Search found 2187 matches

by hand
Fri Mar 15, 2024 4:17 pm
Forum: Personal Consumer Issues
Topic: Navigating Speakers for in home theater
Replies: 41
Views: 2653

Re: Navigating Speakers for in home theater

What was disappointing about it? This is one thing I don't understand is HDCP. What moved in your specific case and what was the result that you are dissatisfied with? AVR Supports HDCP 2.1 while the new Sony Bravia OLED introduced into the system supports HDCP 2.2 and 4k HDR. Frustratingly this means that inputs connected directly to the AVR will not pass 4K HDR to the TV through the AVR. Full resolution now appears to require trashing a perfectly good AVR Note: While there is theoretically a workaround of connecting inputs directly connecting inputs to the TV and using eARC to return audio to the AVR, this does not work for me in practice due to 1) hassle of connecting multiple devices to a remote TV 2) known issues with Sony's eArc impl...
by hand
Fri Mar 15, 2024 1:26 pm
Forum: Personal Consumer Issues
Topic: Navigating Speakers for in home theater
Replies: 41
Views: 2653

Re: Navigating Speakers for in home theater

A buyer today looking at new or lightly used receivers in the middle of the market (which I'm supposing for the sake of discussion is $1000+) is not going to have trouble finding models that can push a clean 100+ W per channel in 9.4. I would personally be willing to wager it will be a while before it is common to have more than 9 channels, much less before viewers are outright lamenting, "I really feel like we miss out on a sense of immersion and important directional cues with sound only coming from 9 different directions at once." And of course, LoveTheBogle specifically said their baseline plan is 5.1.2 or 5.2.2. Agree very much on the audio side, but personally pretty bitter at how quickly my 4k ready AVR was obsoleted by ha...
by hand
Fri Mar 15, 2024 11:21 am
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 163
Views: 15080

Re: Great news! No more agent commission

Should I postpone to sell my house to save 5-6% commission based on this news? There is still work related to buying, selling and transaction mechanics that will need to happen and will need to be compensated (unless you go fully DIY). It seems likely that total commissions will be reduced over time, but not completely eliminated, so you're talking about a <5% savings on your specific sale which may not be worth the wait considering carrying costs and the value of selling into today's hot market. FYI: You can meaningfully negotiate the listing commission today - if your house is > $500k and you don't require any special services, there are plenty of agents who are willing and able to do a good job taking pictures, listing in MLS and helpin...
by hand
Fri Mar 15, 2024 7:28 am
Forum: Personal Consumer Issues
Topic: Navigating Speakers for in home theater
Replies: 41
Views: 2653

Re: Navigating Speakers for in home theater

If walls are open, I'd look at Triad for their quality (and easy to install) in-wall offerings especially for surround / in-celling. Philharmonic audio has a newer line of Home Theater focused speakers if you're not planning in-wall - pricy, but high value. I'd disagree with the notion of expensive speakers = expensive AVR. Your speakers will last for years while AVRs are often quickly obsoleted by technology advances. Accessories4Less is a well known discounter with open box / deep discount AVRs; my approach is to buy the minimal viable product to meet your needs today and leave budget to upgrade in a couple of years as needs / technology changes. A fundamental decision is whether you want to rely on your AVR for amplification or invest in...
by hand
Tue Mar 12, 2024 11:57 am
Forum: Personal Consumer Issues
Topic: Dual majors and non big 50 colleges
Replies: 111
Views: 7178

Re: Dual majors and non big 50 colleges

What is the benefit of a double major (especially for someone who is not a top 5% student)?

From a career progression and earnings perspective, most prospective engineers I've met would get get better returns from an increased focus on communication, social skills and teamwork (parties, friends, dating and team sports) than from even more highly specialized domain knowledge that will likely not even be related to the areas future employers care about.

Many on this board struggle with determining what to retire to - it would be a shame to let class time interfere with exposure to something that could end up as a lifelong passion.
by hand
Tue Mar 12, 2024 8:29 am
Forum: Personal Investments
Topic: Career ending, getting fired. Can we FIRE ?
Replies: 149
Views: 21805

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

Not advocating this path, but a different dynamic to consider:

A joint annuity for a 47 and 52 year old funded with $2.4M appears to pay roughly $10k / month - roughly spot on with the desired $120k / yr.

