Search found 106 matches

by cubaboymatt1316
Sat Jul 11, 2020 5:43 am
Forum: Personal Finance (Not Investing)
Topic: Ethical Dilemna - Rate Lock Woes
Replies: 13
Views: 1642

Re: Ethical Dilemna - Rate Lock Woes

qwertyjazz wrote: Sat Jul 11, 2020 5:29 am
So if you believe interest rates will be stable or lower in 7 months, you can take the original deal and net 7 k and pay half a point over that time and then refinance with VA or conventional? Am I missing something?
At 2.25%, I'd lean towards believing rates will be UP 7 months from now, but that's just a wild assumption based on current economic and health factors.

I've decided to work solely with Lender 1 and accept whatever decision they make (let me float, pay a re-lock fee, no changes, etc.). Thank you everyone for your help.
by cubaboymatt1316
Sat Jul 11, 2020 4:20 am
Forum: Personal Finance (Not Investing)
Topic: Ethical Dilemna - Rate Lock Woes
Replies: 13
Views: 1642

Re: Ethical Dilemna - Rate Lock Woes

You don’t mention if you qualify for a waived VA funding fee. .... However, just a side note. Make sure you are thinking about real closing costs vs. what the paperwork says are loan costs. Thank you for all the responses. It’s put my mind at ease a bit. I qualify for no funding fee. 7k includes prepaids, but Lender 1, the builder’s preferred, has the builder paying everything so I come to closing with nothing. Lender 2 has me coming to closing with all $7k because the builder will withdraw all incentives. That was told to me before I ever signed the contract. To answer some other Qs: - I have plenty of cash, about $70k, but plan on using that to build a pool on the new property (not quite all of the $70k, keeping a suitable EF). Retaining...
by cubaboymatt1316
Fri Jul 10, 2020 10:19 pm
Forum: Personal Finance (Not Investing)
Topic: Ethical Dilemna - Rate Lock Woes
Replies: 13
Views: 1642

Re: Ethical Dilemna - Rate Lock Woes

HomeStretch wrote: Fri Jul 10, 2020 9:49 pm It’s business, not personal. Go with the lender that gives you the best deal. But a 7-year payback at Lender #2 seems too long.
I agree it’s a long break-even period. Goes back to the builder not giving any closing costs unless I choose their preferred lender.
by cubaboymatt1316
Fri Jul 10, 2020 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Ethical Dilemna - Rate Lock Woes
Replies: 13
Views: 1642

Ethical Dilemna - Rate Lock Woes

[Removed]

Thanks for all the help!
by cubaboymatt1316
Wed Mar 22, 2017 6:55 pm
Forum: Personal Investments
Topic: Utah 529 Fees
Replies: 15
Views: 3103

Re: Utah 529 Fees

The investment detail of my childrens accounts show:

Estimated Expense Ratio of funds: (This fluctuates between .017 and .4 depending on the age group/Asset Allocation)
0.035%

UESP Administration Fee
0.17%

Total ER%
0.205%


They are all enrolled in the age-based aggressive global plan.
by cubaboymatt1316
Wed Mar 22, 2017 6:21 pm
Forum: Personal Investments
Topic: Retirement Account with LPL - Issues
Replies: 6
Views: 1045

Re: Retirement Account with LPL - Issues

OnTrack2020 wrote:Have you done some "googling" of LPL....
Yes. Lots of bad stuff out there.
by cubaboymatt1316
Wed Mar 22, 2017 3:41 pm
Forum: Personal Investments
Topic: Retirement Account with LPL - Issues
Replies: 6
Views: 1045

Re: Retirement Account with LPL - Issues

sport wrote:Have you shared this information with the owner of your company?
Yes. As you can imagine, as someone who ultimately chose LPL over Vanguard for the SIMPLE IRA, he believes I'm the one misunderstanding the situation. He and I will likely continue to discuss the issue, but whatever friend-of-a-friend that steered him towards LPL will likely have more sway than I do.
by cubaboymatt1316
Wed Mar 22, 2017 3:12 pm
Forum: Personal Investments
Topic: Retirement Account with LPL - Issues
Replies: 6
Views: 1045

