Search found 1056 matches

by DVMResident
Fri Jun 23, 2017 12:00 am
Forum: Personal Finance (Not Investing)
Topic: What to do with mortgages, etc.
Replies: 24
Views: 2555

Re: What to do with mortgages, etc.

Rental Property: Value: approx 575-600k owed: 363k @ 4.25, 29yrs remaining tax basis: $331k (I think, after deciphering my tax's guy's answer on how much tax i'd pay if i sold) ^ I raised an eyebrow at these numbers. How did you depreciate >half of the building but still have 29 years on the mortga...
by DVMResident
Tue Jun 20, 2017 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Storing funds for a house
Replies: 10
Views: 1089

Re: Storing funds for a house

A 3-5 year timeline is JUST getting to the point where you can likely/probably do better investing it rather conservatively than just putting it in CDs/high-interest savings. I'd echo the Vanguard LifeStrategy option -- the LifeStrategy Income fund is a 20/80 stocks to bonds fund that should give y...
by DVMResident
Thu Jun 15, 2017 5:26 pm
Forum: Investing - Theory, News & General
Topic: 30 yr TIPS auction 6/22: yield 1.0%?
Replies: 37
Views: 3499

Re: 30 yr TIPS auction 6/22: yield 1.0%?

Why not iBonds over individual 30 yr TIPS in the face of rising interest rates? (assuming you need <$10/$20k/yr)
by DVMResident
Thu Jun 15, 2017 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: How many of you have rentals (i.e. you're a landlord)? Are they worth it?
Replies: 74
Views: 5043

Re: How many of you have rentals (i.e. you're a landlord)? Are they worth it?

I owned a triplex and lived in one unit and rented out the other units. When I was living in the building, I actually enjoyed it. Since I was there to handle any of the issues that came up, it was not too much of a hassle. A triplex huh? Interesting idea. Not sure about the benefit of living on sit...
by DVMResident
Wed Jun 14, 2017 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: How many of you have rentals (i.e. you're a landlord)? Are they worth it?
Replies: 74
Views: 5043

Re: How many of you have rentals (i.e. you're a landlord)? Are they worth it?

Small time landlord here about to get out (2 more weeks). It's been really worth it for me. Owned a 2-unit. Lived in half for 2 years, rented other half out. Currently rent both units. In 4.5 years, the annualized CAGR has been 47.5% (including taxes and expenses/repairs, but excluding the value of ...
by DVMResident
Sun Jun 11, 2017 8:10 pm
Forum: Investing - Theory, News & General
Topic: payoff mortgage?
Replies: 12
Views: 1874

Re: payoff mortgage?

As someone above said, a re-fi might be worth looking into - though I believe mortgages on second properties do not usually get the same low interest rate considerations. Ballpark is +0.5% interest for non-primary residences with 25% LTV minimum without points. The drop in market value will mean th...
by DVMResident
Sun Jun 11, 2017 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Property Repairs - Whose to Pay?
Replies: 32
Views: 2740

Re: Rental Property Repairs - Whose to Pay?

1) An over the counter microwave had part of the plastic front cover broken off. Pricing the part from the manufacturer it is $125. The unit is approx. 10 years old so I plan to replace it instead of just repairing the one obvious broken part(it will cost approx. $250 to replace). Is it reasonable ...
by DVMResident
Fri Jun 09, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: payoff mortgage?
Replies: 12
Views: 1874

Re: payoff mortgage?

Personally, I don't like taking the leverage out of rentals. Removing leverage drops ROI and increases liquidity risks in other areas of your portfolio due the loss of collateral. Less reward, more risk =/= good investment strategy. I prefer to keep assets either as (1) collateral in near-cash (up t...
by DVMResident
Thu Jun 08, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: 7 yr ARM vs 30 Yr for new construction Condo
Replies: 22
Views: 1420

Re: 7 yr ARM vs 30 Yr for new construction Condo

How do arm rates change? Is it based on the current 30 year interest rates or the current year arm rates? You ARM will stay fixed ('index' in technical speak) for a number of years. Then the ARM interest adjust to a predefined benchmarked. The 1-year constant-maturity Treasury (CMT) securities and ...
by DVMResident
Wed Jun 07, 2017 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: 7 yr ARM vs 30 Yr for new construction Condo
Replies: 22
Views: 1420

Re: 7 yr ARM vs 30 Yr for new construction Condo

But we're Bogleheads, aren't we supposed to be above-average. :happy re how long holding the house. Even if OP only holds the home for 7-13 years, he can rent it out. Primary residents-turned-landlords want ARMs because of the tax structure. As a primary resident, the OP will be using the standard ...
by DVMResident
Mon Jun 05, 2017 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Achieving Balance: Targeting Top of 15%
Replies: 13
Views: 1626

