Search found 282 matches

by Miguelito
Thu Oct 24, 2019 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Spending Money - Surprising Low Fun Return
Replies: 58
Views: 6242

Re: Spending Money - Surprising Low Fun Return

I love my nice car. I love my nice house. I'd be even happier in a more expensive house and an even more expensive nice car(s). You can't get those sounds out of cheap cars. Nice clothes feel nicer than cheap ones. They also fit better. They also last longer. Nice tools work and feel better than che...
by Miguelito
Sun Oct 06, 2019 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tactics to pay off Mortgage Early??
Replies: 60
Views: 6313

Re: Tactics to pay off Mortgage Early??

I would start by asking you to define “early.” Are you aiming to pay it off many years ahead of schedule (which would require a strong commitment and a decent percentage of the mortgage payment worth of additional payment per month) or do you mean how can you sneak a bit more towards your payment wi...
by Miguelito
Tue Sep 17, 2019 10:40 am
Forum: Personal Finance (Not Investing)
Topic: How much house can we afford?
Replies: 15
Views: 1220

Re: How much house can we afford?

I won't get into the minutia, but it seems to me you have a robust retirement account and are diligent about contributing to them, so I would not worry about the long term too much. You also have enough to put down 20% on any house in the range you are considering. To me it's about cash flow. You me...
by Miguelito
Fri Sep 13, 2019 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11293

Re: Paying off mortgage early - am I thinking about this right?

The other thing I'd say on mortgage payoffs to consider is what % of your total annual expenditure is your mortgage P&I? If it's 25% I can see the desire to pay it off right away, but if it's 10%....or 15%? There are other big recurring expenses that won't go away: Federal tax, state income tax, lo...
by Miguelito
Thu Sep 12, 2019 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area budget for $350k family income
Replies: 94
Views: 7581

Re: Bay Area budget for $350k family income

Childcare + preschool - $24,000 per year (no way paying for babysitting - that will reduce eating out expenses and the obligation to party with Joneses too) $24,000 is accurate for 1 kid but certainly not 2. We were paying 3,300/month for two toddler/preschool-aged kids 8 years ago at a good place ...
by Miguelito
Thu Sep 12, 2019 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area budget for $350k family income
Replies: 94
Views: 7581

Re: Bay Area budget for $350k family income

Well said! I will add one more point to this. Just like there is a false sense at the lower end of the income ladder that the high income people (ie. making $350K+ .. top 2% by income for the US) fly by private jet, and have super cars and such. There is a false sense among the high income folks of...
by Miguelito
Thu Sep 12, 2019 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area budget for $350k family income
Replies: 94
Views: 7581

Re: Bay Area budget for $350k family income

No one should feel bad, it's just that reality is not the visions of wealth people making $50k envision when they think of $400k. I recall the days back when Obama wanted to institute higher taxes on those making over $250k, every article lead with a photo of a couple walking on a tarmac from a Rol...
by Miguelito
Thu Sep 12, 2019 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area budget for $350k family income
Replies: 94
Views: 7581

Re: Bay Area budget for $350k family income

That life is decidedly not middle class. Also, I don't see that budget being Bay Area-specific. It would apply to many places, particularly in the northeast. The point should be that $350k (or $500k) does not lead to a life of unrestrained luxury, which is what many in America believe. I see/hear th...
by Miguelito
Fri Sep 06, 2019 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: 90/10 LTV HELOC?
Replies: 11
Views: 900

Re: 90/10 LTV HELOC?

Do you want cash out? HELOC = Home Equity Line of Credit I'm confused by your statement that "rates are very low right now" as HELOCS are variable, and will increase as prime does. They are also significantly higher, after any promo rate, than a fixed rate mortgage loan would be, so doesn't make an...
by Miguelito
Fri Sep 06, 2019 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Savings Percentage Calculation
Replies: 51
Views: 3222

Re: Savings Percentage Calculation

Here is how I calculate my savings rate on a yearly basis: Salary + Bonus + 401k match + HSA match = income Savings = money added to 401k (including match), HSAs (including match), IRAs, taxable accounts, savings accounts Savings / Income = savings rate So putting example numbers to it: Salary = $1...
by Miguelito
Thu Sep 05, 2019 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11293

Re: Paying off mortgage early - am I thinking about this right?

