Search found 2270 matches

by jimb_fromATL
Thu Oct 04, 2018 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC to Pay off Mortgage
Replies: 36
Views: 5469

Re: HELOC to Pay off Mortgage

I have seen otherwise-smart people falling for high-pressure sales of these HELOCs that are supposed to magically let you pay off your mortgage earlier, or save interest because the mortgage interest is "amortized" (which most people just don't know what it means, they think they're somehow paying a higher interest rate in the beginning because they're told that most of their initial payments go to interest). I once spent over an hour trying to explain that really the only thing to look at is the interest rate of the mortgage vs. HELOC (which is almost always higher, unless a teaser or variable rate which I don't want while rates are going up!). They were sold on the idea that because the mortgage is amortized but a HELOC is not,...
by jimb_fromATL
Thu Oct 04, 2018 9:27 am
Forum: Personal Finance (Not Investing)
Topic: HELOC to Pay off Mortgage
Replies: 36
Views: 5469

Re: HELOC to Pay off Mortgage

Not to hijack this, but does anyone know of a good HELOC calculator? Are you looking for something unique to HELOCs that a regular mortgage calculator does not do? Just a tool that shows my monthly payment for a certain amount of HELOC use, let's say I owe $10,000 with a $100,000 line. You can use virtually any online mortgage calculator that allows you to enter the balance and rate and time as variables. You can use the number of years you want to take to pay off the loan, or calculate the minimum payment for the maximum number of years the HELOC terms allow for a new balance when you borrow more money from the line of credit. If you can use a spreadsheet at all, there are lots of templates and examples built in to Excel and other spreads...
by jimb_fromATL
Tue Oct 02, 2018 1:36 pm
Forum: Personal Consumer Issues
Topic: Buying a new Toyota Camry. What extra options if any?
Replies: 70
Views: 6827

Re: Buying a new Toyota Camry. What extra options if any?

I didn't look at the options that are options and are not standard, but I will say that I drove a 2018 Camry rental car for over 400+ miles and it had the safety features such as adaptive cruise control, lane change alert/assist, parking assist beeps, backup camera, navigation, reverse automatic braking, lots of airbags, etc. I will say the car was squirrelly driving at 80 mph coming down the mountain, so if there was an option to fix that, then I would get it. Top-rated tires from Tire Rack? Livesoft, why were you driving 80 mph on a mountain? This problem is caused by a loose nut at the steering wheel. It can be solved by an impact adjustment with a manually-operated attitude adjustment tool that can be obtained very inexpensively at vir...
by jimb_fromATL
Fri Sep 07, 2018 3:06 pm
Forum: Personal Investments
Topic: Self-directed IRA - Roth or Traditional
Replies: 5
Views: 764

Re: Self-directed IRA - Roth or Traditional

I plan to purchase a rental property in a self-directed IRA. Other than the different taxation of the two, is there anything else to consider when I decide whether to fund my SD-IRA with traditional IRA funds or Roth funds. I have both Roth and Trad accounts to pull from. There is no difference in taxation within either type of IRA, because there are no extra tax breaks for rental property within IRAs. Since rental real estate is an unusually good way to get leverage and tax breaks outside of IRAs, IMO it does not really make any financial sense at all to hold a rental property within an IRA. In fact IMO about the only people who even suggest that you invest in individual parcels of real estate within self-directed IRAs are the people who ...
by jimb_fromATL
Fri Sep 07, 2018 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Student loan payoff help
Replies: 19
Views: 2532

Re: Student loan payoff help

As for how to do it, just pick off those high-interest loans one at a time until they're done. Then go after the smaller ones. The problem is they can't payoff the loans directly - the lender won't allow extra principal payments. Take the $3004 loan. If they send a check for $3004 for that loan, the lender will say, "Thanks, that takes care of these loan payments including interest until XX/XX/XXXX, when you will owe the next payment." The lender won't apply the money to the loan and be done, they just count you as having made those payments plus interest for the next X years. The borrower needs to refinance to make payments directly to the principal. (Yes, this should be illegal.) Thank you all for the replies. Unfortunately, th...
by jimb_fromATL
Fri Sep 07, 2018 11:36 am
Forum: Personal Investments
Topic: Emergency Fund vs Retirement Contributions Help Needed
Replies: 4
Views: 778

Re: Emergency Fund vs Retirement Contributions Help Needed

Don't stop 401(k) contributions or contributions to a Roth IRA in order to build up the emergency fund any faster. A good rule of thumb is to have at least 6 months or more of living expenses (including rent or mortgage payment with taxes and insurance) plus all other payments and expenses. The reason to put the extra oney in the Roth IRA (for you and your spouse if married) is that you can withdraw your contributions from a Roth IRA at any time without tax or penalty; so it is still available in a dire emergency. There is a yearly maximum to how much you can contribute to a Roth. So ... IF you were not going to max the Roth IRA space otherwise, then even if you have to take some back out for a bigger emergency later, you have not really lo...
by jimb_fromATL
Wed Sep 05, 2018 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Talk me out of buying a house
Replies: 28
Views: 2998

Re: Talk me out of buying a house

It sounds like you have a great thing going by living in one half and renting out the other half of the duplex. But with so little cash reserves even the minimum FHA down payment will result in mortgage payments so high that they are likely to prevent you from qualifying for the new loan if you keep the existing mortgage on the duplex too. How much do you actually clear from the rent? How much do you owe on the duplex? What is the payment? How much are the taxes and insurance, maintenance and repairs? How long has it been rented out? Here's the problem: Most lenders allow your front-end ratio (the cost of housing alone) to be 28% of your gross income. FHA allows up to about 31%. The potential deal killer for you is the back-end ratio. Most ...
by jimb_fromATL
Sat Sep 01, 2018 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Contemplating trading in a 2-year old car with <25k miles...
Replies: 23
Views: 2233

Re: Contemplating trading in a 2-year old car with <25k miles...

