Search found 48 matches

by gadoc
Sun Jan 08, 2023 8:07 pm
Forum: Personal Consumer Issues
Topic: Can I buy a 80-100k car?
Replies: 171
Views: 12191

Re: Can I buy a 80-100k car?

Ty for the replies. Quite a few interesting posts. Here are my thoughts. 1. I understand what the hedonic treadmill is. We have tried very hard over the past 15 years to avoid this as much as possible. I feel like we have done fairly well over the past eight years and paying off a lot of debt and saving up a decent size nest egg. Just last year we put almost 100 K into retirement accounts within additional 50 K into a taxable account. We did not buy our house for $1 million, it was 650. The house has appreciated to around 1 million. We live frugally. We buy hand me down clothes for the children. I dress like a homeless man. My wife is very good with money as well. There is this perception that makes it seem as if we were to buy this car, we...
by gadoc
Sun Jan 08, 2023 10:14 am
Forum: Personal Consumer Issues
Topic: Can I buy a 80-100k car?
Replies: 171
Views: 12191

Re: Can I buy a 80-100k car?

Hello bogleheads, i'm considering a purchase of a car between 80-100k. Looking at the taycan vs audi etron gt. Here is my current situation. My wife and I are 36 y/o with 3 kids. Here are assets and debts Assets: 1. HYSA 50k 2. Taxable account 400k 3. Retirement accounts 600k 4. home equity. house is probably worth about 1 mil , loan is 450k at 2.6% 30 yr Debts: only mortgage at 450k at 2.6%. payment is about 3000 with P&I an property taxes Income - 450K combined, very stable. Our back story is we finished residency about 8 yrs ago. We had about 300K of student loans which we paid off 5 yrs out of training. We have two paid of cars ( honda and toyota ). the honda is a 2021 and the toyota is a 2015 both in excellent condition. Our two o...
by gadoc
Sun Jan 08, 2023 10:00 am
Forum: Personal Consumer Issues
Topic: Can I buy a 80-100k car?
Replies: 171
Views: 12191

Re: Can I buy a 80-100k car?

I'm pretty torn on this purchase. I dont have any intention of retiring. My overall plan would be to continue working but to definately cut down the amount of shifts I do per year. I do know things change and can change quickly. Feelings of work also change as the older you get. On one hand I think it would be a great deal of fun to have a car like this, but then again does it really make a difference in my overall life satisfaction. On the other hand I dont think it would objectively change my financial position or my overall long tern goals very much when buying this car. We would still be saving in retirement accounts, taxable accounts and still be vacationing.

:confused :confused
by gadoc
Sun Jan 08, 2023 9:53 am
Forum: Personal Consumer Issues
Topic: Can I buy a 80-100k car?
Replies: 171
Views: 12191

Re: Can I buy a 80-100k car?

From a financial perspective, your current assets are way below what would be reasonable to buy a $100k car, but you're both making so much money, you have to hire someone to count it all, so going forward, sure. I'd ask if you've carefully looked at your car use with respect to electric. I have driven the e Tron GT and found it by far the best EV I've driven (including all Tesla Sedans), but when talking with the Audi salesman about doing long trips, which DW and I do plan and charging, it's far worse of a story than Tesla or the best case, gas. But if you're just driving around town, then charging in your garage would be ideal. From a power vs cost perspective, you can't beat a Taycan or e Tron. (note the RS e Tron is nothing more than p...
by gadoc
Sun Jan 08, 2023 9:44 am
Forum: Personal Consumer Issues
Topic: Can I buy a 80-100k car?
Replies: 171
Views: 12191

Re: Can I buy a 80-100k car?

AnnetteLouisan wrote: Sun Jan 08, 2023 9:32 am What is your rationale for getting it? What is the benefit? Is it to keep up with peer pressure from other doctors, impress the in laws or your spouse, fit in with your social circle or school, keep competitors away? Those might actually make sense. Are you living in an area where you are unlikely to get hijacked or keyed?

