Search found 5688 matches

by ThankYouJack
Wed Feb 14, 2024 3:47 pm
Forum: Personal Consumer Issues
Topic: Pay cleaning lady for snow day?
Replies: 119
Views: 10091

Re: Pay cleaning lady for snow day?

JediMisty wrote: Wed Feb 14, 2024 2:17 pm Good, reliable cleaners are just wonderful to have!! :D
Agreed.

I'm not sure if the OP and others have asked around (talk to local friends not stingythrifty Bogleheads :D ) about satisfaction with house cleaners. I recently have and the majority of my friends are not very satisfied with their house cleaners.
by ThankYouJack
Wed Feb 14, 2024 3:38 pm
Forum: Personal Investments
Topic: should i pay off a car at 1.9% or invest in a cd at 5.5%
Replies: 67
Views: 6286

Re: should i pay off a car at 1.9% or invest in a cd at 5.5%

No matter the amount, one would come out financially ahead. Depends on one's marginal tax rate. If it's around 65% or greater one wouldn't come out financially ahead. Not sure this is even a possibility in this case. The highest Federal marginal rate for 2024 is 37%. That would mean any State/local tax would have to be an additional 28%. According to a quick search the highest 2024 marginal State rate is only 14.4%. You're confusing marginal tax rate with tax brackets. They're not always the same. It's abundantly clear that you're in disagreement with the argument - and that's fine. That being the case, I'll leave with this: For most , the marginal tax rate is the same as their tax bracket (https://www.bogleheads.org/wiki/Marginal_tax_rate...
by ThankYouJack
Wed Feb 14, 2024 1:27 pm
Forum: Personal Investments
Topic: should i pay off a car at 1.9% or invest in a cd at 5.5%
Replies: 67
Views: 6286

Re: should i pay off a car at 1.9% or invest in a cd at 5.5%

scophreak wrote: Wed Feb 14, 2024 12:31 pm
ThankYouJack wrote: Wed Feb 14, 2024 10:53 am
scophreak wrote: Wed Feb 14, 2024 9:27 am No matter the amount, one would come out financially ahead.
Depends on one's marginal tax rate. If it's around 65% or greater one wouldn't come out financially ahead.
Not sure this is even a possibility in this case. The highest Federal marginal rate for 2024 is 37%. That would mean any State/local tax would have to be an additional 28%. According to a quick search the highest 2024 marginal State rate is only 14.4%.
You're confusing marginal tax rate with tax brackets. They're not always the same.
by ThankYouJack
Wed Feb 14, 2024 11:31 am
Forum: Personal Consumer Issues
Topic: Pay cleaning lady for snow day?
Replies: 119
Views: 10091

Re: Pay cleaning lady for snow day?

retired recently wrote: Wed Feb 14, 2024 10:31 am This seems like American guilt which lead to extreme tipping on steroids...why would you pay for something you do not receive.
I don't think it's guilt but more wanting to take of good people who help you. Since the OP has a good relationship with this person and has been happy with the services, I'd want to help them out and be generous in these one-off situations.

If the OP wasn't fond of the person and not happy with the service, I wouldn't pay for the snow day (and would look for another cleaning person)
Carguy85 wrote: Wed Feb 14, 2024 11:21 am BTW, studies show that someone that repeatedly gets money for nothing ends up resenting who they get the money from.
What studies? I don't think it's repeatedly gets money for nothing, seems like a pretty rare occurrence
by ThankYouJack
Wed Feb 14, 2024 10:53 am
Forum: Personal Investments
Topic: should i pay off a car at 1.9% or invest in a cd at 5.5%
Replies: 67
Views: 6286

Re: should i pay off a car at 1.9% or invest in a cd at 5.5%

scophreak wrote: Wed Feb 14, 2024 9:27 am No matter the amount, one would come out financially ahead.
Depends on one's marginal tax rate. If it's around 65% or greater one wouldn't come out financially ahead.
by ThankYouJack
Wed Feb 14, 2024 8:58 am
Forum: Personal Investments
Topic: should i pay off a car at 1.9% or invest in a cd at 5.5%
Replies: 67
Views: 6286

Re: should i pay off a car at 1.9% or invest in a cd at 5.5%

Why is that? In a loan amortization schedule, you pay the highest interest upfront. As the principal amount of the loan is paid, the interest will decrease over time. Assuming you get the same interest in your CD (duh!), the delta should get bigger as time goes by, no? You should factor in that if you're making the payments from the CD/MMF, the CD/MMF balance will decrease over time. By the time you get to the last year of the loan, you'll have far less than $17k left. Say you have $4k left in that last year, it'll generate significantly less interest than the original $17k amount. Do you really break a CD to make monthly car payments? For arbitrage type examples like this, yes because the payments need to come from somewhere. I think it's...
by ThankYouJack
Wed Feb 14, 2024 8:05 am
Forum: Personal Consumer Issues
Topic: Pay cleaning lady for snow day?
Replies: 119
Views: 10091

Re: Pay cleaning lady for snow day?

