Search found 10808 matches

by michaeljc70
Mon Mar 18, 2024 5:08 pm
Forum: Personal Consumer Issues
Topic: Realtor has ideas and a buyer
Replies: 24
Views: 1783

Re: Realtor has ideas and a buyer

After learning to walk and talk etc. and to read and write, both parents and school teachers should be ramming home the fact that: Ulterior Motives Abound ! Seller’s market, buyer’s market who cares; with any human contact, you will NEVER be devoid of someone trying to leverage the situation for their own gain and self-aggrandizement! In EACH and EVERY human contact and dealing, one should be looking for the proverbial Wizard Behind the Curtain! During and after the contact, one should be continuously asking themselves what’s in it for the other person, what do they ACTUALLY want that they’re not telling me and I’m NOT seeing, what did they get that I don’t know about? As a youngster, I once very naively believed that highly educated profe...
by michaeljc70
Mon Mar 18, 2024 9:28 am
Forum: Personal Consumer Issues
Topic: Realtor has ideas and a buyer
Replies: 24
Views: 1783

Re: Realtor has ideas and a buyer

I say it is a seller's market because my friend is also looking for a house (a bigger house in the same area) and everything they like has multiple offers or is under contract before they get there to see it. I don't really want to interfere but I'd put the house on the market and let the potential buyer make an offer just like everybody else. If his offer is the best, great. Is the realtor still charging your freind commissions? 100%? The only reason I can think of for NOT putting the house on the open market is to save on realtor commisions. When I was emptying my Dad's house out there was a contractor that stopped by and gave me his card with the "I will pay cash and you won't pay realtor commissions" pitch. Yes, she would sti...
by michaeljc70
Mon Mar 18, 2024 9:22 am
Forum: Personal Consumer Issues
Topic: Realtor has ideas and a buyer
Replies: 24
Views: 1783

Re: Realtor has ideas and a buyer

runninginvestor wrote: Mon Mar 18, 2024 9:18 am Sounds like the buyer got a free bathroom remodel facilitated by their realtor friend before they bought the house.
I wanted to ask if the buyer picked the tile! :shock:
by michaeljc70
Mon Mar 18, 2024 9:22 am
Forum: Personal Consumer Issues
Topic: Realtor has ideas and a buyer
Replies: 24
Views: 1783

Re: Realtor has ideas and a buyer

I say it is a seller's market because my friend is also looking for a house (a bigger house in the same area) and everything they like has multiple offers or is under contract before they get there to see it.

I don't really want to interfere but I'd put the house on the market and let the potential buyer make an offer just like everybody else. If his offer is the best, great.
by michaeljc70
Mon Mar 18, 2024 8:58 am
Forum: Personal Consumer Issues
Topic: Realtor has ideas and a buyer
Replies: 24
Views: 1783

Realtor has ideas and a buyer

A friend is getting ready to sell her home and buy another home. It is a seller's market as inventory is low. Her realtor (that she has used before) told her to have a bathroom remodeled to get a higher asking price. I think that rarely works and it certainly isn't convenient. Conveniently, the realtor had a contractor she knew to do the work. The work is done. Then the realtor had a buyer interested in the home before it was put on the market. This buyer supposedly buys homes for his kids when they become available in this neighborhood (whatever that means). I believe my friend could have had multiple offers and gotten a much higher price. All of this seems suspicious to me but I am cynical when it comes to realtors. Am I the only one thin...
by michaeljc70
Sat Mar 16, 2024 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Charles Schwab cannot overnight a replacement debit card
Replies: 87
Views: 6103

Re: Charles Schwab cannot overnight a replacement debit card

NYCaviator wrote: Sat Mar 16, 2024 8:30 am How often are people actually pulling cash overseas in 2024?

I bring a debit card and a credit card, and if I'm going somewhere remote or less developed, I'll bring $500-$1k in US dollars that I could exchange in a pinch. 99% of the time, I come home with the same amount of cash I brought.