If there is a legitimate reason that will benefit you and your family, go for it. Otherwise, no.
We live in a safe are. I have always liked cars, the purchase would be for me. Has nothing to do with peer pressure or to impress anyone.
by gadoc
Sun Jan 08, 2023 9:26 am
Forum: Personal Consumer Issues
Topic: Can I buy a 80-100k car?
Replies: 171
Views: 12191

Can I buy a 80-100k car?

Hello bogleheads, i'm considering a purchase of a car between 80-100k. Looking at the taycan vs audi etron gt. Here is my current situation. My wife and I are 36 y/o with 3 kids. Here are assets and debts Assets: 1. HYSA 50k 2. Taxable account 400k 3. Retirement accounts 600k 4. home equity. house is probably worth about 1 mil , loan is 450k at 2.6% 30 yr Debts: only mortgage at 450k at 2.6%. payment is about 3000 with P&I an property taxes Income - 450K combined, very stable. Our back story is we finished residency about 8 yrs ago. We had about 300K of student loans which we paid off 5 yrs out of training. We have two paid of cars ( honda and toyota ). the honda is a 2021 and the toyota is a 2015 both in excellent condition. Our two ol...
by gadoc
Thu Nov 04, 2021 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Downshifting in early 30s (Am I Delusional?)
Replies: 85
Views: 11644

Re: Downshifting in early 30s (Am I Delusional?)

I'm 36, was also in a fairly similar position to you at 31. Different field, i'm a physician. I think medicine and law have quite a few similarities, its the norm and almost expected for us to work ridiculous hours and days. I have 3 young kids and now have a NW of around 1.5. I decided to cut back this yr and only do 14 shifts a month. I was doing quite a bit more but realized whats the point? I worked extra when I finished residency because of student and car loans. Those are gone now. I have a mortgage whichI can easily afford. was that extra 50k of extra shifts really making that much of a difference in my life? It wasnt making me happier. I was gone for days when my family was at home. it was actually making me miserable. What was both...
by gadoc
Tue Sep 29, 2020 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: My LenderFi refinance is going well
Replies: 1849
Views: 215518

Re: My LenderFi refinance is going well

So just to provide an update. I think that 2.25% no cost closing was a fluke. I never heard back from the mortgage company. I did reach out to Lenderfi. They offer a no-cost refinance to go to 2.625% from 3%. The total amount of cash needed to close is $100.I had a refinance with them lesson six months ago to get the 3% rate. It’s a 30 year fixed loan for about 500 K. Should I go ahead and move forward with this?
by gadoc
Tue Sep 29, 2020 7:31 am
Forum: Personal Finance (Not Investing)
Topic: My LenderFi refinance is going well
Replies: 1849
Views: 215518

Re: My LenderFi refinance is going well

I refinaced with lenderfi< 6 Months ago and got a rate of 3% for 30 year. I have been shopping around and I found a no-cost option for 2.2 530 year at a different company which I would like to proceed with. I heard that you were unable to refinance again until the six-month period is over. Does anyone know if this is true?
by gadoc
Sun Oct 21, 2018 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Put more than 20% down on a house?
Replies: 33
Views: 4492

Re: Put more than 20% down on a house?

Thank you all. So the impression im getting is to put less down? The difference I could invest. Another option would be to put less down and make a few extra payments throughout the years and then recast.

Psychologically only putting 20% down on a 650 house doesnt seem enough. We just payed off our student loans and it just seems wrong to go into so much debt again. The counter point would be the house is an appreciating asset and im still building up my savings, just a larger percent would be going towards the house as opposed to a taxable account.

Thank you again
by gadoc
Sat Oct 20, 2018 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Put more than 20% down on a house?
Replies: 33
Views: 4492

Re: Put more than 20% down on a house?

I'm not sure I feel comfortable going with a 15 yr mortgage. That would be a pretty large monthly payment. I do plan on paying extra mortgage payments but I would like the flexibility of not having a large payment due every month.
by gadoc
Sat Oct 20, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Put more than 20% down on a house?
Replies: 33
Views: 4492

Re: Put more than 20% down on a house?

