Search found 13238 matches

by smitcat
Thu Mar 28, 2024 8:11 am
Forum: Personal Investments
Topic: Idea of buying land for family restaurant
Replies: 25
Views: 1472

Re: Idea of buying land for family restaurant

Not a business owner, I just work for business owners, so I lack direct experience. That said, Evaluate the Real Estate business independently from the restaurant business. You want the Real Estate to be a separate entity (as it is now) and to make sense as an investment. I.e. the rent the tenant (restaurant) pays offsets the cost of purchase and Looking at the restaurants Profitability is distorting the view point. It doesn't matter for the landlord that the restaurant makes $500k/yr. (Except of course that it's good to have a tenant on solid footing) what matters is what is the Rent the business is paying, and can pay in the future? You may need a commercial real estate pro to help run the numbers for you. How you'd set up the entity tha...
by smitcat
Thu Mar 28, 2024 8:07 am
Forum: Personal Investments
Topic: Idea of buying land for family restaurant
Replies: 25
Views: 1472

Re: Idea of buying land for family restaurant

Is jory1804 (OP) also the same person as Rrolack? Just confused by the two responses immediately above that are not the OP, but seems it could be on another forum username. If they spend everything they make and their income would go to zero without the restaurant, how can they possibly pay the lease to you (or how can you make any kind of return on investment?). Imagine the restaurant as an investment which pays $200k/year to the landlord and $500k/year to my parents. As long as the restaurant operates, the lease gets paid relatively easily. If they've been making $500K/yr then surely they've got a retirement portfolio they've been contributing to, which could be drawn on for income if their in their 70s? Or are they destitute with no ass...
by smitcat
Wed Mar 27, 2024 4:32 pm
Forum: Personal Consumer Issues
Topic: What Toys Have You Bought That Have Been Worth it?
Replies: 254
Views: 18350

Re: What Toys Have You Bought That Have Been Worth it?

Very nice! Make and Model of the AR's? Any plans for suppressors? :sharebeer Both are 5.56mm; makes bulk ammo purchases easy. If I had more time, I'd consider an AR-10 in 7.62x51 I've been shooting PMC Bronze, find it the best bang for the buck, no pun intended. Don't think a suppressor for 5.56mm is worth the cost and hassle. I've toyed with the idea of branching into .300BLK to pair a suppressor with subsonic ammo. But that would be pricey possibly past the utility of how often I shoot. IMO the 7.62 is another world and just not worth it although we have not had an AR style chmabered for that round. What twist do you have on that barrel? Not to be an enabler but Ruger has an AR style MSR in .308, 7.62 and 6.5 creedmoor. https://ruger.com...
by smitcat
Wed Mar 27, 2024 4:31 pm
Forum: Personal Investments
Topic: Idea of buying land for family restaurant
Replies: 25
Views: 1472

Re: Idea of buying land for family restaurant

Hi folks, My parents have owned a restaurant for the past 25 years, on which they have made their living. As far as I understand, the restaurant generates roughly $3M of annual sales and $500k of annual income, and has generated this level of income consistently over a long span of time. Currently, the restaurant is operated by my brother, who works for my parents. My brother has been in this operating role for the past 10 years. My brother is paid well by my parents, much more than he could earn in another career given his skills and experience (he is not a college graduate). Absent any major events, the best long-term career for my brother is probably to continue operating the restaurant until he retires, say 30 years from now. The wrink...
by smitcat
Wed Mar 27, 2024 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25890

Re: Age and probability of needing long term care?

Sorry - never asked you or anyone else for any recommendation on this topic. We have a good quality LTCi with a coverage period of 10 years and are quite happy with it. There are others reading this discussion. And, my point remains that the 60% number, raised by you in the post I first responded to, is a red herring. "We have a good quality LTCi with a coverage period of 10 years and are quite happy with it." This sounds quite unusual and attractive. Are you able to share some of the details with this insurance? Our LTCi is from CNA. We got the policy in our mid-50s through my wife's employers. We are now approaching mid-60s, so about 7-8 years. It pays $430/day as max benefit - with a max coverage period of 10 years. The max co...
by smitcat
Wed Mar 27, 2024 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Take Social Security Now?
Replies: 47
Views: 2366

Re: Take Social Security Now?

perhaps; Fleming vs. Nester was decided in 1960 so it certainly has been the guidance for decades now. I didn't start working until the late 60s. What percentage of us who started working in say the late 1960s or 1970s would you guess were aware of that court case at the time? What percentage would you guess regarded SS as a promise? I'll start: my guess is .01% were aware of the court case and 95% regarded SS as a promise. I do my best to educate people on the impermanence of everything. You might be surprised at how many people think the human species will never go extinct or that western civilizations will go on forever (despite the history of hundreds of civilizations collapsing and disappearing from the earth). You may also be the typ...
by smitcat
Wed Mar 27, 2024 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Take Social Security Now?
Replies: 47
Views: 2366

Re: Take Social Security Now?