I try to avoid getting foreign currency as much as possible so I'm not left with a bunch of foreign coins and small bills I may never use again. That will add up quicker than paying an occasional FTF or getting a less than ideal exchange rate at a kiosk.
In some [developed] countries it is common for you to be able to use a credit card at a restaurant for the meal but not for the tip.
by michaeljc70
Sat Mar 16, 2024 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Charles Schwab cannot overnight a replacement debit card
Replies: 87
Views: 6103

Re: Charles Schwab cannot overnight a replacement debit card

mptfan wrote: Sat Mar 16, 2024 6:14 am
michaeljc70 wrote: Fri Mar 15, 2024 8:36 pm If you over plan for the worst case scenario in every aspect of your life I think it becomes very tiresome and wasteful. I don't want to live that way.
I agree, but "over planning" is a subjective thing. I also travel overseas and I carry two ATM cards issued by different banks, I think it's prudent and not over planning.
I am usually traveling with someone and have encountered issues with credit and/or debit cards and I either borrow money or lend money if needed due to a card not working. When I had two accounts with debit cards I would bring them. But I am not going to keep a separate account open solely for this purpose.
by michaeljc70
Sat Mar 16, 2024 7:46 am
Forum: Personal Finance (Not Investing)
Topic: Am I Only One Who Hates Having Left Over Pennies
Replies: 53
Views: 4127

Re: Am I Only One Who Hates Having Left Over Pennies

I have accounts where I get paid a penny or two interest from time to time. I wish I could opt out (maybe it goes to a charity) as it is more effort to record the transaction than it is worth.
by michaeljc70
Fri Mar 15, 2024 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 5973
Views: 1008294

Re: Fidelity as a one stop shop

I'm slowly moving more of my bill pay over to Fidelity, and started using a second brokerage account like a traditional checking. This process made me realize I was making too many "hops" or transfers with my money. For investments, are folks doing direct paycheck deposits into brokerage, or doing transfers from other accounts (Fidelity or outside)? Right now my paycheck deposits to Schwab. All my bills are paid from a Fidelity CMA. All my taxable holdings (other than the CMA) are at Schwab, where dividends collect. I transfer one quarter's worth of cash needs from Schwab to Fidelity each quarter. I invest the cash in a Fidelity money market, which is automatically liquidated to pay bills and cover ATM withdrawals. I may in the f...
by michaeljc70
Fri Mar 15, 2024 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Charles Schwab cannot overnight a replacement debit card
Replies: 87
Views: 6103

Re: Charles Schwab cannot overnight a replacement debit card

I know. But only the Apple Card can be regenerated. If a BoA card was closed you would need to wait for a new physical card. or keep more than one card loaded That's not the point. If a card is closed for whatever reason you cannot regenerate in 5 minutes. I get that. But if one is dependent on one card that cannot be, one sort of deserves the outcome. If my one and only ATM card were closed like that and I really had to have cash, I'd get a cash advance on my credit card and then pay it off instantly. Agreed, but look at how many times the Schwab ATM card has been praised by posters on BH when traveling overseas. As I posted on another thread, I am trying to consolidate accounts including using my taxable brokerage account in lieu of a ch...
by michaeljc70
Fri Mar 15, 2024 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Charles Schwab cannot overnight a replacement debit card
Replies: 87
Views: 6103

Re: Charles Schwab cannot overnight a replacement debit card

I got rid of my Chase debit card and got an ATM only card (I never make POS debit card purchases) to avoid fraud. However, I inquired with Schwab and they didn't offer just an ATM card. I think Fidelity is the same.
by michaeljc70
Thu Mar 14, 2024 7:34 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 5973
Views: 1008294

Re: Fidelity as a one stop shop

I'm slowly moving more of my bill pay over to Fidelity, and started using a second brokerage account like a traditional checking. This process made me realize I was making too many "hops" or transfers with my money. For investments, are folks doing direct paycheck deposits into brokerage, or doing transfers from other accounts (Fidelity or outside)? I am doing the same. I am moving all my auto-pays from Chase to Fidelity. Tired of shifting money back and forth. When MM paid .1% is wasn't really important. Now that it is around 5%, it is more important. I am giving it a few months to make sure I don't forget any bills and then will close my Chase account. I will also close my Schwab taxable as they don't auto sweep to a decent MM....
by michaeljc70
Wed Mar 13, 2024 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 5973
Views: 1008294

Re: Fidelity as a one stop shop

I'm slowly moving more of my bill pay over to Fidelity, and started using a second brokerage account like a traditional checking. This process made me realize I was making too many "hops" or transfers with my money. For investments, are folks doing direct paycheck deposits into brokerage, or doing transfers from other accounts (Fidelity or outside)? I am doing the same. I am moving all my auto-pays from Chase to Fidelity. Tired of shifting money back and forth. When MM paid .1% is wasn't really important. Now that it is around 5%, it is more important. I am giving it a few months to make sure I don't forget any bills and then will close my Chase account. I will also close my Schwab taxable as they don't auto sweep to a decent MM....
by michaeljc70
Mon Mar 11, 2024 8:32 am
Forum: Personal Finance (Not Investing)
Topic: How Much Cash Do You Keep In Your Home?
Replies: 207
Views: 14909

Re: How Much Cash Do You Keep In Your Home?

