Search found 2240 matches

by Meg77
Sun Oct 15, 2017 9:10 am
Forum: Investing - Help with Personal Investments
Topic: F.I.R.E. Portfolio help please
Replies: 7
Views: 2008

Re: F.I.R.E. Portfolio help please

I'll chime in on the land question - I think you should sell it. If you didn't want to FIRE then it's a luxury you could afford to hold onto, but it seems like keeping it is at odds with your current plan. Also consider: if you had whatever the value of that property is now in your checking account,...
by Meg77
Fri Oct 13, 2017 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Refinancing: Appraisal Value Lowered During Underwriting
Replies: 14
Views: 1367

Re: Refinancing: Appraisal Value Lowered During Underwriting

Mortgage lender here. It sounds like you're stuck. Unfortunately I had this happen to me once on the consumer side and my lender (a former employer no less) got the appraisal report back and didn't like the cracks in the brick on one of the pictures. So they requested that I pay for a structural eng...
by Meg77
Thu Oct 12, 2017 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: How young is too young to retire.
Replies: 55
Views: 9224

Re: How young is too young to retire.

I don't think there is an age where you are too young to retire. Plenty of people are born with enough to "retire" and never launch traditional careers. Others inherit windfalls from deceased spouses or parents; still others earn millions or sell a company, giving them the ability to give up their c...
by Meg77
Wed Oct 11, 2017 4:40 pm
Forum: Investing - Theory, News & General
Topic: Managing home equity
Replies: 6
Views: 1207

Re: Managing home equity

I didn't read the entire article, but it seems to boil down to the following: borrow as much as you can against your home and invest it. You'll make more than the cost of the loan and end up better of than having simply paid off the mortgage. This isn't a new or complicated idea, despite the tone an...
by Meg77
Wed Oct 11, 2017 7:46 am
Forum: Personal Finance (Not Investing)
Topic: Want to save for a house down payment, but want some risky earnings potential..advice?
Replies: 4
Views: 481

Re: Want to save for a house down payment, but want some risky earnings potential..advice?

Should I just keep saving into the index fund? Yes. Moving up in house "slightly" isn't something you probably need to save for anyway assuming you have a good cash cushion and some home equity. You can always just get a small home equity line of credit to bridge the gap if you don't want to sell y...
by Meg77
Wed Oct 11, 2017 7:39 am
Forum: Personal Consumer Issues
Topic: Refund from Home Closing - 13+ years later (!?)
Replies: 12
Views: 2001

Re: Refund from Home Closing - 13+ years later (!?)

As a banker and real estate investor (and regular refinancer), I can tell you that it's perfectly normal to receive a small refund check a few months after a mortgage closing. This has happened to me personally several times. The title company - i.e. the title attorney - collects all funds from all ...
by Meg77
Fri Oct 06, 2017 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement Planning - What next?
Replies: 2
Views: 620

Re: Retirement Planning - What next?

You don't say how old you are now, but it sounds like you're still fairly young. And in any event you are doing great! Don't worry too much about all the "what ifs" in the whole rest of your life. You've tackled one thing at a time and made a lot of progress in a short amount of time. There's no rea...
by Meg77
Fri Oct 06, 2017 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Question About Long Term Care
Replies: 75
Views: 7310

Re: Question About Long Term Care

I haven't read all the comments, but my advice is to table this decision for a few more years and revisit when you turn 60. The odds of needing long term care prior to turning 60 are very low, and since the premiums adjust anyway you'd be effectively throwing away the money on the policy over the ne...
by Meg77
Fri Oct 06, 2017 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: Millionaire Next Door (Thank you Bogleheads)
Replies: 81
Views: 12679

Re: Millionaire Next Door (Thank you Bogleheads)

Congratulations to you both. What a meaningful milestone for you. Thanks for sharing your story. :beer
by Meg77
Fri Oct 06, 2017 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: We're Debt Free (Except our House)!
Replies: 34
Views: 3886

Re: We're Debt Free (Except our House)!

