Search found 117 matches

by socialforums2019
Tue Oct 13, 2020 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Post-House Finance Calculation
Replies: 4
Views: 484

Re: Post-House Finance Calculation

Roth space is limited and valuable. Consider using a portion of the $100k to fully fund a Roth IRA for you and spouse(?). The earnings in a Roth IRA will grow tax free whereas earnings in a taxable account like a savings account are taxable each year. I am not advocating pre-retirement withdrawals ...
by socialforums2019
Tue Oct 13, 2020 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Post-House Finance Calculation
Replies: 4
Views: 484

Post-House Finance Calculation

Assessing different scenarios regarding homes and the impact to FIRE. Can you double check my goals and assumptions to see if there is anything missing? Post Purchase Goals: 1. After all bills are paid and we "pay ourselves" (e.g. fun events, date nights, etc.) the plan is to put enough down to have...
by socialforums2019
Sun Oct 04, 2020 8:34 am
Forum: Personal Finance (Not Investing)
Topic: What is your Target Savings?
Replies: 64
Views: 7913

Re: What is your Target Savings?

We don't have any number and don't allocate or put a job to it. Anything leftover goes into our joint taxable investment account and gets invested in broad market index funds. If our asset allocation gets imbalanced, then we rebalance in a tax-deferred account. So if/when you need to pay for thinks...
by socialforums2019
Sun Oct 04, 2020 8:02 am
Forum: Personal Finance (Not Investing)
Topic: What is your Target Savings?
Replies: 64
Views: 7913

Re: What is your Target Savings?

After maxing out 2x 401k, 1x 457, 1x 529, 2x backdoor roth ira and 1xHSA that's $83,600 of tax advantaged/deferred savings. So we save about $7k/mo tax adv/def, live off of about $6k/mo with ~85k/mo post tax income for a 93-94% savings rate. About $100k is kept in emergency fund/discretionary spend...
by socialforums2019
Sat Oct 03, 2020 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: What is your Target Savings?
Replies: 64
Views: 7913

What is your Target Savings?

Want to know how much is "left over" to be allocated to taxable, overall savings, emergency purchases, etc. Assumptions: You max out all retirement accounts (401K, Roth/Backdoor IRA, HSA if applicable) You have paid/allocated all of your Necessities and Wants For example: $10K post tax income, $5K N...
by socialforums2019
Sun Sep 27, 2020 11:53 am
Forum: Personal Investments
Topic: IRA or taxable (or other?)
Replies: 9
Views: 559

Re: IRA or taxable (or other?)

If neither you or your spouse have any existing traditional IRA monies hanging around you are in an excellent position to make Roth IRA contributions through the "backdoor" method. The advantage is that you would get a Roth IRA account with no future taxation, that's far better than a taxable accou...
by socialforums2019
Sun Sep 27, 2020 9:51 am
Forum: Personal Investments
Topic: Living Cash Invested?
Replies: 7
Views: 1198

Re: Living Cash Invested?

With your level of savings and the cushion provided by your cash and savings, you should be fine. It is hard to know what a conservative equity/bond mix will yield over the next decade but your plan is sound. Have you considered using a 529 plan for the funds earmarked for college in order to take ...
by socialforums2019
Sat Sep 26, 2020 10:51 pm
Forum: Personal Investments
Topic: Living Cash Invested?
Replies: 7
Views: 1198

Re: Living Cash Invested?

What are your annual expenses? what is your age? To me, it seems like you are far too conservative. Why hold so much in cash? Then again, perhaps you have multiple kids, a less stable career, and you already spend 15K a month so need the cushion. :confused In early 30s. Post home purchase numbers w...
by socialforums2019
Sat Sep 26, 2020 10:44 pm
Forum: Personal Investments
Topic: Living Cash Invested?
Replies: 7
Views: 1198

Re: Living Cash Invested?

Is this the right way to approach the cash and savings buckets? Should I just invest both the cash and bucket savings or leave one sitting in high interest savings account? I find your approach ultra conservative. If you save $1,500 per month (minimum of $18,000 per year) you’re doing well for your...
by socialforums2019
Sat Sep 26, 2020 7:30 pm
Forum: Personal Investments
Topic: Living Cash Invested?
Replies: 7
Views: 1198

Living Cash Invested?

