Search found 1023 matches

by DVMResident
Tue Apr 25, 2017 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Los Angeles house buying
Replies: 30
Views: 2346

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: 30
Views: 2346

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: 1093

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: 470

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: 3045

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: 4327

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: 3045

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: 3045

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: 3045

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: 3045

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: 1062

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: 3525

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: 10204

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: 4394

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: 4219

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: 265

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: 8526

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.
by DVMResident
Fri Mar 31, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Saving 50% of salary; what does it really mean?
Replies: 142
Views: 10429

Re: Saving 50% of salary; what does it really mean?

Doubt you'll find someone making $30k a year talking about saving 50% around here. Recent college grads living in their parent's proverbial basement. Not that uncommon and even the norm in some places outside the US. Great way to pay off student loans or save for a house down payment. I did somethi...
by DVMResident
Thu Mar 30, 2017 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Divorce--Equity Needed
Replies: 6
Views: 1005

Re: Divorce--Equity Needed

Is a 401(k) loan an option to buy out your spouse's equity?

A bit of market timing here, but (1) markets are high and (2) current interest rates are higher than your 3.75% 30 year fixed.
Just a question-not advice. No personal experience in this area.
by DVMResident
Mon Mar 27, 2017 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: Your Experiences with Risk Tolerance and having smaller versus larger account balances
Replies: 24
Views: 2043

Re: Your Experiences with Risk Tolerance and having smaller versus larger account balances

My plan: Accumulation phase: 80/20. I have floor ("needs") FI number and ceiling ("wants") FI number. Once hit floor FI number: move to 65/35. One hit ceiling FI number: 50/50. Thought process: during the accumulation phase, I'm willing to work longer and/or spend less to weather...
by DVMResident
Wed Mar 22, 2017 5:48 pm
Forum: Investing - Theory, News & General
Topic: What % of your income have you converted to wealth?
Replies: 105
Views: 14247

Re: What % of your income have you converted to wealth?

Never thought of this metric. Whoa, NW/gross lifetime income = 84% (ignoring tax status, which ballparks around 20% pre-/30% ROTH/50% taxable). Pretty good. Mostly from living rent free and a RE investment played out nicely. Mid-30's, school/training till 3 years ago. Was over 100% at one point, but...
by DVMResident
Wed Mar 22, 2017 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a second home in Florida- mortgage or purchase
Replies: 15
Views: 1303

Re: Buying a second home in Florida- mortgage or purchase

A $160k loan (assuming 20% down) is a messily 3.6% of the $4.5m in assets. Taking a mortgage or paying is not going to change your fiscal health.
Personally, I would just do a direct purchase (even with LTCG, which isn't defined in the OP). Keep things simple.
by DVMResident
Mon Mar 20, 2017 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: Moving from Vanguard to Fidelity (probably)
Replies: 51
Views: 4732

Re: Moving from Vanguard to Fidelity (probably)

Moving checking from Wells Fargo to a Fidelity Cash Management account If I may jump on this thread, I'm looking to also switch from WF. I've had WF for ~15 years and mostly like the number of ATMs, though my use is dramatically falling with the digital economy. Anyone care to share their experienc...
by DVMResident
Mon Mar 20, 2017 12:30 am
Forum: Investing - Help with Personal Investments
Topic: Rental Property
Replies: 8
Views: 800

Re: Rental Property

My go-to fiscal resource for RE is " What Every Real Estate Investor Needs to Know About Cash Flow And 36 Other Key Financial Measures " Frank Gallinelli. This book will walk your through the math of rentals and empower you to evaluate each property. My go-to legal and tax resources is NOL...
by DVMResident
Sat Mar 11, 2017 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Nearly paid off house; Should I sell, go back to renting and invest the equity?
Replies: 14
Views: 1306

Re: Nearly paid off house; Should I sell, go back to renting and invest the equity?

