Search found 2377 matches

by Meg77
Tue Aug 14, 2018 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Marriage [How should finances be handled?]
Replies: 74
Views: 7749

Re: Marriage

A marriage is a legal contract, the joining of two parties - usually for love, companionship and to pool resources as two if handled strategically can improve their outcomes. If you both are rowing in sync, you’ll find the boat will glide across the water towards your destination in due time. If on...
by Meg77
Mon Aug 13, 2018 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Mid 30s Crisis: Personal budget, savings and goals
Replies: 36
Views: 7319

Re: Mid 30s Crisis: Personal budget, savings and goals

Welcome! Nothing wrong with looking to improve or optimize your situation. Lots of people on this forum are doing better than most, but that doesn't mean we don't have anxiety around money, career, life, and all the rest. 1. Pay off the truck today. 2. Pay off the house this month. This will leave y...
by Meg77
Mon Aug 06, 2018 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: Baby on way: life insurance Qs
Replies: 27
Views: 1533

Re: Baby on way: life insurance Qs

DW and I are expecting our first child! We're still a ways away, but it's probably time for us to do some "real adulting" and get life insurance, wills, etc. Congrats! Right now, I'm looking into term life insurance, and trying to figure out how much/what term we should get. Most of the articles/ca...
by Meg77
Mon Aug 06, 2018 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: CD ladder for money needed in 3-5 years?
Replies: 5
Views: 662

Re: CD ladder for money needed in 3-5 years?

I wouldn't bother setting up a CD ladder for $30k. Vanguard's prime money market fund (and several others) are paying right around 2% currently. You're not going to get much more than that on a 3 year CD. Even if you could find one paying 3%, the 1% difference in spread is only worth $300 in interes...
by Meg77
Mon Aug 06, 2018 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: When are the taxes due on rental property sale
Replies: 14
Views: 983

Re: When are the taxes due on rental property sale

I sold a rental last year and increased by W2 withholding in an effort to pay the capital gains and depreciation recapture that I estimated I'd owe. You don't have to make an estimated tax payment if you're able to do that if you can get close enough. From the IRS website: If you didn't pay enough t...
by Meg77
Fri Aug 03, 2018 1:16 pm
Forum: Personal Consumer Issues
Topic: Realtor Compensation (Couldn't sell, so renting)
Replies: 21
Views: 2384

Re: Realtor Compensation (Couldn't sell, so renting)

1 month's rent is standard, but often that is split with the renter's agent (so each agent gets 50% of one month's rent). If you're just paying directly and the renter didn't have separate representation, I'd offer 50% of 1 month's rent.
by Meg77
Fri Aug 03, 2018 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking opinions: How to invest 150k?
Replies: 8
Views: 802

Re: Seeking opinions: How to invest 150k?

You say you want 60-65% US stocks, 15-20% international stocks, and 15-20% bonds. So: 1. Put the entire Roth IRA in the VG total international index. That's 16.7% which falls within your target for international... Thanks very much, meg77-- you have answered a lot of my questions and I appreciate i...
by Meg77
Thu Aug 02, 2018 3:39 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking opinions: How to invest 150k?
Replies: 8
Views: 802

Re: Seeking opinions: How to invest 150k?

How were the funds invested in your 401k? Presumably the asset allocation should remain the same; just pick the index fund(s) that mimic your previously decided upon asset allocation. If the funds were not invested according to your stated AA, then you can just pick the funds that get you closest to...
by Meg77
Thu Aug 02, 2018 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Realities of Early Retirement Model (FIRE)?
Replies: 96
Views: 9980

Re: Realities of Early Retirement Model (FIRE)?

I think it's more than that. The fact that a human being can run a mile in under 4 minutes is jarring and amazing to me, but I don't run around the internet posting reasons why it is impossible. There is something about FIRE (likely in the terminology) that gets people riled up. I don't think it's ...
by Meg77
Thu Aug 02, 2018 3:01 pm
Forum: Personal Consumer Issues
Topic: Career Change, Give Up and focus on Retirement, or Make the Leap???
Replies: 13
Views: 1482

Re: Career Change, Give Up and focus on Retirement, or Make the Leap???

