Search found 1487 matches

by Admiral
Wed Jan 16, 2019 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford a 50k car? If so, whats the best way to do it?
Replies: 48
Views: 1831

Re: Can I afford a 50k car? If so, whats the best way to do it?

Here's a 1968 Chevrolet Chevelle SS 396 Convertible, asking price is $25k. There, I just saved you $25k! Plus: Convertible. Hello! :D Shop around! https://bringatrailer.com/listing/1968-chevrolet-chevelle-ss-396-3/ That car did not hit the reserve price and thus did not sell. Bring A Trailer is a h...
by Admiral
Wed Jan 16, 2019 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford a 50k car? If so, whats the best way to do it?
Replies: 48
Views: 1831

Re: Can I afford a 50k car? If so, whats the best way to do it?

Ask yourself this. If your parents were alive and you asked them if they considered spending $50k on a 67 Chevy squandering an inheritance, what would their response be? If you think they would've said yes, then I would not buy the car. If you think they would've told you, "whatever makes you happy...
by Admiral
Wed Jan 16, 2019 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford a 50k car? If so, whats the best way to do it?
Replies: 48
Views: 1831

Re: Can I afford a 50k car? If so, whats the best way to do it?

Here's a 1968 Chevrolet Chevelle SS 396 Convertible, asking price is $25k.

There, I just saved you $25k!

Plus: Convertible. Hello!

:D

Shop around!

https://bringatrailer.com/listing/1968- ... -ss-396-3/
by Admiral
Wed Jan 16, 2019 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage: 15 vs 30 year
Replies: 55
Views: 3573

Re: Mortgage: 15 vs 30 year

I would opt for the 30 year mortgage. I am a retired mortgage banker, and saw many folks struggle with the higher payments of the 15 year mortgage. The struggles usually begin with job loss or income reductions during a recession, or other family difficulty. Refinancing to 30 years can often be dif...
by Admiral
Wed Jan 16, 2019 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage: 15 vs 30 year
Replies: 55
Views: 3573

Re: Mortgage: 15 vs 30 year

I would opt for the 30 year mortgage. I am a retired mortgage banker, and saw many folks struggle with the higher payments of the 15 year mortgage. The struggles usually begin with job loss or income reductions during a recession, or other family difficulty. Refinancing to 30 years can often be dif...
by Admiral
Sun Jan 13, 2019 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: VWIAX [Vanguard Wellesley Income Fund]
Replies: 9
Views: 1011

Re: VWIAX [Vanguard Wellesley Income Fund]

Hey all, My wife (35yrs) and I will retire in about 5yrs or so. We will have about $72,000/yr in Social Security and retirement/pension checks. Here is our plan. Going to move all to VWIAX and will have at least 8,000 shares. Below is the Dividend/Capital Gain disbributions for 2018. Planning on su...
by Admiral
Sun Jan 13, 2019 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Dropping collision insurance on auto policy for older car?
Replies: 25
Views: 2095

Re: Dropping collision insurance on auto policy for older car?

3 points that I haven’t seen made yet; one financial, and two intangible. Financial: 1) Your loss potential is not just the value of the vehicle. It also includes towing and extraction charges following a wreck, plus any storage charges you rack up. Even if you carry AAA, that doesn’t help when it’...
by Admiral
Sat Jan 12, 2019 8:21 am
Forum: Investing - Help with Personal Investments
Topic: When you exceed the Roth Income Limits - Options?
Replies: 5
Views: 713

Re: When you exceed the Roth Income Limits - Options?

I rolled a SEP IRA into my employer's 403b, which allowed me to do backdoor conversions. You can check with your employer plan provider (mine is Vanguard) to see if they will accept a rollover.
by Admiral
Fri Jan 11, 2019 10:52 am
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6043

Re: Building Wealth Through Home Equity--Myth or Reality?

We seem to go round and round (and round) on this topic all the time: Is a home an asset or a liability? Is buying better than renting? And the answer is always the same: it depends. Just like stocks, it can be a good investment or a bad one, depending on the circumstances. But several things are no...
by Admiral
Thu Jan 10, 2019 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6043

Re: Building Wealth Through Home Equity--Myth or Reality?