Re: Achieving Balance: Targeting Top of 15%

ROTH IRA is generally superior to debt pay down, with the exception of high interest loans like Credit Cards. The principle in the ROTH IRA can be withdrawn within 5 years and serves as collateral against the debt. Moreover, that IRA is dynamic and be used to cover anything. Paid debt can not. IRAs...
by DVMResident
Mon Jun 05, 2017 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Achieving Balance: Targeting Top of 15%
Replies: 13
Views: 1626

Re: Achieving Balance: Targeting Top of 15%

3. Should someone at the top of the 15% bracket and hitting 20% of gross in 401k cut their spending/giving/debtpaying in order to fill their IRA? ROTH IRA is generally superior to debt pay down, with the exception of high interest loans like Credit Cards. The principle in the ROTH IRA can be withdr...
by DVMResident
Mon Jun 05, 2017 12:31 am
Forum: Personal Finance (Not Investing)
Topic: What do you guys do on the side?
Replies: 165
Views: 22827

Re: What do you guys do on the side?

Over the years, I've had a couple. Most recently, landlording. Previous side gigs have been vaccines clinics (veterinarian), enrolling in clinical trials, and credit card award chasing. Landlording has the best ROI, vaccines clinics was the most fun ($100/hr for 2 hours gigs, up to 2 gigs a day) and...
by DVMResident
Sun Jun 04, 2017 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: 7 yr ARM vs 30 Yr for new construction Condo
Replies: 22
Views: 1420

Re: 7 yr ARM vs 30 Yr for new construction Condo

Great info. So more info Purchase price: 575k Downpayment: 20% HOA: $170 Rules: not fully established since new construction but as of now can freely rent. So if I went with a 7yr/10yr and paid as if it was a 30yr, how fast would I pay off the loan? I like this idea. That is impossible to know beca...
by DVMResident
Sun Jun 04, 2017 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: 7 yr ARM vs 30 Yr for new construction Condo
Replies: 22
Views: 1420

Re: 7 yr ARM vs 30 Yr for new construction Condo

Why not lock up a mortgage for 30 years with that "low" rate. Why gamble on what the rates may be in 7 or 10 years ? I'm 70 years old and I have seen mortgage rates between 10-12 %. So my perspective is the rates are now "low". The Joker The biggest reason not to lock in a 30 ye...
by DVMResident
Wed May 31, 2017 10:19 pm
Forum: Personal Finance (Not Investing)
Topic: Teachers: what are your best personal finance tips?
Replies: 78
Views: 6940

Re: Teachers: what are your best personal finance tips?

Not a teacher. Some ideas for the site content specific to teachers: -Explain each state's pension plans. The plans are often complex, opaque, and difficult to understand. Subsequent articles comparing different systems. -Highlight the issues with pension 'haircuts' and how to plan around them. -Ann...
by DVMResident
Wed May 31, 2017 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: 7 yr ARM vs 30 Yr for new construction Condo
Replies: 22
Views: 1420

Re: 7 yr ARM vs 30 Yr for new construction Condo

Little hard to give specific advise without a more complete picture (i.e. purchase price, PMI, HOA fees, HOA rules on rentals, tax considerations like mortgage interest deduction,etc). I prefer the tactic of taking a 7/1 ARM and setting payments at the 30 fixed. The accelerated principle pay down co...
by DVMResident
Sun May 28, 2017 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Play Money for Spouse....
Replies: 138
Views: 9382

Re: Play Money for Spouse....

, and she wants this to be a monthly ATM withdrawal that I don't see (and critique- though again, I don't think I do this anyway!!!). Any ideas? I believe she is thinking in the $400-$500 dollars per month range. Prepaid VISA cards that is automatically recharged works well if she wants the money f...
by DVMResident
Sun May 28, 2017 11:01 am
Forum: Personal Consumer Issues
Topic: Employer 401k disappeared from Fidelity
Replies: 8
Views: 1006

Re: Employer 401k disappeared from Fidelity

OP, mine is back.
by DVMResident
Sun May 28, 2017 2:27 am
Forum: Personal Consumer Issues
Topic: Employer 401k disappeared from Fidelity
Replies: 8
Views: 1006

Re: Employer 401k disappeared from Fidelity

Same here. Odd.
by DVMResident
Fri May 26, 2017 10:07 am
Forum: Personal Finance (Not Investing)
Topic: First house - penny wise?
Replies: 12
Views: 2682

Re: First house - penny wise?

