Search found 118 matches

by Mako52
Fri Jan 10, 2020 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 802
Views: 82887

Re: Why are you NOT buying rental properties?

Because the ROI on real estate is terrible, and it's even worse with rentals. Why would I buy a home for $600,000 in the DC suburbs to rent it for $2,700/month and pay $600/mo in property taxes? That is why you don’t buy in DC suburbs. RE is local. True. But I would have zero interest in owning a p...
by Mako52
Thu Jan 09, 2020 9:14 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 802
Views: 82887

Re: Why are you NOT buying rental properties?

Because the ROI on real estate is terrible, and it's even worse with rentals. Why would I buy a home for $600,000 in the DC suburbs to rent it for $2,700/month and pay $600/mo in property taxes? That's pretty decent, particularly when you add the appreciation. What appreciation? It's not like you'r...
by Mako52
Thu Jan 09, 2020 8:54 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 802
Views: 82887

Re: Why are you NOT buying rental properties?

Because the ROI on real estate is terrible, and it's even worse with rentals.

Why would I buy a home for $600,000 in the DC suburbs to rent it for $2,700/month and pay $600/mo in property taxes?
by Mako52
Sun Jan 05, 2020 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Spreadsheets - Out of here!
Replies: 85
Views: 7602

Re: Spreadsheets - Out of here!

Spreadsheets can show you lots of things about the past (coulda shoulda woulda), or present. For example, what kind of margin I can make on a stock or good that I'm selling. How much wine from 2013 I have in the basement that I need to drink before it goes bad. What kind of gas mileage I got in Apri...
by Mako52
Fri Jan 03, 2020 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: How to Minimize Your Emergency Care Expenses
Replies: 371
Views: 152661

Re: How to Minimize Your Emergency Care Expenses

Question for WCI and others knowledgeable in emergency treatment as we probably took care of 2020's deductible earlier tonight with an unexpected ER visit. Let's say your child does one of the following. Other than the hospital ER, is there a more cost-effective place for treatment for the following...
by Mako52
Sun Dec 29, 2019 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Goodbye USAA
Replies: 72
Views: 8740

Re: Goodbye USAA

USAA once had really competitive rates when their risk pool was limited primarily to commissioned officers of the US military and their adult children. Then they added non-commissioned officers. NCOs are the backbone of the US military and run its daily operations. Then they added enlisted military ...
by Mako52
Mon Nov 25, 2019 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Lease vs Buy Car...what am I missing?
Replies: 50
Views: 4873

Re: Lease vs Buy Car...what am I missing?

The most economical way to own a car is buy one at year 2 and sell it at year 5, but selling a car is no fun.

The depreciation curve flattens out but the incremental repair (which is different than maintenance) costs haven't quite taken off.
by Mako52
Tue Nov 19, 2019 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: The Mega Backdoor Roth IRA
Replies: 445
Views: 212799

Re: The Mega Backdoor Roth IRA

Question: Should one ever do a Backdoor Roth if they live in a state with an income tax if they plan to retire in a state that does not have an income tax?
by Mako52
Tue Nov 12, 2019 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Anyone want to share their monthly budget? Here's ours
Replies: 153
Views: 33369

Re: Anyone want to share their monthly budget? Here's ours

Mid/late 30s, DINK, MCOL. Numbers based on net income (after max pre-tax 401k, health ins, transit, payroll taxes, etc) and before bonus/RSU. Roth IRAs and I bonds fully funded at the beginning of the year with bonus money. Home maintenance and additional misc spending cash flowed from bonus/RSU ve...
by Mako52
Tue Nov 05, 2019 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Finances in NYC
Replies: 127
Views: 14144

Re: Finances in NYC

Go to NYC for a couple of days, take the subway during rush hour, and see the kinds of apartments you're going to be living in for that kind of rent. You are throwing yourself into a meat grinder. NYC can be fun, both personally and professionally, but it also absurdly expensive and stressful. "I do...
by Mako52
Sun Nov 03, 2019 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Possible Layoff: Need Assurance That We Will Be Okay
Replies: 156
Views: 14078

Re: Possible Layoff: Need Assurance That We Will Be Okay

How did you make all that money at your age? You should be giving us advice lol. This. At age 42, I don't see many ways for people to be worth 4M unless they 1) got very lucky on stock options, 2) inherited a lot, 3) crushed it with their own business or 4) have impeccable ability to time the marke...
by Mako52
Tue Oct 22, 2019 3:15 pm
Forum: Personal Investments
Topic: When does it make sense to convert Traditional 401K to Roth?
Replies: 7
Views: 710

Re: When does it make sense to convert Traditional 401K to Roth?

