Search found 272 matches

by berg
Fri Aug 16, 2019 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance...am I missing something?
Replies: 15
Views: 1042

Re: Refinance...am I missing something?

You could pay ahead aggressively a little bit and save the total interest amount just the same as a 1/8 point no cost refinance. Why bother? Personally, if it isn't 1/2 a percent point or more difference, it's not even worth my time. Everyone's different that way though. We don’t plan to pay down e...
by berg
Fri Aug 16, 2019 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance...am I missing something?
Replies: 15
Views: 1042

Re: Refinance...am I missing something?

deikel wrote:
Fri Aug 16, 2019 2:44 pm
You are missing the opportunity cost: The 6500 you are plunking down don't generate money for you anymore making your break even more like 3.5 years
That is a good point - though at current savings rates, the breakeven still doesn't feel that long for a home we plan to be in for 20+ more years.
by berg
Fri Aug 16, 2019 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance...am I missing something?
Replies: 15
Views: 1042

Re: Refinance...am I missing something?

How do you have so much equity so fast? Are you prepaying? If so maybe a 7/1 arm makes more sense. We put down $380k on the purchase. Original loan was $550k. We do not prepay - at 3.625% we chose to invest in taxable instead. I'd prefer to keep the 30 year, though would maybe pay it down in such a...
by berg
Fri Aug 16, 2019 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance...am I missing something?
Replies: 15
Views: 1042

Refinance...am I missing something?

I am 21 months in to a 30 year mortgage with a rate of 3.625%. Home value is about $950k, currently owe about $532k. Current monthly P&I = $2,508. I just talked to the mortgage guy I used for my purchase. He can get me down to 3.375% with $3500 in closing costs. This gets me a monthly P&I of $2,352,...
by berg
Fri Aug 16, 2019 7:53 am
Forum: Personal Investments
Topic: Helping widowed mother with plan
Replies: 15
Views: 1368

Re: Helping widowed mother with plan

Thanks all for all your help and feedback! I think we are ready to move the money from cash to an investment fund. A first for my mother in her 74 years! For simplicity, thinking of just opening a Fidelity account for her and putting it in a single fund -- FFGFX -- Fidelity Freedom® Index 2005 Fund,...
by berg
Fri Aug 16, 2019 7:37 am
Forum: Personal Investments
Topic: Helping widowed mother with plan
Replies: 15
Views: 1368

Re: Helping widowed mother with plan

I'd consider a cash-out refinance on the rental property. Reduce that rental cash flow to 0 and let that rental property run at a tax loss. Hold it for the step up in basis upon death. That would give her a chunk of liquid cash without possible tax consequences of selling the 10-year rental propert...
by berg
Thu Aug 15, 2019 8:02 am
Forum: Personal Investments
Topic: Helping widowed mother with plan
Replies: 15
Views: 1368

Re: Helping widowed mother with plan

Using 4% SWR: the $185k invested today = $7,400 per year of $600 per month and the $256k invested in in the trust is another $10,000 per year or ~$833 per month. When you take this, her rental income, and her pension, I have her running a deficit of $100 to $600 per month. Only thing really to do t...
by berg
Wed Aug 14, 2019 3:44 pm
Forum: Personal Investments
Topic: Helping widowed mother with plan
Replies: 15
Views: 1368

Re: Helping widowed mother with plan

Overall your mom’s financial picture is fine. Even though she only has $255k in liquid assets at age 74, she has LTC insurance, a pension that covers most of her expenses, an inheritance and she has a house and rental property that she can always sell/reverse mortgage. I think your plan for the $25...
by berg
Wed Aug 14, 2019 3:35 pm
Forum: Personal Investments
Topic: Helping widowed mother with plan
Replies: 15
Views: 1368

