Search found 402 matches

by gr7070
Fri Nov 08, 2019 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Anyone track their actual pension benefit start date?
Replies: 51
Views: 2904

Re: Anyone track their actual pension benefit start date?

Every pension plan that I've ever heard of requires an employee contribution ... I'd take that a step further and suggest that all the contributions are employee contributions, regardless of how they are labeled or categorized, because they are part of the compensation received in exchange for labo...
by gr7070
Wed Nov 06, 2019 3:31 pm
Forum: Investing - Theory, News & General
Topic: Do you invest in Real Estate ? Why ?
Replies: 142
Views: 19261

Re: Do you invest in Real Estate ? Why ?

Depreciation is recaptured when you sell. Usually at a higher rate than what you were able to claim. Depreciation is recaptured at the capital gains tax rate, 15%. Depreciation is tax deferral. It's the same mechanism we love about 401Ks. The deferral is realized at your highest tax rate, 22 or 24%...
by gr7070
Wed Nov 06, 2019 2:12 pm
Forum: Investing - Theory, News & General
Topic: Do you invest in Real Estate ? Why ?
Replies: 142
Views: 19261

Re: Do you invest in Real Estate ? Why ?

Depreciation is recaptured when you sell. Usually at a higher rate than what you were able to claim. Depreciation is recaptured at the capital gains tax rate, 15%. Depreciation is tax deferral. It's the same mechanism we love about 401Ks. The deferral is realized at your highest tax rate, 22 or 24%...
by gr7070
Wed Nov 06, 2019 1:40 pm
Forum: Investing - Theory, News & General
Topic: Why ever buy & hold a LT treasury?
Replies: 60
Views: 2930

Re: Why ever buy & hold a LT treasury?

I'm not saying stocks will ALWAYS outperform LT bonds over the life of the bond itself. But so far they always have. So the odds are stacked against buying and holding LT bonds. That's one reason. True, it doesn't appear too likely, but we really have no assurance. Statistically speaking we're guar...
by gr7070
Wed Nov 06, 2019 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Pay down 7% 403b loan or 3.74% car loan first?
Replies: 38
Views: 2042

Re: Pay down 7% 403b loan or 3.74% car loan first?

As a rule, a reasonable car loan for a car one can afford isn't a horrible thing. It's certainly not a positive, financially. Borrowing from retirement funds is just a bad idea, for all but the most dire needs (health, eviction?). Based upon that alone I'd knock out the 403b loan and never dip into...
by gr7070
Wed Nov 06, 2019 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Disability vs Term Life?
Replies: 19
Views: 990

Re: Disability vs Term Life?

I'm already looking at ~3k in costs annually for term (high/long term and have asthma which is making it expensive..), then probably double that for LTD. Judging by the large premium and your reaction it seems as though you may be over (life) insured??? Far too many folks buy way more life insuranc...
by gr7070
Wed Nov 06, 2019 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Credit score vs down payment
Replies: 25
Views: 1527

Re: Credit score vs down payment

Make the decision that most positively affects your future *net worth* and ignore your credit score. As you continue to make good decisions in that regard your credit score will rise simply because of those good decisions. 0. Live within your means - spend less than you make 1. Have an emergency fun...
by gr7070
Wed Nov 06, 2019 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Best month to take RMDs?
Replies: 86
Views: 4568

Re: Best month to take RMDs?

If there was an obvious month for market timing wouldn't this be grotesquely exploited already? Just pick one; based upon the other recommendations. "Sell in May and Go Away" That advice will never be more than 11/12ths incorrect, but I challenge you to a better Jingle. "Sell in July while the marke...
by gr7070
Wed Nov 06, 2019 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Disability vs Term Life?
Replies: 19
Views: 990

Re: Disability vs Term Life?

I'm already looking at ~3k in costs annually for term (high/long term and have asthma which is making it expensive..), then probably double that for LTD. In general, term life insurance is very affordable. Even as the need for a greater amount increases it is usually accompanied by a greater life s...
by gr7070
Tue Nov 05, 2019 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Disability vs Term Life?
Replies: 19
Views: 990

Re: Disability vs Term Life?