Retirement Account with LPL - Issues

The company I work for has chosen to offer a SIMPLE IRA through LPL Financial, despite my recommendation to go directly through Vanguard's SIMPLE IRA plan (personal friend with the owner of the company who made the decision). I need some advice. My boss specifically chose LPL because he was promised that we could "invest in any fund, stock, or investment available". I believe it's a $40 fee per account for annual maintenance. There is an account view online, but we can not choose any funds or see any options online; we must either call or email the LPL "advisor" directly. Obviously, once I found this out, my BS meter began to rise.... Once I had about $1000 in the account (sitting in the default location of a money marke...
by cubaboymatt1316
Fri Dec 18, 2015 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Getting Pre-Approved by Two Lenders
Replies: 18
Views: 1992

Re: Getting Pre-Approved by Two Lenders

I shopped 2 lenders in my area, one of which I was pre-approved with. I asked for Good Faith Estimates (although they aren't called that anymore) based on a closing date of X and a rate of Y. Then I compared them as best I could. The comparison was difficult due to each waiving different fees, having different "lender discounts", different escrow estimates (2 months vs 4 months insurance collection at closing), etc. But I worked it out best I could. One of the lenders was far more communicative, so I paid a $200 "premium" over the other lender in order to feel a bit more secure in the process. He ended up waiving my origination fee completely when I explained to him he was a bit more than the other guy. I did not feel li...
by cubaboymatt1316
Thu Dec 17, 2015 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?
Replies: 66
Views: 9568

Re: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?

feh wrote:There is another option - don't accept/cash the check.
That's the current status; it's still sitting on my desk. Waiting to speak with my employer one more time to discuss things. I'm hoping it's just a huge misunderstanding and he'll issue some sort of 1099 or something.
by cubaboymatt1316
Tue Dec 15, 2015 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?
Replies: 66
Views: 9568

Re: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?

I just wanted to check in with you guys; I am still reading this thread and am quite interested in the responses so far.

Schedule C still feels best. Checking "my first Schedule C" may work this time. But this is going to repeat itself next year and then the recurring 5k amount may certainly look fishy.

Nobody has suggested simply not reporting the money at all. I'm assuming it's because I made it clear in the OP that I wanted a legal course of action. I certainly don't want anyone to help me break the law, but what's the consequences of not reporting it? A possible penalty and the owing of the taxes on it? I'm guessing, at worst, it's jail time and a hefty fine.
by cubaboymatt1316
Mon Dec 14, 2015 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?
Replies: 66
Views: 9568

Re: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?

flyingbison wrote:
cubaboymatt1316 wrote:
Taking the check directly to his bank to have it cashed is starting to feel like a better option at this point, hopefully making it as anonymous as it can be, and hopefully not raise any flags with the IRS since it shouldn't trigger a CTR at the bank nor will it show up in any of my accounts.
That sounds like tax evasion.
Well, back to schedule C I guess. I want the most legal option that allows me to keep my job.
by cubaboymatt1316
Sun Dec 13, 2015 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?
Replies: 66
Views: 9568

Re: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?

For those questioning the ethics of the matter: I agree with you, it feels less like a gift and more like a burden. The check is still sitting in my home office. I don't want to do anything with it until I've settled on a course of action. My employer's motive is benevolent enough; he's trying to provide us with tax free retirement contributions in lieu of an actual 401k or SIMPLE IRA plan. Although the right thing to do is pay us the "grossed up" amount he wants us to deposit into an IRA and run that amount through payroll taxes, he chose this path to give us a "tax free" check and probably to reap the tax benefits of the expense vs payroll categorizing. I'm friendly with my employer and I've talked with him several tim...
by cubaboymatt1316
Thu Dec 10, 2015 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house in 3-6 months: Can we get current interest rates locked for 6months?
Replies: 10
Views: 1669

Re: Buying a house in 3-6 months: Can we get current interest rates locked for 6months?

I just went through this process with my lender. I was going with new construction, and out of the 3 lenders I was in communications with, only 1 of them offered an extended rate lock.

It was slightly costly, but for the 150/180 day rate locks I had to pay $5-600 on a $270k loan and the interest rate went up about 3/8ths of a % from ~3.25 to 3.7% - 3.8%. In the last 30 days, I had the option to float down once, if the market were in a better spot.

