Search found 488 matches

by Sam1
Sun Feb 09, 2020 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a home first time - need sanity check
Replies: 16
Views: 2161

Re: Buying a home first time - need sanity check

I’d try to hold off one more year. I understand the desire to own your own home as you’re now a family. It sounds like you’re doing all the right things financially. For now, I’d stay put and have the second kid. Does your wife have any paid parental leave? That’s something to consider.

I think having young kids and both parents working is stressful. Which is why I wouldn’t take the added stress of home ownership while having a second child.

I’d try to get the downpayment fund up to 20 percent and max any retirement accounts you can. Can you do this staying one more year in your current apartment?
by Sam1
Sun Feb 09, 2020 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to consider quitting my job?
Replies: 128
Views: 16463

Re: Am I crazy to consider quitting my job?

The point made above about federal insurance is not to be overlooked! Does your spouse know about this?

The ability to buy federal insurance at age (54?) is a huge benefit and could be a big deal for your spouse if he ever wants to strike out on his own or retire early. Just go and read what some people pay for health insurance!

Make sure he is aware of this and what you’ll enjoy giving up. I know a few federal employees continuing to work for this benefit!
by Sam1
Sun Feb 09, 2020 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to consider quitting my job?
Replies: 128
Views: 16463

Re: Am I crazy to consider quitting my job?

My perspective: There is NOTHING more important than loving parents raising their children and teaching the family values that are important to the parents. That means if you can spend time with them showing you care, you value their activities by being there, you are there for the bumps and bruises of daily life, and you can still provide for their physical needs of food, shelter, and some fun social interaction - go for it. The memories and values you provide and teach to your children cannot be replaced by day care workers or baby sitters. My very best wishes for your family. I'm somewhat biased on this topic as my wife only worked for a couple of years when our kids were pre-k age. My wife being there for them was truly a blessing that...
by Sam1
Sun Feb 09, 2020 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to consider quitting my job?
Replies: 128
Views: 16463

Re: Am I crazy to consider quitting my job?

I left the workforce over two decades ago to be a stay-at-home parent. And I've never returned. Over the years, I've thought about returning to work occasionally--for about 30 seconds, but there is always something that needs to be done at home, and now I'm basically retirement age. For us, me leaving the workforce just really freed things up--we didn't have daycare, meals were made at home, yard maintenance, running errands, etc. were done during the day and it was just all around better than rushing here and there and everywhere. However, I never had a part-time, $80k a year job in my 30s. That would be hard to give up especially as you really like your job, and it offers benefits. There are some things you could do---limit the kids' act...
by Sam1
Sun Feb 09, 2020 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to consider quitting my job?
Replies: 128
Views: 16463

Re: Am I crazy to consider quitting my job?

My perspective: There is NOTHING more important than loving parents raising their children and teaching the family values that are important to the parents. That means if you can spend time with them showing you care, you value their activities by being there, you are there for the bumps and bruises of daily life, and you can still provide for their physical needs of food, shelter, and some fun social interaction - go for it. The memories and values you provide and teach to your children cannot be replaced by day care workers or baby sitters. My very best wishes for your family. I'm somewhat biased on this topic as my wife only worked for a couple of years when our kids were pre-k age. My wife being there for them was truly a blessing that...
by Sam1
Fri Feb 07, 2020 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: How to save BIG in a HCOLA
Replies: 64
Views: 6167

Re: How to save BIG in a HCOLA

Is your job close to the metro?

Northern Virginia is VERY expensive right now. Chances are your wife’s job will be in DC.

I’d consider renting a two bedroom in DC near the metro. Only have one car. Send your children to Wilson High School. That’s how you’ll save money.

If you want to live in northern Virginia you’ll need to live in an ugly house or have bad schools. The other option is to be house poor. It’s not a pretty suburb at all. You’ll be paying a lot of money to live in an ugly suburb.
by Sam1
Tue Feb 04, 2020 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

Thank you all for a very lively discussion :P I got exactly what I came here for which is a diversity of perspectives. The key takeaway for me is to lean towards buy for various reasons Sam1 and others covered but also to be patient and try to get a good deal as suggested by KlangFool. This range of perspectives will help me test extreme and potentially improbable scenarios such as 0% appreciation in housing but strong investment growth and vice versa. Thanks again and I will certainly keep you posted on where I end up. Good luck!! I agree not to overspend. Try not to let real estate agents push you to overspend. It can be easy to get excited about a house and consider making a “strong” (aka too high) of an offer on a house. At the same ti...
by Sam1
Mon Feb 03, 2020 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

