Search found 355 matches

by LFKB
Tue Jul 26, 2016 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Recourse for a Lender not Following through on a on a pre-approval
Replies: 12
Views: 1360

Re: Recourse for a Lender not Following through on a on a pre-approval

Is there any re-course for a mortgage provider (in this case, BofA) not coming through on a pre-approval? I assume it is just bad form and there isn't anything I can do, but I provided all my financial info to my lender (BofA) and then provided a pre-approval at 75% LTV. They came back a few weeks ...
by LFKB
Tue Jul 26, 2016 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Where were you financially when you were at 30?
Replies: 226
Views: 24000

Re: Where were you financially when you were at 30?

I am also 30 Married $2.7M mortgage ($4M home value) ~$600k in brokerage assets ~$400k in 401k/IRAs ~$100k in cash Two paid off cars No other debt Household income around $1M Just curious, what line of work are you and your spouse in to get that earning potential so young? Both in Finance (PE/hedge...
by LFKB
Fri Jul 22, 2016 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Where were you financially when you were at 30?
Replies: 226
Views: 24000

Re: Where were you financially when you were at 30?

I am also 30

Married
$2.7M mortgage ($4M home value)
~$600k in brokerage assets
~$400k in 401k/IRAs
~$100k in cash
Two paid off cars
No other debt
Household income around $1M
by LFKB
Wed Jul 20, 2016 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Recourse for a Lender not Following through on a on a pre-approval
Replies: 12
Views: 1360

Re: Recourse for a Lender not Following through on a on a pre-approval

Hypersion wrote:Do you have a backup lender?


Yes - we are working with First Republic as well who I have a lot more confidence in
by LFKB
Mon Jul 18, 2016 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Recourse for a Lender not Following through on a on a pre-approval
Replies: 12
Views: 1360

Re: Recourse for a Lender not Following through on a on a pre-approval

Is there any re-course for a mortgage provider (in this case, BofA) not coming through on a pre-approval? I assume it is just bad form and there isn't anything I can do, but I provided all my financial info to my lender (BofA) and then provided a pre-approval at 75% LTV. They came back a few weeks ...
by LFKB
Mon Jul 18, 2016 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Recourse for a Lender not Following through on a on a pre-approval
Replies: 12
Views: 1360

Recourse for a Lender not Following through on a on a pre-approval

Is there any re-course for a mortgage provider (in this case, BofA) not coming through on a pre-approval? I assume it is just bad form and there isn't anything I can do, but I provided all my financial info to my lender (BofA) and then provided a pre-approval at 75% LTV. They came back a few weeks l...
by LFKB
Wed Jun 22, 2016 11:59 am
Forum: Personal Finance (Not Investing)
Topic: What is a standard escrow fee for a home purchase?
Replies: 0
Views: 171

What is a standard escrow fee for a home purchase?

We are buying an expensive home in California and the escrow fee from our side only comes out to 0.2% of the total purchase price. At a high purchase price this amounts to several thousand dollars all for them holding the money for a few days. Is this a standard rate? Note that the 0.2% is just my p...
by LFKB
Sat Jan 02, 2016 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Savings % Target 2016?
Replies: 168
Views: 10713

Re: Savings % Target 2016?

This year we saved about 77% of our after tax. Hopefully similar to that in 2016.
by LFKB
Wed Nov 25, 2015 11:08 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a bonus this year?
Replies: 75
Views: 9399

Re: Getting a bonus this year?

Yes. I'm expecting 225% of my annual base salary this year
by LFKB
Wed Oct 28, 2015 7:25 am
Forum: Personal Finance (Not Investing)
Topic: Age when you started to max out your retirement accounts?
Replies: 111
Views: 12575

Re: Age when you started to max out your retirement accounts?

Both of us have been maxing out our 401ks since 23
by LFKB
Sun Jul 05, 2015 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: New home purchase - How much do I put down?
Replies: 9
Views: 1743

Re: New home purchase - How much do I put down?