Congrats, much of the american population would love to achieve your current status and building blocks for the future. Assuming that your mortgage rate is low and that the mortgage interest deduction survives tax "reform", then I would personally keep my mortgage and focus on taxable investments o...
by Meg77
Fri Oct 06, 2017 3:24 pm
Forum: Personal Consumer Issues
Topic: Too much house? (nervous 1st time buyer)
Replies: 57
Views: 5446

Re: Too much house? (nervous 1st time buyer)

You can definitely afford it - heck, it sounds like you could pay cash for it if you wanted to. Personally in your situation though, what I would do (and what I did) is buy a place that you want to live in but that would also make a decent rental property. Plan to live there until you get married an...
by Meg77
Fri Oct 06, 2017 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Choose mortgage 15 vs 30 as well choose larger/smaller down payment
Replies: 7
Views: 1056

Re: Choose mortgage 15 vs 30 as well choose larger/smaller down payment

1. I am toying with either a larger down payment for a 30 year mortgage or a smaller (20%) down payment and a 15 year mortgage. From a cash flow perspective, we could swing either, but would (obviously) be tighter doing a 15 year. Is there a right answer There's not a right answer. A 15 year loan w...
by Meg77
Fri Oct 06, 2017 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Paper checks, how safe are they?
Replies: 31
Views: 2370

Re: Paper checks, how safe are they?

Banker here. Checks are just as safe as they ever were - moreso really as they are somewhat harder to forge now. Your name and address are public record and easy to find, and so are bank routing numbers (just google it). There's not much anybody can do with your account number though, which is the m...
by Meg77
Wed Oct 04, 2017 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement contributions - account options after Roth & Employer Plan?
Replies: 12
Views: 703

Re: Retirement contributions - account options after Roth & Employer Plan?

You could max out an HSA (health savings account) each year. They are really the best tax deal there is since you get a tax deduction for contributions AND can pull money out tax free - if it's used for medical expenses. Funds roll over from year to year, so many people use these as an ancillary ret...
by Meg77
Wed Oct 04, 2017 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Is this housing budget reasonable?
Replies: 28
Views: 1779

Re: Is this housing budget reasonable?

Are you okay if the house sits empty and you can't find a tenant you like for like 6 months? Are you okay losing the whole house including the down payment if you lose your job and don't have a renter and you can't pay the mortgage? If you're ok with the above, then go for it. Otherwise it's too ri...
by Meg77
Wed Oct 04, 2017 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: First time home buyer - gut check
Replies: 26
Views: 2682

Re: First time home buyer - gut check

Runner23, lots of wisdom here! (And based on her other posts, I believe Meg77 is a mortgage banker and landlord, so she knows what she's talking about). Agree with everything Meg said. Excellent post. Aw, thanks guys. :) Now I'm feeling like a sucker for being a homeowner myself! Haha. It has pros ...
by Meg77
Wed Oct 04, 2017 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Financial arrangement for in-laws in guest house
Replies: 13
Views: 1431

Re: Financial arrangement for in-laws in guest house

Just let them gift you money each year as they see fit. Then there are no contracts, no tax implications, and they can stop or adjust the amount over time if they want/need to. Individuals can give other individuals up to $14,000 a year tax free without having to even report it to the IRS. So the tw...
by Meg77
Wed Oct 04, 2017 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: First time home buyer - gut check
Replies: 26
Views: 2682

Re: First time home buyer - gut check

It sounds like you are doing great and can afford to buy, but we don't have enough info to know for sure. If your wife is the breadwinner and plans to stay home with kids at some point, then that's something to consider. If your income is super volatile, if you have 6 figures of student loan debt, o...
by Meg77
Mon Oct 02, 2017 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Budgets: how do you track irregular income and expenses
Replies: 35
Views: 3033

Re: Budgets: how do you track irregular income and expenses

It sounds like you've graduated from a monthly budget to an annual one - or at least a quarterly one if you really prefer. At a certain income/expense level - or when income/expenses are irregular enough - tracking your spending monthly is fairly pointless. Now tracking expenses is different from ac...
by Meg77
Mon Oct 02, 2017 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Cash on hand for emergencies
Replies: 42
Views: 3745

Re: Cash on hand for emergencies

My mom says she keeps enough cash in the house to buy enough gas at today's prices to drive and pick up each of her 4 children (and their families) and bring them back to the house where we grew up in Alabama. Her 4 kids are spread from TX to OH to KY so that's a fair chunk of gas $ - and I think sh...
by Meg77
Mon Oct 02, 2017 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Help raise mortage FICO score/plan for house purchase
Replies: 4
Views: 414