I don’t understand why you’re convinced I’m spending MORE money to buy than to rent. A similar home in my neighbor will rent for $6-7k per month. My mortgage is $3,500. My take home pay is close to $20k per month not including bonuses or stock. I can easily afford to live in my home and invest heavily. Sam1, 1) Then, you should not argue against my point about buying the house when the PITI is lowered than renting. 2) Or, you bought this house long ago. Please explain what is your point? I am confused. KlangFool My point is that it makes sense for me to own my house since I want to live in a house like this and to rent a similar one would cost me significantly more money each year. It may also make sense for OP to buy for a similar reason ...
by Sam1
Mon Feb 03, 2020 8:26 am
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

Makes sense. I'll run your rule of thumb and I'll also use the NYT calc with 0% appreciation assumption It doesn’t make any sense to assume 0 percent appreciation. If you assume 0 percent home price appreciation then you should also choose around 1-2 percent stock market appreciation for the downpayment funds using the calculator. Both are extreme assumptions. Sam1, <<It doesn’t make any sense to assume 0 percent appreciation. >> How does this statement make any sense? It is very simple. If I can justify buying a house and making money with a 0% appreciation assumption, I got a great deal! I could only make more money if the house appreciated. And, it does not matter how long I plan to stay at this house. I make money from imputed rent eve...
by Sam1
Mon Feb 03, 2020 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

Makes sense. I'll run your rule of thumb and I'll also use the NYT calc with 0% appreciation assumption It doesn’t make any sense to assume 0 percent appreciation. If you assume 0 percent home price appreciation then you should also choose around 1-2 percent stock market appreciation for the downpayment funds using the calculator. Both are extreme assumptions. Sam1, <<It doesn’t make any sense to assume 0 percent appreciation. >> How does this statement make any sense? It is very simple. If I can justify buying a house and making money with a 0% appreciation assumption, I got a great deal! I could only make more money if the house appreciated. And, it does not matter how long I plan to stay at this house. I make money from imputed rent eve...
by Sam1
Sun Feb 02, 2020 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

Also have you faced rent increases frequently? Many people on here who rent seem to rarely face rent increases. You may be in that category. I always had landlords increasing my rent! It really added up over the years. I love having a fixed mortgage payment. Maybe you could look at renting a place in a similar neighbor as a better comparison? There are rowhouses for rent although a lot harder to find and not as good of a deal usually. The few rentals I’ve seen have been $7-8k per month or more. That's what drove me to consider buying. Rent increases 7-10% year on year and I negotiate down to 5-7% but that's still 5-7% yoy increases. Also the minute you go to 3 bedrooms then the supply of apartments becomes extremely tight and you get force...
by Sam1
Sun Feb 02, 2020 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

That calculator is useless because you can assume an appreciation of X% to justify buying any house. Please note that my rule of thumb assumes 0% appreciation. The purchase decision is purely based on imputed rent. Makes sense. I'll run your rule of thumb and I'll also use the NYT calc with 0% appreciation assumption It doesn’t make any sense to assume 0 percent appreciation. If you assume 0 percent home price appreciation then you should also choose around 1-2 percent stock market appreciation for the downpayment funds using the calculator. Both are extreme assumptions. Sam1, <<It doesn’t make any sense to assume 0 percent appreciation. >> How does this statement make any sense? It is very simple. If I can justify buying a house and makin...
by Sam1
Sun Feb 02, 2020 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

It doesn’t make any sense to assume 0 percent appreciation. Especially if you plan on staying in a home for say, 20 years. If you assume 0 percent home price appreciation then you should also choose around 1-2 percent stock market appreciation for the downpayment funds using the calculator. Both are extreme assumptions. True. I'll be running the numbers with various assumptions to cover extremes and average to get a sense of the range. I actually think you’re focusing on the wrong thing. I get this is a financial board. We are all here (I think) because we want to invest in index funds. The problem is that assumptions are assumptions. You have no idea what will happen to the economy, housing prices, etc. Everything is a huge unknown. I’d f...
by Sam1
Sun Feb 02, 2020 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

