Search found 2395 matches

by Meg77
Thu Mar 15, 2018 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance Mortgage or Pay Car Loan?
Replies: 5
Views: 430

Re: Refinance Mortgage or Pay Car Loan?

I don't think you're going to get a much better rate on your mortgage. It's more expensive to refinance a mortgage under $100k, and it may be difficult to find a lender that will do one under $50k. And the closing costs will likely be prohibitive since you plan to pay it off in just a few years anyw...
by Meg77
Wed Mar 14, 2018 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Should a recent college grad look for a job in the Bay Area or Texas?
Replies: 39
Views: 3311

Re: Should a recent college grad look for a job in the Bay Area or Texas?

News just came out this week that San Francisco lost the largest number of residents than any other city in the fourth quarter of last year, 24% more than the second city, NYC. https://www.msn.com/en-us/lifestyle/smart-living/san-francisco-losing-more-residents-than-any-other-us-city/vp-BBJUjqo Many...
by Meg77
Thu Mar 08, 2018 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Would YOU retire
Replies: 67
Views: 9830

Re: Would YOU retire

First: I'd add her to your pension but not add you to hers (sorry but statistically you are much more likely to die first just from being male, even though you're a bit younger. The diabetes just improves the odds of her outliving you). $94,000 from investments (4% withdrawal rate) $12,000 rental in...
by Meg77
Thu Mar 08, 2018 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Does it ever make sense to withdraw Roth IRA contributions to reduce credit card debt?
Replies: 18
Views: 1289

Re: Does it ever make sense to withdraw Roth IRA contributions to reduce credit card debt?

I'm trying to understand and reconcile (or prioritize) two conflicting pieces of advice, and I'm wondering if someone better at math can help me think it through. - Principle #1: Pay off high-interest debt before saving or investing at a lower interest rate. - Principle #2: Avoid withdrawing from r...
by Meg77
Thu Mar 08, 2018 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: Why (or why not) use an advisor
Replies: 42
Views: 2634

Re: Why (or why not) use an advisor

Many people DO need and benefit from having a financial advisor. Here are some reasons: 1. No interest in managing their money (too busy with managing a company or career or family, would rather outsource the activities, etc.) 2. No aptitude for managing their money (don't know what you don't know, ...
by Meg77
Thu Mar 08, 2018 12:11 pm
Forum: Personal Consumer Issues
Topic: Buying a house before selling a house
Replies: 29
Views: 2553

Re: Buying a house before selling a house

Hi there, I'm a banker who does a lot of mortgages. Per federal mortgage regulations, your debt to income ratio cannot exceed 43% to get a mortgage. That means that if you earn $85,000, only $36,550 can go toward "debt" each year. HOWEVER, the debt service calculation must include property taxes, ho...
by Meg77
Thu Mar 08, 2018 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Stuck - what to do with lump sum severance
Replies: 11
Views: 1242

Re: Stuck - what to do with lump sum severance

One easy option is to pay down your mortgage by $100k. This is especially true if you'll be taking the standard deduction from now on and therefore getting no tax benefit for the mortgage, which I suspect may be the case. That's a guaranteed 4.875% return which is much more than you're getting paid ...
by Meg77
Thu Mar 08, 2018 11:47 am
Forum: Investing - Help with Personal Investments
Topic: eat love pray and jump in today?
Replies: 21
Views: 2879

Re: eat love pray and jump in today?

Hello Karma Skimmer, Congratulations on your high savings rate! You will get to financial independence. Keep in mind, the Vanguard Target funds have bonds as well as stocks, and gradually move to a more conservative asset allocation as time goes on. These are not high risk, speculative investments....
by Meg77
Sun Mar 04, 2018 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: dad insists on gifting me all his money- help!
Replies: 23
Views: 4666

Re: dad insists on gifting me all his money- help!

You haven't considered gift taxes in either scenario. If you give your uncle more than $15,000 per calendar year, you will have to file a gift tax return and pay gift taxes on that amount (or use up part of your lifetime exclusion limit). Same goes for your father if he gives you more than $15,000 p...
by Meg77
Wed Feb 28, 2018 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: how to draw down taxable retirement acct...?
Replies: 20
Views: 1871

Re: how to draw down taxable retirement acct...?

