Search found 128 matches

by jimbojones
Fri Jan 17, 2014 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: student loan interest
Replies: 19
Views: 2049

Re: student loan interest

When you're paying down the capitalized interest, does that count as an interest payment? Capitalized interest LOOKS like principal, but I'm wondering how it's treated for tax purposes.
by jimbojones
Wed Jan 15, 2014 10:14 am
Forum: Investing - Theory, News & General
Topic: Harder to stay the course with Bull than with Bear
Replies: 18
Views: 2157

Re: Harder to stay the course with Bull than with Bear

During a bull market, your 60/40 portfolio is lagging.

During a bear market, your 60/40 portfolio is leading.

That's what drives my emotional reaction.
by jimbojones
Tue Jan 14, 2014 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: High Earners - What's Your Profession?
Replies: 1217
Views: 224014

Re: High Earners - What's Your Profession?

CPA - 200K. I only saw one other one so far... so as a group maybe we're shy or aren't Bogleheads. I'll bet on shy. Def shy. CPA here also. Earn above $100K but would like to earn $200K. Any advice and/or tips? Thanks so much!!! Do you work in private or public accounting? Just curious at what point a CPA in public accounting could expect to break $100k. From what I have seen and read and looking at where I am now it seems like it won't be until I make senior manager, which could be 8-10 years. I should get my license this year. Taking my last section tomorrow, BEC. This will be my second year. Making just over half of the $100k mark. Feeling like I should have gotten into finance, engineering, or law with all these young 20's pulling over...
by jimbojones
Sun Jan 12, 2014 11:47 am
Forum: Personal Finance (Not Investing)
Topic: High Earners - What's Your Profession?
Replies: 1217
Views: 224014

Re: High Earners - What's Your Profession?

A top MBA degree will almost guarantee that salary (plus six figures worth of student loan debt).
by jimbojones
Thu Jan 02, 2014 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: any way to reduce 6.8% interest student loans?
Replies: 23
Views: 2918

Re: any way to reduce 6.8% interest student loans?

rallycobra wrote:You can float some of it with 0% credit cards. Most will disagree, but it works for me.
How much ($ or %) do you float? I'm intrigued by the idea, but worried about racking up the CC debt and then being unable to refinance with future 0% CCs.
by jimbojones
Thu Jan 02, 2014 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: any way to reduce 6.8% interest student loans?
Replies: 23
Views: 2918

Re: any way to reduce 6.8% interest student loans?

sofi.com

Fixed rates 4.99 - 6.75%
Variable rates 2.92 - 4.92% (capped at 8.95%)

I refinanced my 7.9% GradPLUS loans with them. It was an easy process.
by jimbojones
Tue Nov 26, 2013 10:43 pm
Forum: Investing - Theory, News & General
Topic: Using Credit Card to Invest
Replies: 32
Views: 4292

Re: Using Credit Card to Invest

Luke Duke wrote:I did it once. I had a 0% for 6 months offer on a CC. I bought a block of 100 tickets to a NASCAR race for $105/ea. I sold them for ~$150/ea. Every time I sold a ticket I made a CC payment, so the last 30 tickets were pure profit. I used the money to buy an engagement ring. I think that it cost me about $100 for the 1% balance transfer fee. I've still never been to a NASCAR race.
Let's not pretend that was a risk-free investment. And I'm sure you gave the taxman his cut...
by jimbojones
Sat Nov 16, 2013 1:53 pm
Forum: Investing - Theory, News & General
Topic: Delete Wiki [Article] on Tax-Efficient Asset Location
Replies: 285
Views: 43912

