Search found 1113 matches

by Admiral
Tue Jun 19, 2018 8:38 am
Forum: Personal Finance (Not Investing)
Topic: ARM options, thought process
Replies: 1
Views: 149

Re: ARM options, thought process

I have an ARM at 3.75% that will be eligible for rate change in 2022. While I certainly can't predict future rate trends, it seems like my rate would rise, perhaps significantly, in 2022. The loan amount is about 50% of the current market value, I have no other debt, and could pay off the loan with...
by Admiral
Mon Jun 18, 2018 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: Invest more or accelerate mortgage payoff?
Replies: 15
Views: 898

Re: Invest more or accelerate mortgage payoff?

So you'll prepay a 2.75% mortgage but pay the minimum on a 2.65% student loan? That makes no sense, IMHO. Only because of the difference of estimated savings in prepaying each. Estimated $10k saved in interest on the student loan vs. $230kish on the mortgage. That is not the correct comparison. Vir...
by Admiral
Mon Jun 18, 2018 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Invest more or accelerate mortgage payoff?
Replies: 15
Views: 898

Re: Invest more or accelerate mortgage payoff?

So you'll prepay a 2.75% mortgage but pay the minimum on a 2.65% student loan?

That makes no sense, IMHO.
by Admiral
Mon Jun 18, 2018 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early
Replies: 43
Views: 3385

Re: Paying off mortgage early

Thanks for sharing this. I am in a similar situation and debating whether to pay it off. Can you please share the way to earn 3.25% tax deferred? I still owe on a mortgage (about 50K at 3.25%). If I stick to scheduled payment it will be paid off when I'm 68. I plan to retire before 68. Currently it...
by Admiral
Mon Jun 18, 2018 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Tax implications of holding Wellesley Emergency in taxable
Replies: 8
Views: 818

Re: Tax implications of holding Wellesley Emergency in taxable

When you say "These are the only two funds I have" it appears that you do not have any tax advantaged accounts, since you note that both of these holdings are in a taxable account. So you are saving $2,500 per month, but in a taxable account? I suggest putting that monthly investment in a tax-shelt...
by Admiral
Mon Jun 18, 2018 5:53 am
Forum: Investing - Help with Personal Investments
Topic: Tax implications of holding Wellesley Emergency in taxable
Replies: 8
Views: 818

Re: Tax implications of holding Wellesley Emergency in taxable

When you say "These are the only two funds I have" it appears that you do not have any tax advantaged accounts, since you note that both of these holdings are in a taxable account. So you are saving $2,500 per month, but in a taxable account? I suggest putting that monthly investment in a tax-shelte...
by Admiral
Sat Jun 16, 2018 7:09 am
Forum: Investing - Theory, News & General
Topic: Rate hikes vs - Muni, Corp, Total Bond funds
Replies: 14
Views: 1764

Re: Rate hikes vs - Muni, Corp, Total Bond funds

Grabiner, Thank you for your good point and explanation. What would you recommend is the best way to look at a bond fund like VWIUX (Intermediate Muni) over time in light of the changing Federal Funds Rate? Bob If you would have bought it a year ago when it was $14.21, why would you not buy it now ...
by Admiral
Fri Jun 15, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early
Replies: 43
Views: 3385

Re: Paying off mortgage early

Here is our approach: 1) We round the mortgage payment up a little to get a small amount of additional principal reduction every month. 2) Our monthly budget already includes tax deferred savings, so any savings over my budget goes to taxable investments. 3) We have a "sell trigger" balance for tax...
by Admiral
Fri Jun 15, 2018 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early
Replies: 43
Views: 3385

Re: Paying off mortgage early

I have absolutely no idea what you mean. Can you not explain what you meant that passing away with a big mortgage at a ripe old age is sub-optimal? I'm not trying to argue - just trying to understand. Looking forward with a long runway I think it is a better solution to not have a mortgage as you a...
by Admiral
Thu Jun 14, 2018 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Paying off mortgage early
Replies: 43
Views: 3385

