Search found 68 matches

by neophyte1
Wed Sep 27, 2017 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4537

Re: 20% Down Payment Sub-optimal?

Does anyone know if conventional mortgage interest rates are always better with the more you put down? As in, if you put down 5%, will your rate be worse than if you put down 20%? I believe so. What about 15% instead of 20%? Just curious if there's a percentage where it plateaus. Would be a helpful...
by neophyte1
Wed Sep 27, 2017 10:58 am
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4537

Re: 20% Down Payment Sub-optimal?

Does anyone know if conventional mortgage interest rates are always better with the more you put down? As in, if you put down 5%, will your rate be worse than if you put down 20%? I believe so. What about 15% instead of 20%? Just curious if there's a percentage where it plateaus. Would be a helpful ...
by neophyte1
Wed Sep 27, 2017 8:40 am
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4537

Re: 20% Down Payment Sub-optimal?

OP here, and everyone, again, I didn't write my post. It's copied from another site on the internet from a post by a person I do not know. I just thought they made some interesting points and was curious what those here thought. I have the money to do both a minimal down payment and also 20% (if and...
by neophyte1
Tue Sep 26, 2017 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth principal and later redeposit as tIRA?
Replies: 19
Views: 1788

Re: Withdraw Roth principal and later redeposit as tIRA?

OP, In order to be phased out of TIRA deduction, you must be covered by an employer plan like 401k. Are you maxing out your Traditional 401k? If not maxing out Trad 401k, consider increasing those contributions to get max deduction rather than messing with TIRA deduction and its phase out. DSIInves...
by neophyte1
Tue Sep 26, 2017 11:10 am
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4537

Re: 20% Down Payment Sub-optimal?

OP, 1) My neighborhood is one of the best in terms of real estate price recovery for this area since 2008/2009 recession. But, the house price is still below the 2004/2005 level. 2) Most folks that cannot afford 20% down payment has no extra money to maintain the house. Much less investing in the m...
by neophyte1
Tue Sep 26, 2017 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth principal and later redeposit as tIRA?
Replies: 19
Views: 1788

Re: Withdraw Roth principal and later redeposit as tIRA?

With Option A though and to use your example, the remaining $2,750 (+ gains) left in the Roth after half is recharacterized to the tIRA ... I can withdraw that $2,750 principal, correct? And leave in the gains? I don't see why not considering in this scenario I didn't "undo" anything and simply jus...
by neophyte1
Tue Sep 26, 2017 10:42 am
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4537

20% Down Payment Sub-optimal?

I came across an interesting post from someone elsewhere on the internet (to properly source, from user 'sardinesgivepower' on reddit -- mods, let me know if I should link) regarding reasons why a 20% down payment on a home is sub-optimal. The Bogleheads stance is seemingly always 20% down or don't ...
by neophyte1
Tue Sep 26, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth principal and later redeposit as tIRA?
Replies: 19
Views: 1788

Re: Withdraw Roth principal and later redeposit as tIRA?

A -- wait until 2018 when I know the deductible tIRA amount, then recharacterize that amount to the tIRA and withdraw the remaining Roth contribution balance leaving in the Roth earnings to avoid tax/penalty Or B -- withdraw the $5.5K now, leave the earnings in , and then only redeposit the deducti...
by neophyte1
Mon Sep 25, 2017 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth principal and later redeposit as tIRA?
Replies: 19
Views: 1788

Re: Withdraw Roth principal and later redeposit as tIRA?

Update -- still a bit confused on something here. I want to withdraw my 2017 $5.5K Roth contribution, and then later (after year's end) redeposit only the portion of it that is deductible in a tIRA. I'm only eligible for a partial deduction, and so I'd like to then pocket the difference and avoid th...
by neophyte1
Wed Jul 12, 2017 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: Do you count vehicle equity in net worth?
Replies: 203
Views: 11344

Re: Do you count vehicle equity in net worth?

To me, net worth is the sum total of my estate after all final expenses. So yes, whatever my vehicles would bring on the used-car market is part of that. (I currently have no outstanding auto loans.) So do you count things like furniture too? Just curious. I get your point and that's the technical ...
by neophyte1
Wed Jul 12, 2017 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Do you count vehicle equity in net worth?
Replies: 203
Views: 11344

Do you count vehicle equity in net worth?

