Search found 771 matches

by NorCalDad
Fri Nov 12, 2021 12:10 am
Forum: Investing - Theory, News & General
Topic: Ben Carlson's Column today has some interesting thoughts on inflation
Replies: 197
Views: 22351

Re: Ben Carlson's Column today has some interesting thoughts on inflation

I'm reading all the stuff about inflation, but I don't see much affect at all around me personally. I realize that I am fortunate in many ways. I am not buying a car, a house, a phone, a TV, meat, gasoline, paper towels, or junk except for Dr Pepper which is still $1 per 2L bottle. We no longer give gifts at the holidays. Just bought some new lenses for my glasses and they cost the same as 3 years ago. Supply chains could be broken, but so what? I'm just thinking this fear mongering is just a good chance for people to slow down on their consumerism. There is quite a lot of unnecessary stuff being sold. I have to say this has been our experience as well. If there was not a lot of talk about inflation, I would not have known. We are spending...
by NorCalDad
Wed Nov 10, 2021 1:00 pm
Forum: Investing - Theory, News & General
Topic: Inflation for the month and year at highest rate in 13 years
Replies: 164
Views: 19382

Re: Inflation for the month and year at highest rate in 13 years

GP813 wrote: Wed Nov 10, 2021 11:09 am
corn18 wrote: Wed Nov 10, 2021 9:48 am And my 30 year fixed rate mortgage is still @ 2.25%.
This is why I think the multiple financial gurus who tell people to pay down mortgage debt as soon as possible are so wrongheaded. Most people's mortgage debt is cheap and tax deductible in most cases.
Agree that mortgage debt is cheap, agree that aggressive paydown isn't a great strategy. But not that mortgage debt is tax deductible in most cases. Maybe technically true, but the tax change pushed many of us former itemizers into the standard deduction. Something like 12 percent of tax filers itemize now compared to about 1/3 before.
by NorCalDad
Tue Nov 09, 2021 7:26 am
Forum: Personal Finance (Not Investing)
Topic: Recasting Mortgage?
Replies: 14
Views: 1577

Re: Recasting Mortgage?

Agree with needing more info. Unless you are really risk averse, I wouldn't pay down those low-interest loans in this environment.
by NorCalDad
Sun Nov 07, 2021 7:26 am
Forum: Personal Finance (Not Investing)
Topic: Tell me it’s okay to spend on some experiences
Replies: 23
Views: 2247

Re: Tell me it’s okay to spend on some experiences

GMCZ71 wrote: Sun Nov 07, 2021 7:07 am Time with your kids is a great investment and you can't get back later in life. You are not dropping to a 0% savings rate so I say do it. :happy
This. In 15 years, you might be sitting on a bigger pile of cash, but your kids won't want to spend as much time with you. Your oldest ones are at a fun age where they appreciate experiences that you can enjoy together. You won't regret spending on activities with them, and I'd say it's worth working an extra couple years if need be. I took my son last month to a pivotal MLB playoff game and know he won't forget it for the rest of his life.
by NorCalDad
Fri Nov 05, 2021 8:37 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1202738

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

SanAntionetta wrote: Fri Nov 05, 2021 8:08 am I'm in!! I hate having my EF sitting and earning <1% in my "HY"SA basically losing money. Its also nice to have no way to accidentally spend it.
Curious, has there ever been this wide a gap between the prevailing savings/money market rates and the I Bond rate?
by NorCalDad
Thu Nov 04, 2021 9:22 pm
Forum: Personal Investments
Topic: Buy I-Bond now or wait till November?
Replies: 57
Views: 8127

Re: Buy I-Bond now or wait till November?

I've seen a lot of inflation around me, enough that I want to rein in spending and plow more into savings/investing. I don't see inflation slowing down for a while, but who knows? The Fed finally decided to do something about it this week.
by NorCalDad
Wed Nov 03, 2021 12:52 pm
Forum: Investing - Theory, News & General
Topic: What's the catch with I Bonds?
Replies: 356
Views: 73964

Re: What's the catch with I Bonds?

