Search found 1843 matches

by jimb_fromATL
Wed Apr 26, 2017 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance student loan to Earnest?
Replies: 20
Views: 794

Re: Refinance student loan to Earnest?

Here's something else to think about. To compare apples to apples, you should look at the difference for making the same payment on the old loan that you'd be making on the new loan(s). For example: If you are making payments of $500 on a balance of $32,000 at 6.55% it will be paid off 78.9 months (...
by jimb_fromATL
Wed Apr 26, 2017 3:39 pm
Forum: Investing - Help with Personal Investments
Topic: Restarting retirement savings at 40
Replies: 20
Views: 1894

Re: Restarting retirement savings at 40

... Given that we are starting over, should we increase the total percentage? Here's an idea of how much more you need to contribute: Suppose you started contributing 15% of your salary to retirement at age 25 and earned an average APY of 7% for 40 years until retirement at age 65. Let's also assum...
by jimb_fromATL
Wed Apr 26, 2017 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: "Negative points" on mortgage
Replies: 47
Views: 2420

Re: "Negative points" on mortgage

jimb_fromATL - I think the reason we're talking past each other is that you're assuming that the $1313 gets added to the principal of the loan. Please correct me if I'm wrong. That certainly does not jibe with my calculations. The higher monthly payment that was quoted to my friend exactly took int...
by jimb_fromATL
Wed Apr 26, 2017 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: "Negative points" on mortgage
Replies: 47
Views: 2420

Re: "Negative points" on mortgage

they need to read the fine print very carefully. … the early payoff penalty seems to have become more prevalent in the last few years than it used to be in the past. I was about to say it's just a checkbox on the HUD-1 GFE, but then I seem to recall those forms changing recently as well… Maybe thin...
by jimb_fromATL
Wed Apr 26, 2017 2:19 pm
Forum: Personal Consumer Issues
Topic: Is buying a car through a dealer auction still a good value?
Replies: 13
Views: 750

Re: Is buying a car through a dealer auction still a good value?

It was a Z3, which were marked up quite a bit back in the day. I hear your points, but Manheim auctions come with certified car condition reports. If you find something not listed, they take it back. And I'm not too worried about other problems as the car I'm considering buying will be under warran...
by jimb_fromATL
Wed Apr 26, 2017 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: "Negative points" on mortgage
Replies: 47
Views: 2420

Re: "Negative points" on mortgage

But when a lender pays you cash back ("negative points") or raises the rate to pay for closing costs or LPMI, they're not going to give you a free gift with no strings attached. They're effectively loaning you the extra money, so they will almost always have a minimum time with a prepayme...
by jimb_fromATL
Wed Apr 26, 2017 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: "Negative points" on mortgage
Replies: 47
Views: 2420

Re: "Negative points" on mortgage

There is a middle ground between the time where prepayment penalties might apply, and the full 30 years. Without knowing the specifics of the OP's loan, it's not clear that any potential prepayment penalties would still be in force 109 months into the loan (breakeven point #Cruncher calculated), or...
by jimb_fromATL
Wed Apr 26, 2017 12:11 pm
Forum: Personal Consumer Issues
Topic: Is buying a car through a dealer auction still a good value?
Replies: 13
Views: 750

Re: Is buying a car through a dealer auction still a good value?

Back in the early 2000s, I bought a sports car by paying a dealer to take me to a Manheim auction, picking the price limit for the car he would bid on, and then paying him a flat fee above the auction price and Manheim auction fee. I paid about $10k less than what a dealer would charge for a car on...
by jimb_fromATL
Wed Apr 26, 2017 11:32 am
Forum: Personal Finance (Not Investing)
Topic: "Negative points" on mortgage
Replies: 47
Views: 2420

