Search found 58 matches

by zmcpherson
Tue Aug 07, 2018 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Cash Gift to Sibling - Trust or...?
Replies: 7
Views: 1073

Cash Gift to Sibling - Trust or...?

So I am buying some property from my mom and one of the stipulations is that I need to give my sister $400k in cash after she passes and I am trying to figure out ahead of time the best way to do it (she's doing just fine so hopefully way down the road). Can I set up a trust fund now that stipulates the death of a parent that then releases all the money without triggering the gift tax? Would it be better just to keep it in a normal brokerage account and open up some sort of joint checking account, and then on death move the money to the checking account and give her a debit card? I was also considering just giving her and her husband $14k/year ($28k total a year) but then I was thinking that will take 15 years to disburse the funds. What's ...
by zmcpherson
Tue Jun 06, 2017 11:46 am
Forum: Personal Investments
Topic: Looking at purchasing a commercial property, how do these terms look?
Replies: 8
Views: 1220

Re: Looking at purchasing a commercial property, how do these terms look?

Soo it is my understanding that 1 unit to 4 unit is residential, and anything after that qualifies for a commercial loan: Source: https://www.trulia.com/voices/Home_Buying/How_many_units_in_a_multifamily_would_be_considere-416699 https://www.biggerpockets.com/forums/432/topics/83647-financing-5-unit-properties-how-different-than-2-4-units among others The reason why I can't pump the breaks on this is that this apartment building is essentially being passed down at about 500k under market value (though still above city assessed value). The LTV is 70% without a downpayment. Im currently reading around all that I can, and it definitely looks like I can get a fixed for buildings over 5 units - i guess that will be the first question that I will...
by zmcpherson
Tue Jun 06, 2017 9:40 am
Forum: Personal Investments
Topic: Looking at purchasing a commercial property, how do these terms look?
Replies: 8
Views: 1220

Re: Looking at purchasing a commercial property, how do these terms look?

Hey, I'm supposed to have a phone call with the lender this morning - I was hoping someone could lend a hand before then.

For example, I don't know
- Prepayment Program
- Assumable
- And why they are offering fixed/adjustable instead of just a fixed

Thanks guys
by zmcpherson
Mon Jun 05, 2017 10:25 pm
Forum: Personal Investments
Topic: Looking at purchasing a commercial property, how do these terms look?
Replies: 8
Views: 1220

Looking at purchasing a commercial property, how do these terms look?

Hey guys, I need some advice.

I currently have a few residential properties, but this is my first look at going into something commercial - so a lot of the terms/elements are still fairly new to me.

The building is a 10 unit apartment building.

Here is the quote that I received -

Image

My first question is -

- Are 30 year fixed mortgages not normal for commercial properties? Is there a reason the lending company sent me only Fixed/Adjustable options?

Secondly -

- How does the quote look, does the terms appear standard? and is there anything in particular that I should be asking about?

Thank you guys, your help is always appreciated.
by zmcpherson
Tue Jun 14, 2016 2:51 pm
Forum: Personal Investments
Topic: Where to store interim cash from a refinance loan?
Replies: 4
Views: 584

Re: Where to store interim cash from a refinance loan?

If CD's are the ticket which ones would you recommend?

Also, I should mention that I do have an Ally savings account (which I think is 1% APY)

Would anyone do a fund (etf/mutual)?

Thanks
by zmcpherson
Tue Jun 14, 2016 2:13 pm
Forum: Personal Investments
Topic: Where to store interim cash from a refinance loan?
Replies: 4
Views: 584

Where to store interim cash from a refinance loan?

I'm in the process of finalizing a cash out refinance to begin a home remodeling project.

The issue is, the project isn't slated to start for another 3-4 months and will not be completed till summer next year.

In total I will have roughly $150k in cash that I'm not quite sure what to do with.

I will need 15-20k to start, maybe another 15-20k by Christmas, but the remaining balance I will not need till next year.

So my question is, what do I do with 100k+ that isn't needed for a year?

Keeping it in a savings account seems akin to burying it but even Vangaurd's short term investment fund (VFSTX) seems risky as I wouldn't have it in long enough to make up for any loses that might occur.

So what does a Boglehead do?