-Always ON mentality. While I only work a reasonable 50 hours a week, the constant phone calls, texts, VPNs onto my laptop, and others make me seem more like a lackey to friends and family and make me "twitchy" like I'm constantly on call hearing the phone ring. This is a minimum job expectation an...
by Meg77
Thu Aug 02, 2018 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Nervous about not using a personal wealth manager. How do I do this myself?
Replies: 135
Views: 6840

Re: Nervous about not using a personal wealth manager. How do I do this myself?

It's just so much cheaper, more efficient and easier - with much quicker trading/response times - to let an algorithm or other process do the investment management once you/they determine your AA and fund choices. So are you recommending something like Betterment? Just do it yourself, seriously. It...
by Meg77
Wed Aug 01, 2018 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Nervous about not using a personal wealth manager. How do I do this myself?
Replies: 135
Views: 6840

Re: Nervous about not using a personal wealth manager. How do I do this myself?

Just want to point out that paying for financial planning and paying for investment management are two different things. It can be very valuable to pay (as you have) for planning services and for advice. But paying/charging for investment management is increasingly a losing proposition both for the ...
by Meg77
Tue Jul 31, 2018 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Consistently over budget on food - what are you guys eating?
Replies: 70
Views: 6140

Re: Consistently over budget on food - what are you guys eating?

Thanks everyone for the feedback. In regards to what the food budget is of overall savings, we save about $6K/mo so going over $1-$200 isn't a huge deal, but I don't want to get into a habit that it is "OK" But it is ok. Percentage wise and frankly even dollar wise, you are spending a perfectly rea...
by Meg77
Tue Jul 31, 2018 2:08 pm
Forum: Investing - Theory, News & General
Topic: Are millennials botching their asset allocations?
Replies: 68
Views: 7697

Re: Are millennial botching their asset allocations?

I would wager that most of the Millennials who have IRA and/or taxable accounts at Vanguard also have other financial assets: an employer 401k plan, bank savings/checking accounts, etc. This makes it difficult to speculate broadly based solely on asset allocation of one person's Vanguard holdings. I...
by Meg77
Tue Jul 31, 2018 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: High expense ratio worth it/Portfolio review
Replies: 48
Views: 3629

Re: High expense ratio worth it?

Their funds might outperform the market net of fees - lots of actively managed mutual funds do. But it's doubtful that your funds will outperform the market after expense ratios AND the advisor's 1% fee. However, you aren't comparing apples to apples. If you have the support and guidance of a qualif...
by Meg77
Tue Jul 31, 2018 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: How to prepare for "the talk"
Replies: 64
Views: 5206

Re: How to prepare for "the talk"

It's a good idea to start asking basic questions. But they are still fairly young, so if they are in decent health I wouldn't try to get too specific yet (a lot can change over the next 25 years). 1. Do they have a will and other estate documents, such as a healthcare power of attorney? If so, where...
by Meg77
Tue Jul 31, 2018 10:22 am
Forum: Investing - Help with Personal Investments
Topic: Net worth of $3.7M at age 47 - can I retire?
Replies: 126
Views: 14791

Re: Net worth of $3.7M at age 47 - can we retire?

Thanks everyone for their feedback. Given that stock market returns have far outpaced residential real estate appreciation over time, I'm a bit reluctant to pay the house off immediately. Also, a 4.13% interest rate, which we can itemize, is pretty low (not as low as the 2.875% I was close to getti...
by Meg77
Mon Jul 30, 2018 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Realities of Early Retirement Model (FIRE)?
Replies: 96
Views: 9980

Re: Realities of Early Retirement Model (FIRE)?