Those are incredibly cheap taxes on a house that price. I would jump on this deal right away with 20% or any down payment you are comfortable with. Whatever the P&I payment is almost does not matter since it's far offset by the low tax payment. I would die for taxes like that on house like that. I would even go for a better house if the taxes were a similar low rate. Taxes here would be around $1400-$1800 a month on that house and they would be hiked 2-3% a year even if house values went down. $3325/month for a total payment including homeowners for a (I am assuming nice) 3800sf house in a decent area and setting is great. OMG, what a bargain. And I'm not even comparing it to crazy places like SF or LA, just modest fringe suburbs with ...
by gadoc
Sat Oct 20, 2018 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Put more than 20% down on a house?
Replies: 33
Views: 4492

Re: Put more than 20% down on a house?

29% is an odd number for a down-payment, so I suspect that is the point of consuming all of your savings. The fallacy of of consuming all your savings to do that, is you are now 1 lost pay check, or one unexpected major expense away from disaster. I'd opt for the lower down-payment keeping the difference in reserve. That $60,000 difference equates to 16 months of covering your payments if there is a job loss or illness/injury that prevents getting pay-checks, without jeopardizing your your home. It gives you time to work things out. After buying, if you find you have extra money cash flow, then you can us that for extra payments that reduce the term of the loan. Thank you for the response. I'm not sure why i put 29%. It would be 30%. Putti...
by gadoc
Sat Oct 20, 2018 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Put more than 20% down on a house?
Replies: 33
Views: 4492

Re: Put more than 20% down on a house?

We are looking to buy a house that is around 695,000. about 3800 sqft in a semi high cost of living town. the price of the house is about 2x our income. Option A would be If i were to put 20% down that would be 139,000. the break down would be as follows. 1. P&I 2817. 2. Property tax 667 3. HOI would be 150 a month total would be 3633 for a 30 year fixed loan with a 4.5% interest rate Option B would to put 29% which would be 200,000, the break down would be as follows 1. P&I would be 2508 2. Property tax 667 HOI: 150 a month Total would be 3325 for 30% year fixed loan with a 4.5 interest Questions: 1. Now that i'm typing it out i'm not sure if it evens makes a difference which option I pick. The difference is only 308. Am i thinkin...
by gadoc
Sat Oct 20, 2018 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Put more than 20% down on a house?
Replies: 33
Views: 4492

Re: Put more than 20% down on a house?

I would invest it in my taxable account into a total stock market fund. Our jobs are both very stable so i'm not too concerned about job loss. Worst case scenario our families would help us.
by gadoc
Sat Oct 20, 2018 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Put more than 20% down on a house?
Replies: 33
Views: 4492

Put more than 20% down on a house?

We are looking to buy a house that is around 695,000. about 3800 sqft in a semi high cost of living town. the price of the house is about 2x our income. Option A would be If i were to put 20% down that would be 139,000. the break down would be as follows. 1. P&I 2817. 2. Property tax 667 3. HOI would be 150 a month total would be 3633 for a 30 year fixed loan with a 4.5% interest rate Option B would to put 29% which would be 200,000, the break down would be as follows 1. P&I would be 2508 2. Property tax 667 HOI: 150 a month Total would be 3325 for 30% year fixed loan with a 4.5 interest Questions: 1. Now that i'm typing it out i'm not sure if it evens makes a difference which option I pick. The difference is only 308. Am i thinking...
by gadoc
Sat Oct 13, 2018 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Should I sell my taxable account for down payment for a house?
Replies: 6
Views: 656

Re: Should I sell my taxable account for down payment for a house?

delamer wrote: Sat Oct 13, 2018 11:23 am Keep everything marked for downpayment and closing/moving in a high yield savings account.

Why mess with the stock market for money you need within a year? Compounded over time, stock market returns/dividends are superior. For any given year, they are a crapshoot.

Thats what im leaning towards. If i plan on using the money within the year why take risk in the market?
by gadoc
Sat Oct 13, 2018 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Should I sell my taxable account for down payment for a house?
Replies: 6
Views: 656

Re: Should I sell my taxable account for down payment for a house?

