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Re: Need advice on investing an inheritance

Okay... :|

[OT comment removed by admin LadyGeek]
by Twins Fan
Mon Apr 13, 2015 4:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need advice on investing an inheritance
Replies: 35
Views: 3098

Re: Need advice on investing an inheritance

You can disagree all you want, but facts are facts. The OPs home is worth 3 or 4 times what they owe on it now, they can pay off the mortgage to make being "underwater" all but impossible, and still have money left to put in savings after paying off the mortgage... in addition to what they...
by Twins Fan
Mon Apr 13, 2015 4:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need advice on investing an inheritance
Replies: 35
Views: 3098

Re: Need tax breaks for this year?

Here, mess around with this calculator... https://turbotax.intuit.com/tax-tools/calculators/taxcaster/# Do some trial runs as head of household and as single. That will give you an idea of what the difference will be. Running some very rough guesstimate numbers for your situation, there was about a ...
by Twins Fan
Mon Apr 13, 2015 3:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need tax breaks for this year?
Replies: 19
Views: 1100

Re: Need tax breaks for this year?

Okay, here's the deal.... taking out loans to live off of to try and lower your tax burden a little bit is bad! Plain and simple. If you need to do that to increase your 401k contributions, you're not ready to increase your 401k contributions. From the sounds of it, you should not be contributing an...
by Twins Fan
Mon Apr 13, 2015 3:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need tax breaks for this year?
Replies: 19
Views: 1100

Re: Need tax breaks for this year?

brucesprings wrote:I am sorry 2.75 % on the 7 year ARM. Why I thought of 7 year ARM was at 7 years I will be almost be 64 and probably at that point looking to move.


Gotcha, that makes more sense. If you really think you will be moving and/or selling then, a 7 year ARM might be a very reasonable choice.
by Twins Fan
Mon Apr 13, 2015 2:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need tax breaks for this year?
Replies: 19
Views: 1100

Re: Need tax breaks for this year?

I don't necessarily see anything wrong with wanting to lock in a low rate if you don't like the HELOC. Your property taxes look to be about $6k a year, so that just about fills up the standard deduction amount there. You would be able to get the tax benefit of the mortgage interest deduction. Althou...
by Twins Fan
Mon Apr 13, 2015 2:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need tax breaks for this year?
Replies: 19
Views: 1100

Re: Rental: land vs building allocation for capital improvem

What capital improvements did you make? I'm guessing being a condo we are not talking a roof, or siding, or.... I believe some improvements to a rental are depreciated separately, or on their own, and on a different schedule than the building schedule. I would have to look up the exact numbers, but ...
by Twins Fan
Mon Apr 13, 2015 1:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Rental: land vs building allocation for capital improvements
Replies: 3
Views: 170

Re: Need advice on investing an inheritance

That's nice and all, but really doesn't pertain to the OPs situation in any way. :wink:
by Twins Fan
Mon Apr 13, 2015 1:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need advice on investing an inheritance
Replies: 35
Views: 3098

Re: downpayment

If the offer has been accepted, isn't there some urgency to this? When does the down payment need to be in by? I have refinanced before a few times and none of them happened overnight. It would probably be a good while (weeks) before that was all wrapped up and funds were in your account. And, refin...
by Twins Fan
Mon Apr 13, 2015 12:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Downpayment on a house
Replies: 5
Views: 580

Re: Will selling primary residence at a loss offset Cap Gain

Went through it myself.... became an accidental landlord in 2010. I couldn't sell at the time being underwater on the home, didn't have enough to cover the difference, kept it as a rental, and no losses to claim... no nothing. If you don't want to be a landlord, owe less than it's worth, or can cove...
by Twins Fan
Mon Apr 13, 2015 12:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Will selling primary residence at a loss offset Cap Gains?
Replies: 7
Views: 536

Re: Need tax breaks for this year?