The building wealth through home equity trope isn't based on property appreciation at all, I'm afraid. The idea is one borrows money to buy the dwelling, then gradually pays it back using a self-amortizing schedule. The loan and the resulting home are equivalent. Borrow $80,000 and put down $20,000...
by Admiral
Thu Jan 10, 2019 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6043

Re: Building Wealth Through Home Equity--Myth or Reality?

For MOST people, it's true, because MOST people save little to nothing. For Bh's and others, it may or may not be true. There's this myth that all these people paying cheap rent are investing their massive housing savings in stocks. That is debateable to doubtful in (I would guess) 95% of the popula...
by Admiral
Thu Jan 10, 2019 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 76
Views: 7131

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

I’d guess that the overwhelming majority of people who take a 30 year mortgage couldn’t qualified to buy the same property with a shorter-term loan. But that isn’t the issue raised in the thread... If I was concerned about flexibility, I think a cost of less than $600/year (in nominal dollars over ...
by Admiral
Thu Jan 10, 2019 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 76
Views: 7131

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

I’d guess that the overwhelming majority of people who take a 30 year mortgage couldn’t qualified to buy the same property with a shorter-term loan. But that isn’t the issue raised in the thread... If I was concerned about flexibility, I think a cost of less than $600/year (in nominal dollars over ...
by Admiral
Thu Jan 10, 2019 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 76
Views: 7131

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

I started out in 2009 with 30 year mortgage at 4.5% after having paid 1 point to go from 4.75%. I was just getting married and I was scared of what I could afford. After having accumulated some emergency funds, with 2nd kid on the way, I figured I needed to get rid of the mortgage so I can pay for ...
by Admiral
Thu Jan 10, 2019 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off a 30 year mortgage in 15 years? The cost of flexibility
Replies: 76
Views: 7131

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

Your analysis is fine but what it's missing is that rates move constantly. Sure, one can choose 30 vs 15 when buying, and the rates will be what they are, currently 1% lower (more or less). But the real key to saving money is to get the 15 when rates have dropped substantially (that is, refinance). ...
by Admiral
Thu Jan 10, 2019 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Mint.com
Replies: 10
Views: 1521

Re: Mint.com

I know people like Mint and Personal Capital but I would never (and don't ever) give the passwords to my financial life to Mint or any other third party site. I think it's a risk not worth taking. If you're doing everything manually anyway then why use it? For me, the time spent doing things manuall...
by Admiral
Wed Jan 09, 2019 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Recast mortgage?
Replies: 28
Views: 2736

Re: Recast mortgage?

I did not phrase this well and flubbed a cell in my analysis. But the bottom line is that if your recast is small, you could potentially end up with a higher mortgage balance than you otherwise would if you choose to sell the home before the mortgage pays off entirely. In our case that recast amoun...
by Admiral
Wed Jan 09, 2019 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Recast mortgage?
Replies: 28
Views: 2736

Re: Recast mortgage?

Took a 360k 30yr @ 3.875 in Feb of 2016 (MV of house conservatively $750k). Monthly p&i $1,692. Paid mortgage down to $300k in a little over 2years. By doing this - and all else equal - I have pulled fwd the term 5years or so. Got letter in mail from the lender today asking if I wanted to recast - ...
by Admiral
Tue Jan 08, 2019 7:36 am
Forum: Personal Finance (Not Investing)
Topic: Should I pay more than the minium on my mortgage?
Replies: 39
Views: 5182

Re: Should I pay more than the minium on my mortgage?

At 10%, you are putting away around $5,000 into 401(k) a year, far less than the current maximum of $19,000. I would increase the 401(k) contribution before paying more on mortgage. Tax advantaged space is too valuable to miss. Paying more on mortgage does not increase liquidity in the short run. I...
by Admiral
Wed Jan 02, 2019 9:06 am
Forum: Investing - Help with Personal Investments
Topic: Drop Stocks Altogether: Age Dependent Decision?
Replies: 23
Views: 1577

Re: Drop Stocks Altogether: Age Dependent Decision?