If you think you will be in a spot where you could pay down all or a substantial amount of the principal 7 years from now, you may want to look into a 7 year ARM. Could save you a lot on the payment and then if interest rates are substantially higher 7 years from now you can pay down principal. I'd ...
by LFKB
Wed Jun 24, 2015 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question Re: Backdoor Roth IRA Contributions
Replies: 7
Views: 1074

Re: Tax Question Re: Backdoor Roth IRA Contributions

The IRS is very inconsistent in dealing with the need for amended returns. While it would be justified if they requested one in order to have a 1040 that reflected the 8606 you submitted, they may just see that you do not owe taxes and you may never hear from them. So while expecting that the IRS w...
by LFKB
Wed Jun 24, 2015 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question Re: Backdoor Roth IRA Contributions
Replies: 7
Views: 1074

Re: Tax Question Re: Backdoor Roth IRA Contributions

Since the 8606 forms are cumulative, if the return missing the 8606 was for 2012, you will need to amend the 2013 return if you did not pick up a prior basis amount on line 2 of the 2013 8606. Since 2012 did not include a distribution, only the non deductible contribution, you do not have to amend ...
by LFKB
Tue Jun 23, 2015 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question Re: Backdoor Roth IRA Contributions
Replies: 7
Views: 1074

Re: Tax Question Re: Backdoor Roth IRA Contributions

You do not need a CPA for this. Check your tax returns. For 2012, your return should include Form 8606 showing a non deductible TIRA contribution on lines 1, 3 and 14. Your 2013 return should also include an 8606 showing your 2013 contribution on line 1, 5,000 on line 2 and 10,500 on line 3. Comple...
by LFKB
Tue Jun 23, 2015 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question Re: Backdoor Roth IRA Contributions
Replies: 7
Views: 1074

Tax Question Re: Backdoor Roth IRA Contributions

I contributed $10,500 to a Roth IRA via a Traditional to Roth backdoor conversion in 2013. I recently got a notice that I owe taxes on the $10,500 which should have been reported in taxable income. I made a contribution of $5,000 in January 2013 (my first IRA contribution) related to the 2012 tax ye...
by LFKB
Tue Apr 21, 2015 11:06 pm
Forum: Investing - Theory, News & General
Topic: What Guaranteed Return Would You Require to Move All Assets
Replies: 54
Views: 4246

Re: What Guaranteed Return Would You Require to Move All Ass

Doesn't matter, wouldn't do it regardless of what was "guaranteed". If the number is too high then there isn't any way for whomever or whatever to really make good on the promise. There is no magic in this world. I can pretty much always invest better on my own bc of costs. If I am lookin...
by LFKB
Sun Apr 19, 2015 4:32 pm
Forum: Investing - Theory, News & General
Topic: What Guaranteed Return Would You Require to Move All Assets
Replies: 54
Views: 4246

Re: What Guaranteed Return Would You Require to Move All Ass

So let's say hypothetically there is a fund with a 100% guarantee to return exactly X% every year for the next 25 years. If you are to buy this fund, you are required to liquidate your entire portfolio and move all your invested capital into the fund. What is the lowest X (annual return) that you w...
by LFKB
Sun Apr 19, 2015 4:27 pm
Forum: Investing - Theory, News & General
Topic: What Guaranteed Return Would You Require to Move All Assets
Replies: 54
Views: 4246

Re: What Guaranteed Return Would You Require to Move All Ass

So let's say hypothetically there is a fund with a 100% guarantee to return exactly X% every year for the next 25 years. If you are to buy this fund, you are required to liquidate your entire portfolio and move all your invested capital into the fund. What is the lowest X (annual return) that you w...
by LFKB
Sun Apr 19, 2015 4:21 pm
Forum: Investing - Theory, News & General
Topic: What Guaranteed Return Would You Require to Move All Assets
Replies: 54
Views: 4246

Re: What Guaranteed Return Would You Require to Move All Ass

I would not need any guarantee of return to move all assets from a company that charges 2% in fees to another company that charges 0.10% in fees. At bogleheads.org, we suggest this all the time. The fund you're describing sounds like a Madoff fund and I would not move any money into it no matter ho...
by LFKB
Sun Apr 19, 2015 4:17 pm
Forum: Investing - Theory, News & General
Topic: What Guaranteed Return Would You Require to Move All Assets
Replies: 54
Views: 4246