Around a couple of hundred dollars. I rarely use cash. I don't even carry any unless I know I'll need it.
by michaeljc70
Sun Mar 10, 2024 7:58 am
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

I mitigate that risk by enjoying life to the best of my ability in all phases and not expecting retirement to be some magic elixir. I understand. But why can't you retire and in the unlikely event that returns are terrible live on less and enjoy it to the best of your ability? We didn't retire on thin margins because the prospect of poverty in old age was much more fearsome than waiting too long. Even as early retirees, we may be facing what some people fear from too late: my partner is faced with debilitating chronic pain. They chose to work part time as a distraction and due to far better health insurance options than available on the open market or any job I could get. So far, we don't regret our timing and on the contrary are thrilled ...
by michaeljc70
Sat Mar 09, 2024 6:46 am
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

exodusing wrote: Sat Mar 09, 2024 6:39 am According to a Vanguard paper, valuation ratios (p/e and CAPE) are the best way to predict 10 year equity returns (better than history and other metrics tested). Unfortunately, best doesn't mean very good - they only accounted for about 40% of the variation in returns. https://fairwaywealth.com/wp-content/up ... 0-2014.pdf

Anyway, take the inverses of p/e and CAPE and you get real returns of 3-3.5%. Actual could well be within five percentage points of those numbers.

TIPS are most likely the best predictors of real bond returns. The 10 year is currently yielding 1.8% real.
But most retirements are way longer than 10 years. If the predictive value accounts for 40% in 10 years what is it after 20 or 30 years?
by michaeljc70
Fri Mar 08, 2024 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

A risk of using an extremely low estimated return is kicking the bucket early for some unknown reason after you worked and planned for 40+ years and thought you were being conservative and then didn't get to enjoy any of it (retirement). I worry about that more than having a great super depression or other terrible return outcome. Even if there is some very bad investment event/period, there's a good chance it might be somewhat balanced out by other periods that are average or above average. YMMV I mitigate that risk by enjoying life to the best of my ability in all phases and not expecting retirement to be some magic elixir. I understand. But why can't you retire and in the unlikely event that returns are terrible live on less and enjoy i...
by michaeljc70
Fri Mar 08, 2024 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

A risk of using an extremely low estimated return is kicking the bucket early for some unknown reason after you worked and planned for 40+ years and thought you were being conservative and then didn't get to enjoy any of it (retirement). I worry about that more than having a great super depression or other terrible return outcome. Even if there is some very bad investment event/period, there's a good chance it might be somewhat balanced out by other periods that are average or above average. YMMV I mitigate that risk by enjoying life to the best of my ability in all phases and not expecting retirement to be some magic elixir. I understand. But why can't you retire and in the unlikely event that returns are terrible live on less and enjoy i...
by michaeljc70
Fri Mar 08, 2024 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

A risk of using an extremely low estimated return is kicking the bucket early for some unknown reason after you worked and planned for 40+ years and thought you were being conservative and then didn't get to enjoy any of it (retirement). I worry about that more than having a great super depression or other terrible return outcome. Even if there is some very bad investment event/period, there's a good chance it might be somewhat balanced out by other periods that are average or above average. YMMV
by michaeljc70
Thu Mar 07, 2024 7:54 pm
Forum: Personal Consumer Issues
Topic: [What TV Show Have You Recently Watched?]
Replies: 5973
Views: 689926

Re: [What TV Show Have You Recently Watched?]

I'm finishing season 2 of The Morning Show. I think the show is really good. However, I am watching it very slowly which usually indicates I don't like it. I'd say it is very good but slow moving which keeps me from wanting to race through all the episodes/seasons. Some shows I like and race through all the episodes in days. Others I dislike and stop after one or two episodes. This is something else.

I'd say that the first season is built around a big revelation and then there are all these off shoots that seem less important/interesting and maybe that is the reason.