I have a 2017 Forester that i am just not fond of. the main issue is the comfort of the driver's seat. i am in discomfort after 20+ minutes that doesn't go away no matter how much i adjust. additionally the CVT is bothersome, the infotainment is awful and the car is just incredibly sluggish. it's not a BAD vehicle by any stretch, but not one i can see myself driving into the ground either. This time around I think it would be money well spent for you to rent a vehicle of the type you're considering and drive it a lot before you trade. Here are a couple of excerpts from older threads that explain why I think it's a good idea: ... We buy new cars and keep 'em a long, long time, and have rented several for as much as a week at a time to make ...
by jimb_fromATL
Fri Aug 24, 2018 6:59 pm
Forum: Investing - Theory, News & General
Topic: 2000-2018 retirement - sequence of returns
Replies: 153
Views: 19815

Re: 2000-2018 retirement - sequence of returns

I'm surprised I haven't seen an article on this before. For fun today, I was playing around with Excel and morningstar.com to look at year-to-year returns. (I use morningstar because it includes dividends) Just in case you were not aware of it, Portfolio Visualizer can do a mind-boggling number of comparisons for you, automatically looking up the total return data, and automatically choosing allocations for a custom portfolios and a lot of popular ones including the Bogleheads 3 fund portfolio. Then it graphs and charts. It includes inflation rates and can do rolling average and automatic rebalancing, and show an incredible number of metrics and popular measurement tools. HERE is an example. You can also download the data to a spreadsheet ...
by jimb_fromATL
Thu Aug 23, 2018 2:04 pm
Forum: Personal Investments
Topic: Recast or pay down principal for a near retiree
Replies: 3
Views: 487

Re: Recast or pay down principal for a near retiree

Hi all, A family member who is near their retirement still has a home mortgage left for $250 k. They have $150k cash to either invest vs. recast to decrease monthly payments vs pay down principal. The home mortgage rate is at 3.75%. The investment part would be making a down payment towards a rental investment vs Roth contribution. Thoughts? Thanks! Insufficient data, but if you mean either contribute to Roth IRAs or make the down payment on a rental property, then in my opinion they probably cannot afford the rental property as an investment. While there's really not enough information to know for sure, in general I think there are a number of things that are much higher priority than a rental property. First would be to contribute the ma...
by jimb_fromATL
Wed Aug 22, 2018 11:12 pm
Forum: Personal Investments
Topic: Invest or Pay off Student Loans
Replies: 40
Views: 3157

Re: Invest or Pay off Student Loans

Wow..... I like your breakdown and it does make some sense, however, are you assuming that I wouldn't be contributing the 6% to my 401 K? I would never do that. IMO it would never make financial sense to take a voluntary cut in pay by giving up the employer match. Actually, I realize now that for my first example I transposed a couple of numbers when I cranked up my spreadsheet. It's still valid, but not quite like your actual tax and 401(k) contributions. Your 6% of $120,000 is $7,200 per year. The max for a 401(k) this year is $18,500. So you could contribute $11,300 more per year ($941.67 per month) to your 401(k). So … here's a little closer summary of how it might work with the $941.67 extra per month. This also reduces your taxes sin...
by jimb_fromATL
Wed Aug 22, 2018 9:58 pm
Forum: Personal Investments
Topic: Invest or Pay off Student Loans
Replies: 40
Views: 3157

Re: Invest or Pay off Student Loans

[/quote] +1 to those that recommend to pay down the debt. That is A LOT of debt on that income and a risk free after tax return of the interest rate may in fact beat equity return over the duration of the loan terms. This would also reduce RISK for which you have a boat load right now. I agree that you can't beat the guaranteed return for paying down most debts with after-tax money in taxable accounts. But there's seldom any advantage in guaranteeing to pay taxes in your highest tax brackets several decades earlier than necessary, when most middle income folks who don't expect to have HUGE pensions or other income after retirement are not likely to pay as much tax on their retirement withdrawals as they get to defer and invest in 401(k) and...
by jimb_fromATL
Wed Aug 22, 2018 8:18 pm
Forum: Personal Investments
Topic: Invest or Pay off Student Loans
Replies: 40
Views: 3157

Re: Invest or Pay off Student Loans

Currently paying $1400/M on my loans and $650/M on my wife's private loans) Knowing what I know now, I'd contribute more to the retirement plans. yada...yada...yada etc. Thank you for your reply, I truly appreciate it. I will definitely check out those links. You offer a different perspective one which I will think about at times and struggle with. However, does it really make that big of a difference to sacrifice 4 yrs to pay the student loans off vs 10 years which seems like a lifetime? Yes, it really can make all that big a difference. I haven't looked up the tax bracket for married filing separately but I'm pretty sure your top bracket is at 24% for the feds. What is your top bracket for the feds, and do you have a state income tax? He...
by jimb_fromATL
Wed Aug 22, 2018 7:05 pm
Forum: Personal Investments
Topic: Invest or Pay off Student Loans
Replies: 40
Views: 3157