Lots of households live off $30k - $40k a year - including many retired folks living primarily off social security in this country. It's certainly possible, especially when you have no debt and a paid off house in a low or moderate cost of living area (which includes many large city neighborhoods an...
by Meg77
Mon Jul 30, 2018 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Joint Ownership of home with second wife
Replies: 184
Views: 12654

Re: Joint Ownership of home with second wife

I propose this: --Buy the $700K home that is larger/nicer that you both want. Use a 90% first mortgage instead of an 80% mortgage; you can view the PMI is the cost of protecting your kids' inheritance. Or you can get a 10% second mortgage and an 80% first mortgage if PMI really bugs you that much. -...
by Meg77
Thu Jul 26, 2018 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Debt free -- impact on credit score
Replies: 16
Views: 1542

Re: Debt free -- impact on credit score

Banker here. Your scores may dip slightly over the next few years if you only have credit cards active and no other debts. But they aren't likely to fall into the territory that makes it harder to get a loan unless you make late payments or have no open accounts for more than 6 months. Diversity of ...
by Meg77
Thu Jul 26, 2018 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on prioritizing 401k, mortgage and/or 529
Replies: 23
Views: 2275

Re: Thoughts on prioritizing 401k, mortgage and/or 529

Max out 401k, Roths (for your spouse too) and HSA before funding 529s. But given your taxable stash, you can do all of the above by tapping that account. I wouldn't pay extra on the mortgage until/unless college is considered checked off the list (either because you can afford to cash flow tuition a...
by Meg77
Thu Jul 26, 2018 3:48 pm
Forum: Personal Consumer Issues
Topic: Toughest Purchase of my Life. Engagement Ring time
Replies: 207
Views: 10094

Re: Toughest Purchase of my Life. Engagement Ring time

Two Words: Cubic Zirconia And one more: Elope I'd be more than happy to get married in Vegas and plan an after-wedding party in a Hall or our House. I really feel like the Engagement ring and a Wedding are for other people. Yes, but is your prospective fiance one of those other people? If not, why ...
by Meg77
Tue Jul 24, 2018 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Turned down for credit card
Replies: 35
Views: 2902

Re: Turned down for credit card

I'm a banker, and we recommend the Discover It card to young clients who encounter this problem. It's marketed as a starter card for students. Might be a good foot in the door if he wants to build a credit history. Other than that you can get a CD-secured loan from a bank or a secured credit card wh...
by Meg77
Tue Jul 24, 2018 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: What Comes Next After Establishing Personal Finance Basics?
Replies: 14
Views: 2141

Re: What Comes Next After Establishing Personal Finance Basics?

You definitely need a will. I'd just ask other attorneys or financial professionals I know for a reference. You probably don't need a financial advisor at this point (and I am one). As long as most of your assets are personal (home, cars) and retirement (401ks, IRAs), there is not much incentive for...
by Meg77
Tue Jul 24, 2018 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Legacy across generations......
Replies: 66
Views: 4359

Re: Legacy across generations......

No one has mentioned the generation skipping estate tax, but this can be a huge reason to avoid giving to anyone more than 37.5 years younger than you (the cutoff to qualify unless you're a spouse or offspring) if you have a large enough estate to be worried about estate taxes. This tax is huge; it ...
by Meg77
Tue Jul 24, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off highest APR or highest balance?
Replies: 20
Views: 1173

Re: Pay off highest APR or highest balance?

Is there any evidence that this psychological benefit of paying off the smallest balance first has any lasting benefit? What I mean is, it seems possible that many people who pay down the smallest debt first then look at the bigger one and get discouraged and start making poor decisions. Interestin...
by Meg77
Tue Jul 24, 2018 9:24 am
Forum: Personal Consumer Issues
Topic: Daughter wants to travel on her own to Montreal
Replies: 105
Views: 7199

Re: Daughter wants to travel on her own to Montreal

As an adventurous younger female, I will say this sounds a bit suspicious unless you have more info you aren't sharing - or unless she has more info she isn't sharing with you. Most young people want to travel with a friend, a group of friends, or a lover. This is particularly true the summer before...
by Meg77
Mon Jul 23, 2018 2:17 pm
Forum: Investing - Help with Personal Investments
Topic: Investing with a Developer
Replies: 48
Views: 3774

Re: Investing with a Developer

I've participated in other real estate partnerships in north Texas, but never a development deal. In my experience, a 15% fee is common. If not a direct fee, I've typically paid a 15% "promote," where the folks who find, structure and manage the transaction and renovation process (who may or may not...
by Meg77
Mon Jul 23, 2018 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Am I putting too much into retirement?
Replies: 17
Views: 3051

Re: Am I putting too much into retirement?

