Search found 80 matches

by LearnFromMistakes
Thu Aug 28, 2008 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Effect of Olympics on Real Estate Prices?
Replies: 16
Views: 4223

PS 5@50 wrote:
Deacon Mike wrote:[As far as 2016, my money's on Rio. The games have never been in South America.
Mexico City? 1968?
Mexico is classified as "North America". ;)
by LearnFromMistakes
Sat Aug 23, 2008 11:07 pm
Forum: Personal Finance (Not Investing)
Topic: I saved over $50 mo. on phone service w/home & cellphone
Replies: 21
Views: 5902

I keep my AT&T land line for emergencies. During hurricanes in the last 6 years, cell phones were rendered almost completely useless. People can't call you because all the circuits are tied up and you can't call them either. Since it only costs $22.70 a month I haven't dropped my land line. (This is bare bones minimum) I had considered going with Vonage to save a few more bucks, but I'm more likely to lose my internet service during hurricanes than I am to lose my land line service (Hasn't happened yet during the last 3 hurricanes). My cell phone plan is with AT&T and we get 550 mins a month to share b/w our two phones (Family Plan) for $67.80 a month. We've never used more than 550 mins in a month and already have several thousand ...
by LearnFromMistakes
Tue Aug 19, 2008 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: FICO tail wagging personal finance dog?
Replies: 19
Views: 4197

Who cares what your credit score is you never borrow money? (I know and realize there are exceptions to this like car insurance) My goal in life isn't to borrow money at the best possible rate I can get, but to NEVER NEED to borrow money at all! I recently cancelled one BoA CC with a 30k limit on it and called my other CC companies (Discover and CitiCard) to lower my limits from 15 and 20k down to 10k on each. I recently opened a Chase Freedom card but requested a maximum limit of 5k for that card so I have a maximum credit line of 25k for all 3 credit cards I currently have. Did this help or hurt my credit score? Don't know and don't care. Not all lenders use credit scores anyway so its possible to still get decent rates on loans with comp...
by LearnFromMistakes
Tue Aug 19, 2008 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: MIT Study: People pay 59%-113% more when using credit card
Replies: 19
Views: 5486

I like using Cash Back credit cards for utilities since I don't think I'm going to run the A/C cooler or leave the lights on longer just because "I'm paying with credit". Plus its nice having most of my bills automatically paid every month without ever lifting a finger. For the monthly bills I have that don't accept CC payments I use ACH bank drafts. The only bills that I don't auto pay are my CC's since I like to monitor that to insure there are no errors before making a payment. Now that I've started using a budget where I "pencil and paper" track my expenses I can use a credit card without any worries since I know exactly how much I have spent in any category and how much I have left to spend. I tried using MS Money t...
by LearnFromMistakes
Tue Aug 19, 2008 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Letter to alter 401k plan
Replies: 54
Views: 12925

Well, it's been two weeks since I sent the letter and still no response. I gave both my mailing address and email address to the 401k liasion. I kinda figured this would happen. Anyway, I was planning on resending the letter along with some more specific questions. That's what I'd like some input on. I was thinking about asking how the specific funds in the plan were chosen. Also, maybe throwing in another example of the effects of costs over time. Any other suggestions? Salem, I feel your pain! I work for a local not-for-profit hospital that uses Prudential as our 401k plan provider. I have had little to no success in bringing about changes. Since I work in the same building as the accounting and finance staff I have started educating the...
by LearnFromMistakes
Wed Aug 06, 2008 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: "The Ten Worst Insurance Companies in America"
Replies: 45
Views: 12078

I'd be much more interested in seeing the list of the top ten best insurance companies in America. THANK YOU! My thoughts exactly! I will say that when I left Allstate and switched to a subsidiary of Liberty Mutual, I saved $1,400 a year b/w my car and auto insurance and that was keeping the same level of coverage. I have been fortunate that I've never needed to use my home or auto insurance yet. While the article relays many stories of Insurance companies screwing over the little guy, I know from several of my co-workers experiences that trial lawyers have tried to screw them over by filing fraudulent lawsuits to collect money from insurance companies. Mainly in situations where someone slams on the brakes in hopes of causing a rear end c...
by LearnFromMistakes
Sun Aug 03, 2008 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Do you use cash back credit cards?
Replies: 88
Views: 28243

Re: Correct, but...

tibbitts wrote:I believe you still owe the tax if the full purchase price was deducted. I get all kinds of income for which I don't get a 1099, but I still report it. You don't (generally) 1099 the plumber for fixing a leak, or the mechanic for fixing your car. Yet they owe tax on the income.