IMO, the "insurance" that the rate lock provided was WELL worth it, however the contract fell through with that builder and we went with an existing home instead.
by cubaboymatt1316
Wed Dec 09, 2015 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?
Replies: 66
Views: 9568

Re: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?

rgs92 wrote:Isn't this a simply a gift, rather than compensation? I would think if you do not receive a 1099 or W2 for it, that's what it is. The giver should not report it as a deduction, but I don't see it as your responsibility to verify this. And it's not a tip as the tax code defines it as far as I can see.
I believe the IRS considers any money or gift from an employer to an employee as compensation if it's over $25.
by cubaboymatt1316
Wed Dec 09, 2015 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?
Replies: 66
Views: 9568

Re: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?

jhfenton wrote:If I liked my job, I would just report it myself as other income on Schedule C and let the employer worry about his own tax obligations. Yes, it'll cost you in self-employment taxes, but you'll be covered for your tax obligations. You don't have to disclose the source of the other income.
I think this is my best course of action. I'm assuming ~25-32% total in taxes (depending on where I fall for the year in federal bracket) and I won't have to worry about creating any issues for anyone.

@hicabob

I completely agree and he should be fired. Why my employer can't see that this is a horrible way to do things is beyond me, but I won't risk losing my job over this.
by cubaboymatt1316
Tue Dec 08, 2015 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?
Replies: 66
Views: 9568

Re: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?

I own a small web design firm (4 people). What your boss is doing is paying you under the table. It's not the best practice, by any means. His $5000 payment to you should had your federal and state taxes withheld....as well has your employer providing their tax contribution. Years ago, I would give my employees a $3000 "healthcare stipend" that wasn't taxed. My accountant set that up for me. They did have to provide proof the stipend was used for healthcare related expenses. Then when Obamacare came about, that stipend had to be cut. [OT comment removed by admin LadyGeek] That's the only time I've ever paid an employee without withholding taxes. If he wants to help...ask him to set up a SIMPLE IRA program. It literally costs the ...
by cubaboymatt1316
Tue Dec 08, 2015 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: How much money should I leave my kids?
Replies: 96
Views: 13304

Re: How much money should I leave my kids?

How old are the kids?

What stage in life are they are in?

What is their financial situations?

Why do you think it would them any harm?
by cubaboymatt1316
Tue Dec 08, 2015 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Can an investment company charge a fee to rollover a 401k?
Replies: 14
Views: 2530

Re: Can an investment company charge a fee to rollover a 401k?

My old job had a 401k through Merrill Lynch. They want me to close the account and move it into a Rollover IRA through their institution. If I move the money to Vanguard, they charge a $25 distribution fee.

These fees are not uncommon and are usually set by the financial institution and I've heard some companies can negotiate them out of the plans.
by cubaboymatt1316
Tue Dec 08, 2015 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?
Replies: 66
Views: 9568

Small Business Gave me a "Retirement Bonus" Untaxed. What should I do?

I work for a small business (less than 10 employees). Upon being hired, I was told that the company did not have a 401k plan, but that we were given $5000 a year to "go towards an IRA of our choosing". I received this end-of-year retirement bonus this week and saw something odd....it was not run through payroll. It was a personal check written from the company to me and noted as a "Bill Payment" on the check. 1.) I'm assuming I need to add that on to my wages when I do my taxes next year, regardless of whether I put it in an IRA or buy a TV. 2.) Am I liable for any other taxes like FICA? Medicaid? 3.) Any way to deal with this issue without any controversy? The other employees seem to love this "benefit" but it...
by cubaboymatt1316
Sun Oct 25, 2015 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: Uncertainty as Federal Employee
Replies: 54
Views: 6815

Re: Uncertainty as Federal Employee

I'm on the other side of the fence: I'm 33 and I'm an engineer working for a defense contractor on a military installation. As engineers, we typically make more than our GS-12/13 counterparts (even our own department's government leads) but have far less stability and benefits. As a contractor, my pay has been cut twice and raised twice (more than 10% all 4 times in either direction) due to new companies winning the bids. Every time the contract is up for renewal, the reality of losing my job is stressful beyond imagination. My benefits change very couple years with new companies, leaving my family always adjusting to new copays and deductibles and budgets. My leave accrual rate resets with every new company, leaving me with a perpetual max...
by cubaboymatt1316
Sat Oct 24, 2015 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Bigger House: Can I afford it?
Replies: 15
Views: 2717

Re: Bigger House: Can I afford it?