Re: "Negative points" on mortgage

I addressed using the cash back to pay down the higher-rate loan in my table in a previous post in this thread. To reiterate: ... ( a bunch of numbers) ... There's just no way that paying an extra 1/8 percent on the entire $186K balance --or even that amount reduced by the $1313 cash back -- is goi...
by jimb_fromATL
Wed Apr 26, 2017 10:54 am
Forum: Personal Finance (Not Investing)
Topic: "Negative points" on mortgage
Replies: 47
Views: 2420

Re: "Negative points" on mortgage

Taking their offer as proposed, there will never be a "break even" point because at any point in the payment schedule you will always owe more on the new loan than you did on the old one, and you will pay more interest. Except the money can be immediately applied towards principal on the ...
by jimb_fromATL
Wed Apr 26, 2017 8:38 am
Forum: Personal Finance (Not Investing)
Topic: "Negative points" on mortgage
Replies: 47
Views: 2420

Re: "Negative points" on mortgage

jimb_fromATL: I think I'm missing some very fundamental point here. I would say that (to take a silly case) that if my friend pays off the mortgage after just one month, he would've been better off taking the cash and paying the higher rate. Is that correct? You seemed to indicate that there's no b...
by jimb_fromATL
Mon Apr 24, 2017 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: "Negative points" on mortgage
Replies: 47
Views: 2420

Re: "Negative points" on mortgage

Ok, I did not realize that the closing costs could change as a result. Even if they didn't change: The loan amount is 186k. I compared a rate of 3.75% vs. a rate of 3.875% with $1313 cash paid to the buyer at closing. After 5 years, the higher rate would mean that you had $348 less in equity and yo...
by jimb_fromATL
Mon Apr 24, 2017 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: "Negative points" on mortgage
Replies: 47
Views: 2420

Re: "Negative points" on mortgage

We'd need to know the closing costs, balance financed, rate and time for each mortgage option to make a guess. jimb Sorry, but I don't see why. The purchase price, down payment, closing costs, balanced financed, and tenor of the mortgage are identical in all three cases. I believe the only trade of...
by jimb_fromATL
Mon Apr 24, 2017 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: "Negative points" on mortgage
Replies: 47
Views: 2420

Re: "Negative points" on mortgage

We'd need to know the closing costs, balance financed, rate and time for each mortgage option to make a guess.

jimb
by jimb_fromATL
Mon Apr 24, 2017 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Options for downpayment (Good or bad?)
Replies: 13
Views: 948

Re: Options for downpayment (Good or bad?)

Hi all, I'm tired of paying $2,400/mo in rent and looking to purchase a home in the next few months as my wife and I just recently welcomed a baby girl. I'm trying to figure out the best combination of options to get enough cash for a down payment (and possibly cover some closing costs). I'm only l...
by jimb_fromATL
Sun Apr 23, 2017 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage at 75 ?
Replies: 15
Views: 1761

Re: Mortgage at 75 ?

Good day to all BH's! Luckily I follow several BH philosophy concepts including making sure that before retirement I had paid off my mortgage (I am 65, retired at 63). Actually I paid it off back when I was 50. However my older cousin just bought a new house in Florida at the age of 75. Not that I ...
by jimb_fromATL
Sat Apr 22, 2017 10:41 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 235
Views: 12643

Re: I don't understand the case for EE bonds

If you buy 10k each year and hold 20 years, the tax-deferred amount is $350 total over the 20 years each time. If you bought them 20 years running, the total would be about $7000. That's about 1.5 years worth of IRA contributions for a young person. I consider that small. Maybe I'm misunderstanding...
by jimb_fromATL
Sat Apr 22, 2017 11:59 am
Forum: Investing - Theory, News & General
Topic: What's Wrong With AQR? (Managed Futures)
Replies: 66
Views: 4883

Re: What's Wrong With AQR? (Managed Futures)

I have a small allocation in AQMIX and QMHIX. They are wonderfully mis-correlated with the markets. They go down regardless of what the equity markets or fixed income markets do :), I have large losses in them over the past 2+ years (nearly 3 maybe). On the plus side, they have been great for TLH. ...
by jimb_fromATL
Fri Apr 21, 2017 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Blowout [poor] investment RYJUX and replace with what?
Replies: 11
Views: 913

Re: Blowout [poor] investment RYJUX and replace with what?