Re: Paying off mortgage early

There's a distinction between "pay down" and "pay off." At your rate paying off might make sense, while paying down might not. I am not a fan of ARMs, personally, due to the rate risk, but some don't care. It's impossible to give proper advice without knowing your other financial particulars. What i...
by Admiral
Thu Jun 14, 2018 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Timeshare ever worth it? Please share details
Replies: 118
Views: 9297

Re: Timeshare ever worth it? Please share details

We have a timeshare in the mtns (actually my parents but we use it). It's fine, nothing fancy, two weeks a year with the option to buy other weeks at pretty reasonable rates. I think they maybe paid $20k like 10 years ago, only because they knew they would keep going back every summer (which they do...
by Admiral
Thu Jun 14, 2018 7:17 am
Forum: Investing - Theory, News & General
Topic: Rate hikes vs - Muni, Corp, Total Bond funds
Replies: 14
Views: 1764

Re: Rate hikes vs - Muni, Corp, Total Bond funds

As long as the average term matches your investing horizon, the fluctuations are immaterial to you. In general, as prices fall, yields rise. As prices rise, yields fall. Total Bond is medium term fund, I think it's like 6 or 7 year average duration to maturity. It's only a problem if you are forced ...
by Admiral
Wed Jun 13, 2018 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Are you including SS in your planning model? Are the benefits really that high?
Replies: 148
Views: 11089

Re: Are you including SS in your planning model? Are the benefits really that high?

investingdad wrote:
Wed Jun 13, 2018 10:53 am
I locked down MySocialSecurity two years ago when I learned that was the path taken to my identity being stolen... documented on this site.
Two-factor authentication now. Certainly not hack-proof, but better.
by Admiral
Wed Jun 13, 2018 7:25 am
Forum: Personal Finance (Not Investing)
Topic: Are you including SS in your planning model? Are the benefits really that high?
Replies: 148
Views: 11089

Re: Are you including SS in your planning model? Are the benefits really that high?

Just as an aside, I thought speculation about future tax/law changes were forbidden on the board? I've been flagged for this in the past, so I'm just curious how so many of these posts have not been removed....? :confused Seems like nothing but speculation.
by Admiral
Tue Jun 12, 2018 11:57 am
Forum: Investing - Help with Personal Investments
Topic: Paying off a mortgage: Incentivized by new tax law?
Replies: 17
Views: 1554

Re: Paying off a mortgage: Incentivized by new tax law?

To me the new tax laws have very little effect on my decision. The question is if you had a paid-for home, would you borrow on it and use the money to invest in the market. I would not. TravelforFun This is too facile. What if my company is going to match my investment 100% (as many companies will)...
by Admiral
Tue Jun 12, 2018 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Paying off a mortgage: Incentivized by new tax law?
Replies: 17
Views: 1554

Re: Paying off a mortgage: Incentivized by new tax law?

You do realize that NJ is one of a few high-tax states (along with NY and CT) that have said they are allowing tax payers to deduct their state taxes as a charitable contribution, and thus continue to itemize and get the full (uncapped) deduction? Google it if not. The IRS has (thus far) indicated t...
by Admiral
Tue Jun 12, 2018 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Are you including SS in your planning model? Are the benefits really that high?
Replies: 148
Views: 11089

Re: Are you including SS in your planning model? Are the benefits really that high?

This has been posted before, but: If you have a ssa.gov account and can access your earnings record, this site: https://minafi.com/interactive-guide-early-retirement-financial-independence has a pretty cool calculator that shows the various effects of taking SS at different ages. It shows bend point...
by Admiral
Tue Jun 12, 2018 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Are you including SS in your planning model? Are the benefits really that high?
Replies: 148
Views: 11089

Re: Are you including SS in your planning model? Are the benefits really that high?

I have not used social security in any retirement planing model since I began modeling back in my 20s. Like I said, I hadn't spent much time looking at SS and I never include it in my planing. Because, holy crap, if we really do get those types of benefits in 18 years it radically alters my model. ...
by Admiral
Tue Jun 05, 2018 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: For retirement at 55 what is a good multiplier?
Replies: 65
Views: 11749

Re: For retirement at 55 what is a good multiplier?