EricGold wrote: Wed Mar 27, 2024 1:23 pm When I thought that SS was predictable, I could venture an opinion for OP's question.
With the looming wrangling over how to delay the SS programs insolvency, I don't know.

I've decided to split the difference and claim benefits 7 months before my FRA and about 29 months before FRA for my wife. The funky timing is a result of deeming rules for the spousal benefit and the utility of claiming in January
Was this a math decision? If yes... which calculator did you utilize?
by smitcat
Wed Mar 27, 2024 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Take Social Security Now?
Replies: 47
Views: 2366

Re: Take Social Security Now?

tibbitts wrote: Wed Mar 27, 2024 1:48 pm
smitcat wrote: Wed Mar 27, 2024 1:18 pm
tibbitts wrote: Wed Mar 27, 2024 1:00 pm
Johm221122 wrote: Wed Mar 27, 2024 11:52 am As far as the age/ exact benefits you receive and future taxes, I would 100% be concerned/prepared for change

But as far as available, I have absolutely no concerns. And the more money you have the more I would be concerned about changes
I agree that people who are deemed to "need" SS have no reason to be concerned.
Would that be the same as the ones deemed to 'need' medical insurance?
Well, if we go with the assumption that everyone needs medical insurance, then maybe the same who are deemed unable to pay (fully? partly?) for medical insurance?
Kind of a worthless topic pursuit I believe.
by smitcat
Wed Mar 27, 2024 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25890

Re: Age and probability of needing long term care?

The fraction requiring LTC is not particularly informative. What matters is how long the LTC is needed. The level and quantity of usage is what drives the costs. The fact that only 25% need it for 1 year or more suggests that 60% is the wrong number to focus on. None of the stats are going to inform you on what will happen in the future. They just give you an idea of what could happen. Dig deep into the stats yourself and figure out which scenario you’re most afraid of. I gave you the information, dig through it. I’m not here to make any recommendations. Sorry - never asked you or anyone else for any recommendation on this topic. We have a good quality LTCi with a coverage period of 10 years and are quite happy with it. There are others re...
by smitcat
Wed Mar 27, 2024 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Take Social Security Now?
Replies: 47
Views: 2366

Re: Take Social Security Now?

tibbitts wrote: Wed Mar 27, 2024 1:00 pm
Johm221122 wrote: Wed Mar 27, 2024 11:52 am As far as the age/ exact benefits you receive and future taxes, I would 100% be concerned/prepared for change

But as far as available, I have absolutely no concerns. And the more money you have the more I would be concerned about changes
I agree that people who are deemed to "need" SS have no reason to be concerned.
Would that be the same as the ones deemed to 'need' medical insurance?
by smitcat
Wed Mar 27, 2024 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Take Social Security Now?
Replies: 47
Views: 2366

Re: Take Social Security Now?

perhaps; Fleming vs. Nester was decided in 1960 so it certainly has been the guidance for decades now. I didn't start working until the late 60s. What percentage of us who started working in say the late 1960s or 1970s would you guess were aware of that court case at the time? What percentage would you guess regarded SS as a promise? I'll start: my guess is .01% were aware of the court case and 95% regarded SS as a promise. We were working in the 70's and never assumed that SS was a promise not to change at all over 10, 20 or 50 years. I assumed it could change, but not for benefits that had already been paid in. I looked at that $20 or whatever I had withheld from a paycheck as being like an inflation-indexed CD (although without a specif...
by smitcat
Wed Mar 27, 2024 12:15 pm
Forum: Personal Investments
Topic: Retirement Calculators
Replies: 2
Views: 405

Re: Retirement Calculators

I went to this page https://www.bogleheads.org/wiki/Retirement_calculators_and_spending 1. How do to request changes— Some links are broken on this page 2. What is your favourite calculator for retirement? 3. Is there a calculator that helps with where to get your monthly income from based upon projected investment returns. Specifically, when should I take social security - A. if you take SS earlier less impact on investment principle B. if you take SS later, higher SS monthly payment , more impact on using your invested funds. "3. Is there a calculator that helps with where to get your monthly income from based upon projected investment returns. Specifically, when should I take social security -" Pralana has an auto optimize opt...
by smitcat
Wed Mar 27, 2024 12:06 pm
Forum: Personal Consumer Issues
Topic: Cybertruck-anyone else get to try it on?
Replies: 53
Views: 3851

Re: Cybertruck-anyone else get to try it on?

