Search found 55 matches

by AdamFist
Wed Dec 01, 2021 11:57 am
Forum: Personal Investments
Topic: Roth IRA Conversion after non-deductible IRA Contribution
Replies: 4
Views: 537

Re: Roth IRA Conversion after non-deductible IRA Contribution

tashnewbie wrote: Wed Dec 01, 2021 9:53 am
AdamFist wrote: Tue Nov 30, 2021 10:51 pm
  • In order for me to convert to Roth, would I need to reverse my non-deductible IRA contribution / Roth conversion of $7k made earlier this year?
I can't answer your other questions, but the answer to this one is that you can't undo a Roth conversion.

I assume you've thought through the implications of doing a Roth conversion of $100k of pretax money (and paying the associated taxes).
Thank you. Yes, I'm prepared to pay the additional Federal/State taxes as a result of the conversion to Roth.

I didn't ask this in my original post but what I was really asking is how does the Pro Rata rule affect the $100k Conversion to Roth along with a $7k non-deductible contribution to IRA converted to Roth?
by AdamFist
Tue Nov 30, 2021 10:51 pm
Forum: Personal Investments
Topic: Roth IRA Conversion after non-deductible IRA Contribution
Replies: 4
Views: 537

Roth IRA Conversion after non-deductible IRA Contribution

Dear Bogleheads Community I want to convert a portion of my Rollover 401k traditional balance to Roth. I was hoping to do this in my 401k plan but a Roth 401k conversion is not supported in my company's plan. My company's plan does support a Rollover withdrawal to a 3rd party IRA. Current Balances Rollover - Traditional 401k: $550k Rollover - Roth 401k: $0k, no conversions to Roth 401k supported Traditional IRA: $0k Roth IRA: $300k (includes $7k non-Deductible contribution converted to Roth for TY2021) It appears that the only option is for me to rollover part of my 401k traditional balance to my traditional IRA then convert to a Roth IRA. Desired sequence-of-events Withdraw $100k from Rollover - Traditional 401k balance to my Rollover - Tr...
by AdamFist
Tue Dec 18, 2018 11:35 am
Forum: Personal Consumer Issues
Topic: Another Desktop (Self Built) Updating Question
Replies: 17
Views: 1180

Re: Another Desktop (Self Built) Updating Question

I was in the same situation - looking to upgrade my 2010 AMD build (965 BE, Asus M4A87TD) but discovered that my upgrade path was limited in 2015. I had to change out my motherboard and PC case so I ended up builing a new PC.

Based on your current specs, a SSD might be the only practical upgrade. A GPU (video card) upgrade may make sense if it's paired with a CPU that can handle it.

You may want to check out PC Part Picker (https://pcpartpicker.com/). It's a good tool to see which parts you can upgrade or which upgrades may be incompatible.

Adam
by AdamFist
Sun Sep 09, 2018 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Tax form filing for CA -- advice needed
Replies: 4
Views: 1152

Re: Tax form filing for CA -- advice needed {Solved!}

Problem solved! Disclaimer: My motive is to provide information on how we remedied our situation. Please do your own research on how to solve your personal situation. It took several attempts to connect to a live agent at CA FTB who reviewed my case and provided a path to correct the situation. The penalties, fees and interest were due to the "late" filing of CA FTB Form 568 even though we moved to CA in October 2017 The cutoff for a timely payment is mid-April for each tax year When we filed FTB Form 568, it had an account period of 1/1/2017 thru 12/31/2017 The FTB agent recommended faxing a signed letter stating that the account period was incorrect and needs to be adjusted with a start date of whenever we moved to CA (October 2...
by AdamFist
Sat Aug 25, 2018 10:55 pm
Forum: Personal Finance (Not Investing)
Topic: Tax form filing for CA -- advice needed
Replies: 4
Views: 1152

Tax form filing for CA -- advice needed

Hello Bogleheads! I'm looking for tax form filing advice. Here's the sequence of events that have occurred thus far: 1. We moved from GA to CA in 2017 and filed Federal and 2 State Income tax returns. 2. My wife has a sole member LLC domiciled in GA She is licensed to practice her profession in GA but not in CA (yet). All of her income is sourced from GA. 3. As part of our 2017 CA tax return, we filed a Form 568 LLC Return of Income We mailed in Form 568 with $800 LLC tax for 2017 We mailed in Form 3522 with $800 for 2018 The entity is disregarded for income tax purposes 4. We just received a Franchise Tax Board Notice of Balance Due For TY2017 the notice shows a "Nonconsenting Nonresident Members' Tax" with monthly penalty, an un...
by AdamFist
Thu Mar 08, 2018 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: Advice needed for Renter offer
Replies: 19
Views: 2507

Advice needed for Renter offer

I've listed a house for rent and the prospective applicant has offered to pay 6 months in advance and then month-to-month afterwards. This seems to be an unusual request and I'm asking for advice on how to handle this situation.

