Search found 717 matches

by av111
Fri Mar 08, 2024 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Cash or Asset Backed Mortgage at 7.75% for a $1.5M home
Replies: 24
Views: 2308

Re: Pay Cash or Asset Backed Mortgage at 7.75% for a $1.5M home

bombcar wrote: Fri Mar 08, 2024 1:34 pm That ABM sounds suspiciously high - have you talked with a banker?

Because those numbers seem like margin interest rates, not mortgage rates.

At $1.5m and already willing to pay entirely in cash, you should be able to get a custom-designed mortgage for maybe not 80% but certainly more than 0% and at better rates than 7.75%.

Investment returns can count as income - and with 7.5 million you could buy an annuity returning $350k a year or more.

The deciding factor may be the ability to get the cash with minimal tax impact. You can always get a mortgage later.
Good point. I wonder what is the rate on interest only loan against the portfolio at Morgan Stanley
by av111
Fri Mar 08, 2024 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Cash or Asset Backed Mortgage at 7.75% for a $1.5M home
Replies: 24
Views: 2308

Re: Pay Cash or Asset Backed Mortgage at 7.75% for a $1.5M home

On the other hand, I can get a 7.75% asset backed mortgage (rate provided by NSAB) and keep the money invested. Thanks! What is the return if the money is left invested? Can anyone know that for sure? Since there is no income coming in, aside from investment returns, I’d also vote cash. There’s enough money left over the OP doesn’t really have to work again. The mortgage is a risk and the OP’s situation is one where the only way to lose the game now is to take undo risk. Well if money is invested as the OP says, it must be generating some return or if in cash, must be set aside for some opportunities that could make returns. The money is in deed invested and is generating cash - $750K is in VBTLX, $500K in VFWAX (can't wait to sell), and $...
by av111
Thu Mar 07, 2024 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Cash or Asset Backed Mortgage at 7.75% for a $1.5M home
Replies: 24
Views: 2308

Re: Pay Cash or Asset Backed Mortgage at 7.75% for a $1.5M home

gtrplayer wrote: Thu Mar 07, 2024 9:56 pm
av111 wrote: Thu Mar 07, 2024 9:50 pm
wantrepreneur wrote: Thu Mar 07, 2024 1:29 pm On the other hand, I can get a 7.75% asset backed mortgage (rate provided by NSAB) and keep the money invested.

Thanks!
What is the return if the money is left invested?
Can anyone know that for sure?

Since there is no income coming in, aside from investment returns, I’d also vote cash. There’s enough money left over the OP doesn’t really have to work again. The mortgage is a risk and the OP’s situation is one where the only way to lose the game now is to take undo risk.
Well if money is invested as the OP says, it must be generating some return or if in cash, must be set aside for some opportunities that could make returns.
by av111
Thu Mar 07, 2024 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Cash or Asset Backed Mortgage at 7.75% for a $1.5M home
Replies: 24
Views: 2308

Re: Pay Cash or Asset Backed Mortgage at 7.75% for a $1.5M home

wantrepreneur wrote: Thu Mar 07, 2024 1:29 pm On the other hand, I can get a 7.75% asset backed mortgage (rate provided by NSAB) and keep the money invested.

Thanks!
What is the return if the money is left invested?
by av111
Wed Feb 28, 2024 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: FIRE-ing In, Quitting versus Getting FIRE-d - Talking to Boss Tomorrow
Replies: 148
Views: 22991

Re: FIRE-ing In, Quitting versus Getting FIRE-d - Talking to Boss Tomorrow

Meg77 wrote: Wed Feb 28, 2024 11:52 am I get about an email a month from the property manager
You are not self managing if you have a property manager. In that case, keeping the rental is more attractive than self management.