There may be a time when these EV trucks make sence but its not now. Interestingly, the base trim (Pro) of the Ford Lightning is currently showing $52,140 for me. The F-150 XLT 4x4 crewcab, which appears to be the closest match to the features and amenities of the Lightning (and anecdotally appears to be the most popular configuration) is showing $54,090. So for a buyer who doesn't need long range, but is shopping for a nicely equipped full-size pickup, the EV option could actually be cheaper even before factoring in any tax credit (I don't know if the Lightning qualifies?) or fuel cost savings. In fairness, I should probably mention here that once all the fees are added on to the F-150 or Lightning, the cost is closer than I expected to t...
by smitcat
Wed Mar 27, 2024 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: Take Social Security Now?
Replies: 47
Views: 2366

Re: Take Social Security Now?

tibbitts wrote: Wed Mar 27, 2024 11:54 am
jebmke wrote: Wed Mar 27, 2024 11:41 am perhaps; Fleming vs. Nester was decided in 1960 so it certainly has been the guidance for decades now. I didn't start working until the late 60s.
What percentage of us who started working in say the late 1960s or 1970s would you guess were aware of that court case at the time? What percentage would you guess regarded SS as a promise? I'll start: my guess is .01% were aware of the court case and 95% regarded SS as a promise.
We were working in the 70's and never assumed that SS was a promise not to change at all over 10, 20 or 50 years.
by smitcat
Wed Mar 27, 2024 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Home Purchase with Undetermined Timeline
Replies: 21
Views: 1171

Re: Home Purchase with Undetermined Timeline

OP, Annual expense = 65K per year. Assuming that your financially independent number is 30X = 2 millions. At your current pace, you do not have 30+ years to go. Starting at 160K and save 40K per year At an average annual return of 5%, you will reach 2 millions in 22 years At an average annual return of 6%, you will reach 2 millions in 20+ years At an average annual return of 7%, you will reach 2 millions in 19 years At an average annual return of 8%, you will reach 2 millions in 17+ years Starting Net Worth $160,000 Annual Savings $40,000 Years Annual Return Rate 17 18 19 20 21 22 5.00% $1,400,338 $1,510,354 $1,625,872 $1,747,166 $1,874,524 $2,008,250 6.00% $1,559,359 $1,692,920 $1,834,496 $1,984,565 $2,143,639 $2,312,258 7.00% $1,739,019 ...
by smitcat
Wed Mar 27, 2024 9:52 am
Forum: Personal Consumer Issues
Topic: What Toys Have You Bought That Have Been Worth it?
Replies: 254
Views: 18350

Re: What Toys Have You Bought That Have Been Worth it?

btq96r wrote: Wed Mar 27, 2024 9:28 am
smitcat wrote: Wed Mar 27, 2024 8:39 am IMO the 7.62 is another world and just not worth it although we have not had an AR style chmabered for that round. What twist do you have on that barrel?
The AR-10s have come a long way. But, they're pricey (with good reason). If you want to really take advantage of the distance and power, you need good accessories. Plus a range to shoot at distance, unless you're a hunter and just need to zero the optic.

For my AR-15s, the SBR is a 10.5" barrel, and has a 1:8 twist, and my 16" has 1:7. Both carbine length gas.
Sounds good - my experience with 7.62 is with a Saiga and the power was there ...but not all of the accuracy.
The 1:7 is what we have for target shooting.
by smitcat
Wed Mar 27, 2024 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Age and probability of needing long term care?
Replies: 258
Views: 25890

Re: Age and probability of needing long term care?

I believe WoW2012 has a valid point. If we use the probabilities shared earlier by IDpilot - LTCi has a 180 days period before it comes into play. So, 25% get some payoff. But, a good portion don't get much as they pass off. Of those, 10% have 1-2 years. 2-5 year of LTC costs do likely add up for the insurance companies - but that's 11% of 65+. But, it is the 7% who need it for 5 or more years that face a large (and in some cases, catastrophic) costs. So, what WoW2012 said makes sense. I do not know where 60% is coming from. He's getting his stats from summaries of this data: https://aspe.hhs.gov/sites/default/files/documents/08b8b7825f7bc12d2c79261fd7641c88/ltss-risks-financing-2022.pdf 56% of people age 65 or older will need it. Not quit...
by smitcat
Wed Mar 27, 2024 9:23 am
Forum: Personal Consumer Issues
Topic: Cybertruck-anyone else get to try it on?
Replies: 53
Views: 3851

Re: Cybertruck-anyone else get to try it on?