You expressed concerns over a $200k mortgage. The math on a $200k 30-year fixed 4% note is Principle + Interest is $955/mo (doesn't include taxes and insurance) or about 17.6% of take home. $200k 15-year fixed 3.375% note is Principle + Interest is $1,418/mo (again, without taxes and insurance) or a...
by DVMResident
Thu May 25, 2017 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Yet Another Real Estate vs Stock Market Thread
Replies: 44
Views: 3837

Re: Yet Another Real Estate vs Stock Market Thread

However if you can get 7-8% cap rates, then I doubt there is much price appreciation priced into the market (none, basically?). Leverage allows you access the 'growth'/appreciation side even when the RE market is fully valued. If you assume a real appreciation rate of 0%, the nominal appreciation i...
by DVMResident
Mon May 22, 2017 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: Yet Another Real Estate vs Stock Market Thread
Replies: 44
Views: 3837

Re: Yet Another Real Estate vs Stock Market Thread

Your analysis seems to ignore appreciation (I'd expect values to go up with inflation) and your example is, at best, a marginal deal a lot of investors wouldn't bother with. But the main thing you're ignoring is the availability of cheap, safe, long-term, fixed-rate leverage. Good RE investors rout...
by DVMResident
Mon May 22, 2017 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Yet Another Real Estate vs Stock Market Thread
Replies: 44
Views: 3837

Re: Yet Another Real Estate vs Stock Market Thread

Your analysis seems to ignore appreciation (I'd expect values to go up with inflation) and your example is, at best, a marginal deal a lot of investors wouldn't bother with. But the main thing you're ignoring is the availability of cheap, safe, long-term, fixed-rate leverage. Good RE investors rout...
by DVMResident
Mon May 22, 2017 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Yet Another Real Estate vs Stock Market Thread
Replies: 44
Views: 3837

Re: Yet Another Real Estate vs Stock Market Thread

$600,000 Investment RENTAL PROPERTY $7,000 rental property income --> good gross rent-to-purchase price, a bit optimistic these days $84,000 rental property income per year $14,545 depreciation (assuming 400k building worth) $69,455 depreciation deducted from income --> don't forget recapture 33% m...
by DVMResident
Wed May 17, 2017 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: 1031 Exchange or taxable account?
Replies: 6
Views: 547

Re: 1031 Exchange or taxable account?

I'm selling a rental with capital gains and have put a lot of thought into this topic. I am very interested in the forum's responses. Here are my neophyte thoughts on the topic: a 1031 is for moving equity from one RE asset to another asset and delaying paying the taxes. However, you still take on a...
by DVMResident
Mon May 08, 2017 9:44 am
Forum: Investing - Theory, News & General
Topic: Can 8% rental income help my Early Retirement?
Replies: 35
Views: 3212

Re: Can 8% rental income help my Early Retirement?

Landlording requires more skill and is more hands-on than index investing. The returns can be higher with cheap leverage, i.e. mortgages. If you're serious, you need to spend time educating yourself. To understand the basics of RE investing, I recommend the following books: Fundamentals: What Every ...
by DVMResident
Wed May 03, 2017 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: Unfunded, non-qualified deferred plan - What is this thing?
Replies: 18
Views: 1335

Re: Unfunded, non-qualified deferred plan - What is this thing?

It sounds similar to a deferred comp plan I contribute to at my employer. They are designed to allow higher income brackets to save higher levels of income. Mine is non qualified and you are a general creditor if God forbid the company experienced financial challenges. I have participated for sever...
by DVMResident
Wed May 03, 2017 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Unfunded, non-qualified deferred plan - What is this thing?
Replies: 18
Views: 1335

Re: Unfunded, non-qualified deferred plan - What is this thing?

My megacorp has the same plan. When compared against just putting extra money into a taxable account there didn't seem to be much benefit because the supplemental plan would essentially be similar to after tax 401k contributions except you are hoping the company doesn't go bankrupt before you need ...
by DVMResident
Wed May 03, 2017 9:08 am
Forum: Investing - Help with Personal Investments
Topic: Unfunded, non-qualified deferred plan - What is this thing?
Replies: 18
Views: 1335

Re: Unfunded, non-qualified deferred plan - What is this thing?

Found the SEC filing: it's a 409(A) . From Investopedia "The compensation amount is considered held back while the employee is working for a company, and it is paid out when the employee separates from the employer, becomes disabled, dies or experiences a similar event." Seem rare enough t...
by DVMResident
Wed May 03, 2017 12:04 am
Forum: Investing - Help with Personal Investments
Topic: Unfunded, non-qualified deferred plan - What is this thing?
Replies: 18
Views: 1335

Re: Unfunded, non-qualified deferred plan - What is this thing?