Thanks Guys
by zmcpherson
Thu May 14, 2015 12:44 pm
Forum: Personal Investments
Topic: Taking out a HELOC for a rental...
Replies: 16
Views: 2156

Re: Taking out a HELOC for a rental...

Uncle Pennybags wrote:I know of owners who put four beads in a room and rent them out for eight hours, three shifts a day.
Scary thought for future generations....
by zmcpherson
Thu May 14, 2015 11:36 am
Forum: Personal Investments
Topic: Taking out a HELOC for a rental...
Replies: 16
Views: 2156

Re: Taking out a HELOC for a rental...

Thank you Moshe, that was pretty helpful. In your calculation though, would i have to also include the interest on the loan? Though it is tax deductible, I would still have to pay the total loan amount (around 125k I think). I am supposed to get more information from the bank today

@John - This is actually what I was thinking - the MIL would be on top of the garage, not the garage itself. Also, Im near downtown Seattle, so it has a very similar need for space like SF.

Image
by zmcpherson
Wed May 13, 2015 4:51 pm
Forum: Personal Investments
Topic: Taking out a HELOC for a rental...
Replies: 16
Views: 2156

Re: Taking out a HELOC for a rental...

Im guessing it would take $70-75k or so to do it "right" and about 8 months of building 70k at 6% (high end) over 20 years is $500 a month loan Assuming on the low end of $1000 for rent (and for the sake of ease) Y0 - ($2000) Y1 - $6000 Y2 - $6000 By year 2 or 3 rent should raise, but the payments should always be $500 Borrowing money at 6% isnt the best, but it isnt terrible. I doubt I would try and pay of the loan early and instead use the money for my normal retirement investing (401k/IRA). If my realestate agent is correct and I can get $1500 right out of the gate, thats a 3 to 1 return on my money. Even at a $1000, it would be a 2 to 1 - and when rent raises, the ratio will obviously raise with it. I havent heard all of the t...
by zmcpherson
Wed May 13, 2015 1:11 pm
Forum: Personal Investments
Topic: Taking out a HELOC for a rental...
Replies: 16
Views: 2156

Re: Taking out a HELOC for a rental...

@cadreamer2015 - It is, that was the first thing I checked. I just need to keep some portion of it.

Thanks
by zmcpherson
Wed May 13, 2015 12:59 pm
Forum: Personal Investments
Topic: Taking out a HELOC for a rental...
Replies: 16
Views: 2156

Re: Taking out a HELOC for a rental...

Sorry I think I was using the term HELOC incorrectly. I meant to refer to a Home Equity Loan and not a line of Credit. I was looking more into the fixed rates and not the variable rates.

The garage is not convertabile, its more of a 1930's run down shack at the moment. Honeslty, Im am not sure what its going to cost to renovate it, I was just stating worst case scenario.

Thanks
by zmcpherson
Wed May 13, 2015 12:36 pm
Forum: Personal Investments
Topic: Taking out a HELOC for a rental...
Replies: 16
Views: 2156

Taking out a HELOC for a rental...

I bought a house last year for 417k and I just had it appraised for 640k - my mortgage payment is $2,300 at 3.675% Currently I have 3 rooms rented out to friends for an addtional $1,400 plus utils a month in income, leaving me to pay the last $900. I have a detached garage that would be perfect to convert into a Mother In-Law. I asked my realestate agent and he said that in my area, this rental unit would easily go for $1,300-$1,500 a month. So my question is, would it be wise to take out a HELOC to finish the project? I was pre-approved for an $85k line of cedit at 4.X% - which over the course of 30 years that adds about $400 to my mortgage. But if I am getting $1300 on the low end to start, that seems like it would be an extra $900 in my ...
by zmcpherson
Thu Mar 12, 2015 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance...
Replies: 6
Views: 837

Re: Term Life Insurance...

Marriage is more than likely in the cards at some point or another - kids probably not though.

It's tough to speak for the next 30 years (or even the next 10). I was just checking to see if now was the best/cheapest time to jump on a plan? If $700 a year is better than getting a 20 year at age 40 for $X,XXX dollars a year?

What are some of the disability things I should be looking for?
Can I combine disability and death benefit?
Can I change coverages 10 years from now?
Is $700 a year a decent price?