We've ended up with an ICE vehicle in addition to our Y. We did not find any of the full size truck offerings comfortable enough to justify the massive price tags and now find ourselves in a van that fits what we want to haul. Driving systems are nice with distance pacing cruise control and a steady lane keep assistance that comes close to teslas. Us too. We bought a 2023 Ford F150 POWERBOOST Platinum (hybrid) after our tax advisor suggested a 2023 heavy vehicle purchase in October 2023 to help minimize our tax burden (2013 Ram outgoing vehicle). It was almost $80K, but pure luxury and so glad we got it. I can drive to Steamboat Springs from the Front Range of CO (3-4 hours each way depending on weather) and back on a full tank of gas - st...
by smitcat
Wed Mar 27, 2024 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Break-Even Calculator That Includes Opportunity Cost of Waiting?
Replies: 16
Views: 1520

Re: Social Security Break-Even Calculator That Includes Opportunity Cost of Waiting?

How does one put a value on "opportunity" in advance? Return on a hot stock? A once in a lifetime vacation? I think you might misunderstand the concept of "opportunity cost." There's an opportunity cost to the money you're withdrawing from your portfolio while you're waiting to collect Social Security. That cost is the rate of return you would have gotten had you not withdrawn it. While that rate of return is unknowable, for planning purposes you can apply a reasonable discount rate to estimate the net present value of those future cash flows. That return on the money you're no longer withdrawing would extend the break-even age, perhaps significantly. In order to take into account SS decisions and how they affect 'all' ...
by smitcat
Wed Mar 27, 2024 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Take Social Security Now?
Replies: 47
Views: 2366

Re: Take Social Security Now?

LaramieWind wrote: Wed Mar 27, 2024 8:45 am Concerned about S/S being available in the future.
Then run the future scenarios with both todays SS rate and the SS cutback rate on the SS site.
In many cases it does not make much difference - it still makes sence to wait to 70.
In our case waiting to 70 is the best mathmatical solution even when using a whole host of variables.
by smitcat
Wed Mar 27, 2024 8:39 am
Forum: Personal Consumer Issues
Topic: What Toys Have You Bought That Have Been Worth it?
Replies: 254
Views: 18350

Re: What Toys Have You Bought That Have Been Worth it?

btq96r wrote: Wed Mar 27, 2024 8:30 am
The Outsider wrote: Tue Mar 26, 2024 10:36 am Very nice! Make and Model of the AR's? Any plans for suppressors?
:sharebeer
Both are 5.56mm; makes bulk ammo purchases easy. If I had more time, I'd consider an AR-10 in 7.62x51 I've been shooting PMC Bronze, find it the best bang for the buck, no pun intended.

Don't think a suppressor for 5.56mm is worth the cost and hassle. I've toyed with the idea of branching into .300BLK to pair a suppressor with subsonic ammo. But that would be pricey possibly past the utility of how often I shoot.
IMO the 7.62 is another world and just not worth it although we have not had an AR style chmabered for that round. What twist do you have on that barrel?
by smitcat
Tue Mar 26, 2024 1:31 pm
Forum: Personal Consumer Issues
Topic: Autos Collecting and Selling Our Driving Info? Is this real?
Replies: 25
Views: 2793

Re: Autos Collecting and Selling Our Driving Info? Is this real?

I requested my LexisNexis report about 10 days ago when I first heard about this because I have had GM Onstar off and on. I bought the truck in late December 2021 and activated whatever Onstar trial came with it, but let it expire. GM threw a bunch of loyalty points at me due to delays in getting my heated seats and steering wheel from the parts shortages, so I used those to reactivate it in September 2023 just so I could use the remote start function from my phone for the winter. LexisNexis does not mail the report but instead mail you a link and PIN via USPS to view it online. Turns out Onstar reported 620 events starting in September up through March this year. Each event show the trip start/stop time, distance and events for high speed...
by smitcat
Tue Mar 26, 2024 8:05 am
Forum: Personal Investments
Topic: House 2027
Replies: 36
Views: 3211

Re: House 2027

. OP should not buy the 400K house. He cannot afford it. But, if OP insist on buying the 400K house, paying 20+% taxes and use after-tax money to pay more into the mortgage is the bad way to go. KlangFool let’s say I am insistent. How do I save for a down payment? What if I asked you what price of house I can afford? A) Max up your 401K and take the 20+% tax savings. B) Why do you need to save for the down payment? There is enough home equity (70K) in your current house for the 20% down payment. C) If you need even more money for the down payment, you can take a 401K loan from your 401K. D) Who do you choose pay 20+% taxes and save the down payment in your taxable account? KlangFool "A) Max up your 401K and take the 20+% tax savings. ...
by smitcat
Mon Mar 25, 2024 10:41 am
Forum: Personal Investments
Topic: House 2027
Replies: 36
Views: 3211

