Search found 104 matches

by av111
Sat Oct 10, 2020 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Buying second house - dilemma
Replies: 46
Views: 5534

Re: Buying second house - dilemma

by paying for management. The management fee is 30% of the gross! From my limited experience in the past with rental residential real estate investment, making money with a 30% management fee will require unusual appreciation in property value. It s hard to count on that. Bltn Vacation rentals coll...
by av111
Fri Oct 09, 2020 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Buying second house - dilemma
Replies: 46
Views: 5534

Re: Buying second house - dilemma

Keeping and renting current house would be something like $15000 income on $500k of equity if mortgage were paid off. That's a pretty poor return on investment. About 3.0%... As a long-time real estate investor and landlord, I laugh at that analysis. It does not take price appreciation into account...
by av111
Thu Oct 08, 2020 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Solar Panel Proposal
Replies: 20
Views: 1288

Re: Solar Panel Proposal

Hi fellow bogleheads, I just received a quote for solar panels on my roof. Please offer any insights as I am not compeltely sure if it makes sense. Roof is fairly new new as house is new construction from 2017. Quote and info: 22 panels (south facing all in teh back of the house) 1 inverter 6.71 kW...
by av111
Tue Oct 06, 2020 7:59 pm
Forum: Personal Consumer Issues
Topic: Buying a Tesla
Replies: 84
Views: 6998

Re: Buying a Tesla

I am 78 with portfolio over two million. I have no debts and retirement income about 160K a year. I want to buy a Tesla Sedan (@$80,000). I cannot justify this purchase other than I want it. Some thoughts? OP I guess the question for you to answer is "why do you want to buy a new Tesla for 80k" Eve...
by av111
Sun Oct 04, 2020 3:23 pm
Forum: Personal Investments
Topic: New Member - risk averse but looking to get into market
Replies: 33
Views: 2039

Re: New Member - risk averse but looking to get into market

Look up roboadvisors for investing the leftover money every paycheck. Very passive and if the market goes down they do the tax loss harvesting automatically while keeping you in the market. That feature is invaluable for risk averse investors. I feel that this plan is a good one for most high earne...
by av111
Sun Oct 04, 2020 11:02 am
Forum: Personal Investments
Topic: New Member - risk averse but looking to get into market
Replies: 33
Views: 2039

Re: New Member - risk averse but looking to get into market

With that said, we have saved liquid assets of about $550k which I know are in effect losing money just sitting in savings/CDs considering inflation. 2) get our assets into the market over time. a 1-3 fund portfolio would work best so that it would be as passive as possible and it would just be a s...
by av111
Sun Sep 20, 2020 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Regret early retirement/downsizing
Replies: 260
Views: 65909

Re: Regret early retirement/downsizing

Admittedly my "advice" is jaded since I am approaching retirement age (61) after a 20 + year career as a Registered Nurse. Most of my patients are in their later years with cardiac conditions, other vascular conditions which clearly diminish the quality of their lives, especially those with kidney ...
by av111
Sun Sep 20, 2020 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Reason not to rent out your old house?
Replies: 58
Views: 4720

Re: Reason not to rent out your old house?

OP Since real estate is very very location specific, it is better to know your specific location before advising you on what to do. Your market could have gone up like bay area CA where rentals have given several multiples ROI to investors in 8 years or it could be in sleepy Midwest where appreciati...
by av111
Sun Sep 20, 2020 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: The WR in practice [Withdrawal Rate]
Replies: 67
Views: 3975

Re: The WR in practice [Withdrawal Rate]

OP

50 years is a long time. What are you thinking of doing
by av111
Fri Sep 18, 2020 11:42 am
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19567

Re: How Much House Can We Afford in HCOL Area?

Quick update. We decided to buy. We purchased a 3/2.5 home for 1.6M. We will be putting 20% down and have a 30 year fixed locked at 2.65% (around $7k a month). My FIL will be temporarily paying $2k / mo to the mortgage and living the master bedroom suite. I decided $5k for us a month makes sense vs...
by av111
Thu Sep 17, 2020 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: How to get over finance envy
Replies: 377
Views: 51351

Re: How to get over finance envy

You’re doing great. Here what we focused on: Never be a burden on your kids. live well below your means. Develop multiple sources of future income. Stay away from the shiny stuff. Don’t follow the Joneses. Keep your cars for 10 years+. Pay off credit cards every month. Use cash as much as possible ...
by av111
Mon Sep 14, 2020 8:29 am
Forum: Personal Finance (Not Investing)
Topic: what is your side job and income?
Replies: 87
Views: 10694

Re: what is your side job and income?