There is of course a significant inflation risk to be considered.

Conceptually, if I could get comfortable aligning my core expenses with annuity + Social Security, I might be more willing to cut it a little thinner than 25x expenses for the discretionary expenses, especially if my longevity risk was lower than average and I had $2M of property I could likely tap down the line.
by hand
Mon Mar 11, 2024 3:02 pm
Forum: Personal Investments
Topic: Career ending, getting fired. Can we FIRE ?
Replies: 149
Views: 21805

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

Expenses : Mandatory expenses were $89k : $9k cars (insurance, registration, gas, 2 EV charger replacements, and one major repair) $3k financial services (things like Costco, employer benefits like life insurance, credit card AF, umbrella liability) $9.5k Groceries (mainly Costco) $13.5k health ($6.5K of premiums through employer, rest is copays/OTC/one exercise bike) $43.5k home ($15k of property tax, $4k insurance, the rest is mainly maintenance and some solar) $2.5k pets (vet, cat food/litter) $7k utilities (I count cable internet & smartphones as part of this) $1k clothing & entertainment Likely not top priority, but seems like there may be some opportunities here categorized as "mandatory" that could be adjusted post...
by hand
Mon Mar 11, 2024 2:00 pm
Forum: Personal Investments
Topic: Sharing why we went with Vanguard PAS
Replies: 69
Views: 6694

Re: Sharing why we went with Vanguard PAS

nedsaid wrote: Sat Mar 09, 2024 11:02 pm I went to investor.com to get a review of Vanguard Personal Advisor Service and found that the average client balance there is $377,050. So the original poster's account balance of about $4 million is more than 10X the average account size at VPAS, so their account will get a lot of attention from Vanguard. Altogether, Vanguard PAS manages $299.2 Billion and that is more assets than some mutual fund companies!
Not sure how much attention $4M in assets really gets in a pool of $299B, especially when only worth 4M * 0.3% = $1k / yr.
by hand
Mon Mar 11, 2024 10:59 am
Forum: Personal Consumer Issues
Topic: Electric wiring along/through basement floor slab?
Replies: 23
Views: 1718

Re: Electric wiring along/through basement floor slab?

#5 Suspended outlet (with or without a retractable reel)? (industrial look, but cheaper with no tripping risk)
#6 install a slightly raised flooring system that allows power underneath? (saves the concrete work)

To me this is a cost vs risk vs duration question - for six weeks I'd use the extension cord, six months a hard cover and six years I'd do it right if I had the money and could find the contractors.
by hand
Fri Mar 08, 2024 7:53 am
Forum: Personal Consumer Issues
Topic: Drop Homeowner Ins- Self Insure
Replies: 63
Views: 4443

Re: Drop Homeowner Ins- Self Insure

There is no mortgage and I would value the lot without the house around $125k. So basically I’m insuring a total loss of $500k plus old furniture and clothes for my new premium of $360/month. There’s a fire station 1 mile from my house so even a worst case scenario damage should be limited to a partial loss. Not sure I agree with your approach here - your liability is likely larger than the cost of the house. What about cost to clear debris from the site? Are there any additional costs due to toxic (burned / asbestos / lead / oil) debris? What about the cost of housing while the damaged house is being cleared and a new house rebuilt? Your house is likely valued lower because it is old (limited useful life remaining life in appliances and s...
by hand
Fri Mar 08, 2024 7:36 am
Forum: Personal Investments
Topic: 16 yr old - how can I best take on high risk?
Replies: 65
Views: 5236

Re: 16 yr old - how can I best take on high risk?