Thanks for the replies. I know the mantra on here is save as much as you are able, but if we tried we could save +55% of our earnings but that just doesn't seem to be a "healthy" thing for a 30 year old family of 4. I don't want to forgo joy now unless it is necessary to achieve my goals. I current...
by Admiral
Tue Jun 05, 2018 9:25 am
Forum: Investing - Help with Personal Investments
Topic: For retirement at 55 what is a good multiplier?
Replies: 65
Views: 11749

Re: For retirement at 55 what is a good multiplier?

Thanks for the replies. I know the mantra on here is save as much as you are able, but if we tried we could save +55% of our earnings but that just doesn't seem to be a "healthy" thing for a 30 year old family of 4. I don't want to forgo joy now unless it is necessary to achieve my goals. I current...
by Admiral
Mon Jun 04, 2018 11:03 am
Forum: Personal Finance (Not Investing)
Topic: What is your Take Home Pay / Gross Pay ratio?
Replies: 75
Views: 5644

Re: What is your Take Home Pay / Gross Pay ratio?

Me: 55%
Spouse: 57%

Max 403b/457 (37k), pension contribution, deductions for med/dental/vision, extra $300/mo withholding, and (natch) lots and lots of taxes. Also sizable employer retirement contribution but that's not "take home" dollars.
by Admiral
Sun Jun 03, 2018 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Leave Job (Philly) and move To Arizon (Phoenix)?
Replies: 67
Views: 4937

Re: Leave Job (Philly) and move To Arizon (Phoenix)?

Philly is one of the most affordable large cities on the east coast, housing wise, and is very close to lots of other places. You'd be crazy to leave such a high paying job (median family income in Philly is around 45k) without another job to replace it. How would you feel if you moved and then all ...
by Admiral
Fri Jun 01, 2018 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Keep pension or roll over to IRA?
Replies: 14
Views: 1034

Re: Keep pension or roll over to IRA?

Hi all, First, let me say that this site years ago has transformed my finances and I’m incredibly appreciative of what I’ve learned from the posters here. Now I need help with a math and retirement question that I haven't seen asked here before. My DW is considering a job change that would mean dec...
by Admiral
Thu May 31, 2018 8:53 am
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13291

Re: Renting vs Owning Your Home

Why would I not want to a) have an inflation-protected, cost-controlled asset as my largest monthly payment each month Personally I like my savings/investments to be my "largest monthly payment" each month but to each their own. You've confused "payment" with "investment" which I assume you underst...
by Admiral
Tue May 29, 2018 7:18 pm
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13291

Re: Renting vs Owning Your Home

Why would I not want to a) have an inflation-protected, cost-controlled asset as my largest monthly payment each month I think this is the biggest advantage assuming you can afford it. When I bought my home payment total was $2100 (I'm including taxes and insurance) and rent for a similar house in ...
by Admiral
Tue May 29, 2018 10:22 am
Forum: Personal Finance (Not Investing)
Topic: First Time Home Buyers- Mortgage Questions
Replies: 29
Views: 2426

Re: First Time Home Buyers- Mortgage Questions

Just advice.. take it for what it is worth: 1. You said your combined income is $300K.. .Not sure if that is evenly distributed or not but lets assume it is. You are one job loss away from not being able to afford the home. When both my wife and I worked (many years ago) we had a rule to only take ...
by Admiral
Mon May 28, 2018 7:30 am
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13291

Re: Renting vs Owning Your Home

For the vast majority of households in the US, their home is their most valuable asset by far. What does that tell you? What it doesn't tell you is that there are tens or scores of millions of households with large (mid to high-six figure) portfolios that they accumulated by renting, saving the diff...
by Admiral
Tue May 22, 2018 10:51 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond Market
Replies: 12
Views: 1957

Re: Total Bond Market

They (and I don't know who "they" are) always say to only invest in things you understand. For many years I have tried to understand why I should invest in bonds (where principal is at risk) and NOT a CD ladder. I am just not smart enough to understand... so I won't invest in bonds or bond funds. F...
by Admiral
Tue May 22, 2018 9:36 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 491
Views: 28876

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

The (or one) issue with relying on Roth conversion is that it, in a dual income household, it assumes both spouses retire at the same time (or one has a very low or no earned income). Conversion to Roth is not beneficial if one has already filled up the lower brackets with other income. In that case...
by Admiral
Mon May 21, 2018 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Pimco INCOME BOND FUND PONAX beating VWIAX Wellesley ~~ too good to be true?
Replies: 26
Views: 1867

Re: Pimco PONAX beating VWIAX Wellesley ~~ too good to be true?

