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Re: Do you consider mortgage payments as savings?

GAAP are for businesses, not personal use. Some similarity, perhaps, but not the same. I could deduct depreciation on my rental property, for instance, but not on my principal residence. There's nothing wrong with computing your net worth every so often, but for many of us, it's only the financial c...
by The Wizard
Tue Mar 03, 2015 6:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 232
Views: 9662

Re: Want to make $750K into $1m...Help

Education is step one here.
CDs don't often beat inflation, so a million in ten years could be similar to $700,000 today.
Is that what you want??
by The Wizard
Mon Mar 02, 2015 9:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Want to make $750K into $1m...Help
Replies: 25
Views: 2368

Re: What if you already have a couple million?

Every investor should develop an Investment Policy Statement and then follow it. Of course, an IPS is a living document meaning it changes as your goals are attained or your risk tolerance changes. Noted author Larry Swedroe has this saying "one should take risk based on need, willingness and ...
by The Wizard
Mon Mar 02, 2015 9:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: What if you already have a couple million?
Replies: 39
Views: 5115

Re: Do you consider mortgage payments as savings?

Back when I was in the Working Class, I paid close attention to my cash flow. I had some that went to tax sheltered investments. I had some that went to various housing expenses, including paying for the house itself. I had some cash flow going to CC bills for assorted purchases. And I had some goin...
by The Wizard
Mon Mar 02, 2015 9:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 232
Views: 9662

Re: Calcultoer help please

Option B, of course, is to present all your details here and we'll help answer the question...
by The Wizard
Mon Mar 02, 2015 8:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Calcultoer help please
Replies: 6
Views: 363

Re: Calcultoer help please

I played with that calculator for a few minutes and didn't like it.
Figure your monthly expenses and then figure your desired monthly income.
Then figure where it's coming from. Not too hard up to a point.
Then use firecalc to deal with stock market variations...
by The Wizard
Mon Mar 02, 2015 8:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Calcultoer help please
Replies: 6
Views: 363

Re: Contacted by Internal Revenue Services

I guess the phone scam is making its way around the country. I received 3 voicemail messages from the "Internal Revenue Service s " informing me that the message was being automated and that I am under legal persecution for tax fraud :oops: and for either myself or my appointed legal repr...
by The Wizard
Mon Mar 02, 2015 8:10 pm
 
Forum: Personal Consumer Issues
Topic: Contacted by Internal Revenue Services [Scam]
Replies: 18
Views: 1258

Re: Contacted by Internal Revenue Services

I got two calls today in my cell phone that I ignored, but googled later.
972 area code from Texas and some IRS notes in my google search.
I didn't pick up on last week's calls from Uganda either...
by The Wizard
Mon Mar 02, 2015 8:08 pm
 
Forum: Personal Consumer Issues
Topic: Contacted by Internal Revenue Services [Scam]
Replies: 18
Views: 1258

Re: Can I afford it?

Net Worth has nothing to do with affording a car.
Most new college grads have negative net worth.
And ask EmergDoc what the net worth of newly minted MDs can be...
by The Wizard
Mon Mar 02, 2015 8:00 pm
 
Forum: Personal Consumer Issues
Topic: Can I afford it?
Replies: 50
Views: 3651

Re: Do you consider mortgage payments as savings?

I've not computed my net worth for decades now. And it had no bearing on when I retired, only my financial assets (portfolio) did. In fact, if I had a house worth double what mine is, with double property taxes etc, that increased net worth would have required MORE financial assets to support in ret...
by The Wizard
Mon Mar 02, 2015 7:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 232
Views: 9662

Re: Possible to do solo financial planning while married?