Option 2 does not reduce your risk. What happens if the market drops? You can't rebalance from your home equity. If your AA is too aggressive, then adjust your AA. Fair enough, but we contribute a lot of money into the market every year. I don't have to use my house equity to rebalance. All I have ...
by Miguelito
Thu Sep 05, 2019 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Savings Percentage Calculation
Replies: 51
Views: 3222

Re: Savings Percentage Calculation

I don't really care about my actual savings rate. It is very high, but I do not aim for a specific target. The calculation used: Total Savings + 403B Match / Gross Income Some will argue against the match being included, but that is how I calculate it. I see you added the company match. I was curio...
by Miguelito
Wed Sep 04, 2019 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11293

Re: Paying off mortgage early - am I thinking about this right?

Basically what you are saying is that the remaining mortgage is relatively small compared to your net worth and at this point in your life you are OK with losing some potential growth on that small amount so that you can have an increase in cashflow. You are rich enough to forgo some small gains. I...
by Miguelito
Wed Sep 04, 2019 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11293

Re: Paying off mortgage early - am I thinking about this right?

No, you're not. A bond (or bond fund) is not the same as a house, regardless of whether the mortgage rate and the yield of the bond/fund are equivalent. This is a misconception. One is a cash equivalent, one is not. It's possible to lose a small amount of principal if one is forced to sell a bond/f...
by Miguelito
Wed Sep 04, 2019 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early - am I thinking about this right?
Replies: 127
Views: 11293

Re: Paying off mortgage early - am I thinking about this right?

Interesting and well-timed discussion. Not to humble brag, but I was just realizing that, hypothetically, if we were to liquidate all taxable accounts and throw in all savings, we could probably just barely pay off the mortgage balance. As a result, all sorts of thought exercises started coming to m...
by Miguelito
Thu Aug 22, 2019 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: What do people do with finances as they approach very old age?
Replies: 17
Views: 3090

What do people do with finances as they approach very old age?

The thought came to me as my mom spoke to me of yet another aunt of hers who died in her late 90's. In the case of that great aunt, she had no kids left as they all had passed earlier. That brought me to the thought of what you do financially when you approach very old age especially as we usually d...
by Miguelito
Mon Aug 19, 2019 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Increasing extra mortgage payments later in the term worth it?
Replies: 9
Views: 1179

Re: Increasing extra mortgage payments later in the term worth it?

I typically round up my payment to the nearest $50 or $100. I don;t notice it at all (admittedly, it's a big, 15-year loan payment) and I've already shaved one month.
by Miguelito
Mon Aug 19, 2019 7:20 am
Forum: Personal Finance (Not Investing)
Topic: HCOL savings rates
Replies: 43
Views: 3705

Re: HCOL savings rates

Not in CA, but curious as to what you mean by savings. All funds added to retirement/taxable investment/cash accounts? Do you also include principal, 529's, HSA's, and other?
by Miguelito
Fri Aug 09, 2019 7:38 am
Forum: Personal Investments
Topic: What to do with my money
Replies: 10
Views: 1492

Re: What to do with my money

Not to derail this thread any further, but while I am perfectly ok with altering the facts a bit for the sake of privacy, the extent of the difference in posted ages is enough to significantly change the advice one would receive. That makes very little sense unless the OP is posting on behalf of man...
by Miguelito
Wed Aug 07, 2019 6:33 pm
Forum: Investing - Theory, News & General
Topic: Staying the AA course even in market extremes?
Replies: 22
Views: 1476

Re: Staying the AA course even in market extremes?

Not near retirement - at least 15 years to go. Yes, I was working during the great recession. I was younger then and stayed at 100% stock throughout but all my investments then were through my 401k. Currently I am at about 85/15. Keep in mind that if stocks drop 30%, your AA will be out whack -- yo...
by Miguelito
Wed Aug 07, 2019 2:18 pm
Forum: Investing - Theory, News & General
Topic: Staying the AA course even in market extremes?
Replies: 22
Views: 1476

Re: Staying the AA course even in market extremes?

