Bogleheads.org

Why not save it for something you really want/need later. If you're an apple family, you're going to be back in the store sooner or later. I wouldn't be in a rush to spend it. Also, to fund purchases from iTunes . . .

- Chile (off season)
- Argentina (off season)
- Iceland (peak but still not crowded)
- Cape Breton Nova Scotia (peak but still not crowded).

These are some of the nicest places to visit on the planet.

Don't sweat the small stuff.

Yes, purchasing whole life was probably a mistake, but if you've had the policies 20+ years, it is probably better to keep them at this point. Most of commissions are front loaded in first five to ten years. Those are sunk costs at this point, and at least for my part, the 5.6% dividend rate compare...

I would not bother with the stop payment. As others have noted, its only good for a limited period of time. If someone else finds and cashes the check, it is fraud and you will ultimately be reimbursed. If the roommate finds and cashes the check, you presumably know her and can ask her to repay if i...

I think people are catching on: "Fresh off setting a record for most net inflows in a single year, The Vanguard Group Inc., which Mr. Bogle founded in 1975, took in $53.6 billion in the first quarter, a single-quarter record for the firm. That is also $15 billion more than was taken in by Pacif...

Cash. It would be against my frugal instincts to have to pay interest and finance charges on my G-VI.

I'd look hard at other options to come up with $30,000 or so you'd need to qualify for 80/20 LTV no cost 30 year fixed at today's very attractive rates. The significant savings you'll realize off the current 4.875% rate put you in positive territory immediately, and those savings can be applied to q...

I'm thinking about offering a 5% commission, but specify that it would be split 2% selling agent, 3% buyer's agent. The seller's agent doesn't do much, and the real issue is incentivising agents to bring in motiviated buyers.

Thanks. The bid system is an interesting idea, but I have the field narrowed down to a couple agents I'd like to use. So was really looking for input on how low a commission rate to propose, and if it could be counter-productive to have too low a commission since the buyer's agent would stand to gai...

I'm getting ready to put a departed relative's house on the market. Upper six figure value in a brisk market of a large metro area. I'd expect it to sell in a few weeks. What is a fair commission rate to negotiate? On the one hand, I'd of course like the least expense possible. But, if I'm only will...

the is now offering a 15 year at 2.875% . so right now im at 30 year/3.875% - . . . . i guess the big question is can I afford $700 extra per month because refinancing adds risk. i can always stop adding $700 if i keep my current loan but if i refinance to the 15 year i have to pay it. right now we...

What a dumb article. Disappointing as Scott Burns is usually in the orbit of reasonable and insightful. So, a skilled physician with 5.5M in net worth and a $500,000 mortgage flunks two of the 4 tests, but if he pays off the mortgage tomorrow with cash on hand, and quits his job to practice underwat...

Thanks for the replies. I'm surprised this isn't a more common problem with a simple solution. Lots of us travel, and while we go to great lengths to protect ourselves from liability here in the USA, it seems like unless you go in for some very specialized, expensive, and country-specific policies, ...

Yes, you should refi as rates are lower now, and you can do so at little or no cost. However, assuming you have good credit and a conforming loan, you should be able to do better than that not-so-wonderful offer from your current bank. Try amerisave.com, national mortgage alliance, and other interne...

So, finishing up a fun family spring break in Honduras, thankfully with no issues or accidents. But, seeing an overturned car in the ditch on the drive back to our condo, it did get me thinking that I'm probably quite exposed driving around here without my stateside auto coverage and generous umbrel...

Why are your parents just thinking about investing this money now? With markets touching 5 year highs, this is, well, the worst time to invest in stocks in the last five years. On the other hand, the sky could be the limit. We don't know. In the absence of a crystal ball, how about 50% total world s...

15 year fixed. Lock in the certainty of historic low rates just in case. And, in the event you do move, you'll walk away with much more in equity to put towards you next home. 3.5% seems a bit on the high side for 15 year fixed. Make sure you have shopped around. I would think you could get 3% or lo...

I am surprised no one has asked how long you plan to live in the house. If it is a long time then I would be in favor of putting the equity in so you wouldn't have PMI. If you did have PMI and housing prices drop then that PMI would be on for a long time. If you we're only going to be in it for a s...

Agree. The marginal return on the additional amount needed to get rid of the PMI is likely 6% or more (the cost of the morgtage rate on this amount, plus the PMI cost itself which is soley attributed to the $30,000). No where you can get that guaranteed risk free return. PMI is money down the drain....

The remodel is an increase in consumption. I would be happy with new cabinets, a new fridge & a new floor, the last 2 I can do myself. But this is something my wife has been talking about for more than a few years. Hard to put a price on that. So its the intangibles that tip the scale for a go ...

There are actually more facts that support your recommendation (e.g. twin 12 yr olds - so 6 more years till college), but I haven't been looking at this as do or don't do decision. And in our area (DC Metro), the remodel is an investment in one of my larger assets. These are important additional fa...

What ever became of that school of thought: "if you can't pay cash for it, you can't afford it."? +1. If you're six years out from retirement and can't comfortably afford this with room to spare, I would think hard about a $45,000 remodeling. Streamline expenses and work on building up re...

I would look into a 15 year FHA refi. For 15 year loans with 90% LTV or better, there historically was no PMI requirement, but with recent changes there is nominal PMI payment (which will increase again in April -- so get going!) Until April 1, 2013, the MIP schedule for new FHA loans is as follows ...

BMW has "leatherette" fake leather on at least some of the 3-series. I guess it depends on how particular you are about these things, but I hate, hate, HATE the BMW "leatherette" and similar fake leather. It is, at bottom, viynal, and while it might look better than the products...

I agree that a home at 6.25% that is underwater as much as mine is not an investment at all, but unfortunately I am stuck with it. I have considered eating the loss, but was strongly advised against it. I put the property on the market for four months and we only had one showing so I went back to t...

