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Re: Converting a personal property to a rental property

I own a property that I have not lived in since 2013. I would assume that you know that you are right about at the cutoff for losing the homeowners capital gains tax exclusion. If you have significant gains on the home price then you might want to sell it ASAP before that is lost. If you have not c...
by Watty
Sat Feb 28, 2015 11:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Converting a personal property to a rental property
Replies: 4
Views: 246

Re: advice on personal finance & mortgage

Being insecure in your job makes it a poor time to buy a vacation property and about half your net worth is already in real estate. I would pass on that and just rent places when you want to go on vacation. You mentioned moving from the Bay Area was not an option. Was that for your job, or something...
by Watty
Sat Feb 28, 2015 11:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: advice on personal finance & mortgage
Replies: 10
Views: 635

Re: How to find a spouse who wants financial independence

I met my wife in a ski club during ski lessons. There were local ski resorts so it was relatively affordable, not a group that did expensive ski trips. I think that type of group tends to attract people that are financially secure enough to have outside interests and many of the people did other aff...
by Watty
Sat Feb 28, 2015 8:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to find a spouse who wants financial independence
Replies: 48
Views: 3056

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

It really depends on your tax bracket. To me it would take a very compelling case to make Roth contributions instead of deductible contribution above the 25% federal tax bracket. In the 25% federal tax bracket my personal feeling is that the deductible contributions are generally better. Single peop...
by Watty
Sat Feb 28, 2015 8:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Does a Roth IRA make sense if you live in a high COL place?
Replies: 43
Views: 1280

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

There is a wiki you should read. http://www.bogleheads.org/wiki/Traditional_versus_Roth Like the kids in the mythical town of Lake Woebegone who are all above average people sometimes like to think that they will be so rich in retirement that they will be in a higher tax bracket. When I am retired I...
by Watty
Sat Feb 28, 2015 5:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Does a Roth IRA make sense if you live in a high COL place?
Replies: 43
Views: 1280

Re: Getting Australian Dollars

This is about Europe but most of the info would be the same. https://www.ricksteves.com/travel-tips/money/cash-tips Be sure to call your bank and credit card companies to let them know your travel plans or the cards may be declined. I have accounts at several different places so I will take multiple...
by Watty
Sat Feb 28, 2015 5:38 pm
 
Forum: Personal Consumer Issues
Topic: Getting Australian Dollars
Replies: 13
Views: 576

Re: Wife doesn't want to retire - I do

My brother worked in computers and once he got to be be in his late 50's he was somewhat burnt out at his job and found that getting a new job at anywhere near the same level would be next to impossible and the types of jobs he could get would be high stress and low paying. He could afford to retire...
by Watty
Sat Feb 28, 2015 11:44 am
 
Forum: Personal Consumer Issues
Topic: Wife doesn't want to retire - I do
Replies: 34
Views: 2303

Re: Do you consider mortgage payments as savings?

It really depends on what you are using the "savings" number for. The prior post about just considering any payments above your mortgage payments as savings has a problem since two people with identical houses might have a 15 and 30 year mortgage. If the person with the 30 year mortgage pa...
by Watty
Sat Feb 28, 2015 11:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 72
Views: 2814

Re: Thoughts on adding Vanguard STAR to my portfolio

As I remember it the STAR fund used to be the fund that had a lot lower minimum investment than all the other Vanguard funds so that people that were just starting out have an account at Vanguard. The downside was that it had higher fees and some other less favorable terms. About five years ago (may...
by Watty
Fri Feb 27, 2015 11:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Thoughts on adding Vanguard STAR to my portfolio
Replies: 5
Views: 677

Re: Contribute to deductible IRA or not

Here is the relevant Wiki article to read. If 35% is your current total tax bracket, I think it makes sense to contribute to a Traditional IRA (tIRA). I think it's unlikely that your retirement tax bracket would be as high or higher than 35%. I meant to say I'm in a combined federal and state 35% t...
by Watty
Fri Feb 27, 2015 11:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Contribute to deductible IRA or not
Replies: 8
Views: 547

Re: Which car should I sell?

