Search found 1203 matches

by DVMResident
Sat May 26, 2018 12:32 am
Forum: Investing - Help with Personal Investments
Topic: recommended Roth percentage of total investments
Replies: 15
Views: 2205

Re: recommended Roth percentage of total investments

I have an opportunistic view of ROTH space: fill when marginal rates are low. Examples include layoff years, years when a spouse isn't employed, etc. or when all pre-tax space is already filled using a backdoor. I let the tax bracket guide me rather than trying to force some fixed ratio. For most pe...
by DVMResident
Thu May 24, 2018 12:38 pm
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 89
Views: 5682

Re: Renting vs Owning Your Home

ralph124cf wrote:
Thu May 24, 2018 12:09 pm
The best of all possible worlds would be for you and a trusted friend to buy nice houses and rent them to each other.

The IRS frowns on this arrangement, for some reason.

Ralph
^ Is this true? I've never seen any IRS guidance against this assuming the rent is at ~market rate.
by DVMResident
Tue May 22, 2018 5:47 pm
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 51
Views: 4902

Re: Rob Arnott:index Investors Buy High, Sell Low

Rick Ferri wrote:
Fri May 18, 2018 9:36 am
Don't listen to the arguments. Look at the data. If Rob is right, and this buy-high sell-low phenomenon in the markets is so easy to avoid, where is the outperformance by active managers?
Can we call this question the Ferri paradox?

The Fermi paradox of the investing world :wink:
by DVMResident
Tue May 22, 2018 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 132
Views: 8173

Re: Dave Ramsey it or keep low interest debt

And I would love to hear what financial risks there are to borrowing at 0% and investing in US treasuries yielding 2.5% If you have collateral in (near) cash, like the car loan example posted above, there is none for all practical purposes. If you don't have the collateral, there's liquidity risk. ...
by DVMResident
Tue May 15, 2018 10:09 am
Forum: Personal Consumer Issues
Topic: College laptop for fall 2018 freshman
Replies: 82
Views: 4556

Re: College laptop for fall 2018 freshman

Another vote for Dell XPS 13 or Lenovo 720.

The XPS 13 2-in-1 version and Lenovo 720 both has pen/stylus inputs, which is useful for an art student.
by DVMResident
Sun May 06, 2018 5:49 pm
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 168
Views: 16980

Re: What Percentage CASH are you?

Fixed at 2x monthly expenses, AKA ~1.6% and shrinking as a fraction.
Bonds, CDs, and MM liquidate fast enough that most people (myself included) really don't need to hold cash.
by DVMResident
Thu May 03, 2018 10:57 am
Forum: Personal Finance (Not Investing)
Topic: Buying a house and High tax state.. Does it make sense anymore??
Replies: 28
Views: 2189

Re: Buying a house and High tax blue state.. Does it make sense anymore??

To the OP's question, I don't think the tax changes have been fully priced into the market prices, yet. Markets change. Don't worry about the SALT deductions too much. If you're agonist on the lifestyle, just keep running buy vs rent calculators and buy when it makes sense for you. Your landlord has...
by DVMResident
Mon Apr 30, 2018 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: 401K vs Rental Property
Replies: 14
Views: 1007

Re: 401K vs Rental Property

I'm confused by the OP. Do you have a rental? Apparently he is of the mind that once one has maxed out their 401K, the next best investment in the world is rental property 8-) Given the quality and clarity in the posts, I'd going to go with 'no, don't buy a rental.' Read a few books (you can find r...
by DVMResident
Mon Apr 30, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: 401K vs Rental Property
Replies: 14
Views: 1007

Re: 401K vs Rental Property

I'm confused by the OP. Do you have a rental?
by DVMResident
Sat Apr 28, 2018 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Company has Fidelity...Is Brokeragelink good or bad?
Replies: 27
Views: 1364

Re: Company has Fidelity...Is Brokeragelink good or bad?

I also the Fido Brokarage link. It's great, but I don't really use because our plan funds are also great. The Fido link gives access to Fido funds at no fee (at least in our plan) and any other fund families for a transaction cost. I suggest reconsidering the Treasury Bond index fund (FIBAX). It's a...
by DVMResident
Thu Apr 26, 2018 11:39 pm
Forum: Personal Consumer Issues
Topic: How did you tell the boss you're leaving/retiring?
Replies: 129
Views: 9249

Re: How did you tell the boss you're leaving/retiring?