Found this thread after seeing I Bonds at 7.12 percent! Thanks for the explanations. Pretty sure I've never seen the current level of inflation in my adult life, though I am probably on the younger end of Bogleheads. Seems like retailers and restaurants are raising prices almost monthly where I live.
by NorCalDad
Fri Mar 05, 2021 12:33 am
Forum: Personal Consumer Issues
Topic: Does anyone use travelers checks any more?
Replies: 110
Views: 8515

Re: Does anyone use travelers checks any more?

Oh, man. I'm 43 and used them in 1999 on a trip to London because my parents always did, and it was the first time I traveled overseas on my own. I remember accompanying my mom to AAA to get travelers checks every time we took a trip (even within the state). Thanks for prompting the trip down memory lane.
by NorCalDad
Sat Feb 06, 2021 8:07 pm
Forum: Personal Consumer Issues
Topic: What's your Yearly Costco Spend?
Replies: 96
Views: 7482

Re: What's your Yearly Costco Spend?

My wife doesn't like Costco, but I grew up loving it because sometimes my parents would let me buy a full box of baseball cards. They no longer sell baseball cards, but it's still a rare pleasure for me, and I can't really explain it other than that I like to stock up on things I know our family will use and sometimes discover those additional items that weren't on my list.

Short answer is $3,500 last year. We aren't big shoppers there compared to many, but still enough to approach $300/month. That includes a couple of outlier purchases. Wine and a ribeye steaks are a staple for me there since Covid began. I always toss one steak on the grill and then freeze the other three. Small pleasures in these times.
by NorCalDad
Fri Oct 23, 2020 11:13 pm
Forum: Personal Investments
Topic: Going “all in” on paying mortgage
Replies: 178
Views: 17652

Re: Going “all in” on paying mortgage

We paid our mortgage off last year. Used our taxable account to do it. Felt good. Then we moved this year and decided a 2.75% 30 year fixed rate mortgage was hard to pass up, so we took it. Sold the other house and decided to invest in our 60/40 portfolio vs paying it off. Plan to retire next year @55 and carry the mortgage to maturity at 84. NPV of a 30 year fixed rate 2.75% mortgage with 2% inflation is almost free money. And a great inflation hedge. In the midst of a refi to 2.625% and feeling the same way. Hard to beat that rate, and note really tempted to pay it early since (at the very least) it’s a solid inflation hedge. Also in the midst of a refi to 2.625%. This conversation is much different at 6% (our rate when we first bought a...
by NorCalDad
Wed Oct 14, 2020 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Should we refinance to a 15-year mortgage?
Replies: 74
Views: 6946

Re: Should we refinance to a 15-year mortgage?

Thank you to everyone who gave us a lot to think about. In case anyone is interested, we have decided refinance to a 30-year. That choice gives us the most flexibility in case our circumstances change in the future and only costs us a little more. (We are getting 2.5% from Interactive.) I'm late to this discussion, but if it's any reassurance, I made a similar call this week. We have 23 years left on our 30-year mortgage at 3.1% and I was looking at a 20-year refi to get a better rate and shorten the term. But then I was given a no-fee quote at 2.6% and told it was the same rate as the 20-year. I used to be on the side of paying off the mortgage sooner, but I've changed my mind this year. My wife and I have pretty stable jobs, but Covid ha...
by NorCalDad
Fri Jul 31, 2020 3:54 pm
Forum: Personal Consumer Issues
Topic: Elementary school in Fall - choose Virtual or In-person
Replies: 120
Views: 10640

Re: Elementary school in Fall - choose Virtual or In-person

We have never been a private school family, but we are for the first time considering a small private school for our K-3 student that will maintain small classes (less than half the size of our traditional public school). California is not allowing schools to hold campus classes in most counties for now, but elementary schools can get a waiver. Even if the private school doesn't, it will be the first to return to campus once restrictions lift, while our big city school district likely will not return for months or possibly the next school year. I wouldn't feel comfortable sending our kids back to a traditional setting. But I would be ok with small classes of the same cohort with the same teacher for the duration of the school year, with soc...
by NorCalDad
Mon Mar 18, 2019 11:59 am
Forum: Personal Consumer Issues
Topic: Am I being cheap? Wife wants a minivan, but I want to hold off
Replies: 170
Views: 11467

