Search found 187 matches

by rocket354
Tue Aug 07, 2018 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage question
Replies: 20
Views: 1740

Re: Mortgage question

It depends on what you mean by "better." By how you likely mean it (which pays down the mortgage faster?) then paying the $1000/mo is better. The reason is that every payment you make lowers the principal some and therefore reduces the interest on the next payment, thereby increasing the principal p...
by rocket354
Sun Jul 29, 2018 5:26 pm
Forum: Investing - Theory, News & General
Topic: Buying a home [as a safe investment]
Replies: 42
Views: 3129

Re: Buying a home

These arguments have been going back and forth for a long time and mostly result in people talking past each other. Despite that, I will give some real-life numbers to reflect the true comparison which is not buying a home vs investing, rather it is buying a home vs renting. Don't you have to accou...
by rocket354
Sun Jul 29, 2018 5:18 pm
Forum: Investing - Theory, News & General
Topic: Buying a home [as a safe investment]
Replies: 42
Views: 3129

Re: Buying a home

Since owning vs renting the same apartment is the exact same activity, something exogenous must be accounting for the difference in outcomes. It's not clear to me what these are, and I wonder if you could explain, I don't see anything about tax savings, so I guess that's not it. Is it appreciation ...
by rocket354
Sun Jul 29, 2018 4:42 pm
Forum: Investing - Theory, News & General
Topic: Buying a home [as a safe investment]
Replies: 42
Views: 3129

Re: Buying a home

These arguments have been going back and forth for a long time and mostly result in people talking past each other. Despite that, I will give some real-life numbers to reflect the true comparison which is not buying a home vs investing, rather it is buying a home vs renting. Don't you have to accou...
by rocket354
Sun Jul 29, 2018 2:54 pm
Forum: Investing - Theory, News & General
Topic: Buying a home [as a safe investment]
Replies: 42
Views: 3129

Re: Buying a home

These arguments have been going back and forth for a long time and mostly result in people talking past each other. Despite that, I will give some real-life numbers to reflect the true comparison which is not buying a home vs investing, rather it is buying a home vs renting. I believe the smartest t...
by rocket354
Thu May 31, 2018 11:07 am
Forum: Personal Consumer Issues
Topic: Thoughts on Buying a "Flipped" House?
Replies: 27
Views: 3245

Re: Thoughts on Buying a "Flipped" House?

I live in an area where it's hard not to buy a flip. It's a hot market with tons of houses from the 20's-50's getting bought, renovated, and put back on the market four months later. I agree with others: be very wary. Many houses I saw had obvious corner-cutting to my amateur eye--floors that weren'...
by rocket354
Wed May 02, 2018 11:03 pm
Forum: Investing - Help with Personal Investments
Topic: How and when to save for real estate
Replies: 12
Views: 1482

Re: How and when to save for real estate

Thanks any suggestions of books or good blogs? biggerpockets is a great forum for RE investing. I will say that if you plan on buying an investment property, using leverage is the absolute way to go. A 25-30% down payment will get you in with a good rate fixed mortgage. Tying up a bunch of your sav...
by rocket354
Wed May 02, 2018 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: Optum HSA Fee Increase Notice
Replies: 16
Views: 1952

Re: Optum HSA Fee Increase Notice

I just checked my account and the fee is for an average balance of $500 :oops: (not $5000 ) You scared me there for a moment. :beer Curiously, my previous employer still pays that fee for me. I re-checked the Optum notice and sure enough it is $5000 (and sadly not $500) for me. I guess this shows t...
by rocket354
Mon Apr 30, 2018 11:20 am
Forum: Personal Consumer Issues
Topic: Las Vegas Restaurants
Replies: 25
Views: 2138

Re: Las Vegas Restaurants

I lived in Las Vegas for years. There's so many restaurants on or near the strip that it would help immensely if you gave a style and/or price range of restaurants. Off the top of my head, a few of my favorites: Pricier Strip Steak (Mandalay Bay) - my personal favorite restaurant in Vegas Prime (Bel...
by rocket354
Thu Apr 26, 2018 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Who benefits from "best and final offer" on condo?
Replies: 107
Views: 6779

Re: Who benefits from "best and final offer" on condo?