As Federal taxes are currently low by historic standards, I had been thinking of doing a conversion while we are in the 22% MFJ bracket, but failed to consider that we'll likely move to a no-income-tax state in retirement. In addition, we would be dipping into cash reserves to pay for Federal and st...
by Mako52
Thu Oct 17, 2019 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: What percent of net worth should a persons house be?
Replies: 141
Views: 10857

Re: What percent of net worth should a persons house be?

I'm surprised on a BH forum so many people are saying it doesn't matter or that it matters little. that is, in my mind, insane. this is a forum founded essentially on two axioms 1) diversify 2) cut costs. from that, you should have as small a percentage of your net worth in your home as you find co...
by Mako52
Mon Oct 07, 2019 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Tactics to pay off Mortgage Early??
Replies: 60
Views: 6573

Re: Tactics to pay off Mortgage Early??

I have a question for those in their 40s and 50s who decided to pay off their mortgage early. Not extra payments here and there, but a lump sum of 25% or more of its original value.

What was your monthly P&I as a percentage of your total expenses, including Federal, state, and local taxes?
by Mako52
Wed Oct 02, 2019 7:05 am
Forum: Personal Investments
Topic: Thoughts on VIG
Replies: 17
Views: 2092

Re: Thoughts on VIG

VIG isn't a high dividend yield ETF. It selects companies who consistently raise dividend payments. Here's an analysis of a DCA / 401k scenario since its inception in 2006. It has a slightly higher Sharpe ratio than VTI or VFIAX. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=...
by Mako52
Tue Oct 01, 2019 5:57 pm
Forum: Personal Investments
Topic: Thoughts on VIG
Replies: 17
Views: 2092

Re: Thoughts on VIG

Play with the starting date but I think it would be tough to argue that VTI or VOO would be a superior long-term investment than VIG, whether it's in taxable or retirement. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=2016&firstMonth=1&endYear=2019&lastMonth=9&ca...
by Mako52
Tue Sep 17, 2019 8:50 am
Forum: Investing - Theory, News & General
Topic: DCA vs. Lump Sum- an interesting analysis
Replies: 62
Views: 4039

Re: DCA vs. Lump Sum- an interesting analysis

In summer 1998 as a fairly recent college grad I lump summed a then-significant amount of cash into an S&P500 fund into a taxable account and reinvested dividends. It peaked in summer 2004, then took a dive, went back up, 2008/2009 hit, and ultimately took 12years for it to get back to its original...
by Mako52
Tue Sep 17, 2019 8:03 am
Forum: Investing - Theory, News & General
Topic: DCA vs. Lump Sum- an interesting analysis
Replies: 62
Views: 4039

Re: DCA vs. Lump Sum- an interesting analysis

In summer 1998 as a fairly recent college grad I lump summed a then-significant amount of cash into an S&P500 fund into a taxable account and reinvested dividends. It peaked in summer 2004, then took a dive, went back up, 2008/2009 hit, and ultimately took 12years for it to get back to its original ...
by Mako52
Thu Sep 12, 2019 9:33 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11652

Re: Paying off mortgage early - am I thinking about this right?

The other thing I'd say on mortgage payoffs to consider is what % of your total annual expenditure is your mortgage P&I? If it's 25% I can see the desire to pay it off right away, but if it's 10%....or 15%? There are other big recurring expenses that won't go away: Federal tax, state income tax, loc...
by Mako52
Thu Sep 12, 2019 6:47 am
Forum: Personal Finance (Not Investing)
Topic: ReFI Advice
Replies: 12
Views: 813

Re: ReFI Advice

How long are you planning to stay in the house?

What is their rate with zero points?
by Mako52
Wed Sep 11, 2019 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11652

Re: Paying off mortgage early - am I thinking about this right?

