Search found 1146 matches

by ray.james
Wed Nov 13, 2019 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Math/excel help -present value, future value, inflation
Replies: 4
Views: 470

Math/excel help -present value, future value, inflation

I am doing a spread sheet for myself but I couldn't figure out the math and inflation. I hope math/excel gurus can help me determine the correct formulas/additional columns if needed. I am not sure how useful it is to others. Let me know if you would like to see the results/sheet. What I am trying t...
by ray.james
Tue Nov 12, 2019 5:15 pm
Forum: Investing - Theory, News & General
Topic: Dow closing
Replies: 13
Views: 2226

Re: Dow closing

way more common. Juts search for "UNCH" in data
by ray.james
Fri Nov 08, 2019 2:20 pm
Forum: Investing - Theory, News & General
Topic: madsinger monthly report (October 2019)
Replies: 2
Views: 375

Re: madsinger monthly report (October 2019)

Thanks Madsinger.

This bull run is spoiling everyone :D
by ray.james
Fri Nov 08, 2019 1:06 pm
Forum: Investing - Theory, News & General
Topic: Saving for a new vehicle
Replies: 36
Views: 3203

Re: Saving for a new vehicle

(e.g. we purchased a Prius Prime months sooner than we planned. Just found out that a $1500 CA rebate would have no longer applied, had we not bought when we did. Waiting even weeks would have cost us more, for sure.) Are the rules for 35 miles already in effect? I thought they will start sometime ...
by ray.james
Fri Nov 08, 2019 12:25 pm
Forum: Investing - Theory, News & General
Topic: Saving for a new vehicle
Replies: 36
Views: 3203

Re: Saving for a new vehicle

ST bond/cd/cash.
Is this for 30K vehicle in 2-5 years? If so, the difference between those options is not much. Even cash will be fine.
by ray.james
Thu Nov 07, 2019 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage to prepay or not prepay
Replies: 83
Views: 6436

Re: Mortgage to prepay or not prepay

JoeRetire wrote:
Thu Nov 07, 2019 7:03 am
50:50 is the exact opposite of a consensus.
The best line in the thread :D
Of course, I do understand what OP meant.
by ray.james
Wed Nov 06, 2019 3:59 pm
Forum: Personal Investments
Topic: Is the effective interest rate of a loan higher when it’s early in amortization period?
Replies: 42
Views: 1609

Re: Is the effective interest rate of a loan higher when it’s early in amortization period?

Are you talking about term loan with variable payments. These do occur in other countries but no USA. Personal, 401k, auto, mortgage are all amortized loans in USA. Some pay day loans look like term loan but even they amortize since the unpaid is rolled over to next loan. IN Brazil/India/China there...
by ray.james
Tue Nov 05, 2019 7:22 pm
Forum: Investing - Theory, News & General
Topic: Uber IPO
Replies: 38
Views: 3159

Re: Uber IPO

Uber's entire value is in robotaxi - whenever that happens. Personally, I think Google and Tesla will be there far ahead of time. They do have market share but I think they cannot squeeze any more profitability on salary of uber drivers/car. Compare that to beyond meat/ Airbnb(similar to uber but mo...
by ray.james
Tue Nov 05, 2019 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Dependentcare FSA reduced due to HCE restriction
Replies: 2
Views: 317

Re: Dependentcare FSA reduced due to HCE restriction

You could split it. That's what we do.
Mine usually gets reduced to 4300/something like that. So now, I do 4k in my account and 1K in my spouse account.
by ray.james
Fri Nov 01, 2019 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: [Just got married] Looking for ways to cut down on my budget
Replies: 80
Views: 6419

Re: [Just got married] Looking for ways to cut down on my budget

I'd better get a term life insurance for 20-30 years once the baby comes. It looks like I need this job to sustain our lifestyle for the next 10 years, and then everything will slowly fall into place. Go ahead and get it now ... assuming you're healthy, it should be cheap. And a new health problem ...
by ray.james
Thu Oct 31, 2019 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: [Just got married] Looking for ways to cut down on my budget
Replies: 80
Views: 6419

Re: How do people live on an average household income of 60K? Looking for ways to cut down on my budget

Total budget: 150K per year or $12,500 per month Estimated tax: 45K or (~30%) Estimated savings: 18K (~12%) Fixed expenses: Total $4,867 Housing Mortgage + Maintenance: $2,650 on a 15 year gazelle1991, Your big expenses are taxes and the mortgage. 1) Refinance your mortgage to 30 years. 2) Put the ...
by ray.james
Thu Oct 31, 2019 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: [Just got married] Looking for ways to cut down on my budget
Replies: 80
Views: 6419