Re: Helping widowed mother with plan

In general, getting the $185K + $256K (64K x 4) into an investment portfolio and taking, say, 6% of portfolio balance per year covers her shortfall. Other commenters, see my expansion in the third paragraph below before reacting to the 6% suggestion, I am working from the Merriman information. I wo...
by berg
Wed Aug 14, 2019 11:22 am
Forum: Personal Investments
Topic: Helping widowed mother with plan
Replies: 15
Views: 1368

Helping widowed mother with plan

I’m trying to help my mom consolidate her assets and come up with a plan for her. She is 74 years old and has never really done much to manage her own finances. She was widowed from my step-father about a two years ago and I’m trying to help her feel comfortable with her plan going forward. I posted...
by berg
Mon Mar 18, 2019 5:30 am
Forum: Personal Consumer Issues
Topic: Am I being cheap? Wife wants a minivan, but I want to hold off
Replies: 170
Views: 8775

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

Wow. After years of posting on this forum, I think my minivan post has generated the most replies! And despite me originally posting it to the Personal Investments board by accident! Thank you all for your feedback. It is always good to bounce thinking off this forum. It amazes me how these types of...
by berg
Sun Mar 17, 2019 9:20 am
Forum: Personal Consumer Issues
Topic: Am I being cheap? Wife wants a minivan, but I want to hold off
Replies: 170
Views: 8775

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

Pickle11 wrote:
Sun Mar 17, 2019 9:17 am
Can you upgrade your car and keep the CR-V?.
I have a 2012 Subaru Legacy with only 47k miles. So wouldn’t really makes sense to trade that and keep the CR-V.
by berg
Sun Mar 17, 2019 9:13 am
Forum: Personal Consumer Issues
Topic: Am I being cheap? Wife wants a minivan, but I want to hold off
Replies: 170
Views: 8775

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

Hello fellow Bogleheads! Can you help me decide if I am being practical or cheap? Of course, it is subjective but would love a sanity check from the hive mind. My wife drives a 2009 Honda CR-V with 79,000 miles on it (probably $5k trade-in). We have a 3-year-old and 4.5-year-old. She very much wants...
by berg
Sun Mar 17, 2019 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Elderly parent on path to run out of money in 6 months
Replies: 35
Views: 9540

Re: Elderly parent on path to run out of money in 6 months

OP here! Wow, this thread was resurrected. Within a year of the original post my father suffered a deep decline in his health. At the time of my post, he was on a path to only have his limited income barely his expenses. What I feared in my original post was a catastrophic event. It turns out the ca...
by berg
Wed Feb 06, 2019 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Helping widowed mother come up with a plan
Replies: 21
Views: 1800

Re: Helping widowed mother come up with a plan

So just trying to recap, would the general consensus be to compare for her a SIPA vs. VTINX? What do you think the best way to compare those is?
by berg
Sun Feb 03, 2019 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Helping widowed mother come up with a plan
Replies: 21
Views: 1800

Re: Helping widowed mother come up with a plan

Thanks all for your thoughts. As always, very helpful perspective. I am in the accumulation phase myself, so I feel like I haven't spent as much time thinking on this end of things. She understands there is risk in owning a rental, but she feels much more comfortable with that than the stock market...
by berg
Sun Feb 03, 2019 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Helping widowed mother come up with a plan
Replies: 21
Views: 1800

Re: Helping widowed mother come up with a plan

Thanks all for your thoughts. As always, very helpful perspective. I am in the accumulation phase myself, so I feel like I haven't spent as much time thinking on this end of things. She understands there is risk in owning a rental, but she feels much more comfortable with that than the stock market....
by berg
Sat Feb 02, 2019 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Helping widowed mother come up with a plan
Replies: 21
Views: 1800

Re: Helping widowed mother come up with a plan

A lot of great questions. Thanks all! You mentioned selling the property and buying a fixed annuity. There are many things available that are called a "fixed annuity". Did you actually mean Single Premium Immediate Annuity? That is what many people here would recommend for a risk averse 73 year old ...
by berg
Sat Feb 02, 2019 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: Helping widowed mother come up with a plan
Replies: 21
Views: 1800

