Search found 245 matches

by babystep
Sat Nov 14, 2020 5:32 pm
Forum: Personal Investments
Topic: Cash out refi and invest?
Replies: 1
Views: 280

Re: Cash out refi and invest?

Plan to retire June 2021 @ 56 years old. 401k= $720,000 Pension will be about $490,000 $70,000 in personal savings wife will still be working makes $45,000 / year monthly bills = about $3700 currently Home loan: original $112,500 @4.125% for 20 years, note $691, bal = $72000. owe 10 more years. Hom...
by babystep
Sat Oct 03, 2020 12:40 am
Forum: Personal Investments
Topic: should I pay off mortgage or save for buying a new property?
Replies: 9
Views: 1291

Re: should I pay off mortgage or save for buying a new property?

I am so happy to find this forum. I currently have a mortgage about 230K, rate is 2.875%, 12 years remaining. My monthly payment is close to $3600 (including $600 interest, $600 escrow and $2400 towards principle) We have a proceeds from selling another house, about $280K. Given such a very low rat...
by babystep
Tue Sep 08, 2020 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund Question
Replies: 11
Views: 971

Re: Emergency Fund Question

Hi everyone, Looking to establish an emergency fund of $100,000. $75,000 in cash (Marcus savings account, currently 0.80% APY. $25,000 in VFISX (Short Term Treasury Fund Investor Shares) 1) What are your thoughts on this ratio? 2) Do you think a percentage of the cash portion should be placed in a ...
by babystep
Tue Sep 08, 2020 12:27 am
Forum: Personal Investments
Topic: "international" equity as in the three-fund portfolio
Replies: 25
Views: 2138

Re: "international" equity as in the three-fund portfolio

These days, this forum seems to see the "international" equity as in the three-fund portfolio as global equity ex US. But should it really be so? Historically, this is what I speculated what has happened. 20 years ago, I don't think "international" equity meant global equity ex ...
by babystep
Tue Sep 08, 2020 12:12 am
Forum: Personal Finance (Not Investing)
Topic: [thinking about buying a house in LA, wait for RE crash?]
Replies: 72
Views: 6031

Re: [thinking about buying a house in LA, wait for RE crash?]

Hello all, I am in the process of accumulating a decent downpayment on a home. I noticed that the real estate market has been solid during this crisis - and has even gone slightly up. So my question is - should I wait to see how things turn out with the RE market due to COVID, i.e. wait 6-18 months...
by babystep
Tue Sep 08, 2020 12:04 am
Forum: Personal Investments
Topic: 529 investment for California resident
Replies: 17
Views: 1839

Re: 529 investment for California resident

The correct web-site is www.scholarshare529.com. I would leave UTMA as it is and contribute separately 30k. I don't think it has to be a direct transfer from grandpa's account. Think of someone giving money for birthday for the kid and then you depositing it into the 529. Why leave UTMA as it is? I...
by babystep
Mon Sep 07, 2020 8:44 pm
Forum: Personal Investments
Topic: 529 investment for California resident
Replies: 17
Views: 1839

Re: 529 investment for California resident

Hi, "529 for CA" has been discussed multiple times on this forum. But I had some specific Qs for my situation. Hence this post. I don't have 529 plan yet. But looking to open one this year. My son is 13, and entered 7th grade this year. I already have taxable & retirement accounts wit...
by babystep
Mon Sep 07, 2020 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund vs. Debt Paydown
Replies: 21
Views: 1379

Re: Emergency Fund vs. Debt Paydown

I think the thing I’m struggling with is being newly divorced and I’m not sure if I should keep extra cash on hand knowing my son has needs with his care that sometimes incur extra expenses. I’m contributing to get 3% match in 401k, my employer also contributes additional 7% profit sharing. Aha 401...
by babystep
Mon Sep 07, 2020 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund vs. Debt Paydown
Replies: 21
Views: 1379

Re: Emergency Fund vs. Debt Paydown

I’m 35 year old divorced males with 3 year old son. Income: 70-75k Debt: 26k Student Loans, $15k high interest credit card/personal loan debts. $6k emergency fund at CIT bank. I inherited the $15k debt in divorce settlement, it’s debt I was unaware my ex spouse was taking out. With online savings a...
by babystep
Mon Sep 07, 2020 4:14 pm
Forum: Investing - Theory, News & General
Topic: cash covered put, TLH and wash sale
Replies: 1
Views: 146

cash covered put, TLH and wash sale

Hi, Let us say you sell cash covered put to buy SPY at a strike price of $350 and the current market price is $357 and you collect the premium of $7. I am just making up these numbers so don't look too much into the actual % return. If after one week later the same option is trading at $16 then you ...
by babystep
Sun Sep 06, 2020 11:59 pm
Forum: Personal Investments
Topic: Taxable accounts vs HYSA
Replies: 5
Views: 481