Maybe I'm confusing well done with "good".
by michaeljc70
Thu Mar 07, 2024 11:33 am
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

How about using a tool that uses actual historical data instead of guessing? That's what I did. Ficalc.app is one such tool. Sequence of returns matters. I have also looked at Fire calc. All the various tools I've tried have pros & cons. Right now the tool I'm trying out is new retirement and that is the one that asks you to input optimistic and pessimistic return estimates. I have also used the fidelity tool which I believe gets its estimates by analyzing your portfolio holdings. One of the approaches I took in New Retirement was to use the software's allowance for multiple scenarios and name the scenarios after the return assumptions. So as an example, I have one for historical and one for estimated. Realize that NewRetirement will a...
by michaeljc70
Thu Mar 07, 2024 7:58 am
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

I use 1% real for planning purposes. Probably to conservative, but that's what I use I thought I was being conservative at 2.5% … let’s check back in 10 years lol … one can buy regular treasuries or tips and do better than either of our forecasts so why are we taking any equity risks ? Hmmmmmn. Regular treasuries don't protect you from inflation. Also, 30 year TIPS are just under 2% now (and the 10 year is less than that). Any bond that is less than your expected retirement in duration offers no guarantee as to what rates will be when it matures. Obviously anyone can use whatever number they want. Being super conservative is great if you want to work dozens of extra years or want to die with a gazillion dollars. Personally, I'd rather cut ...
by michaeljc70
Thu Mar 07, 2024 6:37 am
Forum: Personal Finance (Not Investing)
Topic: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?
Replies: 80
Views: 9866

Re: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?

No. If you replace it, your current roof will not be part of what is being sold, after all. So I guess it is better to leave the 1st roof and lay the 2nd over it (which is not uncommon). :shock: Since the exemption (if applicable) is $500k for a couple most people don't need to worry about this. In my area I think you can have two layers of roof but not three. Which is why when I had my roof replaced in 2005 all had to go down to the wood. It is always preferable to replace everything. Crew is already up there, added cost is relatively small. They can inspect and repair subroof as needed instead of letting hidden problems worsen for more years. Adding a layer just masks any underlying problem, and adds thousands of pounds extra stress on t...
by michaeljc70
Tue Mar 05, 2024 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?
Replies: 80
Views: 9866

Re: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?

I am following this thread as I have some ambiguity in calculating my cost basis for home improvements. Example: I remodeled my kitchen three times. The 1st time, I replaced some cabinets and the refrigerator. The 2nd time was a complete gut and remodel with all new appliances, cabinetry, countertops, sink, and flooring. The 3rd time, I replaced the cabinetry, countertops, and added a built-in microwave. I'm clear that I cannot count the cabinetry from the 1st or 2nd remodel, but some cabinets from the 2nd remodel were repurposed and installed in the garage. I am counting all the labor for the 3rd remodel. I don't have a cost breakdown for the labor for the 2nd remodel, but I think I can count half (demolition, electrical, and plumbing, bu...
by michaeljc70
Tue Mar 05, 2024 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?
Replies: 80
Views: 9866

Re: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?

The roof improvement is a problem for me. I have a flat roof condo in Arizona and these roofs need to be routinely maintained by patching and coating the entire roof with elasnomer. Otherwise they deteriorate from heat and ponding water and you have leaks. The total cost for this work, done every 3-5 years, is now about $4500 for my small unit, more for larger ones. Does this count as routine maintenance or "roof replacement" such as re-shingling? I think your point gets into the ambiguity that sometimes exists between capital improvements and maintenance. Sometimes it's really not clear. It's fair the ask "what's a new roof anyway?" In Southern California, we also have heat-related issues. The roof is particularly susc...
by michaeljc70
Tue Mar 05, 2024 8:25 am
Forum: Personal Finance (Not Investing)
Topic: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?
Replies: 80
Views: 9866

Re: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?

As others have said, you don't depreciate a personal residence or improvements made to it for tax reasons. However, your improvements are essentially deflated in real terms (rather than depreciated) since they aren't adjusted for inflation. So if you put on a $100k addition 20 years ago that might cost $300k now you get $100k off your basis even though that improvement might have made the home worth $300k or $400k more (with inflation). I solve all these capital gains problems by moving every 10 years on average. :shock: That has its own costs, but we are usually ready for a change at that point. Though I make improvements it would be rare to make the same one 2x in 10 years. The inflation part of the gain is also not so great in 10 years.
by michaeljc70
Tue Mar 05, 2024 6:36 am
Forum: Personal Finance (Not Investing)
Topic: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?
Replies: 80
Views: 9866

Re: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?