As a landlord, what are the potential pitfalls for accepting 6 months rent in advance assuming they've passed a background check?

Thanks,
Adam
by AdamFist
Wed Dec 20, 2017 6:58 pm
Forum: Personal Investments
Topic: Advice needed: Moved from GA to CA. What do I do about 529s?
Replies: 2
Views: 409

Advice needed: Moved from GA to CA. What do I do about 529s?

Hello Bogleheads! My family just completed a move from GA to CA and needs some advice on what to do with the 529 plans set up for my 3 kids. They are young (6 and below) and we've been contributing $2k per year per kid because GA allows an Income Tax deduction. I've learned that GA Recaptures lost income tax revenue if the funds are rolled over to another 529 plan. Disclosure on GA Recapture can be found here (page 53 of pdf / page 21 of booklet): https://www.path2college529.com/documents/ga_disclosure.pdf I have at least 3 choices: Avoid GA Recapture: Leave 529 plan where it is (e.g. Do nothing with GA). I would set up another 529 plan for contributions while I'm a resident of CA - either UT or NV. Optimize GA Recapture: Partial Rollover. ...
by AdamFist
Thu May 25, 2017 10:41 am
Forum: Personal Consumer Issues
Topic: best way to buy tires
Replies: 61
Views: 11537

Re: best way to buy tires

I've purchased at Discount Tire but recently scored a couple of good tire deals from Walmart.com. In my opinion, buying and installing from the same retailer gives me more peace of mind for when servicing needs arise.

Adam
by AdamFist
Mon Apr 17, 2017 7:46 pm
Forum: Personal Investments
Topic: [Advice needed for mother's inheritance/finances.]
Replies: 129
Views: 20120

Re: Too much inheritance to handle. Advice needed

Hello everyone, My father passed away a few month ago and my mom and I were left over 1m+ in assets. Right now we have three accounts with a financial advisor who is a close friend of my fathers. He has set up 3 accounts for my mom: Inherited IRA: 400k Brokerage account: 400k Mom's IRA: 200k Both my mom and I had 0 knowledge on finance and investing after my father passed away. My father had an IRA account with this financial advisor and was in the process of moving his 401k to him so we believed this guy would use our money with his best intentions. Now, that doesn't mean his intentions are the best decisions. That's why I am here. I have been doing my research and trying to soak in as much knowledge as I can and I am starting to doubt th...
by AdamFist
Mon Nov 09, 2015 8:26 am
Forum: Personal Investments
Topic: Need guidance on setting up solo 401k plan
Replies: 6
Views: 790

Re: Need guidance on setting up solo 401k plan

For tax purposes, will she be filing as sole proprietor? Yes, she is sole proprietor for her LLC Why did she not have a trad ira until now? We earn too much for a traditional IRA contribution, therefore backdoor Roth is the only way to fund IRA for both of us. What is your tax bracket as a family? 28% Federal What type of retirement accounts do you have? Employer 401k (mix of traditional, Roth balances), Roth IRA, HSA, Joint taxable investment accounts I am trying to understand if there is a benefit of going roth 401k at which ever tax bracket the family is at. Even if you go roth 401k, the employer contributions will still be in trad format and only employee contributions are in roth. Depending on my above question of how is the taxes goi...
by AdamFist
Mon Nov 09, 2015 6:38 am
Forum: Personal Investments
Topic: Need guidance on setting up solo 401k plan
Replies: 6
Views: 790

Re: Need guidance on setting up solo 401k plan

Thanks JDDS Just to clarify a couple of my questions: 2. How will funds in her employer sponsored SEP-IRA be factored into a backdoor conversion for her Roth IRA? (e.g. Does the pro-rata rule apply like a traditional IRA?) While my wife is contributing pre-tax to her employer's SEP-IRA does the pro-rata rule apply when she does a backdoor Roth conversion? 4. How do contribution limits apply between solo 401k and SEP-IRA with concurrent eligibility? I've read that employers can contribute up to 25% salary deferral ($53k max, whichever is less) on behalf of the employee. For example, an $80k annual salary would equate to $20k annual limit for SEP-IRA contributions. Is this limit treated separately against the $18k limit for 401k contributions...
by AdamFist
Sun Nov 08, 2015 10:31 pm
Forum: Personal Investments
Topic: Need guidance on setting up solo 401k plan
Replies: 6
Views: 790

