Search found 196 matches

by gr7070
Fri May 04, 2018 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Interest only loan
Replies: 24
Views: 2296

Re: Interest only loan

I think an interest only loan with near-historic low interest rates is foolish. How much of that nest egg you've built up is solely due to the interest only loan? I suspect not nearly as much as you appear to give it credit for. You can really only look at the difference in mortgage payment and the ...
by gr7070
Fri May 04, 2018 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Help me to decide sale my condo vs continue living at condo
Replies: 7
Views: 594

Re: Help me to decide sale my condo vs cont. to live

I would just make the decision based on where you want to live. Do you like living there or not? I wouldn't base the decision on predicting what the condo will sell for in 2-3 years. This! I see nothing compelling financially suggesting to sell or to stay. So do whatever works best for your preferr...
by gr7070
Fri May 04, 2018 12:22 am
Forum: Personal Finance (Not Investing)
Topic: Pay $2500 in rent or continue living at home
Replies: 91
Views: 6733

Re: Pay $2500 in rent or continue living at home

Get out!


P.S. great movie, too.
by gr7070
Fri Apr 20, 2018 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: Guaranty appraisal on real estate. Good idea? This must be a bubble?
Replies: 21
Views: 1540

Re: Guaranty appraisal on real estate. Good idea? This must be a bubble?

BTW you've mentioned many times in this thread what these homes used to sell for. It does not matter - assuming it's not a significant bubble, and at $200k prices the bubble isn't that big if there is one. All that matters is what is the market rate and are you willing to buy at that rate. I see yo...
by gr7070
Fri Apr 20, 2018 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Guaranty appraisal on real estate. Good idea? This must be a bubble?
Replies: 21
Views: 1540

Re: Guaranty appraisal on real estate. Good idea? This must be a bubble?

BTW you've mentioned many times in this thread what these homes used to sell for.

It does not matter - assuming it's not a significant bubble, and at $200k prices the bubble isn't that big if there is one.

All that matters is what is the market rate and are you willing to buy at that rate.
by gr7070
Fri Apr 20, 2018 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Guaranty appraisal on real estate. Good idea? This must be a bubble?
Replies: 21
Views: 1540

Re: Guaranty appraisal on real estate. Good idea? This must be a bubble?

Meh. I don't quite see the point. The only way it's bad is if you're losing houses to other similar offers based on your inclusion of the clause. The only way it's a positive is if your offer is out of line with the current market and this enables you to back out of an accepted offer. If you and you...
by gr7070
Fri Apr 20, 2018 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage refinance rate shopping?
Replies: 14
Views: 1251

Re: Mortgage refinance rate shopping?

Check with credit unions. I'm in Florida. I've always had good luck with GTE Financial and Pentagon Federal (PENFED) credit unions. PenFed is a great lender and they're usually at or near the very best interest rates. At the very least make sure you aren't getting a higher interest rate than their....
by gr7070
Fri Apr 20, 2018 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage refinance rate shopping?
Replies: 14
Views: 1251

Re: Mortgage refinance rate shopping?

If you have good credit... Call a number of lenders. Ask for their best interest rate for a high credit score and the amount of first party closing costs - no third party costs. Each call should only take a few minutes. Note, closing costs matter a ton, not just the rate. In fact, in my experience t...
by gr7070
Wed Apr 18, 2018 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 9826

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

My question to the BH community is "why there is so much emphasis on safety without really understanding the basic underlying reasoning as to how and who is providing it? Because safety is an emotional quality. It's no longer an objective discussion. One person's safety is another person's irration...
by gr7070
Wed Apr 18, 2018 12:01 am
Forum: Personal Finance (Not Investing)
Topic: [How should I pay off my mortgage?]
Replies: 11
Views: 1474

Re: [How should I pay off my mortgage?]

Colorado wrote:
Tue Apr 17, 2018 5:11 pm
I do keep a year's expenses in cash and three year's expenses in easily accessible securities outside of tax-deferred accounts,
The guy's got a *4 year* emergency fund and posters think that's not enough?! That's laughably absurd.

If you want to pay off the house early go for it!
by gr7070
Tue Apr 17, 2018 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Best High Interest Savings Account?
Replies: 20
Views: 2328

Re: Best High Interest Savings Account?

