Search found 2534 matches

by Meg77
Mon Oct 14, 2019 4:15 pm
Forum: Personal Investments
Topic: Advise on Large cash investment options in current market - Invest in market OR Pay off Mortgage
Replies: 11
Views: 1116

Re: Advise on Large cash investment options in current market - Invest in market OR Pay off Mortgage

Debt: 1. Home Loan $925K, Interest rate 2.875%, 7 Years ARM, 2.875% Rate will finish in 2023 (rate will increase by 2% after that for the first year) 2. Car Loan $48K Interest rate 0.99%, Will be fully paid in 2023 These are very good rates, close to or perhaps below the inflation rate. Portfolio: ...
by Meg77
Fri Oct 11, 2019 10:07 am
Forum: Personal Finance (Not Investing)
Topic: GE Pension Buyout
Replies: 69
Views: 7404

Re: GE Pension Buyout

Good to know that you are selecting option 3. Another past GE employee here. I saw my offer letter today. Can the OP share details about what can go wrong with PBGC (do they give full benefit if you are under 5000$ limit? Can they reduce the benefit?). Here are the options I am given: Lumpsum: $34,...
by Meg77
Fri Oct 11, 2019 9:48 am
Forum: Personal Finance (Not Investing)
Topic: Lump Sum Offer w/ very short decision turn around time
Replies: 12
Views: 1605

Re: Lump Sum Offer w/ very short decision turn around time

The younger you are and the smaller the pension compared to your overall financial picture, the more I'd lean toward taking the lump sum. Financially you can weigh the likelihood that you can earn more on the lump sum than the pension will pay, etc., but there is also always some level of risk (that...
by Meg77
Fri Oct 04, 2019 2:02 pm
Forum: Personal Consumer Issues
Topic: Mortgage rates what would you choose
Replies: 23
Views: 1652

Re: Mortgage rates what would you choose

Agree, it totally depends on your cash flow and existence of/progress toward other goals. You say you "can't" get a 15 year fixed which I assume means you want to keep the loan with the current lender for some reason and they don't offer a 15 year fixed (which is odd if they offer a 10 and a 30...)...
by Meg77
Thu Oct 03, 2019 1:32 pm
Forum: Personal Consumer Issues
Topic: Mortgage rates what would you choose
Replies: 23
Views: 1652

Re: Mortgage rates what would you choose

Agree, it totally depends on your cash flow and existence of/progress toward other goals. You say you "can't" get a 15 year fixed which I assume means you want to keep the loan with the current lender for some reason and they don't offer a 15 year fixed (which is odd if they offer a 10 and a 30...)....
by Meg77
Thu Sep 19, 2019 5:02 pm
Forum: Personal Investments
Topic: Newly widowed need investment advice
Replies: 35
Views: 2103

Re: Newly widowed need investment advice

In your situation I would absolutely pay off the mortgage. Sure, your interest rate is really low at 2.75% - but your money market fund is paying you a lot less than that, and the yield on bonds is less than that too for anything relatively safe. There is no point in keeping the mortgage just to inv...
by Meg77
Wed Sep 18, 2019 3:44 pm
Forum: Personal Consumer Issues
Topic: Help! Bought new car and don't like it
Replies: 37
Views: 6543

Re: Help! Bought new car and don't like it

I'm in a similar boat. I bought a brand new Mercedes (my first Mercedes - likely my last) in April and almost immediately realized I didn't "love" the car, at least not enough to warrant a big new shiny upgrade. I've thought almost daily about trading it in since then, though now I've put about 120...
by Meg77
Tue Sep 17, 2019 4:48 pm
Forum: Personal Consumer Issues
Topic: Retirees that have hobbies that make money - what are they?
Replies: 26
Views: 3162

Re: Retirees that have hobbies that make money - what are they?

My mom taught math online and enjoyed the extra money and mental stimulation. If I recall she made about $20K a year for about 15-20 hours a week of work (some of that was being logged in just in case anyone wanted to drop by for virtual office hours, which was not typical). She decided the hours we...
by Meg77
Tue Sep 17, 2019 4:38 pm
Forum: Personal Consumer Issues
Topic: Help! Bought new car and don't like it
Replies: 37
Views: 6543

Re: Help! Bought new car and don't like it

I'm in a similar boat. I bought a brand new Mercedes (my first Mercedes - likely my last) in April and almost immediately realized I didn't "love" the car, at least not enough to warrant a big new shiny upgrade. I've thought almost daily about trading it in since then, though now I've put about 1200...
by Meg77
Mon Sep 16, 2019 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Which cash account to buy second home??
Replies: 5
Views: 391

Re: Which cash account to buy second home??