I think sfr pricing has legs primarily because of the current supply issues. If commercial re does not tank the overall market we might actually see 10 to 15% upside in prices when fed cuts rates

The costs linked to the timed need to replace major systems like roof, AC etc make this business challenging if it is run on low net cash. At some point, it becomes better to take the tax hit.
by av111
Wed Feb 28, 2024 9:42 am
Forum: Personal Finance (Not Investing)
Topic: FIRE-ing In, Quitting versus Getting FIRE-d - Talking to Boss Tomorrow
Replies: 148
Views: 22991

Re: FIRE-ing In, Quitting versus Getting FIRE-d - Talking to Boss Tomorrow

My net worth post divorce is about $4.5MM, $600K of which is home equity I have dutifully saved, maxed retirement, bought rentals, been employed, taken the safest and highest earning jobs I could find, and focused on networking and building my resume for 20 years now. (maybe self-employed or managing my rentals How much of the 4.5 my NW is real estate (rental and primary home)? What is the net income out of the rental properties? Well I'd love to dig into this and get everyone's thoughts if people care enough to keep reading. My balance sheet is a bit hectic, though I'm reassured at the global level that I'm OK based on just the net worth and spending levels alone. There is always nuance though. Cash - $250,000 Note Receivable - $275,000 B...
by av111
Tue Feb 27, 2024 10:28 am
Forum: Personal Finance (Not Investing)
Topic: FIRE-ing In, Quitting versus Getting FIRE-d - Talking to Boss Tomorrow
Replies: 148
Views: 22991

Re: FIRE-ing In, Quitting versus Getting FIRE-d - Talking to Boss Tomorrow

Meg77 wrote: Mon Feb 26, 2024 7:20 pm My net worth post divorce is about $4.5MM, $600K of which is home equity

I have dutifully saved, maxed retirement, bought rentals, been employed, taken the safest and highest earning jobs I could find, and focused on networking and building my resume for 20 years now.
(maybe self-employed or managing my rentals
How much of the 4.5 my NW is real estate (rental and primary home)? What is the net income out of the rental properties?
by av111
Tue Feb 27, 2024 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Why not convert all my funds to ETFs?
Replies: 59
Views: 6302

Re: Why not convert all my funds to ETFs?

I guess if you convert to Robin Hood to take advantage of their 3% match you are going to buy ETF only
by av111
Mon Feb 26, 2024 10:20 am
Forum: Personal Consumer Issues
Topic: Roof repair - reasonable?
Replies: 40
Views: 3656

Re: Roof repair - reasonable?

Not sure where you're located but it seems a little high. I had a roof replaced due to wind pre pandemic and it cost about that much. Things have gone up a lot so my figure may be off by a lot. Honestly it will depend on many factors. I replaced my roof last summer with 50 year shingles so not cheap (required by HOA). House is about 2200 square feet so not large. All bids I got (5) were between $20-22k. Behind me there are condo townhomes and they are paying $35k special assessment for similar sized houses, and I cannot fathom why because they are using cheaper shingles than I did. This is a MCOL area. Ten years ago folks in my neighborhood with the same 50 year shingles were getting the roofs done for $8k (my house was one of the last to ...
by av111
Sun Feb 25, 2024 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: High Salary (>$500,000) careers
Replies: 244
Views: 29140

Re: High Salary (>$500,000) careers

Nottingham wrote: Sun Feb 25, 2024 7:42 pm
av111 wrote: Sun Feb 25, 2024 6:48 pm For most software people - be in the Right place at the right time
While in reality 95% of people won't be able to
This is certainly a true fact about all high paying careers
by av111
Sun Feb 25, 2024 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: High Salary (>$500,000) careers
Replies: 244
Views: 29140

Re: High Salary (>$500,000) careers

Surgeons, investment (PE, RE, M&A), corporate law are generally careers where most who enter make serious money

For most software people - be in the Right place at the right time
by av111
Sun Feb 25, 2024 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: High Salary (>$500,000) careers
Replies: 244
Views: 29140

Re: High Salary (>$500,000) careers

Poetry. As a young teen I started off writing haiku, and then limericks, just to get my foot in the door and to see if I had what it takes. Over the next few decades I matriculated at a (middling) liberal arts university, studied hard, and progressed to villanelles, sestinas, sonnets and the like. By the time I was 38 I had landed a job and was awarded tenure at a third-tier state school, and finally could really dedicate myself to crafting long narrative poems in blank verse. This is when my salary really took off. Not only did they pay me big bucks, but I also received a faculty discount at the school cafeteria. Big salaries are do-able, but you need a muse. This is the post I’ve been waiting for … For high salary Law, IB, software, surg...
by av111
Sun Feb 25, 2024 11:23 am
Forum: Personal Finance (Not Investing)
Topic: In the event of an untimely death, what is the best way for family members to have immediate access to funds?
Replies: 53
Views: 5268

Re: In the event of an untimely death, what is the best way for family members to have immediate access to funds?