For comparison's sake, we are 34 and 29, two kids (3 and 6-months), we have ~1.5x more retirement accounts and zero debt of any kind, a household income that is more than 1.75x yours and very stable jobs, and probably live in an area that is higher COL (you might be able to buy a 2bdr 900^ft condo for $135k)..we've been in the market and our max budget was $200k. In fact, we made an offer today for $197.5k on a place. As a 1st time homebuyer, I am blown away how much people will stretch for a home and how much they think they need. We were pre-approved for over 3x what we are ultimately willing to spend. The owner of the (town)home we made an offer on basically told us that they can't really afford to live there anymore and are moving in w...
by cubaboymatt1316
Sat Oct 24, 2015 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Bigger House: Can I afford it?
Replies: 15
Views: 2717

Re: Bigger House: Can I afford it?

I think that you pretty much understand the risks and while it is clearly a big stretch it isn't completely crazy, just lots of big tradeoffs. One other option to consider is that if you live in an area where houses can have basements then a larger house with a full unfinished basement might be a more economical way to go. I have lived in houses like that and once you put up acoustical tiles and lights in the basement they are great for kids to play in and for projects. Most of your storage can be down there so the upstairs is a lot more functional too. It would be good to consider your timeline with your oldest kids being four. This means they may be starting school next year if you don't homeschool them so getting moved before then would...
by cubaboymatt1316
Sat Oct 24, 2015 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Bigger House: Can I afford it?
Replies: 15
Views: 2717

Re: Bigger House: Can I afford it?

It sounds like you've been making the minimum mortgage payments considering the balance owed is about 90% of the value of your home. Have you considered taking more of that 'extra' money and paying down the principal for a year or two to test the new budgetary lifestyle? Swampy, OP mentions that they are paying $200/month extra on the current mortgage - as a veteran he had access to a loan with 0% down. Personally if I was you I would split the difference and find a 200k house that is in the 2200 sq ft range. If that extra 600 sq ft is in the right spots you can feel a lot roomer. I find the 3k houses tend to just sort of end up with a lot more wasted space. My experience was pretty much always the 1200-1400 sq ft 3/2 felt cramped, the 190...
by cubaboymatt1316
Sat Oct 24, 2015 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Bigger House: Can I afford it?
Replies: 15
Views: 2717

Re: Bigger House: Can I afford it?

While I have no comment on whether you (considering your finances) can afford the bigger home, I can say that we were very surprised how much more it cost to furnish and maintain a larger home when we went from 1800 to 2800 square feet. I definitely have tried my best to estimate accurately exactly what costs would go up. I have some cash set aside for furnishings (we kept old bedroom sets for the sole purpose of easily furnishing a bigger house) and have budgeted increases in maintenance/utility costs. I've "interviewed" my coworkers who have homes in our projected size range as well for better ideas of increased costs. That thread you linked helped as well. You can afford it. But the extra 500 or so a month that the mortgage co...
by cubaboymatt1316
Fri Oct 23, 2015 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Bigger House: Can I afford it?
Replies: 15
Views: 2717

Bigger House: Can I afford it?

Hello fellow Bogleheads! I'm looking into purchasing a bigger house for my family of 5 and want to run the numbers by you all and see if it's in the realm of financially responsible. I'm 33. Wife is 31 (stay at home mom). Kids are 4,4 (twins) and 2. We live in the South. Very low cost of living area. Income: 85k with 8k a year in nontaxed disability benefits (VA). Take home is ~6300 a month. Jobs: Defense contractor. Semi-stable job. Guaranteed employment for the next 5 years minimum. Wife may return to work once our youngest is in school. Retirement: 160k in IRAs/401ks. Savings: ~30k (NOT including 6 months EF and a $3k cushion in checking) Savings Rate: My current employer (for the next 5 years) doesn't offer 401k. We max our IRAs, put $5...
by cubaboymatt1316
Tue Jul 07, 2015 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: Upgrading from Underwater Home (Rcvd Windfall)
Replies: 19
Views: 2720

Re: Upgrading from Underwater Home (Rcvd Windfall)

I just ran some numbers. Things could get ugly if the rates rise; an increase to just 4.75 from 4.1 for a VA Loan increases my projected PITI by about $100. Yikes!