I rebalance once a year at the beginning of January. While getting about doing this, I started thinking that perhaps I should change my allocation and drop stocks altogether. I'm more than 75 years old. My life expectancy is probably 10 years or so. Should there be, for example, a long sustained be...
by Admiral
Tue Jan 01, 2019 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Home buying advice
Replies: 21
Views: 1807

Re: Home buying advice

I really appreciate all the responses.Looks like we have a lot of catch up to do with retirement savings. We will plan to increase our retirement savings to 15% going forward. Can we afford a ~350k home or is it still a stretch? Thanks! Happy new year! My answer is "Not really." Our policy--and we ...
by Admiral
Mon Dec 31, 2018 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Home buying advice
Replies: 21
Views: 1807

Re: Home buying advice

I am not as conservative as a lot on here. All I can say is in similar circumstances we did so. And don't regret it. Our piti was a little lower not sure why as we are in a similar no income tax state but guessing lower int rate and lower taxes. We paid pmi and only put 10% down. Refied about 18 mo...
by Admiral
Sun Dec 30, 2018 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Home buying advice
Replies: 21
Views: 1807

Re: Home buying advice

It would be a stretch, but I don't like the percentage of income as a metric since many costs like food, medicine, gas, health insurance, etc don't increase as your income increases. I am usually pretty conservative and the question is if $400K is too much, then what is a reasonable amount for your...
by Admiral
Sun Dec 30, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Home buying advice
Replies: 21
Views: 1807

Re: Home buying advice

Thanks all. #Admiral : PITI is about 40% of take home pay( after 5% 401k contribution and other deductions).Is that considered high? IMO, yes. It is too high. If this was a VHCOL area, where people routinely pay 50% or more of takehome, then it might be acceptable. Your area does not qualify, if th...
by Admiral
Sun Dec 30, 2018 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Home buying advice
Replies: 21
Views: 1807

Re: Home buying advice

Here's how I see it. You should be maxing out retirement accounts. But, let's say you're not, but you are saving 15% of gross, so that would be 18k. So 120k-18k= 102k Let's say taxes are ballpark 15% after deductions, so that leaves you with 86.7k. Call it 87k. 87k/12 = $7250 net per month $2600/$72...
by Admiral
Thu Dec 27, 2018 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Get greedy when others are fearful?
Replies: 14
Views: 1965

Re: Get greedy when others are fearful?

I believe Warren Buffett said the time to be fearful is when others are greedy and the time to be greedy is when others are fearful. Does anyone follow this? And if so, how? I’ve been age - 10 = fixed for a while but feel I could be more aggressive. I’m wondering if I should switch to age - 20 if t...
by Admiral
Thu Dec 27, 2018 9:47 am
Forum: Investing - Help with Personal Investments
Topic: This is why you should not time the market
Replies: 38
Views: 5919

Re: This is why you should not time the market

Here's what happened if you ONLY put new money in at the peaks, but left all invested money in the markets: https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/ Excerpt: Bob is the world’s worst market timer. What follows is Bob’s tale of terrible timing of his stock purchases. Bob be...
by Admiral
Wed Dec 26, 2018 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Automating expense tracking
Replies: 37
Views: 2585

Re: Automating expense tracking

Hi all, We have 10 credit cards and a checking account between my wife and I, all setup with automatic payments in full and automatic bill pays for various expenses (utilities, daycare etc.). For the past several years, we have meticulously tracked our expenses by spending an hour a week to ensure ...
by Admiral
Sun Dec 23, 2018 2:28 pm
Forum: Investing - Theory, News & General
Topic: Equities % v. Total Assets at Risk
Replies: 29
Views: 2816

Re: Are you a true believer?

... Using equities (and at-risk business investments) as the numerator and using all net assets within or expected to be within your or your spouses's control during your life including capitalization of income streams (pensions, SSA, salary/bonus/commissions/royalties) as the denominator , I wonde...
by Admiral
Sun Dec 23, 2018 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Worth it to refinance in my situation?
Replies: 13
Views: 997

Re: Worth it to refinance in my situation?

