Search found 652 matches

by runner540
Sat Jul 14, 2018 2:23 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 87
Views: 5450

Re: Why is leveraging property good but leveraging stocks bad?

When was the last time you heard of house prices falling? All the time. In 2006-2008, they fell 50%. In some cities, even more. A house is an undiversified risk asset. Some people buy a "bad" property that ends up having a major issue affecting it's value, or even something happens nearby that affe...
by runner540
Sat Jul 14, 2018 11:48 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 87
Views: 5450

Re: Why is leveraging property good but leveraging stocks bad?

1) Hypothetically if there was an identical loan structure as with home mortgages for index funds, would that then be a sensible strategy for leverage? Hence my confusion as to why leverage isn't treated as "bad" in all aspects. It seems to be okay or good to leverage to buy property, albeit, most ...
by runner540
Fri Jul 13, 2018 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: What rate of return are you using for retirement projections?
Replies: 91
Views: 7815

Re: What rate of return are you using for retirement projections?

I'll bite for this poll: 3% real for the next 60 years. Scientific - no! This is for a portfolio that is mostly equities at global cap weight. I'm quite sure the next 60 years will not look like 1958-2018, so I'm not going to undersave by expecting the same strong equity growth that some of the Boom...
by runner540
Thu Jul 12, 2018 8:05 pm
Forum: Investing - Theory, News & General
Topic: Real Estate Investment: Yay or Nay?
Replies: 27
Views: 1933

Re: Real Estate Investment: Yay or Nay?

Those mortgage stats sound like a standard owner-occupied mortgage. What are the terms for a rental property?

Also, who will cover water, sewer, trash? Pest control?
by runner540
Tue Jul 10, 2018 6:52 am
Forum: Personal Finance (Not Investing)
Topic: Rent or sell first home
Replies: 5
Views: 507

Re: Rent or sell first home

Will you be able to get a mortgage for your new house while carrying the other mortgage? Other landlords can comment on what other costs besides mortgage and taxes you need to consider. How much of your networth would the two houses be? I wouldn't be comfortable with a significant portion of my netw...
by runner540
Sun Jul 08, 2018 6:23 pm
Forum: Investing - Theory, News & General
Topic: WCI blog post - "This Real Estate Bubble - Likely Isn't a Bubble"
Replies: 58
Views: 6493

Re: WCI blog post - "This Real Estate Bubble - Likely Isn't a Bubble"

To keep this actionable, I will note that I am tracking this data closely because I may be ready to buy a house in the next 3-5 years. Also, to keep this intellectually honest, we need to acknowledge that the source/author is a mortgage lender, who makes money when people buy houses and use a lot of...
by runner540
Sun Jul 08, 2018 5:24 pm
Forum: Personal Consumer Issues
Topic: What do you pay for home services?
Replies: 55
Views: 3255

Re: What do you pay for home services?

For the moment, I'm curious about house cleaning and landscaping, but feel free to chime in with others. We recently moved, and I've had some sticker shock on the prices at the new house (we moved <10 miles away, into the suburbs). In our old house (~3400 sq ft) we paid $120 every 2 weeks for house...
by runner540
Tue Jul 03, 2018 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Can I finance a new home abroad (Carribean)???
Replies: 53
Views: 4229

Re: Can I finance a new home abroad (Carribean)???

That being said I would really like to know if there are any options for me to acquire a US backed loan with reasonable fixed rates. Local mortgage rates in the Dominican Republic are very high (between 18% and 26%) and are typically not fixed. Here are just a couple reasons that this is an unreaso...
by runner540
Sun Jul 01, 2018 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Do we start the house buying process?
Replies: 25
Views: 2199

Re: Do we start the house buying process?

No. Not unless 1. you have a stable job in the area that would support the family AND 2. You have a 10%+ downpayment excluding your emergency fund Even then, I think you should not fall in love with this house while you have significant other debt. Whenever you do buy a home, you need to have room i...
by runner540
Sun Jul 01, 2018 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: What are your property taxes?
Replies: 212
Views: 12650

Re: What are your property taxes?