Car #2/ 2000 Mazda Protege ES Automatic 154,000 miles, good condition, had major engine work done and now runs great. A few dents here and there, has 4 new tires, check engine light is on (probably catalytic converter bad but doesn't affect car's performance. A.C. not working. Sliding sun roof. Kel...
by Watty
Fri Feb 27, 2015 9:51 pm
 
Forum: Personal Consumer Issues
Topic: Which car should I sell?
Replies: 14
Views: 610

Re: Favorite Vacation/Trip

Hi BHs, Some friends and I are planning a trip this summer and I'm looking for Boglehead ideas! We're all under 30 and would like to keep it under $2500 (or less) for a week long trip (that includes flights, hotel, etc.) Most of us are located up and down the East Coast (mostly in DC). Pretty much ...
by Watty
Fri Feb 27, 2015 9:02 pm
 
Forum: Personal Consumer Issues
Topic: Favorite Vacation/Trip
Replies: 24
Views: 1920

Re: Is Vanguard understaffed?

The Northeast has been getting slammed with snow this year which may have impacted the ability for their staff to get into the office or to work late to catch up. If they were already maxed out with the tax season anyway even a small staffing issue could cause a backlog.
by Watty
Fri Feb 27, 2015 4:28 pm
 
Forum: Personal Consumer Issues
Topic: Is Vanguard understaffed?
Replies: 37
Views: 3047

Re: Safe Withdrawal Rate as it relates to Size of Portfolio

Does the size of the portfolio influence the chosen withdrawal strategy? For example, do safe withdrawals tend to change up or down if the portfolio is 10mil instead of 1mil? The math is the same but what changes is the definition and consequences of failure. Someone with a million dollar portfolio...
by Watty
Fri Feb 27, 2015 4:15 pm
 
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate as it relates to Size of Portfolio
Replies: 25
Views: 2442

Re: Combo Laundry Room/Food Pantry

We're planning a new home & DW wants to have a combination laundry room & food pantry with a long table she could use to fold laundry & stock the pantry. Holding aside that DW wants this & a happy wife is a happy life, is this a good idea? That is what we had in our old house and we...
by Watty
Fri Feb 27, 2015 3:46 pm
 
Forum: Personal Consumer Issues
Topic: Combo Laundry Room/Food Pantry
Replies: 13
Views: 759

Re: Do I have enough to retire at age 50?

We both make about $95K From what you have said it sound like you have a net worth of less than a million dollars which is not real high when you have almost $200K in income a year when you include your rental income. If that is because of high expenses that could be a problem. If you do want to tr...
by Watty
Fri Feb 27, 2015 3:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I have enough to retire at age 50?
Replies: 28
Views: 3539

Re: How to hedge a 5/5 ARM?

Something like a 5 year CD could have a significant penalty to access the money early so putting the money into something like that would defeat the goal of having better cash flow if you were laid off or something. You only have 12 years left of your current mortgage and if you kept making the same...
by Watty
Fri Feb 27, 2015 1:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to hedge a 5/5 ARM?
Replies: 20
Views: 1191

Re: Are remote starters bad for cars?

One concern I would have would be that an after-market remote starter would cause problems with a car warrantee. It would be easy for a dealer to claim that any electric problems were caused by it being improperly installed. I don't know how it would work with some car security systems. With my Hond...
by Watty
Fri Feb 27, 2015 12:09 pm
 
Forum: Personal Consumer Issues
Topic: Are remote starters bad for cars?
Replies: 41
Views: 2353

Re: Can I afford my dream house?

After the posts it makes more sense now but you were way over analyzing it. I think there are just two main numbers to look at. 1) How much would you need to withdraw from retirement accounts (IRA, ROTH, etc)? 2) What percent of your monthly net income will be required to pay for your mortgage, prop...
by Watty
Fri Feb 27, 2015 10:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Can I afford my dream house?
Replies: 49
Views: 3750

Re: Do I have enough to retire at age 50?

In addition, the property values here continue to go up and it provides diversity with our taxable account. I don't think so. Depending on what the house you are living in is worth, having two home means that you may have over 100% of your net worth in real estate that is likely in the same city. T...
by Watty
Fri Feb 27, 2015 6:34 am
 
Forum: Personal Finance (Not Investing)
Topic: Do I have enough to retire at age 50?
Replies: 28
Views: 3539

Re: Do I have enough to retire at age 50?

