Search found 2962 matches

by Admiral
Mon Sep 28, 2020 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning - Mid 40s
Replies: 31
Views: 3101

Re: Retirement Planning - Mid 40s

IMO, no. Kids get more expensive as they get older. (Let me tell you about my $1,000/mo grocery bill: two teens). Have you factored in the penalties you'll face for tapping retirement accounts early? At $60k per year your taxable account will run dry long before you can access your retirement accoun...
by Admiral
Sat Sep 26, 2020 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Avoiding Estate Tax
Replies: 39
Views: 2989

Re: Avoiding Estate Tax

Hi, I'm curious as to what some of you may be doing to reduce your estate or avoid estate tax. My parents estate is over the threshold and so they have talked to some qualified people who told them to create an irrevocable trust fund and state in writing that it, and anything a part of it, is not a...
by Admiral
Sat Sep 26, 2020 7:54 am
Forum: Personal Finance (Not Investing)
Topic: Avoiding Estate Tax
Replies: 39
Views: 2989

Re: Avoiding Estate Tax

Hi, I'm curious as to what some of you may be doing to reduce your estate or avoid estate tax. My parents estate is over the threshold and so they have talked to some qualified people who told them to create an irrevocable trust fund and state in writing that it, and anything a part of it, is not a...
by Admiral
Fri Sep 25, 2020 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Gazillionth mortgage pay off question
Replies: 57
Views: 4186

Re: Gazillionth mortgage pay off question

Do you find the mortgage to be a burden? If not, I would add to taxable. Just my two cents. Not from a cost perspective, but from a mental- what if I lose my job or get sick perspective then yes. If you are losing sleep over it, pay off the mortgage. Otherwise, don't. You asked the same question a ...
by Admiral
Fri Sep 25, 2020 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Gazillionth mortgage pay off question
Replies: 57
Views: 4186

Re: Gazillionth mortgage pay off question

Here is the deal in bullets for easier viewing: 1.No debt besides mortgage 2.Roth MAXED VTSAX(mine and wifes) 3. 401k MAXED VTSAX (mine and wifes) 4. 9 months in expenses saved 5. Started a taxable...currently of 5 shares of VOO 6. Current mortgage $123,533.75 14years and 11months left at 2.9% Do I...
by Admiral
Thu Sep 24, 2020 6:39 am
Forum: Personal Finance (Not Investing)
Topic: Should we pay our 2.75% interest mortgage sooner?
Replies: 23
Views: 3630

Re: Should we pay our 2.75% interest mortgage sooner?

Most of the arguments for and against involve constrained thinking. But your whole financial picture is much more bigger than that. For example: We got 30-yr mortgage on our new home at 2.875% earlier this year. We invested proceeds from sale of previous home in the market. Already it has gained en...
by Admiral
Wed Sep 23, 2020 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Should we pay our 2.75% interest mortgage sooner?
Replies: 23
Views: 3630

Re: Should we pay our 2.75% interest mortgage sooner?

We paid off our house in our 40’s. I didn’t care what the interest rate was. I didn’t like owing anyone any money. Note that we were maxing out our 401k’s and IRA’s as well. But it sounds as you are doing that also. I personally feel the inner peace of not owing anyone for anything trumps any sort ...
by Admiral
Wed Sep 23, 2020 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Should we pay our 2.75% interest mortgage sooner?
Replies: 23
Views: 3630

Re: Should we pay our 2.75% interest mortgage sooner?

If the interest to principal ratio is that high, I suspect this is a 30 year note. I suggest a refi to a 15 year. At least then, more of your payment will go to principal.
by Admiral
Mon Sep 21, 2020 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Retiree Portfolio Model
Replies: 964
Views: 310779

Re: Retiree Portfolio Model

in my opinion, sure would be great if someone might create a tutorial for youtube(seems it would be fairly trivial, some folks need visuals), that understands the various small points, some of it, I eventually can sort out, but much it seems opaque. eg I was just looking at again the Roth Conversio...
by Admiral
Mon Sep 21, 2020 6:54 am
Forum: Personal Finance (Not Investing)
Topic: The conundrum of Pennsylvania 401K contributors who are in no way "married" to the state for retirement. What to do?
Replies: 24
Views: 2698

Re: The conundrum of Pennsylvania 401K contributors who are in no way "married" to the state for retirement. What to do?