So stick with 85/15. If you're comfortable with it. Can you afford to lose 40-45% of your portfolio's value? Has this happened to you? Yet? My portfolio dropped over 40% during the great recession. I would not be nearly as ok with it this time around since I am 11 years older, but I do have 15% pro...
by Miguelito
Wed Aug 07, 2019 2:16 pm
Forum: Investing - Theory, News & General
Topic: Staying the AA course even in market extremes?
Replies: 22
Views: 1476

Re: Staying the AA course even in market extremes?

Your AA should reflect your long-term need, ability, and willingness to take risk. That does not change based on short term market conditions. Understood, but this is not about short-term market conditions. Hypothetically, let's say over the next 18 months the market loses 25% and I stayed the cour...
by Miguelito
Wed Aug 07, 2019 2:02 pm
Forum: Investing - Theory, News & General
Topic: Staying the AA course even in market extremes?
Replies: 22
Views: 1476

Re: Staying the AA course even in market extremes?

How old are you? Are you near retirement? Have you ever suffered a bear market (1987, 2000-2002, 2008)? What's your current AA? Not near retirement - at least 15 years to go. Yes, I was working during the great recession. I was younger then and stayed at 100% stock throughout but all my investments...
by Miguelito
Wed Aug 07, 2019 1:17 pm
Forum: Investing - Theory, News & General
Topic: Staying the AA course even in market extremes?
Replies: 22
Views: 1476

Staying the AA course even in market extremes?

I understand that following the course for a given AA and doing periodic rebalancing should take care of all fluctuations. But what about after the market has had a prolonged loss or gain? Is it really market timing to go to a (far) more aggressive AA if the market has gone down 30%? You could make ...
by Miguelito
Tue Aug 06, 2019 8:19 am
Forum: Personal Investments
Topic: Buy During This Dip?
Replies: 99
Views: 13088

Re: Buy During This Dip?

I am always hesitant to buy at market highs. I had some money to invest a couple of weeks ago, but decided to wait a bit from market highs and then until after our vacation. We got back this past weekend and I happened to get a ~6% discount by waiting.I only invested 1/3 of the funds I had to invest...
by Miguelito
Sat Jul 27, 2019 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Dependent care FSA
Replies: 8
Views: 631

Re: Dependent care FSA

You cannot use FSA for a nanny off the books. To go on the books, you need to become a "household employer." You need to get worker's comp and withhold FICA (including your portion as an employer). You don't have to withhold Federal & state tax, but need to explain clearly to your employee the he/sh...
by Miguelito
Mon Jul 22, 2019 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes?
Replies: 85
Views: 9538

Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

If you make very bad financial mistakes often enough, nothing will save you from financial ruin. But within reason, assuming that when you say "save" you mean put the money away in a low-cost, well-allocated portfolio, then sure, many of the things above will help. But many of them really just boil ...
by Miguelito
Mon Jul 22, 2019 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Cost of children
Replies: 49
Views: 2146

Re: Cost of children

Ignoring all the drama above, and speaking strictly about child care, our kids are late in their elementary school years in a HCOL area. When they were young (toddler age), costs were ~$40k/year for both. It got a little better as they approached kindergarten. Since then, the cost of camps (nothing ...
by Miguelito
Fri Jul 19, 2019 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Small over-contribution to 401k. Can I do nothing about it?
Replies: 2
Views: 484

Re: Small over-contribution to 401k. Can I do nothing about it?

Thanks. Frankly I do not recall what Turbo Tax did, but I think it claimed the full 19,050. I'll check tonight at home.
by Miguelito
Thu Jul 18, 2019 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Small over-contribution to 401k. Can I do nothing about it?
Replies: 2
Views: 484

Small over-contribution to 401k. Can I do nothing about it?

I switched jobs last year. Fully aware of the fact that I could over-contribute to my 401k if I did not watch it, I planned and adjusted my percentage contributions with my new employer so that I would be at or slightly under the 19k limit for the year between both employers. Well, despite assurance...
by Miguelito
Tue Jul 02, 2019 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Would we regret buying a 2nd home?
Replies: 90
Views: 9058

Re: Would we regret buying a 2nd home?