You must care a lot about bathrooms. Going from 1,000 square feet to almost 3,000 square feet (2,000 in the non rental portion) would be a huge upgrade for most people! There is going to be something kind of wrong with every home at this price point in DC. Just like there is something wrong with your current rental (lack of space). I wouldn't say we care a lot about bathrooms. I'd say we found another place that is 3bd/2ba for the same price. So I'd pick that over that one specific listing. The issue I'm struggling with is renting for $5,000 vs buying for $1.0-1.2M I dunno. 5k is a lot in rent. I’d try to find a less expensive place to rent but realize that’s hard to do. It’s just as much lifestyle to me as it is financial. I bought a plac...
by Sam1
Sun Feb 02, 2020 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

FriedFire wrote: Sun Feb 02, 2020 9:43 pm
KlangFool wrote: Sun Feb 02, 2020 9:39 pm That calculator is useless because you can assume an appreciation of X% to justify buying any house. Please note that my rule of thumb assumes 0% appreciation. The purchase decision is purely based on imputed rent.
Makes sense. I'll run your rule of thumb and I'll also use the NYT calc with 0% appreciation assumption
It doesn’t make any sense to assume 0 percent appreciation. Especially if you plan on staying in a home for say, 20 years.

If you assume 0 percent home price appreciation then you should also choose around 1-2 percent stock market appreciation for the downpayment funds using the calculator. Both are extreme assumptions.
by Sam1
Sun Feb 02, 2020 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

Keep renting. The math is simple. It is cheaper to rent versus buying by a mile. KlangFool Is it cheaper to rent when the rent is $5k versus a $1.2 million dollar home where they can rent out the basement unit? I’m not so sure. Seems to me the monthly payment would be pretty similar and they’d be paying down principle every month. Also depends on if this is a purely financial decision or not. It would probably be cheaper for most people to rent, but they don’t. It’s also cheaper for me to lease a car but I don’t think it’s cheaper in the long run. Sam1, << Seems to me the monthly payment would be pretty similar >> That means it is a lousy deal. I will only buy when the PITI is 20% to 30% lowered than renting. In this case, if the rent is $...
by Sam1
Sun Feb 02, 2020 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

I’d consider an area like Glover Park. You’ll be able to find a decent home for $1.2 million with a lot more space than an apartment that rents for $5k per month. One spouse already works from home. The other should be able to deal with a bus commute to Dupont. Other options are biking or driving. I assume you have one car. My point is that you shouldn’t have to be right off the red line. There’s a reason most DC residents ditch condo living after kids come along to once they are getting older... it’s relatively easy to find a decent house with space for kids in this area if you have the money. Funny you mentioned Glover Park. We just looked at a house for $1.2M today. It was a great looking house but had 1 bathroom shared by 4 bedrooms wh...
by Sam1
Sun Feb 02, 2020 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

They can spend a million and find a home within WALKING distance of DuPont that offers way more space than they have now. Like this. https://www.redfin.com/DC/Washington/2449-Tunlaw-Rd-NW-20007/home/9933448?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link Funny. We looked at that one today. Great house but 1 bathroom shared by 4 bedrooms. We'd have to pour more money into it to add a bathroom. You have to compromise on real estate if you want to live in DC in a walkable area with good schools on a $350k HHI. You have to decide what you value. If it’s space and bathrooms then consider an area like Rockville. If you can’t imagine buying the perfect place (space, location, bathroom...
by Sam1
Sun Feb 02, 2020 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

FriedFire wrote: Sun Feb 02, 2020 9:27 pm
Sam1 wrote: Sun Feb 02, 2020 9:21 pm
They can spend a million and find a home within WALKING distance of DuPont that offers way more space than they have now. Like this.

https://www.redfin.com/DC/Washington/24 ... ntent=link
Funny. We looked at that one today. Great house but 1 bathroom shared by 4 bedrooms. We'd have to pour more money into it to add a bathroom.
How many bathrooms do you have now? In your rental?
by Sam1
Sun Feb 02, 2020 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

If Bethesda is the furthest you'll go then yeah you probably won't see any price relief, and as Klang says it probably makes sense to keep renting. If you're willing to go out to Rockville or beyond it may be a different story as prices drop. Rockville!!?!?!?! Such an extreme suggestion. They can spend a million and find a home within WALKING distance of DuPont that offers way more space than they have now. Like this. https://www.redfin.com/DC/Washington/2449-Tunlaw-Rd-NW-20007/home/9933448?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link Not a million... $1,195,000. There's a difference :happy Sure but they can rent out the bottom unit. It’s equivalent mortgage of a million dol...
by Sam1
Sun Feb 02, 2020 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