We both make about $95K From what you have said it sound like you have a net worth of less than a million dollars which is not real high when you have almost $200K in income a year when you include your rental income. If that is because of high expenses that could be a problem. If you do want to tr...
by Watty
Thu Feb 26, 2015 10:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I have enough to retire at age 50?
Replies: 28
Views: 3539

Re: Raise was only 2.44%?

Is a raise of 2.44% considered acceptable when it comes to keeping up with investments / retirement? I worry that this is merely keeping up with inflation (or even slightly behind it) and not actually improving my purchasing power. I also had a strong performance year as well (management very pleas...
by Watty
Thu Feb 26, 2015 8:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Raise was only 2.44%?
Replies: 49
Views: 4483

Re: Am I ready to buy a home?

with a kid on the way I would wait until after the kid is born. Even if there are minor complications that could make daycare impracticable for a so you might be down to one income for a while. Even then I would be cautious about buying such an expensive house without a 20% down payment and that wo...
by Watty
Thu Feb 26, 2015 8:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Am I ready to buy a home?
Replies: 7
Views: 726

Re: Immediate Pension Benefit Offering

It would be good to check to see if you have the option of talking half the lump sum and half one of the pensions. Another thing to check on is what happens to the funds if you don't take the lump sum and you die. With the lump sum your estate would inherit it but with the other options if you die w...
by Watty
Thu Feb 26, 2015 7:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Immediate Pension Benefit Offering
Replies: 8
Views: 1014

Re: Can I afford my dream house?

I couldn't really understand your numbers but if you are having to take almost $400K out of your retirement accounts then I don't see how you can afford it. It sounds like most of your net worth would be in the $1.7 million dollar house which concern me since a 20% decline in home prices would have ...
by Watty
Thu Feb 26, 2015 6:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can I afford my dream house?
Replies: 49
Views: 3750

Re: Have I made a terrible mistake? - whole life

smkrn wrote:Should I consider pulling the plug, eating the $9k loss,.....


Your actual loss would be a bit less than that. If you had a $750K term policy instead for the last year you would have paid a premium for that so you would have to net out that cost.
by Watty
Wed Feb 25, 2015 11:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 34
Views: 4042

Re: Convincing older relative to open online savings account

Personally, I can't think of any downsides.


There isn't really any upside for them either since it would make no positive difference in their lives.

Having them start a five year ladder of CD's would help get a bit more interest and might be a comfortable choice for them.
by Watty
Wed Feb 25, 2015 7:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Convincing older relative to open online savings account
Replies: 34
Views: 1438

Re: Should I shut off water in a vacant home in winter?

It would be good to check with the home insurance company to see if there are any requirements in the policy for keeping the heat on. There are likely restrictions on leaving the house vacant too that would need to be covered but a separate rider. If you do decide to turn the water off you can have ...
by Watty
Wed Feb 25, 2015 4:13 pm
 
Forum: Personal Consumer Issues
Topic: Should I shut off water in a vacant home in winter?
Replies: 15
Views: 1358

Re: Retirement planning - Too soon for TIPS?

* Starting this year, I could purchase 20-30K in I Bonds, and continue that for the next 10 years. Since I Bonds can only be bought in a taxable account they are pretty much guaranteed to lose purchasing power when you eventually cash them and are taxed on the inflation gain. They sometimes have th...
by Watty
Wed Feb 25, 2015 3:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement planning - Too soon for TIPS?
Replies: 21
Views: 1734

Re: Ideas of where to relocate

There is a lot to be said for college town so in a general way I would put them on your list. http://en.wikipedia.org/wiki/List_of_college_towns#College_towns_in_the_United_States Typically they are not too large and the local economy tends to be better than average so a spouse may have a better cha...
by Watty
Wed Feb 25, 2015 3:17 pm
 
Forum: Personal Consumer Issues
Topic: Ideas of where to relocate
Replies: 32
Views: 2434