Re: Helping widowed mother come up with a plan

Is any of her nest egg in Roth or IRA? You did not say. I am not sure you should suggest she do anything beyond making sure that cash is in a ladder of CDs. I bet some part of her current $$ is invested in stocks. So find out what $$ are invested in what and where first. It is all cash. She has no ...
by berg
Sat Feb 02, 2019 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Helping widowed mother come up with a plan
Replies: 21
Views: 1800

Helping widowed mother come up with a plan

I’m trying to help my mom consolidate her assets and come up with a plan for her. She is 73 years old and has never really done much to manage her own finances. She was widowed from my step-father about a year ago and I’m trying to help her feel comfortable with her plan going forward. Assets Cash: ...
by berg
Wed Jan 16, 2019 10:38 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 57901

Re: John Bogle has died at age 89

Thank you, Mr Bogle. What a legacy.
by berg
Sat Dec 22, 2018 9:10 am
Forum: Personal Investments
Topic: TLH right after dividend payments
Replies: 9
Views: 688

TLH right after dividend payments

I was taking a look at my taxable account this morning and between VLCAX and VTIAX I have about $26k in losses (lucky me!). Dividends were paid out yesterday across my taxable and roth accounts for about $3k. Do I understand correctly that if I TLH the $26k, the only impact of the $3k is that it bec...
by berg
Thu Oct 11, 2018 9:44 pm
Forum: Personal Investments
Topic: Tax loss harvest VTSAX -> VLCAX
Replies: 10
Views: 1106

Re: Tax loss harvest VTSAX -> VLCAX

Yes, the wash would apply to the shares purchased with the $288 and $155, so the dollar amount will likely be much much smaller than $443. And yes, you would have to make a small change to your tax return as shown elsewhere on the forum. So seems like a no brainer to do it? Feel like I'm missing so...
by berg
Thu Oct 11, 2018 9:31 pm
Forum: Personal Investments
Topic: Tax loss harvest VTSAX -> VLCAX
Replies: 10
Views: 1106

Re: Tax loss harvest VTSAX -> VLCAX

You have a choice: 1. Wait to TLH in taxable because the shares bought in the IRAs will create wash sales -or- 2. Don't wait to TLH and show the disallowed loss on your tax return. Am I understanding correct that the wash would only apply to the $288 + $155. So still looking at a $7500 TLH? The cat...
by berg
Thu Oct 11, 2018 9:25 pm
Forum: Personal Investments
Topic: Tax loss harvest VTSAX -> VLCAX
Replies: 10
Views: 1106

Re: Tax loss harvest VTSAX -> VLCAX

Nicely done! As livesoft (the TLH master in my eyes) alluded to, as long as you sell the dividend too, you will not have generated a wash sale. Vanguard may show it as such (I've seen this when selling multiple lots) but the effect will be no wash. You mentioned VTSAX lot is all you have in taxable...
by berg
Thu Oct 11, 2018 9:04 pm
Forum: Personal Investments
Topic: Tax loss harvest VTSAX -> VLCAX
Replies: 10
Views: 1106

Tax loss harvest VTSAX -> VLCAX

So about a month ago I added a lump sum to my taxable portfolio. I already owned VLCAX in the account, with lots from 2016. For my recent lump sum I purchased VTSAX and that lot is the only VTSAX I own in my taxable account. With the dip the last few days, I have a loss of about $8k right now. Any r...
by berg
Mon Oct 01, 2018 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a bigger home
Replies: 7
Views: 1191

Re: Buying a bigger home

CD no question. I just did this myself for the last few years and it was handy when we sold and moved. The flexibility of cash is huge when buying a new home And moving. We bought our new house before having to close on the sale of our current house which was flexibility that reduced the stress of m...
by berg
Mon Sep 10, 2018 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