Yeah, right now it would just be parents/siblings, but like I said - a marriage will probably happen and if it makes sense to plan ahead now...

I will check to see if my company offers anything, I suppose I should at least start there.
by zmcpherson
Thu Mar 12, 2015 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance...
Replies: 6
Views: 837

Re: Term Life Insurance...

I'm a software developer, so as long as I have some sight and at least one finger, I should be alright.

What are normal disability clauses that I should be looking for?
by zmcpherson
Thu Mar 12, 2015 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life Insurance...
Replies: 6
Views: 837

Term Life Insurance...

Hey guys I would like to get some advice on Term Life Insurance and I figured you guys would be the best for it. I just turned 30 and bought a house (~415k left on the mortgage). No kids, No Wife, Non-Smoker, Excellent shape. If I go, I would like to be able to leave my beneficiaries (whoever they might be) a little bit of money as well as pay off the house. So does it make sense to buy now? Should I wait till 34 (I read somewhere there was an imaginary line at 35)? Should I go 30 year (I think I saw a 35 year somewhere)? Should I go 500k or should I up it to a million since 500k will not be 500k 30 years from now and I doubt I will be in the same house? What do you guys have and what do you think you would do in my position? Thanks guys
by zmcpherson
Fri Feb 27, 2015 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Tax help with subletting....
Replies: 7
Views: 1183

Re: Tax help with subletting....

My plan was to treat it as repair - I have a letter from the contractor and the bank appraiser saying the house was unlivable (and at the very least, certainly non-rentable). That's funny about the renter's credits lol - I live in WA Not sure what my plan with the property is. Currently I am going to live in it for at least 5 years and then figure it out from there. I figure in the mean time I might as well have a couple friends help me pay the mortgage. Yeah the depreciation is going to be tricky, Schedule A depreciation 1/3rd - Schedule E depreciation 2/3rds? ... I have no idea.... And actually I am going to speak with my CPA tomorrow morning, I just wanted to get some information from a few financial savvy people before I go in (I hate g...
by zmcpherson
Fri Feb 27, 2015 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Tax help with subletting....
Replies: 7
Views: 1183

Re: Tax help with subletting....

I came across this article explaining passive loss vs active loss.

http://www.nolo.com/legal-encyclopedia/ ... osses.html

than read this from the IRS website -

http://www.irs.gov/Businesses/Small-Bus ... tal-Losses

It looks like that I can deduct $25k off of my active income (2/3rd's of 60k is 40k) for both 2014 and 2015 as long as MAGI is less than 100k.

Does anyone else read it like that?

So for the next 2 years it would seem like I should definitely claim the rental income for the write off, right?

Thanks,
by zmcpherson
Thu Feb 26, 2015 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Tax help with subletting....
Replies: 7
Views: 1183

Tax help with subletting....

Hey guys, I just became a proud homeowner in the later months of 2014 and I need some help/advice on how to move forward with my taxes. The house was a complete dump and I ended up having to put about 60k into it in 2014 and another 60k or so currently in 2015. Now knowing that, I had two friends move in this month and are now paying rent to live with me. So here are the questions: 1. Should I claim the rent for my 2015 taxes? The rent is in cash and it puts me over the Roth IRA maximum. 2. If I do claim the rent, can I write off a percentage of the home improvement as a necessity for the rental property? 3. 100k of the 120k spent so far was apart of a renovation loan. So I am paying off the 100k over the next 30 years, does that change eit...
by zmcpherson
Thu May 29, 2014 5:58 pm
Forum: US Chapters
Topic: Seattle Chapter?
Replies: 122
Views: 28151

Seattle Chapter?

Hey I noticed that the Seattle chapter has a dead email

Chapter 8 - Seattle
Contact Tyrone (boglety@yahoo.com)

Would anyone be opposed if I started a meetup group for Seattle that met once a month?

Thanks.
by zmcpherson
Mon Aug 05, 2013 3:11 pm
Forum: Personal Investments
Topic: Buying a house vs investing?
Replies: 26
Views: 4310

Re: Buying a house vs investing?