Re: How do people live on an average household income of 60K? Looking for ways to cut down on my budget

Total budget: 150K per year or $12,500 per month Estimated tax: 45K or (~30%) Taxes on 150k+60k = 210k income should average out to ~25% including SS/med, fed & state.(for us in CA it did.) Some are suggesting - water heater and HVAC are temporary. However, there will be some line item like that al...
by ray.james
Wed Oct 30, 2019 12:00 pm
Forum: Personal Investments
Topic: Go BIG or go home... [Sell employer stock?]
Replies: 19
Views: 1570

Re: Go BIG or go home... [Sell employer stock?]

If you really have the income and assets where you can take these risks, consider taking them in taxable or Roth. Remember any gains you make are taxed at marginal rates in withdrawal. Conversely losses incurred are also less impact in 401k vs Roth with taxable allowing losses as deductible. Persona...
by ray.james
Wed Oct 30, 2019 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 690
Views: 70245

Re: Why are you NOT buying rental properties?

tomtoms wrote:
Wed Oct 30, 2019 6:44 am
Lmk if you have any questions! Happy to share what I know.
What realistically constitutes tenants covering all expenses?
PITI (or)
PITI+depreciation value taken on taxes
by ray.james
Fri Oct 25, 2019 2:12 pm
Forum: Personal Investments
Topic: 11 Reasons to Carry a Big, Long Mortgage by Ric Edelman.
Replies: 93
Views: 10844

Re: 11 Reasons to Carry a Big, Long Mortgage by Ric Edelman.

"Housing markets going up or down is largely regional and there are many cities that have lost real estate value over the last 30 years" Do you happen to have a link for the list of where home prices have fallen over the past 30 years? Detroit? 30 years - Even construction costs have kept up with i...
by ray.james
Fri Oct 25, 2019 2:10 pm
Forum: Personal Investments
Topic: 11 Reasons to Carry a Big, Long Mortgage by Ric Edelman.
Replies: 93
Views: 10844

Re: 11 Reasons to Carry a Big, Long Mortgage by Ric Edelman.

I'm curious if his points are still valid if the interest rates on homes are 17%? I think not. Big tax deduction sure, but who wants to give all that money to the bank so they could deduct it. But for sake of argument, I'll assume we're only talking fixed mortgages at today's prevailing rates. This...
by ray.james
Thu Oct 24, 2019 12:03 pm
Forum: Personal Investments
Topic: 11 Reasons to Carry a Big, Long Mortgage by Ric Edelman.
Replies: 93
Views: 10844

Re: 11 Reasons to Carry a Big, Long Mortgage by Ric Edelman.

A good number of reasons apply to our personal case and we are going to keep our mortgage for a while. We will refinance as opportunities present but these are our reasons: 1) We are young and our kids are young. Mortgage rate is at break even inflation rate/higher by 0.5%. We would rather prioritiz...
by ray.james
Wed Oct 09, 2019 1:44 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Investor Bought Rental Property in CA
Replies: 6
Views: 791

Re: Foreign Investor Bought Rental Property in CA

1) correct 2) No need for physical presence. They need to obtain ITIN and e-file/mail for both state and federal. A lot of this depends on whether this country has DTAA(Double taxation avoidance agreement) with USA. They will owe taxes as per non resident rules. 1040NR, 540NR. 3) No idea in this are...
by ray.james
Tue Oct 08, 2019 3:41 pm
Forum: Investing - Theory, News & General
Topic: Selling recently IPO'ed shares --> tips and advice?
Replies: 14
Views: 918

Re: Selling recently IPO'ed shares --> tips and advice?

I do not have knowledge on brokerages and advantages. For the stock, how much is the fair value to your current net worth? Over next 6 months you will see the stability of the stock. It is continues stability and keep above book value, you can dump 60% to entire stock(CHWY, PTON, PINS). If it falls ...
by ray.james
Tue Oct 08, 2019 1:36 pm
Forum: Personal Consumer Issues
Topic: Returned first iPhone; are they all like this?
Replies: 27
Views: 3360

Re: Returned first iPhone; are they all like this?

Funny thread! My wife upgrade from 7 to 11 last week. When she got 7, I was amazed at build quality and pictures/camera. My $200 android was left in dust. Now for 11, the screen is still LCD, photos barely compete with my $300 pixel 3a(my P30 just leaves iphone 11 way behind) and apple still charges...
by ray.james
Fri Oct 04, 2019 1:18 am
Forum: Personal Consumer Issues
Topic: Mortgage rates what would you choose
Replies: 23
Views: 1795

Re: Mortgage rates what would you choose

The lender is Wells Fargo. We locked 7/1.