Re: Am I being cheap? Wife wants a minivan, but I want to hold off

I think most of us agree that you can afford it. So then I'd ask, who does most of the kid dropoffs and pickups? That person should have more weight in the decision. I don't think you're being cheap because I get your arguments. But as the person in my household who handles the majority of kid transport, I will say a minivan makes life easier than the wagon or sedan did.
by NorCalDad
Fri Mar 15, 2019 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Property tax hacks in California
Replies: 59
Views: 8743

Re: Property tax hacks in California

In the meantime YOU'RE STUCK in one of the most beautiful places on the planet. Seriously though, I think there are problems with Prop 13. I hope someone figures out a way to fix them someday. Sounds like there's momentum building to do away with the inheritance provision. Sentiment is definitely changing, though Prop. 13 has been the third rail of politics in California. Voters last year rejected Prop. 5, which would have expanded those Prop. 60/90 rules to moves anywhere in California instead of just within the handful of counties that allow it. Consider that Prop. 90 had nearly 70% support in 1988, while Prop. 5 failed badly three decades later with only 40% support. On that comment comparing Connecticut to California, it's generally th...
by NorCalDad
Wed Aug 29, 2018 11:00 pm
Forum: Personal Consumer Issues
Topic: Negotiating with XM
Replies: 27
Views: 3195

Re: Negotiating with XM

I've been playing this stupid game with them for at least six years. I put a reminder on my calendar for the day prior to renewal and call in to "cancel." This always results in a transfer to their off-shore retention department. I give them the spiel that I want to cancel if I don't receive the same deal as last time- around $5 per month. In turn, the agent has to make at least one attempt at selling me their "half-price" subscription. I refuse and repeat I want to cancel if I have to pay more than $5/month. I've put reminders on my calendar for internet, XM and virtually every other subscription. A week or so before renewal, I talk to retention and get an annual rate I can stomach. My assumption is that discounts are ...
by NorCalDad
Fri Aug 17, 2018 11:51 pm
Forum: Investing - Theory, News & General
Topic: Remind me (again) how real estate isn't a GREAT investment?
Replies: 158
Views: 24408

Re: Remind me (again) how real estate isn't a GREAT investment?

If we'd kept our old house and rented it out, we'd have a great investment. The problem? We didn't know the market in California would rebound the way it did the last seven years, didn't know that rents would skyrocket, and we had recency bias because we were burned by the crash before that. Leverage was seen as a real threat, not the opportunity it became when the market shot upward. Plus, we didn't want to be landlords since we had enough responsibilities with kids and work. I'm guessing the people who talk about real estate as free money bought at a low point and have enjoyed the fruits of rent increases and market appreciation. Do you likewise describe stocks you bought at a cheap price as having generated free money in the form of high...
by NorCalDad
Mon Aug 13, 2018 9:00 am
Forum: Personal Investments
Topic: Would you pay this mortgage off?
Replies: 51
Views: 5185

Re: Would you pay this mortgage off?

Doesn't have to be all or nothing. It boils down to your alternatives. What sticks out is that $160k in a 2% CD.

Unless you have a short-term need for that much cash, you could figure out what level of emergency savings you really need, then plow the rest into your mortgage if desired.

If it were me, I'd use the cash to offset maxing out all tax-advantaged retirement accounts (403/457). Your retirement savings is the only area that seems relatively low for your age/income (but not concerning, considering your pensions and your taxable savings).

Maybe the best path is maxing out 403/457, seeing what that does to your monthly cash flow, and directing additional payments to your mortgage from the CD account.
by NorCalDad
Sat Aug 11, 2018 2:43 pm
Forum: Personal Consumer Issues
Topic: Device to listen to while exercising?
Replies: 23
Views: 2379

Re: Device to listen to while exercising?

stoptothink wrote: Sat Aug 11, 2018 11:34 am
friar1610 wrote: Thu Aug 09, 2018 9:54 pm
delamer wrote: Thu Aug 09, 2018 9:44 pm My husband uses an iPod Shuffle.