PS - one month severance pay per year of service?? On which planet is this company? 1 month/ year of service does sound excessive. But I did receive a graduated severance package from a former employer: years 1 - 5: 1 week salary/year of service years 6 - 10: 2 weeks salary/year of service years 11...
by DVMResident
Tue Apr 24, 2018 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Cashing out of the Bay Area
Replies: 84
Views: 10382

Re: Cashing out of the Bay Area

The SF Bay area housing is always in demand. Where else can you get great weather, prop 13 make you keep your house longer for more efficient property tax than out of state. Sure, it's always in demand, but we still get booms and busts like everyone else. The weather wasn't any different in 2010-20...
by DVMResident
Fri Apr 20, 2018 9:24 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 31015

Re: KF's simple rules to achieve FI

Even as a follow anti-buying person, this second house rule is silly. There are so many markets where buying is cheaper than renting. If buying is cheaper than renting, buying can help you stablize COL and achieve Rule #1: Save 1 year of your current annual expense every year. DVMResident, I live i...
by DVMResident
Fri Apr 20, 2018 8:25 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 31015

Re: KF's simple rules to achieve FI

Even as a follow anti-buying person, this second house rule is silly. There are so many markets where buying is cheaper than renting. If buying is cheaper than renting, buying can help you stablize COL and achieve Rule #1: Save 1 year of your current annual expense every year. DVMResident, I live i...
by DVMResident
Fri Apr 20, 2018 7:04 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 31015

Re: KF's simple rules to achieve FI

Folks, Rule #2 Do not overspend on house, car, and college education. At engineer's income level, as long as he/she do not overspend on those large expenses, he/she can save 1 year of annual expense every year. KlangFool So how do you define “overspend” in terms of the items above? I know that you ...
by DVMResident
Fri Apr 13, 2018 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Could you support family on 1 income?
Replies: 88
Views: 6086

Re: Could you support family on 1 income?

Now, if we had stayed in our old house that we bought back in 2011 in a non-desirable area due to crime (mainly county issue not so much neighborhood), and terrible school system I still don't think we could. Mortgage at the time was a 15 yr ... Our expenses now are total of $4,400 with a more expe...
by DVMResident
Fri Apr 13, 2018 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Megacorp with shifting management: coast or move on?
Replies: 2
Views: 640

Megacorp with shifting management: coast or move on?

I am young (mid-30’s) in my career and could use outside perspectives. Background : There are serious changes in my management. I was hired into an R&D role ~4 years back into IMO a bad design with questionable productivity and value-add, but unique and without firm bench marks. Management really di...
by DVMResident
Mon Apr 09, 2018 12:02 am
Forum: Personal Finance (Not Investing)
Topic: Hold or sell rental property? Better for taxes to sell during retirement?
Replies: 10
Views: 805

Re: Hold or sell rental property? Better for taxes to sell during retirement?

Like other posters have said, the deferred/pending maintenance couple with a low-income area makes the downside worse than the upside. There will very likely be some tax benefit to delaying the sale. The recapture tax will be what it is, but the LTCG portion will benefit in a zero income year. There...
by DVMResident
Fri Apr 06, 2018 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: Any advice for 1st time landlord
Replies: 42
Views: 3425

Re: Any advice for 1st time landlord

My go-to investing 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 help you draw your own conclusions about renting:selling. My go-to legal and tax resources is NOLO: Every Landlord's Tax Ded...
by DVMResident
Sun Apr 01, 2018 8:02 pm
Forum: Investing - Theory, News & General
Topic: The "American companies I invest in already have international exposure" argument --- valid or not?
Replies: 139
Views: 10672

Re: The "American companies I invest in already have international exposure" argument --- valid or not?

The one angle I find hard to model/answer with math are rare but massive risks. There are a number of conditions (e.g. hot wars, cold wars, trade wars, meteors, etc plus risks yet to be recognized) that may reduce American company competitiveness in other parts of the world. I consider international...
by DVMResident
Fri Mar 30, 2018 10:38 am
Forum: Personal Finance (Not Investing)
Topic: How Do You Value Your Home for Net Worth Purposes?
Replies: 150
Views: 9625

Re: How Do You Value Your Home for Net Worth Purposes?

