Search found 1623 matches

by jimb_fromATL
Tue Jan 17, 2017 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: If I decide to overpay on mortgage payment
Replies: 40
Views: 3048

Re: If I decide to overpay on mortgage payment

I'm not interested in getting into a pissing contest over this... although I suggest anyone with an interest in this topic ask their lender the following question: "If I pay an extra $500 this month, does the interest that I owe for future payments change automatically, or does it follow the o...
by jimb_fromATL
Mon Jan 16, 2017 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: If I decide to overpay on mortgage payment
Replies: 40
Views: 3048

Re: If I decide to overpay on mortgage payment

Straying off the subject a bit, perhaps, but I have often wondered (and continue to a bit) why the calculating and charging of interest is different on most mortgage loans than consumer loans. In these days of computerization and electronic communication, why are things still being done this way? I...
by jimb_fromATL
Mon Jan 16, 2017 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: If I decide to overpay on mortgage payment
Replies: 40
Views: 3048

Re: If I decide to overpay on mortgage payment

I understand the appeal of limiting how much interest you are paying, but recognize that you won't see the return on those extra payments for 10-20 years, not until the mortgage is payoff and you get the cashflow back. Yep. That's why it's a good idea to max all available tax-deferred and tax-advan...
by jimb_fromATL
Mon Jan 16, 2017 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 51
Views: 3061

Re: is a 401k loan always terrible?

However, I've never heard of anybody suggesting to guarantee getting nothing but low returns in a 401(k) by investing only in low-return fixed income funds. The main reason for investing is in the hope that the stock market will continue to do as it has done for its entire history, and return more ...
by jimb_fromATL
Mon Jan 16, 2017 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: If I decide to overpay on mortgage payment
Replies: 40
Views: 3048

Re: If I decide to overpay on mortgage payment

My posts in this thread go into some details about how amortization schedules and prepayments work, and how the return on the investment for prepaying the mortgage compares to investing the extra money elsewhere This thread also addresses priorities including investing for retirement first and havin...
by jimb_fromATL
Mon Jan 16, 2017 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: Social Sec Statement - Taxed Medicare Earnings
Replies: 3
Views: 463

Re: Social Sec Statement - Taxed Medicare Earnings

In the social security statement, does the value in this field :" Taxed Medicare Earnings" include your pre-tax social security contributions? For example, if your taxable earnings ( W-2) was $95,000, but you contributed $5000 to your 401K pre-tax, your gross income for the year would hav...
by jimb_fromATL
Mon Jan 16, 2017 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 51
Views: 3061

Re: is a 401k loan always terrible?

Not sure of this, but doesn't a loan eliminate the primary benefit of the 401k ... tax deferment? Don't you repay the loan with after-tax dollars and then still have to pay taxes when it gets distributed? No, but that's a misunderstanding that you can find on a lot of websites and hear on talk show...
by jimb_fromATL
Mon Jan 16, 2017 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 51
Views: 3061

Re: is a 401k loan always terrible?

If the entire (or most) 401k is in the bond (fixed income) portion of your asset allocation (which is recommended for tax-efficient placement), wouldn't paying yourself 4-5% be not too bad? More so, when you are reasonably confident that you can pay "loan" back. I understand things can go...
by jimb_fromATL
Mon Jan 16, 2017 11:59 am
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 51
Views: 3061

Re: is a 401k loan always terrible?

This might not be a problem at all, if the borrower has allocated 401k funds in fixed rate investments that carry the same interest rate as the interest rate of the borrowing (or loan) made from the 401k. In many cases, the 401k borrowing is at the same rate as a stable value fund option in the 401...
by jimb_fromATL
Mon Jan 16, 2017 12:08 am
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 51
Views: 3061

Re: is a 401k loan always terrible?

Doesn't this amount to paying someone else interest to "borrow" your own money? A problem is that the way the loan rate is determined usually means that you're paying yourself an interest rate that is likely to be lower than you would be earning if the lump sum was invested in mutual fund...
by jimb_fromATL
Sun Jan 15, 2017 11:46 pm
Forum: Personal Finance (Not Investing)
Topic: Buying out another person's interest in shared property
Replies: 5
Views: 367

Re: Buying out another person's interest in shared property

My dad and I own a condo which is my primary residence where I live alone. I'm possibly interested in buying out his interest in it so that I become the sole owner. From what I can tell the process could be as simple as my giving him the money and him signing a quitclaim deed. Is that correct? Yep....
by jimb_fromATL
Sun Jan 15, 2017 11:05 pm
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 51
Views: 3061

Re: is a 401k loan always terrible?

