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Re: 15 year vs 30 year fixed

I don't think this is a difficult decision. The 10/1 is the choice. You should have the mortgage paid off in 10 years. (Or you'll be so close that the interest rate won't matter much.)

Start making money and keep expenses low.

Hoosier
by SC Hoosier
Fri Apr 18, 2014 1:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5794

Re: 15 year vs 30 year fixed

30 year fixed (4.5%) paid over 15 years (monthly payment + $21,000 annual lump sum)- $247647 interest - $147390 tax savings = $100,257 net interest 15 year fixed (3.5%) paid over 15 years $185,838 interest - $73592 tax savings = $112,246 net interest I think you calculated the interest tax savings ...
by SC Hoosier
Thu Apr 17, 2014 11:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5794

Re: To buy or not to buy a new house?

If it were me, I would find them another school alternative. This would buy some time to save more and take advantage of the great mortgage rate on the town home. If you have $96,000 that you are saving every year, plus the $85,000 in cash, theoretically you'd have $277,000 in two years. $373,000 in...
by SC Hoosier
Mon Apr 14, 2014 9:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: To buy or not to buy a new house?
Replies: 15
Views: 2162

Re: The slackening...

I'm not aware of any scientific evidence that worrying, stress, suffering, trauma, or any other similar hardship has any beneficial effect on human beings. Quite the contrary. There's no reason to believe that any disappointing offspring of a wealthy person would have turned out better if they were...
by SC Hoosier
Mon Apr 14, 2014 12:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: The slackening...
Replies: 61
Views: 6486

Re: 15 year vs 30 year fixed

Yes, all 3 of these loans are available with 10% down and no PMI Thanks again for the input - leaning towards this scenario as of now, but my mind tends to change frequently due to all the thoughtful responses :-) 10/1 ARM over paid off in 10 years before the first reset - by my calculation this co...
by SC Hoosier
Sat Apr 12, 2014 9:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5794

Re: A story, and a feeling of financial under-accomplishment

You have a lot more free time for school now than you will with a wife and kids. I've done it both ways and I wish I'd got it all done when I was younger.

Hoosier
by SC Hoosier
Fri Apr 11, 2014 11:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: A story, and a feeling of financial under-accomplishment
Replies: 48
Views: 4174

Re: A story, and a feeling of financial under-accomplishment

Should I get my masters degree? I would need to take 10 classes, which I'd take 5 per year, and it'd cost about 10 grand total. How much money do you have in savings, that you can get your hands on without penalty? Some cash will put some distance between you and poverty. Then you won't need the cr...
by SC Hoosier
Fri Apr 11, 2014 11:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: A story, and a feeling of financial under-accomplishment
Replies: 48
Views: 4174

Re: A story, and a feeling of financial under-accomplishment

Should I get my masters degree? I would need to take 10 classes, which I'd take 5 per year, and it'd cost about 10 grand total. How much money do you have in savings, that you can get your hands on without penalty? Some cash will put some distance between you and poverty. Then you won't need the cr...
by SC Hoosier
Fri Apr 11, 2014 3:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: A story, and a feeling of financial under-accomplishment
Replies: 48
Views: 4174

Re: Reel Lawn Mowers

You are asking for trouble. I grew up working for my father, who was a superintendent at a golf course, so I've mowed a lot. Real mowers: 1) As the video in a link above described, stop when they get a twig caught in them. You must pull the twig out. Hassle. 2) Don't cut absolutely every blade of gr...
by SC Hoosier
Tue Apr 08, 2014 9:38 pm
 
Forum: Personal Consumer Issues
Topic: Reel Lawn Mowers
Replies: 19
Views: 957

Re: 15 year vs 30 year fixed

putting 10% down (it's a physician loan) I also have the option of a 10/1 ARM available at 3.625% (max rate change at 1st adjustment = 5%). Any thoughts on where this fits in as a viable option between the 15 year fixed at 3.5% and 30 year fixed at 4.875%? Thanks again - this has been extremely hel...
by SC Hoosier
Sun Apr 06, 2014 10:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5794

Re: Why pay off your house?