Re: Invest or Pay off Student Loans

This is driving me crazy. Here's my situation: Me 36, Wife 35 No kids Married filing separately (for student loan purposes) Salary: Me: $120,000 Wife: $59,000 annual Student loans: Me $140K fixed at 5.1% IR 10 yrs Wife $80K fixed at 5% IR (10 yrs) private & $90K government (wife's government loan enrolled in PSLF program so most of that will be forgiven after 8 years. So were paying the minimum of $190/M on that) Currently paying $1400/M on my loans and $650/M on my wife's private loans) We currently have a house mortgage $300K (IR 3.875%). With insurance and taxes we pay around $2100/M Car loans: $11,500 Payment listed at $238/M x 4 yrs, however I pay $322/M Retirement: Me: 401 K I contribute 6% to get employer match Wife is a teacher...
by jimb_fromATL
Tue Aug 21, 2018 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Giving away donation receipts
Replies: 22
Views: 1981

Re: Giving away donation receipts

Hi, As background, I placed a 5 years worth of charitable contributions into the fidelity charitable fund in 2017. We don’t have a mortgage, and thus don’t itemize given the larger standard deduction. We in addition do small charitable things such as donating a 20 dollars worth bag of clean used clothes, a $100 ticket to a charity event, that sort of things. These now aren’t deductible. What are your thoughts on my giving the receipt for these things to a friend or family member that can itemize them? I wouldn’t be getting anything in return. Is there anything ethically or morally wrong with it? Thanks I don't think this can be legally done. At first, I thought may be you could have donated on behalf of someone else but I think that is not...
by jimb_fromATL
Thu Aug 16, 2018 2:24 pm
Forum: Personal Consumer Issues
Topic: Old Acura TL vs new Honda Accord
Replies: 12
Views: 1694

Re: Old Acura TL vs new Honda Accord

OP, you already own the Acura. Therefore, the costs of purchasing do not apply. If you sell it or trade it, you will not get a retail price for it. In other words, the comparison you referred to assumes you are deciding which of the two to buy now. Since you already own one, it is not a valid comparison. Agreed. It is not a valid comparison at all. That comparison might be valid IF you were buying a used Acura for retail price, but I have some doubts about the maintenance and repair costs too. Plus you do not suffer any depreciation unless you sell the car and have to buy another one. And the longer you keep the car, the lower the yearly appreciation. However, it's a great way to rationalize buying a new car when you just want one but don'...
by jimb_fromATL
Wed Aug 15, 2018 2:14 pm
Forum: Non-US Investing
Topic: Should I speculate in currency?
Replies: 8
Views: 956

Re: Should I speculate in currency?

As a boglehead, should I do currency speculation? no Currency speculation is more risky than stock trading, yes so I think the answer is "no". yes But is it possible to avoid? no Here is my situation: I am a norwegian with a portfolio of index funds (25% tech fund, 75% world fund). This question should be relevant for investors from other countries as well. During the drop in oil prices in 2014-2015 the norwegian krone fell sharply. At that time I learned the value of investing in international funds. Those who had their savings in international funds kept the purchasing power while the USD rose 30-40% to the krone. The krone is still exceptionally weak, but all the analysts have said for a year that they expect it to strengthen....
by jimb_fromATL
Mon Aug 13, 2018 11:13 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC vs. Mortgage - Confused
Replies: 4
Views: 821

Re: HELOC vs. Mortgage - Confused

Those schemes like the "Australian Mortgages", “mortgage accelerators”, “money merge accounts”, “freedom mortgages”, and John Commuta’s “Transforming Debt Into (his) Wealth" capitalize on a general lack of understanding of how compound interest works and how even a little extra money per month can save an exponential amount of interest on the debt. Their sometimes very slick presentations are really just smoke and mirrors intended to sell things like books, tapes, CDs, and “magic” software packages via internet sites and Multi-Level-Marketing networks. While the gimmicks can help you trick yourself into paying a little extra on your mortgage every month and thus save some time and interest, they do not work as well as just pa...
by jimb_fromATL
Thu Aug 09, 2018 11:40 am
Forum: Personal Consumer Issues
Topic: Anyone familiar with attic fans?
Replies: 32
Views: 3419

Re: Anyone familiar with attic fans?

Thegame14 wrote: Thu Aug 09, 2018 11:22 am I have one, some people also refer to it as a whole house fan.


Attic vent fans and whole house fans are two different animals.

An attic vent fan is a small fan that pulls in air through the gable vents and pushes it out through the fan opening in the roof. It turns on automatically when the temperature of the air in the attic goes over about 100-120 degrees. Its purpose is to keep the attic cooler and to reduce humidity in the attic.