Need guidance on setting up solo 401k plan

My wife is an optometrist (age 37) and has never had access to an employer sponsored retirement plan until recently. Earlier this year we started a LLC so she can use the additional income from fill-in work to fund her own retirement plan. She started a new job last month that will allow her access to a SEP-IRA retirement plan when she becomes eligible to participate in 4Q2016. Additional considerations • We have our retirement assets with Vanguard • She does not have a traditional IRA nor a 401k (Roth or Traditional) • We do not anticipate more than $10k per year of income from her LLC • We want to continue funding her Roth IRA with a backdoor conversion • We are open funding wife's solo 401k either as a Roth or traditional • We have plans...
by AdamFist
Wed Apr 08, 2015 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Switch to 15 year mortgage? (Cash flow vs. better rate)
Replies: 17
Views: 2886

Re: Switch to 15 year mortgage? (Cash flow vs. better rate)

In a similar situation, I refinanced a 30 year FRM from 4.5% to a ("no cost") 15 year FRM @ 3.125% and saved approximately $125k in interest. I brought $26k to the closing table because I had to meet a 25% equity threshold for refinancing an investment property. Assuming you plan to maybe convert your condo to investment property, consider a no closing-cost refi now while the property is your primary residence. Based on your value estimates, it looks like your LTV is good regardless of a primary vs investment refi but generally speaking, the interest charges are lower on a residential refi. Your rental income vs. monthly expenses also look good for the 15 year so at minimum you can be cash flow neutral. Don't forget to estimate de...
by AdamFist
Wed Apr 08, 2015 1:29 pm
Forum: Personal Consumer Issues
Topic: Updated from 2015: Vehicle Suggestions with 3 Kids
Replies: 45
Views: 11577

Re: Vehicle Suggestions with 3 Kids

@health teacher - I strongly recommend getting serious about replacing your unreliable vehicle. I faced a similar situation when #1 was 5 months old and I didn't want to chance getting stranded. We bought a 2014 Toyota Sienna knowing that #3 was on the way and it's worked out well with 3 small children (4, 2, 1) with car seats and room to spare. Other vehicles on the consideration list are: Honda Odyssey - In my top 2 but reports of reliability issues steered me towards the Sienna. I'd still be happy with the Odyssey at the right price. Kia Sedona - Value pick against Odyssey, Sienna and a rockin' warranty for original owners. 2015 is worth a look. Mazda5 - Has a lot of utility for urbanized areas and short distance trips. However, my doubl...
by AdamFist
Fri Dec 19, 2014 7:42 am
Forum: Personal Finance (Not Investing)
Topic: Where to find the cheapest mortgage?
Replies: 30
Views: 8563

Re: Where to find the cheapest mortgage?

I had a good experience with aimloan.com, which is an internet lender. They had a reasonable appraisal fee and were up front with all the costs. They will send someone to your location to do the closing.

Adam
by AdamFist
Sun Oct 05, 2014 9:06 pm
Forum: Personal Consumer Issues
Topic: Hyundai vs. Toyota
Replies: 45
Views: 8672

Re: Hyundai vs. Toyota

OP - I'm 5'6" tall and I feel cramped in a 2012 Elantra; the rear visibility is limited. Given your height, I think it's best to consider Accord/Camry/Sonata/Altima in the sedan category. A backup camera is great to have but I think the best feature for you is to find a vehicle with great all around visibility - the current gen (2014/2015) Subaru Forester comes to mind. You may also want to consider a RAV4.

Best of luck in your decision,
Adam
by AdamFist
Thu Jul 24, 2014 9:50 pm
Forum: Personal Consumer Issues
Topic: 2015 Subaru Forester, which trim/options?
Replies: 16
Views: 5469

Re: 2015 Subaru Forester, which trim/options?