I wonder if some of the responders from the more of the business perspective have had individual cleaners before. My experience is that they don't run it as a cut-throat business: they don't have policies, they don't ask for raises (they should), they are very appreciative of good clients.

Relationships are important in business too, not just trying to save a buck.
by ThankYouJack
Wed Feb 14, 2024 7:33 am
Forum: Personal Investments
Topic: Please critique my strategy for a simple, tax-efficient hands-off portfolio
Replies: 19
Views: 3472

Re: Please critique my strategy for a simple, tax-efficient hands-off portfolio

Wouldn't VTI be better than VXUS in taxable for dividend tax purposes? That's a good question! Since the OP's in the top tax bracket, we can use the after-tax returns posted on Vanguard's site. 100% VT 10y return: before taxes = 8.07%, after-tax = 7.45%, tax efficiency = after/before = 92.3% - - - - - 60% VTI 10y return: before taxes = 11.44%, after-tax = 10.96%, tax efficiency = after/before = 95.8% 40% VXUS 10y return: before taxes = 4.06%, after-tax = 3.28%, tax efficiency = after/before = 80.8% Weighted avg tax efficiency = 60%x95.8% + 40%x80.8% = 89.8% On first-look it seems more tax-efficient to use VT rather than VTI+VXUS (92.3% > 89.8%), but you're still stuck with the 40% int'l as % of stocks (if that's what you want it's a good f...
by ThankYouJack
Wed Feb 14, 2024 7:12 am
Forum: Personal Investments
Topic: should i pay off a car at 1.9% or invest in a cd at 5.5%
Replies: 67
Views: 6286

Re: should i pay off a car at 1.9% or invest in a cd at 5.5%

Let's quantify this. Assume your effective fed+state marginal tax rate is 25% (substitute your actual numbers there). 5.5% yield on your CD post tax equates to 4.1%. So the differential yield over your car loan is (4.125-1.9) = 2.225% 2.225% on a 17K loan approximates to $380/year. You can decide if that amount extra per year is worth the extra hassle of maintaining the CD, stress of not being debt free, the slight risk of having a car with an loan (insurance hassle if totalled, sales hassle if you need to sell quickly etc.). It's a close call, but for me, I would take the free money. It would be about $380 for the first year. But decrease after that. Why is that? In a loan amortization schedule, you pay the highest interest upfront. As th...
by ThankYouJack
Tue Feb 13, 2024 7:58 pm
Forum: Personal Investments
Topic: should i pay off a car at 1.9% or invest in a cd at 5.5%
Replies: 67
Views: 6286

Re: should i pay off a car at 1.9% or invest in a cd at 5.5%

The numbers are incontrovertible - taking the loan is the best financial play here. Anything else is just behavioral, and I'll point out that many of the primary tenets of this forum are purposely simple in order to overcome behavioral pitfalls to investing. Why should this decision be any different? Because it's such a small difference I don't think it's going to matter to the majority on here. It's not a big deal either way. What tenets? John Bogle himself didn't like owing money. You're right, the numbers aren't going to significantly move the needle either way. However, any of us would bend down and pick up a $5 bill off the ground given the amount of effort for the payoff. Here we're talking about over $600 for the first year (minus t...
by ThankYouJack
Tue Feb 13, 2024 4:49 pm
Forum: Personal Investments
Topic: should i pay off a car at 1.9% or invest in a cd at 5.5%
Replies: 67
Views: 6286

Re: should i pay off a car at 1.9% or invest in a cd at 5.5%

scophreak wrote: Tue Feb 13, 2024 4:18 pm The numbers are incontrovertible - taking the loan is the best financial play here. Anything else is just behavioral, and I'll point out that many of the primary tenets of this forum are purposely simple in order to overcome behavioral pitfalls to investing. Why should this decision be any different?
Because it's such a small difference I don't think it's going to matter to the majority on here. It's not a big deal either way.

What tenets? John Bogle himself didn't like owing money.
by ThankYouJack
Tue Feb 13, 2024 1:09 pm
Forum: Personal Investments
Topic: should i pay off a car at 1.9% or invest in a cd at 5.5%
Replies: 67
Views: 6286

Re: should i pay off a car at 1.9% or invest in a cd at 5.5%

Chan_va wrote: Tue Feb 13, 2024 12:47 pm Let's quantify this. Assume your effective fed+state marginal tax rate is 25% (substitute your actual numbers there). 5.5% yield on your CD post tax equates to 4.1%. So the differential yield over your car loan is (4.125-1.9) = 2.225%

2.225% on a 17K loan approximates to $380/year.

