Search found 32 matches

by Ace$
Wed Jan 18, 2017 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Never had a credit card, should I get one?
Replies: 71
Views: 2460

Re: Never had a credit card, should I get one?

At this point, I wouldn't. Studies have shown that the dollar amount of purchases is greater when plastic is used (credit more than debit) vs. cash. The study cites the pain of parting with cash vs. the ease of swiping a plastic card as the primary reason. We do have a CC we use for online purchases...
by Ace$
Wed Jan 18, 2017 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: How much to spend on a house?
Replies: 29
Views: 3119

Re: How much to spend on a house?

We are both physicians and are relatively high earners but also have a lot of student loan debt to factor in to our monthly budgets. IIWY, I'd live like a broke college student and plow every extra dollar into paying off all the consumer debt. Buying a home while broke is a really horrible idea. I ...
by Ace$
Wed Jan 18, 2017 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage/Real Estate Questions
Replies: 2
Views: 301

Re: Mortgage/Real Estate Questions

I've bought/sold a home closing the same day twice - it's very stressful and those were both "local" moves. I'd be tempted, in your case, to sell the CA house, move into temporary housing, and then possibly rent another 6-12 months beyond that. CA to TX is a major move not only physically ...
by Ace$
Wed Jan 18, 2017 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: Paying back college loan debt
Replies: 15
Views: 931

Re: Paying back college loan debt

I follow The Total Money Make Over by Dave Ramsey principals when it comes to budgeting and debt. I just wish I was as young as you when I started. :D His steps are as follows: 1. Save $1k in a starter emergency fund to prevent any additional need for taking on debt 2. Payoff all non-mortgage debt a...
by Ace$
Wed Jan 18, 2017 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: How much to spend on a house?
Replies: 29
Views: 3119

Re: How much to spend on a house?

dcr1984 wrote: We are both physicians and are relatively high earners but also have a lot of student loan debt to factor in to our monthly budgets.


IIWY, I'd live like a broke college student and plow every extra dollar into paying off all the consumer debt. Buying a home while broke is a really horrible idea.
by Ace$
Wed Jan 18, 2017 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: How much to spend on a house?
Replies: 29
Views: 3119

Re: How much to spend on a house?

Another rule of thumb is mortgage no more than 25% of take home pay (pref after 20% down on a 15year fixed). I agree with this. But just to clarify I believe (I could be wrong) mhalley is referring to "monthly mortgage payment no more than 25% of monthly take home pay" In addition you sho...
by Ace$
Wed Jan 18, 2017 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: term-life insurance
Replies: 3
Views: 258

Re: term-life insurance

I'd first evaluate if there is a need for life insurance. With no children or spouse dependent on his earning ability, he seemingly only needs enough to bury himself.
by Ace$
Sun Jan 15, 2017 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k Withdrawl / Match Question - Home Down Payment
Replies: 10
Views: 429

Re: Roth 401k Withdrawl / Match Question - Home Down Payment

I am reasonably sure - raiding a 401k when you don't have to would be something Dave Ramesey would not advocate. Agreed. Ramsey would not approve. Instead, he would suggest you just suspend contributions between now and when you close in order to hoard as much cash as possible and get back to the r...
by Ace$
Fri Jan 13, 2017 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: 65k Cash. 25 y/o. Best place to put this?
Replies: 25
Views: 1595

Re: 65k Cash. 25 y/o. Best place to put this?

Is it safe to assume you have no debt? If that assumption is correct, I'd park that cash right where it is and plan on using it to get through medical school to minimize any potential SL borrowing. Medical school runs $250k+ from what I've heard/read.
by Ace$
Fri Jan 13, 2017 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: House downpayment and cashing in index funds?
Replies: 16
Views: 912

Re: House downpayment and cashing in index funds?

I agree with the poster who said this is too much house given the income. That said, if you're treating this as a 50/50 business transaction I would recommend handling the down payment in that fashion. That's the way the land purchase was handled, and I would handle expenses similarly to keep it cle...
by Ace$
Fri Jan 13, 2017 12:13 am
Forum: Personal Finance (Not Investing)
Topic: Car accident . Fix car or not ?
Replies: 26
Views: 1619

Re: Car accident . Fix car or not ?

