Search found 432 matches

by jlcnuke
Tue Feb 27, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Back-Door Roth
Replies: 3
Views: 247

Re: Back-Door Roth

I'm not sure I completely understand what you're asking, but if you're asking if you can take tax deferred money and convert it to after tax money (Roth) without paying taxes, the answer is "no".
by jlcnuke
Tue Feb 27, 2018 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Buy outright or create new debt
Replies: 45
Views: 2469

Re: Buy outright or create new debt

It would be interesting to hear from someone (or some people) who have experienced either or both of these two scenarios: 1) You finance a new car with some money down, make a few payments, and the car is totaled in an accident. 2) You buy a car outright, and the car is totaled in an accident two m...
by jlcnuke
Tue Feb 27, 2018 1:56 pm
Forum: Personal Consumer Issues
Topic: Dealership oil change worth it?
Replies: 69
Views: 5191

Re: Dealership oil change worth it?

There is no difference in the quality of an oil change from a dealer mechanic vs any other competent person. So no, it's not worth the extra cost most charge you.
by jlcnuke
Tue Feb 27, 2018 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Buy outright or create new debt
Replies: 45
Views: 2469

Re: Buy outright or create new debt

If the mortgage and auto loan rates are reasonable (i.e. good credit so rates are low), then many prefer to take/keep the loans and invest the money to maximize my net worth in most cases. If you just can't sleep at night if you have any debt or are too scared of risk to invest in something likely ...
by jlcnuke
Tue Feb 27, 2018 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Buy outright or create new debt
Replies: 45
Views: 2469

Re: Buy outright or create new debt

If the mortgage and auto loan rates are reasonable (i.e. good credit so rates are low), then many prefer to take/keep the loans and invest the money to maximize my net worth in most cases. If you just can't sleep at night if you have any debt or are too scared of risk to invest in something likely ...
by jlcnuke
Tue Feb 27, 2018 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Buy outright or create new debt
Replies: 45
Views: 2469

Re: Buy outright or create new debt

If the mortgage and auto loan rates are reasonable (i.e. good credit so rates are low), then many prefer to take/keep the loans and invest the money to maximize my net worth in most cases. If you just can't sleep at night if you have any debt or are too scared of risk to invest in something likely t...
by jlcnuke
Mon Feb 26, 2018 6:49 pm
Forum: Personal Consumer Issues
Topic: Playa del Carmen Vacation -- Excursion and Restaurant tips
Replies: 17
Views: 1251

Re: Playa del Carmen Vacation -- Excursion and Restaurant tips

Cabs, and just about everything outside the resorts, I find paying in pesos is MUCH better; shops were generally pretty close on the exchange rate with actual around 19:1 in January and shops in the 17-18:1 range generally while cabs were probably 40% lower fairly often. Go to the cenotes at least o...
by jlcnuke
Mon Feb 26, 2018 6:40 pm
Forum: Personal Consumer Issues
Topic: Strategies for getting out of a car dealership quickly?
Replies: 78
Views: 7062

Re: Strategies for getting out of a car dealership quickly?

you: "I'm here to cancel the extended warranty" Salesperson "oh, that's terrible, can I " you: "no offense, but I've made up my mind, the reasons are irrelevant at this point, and it would save us both some time and trouble if we could get this done as quickly as possible so I can go about my day an...
by jlcnuke
Mon Feb 26, 2018 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: After Tax Savings Rate
Replies: 43
Views: 4205

Re: After Tax Savings Rate

All, thanks for the replies. Again, I'm looking in the year to year budget of life. I don't plan on retiring early, and our expenses may go up in the future (more travel, more x), but that's relatively discretionary. We're contemplating buying a home, which is a big expense for us, and would take u...
by jlcnuke
Mon Feb 26, 2018 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: After Tax Savings Rate
Replies: 43
Views: 4205

Re: After Tax Savings Rate

The charts are set up for 10% savings rates and average levels of income. The OP is already above 25% savings and "high tax rate" and likely in heavy tax territory with a very modest goal in time and expense. (mid 60's modest COL) I know from personal experience that the charts will be off by a fac...
by jlcnuke
Mon Feb 26, 2018 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: It's Official - We're Done
Replies: 51
Views: 11966

Re: It's Official - We're Done

Congrats!
by jlcnuke
Mon Feb 26, 2018 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Credit Cards?? [Credit card vs. debit card]
Replies: 107
Views: 4850

Re: Thoughts on Credit Cards??