... If you think you know what Janet Yellen is about to announce, better than the market does, and you want to go in before the announcement and out after it... if you've decided that's what you want to do, RYJUX could be a sensible way to do it. " ... much like saying that if you want to get ...
by jimb_fromATL
Thu Apr 20, 2017 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: Blowout [poor] investment RYJUX and replace with what?
Replies: 11
Views: 913

Re: Blowout [poor] investment RYJUX and replace with what?

Never heard of it until now, but after looking up its history, buying and holding seems like bad advice. According to the yearly performance data on Yahoo, the geometric mean -- or CAGR (Compound Annual Growth Rate) -- for RYJUX for total return on a single lump sum for 21 years from 1996 through 20...
by jimb_fromATL
Thu Apr 20, 2017 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: When does it make sense to start paying down (or off) a low rate mortgage?
Replies: 51
Views: 4448

Re: When does it make sense to start paying down (or off) a low rate mortgage?

IF You have maxed contributions to all available tax-deferred and tax-advantaged retirement plans such as 401(k), 403(b), IRAs, TSP, SEP, etc.; ...and IF you have adequate liquid assets set aside for emergencies (at least six months to a year of living expenses); ...and IF you have paid off virtuall...
by jimb_fromATL
Thu Apr 20, 2017 12:14 am
Forum: Investing - Help with Personal Investments
Topic: Which 500 Fund to Invest in.
Replies: 25
Views: 2715

This one, if you don't already have an account. https://www.schwab.com/public/schwab/investing/investment_help/investment_research/mutual_fund_research/mutual_funds.html?path=%2FProspect%2FResearch%2Fmutualfunds%2Ffees.asp%3Fsymbol%3DSWPPX ... and if you're pretty sure that Schwab will always have ...
by jimb_fromATL
Wed Apr 19, 2017 7:51 am
Forum: Personal Finance (Not Investing)
Topic: 20yr fixed, 30yr fixed, or 7/1 ARM
Replies: 48
Views: 3138

Re: 20yr fixed, 30yr fixed, or 7/1 ARM

.... Down payment exclusive of closing costs is $53,380.00. Lender A: 30 year CONV: 4.125% with a $5000 credit. P&I: $1081.87 7/1 ARM: 3.875% with a $5000 credit. [P&I] $1,004.05 Lender B: 30 year CONV: 4.125% with no credit: P&I: $1081.87 7/1 ARM: 3.375% with no credit: P&I: $943.9...
by jimb_fromATL
Mon Apr 17, 2017 11:22 pm
Forum: Investing - Help with Personal Investments
Topic: All in with Balanced Index fund
Replies: 33
Views: 3238

Re: All in with Balanced Index fund

That is a fantastic site, jimb! I did a hypothetical comparison using the vanguard 500 as benchmark relating to my current scenario [if it ended this yr]: 3k starting in vbinx with max roth contributions for 25 yrs [I didn't factor in the extra"catch up" one can contribute after 50]. Inte...
by jimb_fromATL
Mon Apr 17, 2017 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: Pension option-Should I include child?
Replies: 33
Views: 2110

Re: Pension option-Should I include child?

Teague wrote:Thanks to all for the input. I think I'd better head over to the consumer issues section now and look for a deal on crystal balls. If I could simply determine future events my job would be much easier.