I have a 50 year time horizon so it is safe to say I am not at all worried about short-term risk. I would question the premise here: 1) Risk tolerance is not just about time horizon - actually losing the equivalent of multiple years worth of salary in a downturn feels very different in practice than in theory, and your reaction may be to reduce risk and lock in the losses 2) There is not an unlimited upside benefit to taking on more and more risk, you also increase the possibility of being completely wiped out 4) One of the best investors of all time Warren Buffett, with an investment time horizon of "forever", has been wildly successful making long term bets on good solid businesses, without taking on massive amount of risk. 5) ...
by hand
Mon Mar 04, 2024 8:01 am
Forum: Personal Consumer Issues
Topic: Tom Bihn briefcase worth the money? Looking for a quality, lightweight laptop briefcase.
Replies: 21
Views: 2406

Re: Tom Bihn briefcase worth the money? Looking for a quality, lightweight laptop briefcase.

SeattleLaw wrote: Sun Mar 03, 2024 3:32 pm
A friend raves about Tom Bihn, but they seem expensive for a such a simple nylon bag. ... Anyone have one? Does the quality justify the cost?
I've found Tom Bihn products to be extremely high quality ("bombproof") and very good value even if price point isn't the lowest.

Aeronaut 30 & 45 are my preferred work and leisure travel bags depending on whether the trip is 2-3 days or a week+

For a daily use item, I don't usually sweat the additional incremental cost to get the right thing.
by hand
Thu Feb 29, 2024 10:07 am
Forum: Personal Consumer Issues
Topic: Kitchen remodel
Replies: 14
Views: 1750

Re: Kitchen remodel

I'd be clear on whether you are undertaking a remodel (moving appliances, water, electrical) or a refresh - new cabinets and countertop in a similar configuration. A refresh is much quicker / easier / cheaper. I'd also be clear on whether you are doing this for yourself or for resale (or a combination of both) as your style and function decisions are much more constrained if for resale, and much more personal if you'll be there for the long term. I would happily GM replacing existing cabinets + new countertops myself as you seem to propose, but given the importance of the kitchen in daily life would value having a pro with deep relationships in the trades manage a full scale renovation to minimize downtime. Finally, while finishes are fun, ...
by hand
Thu Feb 29, 2024 5:39 am
Forum: Personal Finance (Not Investing)
Topic: New Construction Home: Cash buyer
Replies: 8
Views: 1376

Re: New Construction Home: Cash buyer

DartThrower wrote: Thu Feb 29, 2024 4:49 am I just want to make sure to get an inspector who is on my side.
That's really the rub - inspections are better than no inspections however most inspectors limit their liability to the cost of their inspection and their scope to what they can see. If they make a mistake, they're out a couple hundred dollars and you're potentially left with tens of thousands of dollars in damages to deal with.
by hand
Wed Feb 28, 2024 9:16 am
Forum: Personal Finance (Not Investing)
Topic: New Construction Home: Cash buyer
Replies: 8
Views: 1376

Re: New Construction Home: Cash buyer

Like car dealers, I understood many production builders hope to make money from their financing arms in addition to selling product. This would imply that a cash buyer may be less desirable rather than more desirable. Having seen family members buy new construction from production builders, I would never do so without 1) my own inspector, 2) a plan on where to live when closing is delayed, and 3) ensuring all punch list items are completed prior to close even if it means delaying the close - the warranty that your salesperson will hype up to get you to overlook issues is much more difficult to collect on once the builder has their money and even more difficult once the builder exits the tract. I'd probably soft peddle the fact I'm a cash bu...
by hand
Mon Feb 26, 2024 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Possible layoff - how to prepare?
Replies: 11
Views: 1088

Re: Possible layoff - how to prepare?

Putting together a war chest to survive an extended period without a job and actually starting the process of looking for and applying to jobs seem like the priority.

Taking care of any outstanding health items while you have time and insurance probably also worhtwhile.
by hand
Wed Feb 21, 2024 5:33 pm
Forum: Personal Investments
Topic: General retirement questions...need advice
Replies: 72
Views: 12216

Re: General retirement questions...need advice

Difference in Social Security may not be hugely material assuming you're well past the "second bend", but better to not have overly optimistic numbers when making the retirement decision.
by hand
Wed Feb 21, 2024 4:53 pm
Forum: Personal Investments
Topic: General retirement questions...need advice
Replies: 72
Views: 12216