We should have about 200k saved by the time we move.
by gadoc
Sat Oct 13, 2018 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Should I sell my taxable account for down payment for a house?
Replies: 6
Views: 656

Should I sell my taxable account for down payment for a house?

Hello Bogleheads, i'm looking for advice regarding a house purchase within the year. We are looking to move to a house sometime next year which would cost somewhere between 550-650. Our combined gross income would be 300-350, which is stable. We have 60K in a high yield savings account and 60K in taxable account. With the recent market drop my taxable account went down to 57K. I plan on putting 30-35% down on a house. Would you sell the taxable account and place all the money in a high yield account just in case the market was to go down by 50%? I figure if the market did crash by 50% this would delay our move by a few months. We have no deadline to move but definitely are ready to go to a new city.

Thanks
by gadoc
Tue Aug 07, 2018 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: moving and house questions
Replies: 3
Views: 405

moving and house questions

Hello Bogleheads, I would love to hear your opinion on my current situation. I currently reside in a LCOL city but we are ready to go back to our home town which is a MCOL town. A little background first. We had about 300K of student loans and 80K of car loans with essentially nothing saved. Fast forward a couple years and thanks to bogleheads and WCI we have no student loans or consumer debt. We have about 400K in retirement accounts and about 100K of liquid savings currently ( 60 K in vanguard total stock market index fund and 40k in cash). we have life insurance, disability insurance, and max out retirement accounts available to us. My wife and I combined make about 350 currently. We may be taking a pay cut by about 50K so lets say our i...
by gadoc
Fri Dec 29, 2017 11:16 am
Forum: Personal Investments
Topic: muni bonds in taxable
Replies: 2
Views: 787

muni bonds in taxable

Does it still make sense to have muni bonds in taxable. With the new tax plan I will only have a little bit of income taxed at 32% now that the 24% bracket is much larger. Does it still make sense for me to use muni bonds in my taxable account or should I just use a regular bond fund?
by gadoc
Thu Dec 07, 2017 1:24 pm
Forum: Personal Investments
Topic: New to investing - Help with portfolio & basics
Replies: 11
Views: 1660

Re: New to investing - Help with portfolio & basics

Thanks for all of your responses. I am considering investing in some bonds (perhaps up to 20% as suggested by several posters). I have a few follow up questions. 1) How should I decide between a bond fund (e.g. I am considering Vanguard Intermediate-Term Bond Index Fund Admiral Shares (VBILX)) versus TIPS? Does the former have a higher predicted return? 2) Since I still have a lot of room in my tax-advanaged accounts, then I should not be considering munis, is that correct? I have a different take on holding a bond fund in a taxable account. I am currently 100% equity and am not to far out from residency as well. We max 403b and 457. I have about 7 K given to me from employer. So per year i'm putting 44k into a tax deferred account. I also...
by gadoc
Tue Nov 28, 2017 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: Too much house, right?
Replies: 88
Views: 11482

Re: Too much house, right?

I'm in exactly the same situation as you with roughly a similar income ( maybe slightly more ). I also have 2 small kids and my wife has gone part time. Congrats on paying off the loans, we have about 30K left. We also have about 300K in retirement assets and also about 70K in liquid funds. Difference is my wife is a physician and she will probably start working a bit more once kids are slightly older but probably will never go full time. WIth that said I would not get a house that costs that much. Way too expensive for me. I wouldnt want a mortgage of more than 500K. So if i were going to buy a house for 750 I would be sure i had 250 down before I moved. This might take a little longer to accumulate but I would feel much better with a smal...
by gadoc
Sat Nov 18, 2017 11:15 am
Forum: Personal Investments
Topic: Vanguard intermediate tax emempt vs CD
Replies: 4
Views: 1028