In NJ (Monmouth County), my taxes are ~$10,000/yr. I was recently hit with a $2,000 increase in 2017. In NJ, there is a law on the books that the "rate" can only increased no more than 2% annually without special approval by the state. However, in my area they actually re-accessed the land and stru...
by runner540
Sat Jun 30, 2018 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: $1 million house--- sanity check
Replies: 96
Views: 10284

Re: $1 million house--- sanity check

Do it! For folks not living on the west coast (I live in Seattle), a million dollar house is pretty ordinary for those in the top 5% and likely to continue to get more expensive. Enjoy your life and (future) kids! I clarified that statement. This is why some folks come on Bogleheads and don't come ...
by runner540
Sat Jun 30, 2018 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: $1 million house--- sanity check
Replies: 96
Views: 10284

Re: $1 million house--- sanity check

Do it! For folks not living on the west coast (I live in Seattle), a million dollar house is pretty ordinary for those in the top 5% and likely to continue to get more expensive. Enjoy your life and (future) kids! I clarified that statement. This is why some folks come on Bogleheads and don't come ...
by runner540
Wed Jun 27, 2018 9:58 pm
Forum: Personal Consumer Issues
Topic: Did you celebrate when you finally hit $1m?
Replies: 161
Views: 14671

Re: Did you celebrate when you finally hit $1m?

Still so surprised to see the bulk (90%?) of replies saying it's not significant, nor did they feel the need to celebrate in any way, or that they barely noticed. I understand that for us, those who are disciplined enough (and in the normal-ish income range) that our lifestyle doesn't change after ...
by runner540
Tue Jun 26, 2018 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: $1 million house--- sanity check
Replies: 96
Views: 10284

Re: $1 million house--- sanity check

The reason I'm even considering this is that the prices are going out of control in our neighborhood. . . If we wait until we have a few kids, this house will be $1.5 million. . . . I'm not sure we could afford to live in this size house ever again unless we act now. Classic bubble talk complete wi...
by runner540
Sun Jun 17, 2018 10:22 am
Forum: Personal Finance (Not Investing)
Topic: How to calculate "fun money" per year?
Replies: 37
Views: 3445

Re: How to calculate "fun money" per year?

Take care of family, basic needs, and saving, then give and spend the rest. I find it helpful to roughly match $ of giving and fun spending.
by runner540
Fri Jun 15, 2018 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: can we afford to spend $20K on travel annually
Replies: 89
Views: 6940

Re: can we afford to spend $20K on travel annually

Do it while you can! We took our kids to Aruba several times when they were little. These days (17 and 21), summer internship, work, school/college vacations not lined up, decisions on where to go make it much harder for our family. We've decided to take a vacation this year which will have to wait...
by runner540
Sun Jun 10, 2018 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: How much rent can one afford?
Replies: 4
Views: 528

Re: How much rent can one afford?

Keep housing/rent under 25% of income, to be able to save and spend on other categories. But, if you can spend less to get a place you're happy with, do that.
by runner540
Sun Jun 10, 2018 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Age 33 Financials- Thinking of buying a second home- please critique
Replies: 5
Views: 618

Re: Age 33 Financials- Thinking of buying a second home- please critique

What job pays $300k plus stock, AND allows for frequent 3 day weekends away? You will be exposed to $1.8MM in housing assets. If the market hiccups, your net worth will be significantly impacted. Are you comfortable with that? You will have $465k mortgage, plus $960k mortgage on the vacation propert...
by runner540
Sun Jun 10, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Help with investments and long term financial road
Replies: 15
Views: 1204

Re: Help with investments and long term financial road

Welcome. You are a good candidate to benefit from Dave Ramsey's plan. Listen to his podcast, read his book, take the class - whatever format will help you. You have an emergency of 15% interest. No investment is going to make enough to cover that. Stop the investing, build a budget, stop all discret...
by runner540
Sat Jun 09, 2018 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Another home thread: 2mil / 40K in taxes
Replies: 59
Views: 5555

Re: Another home thread: 2mil / 40K in taxes

+1 about SALT. I think the 10K ceiling on the property tax and income taxes as well as the 750K cap on mortgage dept will end up having a dramatic effect on New York, California and Illinois as people learn more about it and as it works its way through the system. Generally agree. However, I think ...
by runner540
Sat Jun 09, 2018 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Are you including SS in your planning model? Are the benefits really that high?
Replies: 148
Views: 11653

Re: Are you including SS in your planning model? Are the benefits really that high?