I'm wondering about the following. There is principal and interest in a mortgage payment. If I'm moving cash from one asset (such as a bank account or taxable brokerage account) to pay off a liability, my net worth is the same. In these decisions, why don't we look more at what our monthly interest...
by Mako52
Wed Sep 11, 2019 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11652

Re: Paying off mortgage early - am I thinking about this right?

I'm wondering about the following. There is principal and interest in a mortgage payment. If I'm moving cash from one asset (such as a bank account or taxable brokerage account) to pay off a liability, my net worth is the same. In these decisions, why don't we look more at what our monthly interest ...
by Mako52
Thu Aug 08, 2019 9:58 am
Forum: Personal Finance (Not Investing)
Topic: Tax & Investment Strategies for young (15) trader/collector w/ >$15k income
Replies: 4
Views: 376

Re: Tax & Investment Strategies for young (15) trader/collector

mako see this thread for ideas https://www.bogleheads.org/forum/viewtopic.php?f=1&t=267082 Thanks. That thread has good ideas for someone making a few hundred dollars a year, but he's going to be dealing with all sorts of taxes, including self-employment. I edited the title of this thread to reflec...
by Mako52
Thu Aug 01, 2019 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Tax & Investment Strategies for young (15) trader/collector w/ >$15k income
Replies: 4
Views: 376

Tax & Investment Strategies for young (15) trader/collector w/ >$15k income

My son is 15 and buys/resells collectibles. In 2018 (his first year) he netted $15k in profit, which was mostly retained in paid-for inventory he carried over to sell in 2019. This year he is well on track to double or triple that figure. The business continues to grow and he knows all about the ben...
by Mako52
Mon Jul 22, 2019 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 6737

Re: Explaining the magic of compound interest to teenagers

OP, Rule of 72. If the annual return rate is 8%, it takes 72/8 = 9 years for the money to double. KlangFool To think of the billions of dollars we spend on public education, and this is rarely- if ever - mentioned simply blows my mind. I talked to some graduating seniors on their way to UVA (!) who...
by Mako52
Mon Jul 22, 2019 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Explaining the magic of compound interest to teenagers
Replies: 107
Views: 6737

Re: Explaining the magic of compound interest to teenagers

OP, Rule of 72. If the annual return rate is 8%, it takes 72/8 = 9 years for the money to double. KlangFool To think of the billions of dollars we spend on public education, and this is rarely- if ever - mentioned simply blows my mind. I talked to some graduating seniors on their way to UVA (!) who...
by Mako52
Mon Jul 22, 2019 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes?
Replies: 85
Views: 9762

Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Start a business that you are passionate about in an industry you know and like, and see yourself in for at least 10 years.
by Mako52
Fri Jul 05, 2019 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Home Price as a % of Net Worth
Replies: 20
Views: 1970

Re: Home Price as a % of Net Worth

Significant other, or spouse? Personally, I would not purchase a home with someone I was not legally married to. I would probably wait and rent until you have children, or one on the way. We bought a townhouse and had 2 kids within 5 years of the purchase, and outgrew it at year 8. Net worth doesn't...
by Mako52
Tue Jul 02, 2019 7:17 pm
Forum: Personal Consumer Issues
Topic: Best way to continually get SiriusXM Radio discount
Replies: 18
Views: 1579

Re: Best way to continually get SiriusXM Radio discount

I listen to approx 6 stations on XM. They play the same &*(# all the time. Option 1: I can stream Spotify to my car stereo with unlimited wireless data. Spotify is a $15/month no-brainer expense IMHO. Option 2: I can put a zillion songs into my car's SD slot. Who else regrets buying all those early ...
by Mako52
Tue Jul 02, 2019 4:30 pm
Forum: Personal Consumer Issues
Topic: Rolex
Replies: 87
Views: 13332

Re: Rolex

Bought a 1:1 replica of a Rolex Submariner date with correct sweep motion and weight from DHgate for 80 bucks. I wear it everyday and get numerous compliments and the jeweler who removed the links couldn't even tell the difference. Save your hard earned money and just buy a replica. They are so far...
by Mako52
Tue Jun 25, 2019 11:13 am
Forum: Personal Finance (Not Investing)
Topic: How did you lower your annual expenses?
Replies: 145
Views: 14246

Re: How did you lower your annual expenses?