Re: General retirement questions...need advice

Social Security benefits (as of 1/1/24) Me 65 = $2875 67 = $3341 70 = $4292 My wife 65 = $1611 67 = $1912 70 = $2461 Are the Social Security benefits based on your planned retirement dates, or are they based on an assumption of continuing to earn until full retirement age as defined by Social Security (67 I think)? Hello, I took these numbers from our SS accounts online just after the first of the year. I believe these amounts reflect our current status and that they may increase if we continue to work. Thank you! Hacksaw Projections that I'm familiar with on the Social Security site assume you continue to contribute at historical levels until full retirement age: "If you worked last year, we will also assume that you will continue to...
by hand
Wed Feb 21, 2024 11:27 am
Forum: Personal Investments
Topic: General retirement questions...need advice
Replies: 72
Views: 12216

Re: General retirement questions...need advice

hacksaw2025 wrote: Tue Feb 20, 2024 8:51 am
Social Security benefits (as of 1/1/24)
Me
65 = $2875
67 = $3341
70 = $4292

My wife
65 = $1611
67 = $1912
70 = $2461
Are the Social Security benefits based on your planned retirement dates, or are they based on an assumption of continuing to earn until full retirement age as defined by Social Security (67 I think)?
by hand
Wed Feb 21, 2024 8:00 am
Forum: Personal Consumer Issues
Topic: The Shrinking Lifespan of Large Appliances
Replies: 108
Views: 10075

Re: The Shrinking Lifespan of Large Appliances

I'm not a big believer in warranties - the hassle of using often outweighs the benefit.

Personally, I look for quality, and a decent repair ecosystem (local repair personnel, DIY repairability and parts availability) and shy away from aggressively marketed or aggressively trendy colors and features (which often seem designed to distract from performance and uptime/longevity).

I wish more appliances listed a design lifespan - What I really want is to be able to buy the Land Cruiser / Speed Queen of each appliance and never have to think about them again.
by hand
Wed Feb 14, 2024 7:40 am
Forum: Personal Consumer Issues
Topic: Pay cleaning lady for snow day?
Replies: 119
Views: 10092

Re: Pay cleaning lady for snow day?

There's a fundamental disconnect between the economics of being a cleaning person (require income every week) and how cleaning is charged (per service). While it can be argued that the cleaning business should charge a small premium for every service to cover the inevitable disruptions to service and therefore income, this is clearly not the reality for most cleaners who have little financial leverage in their dealings with you. While it is completely within your rights not to pay, you harm the cleaner by not doing so and if you do this often enough, cleaning for you will not be economic. I tend to think of cleaning and other service as an annual commitment and not sweat the details week to week - If overall service does not meet expectatio...
by hand
Mon Feb 12, 2024 2:21 pm
Forum: Personal Investments
Topic: Should my 21-year old nephew fire his financial advisor?
Replies: 99
Views: 10674

Re: Should my 21-year old nephew fire his financial advisor?

Surprised to see lots of technical arguments against the specific funds and whether or not a "conservative" allocation. While these arguments may all be true, they obscure the underlying issue and make it more complicated to understand and take appropriate action. Fundamental issue here is costs in this portfolio both for the funds and the advisor - which are obscene. Nephew should absolutely fire his "advisor" and do the following: 1) Direct that no additional transactions be made on the account without written authorization 2) Do the math themselves to understand impact that fees have had on their windfall over time 3) Do the math themselves to understand performance lag vs. a vanilla 80/20 or 60/40 portfolio 4) Take t...
by hand
Wed Feb 07, 2024 8:08 am
Forum: Personal Investments
Topic: half high income physician, half financial illiterate
Replies: 95
Views: 12014

Re: half high income physician, half financial illiterate

In light of this overview, I welcome any advice or suggestions, including whether to continue with the debt settlement plan, which I feel somewhat conflicted about. Any input would be appreciated. I have this lingering feeling that I should have amassed a substantial fortune by now, yet I haven't. I started late. finished residency in 2016. This uncertainty leaves me feeling quite insecure, and all I desire is a simple life with enough wealth and contentment to retire comfortably. My primary wish is for nothing but the best for my child. Good on you for taking a clear look at your financials even when things haven't gone perfectly. Good news is that you're way ahead on the hardest thing for most people to change - income, and will undoubta...
by hand
Mon Feb 05, 2024 7:23 am
Forum: Personal Finance (Not Investing)
Topic: Working Cushy job now, offered promotion to another dept. Stay put or make the jump over?
Replies: 32
Views: 2816

Re: Working Cushy job now, offered promotion to another dept. Stay put or make the jump over?