Taxed going in, untaxed coming out, and pension income is also untaxed. Seems like not such a bad deal to me (I live in PA). I don't plan to choose where I live in retirement based on the state tax rate (though I realize others will). I will choose based on how close I am to family etc. Not sure how...
by Admiral
Sun Sep 20, 2020 2:45 pm
Forum: Personal Investments
Topic: Lump sum mortgage payoff at 3.75% vs. invest
Replies: 15
Views: 1022

Re: Lump sum mortgage payoff at 3.75% vs. invest

Your mort rate is v. high compared to current rates. So, I would refi ASAP to a 15 yr at low or no cost. Then, re-evaluate. No way would I sink the money into current mortgage. I would also do backdoor Roth yearly to reduce taxable account to just what you need as an emergency fund. Might as well ea...
by Admiral
Thu Sep 17, 2020 2:39 pm
Forum: Personal Investments
Topic: Decision time...to lump sum or not to lump sum
Replies: 24
Views: 2195

Re: Decision time...to lump sum or not to lump sum

Have you used Retiree Portfolio Modeler? It can be very helpful with these sorts of decisions (though of course it can't predict when you will die, you'll need to do that). Does the pension have a survivor benefit? Esp since your spouse is younger this can affect your decision. Likely you will be fi...
by Admiral
Thu Sep 17, 2020 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Discretionary spending strategy
Replies: 21
Views: 1821

Re: Discretionary spending strategy

Once all the fun spending--and I find it interesting that you don't include vacations and eating out in this category, which clearly falls under discretionary for most BHs--starts eating into your savings rate, that's the time to hit the spreadsheet and juggle the numbers. We do actually consider v...
by Admiral
Thu Sep 17, 2020 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Discretionary spending strategy
Replies: 21
Views: 1821

Re: Discretionary spending strategy

If you have over a million dollars and are still saving that much each, then I would posit that all this "fun money tracking" is needless and actually detracts from the "fun" part of it. Part of it being enjoyable is not having to think about it. Once all the fun spending--and I find it interesting ...
by Admiral
Wed Sep 16, 2020 11:38 am
Forum: Personal Finance (Not Investing)
Topic: new car - 0% interest loan ?
Replies: 27
Views: 1682

Re: new car - 0% interest loan ?

Just bought a new VW Alltrack so here are my thoughts. The cash price and the 0% financing price are rarely the same. Get them to agree to an OTD price WITHOUT any mention of how you plan to pay for the car (and don't discuss trade in, if applicable). Once you get the price you want, THEN see if th...
by Admiral
Wed Sep 16, 2020 11:26 am
Forum: Personal Finance (Not Investing)
Topic: new car - 0% interest loan ?
Replies: 27
Views: 1682

Re: new car - 0% interest loan ?

Just bought a new VW Alltrack so here are my thoughts. The cash price and the 0% financing price are rarely the same. Get them to agree to an OTD price WITHOUT any mention of how you plan to pay for the car (and don't discuss trade in, if applicable). Once you get the price you want, THEN see if the...
by Admiral
Tue Sep 15, 2020 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Thinking of moving/emigrating to Canada
Replies: 35
Views: 4793

Re: Thinking of moving/emigrating to Canada

We are thinking of moving to Canada and am am looking for references: books, advisors, etc. We are both retired and would not be looking for employment. Questions I have include: Qualifications: My son and his wife are also considering this. They are in their late 30's and work for big Pharma and b...
by Admiral
Mon Sep 14, 2020 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Paying off sub 4% mortgage interest rate early
Replies: 167
Views: 14280

Re: Paying off sub 4% mortgage interest rate early

Here’s a different (and my) perspective. Many, even most on the board do a simple comparison: if bond return is lower than the mortgage rate, the math says pre pay the mortgage. The logic is seemingly infallible: why lend money (bonds) at a lower rate then you can get paying off debt (mortgage) when...
by Admiral
Sun Sep 13, 2020 12:16 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 204
Views: 19725

Re: Anyone successfully living off dividends & interest?

To live off of only dividends and interest, with my budget of $72k, portfolio of 60/40, 2% dividend yield and 1% interest rate, I'd need approximately $5M without accounting for taxes. So you'd need to find somebody who lives on less than $72k, invests in higher dividend yield stocks, has alternati...
by Admiral
Sun Sep 13, 2020 8:05 am
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 204
Views: 19725

Re: Anyone successfully living off dividends & interest?

I suppose I would be considered HNW. We will not have an 8 figure portfolio. Upon reaching FRA (though we plan to retire well before that) our income will look like this: $40k pension $60-80k Social security (dual, current dollars, amount depends on when we file) Portfolio income ONLY (30-40k). Curr...
by Admiral
Sun Sep 13, 2020 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Can I still refinance? Refinanced a month ago.
Replies: 17
Views: 1981

Re: Can I still refinance? Refinanced a month ago.

