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gclancer

In anticipation of this, i have moved my 401k from SP500 funds to stable value (4.5%). Do you have investments outside of your 401(k)? Do you have any allocation to fixed income? Are you saying your stable value fund pays 4.5%? Depending on what your global portfolio looks like that stable value fu...

gclancer

Your current income of ~$4k/month (which will increase to ~$6k) exceeds your monthly expenses of $2k. Rather than withdrawing from your Roth IRA, consider using $20k of your $50k emergency fund to payoff today your $20k car loan at 3.28%. Then use your monthly excess of $2k-$4k plus your former car...

gclancer

To clarify, you’re intending to initially live in the property and then rent it out once you buy a place to live in the part of town you want to live in long term?

gclancer

If you’re willing to do some leg work you could transfer it between various bank savings accounts in order to get new account bonuses. That’ll goose your overall returns and three years is about the right amount of time to hit up all the usual suspects offering said bonuses. Typically you have to le...

gclancer

yangtui wrote: ↑Wed Jan 20, 2021 6:15 pm I am able to direct my payroll contributions to Fidelity. The pass through contributions go to HSABANK though.

+1 the pass through contributions have to go to HSA Bank. You can do periodic rollovers of the money at HSA Bank to Fidelity if you want to.

gclancer

I’ve been predicting this for awhile - why stop now! Add me to your bandwagon.

gclancer

2 - I am planning to convert the pre-tax SEP-IRA contribution into a ROTH account (along with the contribution for the backdoor). I will pay taxes on that conversion with money from a taxable account. This is the key to the analysis. If this is true for 2020 as well as any future calendar year then...

gclancer

You may want to consider the current return from the G Fund vs. the current rate of inflation. o If only we knew that the status quo would persist . . . Very easy to correct after the first year: stop buying I-bonds, sell I-bonds, or both, and buy the fund. It really is that simple. Agreed - the ma...

gclancer

oncorhynchus wrote: ↑Sun Dec 20, 2020 9:58 am You may want to consider the current return from the G Fund vs. the current rate of inflation.

o

If only we knew that the status quo would persist . . .

gclancer

This is going to turn out to be a bad idea, but for people to be able to run the numbers and show you why you’ll need to provide your marginal tax rate (the “tax bracket you’re in” for federal and state taxes). If you’re not sure what your marginal tax rate is, you could provide your approximate inc...

gclancer

Welcome to the forum. Answers: 1. No objection to using 100% stock in a Roth IRA. Is there a 401k at the job? If so, that would be a better place to hold bonds, assuming there is a decent choice. 2. The 500K range seems awfully high for an annual income base of $48K. Banks often don't like to rely ...

gclancer

Do some research on Coverdale ESA accounts which may provide a solution for this scenario.

gclancer

What am I missing? You could say that the tax-free growth of HSA contributions is valuable, but I'm not sure it's worth being under an HDHP (for me personally). This is what you’re missing. FSA is essentially use or lose. Your plan may permit you to roll over up to $550 to the next calendar year, h...

gclancer

To my knowledge, the primary advantage to not commingling is asset protection/bankruptcy exemption based on state law. You’d have to balance the convenience of having just one Roth account vs the chances you would benefit from the previously referenced advantages. I think a logical person could choo...

gclancer

I did two NP CD withdrawals in August and September at Ally. After waiting twenty minutes with a rep to do the September withdrawal I asked why I can’t withdraw online anymore. The rep told me it was for security issues. Some story about breaches and what not. Do I believe the rep? Not really. Do I...

gclancer

None that I know of. You can either go plan by plan and look at the materials provided by the insurers (this isn’t as daunting as it may seem since at least in my opinion there’s only a handful of logical choices per state for most situations). Alternatively, you can spend a bit of money and get wha...

gclancer

I’d put it towards the mortgage. Maybe also refi into a 15 or 10 yr with a better rate? Your rate is good, however, so keeping the 30 yr and paying extra is also a good option IMO. +1 You could do a low cost refi into a 10 year mortgage at around 2.5%. You could earmark the 529 money for your oldes...

gclancer

harrychan wrote: ↑Sun Sep 27, 2020 11:26 am
Dennisl wrote: ↑Sun Sep 27, 2020 10:23 am Now if you had invested with Tony Montana, you would’ve made some money.
Depends. Look at the lawsuit of his penthouse in SF that is sinking.