Life isn't always so robotic. It's not always summed up by financial math. Life is also full of surprises and money sent to a tax deferred account may have been better served paying off the mortgage early. The world is irrational after all. Sometimes that intangible peace of mind of no mortgage is ...
by SC Hoosier
Sun Apr 06, 2014 10:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why pay off your house?
Replies: 119
Views: 8589

Re: Why pay off your house?

Life isn't always so robotic. It's not always summed up by financial math. Life is also full of surprises and money sent to a tax deferred account may have been better served paying off the mortgage early. The world is irrational after all. Sometimes that intangible peace of mind of no mortgage is ...
by SC Hoosier
Sun Apr 06, 2014 9:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why pay off your house?
Replies: 119
Views: 8589

Re: Why pay off your house?

I always had the goal of paying off my mortgage, and finally achieved it in 2000. I lost my Silicon Valley tech job in 2001 and was only able to work part-time doing contracting work thereafter. Not having a mortgage was an incredible benefit to surviving the loss of predictable income. This wasn't...
by SC Hoosier
Sun Apr 06, 2014 9:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why pay off your house?
Replies: 119
Views: 8589

Re: Why pay off your house?

The bank keeps the title until you pay it off. Until then, it's theirs... No mortgage payment. Free up monthly income to invest. Lower bills. Need less emergency fund. No interest expense. I hate making money for banks! If you can't make the payment, they take it away! You don't have risk of getting...
by SC Hoosier
Sat Apr 05, 2014 1:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why pay off your house?
Replies: 119
Views: 8589

Re: 15 year vs 30 year fixed

I would ignore the bonuses until you receive them. Then kill the debt! Remember to set taxes aside if they are not taken out for you.
by SC Hoosier
Sat Apr 05, 2014 1:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5794

Re: 15 year vs 30 year fixed

To answer your question: I ballparked your after tax income to be 22,000, monthly, plus production bonuses? It seems to me that you can handle the larger payment of the 15 year mortgage and probably still have a good bit of money left over to pay off student loans, build cash or taxable investments ...
by SC Hoosier
Sat Apr 05, 2014 11:23 am
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5794

Re: Pay Off Mortgage? Better Advice?

You certainly have a basis for an outstanding future, but Bogleheads are going to question why you have $400k in the bank earning 1%. Are you seriously risk averse or do you need the money for some near future investment, like a business? Tipswatcher, I know all the Bogleheads would question it. Th...
by SC Hoosier
Sat Apr 05, 2014 8:25 am
 
Forum: Personal Finance (Not Investing)
Topic: Pay Off Mortgage? Better Advice?
Replies: 11
Views: 1169

Re: 15 year vs 30 year fixed

What would your payments be? What does your monthly cashflow look like? I'd like to see how much cushion you have every month before I answer the question.

It is a good question and I'd like to help. Thanks for asking, just need more info.

Hoosier
by SC Hoosier
Sat Apr 05, 2014 8:02 am
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5794

Re: Roth IRA for 2013 - taxes already filed

steve.s wrote:Hmm, I don't think you can open any IRA for 2013 after you have filed for 2013.


Why would it matter if it was a Roth?

Hoosier


PS. I am pulling for the Badgers in the Final Four. I hope they trounce Kentucky!
by SC Hoosier
Fri Apr 04, 2014 10:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth IRA for 2013 - taxes already filed
Replies: 11
Views: 927

Re: Pay Off Mortgage? Better Advice?

You aren't going to find a ton of support here to pay off your mortgage because many posters don't consider risk in their number crunching. They just assume that you'll always have the high paying job, the economy will be good, market returns will be average or better.... I say pay the house off. Th...
by SC Hoosier
Thu Apr 03, 2014 9:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay Off Mortgage? Better Advice?
Replies: 11
Views: 1169

Re: help for a fellow seeker

I wouldn't ask the advisor any questions. I would have Vanguard move the funds and write a nice letter thanking them for their help in the past and wishing them luck in the future.

It's not personal.