What if any pension implications are there for your choices?

$15K / yr difference may be magnified if it also meaningfully increases your pension.
by hand
Fri Feb 02, 2024 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Dropping term life?
Replies: 46
Views: 4229

Re: Dropping term life?

To me, the decision tree is something like the following:

1) Does my family need the insurance? Yes = Keep

2) Are the actuarial odds now strongly in my favor due to emergent health concerns? Yes = Probably Keep

3) Are the actuarial odds now in my favor due to increased age vs. flat payment? Possibly keep

4) Is the amount I'm paying material? Yes = lean towards drop, No = lean towards keep

5) Am I worried about tempting fate by dropping insurance? Yes = Keep, No = Possibly Drop

Not exactly math, but when insurance costs are nominal, hard to get too worked up about optimizing.
If my insurance costs were higher, I'd be more motivated to drop once my lifetime financial responsibilities to my family were fully met.
by hand
Fri Jan 26, 2024 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Selling house after 33 year; realtor distrust
Replies: 86
Views: 9849

Re: Selling house after 33 year; realtor distrust

capran wrote: Fri Jan 26, 2024 10:39 am If it were me, I'd look into the feasibility of keeping the property and building the desired home. That would negate the excise tax and fees, and I'd live out my life on the property I loved.
Yes! Yes! Yes!
by hand
Fri Jan 26, 2024 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Selling house after 33 year; realtor distrust
Replies: 86
Views: 9849

Re: Selling house after 33 year; realtor distrust

If this is likely a tear-down, consider reaching out to the five largest builders in your area plus anyone who is currently hanging an shingle on a build in your area. Even if they don't have the funds to buy the property, they are motivated to put their clients in touch. A simple form letter sent to 10 or 15 likely builders "I'm considering selling, if you have any interest, please let me know (or feel free to submit an offer)" plus your neighbors and those one block back from the lake is really low effort. Also consider setting Zillow "make me move" number to $5.99M if that represents an aspirational number you'd be happily accept tomorrow. Also note - your healthy distrust of realtors is key to a productive commercial...
by hand
Fri Jan 26, 2024 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Selling house after 33 year; realtor distrust
Replies: 86
Views: 9849

Re: Selling house after 33 year; realtor distrust

We met with a realtor (no commitment, no signature) and she said house is worth $6M. I think the house is worth $5M, maybe. Zillow $4M, assessed $4M. Her commission would be 5% ($250,000 !!!!!!!). Other costs are excise tax $1.45M, 80K for staging/moving/escrow, and doc prep. Adjusted capital gains tax ($1M basis - $500K exclusion = $3,500,000 x 20%) = $700K. 1) A classic agent move is to tease a high "sale" price to get the listing, then negotiate you down to a more realistic sale price to make the sale and get the commission 2) Realtor fees are negotiable - On a $5M property, there is massive wiggle room to negotiate fees downward from 5%, and perhaps tie a bonus should the $6M sale price be achieved. Heck, I'd happily take a c...
by hand
Fri Jan 26, 2024 9:53 am
Forum: Personal Finance (Not Investing)
Topic: New FAFSA has a $1.8B mistake - NPR
Replies: 7
Views: 1070

Re: New FAFSA has a $1.8B mistake - NPR

If this were in the private sector, every individual on this project would be unemployed. Not sure that's really how the private sector works: 1) Total annual financial aid appears to be roughly $250B - Despite the big absolute number in the headlines, this then represents a <1% error, and one that is fixable 2) Errors in the "Company's" favor are typically not penalized unless there is massive public fallout in which case a scapegoat or two is identified rather than firing everyone who touched the project 3) Good managers understand that errors occur and have processes in place to detect and prevent - an error like this is best understood as a failure of leadership and process rather than a failure of the many worker bees involv...
by hand
Thu Jan 25, 2024 12:46 pm
Forum: Personal Investments
Topic: When should I target retirement ?
Replies: 30
Views: 3328

Re: When should I target retirement ?