FriedFire wrote: Sun Feb 02, 2020 9:15 pm We have looked into Bethesda as the farthest we would go. We'd like to stay closer to the city as we enjoy the walkability and lifestyle. We are blessed to be able to afford our rent and living in a HCOL area. my main dilemma is whether it's "better" to rent or buy as both options are doable.
I ultimately bought because I want more space and I don’t want to live in a condo with kids. I realize this is fine for many, but I personally want more space and privacy. I can own a home and still invest a decent amount, so I choose to own a home. If owning a home meant I couldn’t invest much, then I would probably rent.
by Sam1
Sun Feb 02, 2020 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

ARoseByAnyOtherName wrote: Sun Feb 02, 2020 9:18 pm If Bethesda is the furthest you'll go then yeah you probably won't see any price relief, and as Klang says it probably makes sense to keep renting.

If you're willing to go out to Rockville or beyond it may be a different story as prices drop.
Rockville!!?!?!?! Such an extreme suggestion.

They can spend a million and find a home within WALKING distance of DuPont that offers way more space than they have now. Like this.

https://www.redfin.com/DC/Washington/24 ... ntent=link
by Sam1
Sun Feb 02, 2020 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

KlangFool wrote: Sun Feb 02, 2020 9:15 pm Keep renting. The math is simple. It is cheaper to rent versus buying by a mile.

KlangFool
Is it cheaper to rent when the rent is $5k versus a $1.2 million dollar home where they can rent out the basement unit? I’m not so sure. Seems to me the monthly payment would be pretty similar and they’d be paying down principle every month.

Also depends on if this is a purely financial decision or not. It would probably be cheaper for most people to rent, but they don’t. It’s also cheaper for me to lease a car but I don’t think it’s cheaper in the long run.
by Sam1
Sun Feb 02, 2020 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Struggling with deciding whether to buy a house in DC or keep on renting
Replies: 67
Views: 4276

Re: Struggling with deciding whether to buy a house in DC or keep on renting

I’d consider an area like Glover Park. You’ll be able to find a decent home for $1.2 million with a lot more space than an apartment that rents for $5k per month.

One spouse already works from home. The other should be able to deal with a bus commute to Dupont. Other options are biking or driving. I assume you have one car. My point is that you shouldn’t have to be right off the red line.

There’s a reason most DC residents ditch condo living after kids come along to once they are getting older... it’s relatively easy to find a decent house with space for kids in this area if you have the money.
by Sam1
Wed Jan 08, 2020 5:17 am
Forum: Personal Finance (Not Investing)
Topic: Living in a HCOL and making a middle class salary is a struggle
Replies: 340
Views: 27023

Re: Living in a HCOL and making a middle class salary is a struggle

AlphaLess wrote: Wed Jan 08, 2020 12:36 am
batpot wrote: Tue Jan 07, 2020 3:27 pm How much of a "fixer upper" are you talking? It's within your budget.
Also, have you looked at costs of day care?

And I hate to break it to you, but $230k is far from middle class.
Median household income in the US is around $60k.
But not in Westchester county.
It’s $94k.
by Sam1
Wed Jan 08, 2020 5:16 am
Forum: Personal Finance (Not Investing)
Topic: Living in a HCOL and making a middle class salary is a struggle
Replies: 340
Views: 27023

Re: Living in a HCOL and making a middle class salary is a struggle

musicmom wrote: Tue Jan 07, 2020 10:09 pm Northern NJ is lovely, not cheap, but not outrageously expensive.

We never made more than $120K yearly.
We sold a family home approx 2000 sq feet on the NJ Transit direct line to NYC last year for $420K.
Walkable diverse small city, great schools, shopping, restaurants, taxes 10K.

Many in our neighborhood walked to the Midtown Direct train to the city.