Agree with others.... basically, you're letting the tail wag the dog here. If salary is really $40k and taking out even standard deductions, your tax burden is not much anyway. You're probably in the upper end of the 15% bracket and would need to find a way to knock about $20k (estimate) off your in...
by Twins Fan
Mon Apr 13, 2015 12:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need tax breaks for this year?
Replies: 19
Views: 1100

Re: Will selling primary residence at a loss offset Cap Gain

bartio wrote:If I'm unable to sell my house and have to convert it to a rental, the loss realized before converting it to a rental is not deductible right?


Correct.

And, the depreciation number would be set off FMV at the time it's put into service as a rental not the $390k you paid for it back when.
by Twins Fan
Mon Apr 13, 2015 11:50 am
 
Forum: Personal Finance (Not Investing)
Topic: Will selling primary residence at a loss offset Cap Gains?
Replies: 7
Views: 536

Re: Need advice on investing an inheritance

Another thing to consider: My house is still underwater after all these years. If you pay off your mortgage and the market collapses again you may not be able to sell the house and get your money out for many years. Um, what?! The way most folks use the term "underwater" means owing more ...
by Twins Fan
Mon Apr 13, 2015 11:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Need advice on investing an inheritance
Replies: 35
Views: 3098

Re: International Investing

Well of course all the real growth in the world since the 70s has been in developing markets - and that's been reflected in how well EM stocks have fared .. Today the US is (arguably) overvalued, while emerging markets are sitting around their low point (with a price/book of just over 1.5) .. 70% o...
by Twins Fan
Sun Apr 12, 2015 11:38 am
 
Forum: Investing - Theory, News & General
Topic: International Investing
Replies: 65
Views: 4301

Re: Sell rental property early?

I can understand all that. The 1031 exchange can get messed up timing wise and then that's not good. I'm in the PNW/Seattle area and real estate is hot out here for the time being. I'm also an out of state landlord (accidental one in 2010), use a property management company for that home, and lookin...
by Twins Fan
Sat Apr 11, 2015 1:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Sell rental property early?
Replies: 13
Views: 855

Re: Prenup

I didn't see where 8foot7 listed any percentages. So, anyone skeptical of percentages that weren't even listed is making mountains out of mole hills and nitpicking also. :happy It's fairly obvious some are familiar with family court... and others are only skeptics. Personally, I would take the famil...
by Twins Fan
Sat Apr 11, 2015 1:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Prenup
Replies: 80
Views: 5020

Re: Sell rental property early?

Why sell and take the tax hit(s)? If you're sure you will eventually reinvest in real estate after you move, just do a 1031 exchange for the Midwest properties to the later PNW properties. Basically just a lateral move then, and not selling, paying taxes, and then buying again later with less after ...
by Twins Fan
Sat Apr 11, 2015 12:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Sell rental property early?
Replies: 13
Views: 855

Re: Prenup

I would agree with most prenups work fine. But, I would also say that most prenups simply lay out what assets each party had coming into the marriage and that those assets don't get divided up later. Probably tough to challenge any of that later on. Those that think a prenup determining a bunch of f...
by Twins Fan
Sat Apr 11, 2015 12:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Prenup
Replies: 80
Views: 5020

Re: Should I sell our rental house, reinvest profits elsewhe

Yeah, especially if you're 50/50 on being a landlord you have a nice capital gains exclusion there to take advantage of if you like beating the tax man and all. And, who doesn't, right? I'm past that on mine now, but still really leaning towards selling this year since the market there has recovered...
by Twins Fan
Fri Apr 10, 2015 7:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I sell our rental house, reinvest profits elsewhere?
Replies: 36
Views: 2015

Re: Should I sell our rental house, reinvest profits elsewhe

You are probably still within the primary residence window then and don't have to worry about capital gains. That's a good thing, and makes it a good time to sell to take advantage of that exclusion.
by Twins Fan
Fri Apr 10, 2015 7:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I sell our rental house, reinvest profits elsewhere?
Replies: 36
Views: 2015

Re: Should I sell our rental house, reinvest profits elsewhe

Also, for the $250k profit you're talking here are you meaning that's the difference between the current mortgage balance and the amount you think you could sell for, or the difference between what you paid for it (or value at time of rental service) and what you could sell for now. As far as capita...
by Twins Fan
Fri Apr 10, 2015 7:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I sell our rental house, reinvest profits elsewhere?
Replies: 36
Views: 2015

