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Re: Saving to payoff the house...need suggestions

Hahahaha...I wish!

Any ideas on how to get around 2.5-3.0% with some but minimal risk?

Thanks for your help! :sharebeer
by Woody999
Sun Dec 29, 2013 3:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

I don't see the merit in paying off the mortgage. If the interest rate were far higher, yes, but at that rate (the net is presumably lower, after tax subsidies), I don't get it. If you were trying to shied liquid assets from college financial aid, it would make sense, but you don't mention that con...
by Woody999
Sun Dec 29, 2013 3:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

There's simply no way that a building savings account at .75% nearly breaks even with drastically reducing the principal on a 15 year loan at 2.875%. Even your effective interest rate is likely over double the .75% of the savings account. This is correct but I'm looking at a 21 month period not 180...
by Woody999
Sun Dec 29, 2013 3:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

It looks like you're simply looking at totals and not the compounding part of it. Your mortgage is compound interest for the mortgage company... although we've argued the simple vs. compound thing on a mortgage many times. :D But, by prepaying you are taking years of compounding away from the mortg...
by Woody999
Sun Dec 29, 2013 3:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

Note: My comparison examples use a 2 year schedule. The assignment could easily go longer if I choose to let it. Since I want to be with my family I'm going to cut it as short as possible. Therefore, I used 2 years to compare the numbers. After 2 years I plan to go home and pay off the remaining bal...
by Woody999
Sun Dec 29, 2013 2:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

I hope my math is off...in my favor of course :wink: The details get tricky but here goes... I'm currently 3 months into the assignment so I'm using 21 months to go. I also plan to fund a Roth IRA for both my wife and I for 2014 and 2015. -The initial balance is 304K -For paying off the mortgage as ...
by Woody999
Sun Dec 29, 2013 2:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

After really sharpening my pencil I have nailed down the difference in saving it in a money market at 0.75% interest and paying off the mortgage as we go. The difference is only about $4,200 and that doesn't include tax savings of not paying as we go. Saving it at 0.75% would yield ~$1600. I don't t...
by Woody999
Sun Dec 29, 2013 12:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

So if I were to save the money until I get the payoff amount in something liquid what are my choices besides...

Guaranteed not to lose options:
Savings Acct
Money Market Acct
CD

Are there any options that are not guaranteed but have little risk?

Thanks! 8-)
by Woody999
Sun Dec 29, 2013 11:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

If my calculation approximations are correct, paying it off as we go would yield a balance ~$8k lower than saving it and paying it off in the end. Saving it at 0.75% will gain about $1300 making the true difference something like $6700. :| Now I just need to decide it having it liquid along the way ...
by Woody999
Sat Dec 28, 2013 7:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

Throw it all at the mortgage as soon as possible and keep throwing money at it as it comes!! I don't see any point in "saving" to pay off debt. :confused I doubt anything "safe" out there right now beats your mortgage interest rate by enough to make it worthwhile to save up to p...
by Woody999
Sat Dec 28, 2013 3:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

Throw it all at the mortgage as soon as possible and keep throwing money at it as it comes!! I don't see any point in "saving" to pay off debt. :confused I doubt anything "safe" out there right now beats your mortgage interest rate by enough to make it worthwhile to save up to p...
by Woody999
Sat Dec 28, 2013 3:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

Paying off a house is a good idea. Having said that, I like the idea of "paying myself first" to maximize early savings to compound over time. This paying of self first entailed maximizing Roth IRA and 401Ks, then using extra to pay down highest interest rate debt first. We already max ou...
by Woody999
Sat Dec 28, 2013 2:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

From a strictly financial standpoint, paying of the mortgage as you go will likely trump saving it and paying it off as a lump sum later. I doubt you will be able to find a safe alternative with that kind of return but without the risk of a loss in principle. But personally I would be hesitant to p...
by Woody999
Sat Dec 28, 2013 2:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Saving to payoff the house...need suggestions

Throw it all at the mortgage as soon as possible and keep throwing money at it as it comes!! I don't see any point in "saving" to pay off debt. :confused I doubt anything "safe" out there right now beats your mortgage interest rate by enough to make it worthwhile to save up to p...
by Woody999
Sat Dec 28, 2013 2:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Saving to payoff the house...need suggestions

Hello everyone! :) Work has recently put me on a new out of town assignment and my salary has gone up significantly. I have $23k to start and plan to save another $5k per month until we have enough to pay our house off. We are also selling a condo worth ~100k. The amount owed on the house is ~$300k....
by Woody999
Sat Dec 28, 2013 1:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving to payoff the house...need suggestions
Replies: 38
Views: 1640