@meg77: I could definitely live off of 3% dividends! (1.5 gazillion X .03?) (Theoretically) I'm not sure I understand where that figure comes from (my fault, not yours!)... We can't say 3% from my total investment, if not every stock in the fund(s) pays dividends...? Well, the total stock market in...
by Meg77
Wed Feb 28, 2018 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Multiple accounts allocation?
Replies: 7
Views: 788

Re: Multiple accounts allocation?

You're doing great! The S&P500 is a fine index, and it almost exactly correlates to the return on the Total Stock market Index anyway. The only difference is that the Total Stock Market index has ALL US stocks, including small and mid caps. The S&P 500 is just 500 large cap stocks (so yes, the total...
by Meg77
Wed Feb 28, 2018 10:20 am
Forum: Investing - Help with Personal Investments
Topic: how to draw down taxable retirement acct...?
Replies: 20
Views: 1871

Re: how to draw down taxable retirement acct...?

First you can move dividends and gains in stock funds and interest on bond funds to be distributed rather than be reinvested. So you live first off those distributions which could easily be 2-3% of your portfolio. That may be ALL you need if you have any current income from part time work, social se...
by Meg77
Tue Feb 27, 2018 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Rolled Mom's Portfolio to VG - income strategy? funds?
Replies: 2
Views: 432

Re: Rolled Mom's Portfolio to VG - income strategy? funds?

My main area of concern would be the muni bonds. While the collective interest rates sound good I would be concerned about the bond rating/credit quality of the issuers. If any of the muni bonds were bought on the secondary market I might get suspicous about them, brokers selling "used" bonds to in...
by Meg77
Tue Feb 27, 2018 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Rolled Mom's Portfolio to VG - income strategy? funds?
Replies: 2
Views: 432

Rolled Mom's Portfolio to VG - income strategy? funds?

Hi Bogleheads, My mother received a windfall of muni bonds from her parents early this year, and I've completed the transfer of it plus her Edward Jones portfolio to Vanguard. Now comes the fun part - rebalancing and optimizing! I'm all for the three fund portfolio - or as close as I can get to it g...
by Meg77
Mon Feb 26, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Investing Inheritance
Replies: 17
Views: 2256

Re: Help with Investing Inheritance

It seems that the overwhelming consensus here is that I need to get into Bonds and to do it now, rather than wait. I wouldn't sweat this too much since 100% of your inheritance is coming in bonds. That will immediately bring your asset allocation from 100% stocks to 75% stocks/25% bonds. I think th...
by Meg77
Wed Feb 21, 2018 4:45 pm
Forum: Personal Consumer Issues
Topic: Do you wear a wedding band? [at a job interview]
Replies: 157
Views: 11981

Re: Do you wear a wedding band? [at a job interview]

Edit: I asked this primarily from a professional perspective, such as a job interview. Does the lack of a wedding ring on someone who is known to be married make you appear “flaky” or unreliable? Wondering if I should get it refit Just for such occasions. Female professional here. Yes, not wearing ...
by Meg77
Wed Feb 21, 2018 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: Pledged Asset Line (PAL)/Line of Credit for Real Estate Investments
Replies: 9
Views: 1586

Re: Pledged Asset Line (PAL)/Line of Credit for Real Estate Investments

"There is really no downside. The bank will be eager to extend the loan whenever it ultimately matures. Further, the bank loans have MUCH lower interest rates, as you have found. By the way I'd demand a Prime rate loan unless they are fixing the interest rate (usually these lines are floating). Als...
by Meg77
Wed Feb 21, 2018 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: Pledged Asset Line (PAL)/Line of Credit for Real Estate Investments
Replies: 9
Views: 1586

Re: Pledged Asset Line (PAL)/Line of Credit for Real Estate Investments

"There is really no downside. The bank will be eager to extend the loan whenever it ultimately matures. Further, the bank loans have MUCH lower interest rates, as you have found. By the way I'd demand a Prime rate loan unless they are fixing the interest rate (usually these lines are floating). Als...
by Meg77
Fri Feb 09, 2018 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Piggyback Mortgage
Replies: 15
Views: 1120

Re: Piggyback Mortgage

Rates are expected to continue to increase this year, so you are right to be worried. One option should be to refinance the home equity LINE into a home equity LOAN that has a fixed rate and is amortizing. Of course that would cause your payment to jump though. I wouldn't roll the two loans together...
by Meg77
Fri Feb 09, 2018 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: For the millionth time - Should I consider an investment advisor?
Replies: 10
Views: 1568

Re: For the millionth time - Should I consider an investment advisor?