FHA is actually FAR worse then you are sharing here since the rule change: http://www.fha.com/fha_requirements_mortgage_insurance You absolutely WILL have to pay PMI regardless of downpayment. And with a 3% downpayment your PMI will be 135 basis points. That is ASTRONOMICAL. "On or after 4/1/2013 on terms > 15 years and loan amounts <=$625,500 - If the loan to value is <= 95%, the new Annual Premium is 130 basis points (bps). If the loan to value is >95%, the new Annual Premium is 135 basis points (bps)." In addition you pay upfront PMI: "Current Up-Front Mortgage Insurance Premium The UPMIP is currently at 1.75% of the base loan amount. This applies regardless of the amortization term or LTV ratio." And you need to hav...
by zmcpherson
Mon Aug 05, 2013 2:56 pm
Forum: Personal Investments
Topic: Buying a house vs investing?
Replies: 26
Views: 4310

Re: Buying a house vs investing?

With FHA you still have to pay PMI with a 3% down payment. That will increase your effective interest rate quite a bit (apprximately $300/month on 300K). You will pay this until you have paid off at least another 17% of the balance of your mortgage, which would be in month 100 assuming no large home price appreciation. This will mean you have made 100 payments of $300 extra per month because you didn't want to put an additional $51K down. In other words over 8.5 years of the loan, you have paid $30K in useless PMI (that cant be deducted if you make more than $108K married), which will create a serious drag on your returns. It doesnt matter if you can afford it or not, but going the FHA route is not a free lunch, in fact it is quite costly ...
by zmcpherson
Fri Aug 02, 2013 11:50 am
Forum: Personal Investments
Topic: Buying a house vs investing?
Replies: 26
Views: 4310

Re: Buying a house vs investing?

Im actually trying to purchase a home at the end of my lease (3rd quarter 2014), so I have been dealing with these same questions. Next year Ill be 29, first time home buyer, with 100k in salary, and here is what I am leaning towards. Im not sure if you have looked into 203b loans yet from the FHA, but they are pretty sweet (especially because you can combine them with 203k and the energy efficient mortgages, I would recommend the research on all 3 of these). They do have an insurance payment on them, but if you have 100k in investments, your investments return should far outweigh the low mortgage rate + the insurance. Also you only have to carry the insurance until the principal is less than 70-75% after 5-6 years(Im a little fuzzy on the...
by zmcpherson
Thu Aug 01, 2013 6:24 pm
Forum: Personal Investments
Topic: Portfolio help
Replies: 8
Views: 933

Re: Portfolio help

Do not pay of the car loan early, its lower than the rate of inflation, you will actually save money by carrying the loan for the entire life of the loan.

At the same time, you definitely do not need 14 months worth of expenses as a single 26 year old with no family and a new car - 6 months is usually sufficient, or if you are risk adverse go 8 month (look for a 1% savings account). Take the extra money and max out your 401k, IRA, and if your company offers it, HSA (some argue to max this out first). Between those 3 you can get 26.5k sheltered from the IRS. After that its into the taxable accounts. Good job for saving so much early btw.

As for funds, just pick the target funds for now until the accounts get bigger
by zmcpherson
Thu Aug 01, 2013 3:35 pm
Forum: Personal Investments
Topic: Buying a house vs investing?
Replies: 26
Views: 4310

Re: Buying a house vs investing?

Im actually trying to purchase a home at the end of my lease (3rd quarter 2014), so I have been dealing with these same questions. Next year Ill be 29, first time home buyer, with 100k in salary, and here is what I am leaning towards. Im not sure if you have looked into 203b loans yet from the FHA, but they are pretty sweet (especially because you can combine them with 203k and the energy efficient mortgages, I would recommend the research on all 3 of these). They do have an insurance payment on them, but if you have 100k in investments, your investments return should far outweigh the low mortgage rate + the insurance. Also you only have to carry the insurance until the principal is less than 70-75% after 5-6 years(Im a little fuzzy on the ...
by zmcpherson
Wed Jul 31, 2013 12:49 pm
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 5856

Re: Interesting Debt Theory...