Re: Help raise mortage FICO score/plan for house purchase

Mortgage banker here. First of all please be aware that the VA loan is one of the absolute worst mortgages you can get! It has incredibly high funding fees and is one of the highest cost mortgages. I have family members in the military and think that it's a travesty that the VA option is so bad - pa...
by Meg77
Fri Sep 29, 2017 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Paid off Debt...credit score dropping and future mortgage
Replies: 34
Views: 3035

Re: Paid off Debt...credit score dropping and future mortgage

Meg77, could you clarify about scores dropping to zero? Is that a literal zero? It can't be, as there is a minimum. It can be "no score". Just like I didn't get a 0 on the SATs, as that's not possible because there's a minimum score. I didn't take that test so I have no SAT score. If your credit re...
by Meg77
Thu Sep 28, 2017 4:26 pm
Forum: Investing - Theory, News & General
Topic: Likelihood of a crash and lump sum investing
Replies: 32
Views: 3482

Re: Likelihood of a crash and lump sum investing

The odds are not 50/50. There are various studies that compare lump sum investing to dollar cost averaging, but they evaluate different historical periods (the last 20 years versus the last 50 years, for example) and different investment time periods (dollar cost averaging over 6 months versus 2 yea...
by Meg77
Thu Sep 28, 2017 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Paid off Debt...credit score dropping and future mortgage
Replies: 34
Views: 3035

Re: Paid off Debt...credit score dropping and future mortgage

Yep, it's very odd but definitely true. Technically I am not sure if it goes to "0" but it disappears; any credit inquiry will come back "no records found" or "no score" much like a young person's will if they have never borrowed in the first place. This is because records don't stay on your report...
by Meg77
Thu Sep 28, 2017 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: I am in the investment advice industry and I'm not sure if I provide any value
Replies: 67
Views: 7536

Re: I am in the investment advice industry and I'm not sure if I provide any value

I don't think there is a lot of value in hiring an investment manager, but there can be quite a bit of value in a financial planner/advisor. As for what I'd pay, I'd probably pay a flat fee for the construction of a comprehensive financial plan (they run $1,500 - $10,000 in my area) plus a $500 year...
by Meg77
Thu Sep 28, 2017 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: Certified Financial Planner (CFP) ???
Replies: 26
Views: 3237

Re: Certified Financial Planner (CFP) ???

A CFP is just another certification that lets someone offer investment advice, same as a Series 65. No. The Series 65 is offered by FINRA and is a regulatory requirement to offer certain services to the public. Nothing requires you to get a CFP. It is more akin to a MBA. It is a stamp of certain le...
by Meg77
Thu Sep 28, 2017 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Paid off Debt...credit score dropping and future mortgage
Replies: 34
Views: 3035

Re: Paid off Debt...credit score dropping and future mortgage

I'm a banker, and I think you are right to be concerned. Typically once you close all your credit accounts, your score will begin to drop after about 6 months and then it will really nosedive all the way to zero over the course of the next year or so. Reports vary and we don't know the exact algori...
by Meg77
Thu Sep 28, 2017 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: What best to do with 150k cash in medical school?
Replies: 14
Views: 1640

Re: What best to do with 150k cash in medical school?

Medical school plus living expenses may cost more than $150K, depending on where you choose to go/live. Once you have a detailed budget established, I would add up everything you expect to pay to attend school and live over X number of years, subtract $25K or so for an emergency fund, and borrow any...
by Meg77
Wed Sep 27, 2017 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: My Smartest Financial Moves
Replies: 62
Views: 6834

Re: My Smartest Financial Moves

About 6 years ago when I was in my late 20's, I bought a brand new Audi coupe for close to $50,000 with my first big bonus check (plus some savings). This was not my smart move, obviously. But when I totaled the car 6 months later (also not a smart move...), I took the insurance check and put 20% do...
by Meg77
Wed Sep 27, 2017 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Paid off Debt...credit score dropping and future mortgage
Replies: 34
Views: 3035

Re: Paid off Debt...credit score dropping and future mortgage

I'm a banker, and I think you are right to be concerned. Typically once you close all your credit accounts, your score will begin to drop after about 6 months and then it will really nosedive all the way to zero over the course of the next year or so. Reports vary and we don't know the exact algorit...
by Meg77
Tue Sep 26, 2017 11:29 am
Forum: Personal Consumer Issues
Topic: Lifestyle Creep
Replies: 142
Views: 13509