Tony lived in Miami not San Francisco. Though I do think his real estate also ended up being in unacceptable disrepair.

gclancer

Alas, this isn't an option to do 2 separate loans....maybe a HELOC later? Yes, I would do the conforming mortgage plus a HELOC if you don’t want so much capital out of the market and in your house. You should be able to source a HELOC not considerably higher than 2.75% and the interest would still ...

gclancer

I would pay off the loan and if you have any bonds funds, reduce any money going to bonds by an equivalent amount and instead have the money going into equity funds. +1 I’d pay off the car as well. In my view, one of the major paradigm shifts of this low interest rate environment should be to commi...

gclancer

Bobby206 wrote: ↑Sun Sep 20, 2020 6:56 pm Hold it for future grandkids!?

+1

gclancer

fyre4ce wrote: ↑Sat Sep 19, 2020 4:42 pm Hope that helps. Good luck!

Fyre4ce’s post is all great advice. OP - read it closely and best of luck.

gclancer

Conservative investments at your age in Roth is a waste. You have time on your side. Your Roth space should be 100% equities. You are better paying off your loans than wasting roth space in that manner. Not if it’s a side fund earmarked for paying off his student loans in the event of an unexpected...

gclancer

Does the above at all affect your advice? If it doesn't affect your advice, then is that because you think it's unlikely that I'll be to fully psychologically equate the Roth IRA amounts with paying off my debt [if so, I think that that's a fair point] or is it instead for some other reason? Thank ...

gclancer

I have never done business with Ally Bank, so I have no first hand experience with them. Since joining bogleheads, I have been mystified by the way that many of our members put Ally on a pedestal, just as they do with Vanguard. Whether or not Vanguard should be on a pedestal is a different topic, b...

gclancer

Jags4186 wrote: ↑Thu Sep 10, 2020 5:12 pm Don’t listen to the naysayers. Take the $1.5mm and buy the house.

Early 30s. $1.5mm gift. $800k income. No debt. Some people have it all.

+1 I guess I’m confused, since when can’t $800k per year in income service a $1.5M mortgage? [OT comment removed by moderator oldcomputerguy]

gclancer

Do you currently file your taxes as a single? Any chance you’ll get married in the future?

gclancer

Spencer wrote: ↑Thu Sep 03, 2020 2:09 pm
I would take the cash out option on this deal, pay taxes, and then look at local deals without the divorcing 3rd partner, and then you can 1031 to your heart's desire.

+1

gclancer

If he’s healthy GEHA High Deductible Health Plan is a no-brainer. Includes basic vision and dental coverage (obviating need for FEDVIP) and funds the HSA with $900 (lowering the net overall premium). Your son should consider fully funding the HSA and investing the money at TD Ameritrade (GEHA facili...

gclancer

If it was me I would go with option 2 in this case and slowly move into a 3 to 5 fund port after you understand the tax ramifications better. +1 Option #2 is the best path forward. Perhaps overtime you’ll become more comfortable with using ETFs which is probably a better long term solution than the...

gclancer

30F with a DH and 2 year old Making 160k a year between the two of us House of 425k is paid off Only debt is 9k on a tractor loan at 0% APR My asset allocation was 90/10 and the 10% was in IBonds. However after maxing out 401ks/IRAs/529, I only have about 10k extra a year and I'm questioning whethe...

gclancer

HELOC is probably the best option. Cash out refinances tend to have higher interest rates and will also have closing costs associated with them. HELOC probably won’t have closing costs, and although the interest rate is often variable you can probably find a rate that is competitive with the cash ou...

gclancer

Grover22 wrote: ↑Thu Jul 30, 2020 1:12 pm Since we lived in the house for at least two of the last five years, this amount is tax free, correct?

