Search found 268 matches

by neverpanic
Wed Aug 05, 2020 2:33 am
Forum: Personal Finance (Not Investing)
Topic: Rental property investing and #'s explained (why real estate can be a great investment)
Replies: 124
Views: 7167

Re: Rental property investing and #'s explained (why real estate can be a great investment)

Here's a couple I purchased in the 2013-2016 timeframes Purchase price $62k (2014) Rehab $8k Property tax $2k/yr Rent $1000 Recent appraisal $140k Purchase price $52k (2016) Rehab $20k Property tax $2k/yr Rent $1100 Recent appraisal $180k. Purchase price $59k (2015) Rehab $15k Tax $1800/yr Rent $95...
by neverpanic
Tue Aug 04, 2020 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Custom Home Thoughts
Replies: 102
Views: 7089

Re: Custom Home Thoughts

You've done great in life. Even IF it was mostly luck, you have worked hard and been very smart to get where you are financially. It's entirely possible that the dream homestead replete with summer, holiday, and weekend visits from the kids and grandkids may never materialize, but if you don't build...
by neverpanic
Mon Aug 03, 2020 1:25 am
Forum: Personal Finance (Not Investing)
Topic: Buyer using Seller's Agent to Lower Fees - Questions
Replies: 18
Views: 1390

Re: Buyer using Seller's Agent to Lower Fees - Questions

Do you think I would have leverage to decrease the cost of the house if i agreed to use the seller's agent but negotiated with him/her to lower their total commission on the home? If a typical commission were 6%, meaning that 3% went to each agent, it seems like there would be room to move to 4% to...
by neverpanic
Mon Aug 03, 2020 1:19 am
Forum: Personal Finance (Not Investing)
Topic: Where do I start? need a money makeover...
Replies: 31
Views: 3233

Re: Where do I start? need a money makeover...

I don't even know where to begin unpacking this. If she's making ~700 and you're making ~350, I'm having trouble rationalizing taking her from the workforce completely. I don't know what will get you onto the same page about money, even if you were to agree to a post-nup. I'm also not the right pers...
by neverpanic
Sun Aug 02, 2020 1:41 am
Forum: Personal Finance (Not Investing)
Topic: How much home can I afford?
Replies: 42
Views: 3444

Re: How much home can I afford?

Why bother with house purchase, unless rental is more expensive? I don’t sense an emotional motive for home ownership. Whether intended or not, it really is a bet on the upside of SFO real estate appreciation. In such case, transactional cost of selling need to be considered and do a classic rent v...
by neverpanic
Fri Jul 31, 2020 2:29 am
Forum: Personal Finance (Not Investing)
Topic: I agree that Investing is better than paying off mortage but.....
Replies: 71
Views: 5809

Re: I agree that Investing is better than paying off mortage but.....

bg5 wrote:
Wed Jul 29, 2020 7:56 am
our combined income is around $150,000 and we live in a very low cost area.

we will continue to get 2% raises for life
If I like the job, I'm probably going to work until I'm a little older, even though I don't need to.
by neverpanic
Fri Jul 31, 2020 1:32 am
Forum: Personal Finance (Not Investing)
Topic: How much home can I afford?
Replies: 42
Views: 3444

Re: How much home can I afford?

Real estate values in SF are only going to increase over the next 20 years. I don't believe the posters warning you of what a dangerous investment it would be have been closely observing the Bay Area since ~2000. Even Oakland has condos selling north of $1M. If you're at all uncertain about the pros...
by neverpanic
Thu Jul 30, 2020 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford a second home?
Replies: 73
Views: 5614

Re: Can we afford a second home?

The problem is if you buy a vacation home, you are stuck going there for all vacations, because going somewhere else will mean spending money on a hotel when you already have an empty cabin. That's not what he said. He stated that the place they live is a lot more congested than when they moved in ...
by neverpanic
Thu Jul 30, 2020 11:53 am
Forum: Personal Investments
Topic: Portfolio Review Request -- looking to retire in 10 years at age 55
Replies: 24
Views: 1670

Re: Portfolio Review Request -- looking to retire in 10 years at age 55

retiredjg wrote:
Thu Jul 30, 2020 11:48 am
When you do retire, you should start doing Roth conversions of your pre-tax accounts so that you can whittle them down to a reasonable level before RMD's start.
I posted before seeing this reply. I learned most of it from you! ;)
by neverpanic
Thu Jul 30, 2020 11:50 am
Forum: Personal Investments
Topic: Portfolio Review Request -- looking to retire in 10 years at age 55
Replies: 24
Views: 1670

Re: Portfolio Review Request -- looking to retire in 10 years at age 55

You won! Hopefully the kids appreciate the work you've done and absorb the wealth-building lessons you are teaching. Also, I have investigated a back-door Roth IRA and it cannot work for us. I know nothing about retirement planning , but many high earners in their 40s expect to have high retirement ...
by neverpanic
Thu Jul 30, 2020 2:34 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford a second home?
Replies: 73
Views: 5614

Re: Can we afford a second home?

