Search found 4058 matches

by Lafder
Sat May 30, 2020 10:28 am
Forum: Personal Investments
Topic: Time for a new house?
Replies: 35
Views: 2757

Re: Time for a new house?

You can list the old house for sale at a price you are willing to sell it for, and also list it for rent at a price that is worth renting and see which gets an offer first. We bought a new house before selling the old and planned to sell the old. But after over 6 months on the market, I got nervous ...
by Lafder
Fri May 29, 2020 8:54 am
Forum: Personal Investments
Topic: Overpay for the home we love?
Replies: 62
Views: 4718

Re: Overpay for the home we love?

I would look around to see what else 475k would buy in your current town. That will remind you if the house you are in is worth the price and if you love it as much as you think you do. Overall it will cost you less to keep renting. No property tax, insurance, repairs. There is freedom to owning a h...
by Lafder
Thu May 28, 2020 9:21 am
Forum: Personal Investments
Topic: Betterment liquidated my investments without my authorization
Replies: 75
Views: 5360

Re: Betterment liquidated my investments without my authorization

I am sorry for your frustration. It looks like Betterment states in their policies/descriptions that they have the right to liquidate holdings to complete a transfer to another company. It also looks like they say they will not do an in kind transfer. If you knew this ahead of time, would you have l...
by Lafder
Sat Apr 25, 2020 10:27 pm
Forum: Personal Investments
Topic: In plan Roth conversion vs mega backdoor Roth ?
Replies: 20
Views: 1015

Re: In plan Roth conversion vs mega backdoor Roth ?

Thank you all. I will double check the frequency limits on in plan conversions, and if there is a cost. All of your comments helped. I am glad to read more. I can not recall why, when we last had this option, the mega backdoor Roth option was what I chose. It was several years ago. My husband was of...
by Lafder
Sat Apr 25, 2020 12:03 am
Forum: Personal Investments
Topic: In plan Roth conversion vs mega backdoor Roth ?
Replies: 20
Views: 1015

In plan Roth conversion vs mega backdoor Roth ?

(Sorry if I use " I " or "we" in a strange way. It is my spouse's plan, but they let me do the research and make the decisions and I have a power of attorney with the plan to make the transactions happen.) If a 401k allows inservice withdrawals of post tax contributions, so that I can move them to a...
by Lafder
Sat Apr 18, 2020 8:44 am
Forum: Personal Investments
Topic: Northwestern Mutual 3.5% on Inherited Cash
Replies: 51
Views: 3747

Re: Northwestern Mutual 3.5% on Inherited Cash

3.5% sounds solid.

But what are the annual expenses?

3.5% minus 1% or 1.5% is not as great as 3.5%

lafder
by Lafder
Sat Mar 21, 2020 3:44 pm
Forum: Personal Investments
Topic: What does having a Fidelity adviser entail? Should I be concerned about parents & in-laws.
Replies: 14
Views: 715

Re: What does having a Fidelity adviser entail? Should I be concerned about parents & in-laws.

There is a difference between a paid advisor at Fidelity and an "advisor" that simply reaches out to you from time to time and offers services and sends emails or makes phone calls. I have the latter. I occassionally get an email or phone call asking if I need help with anything. I have been able to...
by Lafder
Sat Mar 21, 2020 1:43 pm
Forum: Personal Investments
Topic: Dad pulling retirements out of market. Advice Please!
Replies: 58
Views: 5952

Re: Dad pulling retirements out of market. Advice Please!

We have no way of knowing what the market will do. He needs to do what will allow him to sleep better at night. He has less years to wait for market recovery than you do. My parents did the same in 2008, without even giving me a chance to talk them out of it.......... There is also a compromise of t...
by Lafder
Sat Mar 21, 2020 1:41 pm
Forum: Personal Investments
Topic: Have Cash: Payoff Mortgage or Invest in this fire sale
Replies: 20
Views: 1662

Re: Have Cash: Payoff Mortgage or Invest in this fire sale

Pay off the mortgages, save back a larger chunk of cash than usual, invest the rest.

That is what I would do.

lafder
by Lafder
Sat Mar 21, 2020 1:35 pm
Forum: Personal Investments
Topic: Late to the Game--"Catch up" opportunity?
Replies: 16
Views: 1395

Re: Late to the Game--"Catch up" opportunity?