I hate to do this, but bump...we'd really love the Boglehead hive mind to sign off on this approach! :D
by berg
Sun Sep 09, 2018 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

Thank you all so much for your thoughts. After discussing throughout the last week, my wife and I are now leaning toward taking the $200k meant for a recast and investing in taxable as per our AA. Still leaves us with $175k to figure out over a bit of time in terms of emergency fund/home repairs and...
by berg
Tue Sep 04, 2018 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

While we are diligent about maxing our retirement savings and we max backdoor roths in one chunk one jan 1st, it is hard not to have some emotion about putting such a large chunk in the market at once. We are only human! You don't seem to be having the same emotion about the money already in the ma...
by berg
Tue Sep 04, 2018 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

Thank you all for your thoughts! You have given us a lot to think about as we make this big decision. We also see the value in liquidity which is part of our analysis paralysis! Am I oversimplifying here though to suggest that this has become another thread on pay down mortgage vs. invest? While we ...
by berg
Mon Sep 03, 2018 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

I'm not sure I'm following. Are you just saying you'd keep more in liquid assets? I know this home price does not necessarily meet the rules and approach you have laid out in other threads. But this is the situation we have chosen. berg, The big picture question that you need to answer is A) Is it ...
by berg
Sun Sep 02, 2018 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

We haven't yet decided how much of our children's education we want to pay for. We are currently contributing $3k per year each. We both like the idea of eliminating debt and a major fixed expense by the time I am around 50 (15 years from now). My wife will need to work another 10 years beyond that...
by berg
Sun Sep 02, 2018 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

First, to answer your original question, I think the plan you've laid out in your OP is a good one for the cash. No perfect answer, just implement a pretty good plan and stop the paralysis. You have a good income, high net worth, and are saving 20-25% of gross, mostly for retirement. Good job! Seco...
by berg
Sun Sep 02, 2018 5:30 pm
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

Thanks for answering my questions. I know how daunting it is to have cash- just on a smaller scale. What is your savings rate? You mention some house items in the future. How long would it take to save up with new money? That could help to alleviate concerns with adding to your taxable account now....
by berg
Sun Sep 02, 2018 7:07 am
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

OP, If you lose your job and you need to live on your wife's salary, how long can you last? 12K per month = 144K per year. Do you have at least one year worth of emergency fund? KlangFool With belt tightening I think + post recast, in a true emergency I think our expenses could be limited to $8-9k ...
by berg
Sun Sep 02, 2018 6:54 am
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

You are conservative Your breakdown to me is basically 200k to mortgage and 165k to emergency fund (disguised as two separate accounts). While you are right, we liked the idea of the dedicated e-fund. Up until this point in our lives, the cash had just been piling up as we saved for our home and al...
by berg
Sat Sep 01, 2018 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

...can't stomach the idea of taking $200k and throwing it in the market right now. Can you do better than Bob ? Ha. Yes, I have read a lot of this during our analysis paralysis. I think part of what pushes us toward paying down is the cash flow given our expenses. While long run we might win, we do...
by berg
Sat Sep 01, 2018 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4653

Analysis Paralysis - Mortgage, Emergency Fund, etc.

My wife and I are having trouble deciding how to allocate some cash we have. Between the sale of our old home and being conservative as we were getting ready to purchase our forever home, we know find ourselves with too much cash on hand. We'd like to figure out how to allocate, but we keep getting ...
by berg
Sun Aug 26, 2018 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: Recasting Mortgage Options
Replies: 8
Views: 1378

Re: Recasting Mortgage Options

Right - so if I keep the loan exactly as is, I pay 2.76% on that $5,600 in interest (and smaller each year), while the next $1,500 (before I hit the standard deduction) interested is effectively 3.625%. This is a blended rate of 2.94%, decreasing each year as I pay less interest with the benefit ex...
by berg
Sat Aug 25, 2018 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Recasting Mortgage Options
Replies: 8
Views: 1378