Paul
You are an more honest citizen than I. :) If I don't receive a 1099 or some other tax form, I don't make a habit of keeping track of all my income. I guess it could be debated if its really income though. They are actually giving you your own money back so to me its more like a rebate than income.

Do you report rebates checks on your taxes as well?
by LearnFromMistakes
Sat Aug 02, 2008 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Do you use cash back credit cards?
Replies: 88
Views: 28243

mike_slc wrote:This is the first year I've used a cash rewards card and it's paying off handsomely.

Are there any tax implications to the cash you get back?
Not in my experiences. I've never had a credit card company send me a 1099 or any other tax forms that I would have to turn in with my taxes.

Take care,
Brian
by LearnFromMistakes
Thu Jul 31, 2008 4:38 pm
Forum: Personal Consumer Issues
Topic: How would your life change if you got a huge windfall*?
Replies: 31
Views: 7247

tommy_gunn wrote:that is what the avatar is, but I do not own one currently

my s2000 lease is up shortly, and am considering a 5 series, unless I drive my beater 95 camry for a while and wait out the economy/market/etc

not sure I want to blow the money on a bmw right now, but damn do I love them
I own an e46 330 and its been a fantastic car so far. Be wary of the new 5 series though. My brother in law is a tech at the local BMW dealer and he's seen quite a few 2003 5 series that are just out of warranty and the owners are having to sell them because they can't afford the repairs. If you plan on leasing it then I wouldn't worry about it.
by LearnFromMistakes
Thu Jul 31, 2008 1:29 pm
Forum: Personal Consumer Issues
Topic: How would your life change if you got a huge windfall*?
Replies: 31
Views: 7247

tommy_gunn wrote:And buy the 550i I want with cash ...
Do you currently own a BMW? I saw your avatar appeared to be a 5 series so I wasn't sure if that was your current vehicle.
by LearnFromMistakes
Wed Jul 30, 2008 11:19 pm
Forum: Personal Consumer Issues
Topic: How would your life change if you got a huge windfall*?
Replies: 31
Views: 7247

Re: How would your life change if you got a huge windfall*?

mathwhiz wrote:windfall* = at least $2 million after taxes
I'd retire around age 45. :D

I'd also probably take a lot more risks at work with my career since I could follow through on ideas without worrying about losing my job. It would be refreshing to speak up at the employee forums and ask those questions that everyone is thinking but no one has the guts to ask when the CFO or CEO asks if anyone has a question. :twisted:
by LearnFromMistakes
Wed Jul 30, 2008 11:06 pm
Forum: Investing - Theory, News & General
Topic: 2008: Non-itemizers can now deduct property taxes
Replies: 90
Views: 16519

Well this is a non-political forum so I'll leave at this - the higher your wealth the higher the insurance value of maintianing stability and defending the country (from an economic perspective) and the higher your obligation to your fellow man (from a social justice/ethics perspective). I am in the highest tax bracket and more than happy to do my part. I see that as a personal opinion not so much as a political opinion. I can respect your opinion on such matters even if they differ from my own. :) This is crazy - people are time opressed as it is and now you want a direct democracy to determine day to day policy? If anything this would raise the power of well funded lobbyist who can rely on 30 second, substanceless commercials to reach th...
by LearnFromMistakes
Wed Jul 30, 2008 9:35 pm
Forum: Investing - Theory, News & General
Topic: 2008: Non-itemizers can now deduct property taxes
Replies: 90
Views: 16519

Let's see they are not progressive, they would raise taxes for the majority of the country (or not be revenue neutral which rasies the question what will be cut). If they don't replace the payroll tax it actually means the U.S. will have a regressive tax system. Wow, I actually see a non progressive tax structure as a positive not a negative. While looking through some old high school papers I found one I had written that supported higher taxes for "rich people" because they could "afford to pay it". :lol: It amazing how much my perspective has changed since I moved out of my parents nest and became a tax paying citizen myself. What in them prevents lobbyists from changing the definition of income/revenue to suit them, ...
by LearnFromMistakes
Wed Jul 30, 2008 6:27 pm
Forum: Investing - Theory, News & General
Topic: 2008: Non-itemizers can now deduct property taxes
Replies: 90
Views: 16519