Personally, I don't think it's unethical, because it depends on "intent." At the time you signed, your intent was not to refinance. Now, your intentions have changed. The penalty is there for situations where the signer decides to refinance: They claw back the money, and you go on your way. Will the...
by Admiral
Sat Sep 12, 2020 7:21 am
Forum: Personal Finance (Not Investing)
Topic: Financial advisor
Replies: 45
Views: 4823

Re: Would you fire your financial advisor for this error?

Sounds like a consensus, so I'm curious to throw out an extension to this apparently simple situation-- how much are financial advisors involved in taxes? How can they be unless they do your taxes? How much are tax preparers involved in investment strategies? How can they be unless they're deeply f...
by Admiral
Sat Sep 12, 2020 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Financial advisor
Replies: 45
Views: 4823

Re: Would you fire your financial advisor for this error?

Negotiate a lower AUM rate since they appear to be sleeping through this anyways. +1. If it's all index funds anyway, the value provided (even for the 50bs) is definitely in the slim to none range. (The true value may be saving you the time, which of course does have value.) If her expenses are all...
by Admiral
Fri Sep 11, 2020 3:43 pm
Forum: Personal Finance (Not Investing)
Topic: Bet that 30-year mortgage rates are below 2.00% by July 2021
Replies: 37
Views: 3813

Re: Bet that 30-year mortgage rates are below 2.00% by July 2021

davemanjam wrote: Fri Sep 11, 2020 3:11 pm I think you will lose.
I think rates only drop a little lower.

Fun Bet. Pack a potato (in the front not the back).
Best post of the day award!
by Admiral
Fri Sep 11, 2020 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Bet that 30-year mortgage rates are below 2.00% by July 2021
Replies: 37
Views: 3813

Re: Bet that 30-year mortgage rates are below 2.00% by July 2021

United Wholesale Mortgage ALREADY has (or had, a month ago) 30 year rates under 2%. Some caveats, but they were there. https://www.housingwire.com/articles/uwm-announces-1-99-rate-for-30-year-fixed-mortgage/ Do you know anybody who actually got that? Their website doesn't appear to offer loans to h...
by Admiral
Fri Sep 11, 2020 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Bet that 30-year mortgage rates are below 2.00% by July 2021
Replies: 37
Views: 3813

Re: Bet that 30-year mortgage rates are below 2.00% by July 2021

United Wholesale Mortgage ALREADY has (or had, a month ago) 30 year rates under 2%. Some caveats, but they were there.

https://www.housingwire.com/articles/uw ... -mortgage/
by Admiral
Fri Sep 11, 2020 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off sub 4% mortgage interest rate early
Replies: 167
Views: 14280

Re: Paying off sub 4% mortgage interest rate early

Toons wrote: Fri Sep 11, 2020 12:09 pm I am not
But
I Would
If I had a Mortgage




:mrgreen:
Toons I always enjoy your Haiku-esque responses! :happy
by Admiral
Fri Sep 11, 2020 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Paying off sub 4% mortgage interest rate early
Replies: 167
Views: 14280

Re: Paying off sub 4% mortgage interest rate early

This has been our route: 2010: purchased home with 3% down (no PMI), 30 year fixed at 5.25%; paid extra each month 2012: did a no-cost refi to another 30 yr fixed at 3.25% and stopped making extra payments 2020: did a no-cost refi to another 30 yr fixed at 2.875% and restarted the 30 year clock (co...
by Admiral
Fri Sep 11, 2020 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Paying off sub 4% mortgage interest rate early
Replies: 167
Views: 14280

Re: Paying off sub 4% mortgage interest rate early

I would add that if you're not maxing retirement accounts (and thus deferring taxes at your marginal rate) pre-paying a sub-4% mortgage is rarely a good idea except under some specific circumstances (being very close to retirement being one). For example, for me to pre-pay $1,000 a month, I would ha...
by Admiral
Fri Sep 11, 2020 7:27 am
Forum: Personal Finance (Not Investing)
Topic: Paying off sub 4% mortgage interest rate early
Replies: 167
Views: 14280

Re: Paying off sub 4% mortgage interest rate early

2.25%, 11 years remaining. Not paying extra and doubt I will, as even large lump sum payments don't save very much nor shave much time off. I do plan to stop working full time a year or two before the mortgage ends, so at that point, with $25-50k left, I might pay it off just to be rid of it. Note t...
by Admiral
Fri Sep 11, 2020 7:21 am
Forum: Personal Finance (Not Investing)
Topic: Help with mortgage broker fee understanding
Replies: 3
Views: 301