I am in my 50's and in good health, but it occurred to me recently that if I were to be hit by the proverbial bus and killed today, my sister and brother-in-law would end up having to do a lot of work to settle my affairs. (I am single with one minor child and both of my parents are deceased). What is the best way for my sister to have immediate access to, say, $5,000.00? If I open a separate HYSA at Ally with her named as the beneficiary, would it be quick and easy for her to access that money? My son is currently named as the beneficiary of all of my accounts. How financially strong and stable are the relatives? What will they need the 5k for? Have a conversation about what you want them to do with the 5k. Transfer is not going to be a b...
by av111
Sat Feb 17, 2024 1:36 pm
Forum: Personal Consumer Issues
Topic: [On-going Scams - Post them here]
Replies: 1372
Views: 166854

Re: [On-going Scams - Post them here]

Haven’t seen this posted yet so I thought I’d share a sad and sobering, but also highly engaging and educational story about a recent scam perpetrated on an established financial columnist for $50,000 cash. We all think we would catch on to the obvious red flags, but do we really know how we would respond under stress, and fear of physical harm? These are targeted attacks where the scammers not only know your information but are also local and have people nearby to facilitate the scam (in this case, to drive a car to victim’s house to pick up the cash). In this case, they also certainly knew she had at least 50k in cash in her bank account. The gist of the story is that victim gets call from Amazon informing her she is victim of identity t...
by av111
Sun Feb 11, 2024 5:09 pm
Forum: Personal Investments
Topic: Thoughts post layoff on retirement + side business
Replies: 34
Views: 4408

Re: Thoughts post layoff on retirement + side business

SB1234 wrote: Sat Feb 10, 2024 7:29 pm
av111 wrote: Sat Feb 10, 2024 6:55 pm Would there not be significant tax liability if all individual stocks are sold? How can we justify losing fed tax, state tax out of the profits? That will reduce the net worth a lot
Unless you have a way to offset the gains, this is not really a dilemma. everyone has to pay taxes on their gains.
Plus the markets has been known to reduce net worth much faster than taxes.
I salute your clear thinking and wonder if you would sell when faced with the same dilemma. I think creating a huge tax liability and also changing the way you have invested in the past based on some internet forums advice could be a terrible idea
by av111
Sat Feb 10, 2024 6:55 pm
Forum: Personal Investments
Topic: Thoughts post layoff on retirement + side business
Replies: 34
Views: 4408

Re: Thoughts post layoff on retirement + side business

Would there not be significant tax liability if all individual stocks are sold? How can we justify losing fed tax, state tax out of the profits? That will reduce the net worth a lot
by av111
Mon Jan 08, 2024 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: Scholarship/FAFSA Experience for Higher Income Families?
Replies: 60
Views: 8815

Re: Scholarship/FAFSA Experience for Higher Income Families?

Hello, I am slowly learning to understand the strategies behind saving for college and funding it. Current situation: One child is 7 and another on the way. Have a 529 and taxable brokerage for the former that we are contributing to for college and will start the same for the next one. our goal is to save ca, $100k per child. Income: Combined $250-300k annually. Question: is it worth filling out a FAFSA when the time comes? Aside from loans from the government, did any other families at relatively higher incomes get any useful funding or discounts? I’m not super concerned with state tuition but I live in a state where the state college isn’t the best (MO…it’s fine but say, across the border in IL, it is much better) and I’d imagine my chil...
by av111
Sun Jan 07, 2024 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Father Passed Unexpectedly - He Was Self-Managing 56 Rental Units
Replies: 42
Views: 9409

Re: Father Passed Unexpectedly - He Was Self-Managing 56 Rental Units

What are the tax implications of selling right now? How will the stepped up basis apply

Edited I guess it is moot since OP is not inheriting
by av111
Wed Jan 03, 2024 1:32 pm
Forum: Personal Investments
Topic: 1st Time Backdoor Roth Contribution
Replies: 26
Views: 2428

Re: 1st Time Backdoor Roth Contribution

Also can open a brand new TIRA account. Deal with the rollover IRA separately
--edit this may not help. See below post
by av111
Sat Dec 30, 2023 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Sell RSUs after holding a while?
Replies: 59
Views: 6306