Re: Taxable accounts vs HYSA

Hi, Is it a good idea to leverage taxable accounts to deposit small amounts every month vs using HYSA for down payment. I plan to buy a house in next 1/2 years and have been saving all of the amount in either HYSA or CD accounts. I understand that it is not ideal to put money for major expenses suc...
by babystep
Sun Sep 06, 2020 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: geico stillwater home insurance and fees
Replies: 7
Views: 600

Re: geico stillwater home insurance and fees

Sounds like renewal/policy fee is a common thing. The price hasn't changed much for me. I didn't hear anyone saying that price is outrageous so I will likely continue with Geico. Thanks, everyone.
by babystep
Sun Sep 06, 2020 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: Any gaps in our thinking?
Replies: 46
Views: 3561

Re: Any gaps in our thinking?

You can easily get a loan of 500k from interactive brokers for maybe 1%. This would likely save you in taxes in two dimensions 1) no capital gains tax 2) deduct the interest on this loan against the investment income. Have you ever done it? This sounds too good to be true. What's the catch? I will ...
by babystep
Sun Sep 06, 2020 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Any gaps in our thinking?
Replies: 46
Views: 3561

Re: Any gaps in our thinking?

Looking for community feedback on our thought process. Ages Him: 42 yrs Her: 40 yrs 2 kids: 11 & 7 Income Him - 200K Her - 110K Debt: 100K Mortgage on 400K townhouse No other debt Education Expenses 100K for each child in 529. No plans to add more Current Expenses 95K/yr all in. NW - 4.5M 2.3M ...
by babystep
Sun Sep 06, 2020 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Any gaps in our thinking?
Replies: 46
Views: 3561

Re: Any gaps in our thinking?

Looking for community feedback on our thought process. Ages Him: 42 yrs Her: 40 yrs 2 kids: 11 & 7 Income Him - 200K Her - 110K Debt: 100K Mortgage on 400K townhouse No other debt Education Expenses 100K for each child in 529. No plans to add more Current Expenses 95K/yr all in. NW - 4.5M 2.3M ...
by babystep
Sun Sep 06, 2020 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Should I be aggressively paying down mortgage to ditch PMI instead of investing in taxable account?
Replies: 24
Views: 1781

Re: Should I be aggressively paying down mortgage to ditch PMI instead of investing in taxable account?

- 6 months’ expenses in emergency fund. - Maxing out retirement contributions. - Funding a taxable account after that. - No debts aside from mortgage. - 24% tax bracket. A monthly expense I had basically forgotten about until recently is my PMI. I got a conventional 30-year fixed loan with only 3.5...
by babystep
Sun Sep 06, 2020 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19783

Re: How Much House Can We Afford in HCOL Area?

OP In today's mortgage market, 1.5 m loan costs about 5.8k in principal and interest. Add about 2.5k for taxes and insurance on a 2m home. Total PITI costs are close to 8.3k or 100k annual What is the AGI on your 2018 and 2019 tax returns? I saw in a recent post that your income was 260k. Is that r...
by babystep
Sat Sep 05, 2020 6:54 pm
Forum: Personal Finance (Not Investing)
Topic: geico stillwater home insurance and fees
Replies: 7
Views: 600

geico stillwater home insurance and fees

Hi, I got a renewal quote from the Geigo/StillWater Insurance Group for my home. They are charging $680 per year and the deductible is $2500. About $600 out of $680 is for Coverage A dwelling $357k in the bay area. They are charging $30 for Renewal Offer Fees. Do other homeowners insurance companies...
by babystep
Sat Sep 05, 2020 11:26 am
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19783

Re: How Much House Can We Afford in HCOL Area?

A decline in the future value of housing in the Bay Area has always been something that belongs right around the bottom of the list of things to worry about in life. Talk like that should scare people. A lot of the high house prices, all over the country are fuelled by the low interest rates. The B...
by babystep
Sat Sep 05, 2020 1:45 am
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19783

Re: How Much House Can We Afford in HCOL Area?

A decline in the future value of housing in the Bay Area has always been something that belongs right around the bottom of the list of things to worry about in life. Talk like that should scare people. A lot of the high house prices, all over the country are fuelled by the low interest rates. The B...
by babystep
Thu Sep 03, 2020 12:19 am
Forum: Personal Investments
Topic: How to invest for my house?
Replies: 7
Views: 693

Re: How to invest for my house?