My problem with debit cards has nothing to do with warranties etc, it is simply this - a hacked debit card takes your money, albeit it temporarily, while a hacked credit card takes your credit limit, albeit temporarily. A hacked debit card can mean your checking account can't cover that auto-draft ...
by jlcnuke
Mon Feb 26, 2018 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Credit Cards?? [Credit card vs. debit card]
Replies: 107
Views: 4850

Re: Thoughts on Credit Cards??

My problem with debit cards has nothing to do with warranties etc, it is simply this - a hacked debit card takes your money, albeit it temporarily, while a hacked credit card takes your credit limit, albeit temporarily. A hacked debit card can mean your checking account can't cover that auto-draft f...
by jlcnuke
Mon Feb 26, 2018 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Credit Cards?? [Credit card vs. debit card]
Replies: 107
Views: 4850

Re: Thoughts on Credit Cards??

Explain how that would work. "We want you to use credit cards for two months and bring us the receipts. Then two months with only cash. But this isn't about credit card versus cash spending." People would need to be pretty stupid not to figure out the study. My recollection of the study I looked at...
by jlcnuke
Mon Feb 26, 2018 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Credit Cards?? [Credit card vs. debit card]
Replies: 107
Views: 4850

Re: Thoughts on Credit Cards??

If you honestly think I was constantly thinking about trying to control spending, you're way off from the reality of the situation. Wanna know why my spending habits didn't change at all? Because my spending plan is to pay my bills, pay myself, then spend the rest. Spending the rest, whether cash o...
by jlcnuke
Mon Feb 26, 2018 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Credit Cards?? [Credit card vs. debit card]
Replies: 107
Views: 4850

Re: Thoughts on Credit Cards??

feel like I sometimes overspend A proven fact. People spend more with a card than if they were "exchanging " green bills. Cut back on the card ,use cash. See if you notice a difference for one month. :happy It's a "fact" that "in general" people spend more with credit cards... that's different than...
by jlcnuke
Mon Feb 26, 2018 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: After Tax Savings Rate
Replies: 43
Views: 4205

Re: After Tax Savings Rate

Ahh - but those income mutiples really do not work for high earners that are also high savers for many reasons. The multiples are fine for someone planning to do a "normal" work until "normal" retirement age (i.e. mi-60's) who have no need for "massive savings rates" for any special reason. For peo...
by jlcnuke
Mon Feb 26, 2018 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Credit Cards?? [Credit card vs. debit card]
Replies: 107
Views: 4850

Re: Thoughts on Credit Cards??

feel like I sometimes overspend A proven fact. People spend more with a card than if they were "exchanging " green bills. Cut back on the card ,use cash. See if you notice a difference for one month. :happy It's a "fact" that "in general" people spend more with credit cards... that's different than...
by jlcnuke
Mon Feb 26, 2018 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: After Tax Savings Rate
Replies: 43
Views: 4205

Re: After Tax Savings Rate

We're just starting out in our careers and will likely work until mid-60's. We live modestly now, but have never purchased a home together before. In that case, check your expected progression and try to make sure you're on track for numbers similar to those in this article https://www.investors.co...
by jlcnuke
Mon Feb 26, 2018 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: After Tax Savings Rate
Replies: 43
Views: 4205