You can't have "too much" in retirement accounts, but you can certainly have "too little" in liquidity/accessible savings. I would transfer as much as you can each year into the tax-advantaged accounts for now, but given your career field and age I think it makes sense to keep 2 years expenses or $1...
by Meg77
Mon Jul 23, 2018 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate partnership
Replies: 14
Views: 1085

Re: Real estate partnership

I would consult a real estate attorney who can probably tell you if there are standard deal terms in partnerships like this in your area. I do think it's fairly common to simply open an LLC, split ownership 50/50, and split profits 50/50 as well. Of course you can set up the profit sharing any way y...
by Meg77
Thu Jul 19, 2018 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Another mortgage payoff question
Replies: 3
Views: 619

Re: Another mortgage payoff question

You aren't getting any tax benefit from keeping the mortgage, because you don't have enough deductions to itemize. So your effective mortgage rate is the same as the stated interest rate: 4%. If the excess funds are sitting in cash I would probably just pay off the loan. If they are already invested...
by Meg77
Wed Jul 18, 2018 11:22 am
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 17264

Re: Direct Real Estate Returns

I've got 7 rental units and sold 3 last year. Some have done better than others (and it's impossible to predict exact returns due to unknowns like having to spend $30K on a property you paid $130K for to re-pipe the plumbing under the house). However in general I've calculated that if I buy a retail...
by Meg77
Tue Jul 17, 2018 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: 28 years old and Accumulating
Replies: 13
Views: 1752

Re: 28 years old and Accumulating

You're doing amazingly well! 1. I agree that you don't need to buy a house at this stage. You want to maintain flexibility to move for a job, plus home ownership will come with lots of expenses you don't need. 2. Yeah, you're really cash heavy, especially given your very low level of expenses. Start...
by Meg77
Tue Jul 17, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Families - What's your total annual credit card spend?
Replies: 92
Views: 7237

Re: Families - What's your total annual credit card spend?

About $110k (no kids though). Like you, pretty much all expenses go on credit cards except our mortgage and property taxes. I think it's pretty common for annual credit card spend to be fairly synonymous with annual spending - and therefore bound to be high in many cases. You spend $110k a year?!! ...
by Meg77
Tue Jul 17, 2018 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for young colleague please
Replies: 28
Views: 2531

Re: Advice for young colleague please

1. Create an account at Mint or Personal Capital to begin tracking spending and net worth. Of course you can just use Excel too. But seeing progress is hugely motivating. 2. Use emergency fund to pay off the two credit card debts today. Yes it's scary having no savings - but you make enough to rebui...
by Meg77
Tue Jul 17, 2018 11:40 am
Forum: Investing - Help with Personal Investments
Topic: House purchase: pay cash or get mortgage?
Replies: 16
Views: 2525

Re: House purchase: pay cash or get mortgage?

Mortgage banker here. Pay cash! 1. You will save on title fees (lender policies are more expensive than owner policies usually) and lender origination fees in addition to the interest savings. You will also save yourself a huge hassle - I can attest to how burdensome the disclosures and underwriting...
by Meg77
Tue Jul 17, 2018 11:20 am
Forum: Personal Finance (Not Investing)
Topic: Families - What's your total annual credit card spend?
Replies: 92
Views: 7237

Re: Families - What's your total annual credit card spend?

About $110k (no kids though). Like you, pretty much all expenses go on credit cards except our mortgage and property taxes. I think it's pretty common for annual credit card spend to be fairly synonymous with annual spending - and therefore bound to be high in many cases. You spend $110k a year?!! ...
by Meg77
Tue Jul 17, 2018 10:59 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 206
Views: 15773

Re: Why is leveraging property good but leveraging stocks bad?

I'm a private banker, and I find this discussion very thought provoking. In my view, it is not the thing or investment being purchased that makes leverage "good" or "bad" - or more advantageous or more risky. It's the loan structure. If the only way to borrow to buy a home was on a high interest rat...
by Meg77
Mon Jul 16, 2018 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Families - What's your total annual credit card spend?
Replies: 92
Views: 7237

Re: Families - What's your total annual credit card spend?