My wife and I want to finance a house, likely 5+ years in the future. We make about $50k/yr before taxes as of now, and my income is likely to increase within the next few years. We have $1000 saved up in cash for the house and it occured to me that if we're going to save up $30,000 that we could i...
by babystep
Wed Sep 02, 2020 11:47 pm
Forum: Personal Investments
Topic: Worth the hassle to open an HSA in California?
Replies: 60
Views: 6585

Re: Worth the hassle to open an HSA in California?

I live in CA. Is it worth the hassle to open an HSA? My employer contributes $750 a year to the plan. Stats Tax Filing Status: Single, no kids Tax Rate: 35% Federal, 9.3% State State of Residence: California Age: 31 Asset allocation: 80% stocks / 20% bonds all in a three fund portfolio consisting o...
by babystep
Wed Sep 02, 2020 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: Taxable Account Question?
Replies: 13
Views: 975

Re: Taxable Account Question?

Our other incomes are: Pensions (2) for $30K Gross Soc Sec (2) for $37K Gross Rental Income $28K Gross ($20K Net) The original Taxable amount was $110K vs $160K currently Thanks, I am not a tax expert but I will throw out the numbers and some other experts may correct if I have misunderstood. You c...
by babystep
Fri Aug 28, 2020 1:32 am
Forum: Personal Finance (Not Investing)
Topic: Tax question for refi cash-out for primary or investment property
Replies: 11
Views: 615

Re: Tax question for refi cash-out for primary or investment property

Wondering how you came up with $208K unless it was just mistyped. Rental properties are not my primary job. I don't know if QBI applies to me but I still think the whole interest from my rental mortgage gets deducted. After new itemized deduction limits, I think, interest from primary does not play...
by babystep
Tue Aug 25, 2020 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question for refi cash-out for primary or investment property
Replies: 11
Views: 615

Re: Tax question for refi cash-out for primary or investment property

Hi all I want to refi my rental. I have 5% and have 128 payments left with the principal $133K. My primary property has a principal of $95K at 3.25% with 16 years left. The rental has a value of $350K for sure. The primary property value is $290K with a little bit of pushing. I'm debating if I shou...
by babystep
Sun Aug 23, 2020 12:03 am
Forum: Personal Finance (Not Investing)
Topic: Buy or Rent?
Replies: 8
Views: 985

Re: Buy or Rent?

Hi all, I work at a bank and have access to a special employee mortgage but not sure if I should buy a home or stay put. Current situation: - I live in a mobile home park, and we own our manufactured home free and clear. Purchased 3 years ago and estimated value today is $300k. The rent for the lot...
by babystep
Sun Aug 16, 2020 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Pay down Mortgage on investment properties bad idea?
Replies: 14
Views: 1471

Re: Pay down Mortgage on investment properties bad idea?

I would probably not pay off the rentals which generate the income and causes the tax in the high brackets. I would rather put 400k into the S&P 500. It is more tax-efficient due to long-term capital gains. It will generate additional cash flow of 8k = 2% of 400k. Your RMDs will be quite high a...
by babystep
Sun Aug 16, 2020 12:44 am
Forum: Personal Finance (Not Investing)
Topic: Pay down Mortgage on investment properties bad idea?
Replies: 14
Views: 1471

Re: Pay down Mortgage on investment properties bad idea?

Depends on what you would do with the extra cash. If "invest in bonds" see grabiner's analysis. If "invest in stocks", or "invest in more real estate," etc., then you could have higher expected, but not guaranteed, returns by using the money that way. Do you have a des...
by babystep
Sun Aug 16, 2020 12:12 am
Forum: Personal Finance (Not Investing)
Topic: Economics of buying rental home
Replies: 28
Views: 2352

Re: Buying home for adult child vs renting apartments

College age child currently rents an apartment and we pay rent. About $900/mo for one bedroom. She lives in same city as us, fairly close. I'm starting to wonder if buying place instead makes sense. Can find decent looking homes in local area, close to our house, for $225k to $240k. To finance that...
by babystep
Sun Aug 09, 2020 4:26 pm
Forum: Personal Investments
Topic: How to withdraw Roth IRA contribution at Fidelity (contribution only)?
Replies: 15
Views: 2118

Re: How to withdraw Roth IRA contribution at Fidelity (contribution only)?