Sounds like a 457. Are you a Veterinarian? Yup :happy I don't think this is a 457(a) or 457(b). I had a 457 in residency (university) and I don't see 457(___) in any of the plan documents. 457(f) governs other nonqualified deferred compensation plans ("ineligible plans" or "top hat&q...
by DVMResident
Tue May 02, 2017 10:52 pm
Forum: Personal Consumer Issues
Topic: Minimalist May
Replies: 21
Views: 2114

Re: Minimalist May

dh wrote:taking out a few books and DVDs at my local library


Many libraries have audio books check outs through an App called Overdrive. I quite enjoy them, especially for commuting.
by DVMResident
Tue May 02, 2017 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: Unfunded, non-qualified deferred plan - What is this thing?
Replies: 18
Views: 1335

Unfunded, non-qualified deferred plan - What is this thing?

Hello forum, I got a recent promotion last year. The income bump apparently made me eligible for supplemental tax deferred account in addition to 401(k). I already contribute $54k/yr including the match and do a mega-backdoor. No IRAs contribution at the moment. I have 30 days to enroll in the progr...
by DVMResident
Tue Apr 25, 2017 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Los Angeles house buying
Replies: 38
Views: 3746

Re: Los Angeles house buying

Right now the rent on my residence is running 0.26% and my investment units rent is at 0.5%. Current market fundamentals favor renters and sellers-not buyers. We're 8 years into this cycle. Hang tight if you can. Where is your rental? Some areas have slightly better numbers than others. Living/rent...
by DVMResident
Tue Apr 25, 2017 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Los Angeles house buying
Replies: 38
Views: 3746

Re: Los Angeles house buying

LA RE cycles. These cycles are long. Before the '09-'11 drop was the '93-'94. In 93'-'94, the west side dropped 30%. Those houses are up nominally 5x now. From the '09-'12 drop, houses are up nominally x1.5~1.75. During the crash, leveraged people had their equity wiped out and some went underwater....
by DVMResident
Fri Apr 21, 2017 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Keep Mortgaged Home For Rental Property - Equity In ROI?
Replies: 14
Views: 1194

Re: Keep Mortgaged Home For Rental Property - Equity In ROI?

OP, I highly recommend this book for calculating RE ROI: What Every Real Estate Investor Needs to Know About Cash Flow And 36 Other Key Financial Measures Personally, my target is a RE ROI 2x (adequate) to 3x (preferred) cash-on-sale forward 10 E/P of S&P 500 because I want a high ROI for taking...
by DVMResident
Wed Apr 19, 2017 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Another: Rent out current house or sell? (what did you do?)
Replies: 3
Views: 525

Re: Another: Rent out current house or sell? (what did you do?)

+1 vote for sale. Fundamentals are mediocre and IMO don't justify the concentrated investment: gross to market value 0.45% (goal should be 0.8~1%). Can't calculate ROI on cash (maybe 10%?), but looks like too much equity to be super profitable. My personal rule of thumb is ROI on cash equity (minus ...
by DVMResident
Tue Apr 18, 2017 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Real estate rate of return?
Replies: 34
Views: 3301

Re: Real estate rate of return?

What else should I be thinking about? Having a tenant living on your property and dealing with the tenant. My least favorite part of my rentals are dealing with the 'personality' variables of my tenants. Having been both landlord on site and at a distance, I have a different perspective: my least f...
by DVMResident
Mon Apr 17, 2017 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Is spending 15K to furnish home too much?
Replies: 39
Views: 4724

Re: Is spending 15K to furnish home too much?

crazylightgirl, how many square feet? Bedrooms? Outdoor space? Generally agree: $15k with matching sets or strong themes for a whole house is on the cheaper end. It is possible if you take a lot of time shopping around for deals/second (difficult to pull together a theme) or if going with IKEA (chea...
by DVMResident
Mon Apr 17, 2017 9:53 am
Forum: Personal Finance (Not Investing)
Topic: 20yr fixed, 30yr fixed, or 7/1 ARM
Replies: 48
Views: 3366

Re: 20yr fixed, 30yr fixed, or 7/1 ARM

The only argument against it that you might need to think about is if you might plan to keep the property as a rental after you move out (within seven years like you think you will). In that situation, it might be a better idea to go with a fixed loan (20-year or 30-year) instead of the ARM. You wi...
by DVMResident
Fri Apr 14, 2017 10:12 am
Forum: Personal Finance (Not Investing)
Topic: 20yr fixed, 30yr fixed, or 7/1 ARM
Replies: 48
Views: 3366