As the subject says and just curious what the majority is. If you do, where do you draw the line? Count jewelry and other objects? Seems excessive and unnecessary.

I've always thought of net worth as most reference it as no more than cash, investments, and home equity.
by neophyte1
Tue Jul 11, 2017 7:54 am
Forum: Investing - Help with Personal Investments
Topic: Exchange or transfer? Does it matter?
Replies: 12
Views: 709

Re: Exchange or transfer? Does it matter?

*UPDATE* -- Just called Vanguard and I'm all good. Both a transfer and an exchange, when done between salary deferred retirement accounts, is NON-TAXABLE and so I have nothing to worry about that they were labeled differently in my transaction history.
by neophyte1
Mon Jul 10, 2017 11:03 pm
Forum: Investing - Help with Personal Investments
Topic: Exchange or transfer? Does it matter?
Replies: 12
Views: 709

Re: Exchange or transfer? Does it matter?

Thank you all. Will call them first thing in the AM.
by neophyte1
Mon Jul 10, 2017 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: Exchange or transfer? Does it matter?
Replies: 12
Views: 709

Re: Exchange or transfer? Does it matter?

Vanguard's definition of an "exchange" is to sell from one and buy another. Keep in mind that SIMPLE IRA and tIRA are two entirely different types of retirement accounts and one can do a tax free rollover from SIMPLE to tIRA, but it needs to be done properly. Here is additional info from the IRS: T...
by neophyte1
Mon Jul 10, 2017 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: Exchange or transfer? Does it matter?
Replies: 12
Views: 709

Re: Exchange or transfer? Does it matter?

Even if there is a sale of funds, in IRAs won't that be non taxable? Only if you are taking assets out of IRA (non Roth) event will be taxable, right? Yeah, unsure. I'm just assuming HueyLD was right here and I'm screwed, but we'll see if anyone else chimes in. I was reading about exchanges and it ...
by neophyte1
Mon Jul 10, 2017 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: Exchange or transfer? Does it matter?
Replies: 12
Views: 709

Re: Exchange or transfer? Does it matter?

OMG! Exchange means you sold the shares in one account and bought new shares in another account. You just created a taxable transaction. You need to call Vanguard ASAP. Hopefully they will correct it for you. Ugh, unbelievable. This guy today seemed suspicious to me with what he was saying. Fortuna...
by neophyte1
Mon Jul 10, 2017 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: Exchange or transfer? Does it matter?
Replies: 12
Views: 709

Exchange or transfer? Does it matter?

I have a SIMPLE IRA and tIRA with Vanguard. I as of a few weeks ago for the first time moved money from the SIMPLE to the tIRA via a 'transfer' which I executed by calling Vanguard in order to take advantage of Admiral Shares in the tIRA which aren't available in the SIMPLE. Today when I called, the...
by neophyte1
Mon Jul 03, 2017 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Which financial option -- A or B?
Replies: 26
Views: 1307

Re: Which financial option -- A or B?

7) Your number is wrong. The 200K mortgage is more than $500 per month. OP didn't say that his mortgage would be $500 per month, nor is that what you asked in question 7. CFM300, << 6) What is your annual expense before buying the house? > $48K/year or so. 7) What is your annual expense after buyin...
by neophyte1
Mon Jul 03, 2017 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: Which financial option -- A or B?
Replies: 26
Views: 1307

Re: Which financial option -- A or B?

If you were going to buy a $250K house with 20% down, which resulting financial scenario would you prefer (A or B)? In scenario B, would you lose any employer matching contributions? If not, what's the downside? You mention "sacrificing" 401(k) contributions, but you could bump your monthly contrib...
by neophyte1
Mon Jul 03, 2017 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: Which financial option -- A or B?
Replies: 26
Views: 1307

Re: Which financial option -- A or B?