Background: I am a 45-year-old Californian. I contributed $3,000 to a Roth IRA at Fidelity in 2004. It's $70K today. In the future, I may wish to withdraw the contribution before reaching age 59 & 1/2. I contacted Fidelity about how to withdraw only my contribution, and I was told Fidelity does...
by babystep
Sun Aug 09, 2020 4:14 pm
Forum: Personal Investments
Topic: Taxation of long and short term capital gains in a high-tax state
Replies: 34
Views: 1821

Re: Taxation of long and short term capital gains in a high-tax state

I'm a resident of beloved state of California. A high income earner. Marginal tax rate is 35% (not the highest bracket, but the one below). (Corresponding LTCG tax rate is 15% .) My CA state tax bracket is 12.3% . (not the highest bracket, but the one below.) I avoid selling stocks (company RSUs, a...
by babystep
Sun Aug 09, 2020 10:43 am
Forum: Personal Finance (Not Investing)
Topic: consolidating accounts to Fidelity
Replies: 9
Views: 1298

Re: consolidating accounts to Fidelity

Your responses have been a tremendous help. Thank you so much.
by babystep
Sat Aug 08, 2020 1:28 am
Forum: Personal Finance (Not Investing)
Topic: consolidating accounts to Fidelity
Replies: 9
Views: 1298

consolidating accounts to Fidelity

Hi, I am thinking of moving several accounts: brokerage, IRA, Roth IRA, etc. into Fidelity. My check-list It should transfer in-kind without triggering any tax. I will check with the Fidelity whether there are any cash rewards for moving the funds. There is a 2% cashback credit card which could go t...
by babystep
Thu Aug 06, 2020 7:58 pm
Forum: Personal Investments
Topic: 529 plan | H1B Visa holder
Replies: 16
Views: 1597

Re: 529 plan | H1B Visa holder

I am also on H1B from India. I did research about this topic 5 years ago and decided to not put money in 529 plan. here is why 1. If I go back to India, I cannot use this money towards kids higher education in India. Each eligible school outside of US must have IRS tax ID to qualify for this. US ha...
by babystep
Thu Aug 06, 2020 12:59 am
Forum: Personal Finance (Not Investing)
Topic: second home or primary home?
Replies: 3
Views: 533

Re: second home or primary home?

Thank you such much. MrJedi and JGoneRiding.
by babystep
Thu Aug 06, 2020 12:48 am
Forum: Personal Finance (Not Investing)
Topic: Why do Roth 401k when MBR is an option?
Replies: 48
Views: 3339

Re: Why do Roth 401k when MBR is an option?

Your calculation and thereby the conclusion is wrong. You didn't take into account the inflation adjustment to the tax rates. The 24% single income limit of 163k after 47 years with inflation of 2% adjustment will be 414k income. Do real returns not adjust for inflation? Everything should be in 202...
by babystep
Thu Aug 06, 2020 12:40 am
Forum: Personal Investments
Topic: Refi to pay off house or invest
Replies: 10
Views: 1214

Re: Refi to pay off house or invest

I would prefer Refinance Scenario #1: and contribute to tax advantage accounts as much as possible.
I would even consider 30year terms that allows me to contribute more.
by babystep
Thu Aug 06, 2020 12:26 am
Forum: Personal Finance (Not Investing)
Topic: Why do Roth 401k when MBR is an option?
Replies: 48
Views: 3339

Re: Why do Roth 401k when MBR is an option?

Your calculation and thereby the conclusion is wrong. You didn't take into account the inflation adjustment to the tax rates. The 24% single income limit of 163k after 47 years with inflation of 2% adjustment will be 414k income. Do real returns not adjust for inflation? Everything should be in 202...
by babystep
Thu Aug 06, 2020 12:04 am
Forum: Personal Finance (Not Investing)
Topic: Why do Roth 401k when MBR is an option?
Replies: 48
Views: 3339

Re: Why do Roth 401k when MBR is an option?

After reading everyone's feedback I discovered I didn't really know my situation, and I was still concerned with RMDs. I'm a fan of seeing the numbers for myself so I wrote a little program to spit out a bunch of variants. Variables are interest_rate={1.04,1.05,1.06,1.07} (all real rates) and years...
by babystep
Wed Aug 05, 2020 10:13 pm
Forum: Personal Investments
Topic: 529 plan | H1B Visa holder
Replies: 16
Views: 1597

Re: 529 plan | H1B Visa holder

Hi All, I am trying to understand if investing with 529 plan for my daughter makes much sense to me or not. I am on H1B and can't predict what is the future down the line in next 2-3 years. I want to have some flexibility once she is ready for the college. I have the following 2 options. Invest in ...
by babystep
Wed Aug 05, 2020 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: second home or primary home?
Replies: 3
Views: 533

second home or primary home?