I would not sell any existing bonds. But I agree changing to investing in 100% stocks with new purchases is exactly what I am doing with my own and my husband's 401k. It makes me feel better about the drop in value since I am buying "on sale" At some point I will need to start buying bonds, but it d...
by Lafder
Tue Mar 10, 2020 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: What are the rules on having a "dependent"
Replies: 7
Views: 708

What are the rules on having a "dependent"

I thought that if you paid more than 50% of a grown Child's expenses, they are a dependent. My friend was told there are age limits regardless of $ support. (Person in question is 26 yo part time college student,part time employed, my friends' adult child) No need to comment on why to cut them off. ...
by Lafder
Mon Mar 09, 2020 11:36 pm
Forum: Personal Investments
Topic: Uncertain times: Windfall put in one brokerage, or diversify?
Replies: 1
Views: 234

Re: Uncertain times: Windfall put in one brokerage, or diversify?

Depending on the amount, I might divide between my bank and investment company/ies. It is a paranoia on my part, more than a rational fear, that one company will have a computer issue that freezes accounts. So having more than one company makes it less likely you would be effected. If all financial ...
by Lafder
Mon Mar 09, 2020 10:47 pm
Forum: Personal Investments
Topic: Moving 401k funds to a different broker.
Replies: 10
Views: 463

Re: Moving 401k funds to a different broker.

I believe some plans allow "in service distributions" so read the details of your plan.

They can each set their own rules so we can not answer without seeing your plan rules.

lafder
by Lafder
Mon Mar 09, 2020 10:39 pm
Forum: Personal Investments
Topic: Is it reasonable to tweak AA of upcoming investment?
Replies: 4
Views: 269

Re: Is it reasonable to tweak AA of upcoming investment?

Recalculate your current asset allocation. If it is off your desired ratio, adjust contributions to buy more of the low asset. If your AA is still on track, invest at your desired AA. I just calculated and even after the recent market drops my stock % has only gone from 64.4% stocks in November to 6...
by Lafder
Thu Mar 05, 2020 5:01 pm
Forum: Personal Investments
Topic: tax on rental property - previously primary residence
Replies: 15
Views: 688

Re: tax on rental property - previously primary residence

Look at your tax return for the year it became a rental. You should have listed the cost basis there to be able to start depreciating. Cost basis is the LESSER value of: Market value when it became a rental or Purchase price plus cost of improvements. Note depreciation for tax returns is just on the...
by Lafder
Thu Mar 05, 2020 4:48 pm
Forum: Personal Investments
Topic: Best Vanguard Index for Taxable Accounts
Replies: 3
Views: 769

Re: Best Vanguard Index for Taxable Accounts

My daughter is 21 and I suggested a Target date retirement index fund for her, I don't recall if she did 2060 or 2065. I don't know if she will ever rebalance, so I wanted a fund that had bonds and international and would do rebalancing. It also adds bonds with age. If she gets more interested, I us...
by Lafder
Thu Mar 05, 2020 4:41 pm
Forum: Personal Investments
Topic: Please help a newbie with investment
Replies: 10
Views: 368

Re: Please help a newbie with investment

Investing at a trickle sounds like the right thing for you.

Why can't you do a retirement account this year?

Lafder
by Lafder
Wed Mar 04, 2020 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: deductible health insurance premiums for self-employment?
Replies: 53
Views: 2858

Re: deductible health insurance premiums for self-employment?

I think it was a line item for cost of health insurance? I don't know the tax forms like some of you do and may have used the wrong wording. It was there somewhere. I may be confusing the workbook where I enter my numbers for the accountant, with the tax return itself........ I pay her to put the nu...
by Lafder
Wed Mar 04, 2020 9:38 am
Forum: Personal Finance (Not Investing)
Topic: House addition financing - need advice
Replies: 7
Views: 763

Re: House addition financing - need advice

It seems that your only option is a construction loan since you are unlikely to be able to borrow 100% of value with a HELOC or second mortgage. I would avoid a capital gains hit. Needing to borrow 100% of equity in your home sounds too risky to me and it is not clear it is possible. My personal exp...
by Lafder
Tue Mar 03, 2020 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: [Any experience with All-In-One mortgage?]
Replies: 3
Views: 340

Re: [Any experience with All-In-One mortgage?]

I never heard about it til now. It looks like it could tempt some people to spend equity too easily. This would be good for some since there would only be one set of closing costs and a line of credit type situation borrowing equity. I would want to know: What is the interest rate? What are the fees...
by Lafder
Tue Mar 03, 2020 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: deductible health insurance premiums for self-employment?
Replies: 53
Views: 2858

Re: deductible health insurance premiums for self-employment?