I'm surprised at how many people think "best and final" always means "best and final" from the seller's perspective. I think that's naive. When we bought our house we were told "best and final", and we submitted an offer. The next day the seller's agent came back to us saying that we were competing...
by rocket354
Wed Apr 25, 2018 6:51 pm
Forum: Investing - Theory, News & General
Topic: What happened to the Dow Jones between 1966-1982?
Replies: 72
Views: 4920

Re: What happened to the Dow Jones between 1966-1982?

This information is from a S&P 500 return calculator (annual returns) https://dqydj.com/sp-500-return-calculator/ 1966 to 1982 1.39% return, 5.49% with dividends reinvested 1966 to 1995 6.09% return, 10.18% with dividends reinvested 1982 to 1995 12.17% return, 16.24% with dividends reinvested Those...
by rocket354
Sun Apr 22, 2018 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Rental Property - Keep or Sell?
Replies: 4
Views: 539

Re: Rental Property - Keep or Sell?

I currently own a condo, in a highly desirable neighborhood in Seattle which I have been renting out. Given where the prices have gone, I am debating if its time to lock in profits. and divest into more real estates in cheaper areas. Value - 600K equity - 70% rent 2300/mo I am cash flow positive, a...
by rocket354
Sat Apr 21, 2018 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Learning about buying a home for complete beginner
Replies: 12
Views: 1514

Re: Learning about buying a home for complete beginner

Piggybacking off of previous posters... Talk to a lender. Ask them how expensive a house you could afford with your current income and debts. Then take whatever number they give you and cut it in half, and look for houses in that ballpark. There are a variety of programs for first-time buyers that y...
by rocket354
Tue Apr 17, 2018 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Bargaining with Lenders--whom do I choose?
Replies: 8
Views: 1131

Re: Bargaining with Lenders--whom do I choose?

Thanks, did just that. Showed the CU the other offer and they matched on rate, and came close on costs, saying they could beat the costs with a formal offer (which would require lots of documentation and a credit check to the other lender). So I accepted their revised offer, figuring the credit pull...
by rocket354
Tue Apr 17, 2018 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Bargaining with Lenders--whom do I choose?
Replies: 8
Views: 1131

Re: Bargaining with Lenders--whom do I choose?

Thanks, guys. I've read reviews, but every place has good reviews and bad reviews. I currently own a home I've owned for the last 12 years. My plan would be to own this one for a long time--it's a great place both for me to live and for me to convert to a rental if/when I move next. If it matters fo...
by rocket354
Mon Apr 16, 2018 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Bargaining with Lenders--whom do I choose?
Replies: 8
Views: 1131

Bargaining with Lenders--whom do I choose?

I just went under contract to purchase a house. I originally planned to go through my credit union for the loan, and have watched interest rates rise pretty steeply over the last 8 months or so. I talked with my CU and it sounds like my two options are 4.625% 30-year fixed, or pay a quarter-point to...
by rocket354
Thu Apr 12, 2018 7:28 am
Forum: Personal Finance (Not Investing)
Topic: realtor wants to show house to buyer, no listing agent for me
Replies: 55
Views: 5308

Re: realtor wants to show house to buyer, no listing agent for me

No one has mentioned the worst part of this: you're likely to receive less than the market value for your home if you go with this buyer. This is more or less acknowledged by the realtor who told you that this buyer lost out on other homes in the area, ie, the buyer didn't offer the highest bid. Th...
by rocket354
Sat Apr 07, 2018 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: How do you estimate your home's market value?
Replies: 53
Views: 3871

Re: How do you estimate your home's market value?