Yep, it's guaranteed that a flat "fair" tax will cut the taxes of those in the lower brackets. (It must be so the advocates tell us so, and it's "fair", right?) Let's see how that works: We know that if you want to compare it with the current system, it will be revenue neutral, i.e., generate the same revenue as the current system. We also know those in the highest brackets will pay less, by definition. So I guess those in the lower brackets will also pay less, right? No? Come on, we're constantly told it's a "fair" tax, that must be the case. No? We're also constantly told that "flat" and "simple" are the same, that is, we can't simplify the system without making it a flat also. What's wro...
by LearnFromMistakes
Wed Jul 30, 2008 5:55 pm
Forum: Personal Investments
Topic: Roth IRA / Joint Tax Return Question
Replies: 2
Views: 1502

avalpert wrote:No, as long as you are married during the tax year, and your joint income is above $169k if filing jointly or if her income is greater than $10k if filing spearately and you live together than she cannot make a Roth contribution. If you do not live together at any point in the tax year and are filing separately than she has the same limits as a single filier.
So, the answer would be "Yes" you can IF your joint income is LESS than 169k. (Unless I misread avalperts reply)

I like positive answers better than negative ones. :)

Take care,
Brian
by LearnFromMistakes
Tue Jul 29, 2008 11:20 pm
Forum: Personal Finance (Not Investing)
Topic: Do you use cash back credit cards?
Replies: 88
Views: 28243

Well I couldn't take it anymore. I stopped by my local Chase branch and signed up to get a Chase Freedom card for my wife and myself.

Just wanted to thank everyone for sharing information concerning their cash back reward cards!

Take care,
Brian
by LearnFromMistakes
Tue Jul 29, 2008 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: Home prices drop record 15.8%. How much more to go?
Replies: 28
Views: 5988

Well I hope that's the case for where I live (Louisiana) since my home is being reassesed for taxes this year. In 2004 my home value was assesed at 126k, unchanged from when I purchased it in 2002. I guess that means I overpaid quite a bit when I purchased my home for $132k? :oops:
by LearnFromMistakes
Tue Jul 29, 2008 10:51 pm
Forum: Personal Investments
Topic: Creative Account Sharing
Replies: 5
Views: 1400

I'm pretty sure I'm missing something, but if you invested in your daughters 401k you'd have to wait until your daughter was 59.5 before she could withdraw the funds (penalty free) for you, right?

Take care,
Brian
by LearnFromMistakes
Tue Jul 29, 2008 5:45 pm
Forum: Personal Consumer Issues
Topic: Solar
Replies: 135
Views: 24060

For the people here who have solar panels:

During a full moon with a clear sky, do the solar panels produce any power?

Just curious
by LearnFromMistakes
Mon Jul 28, 2008 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: Do you use cash back credit cards?
Replies: 88
Views: 28243

MR_Rossi wrote:I use Discover for thier quarterly 5% cashback bonuses and Citi Dividend for everything else.

MR
Uh, what you just said. :) The only drawback with the Citi Dividend is that it caps out around $300 a year

I actually bank with Chase so I might have to look into their Chase Freedom card that many others have mentioned.
by LearnFromMistakes
Mon Jul 28, 2008 6:44 pm
Forum: Personal Consumer Issues
Topic: Solar
Replies: 135
Views: 24060

Possible but not very useful. Bike racers seem to be able to put out 0.2-0.3KW in races. Per http://www.cyclingnews.com/fitness/?id=powerstern "Road races longer than 90 minutes duration are generally between 11 and 14 Wkg0.67, whilst short criteriums are generally 14-18 Wkg0.67. Accordingly, for a 70kg rider, average power would be 190-241W for a road race, and 241-310W for a criterium." Me, maybe I could keep a couple of compact fluorescents going for a while. JW While I'm not 100% certain it appears the numbers they are provided are simply measuring the energy that a human body is consuming not the amount of work (ie KWH) that a human body could produce if powering a generator. Another idea I had was retrofitting sewer systems...
by LearnFromMistakes
Sat Jul 26, 2008 12:30 pm
Forum: Personal Consumer Issues
Topic: Solar
Replies: 135
Views: 24060