If we decide to stay put, what are some options for the $25k? I'm assuming throwing it all at my mortgage (underwater or not) isn't the best idea. I already fund our tax advantaged spaces. Keep it in my money market EF and re-evaluate in 6-12 months?
by cubaboymatt1316
Tue Jul 07, 2015 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Upgrading from Underwater Home (Rcvd Windfall)
Replies: 19
Views: 2720

Re: Upgrading from Underwater Home (Rcvd Windfall)

Well, the good thing is you are in a good spot. What you're thinking about doing is a want and not a need. So, nothing has to be done now. Nothing wrong with waiting 6 months to see how you feel about it then. The winter tends to be more of a buyers season anyway, since not as many folks are looking to buy then. Of course if you're trying to sell a home at the same time, you take the hit as a seller during that season. So, it's kind of a wash there. I agree that things probably won't change much in 6 months to a year. Which also means it will likely make little difference if you make the move now or then. It comes down to how badly do you want to make this move. The only downsides are: the neighborhood under development may not have the lo...
by cubaboymatt1316
Tue Jul 07, 2015 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Upgrading from Underwater Home (Rcvd Windfall)
Replies: 19
Views: 2720

Re: Upgrading from Underwater Home (Rcvd Windfall)

I wouldn't do what you're proposing but I understand why you are. Yes, sell the house and buy one that better suits your needs as long as you're o.k. with the thought that you may be repeating history. That is, you may be buying at the top of the market again and will probably be underwater again for a while. Yes, there are some clever ways to turn the underwater into a loss but you've made it clear you don't want to be a LL. A bad tenant can cost you a lot more than $15k between an eviction, lost rent and damage. Money is a tool, not an end unto itself. Yes, my "why" is hopefully evident to anyone living in a small house in a neighborhood with bad schools with 3 young kids. And if thought this was a "slam dunk good idea&quo...
by cubaboymatt1316
Tue Jul 07, 2015 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Upgrading from Underwater Home (Rcvd Windfall)
Replies: 19
Views: 2720

Re: Upgrading from Underwater Home (Rcvd Windfall)

First, let me say "thanks" to everyone for their well-thought out and presented opinions. It's very much appreciated. I sat down with my realtor today and discussed some specifics on selling my current (underwater) home and it looks like I'll have to cover between $6-10k at closing, a bit less than I expected but still more than I had hoped. My agent advised against renting, as she has had poor experiences renting in my specific area in the past and (as others have said) more than $15k in damages could be one bad tenant away. Why would you go from a 100% financed home to another 100% financed home? You're underwater now - have you not learned your lesson? Would you not put down something like 20% on the new home? Where is the wind...
by cubaboymatt1316
Mon Jul 06, 2015 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Upgrading from Underwater Home (Rcvd Windfall)
Replies: 19
Views: 2720

Upgrading from Underwater Home (Rcvd Windfall)

I'm 32 years old, married with 3 very young children, and currently am upside-down in my current home. Sadly, we bought our home in 2008, at the peak of our local real-estate market. My wife and I are both unhappy with the house and would like something a little bigger, and with a current Debt-to-income ratio of <20%, we feel like we could easily afford a larger home if not for being underwater. My home is valued at around $125k and we still owe $130 (Have paid extra principle payments every month). I'd have to cut a check for ~$12-16k at closing. Before last week, this would not be an option. Last week, I received notice of my VA disability claim being granted, which includes 6 years back pay and a monthly benefit of $700 a month. This imm...
by cubaboymatt1316
Wed Jan 22, 2014 8:02 am
Forum: Personal Finance (Not Investing)
Topic: Only debt left is upside-down mortgage: What next?
Replies: 24
Views: 3171

Re: Only debt left is upside-down mortgage: What next?