For the past couple of years, I've put all additional savings into a high interest savings account as I've been saving up for a down payment. With the purchase of a new house and proceeds from the sale of current house, I am anticipating an inflow of $300-$400K. Consider my money in 4 buckets: 1. Ca...
by socialforums2019
Fri Sep 25, 2020 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Preparing for Large Sum of Money - Where to Allocate
Replies: 11
Views: 1783

Re: Preparing for Large Sum of Money - Where to Allocate

What is the ultimate goal for this money? Time horizon? Other assets you may own now or accumulate over time? Annual spending needs? The goal for this money is primarily another retirement bucket but I will also need to pull funds from this when the time comes to fund other major purchases (e.g. ki...
by socialforums2019
Fri Sep 25, 2020 6:59 am
Forum: Personal Finance (Not Investing)
Topic: Preparing for Large Sum of Money - Where to Allocate
Replies: 11
Views: 1783

Re: Preparing for Large Sum of Money - Where to Allocate

Thoughts on this strategy? Or should the money be associated as part of overall AA?
by socialforums2019
Thu Sep 24, 2020 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Preparing for Large Sum of Money - Where to Allocate
Replies: 11
Views: 1783

Re: Preparing for Large Sum of Money - Where to Allocate

Should these funds be invested in a taxable account per asset allocation and never touched for as long as possible? It doesn't have to be both halves of this sentence. You can invest per asset allocation but also touch the money whenever you want. You will have a larger expected return if you buy s...
by socialforums2019
Thu Sep 24, 2020 5:47 am
Forum: Personal Finance (Not Investing)
Topic: Preparing for Large Sum of Money - Where to Allocate
Replies: 11
Views: 1783

Re: Preparing for Large Sum of Money - Where to Allocate

Bumping this up in hopes to get some additional advice/guidance.
by socialforums2019
Wed Sep 23, 2020 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Preparing for Large Sum of Money - Where to Allocate
Replies: 11
Views: 1783

Re: Preparing for Large Sum of Money - Where to Allocate

Should these funds be invested in a taxable account per asset allocation and never touched for as long as possible? It doesn't have to be both halves of this sentence. You can invest per asset allocation but also touch the money whenever you want. You will have a larger expected return if you buy s...
by socialforums2019
Wed Sep 23, 2020 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Preparing for Large Sum of Money - Where to Allocate
Replies: 11
Views: 1783

Preparing for Large Sum of Money - Where to Allocate

Per a prior thread, I was contemplating putting the most down for a down payment to have the lowest mortgage v.s. a "mix" of both (e.g. 50% down instead of 90%). Should I move forward with putting just 50% down, after the sale of my current house, I will have an "excess" of around $500-$700K and wan...
by socialforums2019
Mon Sep 21, 2020 7:49 am
Forum: Personal Finance (Not Investing)
Topic: That Magic Number - Downpayment
Replies: 23
Views: 1845

Re: That Magic Number - Downpayment

Perhaps a new scenario which is "meet in the middle" $1.7M purchase 50% down ($850K) $850K loan Plan would be: - Invest $550K into conservative index fund with goal of average 5% growth YoY (e.g. Vanguard LifeStrategy Fund or other suggestions) - Keep liquid $150K emergency fund With the above numb...
by socialforums2019
Sun Sep 20, 2020 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: That Magic Number - Downpayment
Replies: 23
Views: 1845

Re: That Magic Number - Downpayment

Perhaps a new scenario which is "meet in the middle" $1.7M purchase 50% down ($850K) $850K loan Plan would be: - Invest $550K into conservative index fund with goal of average 5% growth YoY (e.g. Vanguard LifeStrategy Fund or other suggestions) - Keep liquid $150K emergency fund With the above numbe...
by socialforums2019
Sun Sep 20, 2020 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: That Magic Number - Downpayment
Replies: 23
Views: 1845

Re: That Magic Number - Downpayment

My goal, whether I put a large down payment or not, is to always have the ability to pay off the house at any moment I want to. socialforums2019, How does that help you? If you do not pay the property tax of the 1.4M house, you still lose the house. KlangFool I understand, but my concern isn't arou...
by socialforums2019
Sun Sep 20, 2020 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: That Magic Number - Downpayment
Replies: 23
Views: 1845