Thank you all for the recommendation.
by ray.james
Thu Oct 03, 2019 3:49 pm
Forum: Personal Consumer Issues
Topic: Mortgage rates what would you choose
Replies: 23
Views: 1795

Re: Mortgage rates what would you choose

Got today's rate update from our banker. 30-Year Fixed-Rate Jumbo 3.625% (+ $2125 closing credits.) 7/1 ARM Jumbo 2.75% (+ $1400 closing credits.) 10/1 ARM Jumbo 2.875% A solid .125 rate drop in 2 days with credits! I am thinking of locking today and still leaning 10/1 (or) 30 year fixed. Any advic...
by ray.james
Thu Oct 03, 2019 3:12 pm
Forum: Personal Consumer Issues
Topic: Mortgage rates what would you choose
Replies: 23
Views: 1795

Re: Mortgage rates what would you choose

Got today's rate update from our banker. 30-Year Fixed-Rate Jumbo 3.625% (+ $2125 closing credits.) 7/1 ARM Jumbo 2.75% (+ $1400 closing credits.) 10/1 ARM Jumbo 2.875% A solid .125 rate drop in 2 days with credits! I am thinking of locking today and still leaning 10/1 (or) 30 year fixed. Any advice?
by ray.james
Thu Oct 03, 2019 2:08 pm
Forum: Personal Consumer Issues
Topic: Mortgage rates what would you choose
Replies: 23
Views: 1795

Re: Mortgage rates what would you choose

How do you figure your odds of moving are 50% in 9/12 years? Seems strange to me. You say you will pay it off in 18 years but are also planning on moving well before that. Go with the 30. I wouldn't want to rely on bonuses to make my house payments. Our probability of moving is tied to commute. 50%...
by ray.james
Thu Oct 03, 2019 2:05 pm
Forum: Personal Consumer Issues
Topic: Mortgage rates what would you choose
Replies: 23
Views: 1795

Re: Mortgage rates what would you choose

Thegame14 wrote:
Thu Oct 03, 2019 1:59 pm

if the flexibility is important, get a 30 and make extra payments when you can, if it makes sense vs other investments and needs.
Would you chose 10 year ARM instead for .75 rate spread? That's an extra 7,500 going to principal assuming I pay the same for 10 years.
by ray.james
Thu Oct 03, 2019 1:55 pm
Forum: Personal Consumer Issues
Topic: Mortgage rates what would you choose
Replies: 23
Views: 1795

Re: Mortgage rates what would you choose

Agree, it totally depends on your cash flow and existence of/progress toward other goals. You say you "can't" get a 15 year fixed which I assume means you want to keep the loan with the current lender for some reason and they don't offer a 15 year fixed (which is odd if they offer a 10 and a 30...)...
by ray.james
Thu Oct 03, 2019 11:48 am
Forum: Personal Consumer Issues
Topic: Mortgage rates what would you choose
Replies: 23
Views: 1795

Mortgage rates what would you choose

Here are the options we are presented. Mortgage is for 1.1millon. 7/1 ARM : 2.75% 10/1 ARM : 3.00% 30 year fixed : 3.75% 1) We intend to pay off in 15-18 years. We cannot do 15 year fixed. 2) Our probability of moving is around 50% at 9/12 year mark.( both kids elementary/middle done) What would you...
by ray.james
Wed Oct 02, 2019 6:21 pm
Forum: Investing - Theory, News & General
Topic: Recessions and Depressions grouped by GDP contraction
Replies: 13
Views: 1349

Re: Recessions and Depressions grouped by GDP contraction

I realize that was tongue in cheek but even then, why would I be cash and gold for something atleast a decade away even by my own prediction? I'm a worrier. I worried that, perhaps, you were all in on some "depression proof" assets already way before the depression hits - or may not hit. Glad you'r...
by ray.james
Wed Oct 02, 2019 2:03 pm
Forum: Investing - Theory, News & General
Topic: Recessions and Depressions grouped by GDP contraction
Replies: 13
Views: 1349

Re: Recessions and Depressions grouped by GDP contraction

I think in another decade, current deficit spending, fiscal spending on Social security+ medicare will cross over to form the perfect storm for another depression. Higher taxes will get eaten by increase in "net interest payments". This will leave government helpless to stimulate. To be honest, at ...
by ray.james
Tue Oct 01, 2019 5:06 pm
Forum: Investing - Theory, News & General
Topic: Recessions and Depressions grouped by GDP contraction
Replies: 13
Views: 1349