Cash-on-sale should be included in NW calculations.
by DVMResident
Thu Mar 29, 2018 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity 4-in-one
Replies: 9
Views: 1248

Re: Fidelity 4-in-one

Yes now that you mention it, it is interesting. I like Vanguard LifeStrategy Moderate which has the international bond component, and roughly approximates the total stock+bond market. That would be the fund I would compare to as far as performance. FFNOX moves almost lock-in-step with Vanguard Life...
by DVMResident
Wed Mar 28, 2018 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Los Angeles Condo Purchase Advice
Replies: 53
Views: 3766

Re: Los Angeles Condo Purchase Advice

IMO with kids in the plan in a couple years, a West Hollywood condo is not the way to go. I'd just enjoy your youth renting in a cool place and not bother with a purchase. Priorities will change. If you had a huge itch to buy and depending on your commute, I'd be looking at Culver, West Wood (east)/...
by DVMResident
Sat Mar 24, 2018 10:41 pm
Forum: Personal Consumer Issues
Topic: Big time home inspection issues
Replies: 44
Views: 5237

Re: Big time home inspection issues

Everyone getting that inspection results should have second thoughts. #1, #2, #3, #6, #7, +/- #5 +/- #8 sound like gut and rehab. Get estimates and see what the seller is willing to do. You are in a really strong negotiation position now. Buyers willing to deal with these issues will be few and far ...
by DVMResident
Fri Mar 23, 2018 6:34 pm
Forum: Investing - Theory, News & General
Topic: Mega backdoor roth or invest in real estate
Replies: 4
Views: 603

Re: Mega backdoor roth or invest in real estate

Here's my 2 cents: As a landlord, I want to be compensated for the additional risk and work. My personal threshold is 3x RE ROI on cash (cash-flow + equity build + 2% appreciation) over forward looking returns of AA to purchase and 2x to keep an already owned RE. Taxes included. Recalculated at ever...
by DVMResident
Mon Mar 19, 2018 1:53 pm
Forum: Personal Consumer Issues
Topic: 2018 Honda Accord LX ... is this a good deal?
Replies: 44
Views: 3688

Re: 2018 Honda Accord LX ... is this a good deal?

The 2018 Accord Hybrid starts selling this Friday. Maybe playing a role in the pricing. Following up on official fuel economy numbers, Honda has announced when the 2018 Honda Accord Hybrid midsize sedan goes on sale, and how much it will cost. It goes on sale on March 23, and it could cost you far l...
by DVMResident
Fri Mar 16, 2018 9:51 am
Forum: Investing - Help with Personal Investments
Topic: what to do with 1 million in hand..
Replies: 23
Views: 3682

Re: what to do with 1 million in hand..

Simple approach: taxable accounts like gotester2000 suggested. That statement below makes me thinks a Betterment 'set & forget' is a good option for you. VGT- VANGUARD INFORMATION. // Im in IT field, so I bought this one, since March 2017, making good money, VHT- VANGUARD HEALTH CARE ETF. // wife is...
by DVMResident
Sat Mar 10, 2018 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: 3/3 ARM vs 5/5 ARM Decision Analysis
Replies: 15
Views: 1324

Re: 3/3 ARM vs 5/5 ARM Decision Analysis

Love the calculating the range of possibilities.

What are you doing with savings?
Going to principle? Investing (taxable, tax advantaged accounts)?
by DVMResident
Fri Mar 09, 2018 1:09 am
Forum: Personal Finance (Not Investing)
Topic: MD-Phd (Harvard) vs MSTP (School X)
Replies: 44
Views: 3788

Re: MD-Phd (Harvard) vs MSTP (School X)

Regarding length of time in program, I negotiated with my PhD advisor to limit PhD to 4 years. Straight PhD can take from 3-7 years. With med school and residency in the works a PhD > 4 years shouldn't be an option. All the more reason to make this choice based on PhD mentor. He can do his postdoc ...
by DVMResident
Fri Mar 09, 2018 12:56 am
Forum: Personal Finance (Not Investing)
Topic: MD-Phd (Harvard) vs MSTP (School X)
Replies: 44
Views: 3788

Re: MD-Phd (Harvard) vs MSTP (School X)

I would advise your child to pick the school with a mentor that suits him for the MD PhD program since research is his interest. Harvard or whatever, don't get sucked in by the reputation, his job prospects will ultimately depend on his papers in the PhD portion of his training, not where his mento...
by DVMResident
Tue Mar 06, 2018 12:39 pm
Forum: Personal Consumer Issues
Topic: 30 year fixed vs 7 year ARM
Replies: 37
Views: 2762

Re: 30 year fixed vs 7 year ARM

If you can afford the payment on a 15 year, that might be a way to split the difference on the rates and have less risk. I know the others are locked so maybe that isn't an option. You can target to payoff an ARM in 15 years (although the monthly payment/recast will adjusted back to 30 years schedu...
by DVMResident
Tue Mar 06, 2018 11:55 am
Forum: Personal Consumer Issues
Topic: 30 year fixed vs 7 year ARM
Replies: 37
Views: 2762