Re: Buying a House - SF Bay Area

It's always a sucker punch to get another year of 10% rent increase, which sends me off thinking about what I should be doing and what my plan should be. In all the other aspects of my financial and life planning, I feel like I have things under control, but this one is anything but. Half of me say...
by Watty
Wed Feb 25, 2015 5:58 am
 
Forum: Personal Consumer Issues
Topic: Buying a House - SF Bay Area [bayareabuyer]
Replies: 25
Views: 2295

Re: Reinvesting RMD proceeds

See this on how he should split up a three fund portfolio between his taxable account and the IRA. Most likely he would want to own the stocks in his taxable account. http://www.bogleheads.org/wiki/Principles_of_tax-efficient_fund_placement If he never needs the money in the taxable account then it ...
by Watty
Tue Feb 24, 2015 10:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reinvesting RMD proceeds
Replies: 4
Views: 440

Re: Help with Mom's 401K Allocation

Sales6280 wrote:Any reason to keep Pimco Total Return vs just using SSGA Passive bond for all 40% of bonds?

- PIMCO TOTAL RETURN PORT. INSTL (.46%) 20%



Not with the higher ER.
by Watty
Tue Feb 24, 2015 10:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Mom's 401K Allocation
Replies: 7
Views: 420

Re: Help with Mom's 401K Allocation

Thanks for our comments. I like the idea of the folowing allocation. Simple and low expenses. - SSGA INTERNATIONAL EAFE IND TR (.18%) 15% - SSGA PASSIVE BOND MRKT INDX TR (.12%) 35% - SSGA S&P 500 INDEX (.10%) 50% You should see this wiki if you have not already seen it. http://www.bogleheads.o...
by Watty
Tue Feb 24, 2015 10:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Mom's 401K Allocation
Replies: 7
Views: 420

Re: Buying a home in SF Bay Area

Until you're absolutely certain that you want to stay there long term, do not buy a house. Out of all areas, SF is one of those that just screams "bubble" - if/when the tech sector slows down, you could expect a correction in the housing prices, which would make it difficult for you to se...
by Watty
Tue Feb 24, 2015 7:26 pm
 
Forum: Personal Consumer Issues
Topic: Buying a home in SF Bay Area [Dumbo]
Replies: 79
Views: 4087

Re: Buying a House - SF Bay Area

.....or would you recommend something else? Work there a few more years then cash your winning lottery ticket and move to someplace that is more affordable. Years ago when I was about your age I lived in Sunnyvale and I moved up to Portland Oregon, which was inexpensive then, when I was ready to bu...
by Watty
Tue Feb 24, 2015 5:01 pm
 
Forum: Personal Consumer Issues
Topic: Buying a House - SF Bay Area [bayareabuyer]
Replies: 25
Views: 2295

Re: What age do you guys plan to retire?

It is my impression that there are some people on this thread, who are very early in their work and personal lives, that vastly underestimate the expense of living over time and overestimate the likely returns on investments. Again, just my opinion.... You're probably right, but this forum is full ...
by Watty
Tue Feb 24, 2015 9:17 am
 
Forum: Personal Finance (Not Investing)
Topic: What age do you guys plan to retire?
Replies: 143
Views: 8522

Re: Investment question for a friend

I will discuss with him. I did not know about an annuity having higher tax rates. So, he has to "cash" out of it and then move the money to Vanguard or can he have the taxes taken out and then have the electronic process of moving the money to Vanguard? Unless I missed something then with...
by Watty
Mon Feb 23, 2015 8:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investment question for a friend
Replies: 9
Views: 708

Re: Advice for how to help a grieving FIL with daily finance

For now, we don't have the heart to insist on simple things such as getting account numbers, or perhaps log-ins and passwords on his accounts. Sharing the password us usually not allowed and could cause all sorts of problems if the account is compromised. I would advise against that. If you have a ...
by Watty
Mon Feb 23, 2015 7:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Advice for how to help a grieving FIL with daily finances
Replies: 13
Views: 1340

Re: Advice for how to help a grieving FIL with daily finance

For now, we don't have the heart to insist on simple things such as getting account numbers, or perhaps log-ins and passwords on his accounts. Sharing the password us usually not allowed and could cause all sorts of problems if the account is compromised. I would advice against that. If you have a ...
by Watty
Mon Feb 23, 2015 7:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Advice for how to help a grieving FIL with daily finances
Replies: 13
Views: 1340