Re: Help with mortgage broker fee understanding

I would not pay that fee for THAT rate, because that rate is commonly available on the Internet. I would only pay (and have only paid) broker fees when the rate they were able to get at the time was significantly less than a non-brokered mortgage, because I eventually recouped the fee by paying less...
by Admiral
Thu Sep 10, 2020 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Projected inflation rate and equity rate of return
Replies: 27
Views: 1354

Re: Projected inflation rate and equity rate of return

https://www.flexibleretirementplanner.com/wp/ Does it all for you. You can adjust all rates (return, inflation) and enter standard deviation. Outputs are in current dollars. Personally, I use 2% inflation with 1% standard deviation and total portfolio return (nominal) of 8% with 10% standard deviati...
by Admiral
Thu Sep 10, 2020 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Buying vs. Renting Principles
Replies: 205
Views: 12546

Re: Buying vs. Renting Principles

One of the main conclusions of the most recent report by the Harvard Joint Center for Housing Studies is that renting is/can often be more financially beneficial in terms of wealth building... BUT ONLY IF renters invest the difference, and the vast majority do not. So, they "save" money on rent, an...
by Admiral
Thu Sep 10, 2020 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Buying vs. Renting Principles
Replies: 205
Views: 12546

Re: Buying vs. Renting Principles

One of the main conclusions of the most recent report by the Harvard Joint Center for Housing Studies is that renting is/can often be more financially beneficial in terms of wealth building... BUT ONLY IF renters invest the difference, and the vast majority do not. So, they "save" money on rent, and...
by Admiral
Wed Sep 09, 2020 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Estate planning
Replies: 10
Views: 1088

Re: Estate planning

We also have no children and are leaving everything to our siblings, nieces and nephews. We wanted to leave 50% of the assets to each side of the family. We used the beneficiary (percentage) on each account and a large spreadsheet to calculate everything. First, the primary beneficiary is the other...
by Admiral
Wed Sep 09, 2020 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: What % of income to spend on car?
Replies: 122
Views: 8389

Re: What % of income to spend on car?

IMO the "10% of income" is somewhat arbitrary and not always relevant. If I have $200k in a taxable account, plenty of retirement savings, and my income is $100,000, I don't think many people would suggest that 20 or even 30% of my income ($20-30k) is too much to spend on a car. I think a better met...
by Admiral
Wed Sep 09, 2020 9:24 am
Forum: Personal Finance (Not Investing)
Topic: What % of income to spend on car?
Replies: 122
Views: 8389

Re: What % of income to spend on car?

The car we just bought (new 2019 VW Alltrack) was 10% of our pre-tax income. The last time we bought a car was in 2003. (We are not car commuters.) Not sure how that's a helpful metric, however, as we save $50k a year and our net worth (also barely relevant) is $1.5m. Here's what's more relevant. Af...
by Admiral
Mon Sep 07, 2020 10:10 am
Forum: Personal Finance (Not Investing)
Topic: What is PenFed good at?
Replies: 77
Views: 5520

Re: What is PenFed good at?

They just gave me a 36 mo 20k car loan at 2.14%. That seems pretty good. The only "fee" was that I had to open a PenFed account and fund it with $5. I plan to pay it off early anyway so the effective interest rate will be even lower. I found their customer service to be very good. I was annoyed that...
by Admiral
Mon Sep 07, 2020 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Should I Cancel Husband's Term Insurance?
Replies: 41
Views: 3264

Re: Should I Cancel Husband's Term Insurance?

If you've accumulated enough by ~40 to no longer need a 3MM policy then $200/mo isn't that big a deal to you, and I'd keep it until you are absolutely certain you don't need it. Like so certain that you don't put the word "probably" in your post, and in fact you don't even post at all because you d...
by Admiral
Mon Sep 07, 2020 7:38 am
Forum: Personal Investments
Topic: Lump Sum Vs Dollar Cost Average
Replies: 19
Views: 1423

Re: Lump Sum Vs Dollar Cost Average

As long as you don't/won't need the money in the near future, lump sum. If you think you will, you can DCA most of it, or buy bonds with whatever you think you'll need.
by Admiral
Sat Sep 05, 2020 6:32 am
Forum: Personal Finance (Not Investing)
Topic: Do dual income households need life insurance?
Replies: 40
Views: 3251

Re: Do dual income households need life insurance?