Traditional IRA distributions will be taxable, so lump sum distributions for large purchases is generally not advisable from there. Roth accounts are most advantageous and so want to be left to grow as long as possible (again in general). Not sure what the purpose of the trust is or what kind it is,...
by Meg77
Mon Sep 16, 2019 12:30 pm
Forum: Personal Investments
Topic: A few years later... guidance/advice? Early 30's
Replies: 15
Views: 2346

Re: A few years later... guidance/advice? Early 30's

4. If you roll your 401k, I'd roll it to your current employer instead of to Vanguard since your current plan has good options with low fees. This will enable you to do Backdoor Roth IRA contributions if/when you make to much to make direct Roth contributions. Once you have high Traditional IRA bal...
by Meg77
Thu Sep 12, 2019 2:04 pm
Forum: Personal Investments
Topic: A few years later... guidance/advice? Early 30's
Replies: 15
Views: 2346

Re: A few years later... guidance/advice? Early 30's

Hi there! Overall things look pretty good, but you could definitely optimize some things. 1. I wouldn't hold bonds at all given your large cash cushion. Cash and bonds offer about the same returns and diversification risk (arguably, though cash is even safer), so until/unless you buy a house or inve...
by Meg77
Wed Sep 11, 2019 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Hard Money Loans
Replies: 34
Views: 5793

Re: Hard Money Loans

For the record you can finance more conservative deals and charge a bit less in interest. I've lent money for private mortgages that were well collateralized with personal guarantees attached for 5%-7% with no origination fee. Easy money (as long as you don't have to foreclose...). My dad is seller...
by Meg77
Wed Sep 11, 2019 2:47 pm
Forum: Personal Investments
Topic: What would you do?
Replies: 12
Views: 975

Re: What would you do?

B. Just because you have had a windfall doesn't mean you can or should finalize every financial decision today. If you like your current home, then stay there. If/when you need a bigger home, or a different home, then you can decide whether to buy or build one and where and how to finance it. I cert...
by Meg77
Tue Sep 10, 2019 3:54 pm
Forum: Personal Investments
Topic: My stats, any advice? job is not stable
Replies: 13
Views: 2037

Re: My stats, any advice? job is not stable

Chin up. You're in your early 40s and are multimillionaires. Not only that, you've got a pretty high degree of financial flexibility since most of your assets are not tied up in retirement accounts. Your goal is to invest more in income producing assets, and your husband wants to buy another rental....
by Meg77
Tue Sep 10, 2019 3:39 pm
Forum: Personal Investments
Topic: Is this what a CFP does?
Replies: 43
Views: 3170

Re: Is this what a CFP does?

Yes plenty of CFP Professionals can do that, and many charge by the hour these days versus by AUM if you want true objective advice. But if your parents are happy with Wells and don't want to move, I wouldn't necessarily waste your breath badgering them about it. It's their money after all, and ther...
by Meg77
Fri Sep 06, 2019 4:05 pm
Forum: Personal Investments
Topic: Advice for 95 year old
Replies: 14
Views: 2520

Re: Advice for 95 year old

Thanks for the replies. I don't "have" to do anything, I just wanted confirmation that I wasn't being negligent by doing nothing. You're definitely not being negligent for doing nothing. Nothing you describe is inappropriate. Whether she's in 100% stocks or 100% cash, there is very little chance of...
by Meg77
Fri Aug 30, 2019 1:45 pm
Forum: Personal Investments
Topic: Sold my Business (2.2 Million)! Where to store proceeds while I think?
Replies: 81
Views: 9432

Re: Sold my Business (2.2 Million)! Where to store proceeds while I think?

Congratulations! I agree the money should just sit in a high yield savings account while you ponder next steps, but given the high amount relative to your spending needs - and given your age and plan to start another business soon - it doesn't need to be in cash for the long term. Here is what I re...
by Meg77
Wed Aug 28, 2019 11:47 am
Forum: Personal Investments
Topic: Sold my Business (2.2 Million)! Where to store proceeds while I think?
Replies: 81
Views: 9432

Re: Sold my Business (2.2 Million)! Where to store proceeds while I think?