This is getting slightly off the topic of solar but something I've thought about more than once. Along the lines of cheap power generation... Would it be possible to alter a stationary bike with a reasonably sized generator that would allow a human to peddle at reasonable speeds that would generate useful amounts of power? If a wind turbine can start producing power with only 9mph winds and relatively small blades (see www.dualrotor.com ) I don't see why a human exercising an hour or two a day couldn't produce a measurable amount of power by peddling at a sustained speed of 10-15+mph. I guess the factor that determines the "cheapness" is how much would the generator cost as well as the hardware required to "tie in" to yo...
by LearnFromMistakes
Mon Jul 21, 2008 10:22 pm
Forum: Personal Consumer Issues
Topic: Solar
Replies: 135
Views: 24060

I have been looking into solar power for the last 4 years and have not been able to find anything remotely cost effective. I use about 10,800 kwh's a year or average about 900 kwh a month depending on how you want to look at it. I have natural gas for my heating (central and water). My utility company is LUS (Lafayette Utility Systems) and over the last several years my rates have varied from about 8 to 10 cents per kwh. My home faces due south (which I understand is ideal) and is about 1,500 sq/ft. If I could find a solar power solution (not looking for battery storage ability) that I could break even on in 5 years to 10 years tops I would be thrilled! From the websites I've been to, my total costs would be almost $40k and take me 30 to 40...
by LearnFromMistakes
Fri Jul 18, 2008 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: Do you carry a mortgage or HELOC?
Replies: 5
Views: 1960

Re: Scam

You have most likely been approached by an agent of United First Financial hawking their Money Merge Account method and software. It is structured as a MLM with the agents paying for the right to sell the $3500.00 software. Their "premise" is that you can use a HELOC to optimally pay your expenses and use income to pay off the HELOC and the extra discretionary income towards paying down the principle However, one goal of the HELOC is to wrap the $3500.00 so you don't feel the initial cost. The other is to mask the smoke and mirrors of the function of the software so you don't see how little value it adds. There has been an ongoing thread on www.fatwallet.com titled "United First Financial - Looking for the truth". That ...
by LearnFromMistakes
Fri Jul 18, 2008 3:30 pm
Forum: Personal Consumer Issues
Topic: Best steak marinade
Replies: 52
Views: 12070

boffalora wrote:Good point, Sooner. A good filet needs no marinating at all. The cheaper cuts are another matter.

Sometimes I'll buy sirloin on sale, cut it into serving size steaks and marinate them in plain old Italian salad dressing. Nothing fancy...use the store brand.
That's exactly what we do... off the shelf Italian dressing but we usually buy the cheap cuts of meat. :)

We also started adding Tony Chachere's Original Seasoning with the italian dressing for some added "kick". :D
by LearnFromMistakes
Fri Jul 18, 2008 3:25 pm
Forum: Personal Consumer Issues
Topic: RAID hard drive replacement... Tech guys out there?
Replies: 15
Views: 4529

Arthur, Don't just assume the drive is bad because the RAID controller says so. Connect the suspect drive to another PC as a slave and run a check disk utility (usually comes with the drive) to scan for physical problems on the disk. Most manufacturers I've dealt with, WD, Connor, Quantum, Seagate, have required me to run their utility to prove the disk was bad before replacing it under warranty. Since you purchased the drive from Best Buy that might be a different story. Also make sure you don't have any "environmental" things that could be causing your problems. Unshielded speakers is a perfect example, I fried my first PC's HD back in 92 or 93 when I moved the PC right in front of the 12" woofer of a 3 way tower speaker in...
by LearnFromMistakes
Fri Jul 18, 2008 1:29 pm
Forum: Investing - Theory, News & General
Topic: Individual stock picking compared to Index fund
Replies: 13
Views: 3633

Re: Individual stock picking compared to Index fund

avalpert wrote:An actively managed mutual fund is a portfolio made up primarily of individual stocks and bonds - and all the lessons about there performanace apply to individuals buying individual stocks and bonds.
Alvalpert,

I think there is a noticeable exception. Individuals that invest in stocks and bonds probably have pretty low expense ratio's since they aren't having to pay someone a salary, pay for prospectuses, mailings as well as advertising. I'm guessing an Individual's ER ratio would only be the comissions they pay when they make trades as well as the capital gains on the trades.