Yes. I heard a tax preparer [with 20+ years experience] explicitly say in Feb 2024 Zoom meeting that each and every roof replacement added to the basis of a personal residence. When explicitly questioned on it, he repeated it. One shouldn't try to use logic on the US Tax code. Rely on IRS publications, IRS rulings, case law, and experienced tax professionals. [not necessarily in that order] As it happens, IRS publications conflict with your expert’s opinion, so I’m glad you put them in that order. Only improvements that are still present on the house count towards basis on sale of a primary residence. I guess it might be a gray area in a situation where the replacement roof went on top of the old one vs a complete reroof. I think it can ge...
by michaeljc70
Tue Mar 05, 2024 6:28 am
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

How about using a tool that uses actual historical data instead of guessing? That's what I did. Ficalc.app is one such tool. Sequence of returns matters. I have also looked at Fire calc. All the various tools I've tried have pros & cons. Right now the tool I'm trying out is new retirement and that is the one that asks you to input optimistic and pessimistic return estimates. I have also used the fidelity tool which I believe gets its estimates by analyzing your portfolio holdings. Understood. I recently tried to use New Retirement after seeing some CFPs use it on YouTube. However, when I got to the point to enter estimated returns I stopped as I had no idea what to put in there that would give meaningful results. It is obviously very i...
by michaeljc70
Mon Mar 04, 2024 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

How about using a tool that uses actual historical data instead of guessing? That's what I did. Ficalc.app is one such tool. Sequence of returns matters. Then you are assuming that past performance predicts future outcomes. I don't think that future returns will match historic. What will it match? How do you know? People always say that but I don't think guessing is better. When we use historical performance to predict future returns we are "guessing" that the future will look like the past. That isn't a completely unreasonable assumption. However, I don't think that returns in the future will likely match the what has happened in the past. Using the projections of experts based on the current economic and market conditions may b...
by michaeljc70
Mon Mar 04, 2024 11:03 am
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

I don't think there is a good way to come up with those estimates. Tools that use historical data reveal how variable the outcome is compared to any particular estimate: https://engaging-data.com/visualizing-4-rule/ What you can do in cases like that is study the sensitivity of the output to the input by running a range of input assumptions and seeing how strongly the results depend on the input. You may be able to see where your assumptions are as good as any or you will see where it is risky to depend on any one particular assumption. It is definitely something to consider. However none of those forecasts are for as long as most retirements. Also, for US equities the range is 4% to 7%. Some are adjusted for inflation and some are not. On...
by michaeljc70
Mon Mar 04, 2024 10:56 am
Forum: Personal Finance (Not Investing)
Topic: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?
Replies: 80
Views: 9866

Re: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?

So I guess it is better to leave the 1st roof and lay the 2nd over it (which is not uncommon). :shock: Since the exemption (if applicable) is $500k for a couple most people don't need to worry about this. Just keep in mind that the $250,000 (single) and $500,000 (couple) exemptions are not indexed to inflation. It's true that when these exemptions were given many years ago, a relatively small number of people were affected. However, in some parts of the country, capital gains can be substantial for people who have owned their houses for many years. And even if the excess capital gains might not apply to you now, it might in the future so it's wise to keep reasonable records. I bought my house 25 years ago for $320k. Sold last year for $1.2...
by michaeljc70
Mon Mar 04, 2024 10:49 am
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

WeakOldGuy wrote: Mon Mar 04, 2024 10:33 am
michaeljc70 wrote: Mon Mar 04, 2024 6:55 am How about using a tool that uses actual historical data instead of guessing? That's what I did. Ficalc.app is one such tool. Sequence of returns matters.
Then you are assuming that past performance predicts future outcomes. I don't think that future returns will match historic.
What will it match? How do you know? People always say that but I don't think guessing is better.
by michaeljc70
Mon Mar 04, 2024 9:44 am
Forum: Personal Finance (Not Investing)
Topic: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?
Replies: 80
Views: 9866

Re: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?