Re: That Magic Number - Downpayment

My goal, whether I put a large down payment or not, is to always have the ability to pay off the house at any moment I want to. socialforums2019, How does that help you? If you do not pay the property tax of the 1.4M house, you still lose the house. KlangFool I understand, but my concern isn't arou...
by socialforums2019
Sun Sep 20, 2020 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: That Magic Number - Downpayment
Replies: 23
Views: 1845

Re: That Magic Number - Downpayment

With the little information provided, I would personally put enough down to be at least cashflow positive (based on a 20-25 yr amortization of principle if that's your retirement date) for future savings or maintenance goals. Earmark the rest for FI. Need more info on expenses, income, job stabilit...
by socialforums2019
Sun Sep 20, 2020 10:52 am
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19637

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

To me, scenario 2 isn't comfortable to me even though I have $800K in cash. If I put that $700K in the market and then keep $100K in emergency funds, that would only grow to be $11,400/year ($950*12). Seems like one major home repair or unseen circumstance would wipe out a significant portion of th...
by socialforums2019
Sun Sep 20, 2020 9:26 am
Forum: Personal Finance (Not Investing)
Topic: That Magic Number - Downpayment
Replies: 23
Views: 1845

That Magic Number - Downpayment

This started as an off topic in another thread, so I wanted to start its own in respect to the OP. The discussion was around your down payment amount for a HCOL area. Here are the examples: Assumptions You have saved $1.4M for a down payment You have $300K in retirement funds. You will continue to m...
by socialforums2019
Sat Sep 19, 2020 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19637

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

Here are the two scenarios I'm seeing. Let's use example #s Scenario 1: $1.6M purchase, $1.4M down, $200K loan, $100K remaining in savings. Assuming income and bills stay constant the next 30 years, I would have ~$5K cash/mo "left over" to be used for whatever (investing, kids education, extra retir...
by socialforums2019
Sat Sep 19, 2020 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19637

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

Thanks! I feel good about this decision. I feel good about it because I did not spend $2M or $1.8M or even $1.7M. I felt like $1.2M was all I could stomach but because of where I live and wanting to buy something that COULD be our forever home I went up to $1.6M. It's still 20% of our after tax net...
by socialforums2019
Sat Sep 19, 2020 9:25 am
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19637

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

Thanks! I feel good about this decision. I feel good about it because I did not spend $2M or $1.8M or even $1.7M. I felt like $1.2M was all I could stomach but because of where I live and wanting to buy something that COULD be our forever home I went up to $1.6M. It's still 20% of our after tax net...
by socialforums2019
Fri Sep 18, 2020 7:25 am
Forum: Personal Finance (Not Investing)
Topic: Large Commission for Tax Consideration
Replies: 5
Views: 380

Large Commission for Tax Consideration

I have been fortunate this year with my job and I am trying to understand the tax implications. My employer withholds taxes to my commission checks, but I don't expect it to be enough and I am trying to determine what I need to do to avoid any tax penalties and/or surprises. For H2, my expected comm...
by socialforums2019
Wed Sep 16, 2020 6:50 am
Forum: Personal Finance (Not Investing)
Topic: Home Renovation - Cash Flow or Finance
Replies: 3
Views: 743

Home Renovation - Cash Flow or Finance

Will be doing a full renovation estimated around $250-$300K. I have the cash to cover this, but wondering what other options there are to consider and the pros/cons of doing cash over finance or vice versa.
by socialforums2019
Sun Sep 13, 2020 9:27 am
Forum: Personal Finance (Not Investing)
Topic: FIRE Calculator Accurate?
Replies: 13
Views: 1896

FIRE Calculator Accurate?