Doesn't this amount to paying someone else interest to "borrow" your own money? Not really. If you borrowed money from a bank or mortgage company or other commercial lender, you would be paying the interest to someone else. But with a 401(k) loan, you're paying the interest to yourself. A...
by jimb_fromATL
Sun Jan 15, 2017 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: Can you exchange a 401k into a traditional ira
Replies: 9
Views: 630

Re: Can you exchange a 401k into a traditional ira

My wife has a 401K with some funds that I do not like. Her 401k is through Fidelity. I opened a brokerage 401k account with Fidelity and move some of the 401k money over there. I have a Traditional IRA (rollover) from a previous job that's invested at T.Rowe Price. I have the Capital Appreciation f...
by jimb_fromATL
Sun Jan 15, 2017 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 51
Views: 3061

Re: is a 401k loan always terrible?

Bad idea to rob the 401(k) for something like that project. IMO you need to either stop paying off other debts so fast, or borrow the money elsewhere, or not do the project until you can pay cash for it. While most folks think it can never happen to them, a big danger with a 401(k) loan is that if t...
by jimb_fromATL
Sun Jan 15, 2017 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k Withdrawl / Match Question - Home Down Payment
Replies: 10
Views: 425

Re: Roth 401k Withdrawl / Match Question - Home Down Payment

... So I have to decide if I want to contribute between now and July to get the match, or hold off for 7 months, to have more $ for the down payment and closing costs. Thanks a bunch! Glad to help. Here's something probably even more important to think about. You can look at the match as either a r...
by jimb_fromATL
Sun Jan 15, 2017 11:23 am
Forum: Investing - Help with Personal Investments
Topic: Dollar-Cost-Average over HOW MANY years?
Replies: 58
Views: 3337

Re: Dollar-Cost-Average over HOW MANY years?

If a person really is afraid of putting in the lump sum today because he might need the money tomorrow, he absolutely should not invest in the first place. This whole DCA thing is trying to have one's cake and eat it too. I disagree. If I ask someone to choose an investment with a 95% probability t...
by jimb_fromATL
Sun Jan 15, 2017 10:54 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401k Withdrawl / Match Question - Home Down Payment
Replies: 10
Views: 425

Re: Roth 401k Withdrawl / Match Question - Home Down Payment

I started a new job in Jan 2017 and it has a Roth 401k option. The employer match works out to 3.5% and you get the max matching as long as you contribute 6%. We are also in the process of building a new home and it is expected to be completed in 7 months. We have over 20% for the down payment, but...
by jimb_fromATL
Sun Jan 15, 2017 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Dollar-Cost-Average over HOW MANY years?
Replies: 58
Views: 3337

Re: Dollar-Cost-Average over HOW MANY years?

If the OP is interested in the maximum return, the probability is that DCA should be done over 1/365th of a year. Sometimes this has to be delayed to the next day the market is open. Dale A sampling of the S&P 500 index suggests that it wouldn't make enough difference compared to doing DCA mont...
by jimb_fromATL
Fri Jan 13, 2017 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: Just sold my home and looking to invest proceeds
Replies: 17
Views: 1128

Re: Just sold my home and looking to invest proceeds

Hi Everyone, My wife and I recently sold our home and we are looking to invest a decent chunk of it. I have about $400,000 to work with. I was thinking of putting $100,000 into savings/emergency funds which is very important since we are expecting our first child in a couple months. I'd be looking ...
by jimb_fromATL
Fri Jan 13, 2017 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: Real Estate Taxes - Help?
Replies: 2
Views: 349

Re: Real Estate Taxes - Help?

...In the example, let's assume I purchase a property that provides $8,000 a year in rental income, and I can write off $2,036 and $2,225 in both depreciation and interest respectively. Total operating expenses and total loan payments equal $5,784 per year. Incidentally, a little quick math makes m...
by jimb_fromATL
Fri Jan 13, 2017 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Real Estate Taxes - Help?
Replies: 2
Views: 349

Re: Real Estate Taxes - Help?

Essentially you get to subtract the mortgage interest, property taxes, the costs of maintenance and repairs, management fees, HOA or condo fees, advertising, travel, and other expenses related to renting out the property, plus the phantom depreciation allowance from the rental income. The remainder,...
by jimb_fromATL
Fri Jan 13, 2017 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar-Cost-Average over HOW MANY years?
Replies: 58
Views: 3337

Re: Dollar-Cost-Average over HOW MANY years?