People focus on cutting pennies, clipping coupons, etc but seem to ignore the following. These can be massive expenditures: 1. Property taxes on your primary residence and vehicles. 2. State income tax 3. Federal income tax 4. Health insurance 5. Leasing new cars and/or buying a new one and selling ...
by Mako52
Fri May 17, 2019 10:03 am
Forum: Personal Investments
Topic: If you are already wealthy, what keeps you motivated?
Replies: 102
Views: 13378

Re: If you are already wealthy, what keeps you motivated?

Some things I've learned.... 1. Don't drink too much of your own KoolAid. 2. Don't underestimate becoming a victim of your own success. If you're successful within a company, industry, industry subsector, etc it will draw attention. And you'll paint a large bullseye on your back. 3. Don't work or co...
by Mako52
Fri May 17, 2019 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Reservations about job offer
Replies: 65
Views: 4512

Re: Reservations about job offer

When in doubt, don't. Trust your instincts.
by Mako52
Wed May 08, 2019 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance? If so, which option?
Replies: 17
Views: 1242

Re: Refinance? If so, which option?

If your income goes up or down 40% from one year to the next, it changes your perspective. It has mine, anyway. YMMV. Why not do the 15 year at 3.25%? With the 15 year, we'll have payments of $3,127 over the next 108 months. We cannot pay a dollar less than that. At our anticipated sale date, we'll...
by Mako52
Wed May 08, 2019 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance? If so, which option?
Replies: 17
Views: 1242

Re: Refinance? If so, which option?

If your income goes up or down 40% from one year to the next, it changes your perspective. It has mine, anyway. YMMV. Why not do the 15 year at 3.25%? With the 15 year, we'll have payments of $3,127 over the next 108 months. We cannot pay a dollar less than that. At our anticipated sale date, we'll ...
by Mako52
Wed May 08, 2019 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance? If so, which option?
Replies: 17
Views: 1242

Re: Refinance? If so, which option?

No prepayment penalty on the ARM. :sharebeer
by Mako52
Wed May 08, 2019 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance? If so, which option?
Replies: 17
Views: 1242

Re: Refinance? If so, which option?

Thanks for the replies. We are going with the 10yr ARM because we want to drop our monthly payment and there's a 99% chance we will be out of this house within 10 years. I don't want to lock myself into paying another $350/mo over what we are already paying with a 15 year. The ARM gives us much more...
by Mako52
Wed May 08, 2019 6:56 am
Forum: Personal Finance (Not Investing)
Topic: Refinance? If so, which option?
Replies: 17
Views: 1242

Re: Refinance? If so, which option?

Bumping this thread as we close in 3 days and have a couple of questions.

Note: refinancing is a pita if you're self employed, even if you have a strong balance sheet.
by Mako52
Tue Apr 30, 2019 8:00 am
Forum: Personal Investments
Topic: 45 and 43 years old, 2 kids: Please advice on Retirement/Asset Allocation/Tax Efficiency/Loan Prepayment
Replies: 10
Views: 2264

Re: 45 and 43 years old, 2 kids: Please advice on Retirement/Asset Allocation/Tax Efficiency/Loan Prepayment

My initial take: you're high earners (37% bracket) and that's good! Your mortgage is well within affordability, you're saving a ton, life is good. Way too much in concentrated in two tech stocks. 14% of $2.6M in one stock- Intuit, and 7% in Salesforce. You're probably going to hear a lot about the 3...
by Mako52
Thu Mar 28, 2019 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance? If so, which option?
Replies: 17
Views: 1242

Re: Refinance? If so, which option?

lakpr wrote:
Thu Mar 28, 2019 5:03 pm
If you are taking the ARM, you *must* sell the house within 9 years.
Who says you must sell the house? An ARM rate floats after X years, does it not?
by Mako52
Thu Mar 28, 2019 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance? If so, which option?
Replies: 17
Views: 1242

Refinance? If so, which option?