Just a thought.
The property taxes are very high. My family has a $700k house with $25k in property taxes. I realize OP isn’t going to buy a $700k house but that gives you an idea. $10k in taxes is a lot for a $420k house.
by Sam1
Wed Jan 08, 2020 5:14 am
Forum: Personal Finance (Not Investing)
Topic: Living in a HCOL and making a middle class salary is a struggle
Replies: 340
Views: 27023

Re: Living in a HCOL and making a middle class salary is a struggle

sailaway wrote: Tue Jan 07, 2020 9:59 pm
Sam1 wrote: Tue Jan 07, 2020 9:15 pm
BarbBrooklyn wrote: Tue Jan 07, 2020 8:24 pm
sailaway wrote: Tue Jan 07, 2020 7:59 pm
Sam1 wrote: Tue Jan 07, 2020 7:28 pm

I just looked and there aren’t any house under $350k in ALL of Westchester county. Really not one.
Zillow says otherwise, by pages.
Just for starts, Elmsford, NY 10523. Gave me a good start!
That’s not technically Westchester which is why Redfin doesn’t pick it up for me.
That's not what the geographers say.

You have a very specific idea of what you want that is eliminating hundreds of options. That is on you, not your salary.
That’s on Redfin. Not me.
by Sam1
Tue Jan 07, 2020 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Living in a HCOL and making a middle class salary is a struggle
Replies: 340
Views: 27023

Re: Living in a HCOL and making a middle class salary is a struggle

Tdubs wrote: Tue Jan 07, 2020 8:04 pm Used to ask my students whether their families were poor, middle class, or wealthy. In 15 years, maybe three said poor. One said wealthy. Most were from the Seattle suburbs.

They always looked dumbfounded when I told them what US median household income was, and what put you in the top 5 percent.
Sure but it’s kind of misleading when you start taking into account the cost of living. Someone in the top 50% in Birmingham is probably living a similar lifestyle as someone in the top 5 % in Seattle.
by Sam1
Tue Jan 07, 2020 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Living in a HCOL and making a middle class salary is a struggle
Replies: 340
Views: 27023

Re: Living in a HCOL and making a middle class salary is a struggle

ThatGuy wrote: Tue Jan 07, 2020 7:43 pm
WS1 wrote: Tue Jan 07, 2020 6:40 pm I don’t think median income is helpful as the OP is not competing against the 62 year old couple with a paid off home. OP is competing against other families looking for seats in decent school districts and saving for college at today’s prices.
Middle class only includes dual earner families? News to me, I guess all of those old guys are a part of the grey class.
Those old guys weren’t paying monthly childcare payments that were the same or more than their mortgage.
by Sam1
Tue Jan 07, 2020 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Living in a HCOL and making a middle class salary is a struggle
Replies: 340
Views: 27023

Re: Living in a HCOL and making a middle class salary is a struggle

OP, if you want some real sticker shock, compare your median house value of $528,300 in Westchester with the median in San Francisco at $1,009,500 and a median household income of $104,552. If the median is $528k, then that almost certainly means that there will be some nice homes still available for $300k-$350k. The OP could save a big chunk of household income, maybe as much as 50%, and still easily afford a home in that range. We've bought three homes, and we never spent more than just over double our household income on any of them, which was the standard for 'easily affordable' put forward by Thomas Stanley in The Millionaire Mind . It worked out very well for us, and we should be mortgage-free in about two months and putting 50% of o...
by Sam1
Tue Jan 07, 2020 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Living in a HCOL and making a middle class salary is a struggle
Replies: 340
Views: 27023

Re: Living in a HCOL and making a middle class salary is a struggle

OP, if you want some real sticker shock, compare your median house value of $528,300 in Westchester with the median in San Francisco at $1,009,500 and a median household income of $104,552. If the median is $528k, then that almost certainly means that there will be some nice homes still available for $300k-$350k. The OP could save a big chunk of household income, maybe as much as 50%, and still easily afford a home in that range. We've bought three homes, and we never spent more than just over double our household income on any of them, which was the standard for 'easily affordable' put forward by Thomas Stanley in The Millionaire Mind . It worked out very well for us, and we should be mortgage-free in about two months and putting 50% of o...
by Sam1
Tue Jan 07, 2020 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: Living in a HCOL and making a middle class salary is a struggle
Replies: 340
Views: 27023