Re: What Guaranteed Return Would You Require to Move All Ass

Also, there is a thing called an annuity that is essentially what I described so it's not "fantasy." I just phrased the question differently. Is an annuity a "fund"? That is the term you used in your question. I said specifically in my post that I intentionally used a different ...
by LFKB
Sun Apr 19, 2015 3:50 pm
Forum: Investing - Theory, News & General
Topic: What Guaranteed Return Would You Require to Move All Assets
Replies: 54
Views: 4246

Re: What Guaranteed Return Would You Require to Move All Ass

So let's say hypothetically there is a fund with a 100% guarantee to return exactly X% every year for the next 25 years. If you are to buy this fund, you are required to liquidate your entire portfolio and move all your invested capital into the fund. What is the lowest X (annual return) that you w...
by LFKB
Sun Apr 19, 2015 3:39 pm
Forum: Investing - Theory, News & General
Topic: What Guaranteed Return Would You Require to Move All Assets
Replies: 54
Views: 4246

What Guaranteed Return Would You Require to Move All Assets

So let's say hypothetically there is a fund with a 100% guarantee to return exactly X% every year for the next 25 years. If you are to buy this fund, you are required to liquidate your entire portfolio and move all your invested capital into the fund. What is the lowest X (annual return) that you wo...
by LFKB
Thu Apr 09, 2015 11:14 pm
Forum: Investing - Theory, News & General
Topic: The $1 Million Goal: Source of Motivation or Discouragement?
Replies: 172
Views: 19955

Re: The $1 Million Goal: Source of Motivation or Discouragem

It's a source of motivation for me. We hit $1.5M recently which was a milestone. I track our net worth and I find that every $100k is a baby milestone for me and every $500k feels like a big milestone.
by LFKB
Wed Apr 08, 2015 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: Might Go $4,000 AAPL
Replies: 68
Views: 6949

Re: Might Go $4,000 AAPL

What do you know that the market doesn't already know? This really is the key question, and the answer is "nothing." Apple already has an inflated price to earnings ratio due to the speculation the opening poster has mentioned. This is already taken into account into the current price. Un...
by LFKB
Tue Apr 07, 2015 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Might Go $4,000 AAPL
Replies: 68
Views: 6949

Re: Might Go $4,000 AAPL

Apple is a wonderful company. AAPL is also a quite expensive stock. 15 years ago, Microsoft stocks (MSFT) looks like a sure winner. I checked on Morningstar and the annual result on the last 15 years for MSFT is -0.32% :( If you really want to speculate, find a company and sector that is currently ...
by LFKB
Tue Apr 07, 2015 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Nailed it! $223,199/yr: magic# for making it in SF Bay Area
Replies: 117
Views: 15274

Re: Nailed it! $223,199/yr: magic# for making it in SF Bay A

$1.5 million house on $223k seems like quite the stretch. A 30 year at 4% would be ~$87k per year + ~$18k property taxes = $105k on housing alone (excluding insurance). Our joint income is around $800k and people on here tell me I shouldn't be spending $100k on housing! You left out property taxes, ...
by LFKB
Tue Apr 07, 2015 12:38 am
Forum: Investing - Theory, News & General
Topic: Mohamed El-Erian Has Most of His Money in Cash
Replies: 89
Views: 12178

Re: Mohamed El-Erian Has Most of His Money in Cash

My friend overheard him at a Range Rover dealership in Newport Beach. The employee asked him how much he made per month and his answer was "just put $2 million."
by LFKB
Mon Mar 30, 2015 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: What makes my marginal tax rate behave like this?
Replies: 15
Views: 2267

Re: What makes my marginal tax rate behave like this?

I don't know the answer to your question, but at $830k of annual dividends you sound plenty rich to hire an accountant to explain it to you
by LFKB
Mon Mar 30, 2015 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Another can I afford this house thread
Replies: 11
Views: 1337

Re: Another can I afford this house thread

I guess it depends on how much your current spend is excluding your mortgage/rent and what your after tax income is per year. The way I look at it (we are considering purchasing a first home) is: After tax income Less: normal spend (not on housing) Less: housing cost with the new mortgage (including...
by LFKB
Sun Mar 29, 2015 11:10 pm
Forum: Investing - Theory, News & General
Topic: Best Way to Visualize Compounding
Replies: 40
Views: 4406

Re: Best Way to Visualize Compounding

The way I've heard it described visually is that it's like a snowball rolling down a hill that keeps building. As the snowball gets bigger it picks up more and more snow because the surface area increases. Something along those lines.
by LFKB
Sun Mar 29, 2015 11:40 am
Forum: Investing - Theory, News & General
Topic: How many of you invest in individual stocks?
Replies: 70
Views: 7388

Re: How many of you invest in individual stocks?