Re: Should I sell our rental house, reinvest profits elsewhe

Not sure what capital gains/recapture would be in L.A., CA., perhaps someone here knows about that, I am not versed in that. Oy vey. :oops: As the owner of a rental property, you should probably verse yourself in those areas. That's the whole point of this thread I started - to figure out what my o...
by Twins Fan
Fri Apr 10, 2015 7:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I sell our rental house, reinvest profits elsewhere?
Replies: 36
Views: 2015

Re: Should I sell our rental house, reinvest profits elsewhe

Not sure what capital gains/recapture would be in L.A., CA., perhaps someone here knows about that, I am not versed in that. Oy vey. :oops: I assumed your $250k profit from selling the rental had this loosely factored in. You will probably still have a healthy profit from a sale, but don't count on...
by Twins Fan
Fri Apr 10, 2015 6:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I sell our rental house, reinvest profits elsewhere?
Replies: 36
Views: 2015

Re: Should I sell our rental house, reinvest profits elsewhe

Depends on which financial wisdom one buys into. :happy Certainly the compounding of $250k shouldn't be ignored. But, if you took it and threw it at the primary mortgage it compounds for you that way also. You never pay the interest rate on that $250k again. That adds up in the form of a lot less to...
by Twins Fan
Fri Apr 10, 2015 5:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I sell our rental house, reinvest profits elsewhere?
Replies: 36
Views: 2015

Re: What is Sammy Savers net worth?

Yet another thread to show us how many ways net worth is figured by the masses. :happy I would also call Sammy's net worth $1m, in this scenario. Just as I don't count my income/human capital now into net worth, I would leave it out of that one also. I keep it simple... assets and liabilities in han...
by Twins Fan
Fri Apr 10, 2015 5:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: What is Sammy Savers net worth?
Replies: 41
Views: 3652

Re: Should I sell our rental house, reinvest profits elsewhe

It certainly doesn't sound like you have "no debt" with a mortgage or two out there. Or, did you mean no debt other than mortgages? Either way, it sounds like you have more of a lifestyle choice to make here. If the rental home is already kicking out $1000/month to throw at your primary mo...
by Twins Fan
Fri Apr 10, 2015 5:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I sell our rental house, reinvest profits elsewhere?
Replies: 36
Views: 2015

Re: My Portfolio is a mess. Please help me sort it out.

The good news is that you started in your 20's and have six figures before 30 years of age... nicely done!! More good news is it's an easy fix being mostly in tax advantaged accounts. I read good things about the G fund also, but know nothing about it. You may want to have that as a good part of you...
by Twins Fan
Fri Apr 10, 2015 4:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: My Portfolio is a mess. Please help me sort it out.
Replies: 20
Views: 2183

Re: One percent can mean a lot... (article)

I like to save by keeping expense ratios low also. Why isn't that mentioned? :wink: :happy
by Twins Fan
Fri Apr 10, 2015 3:05 pm
 
Forum: Investing - Theory, News & General
Topic: One percent can mean a lot... (article)
Replies: 7
Views: 1927

Re: Do you think Ric Edelman is correct, never pay down mort

Correct.... and in a better position to be taking that kind of risk than while holding a large debt and effectively doing so. I don't understand why that would put you in a better position to take that kind of risk. You don't have a large debt/obligation out there that is due while you take risk in...
by Twins Fan
Fri Apr 10, 2015 2:18 pm
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16424

Re: Do you think Ric Edelman is correct, never pay down mort

Well, maybe I shouldn't simply say correct to that. Leverage increases risk. I don't think anyone denies that. So, the risk level is not quite the same. There is more risk while investing and holding on to a mortgage.
by Twins Fan
Fri Apr 10, 2015 2:11 pm
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16424