They have been discontinued by Apple, but can still be found on Amazon.
That's what I use. Podcasts, not music. Sometimes books. Also frequently use it at night to listen to a meditation as I drift off to sleep.
I'm still using a shuffle too. Simple and just works, had this one for 5+ years.
Another Shuffle fan here. I have Bluetooth headphones and have used them with my phone, but I can't get them to stay in consistently and the Shuffle is much lighter than the phone. Went back to the Shuffle for podcasts and music. No better device for runners, in my view.
by NorCalDad
Fri Jul 06, 2018 8:21 am
Forum: Personal Consumer Issues
Topic: What time do you get up in the morning?
Replies: 160
Views: 16513

Re: What time do you get up in the morning?

I was once told that if a parent wants to accomplish things, they must create time rather than find it. Heading this advice I have been waking up around 4am to get in a quick jog, weight lifting (none of the which is anything to brag about, but it is better than nothing), Bible and prayer time, and just a little bit of peace before the never ending errands begin. This new habit had me thinking when other people get up, and what their routines are. Just curious, thank you for your time. Waking up early may be the main thing that keeps me sane as a parent. I try to get up in the 5 o'clock hour each day. Usually to go for a run, but sometimes to read the news and catch up on things. It does mean going to bed earlier; I hit the pillow not long...
by NorCalDad
Wed Jun 06, 2018 11:15 pm
Forum: Personal Consumer Issues
Topic: Upgrade to SSD for 5-year old desktop?
Replies: 64
Views: 6051

Re: Upgrade to SSD for 5-year old desktop?

I almost got a new MacBook but instead upgraded to an SSD on my 9-year-old laptop. It feels like a new machine. I hope to get at least two more years out of it for the $130 I paid.
by NorCalDad
Mon May 21, 2018 9:47 am
Forum: Personal Consumer Issues
Topic: Door Dash: Has anyone used?
Replies: 14
Views: 3573

Re: Door Dash: Has anyone used?

I've used it when I can't get away from the office. I can't justify the extra cost on a regular basis, but it's been helpful in a pinch.
by NorCalDad
Mon Feb 26, 2018 10:18 pm
Forum: Personal Consumer Issues
Topic: How Far is too Far, Commuting?
Replies: 220
Views: 34390

Re: How Far is to Far, Commuting?

Approx 30 years ago I turned down a job in the Chicago area that would have involved an hour and a half commute each way in favor of a job with a non-profit organization in Columbus, Ohio that had a 15 minute commute. I settled for a salary that was $5K lower and passed up a $15K signing bonus to boot. Although I generally worked in excess of 50 hour weeks, this still enabled me more time with my wife and daughters and allowed me to bicycle after work 9 months out of the year. The lower pay compounded over the years so the lower starting salary was significant over a career but I always felt that I made the best choice for myself and my family. I would do the same thing all over again as the increased quality of life from the shorter commu...
by NorCalDad
Sun Feb 25, 2018 5:18 pm
Forum: Personal Consumer Issues
Topic: I week in California, Road Trip Planning
Replies: 65
Views: 6488

Re: I week in California, Road Trip Planning

I saw where you were going, digarei. :D

Sacramento isn't as exciting as San Francisco, sure. But it is immensely livable. It's probably one of the few places left in California where someone with our income can plan on retiring in our 50s and raise our kids in a family-friendly neighborhood with commutes of 12 minutes or less. And have enough money left over to hit the coast several times a year and rent a house with a view of the ocean.
by NorCalDad
Sat Feb 24, 2018 6:31 pm
Forum: Personal Consumer Issues
Topic: I week in California, Road Trip Planning
Replies: 65
Views: 6488

Re: I week in California, Road Trip Planning

I knew there would be several people saying to skip Sacramento, so let me chime in as a native - it all depends on what you're looking for. There aren't beaches, but there's plenty to do, and if you're looking for a place to live on a reasonable amount of money, it would be well worth your time to spend one day here as research. There are restaurants, breweries and wineries in the region that would rival many of those elsewhere in California, without the headaches of parking and traffic. You could stay near the Capitol or in midtown and have a lovely day walking between restaurants, breweries and museums. There are hiking trails in the foothills, and I personally would visit the Crocker Art Museum, State Capitol or California Museum ahead o...
by NorCalDad
Sat Feb 17, 2018 7:24 am
Forum: Personal Investments
Topic: When do IRA's stop making sense?
Replies: 37
Views: 3823

Re: When do IRAs stop making sense?