No. If you replace it, your current roof will not be part of what is being sold, after all. So I guess it is better to leave the 1st roof and lay the 2nd over it (which is not uncommon). :shock: Since the exemption (if applicable) is $500k for a couple most people don't need to worry about this. Just keep in mind that the $250,000 (single) and $500,000 (couple) exemptions are not indexed to inflation. It's true that when these exemptions were given many years ago, a relatively small number of people were affected. However, in some parts of the country, capital gains can be substantial for people who have owned their houses for many years. And even if the excess capital gains might not apply to you now, it might in the future so it's wise t...
by michaeljc70
Mon Mar 04, 2024 6:55 am
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Return Rates for Retirement Planning
Replies: 67
Views: 6023

Re: How to Estimate Return Rates for Retirement Planning

How about using a tool that uses actual historical data instead of guessing? That's what I did. Ficalc.app is one such tool. Sequence of returns matters.
by michaeljc70
Mon Mar 04, 2024 6:52 am
Forum: Personal Finance (Not Investing)
Topic: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?
Replies: 80
Views: 9866

Re: If I own a house for 30 years and I replace the roof twice, do both replacements count as capital improvements?

increment wrote: Sun Mar 03, 2024 2:44 pm No. If you replace it, your current roof will not be part of what is being sold, after all.
So I guess it is better to leave the 1st roof and lay the 2nd over it (which is not uncommon). :shock:

Since the exemption (if applicable) is $500k for a couple most people don't need to worry about this.
by michaeljc70
Wed Feb 28, 2024 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Tech forward bank recommendations: instant transfers and decent bill pay
Replies: 38
Views: 2698

Re: Tech forward bank recommendations: instant transfers and decent bill pay

popoki wrote: Mon Feb 26, 2024 9:19 pm Don’t use Zelle. The only bill pay you should use from your bank is to pay your cash back credit card, which you use to pay all of your bills.
I don't know what kind of bills you have, but without a fee I am unable to use a credit card for my property taxes, car insurance, home insurance, water bill, gas bill, electric bill and many other bills.
by michaeljc70
Thu Feb 22, 2024 9:20 am
Forum: Personal Finance (Not Investing)
Topic: My girlfriend wants to contribute to my mortgage. How can we be tax savvy about this?
Replies: 44
Views: 4342

Re: My girlfriend wants to contribute to my mortgage. How can we be tax savvy about this?

When someone owns a home, is charging a co-habiting partner rent different than charging a third-party roommate rent from a tax point-of-view? Or should the rental payment be reported as income to the IRS in both cases? Yes, they're equivalent, but it might be tough for the IRS to prove, particularly with a girlfriend. I mean, you're certainly allowed to have someone stay in your house with you and you're certainly allowed to gift someone else money. Proving a quid pro quo might be tough. IRS probably has bigger fish to fry. The girlfriend can just call it reimbursement for utilities, groceries, etc. Usually you are not providing groceries to tenants. I have never known anyone that had a partner that contributed to the household and paid t...
by michaeljc70
Thu Feb 22, 2024 8:13 am
Forum: Personal Finance (Not Investing)
Topic: My girlfriend wants to contribute to my mortgage. How can we be tax savvy about this?
Replies: 44
Views: 4342

Re: My girlfriend wants to contribute to my mortgage. How can we be tax savvy about this?

When someone owns a home, is charging a co-habiting partner rent different than charging a third-party roommate rent from a tax point-of-view? Or should the rental payment be reported as income to the IRS in both cases? Yes, they're equivalent, but it might be tough for the IRS to prove, particularly with a girlfriend. I mean, you're certainly allowed to have someone stay in your house with you and you're certainly allowed to gift someone else money. Proving a quid pro quo might be tough. IRS probably has bigger fish to fry. The girlfriend can just call it reimbursement for utilities, groceries, etc. Usually you are not providing groceries to tenants. I have never known anyone that had a partner that contributed to the household and paid t...
by michaeljc70
Mon Feb 19, 2024 5:56 am
Forum: Personal Finance (Not Investing)
Topic: Quicken 2019 and forward
Replies: 1061
Views: 114280

Re: Quicken 2019 and forward

Unless it is just me, it looks like they're having speed issues with the one step update again. Mine has been running for 10+ minutes.

Edit: It resulted in errors regarding Quicken servers for all except one of my accounts.
by michaeljc70
Sun Feb 18, 2024 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: ACH pull vs paper check from online bill pay?
Replies: 40
Views: 2275

Re: ACH pull vs paper check from online bill pay?