If you have money at a brokerage like Vanguard or Schwab you can use their Money Market Funds to get ~1.65-1.75% on any balance. That's not been my experience with Vanguard for well over a decade. They're consistently way below even the second tier online savings accounts. Right now Prime MMA is pa...
by gr7070
Tue Apr 17, 2018 7:02 am
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 9826

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

Yes. My question would be is $75,ooo per year enough 30, 40, 50 years from now. I highly doubt it is, if 75k is appropriate today. I'm guessing you're planning on adjusting for inflation or using a 2.5% withdrawal rate - not a static 75k??? The answer would still be yes. Somewhere between $40k to $...
by gr7070
Mon Apr 16, 2018 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: If home prices decline but mortgage rates keep rising
Replies: 25
Views: 3062

Re: If home prices decline but mortgage rates keep rising

Owning a home is a two-part question:
Can I reasonably afford it?
Will home ownership provide the lifestyle I want?

Ignore the other issues, except for those items that fit into these two questions.
by gr7070
Mon Apr 16, 2018 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?
Replies: 121
Views: 9826

Re: 2.5% Withdrawal for 50 Years With 50/50 Portfolio?

Yes.

My question would be is $75,ooo per year enough 30, 40, 50 years from now. I highly doubt it is, if 75k is appropriate today.

I'm guessing you're planning on adjusting for inflation or using a 2.5% withdrawal rate - not a static 75k???

The answer would still be yes.
by gr7070
Mon Apr 16, 2018 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Best High Interest Savings Account?
Replies: 20
Views: 2328

Re: Best High Interest Savings Account?

Alliance CU has been in that second tier for easily a decade. Currently 1.5% ("savings account"). I take the second tier in this case because that never changes (for a decade anyway). They have no gimmicks and their rates are always just under the top performers; who seem to move in and out over tim...
by gr7070
Mon Apr 16, 2018 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Asset allocation for self-employed, independent contractor
Replies: 6
Views: 514

Re: Asset allocation for self-employed, independent contractor

I do not consider the cash on hand as part of my AA. As such, my business situation does not impact my investment risk (AA) at all as I do not factor my EF into my AA. This. Disassociate the two. Determine how large a professional "EF" you require and allocate that appropriately - mostly cash. Then...
by gr7070
Sun Apr 15, 2018 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Buy a used car or lease one for business use
Replies: 10
Views: 1229

Re: Buy a used car or lease one for business use

ig77 wrote:
Sun Apr 15, 2018 8:37 pm
Thanks for the replies. Appears that leasing is more beneficial from tax perspective. Any other thoughts?
What's the most beneficial from financial perspective to the business?
by gr7070
Sun Apr 15, 2018 9:51 pm
Forum: Personal Finance (Not Investing)
Topic: Use 25k From Brokerage Account For Investment Property?
Replies: 29
Views: 2549

Re: Use 25k From Brokerage Account For Investment Property?

aristotelian wrote:
Sun Apr 15, 2018 3:12 pm
Who would ever rent a house for $2k/mo when they could buy one for $700/mo?
No one. Considering they could likely rent the $160,000 house next door for half what OP is wanting.
by gr7070
Sun Apr 15, 2018 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Use 25k From Brokerage Account For Investment Property?
Replies: 29
Views: 2549

Re: Use 25k From Brokerage Account For Investment Property?

oinkyboinky wrote:
Sun Apr 15, 2018 1:47 pm
I'm debating whether it's a good idea to use 25k from a brokerage (taxable) account to purchase an investment property
oinkyboinky wrote:
Sun Apr 15, 2018 2:03 pm
mega317 wrote:
Sun Apr 15, 2018 2:00 pm
Also we don't know anything else about you. Is 25k your entire taxable account?
Great question!