Re: Sell RSUs after holding a while?

at my company, we get RSUs as part of our compensation. like most, there's a vesting schedule. however, unlike most, we have further restrictions after vesting. there's only a portion i receive that i can sell immediately, which i do. for the rest, even though i own the shares, and hold them in my brokerage account, i cannot sell/exchange those shares for another couple years. those couple years have passed and i'm able to sell some of these shares now. the "problem", is i have capital gains. even though i'll be taxed at the LTCG rate, i'm also at the peak earning years of my career, pushing me into higher marginal tax rates. this tranche is only 5% of my entire taxable portion of my portfolio, so in the grand scheme of things it...
by av111
Fri Dec 29, 2023 7:06 pm
Forum: Investing - Theory, News & General
Topic: Can someone explain to me what's actually driving returns?
Replies: 77
Views: 12626

Re: Can someone explain to me what's actually driving returns?

I've heard all the classic examples of what drives long term, positive returns for stock market indexes. Population growth, inflation, innovation, GDP growth, etc. But the other day I listened to a podcast from Ben Felix that showed multiple studies proving that GDP growth usually does not equate to positive stock market returns, even over time. Examples used were China(30 years of large GDP growth yet flat stocks) and some other countries. With this being the case, what is the actual fundamental driver of stock returns, I know inflation plays a part, but I always thought the main driver was companies becoming more efficient/profitable and the overall economy becoming better. If this is not true, then what am I really investing in? Can som...
by av111
Fri Dec 29, 2023 7:03 pm
Forum: Personal Investments
Topic: End of Year Backdoor Roth
Replies: 21
Views: 2323

Re: End of Year Backdoor Roth

lakpr wrote: Fri Dec 29, 2023 3:26 pm
av111 wrote: Fri Dec 29, 2023 12:02 pm Is it a big profit to go through these steps to convert like 6500 per person
Yes, ON AVERAGE, to the tune of $1000 per year on an outlay of $6500 per year.
See how I arrived at those calculations here: Link
Thanks for the calculation. It does sound like a bit of money if you calculate over a long time and and block money for all that time
by av111
Fri Dec 29, 2023 12:02 pm
Forum: Personal Investments
Topic: End of Year Backdoor Roth
Replies: 21
Views: 2323

Re: End of Year Backdoor Roth

Is it a big profit to go through these steps to convert like 6500 per person
by av111
Sun Dec 17, 2023 11:37 am
Forum: Personal Investments
Topic: I Messed Up How Do I Get Back In
Replies: 97
Views: 20970

Re: I Messed Up How Do I Get Back In

Retiring next year and got nervous about the economy. Panicked and had sold much of my stock funds (VTI,VUG,VGT). Current allocation in round numbers: 200,000 Emergency Fund 700,000 BND and TBills < 1 year 800,000 VTI/VUG 800,000 cash in IRA/Roth. The MM are paying 4.XX but we know that may not last. Desired allocation 50/50 I want to get back into the market, but how? I am OK with all at once but the market is so high now. Should I wait until there is some correction. A percent each month? Thanks PS No more listening to the financial "experts", they are so often wrong. The BH way is the only way going forward. It might not be all wrong. You know you sold at very high valuations. Nothing wrong with taking profits and keeping your...
by av111
Sun Dec 17, 2023 10:35 am
Forum: Personal Investments
Topic: Roth question, Retirement year 2, ages 69 & 68
Replies: 9
Views: 1624

Re: Roth question, Retirement year 2, ages 69 & 68

I am a bit far away from claiming Social Security or doing rmd or thinking about Irmaa. My comment is really only about the tax tail wagging the income dog. I think, generally, you should do exactly as your allocation or Comfort level tells you to do and not worry about the tax consequences on the Investments you are making now.

The future is unknown and taxes are only one variable in the overall picture (even they can change) I think including taxes in your decision making about future investments can make suboptimal results

I'm sure other people will respond more specifically to your questions
by av111
Sun Dec 17, 2023 10:26 am
Forum: Personal Finance (Not Investing)
Topic: How Much Do You Value Your Time At?
Replies: 126
Views: 21486

Re: How Much Do You Value Your Time At?

vnatale wrote: Sat Dec 16, 2023 8:29 pm
shel wrote: Sat Dec 16, 2023 12:12 pm I value my time at $1000 per hour. My wife values my time at $0.