We strive to please. LINK
jimb
by jimb_fromATL
Mon Apr 17, 2017 11:03 pm
Forum: Investing - Help with Personal Investments
Topic: All in with Balanced Index fund
Replies: 33
Views: 3238

Re: All in with Balanced Index fund

But, how about a 60/40 blend of VTI and BND, two Vanguard ETF's? I think those replicate VBINX pretty closely and the combined ER would be 0.044? ? It's easy to do at PortfolioVisualizer ... which I only recently learned about on this forum. If you register there (for free) you can also download th...
by jimb_fromATL
Mon Apr 17, 2017 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: All in with Balanced Index fund
Replies: 33
Views: 3238

Re: All in with Balanced Index fund

I think one reason is you could save on expenses by replicating the fund with two other Vanguard funds: The expense ratio for VBINX is 0.22. The fund is 60 % Total U.S. stock market and 40 % Broad U.S. Bonds. It seems to me you could replicate the fund by buying 60 % VTSMX (Total U.S. stock market)...
by jimb_fromATL
Mon Apr 17, 2017 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: Real estate rate of return?
Replies: 34
Views: 3105

Re: Real estate rate of return?

Yes, we'd have to take out a loan, and we do currently have a mortgage. I haven't yet talked to bankers, but that sounds like the next step. (Mortgage lenders are not in the business to speculate on rental income. So they typically will not consider potential income in your qualifying for the addit...
by jimb_fromATL
Mon Apr 17, 2017 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: Real estate rate of return?
Replies: 34
Views: 3105

Re: Real estate rate of return?

How high is up? No way to make even a wild guess without knowing how you're going to pay for it. So ... what kind of funds will you be liquidating for the down payment? and how much have they been earning? Have you talked to any lenders? How much do you expect to have to pay down, and what rate migh...
by jimb_fromATL
Mon Apr 17, 2017 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Pension option-Should I include child?
Replies: 33
Views: 2110

Re: Pension option-Should I include child?

From an accturially standpoint it's amazing! Can't believe they offer that good of a deal. Just teach your child it might disappear if state funding models change. I might not tell the child until you are older/sick How much of a reduction in your pension for the 50% child survivor choice? Like oth...
by jimb_fromATL
Mon Apr 17, 2017 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: 20yr fixed, 30yr fixed, or 7/1 ARM
Replies: 48
Views: 3138

Re: 20yr fixed, 30yr fixed, or 7/1 ARM

Alright folks, so here are my numbers: 7/1 ARM: 3.375% with a 5% immediate adjustment cap (and 5% lifetime) when the lock expires. 30 year fixed: 4.125% 20 year fixed: 3.875% The 30 year fixed is also available at 4.25% with a $2000 lender credit, ARM is available at 3.625 with a $1700 credit, and ...
by jimb_fromATL
Sat Apr 15, 2017 7:06 pm
Forum: Investing - Theory, News & General
Topic: Is there any reason a buy-and-hold investor would buy gold?
Replies: 121
Views: 6317

Re: Is there any reason a buy-and-hold investor would buy gold?

Here is a chart I was experimenting with a while back that seems to me to illustrate why you don't buy gold as a long term investment. The symbol "GOLDPRICE" was made up from the yearly changes in the closing price of gold each year, to compare with the yearly total gains for the mutual fu...
by jimb_fromATL
Fri Apr 14, 2017 9:13 am
Forum: Investing - Theory, News & General
Topic: Investing question
Replies: 16
Views: 966

Re: Investing question

Looks like the Nekkei would be a somewhat safer bet than lottery tickets. The Nekkei has never lost more than 91% in a single year. According to the monthly closing data from Yahoo, Since 01/1984 the average APY for a lump sum) for 217 rolling 12 month periods for Nekkia 225 has been 1.32%. $10,000 ...
by jimb_fromATL
Thu Apr 13, 2017 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: 20yr fixed, 30yr fixed, or 7/1 ARM
Replies: 48
Views: 3138

Re: 20yr fixed, 30yr fixed, or 7/1 ARM

I would use the ARM. If your plans change and you end up owning the home longer than 7 years, refinance. Taking the 30 year fixed instead of the 20 year fixed because you would rather invest the difference isn't a good idea, because the guaranteed higher interest rate for a 30 year fixed applies to...
by jimb_fromATL
Wed Apr 12, 2017 5:11 pm
Forum: Personal Consumer Issues
Topic: What to do at the end of the auto lease...
Replies: 15
Views: 995

Re: What to do at the end of the auto lease...