Re: Recasting Mortgage Options

Our mortgage balance is $541k at a rate of 3.625% on a 30 year and our tax rate is 24%. We will itemize with the mortgage this big, but with a big pay down we will probably end up with the standard deduction in 2019 going forward. If your paydown is against deductible interest, you earn only 2.76% ...
by berg
Thu Aug 23, 2018 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Recasting Mortgage Options
Replies: 8
Views: 1378

Re: Recasting Mortgage Options

I'm conservative. After maxing out the TSP and two Roths we pay down the mortgage. I think your answers are going to depend on your risk tolerance. Are you on a 15 or 30 year mortgage? If it's tight on a 30 could you pay it down enough to refinance to a 15 for some forced savings? It's a 30 year mo...
by berg
Thu Aug 23, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Recasting Mortgage Options
Replies: 8
Views: 1378

Re: Recasting Mortgage Options

You need to check with your lender to see what they charge to recast. I think it's in the neighborhood of $500 each time I've checked. We've just opted to pay down the mortgage instead and keep the old payment since we could afford it. Thanks. It is a $300 fee and they require at least 10% of balan...
by berg
Thu Aug 23, 2018 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Recasting Mortgage Options
Replies: 8
Views: 1378

Recasting Mortgage Options

My wife and I are looking to pay down our mortgage and do a recast. We bought a new house about a year ago and sold our previous house a week later, so we still have much of the profits sitting in cash. We have debated back and forth (and read endless Bogleheads threads on the subject) on investing ...
by berg
Thu Jul 26, 2018 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Major Life and Home Expenses
Replies: 4
Views: 863

Major Life and Home Expenses

I'm in the process of taking some cash from the sale of my previous home and deciding what to do with it in terms of investing, paying down my mortgage, etc. However, I want to make sure I have enough cash on hand for big known, but non-recurring (e.g not daycare) upcoming expenses. We have been in ...
by berg
Sun Jul 22, 2018 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Real salary growth negative?
Replies: 45
Views: 4977

Re: Real salary growth negative?

1. the math is pointless because 'inflation in general' is pointless - inflation on what ? the cost of real estate in your area? that is very different area to area. the cost of appliances (those get cheaper and cheaper)? the cost of food? the cost of health care? what matters are your expenses and...
by berg
Sun Jul 22, 2018 9:33 am
Forum: Personal Finance (Not Investing)
Topic: Real salary growth negative?
Replies: 45
Views: 4977

Real salary growth negative?

I'm curious if I'm doing the math right here, but it seems pretty straightforward. My wife is a public school teacher and has reached the top level in pay increases, which means basic COLA raises going forward. She has 25 years until retirement. The last several years, pay increases have been betwee...
by berg
Wed Jan 03, 2018 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Financial (or other planning) for job switching
Replies: 5
Views: 760

Re: Financial (or other planning) for job switching

I'm not currently planning any contribution changes in my 401k, will still contribute to max out as if I was staying the whole year. Any reason to max early? Some companies don't let you join their 401ks right away, right? So maybe I should make sure I max out this year with my current employer? Ho...
by berg
Mon Jan 01, 2018 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Financial (or other planning) for job switching
Replies: 5
Views: 760

Financial (or other planning) for job switching

After nearly a decade at my large employer, I am beginning to explore new opportunities. I think it is highly unlikely that I am still working there at the end of 2018. I'm curious if there are any best practices I should be considering given the expected change, financial or otherwise. For example,...
by berg
Sun Nov 12, 2017 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: "Starter House" - to pay off or not?
Replies: 13
Views: 2023

Re: "Starter House" - to pay off or not?

I did not and would not. We recently bought and sold. Having that extra cash on hand gave us flexibility. We were able to close on the new house first and sell the other three days later. This made the move a lot less stressful. I debated this myself and the amount I lie through the interest was wor...