Shall I take the average or the root mean square?
!!!!!!!!!!!!!!!!!!!!!
How much is my time worth when I try to learn these Concepts on YouTube?
by av111
Fri Dec 15, 2023 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: Move to CA realistic at retirement age?
Replies: 50
Views: 11725

Re: Move to CA realistic at retirement age?

Like other posters have said check the rents on Zillow I think you are underestimating them. If you are going to move here after 13 years I won't go out and buy a home right now. Your mind can change your situations can change and being a landlord remote landlord at that is going to be some work. If you like landlording work then yes go ahead and do this it's probably a good investment as well but don't take advice from me in this. Do your own numbers.
by av111
Fri Dec 15, 2023 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: How Much Do You Value Your Time At?
Replies: 126
Views: 21486

Re: How Much Do You Value Your Time At?

I am completely on the other side of the fence. I want to do only those things that I really like to do. Don't want to fix garage doors, don't want to drive to airport. If I can hire somebody to do basic things at reasonable cost I will hire the job out. I want to go out and play sports, I want to go meet friends, I want to take long walks or hikes, I want to watch TV with my spouse and talk to my kids. if anything gets in the way of that, it is much more expensive to me then the price I would pay somebody else to do the thing. I don't want to hold things back waiting for me to get to them. I have done that before. I have had months and months of delayed projects because I said I want to do this and then I call somebody to get it done and y...
by av111
Wed Dec 06, 2023 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: When to move to a continuing care retirement community (CCRC)
Replies: 101
Views: 16780

Re: When to move to a continuing care retirement community (CCRC)

How did you ultimately select your community after all the other options? How many different ones did you visit in person? It sounds like you're happy there! Our main criteria ended up to be-- Northern California for weather and liberal political climate. We moved from Michigan and Cape Cod more than 50 years ago and were happy in the SF Bay area all that time. When we got together almost 20 years ago we decided to buy a house, couldn't afford one in SF Bay Area so we moved to Sonoma County. Previously each of us with former partners had explored retirement in AZ, Washington State & Oregon and kept coming back to No. CA. We immediately knew when we saw the place we chose but we looked at a few others. We chose ours because the architec...
by av111
Mon Dec 04, 2023 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: When to move to a continuing care retirement community (CCRC)
Replies: 101
Views: 16780

Re: When to move to a continuing care retirement community (CCRC)

How did you ultimately select your community after all the other options? How many different ones did you visit in person? It sounds like you're happy there! Our main criteria ended up to be-- Northern California for weather and liberal political climate. We moved from Michigan and Cape Cod more than 50 years ago and were happy in the SF Bay area all that time. When we got together almost 20 years ago we decided to buy a house, couldn't afford one in SF Bay Area so we moved to Sonoma County. Previously each of us with former partners had explored retirement in AZ, Washington State & Oregon and kept coming back to No. CA. We immediately knew when we saw the place we chose but we looked at a few others. We chose ours because the architec...
by av111
Thu Nov 30, 2023 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Another California Prop 19 Question [Want to preserve valuations]
Replies: 14
Views: 1402

Re: Another California Prop 19 Question [Want to preserve valuations]

The grantor/original trustor of a revocable living trust typically retains the present beneficial interest in the property until death. At that time, California county assessors will look to who received the present beneficial ownership of the property under the terms of the trust at the time of the grantor's passing. For this purpose, a trust holds bare legal title and never holds a present beneficial interest; the present beneficiaries of the ownership interest in the property will be determined as dictated by the terms of the trust. A person who resides in the property may or may not have received an ownership interest in the property. Generally, that change in ownership at the time of the grantor's death will trigger a reassessment of ...
by av111
Tue Nov 28, 2023 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Sell or Rent
Replies: 20
Views: 1791

Re: Sell or Rent

Background 1. Current home Value about $3M. Bought for $950 in 2000. 2. Moving to another home and wondering if we should keep the current home or put it for rent. Current estimated rent is about $5-6K per month. 3. Considerations - Prop 19 allows taking the current property tax base to the new home and it is going to be about $30K savings per year in Property tax 4. $500K in waived capital gains What do the experts here suggest that we should do? Your profit is close to 2m. Remove 500k exemption. Remainder profit subject to Fed and CA LTCG (you did say prop 19) is 1.5m. Taxes would depend on your income. Assuming 30% or 450k. So you are left with 1.55m profit (+950k) net of taxes. In addition if you are moving to another 3m home, you can ...
by av111
Tue Nov 28, 2023 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Another California Prop 19 Question [Want to preserve valuations]
Replies: 14
Views: 1402

