Search found 30 matches

by beth65
Wed Sep 20, 2017 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Re: Advise on what to do with additional savings

We have a brokerage account with almost no money currently that is one place we can transfer money and make investments. The "taxable IRA” part was in reference to whether we can take a deduction on any IRA contribution since there is no eligibility for an employer plan for the first 12 months, but ...
by beth65
Wed Sep 20, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Re: Advise on what to do with additional savings

That was my thought. I generally follow the prioritization from MMM: WHAT 0. Establish an emergency fund to your satisfaction 1. Contribute to your 401k up to any company match 2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield. 3. Max HSA 4. Max Traditional ...
by beth65
Wed Sep 20, 2017 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Re: Advise on what to do with additional savings

Is there any way in which we could be eligible to backdoor a Roth this year since we cannot contribute to an employer plan for 12 months? Does the IRA that each of us have completely prevent eligibility, or is there a way to do it without penalty or audit? Again, I only see one IRA. Do you have one...
by beth65
Wed Sep 20, 2017 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Re: Advise on what to do with additional savings

Is there any way in which we could be eligible to backdoor a Roth this year since we cannot contribute to an employer plan for 12 months? Does the IRA that each of us have completely prevent eligibility, or is there a way to do it without penalty or audit?
by beth65
Tue Sep 19, 2017 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Re: Advise on what to do with additional savings

It appears your situation is in transit. Just general all round advice.... You have a lot of debt but none of it is really high interest rate and you apparently do/will have good income. As a minimum, you want to fill two work plans (401k, 403b, etc) when they are available before considering payin...
by beth65
Mon Sep 18, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Re: Advise on what to do with additional savings

Married couple, both 37, 2 kids. Heavily divided on where to invest additional savings. Spouse wants to invest in more ETF’s, I am questioning if we need further diversification than just stock/bond/international mix. Or should we pay off debt sooner/put more towards debt? Our interest rates are no...
by beth65
Mon Sep 18, 2017 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Re: Advise on what to do with additional savings

Our household income nets 200k a year (AGI is over 350k), so 100k is 6 months for emergency. We would not be comfortable with a lower amount at this point. Okay, but just to confirm, your necessity expenses are $200k/yr? That is what the emergency fund is for - necessities. You sound fairly savvy a...
by beth65
Mon Sep 18, 2017 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Re: Advise on what to do with additional savings

I have not contributed in 5 years, and the total balance went from 54k to 72k in less than 3 years, but I never spent time to break down the numbers. I do plan to transfer the account to a brokerage in the next few weeks. If the account went from 54k to 72k, my math indicates that is a 33% increase...
by beth65
Sun Sep 17, 2017 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Re: Advise on what to do with additional savings

Retirement - Her - $72k in a ML fund managed by a FI at a discount family rate Tax Filing Status: Married filing joint Tax Rate - 33% Federal, 6% State State - GA beth65, 1) Do you contribute to the max of both 401K? You are paying combined 33% + 6% = 39% tax. You should contribute 2 X 18K = 36K. P...
by beth65
Sun Sep 17, 2017 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Re: Advise on what to do with additional savings

$100k in the emergency fund seems like a large amount. Do you need that much? I'd probably use $13k and pay off the car loan right away. You're paying 2.4% interest and the emergency fund is only yielding you about 0.7% after tax. You're relatively young and have a low-interest mortgage for only 15...
by beth65
Sun Sep 17, 2017 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Re: Advise on what to do with additional savings

Retirement - Her - $72k in a ML fund managed by a FI at a discount family rate Tax Filing Status: Married filing joint Tax Rate - 33% Federal, 6% State State - GA beth65, 1) Do you contribute to the max of both 401K? You are paying combined 33% + 6% = 39% tax. You should contribute 2 X 18K = 36K. P...
by beth65
Sun Sep 17, 2017 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: Advise on what to do with additional savings
Replies: 27
Views: 2723

Advise on what to do with additional savings

Married couple, both 37, 2 kids. Heavily divided on where to invest additional savings. Spouse wants to invest in more ETF’s, I am questioning if we need further diversification than just stock/bond/international mix. Or should we pay off debt sooner/put more towards debt? Our interest rates are not...
by beth65
Tue Jul 18, 2017 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Paying off debt vs. max savings
Replies: 53
Views: 5901

Re: Paying off debt vs. max savings

I follow these boards somewhat frequently, and I know that many people here are more fiscally conservative, but why do so many people always recommend paying off any debt first? Why is debt-free always the way to go? Because many of us, along with millions of Americans, have been burned badly with ...
by beth65
Tue Jul 18, 2017 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Paying off debt vs. max savings
Replies: 53
Views: 5901

Re: Paying off debt vs. max savings

Both me and my DW now have fairly stable jobs with a pretty high rate of income (combined +/- $150k/yr, with pay raises of abt 5%/yr), after many years of low-paying jobs, graduate school, time-off for kids, etc. At this point we can max out our 401(k)/457(b) plans with no problem. We also have som...
by beth65
Tue Jul 18, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Paying off debt vs. max savings
Replies: 53
Views: 5901

Re: Paying off debt vs. max savings

I follow these boards somewhat frequently, and I know that many people here are more fiscally conservative, but why do so many people always recommend paying off any debt first? Why is debt-free always the way to go? I have read so many books on good debt vs bad debt (Thomas Anderson's The Value of ...
by beth65
Mon Jul 17, 2017 1:28 am
Forum: Investing - Help with Personal Investments
Topic: Where to allocate lump sum payout
Replies: 4
Views: 487