Take care,
Brian
by LearnFromMistakes
Fri Jul 18, 2008 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Do you carry a mortgage or HELOC?
Replies: 5
Views: 1960

I had some "Financial Advisor" try talk me into a HELOC along with some $3,000 software that would "magically" help me pay off my home mortgage and car loan faster, but when I kept asking for the details on how it worked I could never get a straight answer.

Seemed more like a scam to sell a $3,000 program. :)

Take care,
Brian
by LearnFromMistakes
Fri Jul 18, 2008 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Checking your credit score
Replies: 23
Views: 5588

Just a point. My son has automatic bill pay through his bank. One month several years ago the bank did not make their payments correctly so that they were charged late fees. When he found out and called the bank, the bank apologized and paid the late charges. What the bank could not change was the ding on their credit report. Jim Jim, Did your son actually check his credit report AFTER the late payment went through? I've made a half dozen "late" payments on credit cards and have a perfect credit record with those same credit card companies(Current with no record of late payments). It is my understanding that credit card companies consider it late when you are 30, 60, 90 days past due. Paying one week late has never shown up on my...
by LearnFromMistakes
Thu Jul 17, 2008 9:03 pm
Forum: Personal Investments
Topic: Rental Property vs. REITS
Replies: 34
Views: 9725

Bill, Thanks again for the in depth response. I'm actually in Louisiana but I can understand the confusion with the "LA" abbreviation. :) I will consider what you said about looking into "moderate" levels of leveraging after I have a feel for the business. That is interesting what you mentioned about the lender catching something with the property that you might not have noticed. I definitely need to educate myself rentals and things like the cap rates you've mentioned several times. I believe I can grasp the concept at a high level but don't completely understand it as far as how to calculate the rate for one property vs another. I'm guessing its like economies of scale, you have inelastic and elastic costs so as your u...
by LearnFromMistakes
Thu Jul 17, 2008 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: Checking your credit score
Replies: 23
Views: 5588

I don't want to opt-out of credit card offers in the mail. USAA is begging me to borrow $25,000 from them again without cost to me (0% interest, $0 balance transfer, no strings attached). That's another free $1000 for me which will pay for quite a few restaurant lunches. I understand that many folks don't like free money, but that's not a problem that I have. :) How much money have you made so far from 0% APR credit offers and how long have you been doing this sort of thing for? I did it once for a $5,500 plasma TV I bought but after I saw that my deferred finance charges were over $700 I wimped out and paid it off early. The idea of being a day late on a payment costing me over $700 was more than I could stomach. (That's one HECK of a lat...
by LearnFromMistakes
Thu Jul 17, 2008 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Disability Insurance premium- before or after tax?
Replies: 20
Views: 8897

I would pay the tax on the disability premium if I were you. My employer pays for my long term disability coverage and I do not have a choice so I will have to pay income tax if I ever need to collect on my long term disability. I'm suprised someone hasn't figured out the worst case scenario on investing the tax savings for $18.26 at a 33% tax rate that was invested at 7% for 30 years. ;) I would compare that number to the amount of total taxes you would pay if you started receiving your long term disability payments. Seeing the two numbers side by side should help make this an easy deciscion for you despite how we argue for one way or the other. Ok, I couldn't help it... I used an investment calculator to determine the amount of tax saving...
by LearnFromMistakes
Thu Jul 17, 2008 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Checking your credit score
Replies: 23
Views: 5588

Shortly after I got married, I opted out of pre-screened offers. At that time I received maybe 2 to 3 credit card offers a week and my wife received maybe 1 or 2 a month. Since I opted out, I have not received a single offer but now my wife (under her maiden name) receives 2 to 3 offers a week. We then went on line and opted out her maiden name with my same address (how does that make any sense?!?!) and we are waiting for it to take effect.

If you get the checks from the credit card companies definitely call them ask them to stop. I've also gotten in the habit of shredding any mail I need to get rid of that has my name, address or any account numbers on it.