A "whole house fan" is a much larger fan that pulls cooler air in through the windows of the house and pushes the hotter air out into the attic. Its purpose is to cool the living space and the people in it with the air movement.

jimb
by jimb_fromATL
Thu Aug 09, 2018 9:43 am
Forum: Personal Consumer Issues
Topic: Anyone familiar with attic fans?
Replies: 32
Views: 3419

Re: Anyone familiar with attic fans?

We have one in our attic in a condo we bought last year . The condo was built in the 80s. I have never heard the fan go on, so I am assuming it does not work. Anyone know how I can test it out? Is there a switch for it somewhere? It is also in a very inaccessible place. I would somehow need to lug a ladder up in the attic. Then I would somehow need to walk over all the insulation material which resembles 2ft deep snow ( but gray colored ). Sounds like a recipe for a disaster.. Assuming you're talking about an exhaust fan for the attic alone, it is controlled by a thermostatic switch which is typically set to turn on at perhaps 100-110 degrees. By that time the attic is likely to get a lot hotter, so the only time you would be likely to hea...
by jimb_fromATL
Tue Jul 31, 2018 3:02 pm
Forum: Personal Investments
Topic: Self-Directed IRA regulations
Replies: 5
Views: 942

A few more points to ponder

This article at bankrate.com discusses: Why real estate investing in a self-directed IRA makes no sense Another article at Kiplinger's about the pitfalls of self directed IRAS. Here are some links to FAQs from the IRS about “prohibited transactions” and other problems with real estate and other investments within self-directed IRAs: https://www.irs.gov/retirement-plans/retirement-plan-investments-faqs https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-prohibited-transactions Just some things to think about, gathered from other discussions: You cannot manage or maintain it yourself or have a family member do it. You cannot put in “sweat equity” to fix it up to flip it for profit or to rent it out. You cannot use...
by jimb_fromATL
Tue Jul 31, 2018 10:15 am
Forum: Investing - Theory, News & General
Topic: Interesting Take on the 3 Fund Model
Replies: 66
Views: 5556

Re: The Guy with the Weird Portfolio

The great recovery since the second worst crash in history in 2008 makes it hard to evaluate any portfolio during that time alone, since you'd have to work pretty hard to NOT do extremely well. However, the crash of 2008 does give us a chance to see how various balances of funds might perform next time around. I thought it might be interesting to use PortfolioVisualizer to compare your portfolio to the bogleheads 3 fund portfolio, the total stock market (VTSMX), the S&P 500 (VFINX), and Vanguard's Wellington balanced fund VWELX. I don’t see where you listed specifically which blue chips you like, so I substituted DIA (the Spyder Dow index ETF). The limited time frame for VNQI data does not include the big crash. VNQI did not do as well ...
by jimb_fromATL
Mon Jul 30, 2018 6:35 pm
Forum: Personal Consumer Issues
Topic: Recent Kia Soul obsedrvations
Replies: 5
Views: 1270

Re: Recent Kia Soul obsedrvations

Late 70's looking for a practical, reliable vehicle with lots of space for stuff. Sounds like a big negative for you is that a Soul does not have a lot of space for stuff compared to a lot of other cross-over-like vehicles its size. It does have a relatively spacious back seat, big enough for adults, but very little room for luggage behind it. That was surprising to me, especially considering its shape. I drove a nearly new rental Soul for a week and about 1600 miles about four years ago. It was fun to drive. The one I drove with the bigger engine was reasonably peppy, and the six-speed automatic always seemed to have an appropriate gear ratio -- even driving through the mountains of Western NC and North Georgia. Plus it has a "sports...
by jimb_fromATL
Mon Jul 30, 2018 8:41 am
Forum: Personal Finance (Not Investing)
Topic: When mortgage rates are high, why invest in stock market?
Replies: 36
Views: 5153

Re: When mortgage rates are high, why invest in stock market?

AlohaJoe wrote: Mon Jul 30, 2018 8:02 am
jastevenson wrote: Sun Jul 29, 2018 10:16 am I'm probably missing something blindingly obvious, but I was reading earlier today that mortgage rates in the early 2000s were over 7%.

Given that average stock market return is about 7% over time, why was anyone (with a mortgage) investing in the stock market in, say, 2002? Because wouldn't paying down the mortgage result in a guaranteed 7% return?
Isn't the real question "why would someone take out a mortgage when rates are that high when they could instead be investing in the stock market"?
Because they cannot live in the stock market.

jimb
by jimb_fromATL
Sun Jul 29, 2018 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Soc Sec benefit estimates: Anyone get a nasty surprise when filing?
Replies: 61
Views: 9277

Re: Soc Sec benefit estimates: Anyone get a nasty surprise when filing?