I'm assuming you're the only income earner, since you mentioned a spousal IRA possibility, but if your wife works and has a 401k, max that out, too. If $39k is the sum total of your retirement savings and you have no pension, I would prioritize retirement ahead of 529s at this point. I would double check whether you're in backdoor Roth territory. Someone with a 401k can earn too much to qualify for a traditional IRA but still qualify for regular Roth contributions. It took us about $230k in gross income before we started hitting the Roth phaseout due to pre-tax retirement and health care. If you're not in the phaseout, max out Roths for you and your wife. If you have to backdoor, I might convert your entire $30k tIRA to Roth if you can affo...
by NorCalDad
Sat Feb 10, 2018 11:40 am
Forum: Personal Consumer Issues
Topic: Suggest coffee maker please
Replies: 113
Views: 10847

Re: Suggest coffee maker please

I was digging through old BH threads on the topic, and the Bonavita coffee maker seems to come up frequently. Any thoughts on if it's really better than the $30-50 drip coffee makers (like Mr. Coffee, Black & decker). And if so, what makes it better? Yes, the Bonavita makes a great pot of coffee. Why? The same reason that the Technivorm does. The main reason is that they both have more powerful heating elements. That means the water gets to the correct temperature sooner and stays there. A cheap coffee maker (e.g. Mr. Coffee, Black & Decker) uses an underpowered element that has the first half of the water go through too cold and the second half goes through too hot. That leaves you with weak but burned coffee. There are other thin...
by NorCalDad
Tue Jan 30, 2018 7:58 am
Forum: Personal Consumer Issues
Topic: Is this new car the smarter option?
Replies: 24
Views: 2496

Re: Is this new car the smarter option?

Isn't the better comparison what you could've paid for a used 2008 Yaris in 2010? I assume that would have been less than $12,000. Granted, when a new vehicle is that cheap and it's a Toyota, the savings on a used vehicle will be less significant than on a used luxury car.
by NorCalDad
Mon Jan 29, 2018 8:47 am
Forum: Personal Finance (Not Investing)
Topic: How much have kids added to your personal finance/expenses?
Replies: 111
Views: 13152

Re: How much have kids added to your personal finance/expenses?

A lot of good input on this thread. I would emphasize one more thing: time . Before kids, I never thought enough about how much my time was worth. Not my on-the-clock time, but all of those hours you now have at your leisure with no responsibility. When you have kids, especially young kids who can't fend for themselves, most of your personal time will go to your kids. I can't even begin to put a price on that. Many of those hours will give you a certain enjoyment that only parents can experience. But other hours will be devoted to mundane tasks - all with love, but still mundane nonetheless. Some of those hours will be some of the happiest of your life, others among the most frustrating. You may at some point try to "buy back" you...
by NorCalDad
Sat Jan 20, 2018 8:02 am
Forum: Personal Finance (Not Investing)
Topic: How to Minimize Your Emergency Care Expenses
Replies: 413
Views: 233089

Re: How to Minimize Your Emergency Care Expenses

Great advice. The recommendations are very logical. WCI, any idea what percentage of patients in the ED should have gone to urgent care or outpatient instead? I know some friends and family who are quick to head to the ED. There are the uninsured who go there because they think they have no alternative. And then I know my wife and other medical professionals like you say to avoid it except when loss of limb or life is feared.
by NorCalDad
Tue Jan 09, 2018 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Pay down student loan or mortgage first
Replies: 18
Views: 1854

Re: Pay down student loan or mortgage first

The initial House proposal would have killed the student loan interest deduction, but it survived in the final version. According to this Forbes post, the MFJ phaseout starts at $135k MAGI for 2018: https://www.forbes.com/sites/kellyphill ... c72bc14017
by NorCalDad
Tue Jan 09, 2018 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Pay down student loan or mortgage first
Replies: 18
Views: 1854

Re: Pay down student loan or mortgage first

I would probably go with option 3: saving more for retirement by maxing out 401k or using a spousal IRA.