DoubleDog, I agree with your interpretation. I was in almost the exact same situation. My spouse quit his job, and we continued insurance under COBRA offered through his employer. But as soon as it was COBRA it was managed through United and we paid premiums to United even though the plan itself was...
by Lafder
Tue Mar 03, 2020 12:59 pm
Forum: Personal Investments
Topic: Refinance to 15 year fixed, or continue IRA contributions?
Replies: 14
Views: 918

Re: Refinance to 15 year fixed, or continue IRA contributions?

Always max IRAs. You never get that space back after tax deadline hits.

Save refi costs and up the payments on your 30 year loan, even if you can only afford a little more. The extra payment shortens the loan term by a lot by paying down principle.

Lafder
by Lafder
Tue Mar 03, 2020 12:50 pm
Forum: Personal Investments
Topic: Individual stocks - taxable account or tax advantaged accounts?
Replies: 6
Views: 343

Re: Individual stocks - taxable account or tax advantaged accounts?

Taxable. That way if they go down you can tax loss harvest!

As long as it is amounts you can play with, go for it.

How do you plan to pick your individual stocks?

Are they already held in your mutual funds?

Lafder
by Lafder
Mon Mar 02, 2020 6:04 pm
Forum: Personal Investments
Topic: Worst Timing :(
Replies: 45
Views: 7601

Re: Worst Timing :(

Don't look at what it was or would be. Just buy in at the new place and don't check balances for awhile.

A few years from now it won't matter.

This may be a good time to be sure you are comfortable with your AA.

Lafder
by Lafder
Mon Mar 02, 2020 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: What details are needed to decide if rental investments are worth keeping?
Replies: 9
Views: 515

Re: What details are needed to decide if rental investments are worth keeping?

I will tell them about the 1%. Maybe it's the depreciation that cancels their rental income. Can depreciation make it a loss year to year even if collecting more than the properties are costing them? Is there are income limit to using the depreciation? Does depreciation just count against rental inc...
by Lafder
Mon Mar 02, 2020 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: What details are needed to decide if rental investments are worth keeping?
Replies: 9
Views: 515

Re: What details are needed to decide if rental investments are worth keeping?

I believe houses were all bought with 30% down to qualify for non owner occupied loans.

Pretty good rental market near a university with graduate schools. Vacancies have filled quickly. But I will double-check. No evictions or problem tenants other than cleanable messes.

Lafder
by Lafder
Mon Mar 02, 2020 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Rental HELs?
Replies: 3
Views: 201

Re: Rental HELs?

I refinanced a rental in August or September of last year an 5 1/8 was the best I could find without paying down the interest. It was basically 2 whole points above a primary residence rate. This was a loan for less than 30% of value, so it was not a high risk loan. I used a local mortgage broker wh...
by Lafder
Mon Mar 02, 2020 1:26 pm
Forum: Personal Finance (Not Investing)
Topic: What details are needed to decide if rental investments are worth keeping?
Replies: 9
Views: 515

What details are needed to decide if rental investments are worth keeping?

My friends decided to get into single family rentals in the past ten years. They took cash and made down payments on about 6 properties. But they seem to run at a loss. They asked me to help figure out if they are in a bad business position, and should sell some to pay off/down some of the mortgages...
by Lafder
Sat Feb 29, 2020 2:30 pm
Forum: Personal Investments
Topic: Managing Private Equity Accounts
Replies: 5
Views: 247

Re: Managing Private Equity Accounts

If you want to bring the assets to Vanguard they will help you make 3 way calls to your financial advisor, or the private equity companies, to identify the holdings and how to get them moved. The Vanguard rep will know the terminology to ask the needed questions to arrange to get the money to them. ...
by Lafder
Thu Feb 27, 2020 9:16 am
Forum: Personal Investments
Topic: 38 yr old having 2nd thoughts...
Replies: 93
Views: 10759

Re: 38 yr old having 2nd thoughts...

Yes your holdings are too complex, and redundant. You are mixing all in one funds that hold an asset allocation and rebalance for you, and you are holding individual funds. You are also holdings funds that pay high dividends. 25 % SP 500 ((this is an index fund of the biggest of the big companies an...
by Lafder
Tue Feb 18, 2020 10:04 am
Forum: Personal Investments
Topic: Portfolio Review - Take a look and let me know your thoughts
Replies: 18
Views: 1593

Re: Portfolio Review - Take a look and let me know your thoughts

I would try really hard not to use retirement account funds to pay for college, especially not Roth.