25k is indeed my entire taxable account.
Easy answer; no.
by gr7070
Thu Apr 12, 2018 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Investing outside of retirement accounts
Replies: 12
Views: 1148

Re: Investing outside of retirement accounts

Stock index fund. Thus Vanguard Total Stock Market fund. Done. That's assuming you're good with the volatility. That's part of the problem, I'm not. I want the returns, but without excessive volatility. I'm thinking VTMFX - Vanguard Tax Managed Balanced may be the way to go. Or half, VTMFX, and hal...
by gr7070
Thu Apr 12, 2018 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Why traditional IRA better than Roth IRA
Replies: 87
Views: 8200

Re: Why traditional IRA better than Roth IRA

For the extreme majority of middle class America the tax-deferred account is exceedingly likely to be superior to the Roth account. The deferred account saves you 25% taxes on every penny. Presumably we will always have a graduated tax. Therefore in the future some of that will be taxed at very low ...
by gr7070
Thu Apr 12, 2018 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Investing outside of retirement accounts
Replies: 12
Views: 1148

Re: Investing outside of retirement accounts

Stock index fund. Thus Vanguard Total Stock Market fund. Done.

That's assuming you're good with the volatility.
by gr7070
Wed Apr 11, 2018 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Help me choose a top law school!
Replies: 65
Views: 6297

Re: Help me choose a top law school!

I'd give serious consideration to a free ND degree. Quality ranking school with a significant loyal alumni. The poster above commenting about debt driving future decisions and limiting your options is a reasonable point. Also is their point about potentially not liking law. I know of a number of law...
by gr7070
Mon Apr 09, 2018 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: Newbie Looking to Get Started
Replies: 15
Views: 1382

Re: Newbie Looking to Get Started

Cricket would be around $100 per month for cell phone service.

Dump the home phone.

That's a pain-free start.

Dump the car. A $10,000 car can very reasonably handle transportation needs and do so very reliable. While not effortless this should be pain-free.
by gr7070
Mon Aug 07, 2017 7:39 am
Forum: Personal Finance (Not Investing)
Topic: 20 year vs. 30 year Term Life Insurance
Replies: 18
Views: 3059

Re: 20 year vs. 30 year Term Life Insurance

20. By the time you're 50-something you'll each have larger incomes relative to CoL. You'll also have much higher net worths, which itself could take the place of life insurance should both of you die. Plus you'll be 20 years closer to no mortgage. Most folks carry too much life insurance for too lo...
by gr7070
Sun Aug 06, 2017 12:28 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 7469

Re: Anyone else have trouble spending?

I never used to spend money on more frivolous things; no wants, just needs. Frankly not even on needs. My wife is more a spender than I. We gave ourselves an allowance to limit her spending. That allowance enabled me to spend on things I never would have: nice items supporting my hobbies like more e...
by gr7070
Thu Aug 03, 2017 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Will / Trust attorney fees -- how much? (quoted $2000-3000)
Replies: 35
Views: 4764

Re: Will / Trust attorney fees -- how much? (quoted $2000-3000)

We bought $1MM 30 year term with a $2MM 20 year rider. So we have $3MM coverage until age 53 and $1MM coverage from 53-63. We bought it while we were young, healthy, easily insurable. It's cheap and represents about 10 yrs salary. I suppose it would cover debts such as a mortgage, childcare if one ...
by gr7070
Thu Aug 03, 2017 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Will / Trust attorney fees -- how much? (quoted $2000-3000)
Replies: 35
Views: 4764

Re: Will / Trust attorney fees -- how much? (quoted $2000-3000)

Well, there's your contrary opinion, OP. Most of us would disagree. A potential estate exceeding $7 million is not a DIY project. It is if the will says when I'm dead she gets everything or if she's dead they get everything. That's hard to screw up. It's also not a $7M estate, at least as far as th...
by gr7070
Wed Aug 02, 2017 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Will / Trust attorney fees -- how much? (quoted $2000-3000)
Replies: 35
Views: 4764

Re: Will / Trust attorney fees -- how much? (quoted $2000-3000)

I guess my initial thought was that if the attorney has all of the pertinent info prior to starting the project, they would be able to make an accurate projection regarding the cost. A million times yes to this!! You're asking for very basic planning! You're very specific. How in the hell can they ...
by gr7070
Wed Jul 26, 2017 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Post Nuptial agreement guaranteeing alimony?
Replies: 113
Views: 8614

Re: Post Nuptial agreement guaranteeing alimony?