I'm going to guess that he's taking the standard deduction under the new tax plan, so no itemized deduction for mortgage interest. Student loan interest is still deductible above the line, so he doesn't have to itemize to get it. If the interest rates are identical, mathematically it would seem the mortgage interest would be the one pay down since he's still getting a student loan interest deduction, but I'm a big believer in saving for retirement first.
by NorCalDad
Sun Dec 31, 2017 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: How to take advantage of lowered property value?
Replies: 24
Views: 2108

Re: How to take advantage of lowered property value?

But it will be virtually impossible to pin this on the seller or listing absent at this point, unless they just admit to having known and failed to disclose. Good luck. Even if they do straight up tell you they knew and didn't tell you, what are you going to do about it? There's no duty to disclose information about a neighbor's property. That'd be like a seller having to disclose what the surrounding properties are zoned. Really? I agree that it would be difficult to pin this on the seller or listing agent. But if they straight up tell you they knew and didn't disclose (which I realize would almost never happen), you might have a case, at least in California. The state-mandated list of disclosures includes "neighborhood noise problem...
by NorCalDad
Fri Dec 29, 2017 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Confusion about prepaying property taxes
Replies: 139
Views: 19964

Re: Confusion about prepaying property taxes

Just got back from the treasurer/assessor's office in my town, where it's the rare person that doesn't itemize. People were lining up to prepay property taxes. I pre-paid the two payments that would have been due in the first half of 2018 - these are part of the 2017-18 fiscal year, so that seemed low risk. However, the conversation around the treasurer's counter (the people behind me in line, and the people behind the counter) was that people were paying not only first half of 2018, but all of 2018-19 - all four payments. I got the impression that people WERE going to deduct the 2018-19 payments. One guy said that he had discussed this w/his accountant, and he had been advised that this was legitimate. I'm inclined to prepay the two tax p...
by NorCalDad
Thu Dec 28, 2017 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Increasing 2017 charitable donations d/t 2018 tax bill?
Replies: 24
Views: 2219

Re: Increasing 2017 charitable donations d/t 2018 tax bill?

Yep, we're right around $22,000 in itemizations under the new rules (normally $33,000 under the old, except this year when we are bunching). We are opening a DAF today at Fidelity for the first time.
by NorCalDad
Wed Dec 27, 2017 4:10 pm
Forum: Personal Consumer Issues
Topic: Regarding Chase Freedom Q1 categories
Replies: 7
Views: 1338

Re: Regarding Chase Freedom Q1 categories

VictoriaF wrote: Wed Dec 27, 2017 3:11 pm I always test Freedom's 5x on a small purchase before pouring in the entire $1,500. For example, some 7-Eleven stores code as gas stations and some don't, irrespective of whether they actually offer gas. In 4Q17 I discovered a Sears store that was selling Amazon gift cards, and after testing it on a $25 GC, I got more.

Victoria
I guess that answers one question I had - did anyone max out Q4? As someone who doesn't shop at Walmart and almost never at department stores these days, this was my toughest quarter for using CF. I didn't think about Victoria's strategy.
by NorCalDad
Wed Dec 27, 2017 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Help in Making Decision on Mortgage Refinance
Replies: 10
Views: 1457

Re: Help in Making Decision on Mortgage Refinance

gman2017 wrote: Wed Dec 27, 2017 9:21 am
NorCalDad wrote: Wed Dec 27, 2017 9:05 am Do you have any cash to bridge the gap if the appraisal falls short?
Yes.. I do.. I can contribute up to $20,000 if needed.. However; is that a wise move to use my savings to bridge the gap? Please advise.
It depends. How long do you plan to stay in this house? What are you doing with that $20,000 otherwise? Do you have enough reserves elsewhere for an emergency?
by NorCalDad
Wed Dec 27, 2017 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Help in Making Decision on Mortgage Refinance
Replies: 10
Views: 1457

