Search found 40 matches

by AverageInvestor1982
Mon May 18, 2020 8:33 am
Forum: Personal Finance (Not Investing)
Topic: ESPP in the time of Coronavirus
Replies: 5
Views: 550

Re: ESPP in the time of Coronavirus

Yes, that seems to be what my plan administrator is telling me. If I do nothing, they will by the 10k shares on July 1, refund me about $1000 and then not allow me to buy any shares in the second half of 2020. Or, I could withdraw for the 1st half. and just take my $11k in cash. Then during the seco...
by AverageInvestor1982
Thu May 14, 2020 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: ESPP in the time of Coronavirus
Replies: 5
Views: 550

ESPP in the time of Coronavirus

I participate in my company's ESPP plan. I have been setting aside $815 per pay (26 pay periods per year) with the idea that every 6 months, my company would use the amount saved to purchase stock for me at a %15 percent discount. I sell the next day, take the profit and run. Today I got an email fr...
by AverageInvestor1982
Mon May 11, 2020 10:36 am
Forum: Personal Finance (Not Investing)
Topic: $5k - $7k to replace engine, or get something else? (loan on car)
Replies: 109
Views: 7008

Re: $5k - $7k to replace engine, or get something else? (loan on car)

I would press Acura (Honda) to address this as politely and firmly as I could. Even after their cars are out of warranty, they will usually at least pay for a percentage of the repair. They design and test their with the expectation they will go 200,000 mi, so I think they would be willing to pay up...
by AverageInvestor1982
Wed Feb 26, 2020 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Advice needed - personal loan or credit card balance transfer
Replies: 36
Views: 1539

Re: Advice needed - personal loan or credit card balance transfer

I guess I'm slow but I'm trying to understand the aversion to consolidating bills? If we put the credit cards away and put things into 1 single bill wouldn't we be paying less per month in interest? It's a good idea, but I'm guessing the general concern is that it will make it easier for you to fal...
by AverageInvestor1982
Wed Feb 26, 2020 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Advice needed - personal loan or credit card balance transfer
Replies: 36
Views: 1539

Re: Advice needed - personal loan or credit card balance transfer

Hey, kudos to you, for having the guts to get on this board bare your financial soul to a bunch of strangers. Job #1 is to really think about what you really want. Of course you want to get out of debt, but do you want it bad enough to make the kind of changes it's going to require? To give up how y...
by AverageInvestor1982
Wed Feb 26, 2020 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Help some first-timers with the home searching (and buying) process
Replies: 31
Views: 2525

Re: Help some first-timers with the home searching (and buying) process

Lots of good advice here already. (note) I just finished writing my post - sorry for writing a book, hopefully some of this is useful :) Some advice - I don't find realtors particularly helpful when searching. But they do sometimes have access to listings on Zillow. And sometimes different real esta...
by AverageInvestor1982
Tue Feb 25, 2020 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Thoughts on car financing
Replies: 54
Views: 4230

Re: Thoughts on car financing

I m not a car dealer , just an infrequent car buyer (8-10 years average life of our cars). But I know how business works and how profits are made. If somebody gets a below market loan of long duration, for a car, the increased profit to make up for the cheap loan comes from the sales price. Seems s...
by AverageInvestor1982
Mon Feb 24, 2020 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on car financing
Replies: 54
Views: 4230

Re: Thoughts on car financing

I took a 0% loan on a new car early last year. The price was already locked in so this was an additional incentive. I keep the loan on my spreadsheet as a negative bond, so I have to increase my bond position to keep a level allocation. The net effect is that I pay it off with bonds until it is gon...
by AverageInvestor1982
Mon Feb 24, 2020 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on car financing
Replies: 54
Views: 4230

Re: Thoughts on car financing

OP said can't afford to buy it outright so it doesn't really matter what the cash price is. My recent experience has been that this is irrelevant. I always negotiate the price first, regardless if I am paying cash or taking a loan. Moreover, dealerships can sometimes can a finders fee when their cu...
by AverageInvestor1982
Mon Feb 24, 2020 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on car financing
Replies: 54
Views: 4230

Re: Thoughts on car financing

Spending categories per Mint below. Mortgage is $2282 per month. And I get that Bogleheads are generally more conservative on spending than I am, but I'm not asking you to change your personal approach to your own budget. Keep in mind that about $6500 of last year's auto budget went to paying off my...
by AverageInvestor1982
Mon Feb 24, 2020 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on car financing
Replies: 54
Views: 4230

Re: Thoughts on car financing

Eeesh. Didn't mean to offend.