Vanguard intermediate tax emempt vs CD

What are your thoughts of vanguard intermediate tax empemt vs no penalty CD at Ally? I'm in 35% tax bracket so I know that this fund would belong in my taxable account after i've maxed out my desired bond allocation in my retirement accounts. I know the risk of holding a CD is that you can potentially lock in low interest rate. It doesnt seem as if the intermediate tax exempt bond is yielding much more than CD's at this time. Why would I chose to invest in the vanguard fund as opposed to a CD?
by gadoc
Tue Oct 17, 2017 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Grandparents want to give to grandkids
Replies: 33
Views: 4661

Re: Grandparents want to give to grandkids

They mentioned they would retain control of the money as the custodial until they felt the children were ready to recieve the funds. My understanding of custodial accounts is that at 21 they have full access to the funds regardless of whether or not the custodian deems they are ready for the money. is that correct?
by gadoc
Tue Oct 17, 2017 11:18 am
Forum: Personal Finance (Not Investing)
Topic: Grandparents want to give to grandkids
Replies: 33
Views: 4661

Grandparents want to give to grandkids

Hello I have 2 small kids < 3 and my parents would like to gift them some money. What is the best way to do this. i have 529 accounts, they could technically deposit money directly in that. They mentioned opening a custodial account. My only concern is that i'm not sure I would want my kids to have access to several thousand dollars at 21. Not sure how mature they will be and I think it may actually hurt rather than help. Whats the best way to go about this?
by gadoc
Fri Oct 06, 2017 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Student loan/investing advice
Replies: 5
Views: 693

Re: Student loan/investing advice

rate is 3.7 variable.
by gadoc
Fri Oct 06, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Student loan/investing advice
Replies: 5
Views: 693

Student loan/investing advice

Hello everyone I have a question regarding my finances and was hoping I could get some help. Over the last few years I have really tried to get my financial act together. about 3 years ago I have about 350,000 of student/car loans. i am down to 38K in loans left. I have about 220k in retirement accounts and 30K in a taxable account ( vanguard total stock market index) My asset allocation is essential 100% equity all vanguard total stock market index. I'm 31 so i'm trying to be somewhat aggressive. I just recently made a large payment ( 40 K for loans ) and only have about 10K in cash left. I dont have much of a dedicated emergency fund but I have about 30K in a Roth IRA and if a true emergency came up I could hopefully cash flow the rest. 1...
by gadoc
Fri Aug 04, 2017 1:17 pm
Forum: Personal Investments
Topic: Have municipal bonds without owning regular bonds?
Replies: 24
Views: 1399

Re: Have municipal bonds without owning regular bonds?

Total taxable 25K Total tax advantage 300K Desired AA 80/20 Desire lowest amount in taxable after crash: Don't really have a number. my taxable is low since I just started but I'm contributing 5-10k a month in it. Ok well 80/20 means you want 65k in bonds so even if your whole taxable is munis you still need bonds in tax-advantaged, right? (Or are you counting your emergency fund in your AA? That is a whole other bag of worms. The context of this conversation made me think you weren't counting it.) Probably the best way to accumulate wealth is 100% tax-efficient stock funds in taxable. This will give you the best risk/reward on your bonds since they will be tax sheltered, likely lowest RMDs in the future, and minimal tax drag on your portf...
by gadoc
Fri Aug 04, 2017 12:57 pm
Forum: Personal Investments
Topic: Have municipal bonds without owning regular bonds?
Replies: 24
Views: 1399

Re: Have municipal bonds without owning regular bonds?

Mega317 that's a great idea. Do you have 1 asset allocation for your tax deferred accounts and your taxable account or do you have 2 separate allocations? One allocation, just some math to determine how much of each asset class in taxable. I almost wonder if it makes sense for me to be 100/0 in my tax deferred accounts and maybe 70/30 in my taxable account. Eventually when I do need more bonds I would start buying in my tax deferred accounts and transitioning more to equity in my taxable account and holding some municipal bonds to have the desired allocation in bonds I so desire. I would only do this if 75% of the current taxable account is the floor. If you're willing to give your numbers I can show you how I'd do the math. The numbers I ...
by gadoc
Fri Aug 04, 2017 12:48 pm
Forum: Personal Investments
Topic: Have municipal bonds without owning regular bonds?
Replies: 24
Views: 1399

Re: Have municipal bonds without owning regular bonds?