KlangFool, Thank you. To answer your questions -- 1) What is the size and type of the house? Condo, Townhouse, Single Family Home? > Single family, 3 or 4 beds, 2 or 2.5 baths (haven't found one yet, this is hypothetical) 2) Is this your first house? You could spend 10K to 30K to furnish the house. ...
by neophyte1
Mon Jul 03, 2017 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Which financial option -- A or B?
Replies: 26
Views: 1307

Re: Which financial option -- A or B?

Choose option A since you're able to build your cash back up so quickly. Is there an option C for you where you can contribute less to your 401k for a few months to accelerate the replenishing of your e-fund but then cram for enough at the end of the year to make sure it's maxed out? Thank you and ...
by neophyte1
Mon Jul 03, 2017 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: Which financial option -- A or B?
Replies: 26
Views: 1307

Re: Which financial option -- A or B?

A. You can always reduce your contributions later if you need the money. $2,000 a month is a reasonably good surplus to build back. People are generally a bit tight when they buy their first home, you're fine. Even if you have a temp. cash flow problem, there are plenty of 0 APR credit cards to bri...
by neophyte1
Mon Jul 03, 2017 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Which financial option -- A or B?
Replies: 26
Views: 1307

Re: Which financial option -- A or B?

I would NOT be withdrawing ANY money from the 401(k). The difference between both options lies in me reducing my 401(k) contribution percentage in scenario B to have more cash on hand for after buying the house. You've gone from maybe 15% clarity to 35%. I can't offer any advice since I have no ide...
by neophyte1
Mon Jul 03, 2017 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Which financial option -- A or B?
Replies: 26
Views: 1307

Re: Which financial option -- A or B?

I would NOT be withdrawing ANY money from the 401(k). The difference between both options lies in me reducing my 401(k) contribution percentage in scenario B to have more cash on hand for after buying the house. You've gone from maybe 15% clarity to 35%. I can't offer any advice since I have no ide...
by neophyte1
Mon Jul 03, 2017 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Which financial option -- A or B?
Replies: 26
Views: 1307

Re: Which financial option -- A or B?

I would NOT be withdrawing ANY money from the 401(k). The difference between both options lies in me reducing my 401(k) contribution percentage in scenario B to have more cash on hand for after buying the house.
by neophyte1
Mon Jul 03, 2017 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Which financial option -- A or B?
Replies: 26
Views: 1307

Which financial option -- A or B?

If you were going to buy a $250K house with 20% down, which resulting financial scenario would you prefer (A or B)? In either scenario the cash could rebuild at a rate of $2,000 per month for foreseeable future after buying home. The below numbers are also less the closing costs on the home. EDIT si...
by neophyte1
Mon Jul 03, 2017 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Best, simple expense tracking iPhone app?
Replies: 5
Views: 384

Re: Best, simple expense tracking iPhone app?

Use excel to track your spending. I did this and always found myself thinking twice about a purchase because I would have to enter/track it when I got home. Now I've gotten to the point where I track my SAVING... not spending. That's more fun and I don't have to worry about spending side since I ha...
by neophyte1
Mon Jul 03, 2017 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Best, simple expense tracking iPhone app?
Replies: 5
Views: 384

Re: Best, simple expense tracking iPhone app?

Use excel to track your spending. I did this and always found myself thinking twice about a purchase because I would have to enter/track it when I got home. Now I've gotten to the point where I track my SAVING... not spending. That's more fun and I don't have to worry about spending side since I ha...
by neophyte1
Mon Jul 03, 2017 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Best, simple expense tracking iPhone app?
Replies: 5
Views: 384

Best, simple expense tracking iPhone app?

I've tried the major ones out there (e.g. Mint, YNAB, Personal Capital) but they have too much going on and too many features I don't need that complicates things. Does anyone know of any that meet the following, simplistic criteria -- Will sync with my Citi credit card Will let me manually input my...
by neophyte1
Mon Jul 03, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth principal and later redeposit as tIRA?
Replies: 19
Views: 1788

Re: Withdraw Roth principal and later redeposit as tIRA?