I'm not yet in the market for the Forester but I think the best relative value is the 2.5i Premium (non-Turbo) CVT which comes with heated seats and a panoramic moon roof. The Premium trim opens up the Eyesight option without Navigation. One option I would not consider is Navigation - too many bad reviews. A must have option for me would be the all weather package + Eyesight. From there I may or may not opt for the Popular Package #2 (Exterior auto-dimming mirror with approach lighting; Auto-dimming mirror with compass and Homelink; Rear bumper cover; Cargo net seat back), Protection Package #1 (Rear bumper cover; Rear seatback protector; Luggage compartment cover; Splash guard kit - Forester; Set of 4 all-weather floor mats). Best of luck ...
by AdamFist
Thu May 29, 2014 7:16 pm
Forum: Personal Consumer Issues
Topic: Credit card "payment networks"--how many are there, e.g Amex
Replies: 18
Views: 4530

Re: Credit card "payment networks"--how many are there, e.g

TJSI wrote:... Is Paypal a payment network? They are at least a brand.
Yes, PayPal leverages existing cardholder accounts to build it's own brand. It has a unique position in the Payment Industry that may likely never be duplicated to the same scale.

Going back to TJSI's comment, front of card typically has the card brand + (issuing bank or co-brand). Back of card for Visa and Mastercard has affiliated debit networks (there may be more than 1). Durbin has changed the requirement on how debit transactions are processed.

Adam
by AdamFist
Thu May 29, 2014 4:13 pm
Forum: Personal Consumer Issues
Topic: Credit card "payment networks"--how many are there, e.g Amex
Replies: 18
Views: 4530

Re: Credit card "payment networks"--how many are there, e.g

Payments 101 at a glance 1. Visa, Mastercard, American Express, Discover are card Brands/Associations...also referenced as "Traditional Payments" 2. Each Brand/Association has their own set of rules that determine how transactions and disputes are resolved between all parties participating in the transaction 3. Visa, Mastercard are also known as "bank cards" since they are typically issued by a banking institution 4. American Express is typically issued by AMEX though in some cases, they can be co-branded with a banking institution 5. Discover is typically issued by Discover, with similar exceptions as AMEX 6. American Express and Discover are unique since they can represent the merchant and cardholder in a transaction/d...
by AdamFist
Thu May 29, 2014 7:55 am
Forum: Personal Finance (Not Investing)
Topic: Are hybrid cars a good idea yet?
Replies: 105
Views: 13946

Re: Are hybrid cars a good idea yet?

OP. Not directly related to your original question, but I noticed that you are in Atlanta, GA. If it fits your transportation needs, you may want to consider an Electric Vehicle (EV). I evaluated my needs last year and decided to lease a Nissan LEAF. Factoring in the $7.5k Federal credit (reduces the cost of the lease) and the current $5k GA tax credit (income tax filing), I will be close to break even over the 24 month lease. Check out this Nissan LEAF forum, which has a ton of info... http://www.mynissanleaf.com/viewforum.php?f=23&sid=fe438204835946e9c84f41310773848c The drawback is the range might be limiting (75-100 miles per charge) and it takes awhile to recharge on a regular 110v line. I had a 220v home charger installed which re...
by AdamFist
Fri Dec 06, 2013 10:17 pm
Forum: Personal Consumer Issues
Topic: Buying a new car vs leasing
Replies: 61
Views: 8734

Re: Buying a new car vs leasing

Lots of ground covered here but leasing is essentially a more complicated form of buying and only makes sense in certain situations. If you like to get new luxury cars every 2-3 years leasing is likely more cost effective than buying. If your car acquisition cycle is 10-11 years, buying is the the way to go. The total cost of the lease is the difference between the negotiated price and the residual value plus fees (dealer, acquisition or disposition, etc.) and taxes. I agree with JoeJohnson about how to pay for leases: I prefer $0 down with a larger monthly payment because if the vehicle gets totaled, I don't lose the down payment. For the dealer/leasing company, a down payment reduces their risk. For the lessee, a down payment is unrecover...
by AdamFist
Fri Dec 06, 2013 8:36 pm
Forum: Personal Consumer Issues
Topic: Buying a Honda in Atlanta
Replies: 16
Views: 2202

Re: Buying a Honda in Atlanta

Leesbro63 - I will pm you with names of salespeople I thought were helpful. As one other poster mentioned, get a CarMax appraisal so you know what the expected value of your trade is. There's a CarMax located off I-85 conveniently in between Curry and Gwinnett Place Honda. Check the Edmunds forum for Honda CR-V prices: http://townhall-talk.edmunds.com/direct/view/.ef11a94 TAVT - As you know already, GA changed the tax system earlier this year. You can reference this website to get a rough idea of the TAVT on the purchase and trade-in. I've noticed some inconsistencies on the actual TAVT value calculated but it's supposed to be 6.5% of MSRP, not the negotiated vehicle price. http://onlinemvd.dor.ga.gov/Tap/welcome.aspx I suggest you start wi...
by AdamFist
Wed Nov 13, 2013 8:18 am
Forum: Personal Consumer Issues
Topic: Attic insulation for new home?
Replies: 30
Views: 3395

Re: Attic insulation for new home?

