 
Forum: Personal Consumer Issues
Topic: Where do you buy clothes?
Replies: 105
Views: 9076

Re: Stop Passing Up This Great Deal - In Money Magazine

[...] That's a HUGE "error". How in the world could someone be "qualified" to write for a real financial publication and get this so, so wrong? Problem is, all too many people will read that (well, whoever does make it through any such article rather than "intending to read...
by Meg77
Thu Aug 14, 2014 11:56 am
 
Forum: Investing - Theory, News & General
Topic: Stop Passing Up This Great Deal - In Money Magazine
Replies: 80
Views: 11056

Re: Stop Passing Up This Great Deal - In Money Magazine

All things considered I thought it was a good article, and it made me rethink the fact that my husband and I are maxing out Traditional 401ks even though he has a Roth 401k option. For one thing, we aren't necessarily investing the tax savings from our Traditional contribution deduction; we max all ...
by Meg77
Thu Aug 14, 2014 11:42 am
 
Forum: Investing - Theory, News & General
Topic: Stop Passing Up This Great Deal - In Money Magazine
Replies: 80
Views: 11056

Re: I...I don't even know where to begin.

Welcome! It sounds like you're not reading the right books. Most personal finance books all say the same things more or less when it comes to outlines for financial planning (pay off high interest rate debt, get your 401k match, save 3-6 months of emergency funds, get basic insurance needs covered, ...
by Meg77
Tue Aug 12, 2014 5:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: I...I don't even know where to begin.
Replies: 19
Views: 2985

Re: How important is my insurance agent?

State Farm runs by having agents act as an entrepreneurs/business owners. You essentially buy a "franchise" and are responsbile for building your business. I was recruited by them on LinkedIn once since an agency in my area was going up for sale and they thought I might be interested in th...
by Meg77
Tue Aug 12, 2014 4:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: How important is my insurance agent?
Replies: 37
Views: 2094

Re: Affording a 1.3 million home?

You can certainly afford it, especially as you easily have a 20% down payment and even more especially because you have no other debt whatsoever. I'd even go so far as to say that buying a bigger home might improve your financial situation, as an investment in real estate is arguably a lot safer (an...
by Meg77
Fri Aug 08, 2014 6:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Affording a 1.3 million home?
Replies: 105
Views: 11031

Re: Can I get a Mortgage anywhere?

I'm a banker who does some residential mortgage lending, and I can tell you that the reason they ask for your city and state is indeed because which types of products are available and what interest rates are charged varies from area to area. Some banks only lend in their region and will inform you ...
by Meg77
Fri Aug 08, 2014 5:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can I get a Mortgage anywhere?
Replies: 18
Views: 1746

Re: The Worst Investment You Can Make: Buying a Home

Oh great another incomplete and oversimplified article on why buying a home is a terrible idea which conveniently leaves out the variables that make it look better (if not great) as an investment - namely tax deductions and leverage. This article doesn't even mention home appreciation! Usually they ...
by Meg77
Fri Aug 08, 2014 4:35 pm
 
Forum: Investing - Theory, News & General
Topic: The Worst Investment You Can Make: Buying a Home
Replies: 116
Views: 13904

Re: average American eats out 203 times per year

I'm sure my husband and I are way over. I cook most of our dinners at home along with lunches and breakfast on weekends. But he eats lunch out every single work day, and I eat out (or pick up) lunch around twice a week - and I also grab a Starbucks egg white feta wrap on the way to work at least onc...
by Meg77
Fri Aug 08, 2014 12:12 pm
 
Forum: Personal Consumer Issues
Topic: average American eats out 203 times per year
Replies: 105
Views: 6399

Re: Marriage: Is it tax-friendly?

I expected a large marriage tax penalty when I got married this year because both me and my husband earn in the low 6 figures. However my projections were only taking into account our single life deductions - my small condo had low interest and tax deductions, he rented; I maxed out a Roth 401k, he ...
by Meg77
Wed Aug 06, 2014 5:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Marriage: Is it tax-friendly?
Replies: 50
Views: 2445

Re: Recently Engaged

I just got married in April, and what my now husband and I did was to open a joint account soon after engagement to start using for joint expenses (travel, wedding stuff, even some dining out). We each put in a lump sum and then added $500 a month each. When bigger expenses came up (down payment on ...
by Meg77
Wed Aug 06, 2014 3:39 pm
 
Forum: Personal Consumer Issues
Topic: Recently Engaged
Replies: 10
Views: 926

Re: Savings Account

Meg77, Thanks for your advise. Thanks for the advise on the emergency fund. You recommend to look at the savings account as one portfolio in conjunction with the retirement strategy? So it will be, savings + retirement strategy as one, not as separate strategies? Generally yes, your overall strateg...
by Meg77
Mon Aug 04, 2014 5:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Savings Account
Replies: 10
Views: 1083

Re: Why would anyone buy a deferred income annuity?