Depends on how much the matching is. It may outweigh the CC interest. After running multiple models with ranging returns 5-10%, also changing the credit card financing charges (anywhere from 15-20%), 401k matching has the largest impact. It looks like it is always better to get the 401k matching before paying off any sort of debt (as long as you can eventually afford the debt I suppose). ML59 and Valuethinker also said similar things. It is after all, 100% free return on your money. Only after that does the debt make sense. If his credit doesn't suck he should be able to re-fi that car loan to around 2%. Penfed, USAA, local credit unions. Odds are his credit is shaky though. Also not a bad idea on refinancing the loan, at 2% it would be wa...
by zmcpherson
Tue Jul 30, 2013 6:36 pm
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 5856

Re: Interesting Debt Theory...

JDaniels wrote:This thinking may also cause something much more dangerous; having credit card debt as a "normal" feeling.
Nooo!! Ive always hated "The Psychology of Debt" argument (I knew someone would bring it up). With money, finances, and anything else that has concrete numbers, we have the benefit of looking at real models that have right answers. To muddle feelings into it is what creates a more dangerous environment.

At 35 years and 8% return, there is a right answer to get the best possible return. High debt, low debt, or no debt, there is no normal - a model needs to be built for every situation. If carrying higher debt is better for a 35 year plan, then carry a higher debt.

That's why Im here, to model build : )
by zmcpherson
Tue Jul 30, 2013 6:11 pm
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 5856

Re: Interesting Debt Theory...

This is really just a math problem. By paying off the high interest rate debt sooner, you pay less interest, meaning you have more money that can compound over the 35 year period. So your friend should payoff the high interest debt. Here is a link to the math. https://docs.google.com/spreadsheet/ccc?key=0AtV5VZUQ7tw9dGtSdF9jd0txV2RlcUdXemFQNzh4WVE&usp=sharing Technically this spreadsheet is not 100% accurate. You are definitely provide the most compelling argument though. For the sake of making everything equal, we would have to assume that the money saved from paying of the loans immediately were then reinvested monthly. So if its a $2400 loan over the course of 12 months, $200 a month would then be invested for 12 months. Likewise, a...
by zmcpherson
Tue Jul 30, 2013 5:17 pm
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 5856

Re: Interesting Debt Theory...

I was trying to find any articles I could to support the position, and this one touches on it: http://www.nbcnews.com/technology/when- ... 6C10111142
by zmcpherson
Tue Jul 30, 2013 5:06 pm
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 5856

Interesting Debt Theory...

A few friends and I were discussing what another friend should do with his newly acquired $15k. For the most part we agreed that he should pay off his credit cards (2k@18-20%), car (8k@8%), and then put the rest into his company 401k up to matching and then into an IRA with whatever is left over. Subtle differences here and there but for the most part, some strategy like that. Then another friend suggested he put all of it into 401k/IRA and pay off the credit card and car payment normally in their respective times. Which I thought was nuts at first, because investments will never earn 18-20% and even 8% can sometimes be hard to get. But his logic behind it is this: We are late 20's trying to save for retirement 35ish years from now. 2k @ 20...
by zmcpherson
Tue Jul 30, 2013 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Esurance?
Replies: 17
Views: 3675

Re: Esurance?

Yeah, everything is the exact same. Almost 100% more just seems like an insane price difference.
by zmcpherson
Tue Jul 30, 2013 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Esurance?
Replies: 17
Views: 3675

Esurance?

Does anyone here use Esurance for their automobile? Ive had progressive for 6ish years but I just did some price shopping and Esurance would drop my rate from $800 to $420 per 6 months for the exact same coverage.

It seems like a no brain-er, but I suppose there always has to be a catch (though Esurance was bought by Allstate so it couldnt be that bad).

I was just wondering if anyone had any experience with them.

Thanks Guys,
by zmcpherson
Fri Feb 08, 2013 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: 501(c)'s
Replies: 2
Views: 524

Re: 501(c)7

sorry I should of been more specific its a 501(c)7
by zmcpherson
Fri Feb 08, 2013 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: 501(c)'s
Replies: 2
Views: 524

501(c)'s

I have a few questions regarding a 501(c)'s, more specifically, how to structure one and how to compensate for one. 3 friends and I want to start a non profit, so 4 people total. I can't seem to figure out how to split up Executive Director, board members, and FTE's. I was reading on 501c3.org's website that they recommend less than 50% of paid employees be board members, so that would roughly leave 1ED, 2 BM, and 1 FTE. Does that sound about right? could I get away with 1ED and 3 BM's? If the ED controls the board members salary and the BM's control the executive salary, then the arm's length rule would still apply wouldn't it? (Also as a side question, everyone would be a W-2 right?). The last question, and definitely the more sticky ques...
by zmcpherson
Wed Feb 06, 2013 5:13 pm
Forum: Personal Investments
Topic: Help a 22 y/o invest an inheritance
Replies: 32
Views: 4048

Re: Help a 22 y/o invest an inheritance

+1 to Meg77

I Agree with every word of it.