Anyone using Zillow or Redfin or any other of these algorithmic valuation estimates is taking a risk. Sometimes the estimates are pretty spot on. Sometimes they're in the ballpark. But just as often they can be way off. I'm house shopping at the moment. One home I looked at had a Z-estimate of $480k...
by rocket354
Sat Apr 07, 2018 11:07 am
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 13629

Re: What is your AA, given your age? and, Why?

39yo. 100/0. I was 92/8 heading into the GFC, survived that then watched the rebound and realized I should/could be rebounding more. Went to 100/0 in 2012 and haven't yet looked back. My reasoning is that I am saving for retirement by, say 65. Has any other portfolio other than 100/0 beat 100/0 over...
by rocket354
Tue Apr 03, 2018 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: Am I Crazy to Consider Relocating 5 Months after Buying a House?
Replies: 28
Views: 3242

Re: Am I Crazy to Consider Relocating 5 Months after Buying a House?

I can just give another vote for items others have already said.

The house is a sunk cost. Make your decision based on your career goals, and in regards to its effect on you, your family, and friends. Don't let the house impact your decision one iota.

(FWIW, I vote: go for it!)
by rocket354
Sat Mar 31, 2018 10:48 am
Forum: Investing - Theory, News & General
Topic: Nice article on saving money and financial independence
Replies: 36
Views: 5492

Re: Nice article on saving money and financial independence

Her goal is to amass a portfolio that throws off $2,000 a month for life, a comfortable amount for her that she expects to achieve next year if the market doesn’t tank. So a bare bones lifestyle...if the market doesn't tank. She has no family, and a studio apartment in an iffy part of town. Also, s...
by rocket354
Fri Mar 30, 2018 10:30 am
Forum: Investing - Help with Personal Investments
Topic: Cryptos- "Bear" with me here
Replies: 31
Views: 2676

Re: Cryptos- "Bear" with me here

I’ve been familiar with cryptos since Bitcoin was around $10 and my kid was mining them with his gaming computer. Once Bitcoin hit $20k, suddenly people who have no real idea how they work are suddenly “investing” in cryptos. It’s all FOMO in my opinion. It’s not investing, it is wildly speculative...
by rocket354
Thu Mar 29, 2018 1:01 pm
Forum: Investing - Theory, News & General
Topic: How to calculate IRR?
Replies: 16
Views: 1265

Re: How to calculate IRR?

Quick question on calculating IRR. Let's say you have the following cash flow: -1000; 100; 200; 300; 400; 500 If you are using a discount rate of 5% , then the discounted cash flow is: -1000; 95; 181; 259; 329; 392 Do you calculate the IRR on the actual or discounted cash flow (or are both valid)? ...
by rocket354
Tue Mar 20, 2018 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Investment Property
Replies: 6
Views: 995

Re: Rental Investment Property

First, your monthly cashflow calculation is a little simplistic. And, either way, that is different from profit. I don't know how much you put down, but if you put 20% down then the home was bought for between $210k and $240k depending on how high a property tax state you're in. What that means is y...
by rocket354
Fri Mar 16, 2018 8:55 pm
Forum: Personal Consumer Issues
Topic: 5/24 rule for rewards credit cards - bunching applications
Replies: 31
Views: 3463

Re: 5/24 rule for rewards credit cards - bunching applications

Is it possible to open multiple reward cards at approximately the same time with different credit card companies to avoid the 5/24 rule? For example, say you are 4/24 and try to open a Chase and Citi card on the same day. I'm not sure if they would see the inquiry for the other card and use that to...
by rocket354
Thu Mar 15, 2018 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: Those with high savings rate: why?
Replies: 246
Views: 33133

Re: Those with high savings rate: why?