75% sounds absurdly high! I suspect that's because y'all haven't been married that long and your incomes are a much bigger percentage of your net worth than they would be were you married for 15+ years. That percentage needs to vary as your married years varies. If not, one of you would be getting s...
by gr7070
Tue Jul 11, 2017 6:56 am
Forum: Personal Consumer Issues
Topic: Solar panels
Replies: 96
Views: 9703

Re: Solar panels

I'm curious: How susceptible are systems to hale damage? How much increase to homeowners insurance should one expect? I assume they're covered typically??? I assume typical deductible is applicable??? I live in rather conservative Texas, but liberal Austin. Anyone know anything specific about that a...
by gr7070
Fri Jun 30, 2017 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Those who max 401k
Replies: 55
Views: 8966

Re: Those who max 401k

Good call on the match. Whats the best way to ask HR if they match even for the checks that don't have 401k taken out(after max is reached)? Thanks! Email them and ask them if they true-up matching contributions if you max out early. There should be a clearly stated policy. If not, assume they don'...
by gr7070
Fri Jun 30, 2017 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Work / life balance and overtime
Replies: 10
Views: 1360

Re: Work / life balance and overtime

No offense, if I was you I wouldn't give a hoot about extra money. At the current rate you will have more then enough money as you won't have anybody else in your life. If you are interested in a relationships and kids then go get them. They aren't going to be found at work. As you have said you ar...
by gr7070
Sat Jun 24, 2017 12:03 am
Forum: Personal Finance (Not Investing)
Topic: New Baby - Wife stay at home for 1 year?
Replies: 48
Views: 5384

Re: New Baby - Wife stay at home for 1 year?

My wife stayed at home for 7 years when our child was born. Once he went to school she worked 20 hours per week at his school the next three years. We probably gave up 3/4 of a million dollars, minimum, all totaled in doing so. Best "financial" decision we ever made! (That is not sarcasm) I hope y'a...
by gr7070
Tue Jun 20, 2017 12:06 am
Forum: Personal Finance (Not Investing)
Topic: What to do with extra money?
Replies: 4
Views: 801

Re: What to do with extra money?

If you're averaging $400 a month extra I'd put $200 more into your "retirement plan" (TSP?). And the other $200 into a Roth IRA at Vanguard. You can always take your contributions out of a Roth IRA.
by gr7070
Mon Jun 19, 2017 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Planning Around Partner's Student Loans
Replies: 30
Views: 3364

Re: Planning Around Partner's Student Loans

Stripping all of the story from your plan for her leaves this: 22 years from now, in 2039, the loan will be forgiven under the terms of the program. there is a serious incentive to structure matters such that she has zero assets so that she is able to completely avoid the 2039 tax bomb. I think a pl...
by gr7070
Fri Jun 16, 2017 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Should I cancel my whole life policy?
Replies: 80
Views: 11200

Re: Should I cancel my whole life policy?

That's great!

Do you have any indication as to what turned it around? Was it the text and the state investigator that prompted this reversal or something else?
by gr7070
Wed Jun 07, 2017 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Should I accept this special work assignment (more pay)?
Replies: 11
Views: 1516

Re: Should I accept this special work assignment (more pay)?

I seriously question just how much benefit you'll see at work beyond the money. I'm guessing none. This kind of thing doesn't really say anything about your skills, abilities, and what you bring to the job or your future positions other than your willingness to work more. Granted working more is des...
by gr7070
Tue Jun 06, 2017 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Please talk me out of a turnkey rental property
Replies: 78
Views: 8982

Re: Please talk me out of a turnkey rental property

Remote property managers will rob you blind. Evictions, repairs, renovations, lost bills from the city that go to collections can eliminate your profits for the entire year. Given the hassle factor I'm not sure I'd do it today. I've found my property manager to be more frugal than even I am when it...
by gr7070
Tue Jun 06, 2017 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Teachers: what are your best personal finance tips?
Replies: 91
Views: 13432

Re: Teachers: what are your best personal finance tips?