If you're math and detail inclined, HERE is a detailed explanation about how SSA calculates benefits. A biggy for folks who had fairly high income in their earlier years but only part-time or no income for several years before SS retirement age is that earlier years are adjusted to today's dollars for the averaging. Also bear in mind that the estimates the SSA sends out assume continued income until retirement age. I had several years of the max for SS tax before I retired early, then several years of no SS taxable income at all. So the yearly estimates sent out by the SSA were not accurate at all in the beginning. As time went on and they had more 0 years in the average the benefits estimate starting going down -- as it should. However, ov...
by jimb_fromATL
Sun Jul 29, 2018 7:22 pm
Forum: Personal Investments
Topic: 401k loan for car payoff - bond allocation used
Replies: 13
Views: 1594

Re: 401k loan for car payoff - bond allocation used

What are your thoughts on taking bonds from 401k, loan to myself to pay 3% car loan off and paying back into 401k? Wouldn’t this make more sense than using cash? Effectively using the loan to increase my 401k balance? I doubt that the potential advantage is worth the risk, especially if you have enough spare cash to pay off the car loan anyway. Maybe a bigger question should be whether to pay such a low rate car loan off early at all. It could work IF you have a working crystal ball that can guarantee that your 401(k) will be earning less than the rate you're paying on your car loan. And only IF you can really take it out of a bond fund and put it back there. What's your crystal ball predicting for your bond fund anyway? As another poster ...
by jimb_fromATL
Sun Jul 29, 2018 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Pay Off...best method?
Replies: 23
Views: 3547

Re: Mortgage Pay Off...best method?

If you are 31 based on your userid, the simplest answer is don’t pay it off. Yes, I am 31. Any reasoning as to why not pay it off? I got the loan in 2011 @ 4.5% 30 yr conventional, but never refinanced since then. I don't have any debt besides the mortgage. I am self employed, so I only have a Roth IRA which I started this year (pretty late, I know) and maxed the contributions. I'll also have a pretty decent cash reserve (mid to high 6 figures) even after the pay off to invest long term. Whoa!!! Are you talking about paying off the mortgage with cash in a single lump sum? How much money is that? What are your top tax brackets for federal and state? How much money do you have to spare to after all the bills are paid each month? Are you marr...
by jimb_fromATL
Sun Jul 29, 2018 11:22 am
Forum: Personal Finance (Not Investing)
Topic: When mortgage rates are high, why invest in stock market?
Replies: 36
Views: 5153

Re: When mortgage rates are high, why invest in stock market?

I'm probably missing something blindingly obvious, but I was reading earlier today that mortgage rates in the early 2000s were over 7%. Given that average stock market return is about 7% over time, why was anyone (with a mortgage) investing in the stock market in, say, 2002? Because wouldn't paying down the mortgage result in a guaranteed 7% return? That does work for after-tax money in taxable accounts. And even at today's rates there are currently no other investments that can give you a guaranteed rate as good as your equivalent return for paying down the mortgage. But there are some more things to think about first: Mortgages (and other debts) are compound interest -- in reverse. The borrower's debt is the lender's investment in an ann...
by jimb_fromATL
Fri Jul 27, 2018 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage on Upcoming Home Purchase
Replies: 12
Views: 2215

Re: Mortgage on Upcoming Home Purchase

The no closing costs loan will cost more only if the borrower keeps the loan for more than 11 years, or longer if you consider the opportunity cost of forking over $3,800 up front. I am not a fan of buying down interest rates with upfront money, which is effectively what is happening. That is a pretty long time to not move, refinance or pay down the loan. +1 Seems to me that the borrower paying discount points in advance to get a lower interest rate is almost exactly the opposite of having the lender advance the closing costs and getting their money back in a higher interest rate. With points to reduce the rate, you pay all the extra interest up front. (Historically, points typically have been calculated to break even for the lender in abo...
by jimb_fromATL
Fri Jul 27, 2018 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Yet another "can I afford it"?
Replies: 42
Views: 4897

Re: Yet another "can I afford it"?

If you buy something dependable like a Toyota or Honda or perhaps a Lexus or Acura instead of a much more expensive novelty car or European car, you'll have a lot more money to invest toward early retirement. You'll probably spend a lot less money maintaining and repairing it for a long time too ... and will have even more money to invest toward early retirement. To put an extra $50K to buy a more expensive vehicle in better perspective, you might want to think about this: Assuming investing that $50,000 and earning a conservative estimated average APY of 7% for 10 years it would grow to $98,358. At a more conservative earnings rate of 4% in early retirement, that extra $98,358 could pay you an annuity of $393.02 per month for 45 years befo...
by jimb_fromATL
Wed Jul 25, 2018 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Would You Buy This Condo or Continue To Rent ?
Replies: 33
Views: 2763

Re: Would You Buy This Condo or Continue To Rent ?

... converting the units to condos ... top floor .... 4th floor WALK-UP ...concerned about the resale potential ... not my idea of a forever home esp. with the stairs! ... only one of the six units has been sold (to an investor) and we would be the only owner occupied unit at this time. I'm concerned about how this might affect our ability to sell in the future as well, if more owner occupied units don't materialize. ... Property Tax = $4,600/yr $383/mth HOA Fees = $250/mth minus potential rent on parking spaces. All total over $75,000 in income per year fixed ... considering that after we move, we could still rent out the apartment for higher rent than we are paying on mortgage. The mortgage calculators seem to be showing the following fo...
by jimb_fromATL
Wed Jul 25, 2018 10:58 am
Forum: Personal Investments
Topic: Precious Metals ETF
Replies: 11
Views: 1498