Re: Recessions and Depressions grouped by GDP contraction

I think in another decade, current deficit spending, fiscal spending on Social security+ medicare will cross over to form the perfect storm for another depression. Higher taxes will get eaten by increase in "net interest payments". This will leave government helpless to stimulate. To be honest, at c...
by ray.james
Fri Sep 27, 2019 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Financing house after divorce
Replies: 28
Views: 2555

Re: Financing house after divorce

Another vote for rent. If possible rent a nicer townhome/SFH for a couple of hundred more and stay put for 3-5 years. This will help you settle all financial obligations before dipping into buying again. It is a tough process especially given age of kids. Buying will increase unnecessary financial s...
by ray.james
Wed Sep 18, 2019 3:14 pm
Forum: Investing - Theory, News & General
Topic: Spike in Repo Rates [Fed Overnight Repurchase agreement]
Replies: 137
Views: 12844

Re: Spike in Repo Rates [Fed Overnight Repurchase agreement]

https://www.newyorkfed.org/markets/opol ... cy_190917a

They injected another 75 billion yesterday evening in addition to 53 billion on Monday night.

edit: still media is sensationalizing saying since 2008, but 2008 is when the money market funds broke.
by ray.james
Tue Sep 17, 2019 12:30 pm
Forum: Investing - Theory, News & General
Topic: DCA vs. Lump Sum- an interesting analysis
Replies: 62
Views: 3853

Re: The Cost of Waiting - Why It’s Better to Invest Conservatively Now Than to Average-In (blog post by Nick Maggiulli)

My results show that any stock/bond portfolio combination (even a 100% bond portfolio!) would have, on average, outperformed a 24-month DCA into an all-stock portfolio. If that statement doesn’t shock you, let me make it more concrete... https://ofdollarsanddata.com/the-cost-of-waiting/ Who he work...
by ray.james
Mon Sep 16, 2019 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 508
Views: 29998

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Ron, your posts are always inspiring. Living in the bay, I am glad you are able to carve a happy situation here. I am curious how other teachers feel here. In our district elementary, teachers are paid 60-75K + health insurance last I checked. Are teachers in general stressed with overcrowded school...
by ray.james
Thu Sep 12, 2019 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area budget for $350k family income
Replies: 94
Views: 7589

Re: Bay Area budget for $350k family income

[*] An itemized deduction of $36.4k should have been used instead of the standard deduction of $24k. State will be 22K(real estate) + (mortgage up to 1 mill) 20K in deductions. = 42K in deductions vs 8K standard deduction of California. This will reduce ~3.5K in state taxes alone. However it will c...
by ray.james
Thu Sep 12, 2019 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area budget for $350k family income
Replies: 94
Views: 7589

Re: Bay Area budget for $350k family income

Childcare + preschool - $24,000 per year (no way paying for babysitting - that will reduce eating out expenses and the obligation to party with Joneses too) $24,000 is accurate for 1 kid but certainly not 2. +1 I would read an_asker post which I think coincides with our experience. 2 kids do cost 4...
by ray.james
Thu Sep 12, 2019 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area budget for $350k family income
Replies: 94
Views: 7589

Re: Bay Area budget for $350k family income

The issue here is clearly one of defining the term "middle-class lifestyle". The hypothetical family is living an upper-class lifestyle, but trying to 'convince themselves' that they are middle-class. $4200/year for a baby, $6000/y for 'entertainment' ($500/m buys a lot of Netflix), and $8000/y for...
by ray.james
Wed Sep 11, 2019 2:59 pm
Forum: Personal Investments
Topic: What would you do?
Replies: 12
Views: 1020

Re: What would you do?

Seattle market is already down by 10% and inventory is raising from peak 2018 prices. Are your numbers current?
Also at that real estate tax rate of king county: lower priced home+ lower taxes will pay itself 70% of 2 private school tuition. I would also recommend B.
by ray.james
Wed Sep 11, 2019 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11306

Re: Paying off mortgage early - am I thinking about this right?