Re: After Tax Savings Rate

This has much more to do with your current and expected expenses as well as your anticipated retirement date(s), SS, pensions and your overall portfolio and goals. Certainly these questions and choices have no good rules of thumb and if I would forward a guess it would require a lot more detail to ...
by jlcnuke
Mon Feb 26, 2018 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: After Tax Savings Rate
Replies: 43
Views: 4205

Re: After Tax Savings Rate

This has much more to do with your current and expected expenses as well as your anticipated retirement date(s), SS, pensions and your overall portfolio and goals. Certainly these questions and choices have no good rules of thumb and if I would forward a guess it would require a lot more detail to ...
by jlcnuke
Mon Feb 26, 2018 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: After Tax Savings Rate
Replies: 43
Views: 4205

Re: After Tax Savings Rate

This has much more to do with your current and expected expenses as well as your anticipated retirement date(s), SS, pensions and your overall portfolio and goals. Certainly these questions and choices have no good rules of thumb and if I would forward a guess it would require a lot more detail to ...
by jlcnuke
Mon Feb 26, 2018 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 16931

Re: Defining "House Poor"

One point to ponder is why do people need to upgrade or downsize their house? Why not buy a little late when you are sure about family and work needs and can pay that 20% downpayment. Wont you be in position to buy optimum house rather than dream house?( This dream house buying trend looks especial...
by jlcnuke
Mon Feb 26, 2018 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Defining "House Poor"
Replies: 299
Views: 16931

Re: Defining "House Poor"

So ... is buying a home, like bonds, more of a psychological decision (stability) rather than a wise financial decision ? It depends on your situation. If you're buying your "forever home" then financially it's almost always better to buy than to rent the same home. The reduction in inflation effec...
by jlcnuke
Mon Feb 26, 2018 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Credit Cards?? [Credit card vs. debit card]
Replies: 107
Views: 4850

Re: Thoughts on Credit Cards??

For those that use credit cards responsibly (i.e. only charge what you can pay, don't overspend, never pay interest, take advantage of credit card rewards), credit cards are preferable to paying in cash. For those who can't or won't use credit cards responsibly, they should avoid them until such tim...
by jlcnuke
Sun Feb 25, 2018 2:06 pm
Forum: Personal Consumer Issues
Topic: What vacations or weekend getaways are you taking this summer?
Replies: 24
Views: 1824

Re: What vacations or weekend getaways are you taking this summer?

Going to Cozumel for a bunch of diving the week of Memorial Day. Haven't planned anything else yet for this summer, but working on getting some friends together for another dive trip in the Caribbean Islands (haven't decided which yet) for either Thanksgiving or Christmas/New Years time-frame.
by jlcnuke
Sun Feb 25, 2018 10:56 am
Forum: Personal Consumer Issues
Topic: Pick up a part-time to get to FI faster or use that time to pursue my dream?
Replies: 11
Views: 1165

Re: Pick up a part-time to get to FI faster or use that time to pursue my dream?

sport wrote:
Sun Feb 25, 2018 2:32 am
wbadbada wrote:
Sun Feb 25, 2018 1:20 am
I could juggle all the above but that will be exhausting. I work to live, not live to work.
It seems you have answered your own question.
+1
by jlcnuke
Fri Feb 23, 2018 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Do you rent even if you can afford to buy?
Replies: 82
Views: 9351

Re: Do you rent even if you can afford to buy?

Maybe I’ll consider a home during the next recession Otherwise, home prices for what you actually get in my area are ridiculous If I’m spending half a million on something - I better love 99% of it at least. There’s a lot of “oh we’d just need to tear down several walls, update the kitchen, and fin...
by jlcnuke
Fri Feb 23, 2018 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Do you rent even if you can afford to buy?
Replies: 82
Views: 9351

Re: Do you rent even if you can afford to buy?

Maybe I’ll consider a home during the next recession Otherwise, home prices for what you actually get in my area are ridiculous If I’m spending half a million on something - I better love 99% of it at least. There’s a lot of “oh we’d just need to tear down several walls, update the kitchen, and fin...
by jlcnuke
Fri Feb 23, 2018 8:54 am
Forum: Personal Finance (Not Investing)
Topic: How am I really doing for retirement savings?
Replies: 45
Views: 4598

Re: How am I really doing for retirement savings?