Congratulations! I agree the money should just sit in a high yield savings account while you ponder next steps, but given the high amount relative to your spending needs - and given your age and plan to start another business soon - it doesn't need to be in cash for the long term. Here is what I rec...
by Meg77
Tue Aug 27, 2019 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Dilemma about rent or sell
Replies: 6
Views: 402

Re: Dilemma about rent or sell

Hi there, fellow landlord here. Cap rate is useful for comparing various properties when deciding whether to BUY, but it's not very useful once you own a property to evaluate how it's doing or whether you should sell - especially if that property has appreciated in value. I value rental real estate ...
by Meg77
Thu Aug 15, 2019 1:59 pm
Forum: Personal Investments
Topic: AA on real estate for overall portfolio?
Replies: 20
Views: 1242

Re: AA on real estate for overall portfolio?

There is no rule of thumb, but I'm in the same boat so am interested to see what others say. I'm at the point where I do count my residential and commercial RE holdings as part of my asset allocation, because with new investments each year I am actively deciding which of those asset classes to inves...
by Meg77
Tue Aug 13, 2019 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage for Retirees
Replies: 28
Views: 2432

Re: Mortgage for Retirees

I'm a banker who does lots of mortgages, and we do extend them to retired people. You still have to qualify under the usual debt to income ratios, but various retirement income, including distributions from any traditional retirement accounts, will count. If you don't show much income on your tax r...
by Meg77
Thu Aug 08, 2019 3:40 pm
Forum: Personal Investments
Topic: Buy During This Dip?
Replies: 99
Views: 12793

Re: Buy During This Dip?

We could see another 5-10% drop before it comes back up. How do you know this? What about a 10-20% drop? Or a 20-30% drop? How's about 40-50%? There is absolutely no guarantee, nor any reason to believe, they market will "come back up" after a 5-10% drop. I didn't say I know this; I said it could h...
by Meg77
Thu Aug 08, 2019 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage for Retirees
Replies: 28
Views: 2432

Re: Mortgage for Retirees

I'm a banker who does lots of mortgages, and we do extend them to retired people. You still have to qualify under the usual debt to income ratios, but various retirement income, including distributions from any traditional retirement accounts, will count. If you don't show much income on your tax re...
by Meg77
Wed Aug 07, 2019 9:16 am
Forum: Personal Investments
Topic: Buy During This Dip?
Replies: 99
Views: 12793

Re: Buy During This Dip?

We could see another 5-10% drop before it comes back up. How do you know this? What about a 10-20% drop? Or a 20-30% drop? How's about 40-50%? There is absolutely no guarantee, nor any reason to believe, they market will "come back up" after a 5-10% drop. I didn't say I know this; I said it could h...
by Meg77
Mon Aug 05, 2019 2:01 pm
Forum: Personal Investments
Topic: Buy During This Dip?
Replies: 99
Views: 12793

Re: Buy During This Dip?

As someone who always has extra cash and doesn't have a rigidly defined IPS, I absolutely bought today. Ditto. But I didn't deploy all my excess cash. We could see another 5-10% drop before it comes back up. I sold some RE recently so set up monthly automatic investments to invest my cash in stocks...
by Meg77
Fri Aug 02, 2019 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Aggressive loan paydown on sub-2.5% fixed debt?
Replies: 18
Views: 1218

Re: Aggressive loan paydown on sub-2.5% fixed debt?

2.45% is about the cost of inflation; in other words that is free money. The fed does not seem to agree Ha, good point. Particularly with the short 5 year time horizon - the official inflation rate is certainly below historical 2-3% levels and will likely continue to be. Though ACTUAL inflation as ...
by Meg77
Fri Aug 02, 2019 12:46 pm
Forum: Personal Consumer Issues
Topic: Extreme Anxiety with Time/Money
Replies: 95
Views: 8377

Re: Extreme Anxiety with Time/Money

Thanks to the Internet, I'm obsessed with DIY. Not only that, but I hate watching my hard-earned savings diminish. Right now, I'm maxing out retirement, have a sizable emergency fund (almost 1 year of income), and save plenty in taxable. Definitely not house-poor with a shared mortgage with my fian...
by Meg77
Thu Aug 01, 2019 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Aggressive loan paydown on sub-2.5% fixed debt?
Replies: 18
Views: 1218

Re: Aggressive loan paydown on sub-2.5% fixed debt?

2.45% is about the cost of inflation; in other words that is free money. Plus it's on a short repayment period. You can earn over 2% in a money market account. I'd save 3-6 months of expenses before doing anything. The liquidity and the flexibility that a good savings cushion provides is worth the m...
by Meg77
Thu Aug 01, 2019 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Why won’t anyone hire me?
Replies: 156
Views: 15245

Re: Why won’t anyone hire me?