If you choose to have your contribution returned, be sure to be specific and ask that your 2017 Roth contribution be returned. Do NOT just ask for a dollar amount distribution. You can make a new contribution by 4/15/2018 for 2017, either a Roth or TIRA contribution. Since a Form 5498 will be issue...
by neophyte1
Mon Jul 03, 2017 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth principal and later redeposit as tIRA?
Replies: 19
Views: 1788

Re: Withdraw Roth principal and later redeposit as tIRA?

When you undo the contribution, any earnings from the time the money was in the account have to come out too. The custodian has to calculate this and you will have to pay tax on the earnings. That is why a simple withdrawal is not adequate. A call to Vanguard should work to get this done. Maybe the...
by neophyte1
Mon Jul 03, 2017 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth principal and later redeposit as tIRA?
Replies: 19
Views: 1788

Re: Withdraw Roth principal and later redeposit as tIRA?

I think you would have to undo the Roth contribution, rather than withdraw it in order to get satisfactory reporting from the custodian. If you just withdraw, you will likely get $11,000 of IRA contributions reported for 2017, half of which will be disallowed. If both traditional and Roth are with ...
by neophyte1
Mon Jul 03, 2017 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth principal and later redeposit as tIRA?
Replies: 19
Views: 1788

Re: Withdraw Roth principal and later redeposit as tIRA?

I'm not a tax guru but it sounds like what you should be looking at is to "recharacterize ira contribution" and you can google that. Right, but I wouldn't be able to recharacterize until 2018 as I won't know until then how much is deductible for the tIRA (i.e. the $5.5K won't all be and I don't wan...
by neophyte1
Mon Jul 03, 2017 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Withdraw Roth principal and later redeposit as tIRA?
Replies: 19
Views: 1788

Withdraw Roth principal and later redeposit as tIRA?

I already made my $5.5K Roth IRA contribution for 2017. If I withdraw the $5.5K now, will I still have until April 2018 to redeposit it (all or some portion of it, whichever amount is deductible) to a tIRA? I've seen conflicting information on this. Some sources say it's okay, others say only if it'...
by neophyte1
Sun Jul 02, 2017 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Down Payment vs. 401k
Replies: 21
Views: 1354

Re: Down Payment vs. 401k

I have the same question as OP. 10% down and keep hammering 401k to catch-up on not starting sooner or 20% down to avoid PMI but sacrifice 401k?

Curious to hear the replies here.
by neophyte1
Sat Jul 01, 2017 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Can't find houses less than 3.3x income. Can we afford it?
Replies: 40
Views: 4795

Re: Can't find houses less than 3.3x income. Can we afford it?

If I were you I'd try to find a 10% down product without PMI (many credit unions offer this in my area). You'll have a large cash buffer for unexpected maintenance, furnishing, and for a chunky emergency fund given the relative high cost of the mortgage in relation to your income. Aren't no PMI loa...
by neophyte1
Sat Jul 01, 2017 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Can't find houses less than 3.3x income. Can we afford it?
Replies: 40
Views: 4795

Re: Can't find houses less than 3.3x income. Can we afford it?

If I were you I'd try to find a 10% down product without PMI (many credit unions offer this in my area). You'll have a large cash buffer for unexpected maintenance, furnishing, and for a chunky emergency fund given the relative high cost of the mortgage in relation to your income. Aren't no PMI loa...
by neophyte1
Sat Jul 01, 2017 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Home equity as high % of net worth a bad thing?
Replies: 4
Views: 712

Home equity as high % of net worth a bad thing?

Assuming one can afford the mortgage payments and other associated costs with buying a house, is it suboptimal if after buying the house your equity in it suddenly becomes your largest asset? For example, let's say I have $110k net worth (70k cash and 40k retirement). If I buy a 250k house and put $...
by neophyte1
Mon May 08, 2017 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2372

Re: Taxable instead of Maxing 401(k)

If one is contributing to a 401(k) up to employer match for both husband and wife, and also maxing husband and wife IRAs, is it the worst thing in the world financially to fund taxable thereafter as opposed to maxing 401(k)? I understand all the benefits of maxing tax advantaged space, but I like t...
by neophyte1
Mon May 08, 2017 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2372

Re: Taxable instead of Maxing 401(k)