I am firmly in the camp of not wanting a second home due to maintenance. I am a skilled and meticulous DIYer and I know I would not stop worrying about it. Even investing in cameras and smart water shut-off devices, etc. it would still drive me nuts. That said, it's still annoying to look for availa...
by Miguelito
Thu Jun 13, 2019 6:32 pm
Forum: Personal Investments
Topic: Purchasing home with less than 20% downpayment experiences?
Replies: 52
Views: 3676

Re: Purchasing home with less than 20% downpayment experiences?

We bought our 1st home with a 10/10/80 loan (never paid PMI). We only had 5% of our own and borrowed from family for the other 5%. But it was a good size home and we were starting out our good careers and had just married. Within one year we paid back the family loan and in the next 3 years paid bac...
by Miguelito
Mon May 20, 2019 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - What am I missing in the News Stories
Replies: 223
Views: 15595

Re: FIRE - What am I missing in the News Stories

If you were 100% retired now, you could be 100% on vacation. It is an easier problem than figuring out how to get employed. Sure, but I don't know that I would want to be 100% on vacation indefinitely. That's how I feel right now at least. I probably wouldn’t call it vacation. It’s more like a cons...
by Miguelito
Mon May 20, 2019 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE - What am I missing in the News Stories
Replies: 223
Views: 15595

Re: FIRE - What am I missing in the News Stories

flyingaway wrote:
Sun May 19, 2019 7:36 pm
If you were 100% retired now, you could be 100% on vacation. It is an easier problem than figuring out how to get employed.
Sure, but I don't know that I would want to be 100% on vacation indefinitely. That's how I feel right now at least.
by Miguelito
Sun May 19, 2019 11:19 am
Forum: Personal Finance (Not Investing)
Topic: FIRE - What am I missing in the News Stories
Replies: 223
Views: 15595

Re: FIRE - What am I missing in the News Stories

I agree with all the comments. In addition, now in my early 40's, I couldn't fathom not working in my field. I'd love longer vacations, but I dunno what I'd do with my time if I 100% retired now. I have trouble imagining being retired at 50 even if I could do so comfortably. In large part it's becau...
by Miguelito
Fri May 17, 2019 3:37 pm
Forum: Personal Investments
Topic: Using 401k Loans to increase contribution
Replies: 17
Views: 1196

Re: Using 401k Loans to increase contribution

Also, the more obvious impact is that you just pulled $50k from the market.

Frankly, this not something I would recommend.
by Miguelito
Thu May 16, 2019 4:46 pm
Forum: Personal Investments
Topic: Thoughts on business purchase
Replies: 27
Views: 1562

Re: Thoughts on business purchase

Thanks to all for the feedback. At this point very little is known. Asking price is closer to 3.6M. I just found it ridiculous out of hand and assume the most that would be paid would be 3M. They allege the owners have very little involvement, but I also assume that is not true. It seems the owners/...
by Miguelito
Thu May 16, 2019 11:07 am
Forum: Personal Investments
Topic: Thoughts on business purchase
Replies: 27
Views: 1562

Thoughts on business purchase

Assume a simplified scenario where a couple, in their early 40's and projecting to have a comfortable retirement by 60, makes $300k a year combined, each spouse making $150k. They are considering buying a business for a price of $3M. The business makes $550k a year. They have 25% ($750k) for a down ...
by Miguelito
Sun May 12, 2019 6:09 am
Forum: Personal Finance (Not Investing)
Topic: Continue working for benefit of adult children or retiring earlier?
Replies: 87
Views: 6893

Re: Continue working for benefit of adult children or retiring earlier?

RadAudit wrote:
Sat May 11, 2019 8:35 pm
OP, glad we could provide answers for your original concerns. :happy
This discussion is exactly what I was hoping for. I wanted to see people’s point of view, especially from a population that, for the most part, is educated and fiscally responsible and who tend to focus on early retirement.
by Miguelito
Fri May 10, 2019 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Continue working for benefit of adult children or retiring earlier?
Replies: 87
Views: 6893

Re: Continue working for benefit of adult children or retiring earlier?

