Search found 27 matches

by somekevinguy
Fri Mar 24, 2017 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Primary residence mortgage over the 1.1M mortgage interest deduction cap ... what to do?
Replies: 13
Views: 1005

Re: Primary residence mortgage over the 1.1M mortgage interest deduction cap ... what to do?

How about paying down the mortgage with the inheritance plus liquid cash? Just looking at your portfolio, I am very concerned that you are over-exposed in real estate. That is a lot of risk to be taking - especially with an ARM on the second house - when you don't have a lot saved in your employer ...
by somekevinguy
Wed Mar 22, 2017 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Maxed out 401ks and Roth IRA. Now what?
Replies: 25
Views: 1573

Re: Maxed out 401ks and Roth IRA. Now what?

re: paying off mortgage For this particular situation, I would recommend against paying the mortgage down. Invest the money in the market instead. 1) OP is young (i.e. long time to retire - 30+ yrs) 2) OP is a 2 income family 3) OP has no kids yet 4) Subjective: Mortgage rate is not that high (in f...
by somekevinguy
Wed Mar 22, 2017 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

Interesting how one definition of "afford" seems to be the projected ability to make payments over 30 (or 40) years and the other is being able to pay it off faster and/or what should the relationship between the value of my home and my overall income and assets be. My crystal ball is bro...
by somekevinguy
Wed Mar 22, 2017 10:32 am
Forum: Investing - Help with Personal Investments
Topic: Maxed out 401ks and Roth IRA. Now what?
Replies: 25
Views: 1573

Re: Maxed out 401ks and Roth IRA. Now what?

@flamesabers - Thanks for the reply. We have no debt other than our mortgage. What sort of return can we expect on a CD ladder and I-bonds? It would need to be higher than a return we'd get on paying off our mortgage. @CoAndy and @Pranav - Thanks for the reply. I'm very tempted by working robot dow...
by somekevinguy
Wed Mar 22, 2017 9:57 am
Forum: Investing - Help with Personal Investments
Topic: Maxed out 401ks and Roth IRA. Now what?
Replies: 25
Views: 1573

Re: Maxed out 401ks and Roth IRA. Now what?

I guess it depends. What is your marginal tax bracket (federal + state and assuming you itemize deductions)? Your effective interest rate will be = (After-Tax Mortgage Rate) = (Mortgage Rate) * (1 – Marginal Tax Rate) So for example, if you were in the 33% federal bracket and paid no state income ta...
by somekevinguy
Wed Mar 22, 2017 7:02 am
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

Agreed that there is a fair amount of uncertainty. At current rates, our marginal bracket would be somewhere around 50% ( making the interest on a 1M loan half of what it might otherwise be). That being said, given the current administration and changes to ACA etc, that could be coming down quite a...
by somekevinguy
Tue Mar 21, 2017 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

Any South Bay/Peninsula regular hour commute is a nightmare. Check 511 traffic online and see for yourself. Given your income I don't think the $2m home is unaffordable, just don't go beyond. Another thing about this area is that rentals are also VERY expensive, perhaps $5k+ monthly for what you ar...
by somekevinguy
Tue Mar 21, 2017 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

Pretty far south San Jose (near Santa Theresa) . That is my major hesitation going too far north up the peninsula, despite a reverse commute for my wife going south. Given your thoughts though, it seems like my commute going north to PA is going to be a lot worse and so instead of splitting the dis...
by somekevinguy
Tue Mar 21, 2017 4:40 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

You don't say where in San Jose one of these jobs is going to be Pretty far south San Jose (near Santa Theresa) . That is my major hesitation going too far north up the peninsula, despite a reverse commute for my wife going south. Given your thoughts though, it seems like my commute going north to ...
by somekevinguy
Mon Mar 20, 2017 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

Rent. Simply put, you can't afford a $2M house. That's true because of your income. It's true because you can't afford the down payment. It's true because it would kill your liquidity. It's true because it would introduce huge risk at a time in your lives where you don't need to take on that much r...
by somekevinguy
Mon Mar 20, 2017 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

Thanks for the advice! I'd love to know when you might recommend buying (more like October-Feb? or?). Also, what would be your reccs on places to look (Campbell? West San Jose? Sunnyvale?) Thanks! While it is true there are other school options, it seems that homes in the better school districts te...
by somekevinguy
Sun Mar 19, 2017 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