About $110k (no kids though). Like you, pretty much all expenses go on credit cards except our mortgage and property taxes. I think it's pretty common for annual credit card spend to be fairly synonymous with annual spending - and therefore bound to be high in many cases.
by Meg77
Mon Jul 16, 2018 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: What's your *real* asset allocation?
Replies: 30
Views: 3340

Re: What's your *real* asset allocation?

I guess I don't understand this definition of "liquid" then. Liquidity is the ability to quickly buy or sell an asset without impacting the asset value. All of my assets are liquid now. In the past, this was not true. But I never included non-liquid assets in my allocation plans. I never counted re...
by Meg77
Fri Jul 06, 2018 4:34 pm
Forum: Personal Consumer Issues
Topic: What time do you get up in the morning?
Replies: 160
Views: 12789

Re: What time do you get up in the morning?

I don't set an alarm but wake up around 7:30am every day (dog, cat and/or husband will wake me up around that time if I'm still sleeping). I walk the dogs first thing which wakes me up. Beyond that my schedule is not set in stone. I will make a latte and take it to the roof to check out the plants i...
by Meg77
Fri Jul 06, 2018 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: 10 years to lose wealth applicable to bogleheads ?
Replies: 32
Views: 3995

Re: 10 years to lose wealth applicable to bogleheads ?

This article confuses wealth with income, as others have pointed out. Income fluctuations are not the same thing as "not staying rich" or "losing money." Very few people have recurring incomes in the 1% range, but that's not necessarily a bad thing. As others have pointed out, large one time bonuses...
by Meg77
Fri Jul 06, 2018 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Midlife investing crisis? At a crossroads; need book advice.
Replies: 29
Views: 2537

Re: Midlife investing crisis? At a crossroads; need book advice.

Hey there. I agree with others that you seem to be more at a midlife crisis than a midlife investing crisis. However, like many of us here, you view life through the lens of money and investing. Perhaps you truly do just want to diversify and ramp up your wealth building, but reading between the lin...
by Meg77
Thu Jul 05, 2018 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Can I finance a new home abroad (Carribean)???
Replies: 53
Views: 4712

Re: Can I finance a new home abroad (Carribean)???

In April you told us you had $700k sitting in a bank account. No need to borrow money, then. I am not comfortable purchasing a home cash and much less in another country. Got too little ones at home a large amount of my liquidity to that amount of risk I don’t think is a smart decision. Banker here...
by Meg77
Tue Jul 03, 2018 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: [Northwestern Mutual (65 Life) Whole Life Insurance - Add to it?]
Replies: 7
Views: 1004

Re: [Northwestern Mutual (65 Life) Whole Life Insurance - Add to it?]

Cash it out, invest the cash value in a brokerage account (or almost anything else). Fast forward 10 years and you'll have goodness knows how much more money.
by Meg77
Tue Jul 03, 2018 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation once you reach your target
Replies: 42
Views: 3297

Re: Asset Allocation once you reach your target

My grandfather added more bonds to his AA when he sold his business and "retired" in his early 60s years ago. When he was 75 or so he asked me what % I thought he should have in equities and was worried about the market (this was either before the Great Recession or after most of the losses had been...
by Meg77
Tue Jul 03, 2018 3:47 pm
Forum: Personal Consumer Issues
Topic: Thinking about moving to Madison, WI or Minneapolis, MN..Any advice?
Replies: 96
Views: 9363

Re: Thinking about moving to Madison, WI or Minneapolis, MN..Any advice?

I am not sure how far they travel, but personally I don't think there's much difference between a 3 hour drive and a 4 hour drive to the cabin. You're considering boosting your commute in either case. Assuming you make 12 trips a year (3 times a month 4 months out of the year), that's an average of ...
by Meg77
Tue Jul 03, 2018 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Tax questions for newbie to single member LLC
Replies: 8
Views: 632

Re: Tax questions for newbie to single member LLC

Thanks for these responses! I understand opening a solo 401k is an optiom and changing withholding and may be a direction to go now. Currently, is there anything WRONG with just keeping the income? Is there set “rules” for estimated taxes, or do they not apply to single member llc since it all goes...
by Meg77
Tue Jul 03, 2018 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: What % of your equity is int’l?
Replies: 141
Views: 8596

Re: What % of your equity is int’l?

25% (and 25% of that is in Emerging Markets)