You don't need a financial advisor - and I say that as a financial advisor and also as a 34 year old who inherited about $350k in my 20s. If felt much the same way you do now, but it was just jitters and I successfully deployed the windfall. You don't need to pay 1.25% per year INDEFINITELY - just t...
by Meg77
Fri Feb 09, 2018 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Help Sell FIRE to spouse
Replies: 31
Views: 4176

Re: Help Sell FIRE to spouse

Sure you can afford to retire from what we can see here, but one thing not noted is whether you have long term care insurance. You may be planning to self-insure, which I think is fine, but run the numbers specifically for some worst case scenarios for your wife (and yourself) rather than looking at...
by Meg77
Fri Feb 09, 2018 11:34 am
Forum: Personal Consumer Issues
Topic: Should having a brand new roof lower home insurance premium?
Replies: 26
Views: 1907

Re: Should having a brand new roof lower home insurance premium?

A common reason (maybe the most common?) that people file insurance claims on their roof is hail damage. Whether the roof is brand new or not does not impact the likelihood it will sustain hail damage during the next 12 months, so I can understand a new roof not necessarily helping your premium dire...
by Meg77
Thu Feb 08, 2018 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Sell or Keep Decision help
Replies: 9
Views: 761

Re: Rental Sell or Keep Decision help

Hey there, fellow landlord here. I would not sell this investment for a variety of reasons. 1. Your perfect long-term tenant wants to renew their lease. 2. You don't have any better ideas on what to do with the proceeds. Vacations, cash and 529s aren't compelling. 3. This is generating a steady 7% r...
by Meg77
Tue Feb 06, 2018 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Try for promotion? Have you faced similar?
Replies: 9
Views: 1272

Re: Try for promotion? Have you faced similar?

Go for the promotion. You may not even get it, but if you don't try you're more likely to regret it than if you don't. For one thing, the pay increase alone could cut your retirement date from 23 years to more like 15 or so if you bank the whole increase (totally ballpark estimate, but bottom line i...
by Meg77
Fri Feb 02, 2018 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Selling and buying a home in a high market
Replies: 9
Views: 1006

Re: Selling and buying a home in a high market

I live in Dallas, so I know what you are talking about. But upgrading always means making your financial situation "worse" in the sense of increasing your expenses though. You're right, your home may have risen in value, but so have other homes. Only downgrading - or moving to a lower cost of living...
by Meg77
Fri Feb 02, 2018 3:56 pm
Forum: Investing - Theory, News & General
Topic: Leaning Toward Paying Extra Principal to 30 Year Mortgage
Replies: 15
Views: 1584

Re: Leaning Toward Paying Extra Principal to 30 Year Mortgage

When we were in the same position, we started paying our 30 year like a 15 year. Only taxable holdings we had were cash and some rentals I'd bought before the marriage. Eventually we did it for so long (over a year) that we were comfortable going ahead and refinancing to a 15 year to lower our rate....
by Meg77
Fri Feb 02, 2018 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Fund 2017 Roth IRA or pay off truck?
Replies: 30
Views: 1964

Re: Fund 2017 Roth IRA or pay off truck?

Here is what I would do if I were in your shoes: 1. Pay off the second mortgage from savings immediately. Continue making minimum payments on the truck. 2. Use your excess cash flow to add to savings for Feb/Mar. 3. In early April (just before the deadline), contribute $5500 to a Roth IRA for you an...
by Meg77
Fri Feb 02, 2018 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: What advice would you give yourself if you were 27 again?
Replies: 120
Views: 9511

Re: What advice would you give yourself if you were 27 again?

If I stick w/ the Federal govt, I would be eligible for a pension when I retire. If I work until 62, based on the current computation rules, the pension would be roughly 45% of my salary. Due to this pension, I've seen a lot of talk about putting more money into a roth acct as opposed to a traditio...
by Meg77
Wed Jan 31, 2018 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: First time home buyer- Tips?
Replies: 18
Views: 2849

Re: First time home buyer- Tips?

Congrats! I'm a banker and previously was a mortgage banker so I have a few insights. 1) We will look to get pre-approved this weekend for the loan, are there stellar institutions people would suggest? Right now, I've been searching extensively, but it has been hard to narrow down quality lenders wi...
by Meg77
Wed Jan 31, 2018 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: How Long For Mortgage Term?
Replies: 36
Views: 4194

Re: How Long For Mortgage Term?