Where to allocate lump sum payout

Looking for advice on best use of a large profit on the sale of a home. We sold a home and currently have $160k cash surplus. No consumer debt other than one car loan at $400 per month. Our new mortgage is $2455 a month on a 15 year fixed (we put 20% down). There is a total of $250k of school loans ...
by beth65
Tue Jun 13, 2017 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: HDHP/HSA or HMO/FSA
Replies: 10
Views: 855

Re: HDHP/HSA or HMO/FSA

That is an expensive HDHP family plan (12.5k a year on premiums) for a $7k deduc. It sounds like the employer may not be offering much of a subsidy to you. Nonetheless, having two health conditions might make it more feasible to do the HDHP and define your annual cost at $19.5k with an HSA of preta...
by beth65
Wed Jun 07, 2017 7:35 am
Forum: Personal Finance (Not Investing)
Topic: HDHP/HSA or HMO/FSA
Replies: 10
Views: 855

Re: HDHP/HSA or HMO/FSA

Either your HDHP plan is "grandfathered" or they are not in ACA compliance (ACA requires both fully insured and self funded plans to cover Preventive Care 100% no cost share...I would confirm this with HR) You need to better understand your family annual healthcare spend to make a fair comparison. ...
by beth65
Wed Jun 07, 2017 7:25 am
Forum: Personal Finance (Not Investing)
Topic: HDHP/HSA or HMO/FSA
Replies: 10
Views: 855

Re: HDHP/HSA or HMO/FSA

Your logic is flawed here. The HDHP costs 12,500 not 19,000. The 6750 is your money as an investment, not a cost. The 7,000 deductible is only a cost if you have that much in medical expenses. The real issue is do you want a PPO or HMO? HMOs are almost always cheaper but come with significant restr...
by beth65
Tue Jun 06, 2017 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: HDHP/HSA or HMO/FSA
Replies: 10
Views: 855

HDHP/HSA or HMO/FSA

My husband is starting a new job, there are two health insurance options. Normally the HDHP plan would seem like the better option since the HSA can be used as an investment vehicle, but the premiums for both plans are high and the HDHP option would not save a lot of money for the risk of the higher...
by beth65
Thu May 18, 2017 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: Annual house maintenance costs
Replies: 30
Views: 3069

Re: Annual house maintenance costs

Another thing to consider is the climate/part of the country. I'm from the NE and moved to the SE 4 years ago, and we have to put much more maintenance into our home that is only 6 years old than the homes up north that were 50+ years old. The older homes did have higher costs for things like roofin...
by beth65
Thu May 18, 2017 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: How to sell a house?
Replies: 22
Views: 2431

Re: How to sell a house?

I agree. Most people want to come in and renovate or just gut the house and redesign it the way that they like. It's not worth the headaches and the cost to you to do it yourself. My stepfather did this and lost money, even though they tried to do a few minimal upgrades and keep them neutral. It sti...
by beth65
Thu May 18, 2017 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: Buy 1st House Cash?
Replies: 20
Views: 1810

Re: Buy 1st House Cash?

I'm no expert by any stretch, but my concern would be liquidity. You could take out a home equity loan if you do need cash and aren't in a position to sell your house, but then you are paying interest versus only paying 50% down on the house and keeping the other 50% cash for investments which have ...
by beth65
Wed May 10, 2017 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: General question of balance and compromise
Replies: 26
Views: 2319

General question of balance and compromise

I know this is more of a personal topic than a financial one, but where do you strike a balance between saving and cutting expenses and quality of life? We can obviously all save more by living in a tiny house and driving an old car purchased in cash in a rural area, but in all seriousness, where do...
by beth65
Wed May 10, 2017 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Home purchase question
Replies: 22
Views: 2434

Re: Home purchase question

With $200k still outstanding in student loan debt, you're falling into the classic lifestyle inflation trap. I agree with your husband - buckle down now. 1) Buy the cheaper house - if your husband hates the new job, the transaction costs are cheaper to get out. The kids may actually prefer the more...
by beth65
Wed May 10, 2017 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Home purchase question
Replies: 22
Views: 2434

Re: Home purchase question

With $200k still outstanding in student loan debt, you're falling into the classic lifestyle inflation trap. I agree with your husband - buckle down now. 1) Buy the cheaper house - if your husband hates the new job, the transaction costs are cheaper to get out. The kids may actually prefer the more...
by beth65
Mon May 08, 2017 11:17 pm
Forum: Personal Finance (Not Investing)
Topic: Home purchase question
Replies: 22
Views: 2434

Re: Home purchase question

A few things: First, do not think of the home as an investment.. it is a lifestyle choice. Bringing up a family with a nice yard etc. is all about lifestyle. If you buy a house for $400K and sell it for $380K (ignore transaction costs for now although they are important), you will have spent $20K t...
by beth65
Mon May 08, 2017 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: Home purchase question
Replies: 22
Views: 2434

Re: Home purchase question

Sounds like no matter what, this next home is going to be a loss for you (transaction costs, interest paid, upgrades, basic furnishings, property taxes, and very little potential for increase in home price). At least there is a healthy salary to have that luxury and you just need to realize that th...
by beth65
Mon May 08, 2017 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Home purchase question
Replies: 22
Views: 2434

Re: Home purchase question

There are almost no home rentals, particularly in the only good school district in the area. There are a few apartment complexes in the area, but they don't have more than 3 bedrooms, and we want a backyard for our dog and our kids. I was arguing to consider a rental, but my husband is very traditio...
by beth65
Mon May 08, 2017 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Home purchase question
Replies: 22
Views: 2434

Home purchase question

My husband and I are relocating to a new city for a great job opportunity. We are very fortunate to cash out on our house and make a great profit of $200k in 4 years. In addition, he will have a big salary increase and will be making $400k per year. We stretched ourselves maxing out retirement contr...