In recent years I've sold several good condition used cars of mid value $8000 Mazda Miata $8000 Honda Civic $6000 Passat Wagon In each case, I listed in the paper (large metro area), cars.com, and craigslist. And, in each case the car sold promptly off craigslist, even before any inquiries were rece...

Yikes. Paying 6.8% on an "investment" property is not an investment at all -- it is a huge drain on your resources. I would do one of two things: 1. Sell the underwater property and eat the $75,000 loss. It is water under the bridge at this point. 2. If you really want to hold this propert...

I'm also a serial refier. So many I've lost track over the last several years, easily 10+. Each time I've gotten a lower rate and been paid for the trouble of doing it. If it were costing ME several thousand to do it each time, of course I wouldn't do it. But, being cash positive on day one walking ...

20% down. In fact, with your high income and low purchase price relative to that income, you should be comfortably able to handle the payments on a 15 year loan, and still max out savings and pay down debt. I would do that. 15 year loans can be had at well under 3%. Having a paid off house early in ...

. . .by taking a no-cost refi, you are essentially betting that rates will continue to go down - even if we are already at historic lows. If they don't, and start going up, you're now stuck in a loan with a worse rate than you could have gotten based on the market at the time you refinanced... My c...

there is no such thing as a no-cost refi - you will pay for it in a worse interest rate. Just shop around, . . . you can refi for 30 years fixed for around 3.5% these days, if that's 1% or more better than your current rate, it's probably worth refinancing. . . . but if you'll only be in the house ...

Good grief. This is such a no brainer. Why would you listen to your current mortgage company that has every incentive to keep you locked in to an old, above market loan and collect PMI? It was a huge mistake to pay off the student loans instead of refinancing and getting rid of a PMI year ago. (The ...

I'm on #9 refi with amerisave and counting in the last 2 years . . . Great low cost firm. In the end, their settlement charges have always been fair and accurate. They over-estimate the recording fees as if it were a purchase vs. a refi, but you pay the correct lower recording fee in the end. I woul...

1) So, what kind of shape am I in -- am I financially ready to retire and live off the earnings of investments etc.? 2) And since refinancing isn't an option since I've paid down most of the interest, should I pay off mortgage now? 1. You appear to be able to comfortably retire. Your monthly expens...

It may or may not be a good idea depending on how long you've had it, the dividends paid, and whether or not they are guaranteed. I wish I had not gotten into the whole life racquet to begin with. But, 9+ years into the policy, the up-front commissions have been sunk, and the tax-deffered return on ...

Congratulations on paying off the student loan debt. With two jobs and ample cash reserves, why keep the car loan? There is not a lot to go on here regarding you general request for advice. You would get a lot of helpful suggestions on building your portfolio and financial plan by posting the follow...

I am normally a fan of 15 year loans. However, in your situation, the massive student loan debt at 5.8% weighs in favor of the 30 year term. In terms of looking at "total interest paid" I think you need to take a holistic approach and also consider the student loans. Doing that, it becomes...

When a product is on the discount table, marked "all sales final" consumers know what that means. All other retailers of consumer goods, including hotels, rental cars, and cruise lines, are able to market and sell their products as they please.

This is how it should be. Because the flight offerings change so fast. You see an itinerary you think is good but want to confirm it with whoever else is involved. By the time you do, the times or prices or both have changed. This let's you lock it in tentatively. The first customer-friendly thing ...

Do another no-cost refi to a 15 year fixed at 2.75%, save more, be done sooner . . .

Picking a few random dates in May, from the U.S. West Coast (LAX) you can fly nonstop to Guangzhou on China Southern on a new A380 in lie flat suite, then on to Kathmandu on a one stop basis. Their business fare is $4400. KAL might be a little nicer, but certainly not more than twice as nice. I've f...

Our goal is to stay productive, find ways to do good via donations/volunteering, and possibility raise our current modest standard of living. Desired Asset allocation: 43% stocks / 27% bonds / 30% real estate Desired International allocation: 33% of stocks Questions: 1. My high allocation towards r...

Agree making the extra payments makes a lot of sense in your case. How badly under water are you on the current mortgage? Might you have funds available in the form of a 401K loan, or refinancing paid-off vehicles through PenFed? Getting your rate down into a sub-3% 15 year would generate a lot of s...

The 2x-3x more proceeds than the dealer trade only applies if you are trading a vehicle in that price range. I tried to sell my fully loaded 2007 Prius for 2 months on craigslist. I was trying to get $15k out of it which was slightly below the KBB private party value at the end of the 2 months (and...

As others have pointed out, there are two separate transactions, and you need to negotiate hard/do extra work on both to get the best deal. 1. Regarding the new car purchase, it is vital that you know the absolute dealer cost. Not just the "invoice" price, but also how much the dealer is g...

There are many delimas in investing -- but avoiding PMI when you have the cash availble to do so is as close to a no brainer as it gets. Remember, its the difference between a conforming loan and the PMI that is causing you to pay the premium, so, between the cost of the underlying mortgage, plus th...

Can you qualify for a 15 year FHA refinance? If so, there is no PMI on LTV of 90% or better, which you have already. Sounds like you could handle the payments if you are thinking of putting so much extra cash towards the 30 year.

You don't provide a lot of information to go on here, but generally paying the mortgage down to get rid of PMI is a very good idea. You get not only the guaranteed return of the mortgage rate, but also the guaranteed return of eliminating pmi, which make the combined rate of return on the pmi overag...

I would put the $120,000 she might need in the next 10 years in Ibonds, high yield checking, and CDs or short term bonds.
The remainder in Target Retirement Income. If she's financially set, there is no point in taking on extra risk and chasing yield.