My two cents (coming from a mortgage banker): Go with the 15 year fixed or don't bother. The goal of most refinances is to reduce interest expense (a secondary goal may be to fix the rate if you're currently in an ARM). Your current rate of 4.37% is not much higher than the 30 year and even the 20 y...
by Meg77
Tue Jan 30, 2018 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Landlord for first time - tips and things to know?
Replies: 44
Views: 5820

Re: Landlord for first time - tips and things to know?

Congrats! I've been a landlord for 10 years next month, and I sure have learned some lessons the hard way. A few thoughts: 1 - I managed my properties (4 duplexes at first) all by myself in my 20s for 4-5 years, but I eventually hired a property manager. Cash flow actually went UP (lower maintenance...
by Meg77
Tue Jan 30, 2018 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: Analysis Paralysis -- 403b or Kill the Mortgage?
Replies: 27
Views: 1782

Re: Analysis Paralysis -- 403b or Kill the Mortgage?

You guys are doing great! A couple of thoughts I have: 1. Why are you putting 15% into a 401a if you have other tax advantaged space available? My husband defers into his 401a, but only because we've maxed everything else out. The distribution restrictions are usually very tight compared to 401k/40...
by Meg77
Tue Jan 30, 2018 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Is an ARM always a bad idea?
Replies: 22
Views: 2717

Re: Is an ARM always a bad idea?

Banker here. ARMS are fine and can be very useful especially for first time buyers who are almost certain to move up within 5-7 years. FYI 80% of all 30 year fixed mortgages are repaid (either by sale, refi, or by simply being paid off early) in under 10 years.
by Meg77
Tue Jan 30, 2018 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Analysis Paralysis -- 403b or Kill the Mortgage?
Replies: 27
Views: 1782

Re: Analysis Paralysis -- 403b or Kill the Mortgage?

You guys are doing great! A couple of thoughts I have: 1. Why are you putting 15% into a 401a if you have other tax advantaged space available? My husband defers into his 401a, but only because we've maxed everything else out. The distribution restrictions are usually very tight compared to 401k/403...
by Meg77
Tue Jan 30, 2018 12:36 pm
Forum: Personal Consumer Issues
Topic: Is middle initial important? [How to title a legal document]
Replies: 11
Views: 2257

Re: Is middle initial important?

On investment accounts this is not an issue in the US. I work at a bank and while we have to check a drivers license or other method to verify names, people opt to have them show up in all kids of different ways on their investment and banking accounts. First initial, middle initial, full name spell...
by Meg77
Tue Jan 30, 2018 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Rental property accounting
Replies: 10
Views: 1221

Re: Rental property accounting

Been using an excel spreadsheet for years. Surprisingly few transactions each year, even for 6+ units. Rent comes in, mortgage and taxes and HOA go out. Every few months there's some additional expense to jot down - plumber or city registration fee or "capital distribution" to my personal checking a...
by Meg77
Tue Jan 30, 2018 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: Early retired: Realize capital gains now, or live off muni interest?
Replies: 8
Views: 1080

Re: Early retired: Realize capital gains now, or live off muni interest?

My mother is in a remarkably similar situation, and I've been wrestling with this very question on her behalf. Much of the answer depends on your withdrawal rate. If you are actually following a 4% withdrawal strategy or something similar/fixed that requires the use of your entire portfolio, then I ...
by Meg77
Mon Jan 29, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: 10 Things to do for Financial Wellness
Replies: 17
Views: 2840

Re: 10 Things to do for Financial Wellness

How wonderful! This is a great list. -Get a will (and trust) and purchase term life insurance. I would add that adequate health and disability coverage are also a must. (And most people do not need a living revocable trust, by the way). You also may want to highlight that whole life insurance should...
by Meg77
Mon Jan 29, 2018 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Opinions sought on insuring my wife
Replies: 14
Views: 1221

Re: Opinions sought on insuring my wife

Yes she should have life insurance, and - perhaps even more importantly - so should you. Be sure if the situation were reversed that your wife and child would be properly cared for as well. She could easily live another 4-5 decades, and your son could live even longer. If neither of them can work, t...
by Meg77
Mon Jan 29, 2018 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Bridge to retirement, pre tax and post tax bond allocations
Replies: 7
Views: 810