I own some Google and Apple stock but that's it. I believe those two companies will continue to be the dominant technologies of this generation and they seem to be making the right moved to keep from being passed up by others. We'll see. I own about $20k in each.
by LFKB
Thu Mar 26, 2015 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: how much mortgage would you be comfortable with?
Replies: 43
Views: 5825

Re: how much mortgage would you be comfortable with?

To the other posters, I would argue that the mortgage to gross income multiple should be higher for high earning families. Don't forget, we have a very "progressive" income tax system in this country. At higher incomes, using gross income is probably not always the best idea.... I mention...
by LFKB
Thu Mar 26, 2015 10:38 am
Forum: Personal Finance (Not Investing)
Topic: how much mortgage would you be comfortable with?
Replies: 43
Views: 5825

Re: how much mortgage would you be comfortable with?

To the other posters, I would argue that the mortgage to gross income multiple should be higher for high earning families. The family making $1M a year is 10x higher in terms of income relative to the family making $100k a year, but may spend only 3x on normal monthly non housing expenses, so there...
by LFKB
Thu Mar 26, 2015 12:35 am
Forum: Personal Finance (Not Investing)
Topic: how much mortgage would you be comfortable with?
Replies: 43
Views: 5825

Re: how much mortgage would you be comfortable with?

Jeff D, A comment from thewhitecoatinvestor.com site comes to mind... "Debt never sleeps...". With one more year of focused effort, you could kill the loan debt and increase your down payment while renting. You avoid paying interest twice basically on studen loan debt and mortgage debt an...
by LFKB
Wed Mar 25, 2015 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: how much mortgage would you be comfortable with?
Replies: 43
Views: 5825

Re: how much mortgage would you be comfortable with?

OP, how much is your after tax income and how much do you spend on everything else other than housing inp a year? The key is to know your after tax income, how much you spend on everything else, and then with whatever is left come up with an allocation for X% to mortgage payments and Y% to savings. ...
by LFKB
Thu Mar 12, 2015 10:59 pm
Forum: Personal Finance (Not Investing)
Topic: Help Explain Turbo Tax Calculation of "Federal Taxes You Ow"
Replies: 2
Views: 495

Re: Help Explain Turbo Tax Calculation of "Federal Taxes You

I was able to figure it out. The table and calculators I was using do not factor in AMT, which bridged the difference.
by LFKB
Thu Mar 12, 2015 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Help Explain Turbo Tax Calculation of "Federal Taxes You Ow"
Replies: 2
Views: 495

Help Explain Turbo Tax Calculation of "Federal Taxes You Ow"

Turbo Tax says the "Federal Taxes I Owe" are $91,892. My federal taxes withheld according to Turbo Tax are $83,852 (which includes $82,414 federal taxes withheld from my W-2 and $1,438 Additional Medicare Tax from my W-2). So according to Turbo Tax I owe $8,040 in federal taxes. Turbo Tax ...
by LFKB
Sun Mar 08, 2015 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 1046

Re: Help Me Calculate My Monthly Housing Cost

You should use something like TurboTax to actually calculate the tax impact. Because of AMT and various phaseouts it's not necessarily as straightforward as you present. Ok thanks. I will look into that. My general understanding of the tax deductiblity of interest (limited to $1.1M principal value)...
by LFKB
Sun Mar 08, 2015 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 1046

Re: Help Me Calculate My Monthly Housing Cost

NotWhoYouThink wrote:One reason to model this in tax software is that these deductions may push you into AMT, or maybe you are already there. In which case there will be no federal tax savings on the property tax. Lots of moving parts here.