The problem is if you buy a vacation home, you are stuck going there for all vacations, because going somewhere else will mean spending money on a hotel when you already have an empty cabin. That's not what he said. He stated that the place they live is a lot more congested than when they moved in ...
by neverpanic
Thu Jul 30, 2020 12:03 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford a second home?
Replies: 73
Views: 5614

Re: Can we afford a second home?

We are looking at a mountain/vacation home in the 135k range. We have upper 6 figures in 401k / Ira accounts and about 350k in taxable. The area we now live In has gotten much more congested since we bought our house several years ago, but I would like to keep our current home for it’s proximity to...
by neverpanic
Wed Jul 29, 2020 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: Trust assets, liquidate prior to distribution?
Replies: 14
Views: 706

Re: Trust assets, liquidate prior to distribution?

You're the trustee, but there's no pressing need to do anything right now as you outline the situation. However, if you're of the firm belief there is a good chance that x will only be worth 0.9x when it's time for distributions, liquidate and preserve what's been built.
by neverpanic
Wed Jul 29, 2020 8:11 pm
Forum: Personal Investments
Topic: High net worth, volatility phobic investor seeking help
Replies: 84
Views: 5763

Re: High net worth, volatility phobic investor seeking help

Robot Monster wrote:
Wed Jul 29, 2020 2:11 pm
Please remember that volatility of any kind makes her crazy.
If avoiding volatility is the primary aim, have her sit in cash. A steady 2% annual loss over the next 50 years will more than allow her to meet her expenses, as described, without going broke.
by neverpanic
Wed Jul 29, 2020 7:50 pm
Forum: Personal Investments
Topic: Vanguard Total World Stock ETF (VT) Index for Kid
Replies: 32
Views: 1647

Re: Vanguard Total World Stock ETF (VT) Index for Kid

So I went to set up the account with my daughter online and at the end of the application I received a message that they could not verify my daughter's identity (even though we enter her SS#) and therefore we needed to print off the application and send it via physical mail to Vanguard for processi...
by neverpanic
Wed Jul 29, 2020 7:44 pm
Forum: Personal Investments
Topic: Critique my Roth IRA allocation
Replies: 6
Views: 602

Re: Critique my Roth IRA allocation

My question lies in wondering whether a fund is doing well overall or doing well recently. For example: some have told me to consider emerging markets. They've led growth back in the 00s. However, looking at SCHE's performance at any period of time (1/3/5/10/Since inception), it looks pretty... lac...
by neverpanic
Wed Jul 29, 2020 7:36 pm
Forum: Personal Investments
Topic: Getting rid of actively managed Mutual Funds
Replies: 25
Views: 2992

Re: Getting rid of actively managed Mutual Funds

semjaza wrote:
Sun Jul 26, 2020 12:36 pm
district approved vendors, so I don't even know if I can open a Roth if not through them.
You can open your IRA on your own with the financial institution of your choosing. Fidelity, Schwab, or Vanguard will make it easy for you.
by neverpanic
Wed Jul 29, 2020 7:20 pm
Forum: Personal Investments
Topic: 401(k) Investment Fund Options for Myself?
Replies: 11
Views: 628

Re: 401(k) Investment Fund Options for Myself?

I would look at the returns and go from there. With long time horizon I would go growth and aggressive period. I’m 53 and I’m still in that group. I would also go with half traditional and half Roth to start in your 401k. As you get older, you start to realize that you maybe in a higher tax bracket...
by neverpanic
Wed Jul 29, 2020 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Straight Talk Annuity
Replies: 93
Views: 5495

Re: Straight Talk Annuity

Yes, a MYGA in an IRA would be taxed exactly the same as a CD (or any other investment in an IRA, for that matter). All withdrawals from the IRA will be taxed as ordinary income when withdrawn. (Of course, unless it’s a Qualified Charitable Distribution.) What are the mechanics of adding a MYGA to ...
by neverpanic
Tue Jul 28, 2020 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Ready to Buy 1st House. Please help.
Replies: 7
Views: 556

Re: First Time Home Buyer. Need Some Advice.