I appreciate all the advice, and especially appreciate jimb for taking the time to do so much leg-work! - I upped W-4 allowances to 11. This should give me back over $4k in excessive federal withholding in 2013 ($3000 in child tax credits!) - I moved 401k contributions to 22%. This should be about 17k-17.5k in contributions (depending on overtime hours). - I upped Roth IRA contributions to $455/month for both mine and my wife's. My federal tax refund this year will max out 2013 contributions. - I will continue paying down $200 extra in mortgage principle per month. - I eliminated $500 in "car fund" savings, at lesat for the next 24 months. This still gives me time to set money aside later (vehicles should be good for another 4-8 y...
by cubaboymatt1316
Tue Jan 21, 2014 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Only debt left is upside-down mortgage: What next?
Replies: 24
Views: 3171

Re: Only debt left is upside-down mortgage: What next?

jimb: isn't it self-evident that earning 8% while borrowing at 4% will always look good, especially when projected out 30 years? How does it look if you only earn the same rate as the mortgage? And don't forget to pay your tax on your fanciful ending investment balance! The two key factors determining which option is mathematically better are: 1. Investment return vs mortgage return 2. Current tax rate vs future tax rate OP: I would pay down your loan to get into a situation where you could easily sell at any time. It's terrible to have to pass up great job opportunities because of your house. Then focus on retirement contributions since a mortgage loan is usually a cheap way to finance your investments. 1. The magic question, huh? 2. I ca...
by cubaboymatt1316
Tue Jan 21, 2014 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Only debt left is upside-down mortgage: What next?
Replies: 24
Views: 3171

Re: Only debt left is upside-down mortgage: What next?

- Reading all this makes me believe simply increasing my Roth/401k contributions is the best bet until I'm able to max those out. Should I return to just paying the minimum on the house payment? If I did that and decrease the "car fund" money slightly, I could probably bring my 401k contributions up to around 11% ($8500 annually vs $4600 currently) I'm pretty sure that maxing all your retirement plans first is going to be the best choice. Then pay as much extra as you can spare to reduce the mortgage. In fact if you're reasonably sure you'll be moving, it could even be better to finance the car and pay more on the mortgage, since Time is more important than Rate in determining the total interest, and the car loan would be a lot s...
by cubaboymatt1316
Tue Jan 21, 2014 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Only debt left is upside-down mortgage: What next?
Replies: 24
Views: 3171

Re: Only debt left is upside-down mortgage: What next?

With 3 kids (congratulations on the new one ) and a mortgage with that much savings and still money to spare, it sounds like you're doing so well already that you should be telling others how to manage their money. Here are some things to think about:...... jimb Wow, thanks so much for taking the time to post this! That gives me quite a bit to think about. A few bits of information: - I live in Georgia, currently, but do not plan on retiring here. I will probably return to Virginia to live out my glory days. I was not aware certain states had exemptions on retirement income for state taxation, so I will definitely keep that in mind. - I've always mulled the thought of putting more into my 401k and you've certainly started to pull me back i...
by cubaboymatt1316
Tue Jan 21, 2014 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Only debt left is upside-down mortgage: What next?
Replies: 24
Views: 3171

Re: Only debt left is upside-down mortgage: What next?

If you might want to refinance the mortgage, you'll need to pay it down to get to 80% loan-to-value to make that possible. You didn't give the interest rate on the mortgage, but if you refinanced in 2011, it's probably a pretty low rate, and you aren't likely to want to refinance it again except to shorten the term (which would itself lower the rate). If you are paying PMI on the 2011 refinance, then you do want to pay the mortgage down quickly, either to get rid of the PMI or to allow you to refinance to a loan without PMI. And continue to max out the Roths; the limit is now $5500, so you might be able to contribute an extra $500 each for 2013 as well as $5500 for 2014. You can always withdraw contributions from the Roths without penalty ...
by cubaboymatt1316
Tue Jan 21, 2014 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Only debt left is upside-down mortgage: What next?
Replies: 24
Views: 3171

Re: Only debt left is upside-down mortgage: What next?

It seems like you are looking for a job and that if you got another good job offer, that you would move if you could. Right now, it sounds like you can move by making less optimal financial moves (raiding a Roth, etc) Thus, I would probably use extra money to pay down the mortgage (or boosting your cash savings to allow this to happen by writing a check) to give you that flexibility. Thanks for your input. Correct. Moving now (not actively looking for a job, but as a defense contractor, I must be ready for anything) would mean pulling about 20k from Roth contributions (~40k total, currently). I certainly don't want to do that, but at least I have the option (3 years ago, I didn't). My logic currently is that the money that goes into my Rot...
by cubaboymatt1316
Tue Jan 21, 2014 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: RE: asked for salary at new job
Replies: 14
Views: 2677