Many would consider LTD insurance as must have, myself included. Self-insuring for it would require one to nearly be financially independent. I would not go without until FI.

Comparing to term is not really apt as they perform two different functions.
by gr7070
Tue Nov 05, 2019 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Pay down 7% 403b loan or 3.74% car loan first?
Replies: 38
Views: 2042

Re: Pay down 7% 403b loan or 3.74% car loan first?

As a rule, a reasonable car loan for a car one can afford isn't a horrible thing. It's certainly not a positive, financially. Borrowing from retirement funds is just a bad idea, for all but the most dire needs (health, eviction?). Based upon that alone I'd knock out the 403b loan and never dip into ...
by gr7070
Tue Nov 05, 2019 7:03 am
Forum: Personal Finance (Not Investing)
Topic: H&R BLOCK Pre-Order 2019 Software Offer
Replies: 118
Views: 9575

Re: H&R BLOCK Pre-Order 2019 Software Offer

Did anyone receive an offer for the Premium & Business edition? $50 offer today. Can't remember how good a deal that is??? Not bad if it's the Premium & Business edition, not just Premium. The black Friday deal was $40 last year. It says "Self-employee/Rental. Premium" I'll likely but it now. That ...
by gr7070
Mon Nov 04, 2019 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: H&R BLOCK Pre-Order 2019 Software Offer
Replies: 118
Views: 9575

Re: H&R BLOCK Pre-Order 2019 Software Offer

tfb wrote:
Mon Nov 04, 2019 9:04 pm
Did anyone receive an offer for the Premium & Business edition?
$50 offer today. Can't remember how good a deal that is???
by gr7070
Mon Nov 04, 2019 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: H&R BLOCK Pre-Order 2019 Software Offer
Replies: 118
Views: 9575

Re: H&R BLOCK Pre-Order 2019 Software Offer

Anyone know what the premium/rental property version usually costs?

I received a $50 offer.
by gr7070
Mon Nov 04, 2019 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Does leasing make sense in this case?
Replies: 45
Views: 2742

Re: Does leasing make sense in this case?

michaeljc70 wrote:
Mon Nov 04, 2019 12:52 pm
I read the average new vehicle now is $37k. When you think that the average household income is in the 50s, it seems crazy.
It is crazy.

I'm nearly 50 years old and have not spent $37k on all of my vehicle purchases combined! Granted, this is probably crazy, too.
by gr7070
Mon Nov 04, 2019 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone track their actual pension benefit start date?
Replies: 51
Views: 2904

Re: Anyone track their actual pension benefit start date?

I'm hoping to live long enough to maximize my pension benefit and not be one of the people who pay into the plan for many years and then die soon after retiring. That's exactly what happened to several of my colleagues. Money's just not that important and a horrible barometer for life. Maximize the...
by gr7070
Mon Nov 04, 2019 1:02 am
Forum: Personal Finance (Not Investing)
Topic: Anyone track their actual pension benefit start date?
Replies: 51
Views: 2904

Re: Anyone track their actual pension benefit start date?

Additionally, you're comparing a fictitious number. That interest added to your contribution is fictitious now that you're receiving retirement benefits that number has no relevance. Comparing your withdrawn amount to some fake accumulated amount doesn't matter either. Why not use 8% or 12%, heck us...
by gr7070
Mon Nov 04, 2019 12:35 am
Forum: Personal Finance (Not Investing)
Topic: Anyone track their actual pension benefit start date?
Replies: 51
Views: 2904

Re: Anyone track their actual pension benefit start date?

Who cares. It's a sunk cost. A pension is a benefit. This is a way of measuring to what extent you've taken advantage of the benefit. You've already retired. Nothing is changing this, thus the sunk cost. The time to look closely at the value of your benefits was when you could change your overall c...
by gr7070
Mon Nov 04, 2019 12:07 am
Forum: Personal Finance (Not Investing)
Topic: Anyone track their actual pension benefit start date?
Replies: 51
Views: 2904

Re: Anyone track their actual pension benefit start date?