Re: Precious Metals ETF

Do a little research on Harry Brown's "Permanent Portfolio." It has evolved a bit over time: Harry Brown Permanent Portfolio: Original configuration S&P 500 stocks, the longest Treasury bonds, Spot Gold, money market funds. Revised: 35% government securities, 20% gold bullion, 15% aggressive growth stocks, 15% real estate and natural resource stocks, 10% Swiss franc bonds and 5% silver bullion. Personally I would not invest as Harry Brown suggests. I do think there is a valid point in terms of diversification beyond stocks and bonds. Perhaps 5% precious metals and 5% natural resources. Again, not for me, but "perhaps." Edit - some people add REITs for more diversification. HERE is a little research using PortfolioVi...
by jimb_fromATL
Wed Jul 25, 2018 9:34 am
Forum: Personal Investments
Topic: Precious Metals ETF
Replies: 11
Views: 1498

Re: Precious Metals ETF

Just to give you a feel for how some of the precious metals funds compare to popular index and balanced funds, here are some gee-whiz figures for some funds I happened to have in a spreadsheet. These include fairly recent YTD returns for 2018. Most people I know invest in 401(k)s or IRAs and other accounts periodically instead of just a single lump sum, and the end result can vary widely depending on whether the lump sum was invested near the top or bottom of the market. So this includes the results for Dollar-Cost-Averaging with annual contributions. CAGR (Compound Annual Growth Rate) or APY for a single lump sum and APY for DCA (Dollar Cost Averaging) with annual contributions: VG Precious metals and mining: For 34 years from 1985 through...
by jimb_fromATL
Tue Jul 24, 2018 9:13 pm
Forum: Personal Investments
Topic: Total Return Comparison: Mutual Fund vs a Stock
Replies: 4
Views: 995

Re: Total Return Comparison: Mutual Fund vs a Stock

Go to morningstar.com and enter the symbol for your stock. It will give you the total return (includes reinvested dividends) for various time periods. You can look up the symbol for the S&P 500 index fund and observe total returns for the same periods, and make the comparison you desire. Morningstar publishes returns for the past 15 years. If you want to go back further than that, this approach will not help you. Morningstar gives returns for fixed periods. My purchase dates fall somewhere between (for example 12 yrs 7 months back). Those return numbers 10 and 15 years do not help in a fair comparison. The growth charts would help with custom dates IF both the growth numbers will include dividends reinvested for both VFINS and comparis...
by jimb_fromATL
Tue Jul 24, 2018 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage on Upcoming Home Purchase
Replies: 12
Views: 2215

Re: Mortgage on Upcoming Home Purchase

Hello... I am going to be taking out a loan of roughly 380K for a home purchase. The lender is offering 4.5% fixed on a 30 year mortgage but 1% ( 3800 ) is due at closing. The other option is for 4.625 % with no closing costs. What is the preferred option ? The "no closing cost" loan will cost several thousand dollars more. And there's virtually no place you can invest the $3800 that will give you as good a return as paying it to get the lower rate mortgage -- with no risk at all. Essentially the "no cost" loan would be financing the whole $380K at a higher rate, and financing the $3800 at the higher rate too. P&I on a $380k mortgage at 4.5% is $1,925 per month. P&I on a $380k mortgage at 4.625% is $1,954 per mo...
by jimb_fromATL
Tue Jul 24, 2018 9:40 am
Forum: Personal Finance (Not Investing)
Topic: Can I get a mortgage if retiring?
Replies: 37
Views: 6422

Re: Can I get a mortgage if retiring?

OP, Thank you for this thread as it is also something I am concerned about. Especially as I have never purchased a house before. My situation is I will retire from the military in a couple years and move to a state where I have visited but not lived before. Because of this, my initial "home" will likely be a rental so I can figure out where I want to buy. I will be fully retired from the military by then. While I will have income from my military retirement, maybe a part time job, and have taxable investments I can use, I would prefer to finance after a down payment. Anyhow, thanks for the topic and the responses of the posters here. I bookmarked this so I can keep checking. Your pension income will count in qualifying for a mort...
by jimb_fromATL
Tue Jul 24, 2018 7:03 am
Forum: Personal Consumer Issues
Topic: Craigslist payment by PayPal - safe or scam?
Replies: 59
Views: 11370

Re: Craigslist payment by PayPal - safe or scam?

If you think CL is safe, why were safe zones established by police departments? Because people (typically buyers with cash in their pockets) are paranoid? In the context of selling stuff locally, how is craigslist different from the classified ads in your local newspaper 15 years ago? I've never once felt like someone was going to stick me up and steal my cast off furniture, car parts, bicycle parts or whatnot. I just don't feel like I'm living in a world teeming with thieves and miscreants who spend their days trolling CL to set up meets where they can roll me for an end table (or grand piano, LOL). I mean if you're gonna go full monty on this, do you wear a disguise to the meets so your customers won't be able to identify you? Times have...
by jimb_fromATL
Mon Jul 23, 2018 4:16 pm
Forum: Investing - Theory, News & General
Topic: Historical Daily S&P 500 (or other index) prices
Replies: 3
Views: 838

Re: Historical Daily S&P 500 (or other index) prices

I'm looking for DAILY index values for the S&P 500 or, failing that, another large cap US stock index with data BEFORE 1950. Anyone know where I can find this? Haven't seen data for that early, but just in case you were not aware, Yahoo has downloadable .csv format data for spreadsheets with daily weekly, and monthly numbers for lots of funds. The S&P 500 index pseudo-symbol is ^GSPC and goes back to 1950. https://finance.yahoo.com/quote/%5EGSPC/history?p=%5EGSPC The Dow index symbol is ^DJI and goes back to about 1985 https://finance.yahoo.com/quote/%5EDJI/history?p=^DJI You'll need to click on the time period and "Max" then "Done" then "Apply" and wait for it to load before you click the symbol to &q...
by jimb_fromATL
Mon Jul 23, 2018 9:33 am
Forum: Investing - Theory, News & General
Topic: Invest in Tesla?
Replies: 330
Views: 36002

Re: Invest in Tesla?