Re: RE: asked for salary at new job

Always a tough question to answer. You don't want to lie and you don't want to, as you say, pigeon-hole yourself into a lower salary range. I would put off answering that question as long as possible. I'd put off any salary talks until after nearly everything else is discussed. At that point, I would not give a number first. That's like telling a car salesman you have $XX to spend. If they press for it, I'd simply explain that your current salary reflects your current role and responsbilities, and has no bearing on that very different role and responsbilities of the new, potential position. A discussion I read previously had a good take on it. Something like, "the position I was in typically paid between $YY-XX for my responsbilities a...
by cubaboymatt1316
Tue Jan 21, 2014 11:00 am
Forum: Personal Finance (Not Investing)
Topic: Only debt left is upside-down mortgage: What next?
Replies: 24
Views: 3171

Only debt left is upside-down mortgage: What next?

I'm 30 and wife is 28. We have no debt other than our mortgage and we're having trouble deciding what our next short term goal should be. She's a SAHM of 3 kids (twins (2) and 4 months). No commercial debt and two vehicles paid off (2008 and 2010). We have about $1700 a month to allocate how we wish (after expenses are paid). Currently, $830 goes to our Roth's (5k each annually), $700 goes into our "emergency fund", which is the account that holds both our emergency fund (duh!) and car funds (anything over 12 months expenses is usable for a car purchase in the future), and $200 goes towards extra principle on the mortgage (25% extra on the payment of $860). Not included in that number is the 6% I contribute in my 401k (for the max...
by cubaboymatt1316
Sat Mar 23, 2013 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Next Financial Priority?
Replies: 9
Views: 1524

Re: Advice: Next Financial Priority?

Appreciate the responses so far. I've already made the necessary changes to my 401k to maximize the employer match. That leaves plenty of money to the side to do about $600 extra on my home each month until I'm comfortable with the principle balance. My personal advice for priorities: 1) 401k up to the match 2) Roth IRA to $5500 a year (secondary emergency fund + retirement space) As for any remaining money you have, I can't specify between an emergency fund and extra house payments without knowing a little more detail about the house situation. Being 20k underwater in California is practically nothing, since houses are worth far more than that (magnitude of difference depends on area). Being 20k underwater on an 80k house on the other hand...
by cubaboymatt1316
Thu Mar 21, 2013 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Next Financial Priority?
Replies: 9
Views: 1524

Re: Advice: Next Financial Priority?

With 4 dependents and an unstable job, I'd beef up the emergency fund to 1 yr's worth of expenses. Then continue to work on the upside down mortgage..... I'm at ~6 months without changing any expenses. In the event of a job loss, I can easily last a year by cutting out extra principle payments, cable, grocery splurging, etc. I also add $700 a month as a "car fund", but also as an extra safety net for the emergency fund. Retirement contributions are use it or loose it. I would suggest using a Roth IRA as a vehicle for additional emergency savings. If you are unlikely to need / want to move in the foreseeable future, I would prioritize funding retirement accounts over dumping money into an underwater house unless your mortgage is a...
by cubaboymatt1316
Thu Mar 21, 2013 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Advice: Next Financial Priority?
Replies: 9
Views: 1524

Advice: Next Financial Priority?

I'm "caught up" on my big priorities in life so far, and ready to tackle the next thing. But I'm not sure what my next thing should be? Could anyone lend some advice my way on what I should be focusing on next, at least for the short term? Where I'm at: 30 years old. Married with 2 kids (twins). Wife pregnant with 3rd. Stay-at-home Mom. Great contracting job, albeit unstable for the long term (good for 2-3 years). 6 months worth of expenses in Emergency Fund. 75k in retirement portfolio. Currently not contributing any more. $20k upside-down in home. Currently doing 15% extra principle payments every month. I stopped contributing to my 401k/both Roth IRAs so I could pay off the cars (new cars) and get the Emergency Fund funded. Now...
by cubaboymatt1316
Tue Jul 24, 2012 7:48 pm
Forum: Personal Consumer Issues
Topic: Road trips with infants
Replies: 22
Views: 2879

Re: Road trips with infants

I agree with driving through the night. I have 10 month old twins and had to do an 8 hour drive when they were 6-7 months old. We left as soon as they fell asleep and didn't stop until I needed gas. The wife nursed them both as we stopped and we made it to our destination with minimal disturbance.