My online banking system sending paper checks seems to have become less reliable in the last few years. Several times the payment appears at the recipient a day or 2 after the "guaranteed paid by". But I can usually mitigate that by picking a pay-by date a few days before actual Due Date. I like to see the list of pending payments in my online banking system. My bank pays .01% interest on my checking account. So, in a small effort to "get even" with them, I use bill pay to pay bills as soon as I receive the bill. This takes the money out of my account at the earliest date thus reducing the time the bank has the money. As long as the money is in the account anyway, it makes no difference to me. I also do not keep large s...
by michaeljc70
Sun Feb 18, 2024 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: ACH pull vs paper check from online bill pay?
Replies: 40
Views: 2275

Re: ACH pull vs paper check from online bill pay?

My online banking system sending paper checks seems to have become less reliable in the last few years. Several times the payment appears at the recipient a day or 2 after the "guaranteed paid by". But I can usually mitigate that by picking a pay-by date a few days before actual Due Date. I like to see the list of pending payments in my online banking system. My bank pays .01% interest on my checking account. So, in a small effort to "get even" with them, I use bill pay to pay bills as soon as I receive the bill. This takes the money out of my account at the earliest date thus reducing the time the bank has the money. As long as the money is in the account anyway, it makes no difference to me. I also do not keep large s...
by michaeljc70
Sun Feb 18, 2024 7:07 am
Forum: Personal Finance (Not Investing)
Topic: ACH pull vs paper check from online bill pay?
Replies: 40
Views: 2275

Re: ACH pull vs paper check from online bill pay?

Previously I didn't want anyone pulling money out of my account. This was mainly because I didn't want money erroneously removed from my account. However, now I have all my credit cards on autopay as well as any utility bills, subscription, etc. that charges a fee to have it go on a credit card. I have not had any issues.

Requesting an actual voided check for an ACH is annoying. I can transfer big $$$$s to/from my checking account from Fidelity or Schwab and never provided an actual check. However, anyone that you ever sent a check has the routing number and account number. Further, if you go the bill pay paper check route anyone that comes into contact with that check gets that info.
by michaeljc70
Sat Feb 17, 2024 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Credit score improvement
Replies: 25
Views: 2149

Re: Credit score improvement

Thank you all for your input! I am currently catching up and paying off debts. Most of which were I got this for that person who said they'd pay for it kinda b.s. but learned my lessons and am trying to get back on track. So when talking history. Say I financed furniture. if I pay off that account and it closes, how does that impact credit? There are a lot of factors. There are credit score simulators. Credit Karma has one. You can pick various options and see the impact to your specific score. The options for that simulator are: Open or close a credit account Get a new loan Transfer balances to a new card Have a credit application denied Open a new credit card Close my oldest card Change how I use my cards Increase or decrease my balances...
by michaeljc70
Thu Feb 15, 2024 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Credit score improvement
Replies: 25
Views: 2149

Re: Credit score improvement

Working on paying down debts and loans. Credit score is in mid 500. Credit history is about 2 years old. Learned late that no credit is worse than no credit. Make about 50k a year and currently have about 26k in debt so not horrible I guess. Is the credit length of history important? Regarding length of credit history : it’s moderately important and will adversely impact your score if brief. Seven years of solid payment history seems to be a threshold where it no longer matters. While getting attached to someone else’s account may improve your score, I agree with others that taking on a mortgage would be risky. My spouse is foreign born. Once they got a green card and SSN, their score was over 700 within 2 years. They only had 1 credit car...
by michaeljc70
Thu Feb 15, 2024 7:15 am
Forum: Personal Finance (Not Investing)
Topic: Credit score improvement
Replies: 25
Views: 2149

Re: Credit score improvement

Until this past week, didn't know that a credit card balance >30% of your limit impacts your credit score. I pay it off monthly -never carry a balance. Always assumed that prevents any impact to my credit score. But apparently a balance >30% during the month impacts your credit score. No real impact to me -don't know if I care enough to make a payment during the month on rare occasion a big purchase pushes the balance >30%. It depends on WHEN you make the payment. I pay our credit cards the day before the statement closes which always reports $0 debt to the credit agencies. If I waited to pay it after the statement was issued, it would report the balance as of the closing date. Interesting. I've had 20-40 point drops in the last couple of ...
by michaeljc70
Wed Feb 14, 2024 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Help! 25 Maxed out credit cards.....
Replies: 268
Views: 34198