Re: Delete Wiki on Tax-Efficient Asset Location

Seems pretty self evident to me that you place the investment with the highest tax rate where it gets the best tax treatment. I have a feeling I am going to get paragraphs back, but I guess I did knock that chip off. Taking your logic to an extreme, you'd put your [imaginary] 0.01% return asset in your tax-deferred account if it's tax rate was 100%. The problem with your logic is that the goal isn't to minimize effective tax rates, it's to minimize tax dollars paid. You are the only one that seems to be taking anything to extreme. The reality is - if I put returns that are taxed at a higher rate in tax advantaged - I will be better off. Only if those returns aren't significantly different. I think the whole point is that one general rule d...
by jimbojones
Sat Nov 16, 2013 1:31 pm
Forum: Investing - Theory, News & General
Topic: Delete Wiki [Article] on Tax-Efficient Asset Location
Replies: 285
Views: 43912

Re: Delete Wiki on Tax-Efficient Asset Location

leonard wrote:Seems pretty self evident to me that you place the investment with the highest tax rate where it gets the best tax treatment.

I have a feeling I am going to get paragraphs back, but I guess I did knock that chip off.
Taking your logic to an extreme, you'd put your [imaginary] 0.01% return asset in your tax-deferred account if it's tax rate was 100%. The problem with your logic is that the goal isn't to minimize effective tax rates, it's to minimize tax dollars paid.
by jimbojones
Thu Nov 14, 2013 10:19 pm
Forum: Personal Investments
Topic: 401k v. Student Loans - High Starting Salary
Replies: 46
Views: 5503

Re: 401k v. Student Loans - High Starting Salary

1. Refinance the debt (e.g. Sofi.com)
2. Double your emergency fund (including Roth)
3. Max 401k
4. Live like you make $50K/yr
5. Aggressively pay off the debt
by jimbojones
Thu Nov 14, 2013 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: large Credit availability via multiple home purchases?
Replies: 8
Views: 840

Re: large Credit availability via multiple home purchases?

Why not just take the $1M and put a down payment on a $10M house with a $9M mortgage?
by jimbojones
Sun Nov 10, 2013 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: Splitting Education Expenses between Deduction and Credit
Replies: 11
Views: 1497

Re: Splitting Education Expenses between Deduction and Credi

From Tax Topic 513 Educational Expenses: http://www.irs.gov/taxtopics/tc513.html To be deductible, your expenses must be for education that (1) maintains or improves your job skills, or (2) is required by your employer or by law... Although the education must relate to your present work, educational expenses incurred during temporary absence from your job may be deductible. However, after your temporary absence, you must return to the same kind of work. Usually, absence from work for one year or less is considered temporary. The above quote describes my situation. I spent $23,000. Three deduction options as I see it: $23,000 to Lifetime learning Credit: $2,000 $23,000 to Business Deduction for Work-Related Education (15% marginal tax rate w...
by jimbojones
Sun Nov 10, 2013 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Splitting Education Expenses between Deduction and Credit
Replies: 11
Views: 1497

Re: Splitting Education Expenses between Deduction and Credi

Any insights? I couldn't find anything definitive in the IRS publications.
by jimbojones
Sat Nov 09, 2013 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Splitting Education Expenses between Deduction and Credit
Replies: 11
Views: 1497

Splitting Education Expenses between Deduction and Credit

Say I had $23,000 in education expenses that were eligible for both the Business Deduction for Work-Related Education (itemized deduction) and the Lifetime Learning Credit (education credit). Could I apply $10,000 (maximum amount) to the Lifetime Learning Credit and $13,000 (the remainder) to the Business Deduction for Work-Related Education?
by jimbojones
Sat Nov 02, 2013 9:53 pm
Forum: Personal Investments
Topic: Advice for 30 year old
Replies: 7
Views: 872

Re: Advice for 30 year old

You are vulnerable to deflation. I don't think you need more bonds, but when your CD matures I'd consider purchasing longer-term bonds. Or just TBM to keep it simple. An 80/20 stock/bond split should be fine if that's the risk profile you're looking for. Alternatively you could pay off a chunk of the mortgage with the CD proceeds and funnel all future investment (outside of tax-advantaged accounts) to the mortgage.