Take care,
Brian
by LearnFromMistakes
Thu Jul 17, 2008 1:18 pm
Forum: Personal Investments
Topic: Rental Property vs. REITS
Replies: 34
Views: 9725

I have only invested in residential properties, but have looked into retail, office, & industrial a little bit. As Valuethinker mentioned, it is a very different game in terms of risk. One graybeard commercial broker once told me that successful commercial property investors are mostly all cash investors. Obviously this would not normally be the case for syndicated deals, but that is not what we are talking about here. If you own a single tenant commercial property, the risk of the business your tenant runs failing is a major risk. Where I live, I have seen small (and large) commercial properties sit vacant for years at a time, and the economy of this area is fairly strong. So, it becomes obvious when marketing a commercial property th...
by LearnFromMistakes
Thu Jul 17, 2008 10:58 am
Forum: Personal Investments
Topic: Rental Property vs. REITS
Replies: 34
Views: 9725

Small commercial properties have all the risks of residential properties, and then some. The only good news is the leases are for longer (but conversely, the tenants go bust). If you look at the US regional banking crash, it's all about lending to local developers and construction companies. Many places in the US are well overbuilt with strip malls, small offices etc. Caveat emptor. Small commercial can make you money, but you need to know your market cold, and you will sweat it. Remember if a toilet backs up at 3am, someone has to have fixed it by 9am when your tenant opens for business. Don't underestimate how dirty and tough people can be: tenants, contractors etc. Valuethinker, Thanks for the feedback. I think commerical real estate is...
by LearnFromMistakes
Wed Jul 16, 2008 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: question about life insurance. Emergdoc, Laura or others
Replies: 14
Views: 3123

That's why group life insurance is so wonderful... no underwriting and generally cheaper per thousand -- always buy the max your company offers. Absolutely incorrect. If you are healthy, group insurance is the most expensive and the worst decision you can make. Group coverage is not portable, and the rates are rarely guaranteed and can be terminated at the employers will. I would recommend buying from one company due to the fact the rates are banded and the cost per thousand decreases at higher rates. If you are healthy I would recommend buying 20 year term for many reasons. I don't think its fair to make a blanket statement for or against group life insurance. It all depends on the company you work for. Where I work I'm able to purchase s...
by LearnFromMistakes
Tue Jul 15, 2008 11:29 pm
Forum: Personal Investments
Topic: 24 year old losing money like it's his job!
Replies: 23
Views: 5849

Hi Brian, I'm Brian! ;) When I was your age I was in the EXACT same position you are currently in with stocks, unfortunately I was playing in the stock market at the tail end of the .dot boom in 2000. I managed to lose about $10k buying stocks from a newsletter stock picker. Been there, done that, got the t-shirt and then burned it. :) I would not recommend just selling every stock you currently own and buying mutual or index funds. I would consider setting stop losses for ALL of your stocks so you protect yourself from any sudden and large declines in stock price that would leave you with a huge loss of value in a short time period. I owned E-Machines stock before they filed for bankruptcy. I went to a 15 minute meeting, came back and saw ...
by LearnFromMistakes
Tue Jul 15, 2008 10:33 pm
Forum: Personal Investments
Topic: Rental Property vs. REITS
Replies: 34
Views: 9725

I've enjoyed reading the experiences of those who have done home and apartment rentals. Thank you for sharing your experiences as well as information on how you went about it. I have a few questions concerning rentals. Has anyone done commercial (non apt) rentals? Most businesses aren't open at 3am so that would seem to avoid some of the headaches associated with home and apt rentals. Although I guess it does require a much higher capital investment in most cases. Something I am currently considering in about 5 years time. This Nov I will have my current home (purchased in 2002) completely paid for. My wife and I plan to live here another 5 years while we save up to build a house on property her parents gave her. My goal is to build a house...
by LearnFromMistakes
Tue Jul 01, 2008 12:07 am
Forum: Personal Investments
Topic: 19 Year Old Newbie Seeks Fund Advice
Replies: 13
Views: 2446