When we built our house last year, we had open cell foam insulation put into the attic space for $5500. I think $4800 is too much for fiberglass insulation.
by AdamFist
Tue Oct 15, 2013 9:32 am
Forum: Personal Consumer Issues
Topic: My New Car Buying Tips
Replies: 741
Views: 206702

Re: My New Car Buying Tips

Here's a question I've wondered about... How much is a reasonable target to shoot for below sticker price of a car? And I mean OTD price. Say a car sticker price is $X. Is it reasonable to shoot for 5% less (including all taxes and fees, etc) than X? 1% ? 10% ? What constitutes a "good price" in people's minds? This depends on the vehicle, demand, incentives and dealer. I've read from various sources that dealers and manufacturers know the public still perceives Invoice price as dealer cost, which is no longer the case. If you have time to research, go to your target vehicle's forum on Edmunds.com and another active forum community. If you search going back a year, you should get an idea of what the market is at various times of ...
by AdamFist
Fri Oct 04, 2013 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Convert from W2 to 1099 to enable pre-tax retirement savings
Replies: 6
Views: 1428

Convert from W2 to 1099 to enable pre-tax retirement savings

I'd like to test the proposal with the Boglehead community for converting my wife's employment status from W2 to 1099 as a way to enable pre-tax retirement savings. Our situation: * My wife works for a small optometry practice as an employee optometrist * Her employer does not currently provide direct deposit or retirement savings accounts (e.g. 401k, etc). Employer did provide 401k in the past but does not want to deal with the hassle of administering a 401k plan. * Her employer pays for malpractice insurance * We only use vacation benefits provided by her employer (8 hours per month of service) * My employment provides our family's medical insurance benefits * I max out my 401k contributions * My wife is not interested in opening her own ...
by AdamFist
Thu Oct 03, 2013 4:14 pm
Forum: Personal Consumer Issues
Topic: 2007 Honda Civic, to sell or not to sell?
Replies: 57
Views: 6837

Re: 2007 Honda Civic, to sell or not to sell?

My opinion is to continue driving a vehicle if it safely and reliably meets your needs.
by AdamFist
Thu Oct 03, 2013 2:42 pm
Forum: Personal Consumer Issues
Topic: weigh in Bogleheads - new car or used?
Replies: 19
Views: 2091

Re: weigh in Bogleheads - new car or used?

After considering most minivan options (New vs. Used)(Odyssey/Sienna/Quest/Sedona/Town & Country) since mid-August, we settled on Odyssey. I agree with a previous post that a used car savings start at 3+ years but at this point, the vehicle is typically out of warranty. Certified Pre-Owned adds 12 months, 12k miles to the original warranty but my opinion is that it only makes sense if you purchase a Pre-Owned vehicle <12 months, <12k miles. Note : I believe a HondaCare Warranty can be purchased on a used vehicle (up to some mileage threshold) that can extend the coverage but the premium goes up for older/higher mileage vehicles you want to cover. So I'm now looking at a new Odyssey but the 2013s sold out in August due to heavy incentive...
by AdamFist
Sun Aug 18, 2013 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: Help me prepare for Diminished Value Claim
Replies: 4
Views: 1108

Help me prepare for Diminished Value Claim

My vehicle was struck by another car in the parking lot at work 10 days ago. The other driver did the right thing by leaving her contact information on my windshield and filing a police report. By the time I called the other driver, she had already opened up a claim with her insurance. Her bumper struck my right rear wheel well damaging my bumper, quarter panel, door, wheel. The repair work described to me involved removing bumper, tail light, quarter panel, door. I picked up my car this past Friday after all the repair work was complete. Here are some additional facts: 1. State of GA 2. 2012 Hyundai Elantra Limited, ~21k miles, no prior damage 3. Final repair cost: $1898.01 My questions for the Boglehead community: 1. How much should the i...
by AdamFist
Tue Aug 06, 2013 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Average cost to build a 5000 sq feet house
Replies: 56
Views: 88403

Re: Average cost to build a 5000 sq feet house

Here's a free tool, if you know the design and finishes you want to put in. This tool over estimated the cost of my new house.

http://www.building-cost.net/CornersType.asp
by AdamFist
Wed Jul 31, 2013 9:35 am
Forum: Personal Consumer Issues
Topic: Building new house - central vacuum worth it?
Replies: 52
Views: 23398

Re: Building new house - central vacuum worth it?