Re: 30 year fixed vs 7 year ARM

If you can afford the payment on a 15 year, that might be a way to split the difference on the rates and have less risk. I know the others are locked so maybe that isn't an option. You can target to payoff an ARM in 15 years (although the monthly payment/recast will adjusted back to 30 years schedu...
by DVMResident
Tue Mar 06, 2018 10:38 am
Forum: Personal Consumer Issues
Topic: 30 year fixed vs 7 year ARM
Replies: 37
Views: 2762

Re: 30 year fixed vs 7 year ARM

Thank you all for all the responses. I gathered a few more details, and read a little more about the ARMs so I truly understand them. A bit more about our situation: we do and will continue to max out all our tax advantaged accounts (401k, HSA, 529 if/when we have kids) and we save extra in a taxab...
by DVMResident
Mon Mar 05, 2018 12:06 pm
Forum: Personal Consumer Issues
Topic: 30 year fixed vs 7 year ARM
Replies: 37
Views: 2762

Re: 30 year fixed vs 7 year ARM

Would the potential increase really be a hardship? How long do you plan to stay there? I lean towards the 7 ARM and putting the extra $384/month (or more) towards the principle. Most people should do this as the average person only live in their SFH for 9 years and are not well served by 30 years lo...
by DVMResident
Thu Feb 22, 2018 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: Do you rent even if you can afford to buy?
Replies: 82
Views: 9415

Re: Do you rent even if you can afford to buy?

It's apples to oranges. Homeowner expenses include repairs and maintenance. Not so renting. Examples: replacing our roof cost $8,000, pest control is about $800 per year. You'll have to pay to replace the dead refrigerator, broken dishwasher, and malfunctioning air conditioner. Crack open the walle...
by DVMResident
Thu Feb 22, 2018 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Do you rent even if you can afford to buy?
Replies: 82
Views: 9415

Re: Do you rent even if you can afford to buy?

We do. The main reason is it's cheaper in our VHCOLA (0.24%/mo rent to market price). A 1%/mo rent to market price makes a very clear 'buy' signal. 0.5~1%/mo is a grey area. OP, I'd be a little careful with the buy vs rent calculators outputs. There are couple assumptions which you can't know in adv...
by DVMResident
Wed Feb 21, 2018 11:33 pm
Forum: Investing - Help with Personal Investments
Topic: Owe IRS $33K, need help with tax planning for 2018
Replies: 24
Views: 4073

Re: OWE IRS $33K, NEED HELP WITH TAX PLANNING FOR 2018

Wow, 2 kids with one on the way, full time work plus side gigs, and a rental. Couple rambling thoughts: -HSA -Rental: too late for your current rental, but I'd seriously consider a mortgage for the future units. To buy cash, you have to use expensive after-tax dollars and the interest is fully deduc...
by DVMResident
Wed Feb 21, 2018 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Interested on opinions on paying off low-rate ARM
Replies: 23
Views: 993

Re: Interested on opinions on paying off low-rate ARM

It helps me because it derisks my life circumstances... If I don't pay it and instead invest the proceeds, there is an outcome where I say lose 50% in equities, see my income cut dramatically, and now have to service a mortgage note at over double the yearly interest. I disagree. Liquidity reduces ...
by DVMResident
Wed Feb 21, 2018 12:16 am
Forum: Investing - Help with Personal Investments
Topic: Priority of Investments in California?
Replies: 5
Views: 721

Re: Priority of Investments in California?

There is no 25% bracket for 2018. Recommend rechecking brackets with the higher deductions and wider brands to see if you slipped into the 12%. May change priorities a bit.
by DVMResident
Tue Feb 20, 2018 11:36 pm
Forum: Personal Finance (Not Investing)
Topic: condo rental and emotional support animals issues
Replies: 24
Views: 3237

Re: condo rental and emotional support animals issues

Be prepared for people to say the animal is an ESA when it's simply a pet they didn't want to pay extra for. And be prepared for animals other than cats and dogs - apparently things like snakes, turkeys, chickens and hamsters provide emotional support. Also, I'm not sure that ESAs fall under the AD...
by DVMResident
Sat Feb 17, 2018 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: Sanity Check on Primary/Rental Purchase: killing cash-flow
Replies: 24
Views: 1755