You can decide if that amount extra per year is worth the extra hassle of maintaining the CD, stress of not being debt free, the slight risk of having a car with an loan (insurance hassle if totalled, sales hassle if you need to sell quickly etc.). It's a close call, but for me, I would take the free money.
It would be about $380 for the first year. But decrease after that.
by ThankYouJack
Tue Feb 13, 2024 12:59 pm
Forum: Personal Consumer Issues
Topic: Pay cleaning lady for snow day?
Replies: 119
Views: 10091

Re: Pay cleaning lady for snow day?

cleaning lady we like
That is key and I would keep her happy. Great cleaners can be tough to find especially in certain areas. If you like one and have a good relationship and she's already completely booked, better to overpay IMO, for great service from solid people.
TomatoTomahto wrote: Tue Feb 13, 2024 12:47 pm I paid my cleaners not to come during COVID.
Same.
by ThankYouJack
Tue Feb 13, 2024 12:50 pm
Forum: Personal Investments
Topic: Please critique my strategy for a simple, tax-efficient hands-off portfolio
Replies: 19
Views: 3472

Re: Please critique my strategy for a simple, tax-efficient hands-off portfolio

Thanks for the suggestion. I'm actively trying to simplify and reduce the number of tickers I own/track. I already own VTI, VXUS, but not VT yet. Why not use VT Vanguard total world stock in the Roth? VT is fine if you want the world allocation of int'l stocks (just under 40%), but if it's held in a Roth, then you don't get the foreign tax credit, which is why I suggested all 16% of your total allocation to Int'l stocks be held in the taxable account (VXUS) and just hold domestic stocks in the tax-advantaged accounts, which also eliminates the Wash Sale concern (as long as you hold VOO in taxable and VTI in tax-advantaged or vice-versa, if you still need some domestic stock in the taxable account). If you want a lesser exposure to int'l st...
by ThankYouJack
Tue Feb 13, 2024 11:39 am
Forum: Personal Consumer Issues
Topic: Which Boston suburb to settle?
Replies: 198
Views: 18116

Re: Which Boston suburb to settle?

Thank you! We've explored California, North Carolina and Colorado. My family travelled to California(Bay area) and North Carolina, we focus on neighborhood exploring, so mostly just parks, kids activities in town. Here are high level summary of why we don't think California/Bay Area and North Carolina don't fit into our needs: Bay Area: Obviously, it is very expensive, but we might still able to afford a okay house if both of us stay employed. The biggest concern to us is the peer pressure for kiddos, if you look into us census data, some cities have 75%+ Asian population, and schools have 80%+ Asian.If you happen to know, Asian kids are super focus on academy and they are very good at it. It puts a lot pressure on kids. Although we would ...
by ThankYouJack
Tue Feb 13, 2024 7:17 am
Forum: Personal Consumer Issues
Topic: Which Boston suburb to settle?
Replies: 198
Views: 18116

Re: Which Boston suburb to settle?

I have seen some people reply if you could work remote and live somewhere else why choose Boston? I am curious what other cities specifically one would live in then that meet the priorities of kids/public schools, weather, house around 1.5 MM. I was one of the responders who asked why Boston. It wasn't a knock on Boston, the US is just such a big country with so many great areas that I was wondering what made Boston the only place on your list. I'd also look into some areas in California, North Carolina, Virginia, maybe the mid-Atlantic, maybe Colorado, maybe the Midwest. Comparing K-12 schools is tough. For example, the first town I looked up (a town I like that was recommended in this thread - Newburyport, MA) gets 4/10 for the elementar...
by ThankYouJack
Mon Feb 12, 2024 3:47 pm
Forum: Personal Consumer Issues
Topic: Is it foolish to keep driving my old car?
Replies: 138
Views: 12251

Re: Is it foolish to keep driving my old car?

familythriftmd wrote: Mon Feb 12, 2024 3:02 pm
ThankYouJack wrote: Sat Feb 10, 2024 3:43 pm ... new 3 row SUV with leather ... Would be interested in a 4runner or Grand Highlander if I go new. Or if I go used maybe a Palisade, Tahoe, Pilot, Yukon, etc.
Maybe I missed it, but you didn't say why you need a 3-row SUV, and why leather?
For the SUV part, sometimes I haul a lot of people or stuff. Would prefer leather (or fake leather) for the ease of cleaning and feel over cloth.
by ThankYouJack
Mon Feb 12, 2024 1:23 pm
Forum: Personal Consumer Issues
Topic: Which Boston suburb to settle?
Replies: 198
Views: 18116

Re: Which Boston suburb to settle?

SmileyFace wrote: Mon Feb 12, 2024 10:52 am
I used quotes - I didn't misread - I quoted EXACTLY what had been stated.
Oh ok, since you didn't use the quote feature I thought you were misquoting me. I went back in the thread and saw where it was said. I just read it as the poster exaggerating, not as someone trying to spread misinformation that everyone is actually trapped indoors for months in Boston.