I did not find a link in this thread to this recent news article that might be of interest to some folks. Opinion: Elon Musk is a total fraud More reading: Whistleblower Tesla sues whistleblower Tesla seeks to dismiss securities fraud lawsuit I'd venture that now may not be the best possible time to buy either Tesla stock or a Tesla car. Not sure who will suffer the biggest loss if Tesla folds their tents. The average individual investor might not lose as much on their stock as a Tesla owner might lose on their car's resale value. I don't think Pep Boys has a lot of after-market parts for Teslas, and I doubt that parts from a LEAF would be all that adaptable. A Tesla with a 0-60 time of 20 seconds and a range of maybe 30 miles would not be ...
by jimb_fromATL
Mon Jul 23, 2018 8:47 am
Forum: Personal Consumer Issues
Topic: Craigslist payment by PayPal - safe or scam?
Replies: 59
Views: 11370

Re: Craigslist payment by PayPal - safe or scam?

SCAM Your instincts are right. The wording looks like a template copied right out of the craigslist scam text library ... and a foreign language translated edition at that. Think about it just a few seconds: Who in their right mind would buy an expensive (and subjective) item like a grand piano sight-unseen and pay for it in advance? How do they know the price is reasonable if they have not seen it or know what condition it is in? What is this nonsense about "affordable"? It's affordable to them because they're not going to pay for it. The part about "can't come because of their work" IS true. They're way too busy sending out phishing messages to scam people on craigslist, and they're probably not even in this country. ...
by jimb_fromATL
Sun Jul 22, 2018 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Penfed 5/5 Arm Rate Reset?
Replies: 16
Views: 2495

Re: Penfed 5/5 Arm Rate Reset?

I was given an offer to reset my rate to 3.8125% in September ... etc. etc. Huh ??? etc. etc. I meant less than 5 years /not months😀 Original amount around $230k/ around 165k left 30 year mortgage I'm still not clear on exactly when the rates change, and I cannot quite match your numbers for the balances and pyaments you've listed. But I do know that regardless of a few months one way or the other, in order to make a valid apples to apples to comparison you need to use the up-front cash and the same (higher) payment on both loans for comparison. For example, if you're paying $250 out of pocket to get the new loan, you need to pay $250 on the balance on the current loan. Then in September when you would start paying the higher payment on th...
by jimb_fromATL
Sun Jul 22, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Can I get a mortgage if retiring?
Replies: 37
Views: 6422

Re: Can I get a mortgage if retiring?

I know this information is sometimes verified closer to closing. If you are approved, I'd read the conditions carefully. If they verify employment after you're gone but before closing it will be a problem. The problem is mortgage fraud You are not required to disclosure your upcoming retirement, UNLESS they ask. But they would be retiring before the loan closes Carrying this out to the most extreme case: If you consider most retire by age 70, is anyone starting a 30 year mortgage after 40 committing fraud? Not unless you lie about your age or employment or sources of income. However, as I and others have mentioned earlier, part of the income verification process with employers typically include verification of a "reasonable expectatio...
by jimb_fromATL
Sat Jul 21, 2018 12:29 pm
Forum: Personal Consumer Issues
Topic: Good places to visit within 4-5 hr drive from Atlanta
Replies: 38
Views: 4098

Re: Good places to visit within 4-5 hr drive from Atlanta

I’d much prefer the mountains to the east coast towns during August. I see that other people have already recommended Huntsville and some other places to the west and northwest of Atlanta. In addition to Asheville, the Pigeon Forge, Sevierville and Dollywood areas of Tennessee, and Cherokee NC are an easy and scenic drive from Atlanta, along with the Great Smokey Mountains national park. If you decide on Asheville, it's a scenic ride to go from Atlanta via I-575 to Blue Ridge Ga to Murphy NC and highway 74 toward Asheville. Speaking of the highway 74 area, if your kids' ages are appropriate and you're adventurous, you might want to look into the family oriented white water raft rides on the Nantahala river. Not our bag, but on several trips...
by jimb_fromATL
Sat Jul 21, 2018 9:53 am
Forum: Personal Investments
Topic: Oops, for 2018 I think we should have funded tIRA not Roth. Please review relates to capital gains.
Replies: 6
Views: 792

Re: Oops, for 2018 I think we should have funded tIRA not Roth. Please review relates to capital gains.

It does not sound like you messed up to me. If I were in your situation, I'd be very happy that I could afford to invest so much, and I'd keep right on maxing the Roth IRAs every year as long as I could. I'd keep the existing taxable accounts, but might invest any future spare after-tax money in index funds. Here are some of the reasons why: Nobody knows how tax laws may change in the future, but as they stand now, one of the best ways to hedge your bets when you're eligible for Roth IRAs is to contribute the max to them every year that it is allowed and you can afford it. That's probably even more true for you than for some folks because you are already maxing two tax-deferred plans, PLUS have a pension. Since you are on track to have a lo...
by jimb_fromATL
Fri Jul 20, 2018 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Penfed 5/5 Arm Rate Reset?
Replies: 16
Views: 2495

Re: Penfed 5/5 Arm Rate Reset?

