Search found 6677 matches

by delamer
Wed Jan 16, 2019 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage: 15 vs 30 year
Replies: 56
Views: 4116

Re: Mortgage: 15 vs 30 year

I would opt for the 30 year mortgage. I am a retired mortgage banker, and saw many folks struggle with the higher payments of the 15 year mortgage. The struggles usually begin with job loss or income reductions during a recession, or other family difficulty. Refinancing to 30 years can often be dif...
by delamer
Mon Jan 14, 2019 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 79
Views: 7582

Re: Pay off a 30 year mortgage in 15 years? The cost of flexibility

I wonder if anyone has addressed this choice (among other mortgage choices) vis-a-vis how the various options will touch the FAFSA. If I'm attempting to be light in a taxable account for FAFSA, having additional home equity will obviously trump additional investments outside of pre- or non-taxed sp...
by delamer
Mon Jan 14, 2019 6:01 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement portfolio
Replies: 14
Views: 1405

Re: Retirement portfolio

I solved part of this by asking my wife to "take over" most of the bill paying task about 14 years ago. I did this so she would know how to manage stuff if something happened to me. It was tough at first but she has done OK for years. She uses Quicken to keep track of checks and all the money in he...
by delamer
Mon Jan 14, 2019 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage: 15 vs 30 year
Replies: 56
Views: 4116

Re: Mortgage: 15 vs 30 year

Why not a 7 or 10 year ARM? Lower interest rate than both the 15 and 30 years. I agree with this suggestion. If you are set on a fixed rate mortgage, then I’d go with the 30 year since you plan to sell the house way before either loan would be paid off. The caveat is that you actually do invest the...
by delamer
Mon Jan 14, 2019 11:45 am
Forum: Personal Consumer Issues
Topic: Disciplined with finances, but not so with diet
Replies: 217
Views: 9745

Re: Disciplined with finances, but not so with diet

For people who track calories, how do you handle foods where there's no reliable way to know how many calories there are? Occasionally I get motivated to track my calories, but then I immediately hit a food where I can't tell, and I get frustrated. Example: For lunch I want to have a serving of an ...
by delamer
Mon Jan 14, 2019 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage: 15 vs 30 year
Replies: 56
Views: 4116

Re: Mortgage: 15 vs 30 year

Why not a 7 or 10 year ARM? Lower interest rate than both the 15 and 30 years. I agree with this suggestion. If you are set on a fixed rate mortgage, then I’d go with the 30 year since you plan to sell the house way before either loan would be paid off. The caveat is that you actually do invest the...
by delamer
Mon Jan 14, 2019 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Retirement portfolio
Replies: 14
Views: 1405

Re: Retirement portfolio

I would use the LifeStrategy fund because I have strong preference for index funds v. actively managed funds. The former would be easier to explain to your wife, as in “it invests in 4 categories and you’ll always get the market return for each category. That’s what I did when I took care of the mon...
by delamer
Mon Jan 14, 2019 11:16 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage: 15 vs 30 year
Replies: 56
Views: 4116

Re: Mortgage: 15 vs 30 year

Why not a 7 or 10 year ARM? Lower interest rate than both the 15 and 30 years. I agree with this suggestion. If you are set on a fixed rate mortgage, then I’d go with the 30 year since you plan to sell the house way before either loan would be paid off. The caveat is that you actually do invest the...
by delamer
Mon Jan 14, 2019 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Took on too much mortgage, seeking advice on where to put money going forward
Replies: 46
Views: 5217

Re: Took on too much mortgage, seeking advice on where to put money going forward

Thank you all. I will look into each piece of advice. Here is a breakdown of my monthly income/expenses after my mortgage. Can you explain more how to deduct mortgage interest and taxes to lower my tax bill? 9167 (monthly pre tax income) - 2094 taxes - 732 401k contribution = 6341 (monthly post tax...
by delamer
Mon Jan 14, 2019 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Quicken External Transfers
Replies: 20
Views: 720

Re: Quicken External Transfers

I find it annoying how my entire mortgage payment doesn't show as an "expense", only the interest part. The principal part reduces the loan balance, and isn't an "expense". Yet I need to pay that money out each year. Would like to be able to say to include it. You could configure Quicken to do what...
by delamer
Sun Jan 13, 2019 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Quicken External Transfers
Replies: 20
Views: 720