Re: Help! 25 Maxed out credit cards.....

muffins14 wrote: Wed Feb 14, 2024 9:32 am
lakpr wrote: Wed Feb 14, 2024 7:46 am
alfaspider wrote: Wed Feb 14, 2024 7:43 am I still only have one credit card!
OFF TOPIC -- but this is fraught with danger. If that credit card gets compromised, or even if the credit card issuer just suspects that it is being used fraudulently, it will get shut down. One should always have a backup card (at least two credit cards, I mean).
I only have one credit card AND I hold bond funds. It’s a miracle I am still alive.
Please don't tell us you don't have a $5 million umbrella policy! :D
by michaeljc70
Wed Feb 14, 2024 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Help! 25 Maxed out credit cards.....
Replies: 268
Views: 34198

Re: Help! 25 Maxed out credit cards.....

I still only have one credit card! OFF TOPIC -- but this is fraught with danger. If that credit card gets compromised, or even if the credit card issuer just suspects that it is being used fraudulently, it will get shut down. One should always have a backup card (at least two credit cards, I mean). This is an overreaction. You don't even NEED to have a credit card at all. Suggesting that not having at least 2 is dangerous waters down the meaning of the word If you carry a lot of cash or use a debit card for everything and never need a credit card (like for a hotel or rental car), it might be. But if you rely on credit cards having only one is risky. Hotels and rental cars accept debit cards. Some with an extra hoop, but not nearly all. But...
by michaeljc70
Wed Feb 14, 2024 8:17 am
Forum: Personal Finance (Not Investing)
Topic: Help! 25 Maxed out credit cards.....
Replies: 268
Views: 34198

Re: Help! 25 Maxed out credit cards.....

MBB_Boy wrote: Wed Feb 14, 2024 8:12 am
lakpr wrote: Wed Feb 14, 2024 7:46 am
alfaspider wrote: Wed Feb 14, 2024 7:43 am I still only have one credit card!
OFF TOPIC -- but this is fraught with danger. If that credit card gets compromised, or even if the credit card issuer just suspects that it is being used fraudulently, it will get shut down. One should always have a backup card (at least two credit cards, I mean).
This is an overreaction. You don't even NEED to have a credit card at all. Suggesting that not having at least 2 is dangerous waters down the meaning of the word
If you carry a lot of cash or use a debit card for everything and never need a credit card (like for a hotel or rental car), it might be. But if you rely on credit cards having only one is risky.
by michaeljc70
Wed Feb 14, 2024 6:33 am
Forum: Personal Finance (Not Investing)
Topic: Help! 25 Maxed out credit cards.....
Replies: 268
Views: 34198

Re: Help! 25 Maxed out credit cards.....

UPDATE: Met with my stepson and daughter-in-law and went over their budget and both credit reports. They've agreed, he holds no credit cards from here on out. They see the value of following a budget and can see they were likely spending $700 a month more than they make. After showing them a loan calculator app on the net with a whopping 28% interest, it clicked as to why credit card debt is a dead end street. Long story short, they are going to move in with his dad for the short term til all the CC debt is paid off. Stepson is seeeing Dr this week to talk about his frame of mind. He really is on a short runway as daughter-in-law is very upset with him that he wasn't honest with his situation and put them all in a very bad situation. Hopef...
by michaeljc70
Mon Feb 12, 2024 7:05 am
Forum: Personal Consumer Issues
Topic: Hybrid Car - Cost Savings?
Replies: 68
Views: 6938

Re: Hybrid Car - Cost Savings?

I think the OP can due a simple payback calculation based upon EPA mileage for hybrid versus conventional of the same/similar model. That payback calculation will be sufficiently accurate IMO. The OP is also an excellent candidate for a plug in hybrid, or PHEV, if electricity costs are reasonable where they live. That is, outside of New England and California. OP can compute the cost per mile on kWh versus on gasoline. Rather than the 15-20% savings in gas between an ICE and an HEV, they might realize a 40-50% or greater savings. For example: My 2015 Volt goes about 30 miles on 10 kWh of electricity, which is $0.18/kWh in my area (the national average price). That is $1.80/30 = $0.06/mile. Compared to a similarly sized car (a 2015 Corolla)...