Hi, One has home1 where they live currently and paying the mortgage. If they buy home2 and start living in the home2 permanently and then home1 is rented out. Would the mortgage on home2 be considered primary residence mortgage ? I heard that rates on a second home mortgage can be slightly higher th...
by babystep
Wed Aug 05, 2020 12:44 am
Forum: Personal Finance (Not Investing)
Topic: Why do Roth 401k when MBR is an option?
Replies: 48
Views: 3339

Re: Why do Roth 401k when MBR is an option?

Ok, if that is the case then you should contribute to Roth instead of 401k. Just remember that when you choose to not contribute 19,500 to 401k then you are paying $4680 every year to IRS rather than putting that $4680 into your own pocket. Well that feels a bit disingenuous. Taxes are going to hav...
by babystep
Mon Aug 03, 2020 2:50 am
Forum: Personal Finance (Not Investing)
Topic: 8 years into 30 year fixed mortgage - refi?
Replies: 9
Views: 1198

Re: 8 years into 30 year fixed mortgage - refi?

My mortgage is at exactly 8 years into 30 year fixed at 3.625%. I can refinance with 2.75% at 30 years. This will reduce my monthly payment by about $500. Obviously, this will reset the loan by 8 years. My new loan will cost $13,000 more in interest at the end of 30 years. If I continue to pay what...
by babystep
Sun Aug 02, 2020 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Why do Roth 401k when MBR is an option?
Replies: 48
Views: 3339

Re: Why do Roth 401k when MBR is an option?

There is a saying: don't count your chickens before they hatch . Yeah good advice. I try my best not too. It is a long time period so anything can happen between now and age 72. Even if you take the optimistic scenarios, MFJ 24% tax bracket is up to $321,450 per year income. It will adjust upwards ...
by babystep
Sun Aug 02, 2020 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: More than $500K profit on sale of primary residence
Replies: 24
Views: 3239

Re: More than $500K profit on sale of primary residence

Flora wrote: Sun Aug 02, 2020 10:44 am Invest the $300k gain piece into a Qualified Opportunity Zone to defer the gain and reduce the taxable portion. Consider any state tax implications.
+1. https://www.irs.gov/credits-deductions/ ... -questions
by babystep
Sun Aug 02, 2020 5:56 pm
Forum: Personal Finance (Not Investing)
Topic: Why do Roth 401k when MBR is an option?
Replies: 48
Views: 3339

Re: Why do Roth 401k when MBR is an option?

This is the order for most cases. 401k, HSA, IRA/Roth IRA/Backdoor, After-Tax/MBR . https://www.bogleheads.org/wiki/Prioritizing_investments In your tax bracket, I will do it in the above order. +1 Agreed. I guess I'm just a bit afraid of having too much in pre-tax accounts. With my current contrib...
by babystep
Sun Aug 02, 2020 2:40 am
Forum: Personal Finance (Not Investing)
Topic: Why do Roth 401k when MBR is an option?
Replies: 48
Views: 3339

Re: Why do Roth 401k when MBR is an option?

Thanks. I've read the page before. There's a ton of good information in there! It's part of the reason I'm wanting to switch contributions from Traditional to Roth. From the "maxing out your retirement accounts" section: The IRS contribution limits do not distinguish between Traditional (...
by babystep
Sat Aug 01, 2020 12:36 am
Forum: Personal Finance (Not Investing)
Topic: Buy this house, or stay put?
Replies: 11
Views: 1198

Re: Buy this house, or stay put?

Long time lurker... Want an opinion from the BH community.. Buy or no? Situation: Married, 2 kids (4, 2), wife pregnant with twins Currently: Live in a 3BR, 2BR, 2000 sq ft. Owe $340K on mortgage, approximately have $200K+ in equity (Zillow would say $255K) Income: Single, wife SAHM, approximately ...
by babystep
Fri Jul 31, 2020 11:08 pm
Forum: Personal Investments
Topic: Gifts to a minor: UTMA, 529, or parent held brokerage
Replies: 8
Views: 772

Re: Gifts to a minor: UTMA, 529, or parent held brokerage

A relative asked me recently, about setting up a brokerage account for my soon to be 3 year old so that he could gift him some funds (maybe $100) to be invested. The main point would be providing funds that are his to eventually show him how investments work, and the power of long term growth. In g...
by babystep
Fri Jul 31, 2020 2:34 am
Forum: Personal Finance (Not Investing)
Topic: Another refinance thread..
Replies: 20
Views: 1626

Re: Another refinance thread..

Got a 2.875% rate on LenderFi with $0 cost. Going for it. Loan amount 200K on a 1.1M property. I guess would be nice to be able to say that the home is paid off so it does sadden me a little - defeat? but the fact that is, the mortgage payment will now be just about 50% of the total housing cost. T...