Who cares. It's a sunk cost. A pension is a benefit. This is a way of measuring to what extent you've taken advantage of the benefit. You've already retired. Nothing is changing this, thus the sunk cost. The time to look closely at the value of your benefits was when you could change your overall c...
by gr7070
Sun Nov 03, 2019 11:46 pm
Forum: Personal Finance (Not Investing)
Topic: How far can/should I go leveraging on rental properties?
Replies: 21
Views: 1773

Re: How far can/should I go leveraging on rental properties?

would be looking at 60k-100k/year in gross rental cash flow. That's more than enough for my to live off of (likely including health insurance). But if I could do that while still working full time, I would be making between 130k-170k/year (current inflation). I like/don't mind my job so I'm not try...
by gr7070
Sun Nov 03, 2019 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: New Job, Depressed, Money issues
Replies: 89
Views: 11700

Re: New Job, Depressed, Money issues

First and foremost get a counselor! Get 30 minutes exercise every day. Very important for mental health. Take magnesium supplements, too. Option B isn't an option - it's more or less the same job you have for less money. Forget that; it's not helping you. An option C could be an option, if it's some...
by gr7070
Sun Nov 03, 2019 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: How far can/should I go leveraging on rental properties?
Replies: 21
Views: 1773

Re: How far can/should I go leveraging on rental properties?

No. Leverage is expressed as % of the total asset value, or as a multiple of the equity. OK, I think I get it. So of my mortgages and car loan, my weighted debt to value ratio is 83%. If I consider my CC, solar panels, and 403b loan to be valued at 0, my weighted ratio becomes 94%. I would separate...
by gr7070
Sun Nov 03, 2019 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: How far can/should I go leveraging on rental properties?
Replies: 21
Views: 1773

Re: How far can/should I go leveraging on rental properties?

Did you pay points on your rental mortgage's?

Points are usually a bad deal. Especially when you have a lot of added debt outside the mortgages. Plus you're wanting to acquire more properties, which means you need more cash for money down.
by gr7070
Sun Nov 03, 2019 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: How far can/should I go leveraging on rental properties?
Replies: 21
Views: 1773

Re: How far can/should I go leveraging on rental properties?

I would not consider paying off your consumer debt as "deleveraging". That's cleaning up bad debt. Do you have a reasonable maintenance and vacancy fund? What is your equity percent in your rental properties? Do you have a personal emergency fund, as well? Likely regardless of some of those answers ...
by gr7070
Sat Nov 02, 2019 8:55 am
Forum: Personal Finance (Not Investing)
Topic: H&R BLOCK Pre-Order 2019 Software Offer
Replies: 118
Views: 9575

Re: HRBLOCK Pre-Order 2019 Software Offer

Here it begins. Bogleheads with multimillion profiles looking for tax software deals. I am a multi-millionaire. Last year I ordered hr block too early. I can still feel the sting of watching others get the software for $10 less than me. By starting to reuse ziplock bags and save bread ties, I convi...
by gr7070
Fri Nov 01, 2019 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Possible Layoff: Need Assurance That We Will Be Okay
Replies: 153
Views: 12562

Re: Possible Layoff: Need Assurance That We Will Be Okay

This literally MUST be a joke. It isn't a joke. Since the news hit, I have felt pretty sick and worried and couldn't sleep at all last night. Got up at 2:00 and came into the office to think and ponder. And to post my query. I do not handle uncertainty well. Financially you will be fine. Don't disc...
by gr7070
Fri Nov 01, 2019 8:17 am
Forum: Personal Finance (Not Investing)
Topic: [Have no mortgage, sell or rent the house?]
Replies: 4
Views: 342

Re: [Have no mortgage, sell or rent the house?]

As great as Bogleheads forum is and as well meaning as the posters are, you'd be better off on a real estate forum for these types of discussions.

Do not ignore the other direct financial benefits of rental property in your analysis.
by gr7070
Fri Nov 01, 2019 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 690
Views: 70485

Re: Why are you NOT buying rental properties?

Another reason not to mess around with rental properties is that there are so many scams related to it. You can get scammed when you buy. You can get scammed when you sell. You can get scammed by the tenant. You can get scammed by your property management company. It's basically a nightmare. Sure t...
by gr7070
Thu Oct 31, 2019 11:38 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Have a Crummy Local Government Pension?
Replies: 51
Views: 4126

Re: Do I Have a Crummy Local Government Pension?