Re: Lots of trouble with turbo tax and backdoor Roth

Like Jerome99, I still don't get how to fix this issue in Turbotax. My wife and I both bought Traditional IRAs and converted then to Roth IRAs by back dooring. TurboTax still has me paying taxes on those contributions. Not sure where I'm going wrong. :(
by Woody999
Mon Feb 11, 2013 1:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Lots of trouble with turbo tax and backdoor Roth
Replies: 18
Views: 2156

Re: Back Door Roth IRA/Distribution Code

livesoft wrote:Wasn't this discussed in this thread -> viewtopic.php?f=2&t=109062&p=1600850



Thanks...I'll take a look at that thread!
by Woody999
Sun Feb 10, 2013 8:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Back Door Roth IRA/Distribution Code
Replies: 6
Views: 892

Back Door Roth IRA/Distribution Code

In 2012 my wife and I both opened traditional IRAs with after tax money. We then back doored them into Roth IRAs due to our income levels being to high to take advantage of the traditional IRAs. The problem is I think Fidelity has the wrong distribution code on my form 1999-R. They have the code as ...
by Woody999
Sun Feb 10, 2013 7:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Back Door Roth IRA/Distribution Code
Replies: 6
Views: 892

Re: Help With Portfolio....

[OT comment removed by admin LadyGeek] I tried to follow the advice but making changes were tricky. I'm asking to make recomendations since I changed my 401K. I tried to follow Duckies advice but honeslty it got tricky so I'm not sure if I got the percentages correct. [Response to personal attack r...
by Woody999
Tue Feb 05, 2013 2:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help With Portfolio....
Replies: 14
Views: 630

Re: Help With Portfolio....

2. Any other recomendations? Thanks for your help!!! Ummm, your debts aren't going away. Your emergency fund is WOEFULLY underfunded (my opinion!) Between the two of you, you make plenty of $$$. With no kids, now is the time to maximize your retirement contributions (the ones that reduce your taxes...
by Woody999
Tue Feb 05, 2013 12:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help With Portfolio....
Replies: 14
Views: 630

Re: Help With Portfolio....

You have $400k in debt with an unstable job? If that is the case I strongly suggest you begin supplementing your emergency fund ASAP Yeah the best part is the $10k in the roths would fully cover us for 6 months. We would only have the house payment plus utilities, etc and my wife's slary would near...
by Woody999
Tue Feb 05, 2013 12:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help With Portfolio....
Replies: 14
Views: 630

Re: Help With Portfolio....

linuxuser wrote:A duplicate post by Woody from October 2012
viewtopic.php?f=1&t=104718&p=1519707


Our 401Ks have completely changed so I wanted another evaluation. Is this ok? If not, please delete this thread.
by Woody999
Tue Feb 05, 2013 12:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help With Portfolio....
Replies: 14
Views: 630

Re: Help With Portfolio....

We have been in forbearance for 3 years because we think it may not make sense to pay it off. I am not familiar with students loans. Are you saying you don't plan on repaying any of the loans? Are you able to do that? Sorry, I should have been more clear. We do plan to pay of the student loans but ...
by Woody999
Tue Feb 05, 2013 12:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help With Portfolio....
Replies: 14
Views: 630

Help With Portfolio....

Combined Income ~$250K/yr Debt: We have a $450k house and owe $320k. We are in year 2 of a 15 year mortgage at 2.875%. We have a combined $70k in student loans ($20k at 3.125% and $50k at 4.25%). We have been in forbearance for 3 years because we think it may not make sense to pay it off. We current...
by Woody999
Tue Feb 05, 2013 11:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Help With Portfolio....
Replies: 14
Views: 630

Re: VTSMX or VTI with Fidelity?

Yes, just invest in VTI. Or you can invest in a different ETF since Fidelity has no-commission ETFs: https://www.fidelity.com/etfs/ishares such as IWV. Or you can move your Roth at Fidelity to another broker such as TDAmeritrade or Vanguard or WellsTrade that all have VTI for no-commission. Or wait...
by Woody999
Sat Nov 03, 2012 10:45 am
 
Forum: Investing - Help with Personal Investments
Topic: VTSMX or VTI with Fidelity?
Replies: 4
Views: 507

VTSMX or VTI with Fidelity?