If you're planning to have a family, try to move into the school district you'll want to be in now.
by neverpanic
Tue Jul 28, 2020 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: IRS lost taxes and is asking them to be resent. Wants "newly signed" copy?
Replies: 19
Views: 1656

Re: IRS lost taxes and is asking them to be resent. Wants "newly signed" copy?

Never assume that the IRS is using modern technology. The Individual Master File is still kept by an IBM mainframe. In fact, it's still stored on reel-to-reel magnetic tape. 100% 1) What does that mean they "can't find" the taxes? It as if they literally lost them. Well, that's exactly what they ar...
by neverpanic
Tue Jul 28, 2020 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Extra mortgage payments OR not
Replies: 52
Views: 4665

Re: Extra mortgage payments OR not

By using the bonds money to reduce the mortgage, you just bought a bond yourself that returns 4.1% interest after tax. Effectively, you still hold the same $amounts in the bonds and stocks. Mortgage rates are so low right now that I am unable to see any rationale for not moving to a 3.1-3.2% 30-yea...
by neverpanic
Tue Jul 28, 2020 12:58 am
Forum: Personal Finance (Not Investing)
Topic: Help with IRS Notice of Late Filing of Form 1065 for Tax year 2019
Replies: 4
Views: 622

Re: Help with IRS Notice of Late Filing of Form 1065 for Tax year 2019

HomeStretch wrote:
Mon Jul 27, 2020 7:10 pm
Thank you for your guidance! I researched the items you suggested and will draft a response to the IRS requesting a penalty abatement.
Do it while it's fresh in your mind is the only advice I can give here.
by neverpanic
Tue Jul 28, 2020 12:54 am
Forum: Personal Finance (Not Investing)
Topic: How to Get a Credit Card for an Irrevocable Trust
Replies: 5
Views: 883

Re: How to Get a Credit Card for an Irrevocable Trust

I'm trying to figure out how to get a credit card for a special needs trust for which I am one of two trustees. The trust has it's own EIN and no credit history, although it has money in it's own checking account. I don't mind using my credit worthiness to help get a credit card but when I die (and...
by neverpanic
Tue Jul 28, 2020 12:49 am
Forum: Personal Finance (Not Investing)
Topic: Loan from shareholder vs Capital Contribution
Replies: 1
Views: 252

Re: Loan from shareholder vs Capital Contribution

I'm assuming you have a successful business. It sounds like the business is young. Yes, they're effectively a wash. If you were audited today, you'd be fine.

HOWEVER, on a long-term basis, it's my opinion you'd rather have your initial investment clearly designated as a capital contribution.
by neverpanic
Mon Jul 27, 2020 11:08 pm
Forum: Personal Finance (Not Investing)
Topic: Tax deferral plan options for passive real estate LLC income?
Replies: 4
Views: 327

Re: Tax deferral plan options for passive real estate LLC income?

My spouse receives a significant amount of income from passive real estate investments, that are held in a family LLC (technically, a partnership to my understanding). She is not an active employee in the LLC, but due to her ownership interest receives a portion of the income each year. This income...
by neverpanic
Mon Jul 27, 2020 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: New Teen Driver Liability
Replies: 26
Views: 1814

Re: New Teen Driver Liability

oldfort wrote:
Sun Jul 26, 2020 3:03 pm
This might be a good reason to transfer ownership of the vehicle to your kid as soon as they turn 18.
I love and trust my daughter and she's a good driver, but when she hits 18, that vehicle's liability will shift away from me.
by neverpanic
Sun Jul 26, 2020 10:21 am
Forum: Investing - Theory, News & General
Topic: How did you determine risk tolerance?
Replies: 106
Views: 5932

Re: How did you determine risk tolerance?

