Search found 16 matches

by Kdots
Wed Sep 20, 2023 1:21 pm
Forum: Personal Investments
Topic: Portfolio Review and any advice?
Replies: 3
Views: 527

Portfolio Review and any advice?

Emergency funds: Yes, I have 6+ months. Debt: Mortgage, $91,000, 3.375% (shared with partner, 13.5yrs remaining) Tax Filing Status: Single, Self-employed Tax Rate: 12% Federal, 5.4% State State of Residence: MO Age: 42 Income: ~$40,000-50,000, hard to know until end of year, my business is seasonal and only in its second year. Last year was $35,000, but currently at $33,000 for this year. Monthly expenses are around $1700 I do spend around $6000-8000 on travel a year. :shock: Worth it! Total current assets ~170k + emergency fund Taxable 24% cash (in savings at 4.3%) 35% Vanguard Total Stock Market Index (VTSAX) (0.04%) 5% Vanguard FTSE Social Index (VFTAX) (0.14%) 2% Vanguard Total Intl Index (VTIAX) (0.11%) Roth IRA at Vanguard 34% Vangua...
by Kdots
Sat Feb 24, 2018 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage or Home Equity loan to pay off balloon loan?
Replies: 15
Views: 961

Re: Mortgage or Home Equity loan to pay off balloon loan?

Watty wrote: Sat Feb 24, 2018 8:29 am One more concern I thought of is that when you Mom is no longer able to work at the business then what will happen to the business?

If they have to hire someone to do the work she is doing then that persons salary that might eat up most of the income that they are getting from the business.

Is there someone that can then manage the business without her, or will it need to be shut down?
Thanks, I work at the shop with her. I could take over the business, but will try to sell as I am ready for a change. Whether or not the business will sell is an unknown. Her share of the commercial real estate could be sold back to the partners at any time if necessary.
by Kdots
Sat Feb 24, 2018 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage or Home Equity loan to pay off balloon loan?
Replies: 15
Views: 961

Re: Mortgage or Home Equity loan to pay off balloon loan?

I spoke with a loan officer today about a HE loan. He suggested taking a 20yr loan at 5.3%, but pay the $2500/month not the $900. No closing costs. Interest not tax-deductible? I didn't follow the numbers and don't really understand how they could make that payment with the business income and two Social Security checks but one potential problem is that if one of them dies then they will be down to one Social Security check which would make it even harder to pay that much each month. If one of them needs assisted living that might be more than your sister could do so their expenses could go up a lot if that happens. Like someone said a reverse mortgage would be an option to consider but if they can get a 30 year fixed mortgage then they sh...
by Kdots
Sat Feb 24, 2018 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage or Home Equity loan to pay off balloon loan?
Replies: 15
Views: 961

Re: Mortgage or Home Equity loan to pay off balloon loan?

That was my first thought too, how could they possibly be comfortable with a $2500/month payment??? What about a plain old 30 year fixed mortgage? That gives them the lowest monthly payment, and having a mortgage in their 70's, it doesn't seem they're concerned with a paid off home, so... I doubt they're anywhere near itemizing, so tax deductions shouldn't even be a concern. Although there may be some over 65 rules I don't know of? Thanks for your response. They would very much like to have the home paid off. It was designed and built my father, on the family land. My sister has currently moved into the house with her family as well, with plans to help our parents as need it (not financially) and live there for the time being. They have be...
by Kdots
Sat Feb 24, 2018 7:57 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage or Home Equity loan to pay off balloon loan?
Replies: 15
Views: 961

Re: Mortgage or Home Equity loan to pay off balloon loan?

gotester2000 wrote: Sat Feb 24, 2018 5:44 am Is this a loan on the house?

How are they going to pay 2500/month out of 2600/month SS and 5-10k/quarter at their age for 20 years?

Why not sell the house and move to a smaller place?
Thanks for your response. Yes, the loan is on the house. The $2500 payment would pay off the loan in about 6 years, but have a lower minimum payment than a shorter loan term. They have been paying $2000 on the balloon loan without trouble. The loan repayments from the business also contribute to their income.

Selling the house not an consideration. It was designed and built my father, on the family land. My sister has currently moved into the house with her family as well, with plans to help our parents as need it (not financially).
by Kdots
Fri Feb 23, 2018 11:46 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage or Home Equity loan to pay off balloon loan?
Replies: 15
Views: 961

Mortgage or Home Equity loan to pay off balloon loan?

