Search found 2271 matches

by jimb_fromATL
Thu Jan 02, 2014 9:04 am
Forum: Personal Investments
Topic: Invest In Taxable Accounts?
Replies: 4
Views: 1391

Re: Invest In Taxable Accounts?

To put your money to its best possible use toward retiring early, I'd slightly modify Laura's plan to pay yourself first. 1. 401k to the match -- absolutely, positively. 2. Max out Roth 3. Max out 401k -- if your future income allows it after maxing the roth 4. Build up funds for emergencies to at l...
by jimb_fromATL
Wed Jan 01, 2014 8:45 pm
Forum: Personal Investments
Topic: What to do with non-retirement savings?
Replies: 13
Views: 2474

Re: PS:

Thanks for taking the time to write a post like this out. I am considering what to do with my taxable savings and my mortgage looks juicier every day. Thanks again. You're welcome, but I must admit that I didn't exactly have to type it all out. I have a bunch of boiler-plate spreadsheets that I've ...
by jimb_fromATL
Wed Jan 01, 2014 5:57 pm
Forum: Personal Investments
Topic: Specific situation advice on Traditional vs Roth 401K
Replies: 9
Views: 820

Re: Specific situation advice on Traditional vs Roth 401K

I am contributing the max (57K) which is a combination Roth (17,500 + 5500 catch up), 17,500 match in traditional and remainder as profit sharing in traditional. Self directed in Boglehead style index portfolio. So you're contributing $17,500 + 5500 out of your own money, which reduces your taxable...
by jimb_fromATL
Wed Jan 01, 2014 2:51 pm
Forum: Personal Investments
Topic: Pay down student loan debt @ 3.5% or invest in taxable acct?
Replies: 10
Views: 1249

Re: Pay down student loan debt @ 3.5% or invest in taxable a

In March of this year, I will be receiving appx. $6500 from my tax refund and would like advice as to whether I should pay off my student loan or invest the money in a taxable account or a combination of both? Currently I have appx. $27K in my taxable account and I owe $24K on my student loan at a ...
by jimb_fromATL
Wed Jan 01, 2014 2:43 pm
Forum: Personal Investments
Topic: What to do with non-retirement savings?
Replies: 13
Views: 2474

PS:

PS: Here's an example to illustrate the equivalent return for the investment for paying extra on the mortgage: For a balance of $225,000 at 3.75% with 336 months (28. years) remaining the payment for P&I is $1082.58 per month, and the total interest paid will be $138,748. If the payment for $225...
by jimb_fromATL
Wed Jan 01, 2014 2:29 pm
Forum: Personal Investments
Topic: What to do with non-retirement savings?
Replies: 13
Views: 2474

Re: What to do with non-retirement savings?

If your income is in range to allow Roth IRAs, one question is whether you're maxing the TSPs? If not, that's the first place to put more money. In today's uncertain environment, I'd want at least a year of liquid assets for emergencies, because no matter what your occupation, no job is really secur...
by jimb_fromATL
Wed Jan 01, 2014 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Why bother converting a traditional IRA into a Roth?
Replies: 23
Views: 2491

Re: Why bother converting a traditional IRA into a Roth?

Say someone is retired and in the 25% tax bracket, and expects to always remain in the 25% tax bracket. Is there any reason to convert to a Roth IRA up to the top of the 25% tax bracket to 1. eliminate RMDs and 2. reduce size of estate and/or taxes owed by heirs? Yes, it could reduce the size of th...
by jimb_fromATL
Mon Dec 30, 2013 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: Benefits of Living Will / Healthcare PoA
Replies: 8
Views: 1041

Re: Benefits of Living Will / Healthcare PoA

If you don't have a PoA, the "default" person seems to be your spouse. So is there a point to writing up a PoA naming your spouse to be the one making the choice they would be making anyway? Yes ... and to name a "secondary" PoA person other than the spouse too. If you and your ...
by jimb_fromATL
Mon Dec 30, 2013 4:06 pm
Forum: Personal Investments
Topic: Reinvest Dividends or put Money Towards Mortgage
Replies: 9
Views: 2282

Re: Reinvest Dividends or put Money Towards Mortgage

... With the mortgage tax deduction, my rate after taxes is roughly around 2.7% or so. With inflation roughly in this ballpark, basically I am being loaned the money for free, right? Not really. Here's some more stuff to make you think. IMO the mortgage tax deduction is another near-myth that just ...
by jimb_fromATL
Mon Dec 30, 2013 2:03 pm
Forum: Personal Investments
Topic: Reinvest Dividends or put Money Towards Mortgage
Replies: 9
Views: 2282

Re: Reinvest Dividends or put Money Towards Mortgage

Hi TVKNSC and forum, I have a piggy back question to throw on here....as a VERY novice investor who is new to bogleheads, I'm wondering if someone can confirm my thinking here. As long as you are willing to take on the risk, I would take the dividends and invest them hoping to make more than the 3....
by jimb_fromATL
Mon Dec 30, 2013 12:12 pm
Forum: Personal Investments
Topic: Reinvest Dividends or put Money Towards Mortgage
Replies: 9
Views: 2282