You are in a great position. Live a simple life and retire at 40.
by jimbojones
Sat Nov 02, 2013 9:19 pm
Forum: Personal Investments
Topic: Advice for 30 year old
Replies: 7
Views: 872

Re: Advice for 30 year old

$600K in net assets is awesome for a 30 YO. Especially with an income of only $97K per year and PITI payments on a $400K mortgage. Are we getting the whole story? Or is this just a humblebrag?
by jimbojones
Tue Oct 29, 2013 8:42 pm
Forum: Personal Investments
Topic: Tax-advantaged investments for the alien
Replies: 5
Views: 839

Re: Tax-advantaged investments for the alien

My question is once you move out of the country and your foreign income is not subject to US taxation, would your only US taxable income be the IRA distributions?

Edit: if you wait until retirement age to start distributions, there shouldn't be a 10% penalty. Also, if your only US income is from the distributions, your tax rate should be very low.
by jimbojones
Mon Oct 28, 2013 9:28 pm
Forum: Personal Consumer Issues
Topic: Am I the only scifi fanatic who thinks that Gravity is lame?
Replies: 102
Views: 8108

Re: Am I the only scifi fanatic who thinks that Gravity is l

Oops- I thought this topic was going to be a rant against gravity itself. Carry on.
by jimbojones
Sun Oct 20, 2013 11:01 am
Forum: Investing - Theory, News & General
Topic: Liquidity + Equity
Replies: 46
Views: 4306

Re: Liquidity + Equity

I don't quite get the use of the word "liquidity" here. Stocks are highly liquid, almost certainly more liquid than TIPS, and arguably more liquid than a bank CD. For every single one of, say, the S&P 500 stocks, I best that any one of us, using an ordinary retail brokerage, can be virtually certain of completing a purchase or sale at any desired time within a matter of minutes. Similarly, we are guaranteed the liquidity of any mutual fund. Yes, liquidity may not be the best word. I think that when accountants refer to "liquid assets" they mean cash or something that will soon be converted to cash in a short period of time without losing value. And soon is often within one year. So cash, checking accounts, savings a...
by jimbojones
Sun Oct 20, 2013 9:54 am
Forum: Investing - Theory, News & General
Topic: Liquidity + Equity
Replies: 46
Views: 4306

Re: Liquidity + Equity

How would an accumulator implement this strategy? Include future income as equivalent to a risky bond?
by jimbojones
Wed Oct 09, 2013 4:22 pm
Forum: Personal Consumer Issues
Topic: POLL - Big4 Accounting Firm
Replies: 10
Views: 2616

Re: POLL - Big4 Accounting Firm

Theintern wrote:I know this is an older thread, but I got a full-time offer from a member of the Big 4! I am super excited about starting with them. I was wondering what experiences anyone can share about their time with them and any advice that can be given. I will be starting in a city dominated by Oil and Gas. Also, does a good GPA, high GMAT, and a Big 4 job for 4-5 years qualify you for a chance at a top 15 MBA?
From personal experience, YES- make it 4 years at big-4, do 90+ percentile on the GMAT, and you'll have a great chance of finding a top-15 MBA program that'll take you. You can take that springboard to corporate finance, I-banking, consulting, or whatever 6-figure salary that suits your fancy.
by jimbojones
Tue Oct 08, 2013 9:34 pm
Forum: Personal Consumer Issues
Topic: How to excel in a first time (financial) job.
Replies: 7
Views: 1286

Re: How to excel in a first time (financial) job.

I know nothing about first FINANCIAL job. I have some idea of what to do for a new job. 1) Volunteer (early and first) whenever a request is made-- particularly when few others want to do something. Then do whatever is asked of you, do it well, and don't complain or suggest how hard you worked to accomplish the task. You will stand out. Your supervisor has multiple tasks on their plate; anyone who can help these tasks get accomplished efficiently (particularly the least pleasant ones) will get considered for the more important tasks quickly. 2) If it is particularly slow when you first start, see what type of additional certifications you can add to your credentials during downtime/ home time. Look particularly at what additional credentia...
by jimbojones
Tue Oct 08, 2013 8:59 am
Forum: Personal Investments
Topic: Your opinion about diversifying a 100% muni-bond portfolio?
Replies: 29
Views: 2973

Re: Your opinion about diversifying a 100% muni-bond portfol

Obviously holding muni bonds in an IRA makes no sense at all.