IceNomad, You are already 90% of the way (if not more) to retiring a wealthy man by investing at your age. At age 31 I envy you greatly and wish I knew back then what you know now. :) I applaud your effort to avoid CC's like the plague and I have greatly reduced the # of cards I have (down to two now) as well as the credit limit on my remaining CC's (down to $10k each). While I agree with others that its possible to use CC's like a debit card by paying them off every month, always remember you are playing with fire and the odds are in time you will get burned! I've been burned a few times already and I've never intentionally carried a balance on my credit cards. While in college I incorrectly wrote a check and because of a 52 cent shortage ...
by LearnFromMistakes
Tue Jun 24, 2008 4:44 pm
Forum: Personal Finance (Not Investing)
Topic: IRS email message for my stimulus package refund
Replies: 11
Views: 3374

This is a total scam! How would the IRS know your email address? From the sound of your message you already knew that though. :)
by LearnFromMistakes
Mon Jun 23, 2008 10:56 pm
Forum: Personal Consumer Issues
Topic: What Book Are YOU Currently Reading? PART II
Replies: 1043
Views: 311204

Re: Honda Pilot Owners Manual

Honda Pilot Owner's Manual, I'm a car nut and visiting my daughter this week. My daughter just bought one, based in part on the favorable comments by "catchup" on this forum as well as Consumer Reports and several other car review sources on the internet. The dealer had a really good deal going on the last of the 2008 models (2009 model is just hitting the showroom). Sold it to her for $6625 under MSRP. Now she has a few extra dollars to invest in something that will hopefully appreciate. As a fellow car nut, reader of car owner manuals and prior owner of a 2000 V6 Accord (Sold to fund the purchase of an 06 Subaru STI), I would recommend calculating your future deals from the invoice cost of the vehicle rather than the MSRP. I've...
by LearnFromMistakes
Mon Jun 23, 2008 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: 'Pissed off purchases' to total $424 BILLION this year!
Replies: 3
Views: 1662

Re: 'Pissed off purchases' to total $42 BILLION this year!

Amazing! I can not believe she said Billion! Let's say the number is exaggerated by a factor of 10 by the interest group behind the poll; That's still $140 per capita and $175 per capita > 15 years old. If the figure is right, the average +15 yo spends almost $150 per month in 'POP shopping' and with all the singles out there the median for married people will even be higher! So... what are your experiences with financial infidelity? None... so far. :) I do the budget and we have joint bank accounts so unless she's making cash on the side I don't know about I think we are good. Usually the extent of her "wild spending" is me giving her 10 bucks to go spend at garage sales on a Sat morning and she comes back with a car full of nea...
by LearnFromMistakes
Sat Jun 21, 2008 10:39 am
Forum: Personal Investments
Topic: Using Part of Emergency Fund to Payoff Mortgage Early?
Replies: 28
Views: 6119

Gee, I'm going to be a little (or a lot) contrarian here. But I just don't understand this almost obsession with paying off the mortgage. Good heavens, your talking about a payoff amount of about $25K when you have about $200K in IRA's and $70,000 in taxable accounts, and a big emergency fund. What's the hurry? My mortgage is now down to about $10k right now after I used part of my EF to pay it down. I will admit my wife and I don't have a sound financial reason for paying off our mortgage. It is more of an emotional desire my wife and I have to be 100% debt free ASAP. If the mortgage were $200,000, then I would say absolutely not, do not put all your money towards paying it off. Why? Because if you run into financial difficulties and miss...
by LearnFromMistakes
Sat Jun 21, 2008 10:08 am
Forum: Personal Investments
Topic: Using Part of Emergency Fund to Payoff Mortgage Early?
Replies: 28
Views: 6119

There is no official definition, and the IRS has never issued a clear ruling; so you have to take your own position based on common sense. (Do not consider the following paragraph to be tax advice.) Two share classes of the same fund should be substantially identical, so you can't sell a mutual fund and buy back the ETF. There is more question as to whether two funds tracking the same index but issued by different companies (two S&P 500 index funds), or two funds tracking very similar indexes (Fidelity and Vanguard Total Stock Market Index), are substantially identical. Two funds tracking significantly different indexes (500 Index and Total Stock Market Index), or managed and index funds in the same class (Windsor II and Value Index), ...
by LearnFromMistakes
Sat Jun 21, 2008 10:03 am
Forum: Personal Investments
Topic: Using Part of Emergency Fund to Payoff Mortgage Early?
Replies: 28
Views: 6119