I recently discovered that my parents (76 and 79 yrs old) have a balloon loan with a current balance of $137,000. Final payment of $129,000 due 3/1/19. Would you recommend a Mortgage refinance or Home Equity loan? The house last appraised at $350,000 - 4 yrs ago. They have since done some work on the house. Their current bank balance is $75,000. And yes that is their only bank balance. No retirement, nothing else. No life insurance. No other debt. Social Security is about $2600/month for the 2 of them. Mom (76) does still work at a business that she owns(60! hrs/wk), but does not take a salary. Just repayment on loans she has made to the shop when necessary. She also is 1 of 7 owners of the commercial block where the business is. Real estat...
by Kdots
Mon Feb 05, 2018 10:04 pm
Forum: Personal Investments
Topic: Stay the course? Edited to Staying the course!
Replies: 22
Views: 3136

Re: Stay the course?

Advice, please- Finally invested part of my non-retirement saving in the market 2 weeks ago. I know that the general advice is to try to avoid market timing and play the long game. But now I am at a loss of what to do. Do nothing! Stop watching the 24 hour news cycle, it is toxic to your mental health and your wallet. Check back on your investment in 12 months and then we'll share a cyber beer. :sharebeer Agree. You will go crazy if you check the market and see how much your account has changed. As others have commented, continue your investment. You will ride out this one and the purchases you make now will be your big winners... Read articles from Warren Buffett to give you inspiration. Any Warren Buffett articles you recommend? Thank you!
by Kdots
Mon Feb 05, 2018 9:37 pm
Forum: Personal Investments
Topic: Portfolio/allocation review, please.
Replies: 1
Views: 245

Portfolio/allocation review, please.

So grateful for this here forum. Alright, now that you've all talked me down and reminded me to stay the course- May I have some suggestions on allocation, suggested funds, please? Or heck, what are the questions I should be asking? Thank you! Emergency funds: not in separate fund Money Market: $32,000 at 1.4%, contributing $1300/mo. Debt: $107,000 mortgage at 3.625 (co-owned/co-borrower, not interested in paying down) Tax Filing Status: Single Tax Rate: 15% Federal, 6% State Income: $44,500 State of Residence: MO Age: 36 Roth IRA : $16,000 VTSAX, maxed out this year, plan on maxing out next year as well - from monthly savings above, not on top. No workplace retirement VTSAX : $9,500 + $100/month VGTSX : $7,600 I apologize for any etiquette...
by Kdots
Mon Feb 05, 2018 9:15 pm
Forum: Personal Investments
Topic: Stay the course? Edited to Staying the course!
Replies: 22
Views: 3136

Re: Stay the course?

Thank you, all! I needed to hear that. The news makes everything out to be so sensational and dramatic.
First time jitters here. Just another reminder to avoid the news.

Thank you!
Feeling better.
:sharebeer

(not sure how to thank everyone, only how to quote...)
by Kdots
Mon Feb 05, 2018 8:53 pm
Forum: Personal Investments
Topic: Stay the course? Edited to Staying the course!
Replies: 22
Views: 3136

Stay the course? Edited to Staying the course!

Advice, please- Finally invested part of my non-retirement saving in the market 2 weeks ago. I know that the general advice is to try to avoid market timing and play the long game. But now I am at a loss of what to do. I invested $10,000 into VTSAX and $8000 into VGTSX. I am a total newbie and like to believe I have some risk tolerance, but I don't want to be an idiot. I was hoping not to be tested so soon. What do you think I should do? Stay the course? Or take my losses and try again after the correction? Thank you for your help! Emergency funds: not in separate fund Money Market: $32,000 at 1.4%, contributing $1300/mo. Debt: $107,000 mortgage at 3.625 (co-owned/co-borrower, not interested in paying down) Tax Filing Status: Single Tax Rat...
by Kdots
Fri Oct 06, 2017 9:07 am
Forum: Personal Investments
Topic: Where should I put my money?
Replies: 15
Views: 2469

Re: Where should I put my money?