If you elect your person at age 55, you get a much better option factor. ... You get to keep more of your money by electing at 55. Can someone explain the reasoning behind this? I can't see a reason to give someone more for doing so at 55. Or is it a case of penalizing those who wait? I can't think...
by gr7070
Sun Jun 04, 2017 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Please talk me out of a turnkey rental property
Replies: 78
Views: 8982

Re: Please talk me out of a turnkey rental property

This raises another interest point I wanted to consider: assuming "standard" insurance, and assuming the investment is modest compared to one's net worth (like in my case, 25k$ down, 75k$ loan, 500k$ nw (at least until the market doesn't turn)), are there any chances that things could go very wrong...
by gr7070
Sun Jun 04, 2017 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Please talk me out of a turnkey rental property
Replies: 78
Views: 8982

Re: Please talk me out of a turnkey rental property

Still, considering the equity built over time it gives an IRR at sell time at year 10 higher than 4% (~8.5%)... I still wonder if tax benefits, effective diversification from the stock market and overall "learning experience" could make it worth trying. My initial response was that if you can meet ...
by gr7070
Sun Jun 04, 2017 3:22 am
Forum: Personal Finance (Not Investing)
Topic: Please talk me out of a turnkey rental property
Replies: 78
Views: 8982

Re: Please talk me out of a turnkey rental property

That's generously $1000 return on $25,000 investment. That's 4% return. Why even bother?! You'll likely get that and more in the market with no effort and likely a lot less worry. So maybe I'm missing some fundamentals. Here are absolutely simplified numbers that assume a rent/value of 1.1% and 50%...
by gr7070
Sun Jun 04, 2017 1:56 am
Forum: Personal Finance (Not Investing)
Topic: Please talk me out of a turnkey rental property
Replies: 78
Views: 8982

Re: Please talk me out of a turnkey rental property

living in California prevents me from effectively buying a house over here, my idea would be to get in touch with a "honest" turnkey provider You make 250k, expecting to make 350k. You can afford to buy a primary residence, even in the bay area. I "might" afford it, but that would put me in a very ...
by gr7070
Sun Jun 04, 2017 1:38 am
Forum: Personal Finance (Not Investing)
Topic: Please talk me out of a turnkey rental property
Replies: 78
Views: 8982

Re: Please talk me out of a turnkey rental property

One last thing on the appreciation issue. If you choose to ignore appreciation in your expected returns why would you even consider rental property? Your numbers alone, which I've posited may be optimistic, return you almost nothing per month - 50% expenses of $1000 rent plus close to $500 P&I on $8...
by gr7070
Sun Jun 04, 2017 1:22 am
Forum: Personal Finance (Not Investing)
Topic: Please talk me out of a turnkey rental property
Replies: 78
Views: 8982

Re: Please talk me out of a turnkey rental property

I wholeheartedly disagree that property appreciation is market timing. If you're buying rental property with the right mindset - get rich slow, then appreciation is exceedingly likely (much like buy and hold financial markets investing) if you're buying in appropriate markets. So, this is very inte...
by gr7070
Sun Jun 04, 2017 12:16 am
Forum: Personal Finance (Not Investing)
Topic: Please talk me out of a turnkey rental property
Replies: 78
Views: 8982

Re: Please talk me out of a turnkey rental property

If your hometown doesn't make financial sense from a real estate investment perspective, I would look into REIT's or companies like ReatlyShare. If you want a very passive experience, it always seemed to end up costing me all or most of my profit to have that. I already own some REITs, and obviousl...
by gr7070
Sat Jun 03, 2017 11:59 pm
Forum: Personal Finance (Not Investing)
Topic: Please talk me out of a turnkey rental property
Replies: 78
Views: 8982

Re: Please talk me out of a turnkey rental property

The only way I've seen the true passive profit because that is how I set up my rentals, is with price appreciation of the home during the sale. Interesting. The way I am understanding it though, price appreciation is as bad as market timing as far as prediction goes, it's a pure gamble. I was, henc...
by gr7070
Sat Jun 03, 2017 11:50 pm
Forum: Personal Finance (Not Investing)
Topic: Please talk me out of a turnkey rental property
Replies: 78
Views: 8982

Re: Please talk me out of a turnkey rental property

I'm a proponent of rental property. Getting a good investment property is not easy. It's not as efficient a system as the financial markets, so there are some bargains. However, it is a competitive market and good properties are by gobbled up quickly, often by realtors and others who have better acc...
by gr7070
Sat Jun 03, 2017 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Teachers: what are your best personal finance tips?
Replies: 91
Views: 13432

Re: Teachers: what are your best personal finance tips?

I'm married to a former teacher, now public school librarian (basically the same things). I do all the heavy lifting re our personal finances. #1 most important is to choose to live in a state/school district that pays well!!! Choose wisely! Do not work in a state with awful pay! Consider cost of li...