Re: Bridge to retirement, pre tax and post tax bond allocations

One benefit of having equities in taxable is being able to tax loss harvest when the market fluctuates downward. You say you plan not to draw from your IRAs until RMDs kick in, but you CAN always access them now that you're over 59.5. So in reality your accounts are all accessible and can/should be ...
by Meg77
Thu Jan 25, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone want to share their monthly budget? Here's ours
Replies: 62
Views: 10969

Re: Anyone want to share their monthly budget? Here's ours

Just because I'm killing time, here's our 2017 actual figures: Mortgage - $2,436 (15 yr fixed) Property tax - $1,000 Home insurance - $133 HOA - $100 House cleaner - $175 Utilities - $578 (includes cable/internet, cells) Car payment - $585 (at 1% so DH won't pay it off) Auto/umbrella insurance - $16...
by Meg77
Thu Jan 25, 2018 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Almost 34 years old... Looking for Career Ideas with realistic High Earning Potential
Replies: 31
Views: 3776

Re: Almost 34 years old... Looking for Career Ideas with realistic High Earning Potential

Agree that you should probably try a different job in the same field first before doing something as drastic as going back to college. If you DO think a 4 year degree would be helpful though (or you just want one), find a larger employer with tuition benefits and work in their IT dept. For one, you ...
by Meg77
Wed Jan 24, 2018 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed with a loan/payoff scenario.
Replies: 16
Views: 1117

Re: Help needed with a loan/payoff scenario.

Assuming the payoff date for a loan is early and static in the following two scenarios, how much more money does it cost to pay minimum payments on the loan followed by a large lump sum, than to pay extra payments on the loan from start to finish? The additional COST to suspending the payments is s...
by Meg77
Wed Jan 24, 2018 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Working in the real world
Replies: 118
Views: 10735

Re: Working in the real world

Here's some real world salary info for you. I was an engineering manager for 20+ years. In a particualr niche in the elctronics industry, private sector, manufacturing/tech. Our pay is highly dependent on location and skill set. Current office in average cost of living area in PA has about 25 engin...
by Meg77
Wed Jan 24, 2018 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: Help needed with a loan/payoff scenario.
Replies: 16
Views: 1117

Re: Help needed with a loan/payoff scenario.

Assuming the payoff date for a loan is early and static in the following two scenarios, how much more money does it cost to pay minimum payments on the loan followed by a large lump sum, than to pay extra payments on the loan from start to finish? The additional COST to suspending the payments is s...
by Meg77
Tue Jan 23, 2018 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need a will? Can I do it online?
Replies: 17
Views: 1762

Re: Do I need a will? Can I do it online?

It sounds like you can certainly do a simple will online. You have one named heir so there's little risk of any battle over your will. And the will would really only be addressing assets without beneficiaries - checking account, house, car, possessions. A will doesn't let you avoid probate, but prob...
by Meg77
Tue Jan 23, 2018 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Buy house next door house as a rental?
Replies: 24
Views: 2218

Re: Buy house next door house as a rental?

As a landlord, I NEVER let my tenants know where I live. The last thing you want is people showing up at your doorstep at all hours with non-emergency requests and complaints. More risky is a bitter former tenant (or current tenant you're trying to evict) vandalizing your homestead or generally caus...
by Meg77
Tue Jan 23, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: First experience with Financial Advisor
Replies: 18
Views: 2436

Re: First experience with Financial Advisor

Haha what's funny is that your S&P 500 index outperformed his strategy last year - at a fraction of the cost. What a sales pitch. :oops:
by Meg77
Tue Jan 23, 2018 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Home Equity Loans and the New Tax Law
Replies: 19
Views: 1311

Re: Home Equity Loans and the New Tax Law

I've read that appx 95% of Americans will see their taxes go down under this bill - including most high earners. Not to mention that if you own stocks this tax bill (and Trump's election) has already been a clear windfall in the form of increased share prices. Many companies plan to raise dividends ...
by Meg77
Mon Jan 22, 2018 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Am I being greedy?
Replies: 51
Views: 6828

Re: Am I being greedy?

If you're comfortable with 100% stocks, then you should stay the course indefinitely. But it will be difficult to know how comfortable you really are with that asset allocation until you encounter a downturn. I was 100% stocks for the first 10+ years of my investing life. I was younger, I had high r...