We have a base Honda CR-V AWD lease ending in August. It's a 3 year, 36,000 mile lease and we'll be about 6000 miles under limit. The car has been excellent and maintained according to the maintenance minder. This lease was $3000 and $200/month. Here are my options: 1. Buyout the lease for $16,000 ...
by jimb_fromATL
Wed Apr 12, 2017 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: 20yr fixed, 30yr fixed, or 7/1 ARM
Replies: 48
Views: 3138

Re: 20yr fixed, 30yr fixed, or 7/1 ARM

With a guess at the rate, and assuming the same costs out of pocket at closing, here are some numbers to ponder. If you want to give more specific details we can plug 'em in and get a closer estimate. _____ pay up front balance rate months payment total paid interest 30 year mortgage $0 $232,614 4.2...
by jimb_fromATL
Wed Apr 12, 2017 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Legality of renters posting reviews of a condominium complex?
Replies: 82
Views: 3490

Re: Legality of renters posting reviews of a condominium complex?

The management gets bad reviews because they are very strict on enforcing the rules and fining people. As an owner, I appreciate that. They deal with all kinds of stupid people, so have adopted a very rigid/unfriendly manner of doing business. Is it possible to be friendly and strict? I am not sure...
by jimb_fromATL
Wed Apr 12, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Legality of renters posting reviews of a condominium complex?
Replies: 82
Views: 3490

Re: Legality of renters posting reviews of a condominium complex?

But assuming that's not the case and these are just disgruntled tenants, what law do you think would prevent them from posting their opinions to website intended for that very purpose? The issue is they are not owners, just renters. A condominium serves it's owners , not renters. So I am confused w...
by jimb_fromATL
Tue Apr 11, 2017 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Selling my condo with owner financing?
Replies: 24
Views: 1564

Re: Selling my condo with owner financing?

Not to open a new can of worms, but here is an article on our building: http://www.chicagobusiness.com/realestate/20160608/CRED03/160609831/river-city-condo-owners-not-sold-on-apartment-conversion LOL ! I call them "human hives" ... and that one actually looks like a hive. :) jimb
by jimb_fromATL
Mon Apr 10, 2017 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Selling my condo with owner financing?
Replies: 24
Views: 1564

Re: Selling my condo with owner financing?

I suspect this is way beyond what anybody on a talk forum can advise. You need to talk to a real estate lawyer who is intimately familiar with your state and local laws, and with a real estate agent/broker who is really familiar with the local market -- and in this case, probably with experience wit...
by jimb_fromATL
Mon Apr 10, 2017 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone else own balanced index fund? [vbinx]
Replies: 26
Views: 3218

Re: Anyone else own balanced index fund? [vbinx]

I am a retiree and nearly 80 years old. I like this fund but it is not for me because it's too aggressive with 60% equities. I wish Vanguard had a fund like it with the percentages reversed i.e.with 40% equities and no internationals. Oh, to be 50 again (I can also take 60)! Wellesley (VWINX) is ro...
by jimb_fromATL
Mon Apr 10, 2017 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone else own balanced index fund? [vbinx]
Replies: 26
Views: 3218

Re: Anyone else own balanced index fund? [vbinx]

I doubt you'd go wrong with VBINX, but it appears that TRP's balance fund is not too shabby. And it looks like one of my favorites, Vanguard's Wellington (VWELX) has done slightly better. Looks like the exact date you open the fund and when you make future contributions, along with which way the win...
by jimb_fromATL
Sat Apr 08, 2017 1:43 pm
Forum: Personal Consumer Issues
Topic: Buying expensive car, how to keep payments low?
Replies: 149
Views: 8439

Re: Buying expensive car, how to keep payments low?