Re: Help in Making Decision on Mortgage Refinance

Do you have any cash to bridge the gap if the appraisal falls short?
by NorCalDad
Wed Dec 27, 2017 8:09 am
Forum: Personal Finance (Not Investing)
Topic: Help in Making Decision on Mortgage Refinance
Replies: 10
Views: 1457

Re: Help in Making Decision on Mortgage Refinance

That rate seems competitive with the best rates out there and is much lower than your current rates, so on that alone, it makes sense to me. Beyond that, the new tax law may not allow you to deduct that second mortgage interest, so it makes sense to me.
by NorCalDad
Mon Dec 25, 2017 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Tax Questions 2017 (Not all the crazy new stuff)
Replies: 16
Views: 1952

Re: Tax Questions 2017 (Not all the crazy new stuff)

adam61 wrote: Mon Dec 25, 2017 7:49 am Yes the first 4 deduction items are straight off the paycheck. 401k/403b/FSA/Premiums. The rest are itemizations and the medical does not double include premiums and only includes the portion over 7.5%. This still doesn’t seem likely to get me to 110k if the Charity, medical expenses, preoperty tax, and personal exemptions are “below the line” as mentioned above and don’t get me to where I’m not phased out. Correct?
Congrats on the baby! Correct. Below-the-line deductions won't help you for the 2017 child tax credit. But you will get the $2,000 credit in 2018.
by NorCalDad
Sun Dec 24, 2017 10:41 pm
Forum: Investing - Theory, News & General
Topic: Not investing through your 30's
Replies: 60
Views: 8042

Re: Not investing through your 30's

Two thoughts:

1) If you establish a pattern of spending in your 30s, who's to say that you'll flip a switch and turn frugal saver when you're 40?
2) I would look for ways to find happiness without spending money. When my wife went back to school and I wasn't making much money, we went on a backpacking vacation that ended with a "splurge" at a budget hotel. I honestly can't say we are happier now that we make four times as much money than we were that summer.
by NorCalDad
Sat Dec 23, 2017 10:36 am
Forum: Personal Finance (Not Investing)
Topic: Do you see a meaningful change in your income with new Tax Bill?
Replies: 266
Views: 30480

Re: Do you see a meaningful change in your income with new Tax Bill?

What I'm more interested in though is another great year in the stock market! Come on baby! :happy Like others, I responded that the new tax bill will not meaningfully change my income, but rather my taxes. This got me thinking...the tax reductions to businesses...all (or almost all) of us BHs own equity in companies, and these companies are all getting a big tax cut that does not expire. So, as the owners of these companies, we are all getting defacto tax cuts that do not expire. Presumably this will increase all of our investment income. Now, you can't pull up a calculator that shows what how the market will react to these significantly lower corporate taxes, but the benefit is real and will be realized by the owners of these companies. ...
by NorCalDad
Sat Dec 23, 2017 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Do you see a meaningful change in your income with new Tax Bill?
Replies: 266
Views: 30480

Re: Do you see a meaningful change in your income with new Tax Bill?

Absent itemizations, our 2018 comparison is fairly easy to calculate. We will no longer claim our mortgage/SALT deductions, but come out $1,800 ahead because of the lower tax brackets and we newly qualify for the child tax credit.
by NorCalDad
Fri Dec 22, 2017 9:42 pm
Forum: Investing - Theory, News & General
Topic: A New (I think) Question About Dividends in a Roth IRA
Replies: 17
Views: 2623

Re: A New (I think) Question About Dividends in a Roth IRA

Man.on.the.Mountain wrote: Fri Dec 22, 2017 7:41 pm I've spent the last month reading through pages and pages of Bogleheads discussions as I try compile a long-term financial plan for my wife and children. My wife has a 403b with her work, but it offers only a handful of choices, and they dont match anything. So right now we are using it to bring us out of the 25% bracket and as a holding for our bonds (PTRQX).
How bad are her 403b choices? Because your worst decision may be not contributing more to the 403b. Do you mind posting her fund choices with expense ratios to give us an idea of what her options are? I'm assuming you don't have a 403b/401k option since you didn't mention that.
by NorCalDad
Fri Dec 22, 2017 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 889
Views: 85903