Some taxable income also makes a lot of sense in this situation. With only SS as current taxable income there is a lot of room to fill up in the lower tax brackets. The increase in yield should more than make up for paying 10-15% income tax.

Remember- compare the yields of the investments, not the coupons.
by jimbojones
Thu Sep 19, 2013 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Advice about campus recruiting?
Replies: 13
Views: 1745

Re: Advice about campus recruiting?

The best way to determine your market value is to find out what everyone is willing to pay for your services. The best part about job searching on-campus is that you get hundreds of companies lining up to talk to you. There is nothing wrong with looking for a better opportunity than from the internship employer.
by jimbojones
Sun Sep 08, 2013 7:42 pm
Forum: Personal Investments
Topic: Time to sell some company stock - sell the biggest winners?
Replies: 16
Views: 1679

Re: Time to sell some company stock - sell the biggest winne

The only person that cares which shares you sell is the tax man. Do whatever lets you pay him the least.
by jimbojones
Mon Sep 02, 2013 10:13 am
Forum: Personal Finance (Not Investing)
Topic: graduate student loans repayment
Replies: 7
Views: 1236

Re: graduate student loans repayment

Hello, I've done tons of research on this topic because I also had lots of high interest student loans. I found one company (Social Finance) that is refinancing student loans into lower interest rates. They might be an option worth looking at for you two. this is one option I forgot. However, they are not in all 50 states. Sadly, they do not offer loans in my state. Most states are covered though. Companies like SoFI are pretty much peer to peer lending operations. They get alumni and hnw individuals to put up the money for the loans. I'm not sure what the actual guarantee is or how underwriting for the loans works. https://www.sofi.com/ is the website. You can check it out. I don't know of anyone who has used them, but might be a way to s...
by jimbojones
Sun Aug 18, 2013 11:32 am
Forum: Investing - Theory, News & General
Topic: Time to abandon a global portfolio?
Replies: 21
Views: 3749

Re: Time to abandon a global portfolio?

OP- Is this the conclusion you reached? From the article:
The recent strong performance of US stock markets has caused many American investors to feel anxious about international investing and to question the merit of globally diversified portfolios. We believe at some point other global asset classes will take the baton from domestic stocks, but the timing of that transition is difficult or impossible to predict in advance. A review of extended investment time frames, such as 10-year rolling periods, reveals that global diversification has consistently produced superior returns for domestic investors.
by jimbojones
Sun Aug 18, 2013 11:27 am
Forum: Personal Investments
Topic: I soooo want to pile in large here...
Replies: 53
Views: 8152

Re: I soooo want to pile in large here...

Don't play imaginary future stock price games with yourself. It sounds like the only reason you think the stock will appreciate is because it has depreciated. No logic there.

The market values ABX at $19.35B. Why do you think it is worth more than that? And why not just buy gold?
by jimbojones
Tue Aug 06, 2013 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Does a home mortgage use Simple or Compund Interest?
Replies: 148
Views: 35721

Re: Does a home mortgage use Simple or Compund Interest?

We really have a failure to communicate here. I think the problem here is one of definition. There really is a difference between interest that is calculated and assessed monthly and interest that compounds monthly, they are not the same. Compound Interest is when the interest is applied to both the principal and accrued interest. In a home mortgage the interest is only calculated and assessed monthly on the current principal. In a normal mortgage the payment exceeds the interest charge and all of the interest is paid and some of the principal is paid reducing the principal. There is NO interest to accrue and all subsequent interest charges are also on the principal only. In a negative amortization mortgage, the payment is not sufficient t...
by jimbojones
Tue Aug 06, 2013 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Does a home mortgage use Simple or Compund Interest?
Replies: 148
Views: 35721

Re: Does a home mortgage use Simple or Compund Interest?