If I were in your situation, I would look at starting a business. You'll have more flexibility and could make about the same after tax income in no time as you could with a temp job paying roughly minimum wage (owning a business is really favorable to being an employee from a tax perspective - you c...
by Meg77
Thu Aug 01, 2019 12:18 pm
Forum: Personal Investments
Topic: Pay off $17k student loan or max out 401k this year?
Replies: 48
Views: 3291

Re: Pay off $17k student loan or max out 401k this year?

These aren't your only two options. Assuming you have no other debt, have adequate life/health/disability insurance, and have no pressing short term financial goals that would otherwise require debt, I would: 1. Contribute enough to get your 401k match. 2. Max a Roth IRA (you can make backdoor Roth ...
by Meg77
Thu Aug 01, 2019 12:10 pm
Forum: Investing - Theory, News & General
Topic: Are You Rich?
Replies: 31
Views: 3353

Re: Are You Rich?

I find these sorts of things good for perspective, but I always question the data. Few people live simply off wages or retirement investments. Lower income folks get all kinds of welfare and subsidies and tax credits that wouldn't be counted as income. Business owners can largely control their "inco...
by Meg77
Fri Jul 26, 2019 1:54 pm
Forum: Personal Investments
Topic: Laid Off - Want to Retire / Am I OK
Replies: 145
Views: 18881

Re: Laid Off - Want to Retire / Am I OK

All these replies are very helpful. My primary concern is sequence of risk, that is why I want to try and live on mostly dividends / income in the initial years. My current estimate of dividend and interest income is about 130K. The individual stocks I have pay above average dividends. So the rest ...
by Meg77
Wed Jul 24, 2019 2:51 pm
Forum: Personal Investments
Topic: Teenage Son Wants to Start Investing
Replies: 27
Views: 1651

Re: Teenage Son Wants to Start Investing

This is awesome! I started investing as a teenager too, and it has been a life-changer. 1. Let HIM research and decide what to invest in. He's 18, he's an adult, it's his money, and most importantly it will be a good learning experience. I opened my first brokerage account at 13, and my dad (a stock...
by Meg77
Wed Jul 24, 2019 2:37 pm
Forum: Personal Investments
Topic: Self Funding Ideas for Long Term Insurance
Replies: 30
Views: 1797

Re: Self Funding Ideas for Long Term Insurance

I definitely don't think you need to buy LTC insurance now. The general rule of thumb is to buy it (if you can't afford to self insure) at or around age 65. It's highly unlikely you'd need LTC in your 50s or 60s. And by the time you might need it decades from now, the coverage, terms and premiums w...
by Meg77
Tue Jul 23, 2019 4:55 pm
Forum: Personal Investments
Topic: 24 years old: How should I invest my extra money?
Replies: 17
Views: 1242

Re: 24 years old: How should I invest my extra money?

How long do you plan to live at home? I would start looking for your own place. This is how I would spend the extra money. You are off to a great start with a wonderful salary. Congrats. Put it to use in establishing your independence. I'm currently in a work program that will last another year and...
by Meg77
Tue Jul 23, 2019 4:41 pm
Forum: Personal Investments
Topic: Self Funding Ideas for Long Term Insurance
Replies: 30
Views: 1797

Re: Self Funding Ideas for Long Term Insurance

I definitely don't think you need to buy LTC insurance now. The general rule of thumb is to buy it (if you can't afford to self insure) at or around age 65. It's highly unlikely you'd need LTC in your 50s or 60s. And by the time you might need it decades from now, the coverage, terms and premiums wi...
by Meg77
Thu Jul 18, 2019 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 6086

Re: Explaining the magic of compound interest to teenagers

I think my son was maybe 14 when I showed him the chart with the one guy that saved 2K/year for 10 years starting at 25 then quit and the other guy that started at 35 and never caught up to the first guy. That really made an impression on him. Yes, this would be a great way to make the lesson intro...
by Meg77
Thu Jul 18, 2019 8:46 am
Forum: Personal Consumer Issues
Topic: Has anyone seen the documentary "Playing with FIRE?"
Replies: 216
Views: 19756

Re: Has anyone seen the documentary "Playing with FIRE?"