Re: Lifestyle Creep

I have consciously embraced lifestyle creep. I don't see why it is considered such a negative thing. It's one thing to limit consumption while you are paying off consumer debt or trying to establish a basic financial stability. But after that, as my income (and net worth) has increased, so has my l...
by Meg77
Tue Sep 26, 2017 11:14 am
Forum: Personal Finance (Not Investing)
Topic: HELOC w/ low or no initial draw
Replies: 11
Views: 1264

Re: HELOC w/ low or no initial draw

Home equity guidelines depend on your state. In Texas for example (where I'm a banker), home equity loans/lines of credit are not allowed to have balloon notes - therefore they must fully amortize. So home equity lines of credit must convert to a fully amortizing term note at the end of the draw per...
by Meg77
Mon Sep 25, 2017 11:16 am
Forum: Personal Consumer Issues
Topic: Lifestyle Creep
Replies: 142
Views: 13509

Re: Lifestyle Creep

I have consciously embraced lifestyle creep. I don't see why it is considered such a negative thing. It's one thing to limit consumption while you are paying off consumer debt or trying to establish a basic financial stability. But after that, as my income (and net worth) has increased, so has my li...
by Meg77
Mon Sep 25, 2017 11:04 am
Forum: Personal Finance (Not Investing)
Topic: AirBnB Hosting - In lieu of traditional rentals
Replies: 13
Views: 2334

Re: AirBnB Hosting - In lieu of traditional rentals

I talked to a realtor recently who has several investor clients scooping up condos and renting them out as Airbnb rentals here in Dallas. He said one guy buys with hard money loans at 14% interest and says he still nets double his carrying costs (presumably including utilities, cleaning, etc.). Of c...
by Meg77
Fri Sep 22, 2017 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Loans paid off!
Replies: 17
Views: 1294

Re: Loans paid off!

That's amazing!! Congratulations. :)
by Meg77
Fri Sep 22, 2017 10:02 am
Forum: Personal Consumer Issues
Topic: Bank Employees - comfort level of getting a loan through employer?
Replies: 9
Views: 821

Re: Bank Employees - comfort level of getting a loan through employer?

I've been in this situation. At a previous employer I took out several mortgages. However it was a sufficiently large bank that no one on my direct team saw my finances or managed the loan origination process. Employee loans were always directed for processing to another market I think (not that I k...
by Meg77
Fri Sep 22, 2017 9:40 am
Forum: Personal Finance (Not Investing)
Topic: 30yr Mortgage Refi Rates
Replies: 16
Views: 2836

Re: 30yr Mortgage Refi Rates

I'm surprised a banker would even say such a thing without understanding more details. A half percent on many loans could easily cover closing costs. I'd refinance every week if the differential had a payback under 12 months I'm a banker, and I very much doubt that makes sense to refinance your loa...
by Meg77
Fri Sep 22, 2017 9:28 am
Forum: Personal Finance (Not Investing)
Topic: Large Mortgage
Replies: 24
Views: 2633

Re: Large Mortgage

The fact that you have assets or will have assets to pay the mortgage off after 7 years makes me lean on the side of the 7/1 ARM. If you have the funds to pay cash or pay the loan off, keeping it means you are just playing an interest rate arbitrage game. If that's the case then go with the lowest r...
by Meg77
Tue Sep 19, 2017 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Age 40: Requesting Look At Portfolio
Replies: 22
Views: 3473

Re: Age 40: Requesting Look At Portfolio

Appreciate the replies. Couple things after posting last night still sitting in the back of my brain: The employer 401k match is 6%. I've been contributing 10%, even through I'm not happy with ML, but I've often thought of dropping to the match, 6%, and using the extra 4% to max the ROTH faster, wh...
by Meg77
Mon Sep 18, 2017 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Save/invest and buy house with cash - yes/no?
Replies: 16
Views: 1503

Re: Save/invest and buy house with cash - yes/no?

I have heard of it. Some Dave Ramsey followers eschew debt altogether and spend a few years in "Baby Step 3b" saving not just a down payment but the entire amount needed to buy a home. They forego all retirement investments during this time, focusing on the one goal of buying a home. (Dave doesn't l...
by Meg77
Mon Sep 18, 2017 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Help buying first house in Huntsville, Alabama
Replies: 12
Views: 1399

Re: Help buying first house in Huntsville, Alabama

My wife and I are planning to buy our first home when we move to Alabama to work in Huntsville in January. I was hoping to get any advice on this process. The job I'm getting is at a startup, $75k/yr salary. Mortgage banker here. You may have a problem qualifying if you haven't worked at least in t...
by Meg77
Mon Sep 18, 2017 1:57 pm
Forum: Personal Consumer Issues
Topic: How much do you spend on "entertainment"?
Replies: 50
Views: 4015

Re: How much do you spend on "entertainment"?