Re: Reinvest Dividends or put Money Towards Mortgage

Jimb, Wow, great, detailed response. Thanks! Yes, I sure do max-out my Roth TSP and VG 2040 IRA each year, then add to taxable accounts as finances allow. Well, if I am hell-bent on paying it off early, I guess just adding money each month to the principal is a better course of action than not rein...
by jimb_fromATL
Mon Dec 30, 2013 11:34 am
Forum: Personal Investments
Topic: Reinvest Dividends or put Money Towards Mortgage
Replies: 9
Views: 2282

Re: Reinvest Dividends or put Money Towards Mortgage

I can't see much point in using the dividends to pay down the mortgage, versus just paying extra directly on the mortgage as a part of your long term investment plan. Here's some stuff to think about: Your notes: AA for 35 y/o: | VG VTSAX = 35% | VG VTIAX = 30% | Roth TSP F Fund = 5% | Roth TSP G Fu...
by jimb_fromATL
Sat Dec 28, 2013 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: family loan
Replies: 22
Views: 1874

Re: family loan

The best way to help her is probably just to give her enough money every year to help her make the house payments. In fact, under most circumstances that I can imagine where you would have a spare $375K to loan to her, it would be far cheaper to just give her money every year and keep the $375K. Her...
by jimb_fromATL
Fri Dec 27, 2013 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Save those $1 Bills
Replies: 22
Views: 4957

Re: Save those $1 Bills

Here are some gee-whiz numbers to ponder: If you average $3 per day, that's $1095 in a year ($91.25 per month). If you put it in a jar under the bed for 30 years you'll have $32,850 extra for retirement. You could then take out $91.25 per month for the next 30 years before it was all gone. If you pu...
by jimb_fromATL
Thu Dec 26, 2013 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loans manageable - start investing - advice needed
Replies: 2
Views: 607

Re: Student Loans manageable - start investing - advice need

Dave Ramsey's advice to postpone retirement contributions in order to pay down debts faster is absolutely wrong for you, and may already have cost you a lot of money if you've been paying down debt instead of investing. With manageable debts and high income (and income tax bracket(s) you'll come out...
by jimb_fromATL
Tue Dec 24, 2013 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Couple in their early 70s getting a mortgage(?)
Replies: 14
Views: 1711

Re: Couple in their early 70s getting a mortgage(?)

In theory it is illegal for lenders to discriminate because of age. However, when there is any reason that the loan may be more risky for the mortgage company, such as your age, I suspect that they are much more likely to require very strict compliance to all other qualifications, such as verifiable...
by jimb_fromATL
Tue Dec 24, 2013 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: PenFed 5/5 ARM: Is it fully ammortizing, or interest only?
Replies: 3
Views: 1289

Re: PenFed 5/5 ARM: Is it fully ammortizing, or interest onl

Could someone point out to me, if the PenFed's ARM product (5/5) is a 30 year fully ammortizing ARM or an interest only ARM. I would like to see something on their website. I was looking at this calculator http://www.bankrate.com/calculators/mortgages/compare-arm-or-fixed-rate-calculator.aspx and i...
by jimb_fromATL
Tue Dec 24, 2013 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Swamped In Debt - Thoughts?
Replies: 68
Views: 21286

Re: Swamped In Debt - Thoughts?

Here are a few answers to your questions: -We do invest up to the company match - 5% Great. But in your tax bracket, you'll still come out even better to avoid more tax now by maxing the 403(b)s. To fully max out, it would take an additional $1400/month - that's post-tax money By “post tax” do you ...
by jimb_fromATL
Tue Dec 24, 2013 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Swamped In Debt - Thoughts?
Replies: 68
Views: 21286

Re: Swamped In Debt - Thoughts?

If you were to re-invest the 48.7 freed-up payments of $1809 with no delay starting after month 38.5... The $1,809 required payments are also after-tax money, just like the $2,000. So you need to convert the $1,809 to pre-tax first and use that for your re-investment calculations. Can you re-calcul...
by jimb_fromATL
Mon Dec 23, 2013 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Swamped In Debt - Thoughts?
Replies: 68
Views: 21286

Re: Swamped In Debt - Thoughts?

IMO it's great that you're planning to get out of debt. But the concept of good debt versus bad debt really does apply in your case. Since you are in good financial shape, eliminating the debts as fast as possible may not be the best use of your money and your time for earning compound interest. The...
by jimb_fromATL
Sun Dec 22, 2013 7:28 am
Forum: Personal Finance (Not Investing)
Topic: Student loans now refinanced - pay down or invest?
Replies: 15
Views: 2750

Re: Student loans now refinanced - pay down or invest?

Especially because of your high tax brackets, at the very least you need to contribute the max allowed to your 401(k) before you pay any extra on the student loans. You get to defer the taxes in your highest tax brackets now, but because of the personal exemptions, itemized or standard deduction, an...