I just opened a Fidelity Roth IRA and funded it with $5000. I was going to invest in VTSMX but there's a $75 transaction fee on top of the 0.14% Management Fee and 0.18% expense ratio. :annoyed Should I just invest in VTI instead? Or does Fidelity have a fund like VTSMX that I can invest in with onl...
by Woody999
Sat Nov 03, 2012 10:36 am
 
Forum: Investing - Help with Personal Investments
Topic: VTSMX or VTI with Fidelity?
Replies: 4
Views: 507

Re: Portfolio Help Please....

Duckie wrote:
His Roth IRA -- 2.5%
2.5% Vanguard Total Stock Market

Her Roth IRA -- 2.5%
2.5% Vanguard Total Stock Market


What is the symbol for the Vanguard Total Stock Market? Thanks!
by Woody999
Wed Oct 24, 2012 9:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help Please....
Replies: 13
Views: 768

Re: Portfolio Help Please....

Duckie, I just rolled in my rollover IRA to his 401k to allow me to contribute to a traditional IRA so I could backdoor it into a Roth IRA. Now the rolled in amount went into the Spartan Ext Market Index Fund and I didn't realize it had a short term trading fee. So the bottom line is what should I ...
by Woody999
Wed Oct 24, 2012 9:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help Please....
Replies: 13
Views: 768

Re: Portfolio Help Please....

If I went to 25% bonds what would change Duckie? Thanks for the advice!
by Woody999
Wed Oct 24, 2012 8:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help Please....
Replies: 13
Views: 768

Re: Portfolio Help Please....

pingo wrote:The missing link of information is what TFs Her 401k offers.


Sorry I don't know what TF's are...
by Woody999
Wed Oct 24, 2012 7:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help Please....
Replies: 13
Views: 768

Re: Portfolio Help Please....

Duckie, I just rolled in my rollover IRA to his 401k to allow me to contribute to a traditional IRA so I could backdoor it into a Roth IRA. Now the rolled in amount went into the Spartan Ext Market Index Fund and I didn't realize it had a short term trading fee. So the bottom line is what should I d...
by Woody999
Wed Oct 24, 2012 7:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help Please....
Replies: 13
Views: 768

Portfolio Help Please....

Combined Income ~$250K/yr Debt: We have a $450k house and owe $320k. We are in year 1 of a 15 year mortgage at 2.875%. We have a combined $70k in student loans ($20k at 3.125% and $50k at 4.25%). We have been in forbearance for 3 years because we think it may not make sense to pay it off. We current...
by Woody999
Wed Oct 24, 2012 4:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help Please....
Replies: 13
Views: 768

Opening IRAs for my wife and I...which company?

My wife and I are opening IRAs for both of us ($5K each). Our 401Ks are both with Fidelity. I was thinking about opening the IRAs with Fidelity but wanted to ask you guys and gals about this first. Which is the best company to open IRAs with and why? We plan to invest in index funds. Thanks for your...
by Woody999
Wed Oct 17, 2012 9:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Opening IRAs for my wife and I...which company?
Replies: 13
Views: 870

Re: IRA (ETFs vs Index Funds)

Isn't ETF vs index fund the same thing? I'm not interest in a non index mutual fund.

Thanks!
by Woody999
Thu Oct 11, 2012 1:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA (ETFs vs Index Funds)
Replies: 10
Views: 651

Re: IRA (ETFs vs Index Funds)

It will be 5k for my wife and 5k for me.
by Woody999
Thu Oct 11, 2012 1:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA (ETFs vs Index Funds)
Replies: 10
Views: 651

Re: IRA (ETFs vs Index Funds)

Thanks! I was just using those as examples...I'm not going to do the nasdaq.

Anyone else?

Thanks guys...and gals :)
by Woody999
Thu Oct 11, 2012 12:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA (ETFs vs Index Funds)
Replies: 10
Views: 651

IRA (ETFs vs Index Funds)

I'm about to do a backdoor Roth IRA and I'm wondering which are better ETFs or Index funds? Ie. QQQ vs a nasdaq index fund?

Thanks!

:beer
by Woody999
Thu Oct 11, 2012 11:50 am
 
Forum: Investing - Help with Personal Investments
Topic: IRA (ETFs vs Index Funds)
Replies: 10
Views: 651

Highly Compensated Employee

Is this salary limit set by individual companies or the IRS?