Perhaps moderate comments to "even at 1% I wouldn't take on more debt unless its an emergency."
by AverageInvestor1982
Mon Feb 24, 2020 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on car financing
Replies: 54
Views: 4230

Re: Thoughts on car financing

Its a 2011 Lincoln MKT. Needs a new Catalytic Converter, various other things are broken like cup holder, knobs, a seat back, etc. It's a daily driver for her and the family road-trip vehicle for the family. I get that it could be fixed and sent back into service, but at that many miles, for my wife...
by AverageInvestor1982
Mon Feb 24, 2020 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on car financing
Replies: 54
Views: 4230

Thoughts on car financing

Well, after almost 160,000 miles, DW's vehicle has just about had it. I'm looking around at Certified Pre Owned vehicles, and I noticed one vehicle has 0.99% apr financing up to 60 months. I can't afford to buy a vehicle outright, but I find my desire to pay a larger down payment severely diminished...
by AverageInvestor1982
Thu Jan 30, 2020 2:39 pm
Forum: Personal Investments
Topic: Last gasp of the bull
Replies: 118
Views: 18214

Re: Last gasp of the bull

Seems like this thread really raked OP over the coals. I don't agree with OP, but would have preferred a little more civility in the thread. The important take away to me is that if you have a strong desire to change your AA because you feel like the market will enter a downturn, you probably don't ...
by AverageInvestor1982
Tue Jan 07, 2020 12:42 pm
Forum: Personal Investments
Topic: Mortgage vs 401k Article Review
Replies: 7
Views: 1042

Re: Mortgage vs 401k Article Review

Thanks all, great perspectives!
by AverageInvestor1982
Mon Jan 06, 2020 11:11 am
Forum: Personal Investments
Topic: Mortgage vs 401k Article Review
Replies: 7
Views: 1042

Mortgage vs 401k Article Review

I came across this article online making the case that paying off your mortgage before maxing out your 401k makes sense for many, if not most, people. https://www.forbes.com/sites/baldwin/2020/01/05/7-rules-for-wealth-5-the-mortgage-mistake/#beda5527160e Has anyone read this? What are your thoughts?...
by AverageInvestor1982
Tue Dec 17, 2019 2:05 pm
Forum: Personal Investments
Topic: Should I pay off mortgage or invest?
Replies: 25
Views: 1888

Re: Should I pay off mortgage or invest?

I'm somewhat indifferent on whether to invest or to pay off. If it were me, I would try and project net worth after 10 years in both scenarios. Unknowns are the rate of return of the stock market, but also what the value of the house is after 10 years. As many people have said before me, they get a ...
by AverageInvestor1982
Fri Dec 06, 2019 2:28 pm
Forum: Personal Investments
Topic: Getting about 200k from parents
Replies: 46
Views: 5113

Re: Getting about 200k from parents

Take a flyer on bitcoin; it's nearly 60% off its high. What could go wrong? But seriously, if you are good with your current AA, no reason not to do the same with the new funds. If your fixed income investments are in tax advantaged accounts already, then you are good to go. I thought tulips were m...
by AverageInvestor1982
Fri Dec 06, 2019 10:55 am
Forum: Personal Investments
Topic: Would you refi this 30yr mortgage with a 10/1 ARM?
Replies: 32
Views: 1569

Re: Would you refi this 30yr mortgage with a 10/1 ARM?

If you take the 10-1 ARM, you will be almost $48,000 ahead after 10 years versus current. You'll be $400 ahead every month after you make this switch. After the 10 year period, there is obviously risk that you wouldn't be able to get a rate as low as 3.75%. There is also a chance the rates would go ...
by AverageInvestor1982
Mon Nov 18, 2019 9:34 am
Forum: Personal Investments
Topic: Maxing out 401k Savings
Replies: 6
Views: 645

Re: Maxing out 401k Savings

Thank you!
by AverageInvestor1982
Mon Nov 18, 2019 9:26 am
Forum: Personal Investments
Topic: Maxing out 401k Savings
Replies: 6
Views: 645

Maxing out 401k Savings

I'm finally able to save enough to meet - or at least come very close - to the $39,000 (for 2020) 401k limit for "married filing jointly." Do I need to save exactly $19,500 in both my wife' s and my 401k plan? Or can I balance however I want as long as the total stays at/under the limit for the year...
by AverageInvestor1982
Tue Nov 12, 2019 3:08 pm
Forum: Investing - Theory, News & General
Topic: Flaws with 4% Rule?
Replies: 37
Views: 5102

Flaws with 4% Rule?