Even if it meant your student taking out loans you help them pay back over time.......

lafder
by Lafder
Mon Feb 17, 2020 12:54 am
Forum: Personal Finance (Not Investing)
Topic: Joint account requiring permission from both?
Replies: 10
Views: 990

Re: Joint account requiring permission from both?

No. By definition, a joint account belongs to both parties equally, not each owning half. Check with the institution in particular for their rules. Whatever is set up, the other person can always walk in or contact them and clean out the account. Imagine a joint checking account, then a check writte...
by Lafder
Sat Feb 15, 2020 10:49 pm
Forum: Personal Investments
Topic: Wife's Solo 401k Solution -or- Move Forward With My Own Taxable Brokerage Account?
Replies: 6
Views: 378

Re: Wife's Solo 401k Solution -or- Move Forward With My Own Taxable Brokerage Account?

I would think she can fund her solo401k from income, and use personal money as needed to buy things for the business. I am not sure how income -401k - expenses would effect income taxes if less than zero. This is a great question for an accountant. Either way, solo401k or business expenses reduce ta...
by Lafder
Sat Feb 15, 2020 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Early inheritance for one - how to equalize disbursement?
Replies: 65
Views: 4135

Re: Early inheritance for one - how to equalize disbursement?

KISS Do not deal with percentages and increase in value that can be argued and legally dragged out by the sib resentful they are not getting an "equal amount" at the end. Take the total inheritance amount, give sibling 2 and 3 60k off the top, divide the rest in 3. Keep it simple and use the 60k amo...
by Lafder
Sun Jan 26, 2020 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Ambulance Ride and Insurance (911 House Call)
Replies: 24
Views: 2694

Re: Ambulance Ride and Insurance (911 House Call)

The bottom line to me is that you did the right thing!! You were worried enough that you called 911 and the medical experts recommended your child go to the ER via ambulance. They agreed with you it was an ER trip worthy emergency so it should fall under whatever your coverage is for an emergency. (...
by Lafder
Sun Jan 26, 2020 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Tax implications & large cash gift for down payment?
Replies: 111
Views: 3053

Re: Tax implications & large cash gift for down payment?

It sounds like you and your spouse have a great relationship with your FIL. The warnings to be careful may not apply to you. But it is worth considering in case they do. My understanding is that your FIL would have to file a gift tax form and file it, not you or your spouse. You should not owe any t...
by Lafder
Sat Jan 25, 2020 10:37 pm
Forum: Personal Investments
Topic: VOO PLUS VTI
Replies: 46
Views: 4008

Re: VOO PLUS VTI

To be clear on why people are saying it doesn't really matter if you go with an SP 500 or total stock market index: The total stock market index (VG) is made up of 81% Large cap = SP 500 4% Mid Cap (Still very giant companies) 15% Small Cap (Also surprisingly large recognizable companies) An SP 500 ...
by Lafder
Sat Jan 25, 2020 10:24 pm
Forum: Personal Investments
Topic: Mega Back Door ROTH conversion
Replies: 13
Views: 1384

Re: Mega Back Door ROTH conversion

When I did a mega back door Roth, the plan said that I had to withdraw the post tax contributions and the gains at the same time. And that I could do as you are saying, contributions into Roth, and gains into an IRA. Then I would have to move the IRA finds into the Roth myself. However I was told th...
by Lafder
Sat Jan 25, 2020 10:36 am
Forum: Personal Investments
Topic: Selling rental property or look for a next tenant?
Replies: 11
Views: 1084

Re: Selling rental property or look for a next tenant?

You can always let the market decide by doing some fixing and cleaning up when the current tenant moves out, then list it at a higher rental price as well as a for sale price and see who grabs it first! Updates may allow you to raise the rent. I agree a steady easy tenant makes being a landlord easy...
by Lafder
Sat Jan 25, 2020 10:30 am
Forum: Personal Investments
Topic: Advice for senior mother
Replies: 11
Views: 1021

Re: Advice for senior mother

She may like the security of some money in guaranteed CDs. My parents feel comfortable with having their deeper savings in the Vanguard Wellesley fund. It is more bonds than stocks. Since you do not describe your mom as having a history with investing, a drop in an account value might be very distre...
by Lafder
Sat Jan 25, 2020 10:20 am
Forum: Personal Investments
Topic: Year 7 as a Boglehead: :sharebeer: emoji
Replies: 13
Views: 1587

Re: Year 7 as a Boglehead: :sharebeer: emoji

It is great to see your progression!