Hoosier
by SC Hoosier
Wed Apr 02, 2014 9:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: help for a fellow seeker
Replies: 30
Views: 2648

Re: Swamped In Debt - Thoughts?

Thanks again for all the great comments! I plan on making a few lump sum payments on the 2nd mortgage in the next few days. As for taking additional money from the EF, I just don't feel too comfortable doing that. I figure we probably could have the remaining part of the 2nd mortgage paid off in 3 ...
by SC Hoosier
Wed Apr 02, 2014 2:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Swamped In Debt - Thoughts?
Replies: 68
Views: 8238

Re: help for a fellow seeker

Thank you for running the numbers for us Avalon.

Hoosier
by SC Hoosier
Tue Apr 01, 2014 2:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: help for a fellow seeker
Replies: 30
Views: 2648

Re: Spouses that struggle with budgets

1. Each spouse should have some spending money that they don't account to anyone for. 2. For someone who has problems with budgeting, I'd recommend the "cash in envelopes" approach, where you take the monthly amount you agree on, divide it into 4 buckets, and make an envelope for each wee...
by SC Hoosier
Tue Apr 01, 2014 2:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Spouses that struggle with budgets
Replies: 27
Views: 2258

Re: (Lack of) Emergency Fund - Are We Crazy?

I found a benefit of having an emergency fund that is difficult to quantify: My wife feels safer and more secure with it. When she is happier, I'm happier.

Hoosier
by SC Hoosier
Tue Apr 01, 2014 11:20 am
 
Forum: Personal Finance (Not Investing)
Topic: (Lack of) Emergency Fund - Are We Crazy?
Replies: 44
Views: 3468

Re: good mortgage

Put at least 20% down. This will help keep you from getting underwater. You want to be able to sell it if you choose to. No more than 25% of your take home pay. This will keep you from borrowing more than you can afford.

Hoosier
by SC Hoosier
Tue Apr 01, 2014 10:13 am
 
Forum: Personal Finance (Not Investing)
Topic: good mortgage
Replies: 5
Views: 882

Re: help for a fellow seeker

Yes. Roll those IRAs over to Vanguard. Save a ton in fees. Roll the 401k over as soon as you switch jobs. Work through the reading list. Index funds are a luxury that weren't available to investors before 1976. We are so fortunate to have access to them. Thanks Jack! Also, congrats on being debt fr...
by SC Hoosier
Tue Apr 01, 2014 9:33 am
 
Forum: Investing - Help with Personal Investments
Topic: help for a fellow seeker
Replies: 30
Views: 2648

Re: BH Vacations

I prefer to treat myself on vacation and live it up a little. Nicer hotels, dinners out (rare for us). I am a golfer and I'm taking my sticks to TPC Sawgrass ($500) on our next vacation. It's on my bucket list. I feel fortunate to work on my bucket list at age 38. I know that I'm spending money on t...
by SC Hoosier
Mon Mar 31, 2014 8:40 pm
 
Forum: Personal Consumer Issues
Topic: BH Vacations
Replies: 50
Views: 3225

Re: help for a fellow seeker

Yes. Roll those IRAs over to Vanguard. Save a ton in fees. Roll the 401k over as soon as you switch jobs. Work through the reading list. Index funds are a luxury that weren't available to investors before 1976. We are so fortunate to have access to them. Thanks Jack! Also, congrats on being debt fre...
by SC Hoosier
Mon Mar 31, 2014 7:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: help for a fellow seeker
Replies: 30
Views: 2648

Re: Portfolio Review

Thanks for the advice Hoosier. I agree Hancock is terrible. They have some vanguard funds available, but they tack on 2 fees of 50 bps each...ridiculous. I have the IRA at vanguard ready for the eventual rollover, but whilst i'm employed at my current company, i'm stuck with hancock. Rule of thumb ...
by SC Hoosier
Fri Mar 28, 2014 7:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 5
Views: 686

Re: Portfolio Review

Bump for visibility.

You'll get a 4% guaranteed return if you pay down debt. That is tough to beat.