Re: Another California Prop 19 Question [Want to preserve valuations]

What is the "specific period of time" SIL is allowed to stay in the home? The discussion may be irrelevant if the siblings want to sell the home to a non family member within a year. I "think" if transfer of ownership has happened automatically to the trustees when the MIL passed, tax values should stay at the level MIL was paying. If not, they may adjust higher in 1 year If you find some legal opinion on this, can you please post the source and advice That sounds more like an oversimplification of Prop 58 (Reappraisal Exclusion For Transfer Between Parent and Child). Prop 58 is no longer valid and has been replaced by Prop 19, which requires the child to establish and maintain the residence as their primary. And at mos...
by av111
Tue Nov 28, 2023 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Another California Prop 19 Question [Want to preserve valuations]
Replies: 14
Views: 1402

Re: Another California Prop 19 Question [Want to preserve valuations]

All, I could use some insight on Prop19 impacts as well … Background : I am the Executor for my MIL estate and Successor Trustee for her RLT. - She passed in 2023 - RLT was setup in 2022 and her home was moved into the trust and re-titled with the county. - Home was owned free and clear - SIL lived in the home with MIL for many years (their primary residence) and was the primary caregiver - Trust allows my SIL to remain in the home for a specific period of time as long as she covers the Property Taxes, Insurance and upkeep. - When SIL vacates (or time period expires, conditions not met) the home will be sold and proceeds split with between siblings. - All siblings were notified about the provision while MiL was alive and are onboard with t...
by av111
Mon Nov 27, 2023 12:26 am
Forum: Investing - Theory, News & General
Topic: What non-index fund investment made you a lot of money?
Replies: 141
Views: 26744

Re: What non-index fund investment made you a lot of money?

TipsQuestions wrote: Sat Nov 25, 2023 9:18 pm Most of my wealth is due to good old LBYM and shovelling money into index funds. With one exception - over 25 years ago, someone on the Vanguard Diehards forum told me to sell my tech stocks and invest in Berkshire Hathaway. Not quite ready to believe in market efficiency, and under the temporary spell of Warren Buffett, I did so. By the time I was an index fund convert, the BRKB cap gains were locked in, and I just held onto it. It's done well, and allowed me to retire a few years early (especially vs those now defunct tech stocks). Complete luck, but I'll take it.

What gave your nest egg a lucky boost?
Real estate. Bought in 2002 (4x+20 years imputed rent) , 2012 (3.5x + rent) and 2021 (1.2x +rent) .
by av111
Sun Nov 19, 2023 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Should I Buy A House?
Replies: 79
Views: 8492

Re: Should I Buy A House?

I always feel people should buy a home when they need it and if it fits in their earning and expenses . This is always a difficult decision. It requires tremendous financial discipline and need to control your expenses early on. But we are generally optimistic about the ability of human ingenuity to push up the economy in long term. So young people are expecting to increase their income as time goes. Yes there are recessions but 85% of people generally retain jobs.

Opinions on this forum should be treated like opinions only. They a result of experiences and mindset of people who have lived life differently and have different desires and experiences from life. No one size fits all.
by av111
Thu Nov 16, 2023 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Tales from this insane real estate market [Home sales]
Replies: 2923
Views: 521069

Re: Tales from this insane real estate market [Home sales]

The issue is admittedly more personal, than market-dependent. I can't buy, until work/retirement issues are sorted, and that might not be for several years. If the housing market keeps galloping upwards in these ensuing years, it will have felt even more frustrating, to be a renter. The alternative is to buy now, on speculation, without regard to where life might take one, in 3-5 years. So which is the more foolish gamble: to buy now, essentially on impulse - or to wait until houses are substantially more expensive? Don't buy if, to you, other priorities are more important/ relevant than staying in an owned house. This is a personal choice. However if buying a home is more important for family and children reasons, and you have money, buy ...
by av111
Sun Nov 05, 2023 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Home Sellers Win $1.8 Billion After Jury Finds Conspiracy Among Realtors
Replies: 421
Views: 47245