Is it because you want to retire early, or You are not sure what the future holds, e.g. low job security, or You want to leave money to others, e.g. kids, grand kids, charity, or You have no interest in increasing your consumption now, including giving more money to charity etc. Any insights? A, B,...
by rocket354
Thu Mar 15, 2018 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Need Advice Rental Property -- Rent not covering PITI
Replies: 18
Views: 1813

Re: Need Advice Rental Property -- Rent not covering PITI

Definitely sell if you can. To put some numbers on it: You say it's worth $725k. Let's say with some fixing up, realtor fees, and other transaction costs, you'd have to pay 10% of its value to sell. Then you get $652.5k - $570k mortgage = $82.5k. So you can invest this $82.5k either in rental proper...
by rocket354
Wed Mar 14, 2018 4:55 pm
Forum: Personal Consumer Issues
Topic: Credit card question - get Uber's new 4%er?
Replies: 42
Views: 5351

Re: Credit card question - get Uber's new 4%er?

I saw the ads, applied for the card and received it... then cancelled it after thorough reading the Terms and Conditions. Seemed like far too many hoops to jump through to redeem. Am I mistaken? I already carry 6% AMEX grocery, PenFed 5% gas and FIDO 2% everything and carrying one more card is not ...
by rocket354
Wed Mar 14, 2018 4:37 pm
Forum: Personal Consumer Issues
Topic: Credit card question - get Uber's new 4%er?
Replies: 42
Views: 5351

Re: Credit card question - get Uber's new 4%er?

fast_and_curious wrote:
Wed Mar 14, 2018 4:10 pm

We haven't tried it in Europe yet, but it appears to be chip-and-PIN from what I can see.
My trip was to Europe and everything worked as advertised. Paid in Euros, which got an acceptable exchange to dollars when it hit my account. 4X points credited and no additional fees.
by rocket354
Wed Mar 14, 2018 2:43 pm
Forum: Personal Consumer Issues
Topic: Credit card question - get Uber's new 4%er?
Replies: 42
Views: 5351

Re: Credit card question - get Uber's new 4%er?

The Uber card is now my most-used card. 4% restaurants. 3% travel (airlines, hotels, rideshares, etc). 2% online purchases. 0% foreign transaction fee. I recently went on a two-week trip overseas and that was a great combination of benefits on just one card. I'll stop before I sound too much like an...
by rocket354
Tue Mar 13, 2018 7:18 pm
Forum: Personal Consumer Issues
Topic: As a home buyer, do you use your own realtor or agent?
Replies: 25
Views: 2384

Re: As a home buyer, do you use your own realtor or agent?

In terms of choosing agents it's always been a crapshoot for me. I chose one with lots of high reviews on the major real estate web sites and he turned out to be a lying slimeball. I've gotten recs from people and none of them have impressed me much--the recs have been friends of friends, not agents...
by rocket354
Mon Mar 12, 2018 5:02 pm
Forum: Personal Consumer Issues
Topic: As a home buyer, do you use your own realtor or agent?
Replies: 25
Views: 2384

Re: As a home buyer, do you use your own realtor or agent?

I've been pretty serious house-shopping a few times, each time with a realtor. I've not once ever gotten into a FSBO home with my agent (different one each time). Something always seems to "come up." I don't know how local it is, but I've always suspected there's a concerted effort on the part of so...
by rocket354
Mon Mar 12, 2018 1:22 pm
Forum: Investing - Theory, News & General
Topic: When doing Dollar Cost Averaging (DCA) does it matter how frequently you put in monies?
Replies: 27
Views: 2151

Re: When doing Dollar Cost Averaging (DCA) does it matter how frequently you put in monies?

Sometimes that is true. For the most part, DCA is just what happens when you invest periodically. It's a difference without a distinction for most. Most people do engage in periodic investing. They get a pay check, then from that paycheck they deposit into investment accounts. But the difference be...
by rocket354
Mon Mar 12, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: When doing Dollar Cost Averaging (DCA) does it matter how frequently you put in monies?
Replies: 27
Views: 2151

Re: When doing Dollar Cost Averaging (DCA) does it matter how frequently you put in monies?