Thanks! :beer
by Woody999
Mon Oct 08, 2012 7:21 am
 
Forum: Investing - Help with Personal Investments
Topic: Highly Compensated Employee
Replies: 5
Views: 1091

Re: Rule of Thumb...Credit Card Limit

So where can I get a high limit card with a low int rate? I don't want bonuses, miles or any of that stuff, just a high limit low int rate card. If I go to the visa website and enter everything in I'm afraid they will just mail me another low limit card. Then I will have to keep it for a while then ...
by Woody999
Tue Oct 02, 2012 2:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Rule of Thumb...Credit Card Limit
Replies: 52
Views: 3293

Re: Rule of Thumb...Credit Card Limit

The credit card was issued by our credit union when we opened our checking/savings accts and they asked me then what I wanted the maximum to be. I told them 10K. Now my wife and I have to go back in and talk to a loan officer to get the limit raised. I don't like having to explain to someone why I w...
by Woody999
Tue Oct 02, 2012 1:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Rule of Thumb...Credit Card Limit
Replies: 52
Views: 3293

Rule of Thumb...Credit Card Limit

What is a good rule of thumb on the credit card limit you should have? I wouldn't think it's a good idea for someone making $50k per year to have a limit of $40k nor should someone who makes $500k per year only have a limit of $1k, generally speaking. Notice I said generally speaking...I'm looking f...
by Woody999
Tue Oct 02, 2012 12:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Rule of Thumb...Credit Card Limit
Replies: 52
Views: 3293

Re: Auto/Homeowners Deductibles...

Thanks guys and gals :) My wife and I usually float a few thousand in the checking account and we are close to our 10k emergency fund goal. Our current car ins deductible is $500 and our current home ins deductible is $1000. We are pretty safe people in a pretty safe neighborhood with a killer secur...
by Woody999
Tue Oct 02, 2012 7:33 am
 
Forum: Personal Finance (Not Investing)
Topic: Auto/Homeowners Deductibles...
Replies: 11
Views: 856

Auto/Homeowners Deductibles...

Are there any rules of thumb on what you should pick as deductibles for auto and homeowners policies?

Thoughts?

Thanks! :mrgreen:
by Woody999
Mon Oct 01, 2012 9:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Auto/Homeowners Deductibles...
Replies: 11
Views: 856

Re: Portfolio Recommendations

I am about to roll in his rollover IRA into his 401k so I can make a 5k contribution to a taxable IRA then back door it into a Roth IRA the next day. Is this a good idea with the fund choices I have in his 401k? I see the limited fund options as the only downside. Thoughts? Note: I'm also going to m...
by Woody999
Mon Oct 01, 2012 9:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Recommendations
Replies: 11
Views: 1106

Re: Portfolio Recommendations

Does anyone disagree with my student loan pholosophy? Basically pay int only until they force me out of forbearance due to low int rates and perks, ie. deferred repayment if I lose my job? We have been in forbearance for 4 yrs...it hasn't affected my credit and has allowed us to put more in our 401k...
by Woody999
Thu Sep 27, 2012 1:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Recommendations
Replies: 11
Views: 1106

Re: Emergency Fund Strategy

I'm sorry but I am uncomfortable with how refunds and emergencies have been described in this thread. I agree with one point : if you have enough assets to trow your weight around then you can survive anything by brute force. But that is not the norm. Emergencies that I worry about are "tippin...
by Woody999
Thu Sep 27, 2012 1:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund Strategy
Replies: 18
Views: 1994

Re: Emergency Fund Strategy

I also have a credit card to use which buys me time to figure out where to get money for unplanned repairs, etc. Thanks! So if you were to have the furnace die and transmission go out on your vehicle in the same month, you would charge it to your credit card. What if this were March of 2009 and the...
by Woody999
Thu Sep 27, 2012 1:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund Strategy
Replies: 18
Views: 1994

Re: Portfolio Recommendations

Are we saving enough for retirement?
by Woody999
Thu Sep 27, 2012 8:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Recommendations
Replies: 11
Views: 1106

Re: Emergency Fund Strategy

Thanks for the reply. Those type scenarios can happen for sure. If that happened I would have about 4k in my checking acct (I always float a few thousand there) and another 10k to use from a line of credit that can instantly be transferred to my checking account. I also have a 10k limit on my credit...
by Woody999
Thu Sep 27, 2012 7:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund Strategy
Replies: 18
Views: 1994

Re: Portfolio Recommendations

I just updated the available funds to include all index funds. More funds are available but too many to list unless it's real necessary.

Thanks!
by Woody999
Wed Sep 26, 2012 8:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Recommendations
Replies: 11
Views: 1106
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