Your monthly payment will increase by $500, which is $6000 per year. Coincidentally it is the exact limit of a Roth IRA. So by choosing to pull the trigger, you can say your Roth IRA is earning a tax free 4.5% per year. Taxable equivalent is about 6% per year. Quite stock market like returns, but i...
by Admiral
Sat Dec 22, 2018 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 182
Views: 16998

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

I have a pretty substantial frugal streak. Mostly because I don't want a lot of things. But some stuff I'll pay for that MMM and such wouldn't. And that's okay. Often the frugality just makes me feel good, not making a big difference in the bottom line. Earlier in the week, I went by CVS to pick up...
by Admiral
Sat Dec 22, 2018 9:18 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 10061
Views: 1781756

Re: U.S. stocks in free fall

Human nature never fails to amaze me. When the market is going up, everyone is gung-ho. When it’s going down, everyone is in a panic like the world is ending. Seriously, you all preach “stay the course”? Yet freak out? Who the hell cares... if you’re down big you shouldn’t be in equities. Go buy bo...
by Admiral
Wed Dec 19, 2018 12:49 pm
Forum: Personal Consumer Issues
Topic: Math: How much would you spend to repair this car?
Replies: 53
Views: 2367

Re: Math: How much would you spend to repair this car?

A new hood alone is going to be $500, plus paint. It's done.
by Admiral
Tue Dec 18, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K?
Replies: 13
Views: 525

Re: Traditional 401K vs Roth 401K?

There is a Bogleheads wiki article on the topic at https://www.bogleheads.org/wiki/Traditional_versus_Roth If you are currently a high earner, it probably makes more sense to put all your 401k savings in tax-deferred. Once your MAGI exceeds $200k (for married) then you no longer can take a deductio...
by Admiral
Tue Dec 18, 2018 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K?
Replies: 13
Views: 525

Re: Traditional 401K vs Roth 401K?

Traditional until you hit $1m in pre-tax savings at least, unless you expect large pension. I am interested in this topic as well. What would you consider a large pension? If expecting one, what is your advice? 25k or more. The point is you need to combine all your income streams at age 70.5 and se...
by Admiral
Tue Dec 18, 2018 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Mr. Money Mustache, SWR, and equity allocation
Replies: 182
Views: 16998

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

I was reading an article by Mr. Money Mustache, with whom I'm very familiar, and was curious what Bogleheads think of some of his assumptions and recommendations. The general gist is that one could stop working today, forever, regardless of age and regardless of which account types the money is loc...
by Admiral
Tue Dec 18, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K?
Replies: 13
Views: 525

Re: Traditional 401K vs Roth 401K?

Traditional until you hit $1m in pre-tax savings at least, unless you expect large pension.
by Admiral
Mon Dec 17, 2018 3:10 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 10061
Views: 1781756

Re: U.S. stocks in free fall

How are you guys feeling? I am considering lightening up on equities - this may be going much much lower. A core principle of my investing plan is that I have no talent for market timing. Why do you think you do? Something is different this time. I can't quite put my finger on it. This one seems re...
by Admiral
Mon Dec 17, 2018 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-paying mortgage only in early years
Replies: 51
Views: 3551

Re: Pre-paying mortgage only in early years

Willthrill81, I don’t think paying off a low interest rate mortgage quickly is a bad idea. I think it is sub optimal. But that can only be known in hindsight. If I had to guess which one would have him having more money in 24 years, I would wager paying monthly and investing the difference versus p...
by Admiral
Mon Dec 17, 2018 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Pre-paying mortgage only in early years
Replies: 51
Views: 3551

Re: Pre-paying mortgage only in early years

I have searched for this topic and haven't found it some I'm probably missing some obvious reason why it doesn't make sense. But given the amortization schedule of a mortgage would there be an argument to pre-pay heavily for the first 50-75% of the life of the mortgage when 50-60% of your payments ...
by Admiral
Fri Dec 14, 2018 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Valuing pension when considering alternate job
Replies: 6
Views: 466