Actually, it's not unusual at all for dealers to sell late-model used cars for prices as high -- or higher --than an astute buyer would need to pay for a comparable new car at a big negotiated discount price ... even at the same dealership, and even for cash sales. It's also not unusual for used ca...
by jimb_fromATL
Sat Apr 08, 2017 7:58 am
Forum: Personal Consumer Issues
Topic: A SUV for towing a Travel Trailer
Replies: 71
Views: 4688

Re: A SUV for towing a Travel Trailer

- I went ahead & bought a new Highlander XLE AWD V6 & the 5000 lb Tow Prep comes standard. Congratulations. Hope you enjoy it. We've owned Toyotas for decades, and the Highlander would be at the top of my list if I were looking for a vehicle in that size, weight, towing capacity and price c...
by jimb_fromATL
Sat Apr 08, 2017 7:30 am
Forum: Personal Consumer Issues
Topic: Buying expensive car, how to keep payments low?
Replies: 149
Views: 8439

Re: Buying expensive car, how to keep payments low?

New car dealers where I am will keep a few used with lower miles cars on the lot and price them just below new. New XYZ $32,000, Used right here on the lot $31,500. Will the used one sell at that point? Probably not. I'm sure the dealer does not want it to sell. Buy new please. I've never worked in...
by jimb_fromATL
Sat Apr 08, 2017 12:02 am
Forum: Personal Finance (Not Investing)
Topic: Lump Sum Mortgage Prepayment to Extinguish PMI
Replies: 12
Views: 1045

Re: Lump Sum Mortgage Prepayment to Extinguish PMI

Lenders must drop PMI when your loan balance reaches 78% of the original purchase price at the time it would reach that point on the original loan schedule, but you can ask that they cancel it when you've paid it down to 80%. However, if you ask for it ahead of schedule, there's a good chance that y...
by jimb_fromATL
Fri Apr 07, 2017 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: Which 500 Fund to Invest in.
Replies: 25
Views: 2715

Re: Which 500 Fund to Invest in.

Does Yahoo included reinvested dividends? Yes. The yearly returns are generally the same -- and from the same sources -- as Morningstar and the brokerages themselves. Yahoo also has daily, weekly, and monthly closing data adjusted for dividends reinvested and splits, which helps in doing your own s...
by jimb_fromATL
Fri Apr 07, 2017 6:41 pm
Forum: Investing - Help with Personal Investments
Topic: Best taxable fund for potential future mortgage payoff
Replies: 23
Views: 1142

Re: Best taxable fund for potential future mortgage payoff

...My entire point here is to avoid tying up all our extra capital in the house through extra principle payments by instead using that extra income to build a separate investment account which can be used to pay off the mortgage sometime in the future. It is true that paying extra on the principal ...
by jimb_fromATL
Fri Apr 07, 2017 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Which 500 Fund to Invest in.
Replies: 25
Views: 2715

Re: Which 500 Fund to Invest in.

Here's how Fidelity compared to Vanguard, and how they both compared to the S&P 500 returns before any expenses. FUSEX = Fidelity 500 Index Investor (FUSEX) VFINX = VG S&P 500 Index S&P500 = Unadjusted S&P500 FUSEX: 25 yr lump sum APY= 9.005%; $10,000 lump 25 years = $86,323. DCA AP...
by jimb_fromATL
Fri Apr 07, 2017 11:38 am
Forum: Forum Issues and Administration
Topic: Please Try Out Test Posts Here
Replies: 167
Views: 149194

Tesing format for table with right justified variable width columns

Why growth of $10K lump sum is not best indicator of long term performance for investing in retirement funds 17 years 2000 - 2016 lump sum=$10,000 Yearly DCA=$4,000 fund CAGR $10,000 = DCA APY $4000/yr = Vanguard Total Intl Stock Index Inv VGTSX 2.614% $15,507 4.065% $99,195 Vanguard Total Stock Mkt...

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