For instance, does it make a difference if you invest $100 daily versus investing $1500 bi-weekly versus investing $3000 monthly? They'd all compound on the same schedule, right? I'm surprised that (almost) no one is addressing your question, which is not about lump sum vs. DCA, but rather about DC...
by rocket354
Mon Mar 12, 2018 8:25 am
Forum: Investing - Theory, News & General
Topic: When doing Dollar Cost Averaging (DCA) does it matter how frequently you put in monies?
Replies: 27
Views: 2151

Re: When doing Dollar Cost Averaging (DCA) does it matter how frequently you put in monies?

Some investments compound daily, some do not. The vast majority of people who Dollar Cost Average do so by investing when the funds become available. If they are paid weekly, they invest weekly. If they are paid bi-weekly or monthly, the invest correspondingly. If you have a lump sum and choose to ...
by rocket354
Sun Mar 11, 2018 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: Buying a plot of land for retirement
Replies: 35
Views: 3505

Re: Buying a plot of land for retirement

Parents were in the position to buy a waterfront lot in an area they frequented for summer vacations in their mid-30s. Took on a mortgage to do it but had the assets to pay cash if they wanted. Paid off the lot 15 years later and then just held on to it. Did nothing to it other than the yearly clea...
by rocket354
Sat Mar 10, 2018 11:36 am
Forum: Personal Consumer Issues
Topic: Consumer Reports Auto Issue Out now
Replies: 48
Views: 5109

Re: Consumer Reports Auto Issue Out now

Agree. The Fiat Spider Lusso is not representative of Fiat quality. A 2018 car being 100% problem free doesn't mean much. Many of the least reliable cars can probably make that claim. Report back on your experience in 10 years (if I am still here). This is key. Any car should be mostly problem free...
by rocket354
Sun Mar 04, 2018 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Has the home we wanted just become 20% more expensive due to tax reforms?
Replies: 62
Views: 7061

Re: Has the home we wanted just become 20% more expensive due to tax reforms?

BCNR, While it may be illustrative to look at the old tax law and the new one, I don't think that comparison should be the primary driver of your decision. The law may effect housing prices (or it may have already). In fact, it almost has to. But no one really knows how they will be effected. All re...
by rocket354
Sun Mar 04, 2018 11:10 am
Forum: Personal Finance (Not Investing)
Topic: USAA Credit Card- new cash back card offer.
Replies: 11
Views: 1882

Re: USAA Credit Card- new cash back card offer.

Sounds similar to the Capital One Quicksilver card. There are other cards (Citi DoubleCash being the most famous) that give 2%. I have USAA and they don't have a minimum rebate amount which is nice--the Citi card requires I believe $20 minimum. The Quicksilver also has no foreign transaction fee. So...
by rocket354
Sun Mar 04, 2018 12:50 am
Forum: Personal Finance (Not Investing)
Topic: Has the home we wanted just become 20% more expensive due to tax reforms?
Replies: 62
Views: 7061

Re: Has the home we wanted just become 20% more expensive due to tax reforms?

These posts pointing out he's essentially in the same position and the other ones shaming him by saying if he needs that extra money he's buying too much house, are surprising to read on this board. He's not in the same position. Current owners are perhaps (depending on circumstances) in the same n...
by rocket354
Sat Mar 03, 2018 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Has the home we wanted just become 20% more expensive due to tax reforms?
Replies: 62
Views: 7061

Re: Has the home we wanted just become 20% more expensive due to tax reforms?

wootwoot wrote:
Sat Mar 03, 2018 1:48 pm

You missed the part about higher child tax credits and lower marginal brackets. While you mention the SALT deduction that was "taken" you fail to mention the additional tax benefits that were given with the new legislation.
Which of those change with the purchase of the house?
by rocket354
Sat Mar 03, 2018 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Has the home we wanted just become 20% more expensive due to tax reforms?
Replies: 62
Views: 7061

Re: Has the home we wanted just become 20% more expensive due to tax reforms?