Re: Quicken External Transfers

I find it annoying how my entire mortgage payment doesn't show as an "expense", only the interest part. The principal part reduces the loan balance, and isn't an "expense". Yet I need to pay that money out each year. Would like to be able to say to include it. You could configure Quicken to do what...
by delamer
Sun Jan 13, 2019 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Tax filing software
Replies: 42
Views: 2320

Re: Tax filing software

Given that you are a highly compensated employee, your time is worth a lot. Not to mention how you want to spend your non-work hours. Pay the $40 to use software that you are comfortable with and therefore saves you time. I am all for minimizing small expenses, but you are being penny wise and pound...
by delamer
Sun Jan 13, 2019 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Took on too much mortgage, seeking advice on where to put money going forward
Replies: 46
Views: 5217

Re: Took on too much mortgage, seeking advice on where to put money going forward

Are you still able to save $2000/month even with the new mortgage? If so, then I think you are having some normal buyer’s remorse. If not, then if you post your income and expenses you’ll get some good suggestions on making adjustments. For instance, will you be able to deduct mortgage interest and ...
by delamer
Sun Jan 13, 2019 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 79
Views: 7582

Re: Pay off a 30 year mortgage in 15 years? The cost of flexibility

The discussion so far does not show that taking out a 30 year mortgage @ 5.01% is a bad idea. Only that paying it off in 15 years, but not availing yourself of the lower 4.07% interest rate is leaving a lot of money on the table. But if you compare the 15 year and 30 year mortgage when both are hel...
by delamer
Fri Jan 11, 2019 10:55 pm
Forum: Investing - Help with Personal Investments
Topic: ISO - Bogglehead Financial Revamp
Replies: 3
Views: 398

Re: ISO - Bogglehead Financial Revamp

Good advice from Duckie above.
by delamer
Fri Jan 11, 2019 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: Complex situation, but 90k to play...sort of
Replies: 10
Views: 1186

Re: Complex situation, but 90k to play...sort of

Thank you for the suggestion. My thought process was that if my wife leaves her job having high dividend paying investments in brokerage would offset that loss of income...if we needed to tap into it (I usually just reinvest div). Is that thought process off the mark? What other suggestions do you ...
by delamer
Fri Jan 11, 2019 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: "Borrowing" strategy from IRA
Replies: 19
Views: 935

Re: "Borrowing" strategy from IRA

If your HELOC is already open, that is a legitimate option.

The IRA will work, as long as you are confident that you’ll pay it back once you get your backpay.
by delamer
Fri Jan 11, 2019 3:53 pm
Forum: Personal Consumer Issues
Topic: Disciplined with finances, but not so with diet
Replies: 217
Views: 9745

Re: Disciplined with finances, but not so with diet

My spouse is usually 20-50 pounds over weight. on a small frame. It just isn't a priority for her. She does everything for everyone else. She can lose the weight and has done it. It just slowly creeps back on. I finally got to the point where I said if I mention eating better, exercising more, not ...
by delamer
Fri Jan 11, 2019 3:31 pm
Forum: Investing - Theory, News & General
Topic: What are the disadvantages of taking all risk on equity side?
Replies: 63
Views: 3572

Re: What are the disadvantages of taking all risk on equity side?

This is interesting. But by using 10-year treasuries — admittedly not short term — it avoids corporate bonds, which are a big part of Bernstein’s argument about taking risk in stocks. So how would this look if you substituted a big chunk of corporate bonds for the treasuries? Can you clarify? I am ...
by delamer
Fri Jan 11, 2019 2:37 pm
Forum: Investing - Theory, News & General
Topic: What are the disadvantages of taking all risk on equity side?
Replies: 63
Views: 3572

Re: What are the disadvantages of taking all risk on equity side?

The disadvantage is that the portion of your funds that are "at-risk" are allocated in a very inefficient manner. Take a look at the below efficient frontier curves, for example. The Total Stock Market and 10-year treasury bond fund data used to generate these efficient frontier curves came from PV...
by delamer
Fri Jan 11, 2019 11:38 am
Forum: Investing - Theory, News & General
Topic: What are the disadvantages of taking all risk on equity side?
Replies: 63
Views: 3572

Re: What are the disadvantages of taking all risk on equity side?