Autopeep, the bulk of my savings are in retirement accounts but I have started contributing more in my taxable accounts and in the near future I will have more in my taxable accounts rather than in my retirement accounts. I just don't see the need for bonds in my tax advantaged accounts since I wont be using the money for 30 years. Maybe in about 10 years or so I could start adding more bonds in my retirement accounts. The main reason of having bonds in my taxable and not in my retirement account would be for peace of mind in the event of a market crash since I have a high probability of using the money in my taxable account over the next 30 years than assets accumulated in my retirement accounts. I do want to emphasize I do have fixed inc...
by gadoc
Fri Aug 04, 2017 12:45 pm
Forum: Personal Investments
Topic: Have municipal bonds without owning regular bonds?
Replies: 24
Views: 1399

Re: Have municipal bonds without owning regular bonds?

The main reason of having bonds in my taxable and not in my retirement account would be for peace of mind in the event of a market crash since I have a high probability of using the money in my taxable account over the next 30 years than assets accumulated in my retirement accounts. I do want to emphasize I do have fixed income assets such as CD's and a high yield savings account which probably cover a yr's worth of expenses. If you kept your taxable account 100% stocks you can still do this. You just end up with more bonds in tax deferred to keep your overall desired asset allocation. Lets say your taxable account is 100% stocks. Lets also say you put ALL your bonds in your retirement account. Lets then say the market goes down 20% and yo...
by gadoc
Fri Aug 04, 2017 12:27 pm
Forum: Personal Investments
Topic: Have municipal bonds without owning regular bonds?
Replies: 24
Views: 1399

Re: Have municipal bonds without owning regular bonds?

Mega317 that's a great idea. Do you have 1 asset allocation for your tax deferred accounts and your taxable account or do you have 2 separate allocations?

I almost wonder if it makes sense for me to be 100/0 in my tax deferred accounts and maybe 70/30 in my taxable account. Eventually when I do need more bonds I would start buying in my tax deferred accounts and transitioning more to equity in my taxable account and holding some municipal bonds to have the desired allocation in bonds I so desire.
by gadoc
Fri Aug 04, 2017 12:16 pm
Forum: Personal Investments
Topic: Have municipal bonds without owning regular bonds?
Replies: 24
Views: 1399

Re: Have municipal bonds without owning regular bonds?

Autopeep, the bulk of my savings are in retirement accounts but I have started contributing more in my taxable accounts and in the near future I will have more in my taxable accounts rather than in my retirement accounts. I just don't see the need for bonds in my tax advantaged accounts since I wont be using the money for 30 years. Maybe in about 10 years or so I could start adding more bonds in my retirement accounts. The main reason of having bonds in my taxable and not in my retirement account would be for peace of mind in the event of a market crash since I have a high probability of using the money in my taxable account over the next 30 years than assets accumulated in my retirement accounts. I do want to emphasize I do have fixed inco...
by gadoc
Fri Aug 04, 2017 11:50 am
Forum: Personal Investments
Topic: Have municipal bonds without owning regular bonds?
Replies: 24
Views: 1399

Re: Have municipal bonds without owning regular bonds?

Do I pay taxes on income from interest if I don't sell my investments?
by gadoc
Fri Aug 04, 2017 11:39 am
Forum: Personal Investments
Topic: Have municipal bonds without owning regular bonds?
Replies: 24
Views: 1399

Have municipal bonds without owning regular bonds?

Hello all I had a question regarding muni bonds. I'm currently in a 33% federal tax bracket and was wondering if municipal bonds are appropriate for me. My wife and I have a 403b, 457, HSA, 401A which we max out. We also recently opened up a taxable account. My current asset allocation in all the accounts combined is about 80/20. I'm currently 30 and was wondering if it even makes sense to have any bonds in my retirement accounts since I wont be accessing this money for 30 years. If I don't have bonds in my retirement account would it make sense to have muni in my taxable account since this would be my liquid money. My reasoning for having muni in taxable would be that in a potential market crash this would give me a buffer for my liquid as...
by gadoc
Thu Oct 20, 2016 12:01 pm
Forum: Personal Investments
Topic: quick question [Investing in a taxable account]
Replies: 6
Views: 983