Are they ASKING for help or are you volunteering it?
And the SIL, your brother's wife? Or more likely, your wife's sister? But it doesn't matter much...
by The Wizard
Mon Mar 02, 2015 7:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Possible to do solo financial planning while married?
Replies: 13
Views: 1065

Re: Master Thread for Metro Boston's Chapter (MA)

So we're thinking of two different venues for next time? Most public libraries have meeting rooms that can be reserved. Best to have a town resident set that up I'm guessing. And my name badge was recycled from last October's BH13 conference, of course. Best to have both real name and BH name on tho...
by The Wizard
Mon Mar 02, 2015 6:50 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: Master Thread for Metro Boston's Chapter (MA)
Replies: 79
Views: 5028

Re: Can I afford it?

We need to separate long term retirement savings from short to medium term consumer savings.
These consumer savings come from excess or discretionary income, "left over" after current commitments are paid.
So where do you stand along those lines?
by The Wizard
Mon Mar 02, 2015 6:21 pm
 
Forum: Personal Consumer Issues
Topic: Can I afford it?
Replies: 50
Views: 3651

Re: Do you consider mortgage payments as savings?

I haven't read all the post so someone else may have already posted something similar to this. According to Investopedia the DEFINITION of 'Savings' is: According to Keynesian economics, the amount left over when the cost of a person's consumer expenditure is subtracted from the amount of disposabl...
by The Wizard
Mon Mar 02, 2015 6:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 232
Views: 9662

Re: Do you consider mortgage payments as savings?

Anyone arguing that equity in a house is not an asset, and is thus not included in Net Worth, has never taken an Accounting class. It's a basic principle of Accountancy....founded by the Italians so long ago. No one in this thread has disputed this. The dispute concerns whether the equity in a prin...
by The Wizard
Mon Mar 02, 2015 5:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 232
Views: 9662

Re: Father in law possible elder scam victim?

These sound like "gifts", not loans, unless you can show me paperwork to the contrary.
Agree with a few others that someone with a durable POA should start handling their finances...
by The Wizard
Mon Mar 02, 2015 2:47 pm
 
Forum: Personal Consumer Issues
Topic: Father in law possible elder scam victim?
Replies: 30
Views: 1667

Re: Consumer Cellular increases Minutes, Texts, & Data

Their Android app needs fixing now, though. My text message limit went from 10,000? to unlimited, but their app shows me in the red zone with 12 of 0 texts used for the period... ------------------------------------------------------------------------------------------- I just checked my Consumer C...
by The Wizard
Mon Mar 02, 2015 2:38 pm
 
Forum: Personal Consumer Issues
Topic: Consumer Cellular increases Minutes, Texts, & Data
Replies: 14
Views: 850

Re: Do you consider mortgage payments as savings?

Not savings. Not net worth either. The calculation of net worth is going the way of "renting is throwing money away" camp. Net worth is a silly calculation with little use. MIL has a 150k house that is paid for. She has ZERO retirement savings. Her net worth is 150k and she has to borrow ...
by The Wizard
Mon Mar 02, 2015 2:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 232
Views: 9662

Re: Do you consider mortgage payments as savings?

Alex, I meant rental real estate separate from my primary residence. I could sell that rental duplex after one year and have LTCG on it if I'm lucky. So the mortgage payments on that, covered by the two renters, definitely increases my equity in that investment. But I personally do NOT apply that sa...
by The Wizard
Mon Mar 02, 2015 2:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 232
Views: 9662

Re: Consumer Cellular increases Minutes, Texts, & Data

Their Android app needs fixing now, though.
My text message limit went from 10,000? to unlimited, but their app shows me in the red zone with 12 of 0 texts used for the period...
by The Wizard
Mon Mar 02, 2015 1:59 pm
 
Forum: Personal Consumer Issues
Topic: Consumer Cellular increases Minutes, Texts, & Data
Replies: 14
Views: 850

Re: Consumer Cellular increases Minutes, Texts, & Data

I'm on my smartphone right now so I checked. My 1 GB data plan is now 1.5 GB and the next lower tier went from 300 MB to 500 MB. But I'm over 500 MB for this billing period, almost over, so will stay with my 1.5 GB plan for now. This will help save me an entire $10 time to time when I'm on extended ...
by The Wizard
Mon Mar 02, 2015 1:56 pm
 