There are houses in our new construction neighborhood that have built in central vacuums. I considered the convenience but instead felt that the money was better spent upgrading other areas (e.g. foam insulation, etc.).
by AdamFist
Thu Jun 06, 2013 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Echeck processors
Replies: 6
Views: 835

Re: Echeck processors

I would avoid using a checking account to pay for purchases with a merchant that has a UPS store listed as the business address.

To protect myself in a non-retail environment where I don't know the merchant, I'd use my credit card due to chargeback rights. If the merchant accepts credit cards, you may want to consider using an issuer that provides the cardhoder the ability to generate Virtual Credit Card Numbers. When I had a Charles Schwab 2% Rewards Visa, I used a feature called "ShopSafe" which allowed me to generate disposable card numbers for a specific use. I believe this feature is offered by B of A, Discover and Citi.
by AdamFist
Tue May 07, 2013 12:56 pm
Forum: Personal Investments
Topic: Help guide my course of action for investment property
Replies: 7
Views: 1071

Re: Help guide my course of action for investment property

All the mortgage brokers I've spoken with have stated that I don't qualify for HARP 1/2. Apparently, I missed the cutoff by 1 month. How did you initiate a FHA streamlined refinance?
by AdamFist
Tue May 07, 2013 12:07 pm
Forum: Personal Investments
Topic: Help guide my course of action for investment property
Replies: 7
Views: 1071

Re: Help guide my course of action for investment property

Thanks Twins Fan - Yes, I'm undecided. Since I've converted it to investment property, I've needed to evolve my thinking and am asking for help in viewing it from an investment property angle. When this house was my primary residence, it was a great situation for me. Being a landlord does not add to my stress level and my long term goal is to own investment properties. My immediate goal is to determine whether I get rid of this property after the lease expires or hold onto it long term. If I decide to get rid of the property, I would try to find another investment property with more favorable conditions. If the property is worth holding onto long term, do I take the current refi opportunity and pay the loan balance down to refinance (reduci...
by AdamFist
Tue May 07, 2013 9:10 am
Forum: Personal Investments
Topic: Help guide my course of action for investment property
Replies: 7
Views: 1071

Help guide my course of action for investment property

Hello to the Boglehead community! Please help guide my course of action. Personal Finance Snapshot (Husband=45, Wife=34) No mortgage on primary residence and we pay off all revolving debt when incurred We conservatively net $5k+ per month after expenses $60k in savings accounts, we max out retirement accounts and add as much to our taxable investing accounts Investment Property (purchased in 2003 as Primary SFR, converted in 2012) Total Cost Basis: $300k + $70k improvements over 10 years (includes kitchen remodel in 2007, roof in 2009, HVAC in 2010, bathroom remodel in 2011) Under lease @ $1800 per month for the next 17 months (2 year lease), good renter Terms: 4.5% @ 360 months (currently in month 47 as of May 1) Current Balance: $268.5k M...
by AdamFist
Wed May 01, 2013 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Your Dumbest Financial Move
Replies: 166
Views: 20295

Re: Your Dumbest Financial Move

Buying a condo in Las Vegas in 2006 for $219k and selling it in 2011 for $66.5k. However, I could afford to do this because I needed to take losses to offset gains from a windfall.
by AdamFist
Mon Apr 29, 2013 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Interchange Plus vs. Flat Rate Pricing
Replies: 3
Views: 1005

Re: Interchange Plus vs. Flat Rate Pricing

If transparency is fundamental to the Boglehead approach (e.g. know what you are paying for), then I'd select Interchange+. You'll get a better sense of how transactions qualify and what you can do to improve Interchange qualifications. When it comes time to shop around for another merchant service provider, Interchange+ should be easier to compare.