Dear Bogleheads, I'm a beginner and new to investing. This will be my first experience as an investor during a Presidential Election year. If the philosophy is to stay the course and hold steadfast, how do you actually do that during a Presidential Election year? or during any other turbulence? I w...
by neverpanic
Sun Jul 26, 2020 9:30 am
Forum: Investing - Theory, News & General
Topic: China and Stocks
Replies: 34
Views: 1916

Re: China and Stocks

Robot Monster wrote:
Sun Jul 26, 2020 7:38 am
Ray Dalio calls for investors to back China or miss out on the next global empire
That's not how it works. You won't have to be first or even early to do well with your investments in China and other emerging markets.
by neverpanic
Sun Jul 26, 2020 9:07 am
Forum: Personal Finance (Not Investing)
Topic: New Teen Driver Liability
Replies: 26
Views: 1814

Re: New Teen Driver Liability

Good and timely thread for us. Question (not to derail): in the case of 2 cars and 3 drivers, is it best to put the teen as driver only on one of the cars (the one with the lowest premium and likely only one the teen would drive) rather than the entire policy? In our face-to-face meeting, my agent ...
by neverpanic
Sun Jul 26, 2020 1:35 am
Forum: Personal Finance (Not Investing)
Topic: Pros and cons of buying a big house
Replies: 60
Views: 5066

Re: Pros and cons of buying a big house

Anecdotally, most love the big house when they're younger and hate it when they're older. Anecdotally, I'm "most".
by neverpanic
Sun Jul 26, 2020 1:12 am
Forum: Personal Finance (Not Investing)
Topic: struggling to get a mortgage
Replies: 85
Views: 7309

Re: struggling to get a mortgage

i want to get in to real estate. i have assets good credit and no debt, but no w2 or 1099. my 2018 tax return was six figures. my 2019 was just 15K from dividends and interest. the banks aren't liking my no employment and inconsistent cash flow. i've looked in to hard money, but the rates from thes...
by neverpanic
Sat Jul 25, 2020 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: New Teen Driver Liability
Replies: 26
Views: 1814

Re: New Teen Driver Liability

First, can someone that has a teen driver tell me if their auto insurance doubled just by putting your teen on your policy? Yes. Does anyone know if someone should cover the total net worth or just assets that are not protected. Also, maybe I am mistaken thinking that the assets such as our primary...
by neverpanic
Sat Jul 25, 2020 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: Selling investment house to parents without big tax hit
Replies: 18
Views: 1097

Re: Selling investment house to parents without big tax hit

We are in California and the home is in Maine If we sold it we would have to pay federal and California state capital gains taxes You are going to check with your accountant to confirm, but you will have to report the sale and file a return in Maine. You will also report the sale in California, but...
by neverpanic
Fri Jul 24, 2020 5:13 pm
Forum: Investing - Theory, News & General
Topic: Does mutual fund with 10% return, 1% expense exist and make sense?
Replies: 7
Views: 747

Re: Does mutual fund with 10% return, 1% expense exist and make sense?

What crash? Aha, yes! let's see what morningstar says, shall we? Looking over the past 10 year (standard how morningstar starts) we find a $10,000 starting investment on 7/23/2010 was worth today: VTSAX $35,703.44 PRDGX $35,295.23 PRBLX 35,254.07 GTLOX $33,960.08 So the other three funds you're int...
by neverpanic
Fri Jul 24, 2020 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: This is what I will have. This is what I will need. Tax Advice? while I study BG Wikis
Replies: 25
Views: 1629

Re: This is what I will have. This is what I will need. Tax Advice? while I study BG Wikis

I am embarrassed to say I know nothing of the different IRAs, such as your suggested tIRA. Don't be embarrassed. The current IRA did not exist until you were in your late teens and you were already in your 40s before the Roth IRA was created. Like you, I'm immensely thankful for the knowledge bank ...
by neverpanic
Fri Jul 24, 2020 2:49 pm
Forum: Investing - Theory, News & General
Topic: Does mutual fund with 10% return, 1% expense exist and make sense?
Replies: 7
Views: 747

Does mutual fund with 10% return, 1% expense exist and make sense?

I feel like a newbie all over again. I'm a believer in VTSAX.

But PRDGX, PRBLX, and GTLOX seem like strong players to go with right after a crash. Am I misreading those tea leaves?
by neverpanic
Wed Jul 22, 2020 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: Attorney vs accountant, attorney fired
Replies: 9
Views: 2115

Re: Attorney vs accountant, attorney fired

The test is gross income of at least $600 or any amount of taxable income. Section 6012(a)(4): https://www.law.cornell.edu/uscode/text/26/6012. What's an ILT? Irrevocable living trust? Yes. My desire was to keep it simple while sorting out how I'd like to manage it moving forward. For now, it's set...
by neverpanic
Wed Jul 22, 2020 9:46 pm
Forum: Personal Investments
Topic: 24 Year Old With Options
Replies: 18
Views: 2943

Re: 24 Year Old With Options

Question:

Where/how did you learn all of this about investing and retirement? Your knowledge level is incredible.
by neverpanic
Wed Jul 22, 2020 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Attorney vs accountant, attorney fired
Replies: 9
Views: 2115

Re: Attorney vs accountant, attorney fired

The test is gross income of at least $600 or any amount of taxable income. Section 6012(a)(4): https://www.law.cornell.edu/uscode/text/26/6012. What's an ILT? Irrevocable living trust? Yes. My desire was to keep it simple while sorting out how I'd like to manage it moving forward. For now, it's set...
by neverpanic
Wed Jul 22, 2020 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Attorney vs accountant, attorney fired
Replies: 9
Views: 2115

Re: Attorney vs accountant, attorney fired

Attorneys are, in my experience, more risk averse than accountants. There are good reasons for filing the return (keep paper trail, contemporaneously prove the intent of transactions, start sol clock, etc.) For a simple filing, it can be worth the extra cost. All that said, why is your attorney pre...
by neverpanic
Wed Jul 22, 2020 1:36 am
Forum: Personal Finance (Not Investing)
Topic: Are we saving too much (for our needs)?
Replies: 35
Views: 3991

Re: Are we saving too much (for our needs)?

1) It's my opinion you are projecting too far out for your age. I'd suggest looking at a much shorter horizon. The world is too uncertain to know what job security means these days. 2) How does your partner feel about your frugality? If I had to guess, I would assume you are very much on the same pa...
by neverpanic
Tue Jul 21, 2020 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Attorney vs accountant, attorney fired
Replies: 9
Views: 2115

Re: Attorney vs accountant, attorney fired

You are correct, but I suspect the attorney may have had good reason to file the return. Did he not say why he was recommending it? Thanks for confirming. It was his position that having "significant assets" in the trust necessitated the return. This will sound unkind, but throughout the term of ou...
by neverpanic
Tue Jul 21, 2020 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Can I reject a rental application for too many people on the lease?
Replies: 39
Views: 3610

Re: Can I reject a rental application for too many people on the lease?

Can I legally say no, my max is 2 adults? The rental condo is in the state of Virginia. 1) Consult with a landlord-tenant lawyer in your state. This shouldn't cost more than $250 and will answer all your questions. 2) "3 adults" is not a federally-protected class. That's my legal argument to suppor...
by neverpanic
Tue Jul 21, 2020 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Attorney vs accountant, attorney fired
Replies: 9
Views: 2115

Attorney vs accountant, attorney fired

Quick trust question. It seems simple to me anyway. As I read the instruction and according to the accountant, IRS only requires trust (ILT) to file a return if the income is over $600. No income was produced by the trust the past 2 years, former attorney was pushing me to have the 1041 filed, becau...
by neverpanic
Tue Jul 14, 2020 3:01 am
Forum: Investing - Theory, News & General
Topic: Tesla becomes most valuable car company in the world
Replies: 150
Views: 13203

Re: Tesla becomes most valuable car company in the world

“ Almost 40,000 Robinhood accounts added shares of the automaker during a single four-hour span on Monday, according to website Robintrack.net, which compiles data on the investing platform that’s much beloved by day trading millennials.” https://finance.yahoo.com/news/ten-thousand-day-traders-hour...
by neverpanic
Mon Jul 13, 2020 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Helping my nephew out of his rut
Replies: 74
Views: 7714

Re: Helping my nephew out of his rut

I reticent about paying his 401K payments. I'll need to think about that for a bit. It would not hurt me financially but I'm not sure it helps fix anything. If you do it, you're doing it (in part) because you're not going to be here forever. ---------------------------------------------- If he has ...
by neverpanic
Sat Jul 11, 2020 12:02 pm
Forum: Personal Investments
Topic: Portfolio help - new investors late to the game
Replies: 18
Views: 1778

Re: Portfolio help - new investors late to the game

Funletter2020 wrote:
Sat Jun 20, 2020 5:45 pm
Emergency funds: 28 months of expenses (large because it includes possible down payment on a future house)
Where is this sitting right now?
by neverpanic
Fri Jul 10, 2020 11:47 am
Forum: Personal Finance (Not Investing)
Topic: For backdoor ROTH, is all tax due up front?
Replies: 58
Views: 2845

Re: For backdoor ROTH, is all tax due up front?

You can get around the income requirement by using the "back door" which is a two step process (contribute to tIRA, convert to Roth IRA). Do not confuse this back door process with a "Roth conversion". Similar, but not the same thing. You cannot get around the contribution limit. An individual can ...