Hoosier
by SC Hoosier
Fri Mar 28, 2014 4:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 5
Views: 686

Re: Portfolio Review

Questions: 1) Hancock has the worst fund choices in terms of ER. I have access to Total Bond (1.06) and Total Stock (1.07). Does it make a difference whether i buy stocks here @ 1.07 and bonds elsewhere @ 0.17, or bonds here @ 1.06 and stocks elsewhere @ 0.07? Or just buy all three funds here to ma...
by SC Hoosier
Fri Mar 28, 2014 12:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 5
Views: 686

Re: Surrender life insurance?

I assume you have a wife and kids. If not, then you don't need life insurance. You should surrender the whole life policy after you have 20 year level term insurance in place. There are no tax implications. Check out Financial Peace University by Dave Ramsey. It would help you with a lot of financia...
by SC Hoosier
Tue Mar 25, 2014 8:58 am
 
Forum: Personal Finance (Not Investing)
Topic: Surrender life insurance?
Replies: 4
Views: 449

Re: You can lead a horse to water...

I think of financial planners as being good for investing, long-term planning, etc. Debt reduction doesn't exactly come to mind, but I'm sure there are some planners that specialize in that area. It does remind me of those credit counseling/consolidation commercials though. If you have a great rela...
by SC Hoosier
Thu Mar 20, 2014 7:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: You can lead a horse to water... [Giving financial advice]
Replies: 50
Views: 5166

Re: You can lead a horse to water...

I like Vachica's suggestion about the book. Dave Ramsey's Financial Peace University would give them a well rounded financial education. It's around $100. You could offer to pay for them to attend. Or not. Don't stress about their problem. Our choices have consequences. They aren't going to die from...
by SC Hoosier
Thu Mar 20, 2014 2:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: You can lead a horse to water... [Giving financial advice]
Replies: 50
Views: 5166

Re: Single Income Family with 4 Children (so far)

Only on Bogleheads is a family income of $130K, struggling... :oops: I would say the opposite is true compared to the average US household making that amount of money. Also, I wouldn't say the OP is struggling. They are doing much better than average. Just not better than the average Boglehead. I w...
by SC Hoosier
Wed Mar 19, 2014 5:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Single Income Family with 4 Children (so far)
Replies: 69
Views: 4685

Re: Single Income Family with 4 Children (so far)

lol...thanks for the entertaining dialogue and great advice. Every one is certainly entitled to his opinion, especially where applicable to my question. In my circle, we are no where close to being a big family. Most of my closest friends have 10-15 kids, and I would get the stink eye if I even tho...
by SC Hoosier
Wed Mar 19, 2014 1:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Single Income Family with 4 Children (so far)
Replies: 69
Views: 4685

Re: Just Got a Letter: Our PMI Has Been Automatically Cancel

leo383 wrote:I intend to throw the extra $100 at the mortgage.

We are at 4.25% fixed on the mortgage rate. I do look at it like a guaranteed return, which is a rare thing. :happy


Good for you!
by SC Hoosier
Mon Mar 17, 2014 12:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Just Got a Letter: Our PMI Has Been Automatically Canceled?
Replies: 4
Views: 1059

Re: Just Got a Letter: Our PMI Has Been Automatically Cancel

On a mortgage you've held for a few years (in order to pay it down to 78%) chances are the equivalent rate is far better than you can get in any other savings or investment that gives such a good rate -- guaranteed with no risk. That's also building more wealth for the future, because in the end --...
by SC Hoosier
Mon Mar 17, 2014 9:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Just Got a Letter: Our PMI Has Been Automatically Canceled?
Replies: 4
Views: 1059

Re: What premium items are least worth it?

ie: What are some things you feel are totally overpriced, that most people do not see as price gouged? In my opinion, practically nothing is over priced. It's a very competitive world out there. If something is truly overpriced, it soon gets buried by the competition. Luxury costs. Get over it, or ...
by SC Hoosier
Mon Mar 17, 2014 8:51 am
 
Forum: Personal Finance (Not Investing)
Topic: What premium items are least worth it?
Replies: 105
Views: 5651

Re: What Book Are You Currently Reading? Part V

I am currently reading "Strong Fathers, Strong Daughters" by Dr. Meg Meeker. I am a professional parent and this is the best book on parenting I've ever read. Next is "Boys Should Be Boys" by same author.