These posts pointing out he's essentially in the same position and the other ones shaming him by saying if he needs that extra money he's buying too much house, are surprising to read on this board. He's not in the same position. Current owners are perhaps (depending on circumstances) in the same ne...
by rocket354
Sat Mar 03, 2018 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: 25YR old with considerable amount of cash
Replies: 48
Views: 6886

Re: 25YR old with considerable amount of cash

Agreed with posters above--pay off car immediately, and while this is a great financial opportunity, you aren't in position to retire or have a large income from the current money. You have $750k - 15k (to car) = $735k. You are 25. If you want to consider it an income supplement, consider it supplem...
by rocket354
Fri Feb 02, 2018 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: When is it ok to quit your job and run your business full time?
Replies: 24
Views: 2442

Re: When is it ok to quit your job and run your business full time?

I just want to preface this by saying I am someone who absolutely abhors jobs and corporate culture. Years ago, I had a "side gig" that resulted in my making many multiples of my FT job salary. I quit to pursue my side gig and had a lot of fun. But then that dried up and suddenly I was 5+ years remo...
by rocket354
Fri Feb 02, 2018 5:30 pm
Forum: Personal Consumer Issues
Topic: Relearning Calculus
Replies: 81
Views: 6899

Re: Relearning Calculus

How deep of an understanding do you need? It sounds like you might want an undergraduate Real Analysis course. You start really basic, recreating all aspects of math (literally addition and subtraction), and culminate with definitions of derivatives and integrals. Real Analysis is not basic at all--...
by rocket354
Mon Jan 29, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Feeling Locked into a Job
Replies: 26
Views: 3346

Re: Feeling Locked into a Job

I will leave the answers to people who know more about these things, but I do have a question. What happens if you get laid off in the intervening 16 years? Do layoffs just not exist in the public sector? Otherwise, it seems like you'd be taking on that risk as well if you paid out the $95k today.
by rocket354
Mon Jan 29, 2018 1:00 pm
Forum: Investing - Theory, News & General
Topic: If you're really rich you're probably not an index-fundi Boglehead
Replies: 61
Views: 11759

Re: If you're really rich you're probably not an index-fundi Boglehead

As noted by others, the data is unclear what it is representing. My guess is the tiers are the lower threshold. So the $10k tier is $10k-$99k, the $100k tier is $100k - $999k, etc. Also, while it would definitely be nice to know if the proportions are median or mean, either way the amounts are plaus...
by rocket354
Mon Jan 29, 2018 8:42 am
Forum: Personal Finance (Not Investing)
Topic: $100k+ Credit Card Spend Per Year: What card offers the best return?
Replies: 44
Views: 5310

Re: $100k+ Credit Card Spend Per Year: What card offers the best return?

I would look into what 5% point dividend means. $50,000 spend = 2500 points = $25? I would definitely hope not, but I'd investigate. (Or you get points that you can only spend on their portal, and have very limited options.) I can see a reason why it might be a legit $2500 value: they're trying to a...
by rocket354
Sun Jan 28, 2018 12:52 am
Forum: Investing - Help with Personal Investments
Topic: Getting a late start. 38yr old seeking advice.
Replies: 10
Views: 1684

Re: Getting a late start. 38yr old seeking advice.

Renter covers my 15 yr loan payment so we break even on that. Even assuming you are including taxes and insurance in that, you still have maintenance and repairs that you are responsible for. Therefore, you aren't breaking even. You are operating at a cash loss. I don't know how much equity buildup...
by rocket354
Wed Jan 24, 2018 12:03 am
Forum: Investing - Theory, News & General
Topic: Calling all stats and math gurus...monte carlo in excel or online program
Replies: 13
Views: 1227

Re: Calling all stats and math gurus...monte carlo in excel or online program

So, there are a few issues. One, how safe is the institution that offers a guaranteed minimum of a 3% return? Two, the nominal CAGR may be 8.35% but the beginning of that 42-year period had very high inflation. What's the CAGR in real terms? Third, and perhaps most importantly, the variance is the k...