Re: quick question

We make too much to directly invest in a roth. I am currently looking into a backdoor ROTH.
by gadoc
Thu Oct 20, 2016 11:53 am
Forum: Personal Investments
Topic: quick question [Investing in a taxable account]
Replies: 6
Views: 983

quick question [Investing in a taxable account]

Hello quick question for you all. I would like to start investing in a taxable account. I have a 403B and 457 which I max out. My wife maxes out her 403A. Combined we are saving about 60K in tax deferred accounts. My asset allocation in both of these is about 80/20. As far as the taxable account I would like to keep this as simple as possible. I have aobut 7K a month to invest. I am 30 years old and would like to invest in a lifestratagy fund with an asset allocation close to 80/20. I keep hearing that the problem with this fund in a taxable account is that is is not tax efficient. What does this exactly mean? Can someone break this down in actual numbers for me? How much would I potentially lose to taxes if I invest 7K a month into this fo...
by gadoc
Mon Jun 20, 2016 11:54 am
Forum: Personal Finance (Not Investing)
Topic: making the right move?
Replies: 18
Views: 1994

Re: making the right move?

Thank you for the replies. Looks like the common theme is that if something were to happen whether it be an illness or death or anything negative I would be better off being debt free which would afford me flexibility. I understand that viewpoint but let me play devils advocate. Would you feel more secure having 150K in the bank and having 0 student loan debt OR lets say 300-500K liquid assets with 200K in debt. With both options still maxing out retirement accounts. If something were to happen to me I could make monthly payments without problems and live a conservative lifestyle if I chose to invest rather than pay off debt. I guess for me I would feel more comftorable having liquid assets knowing that I could pay off my loans at any time ...
by gadoc
Mon Jun 20, 2016 11:03 am
Forum: Personal Finance (Not Investing)
Topic: making the right move?
Replies: 18
Views: 1994

Re: making the right move?

Thanks for the replies. Lets put away emotions and feelings and think about this logically. I understand thats alot of debt and I honestly dont like it but i'm trying to think what works out best long term and mathematically.I am saying I have 10K to put either towards investing or paying back loans. I'm not saying that I am going to take the 10k and blow it on whatever. I'm assuming that if i go with a 60:40 assest allocation i would be hopefully having gains of more than 2.9%. In addition having money in an investment account gives me more liquidity. If this is the case why would I aggressively pay off these loans?
by gadoc
Mon Jun 20, 2016 10:02 am
Forum: Personal Finance (Not Investing)
Topic: making the right move?
Replies: 18
Views: 1994

making the right move?

Hello everyone, I would love to hear your opinion regarding my current situation. We are in the process of buying a home and just wanted to make sure I was making the right move. After taxes my wife and I bring in around 20k a month. We currently have 240K in student loans which were are paying 3500 a month on at 2.9% ( variable rate). We have about 110K in retirement savings( maxing out our retirements acoount with close to 65k a year ). We are buying a house that is 370K with <20% down. i would have 50K left over in liquid assets. There will be no PMI. Our monthly payment will be around 2K which include property tax, HOI, and principal and interest I am trying to figure out what the best move would be moving forward. My plan would be to s...
by gadoc
Fri May 06, 2016 5:35 am
Forum: Personal Finance (Not Investing)
Topic: house question
Replies: 6
Views: 1032

house question

Hello everyone, looking for some insight from you guys. We are looking to buy a house in the near future and would like to get some advice. We are currently renting a house and pay 1300 a month. It is a low cost of living area. A little information about myself and my wife. We are both 30. We have a small child who is 6 months old. I make 250,000 and my wife makes 100000. We have 240,000 in student debt which is at 2.9% and we are paying 3500 a month towards this. We max out all our retirement accounts ( my 403b and 457 and her 401k) and with the match are saving close to 60k a year in this. We have 100,000 saved up. I have a 529 and am contributing 2k a year just for the tax deduction. I have about 70k in cash saved up. My plan would be to...
by gadoc
Mon Mar 28, 2016 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Should I get a mortgage
Replies: 3
Views: 583