This doesn't sound like a budget issue - it sounds like you just aren't into the bar scene and feel out of sync with many of your peers. "I actually feel as though I've transcended that phase entirely, and rarely find myself wanting to go out on the weekends." There's nothing odd or wrong about that...
by Meg77
Mon Sep 18, 2017 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: 30yr Mortgage Refi Rates
Replies: 16
Views: 2836

Re: 30yr Mortgage Refi Rates

I'm a banker, and I very much doubt that makes sense to refinance your loan into another 30 year fixed mortgage. The going rate today for a 30 year fixed refinance is about 3.70% assuming a loan on a single family homestead with a balance between $150K and $417K, 80% LTV or less, perfect credit and ...
by Meg77
Mon Sep 18, 2017 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Let's talk about your FI # and family income [Financial Independence]
Replies: 183
Views: 21898

Re: Let's talk about your FI # and family income [Financial Independence]

Gross Wages - $440 (bonus income can vary though) Current spending - $274K ($148K to income taxes) Projected retirement spending - $161K (assumes $12K to income taxes, includes mortgage which will have 7 yrs remaining) Target portfolio for FI (2023 target date ages 40/46) - $3.4M* *Net worth target ...
by Meg77
Mon Sep 18, 2017 11:21 am
Forum: Personal Finance (Not Investing)
Topic: 15 vs 30 year refinance vs cash out refinance
Replies: 32
Views: 2627

Re: 15 vs 30 year refinance vs cash out refinance

Especially since rentals can come with cash flow headaches of their own. Ask me about the $30,000 plumbing repair I just had to do on a $130K rental. Ouch! The OP may not want to hear about such problems, but I'd be interested in some details. :) It was not a fun spring I can tell you! I filed thre...
by Meg77
Sun Sep 17, 2017 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: What is FI if you love your job? [Financial Independence]
Replies: 68
Views: 6871

Re: What is FI if you love your job?

OP, 1) Are you FI yet? How would you know that you will feel the same way when more money does not make any difference in your life? The first million feels great! The second million does not feel as great. The third million may not matter. 2) Would you feel the way 5 years from now? 10 years from ...
by Meg77
Sat Sep 16, 2017 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: 15 vs 30 year refinance vs cash out refinance
Replies: 32
Views: 2627

Re: 15 vs 30 year refinance vs cash out refinance

This is an interesting choice. I am a banker and also have 7 rental units (I used to have 10 but sold 3 in the last year). I work with lots of RE investors and totally understand where you're coming from, so I'm not going to weigh in on whether I think you should buy rentals or cash out your home eq...
by Meg77
Fri Sep 15, 2017 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Advice Badly Needed---Meeting with Financial Advisor
Replies: 49
Views: 4624

Re: Advice Badly Needed---Meeting with Financial Advisor

Do your own reading by all means, but here is what you should do according to pretty much any financial expert/blogger/author/advisor who is not trying to sell you something: 1. Make sure you have a basic will and level premium term life insurance in place IF you need it - which you don't until you ...
by Meg77
Thu Sep 14, 2017 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Milestone Reached - "Quarter Millionaire!"
Replies: 41
Views: 5583

Re: Milestone Reached - "Quarter Millionaire!"

"Quarter Millionaire." I like that! Sounds kind of like a royal title. :happy Congrats! (Actually, you have a million quarters!) I love this! Haha - a million quarters. What a fun way to look at it. A million pennies - $10,000 A million nickels - $50,000 A million dimes - $100,000 A million quarter...
by Meg77
Thu Sep 14, 2017 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: What do I need to do next?
Replies: 11
Views: 1995

Re: What do I need to do next?

In just four short years you paid off your $60K mortgage and added $150K to your retirement accounts. I'd say that is pretty great progress! And you are on track to have a fully vested pension in 4 years. And you are only 52!! Here is my advice: 1. Pat yourself on the back and quit feeling "behind."...