Most of the people I know in New England aren't fans of the winters but everyone has their own preferences and experiences. I loved living in the Boston suburbs for 6 years but would never want to move back.
by ThankYouJack
Mon Feb 12, 2024 11:25 am
Forum: Personal Consumer Issues
Topic: Which Boston suburb to settle?
Replies: 198
Views: 18116

Re: Which Boston suburb to settle?

CloseEnough wrote: Mon Feb 12, 2024 11:01 am
I have heard there are plenty of excellent indoor tennis courts in the Boston suburbs where the ball bounces just fine, and there is no wind :happy

Really not an issue. Same for swimming.
Yes, but you're still indoors ;) IMO it's not as fun playing tennis or swimming indoors and if I was the OP, I would research wait list length, court/lane availability, cost, how close the indoor clubs are to neighborhoods, etc.

Agreed that every place has plusses and minuses. I still think the OP should open up their search beyond Boston
by ThankYouJack
Mon Feb 12, 2024 10:33 am
Forum: Personal Consumer Issues
Topic: Which Boston suburb to settle?
Replies: 198
Views: 18116

Re: Which Boston suburb to settle?

I appreciated both of your views, I will take it with a grain of salt. Please do - and make sure you do proper research. The amount of misinformation in this thread is overwhelming. Although I hate seeing misinformation on Bogleheads and always feel compelled to respond/correct - the amount in this thread is getting to be too much. (e.g. "Trapped indoor for months at a time" - we just enjoyed a February weekend in the 50s.). It seems like "trapped indoors for months" is a strawman's argument which there's a lot of on here but maybe you misread or misinterpreted what was said? If one feels trapped indoors in Texas during certain times of the year, my feeling is they could feel trapped indoors in Boston during certain tim...
by ThankYouJack
Sun Feb 11, 2024 6:39 am
Forum: Personal Consumer Issues
Topic: Is it foolish to keep driving my old car?
Replies: 138
Views: 12251

Re: Is it foolish to keep driving my old car?

Thanks all. It's nudged me and I'll start test driving some cars. Likely go new. What are all the new safety features you are missing out on? A backup camera, automatic braking, lane departure warning, lane keep assist, blind spot warning, rear cross-traffic warning. What car do you presently have with 200k miles that's 15 years old. That makes a huge difference. For example, if it's a Hyundai anything, send it to be crushed. If it's a Honda anything, you have 10 more years in it, easy. It's a Honda and has been great, but was quoted $600 by my mechanic for an oil fix (forget the spot it's seeping from), it's over due on the timing belt, needs new brakes, should replace the entire headlight enclosures as those are fogged up, and any other m...
by ThankYouJack
Sat Feb 10, 2024 3:43 pm
Forum: Personal Consumer Issues
Topic: Is it foolish to keep driving my old car?
Replies: 138
Views: 12251

Is it foolish to keep driving my old car?

My family has a new car, but our other car is over 15 years old with 200k miles. Great car, but none of the new safety features and tech, it's due for some pricey maintenance and I don't want to break down especially if I take it on trips. But I'm in this analysis paralysis with getting something new(er): 1) Financially I'm getting close to FI but don't plan to retire anytime soon, so I could spend a lot on a new car without it having much of an impact. 2) But with the mark ups over MSRP, ~$50k feels like a ton to spend on a new 3 row SUV with leather that I won't drive a lot (< 5k miles a year) and beat up a bit (it will be for loading gear and kids and on some adventure trips) 3) Many used cars (especially Toyotas) don't seem worth the hi...
by ThankYouJack
Sat Feb 10, 2024 1:30 pm
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24662

Re: Is paying off a 2.99% mortgage always a bad idea?

I think some of the confusion with the thread is the title is quite a bit different than the OPs specific situation. Maybe if the title was changed to "always a bad idea for me?" that would reduce a lot of the back and forth?

I wonder if most would agree that:

1. No, the OP shouldn't pay LTCG taxes to pay off a 2.99% mortgage current MMF interest rates.

2. Paying off a 2.99% mortgage is not always a bad idea.
by ThankYouJack
Sat Feb 10, 2024 1:09 pm
Forum: Personal Consumer Issues
Topic: Which Boston suburb to settle?
Replies: 198
Views: 18116

Re: Which Boston suburb to settle?

nptit wrote: Sat Feb 10, 2024 9:28 am
We live in Texas now, weather wise it is a little bit step up actually, one is extreme hot, one is mild cold. I would say Boston is a step up in terms of weather, kids are out from school during summer, we can take them to various outdoor activities during summer in Boston, here we are trapped in the house or need to fly to somewhere to vacation.
Along with weather, less winter sunlight / shorter days is another thing to consider. Probably not many afterschool outdoor winter activities in the Boston suburbs. I like snow and snowboarding, but long dreary winters when it's dark and cold by the time I'd finish work and being "trapped in the house" would drag on me.
by ThankYouJack
Fri Feb 09, 2024 5:00 pm
Forum: Personal Consumer Issues
Topic: Which Boston suburb to settle?
Replies: 198
Views: 18116

Re: Which Boston suburb to settle?