Re: Recapturing gains due to TLH at the 0% level

Am I missing something? Doing Roth conversions instead might be a better use of the low tax brackets but that depends on the rest of your situation. Be sure to look at the numbers for this as if one of you survives the other and ends up in the higher single tax brackets. Your state taxes might be d...
by Watty
Mon Feb 23, 2015 6:32 pm
 
Forum: Investing - Theory, News & General
Topic: Recapturing gains due to TLH at the 0% level
Replies: 16
Views: 855

Re: Investment question for a friend

Near as I can tell, he's being screwed on the house payment. He should be able to save $200 a month, according to my quick look at a couple of online calculators. ($65,000 for 20 years is about $430 per month.) For the annuity, you should post all the details here for experts (who do not include me...
by Watty
Sun Feb 22, 2015 9:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investment question for a friend
Replies: 9
Views: 708

Re: Refinance Question

If you really want to keep it as a rental then the 15 year mortgage would make it a lot harder to get positive cash flow. Keeping it as a rental though would not make much sense unless it drops in price a lot. The problem is that if it just keeps up with moderate inflation then you will have signifi...
by Watty
Sun Feb 22, 2015 8:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Refinance Question
Replies: 15
Views: 1195

Re: Company just announced an ESPP

ESPP is free money and enforced savings. If the money is not in your checking account, you're not spending it. Buying at a 15% discount from the discounted price at the beginning of the period (in periods when prices are rising) has resulted in substantial gains. +1 In looking at it you also need t...
by Watty
Sat Feb 21, 2015 5:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Company just announced an ESPP
Replies: 8
Views: 562

Re: Creating Net Worth Line Graph

If you Google something like "Excel 2010 graph video" you should be able to find short videos that will show you how to do it. It isn't elegant but if you make another spread sheet with a row or column for each month or quarter since 1998 and copy your numbers into that where you have them...
by Watty
Sat Feb 21, 2015 12:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Creating Net Worth Line Graph
Replies: 21
Views: 2209

Re: Giving guests free WiFI @ short-term rental = get sued?

BTW, don't know if it was mentioned or not but any concern about being sued for the WiFi connection is more likely a concern about the person not being able to get a usable connection than for abusing it for criminal activity. The problem is that if you advertise free WiFi and it is not working then...
by Watty
Sat Feb 21, 2015 12:37 pm
 
Forum: Personal Consumer Issues
Topic: Giving guests free WiFI @ short-term rental = get sued?
Replies: 32
Views: 3656

Re: Giving guests free WiFI @ short-term rental = get sued?

I don't have a good answer but making WiFi free or not is a "Tragedy of the commons" type of situation where free WiFi will be overused by some people. http://en.wikipedia.org/wiki/Tragedy_of_the_commons When I use WiFi at a hotel it is typically for things like checking email, browsing th...
by Watty
Sat Feb 21, 2015 12:27 pm
 
Forum: Personal Consumer Issues
Topic: Giving guests free WiFI @ short-term rental = get sued?
Replies: 32
Views: 3656

Re: Are banks required to deposit third party endorsed check

Call the insurance company and find out how to return the check and get a new one issued to you.
by Watty
Fri Feb 20, 2015 11:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Are banks required to deposit third party endorsed checks?
Replies: 52
Views: 2595

Re: Renting in retirement permanently. (Georgia?)

I'm in Atlanta and I would agree with renting a year before you buy to find out if you like it here and to learn about the local housing markets. My impression is that Atlanta house prices vary a lot more by location than in some other cities because with the bad traffic the commute makes a huge dif...
by Watty
Fri Feb 20, 2015 2:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Renting in retirement permanently. (Georgia?)
Replies: 9
Views: 966

Re: A House Deal: To Move Or Not To Move

A few things, Your "free rent" would likely be taxable for income taxes and maybe social security. If you got hurt during the renovation then there would be workman's comp issues. You would need to have lawyers draw up a contract on how this would work. Any of the people involved could die...
by Watty
Fri Feb 20, 2015 1:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: A House Deal: To Move Or Not To Move
Replies: 14
Views: 1008
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