Re: Living in a HCOL and making a middle class salary is a struggle

OP, if you want some real sticker shock, compare your median house value of $528,300 in Westchester with the median in San Francisco at $1,009,500 and a median household income of $104,552. If the median is $528k, then that almost certainly means that there will be some nice homes still available for $300k-$350k. The OP could save a big chunk of household income, maybe as much as 50%, and still easily afford a home in that range. We've bought three homes, and we never spent more than just over double our household income on any of them, which was the standard for 'easily affordable' put forward by Thomas Stanley in The Millionaire Mind . It worked out very well for us, and we should be mortgage-free in about two months and putting 50% of o...
by Sam1
Tue Jan 07, 2020 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Living in a HCOL and making a middle class salary is a struggle
Replies: 340
Views: 27023

Re: Living in a HCOL and making a middle class salary is a struggle

OP, if you want some real sticker shock, compare your median house value of $528,300 in Westchester with the median in San Francisco at $1,009,500 and a median household income of $104,552. If the median is $528k, then that almost certainly means that there will be some nice homes still available for $300k-$350k. The OP could save a big chunk of household income, maybe as much as 50%, and still easily afford a home in that range. We've bought three homes, and we never spent more than just over double our household income on any of them, which was the standard for 'easily affordable' put forward by Thomas Stanley in The Millionaire Mind . It worked out very well for us, and we should be mortgage-free in about two months and putting 50% of o...
by Sam1
Sun Dec 29, 2019 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: SECURE Act - 529 Plans
Replies: 46
Views: 6854

Re: SECURE Act - 529 Plans

Related, I get concerned that changes could be coming for inheriting 529 plans tax free. Just like what just happened for IRAs.

We’ve been told not to worry about overfunding a 529 because it can go to the next generation. This is a lot of money to pass on when who knows if my child will even have children. Now I get concerned that the tax rules could change. Is this a legitimate concern?

We don’t have access to in state schools. So we are talking at least 300k per kid in 529s.
by Sam1
Sat Dec 28, 2019 3:11 pm
Forum: Investing - Theory, News & General
Topic: Investing at an early age vs late theory
Replies: 60
Views: 6470

Re: Investing at an early age vs late theory

I’ve seen many charts about how investing early from age 25-35 will wind up with more than someone who invests the same amount a year from 35-60. Is this entirely true given inflation? For the above example chart, 25 year old the person has invested the money for 10 more years than the 35 year old. Plus that $600k with inflation is approximately worth $400k 10 years ago when the 35 year old turned 60. But I suppose the real benefit is the 25 year old only invested money for 10 years compared to 25 years for the other person. But the 25 year old also had to keep the money invested for an extra 10 years. What do you think? I’m all for saving early but this argument never made sense to me. I suppose it is an oversimplification to convince peo...
by Sam1
Sat Dec 28, 2019 3:06 pm
Forum: Investing - Theory, News & General
Topic: Investing at an early age vs late theory
Replies: 60
Views: 6470

Re: Investing at an early age vs late theory

I agree with what you’re saying. I didn’t save enough early on in my career. I took a lot of vacations, lived in (too nice of) apartments, enjoyed overpriced drinks, wore expensive clothes etc. I wouldn’t take it back. Now I earn plenty of money and can sock away hundreds of thousands a year. I’m sure I’d regret my early financial habits a lot more if I weren’t making the money I am today. A similar concept is how there is so much focus on saving/investing leading up to retirement but not nearly as much on how much you can save by delaying retirement. Delaying retirement by one year isn’t just one year more of saving but it’s also one more year NOT taking money out of savings/investments. And one more year of working. Blech. An incredibly ...
by Sam1
Sat Dec 28, 2019 3:03 pm
Forum: Investing - Theory, News & General
Topic: Investing at an early age vs late theory
Replies: 60
Views: 6470

Re: Investing at an early age vs late theory

I agree with what you’re saying. I didn’t save enough early on in my career. I took a lot of vacations, lived in (too nice of) apartments, enjoyed overpriced drinks, wore expensive clothes etc. I wouldn’t take it back. Now I earn plenty of money and can sock away hundreds of thousands a year. I’m sure I’d regret my early financial habits a lot more if I weren’t making the money I am today. A similar concept is how there is so much focus on saving/investing leading up to retirement but not nearly as much on how much you can save by delaying retirement. Delaying retirement by one year isn’t just one year more of saving but it’s also one more year NOT taking money out of savings/investments. And one more year of working. Blech. While I genera...
by Sam1
Sat Dec 28, 2019 3:00 pm
Forum: Investing - Theory, News & General
Topic: Investing at an early age vs late theory
Replies: 60
Views: 6470

Re: Investing at an early age vs late theory

willthrill81 wrote: Sat Dec 28, 2019 2:53 pm To be honest, this sounds like a poor argument to delay saving.