I am locked into my job for three years and may move again after that. I see no point in triggering an early move with such a short time horizon. Moving is expensive (and a pain). OTOH, this makes a better case for an accelerated pay down of the mortgage. Low interest (3-4%?) on a 3 year time horiz...
by DVMResident
Wed Mar 08, 2017 6:59 pm
Forum: Investing - Theory, News & General
Topic: Every 40-yr returns curve of the S&P500 since 1870 graphed
Replies: 40
Views: 4103

Re: Every 40-yr returns curve of the S&P500 since 1870 graphed

The striking bit for me is the variability after 40 years. This really makes the case to me why you shouldn't go 100% stock. You may get lucky or may get hosed-even after waiting 40 years! I hope for a smoother ride with a 80/20 split and DCA. It would be interesting to see this data with 80/20, 60/...
by DVMResident
Wed Mar 08, 2017 11:39 am
Forum: Forum Issues and Administration
Topic: How do YOU read Bogleheads?
Replies: 37
Views: 3305

Re: How do YOU read Bogleheads?

Chuck wrote:I use the RSS feed. It's probably just me.


Same here. Quicker and miss less.
by DVMResident
Mon Mar 06, 2017 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Poll: For those 20 yrs away from retirement, what is your current asset allocation and future changes?
Replies: 33
Views: 1960

Re: Poll: For those 20 yrs away from retirement, what is your current asset allocation and future changes?

Accumulation phase: 80/20. I have floor ("needs") FI number and ceiling ("wants") FI number. Once hit floor FI number: move to 65/35 One hit ceiling FI number: 50/50 Simple. Here's visual summary the cost of safety: https://dougcronk.files.wordpress.com/2010/09/efficient-frontier...
by DVMResident
Thu Mar 02, 2017 1:17 pm
Forum: Personal Consumer Issues
Topic: Laptop for blogging
Replies: 7
Views: 516

Re: Laptop for blogging

I would consider the new 15" 4k Lenovo Yoga 720. I like writing on Yogas because I fold it and set on surface length wise, giving you a longer page. Then blue tooth mouse and keyboard. This new version also has a GPU option and a stylus input if that's of any value (depends on your blog subject...
by DVMResident
Mon Feb 27, 2017 12:40 am
Forum: Personal Finance (Not Investing)
Topic: Protecting Aging Parrents - Advice Please
Replies: 25
Views: 2770

Re: Protecting Aging Parrents - Advice Please

Many people with dementia have a gradual decline, and use what I think of as "muscle memory" to continue functioning in their daily lives I agree. I think we're in this phase. The baffling part is he keep working part time and is relatively young. On the other hand, speaks in increasingly...
by DVMResident
Mon Feb 27, 2017 12:14 am
Forum: Personal Consumer Issues
Topic: Do Boglehead DIY or Pay a Professional?
Replies: 95
Views: 7493

Re: Do Boglehead DIY or Pay a Professional?

I do varies tasks for learning and understanding what a good results looks like. Then, if I like the task, I keep it up. If I dislike it, I weigh the cost against my time and decide the value added of outsourcing the task. I hate cutting grass and like doing taxes. I do the taxes. I pay someone to c...
by DVMResident
Sun Feb 26, 2017 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate vs debt payments
Replies: 34
Views: 2337

Re: Real estate vs debt payments

I would buy it. A $720k house ($520k purchase plus $200k addition) is a perfectly reasonable housing expenditure on $500k salary. Moreover, you have an excellent saving rate already: paid off $220k student loans and built up $100k 401(k) in 4 years on a $250k salary. Besides, you can always sell it ...
by DVMResident
Sat Feb 25, 2017 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: Protecting Aging Parrents - Advice Please
Replies: 25
Views: 2770