89.5/10.5 would give you a perfectly fine ratio for this year, then next year you can move to 84/16 by simply adding another $5500 to the IRA account come Jan 1st.
by zmcpherson
Fri Nov 23, 2012 3:16 pm
Forum: Personal Investments
Topic: HSA right for me?
Replies: 9
Views: 1203

Re: HSA right for me?

Thanks guys I really do appreciate the help. That breakdown was exactly what I couldn't figure out.

Are there any HSA custodians that let you invest in Vanguard MF's? and what are some HSA custodians that you guys are using?
by zmcpherson
Wed Nov 21, 2012 5:38 pm
Forum: Personal Investments
Topic: HSA right for me?
Replies: 9
Views: 1203

Re: HSA right for me?

Sorry I suppose I should of listed that Premium frequency is monthly (btw, thank you guys for the quick responses)

Actually going back and doing the calculations - annually, the standard is $611.52 more, and the Premium is $1,398.28 more than the HD/HSA.

I'm still trying to get a hold of the HR person to see what the APY on the HSA is.

Say its 1% and/or say its 3%, is anyone swayed towards the HSA in my situation?
by zmcpherson
Wed Nov 21, 2012 1:12 pm
Forum: Personal Investments
Topic: HSA right for me?
Replies: 9
Views: 1203

HSA right for me?

Hey guys I need to resign up for benefits this year and my employer just started offering a HD/HSA and I want to know if in my situation it makes sense and if there is a deductible/Max that makes that HSA not worth it. Im been looking through all the board posts and it sounds like HSA's are highly favored in this community (sometimes even above 401k's), so I just wanted to double check before I picked one up and maxed it out. I am 28 yo with currently 10k in my 401k and 10k into roth ira and another 15k in cash. Before taxes I gross almost 94k/year (I just started investing/saving a year and a half ago) I havent had to go to a doctor in 3+ years and Im maybe sick once a year The break down looks like this: Plan: HD Standard Premium Deductib...
by zmcpherson
Wed Sep 05, 2012 11:39 am
Forum: Personal Finance (Not Investing)
Topic: 401k choices...
Replies: 10
Views: 1756

Re: 401k choices...

NYBoglehead wrote:75/25 would definately be more appropriate for your age, in my opinion. Especially in today's low interest rate environment for bonds. You've got ~38 years to retirement, the market will go up and down, all the while you will keep contributing and are years away from making withdrawls.
At what age would you switch to 70/30, 65/35, etc.?
by zmcpherson
Wed Sep 05, 2012 11:26 am
Forum: Personal Finance (Not Investing)
Topic: 401k choices...
Replies: 10
Views: 1756

Re: 401k choices...

Sorry about the delayed response, labor day weekend. @ ljwobker No dice on the self directed plan and this company is probably too large to start switching things around. @ Duckie Alright, I will just go 70/30 in the 401k for now, and then when I hit these target numbers I will switch them over to the second strategy. You commented on the 2025 plan before, do you think that 70/30 is too conservative for my age? Would 75/25 be better? Also, you think the bonds in the 401k are that much better then Vangaurd's, even though Vangaurd's AS bonds have an ER of .10 and the 401k's has an ER of .84? When comparing the two, what key factors are you looking at to help you decide which is better (Im just trying to become more educated on what to look fo...
by zmcpherson
Fri Aug 31, 2012 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: 401k choices...
Replies: 10
Views: 1756

Re: 401k choices...