Within my IRA, my desired allocation is 80 stock / 20 bonds. Presently, I'm at 67% stock, 20% bonds and 13% "cash". Because the stock market is at an all-time high (nearly 20,000), I don't want to use the "cash" to buy the stock all at once.. Here's my plan: does this make sense...
by jimb_fromATL
Fri Jan 13, 2017 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Now i get it - mortgage payoff
Replies: 44
Views: 7367

Re: Now i get it - mortgage payoff

Standard deduction for a married couple is $12600. If you pay $12600 in interest you get no real tax deduction. At 4%, that much interest means $315k mortgage balance. I don't know what the average house price in America is, but my guess is $315000 mortgage is way above average. If you have $400k m...
by jimb_fromATL
Fri Jan 13, 2017 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Now i get it - mortgage payoff
Replies: 44
Views: 7367

Re: Now i get it - mortgage payoff

I think another aspect often overlooked is that many people do not get a dollar for dollar deduction of mortgage interest once the standard deduction is factored in. In fact only about 30% of taxpayers (one out of every three or four depending on their area) exceeds the standard deduction and gets ...
by jimb_fromATL
Fri Jan 13, 2017 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: Explaining impact of front loads and fees on returns to sister
Replies: 20
Views: 1096

Re: Explaining impact of front loads and fees on returns to sister

You'd need to see some actual statements of her account before you can make a good argument against ABALX. A lot of funds waive the front-load fees for retirement accounts anyway, and according to Yahoo data for load-adjusted returns, there's very little difference between VWELX and AVALX. In fact d...
by jimb_fromATL
Fri Jan 13, 2017 9:50 am
Forum: Investing - Theory, News & General
Topic: "Millennials may need to double how much they save for retirement"
Replies: 152
Views: 11946

Re: "Millennials may need to double how much they save for retirement"

I think that comparing the percentages that one saves for retirement is not reflective of how much one is actually saving. My husband and I are both millennials. We both max our 401k and Roth. For me, the $23,500 that I save during the year between the two is equal to about 38% of my income. Husban...
by jimb_fromATL
Thu Jan 12, 2017 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Doing an intra-family loan
Replies: 18
Views: 971

Re: Doing an intra-family loan

Research the issue of whether a bank will give her a mortgage with an outstanding $200,000 loan. It is my understanding that they probably will not. That's what I thought, too. When we bought a home, the realtor said that any big deposit showing up in my bank account would get a lot of scrutiny. I ...
by jimb_fromATL
Wed Jan 11, 2017 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: Been renting for 10 years. Is it about time for me to get my own place?
Replies: 11
Views: 1697

Re: Been renting for 10 years. Is it about time for me to get my own place?

I have no idea which would be best, but here's some stuff to think about -- just in case you haven't thought a lot about the cost of buying a home compared to your current rent, or about the risks versus possible rewards. For a home selling for $800,000 with 20% down ($160,000) the balance would be ...
by jimb_fromATL
Wed Jan 11, 2017 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Interest Rate Calculation
Replies: 22
Views: 1152

Re: Interest Rate Calculation

I'm old fashioned. Never did figure out how to use a spreadsheet. I use a Texas Instrument BAll Plus financial calculator: N=60, PV=$50k, FV=$60,603.92 and compute for I/Y 3.85% (rounded to 2 places). Whatever, we still come up with the same answer. :beer The firmware algorithms in the handheld cal...
by jimb_fromATL
Wed Jan 11, 2017 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Interest Rate Calculation
Replies: 22
Views: 1152

Re: Interest Rate Calculation

At the end of 60 months you will have $60,604 and your original investment was $50k, so your return (interest rate) on the $50k for 60 months is 3.85%. I think. :happy Plenty close enough. =RATE(60, 0, 50000, -60603.77 ) * 12 returns 3.853% compounded monthly or =RATE(5, 0, 50000, -60603.77) return...
by jimb_fromATL
Wed Jan 11, 2017 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Interest Rate Calculation
Replies: 22
Views: 1152

Re: Interest Rate Calculation

If you want to be really precise what you will want to do is a Internal Rate of Return. You will want to model every cash flow in and out. You will need a spreadsheet to calculate this. I thought about taking an IRR approach. However, you can think of the loan plus savings account as a single entit...
by jimb_fromATL
Wed Jan 11, 2017 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Interest Rate Calculation
Replies: 22
Views: 1152