Re: House 2027

Folks, 401K/IRA are not retirement accounts. They are tax advantaged accounts. They are tax management tools. You can get the money out tax free and penalty free before 59 1/2 years old. https://www.madfientist.com/how-to-access-retirement-funds-early/ OP has 36K to save and invest. A) Pay 20+% taxes and save 36K into the Money Market Fund in the the Taxable account. The amount is 36K per year. B) Contribute to his/her 401K/403B/457 and save at least 20% taxes (7.2K) plus 36K into money market fund at the 401K/403B/457. The amount is 43.2K per year. In both cases, we are not investing the money. They are kept in the Money Market Fund. After 3 years, OP will have more money with (B). OP has enough money for the 20% down payment from the cur...
by smitcat
Sun Mar 24, 2024 7:02 am
Forum: Personal Consumer Issues
Topic: Autos Collecting and Selling Our Driving Info? Is this real?
Replies: 25
Views: 2793

Re: Autos Collecting and Selling Our Driving Info? Is this real?

anon_investor wrote: Sat Mar 23, 2024 7:28 pm
smitcat wrote: Sat Mar 23, 2024 6:50 pm
anon_investor wrote: Sat Mar 23, 2024 10:21 am
smitcat wrote: Sat Mar 23, 2024 10:10 am I turn it 'off' in our cars.
How?
It was an option on onstar when we signed up - we logged it off at the start.
Its in the handbook.
Good to know, we plan to upgrade one of our cars in the not so distant future.
We turned off whatever that 'safe driving' option was right away - there are also many other options in these packages like Onstar (data, Nav, remote, driver protection, whatever). We turned the rest 'off' at the end of the free trial on one and the other will last untill that expires in future years.
by smitcat
Sat Mar 23, 2024 6:55 pm
Forum: Personal Consumer Issues
Topic: What Toys Have You Bought That Have Been Worth it?
Replies: 254
Views: 18350

Re: What Toys Have You Bought That Have Been Worth it?

lessismore22 wrote: Sat Mar 23, 2024 2:10 pm
smitcat wrote: Fri Mar 22, 2024 6:27 amBoats...
+1.

We are on our third pontoon. Purchased our dream design/layout(with sea legs) in summer '22. Worth every penny.
Really glad you enjoy them - we have had some really great times and adventures on boats
by smitcat
Sat Mar 23, 2024 6:54 pm
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 238
Views: 22605

Re: Great news! No more [fixed real estate] agent commission

Way back in the 90's there were no commisions posted on MLS as we had many of the 'books' back then printed up with all the listings (they do not exist anymore). Sometime back then one or more govt agency got involved and said you must compensate buyers brokers so that the consumer (buyer) has more representation. Wait, you are claiming that the government forced this on the NAR? I think you are going to have to come up with some documentation for that. Some states made some limitations on dual agency because of its obvious conflicts, but they did not mandate buyers agents much less mandate sellers pay the commissions for them. Memorries from way back in the 90's - anyone that cares can research this and correct any mistaken thoughts.
by smitcat
Sat Mar 23, 2024 6:51 pm
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 238
Views: 22605

Re: Great news! No more [fixed real estate] agent commission

Per the NAR press release on this ( linked here ): In addition to the financial payment, NAR has agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS. This would mean that offers of broker compensation could not be communicated via the MLS, but they could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Further, NAR has agreed to enact a new rule that would require MLS participants working with buyers to enter into written agreements with their buyers. The more I learn about this, the more I'm starting to think that a lot of the proposed benefits of this settlement are just wishful thinking. The way I read this, it just says that...
by smitcat
Sat Mar 23, 2024 6:50 pm
Forum: Personal Consumer Issues
Topic: Autos Collecting and Selling Our Driving Info? Is this real?
Replies: 25
Views: 2793

Re: Autos Collecting and Selling Our Driving Info? Is this real?

anon_investor wrote: Sat Mar 23, 2024 10:21 am
smitcat wrote: Sat Mar 23, 2024 10:10 am I turn it 'off' in our cars.
How?
It was an option on onstar when we signed up - we logged it off at the start.
Its in the handbook.
by smitcat
Sat Mar 23, 2024 8:09 am
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 120
Views: 9455

Re: Which industry will benefit from new real estate commission fee structure?