I'm preparing for some significant changes in life and modeling the financial impact for current cash flow and re-calculating FIRE. I've always been under the assumption that I wouldn't be able to FIRE so I was targeting retirement to be in another 25 years or so. With that said, running anticipated...
by socialforums2019
Sun Sep 13, 2020 8:26 am
Forum: Personal Investments
Topic: How much are your 529 Contributions
Replies: 133
Views: 7580

Re: How much are your 529 Contributions

Someone want to check my estimates calculations below? Please note that my numbers are "all-in" and includes tuition, on-campus housing, books and materials and misc fees. - Total current cost In state public: $40K/year Private: $73K/year - Anticipated cost in 16 years In state public: $59K/year Pri...
by socialforums2019
Sat Sep 12, 2020 1:08 pm
Forum: Personal Investments
Topic: How much are your 529 Contributions
Replies: 133
Views: 7580

Re: How much are your 529 Contributions

Total annual savings is $40-$50K on base salary. Retirement is funded $30-$32K annually by maxing out 401K and $12K additional taxable (Employer does 401K match, but haven't taken that into consideration in my numbers). I receive $30-$50K in additional savings which I don't take into account above....
by socialforums2019
Sat Sep 12, 2020 11:14 am
Forum: Personal Investments
Topic: How much are your 529 Contributions
Replies: 133
Views: 7580

Re: How much are your 529 Contributions

OP, The followings are the list of questions that you should ask. A) Can you afford to save for college education? Is your FI/Retirement fully funded? Would it be fully funded if you are permanently unemployed/under-employed in your 40s or 50s? B) Do you need to save for college education? i) If yo...
by socialforums2019
Sat Sep 12, 2020 10:35 am
Forum: Personal Investments
Topic: How much are your 529 Contributions
Replies: 133
Views: 7580

Re: How much are your 529 Contributions

OP, I do not contribute to 529. It makes zero financial sense for me. I pay my kids' college education out of my annual savings. KlangFool Might not be suitable for everyone but for those who earn above the limits for Roth contributions and have a state tax deduction, 529 plans offer tax free earni...
by socialforums2019
Sat Sep 12, 2020 10:23 am
Forum: Personal Investments
Topic: How much are your 529 Contributions
Replies: 133
Views: 7580

Re: How much are your 529 Contributions

KlangFool wrote: Sat Sep 12, 2020 10:17 am OP,


I do not contribute to 529. It makes zero financial sense for me. I pay my kids' college education out of my annual savings.


KlangFool
Interesting take. Care to elaborate on that?
by socialforums2019
Sat Sep 12, 2020 8:44 am
Forum: Personal Investments
Topic: How much are your 529 Contributions
Replies: 133
Views: 7580

How much are your 529 Contributions

Trying to find out a "logical" way to determine monthly 529 contributions. Ideally, would like to cover 100% of college cost (tuition, housing, dining, books) and just trying to see how much others are contributing and how they made that determination. Or if its better to do a portion in 529 and the...
by socialforums2019
Sun Aug 30, 2020 10:30 am
Forum: Personal Investments
Topic: Invest Excess Down Payment?
Replies: 1
Views: 189

Invest Excess Down Payment?

To give some context, I've always been conservative with investing money. Other than retirement contributions being invested, all savings is kept in cash. With that said, I took 7-8 months of EF and instead of having it in cash, invested it into a conservative Vanguard LifeStrategy fund with a 80/20...
by socialforums2019
Tue Aug 18, 2020 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Downpayment for House
Replies: 5
Views: 814

Downpayment for House

Few questions: 1. We currently have $5-$600K saved for a down payment. We have another $700K which would become available after the sale of our current home. What is the best strategy in utilizing this money? Should we put all down payment money down on the house or just do the standard 20%? Do we j...
by socialforums2019
Sat Aug 01, 2020 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Home Remodel/Renovation Costs
Replies: 14
Views: 1025

Re: Home Remodel/Renovation Costs

Maybe some additional clarifications 1. Bedroom addition We have a large lot (10k sq ft) and looking to build into the backyard to add a bedroom which will be used as a home office/guest room. 2. Wall removal The current floor plan is very split up. We are looking to remove 1-2 walls to open up the ...
by socialforums2019
Sat Aug 01, 2020 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Home Remodel/Renovation Costs
Replies: 14
Views: 1025

Re: Home Remodel/Renovation Costs

This will vary a lot depending upon locale. Mississippi or Beverly Hills? And, what is the vision regarding the upgrades? Simple/Basic or Tiffany? A pool could cost $15,000 or $250,000. I think you need to talk with local contractors to get a good feel for costs. We would be looking at "worst case ...
by socialforums2019
Sat Aug 01, 2020 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Home Remodel/Renovation Costs
Replies: 14
Views: 1025