I found Bill Bernstein’s argument to be persuasive regarding taking risk on the stock side. So I have chosen to limit my fixed income holdings to cash and short term government bonds, but I did increase my stock allocation as a result. (I also have access to the TSP G fund, which is an exceptionally...
by delamer
Fri Jan 11, 2019 11:25 am
Forum: Investing - Theory, News & General
Topic: SS/Pension/etc as bond allocation?
Replies: 25
Views: 1644

Re: SS/Pension/etc as bond allocation?

If you received all the retirement income that you need from guaranteed income streams (like pensions, annuities, Social Security), how would you invest your portfolio?
by delamer
Fri Jan 11, 2019 11:08 am
Forum: Investing - Help with Personal Investments
Topic: Dividend Investing to Total Return Investing
Replies: 19
Views: 1508

Re: Dividend Investing to Total Return Investing

I'd probably hold on to what you've got. One thing is 100% certain. Markets recover. Markets recover, but there is no way to determine if a particular stock ever will. With the OP’s level of capital gains (assuming they are long term), the federal tax bill would be around $2300. Any state/local tax...
by delamer
Fri Jan 11, 2019 10:56 am
Forum: Personal Consumer Issues
Topic: Disciplined with finances, but not so with diet
Replies: 217
Views: 9745

Re: Disciplined with finances, but not so with diet

For those that do the simple method of tracking daily calorie intake - is there an easy free app that you are using? MyFitnessPal. I’ve been using it for years now. Started as a way to lose weight and now just a way to stay healthy, make sure I’m eating all the right nutrients and exercising. I als...
by delamer
Thu Jan 10, 2019 10:11 pm
Forum: Personal Consumer Issues
Topic: Disciplined with finances, but not so with diet
Replies: 217
Views: 9745

Re: Disciplined with finances, but not so with diet

Any bogleheads any diet wisdom? I've always been disciplined with saving money but can't seem to apply the same discipline to my diet. I have tried weight watchers, Jenny Craig, beach body, keto, my fitness pal...I lack discipline and get hungry. Just this week I decided to start eating the same th...
by delamer
Thu Jan 10, 2019 9:50 pm
Forum: Investing - Help with Personal Investments
Topic: Dividend Investing to Total Return Investing
Replies: 19
Views: 1508

Re: Dividend Investing to Total Return Investing

I will incur a further big loss dumping my losers right now. Didn’t know if I should hold some of them for a while longer To see if they’ll come back. All of these losses are the reason I’m considering changing over to a total return portfolio. Or do I just need to face the music right now. Thank y...
by delamer
Thu Jan 10, 2019 9:30 pm
Forum: Personal Consumer Issues
Topic: Disciplined with finances, but not so with diet
Replies: 217
Views: 9745

Re: Disciplined with finances, but not so with diet

300 calories for breakfast. Egg McMuffin. 560 calories for lunch. Big Mac. 900 calories for dinner. Chick-Fil-A sandwich and fries. Coffee, diet sodas or water to drink. I lost 40 pounds eating mainly fast food. There are better, more nutritious ways, of course, but it's really easy to keep track o...
by delamer
Thu Jan 10, 2019 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: Thrift Savings Plan (TSP) U.S. Equity Allocations
Replies: 10
Views: 676

Re: Thrift Savings Plan (TSP) U.S. Equity Allocations

The idea ratio may be best identified on how long you have to retirement. Small Caps will generate better returns but be significantly more volatile. So expect the roller coaster rides. C fund (S&P 500) will be less volatile. If you have 25-30 years to retirement maybe you should be slightly heavie...
by delamer
Thu Jan 10, 2019 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Help with asset allocation for two different goals
Replies: 6
Views: 440

Re: Help with asset allocation for two different goals

I always had different allocations for different goals. And kept the money in separate accounts. Whatever you decide to do, you need to be able to access the money that you need for the downpayment in 6/7 years. So if your bonds are going to fund the downpayment, you don’t want them in an retirement...
by delamer
Thu Jan 10, 2019 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 79
Views: 7582

Re: Pay off a 30 year mortgage in 15 years? The cost of flexibility

I’d guess that the overwhelming majority of people who take a 30 year mortgage couldn’t qualified to buy the same property with a shorter-term loan. But that isn’t the issue raised in the thread... If I was concerned about flexibility, I think a cost of less than $600/year (in nominal dollars over ...
by delamer
Thu Jan 10, 2019 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Thrift Savings Plan (TSP) U.S. Equity Allocations
Replies: 10
Views: 676

Re: Thrift Savings Plan (TSP) U.S. Equity Allocations

I am not clear on why you find the 80/20 ratio hard to believe.