One doesn't have to be a fighter pilot or astronaut to have an interesting government job. I'm a forensics engineer. I explore why things fail, how/if to fix them, and prevent from happening in the future. Because I work for the government I have access to training and to nationwide experts that I w...
by gr7070
Thu Oct 31, 2019 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 690
Views: 70485

Re: Why are you NOT buying rental properties?

Are you talking about the financial markets/products? 2008 begs to differ with you. I am teasing. However, it is interesting how some folks can gloss over risks of one investment while emphasizing those of another. The $10k in damages caused by a bad tenant or a leaky roof has to be paid. A $10k lo...
by gr7070
Thu Oct 31, 2019 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 690
Views: 70485

Re: Why are you NOT buying rental properties?

I have seen so many people get badly burnt because they did not know what they were doing. Are you talking about the financial markets/products? My Balance Index Fund never gets a leaky roof or bad tenants. 2008 begs to differ with you. I am teasing. However, it is interesting how some folks can gl...
by gr7070
Wed Oct 30, 2019 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 690
Views: 70485

Re: Why are you NOT buying rental properties?

I have seen so many people get badly burnt because they did not know what they were doing. Are you talking about the financial markets/products? My Balance Index Fund never gets a leaky roof or bad tenants. 2008 begs to differ with you. I am teasing. However, it is interesting how some folks can gl...
by gr7070
Wed Oct 30, 2019 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 690
Views: 70485

Re: Why are you NOT buying rental properties?

I have seen so many people get badly burnt because they did not know what they were doing. Are you talking about the financial markets/products? My Balance Index Fund never gets a leaky roof or bad tenants. 2008 begs to differ with you. I am teasing. However, it is interesting how some folks can gl...
by gr7070
Wed Oct 30, 2019 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Have a Crummy Local Government Pension?
Replies: 51
Views: 4126

Re: Do I Have a Crummy Local Government Pension?

[25% of my salary is being saved, but it just doesn't feel like I'm going to end up with a payout worthy of 25 years of 25% contributions. OP: The 25% really does not have much to do with your payout. The employer contribution has as much or more to do with the actuarial soundness of the plan. Past...
by gr7070
Wed Oct 30, 2019 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 690
Views: 70485

Re: Why are you NOT buying rental properties?

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 Depreciation amount is not an expense. It is tax deferment, the same incredible benefit we have in a traditional retirement plan....
by gr7070
Wed Oct 30, 2019 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Are federal health benefits worth postponing early retirement?
Replies: 60
Views: 5695

Re: Are federal health benefits worth postponing early retirement?

So far no one has put a cost on waiting. Does everyone believe that not working for an extra ten years or so has no value? This has been a strange thread where so many posts appear to be emotion based. Many posters have suggested that getting free health insurance is too valuable to consider the ot...
by gr7070
Wed Oct 30, 2019 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Do I Have a Crummy Local Government Pension?
Replies: 51
Views: 4126

Re: Do I Have a Crummy Local Government Pension?

If you are only working part of your career in a pension job, the math works out much better if the pension job comes at the end of your career than at the beginning. That's just a fact of life and the result of two factors: (1) inflation, and (2) compound returns. This is good thinking and why I f...
by gr7070
Tue Oct 29, 2019 9:11 pm
Forum: Investing - Theory, News & General
Topic: Difficulty lnvesting a Windfall
Replies: 25
Views: 3301

Re: Difficulty lnvesting a Windfall

Watty wrote:
Tue Oct 29, 2019 7:12 pm
There are LOTS of opinions on it but if you have a mortage then paying it off, or doing a mortage recast, would be another option to consider.
Excellent option, especially with the outlook presented in the OP.
by gr7070
Tue Oct 29, 2019 5:34 pm
Forum: Personal Investments
Topic: What should a mid 30s Asset Allocation be?
Replies: 45
Views: 2308

Re: What should a mid 30s Asset Allocation be?