Re: Valuing pension when considering alternate job

It must be an unusual job with the government (doctor?) since the civilian pay scale typically tops out at under $160,000. And a pension currently gives you 1% per year of service times your avg high 3 yr salary. 2,880 yearly increase in pension implies a salary of $288,000. I'm not sure if this we...
by Admiral
Fri Dec 14, 2018 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Valuing pension when considering alternate job
Replies: 6
Views: 466

Re: Valuing pension when considering alternate job

Cruise wrote:
Fri Dec 14, 2018 1:50 pm
How did you get to $1.8 M?
$72,000 per year x 25 years = 1.8m
by Admiral
Fri Dec 14, 2018 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Valuing pension when considering alternate job
Replies: 6
Views: 466

Valuing pension when considering alternate job

MY SO has a vested pension (gov't). The current rate of accrual comes to an additional $2880 per year for each year worked. So, for example, assuming salary is static for 10 more years, that would be an additional $28,800 per year for life, beginning at age 60. (There is a survivor benefit.) In thin...
by Admiral
Thu Dec 13, 2018 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation when cost of living expenses covered
Replies: 23
Views: 1278

Re: Allocation when cost of living expenses covered

If one already has the basics of life covered (save for occasionally lumpy expenses) then this begs the question: What is my savings/portfolio for? What is its purpose? Why did I save so much? Only you know the answer. Many people might say they want to leave a large legacy. Others might all of a su...
by Admiral
Thu Dec 13, 2018 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: What percentage of your net worth is your home equity?
Replies: 309
Views: 22066

Re: What percentage of your net worth is your home equity?

This thread has jumped the shark. Don’t argue with the fool. He’s wrong. You all know he’s wrong. Don’t engage. You won’t win. Seriously. And what's the deal with the whole "don't buy unless the PITI is less than your rent" thing? Our rent was $400/month. For a dark basement with no kitchen. And th...
by Admiral
Thu Dec 13, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: What percentage of your net worth is your home equity?
Replies: 309
Views: 22066

Re: What percentage of your net worth is your home equity?

A) <<Mortgage = x%expense and x% equity. >> This is your point of view. And, folks with this point of view will buy a house with a mortgage greater than rent. KlangFool Say what? Explain to me how a mortgage payment (one that is not interest only) does not fit this description? When you pay off pri...
by Admiral
Thu Dec 13, 2018 10:41 am
Forum: Investing - Help with Personal Investments
Topic: [Bond returns are currently negative. Why should I buy bonds now?]
Replies: 19
Views: 2565

Re: [Bond returns are currently negative. Why should I buy bonds now?]

I recently sold my Total Bond holdings to harvest a tax loss. While my outlook is say, 10 years, I can't justify putting money in Total Bond today. Why? Because I have every expectation that for the short term it will continue to lose share value. So, while the SEC yield beats CDs or Money Markets,...
by Admiral
Thu Dec 13, 2018 10:36 am
Forum: Personal Finance (Not Investing)
Topic: What percentage of your net worth is your home equity?
Replies: 309
Views: 22066

Re: What percentage of your net worth is your home equity?

Folks, <<What percentage of your net worth is your home equity?>> This is a meaningless question. The only usefulness of this question is if a person counts the home equity, the person has too much house. Let's go through some examples. 1) Fully paid 400K house. Net worth excluding the house = 1 mi...
by Admiral
Thu Dec 13, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: [Bond returns are currently negative. Why should I buy bonds now?]
Replies: 19
Views: 2565

Re: [Bond returns are currently negative. Why should I buy bonds now?]

[Moved into a separate post from: Bond alternative to balance portfolio? --admin LadyGeek] I'm an EXTREME novice at investing and trying to learn as much as I can right now. This is something that I can't seem to make sense of. Can someone please have the patience to explain to me why you would buy...
by Admiral
Wed Dec 12, 2018 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Does it ever make sense to invest in ROTH IRA before maxing our 401K?
Replies: 59
Views: 4512

Re: Does it ever make sense to invest in ROTH IRA before maxing our 401K?

What I mean by "if you want to go short term or if you want to go long term" is: Short term: If a person feels that a tax deduction for this year is very important to them, they are thinking in the short term. The tax deduction is more important to them now than than having tax free income and no R...