We really have a failure to communicate here. I think the problem here is one of definition. There really is a difference between interest that is calculated and assessed monthly and interest that compounds monthly, they are not the same. Compound Interest is when the interest is applied to both the principal and accrued interest. In a home mortgage the interest is only calculated and assessed monthly on the current principal. In a normal mortgage the payment exceeds the interest charge and all of the interest is paid and some of the principal is paid reducing the principal. There is NO interest to accrue and all subsequent interest charges are also on the principal only. In a negative amortization mortgage, the payment is not sufficient t...
by jimbojones
Tue Aug 06, 2013 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Does a home mortgage use Simple or Compund Interest?
Replies: 148
Views: 35721

Re: Does a home mortgage use Simple or Compund Interest?

The determination of whether the payment covers the accrued interest for the period is completely separate from the determination of simple vs compound interest. In a typical mortgage, amortization schedules have an implicit assumption that the interest is compounded monthly. Use the Excel function: PMT(rate,nper,PV). You'll calculate your exact mortgage payment using compound interest.
by jimbojones
Wed Jul 31, 2013 10:51 pm
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 5903

Re: Interesting Debt Theory...

JoMoney wrote:
jimbojones wrote: Not every 401k loan works like this, FWIW. Some make the loan separately using the investments as collateral.
That sounds very intriguing, but also sounds illegal from what I understand of retirement accounts (but I'm no expert).
Generally the IRS forbids you from using a retirement account as collateral and may make the account ineligible for the special tax treatment if used in that fashion.
You've got me worried. I tried to find some IRS literature to get an answer, but I didn't find anything stipulating that the plan couldn't lend the money with the investment assets as collateral. Do you have a link to anything?
by jimbojones
Wed Jul 31, 2013 7:28 pm
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 5903

Re: Interesting Debt Theory...

If he can borrow 10k from his 401k plan, use the 401k funds to payoff the 10k in loans because 401k interest rate should be about 5% and the interest he pays will be credited to his account in the plan instead of the CC co. Interest paid to 401k plan over 3 years will be less than that which would be paid on other loans. E.g. $8632 total payment for cc loan over 3 years @ 5% and $2158 on 2000 loan @ 5% over 3 years instead of 2400 over 1 year. total interest payment $790 v $2500. There is no benefit to this. The money he's borrowing from himself will come out of the investments and stop earning interest. The money he uses to pay back the 401k loan will come from his "after tax" paycheck. The only one who profits from this is the ...
by jimbojones
Wed Jul 31, 2013 1:10 pm
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 5903

Re: Interesting Debt Theory...

Sorry, I overlooked the article when you linked to it at the beginning. There are some good points sprinkled in there, like living like you're still in college, but the paragraph about maintaining 15% credit card debt in order to fund retirement is dangerous and poorly explained.
by jimbojones
Tue Jul 30, 2013 5:38 pm
Forum: Investing - Theory, News & General
Topic: Interesting Debt Theory...
Replies: 48
Views: 5903

Re: Interesting Debt Theory...

The logic would continue that putting all your expenses on CC while paying only the minimum each month would allow you to max out your investments, generating higher and higher gains in the future.

I'm not sure how you've calculated your figures, but don't exclude the impact of eventually paying back those loans. In the "invest $15K scenario", you still have to pay back the $2K loan at Y1 and the $8K loan over Y1, Y2, and Y3. The future value of those payments (compounded at 8% over ~35 years) will eat up a significant amount of your $245K projection.

Luckily the debts are small, but I'd pay them off and invest the remaining $5K.
by jimbojones
Mon Jul 29, 2013 10:23 pm
Forum: Personal Finance (Not Investing)
Topic: Should I get a MBA?
Replies: 37
Views: 5192

Re: Should I get a MBA?