With the OPs main focus on good schools and safety I still wonder how these compare to other places in the US.

my high school and college (both close to Boston) are highly rated yet I feel the actual education was mediocre. I wonder if someplace say in the Midwest would be better in terms of schools, safety and affordability.

I know a lot of people (Including myself) from New England who have lived elsewhere and never want to move back. I’m not trying to knock the area but the US is huge and plenty of other areas that are safe with good schools to consider.

Threads can skew in favor of a particular place but for those that are really strong Boston proponents, where else have you lived (not just visited)?
by ThankYouJack
Thu Feb 08, 2024 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Costs Of Kids From BH Parents?
Replies: 59
Views: 5124

Re: Costs Of Kids From BH Parents?

lthenderson wrote: Thu Feb 08, 2024 11:00 am
Gecko10x wrote: Thu Feb 08, 2024 10:27 am IMO, kids cost whatever you want them to or allow them to.
+1000 Plus, alternative cheaper routes don't necessarily mean inadequate.
Yep, it might be $200 for some parents and $20,000 for others. it's sort of like asking BHers how much they spend on food. The spending is going to vary greatly and I'm not sure how what others spend would be helpful for one's personal situation.
by ThankYouJack
Thu Feb 08, 2024 9:18 am
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24662

Re: Is paying off a 2.99% mortgage always a bad idea?

toddthebod wrote: Thu Feb 08, 2024 7:39 am
ThankYouJack wrote: Thu Feb 08, 2024 6:56 am What happens to the arbitrage opportunity when the MMF drops to 4% or less?
You can pay off your mortgage.
Yeah, and if the rate drops within a few years the numbers in the example would be a big over-estimate.
by ThankYouJack
Thu Feb 08, 2024 7:28 am
Forum: Personal Consumer Issues
Topic: Decaf K Cups
Replies: 31
Views: 2527

Re: Decaf K Cups

02nz wrote: Wed Feb 07, 2024 3:40 pm
bob60014 wrote: Wed Feb 07, 2024 3:34 pm
02nz wrote: Wed Feb 07, 2024 3:30 pm I say this without meaning to offend: If you think regular K-Cups are drinkable, then decaf won't be much of a difference to your palate.
That's why one gets the reusables and inserts the coffee of ones choice.
At that point, just use a regular coffee machine.
Yeah, or a super automated coffee/espresso machine if one wants to save time. Some of them are just a few hundred $ and probably make just as good or better coffee than a Keurig.

Fresher coffee, more selection, more environmentally friendly, probably cheaper in the long run than using single use pods.
by ThankYouJack
Thu Feb 08, 2024 7:00 am
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24662

Re: Is paying off a 2.99% mortgage always a bad idea?

evancox10 wrote: Wed Feb 07, 2024 5:30 pm

The interest rate arbitrage is basically a wash, but OP would have to pay $20,000 in capital gains taxes to pay off the mortgage. That seems unwise. If you want to pay off the loan, direct new money or sell assets in the red, but don't incur a 5 figure tax bill.
I agree.
by ThankYouJack
Thu Feb 08, 2024 6:56 am
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24662

Re: Is paying off a 2.99% mortgage always a bad idea?

AnEngineer wrote: Wed Feb 07, 2024 6:26 pm
ThankYouJack wrote: Tue Feb 06, 2024 1:38 pm...
Lets say inflation averages 4% for those 30 years. ...
That's a pretty extreme assumption.

Yes, it's not gobs of money you spend to pay off the mortgage. Yet for a group that will note the cost of a 0.3% expense ratio or advising fee, it's hard to give up a free 0.5% rate difference after tax.
If the inflation rate is extreme, isn't a MMF staying at 5% (more than double the historical average) for 30 years is even more extreme.

What happens to the arbitrage opportunity when the MMF drops to 4% or less?
by ThankYouJack
Wed Feb 07, 2024 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Any IT Pros here moonlight?
Replies: 2
Views: 898

Any IT Pros here moonlight?

If so, how do you like it, how's the pay, how'd you find your clients, etc?

I'm considering getting back into it to challenge myself a bit more professionally, but financially it won't really impact things and about half my pay would go taxes. Also, if I put on LinkedIn that I'm "open to work", I'll probably be contacted by a bunch of recruiters (I'm in a high demand field) wanting me to relocate, which I'm not willing to do. What's the best way on LinkedIn to say you're open to moonlighting (remotely) but not looking to change jobs at the moment?
by ThankYouJack
Wed Feb 07, 2024 8:40 am
Forum: Personal Consumer Issues
Topic: 4runner vs. Highlander?
Replies: 109
Views: 27750

Re: 4runner vs. Highlander?