Just to be clear, our kids are approaching middle school age and we are in our 40's. The question was not based on present conditions. But we do have good jobs, and projections point to us being able to retire in our 50's if it came to that. But given our non-affluent backgrounds, it seems wrong to ...
by Miguelito
Fri May 10, 2019 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Continue working for benefit of adult children or retiring earlier?
Replies: 87
Views: 6893

Continue working for benefit of adult children or retiring earlier?

I know many aim for hitting their number as quickly as possible. I'm not necessarily talking about FIRE, just being able to retire sooner than SSA implies/expects. The question is, assuming you could retire earlier but you don't hate your job and are able to continue to do it and generate high incom...
by Miguelito
Wed May 08, 2019 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Walk away from my auto lease?
Replies: 154
Views: 8544

Re: Walk away from my auto lease?

I hate to pass judgement on situations without knowing all the details, buy as others have said, this doesn't pass the smell test. The fact that it appears it's a manual transmission where the clutch is burned out (at 5k miles!) but the OP is talking about how the transmission needs to be replaced j...
by Miguelito
Tue May 07, 2019 2:50 pm
Forum: Personal Investments
Topic: Voya financial - Why would anyone use them?
Replies: 40
Views: 4504

Re: Voya financial - WHY WOULD ANYONE USE THEM?

While with my last employer (large company, as in tens of thousands of employees), over the years we had 3 financial institutions handle our 401k. Voya (formerly ING) was the 2nd to handle our 401k. The fund selection and fees never changed despite who was handling the 401k. I didn't love VOYA's too...
by Miguelito
Thu May 02, 2019 5:24 pm
Forum: Personal Investments
Topic: Failed to report Backdoor Roth since 2003 nor make conversion
Replies: 10
Views: 1349

Re: Failed to report Backdoor Roth since 2003 nor make conversion

As an FYI, the "Backdoor Roth" was not a thing until 2010. By that I mean that in 2006, if I recall correctly, they passed a law such that starting in 2010 the income limit would be removed on Roth conversions. I'm a bit confused as to why you would have been contributing to a non-deductible IRA sin...
by Miguelito
Thu May 02, 2019 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 100
Views: 14374

Re: Pay off a 30 year mortgage in 15 years? The cost of flexibility

When we bought our current home (2012), given that the old one had not yet sold, we had to take on a fixed 4.25% 30-year loan on the new house. A few months later, a couple of months after the old house sold, we saw that we could get a 15-year loan at fixed 2.99%. Despite paying $4k to refinance, we...
by Miguelito
Wed May 01, 2019 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Unable to create account on ssa.gov
Replies: 15
Views: 1352

Re: Unable to create account on ssa.gov

I tried to set up a Social Security account online, and it wouldn't let me. I called their customer service representative who told me that the culprit was the identity protection program that I had signed up for after the OPM data breach. He said that the only way to get it fixed would be to go in...
by Miguelito
Mon Apr 22, 2019 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Housing: "Super Savers" vs. the "Rest"...
Replies: 85
Views: 10027

Re: Housing: "Super Savers" vs. the "Rest"...

One question I have that is not trivial is that based on taxes not being shown, it would seem these numbers are after-tax (Fed+state+FICA). If so, would the full, deductible 401k contribution be included in that savings rate? Same for the mortgage cost (interest)? Similarly, a 15 vs. 30-year mortgag...
by Miguelito
Sun Apr 21, 2019 11:09 pm
Forum: Personal Consumer Issues
Topic: Can one own a Porsche 911 that is not a money pit?
Replies: 78
Views: 10055

Re: Can one own a Porsche 911 that is not a money pit?

Porsche sports cars are surprisingly reliable. If you buy one a few years old, take care of it and not put many miles, resale should be quite respectable, making overall ownership costs quite reasonable. But if you plan to go to the dealer for everything, it’s going to cost you.
by Miguelito
Fri Apr 19, 2019 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 524
Views: 43008

Re: Mr. Money Mustache, SWR, and equity allocation

Wow, there are some truly paranoid, apocalyptic scenarios being thrown around. You can't protect from Skynet becoming self-aware, or some killer. mutant virus wiping us all out, or world-wide nuclear war, etc. If those are realistic scenarios to anyone, then why plan at all? Invest in a bunker, gold...