Re: Protecting Aging Parrents - Advice Please

@HueyLD: “The bigger challenge will be to get him to acknowledge it. The OP may have to go to the court and that won't be pretty or easy.” Agreed. I’m trying to figure out what to do and then will worry about how to achieve buy-in from him and the other child. Usually, I’m pretty uncomfortable getti...
by DVMResident
Sat Feb 25, 2017 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Protecting Aging Parrents - Advice Please
Replies: 25
Views: 2770

Protecting Aging Parrents - Advice Please

My FIL is almost 70 and unfortunately is starting to have cognitive decline. He's still independent and semi-retired working a few days a week for the former employer. My FIL is fortune enough to mass a decent nest egg and has a hefty pension. It's getting to the point where he'll sign anything put ...
by DVMResident
Tue Feb 21, 2017 11:57 pm
Forum: Personal Consumer Issues
Topic: Desktop Computer - Still relevant? Good investment?
Replies: 76
Views: 6550

Re: Desktop Computer - Still relevant? Good investment?

These days the functional and price difference between laptops and desktops is small and shrinking. The desktop's major advantage is not price anymore, but rather heat control, which is important for protracted heavy load actives like games and graphic renders. You can always buy a laptop, hook up ...
by DVMResident
Tue Feb 21, 2017 2:50 pm
Forum: Personal Consumer Issues
Topic: Desktop Computer - Still relevant? Good investment?
Replies: 76
Views: 6550

Re: Desktop Computer - Still relevant? Good investment?

These days the functional and price difference between laptops and desktops is small and shrinking. The desktop's major advantage is not price anymore, but rather heat control, which is important for protracted heavy load actives like games and graphic renders. You can always buy a laptop, hook up p...
by DVMResident
Mon Feb 20, 2017 6:33 pm
Forum: Investing - Theory, News & General
Topic: economics of landlording
Replies: 46
Views: 4347

Re: economics of landlording

...I'm not attached to this property emotionally, in any way. Just want to keep it if it is a good complement to a traditional 60/40 indexed portfolio, and want to dump it if it's a drag. If it's somewhere in the middle - which has been my sense - I will probably keep it for the diversification ben...
by DVMResident
Mon Feb 20, 2017 10:42 am
Forum: Investing - Theory, News & General
Topic: economics of landlording
Replies: 46
Views: 4347

Re: economics of landlording

Not quite enough information provided to give an exact recommendation. Some considerations: Negatives: *$1.5k/mo on a $250k property is not very attractive (middle-low for SFH) *Most RE markets are richly valued and might be good time to get out *Requiring a manager Positives: *On-cash returns are b...
by DVMResident
Sun Feb 19, 2017 11:09 am
Forum: Investing - Help with Personal Investments
Topic: If you were going to drop down to 15% bracket for one year...
Replies: 7
Views: 1030

Re: If you were going to drop down to 15% bracket for one year...

ROTH conversion is better assuming you don't need the assets for 5+ years.
by DVMResident
Mon Feb 13, 2017 1:13 am
Forum: Personal Finance (Not Investing)
Topic: Any ideas of for a 2nd job / career?
Replies: 15
Views: 2045

Re: Any ideas of for a 2nd job / career?

The headwind you'll face is all that extra income will be taxed at the margin. A second job earning $2-5K/month (net? gross?) would be very inefficient. Have you considered land lording/rentals? Not for everyone, but it's (1) tax efficient (offset income by mortgage interests and depreciation) and (...
by DVMResident
Sat Feb 11, 2017 7:42 pm
Forum: Investing - Theory, News & General
Topic: 'Won the game', but what factors could potentially derail it?
Replies: 57
Views: 4593

Re: 'Won the game', but what factors could potentially derail it?

Divorce is mentioned a couple times. The 30x annual income-not annual expenses-defined in the OP is a lot money. A crazy amount of money. Even if a divorce takes half, that's still 15x annual income. This hypothetical person is still okay to retire if the expenses (less one spouse):annual income rat...
by DVMResident
Sat Feb 11, 2017 12:29 am
Forum: Personal Finance (Not Investing)
Topic: Tax on rental income.
Replies: 10
Views: 684

Re: Tax on rental income.