I'm considering one of these for my next car and always surprised with how little 4Runners depreciate (I don't want to buy one with 170k miles for $20k+). Yet I won't drive it a lot, maybe 50,000 miles in ten years. What would you expect a 10 year old 4Runner with 50k miles to sell for versus a 10 year old Highlander with the same mileage? Safety wise, how do they compare? Edit: I was just looking up some on cars.com and ~2014 4Runners with < 60k miles are about $30k. ~2014 Highlanders with similar miles are about $8k less. For safety, it looks like both have similar safety features but the Highlander rates a little better in IIHS tests. Why would you buy one of these when you're only driving 50k miles in 10 years? Unless you plan on off r...
by ThankYouJack
Wed Feb 07, 2024 8:06 am
Forum: Personal Consumer Issues
Topic: Budget-Friendly Venue Ideas for Young Kids' Birthday Parties
Replies: 28
Views: 5924

Re: Budget-Friendly Venue Ideas for Young Kids' Birthday Parties

One recommendation to keep it cheap for everyone (including the other parents) is to tell them to not bring gifts.

In lieu of gifts, we would often do a book exchange where everyone brings an age appropriate wrapped book (can be gently used) and the kids each get to pick one before they go.

We mostly did it because we didn't want parents spending ~$20 and time shopping for our kids. Then for our kids to get 20-30 new gifts that were going to barely be used. It always worked well.
by ThankYouJack
Tue Feb 06, 2024 4:33 pm
Forum: Personal Consumer Issues
Topic: 4runner vs. Highlander?
Replies: 109
Views: 27750

Re: 4runner vs. Highlander?

I'm considering one of these for my next car and always surprised with how little 4Runners depreciate (I don't want to buy one with 170k miles for $20k+). Yet I won't drive it a lot, maybe 50,000 miles in ten years. What would you expect a 10 year old 4Runner with 50k miles to sell for versus a 10 year old Highlander with the same mileage?

Safety wise, how do they compare?

Edit: I was just looking up some on cars.com and ~2014 4Runners with < 60k miles are about $30k. ~2014 Highlanders with similar miles are about $8k less. For safety, it looks like both have similar safety features but the Highlander rates a little better in IIHS tests.
by ThankYouJack
Tue Feb 06, 2024 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Pre early retirement steps
Replies: 22
Views: 2743

Re: Pre early retirement steps

jackb1117 wrote: Tue Feb 06, 2024 12:26 pm

* Get a handle on actual spending.
If all of your spending goes through your checking account, can you look at bank statements for the last few years and create a spreadsheet to get an average. Shouldn't take long to do. Then you'd just want to add health insurance and tax estimates during your retirement years.
by ThankYouJack
Tue Feb 06, 2024 1:38 pm
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24662

Re: Is paying off a 2.99% mortgage always a bad idea?

I still think the numbers are off for the arbitrage opportunity in this thread. So would be interesting to run some numbers to see how much one might come out ahead. Back of the napkin here's my take**: Say a mortgage is $100k @ 3.0% for 30 years MMF is @ 5% (let's assume it stays that high for 30 years*) Seems like a lot of people think that's $2k per year savings = $60k difference over 30 years. But if one's marginal tax rate is 30%, the after-tax MMF is 3.5% In 30 years, when the mortgage balance is paid off, the MMF would have about $19k left Lets say inflation averages 4% for those 30 years. That's like the mortgage saving $6k in todays today, 90% less than $60k * very unlikely and would make the final numbers smaller when it drops bel...
by ThankYouJack
Tue Feb 06, 2024 11:25 am
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24662

Re: Is paying off a 2.99% mortgage always a bad idea?

grogu wrote: Tue Feb 06, 2024 10:21 am
lakpr wrote: Mon Feb 05, 2024 1:38 pm Even someone early in their accumulation can benefit by paying down the mortgage, given that the mortgage rates are, almost always, a percentage point or two above the prevailing savings rates. I had my mortgage from 2000 till 2019; 30-year mortgage refinanced twice during the term. Towards the end, it became a 2.5% mortgage rate, but at that time savings and even long term CDs were yielding only 2%. Paying down the mortgage was better use of dollars.
My last refinance (after having done several) was a couple years ago when I got 2.0%. Very soon thereafter, savings/CD rates shot up to 4-5% and have been there ever since. No way am I paying off my mortgage.
fantastic rate. Did you pay a lot in closing costs to refi @ 2.0%?
by ThankYouJack
Mon Feb 05, 2024 4:41 pm
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24662

Re: Is paying off a 2.99% mortgage always a bad idea?