401K is not an "industry", it's part of the tax code. It certainly does fall under "investing" and the investment industry is huge and some parts are very bad. To address some of this guy's "cons"... 1) "You can't predict your tax rate 30 years from now." Sure, but paying taxes now is also a predic...
by neophyte1
Mon May 08, 2017 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2372

Re: Taxable instead of Maxing 401(k)

If one is contributing to a 401(k) up to employer match for both husband and wife, and also maxing husband and wife IRAs, is it the worst thing in the world financially to fund taxable thereafter as opposed to maxing 401(k)? I understand all the benefits of maxing tax advantaged space, but I like t...
by neophyte1
Mon May 08, 2017 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2372

Re: Taxable instead of Maxing 401(k)

Have you looked at Roth IRAs/backdoor Roth? It seems that you'd benefit more from investing in there, as you can always pull out principal, but the earnings keep growing tax-deferred. Thank you, and yes. The IRAs we max (11K per year) are both Roth. So perhaps this already provides enough liquidity.
by neophyte1
Mon May 08, 2017 10:01 am
Forum: Investing - Help with Personal Investments
Topic: How to Max 401(k) with Variable Income?
Replies: 7
Views: 571

Re: How to Max 401(k) with Variable Income?

I have a somewhat similar problem, although I pretty much never make bonuses. But my W2 income varies depending on hours worked, which varies depending on projects coming in, other stuff I have going on, etc. And I can only contribute a whole percentage amount. I look at my last few years of income...
by neophyte1
Mon May 08, 2017 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Taxable instead of Maxing 401(k)
Replies: 26
Views: 2372

Taxable instead of Maxing 401(k)

If one is contributing to a 401(k) up to employer match for both husband and wife, and also maxing husband and wife IRAs, is it the worst thing in the world financially to fund taxable thereafter as opposed to maxing 401(k)? I understand all the benefits of maxing tax advantaged space, but I like th...
by neophyte1
Mon May 08, 2017 9:43 am
Forum: Investing - Help with Personal Investments
Topic: How to Max 401(k) with Variable Income?
Replies: 7
Views: 571

Re: How to Max 401(k) within Variable Income?

Can you contribute a fixed dollar amount each month (i.e. $1.5k) to max the contribution limit and to get your employer match? If you have to use a percentage contribution and assuming this is your only salary you're making 401k contributions from, have you asked your payroll department to stop you...
by neophyte1
Mon May 08, 2017 9:07 am
Forum: Investing - Help with Personal Investments
Topic: How to Max 401(k) with Variable Income?
Replies: 7
Views: 571

How to Max 401(k) with Variable Income?

I make a salary plus some smaller bonuses. The bonuses account for anywhere from 5-10% of my overall income. My employer counts these bonuses as normal income that's eligible for 401(k) match. In order to fully maximize my employer's match and also max the federal contribution limit, I guess I just ...
by neophyte1
Tue May 02, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: 1 Per Year Limit on IRA Rollovers?
Replies: 13
Views: 602

Re: 1 Per Year Limit on IRA Rollovers?

Just spoke to another Vanguard rep who seemed to know a bit more than the last guy and he confirmed my transaction was a 'transfer' and NOT a rollover and said I can do this an unlimited number of times. Sorry for the confusion on my part and I sincerely appreciate everyone's help!
by neophyte1
Tue May 02, 2017 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: 1 Per Year Limit on IRA Rollovers?
Replies: 13
Views: 602

Re: 1 Per Year Limit on IRA Rollovers?

As has been pointed out a direct trustee -> trustee transfer is not a rollover and is not included in the once per 1 year period (no calendar year) restriction. It also does not matter whether it is by electronic transfer or check. As long as the check is made out to the new custodian. Many times t...
by neophyte1
Tue May 02, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: No 401(k) (have IRAs) - how does this affect early retirement?
Replies: 5
Views: 388

Re: No 401(k) (have IRAs) - how does this affect early retirement?

You could have your money saved under your mattress. If you have enough it does not matter what type of account it is in. But do you have enough? Do you have a plan for health insurance? The problem with IRA's is that there is a contribution limit of $5,500 per year. So if all your savings are in I...