Forum: Personal Consumer Issues
Topic: Consumer Cellular increases Minutes, Texts, & Data
Replies: 14
Views: 850

Re: Consumer Cellular increases Minutes, Texts, & Data

The changes are rather marginal so that they won't let me move a tier down and hence save money. However, they do provide me some cushion by increasing the data limit. Welcome change nonetheless. They're also having a '30 minutes free international till March' thing going on currently. I'm not sure...
by The Wizard
Mon Mar 02, 2015 1:39 pm
 
Forum: Personal Consumer Issues
Topic: Consumer Cellular increases Minutes, Texts, & Data
Replies: 14
Views: 850

Re: Do you consider mortgage payments as savings?

harikaried wrote:
toto238 wrote:let's say my house burns down to the ground and now I need a new house
Is the principal on your mortgage payment still savings if your house burned down?

Well, if you're in the Net Worth camp, sure it is.
The mortgage loan doesn't go away, even if the house does...
by The Wizard
Mon Mar 02, 2015 1:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 232
Views: 9662

Re: Do you consider mortgage payments as savings?

There are two camps here, the Net Worth camp and the Financial Portfolio camp. Answers vary depending on the camp you are in. In my camp, my principal residence is not part of my Financial Portfolio. But if I owned a rental duplex separate from my residence, that would be part of my Financial Portfo...
by The Wizard
Mon Mar 02, 2015 1:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 232
Views: 9662

Re: Reporting Dividends on the 1040

Tax tables have $50 wide "bins".
So that will cause some minor issues as well...
by The Wizard
Mon Mar 02, 2015 1:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Reporting Dividends on the 1040
Replies: 8
Views: 338

Re: Do you consider mortgage payments as savings?

Your mortgage decreases your net worth, so anything that decreases your mortgage increases your net worth. Mortgage payments are decreasing your debt, any other debt payment would be considered saving, why not this? Incorrect logic. Let's say I owe $100,000 on my mortgage loan. And let's say I have...
by The Wizard
Sun Mar 01, 2015 1:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 232
Views: 9662

Re: Do you consider mortgage payments as savings?

avenger wrote:It's not saving.

It's paying for something you already bought.

Correct.
If I get a big inheritance, for instance, and buy a house for cash, would THAT count as "savings"?
No it would not, and neither does paying down a loan or debt for any reason...
by The Wizard
Sun Mar 01, 2015 1:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 232
Views: 9662

Re: AAA card as prepaid credit card?

I would say no. Sounds more like a debit card than credit card in that case. Less protection that using a real CC, where your liability is $50 max. Plus, rumor has it that Amex is accepted at fewer places than Visa or MC. I can't speak to this from experience. And Canada is ahead of US in using chip...
by The Wizard
Sun Mar 01, 2015 12:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: AAA card as prepaid credit card?
Replies: 8
Views: 640

Re: Does a Roth IRA make sense if you live in a high COL pla

I was under the impression that you use post-tax money to fund the Roth IRA and then you can withdraw from it tax-free. So ideally you'd want to invest when you have low taxes, and withdraw it when you have higher taxes. Since I live in a high COL area with high taxes, I worried this may be less ap...
by The Wizard
Sun Mar 01, 2015 11:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Does a Roth IRA make sense if you live in a high COL place?
Replies: 85
Views: 3113

Re: airbnb tips?

It's possible to have a dormant FB profile for situations like this.
I've not logged into mine since 2013 or maybe 2012.
I'm considering AirBnB for an upcoming trip, so we'll see...
by The Wizard
Sun Mar 01, 2015 8:28 am
 
Forum: Personal Consumer Issues
Topic: airbnb tips?
Replies: 20
Views: 1577

Re: How do I learn to like sushi?