Should I get a mortgage

Hello all, I recently discovered this forum and would like to thank everyone for the valuable insight provided as it has been tremendously helpful. Here is my current scenario. I am renting a house for about 1400 a month. I have a wife and one child under 1 yr. We are wondering if she should go ahead and get a mortgage. Here are some aspects of my finances Our combined salary is close to 350,000 before taxes. ( very stable ). We own life insurance and I have d I am 31 y/o and we both have 90k in retirement accounts. we max out all our tax advantaged accounts including a 403b,457,and another 401k. With the match this is close to 60k a year I have about 70k cash. i contribute 2k a year in a 529 plan for the state deduction I have student loan...
by gadoc
Mon Nov 30, 2015 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: loan advice
Replies: 16
Views: 2743

Re: loan advice

the 100k of saving is for a house down payment. It's in an Ally account at 1%. I have about 15k in my taxable account at fidelity. What do you guys think about putting that 15k towards debt? Or would you rather just let it be for now. I'm planning on doing the snowball approach to the debt. I took out 25k from my ally account and will put that towards my car and will be paying extra every month. I plan on having both cars payed off by end of 2016. This will give me an extra 2000 a month to put towards saving or other debt. any thoughts?

Thank you again
by gadoc
Mon Nov 23, 2015 10:30 am
Forum: Personal Finance (Not Investing)
Topic: loan advice
Replies: 16
Views: 2743

Re: loan advice

Thank you all again for the advice. As of now I plan on not investing any further into my taxable fidelty account and will be putting the 1000 dollars towards debt. I plan on paying off the car loans first and then paying off the student loans. We try to live below our means and will continue to do so. I hope to be debt free in a few years! I have been on wci but i discovered the website after residency and after already buying my two cars. If i had found it earlier i prob would be in better shape but i hope we are on the right track now. If i have both my cars payed off I dont see why i couldnt get a 500k house with our income. We like this area we are in but i know we wont be happy here for another 2 plus years. If we are bringing in 15k ...
by gadoc
Mon Nov 16, 2015 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: loan advice
Replies: 16
Views: 2743

Re: loan advice

Thank you all so much for the advice. It is much appreciated. I have 1 million term insurance and my wife has 1 million term life insuran, both 30 years which we pay 500 and 700 dollars annually. We dont have any disability insurance as of yet. We have 1 child. I did forgot to mention an important piece to my student loans. My student loans are at a variable rate. My car loans are both fixed and are both 5 year loans scheduled to be payed off in 2019 with the minimum payments but we are paying extra. I am pretty debt adverse and would like to pay these off asap. my 90K loan is on a 5 year term and is scheduled to be payed off in 2020. My other large student loan is a 10 year loan scheduled to be payed off in 2025 if I made minimum payments....
by gadoc
Sun Nov 15, 2015 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: loan advice
Replies: 16
Views: 2743

Re: loan advice

My interest rate on both cars is 2.9%. My wife and I both had 15 y/o car's which were actively dying so we had to upgrade. We probably could have gone a bit cheaper but we are happy with our car's and will keep them hopefully for 10+ years.
by gadoc
Sun Nov 15, 2015 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: loan advice
Replies: 16
Views: 2743

loan advice

Hello everyone, I have been reading this forum for quite some time now and thought I would try to get some help regarding my finances. A little background first. I am a physician who finished residency recently. My wife is also a physician who is currently working part time. My salary is 250,000 guaranteed with up to 50K in bonuses. My wife salary is 100k. Here is what our financial situation is I have a HIS 457: we max this out ( 25k ) HIS 403B: max this out ( 10K ) HER 457: max this out ( 7K ) Her 403B: max this out ( 1 K) A taxable account in which I put 1000 dollars a month in ( Fidelty index fund target date of 2050). 529 in which we put 2000 a year into My car loan which is 35k, we are paying 1000 a month Her car loan which is 35k and...