Rationally, someone early in their accumulation and far from FI benefits from keeping the mortgage the most. I am not sure about that. Even someone early in their accumulation can benefit by paying down the mortgage, given that the mortgage rates are, almost always, a percentage point or two above the prevailing savings rates. I had my mortgage from 2000 till 2019; 30-year mortgage refinanced twice during the term. Towards the end, it became a 2.5% mortgage rate, but at that time savings and even long term CDs were yielding only 2%. Paying down the mortgage was better use of dollars. That simply is a way of saying that for "someone early in their accumulation and far from FI", CDs, MMF, HYSA and other fixed income instruments are...
by ThankYouJack
Mon Feb 05, 2024 1:39 pm
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24662

Re: Is paying off a 2.99% mortgage always a bad idea?

[...] One difference may be when I paid it off, I was far from FI and at a pretty young age. I felt like it was an amazing accomplishment and knew I was on my way to being FI which would open a lot of opportunity. If I had paid it off well beyond FI (say 50x) and had millions, maybe it would have been more of a "meh" feeling. [...] That is why emotions are poor basis for making financial decisions. Rationally, someone early in their accumulation and far from FI benefits from keeping the mortgage the most. Depends on the interest rates. My interest rate was low (in the 4's), but much higher than MMF so there was no arbitrage opportunity. Hindsight 20/20 I should have put that money towards Bitcoin...guess we all should have. Ratio...
by ThankYouJack
Mon Feb 05, 2024 1:14 pm
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24662

Re: Is paying off a 2.99% mortgage always a bad idea?

For us, we've been there, and there was no psychological euphoric experience outside of the nice dinner we had that night. I wonder why some people (like myself) felt excited by it while others like you and StopToThink didn't. One difference may be when I paid it off, I was far from FI and at a pretty young age. I felt like it was an amazing accomplishment and knew I was on my way to being FI which would open a lot of opportunity. If I had paid it off well beyond FI (say 50x) and had millions, maybe it would have been more of a "meh" feeling. And some people just get more excited with hitting financial milestones while others are less emotional. With that said, I'm not super debt adverse and will likely get a mortgage if I upgrad...
by ThankYouJack
Mon Feb 05, 2024 7:22 am
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24662

Re: Is paying off a 2.99% mortgage always a bad idea?

Why do you feel that way? Because he could do math? “The winning formula for success in investing is owning the entire stock market through an index fund, and then doing nothing. Just stay the course.” — John C. Bogle “The two greatest enemies of the equity fund investor are expenses and emotions.” — John C. Bogle In the situation OP posits, he would remove money from the market, thereby not staying the course, and pay long term tax on it to satisfy an emotion. I doubt Bogle would advocate either. WWJBD? He had around $80 million dollars and specificially said he didn't like borrowing money. He wouldn't have to take money out of the market to pay off a $283k mortgage. I don't think he would try to play games for something so inconsequentia...
by ThankYouJack
Sun Feb 04, 2024 2:09 pm
Forum: Personal Investments
Topic: Is paying off a 2.99% mortgage always a bad idea?
Replies: 332
Views: 24662

Re: Is paying off a 2.99% mortgage always a bad idea?

8foot7 wrote: Sun Feb 04, 2024 1:01 pm
HMSVictory wrote: Sun Feb 04, 2024 12:22 pm
If you step back from the groupthink here on the forum and ask yourself "would Jack Bogle borrow on his house at 2.99% to invest"?

No, he would not. Simplicity > complexity.
I am pretty confident Jack Bogle would not accelerate repayment of an existing 2.99% mortgage.
Why do you feel that way?

He didn't like to borrow money and didn't need to.

https://www.reuters.com/article/idUSBRE88A0LJ/
My wife and I downsized our home in Bryn Mawr, Pennsylvania, as we got older. About five years ago we moved into a place that's about a third smaller and with much less property. I didn't take out a mortgage for it because at this point I don't have to borrow money, and I don't like to.
by ThankYouJack
Sun Feb 04, 2024 11:40 am
Forum: Personal Consumer Issues
Topic: Buying a used car: what's your limit?
Replies: 65
Views: 6214

Re: Buying a used car: what's your limit?

The last used car I bought had 180k miles and it's been rock solid for 8 years. But I feel like I'm pushing my luck and may buy a newer car soon.

I'm torn on what to do for my next car. I don't really want to spend ~$50k on a new SUV yet the used car deals are tougher to come by than in the past and I don't want to buy someone else's problem.