2. Allow you to spend more money during the deferred period earlier in retirement since there will be more income in later retirement. Many want to maximize withdrawals during their more energetic and healthy early retirement years without putting later years in an income shortage. This is one of t...
by Meg77
Mon Aug 04, 2014 4:21 pm
 
Forum: Investing - Theory, News & General
Topic: Why would anyone buy a deferred income annuity?
Replies: 59
Views: 4605

Re: Do I need a small cap index if I already have total mark

First of all, you should make sure you're investing in the Admiral versions of whatever funds you choose, assuming you have the money (most require a $10K initial investment to qualify). VTSAX is the total stock index admiral shares VTIAX is the total international fund admiral, VSMAX is the small c...
by Meg77
Mon Aug 04, 2014 4:10 pm
 
Forum: Investing - Theory, News & General
Topic: Do I need a small cap index if I already have total market ?
Replies: 58
Views: 5376

Re: Vanguard's Facebook presence

Actually I remember reading recently that people over 50 or 55 (I can't remember which) is the fastest growing segment of FB users. So it makes sense that financial companies and other non-traditional social media participants who mostly target the older demographics are also raising their awareness...
by Meg77
Mon Aug 04, 2014 3:47 pm
 
Forum: Personal Consumer Issues
Topic: Vanguard's Facebook presence
Replies: 26
Views: 2375

Re: Savings Account

It's important to look at all your investments as one portfolio, even if some are in taxable accounts while others are in retirement accounts. The advice as to which funds to invest in is the same (see The Three Fund Portfolio). However in taxable accounts it makes sense to keep funds with lower tur...
by Meg77
Mon Aug 04, 2014 3:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Savings Account
Replies: 10
Views: 1083

Re: Exchanging 401k Company Stock Match Every Paycheck?

There shouldn't be any trading or transaction fees associated with making transfers between investments within your 401k. If there are such fees they would be disclosed anyway, and would likely show up in your activity when you check the account history online or on your statements. I think you're i...
by Meg77
Mon Aug 04, 2014 3:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Exchanging 401k Company Stock Match Every Paycheck?
Replies: 5
Views: 454

Re: What to tell friends who think "it's all a scam"

It may not be worth trying, but if you don't know what his argument is exactly it's hard to counter it. I might have paused and asked him to elaborate on how he thinks investing is a scam. My guess is he'd sputter and be at a loss or ramble about stockbrokers being greedy horrible people or Bernie M...
by Meg77
Mon Aug 04, 2014 3:07 pm
 
Forum: Investing - Theory, News & General
Topic: What to tell friends who think "it's all a scam"
Replies: 64
Views: 5689

Re: Too many goals - where do I start?

It sounds like your number one goal is to have another child and upgrade your home within 3 years, in which case cash is king as far as your planning goes. I support that goal by the way; putting off a new baby until you can afford it (6 month EF, 20% down for a new house, etc) isn't always realisti...
by Meg77
Sun Aug 03, 2014 7:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Too many goals - where do I start?
Replies: 53
Views: 3878

Re: Loan Management

You guys both seem to be in really good shape particularly given your ages and income; and it's great that you are already talking about budgeting and financial planning. But those interest rates aren't "very high" and should not necessarily be prioritized over retirement savings. Usually ...
by Meg77
Fri Aug 01, 2014 7:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Loan Management
Replies: 5
Views: 653

Re: RBD here yet? (DOW -300points drop)

baw703916 wrote:I'm not sure it's quite RBD territory (livesoft says not in the post above), but it's certainly fortuitous that today is when my next retirement plan contribution gets invested! :)


I agree! :D
by Meg77
Thu Jul 31, 2014 4:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: RBD here yet? (DOW -300points drop) [Really Bad Day]
Replies: 49
Views: 5082