I'd be shocked if this isn't a total loss, and I would not consider taking a lesser settlement in return for keeping this salvage. Once a car has a salvage title, it will always have a salvage title which makes the value even more questionable and the vehicle very difficult to get rid of later. I f...
by Ace$
Thu Jan 12, 2017 9:06 pm
Forum: Personal Consumer Issues
Topic: How much do you typically spend in a restaurant?
Replies: 171
Views: 9197

Re: How much do you typically spend in a restaurant?

Two of us in Denver will typically run about $25 at a mid-range sit-down restaurant we typically frequent - for food. Double that if we're drinking. Drinks, whether it be alcohol or iced tea or soft drinks, are where the money is. I NEVER drink anything out unless it's a beer or cocktail. I get bent...
by Ace$
Thu Jan 12, 2017 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Car accident . Fix car or not ?
Replies: 26
Views: 1619

Re: Car accident . Fix car or not ?

I'd be shocked if this isn't a total loss, and I would not consider taking a lesser settlement in return for keeping this salvage. Once a car has a salvage title, it will always have a salvage title which makes the value even more questionable and the vehicle very difficult to get rid of later.
by Ace$
Thu Jan 12, 2017 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: How to best approach saving for retirement/debt reduction
Replies: 14
Views: 674

Re: How to best approach saving for retirement/debt reduction

I glad to see many have already made reference to The Total Money Make Over by Dave Ramsey. It is a very simple, don't confuse that with easy, plan that's primary claim to fame is getting households on the zero-based budget (eliminates overspending and/or not knowing where your money is going) and e...
by Ace$
Wed Jan 11, 2017 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: Morgage Advice
Replies: 16
Views: 1653

Re: Morgage Advice

As far as securing a mortgage loan quickly, a short-term (15-year) loan with a strong down payment (20% or more) that results in an affordable payment (25-35% of take-home pay) would qualify you at most lenders that do manual underwriting. What exactly is manual underwriting? How exactly would I fi...
by Ace$
Wed Jan 11, 2017 7:30 pm
Forum: Investing - Help with Personal Investments
Topic: Home Advice
Replies: 9
Views: 567

Re: Home Advice

I would recommend postponing the home purchase until you have all your consumer debt paid off and a healthy emergency fund in place. You may want to consider using some of these funds towards that purpose. Too many people buy a home while in debt with insufficient cash on hand and get into a jam wh...
by Ace$
Wed Jan 11, 2017 6:17 pm
Forum: Investing - Help with Personal Investments
Topic: Help me decide if I should Invest or Payoff Loans?
Replies: 15
Views: 1299

Re: Help me decide if I should Invest or Payoff Loans?

Pay off the car. Pay off the Student loans. Max out your Roth IRA contribution for 2016 (you have until April to do this). Max out your Roth IRA contribution for 2017. Go in and change your 401k contribution to 10% of salary. Then reassess. Your cash will have dropped down to about 10k by doing thi...
by Ace$
Wed Jan 11, 2017 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: Home Advice
Replies: 9
Views: 567

Re: Home Advice

I would recommend postponing the home purchase until you have all your consumer debt paid off and a healthy emergency fund in place. You may want to consider using some of these funds towards that purpose. Too many people buy a home while in debt with insufficient cash on hand and get into a jam whe...
by Ace$
Wed Jan 11, 2017 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question on a Jointly Owned Property
Replies: 8
Views: 577

Re: Tax Question on a Jointly Owned Property

I don't know if you're filing taxes correctly or not; however, I would also be asking your tax professional what happens if the other couple doesn't report/file/pay their half? That's an even larger concern in my opinion. If the other couple does not report/file/pay their half, then the other coupl...
by Ace$
Wed Jan 11, 2017 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: How to build passive income
Replies: 45
Views: 4297

Re: How to build passive income

As an alternative to your traditional rental property, what about buying vacant land that can generate income from grazing cattle, allowing harvesting of hay or timber, keeping of horses, etc. It seems there would be minimal upkeep, low taxes, and land is a finite resource. I thought that the follo...
by Ace$
Wed Jan 11, 2017 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: How to build passive income
Replies: 45
Views: 4297