Re: 20yr fixed, 30yr fixed, or 7/1 ARM

Alright folks, so here are my numbers: 7/1 ARM: 3.375% with a 5% immediate adjustment cap (and 5% lifetime) when the lock expires. 30 year fixed: 4.125% 20 year fixed: 3.875% The 30 year fixed is also available at 4.25% with a $2000 lender credit, ARM is available at 3.625 with a $1700 credit, and ...
by DVMResident
Thu Apr 13, 2017 10:10 am
Forum: Personal Finance (Not Investing)
Topic: 20yr fixed, 30yr fixed, or 7/1 ARM
Replies: 48
Views: 3366

Re: 20yr fixed, 30yr fixed, or 7/1 ARM

ARM sounds great, but current state of the market gives me serious pause. It's hard enough to predict the future re: being in the house for >7 years. It's harder to predict what the rates are going to do between now and then. Who cares what interest rates do? ARM adjustments don't matter on two fro...
by DVMResident
Wed Apr 12, 2017 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: 20yr fixed, 30yr fixed, or 7/1 ARM
Replies: 48
Views: 3366

Re: 20yr fixed, 30yr fixed, or 7/1 ARM

I'm seeing a 0.5% to 0.625% spread on the 5/1 to 7/1 ARMs vs 30 fixed. With a 5-7 year window, I'd take the ARM and prepay the 'savings' compared to the 30 year (assuming all tax-advantaged vehicles are filled). ROI beats 5-7 year bonds and CDs. If you end up keeping the mortgage (not refi or sell) ...
by DVMResident
Sat Apr 08, 2017 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Budgeting, job choices
Replies: 17
Views: 1189

Re: Budgeting, job choices

There's a lot going on here and the bulk of it is marital and life choices. Solve those, the fiscal part will follow. OP, it's hard to give advice through the internet. It's really about communication and making decisions with your life partner. Maybe 2-4 sessions with a couples therapist would orga...
by DVMResident
Wed Apr 05, 2017 11:49 pm
Forum: Personal Consumer Issues
Topic: How best to handle disrespectful employee?
Replies: 40
Views: 3738

Re: How best to handle disrespectful employee?

Team player should be part of any job description. Causing problems for the downstream team is a performance issue and is draining company resources, i.e. other people's time, which costs salary. The message should be clear: "your over-sell tactics costs the organization time and money. This un...
by DVMResident
Wed Apr 05, 2017 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: High Income earners, whats your Tax Strategy?
Replies: 113
Views: 11275

Re: High Income earners, whats your Tax Strategy?

We keep it simple: - Max out pre-tax 401(k) - Max out mega backdoor Roth 401(k) - Backdoor Roth IRA - Donate appreciated stock, if there's a good opportunity - Keep taxable in ETFs instead of traditional mutual funds, where you can more effectively defer capital gains - Tax loss harvesting if/when ...
by DVMResident
Wed Apr 05, 2017 10:00 am
Forum: Investing - Theory, News & General
Topic: Apple breaks its silence
Replies: 24
Views: 4475

Re: Apple breaks its silence

They might even acknowledge the existence of customers who are more interested in getting some work done than in having a beautiful work of art to put on their--but hey, who am I kidding? The Chomsky thing will happen first. Do you make this type of remark to car enthusiasts? Yup, sure do. Besides,...
by DVMResident
Mon Apr 03, 2017 12:14 am
Forum: Personal Finance (Not Investing)
Topic: Young-ish bogleheads: How much (if any) social security do you expect in retirement?
Replies: 88
Views: 4661

Re: Young-ish bogleheads: How much (if any) social security do you expect in retirement?

Same age as you, OP. I plan on near $0, but that's because I plan to FIRE on my 50th. If I was planning to work to 67, I use the same guesstimate as gouverneur: x2 shortfall, which roughly half of current benefits, assuming some sort of means testing or inflationary decay (e.g. CPI-rural replacing C...
by DVMResident
Sun Apr 02, 2017 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes on next year's RSU stock vesting
Replies: 2
Views: 313

Re: Taxes on next year's RSU stock vesting

Will you be crossing an income bracket next year?
What's your bracket this year and expected next year?

2017 might be a good year for ROTH contributions/conversions and realizing gains.
by DVMResident
Fri Mar 31, 2017 2:02 pm
Forum: Personal Consumer Issues
Topic: What career helped you become wealthy?
Replies: 75
Views: 9460

Re: What career helped you become wealthy?

Saving rate is more important than high income on the path to wealth.
Read the Millionaire Next Door.

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