Hoosier
by SC Hoosier
Mon Mar 17, 2014 8:25 am
 
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 2633
Views: 602275

Re: Do you love your job? What do you do?

I look forward to retirement a lot. Too much. I have read the Ernie Zelinski books on retirement. So I have been trying to incorporate some of my retirement dreams into my life now. I asked myself what would I do if I didn't need money. I would teach kids who don't have good parents, or any parents ...
by SC Hoosier
Sun Mar 16, 2014 8:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you love your job? What do you do?
Replies: 134
Views: 10103

Re: Opinions on our situation? Very Long Post!

You should know that there is, with a few exceptions, a bias on this forum against Roth type retirement savings. You are going to get advice toward the traditional deductible variety. I don't think the 15% rebate is worth it. Sure, you can withdraw to use the standard deduction, but you don't know h...
by SC Hoosier
Sat Mar 15, 2014 8:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Opinions on our situation? Very Long Post!
Replies: 21
Views: 2404

Re: Opinions on our situation? Very Long Post!

SC Hoosier, I should have specified, that $10k I took from savings did go into debt, not into retirement. I paid off the remaining balance on my car loan & a few smaller 6.8% loans. Thanks for the advice. I agree, we really want to be debt free & cannot wait for that day. Congrats on your s...
by SC Hoosier
Sat Mar 15, 2014 8:44 am
 
Forum: Personal Finance (Not Investing)
Topic: Opinions on our situation? Very Long Post!
Replies: 21
Views: 2404

Re: Opinions on our situation? Very Long Post!

You'll have more investing options inside the IRA than the 401k. That is really the only big difference. It is a shame that you didn't put the $10k towards the student loans. You could have gotten rid of all but the big one. I would pay those suckers off! You're not going to get a better investment ...
by SC Hoosier
Sat Mar 15, 2014 7:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Opinions on our situation? Very Long Post!
Replies: 21
Views: 2404

Re: Do you have a side job?

Kosmo wrote:I hasn't considered real estate, so I feel obliged to change my vote to yes. However, I don't think of it as another job.


It is another job. One I didn't like.
by SC Hoosier
Fri Mar 14, 2014 10:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you have a side job?
Replies: 58
Views: 4785

Re: Opinions on our situation? Very Long Post!

I think you are doing great as well. Given your whole situation (lowest earning years, new baby, living with MIL, new marriage), I would lower my retirement savings a bit. You are contributing about 20% to retirement funds, which is a lot considering your age and your other competing short term int...
by SC Hoosier
Fri Mar 14, 2014 10:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Opinions on our situation? Very Long Post!
Replies: 21
Views: 2404

Re: Another one of those 'should I sell my condo?' threads

Sell it, pay off other debts and and invest the money in Roth's, or maybe invest in a home for yourself. You'll have to be a landlord for 15 years to equal the profit you'd get out of it now. Plus you pay no tax on it now. It's a no brainer. Good for you!

That is what I'd do.

Hoosier
by SC Hoosier
Fri Mar 14, 2014 10:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Another one of those 'should I sell my condo?' threads
Replies: 8
Views: 575

Re: Car Buying Strategy

I only buy 5 year old cars. I have never regretted one purchase.
by SC Hoosier
Fri Mar 14, 2014 9:53 pm
 
Forum: Personal Consumer Issues
Topic: Car Buying Strategy
Replies: 46
Views: 3796

Re: Will we be ok?

I felt I'd better confess to the OP. I've been hard on you about wine, but then I realized I'm planning a $450 round of golf in May at TPC Sawgrass, 3 days after The Players Championship. I'll be on the same course that Tiger and Phil walked only days before. I am excited. We all have our things tha...
by SC Hoosier
Thu Mar 13, 2014 10:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Will we be ok?
Replies: 45
Views: 4228
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