Re: How to build passive income

As an alternative to your traditional rental property, what about buying vacant land that can generate income from grazing cattle, allowing harvesting of hay or timber, keeping of horses, etc. It seems there would be minimal upkeep, low taxes, and land is a finite resource.
by Ace$
Wed Jan 11, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Help with paying off debt
Replies: 52
Views: 3992

Re: Help with paying off debt

Ace$- Thank you for the advice. I will definitely take this into consideration. As far as refinancing, I would want to refinance to a 15 year loan and not start back up at 30. We have been in our house for about 2.5 years now so I am unsure if the value of our house has gone up enough to avoid the ...
by Ace$
Wed Jan 11, 2017 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Auto Loan [vs. investing]
Replies: 41
Views: 1925

Re: Auto Loan [vs. investing]

There is nothing special about having a depreciating asset and financing it, unless you are considering the possibility of default . You are fully exposed to the asset's loss in value whether you finance it or pay cash. That is exactly what I am doing. That potential exists despite our best intenti...
by Ace$
Wed Jan 11, 2017 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Auto Loan [vs. investing]
Replies: 41
Views: 1925

Re: Auto Loan [vs. investing]

I wouldn't finance a depreciating asset. Pay cash. There is nothing special about having a depreciating asset and financing it, unless you are considering the possibility of default . You are fully exposed to the asset's loss in value whether you finance it or pay cash. That is exactly what I am do...
by Ace$
Wed Jan 11, 2017 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Auto Loan [vs. investing]
Replies: 41
Views: 1925

Re: Auto Loan [vs. investing]

I wouldn't finance a depreciating asset. Pay cash. There is nothing special about having a depreciating asset and financing it, unless you are considering the possibility of default . You are fully exposed to the asset's loss in value whether you finance it or pay cash. That is exactly what I am do...
by Ace$
Wed Jan 11, 2017 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: 2017 Goals...What should we do?
Replies: 15
Views: 1562

Re: 2017 Goals...What should we do?

The TMMO plan of Ramsey's has served our family well for over 8 years now. We're debt free including the house after learning the program and applying it's principals. That said, a common sticking point is that starter emergency fund of $1k. Why not payoff the $12.2k car, keep the remaining $7.8k in...
by Ace$
Wed Jan 11, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Auto Loan [vs. investing]
Replies: 41
Views: 1925

Re: Auto Loan [vs. investing]

I wouldn't finance a depreciating asset. Pay cash.
by Ace$
Wed Jan 11, 2017 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Morgage Advice
Replies: 16
Views: 1653

Re: Morgage Advice

We haven't borrowed money in a number of years now, but we do keep a Discover Card which I use for business travel, online purchases, and recurring monthly charges which we payoff bi-weekly. I chose this card because it provides our FICO score on-demand. You could possibly get that car and your cred...
by Ace$
Wed Jan 11, 2017 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: student loan with 6.375% interest rate
Replies: 4
Views: 453

Re: student loan with 6.375% interest rate

Those are pretty nastly loan terms. I would reconsider how this loan is prioritized.
by Ace$
Wed Jan 11, 2017 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question on a Jointly Owned Property
Replies: 8
Views: 577

Re: Tax Question on a Jointly Owned Property

I don't know if you're filing taxes correctly or not; however, I would also be asking your tax professional what happens if the other couple doesn't report/file/pay their half? That's an even larger concern in my opinion.
by Ace$
Wed Jan 11, 2017 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Where do you keep your emergency fund?
Replies: 80
Views: 6078

Re: Where do you keep your emergency fund?

Ally 1% account + a local bank account. My philosophy is a EF fund is for emergency's not money making especially in this no interest period. I've actually had to use my EF a few times for real emergencies so I'm more risk averse that someone that hasn't. I agree. I keep the lion's share of it in a...
by Ace$
Wed Jan 11, 2017 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Help with paying off debt
Replies: 52
Views: 3992

Re: Help with paying off debt

I'm a Dave Ramsey guy like some here. While not necessarily optimum in terms of dollars and cents, those that only make the math argument typically forget to mention risk. Debt = Risk regardless of interest rate, payment amount, or something being "good" debt. They also neglect to mention ...

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