Re: First time home buyer ?'s

As a banker who originates mortgages, I just want to echo the other responses. You don't need to wait to get preapproved. Preapprovals are pretty meaningless anyway, and the bank will give one to you based on whatever you say you have (they don't look at tax returns or pay stubs or anything else at ...
by Meg77
Thu Jul 31, 2014 4:26 pm
 
Forum: Personal Consumer Issues
Topic: First time home buyer ?'s
Replies: 15
Views: 1088

Re: With Rates Likes These, Why Would Anyone Go for a Mortga

I'm a banker and those terms sound legitimate. The reason most people don't go with a home equity loan is that you can't buy a home or refinance a purchase mortgage using a home equity loan. By definition, Home Equity Loans or Lines of Credit are "cash out" products, meaning you are borrow...
by Meg77
Tue Jul 29, 2014 11:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: With Rates Likes These, Why Would Anyone Go for a Mortgage?
Replies: 12
Views: 2866

Re: Kitchen Remodel... Or Not?

I'm kind of with you - $70K is a lot to spend in your situation, especially on a $250K home. And that's even assuming you DO have a 12 month emergency fund plus $70K lying around. But considering the sole income, the two kids, and everything else...I have a feeling that $70K could be really better u...
by Meg77
Mon Jul 28, 2014 4:35 pm
 
Forum: Personal Consumer Issues
Topic: Kitchen Remodel... Or Not?
Replies: 53
Views: 2899

Re: Do I need umbrella insurance?

If you don't own a car or home I'm not even sure you can get umbrella coverage, since the umbrella is usually tacked on to your home and/or car insurance as an extension of whatever liability coverage you have opted for there. In any case I don't think you need it. If someone gets hurt in your house...
by Meg77
Mon Jul 28, 2014 4:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need umbrella insurance?
Replies: 24
Views: 2679

Re: Taking out mortgage with zero down. Smart or no?

Are you familiar with the VA funding fee? Make sure you read about it. http://benefits.va.gov/homeloans/purchaseco_loan_fee.asp You might be exempt from it. If not, it makes sense to put down 5% or 10%. For example, consider a $100k loan. Putting down $5k saves you $650 in fees, which is a 13% retu...
by Meg77
Mon Jul 28, 2014 4:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taking out mortgage with zero down. Smart or no?
Replies: 64
Views: 3254

Re: POLL: My home is worth less/more in 2014 than in 2007?

I bought a condo in 2006 for $145K in Dallas; it's a rental now but similar units in the building are listed for $165K-$175K. Assuming they sell for around $163K that's a 12%+ gain in 8 years. For the record Zillow doesn't work well in Dallas because it's not mandatory that home sales be a matter of...
by Meg77
Mon Jul 28, 2014 3:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: POLL: My home is worth less/more in 2014 than in 2007?
Replies: 94
Views: 5724

Re: NYT article on sequence of returns risk

I agree the article (and follow up blog post) are interesting, but I also think if they were to look at a 60 year investing life rather than just the 30 year accumulation phases that the numbers would change dramatically. Not sure whether they'd be smoothed out significantly or if the disparities wo...
by Meg77
Fri Jul 25, 2014 5:03 pm
 
Forum: Investing - Theory, News & General
Topic: NYT article on sequence of returns risk
Replies: 6
Views: 1078

Re: Rather be Home, Rather be at Work

I go back and forth in a similar way. After a few hours at work I long to be anywhere else and often plan out my retirement. I have never dreaded my job until recently though (due to some big changes at work), but even now I appreciate the quiet organization of my workplace and day, if not the work ...
by Meg77
Fri Jul 25, 2014 4:44 pm
 
Forum: Personal Consumer Issues
Topic: Rather be Home, Rather be at Work
Replies: 30
Views: 3852

Re: Help on choosing between investing/paying mortgage/colle

I agree with your plan. If you are in the highest tax bracket then the effective rate on your mortgage is more like 2.5% - which is pretty much like free money since that's about the rate of inflation. I'd invest the $100K. If you are sure you are on track for retirement then divvy it up partly in e...
by Meg77
Fri Jul 25, 2014 3:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help on choosing between investing/paying mortgage/college
Replies: 12
Views: 912