I'm not sure if Toyotas make much sense to buy used based on recent prices I've seen.
by ThankYouJack
Sun Feb 04, 2024 11:19 am
Forum: Personal Consumer Issues
Topic: AirBnB price fluctuations
Replies: 14
Views: 2268

Re: AirBnB price fluctuations

Thanks all, I had tried different browsers including on my phone with wifi disabled. It was the same price across all of them. Seems like a common issue - https://community.withairbnb.com/t5/Ask ... /m-p/69763

muffins14 wrote: Sun Feb 04, 2024 10:58 am
ThankYouJack wrote: Thu Feb 01, 2024 9:57 am
Do you think this price fluctuation was automated or modified by the host?
What would you do differently if you knew the answer to this question?
If I knew the host was playing price shenanigans, I'd be more reluctant to book even if the price jumped back down.
by ThankYouJack
Sat Feb 03, 2024 1:04 pm
Forum: Personal Consumer Issues
Topic: Best towns with great schools, weather, outdoor activities
Replies: 74
Views: 6937

Re: Best towns with great schools, weather, outdoor activities

stoptothink wrote: Sat Feb 03, 2024 12:54 pm
ThankYouJack wrote: Sat Feb 03, 2024 12:52 pm
stoptothink wrote: Sat Feb 03, 2024 8:29 am
+1 If we (LA and SF natives) were absolutely forced to move back to California (we'd have to be forced), it's an easy SLO #1 and north SD county #2. Absolutely beautiful areas, that don't have some of the same issues that most of the rest of the state does.
What sort of issues?
Crime, traffic, etc....but sounds like it has changed since we last visited.
I just did a quick google search but looks like your home state of Utah has more crime per capita than California - https://worldpopulationreview.com/state ... e-by-state
by ThankYouJack
Sat Feb 03, 2024 12:52 pm
Forum: Personal Consumer Issues
Topic: Best towns with great schools, weather, outdoor activities
Replies: 74
Views: 6937

Re: Best towns with great schools, weather, outdoor activities

stoptothink wrote: Sat Feb 03, 2024 8:29 am
+1 If we (LA and SF natives) were absolutely forced to move back to California (we'd have to be forced), it's an easy SLO #1 and north SD county #2. Absolutely beautiful areas, that don't have some of the same issues that most of the rest of the state does.
What sort of issues?
by ThankYouJack
Sat Feb 03, 2024 8:28 am
Forum: Personal Consumer Issues
Topic: Best towns with great schools, weather, outdoor activities
Replies: 74
Views: 6937

Re: Best towns with great schools, weather, outdoor activities

I suggest you utilize sites that rate cities based on factors that you can then evaluate and determine if those factors are important to you. Getting the opinions of a few dozen people, most of whom have no basis for comparison (i.e. XXX is great, when they've never lived in YYY or ZZZ), isn't as useful IMO. There are many, many sites devoted to evaluation. Which top ones would you recommend? I did a search before starting the thread but one site didn't narrow by all the criteria I'm looking for, another site recommended a lot of places in the Northeast and Midwest and another one wanted to me to create an account- which I didn't want to do. I don't have ones I recommend. When we were considering relocating for retirement, I pulled up the ...
by ThankYouJack
Fri Feb 02, 2024 2:45 pm
Forum: Personal Consumer Issues
Topic: family movie night recommendations
Replies: 15
Views: 1913

Re: family movie night recommendations

Common Sense Media is a good site for age appropriate movies and reviews - https://www.commonsensemedia.org/
by ThankYouJack
Fri Feb 02, 2024 2:43 pm
Forum: Personal Investments
Topic: Options if we earn too much for Roth accounts?
Replies: 39
Views: 3173

Re: Options if we earn too much for Roth accounts?

[trimmed quotes] My thinking is the OP would start drawing down the taxable account in 5 years when they semi-retire. So there would be 5 years instead of decades of growth. Say the OP does $7k backdoor Roths for the next 5 years with an average return of 7%. That grows to about $43,100 a Roth. If that money was in a taxable account with a tax drag of 0.3% it would grow to about $42,700. So not a substantial difference. I see! I totally forgot about the particulars and was just thinking in generalities. Based on your calculations that is a tiny difference. It looks like the tax drag is only on dividends, but doesn't consider the capital gains which might be another $1,000 in this scenario. I completely agree that it's small dollars but mos...
by ThankYouJack
Fri Feb 02, 2024 1:49 pm
Forum: Personal Investments
Topic: Options if we earn too much for Roth accounts?
Replies: 39
Views: 3173

Re: Options if we earn too much for Roth accounts?

Bingo. What criteria did you use to decide bw investing surplus in a Roth vs a brokerage acct? If I won't pay capital gains and I don't need the money until retirement, would that make the Roth the better option? A backdoor Roth would be slightly better but in your situation I don't think it would save you much -- maybe $1,000 in taxes. Is that worth it to you? If so, look up the pro-rata rule on your IRA. The purchasing power parity would be higher with the Backdoor Roth vs the taxable. It's effectively the same (currently $7,000 with no tax deferral) going into it, but withdrawing it tax free could be a big deal when it's had multiple doublings over decades. My thinking is the OP would start drawing down the taxable account in 5 years wh...