Objectively, $3M is enough to retire today (most people globally retire on much less) - seems like the real question is how much of your remaining health / life you're willing to trade for money to enrich the lives of your family.

Bogleheads is great at helping with the math, but not clear that would be my top priority in your shoes.
by hand
Thu Jan 25, 2024 9:21 am
Forum: Personal Consumer Issues
Topic: Best cookware to buy
Replies: 143
Views: 13731

Re: Best cookware to buy

As many have noted, sets are inefficient in terms of both space and cost unless your priority is consistent looks across all of your cookware. I'd suggest taking a functional review of your needs and buying best in class based on those needs (decent cookware lasts forever, and incremental cost is small for a lifetime of improved performance). My personal approach as follows: Frying Pan - Vintage cast iron from Grandma Nonstick frying pan - Vollrath CeramiGuard II Large Saucepan (used for pasta water and other liquids) - cheap NSF Stainless from restaurant supply store Smaller Saucepans (used for sauces, so performance actually matters) - Demeyere Industry Stock Pot - Demeyere Industry (only because it was a great deal, otherwise would be ha...
by hand
Fri Jan 12, 2024 7:41 am
Forum: Personal Consumer Issues
Topic: Kohler 20 KW - Doing Own Maintenance - Warranty
Replies: 31
Views: 3564

Re: Kohler 20 KW - Doing Own Maintenance - Warranty

I had the same question, but ultimately came to the conclusion 1) that DIY is so easy and such a massive upfront cost savings that I'd do it anyway even if it did impact the warranty and 2) home generator protection against extended outages is pretty limited (<100 hours) if you're dependent on outside service personnel who are undoubtedly overtaxed in an emergency so worth it to be prepared in terms of supplies and experience.

FYI: Kohler specifies spark plug change at 300 hours for the 20RCA - for a low runtime installation, the kits way over-sell spark plugs. Bulk oil, a case of oil filters and an occasional air filter are even cheaper than the kits :)
by hand
Thu Jan 04, 2024 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Super awkward new employer situation
Replies: 144
Views: 26114

Re: Super awkward new employer situation

Exurbanite wrote: Thu Jan 04, 2024 9:59 am A new twist...

Today I resigned stating that because the original terms of my employment were not being honored, I had no other option than to resign.

I was immediately offered a contract position.

Exurbanite
Good on you - you successfully changed this from a "you" problem to a "them" problem.

Be sure to use your newfound leverage to ensure you end up with a deal that is equal to or better than what you originally agreed to.

Old contract has ended and you have resigned, I wouldn't do any work or show up on site until a new contract is in place.
by hand
Wed Jan 03, 2024 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: UPDATE: Offered a Larger Rental - Please Help Me Decide
Replies: 67
Views: 10336

Re: Offered a Larger Rental - Please Help Me Decide

Is there a risk that rent at the larger place will eventually rise to a level where you can no longer afford effectively pricing you out of an area you can afford?

Are you giving up on rental protections by leaving the smaller place?
by hand
Wed Jan 03, 2024 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Super awkward new employer situation
Replies: 144
Views: 26114

Re: Super awkward new employer situation

When I met yesterday with my immediate supervisor, I started a discussion about which day I would take off each week. She was blindsided and had no idea I would not be working 5 days per week. About an hour later I was called into a meeting with the department director who apologized for not communicating my terms to my direct manager, but at the same time started back-pedaling on his original 4/5 offer. Yesterday around close of business he sent me an email asking me if I could do 4 ten-hour days instead of 4 eight-hour days but I asked if we could discuss it today. We are meeting in a few hours. Forget the extraneous detail in the rest of your post - the only thing to discuss with the Director is what happened to your shared agreement of...
by hand
Mon Dec 18, 2023 10:03 am
Forum: Personal Consumer Issues
Topic: 2023 Washer/Dryer Recommendation
Replies: 60
Views: 9927

Re: 2023 Washer/Dryer Recommendation

Unless you plan for disposable appliances (trash and replace if issue), be sure that you have local repair options for whatever you buy.
Due to a shortage of repair personnel, our local places are moving to a model where they only service what they sell.