.9% versus .15% Expense Ratio. You do the math... ? This actually doesn't tell anything about the math. These are two completely different funds. One is a fixed income fund and one is a stock:bond fund. The comparison between the two funds is like comparing apples and oranges. Yes, it does. The poi...
by Admiral
Fri May 18, 2018 6:14 am
Forum: Investing - Theory, News & General
Topic: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%
Replies: 106
Views: 10447

Re: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%

If anything, I am the stupid one here because 49 posts into this discussion, I am still not understanding the advocacy for bond funds in a rising interest environment. That applies to me too! Would you prefer to buy when prices are higher and interest payments (ie yields) are lower ? The point is t...
by Admiral
Thu May 17, 2018 3:49 pm
Forum: Investing - Theory, News & General
Topic: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%
Replies: 106
Views: 10447

Re: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%

If anything, I am the stupid one here because 49 posts into this discussion, I am still not understanding the advocacy for bond funds in a rising interest environment. That applies to me too! Would you prefer to buy when prices are higher and interest payments (ie yields) are lower ? The point is t...
by Admiral
Wed May 16, 2018 11:01 am
Forum: Investing - Theory, News & General
Topic: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%
Replies: 106
Views: 10447

Re: YTD: VBTLX down 2.28%; VBILX down 2.99%; VTSAX down 0.23%

Unless you're a retiree living off your bonds (in which case rising yields should make you happy, not annoyed) I see no reason to even concern yourself with day to day or month to month shifts in NAV of bond funds. Who cares? Just pick your AA and stick to it. I just take my few hundred bucks a mont...
by Admiral
Sun May 06, 2018 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: ? on income above max SS threshold
Replies: 4
Views: 546

? on income above max SS threshold

If one's annual salary is above the current SS max ($128,400 for 2018), does the 6.2% disappear once your gross income for the year goes above the threshold? For example if one's November paycheck shows that one has been paid $128,400 in gross wages up to that point, will the December paycheck show ...
by Admiral
Wed Mar 28, 2018 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Healthy eaters -- is this grocery budget normal to you?
Replies: 247
Views: 13736

Re: Healthy eaters -- is this grocery budget normal to you?

Hi, My wife and I spend ~$1,200 or so each month for groceries, and there's only two of us. It's the only large item on our budget except for rent. Our predicament is we desire to eat extremely healthy (organic, non-GMO, top of the line sourced food) but see nowhere to cut our bill. We shop exclusi...
by Admiral
Wed Mar 28, 2018 6:57 am
Forum: Personal Finance (Not Investing)
Topic: When to Take Social Security (again...)
Replies: 62
Views: 5491

Re: When to Take Social Security (again...)

What's perhaps lost here is this: For households between 50 and 55, the median retirement account balance is just $8,000. For those between 56 and 61, it's $17,000 -- not much better. Source: https://www.fool.com/retirement/2017/10/22/heres-how-much-the-average-50-something-american-h.aspx Thus, the...
by Admiral
Sun Mar 25, 2018 7:48 pm
Forum: Personal Finance (Not Investing)
Topic: When to Take Social Security (again...)
Replies: 62
Views: 5491

Re: When to Take Social Security (again...)

Many, many threads on this. I will just add that all of Vanguard's research indicates that you're better off spending your portfolio down (even above 4% SWR) and delaying until 70 if you can. Especially if you have a spouse and have dual SS. Now, if you have so much that you will have a 2% or lower ...
by Admiral
Sun Mar 18, 2018 7:26 am
Forum: Personal Finance (Not Investing)
Topic: Does credit score matter if you never plan to borrow money again?
Replies: 44
Views: 4320

Re: Does credit score matter if you never plan to borrow money again?