Our $2m in life insurance policies costs us the equivalent of one dinner out per month ($200). I don't miss $200, which is less than my cable bill. I think I WOULD miss the $1m if my wife dies. And I KNOW she would if I do. :D It's one less thing to worry about if/when catastrophe strikes. And money...
by Admiral
Fri Sep 04, 2020 7:00 am
Forum: Personal Finance (Not Investing)
Topic: Starting to look for new house
Replies: 17
Views: 1814

Re: Starting to look for new house

You could consider selling your home and asking the new owners to allow you to rent it from them for a few months. If they are not in a hurry to move in, that might be a good option.
by Admiral
Tue Aug 25, 2020 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage brokers - do they have the interest to get buyer the best interest rate?
Replies: 4
Views: 528

Re: Mortgage brokers - do they have the interest to get buyer the best interest rate?

My mort broker has access to United Wholesale Mortgage, which has among the lowest rates in the country. They are broker only. That doesn't mean other lenders don't have low rates, so it pays to shop around. And of course you will pay a broker fee to access these very low rates. It just depends how ...
by Admiral
Fri Aug 21, 2020 7:23 am
Forum: Personal Consumer Issues
Topic: new car purchase: any reason NOT to do 0% financing
Replies: 90
Views: 7165

Re: new car purchase: any reason NOT to do 0% financing

Did your credit score take any kind of hit with taking out the PenFed loan? Following your strategy... Not sure. I doubt it. Immaterial to me however. I will say they are GREAT to work with. I did the app online and had not heard anything the next day so I called. They said my credit had a freeze o...
by Admiral
Fri Aug 21, 2020 7:08 am
Forum: Personal Consumer Issues
Topic: new car purchase: any reason NOT to do 0% financing
Replies: 90
Views: 7165

Re: new car purchase: any reason NOT to do 0% financing

UPDATE: Ultimately, I have a deal for $30,575 OTD (actual car price is mid $27k range) with my own 2.14% financing from PenFed, $20k for 36 mos. Total interest $667 if held to completion (not likely but possible). So total price would be $31.2k and change. The other good news is that PenFed has not ...
by Admiral
Thu Aug 20, 2020 9:56 am
Forum: Personal Consumer Issues
Topic: new car purchase: any reason NOT to do 0% financing
Replies: 90
Views: 7165

Re: new car purchase: any reason NOT to do 0% financing

So the latest is one dealer was very clear: Internet price is $28,495. At 0% financing, the price goes up to $31,245 Difference: $2750 It is just very difficult to get a single price from these guys. As others mentioned, the conventional wisdom nowadays is to negotiate the price pretending you're o...
by Admiral
Wed Aug 19, 2020 10:00 pm
Forum: Personal Consumer Issues
Topic: new car purchase: any reason NOT to do 0% financing
Replies: 90
Views: 7165

Re: new car purchase: any reason NOT to do 0% financing

Is there an option not to take the financing and get thousands off the out the door price? Why would one get “thousands off” the OTD price by not financing? The dealer doesn’t care at all that you’re paying cash. Every deal they do is cash, regardless if you bring it or not. In fact, they would rat...
by Admiral
Mon Aug 17, 2020 2:30 pm
Forum: Personal Consumer Issues
Topic: new car purchase: any reason NOT to do 0% financing
Replies: 90
Views: 7165

Re: new car purchase: any reason NOT to do 0% financing

"I'm no expert on new car shopping but isn't 0% 0%, no matter who is providing it? Yes, I've had a number of dealers say that "Oh that price on the Internet, that's the finance price. You have cash? It's actually $2500 more." That said, my hope/strategy is to get them to give me price, in writing (...
by Admiral
Mon Aug 17, 2020 9:56 am
Forum: Personal Consumer Issues
Topic: new car purchase: any reason NOT to do 0% financing
Replies: 90
Views: 7165

Re: new car purchase: any reason NOT to do 0% financing

So the latest is one dealer was very clear:

Internet price is $28,495.
At 0% financing, the price goes up to $31,245
Difference: $2750

It is just very difficult to get a single price from these guys.
by Admiral
Mon Aug 17, 2020 6:05 am
Forum: Personal Investments
Topic: Roth versus Traditional retirement investment for high income earners
Replies: 12
Views: 894

Re: Roth versus Traditional retirement investment for high income earners

So, that's one part. The second part is more complex, because it requires predicting your marginal tax rate in retirement. If it were me, no WAY would I pass up saving 33% in tax today. There are any number of ways to reduce taxation later. One way is to convert traditional to Roth if you retire ea...