It's painful for the driver (less so if you two of you can drive) and it took a day of our vacation for me to get on schedule (slept a good part of the first day, barely slept that night). In the end, it was sooo worth it to not have babies that needed attention every 1.5-2 hours.
by cubaboymatt1316
Wed Apr 11, 2012 7:54 pm
Forum: Personal Consumer Issues
Topic: Not satisfied with insurance company estimator...
Replies: 4
Views: 2334

Re: Not satisfied with insurance company estimator...

I would call the claim representative with other company first. Explain your position and give them a chance to make it right. Perhaps you can send some "before" and "after" pictures detailing the damage the adjuster is questioning. After that, you can hire an attorney to possibly convince the insurance company into increasing your settlement (I've seen this work a few times from accidents I've been involved in), or file the claim through your own insurance, pay the deductible (or if it's cheaper, skip the claim and take it to a mechanic for a cash job), and try to resolve the case in small claims.
by cubaboymatt1316
Wed Apr 11, 2012 7:36 pm
Forum: Personal Consumer Issues
Topic: New bed?
Replies: 22
Views: 2153

Re: New bed?

I bought a Tempurpedic about a year ago. I will never buy another mattress again. Consistent sleep and comfort, zero tossing and turning now. It does retain heat a little too well, but It gets a little hot down here in GA to begin with; we're cold-natured to and keep two stand fans and a ceiling fan all night anyway.
by cubaboymatt1316
Wed Apr 11, 2012 7:58 am
Forum: Personal Consumer Issues
Topic: Homeowners Insurance Deductible
Replies: 8
Views: 1656

Re: Homeowners Insurance Deductible

I have mine at 1k. Once my E-fund gets a little more comfortable, I'll probably raise it to ~5k if it's available.
by cubaboymatt1316
Sat Apr 07, 2012 3:46 pm
Forum: Personal Consumer Issues
Topic: Cuisinart (conair) coffee maker
Replies: 8
Views: 962

Re: Cuisinart (conair) coffee maker

I own 2 different Keurig machines that I keep at home and work. I've had them about 2 years and have not had a single problem. I can't imagine a scenario that would have me return to using traditional coffee pots (I only drink 16 oz a day).
by cubaboymatt1316
Sat Apr 07, 2012 3:42 pm
Forum: Personal Consumer Issues
Topic: Best watch for around $5,000? [Archived]
Replies: 1479
Views: 348781

Re: Best watch for around $5,000?

I Not too mention why would anyone spend $5,000 on a [watch/car/boat/ring/necklace/espresso machine/golf club/hot tub/baseball card]? When I'm 60 years old and rolling around in the millions of dollars I've made after 38 years of working & investing, I hope I don't get criticized for buying myself something that I enjoy and appreciate, especially for a measly $5k. By that time hopefully you won't care about buying a status symbol. Your ego won't require it. Anyway if you must have it now go down to NYC and buy a knockoff for $20. Nobody will know it's a fake. Just like they don't know your Mercedes is leased. :wink: I don't look at watches worn by other people, so I don't look at a nice watch as a status symbol. Others may, but I certa...
by cubaboymatt1316
Sat Apr 07, 2012 2:34 pm
Forum: Personal Consumer Issues
Topic: Best watch for around $5,000? [Archived]
Replies: 1479
Views: 348781

Re: Best watch for around $5,000?

HardKnocker wrote:I

Not too mention why would anyone spend $5,000 on a [watch/car/boat/ring/necklace/espresso machine/golf club/hot tub/baseball card]?
When I'm 60 years old and rolling around in the millions of dollars I've made after 38 years of working & investing, I hope I don't get criticized for buying myself something that I enjoy and appreciate, especially for a measly $5k.
by cubaboymatt1316
Tue Apr 03, 2012 6:38 am
Forum: Personal Finance (Not Investing)
Topic: Your milestones?
Replies: 82
Views: 8424

Re: Your milestones?

My first milestone was 100k by age 30. It looks like I'm gonna be about 2 years late, thanks to my newborn twins; a good problem to have, in my opinion.

My next goal is to be debt-free but my home by 40.