Check out poetsandquants.com. There are plenty of good articles on there to give you an idea of the types of people applying for the top schools and the types of people the top schools want. A good GMAT score will certainly help since it'll bring up the class average at wherever you go. However, employability post-MBA is probably what the schools look at the most. Your pre-MBA background/experience is a huge factor in the post-MBA job search. It's not like undergrad where everyone is essentially the same at the beginning. It sounds like you have a great story to tell about how you love marketing and want to pursue that field. In order to sell that in an MBA application/interview, you need to be able to demonstrate how you've already taken s...
by jimbojones
Sat Jul 27, 2013 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Using convenience checks to pay down student loan
Replies: 16
Views: 3383

Re: Using convenience checks to pay down student loan

I would find the 0% card for new purchases that has the longest term. I've seen a 21-mth card from Citi. Use that card to make all your regular purchases. In the meantime, plow every last cent into the student loan.

It's not as immediate as doing a BT, but it avoids the BT fee and has 0% interest.
by jimbojones
Thu Jul 11, 2013 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Why not pay credit card bill as soon as it arrives?
Replies: 69
Views: 8086

Re: Why not pay credit card bill as soon as it arrives?

You're making the wrong comparison. Assuming you keep your cash balance constant, the "float" is either used to pay down debt or invested in something. The appropriate comparison rate is your interest rate on your debt or the expected return of your investments. I'll take that free 5-10% all day everyday.

Think of it this way: do you see any value in 0% credit card offers? A month or two of "float" has the same effect, just over a shorter timeframe.
by jimbojones
Fri Apr 26, 2013 10:24 am
Forum: Personal Investments
Topic: Mom demands trust be professionally managed
Replies: 67
Views: 6223

Re: Mom demands trust be professionally managed

archbish99 wrote:
tractorguy wrote:Folks; The additional expenses for the external manager is less than $1575 total fees for 5 years (0.07% x $450K x 5). There is no way I'd try to bulldoze my mother in law's opinions about the best place to put money for this little bit. And I'm 60 and have 30 years of investment experience.
In the meantime, this advisor is likely to be doing administrative duties for the trust, such as filing its 1041 and K-1s each year. Not necessarily something to shrug off, since most people who are comfortable with TurboTax are less comfortable doing a trust's tax return.
As noted above, the math is wrong. It's a 0.7% fee, not 0.07%. These "services" cost $15,750 over five years.
by jimbojones
Wed Apr 24, 2013 1:51 pm
Forum: Personal Consumer Issues
Topic: Battle of he said she said with landlord
Replies: 20
Views: 2727

Re: Battle of he said she said with landlord

I agree with above. Lease contracts usually have provisions stating that any "agreements" outside of the contract are invalid. Your friend likely has to negotiate a new rate going forward.
by jimbojones
Fri Apr 12, 2013 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Serving on a Pension Board - Advice?
Replies: 30
Views: 3692

Re: Serving on a Pension Board - Advice?

I've recently previewed several public companies annual reports who have defined benefit plans where they go into detail about their pension fund assumptions and I find even the most conservative of the plans have unrealistic return expectations given their current investment strategy. One of the companies who I will not name but is in the Fortune 500 maintains a 60/40 split, yet has expectations of an approximate 8% return. BTW, this plan has a significant shortfall between the accumulated benefit obligation and the projected benefit obligation. A number of these companies, even if they have frozen their plans - this particular company has, will still need to pony up significant cash to make the plan viable over the next ten years, even w...
by jimbojones
Fri Apr 12, 2013 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Serving on a Pension Board - Advice?
Replies: 30
Views: 3692

Re: Serving on a Pension Board - Advice?

I've recently previewed several public companies annual reports who have defined benefit plans where they go into detail about their pension fund assumptions and I find even the most conservative of the plans have unrealistic return expectations given their current investment strategy. One of the companies who I will not name but is in the Fortune 500 maintains a 60/40 split, yet has expectations of an approximate 8% return. BTW, this plan has a significant shortfall between the accumulated benefit obligation and the projected benefit obligation. A number of these companies, even if they have frozen their plans - this particular company has, will still need to pony up significant cash to make the plan viable over the next ten years, even w...
by jimbojones
Thu Apr 11, 2013 9:09 pm
Forum: Personal Investments
Topic: Max Out New Roth IRA or Pay Off Loan with 7.25% Interest
Replies: 22
Views: 10317