Can Bogleheads help distill this paper down to it's elements and then provide a reaction to it? https://web.stanford.edu/~wfsharpe/retecon/4percent.pdf I find Bogleheads to be one of the best places on the web to explain complicated things in straightforward manner, and am hoping someone can work th...
by AverageInvestor1982
Wed Nov 06, 2019 10:43 am
Forum: Personal Finance (Not Investing)
Topic: HDHP comparison
Replies: 13
Views: 605

Re: HDHP comparison

What about physician networks and prescription drug coverage? Another thing to double check is if either of the plans have an “insured spouse surcharge” to cover a spouse that can be covered under another plan. If not, then yes your plan is cheaper. Her company charges a spousal surcharge, mine doe...
by AverageInvestor1982
Wed Nov 06, 2019 10:06 am
Forum: Personal Finance (Not Investing)
Topic: HDHP comparison
Replies: 13
Views: 605

Re: HDHP comparison

Thanks for the responses.

To clarify, the premium is bi-weekly, so 26 pay periods per year.

Wife Annual: $4992
My Annual: $4160
by AverageInvestor1982
Wed Nov 06, 2019 9:26 am
Forum: Personal Finance (Not Investing)
Topic: HDHP comparison
Replies: 13
Views: 605

HDHP comparison

I'm trying to choose between my Wife's company's HDHP and my HDHP. ------------------------------ Wife: - Husband: Premium ------------------ $192 --- $160 Deductible --------------- $2800 -- $3500 Out of pocket Maximum $5000 -- $6000 Co. HSA Match ------------ $0 ----- $1300 I can't find a calculat...
by AverageInvestor1982
Mon Nov 04, 2019 2:00 pm
Forum: Personal Investments
Topic: How much money is really needed in retirement?
Replies: 74
Views: 10211

Re: How much money is really needed in retirement?

Looking back over the past 42 years! ... I really enjoyed your story, Retired2013! Thanks for sharing. I started contemplating retirement savings more seriously when I turned 30 about 8 years ago. The idea of answering the question of "what will your expenses be when you retire?" made me laugh out ...
by AverageInvestor1982
Mon Nov 04, 2019 10:53 am
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 367
Views: 25440

Re: Holding bonds vs 100% equities

Watching this thread unfold has been really interesting. To "resolve" the debate I think a chart like KlangFool has put together would be useful, but extended into the future showing the hypothetical investor having to withdraw money due to retirement. Also, rather than using the average return for ...
by AverageInvestor1982
Thu Oct 10, 2019 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Is Alicia Munnell Wrong About Spousal Social Security Benefits
Replies: 19
Views: 2118

Re: Is Alicia Munnell Wrong About Spousal Social Security Benefits

I had never heard of this lady before, so I couldn't help but poke around. As I understand it, a married couple with a single breadwinner has a fictional (for the sake of round numbers) income of 1000. They contribute 100 automatically to social security. When they start collecting SS, they don't ju...
by AverageInvestor1982
Tue Oct 08, 2019 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Personal Capital website?
Replies: 26
Views: 3001

Re: Personal Capital website?

Anyone use this account aggregator service? While searching for aggregators, Personal Capital and Mint seemed to be the top two ones that kept coming up. I've just been using my Fidelity account up until now since it has this feature built-in, but it's kind of flaky, and doesn't want to work with a...
by AverageInvestor1982
Tue Oct 08, 2019 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Should I sell or hold [house]?
Replies: 31
Views: 3097

Re: Should I sell or hold [house]?

Anyone who still owns a 1987 Fiero has already won in my book and the rest is just gravy. :sharebeer Run the numbers for 10 years and see what poops out. My guesstimate is that the most likely outcome is that holding the house will be the best outcome financially. To an earlier poster "I'd rather ha...
by AverageInvestor1982
Mon Oct 07, 2019 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Should I sell or hold [house]?
Replies: 31
Views: 3097

Re: Should I sell or hold [house]?