valleyrock wrote: Fri Mar 22, 2024 2:07 pm I recall years ago reading about Madison, WI. A local outfit allowed people to list their homes for a fee in the hundreds of dollars. It worked well, as a local FSBO. So, there's opportunity there.
Facebook Marketplace
by smitcat
Sat Mar 23, 2024 8:07 am
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 238
Views: 22605

Re: Great news! No more [fixed real estate] agent commission

Per the NAR press release on this ( linked here ): In addition to the financial payment, NAR has agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS. This would mean that offers of broker compensation could not be communicated via the MLS, but they could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Further, NAR has agreed to enact a new rule that would require MLS participants working with buyers to enter into written agreements with their buyers. The more I learn about this, the more I'm starting to think that a lot of the proposed benefits of this settlement are just wishful thinking. The way I read this, it just says that...
by smitcat
Sat Mar 23, 2024 8:02 am
Forum: Personal Finance (Not Investing)
Topic: Should we have Long Term Care Insurance?
Replies: 34
Views: 2963

Re: Should we have Long Term Care Insurance?

One bit of semi-conventional wisdom about Long Term Care Insurance is that there are 3 categories of households: 1) Those for whom paying for long-term care would not be catastrophically expensive. Maybe they have enough assets to support retirement spending of $200,000 per year, so paying $10,000 per month for long-term care would not break them. 2) Those for whom paying for long-term care would be catastrophically expensive, but who can't afford to pay the premium for Long Term Care Insurance, which for reasonable coverage might be several thousand dollars per year per person. Medicaid is probably their default long-term care insurance. 3) Those in the middle, who can afford to pay the premium but for whom paying for long-term care itsel...
by smitcat
Sat Mar 23, 2024 7:56 am
Forum: Personal Consumer Issues
Topic: 4-6cyl turbo suv
Replies: 24
Views: 2929

Re: 4-6cyl turbo suv

Higher CX-5 trims do have a Turbo option. We have the CX-5 with the Turbo Signature level trim. Lots of power, but not as good highway mileage as our old Acura with a 6 cylinder. It checked all of the boxes except for gas mileage when we got it but a some of the 'features' are somewhat of a nuisance. One in particular is the intervention braking if one is approaching, from the rear, a car making a right hand turn. Even at its least proactive setting it can be unsettling. You can turn it off but need to do it each time you start the car, and it is buried several layers deep in the settings menu. I did turn off the audible warning if you are 10 mph over the speed limit . The sensor often will somehow ascertain that you are in a 5 or 15 mph z...
by smitcat
Fri Mar 22, 2024 11:31 am
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 238
Views: 22605

Re: Great news! No more [fixed real estate] agent commission

Numerous discussions about generalities, but is there any definitive information on how this works? Article I read said one of the key aspects is that the seller essentially pays both sides of the transaction. It suggested that the new approach, let's assume a 6% commission, would mean that the purchaser would pay 3% to their Realtor, and the seller would pay the same. These amounts would be negotiated, of course and could be lower. The article stated July 1 as the start date. Any specific information would be appreciated. Tim Overall simplified summary is 2 key changes will need to be made.... - MLS participants representing buyers will need a written 'contract' in place ahead of time - MLS participants representing sellers will not be ab...
by smitcat
Fri Mar 22, 2024 6:52 am
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 238
Views: 22605

Re: Great news! No more [fixed real estate] agent commission

Who pays the real estate commission, the seller or the buyer? I sell a house for the market value of $500K and I receive $470K net of the 6% realtor commission of $30K. The actual value realized was $470K. Viewed in terms of market value, the seller has paid the 6% commission. The buyer pays the market value of $500K and receives a house with a realized actual value of $470K; the price paid is $30K more than the actual value. Instead of paying the $30K as a commission, the $30K is paid indirectly by being invisibly transferred to the seller, whereupon it is paid as realtor commissions. Viewed in term of the actual value of the house, the buyer has paid the 6% commission. So, who paid the realtor commissions, the seller or the buyer? It dep...
by smitcat
Fri Mar 22, 2024 6:49 am
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 238
Views: 22605

Re: Great news! No more [fixed real estate] agent commission

Numerous discussions about generalities, but is there any definitive information on how this works? Article I read said one of the key aspects is that the seller essentially pays both sides of the transaction. It suggested that the new approach, let's assume a 6% commission, would mean that the purchaser would pay 3% to their Realtor, and the seller would pay the same. These amounts would be negotiated, of course and could be lower. The article stated July 1 as the start date. Any specific information would be appreciated. Tim Overall simplified summary is 2 key changes will need to be made.... - MLS participants representing buyers will need a written 'contract' in place ahead of time - MLS participants representing sellers will not be ab...
by smitcat
Thu Mar 21, 2024 8:01 pm
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 120
Views: 9455

Re: Which industry will benefit from new real estate commission fee structure?