I haven't seen it yet, but they talked about it on a recent ChooseFI podcast that I listened to yesterday. They seemed to give it a good review - said it was surprisingly funny and resonant and exciting. I don't know that I'll bother to see it in the theater, but I definitely plan to watch it at som...
by Meg77
Wed Jul 17, 2019 1:16 pm
Forum: US Chapters
Topic: Birmingham, Alabama local chapter
Replies: 20
Views: 1438

Re: Birmingham, Alabama local chapter

Oh fun! I'm from Birmingham but live in Dallas now. I have family there though, and I may let my dad know about this. I don't think he's ever been on this website, but he's a Boglehead in many ways!
by Meg77
Fri Jul 12, 2019 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: What would you charge if you were a FA?
Replies: 29
Views: 2189

Re: What would you charge if you were a FA?

I wouldn't charge AUM fees because I wouldn't directly manage/control investments. I would offer an hourly consulting rate of $150-$250 which might be substantially discounted for clients with low income/few assets. I would also offer a flat fee for a comprehensive financial plan which might vary be...
by Meg77
Fri Jul 12, 2019 12:09 pm
Forum: Personal Investments
Topic: Analysis Paralysis: How to Invest Windfall + Extra Cash?
Replies: 7
Views: 1204

Re: Analysis Paralysis: How to Invest Windfall + Extra Cash?

Pay off the highest rate mortgage. Keep the rest of the cash in taxable and call it your “bond” allocation (that can also double as an emergency/slush fund). That’s what we do. Though I’m not sure why you’re not using a muni fund. Thanks. The VG muni MMF doesn't currently provide better after tax y...
by Meg77
Thu Jul 11, 2019 2:31 pm
Forum: Personal Investments
Topic: Analysis Paralysis: How to Invest Windfall + Extra Cash?
Replies: 7
Views: 1204

Analysis Paralysis: How to Invest Windfall + Extra Cash?

Hi Bogleheads, Seeking some objective input. We've never had a real plan for after tax savings (we didn't have much of any until the past few years), and we generally chunk extra funds into Vanguard money market until an investment opportunity arises. Initially taxable brokerage was where we put our...
by Meg77
Tue Jun 25, 2019 3:22 pm
Forum: Personal Investments
Topic: Could I be financially independent in 4-5 years?
Replies: 28
Views: 5301

Re: Could I be financially independent in 4-5 years?

Simple answer - yes you can be financially free in 4-5 years if you continue to save 75% of your income and your expenses don't increase. This is especially true if you don't intend to quit earning money entirely. https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-ret...
by Meg77
Tue Jun 25, 2019 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: How did you lower your annual expenses?
Replies: 145
Views: 13650

Re: How did you lower your annual expenses?

Buying slightly used cars and driving them for 5+ years is one way. Not upgrading our house as our income has risen is the big one though. Total housing costs are down to about 15%-17% of our gross income now (it was closer to 30% 5 years ago when we moved in; our incomes were lower but we also put ...
by Meg77
Fri Jun 21, 2019 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Permanent DINK couples - Considerations, thoughts, etc?
Replies: 97
Views: 10680

Re: Permanent DINK couples - Considerations, thoughts, etc?

DINK here. This is a really interesting and - to me - important topic. It's true that most aspects of traditional financial planning assume a traditional life path - college, marriage, decades of building a career/business and a family, retirement, leaving a "legacy" to kids upon death. Many people ...
by Meg77
Thu Jun 20, 2019 3:45 pm
Forum: Personal Investments
Topic: Question [how savings accumulates]
Replies: 4
Views: 563

Re: Question

$2400 a year x 10 years is only $24,000 assuming a 0% rate of return.
by Meg77
Thu Jun 20, 2019 3:44 pm
Forum: Personal Investments
Topic: What should be my next investing move?
Replies: 7
Views: 1103

Re: What should be my next investing move?

If you have no 401k, then start a taxable brokerage account. +1 You've done a great job! Now that you're maxing retirement (Roths + HSA) and have no debt and a year of expenses in cash (plus wedding expenses), the next step would be to pile up investments outside of retirement. VTSAX is a good plac...
by Meg77
Wed Jun 19, 2019 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Can I retire in 1 year at 53
Replies: 54
Views: 9926

Re: Can I retire in 1 year at 53

You can definitely afford it. I understand your concerns with regard to the volatility of healthcare costs, but you're targeting a low enough withdrawal rate that you should be able to absorb it regardless. Besides, a large portion of your budget is discretionary spending (travel), and a chunk of yo...
by Meg77
Wed Jun 19, 2019 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Best Source for Downpayment
Replies: 1
Views: 283

Re: Best Source for Downpayment

It sounds like you really need to decide what you want your target asset allocation to look like and pull from whichever fund gets you closer to that. I definitely think 20% cash is heavy given your age and situation. It makes sense given you've been saving for this purchase, but I'd probably pull t...