If you currently make $60k/year and have total annual expenditures of $20k/year, you're doing amazing. If you currently make $600k/year and have total annual expenditures of $540k/year, you're doing terrible. I imagine you're somewhere in the middle of those two scenarios but can't say for sure beca...
by jlcnuke
Thu Feb 22, 2018 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Military FIRE; 7 years to go & losing motivation--HELP!
Replies: 36
Views: 3502

Re: Military FIRE; 7 years to go & losing motivation--HELP!

The access to retiree benefits alone is worth hundreds of thousands of dollars (if you FIRE and get a medical insurance plan for you and your wife you'd likely be spending 5-figures on premiums alone every year). Combine that with the pension income and other retiree benefits and sticking around an...
by jlcnuke
Thu Feb 22, 2018 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Would you pay off this debt?
Replies: 60
Views: 2490

Re: Would you pay off this debt?

Do you expect your investments to return more than 1.75% over the next year? More than 4.125% over the next 5? If so, don't pay off. Providing job flexibility is a red herring. You can always pay the debts off in the future in your want to change. Your reasons for paying off debt are psychological,...
by jlcnuke
Thu Feb 22, 2018 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Would you pay off this debt?
Replies: 60
Views: 2490

Re: Would you pay off this debt?

Personally, at 1.75% interest rate I'd just make payments and leave the cash that could pay it off invested (I don't think investments will fail to outperform that interest rate). At $500/month (you mention), it's going to be paid off sometime next year anyway, so unless having that debt is causing ...
by jlcnuke
Thu Feb 22, 2018 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Pay off car debt or invest??
Replies: 24
Views: 1249

Re: Pay off car debt or invest??

I would pay it off. A tax-free risk-free 3.49% is impossible to beat in today's rate environment. He's not limited to tax-free, risk free investments though... True. He can elect to invest and pay taxes on his returns. Which, using historic average market returns, would result in a higher net worth...
by jlcnuke
Thu Feb 22, 2018 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Military FIRE; 7 years to go & losing motivation--HELP!
Replies: 36
Views: 3502

Re: Military FIRE; 7 years to go & losing motivation--HELP!

I was an Air Force brat and an Air Force spouse (2x). The benefits to hanging in there are huge. Not having to worry about healthcare is wonderful. I survived going to 12 different schools before I graduated; that was tough for me because I'm an introvert, but I do have great memories of living in ...
by jlcnuke
Thu Feb 22, 2018 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Do you rent even if you can afford to buy?
Replies: 82
Views: 9351

Re: Do you rent even if you can afford to buy?

I rent AND I own... I own my retirement home (well, I will once I pay off the mortgage in ~9 years), but I don't live there (I moved my parents in there for their retirement home, I'll move there later). It's a bit farther from the city and wouldn't be a pleasant commute while I work in the city, bu...
by jlcnuke
Thu Feb 22, 2018 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Military FIRE; 7 years to go & losing motivation--HELP!
Replies: 36
Views: 3502

Re: Military FIRE; 7 years to go & losing motivation--HELP!

The access to retiree benefits alone is worth hundreds of thousands of dollars (if you FIRE and get a medical insurance plan for you and your wife you'd likely be spending 5-figures on premiums alone every year). Combine that with the pension income and other retiree benefits and sticking around ano...
by jlcnuke
Wed Feb 21, 2018 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Spending and saving - am I on it, or in for it?
Replies: 29
Views: 4526

Re: Spending and saving - am I on it, or in for it?