Re: Interest Rate Calculation

Can someone help me calculate my net interest rate for the following circumstance? I am loaning $50K for 60 months at a simple interest rate of 5.25%, the monthly payment to me will be $949.30 (loan is highly secured). I am going to deposit each monthly payment as it is received into an account tha...
by jimb_fromATL
Wed Jan 11, 2017 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: 401k reached critical mass - 21% increase in one year
Replies: 14
Views: 1619

Re: 401k reached critical mass - 21% increase in one year

I don't know what happened to my 401k but it seems to have reached critical mass. Since Jan 2016 I have experienced a 21% increase! :beer The portfolio is rather boglehead, just a mix of Fidelity 'target' funds. I contribute the max and employer match is effectively 5k/year. Anyone else see this? I...
by jimb_fromATL
Wed Jan 11, 2017 6:24 am
Forum: Investing - Help with Personal Investments
Topic: Discounted Mortgage
Replies: 7
Views: 839

Re: Discounted Mortgage

Current Situation 1. We are looking to buy second fixer-upper home/land. First home is paid-off and we plan to keep it for a while and do not sell it right away. 2. I have an option to get discounted mortgage from work at 2% rate for primary home. Looking to get about $1M mortgage. 3. I am thinking...
by jimb_fromATL
Tue Jan 10, 2017 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: Making a Loan to be Repaid by a Tax Refund (Charitable Activity)
Replies: 6
Views: 209

Re: Making a Loan to be Repaid by a Tax Refund (Charitable Activity)

You definitely need to talk to a tax professional before the charity tries to set up something like that. As I understand, Refund Anticipation Loans are still possible, but they have pretty much disappeared because new IRS regulations no longer make information available about whether the government...
by jimb_fromATL
Tue Jan 10, 2017 1:07 pm
Forum: Personal Consumer Issues
Topic: Anyone else having trouble with unrequested CVS auto-refills?
Replies: 55
Views: 2517

Re: Anyone else having trouble with unrequested CVS auto-refills?

We have the same problem. Despite repeated requests that they only refill when we ask for it, and despite continual promises to change, we still get automated calls about automated refills. We've been thinking about moving our business to a different nearby CVS, but it sounds like it may not just be...
by jimb_fromATL
Tue Jan 10, 2017 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: I'll never save a 20% down payment. Rent for life?
Replies: 138
Views: 12582

Re: I'll never save a 20% down payment. Rent for life?

jimb, I hear what you are saying. We are on the same page there. The thing with paying rent though is it is the same number every month. Boiler breaks? Same number. Roof leaks? Same number. You know as well I do it is not the case when owning a home, and if you don't have savings when the roof leak...
by jimb_fromATL
Tue Jan 10, 2017 11:18 am
Forum: Personal Finance (Not Investing)
Topic: I'll never save a 20% down payment. Rent for life?
Replies: 138
Views: 12582

Re: I'll never save a 20% down payment. Rent for life?

If they're able to pay more for rent than it will cost to live in the home with a smaller down payment and paying PMI, that's proof enough that they can afford it If home ownership only equaled PITI that might be true. Unfortunately there's the M and the U part as well (maintenance and upkeep), the...
by jimb_fromATL
Tue Jan 10, 2017 10:21 am
Forum: Personal Finance (Not Investing)
Topic: I'll never save a 20% down payment. Rent for life?
Replies: 138
Views: 12582

Re: I'll never save a 20% down payment. Rent for life?

The thing about the 20% is that it 'proves' you can save. Yes, you can buy a home without it, yes, it has worked well for many. In the end there is nothing like 'proof' of one's ability to save though. Through demonstrated proof of that you can greatly increase your confidence that once you own the...
by jimb_fromATL
Mon Jan 09, 2017 1:55 pm
Forum: Personal Consumer Issues
Topic: How to replace shower arm pipe? Plumbing question.
Replies: 26
Views: 1468

Re: How to replace shower arm pipe? Plumbing question.

But otherwise this should be a simple job as others have stated. Unless something inside the wall breaks off or springs a leak as others have cautioned may happen ... especially in pipes that age. If this shower arm is not leaking I suggest you let it alone. This thing is so old it is showing rust ...
by jimb_fromATL
Mon Jan 09, 2017 11:54 am
Forum: Personal Finance (Not Investing)
Topic: I'll never save a 20% down payment. Rent for life?
Replies: 138
Views: 12582

Re: I'll never save a 20% down payment. Rent for life?