I don't assume any SS but I am a little younger. Essentially, I know some things will change dramatically in the next 60 years, and I figure ignoring SS is a margin for error. (maybe Medicare premiums go way up for people with assets, or a VAT tax is added that reduces the value of Roth post tax, or...
by runner540
Fri Jun 08, 2018 10:36 pm
Forum: Investing - Help with Personal Investments
Topic: New to investing and just got an inheritance
Replies: 22
Views: 1653

Re: New to investing and just got an inheritance

Keep in mind that this is your wife’s inheritance and she will need to take a role in all this. You cannot act on her behalf. She will need to contact the new institution, sign the papers, etc. +1 OP, the law views this money as your wife's right now. If she takes some action, like mixing it into y...
by runner540
Fri Jun 08, 2018 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Private sector pensions/multiple income streams- value?
Replies: 4
Views: 439

Re: Private sector pensions/multiple income streams- value?

I would not tell a friend of mine to make this decision on a small possible different in retirement formulas. Compounded over time, there might be a material difference, but more likely is that things will change the formulas over time. Choose based on coworkers, commute, culture, opportunities to l...
by runner540
Fri Jun 08, 2018 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house in Florida but you are hundreds of miles away
Replies: 33
Views: 2790

Re: Buying a house in Florida but you are hundreds of miles away

jebmke wrote:
Fri Jun 08, 2018 5:46 pm
^ I would add, Florida is a pretty big and diverse state. I grew up in northern Florida - it is quite unlike many other parts of the state. Talking about Florida as a monolith is almost like talking about "Europe."
Thanks for my laugh of the day!! 8-)
by runner540
Thu Jun 07, 2018 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Stuck in Quicksand (Guidance Appreciated)
Replies: 46
Views: 3500

Re: Stuck in Quicksand (Guidance Appreciated)

So, a top 2% salary with family time aplenty? Would you also like to telecommute and live in a LCOL area? Try volunteering for the needy and doing some reading on contentment. Maybe some meditation? I have heard that helps. Being stuck in a quicksand pit of upper middle class America is MANY people...
by runner540
Tue Jun 05, 2018 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Downsize due to tax law change?
Replies: 31
Views: 1770

Re: Downsize due to tax law change?

WhiteMaxima wrote:
Tue Jun 05, 2018 11:46 am
$11000 property tax? You could probably rent an Apt for $1000/month to save the property tax and use the mortgage saving for retirement saving.
If this is in TX, $320k 6 years ago could have appreciated 50%, to almost $500k, and the property tax rate is 2.7% in Dallas.
by runner540
Mon Jun 04, 2018 11:59 am
Forum: Personal Consumer Issues
Topic: Is our monthly Personal money out of line?
Replies: 74
Views: 7582

Re: Is our monthly Personal money out of line?

Thanks for all the great responses. To me, "optimize spending" means not wasting money and getting the most utility out of what we do spend it on. Now I know that "wasting money" means different things to different people. :beer I do like the perspective that as long as we're on track to meet our f...
by runner540
Sun Jun 03, 2018 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Expensive house in HCOL area
Replies: 70
Views: 6472

Re: Expensive house in HCOL area

Commute times are key when you have kids, particularly if both of you plan to continue to work. If that is the situation, then go for option #2 which is affordable given your income(s). That said, a 3-bedroom house is going to get pretty crowded with 3-4 kids plus a nanny/grandparent. Not getting m...
by runner540
Sun Jun 03, 2018 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Expensive house in HCOL area
Replies: 70
Views: 6472

Re: Expensive house in HCOL area

Lenders will approve a lot of things right now, so ignore what they are telling you and do your own math about what you can afford. Read this Bloomberg article if you don't believe me. https://www.bloomberg.com/news/features/2018-05-24/small-time-bankers-make-millions-peddling-mortgages-to-the-poor ...
by runner540
Sun Jun 03, 2018 8:39 am
Forum: Investing - Help with Personal Investments
Topic: Need some direction: 5K payout in July....towards loans or Roth?
Replies: 18
Views: 975

Re: Need some direction: 5K payout in July....towards loans or Roth?