Didn't see it mentioned above: rental income is generally treated as unearned income. Unearned income is treated a little different than earned income, e.g. wages reported on W-2s. Unearned income is not subject to payroll taxes, but is subject to ACA's Medicare 3.8% tax over certain AGI thresholds ...
by DVMResident
Thu Feb 09, 2017 1:39 pm
Forum: Personal Consumer Issues
Topic: Any books really change your outlook on life?
Replies: 270
Views: 42055

Re: Any books really change your outlook on life?

The Selfish Gene, especially the sections on altruism
Strength Finders
Taxing Ourselves, a non-political discussion of various tax structures and consequences of each system
by DVMResident
Wed Feb 08, 2017 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: What expected % return should a longterm investor use?
Replies: 73
Views: 9688

Re: What expected % return should a longterm investor use?

The more usual approach is to assume different probabilities for different possible answers and plot a range of chances for different outcomes. While this does not actually remove the uncertainty in guessing the future, it at least allows one to appreciate that said uncertainty exists and to attemp...
by DVMResident
Tue Feb 07, 2017 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Sell rental property?
Replies: 11
Views: 1326

Re: Sell rental property?

@DVMResident That's the thing I'm concerned about... is that all the gains go into the mortgage. But I can see that I'm definitely gaining on this house with little input on my part. As for the PITI, this was a VA loan without a down payment and does not require PMI. The monthly breakdown is princi...
by DVMResident
Mon Feb 06, 2017 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Sell rental property?
Replies: 11
Views: 1326

Re: Sell rental property?

The rent:market price is middle-high for a SFH (0.7%/month) and the returns:invested cash are excellent because the heavy, super cheap leverage. User 'petulant' already did the rough estimate of returns on cash for you. However, all the gains are going to the mortgage, keeping them illiquid. This sh...
by DVMResident
Thu Feb 02, 2017 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: At what point (if ever) it is OK to pause retirement contribution to buy a house?
Replies: 29
Views: 2180

Re: At what point (if ever) it is OK to pause retirement contribution to buy a house?

On a side note, if you have access to pre-tax deduction like a tIRA or 401(k), it's better at your income. How it is better if i am in 15% tax bracket? please explain. There's an idea floating around that having some money in a pretax is good to fill out the lowest tax brackets in retirement becaus...
by DVMResident
Thu Feb 02, 2017 11:20 am
Forum: Personal Finance (Not Investing)
Topic: At what point (if ever) it is OK to pause retirement contribution to buy a house?
Replies: 29
Views: 2180

Re: At what point (if ever) it is OK to pause retirement contribution to buy a house?

If you will be living in the US when retired, I think it is a good idea to buy a house AND have it paid off by the time you retire. That will lower your retirement expenses as rent will surely keep growing. If your wife wants to buy a house too, is she willing to work full time and put all her inco...
by DVMResident
Mon Jan 30, 2017 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy for Purchasing a House
Replies: 21
Views: 2503

Re: Strategy for Purchasing a House

(Is there any other strategy?) +1 vote in the Boglehead echo chamber to not buy. I think it's a stretch in the face of numerous unknown like if your spouse will continue to work. But if you're going to do this anyways...here's an idea that potentially lowers costs in the short-term and provides goo...
by DVMResident
Sat Jan 28, 2017 11:51 pm
Forum: Personal Finance (Not Investing)
Topic: Determining max amount to spend on a house?
Replies: 27
Views: 3447

Re: Determining max amount to spend on a house?

Somebody please explain to me the attitude favoring taking a mortgage when it's not entirely necessary. Is this not the same as investing on margin? IB lets you borrow at 2% declining to < 1% on larger amounts. Can one really get a mortgage that charges < 1% after tax deductions? Advantage: liquidi...

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