LFM, My husband and I opened Roth IRAs in 2000 and made the maximum contribution every year until 2007. We weren't able to contribute last year and we probably won't be able to contribute this year due to the income limits. Sophie, Thank you for your reply! This seems like a good "problem" to have and one my wife and I are currently working towards. :) By the way, you asked about Charles Schwab earlier and then said you didn't realize you could purchase non Vanguard funds in a Vanguard account. I'm just curious - is there a particular type of investment you have in mind? For now I'm only planning on purchasing mutual funds however I must admit I'm not 100% sold on the Low ER Index Investing method towards retirement. I would prob...
by LearnFromMistakes
Sat Jun 21, 2008 9:15 am
Forum: Personal Investments
Topic: Basic ROTH IRA Q
Replies: 20
Views: 3869

Re: Roth withdrawals

Taylor Larimore wrote:I agree that the IRS Regulations regarding IRAs are almost impossible to understand. This article attempts to explain:

http://www.fivecentnickel.com/2006/05/0 ... ributions/

Bottom line: "You can withdraw Roth IRA contributions any time and for any reason without tax or penalty."
Taylor,

Thanks again for providing the additional information on Roth IRAs!

Take care!
by LearnFromMistakes
Fri Jun 20, 2008 7:24 pm
Forum: Personal Investments
Topic: Basic ROTH IRA Q
Replies: 20
Views: 3869

Re: Correction

Sorry, this is incorrect. You can withdraw Roth IRA contributions any time and for any reason without tax or penalty. The rules for withdrawing earnings are more complicated: http://www.irs.gov/pub/irs-pdf/p590.pdf Taylor, Thanks for the correction and sorry if I caused any confusion. Could you explain to me what I'm not understanding correctly in the following excerpt from the IRS publication: A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. 1. It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and The only exception I see to this is if you are withdrawing contributions that were m...
by LearnFromMistakes
Thu Jun 19, 2008 7:33 pm
Forum: Personal Investments
Topic: Basic ROTH IRA Q
Replies: 20
Views: 3869

So essentially the only way to contribute to a ROTH IRA with the aim of avoiding capital gain taxes/growing tax free would be cutting a check from a Moneymarket account/cash? Dekal35, Based on the situation you described above, yes. If you sell any taxable funds you will be required to pay capital gains. Unfortantely Uncle Sam doesn't care that you plan on investing in your future with the proceeds of the sale. :( In the event I sacrifice the capital gain tax, I would still benefit from having the money now grow tax free during and upon withdrawal, correct? Correct! The money will grow tax free but there are conditions on withdrawing the money tax free. From what I understand you can ONLY withdraw the contributions (not the earnings) tax f...
by LearnFromMistakes
Wed Jun 18, 2008 10:24 pm
Forum: Personal Investments
Topic: 401k contribution
Replies: 13
Views: 3010

privateer wrote:Ok, well it has been obvious that posting off the cuff caused me to leave out information and generally not write as well as I usually do.

Thank you very much for all the comments. I'll write a little bit more intelligently later.
Privateer,

Don't sweat it, I only wish I was as wise as you are when I was your age. Assuming you keep up your current level of investing and saving for another decade, you are almost assured of retiring a multi-millionaire by the age of 65 (if not earlier!). I'm assuming you are in your early 20's right?

Take care!
by LearnFromMistakes
Wed Jun 18, 2008 10:11 pm
Forum: Personal Investments
Topic: Using Part of Emergency Fund to Payoff Mortgage Early?
Replies: 28
Views: 6119

It's not quite that simple; you cannot buy replacement shares in a substantially identical fund within 30 days before or after you sell at a loss, or the IRS will consider this a wash sale and not allow your loss. Grabiner, Thanks for the information! Do you know what Laura was referring to when she mentioned "Harvesting" losses? For example, you bought a mutual fund for $10,000. It has dropped to $9000. You sell it tomorrow (June 19) for a $1000 capital loss, which can reduce your tax bill. On or after July 20, you put $9000 back into the fund; you are in the same position as before, but you have saved on this year's taxes. (Alternatively, you could move the $9000 immediately to a different fund that was not substantially identi...