I refinanced with Penfed less than 5 months ago at 2.75% and am due for a rate increase in March 2019 time frame to 4.75% I was given an offer to reset my rate to 3.8125% in September for $250 for 60 months. I would be paying about 7 months at a higher rate but saving more in the long run. I calculate it will cost be about $890 (increased rate + $250) more the next 7 months but save me about $4000 the following 60 months Thoughts? Is there a catch? INTEREST RATE...............................2.75%..............4.750%..................3.8125% PRINCIPAL & INTEREST PAYMENT..........$734.8..............$908.1..................$826.26 TOTAL PAYMENT............................. $734.83............$908.16................$826.26 ESTIMATED MONT...
by jimb_fromATL
Fri Jul 20, 2018 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Penfed 5/5 Arm Rate Reset?
Replies: 16
Views: 2495

Re: Penfed 5/5 Arm Rate Reset?

I refinanced with Penfed less than 5 months ago at 2.75% and am due for a rate increase in March 2019 time frame to 4.75% I was given an offer to reset my rate to 3.8125% in September for $250 for 60 months. I would be paying about 7 months at a higher rate but saving more in the long run. I calculate it will cost be about $890 (increased rate + $250) more the next 7 months but save me about $4000 the following 60 months Thoughts? Is there a catch? INTEREST RATE...............................2.75%..............4.750%..................3.8125% PRINCIPAL & INTEREST PAYMENT..........$734.8..............$908.1..................$826.26 TOTAL PAYMENT............................. $734.83............$908.16................$826.26 ESTIMATED MONT...
by jimb_fromATL
Fri Jul 20, 2018 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Can I get a mortgage if retiring?
Replies: 37
Views: 6422

Re: Can I get a mortgage if retiring?

I am retiring this month, but I may try buy an underpriced rental home. I have the assets in the bank to buy it, but if I want to get a mortgage, can I? Of course, the credit union where I started the process wants my paycheck stubs. August is my last paycheck. Should I tell them I am retiring or just apply OR will they give me a loan based on my assets? Thanks. It's been a few decades since I had a mortgage, but way back then I had to submit proof of employment and prospects for it to continue. From what I've read more recently, you'll still need to submit information about your employer, and the lender will verify it by calling or writing the employer. They will verify the contact information through third party sources, not just from th...
by jimb_fromATL
Sun Jul 15, 2018 7:12 pm
Forum: Investing - Theory, News & General
Topic: Math help: 401k vs debt payoff formula
Replies: 17
Views: 2259

Re: Math help: 401k vs debt payoff formula

Next, 7% is not realistic for your 401k. However, the 7% return on the 401(k) is the wrong comparison, because it is a risky return. Paying off debt is a risk-free return, and buying munis is a low-risk return. I think it's reasonable to compare after-tax investments to risk-free returns like munis or other bond funds for paying off debt. But most people do not invest in stable value funds alone in their 401(k) and other retirement plans. So when it comes to deciding to reduce, delay, or stop contributions to a 401(k), IMO the question should be whether you'd prefer to guarantee to pay taxes in your highest bracket up front or to have more money at risk -- including taxes that you did not pay up front -- in exchange for the likelihood of e...
by jimb_fromATL
Sun Jul 15, 2018 9:00 am
Forum: Personal Finance (Not Investing)
Topic: Logging out 20 acre lot?
Replies: 37
Views: 3579

Re: Logging out 20 acre lot?

So since it's worth less than the mortgage balance, see if you can just hand the keys over to the mortgage holder and walk away. Might want to talk to a lawyer about that considering everything involved including the trust and property taxes, etc. Seems like the easiest and perhaps most financially beneficial solution. Yes, formally offer the mortgage company the deed in lieu of foreclosure. They save the cost and hassle of foreclosing. If they accept the offer, you are done. We’ve cleaned out the house and have it on the market to sell, the realtor doesn’t think it will sell at the current price. Lowering the price to where she advises will be less than the outstanding loan. So, it truly is walking away from the parents loan. An estate or...
by jimb_fromATL
Sat Jul 14, 2018 10:53 pm
Forum: Investing - Theory, News & General
Topic: Math help: 401k vs debt payoff formula
Replies: 17
Views: 2259

Re: Math help: 401k vs debt payoff formula

Are you trying to decide whether to use a current dollar to 1) payoff debt with post-tax dollars or 2) invest in your pre-tax 401(k) or 3) invest in munis with post-tax dollars? Yes. Thank you for putting it much easier. I know 401k comes ahead probably but I want to know - by how much. Time is an exponential factor in earning compound interest. You'll be earning compound interest for the rest of your life in your 401(k) but even student loans and mortgages are much shorter by comparison -- with any luck at all. There are also yearly limits for 401(k)s that can prevent you from being able to catch up by reinvesting the freed-up payments when you pay off a debt faster. So for most folks who are paying any significant income taxes, it makes ...