Here is the relevant information from the wiki: https://www.bogleheads.org/wiki/Approxi ... ock_market

So 50/50 makes you significantly overweighted in small caps.
by delamer
Thu Jan 10, 2019 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Liquidity vs. Retirement Savings in 2019
Replies: 5
Views: 442

Re: Liquidity vs. Retirement Savings in 2019

Are you getting an employer match for any of your tax-deferred contributions?

Don’t give up the match under any circumstances.
by delamer
Thu Jan 10, 2019 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 79
Views: 7582

Re: Pay off a 30 year mortgage in 15 years? The cost of flexibility

I’d guess that the overwhelming majority of people who take a 30 year mortgage couldn’t qualified to buy the same property with a shorter-term loan. But that isn’t the issue raised in the thread... If I was concerned about flexibility, I think a cost of less than $600/year (in nominal dollars over ...
by delamer
Thu Jan 10, 2019 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Retired Mother, High Withdrawal Rate, Small Portfolio
Replies: 11
Views: 1668

Re: Retired Mother, High Withdrawal Rate, Small Portfolio

One option for the taxable: Put 10 years of expenses — roughly $240,000, I believe — in cash and short-term bonds. Invest the rest in an index stock fund(s). Put any dividends/capital gains from the fund(s) into cash to help replenish the expenses pile (this probably will be around $4000/year). Moni...
by delamer
Thu Jan 10, 2019 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 79
Views: 7582

Re: Pay off a 30 year mortgage in 15 years? The cost of flexibility

I’d guess that the overwhelming majority of people who take a 30 year mortgage couldn’t qualified to buy the same property with a shorter-term loan. But that isn’t the issue raised in the thread... If I was concerned about flexibility, I think a cost of less than $600/year (in nominal dollars over a...
by delamer
Thu Jan 10, 2019 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 79
Views: 7582

Re: Pay off a 30 year mortgage in 15 years? The cost of flexibility

You do pay a cost for the flexibility. They are not talked about/promoted as often as 15 and 30 year mortgages, but there are other periods available, 10 year, 20 year, etc. I came accross this interesting statistic: Of all home mortgages, 90 % are 30 year, 6% 15 year, and only 2% the other. 12% ar...
by delamer
Wed Jan 09, 2019 10:52 pm
Forum: Investing - Help with Personal Investments
Topic: I inherited individual stock. Should I sell it now or wait?
Replies: 28
Views: 2307

Re: I inherited individual stock. Should I sell it now or wait?

...Another thing to consider is that I have no idea what my current tax situation is at the moment because of the whole inheritance thing. The estate is still being settled. I don’t know how the sale of this stock will affect my tax situation... Inherited stocks get a "stepped up" cost basis (see W...
by delamer
Wed Jan 09, 2019 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: What are my options with the current mortgage?
Replies: 35
Views: 2012

Re: What are my options with the current mortgage?

If you increase your payments so that the loan is paid off in 10 or 15 years, you will save an enormous amount of interest (versus sticking with the 30 year amortization). No, you don't save anything. There s a thing call time value of money. The mortgage is not far from inflation rate. If interest...
by delamer
Wed Jan 09, 2019 2:54 pm
Forum: Investing - Theory, News & General
Topic: Safe withdrawal rate at 38 years old
Replies: 95
Views: 7416

Re: Safe withdrawal rate at 38 years old

I am not interested in a declining portfolio. I want my portfolio to keep pace with inflation forever, both for myself and for my heirs. After a lot of playing around with Shiller's data going back to 1871 and Monte Carlo simulations in portfoliovisualiser I have come to the following conclusions: ...
by delamer
Wed Jan 09, 2019 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: What are my options with the current mortgage?
Replies: 35
Views: 2012

Re: What are my options with the current mortgage?