The years go by quickly!

:)
by Lafder
Tue Jan 21, 2020 11:51 pm
Forum: Personal Investments
Topic: Mega Backdoor Question
Replies: 22
Views: 1177

Re: Mega Backdoor Question

Your RIRA abbreviations were a bit hard for me to follow :0. But I do understand Mega Back Door Roths. In a 401k, the pretax and Roth 401k limits add up to a max of $19,500 (plus another $6500 catch up amount if you are age 50 or above) I believe in maxing the $19,500 (or $26,000 if 50 or older) wit...
by Lafder
Tue Jan 21, 2020 10:52 pm
Forum: Personal Investments
Topic: Customer Service & Ease-Of-Use: Vanguard vs. Fidelity
Replies: 45
Views: 3997

Re: Customer Service & Ease-Of-Use: Vanguard vs. Fidelity

I have both Vanguard and Fidelity and both have been great whenever I have a question or issue. Websites are different, but both are very workable. To me it is like arguing if chocolate or vanilla are the best flavor. Or which is the best car. Or vacation. Or.....It just depends. And people most oft...
by Lafder
Tue Jan 21, 2020 4:08 pm
Forum: Personal Investments
Topic: Is a vanguard target date enough?
Replies: 37
Views: 3675

Re: Is a vanguard target date enough?

As an index fund made up of index funds, VG Target date funds hold: Total Stock Market Total International Stock Market Total Bond Market Total International bond market (Some company's target date funds have much more complex holdings so do check if it is with a different company) They rebalance fo...
by Lafder
Tue Jan 21, 2020 3:53 pm
Forum: Personal Investments
Topic: Principal As 401k Administrator - Feedback, Please
Replies: 51
Views: 2203

Re: Principal As 401k Administrator - Feedback, Please

0.21% annual management fees is low compared, to the income tax you will pay if you forgo 401k and take it as taxable pay. What are the Expense ratios on the possible holdings? My husband's 401k just added a quarterly management fee.......argh. But they do have low ER funds that still makes it bette...
by Lafder
Sat Jan 18, 2020 10:55 pm
Forum: Personal Finance (Not Investing)
Topic: My 60 y/o parents have basically 0 for retirement & will have no SS/Medicare
Replies: 166
Views: 17048

Re: My 60 y/o parents have basically 0 for retirement & will have no SS/Medicare

As I read your story, I was reminded of a book called The Glass Castle. Basically it is a woman's story of growing up with her dysfunctional parents. There is a movie that captures some of it, but the book is better, and it grabbed my interest from the first few pages. It may be worth reading. As ot...
by Lafder
Wed Jan 15, 2020 12:20 pm
Forum: Personal Investments
Topic: Old mistakes... want to convert to 3 fund portfolio
Replies: 4
Views: 643

Re: Old mistakes... want to convert to 3 fund portfolio

Take the time to post all of your detailed holdings including capital gains in your taxable holdings. It will help you/ us make a more clear roadmap of where to go and how to get there from here. The simplest place to start creating a 3 fund portfolio is in your retirement accounts where you can sel...
by Lafder
Wed Jan 15, 2020 11:26 am
Forum: Personal Investments
Topic: 3 Fund Advice with Taxes in Mind
Replies: 4
Views: 403

Re: 3 Fund Advice with Taxes in Mind

Welcome here! Go back and edit your taxable holdings with detailed specific holdings with capital gains/loss. Current retirement account holdings do not matter as much since you can sell and change holdings without penalty. You can design an ideal portfolio, if you sell eveything.......but there is ...
by Lafder
Mon Jan 13, 2020 11:25 pm
Forum: Personal Finance (Not Investing)
Topic: Mom is updating her will - any “gotchas”?
Replies: 40
Views: 4345

Re: Mom is updating her will - any “gotchas”?

My understanding is that a TOD/POD account goes to the beneficiary upon showing a death certificate to the fiduciary. This is relatively fast once they verify it is real. It could be on the order of weeks. These accounts would not be covered by the will because the TOD/POD takes precedence. Probate ...
by Lafder
Mon Jan 13, 2020 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Family member with almost no retirement savings or assets, what to do?
Replies: 55
Views: 7420

Re: Family member with almost no retirement savings or assets, what to do?

Expenses 2000/month, SSDI 2000/month, plus extra income more than 100% of this for now, with implication of more to come, plus savings. His financial situation is quite good! He has some savings. I would suggest saving every bit of what he can for future emergencies. I would not suggest the expense ...