zmcpherson, given your 401k choices I would use: (SPIAX) Invesco S&P 500 Index Fund A Shares (0.61%) (FEPAX) Fidelity Advisor Total Bond Fund A Shares (0.84%) Nice, I was right for a change. Once your 401k gets around $15K I would swap the Vanguard 2025 Fund in your Roth IRA to the following: (VEXMX) Vanguard Extended Market Index Fund Investor Shares (0.28%) <-- Roughly four parts large caps (500 Index) to one part mid/small caps (Extended Market) makes up the total US stock market. (VGTSX) Vanguard Total International Stock Index Fund Investor Shares (0.22%) and (VTSMX) Vanguard Total Stock Market Index Fund Investor Shares (0.18%) if there's room. The 2025 fund as an ER of .18, with this plan, wouldn't I be raising the ER and comple...
by zmcpherson
Fri Aug 31, 2012 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: 401k choices...
Replies: 10
Views: 1756

Re: 401k choices...

haha sorry, I suppose I assumed that you all knew the ER's by heart : P Large Cap BLKRK BASIC VALUE A - .84 INVS S&P 500 INDEX A - .61 MFS MA INV GRTH R3 - .81 Mid-Cap NUVEEN MDCP INDEX A - .93 PRU/J MID CAP GR A - 1.09 VICTORY ESTB VALUE A - 1.08 Small Cap HEARTLAND VAL PLS IV - 1.16 JANUS TRITON S - 1.19 PIM SMCP STKPLS TR A - 1.09 International ALLNZ NFJ INTL VAL A - 1.39 Specialty IVY SCI & TECH A - 1.38 PIM RE REAL RET A - 1.18 PRU/J HEALTH SCI A - 1.25 Other MFS TOTAL RETURN R3 - .77 Blended Investments FA FREEDOM 2005 T FA FREEDOM 2010 T FA FREEDOM 2015 T FA FREEDOM 2020 T FA FREEDOM 2025 T - 1.21 FA FREEDOM 2030 T - 1.23 FA FREEDOM 2035 T - 1.27 FA FREEDOM 2040 T FA FREEDOM 2045 T FA FREEDOM 2050 T FA FREEDOM 2055 T FA FREED...
by zmcpherson
Fri Aug 31, 2012 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: 401k choices...
Replies: 10
Views: 1756

401k choices...

Hello again! Everything with my IRA is going swimmingly, thank you guys again for your help in steering me in the right direction. My new question has to do with my 401k. The new company i started with is offering me a limited selection of mutual fund choices and my gut is to just follow my IRA selection with a target retirement fund (2025), but the expense ratio is 1.23 which I know is pretty high. I wanted to ask you guys if that seems alright or if I should try and make my own combination of funds to make a 70-30ish mix. A little about me, I'm 27, I have 10k into a ROTH IRA invested into vanguard's 2025 retirement plan, and I have 15k into savings. I was planning on contributing 10% of my paycheck to the the 401K (~$500-600 a month) My 4...
by zmcpherson
Mon Apr 23, 2012 4:33 pm
Forum: Personal Investments
Topic: Soooo new and sooo lost...
Replies: 76
Views: 9148

Re: Soooo new and sooo lost...

lol sorry, I didnt mean to throw up another tricky question on an already seemingly solved thread, I just had the question in fresh in my mind. Completely ignore the question above and ill discuss taxable investments with my accountant a few years down the road when I get 20k into my IRA and build up the EF (or maybe Ill come bug you guys again : P) Last, seemingly, harmless question: Does anyone take to heart the rule of thumb, 110 or 100 minus your age is the maximum stock holdings? And this is just out of curiosity and for my own edification, but when comparing the target retirement funds 2025, 2030, 2035 and 2040. 2040 would be more my target retirement year (I would be 55/56) but the stock/bond ratio is 90/10 which seems pretty risky/h...
by zmcpherson
Mon Apr 23, 2012 1:14 pm
Forum: Personal Investments
Topic: Soooo new and sooo lost...
Replies: 76
Views: 9148

Re: Soooo new and sooo lost...

I know you have to have 10k in each fund. My question was, whether it would be better to keep contributing to one of the long term retirement funds until I can afford to go straight to admiral shares in all the funds (or even just one of the funds) as the long term retirement funds have lower ER's than the normal total stock/bond market funds. And Im not delaying to look for the perfect plan, I am just trying to grasp the reasoning behind decisions so I can develop a better knowledge base.

Also it would be helpful to know if I can contribute to these funds outside of IRA contributions to get them to admiral shares quicker
by zmcpherson
Mon Apr 23, 2012 12:29 pm
Forum: Personal Investments
Topic: Soooo new and sooo lost...
Replies: 76
Views: 9148

Re: Soooo new and sooo lost...