Re: Do you think Ric Edelman is correct, never pay down mort

that bond portion could be looked at as cancelled out by the mortgage. So, effectively they are invested 100% in stocks... and taking more risk by holding the mortgage balance that is larger than the portfolio. I'm not following this line of reasoning. So if they sold the bonds and paid off the mor...
by Twins Fan
Fri Apr 10, 2015 2:06 pm
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16424

Re: Do you think Ric Edelman is correct, never pay down mort

Hence, don't call it perfectly logical if it isn't. :happy
by Twins Fan
Fri Apr 10, 2015 1:53 pm
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16424

Re: Do you think Ric Edelman is correct, never pay down mort

I would say, nowhere, noway, nohow is it "logical" to purposely hang on to a debt while borrowing out one's money to buy bonds or investing in stocks. That's quite the opposite of logical, in my opinion. Just because it's done by plenty of folks out there, myself included, doesn't make it ...
by Twins Fan
Fri Apr 10, 2015 1:48 pm
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16424

Re: Prenup

They both don't have net positive $, lots of loans, and really not much assets (maybe a car) at this time. Would a prenup be necessary/financially smart move in such a case? I am not an expert at all on the subject, and can see good and bad in a prenup depending on the circumstances. In this situat...
by Twins Fan
Fri Apr 10, 2015 1:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Prenup
Replies: 80
Views: 5020

Re: International Investing

Now if only the beloved New Zealand and Australia didn't make up only 0.2% and 5.2% respectively, and the dreaded Japan didn't make up 16.5% (largest percentage of any country) of Vanguard's total international fund. The arguments for international tend to get cancelled out by the actual numbers, in...
by Twins Fan
Fri Apr 10, 2015 12:57 pm
 
Forum: Investing - Theory, News & General
Topic: International Investing
Replies: 65
Views: 4301

Re: Retire a mortgage instead of paying it off?

Bear in mind that the mortgage interest is tax deductible. Likely a worthless benefit on a $105k mortgage balance with a 2.5% rate... depends on total deductions of course, but the couple/few thousand dollars of interest is probably not worth factoring into this situation assuming future standard d...
by Twins Fan
Thu Apr 09, 2015 12:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retire a mortgage instead of paying it off?
Replies: 8
Views: 1101

Re: Retire a mortgage instead of paying it off?

In the hypothetical situation given, yes sounds like it would make sense not to pay off the mortgage and take advantage of other opportunities. In the given situation, it could be that one has been stacking up quite a cash reserve and simple savings accounts or CDs could have higher rates than the 2...
by Twins Fan
Thu Apr 09, 2015 11:58 am
 
Forum: Personal Finance (Not Investing)
Topic: Retire a mortgage instead of paying it off?
Replies: 8
Views: 1101

Re: Need advice on investing an inheritance

The idea of paying off the mortgage and then using the monthly amount to DCA in is intriguing. I have to weigh the loss of flexible tax deductions (itemizing). Also, if the loan interest is 3.25 and one possibly can get 4-5% income from the money, isn't it better to take advantage of the float here...
by Twins Fan
Thu Apr 09, 2015 11:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Need advice on investing an inheritance
Replies: 35
Views: 3098

Re: Do you think Ric Edelman is correct, never pay down mort

That's the thing though... why did it make sense to pay off a mortgage then, but not now? When mortgage rates were 10% to 15%, savings accounts and CDs were paying out pretty good also. Now, mortgage rates are low and so are savings accounts and CDs... not to mention future expected returns are low,...
by Twins Fan
Mon Apr 06, 2015 10:40 am
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16424

Re: Do you think Ric Edelman is correct, never pay down mort

The liquidity argument has never sat well with me. I don't recall anyone in Bogleheads ever recommending to fill tax advantaged space, keep all other balances at zero, and throw every penny at the mortgage until it's gone. I think we all agree some liquidity or reserves is a good thing to have befor...
by Twins Fan
Mon Apr 06, 2015 10:13 am
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16424

Re: Rental property returns

Exactly, 30% would be a no brainer , wouldn't it ? :happy . Also, even with my conservative estimates, the cash flow is positive from the beginning once tax deduction on the mortgage is taken into account and more so if depreciation is included. Reading all the above posts, I guess my question now ...
by Twins Fan
Sun Apr 05, 2015 1:12 pm
 