Home Remodel/Renovation Costs

We are thinking of doing some renovations to the house and don't have any kind of experience in regards to the process and associated costs. Are you able to share your experience if you'd done any of the following: 1. Bedroom addition 2. Wall removal 3. Add pool + backyard landscaping 4. Bathroom re...
by socialforums2019
Sat Jul 11, 2020 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Savings Allocation
Replies: 8
Views: 549

Re: Advice on Savings Allocation

Definitely max 401k since you are not doing that yet. Are you also funding Roth IRAs for both of you? I think you are ok on the 529 and EF fronts. You are doing great on retirement as well, but looking at the updated info that’s the area I’d beef up first. 401k is being maxed for one of us. No 401K...
by socialforums2019
Sat Jul 11, 2020 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Savings Allocation
Replies: 8
Views: 549

Re: Advice on Savings Allocation

Based on the very little information you've offered, #1. But it makes a difference whether you have say $100K saved for retirement or $1M, at say, age 40. Consider using the template format another poster linked. The quality of advice you get on this forum is directly correlated with the quality of...
by socialforums2019
Sat Jul 11, 2020 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on Savings Allocation
Replies: 8
Views: 549

Advice on Savings Allocation

Have about $5K left over at the end of each month after covering the necessities (mortgage, bills, food, etc.) and wants (date nights, personal spending, sporting events, etc.) Can't decide what I want to do with this additional $5K (additional retirement, additional 529, additional payment to mortg...
by socialforums2019
Thu Jul 09, 2020 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Move from Bay Area?
Replies: 34
Views: 3637

Re: Move from Bay Area?

Have you considered living near the great lakes in the Midwest? I grew up in Kenosha, WI and lived there for a few years after graduating university. 80-100k gets you a well built 1950s house in a good neighborhood. If you want a house right on the lake with private beachfront, that is more expensi...
by socialforums2019
Thu Jul 09, 2020 8:18 am
Forum: Personal Finance (Not Investing)
Topic: Move from Bay Area?
Replies: 34
Views: 3637

Re: Move from Bay Area?

Much appreciated for the ongoing conversation here. To bullet a few items in the thread: 1. As with most in the Bay Area, we are in the tech industry 2. I believe post-COVID, companies will be more open in allowing a remote workforce, however this would mean first getting all the talent in the best ...
by socialforums2019
Wed Jul 08, 2020 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Move from Bay Area?
Replies: 34
Views: 3637

Re: Move from Bay Area?

We have some family friends in the El Dorado Hills area about an hour east of Sacramento near Folsom Lake. We come up from Southern California to visit about twice a year. It is very "suburbia" but I like it a lot. There are a lot of outdoor hiking / biking areas as well as Folsom Lake itself. It's...
by socialforums2019
Wed Jul 08, 2020 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Move from Bay Area?
Replies: 34
Views: 3637

Move from Bay Area?

We are looking to start a family and while we have established great friends/family/connections in the Bay Area, we no longer see the value of living directly in this area. We are contemplating exploring elsewhere in Northern California and wanted to see if there are any "hidden gems" you would sugg...
by socialforums2019
Sun Jul 05, 2020 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Affordability - HCOL
Replies: 12
Views: 787

Re: Calculating Affordability - HCOL

Review my categorizations and see if they align to the purpose of Necessities/Wants/Savings 50% Necessities - Consider these as requirements to "survive" Mortgage/Property Tax/Home Insurance Gas Internet Electricity Cell Phone TV Life Insurance Car Registration Auto Insurance Food (Home + eating out...
by socialforums2019
Sun Jul 05, 2020 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Affordability - HCOL
Replies: 12
Views: 787

Re: Calculating Affordability - HCOL

Assuming take home income is net taxes, benefits and maxing 401k, what is the target housing (principle, interest, insurance, prop tax) to take home income target? After bills and necessities, how much is ideal for putting towards additional retirement, 529 contributions and then just rainy day sav...
by socialforums2019
Sun Jul 05, 2020 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Calculating Affordability - HCOL
Replies: 12
Views: 787

Re: Calculating Affordability - HCOL

oldfort wrote: Sun Jul 05, 2020 11:37 am Do you live in California? If so, prop 13 means homeowners in CA can pay a lower percent of the market value of their property in taxes each year than homeowners in LCOL areas.
Yes, located in California