Talked to a lender today about refinancing our loan and would appreciate the forum's wisdom (very rarely do I say that about internet forums) UPDATE, MAY 8, 2019...... We close on the loan in 3 days. I have cash to reduce the loan amount from $445,000 to as low as $400,000, but with a 3.375% rate I'...
by Mako52
Thu Mar 28, 2019 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Paying "early" on mortgage may be unwise
Replies: 229
Views: 21483

Re: Paying "early" on mortgage may be unwise

...you will still be fully obligated to make all monthly mortgage payments on the regular schedule. ... Don't forget that recasting is an option for many loans if you get ahead of the amortization schedule and need to lower your required payment. I looked at recasting with Wells Fargo extensively a...
by Mako52
Mon Mar 25, 2019 10:25 am
Forum: Personal Consumer Issues
Topic: Nice men's jeans
Replies: 53
Views: 3835

Re: Nice men's jeans

Sign up for Lucky Jeans emails and buy them at 40% off when they have sales. The Italian denim is worth the extra dosh in my experience.

Costco is also a good source if your inseam is 34" or less.
by Mako52
Mon Mar 25, 2019 7:30 am
Forum: Personal Consumer Issues
Topic: Three Days in DC
Replies: 83
Views: 4349

Re: Three Days in DC

the one restaurant I recommend in DC is Jose Andres's first restaurant in the US: Jaleo, right by the Capital One Arena (nee Verizon Center). He has a very high opinion of himself and his cooking, but Jaleo's tapas are really, really good. I also like The Hamilton and Old Ebbitt Grill for a true "DC...
by Mako52
Mon Mar 25, 2019 7:25 am
Forum: Personal Consumer Issues
Topic: Recommend a good SOCK. Yes, I said SOCK!
Replies: 77
Views: 7834

Re: Recommend a good SOCK. Yes, I said SOCK!

Darn Tough . Once you start wearing them you'll find that many other socks end up as charitable contributions. Sorry, but socks are one thing I will never be "frugal" about. I recently sent my first pair back to them under their warranty. No questions asked, a code for credit showed up in my inbox.
by Mako52
Sun Feb 03, 2019 9:02 am
Forum: Investing - Theory, News & General
Topic: Small-Cap Value Funds: Then And Now
Replies: 74
Views: 9777

Re: Small-Cap Value Funds: Then And Now

I really don't care what 5 recent years of SCV returns look like considering it took 14 years for the S&P index fund I lump summed into in 1998 to reach its original value. Not on a total return basis. Even if lumped at the very highest point in 1998, which was near the end of the year, the index r...
by Mako52
Sat Feb 02, 2019 10:49 pm
Forum: Investing - Theory, News & General
Topic: Small-Cap Value Funds: Then And Now
Replies: 74
Views: 9777

Re: Small-Cap Value Funds: Then And Now

I really don't care what 5 recent years of SCV returns look like considering it took 14 years for the S&P index fund I lump summed into in 1998 to reach its original value. Lump sum may work for some, may not for others. SCV may work for some, may not for others. Small caps are an ugly path to bette...
by Mako52
Wed Jan 16, 2019 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 802
Views: 82887

Re: Why are your NOT buying rental properties?

Because the realtors I know who owned multiple rental properties sold their rental units. That's telling.
by Mako52
Tue Jan 15, 2019 9:50 am
Forum: Personal Consumer Issues
Topic: Duffel Bag vs Wheeled Stand Up traveling
Replies: 78
Views: 4554

Re: Duffel Bag vs Wheeled Stand Up traveling

If I were flying from a small airport to another small airport for a few days, a carry on duffel bag definitely has its advantages. People underestimate what it would be like to carry a 20-25# weight on one shoulder connecting through a MegaAirport like CLT, IAD, ORD, AMS, FRA, etc. Add in a laptop,...
by Mako52
Mon Jan 14, 2019 10:56 am
Forum: Personal Finance (Not Investing)
Topic: Recast mortgage?
Replies: 28
Views: 3276

Re: Recast mortgage?

I did not phrase this well and flubbed a cell in my analysis. But the bottom line is that if your recast is small, you could potentially end up with a higher mortgage balance than you otherwise would if you choose to sell the home before the mortgage pays off entirely. In our case that recast amoun...