Detroit lost ~1/3rd of it's population in just 2 decades. Is that going to happen where you live? I can't tell you, but I bet the people buying property there in the 1970's weren't expecting it to happen either. If that happened to your city over the next 20 years, how would you feel about choosing ...
by jlcnuke
Wed Feb 21, 2018 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Rant about Savings Rate
Replies: 25
Views: 2162

Re: Rant about Savings Rate

Okay forget about savings rate. How about keeping track of TOTAL dollars saved and invested each year. In the end that is what compounds and not savings rate. Good luck. Savings rate can draw a direct correlation to how long until you can retire. Dollar figures are more convoluted (I saved $40k... ...
by jlcnuke
Wed Feb 21, 2018 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Rant about Savings Rate
Replies: 25
Views: 2162

Re: Rant about Savings Rate

What I get caught up on is how to factor 401k matching. I am fortunate to get a 6% match at work with no limit. Do I count that as part of my income, even though I wouldn't get it if I wasn't saving? For instance, if I make 100k and contribute 10k, getting another 6k match, is my savings rate: a) 1...
by jlcnuke
Wed Feb 21, 2018 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Rant about Savings Rate
Replies: 25
Views: 2162

Re: Rant about Savings Rate

What I get caught up on is how to factor 401k matching. I am fortunate to get a 6% match at work with no limit. Do I count that as part of my income, even though I wouldn't get it if I wasn't saving? For instance, if I make 100k and contribute 10k, getting another 6k match, is my savings rate: a) 1...
by jlcnuke
Wed Feb 21, 2018 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off car debt or invest??
Replies: 24
Views: 1249

Re: Pay off car debt or invest??

I would pay it off. A tax-free risk-free 3.49% is impossible to beat in today's rate environment. He's not limited to tax-free, risk free investments though... True. He can elect to invest and pay taxes on his returns. Which, using historic average market returns, would result in a higher net worth...
by jlcnuke
Wed Feb 21, 2018 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off car debt or invest??
Replies: 24
Views: 1249

Re: Pay off car debt or invest??

greg24 wrote:
Wed Feb 21, 2018 4:39 pm
I would pay it off. A tax-free risk-free 3.49% is impossible to beat in today's rate environment.
He's not limited to tax-free, risk free investments though...
by jlcnuke
Mon Feb 19, 2018 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Emergency costs
Replies: 22
Views: 1463

Re: Emergency costs

After reading the White Coat Investor’s post on minimizing emergency costs and about 1000 emergency fund posts, it got me thinking. What kind of an emergency am I planning for and how much does it cost? I came up with three ideas 1-immediate job loss (of either me, my spouse, or both - I’ve lived t...
by jlcnuke
Fri Feb 16, 2018 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: How much would paying a lump sum toward my loan save me?
Replies: 12
Views: 874

Re: How much would paying a lump sum toward my loan save me?

https://www.bankrate.com/calculators/college-planning/loan-calculator.aspx Either way, do you expect the market returns to be lower than 3.5% (your interest rate)? If not, you expect to have a higher net worth by investing. If you think the market will perform worse than that 3.5%, then you expect t...
by jlcnuke
Fri Feb 16, 2018 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: I'm Cancelling My Home Insurance
Replies: 156
Views: 11588

Re: I'm Cancelling My Home Insurance

You didn't mention WHY you want to cancel it. You buy insurance for something you can't afford to lose and you shouldn't buy what you don't need. I cancelled my life insurance years ago because our net worth could take care of my family if something were to happen to me. TravelfoFun You buy insuran...
by jlcnuke
Fri Feb 16, 2018 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Net Worth - How am I doing?
Replies: 14
Views: 2532

Re: Net Worth - How am I doing?

If you're earning $30k/year you're doing very well. If you're earning $300k/year you're quite a bit behind where you should be.
by jlcnuke
Fri Feb 16, 2018 9:40 am
Forum: Personal Consumer Issues
Topic: USAA 41% More For Car Insurance
Replies: 43
Views: 2778

Re: USAA 41% More For Car Insurance

Their prices have always kept me with other car insurance companies. I do have my mortgage through USAA (though I don't care for the company that they have contracted out servicing the loans for, but that's a different story).