The admiral shares have low ER's... Wouldnt it make more sense just to keep investing everything into either VASGX, VTHRX, or VTTVX at an er of .18 until I hit 30k (as the asset distribution is roughly equal), and from there allocate 10k into total stock admiral, intentional stock admiral, and total bonds admiral as for a combined ER of those funds is something crazy like .07? It seems like you would win on both ends, .18 er instead of .19ish at the beginning and then .07 to .18 at the end and you would have roughly the same assets. Also, this got me thinking. I know I can contribute 5k/year into a roth ira, but can I contribute outside money to the same fund. For a hypothetical example, I put 7k into total stocks and 3k into bonds with my ...
by zmcpherson
Sat Apr 21, 2012 7:34 pm
Forum: Personal Investments
Topic: Soooo new and sooo lost...
Replies: 76
Views: 9148

Re: Soooo new and sooo lost...

Thanks for the explanations, that cleared up my question : )

Would anyone else recommend pingo's suggesting of 100% in Vanguard Target Retirement 2030 Fund (VTHRX) or Vanguard LifeStrategy Growth Fund (VASGX)?
by zmcpherson
Fri Apr 20, 2012 5:06 pm
Forum: Personal Investments
Topic: Soooo new and sooo lost...
Replies: 76
Views: 9148

Re: Soooo new and sooo lost...

lol I would love to recap my 4 day progression with you guys... day 1: 100% JGMIX or 50% JGMIX and 50% PJP day 2: 50% VTSMX 25% JGMIX and 25% RYVYX day 3: Plan 1 - 75-80% VISGX and 20-25% VBMFX Plan 2 - VTSMX %40, VBMFX 30%, and VISGX 30% and turn it into VTSMX %55, VBMFX 30%, VISGX 15% day 4: 70% VTSMX and 30% VBMFX and turn it into 50/30/20 or a 40/40/20 total stock/international stock/bond market Its been quite the roller coaster and after going through my older posts, I can only imagine that a few of you hit your head against your desk a few times while reading my posts : P One last thought/question. After going through all the posts again I noticed ruralavalon mentioning etf's, I noticed VTI and BND are vanguards total stocks and bonds...
by zmcpherson
Fri Apr 20, 2012 12:14 pm
Forum: Personal Investments
Topic: Soooo new and sooo lost...
Replies: 76
Views: 9148

Re: Soooo new and sooo lost...

I see what you guys are saying about the names now, but to be honest, a few days ago the ticker abbreviations made more sense as I didnt know the terminology behind the abbreviations. Total stock market, small growth, small caps, international market, total bond market, etc. were all pretty lost on me and might as well have been in greek. Now that I have read up a little bit, the names are actually sticking with me a bit more, so I suppose I can/should start switching over. What about this: 70% total stock or VTSMX and 30% bond market or VBMFX for this first 10k After 15-20k,I will pick up The international stocks and maybe do a 50/30/20 or a 40/40/20 total stock/international stock/bond market. After that I do want to play something a bit ...
by zmcpherson
Fri Apr 20, 2012 1:34 am
Forum: Personal Investments
Topic: Soooo new and sooo lost...
Replies: 76
Views: 9148

Re: Soooo new and sooo lost...

haha I realize that I have a ways to go... I just appreciate the "we" attitude on this forum :wink:


Alright...

VBMFX, VTSMX, and VGISX are all 3k min to start, I currently have 10k into the account

What if I did VTSMX %40, VBMFX 30%, and VGISX 30% to start out with, save up my emergency fund while slowly turning my portfolio to VTSMX %55, VBMFX 30%, VGISX 15%? If I increase my savings just a touch I should be able to do both by the end of the year.

Am I still overvaluing VGISX and would I be shooting myself in the foot that much if I skip over VGTSX?
by zmcpherson
Thu Apr 19, 2012 5:31 pm
Forum: Personal Investments
Topic: Soooo new and sooo lost...
Replies: 76
Views: 9148

Re: Soooo new and sooo lost...

lol pingo you crack me up, I just read this
You're taking important steps, but we still have a ways to go.
: P