I would definitely be paying extra on the house - I'd want to ultimately remove that debt sooner for the sake of it; regardless of optimization, but it does potentially bring some financial value to do so as well. I'd also add some bonds, for the typical reasons expressed above. You could get away w...
by gr7070
Tue Oct 29, 2019 4:19 pm
Forum: Investing - Theory, News & General
Topic: Difficulty lnvesting a Windfall
Replies: 25
Views: 3301

Re: Difficulty lnvesting a Windfall

I have invested everything in my equity allocation each and every minute that I do not hit the "liquidate entire portfolio" button in side my account. So I literally invest a windfall every trading day. Today is no different than yesterday and tomorrow will be no different than today with regards t...
by gr7070
Tue Oct 29, 2019 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Have a Crummy Local Government Pension?
Replies: 51
Views: 4126

Re: Do I Have a Crummy Local Government Pension?

A 15.75% match is very generous, but I would worry about the 62% funded rate causing a future haircut (could be explicit or implicit as the benefits is inflated away without a COLA (especially if coupled with losing SS). If a lump sum is allowed, you can always compare a SIPA vs pension at the time...
by gr7070
Tue Oct 29, 2019 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Have a Crummy Local Government Pension?
Replies: 51
Views: 4126

Re: Do I Have a Crummy Local Government Pension?

At some point, based upon the terms of the defined benefit a pension can be a bad thing. So, yes, it is conceivable an employee could excited to not have a forced pension. See social security as an example. The thought of social security as a pension is a misconception espoused by many. It's not a ...
by gr7070
Tue Oct 29, 2019 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Have a Crummy Local Government Pension?
Replies: 51
Views: 4126

Re: Do I Have a Crummy Local Government Pension?

Would you be excited NOT to have such a benefit at your place of employment? Think about this, all of the calculations you are doing now are useless because your salary is not going to remain the same for the next 21 years of service, it's likely you will receive a raise over the next 16 years when...
by gr7070
Tue Oct 29, 2019 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Have a Crummy Local Government Pension?
Replies: 51
Views: 4126

Re: Do I Have a Crummy Local Government Pension?

A 15.75% match is very generous, but I would worry about the 62% funded rate causing a future haircut (could be explicit or implicit as the benefits is inflated away without a COLA (especially if coupled with losing SS). If a lump sum is allowed, you can always compare a SIPA vs pension at the time...
by gr7070
Tue Oct 29, 2019 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Have a Crummy Local Government Pension?
Replies: 51
Views: 4126

Re: Do I Have a Crummy Local Government Pension?

A pension for the sake of it is not necessarily a positive. Some of the very most important factors in a pension are the employee contributions, the defined return, and the rule of withdrawal. 9.25% contribution 1.5% per year of service Rule of 85 Your pension does *not* look like a good one with th...
by gr7070
Mon Oct 28, 2019 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 690
Views: 70485

Re: Why are you NOT buying rental properties?

Other silly discussions of how rental property takes tons of extra time or is a second job. This is far, far from true. There's a reason it's called passive income. Rental property is a business. Like all other non-sole proprietors the decision is made to add employees, to add consultants and subs,...
by gr7070
Sat Oct 26, 2019 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Reduce roth 401(k) to just match to prepay mortgage?
Replies: 51
Views: 2641

Re: Reduce roth 401(k) to just match to prepay mortgage?

The best thing I ever did was to max out my 401k at the height of the dot com bubble (also the worst time to do so). The reason why this was such a good idea was that the following few years (the dot com crash) I was still maxing out my 401k and now those investments have multiplied a few times ove...
by gr7070
Sat Oct 26, 2019 9:48 am
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 690
Views: 70485

Re: Why are you NOT buying rental properties?

You said "I have a property manager who has been taking good care of the properties." How long has this been the case? I was a landlord for 15 years, and nearly unanimously all the experienced landlords I heard from had little good to say about property managers - which if it worked out well would ...
by gr7070
Sat Oct 26, 2019 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Reduce roth 401(k) to just match to prepay mortgage?
Replies: 51
Views: 2641

Re: Reduce roth 401(k) to just match to prepay mortgage?

The best thing I ever did was to max out my 401k at the height of the dot com bubble (also the worst time to do so). The reason why this was such a good idea was that the following few years (the dot com crash) I was still maxing out my 401k and now those investments have multiplied a few times ove...