~Adam
by AdamFist
Wed Jan 02, 2013 1:20 pm
Forum: Personal Consumer Issues
Topic: Building a custom house
Replies: 35
Views: 7745

Re: Building a custom house

We chose a local builder over a national builder because the local builder was more flexible in consulting with floor plan and finishes. As part of our design phase, we looked at floorplan ideas from the Frank Betz (http://www.frankbetz.com/) website to see which house features we wanted but without the opportunity to experience a completed product in-person, we opted for one of the builders' standard plans. The total cost of our new house included a consulting engagement with the architect (external features) and interior designer (colors). Out of curiosity, I wanted to know what the approximate cost would be and I performed a search and used the following website for informational purposes only: http://www.building-cost.net/ FWIW, the val...
by AdamFist
Tue Nov 06, 2012 7:23 am
Forum: Personal Consumer Issues
Topic: The Hyundai MPG Settlement
Replies: 20
Views: 3359

Re: The Hyundai MPG Settlement

If I'm not mistaken Hyundai will use the formula: (Reported miles driven, average gas price for the region you live in and the difference between the original MPG claim and revised MPG claim) + 15% inconvenience factor. For example, a Hyundai Elantra driven in CA at 15,000 miles per year, amounts to about $67 that Hyundai is willing to provide to the car owner. This doesn't come close to covering my "lost" fuel economy and diminished resale value. While Hyundai/Kia's admission is a step in the right direction, it falls short of being satisfactory.
by AdamFist
Tue Aug 14, 2012 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Advice wanted on home financing question
Replies: 6
Views: 974

Advice wanted on home financing question

I'm planning on closing on a new home in 3-4 weeks using cash. My original plan after moving is to sell my current house. However, it looks like I may be able to convert it to rental property and be cash flow positive if I'm able to find the right tenant. Anticipated monthly rent: $2500 Current Mortgage: $1460 @ 4.5%, 27/30 year fixed Property Taxes: $350 Insurance: $60 Net cash flow: $630 I can find a no closing cost loan @ 3.75%, 30 year fixed for a payment of $1260 per month. Since I'm not financing my new home, I wouldn't be carrying two mortgages. The $200 per month savings on a refi appears to be a sound decision and it will help with cash flow. Assuming my assumptions are correct, my questions are: 1. Do I have a good business case f...
by AdamFist
Thu Jul 12, 2012 12:38 pm
Forum: Personal Investments
Topic: Ford
Replies: 13
Views: 1533

Re: Ford

If I were in your position, I'd take the long term gains this year while the tax rate is favorable.
by AdamFist
Wed Jun 20, 2012 10:35 am
Forum: Personal Consumer Issues
Topic: What Do You Use for Streaming on Your TV?
Replies: 118
Views: 18309

Re: What Do You Use for Streaming on Your TV?

Xbox 360 for Netflix, YouTube and now Amazon.com video. If you're not a Xbox 360 gamer then you can look at other devices mentioned by previous posters.
by AdamFist
Fri May 25, 2012 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: Invest or Pay off Mortgage?
Replies: 6
Views: 1047

Re: Invest or Pay off Mortgage?

If I were in the OP's shoes, I would strongly consider a sale of the investment property as soon as possible. Since this was a conversion of a primary residence to investment property, it would also depend on the cost basis at conversion. The extra $500 per month could be used to pay down the loan. I would opt to save $500 in a separate account to stay liquid and wait until the time is right to sell.

Last year, I sold an investment condo at a huge loss to offset a huge-r capital gain. It was painful to write a huge check to cover the difference between sale proceeds and loan amount but my cash flow is so much better. What surprised me is the loss from the sale was written against ordinary income instead of capital gain.
by AdamFist
Wed May 09, 2012 3:44 pm
Forum: Personal Consumer Issues
Topic: New Civic or Corolla or Elantra.
Replies: 50
Views: 7213

Re: New Civic or Corolla or Elantra.

Between the 3, Elantra (I own a 2012 Elantra Limited). To the point that a previous poster made, I don't get close to the advertised MPG. The Elantra is also a bit underpowered but I still like the car.

The Ford Focus is a good drivers car but it had issues with the My Ford Touch. I'm guessing Ford has a fix for buggy software available by now.

The only other car I wish I had considered is the Mazda3 and knowing my experience with the Elantra Limited, I may have selected the Mazda3 since I traded in a 2003 Infiniti G35.
by AdamFist
Sat May 05, 2012 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Strategies for maximizing lifetime estate gift tax exclusion
Replies: 11
Views: 1671

Strategies for maximizing lifetime estate gift tax exclusion

Hello Bogleheads! I've searched these forums and haven't found any robust discussion on this topic, so I'm starting a new thread in the hopes of understanding the implication of acting or waiting. Here are some assumptions underlying my questions: 1. Gifter is retired and is mid-70s 2. Gifter has assets around $5m and willing to give most of their future estate 3. Gifter has reliable sources of income from pension, social security and retirement accounts 4. Gift receiver is experienced to manage potential gift responsibly My questions: 1. Is it better to take advantage of the current tax law or wait until Congress does something permanent? 2. Has a member of the Boglehead community taken advantage of the lifetime $5m gift tax exclusion befo...
by AdamFist
Thu Apr 26, 2012 2:35 pm
Forum: Investing - Theory, News & General
Topic: Why has Atlanta's housing market gone off a cliff?
Replies: 11
Views: 1586

Re: Why has Atlanta's housing market has gone off a cliff?

