Search found 38 matches

by somekevinguy
Sun Jul 16, 2017 8:49 am
Forum: Personal Consumer Issues
Topic: San Jose and San Francisco Trip
Replies: 24
Views: 1718

Re: San Jose and San Francisco Trip

Thanks for the ideas of memorable places! May I have input for the $ side: What city should we pick for our hotel if we will likely visit places both in San Jose and San Francisco? I notice Palo Alto, San Mateo, Daly City. Should I go for Uber with two booster seats or just rent a car? Should I jus...
by somekevinguy
Wed Jul 05, 2017 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking advice on 1.2m (now 900K) house purchase
Replies: 188
Views: 11216

Re: Seeking advice on 1.2m house purchase

Nope. Definitely would not. Missing from your post is why you want to buy at all. You don't list your current rent expense. We've had more and more folks posting here about feeling like they must buy because their VHCOL market will never come down again, and it's just never a good idea that I can s...
by somekevinguy
Sat Jul 01, 2017 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Can we/should we afford a $2M house?
Replies: 93
Views: 12301

Re: Can we/should we afford a $2M house?

One thing I think a lot of people fail to appreciate in situations like this is the power of what I'll call "spend leverage." The couple that makes $100k gross and $75k net of taxes may have $40k of annual recurring expenses (food, entertainment, TV/internet, vacations, etc) and $35k for ...
by somekevinguy
Wed Jun 07, 2017 1:53 pm
Forum: Personal Consumer Issues
Topic: Suit for [medical] residency interviews
Replies: 57
Views: 3439

Re: Suit for residency interviews

associate program director and 2 physician household Echo much of what has been said above. Basically, the goal is to NOT stand out. If it fits reasonably well, no one cares if your suit or tie cost you an arm and a leg. I've worn $150-200 suits and $15 ties from TJ Maxx and made it to some of the m...
by somekevinguy
Thu Apr 27, 2017 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Any regrets living a frugal life for high income/high networth individuals?
Replies: 170
Views: 21070

Re: Any regrets living a frugal life for high income/high networth individuals?

No current regrets but this is something I've definitely been thinking about. Relatively high income and net worth but also fairly young and considering buying in the super expensive Bay Area. Debating whether we should extend our frugality to the housing search. Like many here, I generally value ex...
by somekevinguy
Thu Apr 20, 2017 5:01 pm
Forum: Investing - Theory, News & General
Topic: How inefficient is it to hold Total Bond Index in a taxable account?
Replies: 40
Views: 5782

Re: How inefficient is it to hold Total Bond Index in a taxable account?

while I would agree that if you are in a very high marginal tax bracket, bonds (except for Munis) make less sense in taxable, it may still depend.

An alternative perspective from EmergDoc: http://whitecoatinvestor.com/asset-loca ... n-taxable/
by somekevinguy
Fri Apr 14, 2017 7:06 pm
Forum: Personal Consumer Issues
Topic: Anyone else decided not to finish med school?
Replies: 55
Views: 6598

Re: Anyone else decided not to finish med school?

Echoing the others on this board...both wife and I are physicians and it is a long road that gets progressively more difficult from first or second year of med school. That being said, I would say 1st and 2nd year med school have the most resemblance to undergrad and the least resemblance to the act...
by somekevinguy
Mon Apr 10, 2017 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for first time homebuyer (a friend)
Replies: 25
Views: 2639

Re: Advice for first time homebuyer (a friend)

Never take on a mortgage that exceeds twice your gross income after down payment. Never say never. Our mortgage exceeds 3x after we put 30% down. But since we live the BH lifestyle, we already have a big nest egg and making payments is not a problem. As someone considering buying in a VHCOL area, t...
by somekevinguy
Mon Apr 10, 2017 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 57
Views: 5242

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

At the risk of repeating others, are you concerned about being locked into one employer for 20 years? To some extent yes- though we would both consider these our "Dream jobs" that is easier to say now and that can always change. I suppose one of the worst case scenarios is, we get locked ...
by somekevinguy
Mon Apr 10, 2017 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Overextending by buying? How much house to buy?
Replies: 57
Views: 5242

Re: 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 equit...
by somekevinguy
Mon Apr 03, 2017 10:44 am
Forum: Personal Consumer Issues
Topic: Weird house buying experience
Replies: 123
Views: 7254

Re: Weird house buying experience

I think I get it. As someone who also highly values "fairness," I might feel like the builder is being unfair and reneging on a previous commitment. However, as a dispassionate observer only hearing your side of the story thus far, I'd agree with the vast majority of the other BH'ers. It r...
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: 1256

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: 1820

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: 57
Views: 5242

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: 1820

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: 1820

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 57
Views: 5242

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: 1577

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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