If you are married filing jointly, the only tax savings you’ll receive will be based on the difference between your total deductions and the $24,000 standard deduction. So if your deductions are $30,000, then you are only savings taxes on $6,000 since the first $24,000 would have been available anyw...
by delamer
Wed Jan 09, 2019 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance when I have heart disease
Replies: 13
Views: 1067

Re: Life insurance when I have heart disease

Thanks for the responses. As far as need goes, this is not a need issue type of question. I believe I have need covered. If I ramp down over the next decade my coverage, that would be enough to take care of any missing income from me. In fact, if I was gone, the need would probably be less anyhow. ...
by delamer
Tue Jan 08, 2019 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Too many credit cards?
Replies: 54
Views: 2816

Re: Too many credit cards?

If 3 cards are too complicated, then either cancel or just put away 1 or 2 of them. Or even stop using them altogether except where absolutely necessary. Some places don’t take AmEx so I’d keep one of the others if you decide to cancel. If you are concerned about your credit score, than it probably ...
by delamer
Tue Jan 08, 2019 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Investments for super simplicity
Replies: 6
Views: 380

Re: Investments for super simplicity

Thanks for the feedback! I can invest in a target retirement fund in my 403(b). I did estimate the pensions WITH inflation. We will not receive any social security. Don’t plan on taking distributions from the Roth and will not take distributions from the 403(b) accounts until it’s absolutely necess...
by delamer
Tue Jan 08, 2019 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: What are my options with the current mortgage?
Replies: 35
Views: 2012

Re: What are my options with the current mortgage?

If you increase your payments so that the loan is paid off in 10 or 15 years, you will save an enormous amount of interest (versus sticking with the 30 year amortization). Try this calculator and input extra payments: https://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx Then l...
by delamer
Tue Jan 08, 2019 9:35 pm
Forum: Investing - Help with Personal Investments
Topic: Investments for super simplicity
Replies: 6
Views: 380

Re: Investments for super simplicity

No way to know, based in the information you provided.

How much do you already have saved?

How much do you want to be able to spend in retirement?

Will you receive Social Security in addition to the pensions?

Are the pensions in 2019 dollars or 2034+ dollars? Will they be inflation adjusted?
by delamer
Tue Jan 08, 2019 9:24 pm
Forum: Investing - Theory, News & General
Topic: Embarrassed to ask... dividends and Total Return
Replies: 39
Views: 4735

Re: Embarrassed to ask... dividends and Total Return

You're right, you can either lose money or make zero money, which isn't technically "reducing" I guess. Too late to try to spin your glib answer. Cheers Err, you either gain $0 or lose money. Is this an advanced concept or something? How do dividends "reduce your return?" Taxes Any time you sell sh...
by delamer
Tue Jan 08, 2019 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Health insurance informs me after procedure that they won't cover all of it
Replies: 20
Views: 1589

Re: Health insurance informs me after procedure that they won't cover all of it

Did your doctor’s office and/or the hospital get pre-approval for the procedure from your insurer?
by delamer
Tue Jan 08, 2019 9:09 pm
Forum: Personal Consumer Issues
Topic: master suite features for addition
Replies: 66
Views: 3388

Re: master suite features for addition

I would put a washer and dryer inside the master walk-in closet, along with an ample table to fold things when they come out of the dryer. You could do a Murphy-style table if you didn't want it out all the time. This would be in addition to a laundry room elsewhere in the house. Why go to the expe...
by delamer
Tue Jan 08, 2019 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Applying for Social Security
Replies: 10
Views: 980

Re: Applying for Social Security

I applied for Medicare Part A online via the SS website, and it went very smoothly. (I have not applied for SS yet but plan to do so online.)

I did the application in early December and received a confirmation of benefits yesterday. I will get my card in a couple weeks.
by delamer
Tue Jan 08, 2019 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Home Addition Financing
Replies: 16
Views: 1194

Re: Home Addition Financing

Have you considered refinancing to a 15 or 20 year loan?

If that is affordable, the interest bump would be lower.