I hate debt, and would suggest you pay off debt with all of the $5k. That would drive me nuts to have that many little bills. You can do the Dave Ramsey smallest to largest balance (which means you would pay off $682, $2066 and $1981), which also happen to be two of the higher interest rates. Keep p...
by runner540
Sun Jun 03, 2018 7:18 am
Forum: Personal Consumer Issues
Topic: Need advice on 1st international vacation
Replies: 106
Views: 6149

Re: Need advice on 1st international vacation

Since it will be your first time abroad and you speak only English, start with the UK: England, Ireland, Scotland. And flight times aren't bad from the East Coast. Then you can move the more advanced levels of non-English speaking countries. Thanks, this is what I have been thinking too. I'm not on...
by runner540
Sat Jun 02, 2018 6:21 pm
Forum: Personal Consumer Issues
Topic: Is our monthly Personal money out of line?
Replies: 74
Views: 7582

Re: Is our monthly Personal money out of line?

Fellow BH's: I'm curious what people allocate in their monthly budget for personal money. My wife and I take home about $13,500 a month on average (not including a yearly bonus in March). I set aside $500 in our budget spreadsheet for me (this also covers misc trips to Home Depot and the like). I h...
by runner540
Sat Jun 02, 2018 3:37 pm
Forum: Personal Consumer Issues
Topic: Need advice on 1st international vacation
Replies: 106
Views: 6149

Re: Need advice on 1st international vacation

Since it will be your first time abroad and you speak only English, start with the UK: England, Ireland, Scotland. And flight times aren't bad from the East Coast. Then you can move the more advanced levels of non-English speaking countries.
by runner540
Sat Jun 02, 2018 1:20 am
Forum: Personal Finance (Not Investing)
Topic: Just bought condo; crazy to take out HELOC to buy a parking spot?
Replies: 28
Views: 2869

Re: Just bought condo; crazy to take out HELOC to buy a parking spot?

$2850 mortgage with >$10k monthly salary doesn't sound crazy, but I would (1) stop all 403 contributions until you rebuild a healthy emergency fund, and (2) batten down the hatches on all discretionary expenses. It wasn't clear to me if you are both on the deed and Mortgage, amd whether you are marr...
by runner540
Thu May 31, 2018 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Beach condo vs mountain cabin investment property
Replies: 30
Views: 2588

Re: Beach condo vs mountain cabin investment property

Can you please clarify if you have any euity in your primary home?
Your retirement accounts, cash and mutual funds seem to be the same as your NW $1.2MM
by runner540
Wed May 30, 2018 3:41 am
Forum: Personal Consumer Issues
Topic: Advice on neighbor not keeping up his property...
Replies: 103
Views: 7516

Re: Advice on neighbor not keeping up his property...

Sounds like you bought in a transitional neighborhood. $500k house on HCOL sounds like you think you got a deal on the house. If you want to live in a perfectly manicured neighborhood, you need to spend more. Can't have it all.
by runner540
Tue May 29, 2018 1:18 am
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13622

Re: Renting vs Owning Your Home

To be fair, this insurance discussion is still not comparing apples to apples. The renter buys rental insurance to cover her clothes, furniture and electronics (the contents in the rented space), while the homeowner is insuring the building as well as the contents. I think the contents are insured ...
by runner540
Mon May 28, 2018 10:11 am
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13622

Re: Renting vs Owning Your Home

I find this to be an interesting thread. I'd like to add New York City into the mix. I know earlier in the thread someone said that buying in NYC made a lot of sense. However, I've come to think it seems a little crazy, at least right now. However, I might look back and think that I was crazy not t...
by runner540
Mon May 28, 2018 8:14 am
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13622

Re: Renting vs Owning Your Home

You don't say much about valuation, but then you also say that you "ran numbers" for your family. Is there any relative price at which Someone should hesitate from buying? Here's an different kind of anecdote: rent is $1750/month (annual rent of $21k). Comparable unit sells for $375k. Property taxe...
by runner540
Sat May 26, 2018 6:18 pm
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13622

Re: Renting vs Owning Your Home

I started this post as a response to a specific rent vs buy thread, but decided to give it its own thread to allow for general discussion. Outside the Bogleheads community, many people feel that buying a house is the ticket to building wealth. Based on a few threads I've seen, it seems to me that m...
by runner540
Sat May 26, 2018 4:04 am
Forum: Personal Consumer Issues
Topic: I need advice on having 2 jobs.
Replies: 25
Views: 2910

Re: I need advice on having 2 jobs.