We manage our rental property portfolio as a side gig. Takes a few hours every quarter outside of the W2 time (9 to 5 weekday). ROCE is 12% to 15% annual for our portfolio (not counting appreciation) In an upcoming capital event, we may be taking out 1.3x of the invested capital with 0 tax liability...
by av111
Sat Sep 12, 2020 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Buying a home.. Which is the better way to finance?
Replies: 6
Views: 838

Re: Buying a home.. Which is the better way to finance?

1. Do cash out refi on the primary and the rental and buy new home in cash. Rate is 1% higher but it will reduce the taxable income from the rentals enough to pay for the difference in the rates I am not a tax guru but are you sure that you will be able to deduct the mortgage if you do a cash out r...
by av111
Sat Sep 12, 2020 1:13 am
Forum: Personal Finance (Not Investing)
Topic: Buying a home.. Which is the better way to finance?
Replies: 6
Views: 838

Re: Buying a home.. Which is the better way to finance?

2. Just take a new loan for the new home. What would you do and why? Because you can get a loan for around 3%( or less) and keep it for a very long time. Even if you move you would still have the option of keeping the house as a rental. The problem with getting a loan on one of the other houses is ...
by av111
Fri Sep 11, 2020 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a home.. Which is the better way to finance?
Replies: 6
Views: 838

Buying a home.. Which is the better way to finance?

Hi all Here is a situation for comments Primary home 300k free and clear Rental 400k free and clear Planning to buy a new home worth 450k Current primary home will become a rental Approved for 350k mortgage. Can easily afford it Options 1. Do cash out refi on the primary and the rental and buy new h...
by av111
Tue Sep 08, 2020 9:07 pm
Forum: Personal Investments
Topic: Tax benefits of real estate without the work?
Replies: 9
Views: 1224

Re: Tax benefits of real estate without the work?

Liquidity is also an issue to consider with Real Estate. As is balancing value in multiple holdings - say you want to leave a property or two to each child -- how do you even things up if they vary in value? You can sell your stocks and bonds rapidly if you need to. But having handled some estates,...
by av111
Sun Sep 06, 2020 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Any gaps in our thinking?
Replies: 46
Views: 3524

Re: Any gaps in our thinking?

OP 5% is 100k withdrawal out of the 2m taxable. One reason to focus on the taxable only is because needs for withdrawals can sometimes change the ips leading to unpredictable results. But with 4m corpus it does not matter. You are good to go. Consider expanding the EF or reducing the equity exposure...
by av111
Sun Sep 06, 2020 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19567

Re: How Much House Can We Afford in HCOL Area?

To be perfectly honest, I don't think you should consider anything bigger than a 540k mortgage (2X you annual salary). That means the price of the house could be in the $650-700k range before the 20% down payment. hightower Is this 2x suggestion backed by some numbers for high income LBYM families?
by av111
Sun Sep 06, 2020 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19567

Re: How Much House Can We Afford in HCOL Area?

Thanks I just figured this out... $28.7k income ($345k) $4.7k pre tax savings = 50k $9.4k taxes + health stuff = 110k $10.6k Roth/529/ESPP savings = 127k Clearly buying a 2m house means that you won't save 177k every year. :confused Your distribution would be like 345k income 100k housing 110k taxe...
by av111
Sun Sep 06, 2020 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Any gaps in our thinking?
Replies: 46
Views: 3524

Re: Any gaps in our thinking?

OP Does 95k annual expense include PITI for the new home? This expense is expected to come from the 2m taxable so withdrawal rate is about 5%. Does the expense include taxes on sales of appreciated stock? What happens if stocks go down a bit for some time? Do it but have a 2 year liquid EF before qu...
by av111
Sun Sep 06, 2020 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19567

Re: How Much House Can We Afford in HCOL Area?

OP In today's mortgage market, 1.5 m loan costs about 5.8k in principal and interest. Add about 2.5k for taxes and insurance on a 2m home. Total PITI costs are close to 8.3k or 100k annual What is the AGI on your 2018 and 2019 tax returns? I saw in a recent post that your income was 260k. Is that r...
by av111
Sun Sep 06, 2020 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19567

Re: How Much House Can We Afford in HCOL Area?