Which tax software do you recommend?
by LFKB
Sun Mar 08, 2015 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 1046

Re: Help Me Calculate My Monthly Housing Cost

You should use something like TurboTax to actually calculate the tax impact. Because of AMT and various phaseouts it's not necessarily as straightforward as you present. Ok thanks. I will look into that. My general understanding of the tax deductiblity of interest (limited to $1.1M principal value)...
by LFKB
Sun Mar 08, 2015 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 1046

Re: Help Me Calculate My Monthly Housing Cost

You didn't state the term of the mortgage. Here's an online Interest-only mortgage calculator . A 30 year mortgage, 7 year interest only, $ 2M amount, 2.5% results in (view report): 84 monthly payments of $4,166.67 ($50k/ year) 276 monthly payments of $9,535.61 Total payments: $2,981,829.65 Total i...
by LFKB
Sun Mar 08, 2015 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 1046

Re: Help Me Calculate My Monthly Housing Cost

You should use something like TurboTax to actually calculate the tax impact. Because of AMT and various phaseouts it's not necessarily as straightforward as you present. Ok thanks. I will look into that. My general understanding of the tax deductiblity of interest (limited to $1.1M principal value)...
by LFKB
Sun Mar 08, 2015 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 1046

Re: Help Me Calculate My Monthly Housing Cost

Why are you looking at an Interest-Only Mortgage loan? It's a lower interest rate than a fixed and still gives the flexibility to pay down principal at anytime if we choose. At 1.95% tax effected cost of debt I don't necessarily see the need to pay down principal though, I would rather have the mon...
by LFKB
Sun Mar 08, 2015 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Help Me Calculate My Monthly Housing Cost
Replies: 14
Views: 1046

Help Me Calculate My Monthly Housing Cost

We are in the market for a first home. I want to make sure I am calculating the monthly cost correctly and thinking through everything. For hypothetical purposes let's say the house is $2.75M, the mortgage is $2 million and assume a 40% tax rate. 7 year interest only loan at 2.5%: $50k per year. Cal...
by LFKB
Thu Feb 19, 2015 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: Is there a site that shows past/present market cap data?
Replies: 15
Views: 607

Re: Is there a site that shows past/present market cap data?

I don't know what the 4 to 1 rule is either. I think maybe he means that TSM is about 80% large cap and 20% mid and small cap? I think the actual percentage is 70% large, 20% mid and 10% small but it all depends on what parameters you set for small, Mid and large.
by LFKB
Thu Feb 19, 2015 10:16 pm
Forum: Investing - Theory, News & General
Topic: The 8x retirement savings rule
Replies: 83
Views: 9995

Re: The 8x retirement savings rule

So if I make $1 million per year but spend $20k per year I need $8 million to retire? This is why the rule of thumb around here is based on spend in retirement, not income pre retirement.
by LFKB
Tue Dec 09, 2014 2:46 am
Forum: Investing - Theory, News & General
Topic: Update: 6 years into Buffett's Bet With Hedge Funds
Replies: 24
Views: 3413

Re: Update: 6 years into Buffett's Bet With Hedge Funds

Not all hedge funds and private equity are bad. They are certainly more risky and less diversified, but I invested in a PE fund which is marked at 3.5x the original investment amount after just one year.
by LFKB
Mon Dec 08, 2014 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: High(ish) earner; spending too much?
Replies: 71
Views: 10565

Re: High(ish) earner; spending too much?

Sounds reasonable enough to me. I make about the same amount as you and my fiance makes a bit less than I do so combined we make quite a bit more. We are 28 and spend a decent amount (about $100k per year before rent). We probably travel 15-18 times per year with one week to week and a half trip and...
by LFKB
Mon Dec 08, 2014 1:59 am
Forum: Investing - Help with Personal Investments
Topic: Start saving for House downpayment using Wellesley?
Replies: 35
Views: 4225

Re: Start saving for House downpayment using Wellesley?

Seems reasonable to me as long as you are okay with the tax inefficiency aspect of Wellseley. It's highly unlike that you get a 20% drop as others have said; that would equate to about a 60% drop in the equity portion assuming the bonds hold up.
by LFKB
Wed Dec 03, 2014 12:56 am
Forum: Personal Finance (Not Investing)
Topic: Do we have too much house?
Replies: 45
Views: 5112

Re: Do we have too much house?

I will never understand the posters that say "if you are asking then you probably know." Clearly the OP is asking because he/she doesn't know and wants feedback from more knowledgable posters. Agree that the math is fuzzy. Impossible to answer the question without clarifying what the true ...

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