KlingKlang wrote: Fri Oct 06, 2017 8:50 am You are at a good age to begin purchasing Series I Savings Bonds, but you are limited to $10K/year in purchases from Treasury Direct plus $5000 from your Federal income tax refund. They are liquid after one year, never lose principle, state and local tax free, and you can defer federal taxes for up to 30 years. You can check around to see if any banks are offering deals on CDs. You can count these investments as part of your bond allocation.

It is unlikely that you will meet your retirement goals if your only stock investments are in a Roth IRA due to the low contribution limit. Consider opening an after tax Total Stock Market account, it is very tax efficient.
Thanks! I will look into those options.
by Kdots
Fri Oct 06, 2017 8:36 am
Forum: Personal Investments
Topic: Where should I put my money?
Replies: 15
Views: 2469

Re: Where should I put my money?

Toons wrote: Fri Oct 06, 2017 6:10 am "Money Market: $52,000 at 1.2%, contributing $1300/mo.
Debt: $107,000 mortgage at 3.625 "

Mortgage :happy
Thank you for your response!
Mortgage is shared with someone who cannot contribute more and I would prefer to keep things as equal as possible. House is not a forever home and will probably be sold in a few years. Most likely at a time when I also change jobs and move out of town.
With that said, any other suggestions?
Thank you.
by Kdots
Fri Oct 06, 2017 8:28 am
Forum: Personal Investments
Topic: Where should I put my money?
Replies: 15
Views: 2469

Re: Where should I put my money?

Are you a W-2 employee or a 1099 contractor? If you're a contractor, you are your employer, so you can set up your own retirement plan and contribute up to the legal limits of the plan you choose. If it means draining savings to do so, well, the money is better off tax-protected. Otherwise, it's a little weird to grab interest at 1.2% and pay debt at 3.625%. You can't sell mortgage prepayments so your position is more flexible, sure, but that's not really worth that spread. OTOH, the mortgage is at an attractive interest rate, so it probably doesn't make sense to pay it off rather than invest. Plus, having the split responsibility for the house complicates things. As far as funds go, VTSAX and VGTSX are great choices. 70/30 is a fine ratio...
by Kdots
Fri Oct 06, 2017 12:43 am
Forum: Personal Investments
Topic: Where should I put my money?
Replies: 15
Views: 2469

Where should I put my money?

Emergency funds: not in separate fund Money Market: $52,000 at 1.2%, contributing $1300/mo. Debt: $107,000 mortgage at 3.625 (co-owned/co-borrower, not interested in paying down) Tax Filing Status: Single Tax Rate: 15% Federal, 6% State Income: $42,800 State of Residence: MO Age: 36 Roth IRA : $10,000 VTSAX, maxed out this year, plan on maxing out next year as well - from monthly savings above, not on top. No workplace retirement. Desired Asset allocation: not sure - Vanguard quiz suggested 30% Bonds 70% Stock Desired International allocation: not sure Hi! I would appreciate any advice on how best to proceed. I know I need to do something more with some of the funds in my Money Market. I am just not sure where to put them. Is it reasonable ...
by Kdots
Fri Aug 07, 2015 10:04 pm
Forum: Personal Investments
Topic: Where to start?
Replies: 4
Views: 592

Re: Where to start?

Thank you, Fallible and LAlearning. It seems I jumped the gun on posting. I will do more research and edit post when I have more information.

LAlearning, no workplace retirement, only partial proceeds from the sale of the business.
I will move rIRA to Vanguard, leaning toward LifeStrategy Moderate Growth.
Thank you for your time!
by Kdots
Fri Aug 07, 2015 9:25 am
Forum: Personal Investments
Topic: Where to start?
Replies: 4
Views: 592

Where to start?

Hi! I am new to all of this and feel a need to have my money working more than it is. I have been researching Vanguard and I am just not sure where to start. So I look to all of you for advice, thank you. Age - 34 Savings -$36,575, 0.75% Roth IRA - $3,849, 0.75% (Both at Capital one 360) Debt - Mortgage - $115,000, 5% (Co-owned with partner, but we are not married. House worth approximately $135,000.) 6 years into 30yr. Have looked into refinancing but currently undecided as online calculators indicated 2yrs before recouping closing costs. Income - $41,600 Tax - 25% + 6% Will also need to have $5,000 - $8,000 available for new car when necessary. I am looking for a balance of retirement planning as well as short term. I anticipate a career ...