OP In today's mortgage market, 1.5 m loan costs about 5.8k in principal and interest. Add about 2.5k for taxes and insurance on a 2m home. Total PITI costs are close to 8.3k or 100k annual What is the AGI on your 2018 and 2019 tax returns? I saw in a recent post that your income was 260k. Is that r...
by av111
Sun Sep 06, 2020 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford a 1.3 mil house?
Replies: 36
Views: 3642

Re: Can I afford a 1.3 mil house?

OP Look at the 1. AGI and total amount paid in taxes on 2019 returns 2. Total non housing costs today Buying a 1.3m house with 400k down requires 900k loan. Your PI is likely to be 50k per year. Add taxes and insurance. That is your housing expense Income - income taxes - housing expenses - non hous...
by av111
Sun Sep 06, 2020 9:46 am
Forum: Personal Finance (Not Investing)
Topic: How Much House Can We Afford in HCOL Area?
Replies: 300
Views: 19567

Re: How Much House Can We Afford in HCOL Area?

OP In today's mortgage market, 1.5 m loan costs about 5.8k in principal and interest. Add about 2.5k for taxes and insurance on a 2m home. Total PITI costs are close to 8.3k or 100k annual What is the AGI on your 2018 and 2019 tax returns? I saw in a recent post that your income was 260k. Is that ri...
by av111
Tue Sep 01, 2020 10:26 pm
Forum: Personal Investments
Topic: 400k cash, fear of inflation
Replies: 46
Views: 4258

Re: 400k cash, fear of inflation

OP Just buy an investment property and collect rent. If inflation happens, property goes up in price as do other real assets. Financial assets like stocks struggle Stocks aren't a "real asset"?? What happens if the inflationary environment reduces demand for rentals in OP's area? Inflation just inc...
by av111
Tue Sep 01, 2020 9:45 pm
Forum: Personal Investments
Topic: 400k cash, fear of inflation
Replies: 46
Views: 4258

Re: 400k cash, fear of inflation

OP

Just buy an investment property and collect rent. If inflation happens, property goes up in price as do other real assets. Financial assets like stocks struggle
by av111
Tue Sep 01, 2020 10:50 am
Forum: Investing - Theory, News & General
Topic: Easy money baby!
Replies: 59
Views: 6965

Re: Easy money baby!

OP

How about SQQQ $25 calls for December?
by av111
Mon Aug 31, 2020 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: How to get over finance envy
Replies: 377
Views: 51351

Re: Are you "outer directed" or "inner directed" ?

Bogleheads: Silva Mind Control . Best wishes. Taylor I practiced this earlier in my life. Found it very effective. So thanks Taylor for the reminder! Re the topic, bay area peeps, have you noticed how 2 million homes are staying on the market for like a weekend? "What are we doing wrong and what ar...
by av111
Sun Aug 30, 2020 9:42 am
Forum: Investing - Theory, News & General
Topic: How long could you live off your portfolio if the worst happened?
Replies: 110
Views: 10730

Re: How long could you live off your portfolio if the worst happened?

People hoping to sell stuff like homes and goodies on doomsday may find buyers are hard to get
by av111
Sun Aug 30, 2020 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Just found my dream home/offer accepted, need lending ASAP and have important questions, you're my main resource
Replies: 91
Views: 6837

Re: Just found my dream home/offer accepted, need lending ASAP and have important questions, you're my main resource

OP Your house is affordable when you look at the income. Your expenses of 7k per month for two people appear to be very high so what is included? Re mortgage - try to get lowest rate with 0 costs and fees. Closing the loan in time is more important than the rate. Costs paid at this time are basicall...
by av111
Fri Aug 28, 2020 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Tax question for refi cash-out for primary or investment property
Replies: 11
Views: 603

Re: Tax question for refi cash-out for primary or investment property

OP

Can you post rate term and cost for both Loans? Is it
Primary = 2.5% 15 years 0 cost
Rental = 3.125, 15 years, 3k cost
by av111
Wed Aug 26, 2020 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage refinance - do it or not?
Replies: 16
Views: 1736

Re: Mortgage refinance - do it or not?