Re: Home Sellers Win $1.8 Billion After Jury Finds Conspiracy Among Realtors

Because then the number of buyers using a realtor would likely drop drastically and there would 1) be way less commissions to go around and 2) the seller's agent would have to do more work (to do the things the buyer's agent usually does). You are trying to disrupt the racket. :shock: Because the NAR has a rule that they will not list a property on the MLS unless there is a buyer commission of at least 2%. That is part of what the lawsuit is about. The NAR has a rule forbidding negotiation on commissions below a certain value. Just recently in response to this lawsuit and the Dept. of Justice investigation, NAR has loosened this rule -- wink, wink -- but local MLS services are free to stick to the old rules requiring a buyer's commission f...
by av111
Sun Nov 05, 2023 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Merit Scholarships - Advice and Strategies?
Replies: 109
Views: 12088

Re: Merit Scholarships - Advice and Strategies?

Our youngest is interested in computers and space research.. He is seriously looking at some UCs (California residents) and a few outside schools like Georgia tech, uiuc in addition to private ones like USC

Do you think any of these will be a better option for employment and college costs
by av111
Sat Nov 04, 2023 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Merit Scholarships - Advice and Strategies?
Replies: 109
Views: 12088

Re: Merit Scholarships - Advice and Strategies?

Texasdiver this thread is three years old — where did your second daughter end up going to school? University of Washington. She's now a junior, majoring in Biology. Turned out to be an excellent choice for her. She is thriving and loving it. She's worked on 3 different research teams so far as an undergrad and now has a paid position working in the genomics lab. I have a hard time coming up with a single thing she is missing by not paying an extra $50k per year to attend a fancy private school. Daughter #3 is somewhat less academic and is currently applying to Washington State, Western Washington, Colorado State, and a couple of local privates: University of Puget Sound and Seattle University. Congrats on getting what you and your daughte...
by av111
Thu Nov 02, 2023 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: Merit Scholarships - Advice and Strategies?
Replies: 109
Views: 12088

Re: Merit Scholarships - Advice and Strategies?

Traveler wrote: Sat Feb 08, 2020 9:43 pm I grew up in Portland and was basically paid to attend Oregon State (presidential scholarship plus numerous other one-off scholarships). I would take UW over Reed any day of the week but it probably depends on what your daughter wants to study and whether she wants to be at a large or small school.
When was that and were these scholarships merit based or need based? My son is a senior and deep into college app process. He keeps on asking me to fill up FAFSA so he can get scholarships and I pooh pooh it saying that FAFSA estimator says 100% EFC so no point. Wonder if I there is a chance to get some of those one-off scholarships. Won't be the first time I have been blindsided
by av111
Thu Nov 02, 2023 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: Merit Scholarships - Advice and Strategies?
Replies: 109
Views: 12088

Re: Merit Scholarships - Advice and Strategies?

texasdiver wrote: Sat Feb 08, 2020 3:08 pm I'm guessing that 4.0 GPA plus 1400 SAT already gets her admission into most of the places she is considering like UW, UO, Lewis & Clark, Occidental, Santa Clara, etc.
Say one kid has 4.0 with pre-calc in senior year and another has 4.0 with Linear algebra and physics C. How can all 4.0 grades be considered same?
by av111
Sat Oct 28, 2023 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Sell house at a discount to son
Replies: 18
Views: 2342

Re: Sell house at a discount to son

Did some research and found this: “ If you lend someone money at a “below-market-rate” of interest, you may owe tax on what the IRS calls "imputed interest," even if little or no interest is paid to you. The government sets a minimum loan interest rate, known as the Applicable Federal Rate, or AFR, each month.” I’m stumped! This is between family members and a low interest loan seems (to me) like it could also just be considered a non-taxable gift. This is way more complicated than I thought it would be. Not sure if you answered the question about the profit on the sale of the home. Is it taxable? If yes maybe rent it out and pay son to fix it? Here you can pay almost anything for his effort and neutralize most of the rent income...
by av111
Tue Oct 24, 2023 9:00 pm
Forum: Investing - Theory, News & General
Topic: Time for junk bonds?
Replies: 207
Views: 19966

Re: Time for junk bonds?