Re: Sanity Check on Primary/Rental Purchase: killing cash-flow

I've slept on it and run multiple simulations. I'm really not comfortable with our budget that being that tight without hefty reserves. I've decided to low-ball an offer of $1.1m. If accepted, our (near) cash-reserves will be mid-5 digits (realtor fee is 1%...might be able to recapture some of that ...
by DVMResident
Sat Feb 17, 2018 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Sanity Check on Primary/Rental Purchase: killing cash-flow
Replies: 24
Views: 1755

Re: Sanity Check on Primary/Rental Purchase: killing cash-flow

In my opinion this property would not qualify for a rental investment. The monthly rent to purchase price does not pencil out. If the numbers don't work when you buy it, they will never work. It's not an investment. Or, it is to the extent residential homes can be an investment. Whatever side of th...
by DVMResident
Sat Feb 17, 2018 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Sanity Check on Primary/Rental Purchase: killing cash-flow
Replies: 24
Views: 1755

Re: Sanity Check on Primary/Rental Purchase: killing cash-flow

@ riverguy, FBN2014, and Bwlonge: You're both right. This is not a investment property. Investment properties in coastal CA is basically non-existent. It's a mechanism by which to lock in my housing costs in a VHCOLA. There are a couple questions in these posts: Appraisal: nope, haven't gotten there...
by DVMResident
Sat Feb 17, 2018 1:01 am
Forum: Personal Finance (Not Investing)
Topic: Rent or Sell - DC Version
Replies: 15
Views: 1187

Re: Rent or Sell - DC Version

Iorek wrote:
Sat Feb 17, 2018 12:47 am
DVMResident wrote:
Fri Feb 16, 2018 12:27 pm


True, but you just have to live there for 2 of the last 5 years. You can rent for two years, list in spring/summer 2020, and then sell.
Because of DC laws I would be cautious about this approach.
Which DC law(s)?
by DVMResident
Sat Feb 17, 2018 12:56 am
Forum: Personal Finance (Not Investing)
Topic: Sanity Check on Primary/Rental Purchase: killing cash-flow
Replies: 24
Views: 1755

Re: Sanity Check on Primary/Rental Purchase: Killing cash-flow

Great thoughts and questions. Given that you like the location and school district and seem like someone who will do their homework I would offer a few comments. Sounds like you have used a spreadsheet or some form to calculate this idea. I would encourage you to either buy a RE investor app or adju...
by DVMResident
Sat Feb 17, 2018 12:03 am
Forum: Personal Finance (Not Investing)
Topic: Sanity Check on Primary/Rental Purchase: killing cash-flow
Replies: 24
Views: 1755

Sanity Check on Primary/Rental Purchase: killing cash-flow

Stats Age: 35/38 + small kid Income: house hold income ~$200k/yr, split with me $135k + Bonus (bonus targeted at $22k, fairly predictable) and spouse at $47k/yr Debt: $33k car loan @0%, 4.5 years left All accessible funds--including ER: $274k + $15k incoming bonus net of taxes Retirement accounts: ...
by DVMResident
Fri Feb 16, 2018 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Rent or Sell - DC Version
Replies: 15
Views: 1187

Re: Rent or Sell - DC Version

What are the associated costs (taxes, HOA, etc.)? Do you have other good uses for the cash, i.e. paying debt down or filling up tax advantaged account? How many other units are rented in building/complex? If close to 25%, I would sell now. The rent:market price and ROI on equity are okay. Not the be...
by DVMResident
Thu Feb 15, 2018 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Did you learn anything from the market correction?
Replies: 160
Views: 12074

Re: Did you learn anything from the market correction?

Reflecting on this last correction, I really enjoying my balanced funds. Work and family life was busy during the correction. Still is. I don't have the mental band width to watch re-balancing bands. Automating the process is really nice during corrections. :sharebeer
by DVMResident
Wed Feb 14, 2018 11:34 pm
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 81
Views: 10057

Re: Can someone help me explain to my wife...?

Show this and ask her to promise you won't miss the best days:

Image
by DVMResident
Tue Feb 13, 2018 11:46 pm
Forum: Investing - Help with Personal Investments
Topic: Buy or Rent under new Tax Law
Replies: 20
Views: 1915

Re: Buy or Rent under new Tax Law

Assuming 20% down with a 30 year 4.5% fixed on a $800k house, your PI $3,242/mo plus tax $1,416/mo (assuming my googling if NJ taxes in correct) plus insurance, maintenance, utilities, and the opportunity cost of the down payment. Only <$1,000/mo in principle reduction for the first 5 years (at ~92...