Stock market prices are at all time highs. It is decidedly not a given that you'll earn substantially more than 3% on your brokerage account after taxes and fees (however small they may be). Sure, over the next 22 years you might (on average), but that clouds the issue of year to year volatility; t...
by av111
Wed Aug 26, 2020 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Maintenance and Repair of HVAC, Water Heaters, etc
Replies: 28
Views: 2480

Re: Maintenance and Repair of HVAC, Water Heaters, etc

Re hose the AC units, doesn't rain take care of that?

Anyone has experience with a good home warranty company? Few years back they were asking for 400 a year and 60 per call. So if you had one hvac call and one plumbing issue, you covered the cost
by av111
Wed Aug 26, 2020 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: Is cash really king?
Replies: 35
Views: 3750

Re: Is cash really king?

OP Cash is king when liquidity is low. Warren Buffet was able to make tremendous amounts of money during 2008 to 2010 when he had cash and companies needed liquidity Till 2014, we bought assets at 50 to 80% discount to pre housing crash prices, because we were paying 100% in cash no loans Today fed ...
by av111
Sun Aug 23, 2020 12:26 pm
Forum: Personal Investments
Topic: Vanguard Funds that offer a monthly payment?
Replies: 27
Views: 3359

Re: Vanguard Funds that offer a monthly payment?

OP

Good rental property is the best source of monthly income. Also fills the desire for part time work
by av111
Tue Aug 18, 2020 8:07 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin: What is it, in Plain English
Replies: 170
Views: 25900

Re: Bitcoin: What is it, in Plain English

Why is it hard for governments to control it when 18 year old kids can steal it from people or hack exchanges? All of the ransomware attacks like Garmin, UCSF etc were resolved by paying in bitcoins. Still there is no criminal investigation leading to identification of the criminals
by av111
Tue Aug 11, 2020 5:52 pm
Forum: Personal Investments
Topic: Assets going from 600K->15M, should I change my asset allocation?
Replies: 175
Views: 17680

Re: Assets going from 600K->15M, should I change my asset allocation?

I was transferred approximately 15M in cash (after-tax). Shoot. Nigerian prince sent the money to you? He was talking to me but I wanted proof. So he became cold and wouldn't answer and I thought I lost. Now I know! j/k - Re investments, stay the course. Money is used to buy "things". No other use ...
by av111
Tue Aug 11, 2020 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Buying Rentals for retirement income. Worth it?
Replies: 61
Views: 5489

Re: Buying Rentals for retirement income. Worth it?

Example of executed option Purchased home with Investors Money, making them money on their money with 12% return $80,000 4 bed/2 bath $7000 rehab (included in investor money) Net Cash Flow to us: $375.00 Spread collected: $41,000 Hope this helps, Roberta Roberta Thanks for explaining the mechanics....
by av111
Mon Aug 10, 2020 11:55 pm
Forum: Personal Finance (Not Investing)
Topic: Buying Rentals for retirement income. Worth it?
Replies: 61
Views: 5489

Re: Buying Rentals for retirement income. Worth it?

I'm considering buying a couple townhomes to rent in a great part of town - brand new and high rent demand. They are 300k each, put 50k down on each. Interest rates are low right now, so 30 year keeps interest costs low. Rent minus taxes, HOA, etc come out around $500 monthly / unit. So the numbers...
by av111
Mon Aug 10, 2020 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Buying Rentals for retirement income. Worth it?
Replies: 61
Views: 5489

Re: Buying Rentals for retirement income. Worth it?

@majorisin, My rentals (that I offer as Rent to Own/Lease Options), have allowed my husband to retire, from being a System Engineer after 43 years, beginning of 2020. The lease option takes away both the management & maintenance piece of the "landlord" piece, and alleviates me having to even be in ...
by av111
Thu Aug 06, 2020 8:02 am
Forum: Personal Finance (Not Investing)
Topic: Congratulations, You’ve won a million dollars ....
Replies: 20
Views: 5033

Re: Congratulations You’ve won a million dollars ....