Take the Big 4 job and the pay cut, and quit your overnight, dead end job. This is not a close call: big 4 will give you way more growth potential inside and outside the firm. They (Big 4) very reasonably expects you to be available to travel for clients and training, and is not going to approve a s...
by runner540
Wed May 23, 2018 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Purchasing a house, downpayment vs. retirement and other considerations
Replies: 158
Views: 5882

Re: Purchasing a house, downpayment vs. retirement and other considerations

I also live in the Boston area, am about your age, with about your income, and am currently buying a condo, and just wanted to chime in with the chorus that your plan makes me shudder with dread. I have run similar numbers, and agree with others that you likely will not have enough when including a...
by runner540
Sat May 19, 2018 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Good time to buy a house or wait it out
Replies: 21
Views: 2076

Re: Good time to buy a house or wait it out

This isn’t about investing, since I don’t look at the purchase of a primary home in the same way as my investments, so I’m not necessarily trying to “time the market”, but I would like a consensus of would you buy now or rent for a year and wait the market out? I don’t want to wind up buying at the...
by runner540
Thu May 17, 2018 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Urgent: escrow situation in bay area
Replies: 50
Views: 3042

Re: Urgent: escrow situation in bay area

I think your mortgage is high for your salary, but you can make it work. I did something very similar to you back in 2010, with similar to lower salary than you. I have a slightly higher salary than you, and I will tell you that 960k mortgage, you are paying $5000 (or more) a month in P&I. You will...
by runner540
Thu May 17, 2018 7:35 am
Forum: Investing - Help with Personal Investments
Topic: Urgent: escrow situation in bay area
Replies: 50
Views: 3042

Re: Urgent: escrow situation in bay area

Here's what I see: you are going to double your housing cost AND quadruple your commute, all while signing up for a mortgage that is 4-5x your income. I would be really unhappy making those trades. What are you getting in return that is worth all that? Earnings at age 43: may be peak earnings, don't...
by runner540
Wed May 16, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Downsizing in 8 years. Buy now?
Replies: 18
Views: 1747

Re: Downsizing in 8 years. Buy now?

If this second house will be only a small part of your total portfolio, maybe do it. If you couldn't rent it, how long could you cover the payment? Those two reasons (rising interest rates and rising home prices) don't seem good enough to me. Besides, in 8 years you'll have a lot more equity in your...
by runner540
Mon May 14, 2018 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: What is the most deduction you can get with mortgage interest deduction for 2018?
Replies: 10
Views: 1927

Re: What is the most deduction you can get with mortgage interest deduction for 2018?

Keep in mind that SALT $10k includes the sales tax deduction now as well :( But sales, SALT and morgatage interest are part of itemized deductions right? So if there's more than >$24K if MFJ then it makes sense to take it, no? I'm trying to figure out what is the cap on mortgage interest from a ded...
by runner540
Sun May 13, 2018 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: New(ish) attending physicians in the Bay Area: Housing
Replies: 150
Views: 12626

Re: New(ish) attending physicians in the Bay Area: Housing

We’ve apparently entered some sort of vortex where things are very different. Perhaps it’s a bubble that will pop. I don’t normally bet on such things but, when two physicians can’t afford a home in the area, something absurd is happening. I’d save money and be ready to pounce when the right opport...
by runner540
Fri May 11, 2018 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: New Job - Use High Fee 401k With Match or Other?
Replies: 31
Views: 1375

Re: New Job - Use High Fee 401k With Match or Other?

That is very high (combined 2.2% ?). If she plans on working there a while, I would eventually discuss it with them. If she doesn't plan on working there a long time, then you could at least contribute to the match and roll it over when she moves. How about traditional IRA's? Kids on the way? You c...
by runner540
Fri May 11, 2018 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Housing "slow down"
Replies: 8
Views: 1958

Re: Housing "slow down"

Seems like every market is pricing in being the next Amazon HQ, and only one city can be. Here is a robust data analysis, updated monthly. http://www.aei.org/publication/mortgage-risk-index-release-of-january-2018-data/ You can listen to the researcher's call as well. Short story is that lenders are...