What you said is very true. Just making the point that the job requirement is minimal which usually not the case for the money being made in hcol areas. It is not a daunting task to list and sell a home. People act as if it takes tremendous skill and knowledge when it actually only takes common sense, some people skills and some basic knowledge, which is why homes are sold fsbo. We have bought and sold 7. In my business I worked with at least 50 realtors, many multiple times getting homes ready to sale. I also cannot think of any other situation where a consumer pays a commission to sell a high priced possession and also pays the commission for the agent working with the buyer. That got baked into the system and everybody just accepted it ...
by smitcat
Thu Mar 21, 2024 7:56 pm
Forum: Personal Consumer Issues
Topic: 4-6cyl turbo suv
Replies: 24
Views: 2929

Re: 4-6cyl turbo suv

If it doesnt have to be a turbo, Mazda has a very nice naturally aspirated 2.5l engine with a lot of great engineering in it. Very reasonable gas milage and a bargain in the CX-5 and CX-50, too. Especially in the Select trim. Higher CX-5 trims do have a Turbo option. We have the CX-5 with the Turbo Signature level trim. Lots of power, but not as good highway mileage as our old Acura with a 6 cylinder. It checked all of the boxes except for gas mileage when we got it but a some of the 'features' are somewhat of a nuisance. One in particular is the intervention braking if one is approaching, from the rear, a car making a right hand turn. Even at its least proactive setting it can be unsettling. You can turn it off but need to do it each time...
by smitcat
Thu Mar 21, 2024 1:57 pm
Forum: Personal Investments
Topic: Roth Conversion - Source for Paying Taxes
Replies: 31
Views: 2741

Re: Roth Conversion - Source for Paying Taxes

I wasn't expecting such a spirited discussion. The back and forth is informative. Thank you. If you pay the taxes out of savings or other taxable account, you end up with more money in Roth IRA and less in savings or taxable account. If you have lots in taxable, that is usually seen as a better choice because people are so fond of Roth. If you have little to no taxable account or if you don't wish to deplete it for whatever reason, there is no reason not to pay the taxes out of the conversion since you are past the early withdrawal penalty age. It sounds like the larger problems to consider are related to what is in your portfolio and having the "management" of EJ. How can we help you with that? (You almost certainly need to get ...
by smitcat
Thu Mar 21, 2024 1:54 pm
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 120
Views: 9455

Re: Which industry will benefit from new real estate commission fee structure?

Simply pointed out you are paying tens of thousands of dollars to agents who needed 3 or 4 weeks of education to sell your home. What does education - presuming you mean post-HS formal education of some sort - have to do with anything? I don't do business with or hire anyone based on their formal education. I want someone with experience and specific knowledge and skills. I know educated engineers, lawyers, teachers, etc. that I wouldn't trust with a piggy bank. I know real estate agents with bachelors degrees, masters degrees - heck, one with a law degree. What is far more important than whatever formal education they have is local knowledge, expertise, customer service, honesty and professionalism. That generally comes after years of exp...
by smitcat
Thu Mar 21, 2024 8:47 am
Forum: Personal Consumer Issues
Topic: navigation system for car
Replies: 64
Views: 3368

Re: navigation system for car

I am actually looking for a simple thing to substitute for my car's no longer functioning nav system. I don't want it to tell me about traffic or accidents or detours or restaurants or things like that. I just want it to display the map, the route, where my car is on the route, and tell me by voice where to turn. I want it to keep functioning even if it loses GPS data. That is, on the rare occasions where it did not have GPS when I started the car at home, I could set its location on the map to my house by hand and it would work okay telling me where to do and showing the route as I traveled. I don't know how it does that, but I think it gets feedback from the tires, for example, no joke. Is there such an animal? Have you investigated the ...
by smitcat
Thu Mar 21, 2024 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 4984

Re: Long-Term Care/Protecting Assests

For those of you in a similar circumstance, how do you plan on sheltering your assets from the ravages of LTC and ensure they're passed on to your heirs where they rightfully belong? Any thoughts and advice would be appreciated. Why do your assets "rightfully belong" to your heirs? Aren't your assets there to support your and your wife's needs? Do you also get food at food banks to avoid spending your assets, that "rightfully belong to your heirs", on groceries? By all means make plans and provision for possible LTC for yourself and your wife, but use your own assets. Look at LTC insurance or increase your retirement assets to cover possible costs. You asked for any thoughts.... I agree it was unproductive for the OP to...
by smitcat
Thu Mar 21, 2024 8:13 am
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 120
Views: 9455

Re: Which industry will benefit from new real estate commission fee structure?