Presuming a 2.5% interest rate, about $627,600.00 https://www.calculator.net/annuity-payout-calculator.html?cstartingprinciple=627600&cinterestrate=2.5&cinflationrate=0&cyearstopayout=40&camounttopayout=5000&cpayfrequency=annually&ctype=fixlength&x=64&y=17 Interesting calculator. I checked how much...
by av111
Wed Aug 05, 2020 1:14 am
Forum: Personal Investments
Topic: Overcoming the fear of an early retirement
Replies: 117
Views: 8905

Re: Overcoming the fear of an early retirement

I have ~11yrs of expenses in bonds atm (across all accounts). I have ~5yrs of that in my taxable account. My intent was to utilize the bonds in taxable alongside my stock dividends to fund expenses in retirement until they've been depleted and hope I can make it where I can start tapping the remain...
by av111
Tue Aug 04, 2020 8:32 pm
Forum: Personal Investments
Topic: Overcoming the fear of an early retirement
Replies: 117
Views: 8905

Re: Overcoming the fear of an early retirement

How familiar are the posters who are advising OP to quit now with Golden handcuffs? How golden are the OPs handcuffs? In this situation, like in most others, there are choices. Find a fit that works for you It is easier to walk away when there are non negotiable events like laid off in late 50s, hea...
by av111
Mon Aug 03, 2020 8:49 am
Forum: Personal Finance (Not Investing)
Topic: 529 accounts, kids home due to covid, Room and Board
Replies: 28
Views: 2889

Re: 529 accounts, kids home due to covid, Room and Board

Fivek and Spirit rider thanks for correcting me. Is there a time limit for withdrawals from 529 for these expenses
by av111
Sun Aug 02, 2020 2:10 pm
Forum: Investing - Theory, News & General
Topic: Is the fear of actually LIVING through inflation overblown?
Replies: 80
Views: 5468

Re: Is the fear of actually LIVING through inflation overblown?

My parents tried to retire in 1967. They were in their 60s. They had a small home and small savings and got small SS income. Back then there was no medicare and no inflation kicker for SS. So they paid cash for medical and cut spending as inflation got worse in the 1970s. Then they had to go back t...
by av111
Sun Aug 02, 2020 1:42 pm
Forum: Investing - Theory, News & General
Topic: Is the fear of actually LIVING through inflation overblown?
Replies: 80
Views: 5468

Re: Is the fear of actually LIVING through inflation overblown?

Thank you for the lookback. If similar inflation were to happen again, all of the people in the refinance mega thread would feel bad about moving Just curious, did house prices increase during inflation in that time? What was the difference in price of the home between 76 and 80 see https://dqydj.c...
by av111
Sun Aug 02, 2020 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: 529 accounts, kids home due to covid, Room and Board
Replies: 28
Views: 2889

Re: 529 accounts, kids home due to covid, Room and Board

Will this be income to OP? Broken Man 1999 No. It's an expense to the OP, whether having paid money to Enormous State University or the local grocery store, etc. The expenses qualify the 529 withdrawals. IANAL When the OP collects rent and board from the students 529 account, I think it would be re...
by av111
Sun Aug 02, 2020 12:09 pm
Forum: Investing - Theory, News & General
Topic: Is the fear of actually LIVING through inflation overblown?
Replies: 80
Views: 5468

Re: Is the fear of actually LIVING through inflation overblown?

Thank you for the lookback. If similar inflation were to happen again, all of the people in the refinance mega thread would feel bad about moving Just curious, did house prices increase during inflation in that time? What was the difference in price of the home between 76 and 80 My parents had a 30 ...
by av111
Sun Aug 02, 2020 9:49 am
Forum: Personal Finance (Not Investing)
Topic: More than $500K profit on sale of primary residence
Replies: 24
Views: 3209

Re: More than $500K profit on sale of primary residence

OP Don't forget state taxes. You can list the improvements that you have made and add the cost of those to the price you paid. That will reduce the profit and the tax Looking at how you asked about saving taxes, I don't think charity was in the plan. I don't see how you would get more money using DAF
by av111
Sat Aug 01, 2020 9:25 am
Forum: Personal Consumer Issues
Topic: Who is your favorite fiction author and what is your favorite book of theirs?
Replies: 168
Views: 10365

Re: Who is your favorite fiction author and what is your favorite book of theirs?

I have to admit to a decades old addiction to anything by John D. Mcdonald. His Travis McGee series in particular. “I know just enough about myself to know I cannot settle for one of those simplifications which indignant people seize upon to make understandable a world too complex for their compreh...