In terms of brand, I'm on team Speed Queen.
by hand
Mon Dec 18, 2023 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Funding Remodel Options?
Replies: 8
Views: 752

Re: Funding Remodel Options?

Any other thoughts or advice? 401(k) loan from retirement assets allows you to pay back interest to yourself is also an option ... but reduces equities upside in your retirement account as well as carrying other risks and not obviously a good fit for you with relatively low retirement account balances. It is also possible that the builder has financing options. From a general advice standpoint, a couple of considerations: 1) Renovating a historic house that is experiencing mechanical failures (shower pan) is unlikely to be a project that finishes on-time or within initial estimate. If you are opening walls, I'd be prepared financially for surprises and make sure I had a plan to fund an additional $100k should the need arise. 2) While there...
by hand
Mon Dec 18, 2023 8:26 am
Forum: Personal Consumer Issues
Topic: Buying a home w/o an agent.
Replies: 63
Views: 12207

Re: Buying a home w/o an agent.

I think it is better to sign the dual agency agreement rather than to say "I'm my own agent". It forces the realtor to act by the ethcial standards and maybe state laws of a dual agency arrangement. Despite what NAR marketing would have you believe, it is not a true statement that a dual agent is forced to act according to ethical standards. While there are ethical standards laid out for realtors and dual agents, there is laughably little force in "enforcement" because 1) it is very likely that the ethical lapse would known only be known to the realtor, 2) documented proof of ethical lapses is unlikely to exist, and 3) actual penalties in the unlikely event of sanction are essentially meaningless - the worst case penalt...
by hand
Fri Dec 15, 2023 11:26 am
Forum: Personal Consumer Issues
Topic: Buying a home w/o an agent.
Replies: 63
Views: 12207

Re: Buying a home w/o an agent.

Great opportunity here to work through the listing agent who will be motivated to move mountains to get both sides of the commision, and may even be willing to throw in a discount.

Best part is that the seller is likely to still think that the agent is working in their best interest when the reality is that the listing agent now has potentially tens of thousands of dollars at stake to make sure you get the deal.
by hand
Tue Dec 05, 2023 7:12 am
Forum: Personal Investments
Topic: Keep or Roll Cash Balance Pensions into 401(k)?
Replies: 6
Views: 692

Re: Keep or Roll Cash Balance Pensions into 401(k)?

Longdog wrote: Tue Dec 05, 2023 6:59 am Do you know what those lump sum values will eventually translate to, if anything, in terms of future monthly payments? I think that's what should drive your decision. I have a similar situation, and the monthly payments that will eventually occur (derived from from the future cash value), are greater than what an immediate annuity would pay out with the projected cash balance at that time. That tells me that even though it is theoretically a cash balance, there is something in the formula that is unique (and beneficial) to the pension plan.
Thanks, and good call-out! I had assumed monthly payments would be actuarially equivalent, but clearly worth doing the math.
by hand
Tue Dec 05, 2023 6:51 am
Forum: Personal Investments
Topic: Keep or Roll Cash Balance Pensions into 401(k)?
Replies: 6
Views: 692

Re: Keep or Roll Cash Balance Pensions into 401(k)?

Appreciate the reply. I'll probably not use the IRA rollover option to continue to use backdoor Roth.
by hand
Mon Dec 04, 2023 11:41 am
Forum: Personal Investments
Topic: Keep or Roll Cash Balance Pensions into 401(k)?
Replies: 6
Views: 692

Keep or Roll Cash Balance Pensions into 401(k)?

Appreciate your thoughts on whether to keep a couple of small legacy "pensions" from a prior employer vs. rolling into my 401(k) and a low cost index fund.