Wasabi is good pungent stuff, correct.
But there's no need to be concerned about crossing from one side of this chasm to the other...
by The Wizard
Sun Mar 01, 2015 8:22 am
 
Forum: Personal Consumer Issues
Topic: How do I learn to like sushi?
Replies: 78
Views: 4203

Re: Does a Roth IRA make sense if you live in a high COL pla

I'll be contrary and say that a Roth IRA may NOT make as much sense if one lives in a HCOL/high-income area for the first decade of their career, with a goal of relocating to a LCOL rural area after ten years of hectic work.
I think some Wall Street analysts have done this sort of thing...
by The Wizard
Sun Mar 01, 2015 7:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Does a Roth IRA make sense if you live in a high COL place?
Replies: 85
Views: 3113

Re: How do I learn to like sushi?

I like all nigiri sushi along with raw oysters on the half shell. And in Hawaii, I like poke ("po-kay").
I'm not sure there's any advantage to training other folks to eat these things. It would just leave less for me...
by The Wizard
Sat Feb 28, 2015 6:22 pm
 
Forum: Personal Consumer Issues
Topic: How do I learn to like sushi?
Replies: 78
Views: 4203

Re: Is there a way to provide for inflation ?

The answer to the OP's question is likely an optimal MIX of annuities plus a basket of funds.
(I'm not much a fan of CDs...)
by The Wizard
Sat Feb 28, 2015 10:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Is there a way to provide for inflation ?
Replies: 22
Views: 1665

Re: New Hampshire/Maine Chapter

And Maine is a big state, not really amenable to a single chapter.
But I suppose from Portland south into coastal NH might be possible...
by The Wizard
Fri Feb 27, 2015 11:13 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: New Hampshire/Maine Chapter
Replies: 3
Views: 333

Applying for Divorced Spouse Benefits online

I'll be FRA (66) in eleven months and want to get a good estimate from SS what my Divorced Spouse Benefit (DSB) will be per month. Plan is to claim my own larger benefit at age 70. I have all the certified documents to prove my birth, marriage and divorce, so I figured I'd need to go into the local ...
by The Wizard
Fri Feb 27, 2015 12:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Applying for Divorced Spouse Benefits online
Replies: 1
Views: 238

Re: Are remote starters bad for cars?

I know that on my wife's next car she'll want remote start as it's her car that sits outside. But I dread the idea because what she does in the winter is go out to start her car, and come back in. Sometimes she gets sidetracked and might not go back out for 15 minutes, but at least she has her coat...
by The Wizard
Fri Feb 27, 2015 12:17 pm
 
Forum: Personal Consumer Issues
Topic: Are remote starters bad for cars?
Replies: 41
Views: 2506

Re: Are remote starters bad for cars?

IANAL, however just be aware in some states it may be illegal to use one. Ohio: No person driving or in charge of a motor vehicle shall permit it to stand unattended without first stopping the engine , locking the ignition, removing the key from the ignition. Colorado: No person driving or in charg...
by The Wizard
Fri Feb 27, 2015 10:14 am
 
Forum: Personal Consumer Issues
Topic: Are remote starters bad for cars?
Replies: 41
Views: 2506

Re: Are remote starters bad for cars?

If you are doing this, I'm hoping all of you are doing it with your car outside, or the garage door open, and the windows open so as not to have carbon monoxide build up. It obviously builds up in the garage--and you're walk into a room full of it. If you do that every morning it's not good for you...
by The Wizard
Fri Feb 27, 2015 10:12 am
 
Forum: Personal Consumer Issues
Topic: Are remote starters bad for cars?
Replies: 41
Views: 2506

Re: Roth contributions as long as you can?

That's what I'm doing also, with my small part time earned income...
by The Wizard
Fri Feb 27, 2015 8:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Roth contributions as long as you can?
Replies: 19
Views: 2125

Re: PBS NewsHour segment on Social Security

There was an earlier thread on the book itself. They've got to do media outlets like this to promote the book and get sales up.