You need to do more research on this. Did you depreciate the property on your 2019 tax return?

gclancer

Perhaps you could sell the ETFs and buy your life strategy mutual funds with the proceeds. You’d have to realize about $1,400 in short term gains by doing so. On a tax adjusted basis you still come out ahead of the life strategy fund so alls well that ends well as they say.

gclancer

This seemed inevitable. If they end up fleshing this out to the point that regular old retail investors can invest with DFA I wonder what that does to their mutual fund business model? Seems like they’d almost have to stick to core type ETFs.

gclancer

If you can convert at 0% federal tax rate you should do it but do be aware that you may end up owing state tax on the conversion.

gclancer

if these transfers qualify for the marital deduction (outright transfers to US citizen spouses do), it may not be too bad to get the 706 completed. If the whole estate qualifies for the marital deduction, you’d be porting all of his unused exemption to your mother. Assuming no prior taxable gifts, ...

gclancer

The upside of filing the 706 is that your mother’s heirs will receive the benefit of $11M+ estate tax exemption, even if the estate tax exemption amount is reduced in the future. I personally think it’s worthwhile insurance. If you don’t want to pay someone to file the 706 for you try filing it out ...

gclancer

With your interest rate that high vs prevailing levels, I'd say you should very much refinance. You can choose to go the "no-cost" route, where you will sell points (accept a slightly higher interest rate vs the prevailing 2.5% for 15 year mortgage). Maybe you end up getting 2.75% or some...

gclancer

Seems like an awfully logical plan to me. I’m sure there’s plenty of details you could nit pick over and try to optimize, but that approach is probably good enough in most situations.

gclancer

If you have an heir that you would like to have the money, and assume an age of death far beyond how long you think you’ll live, you can calculate the ROI on what the tax free death benefit will be based upon the remaining premiums to be paid. All premiums that have been paid to date are a sunk cost...

gclancer

It all depends on how certain you are about how long you’ll be in the home. I don’t think the current delta (either across the board or the specific rates you quoted) between adjustable rate and fixed rate mortgages adequately compensate the borrower for assuming the interest rate risk (at least the...

gclancer

Did you make any overpayment for the full year ($7100 family or $3550 individual)? This also includes contributions made by your plan. If the answer is no, then just reduce future contributions to not exceed yearly limits. If the answer is yes, fill this form out: https://www.hsabank.com/hsabank/~/...

gclancer

I know there’s a lot of threads on one stop shops you’ve probably reviewed. Based on what you posted seems like Schwab is the best fit. Schwab Bank also offers a 1.5% cash back credit card that’s probably good enough if you really want everything under one roof.

gclancer

With two acres I’m afraid you’ll have to choose between chemical pesticides or dandelions.

gclancer

tashnewbie wrote: ↑Mon May 18, 2020 8:28 pm Is she comfortable (temporarily) depleting your EF to repair deck?

Wife: Where’s our emergency fund?

Lloyd: That’s as good as an emergency fund, that’s an IOU. See this? That’s a deck, 10 thou, might want to hang on to that one.

gclancer

Yes. Pay extra principal to true up to the 15 year monthly payment if you want it to be a 15 year mortgage and it will turn out the same.

gclancer

You could finish off your 2019 Roth contributions using your emergency fund and leave the contributions invested in a money market fund until your emergency fund is replenished. This makes sure you beat the contribution deadline, an if you need the emergency fund you can always pull the money back o...

gclancer

Link doesn’t appear to be working.

gclancer

I wish I had the discipline like many of you have to keep up with what Discover IT is covering this quarter. I'm lucky if I keep my passport and drivers license current b :| That’s understandable and reasonable. For what it’s worth, DoubleCash/IT/Freedom is probably the best “good enough” combo tha...

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