I have a small bill that I won’t pay because it is for a service extension I never authorized or used. The company, an internet news organization, finally told me they were reporting it to a collection agency. I thought, “Big deal.” I never expect to borrow money and I have never missed a payment i...
by Admiral
Fri Mar 16, 2018 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: At what point does it make sense to pay down your mortgage?
Replies: 76
Views: 8207

Re: At what point does it make sense to pay down your mortgage?

So, correct me if I'm wrong here. I've kept thinking something is wrong with viewing mortgage interest and investable interest as the same thing, just inverted. The reason is that investing gets compounded into infinity, where the mortgage compounds backwards for a fixed term. To put math to it, co...
by Admiral
Fri Mar 16, 2018 10:07 am
Forum: Personal Finance (Not Investing)
Topic: At what point does it make sense to pay down your mortgage?
Replies: 76
Views: 8207

Re: At what point does it make sense to pay down your mortgage?

My previous mortgage, I would occasionally make additional principal payments. The thing that bothered me is that the monthly payment remained the same. If I'm paying lower interest, and it's still a 30 year loan, wouldn't it be paid off earlier if I'm now paying more principal each month with just...
by Admiral
Fri Mar 16, 2018 9:28 am
Forum: Personal Finance (Not Investing)
Topic: At what point does it make sense to pay down your mortgage?
Replies: 76
Views: 8207

Re: At what point does it make sense to pay down your mortgage?

We had always taken the standard deduction in the past, but people always said, "When it get a house, it'll lower your taxes." Well, we bought a house in September of last year, just in time for the standard deduction to increase before ever getting any benefit. For every dollar you send me I will ...
by Admiral
Thu Mar 15, 2018 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: At what point does it make sense to pay down your mortgage?
Replies: 76
Views: 8207

Re: At what point does it make sense to pay down your mortgage?

I am opting for taxable investing for now (for the first time) because I want to increase my liquidity. Once I have built up sufficient taxable liquidity (maybe 30k or 40k), I think I will switch to the mortgage. People continue to speak of equity returns as if they are certain and I tend to think ...
by Admiral
Thu Mar 15, 2018 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: At what point does it make sense to pay down your mortgage?
Replies: 76
Views: 8207

Re: At what point does it make sense to pay down your mortgage?

Aside from any psychological or emotional satisfaction in prepaying a mortgage, you need to consider liquidity, and how important this is to you. Once your spare cash is in your house, it's in your house. To get it, you need to a) sell or b) get a HELOC, subject to rates at that time. If you have a ...
by Admiral
Tue Mar 13, 2018 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Dave Ramsey on Bonds
Replies: 107
Views: 9162

Re: Dave Ramsey on Bonds

I would also add that as a general rule you should ignore financial advice that you read on the Internet or watch on television.

Except, you know, from here. :D
by Admiral
Tue Mar 13, 2018 10:26 am
Forum: Investing - Help with Personal Investments
Topic: Dave Ramsey on Bonds
Replies: 107
Views: 9162

Re: Dave Ramsey on Bonds

Everyone hates bonds during a 9 (or is it 10?) year bull market. Come back when stocks are falling day after day, month after month. Bonds are for safety and to counter stock volatility, not for (excessive) return. If you don't like them or want them, buy CDs or hold cash. Or hold 100% stocks and bu...
by Admiral
Fri Mar 09, 2018 11:41 am
Forum: Personal Finance (Not Investing)
Topic: BH's that are retired & mortgage free
Replies: 21
Views: 3135

Re: BH's that are retired & mortgage free

There is no way to predict medical insurance cost 20+ years in the future. So many things can change, whether for private insurance or medicare that the possibilities far outweigh the range of your capability to extrapolate. +1. You're trying to predict your income and expenses 20 years into the fu...
by Admiral
Wed Feb 28, 2018 2:17 pm
Forum: Investing - Theory, News & General
Topic: The Flexible Retirement Planner
Replies: 23
Views: 2928

Re: The Flexible Retirement Planner

I have used it for about three years and like it very much. I used extensively for modeling my plans and understanding risk. I ended up putting detailed entries to build the model. Woodspinner, Admiral....Is it worth getting the license key? Or is the freeware version with three scenarios good enou...