I tend to agree on break even analysis.
But, for single males in particular, the actuarial lifetime results from claiming at 62 vs 70 could be quite similar...
by The Wizard
Fri Feb 27, 2015 8:22 am
 
Forum: Personal Finance (Not Investing)
Topic: PBS NewsHour segment on Social Security
Replies: 26
Views: 3270

Re: Are remote starters bad for cars?

A lot of vehicles have factory installed remote start available now.
Manufacturers don't generally offer options which will damage their vehicles.
I seldom use it myself. Never in the summer since not too bad in New England.
Sometimes in the winter, if single numbers or worse outside...
by The Wizard
Fri Feb 27, 2015 8:13 am
 
Forum: Personal Consumer Issues
Topic: Are remote starters bad for cars?
Replies: 41
Views: 2506

Re: i am retired and want to live in Hawaii

veggivet wrote:I took it to mean that those members have died at some point during the last four years... :(

We can't generally say that with certainty, without real name knowledge.
But things happen as time goes on, yes...
by The Wizard
Thu Feb 26, 2015 8:44 pm
 
Forum: Personal Consumer Issues
Topic: i am retired and want to live in Hawaii
Replies: 61
Views: 9163

Re: Safety of Vanguard online access

I've never understood why there is a recommendation to change a password ever so often. If someone is trying to guess your password (whether a person or another computer/network) is there some sense that they're getting close to figuring it out and changing it thwarts them? I'm pretty sure the answ...
by The Wizard
Thu Feb 26, 2015 8:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Safety of Vanguard online access
Replies: 28
Views: 1692

Re: Capital gains and dividends real income ?

To the OP: a lot of blue chip companies issue dividends which are steady or even increasing from year to year.
If dividends subtracted from share price without restoration, share price would eventually approach zero.
It generally doesn't.
So find a different rule of thumb to lean on...
by The Wizard
Thu Feb 26, 2015 8:35 pm
 
Forum: Investing - Theory, News & General
Topic: Capital gains and dividends real income ?
Replies: 12
Views: 699

Re: New and over 40

I'm seeing too many his and hers in some of the OP's posts.
And her husband has both a Camaro and a Corvette?
There's gunna have to be a unification of goals here or things won't be ending well...
by The Wizard
Thu Feb 26, 2015 3:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: New and over 40
Replies: 27
Views: 2063

Re: IRS Called and Asked for Personal Information

I think Bogleheads is now discouraging threads about common scams such as this.
Perhaps one of the mods will weigh in on this...
by The Wizard
Thu Feb 26, 2015 3:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS Called and Asked for Personal Information
Replies: 16
Views: 1646

Re: 2015 Estimated tax after owing tax in 2014

Alternately, do what lump sum Roth IRA converters sometimes do. Send in a single quarterly estimated payment for the quarter that the big income spike happens. Example: you're in the 25% bracket with normal income only. You get $50,000 additional taxable income from somewhere on December 10th. Just ...
by The Wizard
Thu Feb 26, 2015 1:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: 2015 Estimated tax after owing tax in 2014
Replies: 8
Views: 527

Re: 2015 Estimated tax after owing tax in 2014

I would say YES, do estimated payments if you plan another big stock sale in 2015. This because your 110% safe harbor amount is higher this year due to last year's big jump. Another plan, if it makes sense, is to do large stock sales in even numbered years only, letting your income recede to "n...
by The Wizard
Thu Feb 26, 2015 12:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: 2015 Estimated tax after owing tax in 2014
Replies: 8
Views: 527

Re: Is it actually impossible to time market crashes?

A key point is not to be overweight in stocks if you think there's a crash coming soon. This is not an all or nothing approach. In my case, I've defined an acceptable stock fund percentage range between 45% and 55% of my total portfolio. I'm presently around 53% stocks. If I got edgy about high valu...
by The Wizard
Thu Feb 26, 2015 12:54 pm
 
Forum: Investing - Theory, News & General
Topic: Is it actually impossible to time market crashes?
Replies: 56
Views: 3003
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