With your income and given you're relatively new to the area I would rent and wait on a home purchase. You could easily save quite a bit to add to your down payment which would make a huge difference in putting together a competitive offer within our real estate market. Without knowing your timelin...
by somekevinguy
Sun Mar 19, 2017 7:35 am
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

This thread is getting interesting. There is so much discussion on these boards about asset allocation, tilting, being frugal, etc. But housing is just so ridiculously expensive in HCOL coastal areas that nothing really even compares in terms of moving the needle with respect to personal finances. ...
by somekevinguy
Sat Mar 18, 2017 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

I probably should keep my comments to myself, but it just seems crazy that anyone would want to live in these kinds of areas! Its a huge sacrifice to your financial independence in the future. I see the sexiness for the young tech family that just knows they will be the next facebook, but as a doct...
by somekevinguy
Sat Mar 18, 2017 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

I probably should keep my comments to myself, but it just seems crazy that anyone would want to live in these kinds of areas! Its a huge sacrifice to your financial independence in the future. I see the sexiness for the young tech family that just knows they will be the next facebook, but as a doct...
by somekevinguy
Sat Mar 18, 2017 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

Financial situation: Dual physician couple, combined income of 260K going to 570K. It would be good to spend the thirty bucks to buy tax software including California taxes and to do dummy tax returns as if you were living there. After Federal, State, and property taxes I would think that you would...
by somekevinguy
Sat Mar 18, 2017 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

We are in a similar income range in another HCOL area and kept our mortgage at less than 2x income for a couple of reasons. It gives us flexibility so that we can change jobs or take a lower paying job/ go part time. I'd also like the option of paying my mortgage off early and am not comfortable wi...
by somekevinguy
Sat Mar 18, 2017 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

At the end of the day, what we can afford is what we can afford- that being said, not purchasing anything (even a 300K closet) is at least leaving 150K on the table given the housing salary supplement so I think that has to change the math somewhat. Mostly wanted to get a sense of what similarly mi...
by somekevinguy
Sat Mar 18, 2017 7:59 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

Do as you wish, but don't assume anything, i.e. raises, being sure you won't be moving, job satisfaction, etc... It sounds like you guys are joining corporate medicine and I can GAURANTEE it won't be what you think going forward. Just realize buying this house will be like shackles attaching you to...
by somekevinguy
Fri Mar 17, 2017 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

As someone who lives on the Peninsula in the Bay Area and is therefore well aware of the housing prices in this area, I challenge your assumption that to get a decent house in a "good school district" you need to spend $2-3M. Part of it might be readjusting your expectations. Most people ...
by somekevinguy
Fri Mar 17, 2017 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

I consider the value of your employer assistance as max $150k, assuming you stay 9 years, given that the balance is loans, albeit at very favorable rates. The $150k is $16.7k/year, which after taxes is less than $10k/yr , which I don't consider life changing when you're talking about $2-3M homes. T...
by somekevinguy
Fri Mar 17, 2017 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

I am a physician in the Philadelphia area with 5 kids with an income of $300k living in a house worth about $620k. I think a good metric is to have a 20% down payment ($500k), 15 year jumbo fixed mortgage (3.75%), and your housing payment (mortgage + taxes) to be not more than 25% of your take home...
by somekevinguy
Fri Mar 17, 2017 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Re: Advice: Overextending by buying? How much house to buy?

I don't have your income but seems to me like these sweeteners distract you from the big picture. It's like saying, oh we will now have a washing machine if we buy a house and won't need to go to the laundry and will have $100 a month more to devote to the mortgage! Its funny math that doesn't help...
by somekevinguy
Fri Mar 17, 2017 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 54
Views: 4043

Advice: Overextending by buying? How much house to buy?

Would love to get some brutally honest thoughts- would we be overextending by buying a home? How much home would you be comfortable buying given the circumstances? Financial situation: Dual physician couple, combined income of 260K going to 570K. Down payment savings of ~300K (including ~100K equity...
by somekevinguy
Wed Mar 15, 2017 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: Another rent versus buy - moving from MCOL to VHCOL
Replies: 15
Views: 1401

Re: Another rent versus buy - moving from MCOL to VHCOL

Reading your post was like reading about nearly our exact situation. Moving from mcol area back to the Bay Area (where we did some training) as well. Dual physicians, same age, wife just finished fellowship, I've been practicing a few years, reasonably similar finances (although somewhat different w...

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