Forum: Investing - Theory, News & General
Topic: Rental property returns
Replies: 39
Views: 3920

Re: Rental property returns

Well, 1800 would be the rent and rental income... one in the same is how I took it. Then it is how much of that is offset by the outgoing mortgage payment, escrow, prop. mgmt. fee, and HOA dues and maintenance averaged out. Probably almost all of the 1800 to start would be outgoing to those things e...
by Twins Fan
Sun Apr 05, 2015 12:30 pm
 
Forum: Investing - Theory, News & General
Topic: Rental property returns
Replies: 39
Views: 3920

Re: Do you think Ric Edelman is correct, never pay down mort

Put another way. If you know that over the next 30 years inflation will average 5%, and today you want to buy a house, which is in your best interest: buying a house with cash, or buying a house with a 3% mortgage, and investing the rest? Of course we don't know that, so we can't say a mortgage is ...
by Twins Fan
Sun Apr 05, 2015 11:23 am
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16424

Re: Bored -- wondering about day trading for fun

I have no gambling blood in me at all but I was thinking this might make an entertaining hobby, maybe more interesting and time-consuming than my $1 per week lottery ticket. I would beg to differ, if you play the lottery and think day trading would be a fun hobby. Sounds like you have just kept it ...
by Twins Fan
Sun Apr 05, 2015 11:00 am
 
Forum: Investing - Theory, News & General
Topic: Bored -- wondering about day trading for fun
Replies: 61
Views: 5601

Re: Paying off Boat with Heloc

I have a strict no sell policy on taxable investments. Keeps me honest. Whenever I get a raise - I increase my investments accordingly and make it feel like money is tight. Also, one job has been secure in our family also and the other less so until lately. While we can pay our bills with one incom...
by Twins Fan
Sun Apr 05, 2015 10:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Paying off Boat with Heloc
Replies: 18
Views: 1402

Re: Rental property returns

I was lucky that way also. My property manager/prop. mgmt. company have been delightful. Not a single issue that way.

I've read stories that isn't always the case though.
by Twins Fan
Fri Apr 03, 2015 6:15 pm
 
Forum: Investing - Theory, News & General
Topic: Rental property returns
Replies: 39
Views: 3920

Re: Bear market warning sign

Was it?! I didn't even know that. :oops: :eek:

Shows how much I'm paying attention! :happy

Well, things were up a little yesterday then.

Wonder when my contribution will go off of then... if I got paid today, yesterdays or Mondays closing time?
by Twins Fan
Fri Apr 03, 2015 6:13 pm
 
Forum: Investing - Theory, News & General
Topic: Bear market warning sign
Replies: 27
Views: 5175

Re: Bear market warning sign

I was thinking of telling everyone not to worry about it because this Friday/today was a contribution day to my deferred comp. As per usual on contribution day, things are looking a bit up today. I didn't want to jinx it, but maybe I should have said something earlier. No need to worry about a bear ...
by Twins Fan
Fri Apr 03, 2015 2:24 pm
 
Forum: Investing - Theory, News & General
Topic: Bear market warning sign
Replies: 27
Views: 5175

Re: In my situation, would you pay down mortgage?

I wasn't quite sure of the OP's meaning about the $180k. They talked about retirement accounts right after that, and I kind of took it to mean that $180k is the total of all accounts added up. I.E... sort of locked up in retirement accounts and not all in cash. I don't know though... OP? The $180k ...
by Twins Fan
Fri Apr 03, 2015 1:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: In my situation, would you pay down mortgage?
Replies: 31
Views: 1456

Re: In my situation, would you pay down mortgage?

I wasn't quite sure of the OP's meaning about the $180k. They talked about retirement accounts right after that, and I kind of took it to mean that $180k is the total of all accounts added up. I.E... sort of locked up in retirement accounts and not all in cash.

I don't know though... OP?
by Twins Fan
Fri Apr 03, 2015 12:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: In my situation, would you pay down mortgage?
Replies: 31
Views: 1456
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