Pension values modeled by the plan provider as follows:

Pension 1 (appears to be a 4% return):
Lump Sum Value today $100k
Lump Sum Value in 10 years $142k (42% increase from today)
Lump Sum Value in 20 years $208K (108% increase from today)

Pension 2 (appears to be just under a 5% return)
Lump Sum Value today $100k
Lump Sum Value in 10 years $161k (61% increase from today)
Lump Sum Value in 20 years $249k (149% increase from today)

(I normalized to $100k starting value for each to make the growth over time clearer)
by hand
Fri Dec 01, 2023 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Purchase home (~$375k) or continue renting ($500/mo)
Replies: 40
Views: 2822

Re: Purchase home (~$375k) or continue renting ($500/mo)

I'd focus on the strategic rather than the financial - Are you certain that you want this area, this house for the next 5-10 years?
Is there something unique about owning this house that won't be available at some point in the future when your rent increases or the current rental is inadequate?
by hand
Tue Nov 21, 2023 3:19 pm
Forum: Personal Investments
Topic: Benefit of not using a 529
Replies: 124
Views: 11173

Re: Benefit of not using a 529

I have not investigated it, but my brother is gifting appreciated stock to his children once 18 to pay for college. He claims it avoids cap gain taxes altogether, but will count against his lifetime gifting exemption once exceed 17k/ yr X 2 (gifting amount permissible per year per parent without having any effect). I plan to investigate further as I’m not sure all of my children will attend college. I believe the cost basis is transferred with the gift, and when the child sells it they will have to pay the capital gains tax. This could be advantageous if they are in a lower tax bracket, but I don't think it will avoid capital gains tax "altogether". Also, if your child is still a dependent of yours, I am not so sure this will avo...
by hand
Mon Nov 20, 2023 1:49 pm
Forum: Personal Investments
Topic: Saving to pay off mortgage
Replies: 46
Views: 4956

Re: Saving to pay off mortgage

Rather than "save up money" to pay to off the mortgage why not just put the extra cash on the mortgage principal as the cash becomes available? To me, this is the worst of all worlds - every payment reduces liquidity without reducing future cash flow requirements all while losing out on the spread between low mortgage rate and high risk free interest opportunities. I would never* pay off a mortgage with an interest rate below the risk free rate, but if I was going to, I would take the approach outlined of funding a "mortgage freedom account" and collecting the interest until I could pay off the mortgage in full and eliminate the monthly payment. * Never is a strong word - would perhaps consider prepaying to stuff a bunc...
by hand
Fri Nov 17, 2023 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Buy A House?
Replies: 79
Views: 8326

Re: Should I Buy A House?

Bb_cpa wrote: Fri Nov 17, 2023 1:03 pm Main reasons for wanting to buy are to be able to participate in what has been a huge driver of personal wealth for many...
So the investment thesis is that outsized returns will continue for the 30 years you'll own the house? And those returns will be better than the stock market?

There's lots of reasons to buy a house, I personally wouldn't use investment returns to justify a lifestyle purchase.
by hand
Wed Nov 08, 2023 11:26 am
Forum: Personal Consumer Issues
Topic: Purchasing recreational land
Replies: 13
Views: 2514

Re: Purchasing recreational land

Salary multiples don't work terribly well at the low or high ends of the salary scales.

It is probably better to understand your expected costs for food, medical, retirement, debt and entertainment (plus a buffer); whatever you have left is available for housing / land / discretionary. With a big income, you may not be as beholden to the multiples as others.

Make sure you also account for any changes likely to your salary as you move to a lower cost of living area.
by hand
Wed Nov 08, 2023 10:45 am
Forum: Personal Investments
Topic: Important financial decision I have to make, I could really use some outside perspective
Replies: 30
Views: 7037

Re: Important financial decision I have to make, I could really use some outside perspective

Lastly: The property is very easy to manage, almost no work It is very easy to rent and has always been rented. We've had a tenant in there for 8 years now. 99.9% reliable. It is a good piece of property. It really is and there isn't much else of it around. It is NOT office space. Many individual properties are easy to manage and easy to rent... until they aren't. To me, assuming the offer to buy is at or above market, this is really a strategic decision: Do you prefer a low diversification real estate heavy approach to your income stream with all the potential risks and benefits that entails? While I've seen people become really rich with real estate, I would not want to bet all of my future income on a small handful of properties especia...