Re: Tax Bill Omnibus Thread

Munir wrote: Thu Dec 21, 2017 4:19 pm The issue of the tax-deductibility of 529 distributions for secondary/ primary schools' education has gone back and forth that I am unable to find the ending conclusion to it. Is it a yea or nay?
From the NYT yesterday: Yes, You Really Can Pay for Private School With 529 Plans Now
https://www.nytimes.com/2017/12/21/your ... .html?_r=0
by NorCalDad
Fri Dec 22, 2017 7:56 am
Forum: Personal Finance (Not Investing)
Topic: flex account $500 carryover question
Replies: 9
Views: 690

Re: flex account $500 carryover question

I would ask your HR office. I know in our case, we forfeited the remaining carryover funds after one year despite getting conflicting information from the FSA administrator.

Side note: If at all feasible, I would switch to an HSA, which doesn't face such limitations. I can't stand our health FSA administrator and always find it to be an open enrollment guessing game and/or flurry of spending down funds.
by NorCalDad
Thu Dec 21, 2017 1:42 pm
Forum: Personal Investments
Topic: Am I over the Roth IRA income limit?
Replies: 5
Views: 1178

Re: Am I over the Roth IRA income limit?

Phaseout does not include gross. For what it's worth, we grossed more than $200,000 last year and were comfortably under the Roth phaseout due to 401k, 457, FSAs, health care.
by NorCalDad
Thu Dec 21, 2017 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 889
Views: 85903

Re: Bunching mortgage for 1 year, 2 years?

markcoop wrote: Thu Dec 21, 2017 1:23 pm mikep said this earlier: "I think you can only do Jan by the end of the year. Interest must be paid in the year accrued.. January is actually interest for the months of December so that's the only one that can be moved."
Good to know. Thanks.
by NorCalDad
Thu Dec 21, 2017 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 889
Views: 85903

Re: Bunching mortgage for 1 year, 2 years?

Want to run this idea with you folks for my situation: 1. I am pretty sure I will hit hard by AMT in year 2017. 2. In HCOLA state. my SALT+Property tax is way over the allowed $10K. 3. Mortgage interest is about $18K in 2017, which makes my 2018 itemized-deduction ($27K) not too valuable compared to the standard-deduction $24K. My lender said I can prepay mortgage for as many years as I like (which is bizarre, and I do not know whether I can trust the CSR; for any question I asked, she would reply 'let me check and get back to you'.) Let us assume I can prepay mortgage for N years, and here is the math: - prepay 1 year extra mortgage interest deducted from 2017 filing: $17K. Saved tax in 2017: $4.8K. Added tax in 2018: $1.3K - prepay 2 yea...
by NorCalDad
Thu Dec 21, 2017 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Confusion about prepaying property taxes
Replies: 139
Views: 19964

Re: Confusion about prepaying property taxes

Tamales wrote: Thu Dec 21, 2017 10:49 am The people participating in this thread seem to already know that pre-paying their 2018 property taxes before 12/31/17 has a tax advantage.

Can someone please explain the necessary pre-conditions for someone to be looking into whether they can pre-pay 2018 property tax (ignoring whether it's allowed in your location)?

For example, should I be looking at my 2016 Schedule A entries in "taxes paid by you" to make this decision?
Link to 2016 Schedule A: https://www.irs.gov/pub/irs-pdf/f1040sa.pdf
The "Taxes You Paid" section will be capped at $10,000 total for the 2018 tax year. If you will exceed $10,000 in 2018, it will probably be advantageous for you to accelerate your property tax payment.
by NorCalDad
Thu Dec 21, 2017 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 889
Views: 85903

Re: Tax Bill Omnibus Thread

I don't know if it's been said above (didn't read all 412 posts) but the thing I find most interesting about the new tax plan is that few people will itemize. A $24,000 standard deduction is huge. It takes a lot of donations + taxes + interest in order to justify itemizing. The takeaway on that is that most charitable donations (cash or goods) from regular people will no longer be tax deductible. I am curious to see if this has much impact on charitable donations that are received by non-profits. In particular, we used to get a nice tax writeoff for donating items to thrift stores. Will be interesting to see the implication on non-profits. I have a feeling people will still donate items to thrift stores. I mean, what else are they going to...