I'm speculating but since moving to Atlanta in 2003, I noticed two things: (1) many old in-town neighborhoods (Inman Park, Candler Park, East Atlanta) going thru the gentrification process. (2) Atlanta doesn't have a density problem like NYC, Chicago, San Francisco, Boston, etc. This 2006 NYT is a good milestone as to what was happening at the time: http://www.nytimes.com/2006/03/11/national/11atlanta.html?pagewanted=all "...demographers say, the shift is driven by class rather than race. In 1990, the per capita income in the city of Atlanta was below that of the metropolitan area as a whole, but in 2004 it was 28 percent higher, the largest such shift in the country, according to a University of Virginia urban planning study." I ...
by AdamFist
Sun Apr 15, 2012 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Losses in Real Estate Investments
Replies: 14
Views: 1976

Re: Losses in Real Estate Investments

Clarifying my earlier post, I didn't mean to be insensitive to the OP's opportunity cost to provide for his children's 529 plans. There's no need to feel guilty about making business decisions on taking investment losses; just crunch the numbers to see if it makes sense and execute if one has the means to do it. Everybody has to hit the reset button every now and then.
by AdamFist
Sun Apr 15, 2012 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Losses in Real Estate Investments
Replies: 14
Views: 1976

Re: Losses in Real Estate Investments

I will certainly check with a tax advisor about what I can do. It seems to me that I have to sell the property before I can deduct losses. If I sell the property from my LLC to me is that considered a legitimate sale? I have vested stock grants from work that I am unable to sell due to AMT. I am hoping and praying that I can sell those stocks to offset the losses from real estate sale. The only reason I am considering keeping these properties is because after putting in so much money my loan will be small and the properties will actually start cash flowing. I am a bogle head and invest in low cost index funds. I feel guilty that one poor decision all these years ago will result in me putting so much more money in to bad investment. This mo...
by AdamFist
Sun Apr 15, 2012 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Losses in Real Estate Investments
Replies: 14
Views: 1976

Re: Losses in Real Estate Investments

To the OP, I was in a similar situation. Refer to my post in the following thread:
http://www.bogleheads.org/forum/viewtop ... =2&t=90038

Basically I was able to write off the loss of selling my depreciable investment property against my ordinary income. I wasn't able to write off the entire loss due to adjusted cost basis from depreciation. But remember, this was MY situation so I can't say for certain this will help you out.

Adam
by AdamFist
Thu Apr 12, 2012 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Protesting Property Tax Appraisal
Replies: 9
Views: 1705

Re: Protesting Property Tax Appraisal

Every county process is different and the processes are designed to put the challenger at a disadvantage as much as possible. I challenged my tax assessment in 2010 but didn't get my hearing until 2011 with the county Board of Equalization (BoE). I represented myself and won my appeal; the education was worth the effort. My opinion is the BoE will be more open to a homeowner representing themselves as opposed to hired representation. I'd suggest the following: 1. Have a real estate agent pull comps. Using Zillow, Redfin, Trulia may not be as strong as using actual sales data. 2. Contact the person representing the county and work out an agreement 3. If you can't work out an agreement, ask the county rep what properties he/she will be using ...
by AdamFist
Sat Mar 10, 2012 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Please advise on funding approach for a new house purchase
Replies: 5
Views: 715

Re: Please advise on funding approach for a new house purcha

Thanks everyone. I attempted to update this thread with some additional info but it looks like it didn't post, so I will try to recreate it from memory. - The windfall is not an inheritance, my ownership of a startup was bought out. - Looking at just the numbers, I agree that buying new construction is not a Boglehead move. But our reasons for considering this is centered around access to family & lifestyle. We already have relatives in the new construction neighborhood and my bro-in-law will be building on the lot next to us. The goal is not just to build wealth but to live richly. - My $5-6k savings/investment range is NET (not gross) after current expenses after maxing out 401k, HSA. We do not qualify contributing to IRAs because we ...