Invest early and often. I have learned this the hard way. Had we started saving in earnest when we should have, then I would be able to retire several years earlier than I probably will.
Have you really done the math though?

When I graduated college I made 40k. At most I could have saved let’s say, 20k. That 20k would have hurt to save. No vacations, all used clothing etc. I would have had to live off around $1.5k a month, including rent, to save $20k that year.

Now I have a HHI of close to 500k. We can easily save 200k. I don’t have to not go on vacation or only wear used clothing. I still have 20+ years to retirement.
by Sam1
Sat Dec 28, 2019 2:56 pm
Forum: Investing - Theory, News & General
Topic: Investing at an early age vs late theory
Replies: 60
Views: 6470

Re: Investing at an early age vs late theory

I agree with what you’re saying.

I didn’t save enough early on in my career. I took a lot of vacations, lived in (too nice of) apartments, enjoyed overpriced drinks, wore expensive clothes etc. I wouldn’t take it back.

Now I earn plenty of money and can sock away hundreds of thousands a year. I’m sure I’d regret my early financial habits a lot more if I weren’t making the money I am today.

A similar concept is how there is so much focus on saving/investing leading up to retirement but not nearly as much on how much you can save by delaying retirement. Delaying retirement by one year isn’t just one year more of saving but it’s also one more year NOT taking money out of savings/investments.
by Sam1
Thu Dec 26, 2019 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Wages Incorrectly Garnished
Replies: 10
Views: 1751

Re: Wages Incorrectly Garnished

You mention concern that this could show up on your credit report. I cannot imagine any way that would happen, if that's any reassurance. I was incorrectly garnished and it DID show up on my credit report even though my credit monitoring service said it would not. Luckily it was easy to solve by having the state write the credit bureau a letter. I was surprised how easy it was actually. Mine was also a payroll issue. My payroll department entered the incorrect state and a state thought I had lived there. I woke up one day with a large amount of money taken from my bank account by this state. It was a scary experience. OP, I’d make sure to save any correspondence by making electronic copies. I think what you are describing is a completely d...
by Sam1
Fri Dec 13, 2019 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Wages Incorrectly Garnished
Replies: 10
Views: 1751

Re: Wages Incorrectly Garnished

Teague wrote: Fri Dec 13, 2019 3:24 pm You mention concern that this could show up on your credit report. I cannot imagine any way that would happen, if that's any reassurance.
I was incorrectly garnished and it DID show up on my credit report even though my credit monitoring service said it would not. Luckily it was easy to solve by having the state write the credit bureau a letter. I was surprised how easy it was actually.

Mine was also a payroll issue. My payroll department entered the incorrect state and a state thought I had lived there. I woke up one day with a large amount of money taken from my bank account by this state. It was a scary experience.

OP, I’d make sure to save any correspondence by making electronic copies.
by Sam1
Fri Dec 13, 2019 9:38 am
Forum: Investing - Theory, News & General
Topic: Retiring at 24 - Extreme FIRE is it possible?
Replies: 158
Views: 15507

Re: Retiring at 24 - Extreme FIRE is it possible?

BH forum seems to have definite antipathy towards the FIRE crowd in general. BH don't like FIRE individual who assume $30K as annual expenses and BH don't like $350K as annual expense either. They both are equally maligned. Seems pretty ironic to me. I really think that the age really bothers some people. When people who are 60 talk about retiring by down-shifting into consulting, reducing hours, or having 4-12 rental properties in addition to a fully funded retirement, nobody bats an eye. Semi-retirement and full retirement are both legitimately grouped under the heading of retired. But if the same financial situation and plan are being executed by someone who is under 40, then... KNIVES OUT! ----------- As for the choice of locking in a ...
by Sam1
Fri Dec 13, 2019 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Need help. Daycare vs Nanny.
Replies: 86
Views: 6007

Re: Need help. Daycare vs Nanny.

You really think your 6 month old is benefiting from a STEM curriculum at daycare? Sorry but that is just crazy. What is the ratio at the current daycare?