Re: Advice for Mother in law

Here are the usual steps to financial stability, in varying order depending on particular circumstances: 1. Contribute enough to an employer 401k to get the company match 2. Save $1000 or one month of income in emergency savings 3. Pay off very high interest debt (credit cards, payday loans, etc) 4....
by Meg77
Fri Jul 25, 2014 3:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice for Mother in law
Replies: 9
Views: 1128

Re: Comparing home loan offers

I'm a banker and mortgage origination officer so I can help shed some light on this. The answer is actually pretty simple: you should easily be able to compare all quotes by looking at the APR. The Interest Rate will be the flat rate you can lock in (around 4.25% these days for a standard 30 year fi...
by Meg77
Fri Jul 25, 2014 3:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Comparing home loan offers
Replies: 9
Views: 1048

Re: Can I buy insurance against bank failure?

As a banker, I've never heard of such a product. But I also really don't think you need to obsess so much about the possibility of banks failing. Even when banks fail, in the vast majority of cases ALL depositors are made whole, even those with more than $250K at that institution (this applied even ...
by Meg77
Thu Jul 24, 2014 4:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can I buy insurance against bank failure?
Replies: 12
Views: 997

Re: Cheap auto loan suggestions?

pobrien1902 wrote:Sorry for the confusion! We are still using M in community banking to denote thousands and MM to denote millions.


Ditto, I'm in banking and we use M and MM.
by Meg77
Thu Jul 24, 2014 4:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cheap auto loan suggestions?
Replies: 12
Views: 691

Re: Need Help and totally confused!!

OK obviously there is a lot to digest and figure out here, but I am going to give you three basic first steps that I think most Bogleheads will agree upon so that you feel like you are making some progress! These tips are not right for everyone in every situation, but just some of the reasons I thin...
by Meg77
Thu Jul 24, 2014 3:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need Help and totally confused!!
Replies: 33
Views: 2017

Re: Starting off and Maxing Out

Congrats on a great start! You sound a lot like me; I had 7 rental properties at 28 (a mere few years ago) and now manage 10 units in my area. Well, I wizened up and hired a property management company finally, but I own them anyway. :beer I agree with a lot of what Duckie is saying, but I just want...
by Meg77
Tue Jul 22, 2014 4:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Starting off and Maxing Out
Replies: 9
Views: 1653

Re: Thoughts on [not] rebalancing

If you were in 100% stocks, then what was there to rebalance? I agree that in the middle of a stock market crash would be a bad time to change your target AA from 100 stocks to 80% stocks/20% bonds. However if you had been 80/20 from the beginning then a) you wouldn't have lost as much in stocks whe...
by Meg77
Tue Jul 22, 2014 2:53 pm
 
Forum: Investing - Theory, News & General
Topic: Thoughts on [not] rebalancing
Replies: 12
Views: 678

Re: Former Employer Over Payment

I would have done exactly what you did (for better or worse). At this point you made your bed either way and now you just have to lie in it. GE obviously sold this "debt" for pennies on the dollar to a collection agency. I doubt this can or will show up on your credit report (since I assum...
by Meg77
Mon Jul 21, 2014 5:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Former Employer Over Payment
Replies: 37
Views: 2349

Re: New car - put extra $ towards current loan or save?

Since you know you want to buy new and you know you want out of your current car, I vote that you just go ahead and get the new truck sooner than later. The longer you wait the further your Honda will depreciate and the less your trade in will be worth (whereas new truck prices probably won't change...
by Meg77
Mon Jul 21, 2014 5:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: New car - put extra $ towards current loan or save?
Replies: 9
Views: 626

Re: Lifecycle Financial Planning Spreadsheet

The lifecycle planning model is actually not that different from the traditional model. The primary difference, which is significant, comes when you are a few years away from retirement, at which point it's usually recommended that you purchase an annuity or some combination of annuities to ensure a...
by Meg77
Mon Jul 21, 2014 4:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Lifecycle Financial Planning Spreadsheet
Replies: 3
Views: 908

Re: Intimidated by Investment Advisor

If the trust has closed and the funds have all been distributed to regular accounts with this investment advisor, then I don't think you need a lawyer - you just need a new financial advisor. If I'm understanding you correctly and the first trust has been dissolved, then you can move your money anyw...
by Meg77
Mon Jul 21, 2014 12:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Intimidated by Trustee and Investment Advisor
Replies: 32
Views: 3930
Next

Return to advanced search