I am currently staying away from home ownership because it would take away from my yearly dividend increases if I were to use some of that money for a down payment. I consider myself in the "it doesn't matter if you buy or rent" category since I'm at a point where my annual dividends coul...
by jimb_fromATL
Mon Jan 09, 2017 10:27 am
Forum: Personal Finance (Not Investing)
Topic: I'll never save a 20% down payment. Rent for life?
Replies: 138
Views: 12582

Re: I'll never save a 20% down payment. Rent for life?

If we could do it over we would have never bought a house and continued to rent. Our taxable portion of the portfolio would be bigger. ...And your landlord's income and wealth would be bigger because you would be the OP of Other Peoples' Money fame. You would be paying for the landlord's property f...
by jimb_fromATL
Thu Jan 05, 2017 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Good time for VGPMX? [Vanguard Precious Metals And Mining]
Replies: 18
Views: 1611

Re: Good time for VGPMX? [Vanguard Precious Metals And Mining]

As a real stock fund should it do better than holding gold as a commodity? Has it began paying a dividend again? I don't see how it could be compared to holding gold. You don't have the metal; all you have is paper, which won't be of much use if society as we know it does fail ... even worse that i...
by jimb_fromATL
Thu Jan 05, 2017 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Good time for VGPMX? [Vanguard Precious Metals And Mining]
Replies: 18
Views: 1611

Re: Good time for VGPMX? [Vanguard Precious Metals And Mining]

It does look like a much better gamble than lottery tickets. The gain of about 50% in 2016 has brought the 5 year average APY all the way up to -11.95% for the last 5 years. and has improved the average for 10 years to only -4.95%. If you had held on for 20 years you'd now have an APY of 4.05%. If i...
by jimb_fromATL
Thu Jan 05, 2017 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Should I participate in 401K even if it's American Funds & no Match
Replies: 24
Views: 1421

Re: Should I participate in 401K even if it's American Funds & no Match

IMO there's seldom any advantage in guaranteeing to pay taxes in your highest bracket now when there any chance that you might pay less after retirement. It seems like the higher fee is still not as bad as the advantage of getting to defer 28% taxes now and invest that money where it can earn compou...
by jimb_fromATL
Thu Jan 05, 2017 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Investing in tIRA to reduce tax bracket?
Replies: 7
Views: 520

Re: Investing in tIRA to reduce tax bracket?

Even with the bonus, you'll still be in the 15% bracket. The following is for 2016 for illustration, but there won't be much difference for 2017, since the standard deduction, personal exemption, and steps between the brackets will all be going up slightly. For 2016 a married couple with total incom...
by jimb_fromATL
Tue Jan 03, 2017 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for a quick check up and advice on where to put money after IRA is maxed.
Replies: 4
Views: 297

Re: Looking for a quick check up and advice on where to put money after IRA is maxed.

Sounds like you're in pretty good shape, and can afford to put your money to its best use to save the most taxes and give you the most potential saving and income for retirement. Do you have any more space under the $18K limit for your 401(k)? Do you have a state income tax? Do you have a mortgage? ...
by jimb_fromATL
Tue Jan 03, 2017 4:10 pm
Forum: Investing - Theory, News & General
Topic: How do you treat 401k Match for IRR Purposes?
Replies: 46
Views: 2097

Re: How do you treat 401k Match for IRR Purposes?

... I purposely exclude contributions and withdrawals to get a pure investment return. I sometimes think that I have a moderately good understanding of the math involved, but I have no idea how you can possibly calculate the return on any investment without accounting for how much was contributed t...
by jimb_fromATL
Tue Jan 03, 2017 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: 401k to IRA Direct Trustee to Trustee Transfer
Replies: 4
Views: 158

Re: 401k to IRA Direct Trustee to Trustee Transfer

Basically I just wanted to confirm that we could use the 401k plan to get her match then do multiple transfers per year (probably every six months) into her Vanguard IRA which obviously has much lower fees. Any hang ups that I’m missing? Those rollovers are generally in reference to inactive 401(k)...
by jimb_fromATL
Tue Jan 03, 2017 1:15 pm
Forum: Personal Consumer Issues
Topic: Running electrical wire (Romex) on outside of house without conduit. Allowed?
Replies: 29
Views: 2574

Re: Running electrical wire (Romex) on outside of house without conduit. Allowed?

By coincidence, I was reading recently about electrical problems and a comment was as follows: "We had a weird electrical thing at this place years ago. Power would wane and spike, with fire shooting out of a kitchen outlet at one point. Emergency situation, to say the least. Electrician deter...

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