The most important thing right now for your baby is someone talking to him/her frequently for language development. At a daycare, there are more babies/toddlers than adults so this isn’t happening as frequently as with a nanny. I’d hire a nanny who will talk to your child and give them individual attention.
by Sam1
Fri Dec 13, 2019 9:12 am
Forum: Personal Consumer Issues
Topic: New baby: Should I purchase new car? Tesla?
Replies: 39
Views: 3569

Re: New baby: Should I purchase new car? Tesla?

I am unfamiliar with a Mitsu. But aren’t there a lot of cars in between a beater and a Tesla?!?
by Sam1
Fri Dec 13, 2019 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Need help. Daycare vs Nanny.
Replies: 86
Views: 6007

Re: Need help. Daycare vs Nanny.

Children that young don’t need socialization. They don’t even play with others until 2.5-3 years old. They play independently.

I would strongly encourage you to consider one-on-one care for your child. Many parents can’t afford to do so and don’t have this option. You do.
by Sam1
Tue Dec 10, 2019 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: 16 Weeks Paternity Leave
Replies: 124
Views: 10487

Re: 16 Weeks Paternity Leave

These benefits are great for the person having the kid. The rest of the team suffers. Companies have no plan to replace a full person for 12-16 weeks. My manager has a team of 4 people. Each has a full work load. A co-worker will be taking 14 weeks of paternity leave this week starting Friday. It is great for them. I asked if we could hire a temp for the 14 weeks. That isn't an option. I have to do my job and their job for 14 weeks. I get no pay bump. I will not be able to take vacation between now and March. These benefits are great on paper. They play well with PR and Marketing. They probably attract younger employees. They can really deliver a blow to the "team". I actually considered changing roles when the paternity leave wa...
by Sam1
Mon Dec 09, 2019 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: 16 Weeks Paternity Leave
Replies: 124
Views: 10487

Re: 16 Weeks Paternity Leave

The only way for both men and women to have an easier time taking all of their entitled leave is for men to take their entitled leave. My wife and I each took 16 weeks of parental leave(mostly sequentially) and book-ended the leave with vacation weeks as well. I encourage you to take your full leave and also encourage you to push other fathers-to-be at your company to take all of their leave. I'd suggest taking the time when your child is older than 3 months. At the point they are much more interactive and fun to be around. There is no best time in a career to take a 16 weeks of leave(whatever the reason). It might slow down your progression for a year but your career will recover. However, you can't recover that potential time with your c...
by Sam1
Mon Dec 09, 2019 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: 16 Weeks Paternity Leave
Replies: 124
Views: 10487

Re: 16 Weeks Paternity Leave

JGoneRiding wrote: Mon Dec 09, 2019 3:14 pm Frankly I think you will be bored unless there are a lot of projects around the house or other children. I most likely would have shot my husband that much togetherness

I was seriously bored with the first after 6 weeks and I was doing all the nursing and care.

It's a pity you can't split it. I would say take 4 weeks then 12 more when your wife goes back
Yes I would try to split it.
by Sam1
Mon Dec 09, 2019 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: 16 Weeks Paternity Leave
Replies: 124
Views: 10487

Re: 16 Weeks Paternity Leave

dm200 wrote: Mon Dec 09, 2019 3:01 pm
I don't know. 16 weeks of vacation for a young person sounds - yes this is going to sound criticizing or insulting and I apologize - indulgent.
Caring for a baby (especially being a first time father) full time every business day hardly seems like a "vacation" to me! I expect that this time will also be very "enlightening" as well.
I don’t think someone who refers to paternity leave as a vacation is going to get it.
by Sam1
Mon Dec 09, 2019 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: 16 Weeks Paternity Leave
Replies: 124
Views: 10487

Re: 16 Weeks Paternity Leave

Thanks for the replies. If it adds anything to the conversation, I'd plan on taking 2 weeks vacation when the baby is born and starting paternity leave about 2 months after that. My wife will get the first 10 weeks off. I'll have 35 vacation days for 2020 so I'd still be able take a week off here and there. So, you do not need to start and take this paternity leave immediately or very shortly after the baby is born? Sixteen weeks fully paid paternity leave seems very, very generous indeed! Between your wife taking ten weeks and your taking up to 16 weeks - you will have "saved" many months of childcare - which tends to be more expensive for infants. I might, informally, try to chat with coworkers who have taken paternity or mater...