$500k (value of house) -230k ( amt owed) = 270k (equity / invested) $600 a month profit * 12 months = $7200 a year or 7.2k $7.2k / $270 = 2.88% return on investment each year, which is pretty low. Just my line of thinking. If you like the location and want to go back there some day, or you like the...
by AverageInvestor1982
Mon Oct 07, 2019 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Psychologically adverse to start drawing down in retirement
Replies: 82
Views: 8884

Re: Psychologically adverse to start drawing down in retirement

Great topic, thanks for starting. As a 37 year old net-saver, I've already started thinking about this. The idea that one day the balance of my portfolio/net worth go down is a terrible thought to me. I intellectually understand the idea that the point of saving up money now is so that I have indepe...
by AverageInvestor1982
Mon Oct 07, 2019 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Should I sell or hold [house]?
Replies: 31
Views: 3097

Re: Should I sell or hold [house]?

My thoughts lean toward keeping both properties. Keep in mind you aren't just earning $600/month, you are also earning the principle applied to the mortgage every month, plus the combined mortgage interest deduction of having two mortgages. Having good tenants already is what really pushes me firmly...
by AverageInvestor1982
Thu Sep 19, 2019 12:18 pm
Forum: Personal Investments
Topic: Emp Stock Purchase vs 401k increase
Replies: 33
Views: 2496

Re: Emp Stock Purchase vs 401k increase

Thanks again to all for contributing to the topic. I really appreciate the thought and insight!
by AverageInvestor1982
Tue Sep 17, 2019 2:15 pm
Forum: Personal Investments
Topic: Emp Stock Purchase vs 401k increase
Replies: 33
Views: 2496

Re: Emp Stock Purchase vs 401k increase

Not to belabor the point, but you don't have an additional 10k to put into the espp. More like an additional 6,250 which gets you to the 25k in Fair market value of the shares. (25*.85)=21250..minus the 15k you already do. :sharebeer So your comment made me dive into the Plan Information Document p...
by AverageInvestor1982
Tue Sep 17, 2019 2:01 pm
Forum: Personal Investments
Topic: Emp Stock Purchase vs 401k increase
Replies: 33
Views: 2496

Re: Emp Stock Purchase vs 401k increase

GT99 Makes a great point. A hypothetical increase in the 401k program reduces my taxable income which saves me tax dollars in the current year. By not increasing my ESPP to it's max, i'm forgoing $1500 of total compensation. (The 15% on the additional $10k I could allocate). To do that, I would hav...
by AverageInvestor1982
Tue Sep 17, 2019 1:26 pm
Forum: Personal Investments
Topic: Emp Stock Purchase vs 401k increase
Replies: 33
Views: 2496

Re: Emp Stock Purchase vs 401k increase

GT99 Makes a great point. A hypothetical increase in the 401k program reduces my taxable income which saves me tax dollars in the current year. By not increasing my ESPP to it's max, i'm forgoing $1500 of total compensation. (The 15% on the additional $10k I could allocate). To do that, I would have...
by AverageInvestor1982
Mon Sep 16, 2019 3:44 pm
Forum: Personal Investments
Topic: Emp Stock Purchase vs 401k increase
Replies: 33
Views: 2496

Re: Emp Stock Purchase vs 401k increase

Have you calculated how much you would really save waiting the extra 18 months? For me, it worked out to something like $100 on a $10,000 contribution, so in my mind it was no brainer in my case to sell immediately. YMMV. Some say don't let the tax tail wag the dog. No - I emailed my tax accountant...
by AverageInvestor1982
Mon Sep 16, 2019 3:34 pm
Forum: Personal Investments
Topic: Emp Stock Purchase vs 401k increase
Replies: 33
Views: 2496

Re: Emp Stock Purchase vs 401k increase

Thanks for the replies already. There is no company stock in my 401k portfolios. The total value of the company stock in my ESPP might exceed 5% of my total holdings, but not by much, and not for long. I would convert it to something else as soon as I can without a tax penalty. Basically, at the abs...
by AverageInvestor1982
Mon Sep 16, 2019 10:26 am
Forum: Personal Investments
Topic: Emp Stock Purchase vs 401k increase
Replies: 33
Views: 2496

Emp Stock Purchase vs 401k increase

Hello! This is my first post on the site, so be gentle! My Scenario : My new employer offers an Employee Stock Purchase Program(ESPP). I can defer up to $25,000 of my annual income to this program. The deferral accrues for a 6-month period, and then executes a purchase to buy company stock at a 15% ...