I would assume that the risk/reward of junk bonds has already been factored in by the professional (junk) bond traders and that they are no better or worse an investment now than they have ever been. Unless you know something they don't. In early 2022, junk bonds yielded 4%. Now they're over 8%. Are they twice as risky now? If not, then your statement would not be correct. I rather think that the risk/reward ratio you mention is not kept constant over time as you claim, why would it. I think the market revalued those bonds so they can stay competitive. If Treasuries yield 5%, then who would buy a junk bond yielding 4%. While market can be inefficient, I think risk has doubled in your example. Suppose a company has bad balance sheet and bad...
by av111
Thu Oct 12, 2023 3:22 pm
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 4535
Views: 625706

Re: What frugal thing did you do today?

Bought a lottery ticket and won 1.7 billion. Now can't figure out how to spend it all in 30 years.. Oops need to cross post in some other thread where people are trying to spend
by av111
Tue Oct 03, 2023 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Suggest jobs that can provide enough pension so you do not have to depend on investments
Replies: 3
Views: 745

Suggest jobs that can provide enough pension so you do not have to depend on investments

Hello all Inspired by the "Are we seat warmers" thread below, I wanted to discuss a thought that could help some young person in the early stages of their career. https://www.bogleheads.org/forum/viewtopic.php?p=7484541#p7484541 What jobs are available today to young people (less than 30 years old) that can provide adequate pension in retirement so they do not need to save anything? OP of the thread "Invictus002" and their spouse had jobs that would pay 180k in pension when they retired at 52 yo. "Adequate" could mean 50k to one and 500k to others. For the purpose of this discussion, I suggest we set the total pension to 100k. Do you work in such a job? If a person graduating today wanted to get in, what would ...
by av111
Mon Oct 02, 2023 7:05 pm
Forum: Investing - Theory, News & General
Topic: With rising yields, owning a home looks less attractive
Replies: 183
Views: 17469

Re: With rising yields, owning a home looks less attractive

tcrez wrote: Mon Oct 02, 2023 6:18 pm
wwhan wrote: Mon Oct 02, 2023 6:14 pm Owning a home in retirement provides a level of contentment, that rent generally does not approach.
Thats a personal decision of course, but if I had that 2.5 million home and 1 million of savings and was about to retire, I might feel like having 3.5 million in savings and no home would give me more peace.
1 million saving is not that bad. Depends on the situation. In a recent thread, a government employee was saying that they will get about 180k in pension after retiring at 65. With that pension you really don't need savings
by av111
Sat Sep 30, 2023 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: deleted
Replies: 84
Views: 9766

Re: Are we seat warmers?

Clearly OP is well set in a secure challenging role that pays 2x their expense without requiring extra work and comes with with a pension that is equal to a 5m bonus at 52 yr age and probably low cost Healthcare for life

Why would a new graduate not take such a job today vs working in a startup? I mean if you are graduating today in an engineering role, won't you be better off joining government and retiring at 52 with similar benefits ?
by av111
Wed Sep 27, 2023 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Passive Income Streams
Replies: 96
Views: 14400

Re: Passive Income Streams

montanagirl wrote: Wed Sep 27, 2023 9:12 am
TheDDC wrote: Wed Sep 27, 2023 12:29 am Side gig (LLC) - I do Microsoft 365 tenant creation, onboarding, configuration which includes Microsoft licensing sales. I make a % of invoice even after the customer has finished paying me T&M or per project. Plenty of other examples in the IT MSP realm. The only time the income stream gets reduced is when a customer cancels their licensing sub (which never really happens... most every business large and small has a Microsoft 365 presence).

-TheDDC
Sounds like earned income to me. What is pasdi e about it?
Like tutoring
by av111
Wed Sep 27, 2023 12:37 am
Forum: Personal Consumer Issues
Topic: Eggs
Replies: 150
Views: 17858

Re: Eggs

Right now my favorite is cheesy fried egg.

Break two eggs in hot pan with a little oil
Add salt and pepper to taste.
Break a slice of pepper jack cheese into small pieces on top of the eggs
Cook 30 s
Flip.. Let the cheese grill for 30 s or so
Enjoy a very filling meal right after playing or hiking in the morning. Make a spinach banana pineapple smoothie with sambazon juice to go with it for a truly decadent experience in 15 minutes or less