Re: Max Out New Roth IRA or Pay Off Loan with 7.25% Interest

Hello, I'm a soon-to-be doctor who will be moving to Chicago to begin my advanced training in a surgical specialty, and I'm just trying to get my finances in gear. A few questions: 1. Is it smarter to open and max out a Roth IRA my first year or to aggressively pay down a loan of $13,000 with an interest rate of %7.25? How much does a Roth need to be growing to make filling it preferable to paying down this loan more aggressively? 8 percent? 2. On average, around what percent return do people expect on a Roth that first year? 3. I'm about 27 years old. Will not funding a Roth my first year hurt me in the long run somehow? In other words: will I be at a loss if I put off the Roth for a year to pay off this loan? 4. I keep hearing that you m...
by jimbojones
Fri Mar 01, 2013 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Owner's Title Insurance
Replies: 11
Views: 1539

Re: Owner's Title Insurance

Drain wrote:Check with Entitle Direct to see what they'd charge you. It'll be a quick process, so even if you wind up with the same figure (i.e., the state board really does mandate that single rate), you won't feel like you've wasted that much time. And there's a good chance you'll discover that the title company you're currently talking to is misleading you.

And no, I don't think owner's title is generally worth what you were quoted.
Unfortunately, Entitle Direct doesn't do business in Texas, most likely because the state insurance board controls the rates.

http://www.tdi.texas.gov/orders/titlerates2004.html
by jimbojones
Fri Mar 01, 2013 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Owner's Title Insurance
Replies: 11
Views: 1539

Owner's Title Insurance

Owner's title insurance costs $1,457 for a ~$215,000 house in Texas (rate set by the state insurance board). The lender will have its own separate title insurance. My equity in the house will be ~$11,000. Does it make sense to pay $1,457 for title insurance to protect $11,000 in equity? Or is that the wrong comparison to make? Thank you for any help and advice.
by jimbojones
Wed Feb 06, 2013 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Income Limits Database
Replies: 1
Views: 552

IRS Income Limits Database

Different IRS pronouncements have different income thresholds for phase-outs, applicability, etc. I'm curious: does anyone know of a database that has each income threshold? I think it would be a good resource for planning purposes. It would also be interesting to see which tax benefits you lose as you go up in income. Please post if you have a good source.
by jimbojones
Sat Dec 22, 2012 9:37 am
Forum: Personal Investments
Topic: Private Money Lending
Replies: 102
Views: 11357

Re: Private Money Lending

I saw an episode of American Greed that somewhat resembles this arrangement. A broker in Hawaii was arranging similar loans until he ran out of eligible borrowers. Instead of telling his investors that there were no more loans to fund, he lied and kept taking investors' money. Instead of funding loans, he now funded his lavish lifestyle. And like any Ponzi scheme, he required new contributions to pay the interest/principal on older investments. Eventually, of course, the scheme derailed and he ended up killing himself. Many investors lost significant sums of money. Here's a link to a related article: http://www.cnbc.com/id/46796860 Prosecutors say Lull, based in Hawaii, offered investors the opportunity to help distressed homeowners by fund...
by jimbojones
Sat Dec 08, 2012 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loans - Pay As You Earn
Replies: 10
Views: 1879

Re: Student Loans - Pay As You Earn

Doesn't interest accrue on unpaid balances? :confused Yes, yes it does. An example: $150,000 student loan debt $100,000 AGI 3 Family Size 7.15% Average Interest Rate $595 per month is the Pay As You Earn student loan payment, as calculated using the website above. If you make that $595 payment for 20 years, the remaining loan balance would be forgiven. With this example, the remaining loan balance is $307,257. The forgiveness would count as taxable income. Is there a source that you've read which outlines that the forgiveness counts as income? I am aware that this is true with other forms of debt, but it seems that it would undercut the point of the forgiveness program (especially the public service forgiveness) to the saddle the already d...