Simply pointed out you are paying tens of thousands of dollars to agents who needed 3 or 4 weeks of education to sell your home. What does education - presuming you mean post-HS formal education of some sort - have to do with anything? I don't do business with or hire anyone based on their formal education. I want someone with experience and specific knowledge and skills. I know educated engineers, lawyers, teachers, etc. that I wouldn't trust with a piggy bank. I know real estate agents with bachelors degrees, masters degrees - heck, one with a law degree. What is far more important than whatever formal education they have is local knowledge, expertise, customer service, honesty and professionalism. That generally comes after years of exp...
by smitcat
Thu Mar 21, 2024 8:08 am
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 120
Views: 9455

Re: Which industry will benefit from new real estate commission fee structure?

What I'm saying is there is a surplus of realtors and reducing the aggregate commissions paid to realtors will cause the number of realtors to go down and the realtors that remain to work more efficiently. We have strong evidence that the price will go down because the U.S. has some of the highest realtor commissions in the world. The Economist did a good story about it: https://www.economist.com/united-states/2019/08/29/why-americas-real-estate-brokers-are-such-a-rip-off?utm_medium=cpc.adword.pd&utm_source=google&ppccampaignID=17210591673&ppcadID=&utm_campaign=a.22brand_pmax&utm_content=conversion.direct-response.anonymous&gad_source=1&gclid=CjwKCAjwkuqvBhAQEiwA65XxQOPHLQmAxl-rLYlIv6xgtitPzUuLdGjd4gHWoWa1LUbYeP...
by smitcat
Wed Mar 20, 2024 1:49 pm
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 120
Views: 9455

Re: Which industry will benefit from new real estate commission fee structure?

What we have is exactly the textbook definition of deadweight loss: a difference between production and consumption causing economic inefficiency because a socially optimal amount of a service is not being produced. I would like to see the textbook that defines deadweight loss without even a reference to 'surplus'... Also, deadweight loss may or may not be economically inefficient and social optimality can exist with a deeadweight loss (in fact, in some situations with externalities increasing deadweight loss will make the market closer to social optimality). Question, do you have any formal education in economics? In an economically efficient real estate market, realtors would spend all of their time performing the tasks necessary to clos...
by smitcat
Wed Mar 20, 2024 1:45 pm
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 120
Views: 9455

Re: Which industry will benefit from new real estate commission fee structure?

Lee_WSP wrote: Wed Mar 20, 2024 12:11 pm
smitcat wrote: Wed Mar 20, 2024 11:55 am
We did not pay 6% in 2021.
We did not pay 6% in 2022.
The buyers agent did not get 3% in either deal - they are all negotiable and all different.
Just wondering how you got around the MLS rule requiring 3% to the buyers agent? Or did your brokerage allow variances prior to settlement?
Negotiated when signing - it was on the MLS listing.
by smitcat
Wed Mar 20, 2024 11:55 am
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 120
Views: 9455

Re: Which industry will benefit from new real estate commission fee structure?

It's not that realtors don't work hard. Any successful realtor almost certainly does. The problem is they spent most of their time and spend a lot of money doing activities that constitute deadweight economic loss. All the time they are spending looking for new clients and advertising for themselves (instead of properties) is deadweight loss. It's not actually helping the parties to any transaction. If commissions were lower, there'd be fewer realtors competing against each other and less deadweight loss. We know this because we have other countries with different commission structures to compare to. That's not at all what deadweight loss means in economics - and that makes it difficulty to pin down exactly what you think the problem is. I...
by smitcat
Wed Mar 20, 2024 8:00 am
Forum: Personal Investments
Topic: Career ending, getting fired. Can we FIRE ?
Replies: 161
Views: 26629

Re: Career ending, getting fired. Can we FIRE ?

Yeah, now the trick is bringing some of that simplicity to other areas of their life. All these helpful posters just haven’t quite put together the right combination. Hopefully someone hits OP with another take/angle on the same ideas and it takes hold. I hope so. I bought a copy of MS Office 2021 in order to use Pralana Gold, which I also purchased. It is a big spreadsheet with a 199 page manual. It does have a ton of features. I'm still trying to make sense of it. Simple it is not. I still have not come up with a viable plan that includes taxes. Pralana does take time to load/run/review/change and understand outputs - I would not try to do it in one sitting or even a couple. Please note that Pralana also has an online users site where qu...