I'm wondering about the following. There is principal and interest in a mortgage payment. If I'm moving cash from one asset (such as a bank account or taxable brokerage account) to pay off a liability, my net worth is the same. In these decisions, why don't we look more at what our monthly interest...
by ray.james
Mon Sep 09, 2019 4:51 pm
Forum: Investing - Theory, News & General
Topic: Inflation likelihood and inflation protection
Replies: 29
Views: 2047

Re: Inflation likelihood and inflation protection

If near retirement - social security, TIPS, paid off home works well overall in most scenarios.
If accumulating - mortgage, diversified stocks, limiting consumption of wants.
by ray.james
Mon Sep 09, 2019 1:08 pm
Forum: Investing - Theory, News & General
Topic: Investing priority over mortgage
Replies: 4
Views: 403

Re: Investing priority over mortgage

magicrat wrote:
Mon Sep 09, 2019 12:48 pm
1) I don't understand what you are saying
2) You can withdraw Roth IRA contributions at any time
3) True, but why does that matter if you are in such good financial shape?
1) sorry, fixed the statement.

2,3 my conclusion as well. But want to see if I missed anything.
by ray.james
Mon Sep 09, 2019 12:27 pm
Forum: Investing - Theory, News & General
Topic: Investing priority over mortgage
Replies: 4
Views: 403

Investing priority over mortgage

An interesting question came up when talking about mortgage with my spouse. If ones retirement savings are met; would one chose tax advantages accounts over mortgage pre-payment. After maxing out 401ks, roth, HSA, would one put extra payments into backdoor roth(mega) or mortgage. I personally chose ...
by ray.james
Thu Sep 05, 2019 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: pay down mortgage (refi) vs invest
Replies: 11
Views: 996

Re: pay down mortgage (refi) vs invest

Few things to consider: 1) Tax deductions are on up to 1 mill mortgage if living in California. Tax law will revert to 1mill deduct-ability in 2026. 2) Ability to meet savings goal but pay mortgage and all bills with ONE income - if dual income household. 3) Pay down and recast until mortgage reache...
by ray.james
Wed Sep 04, 2019 11:22 am
Forum: Personal Finance (Not Investing)
Topic: mortgage paydown: clarification on max deduction limit
Replies: 4
Views: 651

Re: mortgage paydown: clarification on max deduction limit

Thank you FiveK and Bluebolt.

It turns out Heloc is not limited to 100K but subject to 750k and home capital improvements only. However both Heloc and 750K limit are temporary up to 2025 tax year.
by ray.james
Tue Sep 03, 2019 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: mortgage paydown: clarification on max deduction limit
Replies: 4
Views: 651

Re: mortgage paydown: clarification on max deduction limit

Bump.
Adding an additional question. Is mortgage considered an equity loan from purchase point of view.
If someone took a mortgage of 850K, is it entirely deductible? (750k+ 100K ).

Hope someone went through this and have answers to above.
by ray.james
Tue Sep 03, 2019 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: mortgage paydown: clarification on max deduction limit
Replies: 4
Views: 651

mortgage paydown: clarification on max deduction limit

I have a few question to understand how the tax law changed things on jumbo mortgages. 1) The current maximum principal amount is 750,000 for tax deduction. Is that that inclusive of home equity loan of 100,000.(consider for home modifications). 2) In 2026 when the current tax law expires, what is t...
by ray.james
Wed Aug 28, 2019 1:51 pm
Forum: Investing - Theory, News & General
Topic: I don't like Bonds because I
Replies: 31
Views: 2793

Re: I don't like Bonds because I

8/10.
I thought utilities are paid first in bankruptcy and then bondholders.

Spending time on bogleheads for few months will get you up to speed. Especially on bond threads.
by ray.james
Tue Aug 27, 2019 2:59 pm
Forum: Investing - Theory, News & General
Topic: Best of Bogleheads - your #1 takeaway
Replies: 151
Views: 15349

Re: Best of Bogleheads - your #1 takeaway

The power of compounding.
Bonus: tax advantaged saving, tax efficient placement.

After few years: The power of Simplicity
by ray.james
Mon Aug 26, 2019 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Sell or Rent my primary house
Replies: 13
Views: 766

Re: Sell or Rent my primary house

One small bit about California is property tax rates are locked base don purchase price. If this is a home in 10 years or less you will move back after kids move out, it might be something of internet. I have friends who kept their town home as rental because it is very convenient for commute but no...
by ray.james
Fri Aug 09, 2019 12:55 pm
Forum: Investing - Theory, News & General
Topic: threshold for paying debt
Replies: 41
Views: 2930

Re: threshold for paying debt

Inflation rate + 2% is my threshold. However I use 2 numbers. Once is interest rate and the second is "shovel to dump" ratio as Dave Ramsey says. After paying all payments and living expenses - free cash flow per year divided by total debt. If this is more than 12, I continue to pay off lower intere...