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Liberty1100

Why aren't you putting more in your 401K? Why don't you have a Roth IRA vs. TIRA? Do you have access to an HSA? Every paycheck, I put more towards my 401k automatically. I have had my TIRA the longest, and now I just started my Roth IRA to start the 5 year clock. Right now I am 24 and still under m...

Liberty1100

Thanks for the input. One last question: I plan on purchasing Bonds in my IRA as part of my rebalancing. Which Vanguard bond ETF or combination would be best?

Vanguard Total Bond Market ETF (BND) 0.07%
Vanguard Total International Bond ETF (BNDX) 0.17%

Liberty1100

Biggerpockets.com is a great resource! Like I cannot stress it enough. Listen to their podcasts, read their blog articles, deepen your understanding in their forum. It is free since you probably don't need to use the premium or pro resources.

Liberty1100

You could also use the VG Small and Mid Cap funds in your 401K to approximate Total Stock Market (they aren't that much more expensive then 500). See here for the percentages: http://www.bogleheads.org/wiki/Approximating_total_stock_market That's brilliant! I'll change the allocation to 81% Vanguar...

Liberty1100

Thanks for the responses. I have been thinking about transferring my Traditional IRA to Vanguard. I looked it up and it made sense, so I started the transfer. I do plan on keeping my car indefinitely. The way I think of it, this car will be my car until it dies, gets totaled, or my family out grows ...

Liberty1100

Over the past year, I have been checking in, reading, and responding to posts. I would like to get a checkup and get some awesome advice from you guys. Emergency funds: Three Months of Expenses in a 1% interest rate savings account. Debt: ~$23,000 car loan at 2.09% financing (payment of about $621, ...

Liberty1100

I have recently claimed diminished value on a very similar incident just this past year. I had a couple month old new car that was rear-ended. I had their insurance company pay for the $1,500 repair and rental car, but with a brand new car, it just didn't feel right. Then I had a coworker who referr...

Liberty1100

The risks there is that if he looses his job during the repayment period, you would have to instantly pay back the 401k loan. If you can't find that money laying around, it might not be worth it. Next, how much of the 401k are we talking about? Most places have limits with how much you can take out,...

Liberty1100

It sounds like your estimates for expenses are reasonable, and if you live in it, you should probably know their ballparks. However, I would toy with the idea of thinking of ways to increase your rent or possibly refinance. According to your numbers, you need just $59/month to break even. That is ve...

Liberty1100

Do it. It's an honor society that can help you network and build your resume.

Liberty1100

I would talk to some lenders and see what kind of payments you would be making after the refinance of the rental. You need to make sure you cash flow with those increase payments (appreciation and amortization are things you do not want to count on!). I wouldn't want to "kill" the chicken ...

Liberty1100

Congrats on the new home purchase! It must feel good! How much equity would you have to take out of the rental property? The great thing is, the interest rates are way down and depending on your lender and terms, you might not be hurting yourself if you cash-out of the rental property. Also, how is ...

Liberty1100

Well, are you cash flowing anything from that San Diego property after all taxes, payments, and expenses? If you are only making money on appreciation and payment of your mortgage, I would sell it. Those things are not in your control and you should never count on it. It could become a liability if ...

Liberty1100

I am not sure but depending on the current owners, you can certainly get creative in financing this deal. Some possible options to think about: [*]Seller financing: you negotiate with the seller/current owner a loan through them. You essentially cut down the purchase price by making monthly installm...

Liberty1100

Increasing your education and earning potential would be in the right step. You probably don't need to spend more than $50,000 to finish your degree/certification (CPA possibly?) I don't know if you have to pay taxes on that "windfall." You may need to stick a some in a high interest bank ...

Liberty1100

I use my iphone6 constantly throughout my day and I run in the same problem. My simple fix is by swiping up on the screen to bring up your control panel and turn off my wifi. When swiping up, you should see: - Airplane mode button - wifi button - bluetooth button - do not disturb button - Screen rot...

Liberty1100

It sounds like you hired the attorney to get this estate attorney from stalling and potentially costing you money.

Liberty1100

He should totally have an internship or job for the summer. Since he is graduating early, he needs the experience and references to be able to find a job. Since his major is Computer Science, he can probably find one ANYWHERE. He could work from home, or just down the street, I'm sure. People love C...

Liberty1100

on that note, if your car is worth 12k without the dent, with the dent, it is not worth 6k. Its probably worth more like 8K or 10k, based on how bad the dents seem. It's not worth it.

Liberty1100

I would take the money and invest it. It is obviously not that bad of damage as everyone else is saying. When selling your car, saying that the roof was damaged and you had it repaired will scare off a lot more potential buyers than showing them that the nearly-hidden dents on the body. $6000 is a l...

Liberty1100

i think this is kind of terrible. They made an offer on the house and didn't notice that the stair was off. If they want it fixed by you, then you can do it how you want it (cheaply). If they want it there way, then they should pay for it.

Liberty1100

Question is, how valuable is your time? A lot of those choices take less time by you. If you go with the service, you don't have to spend any time doing it.

Liberty1100

If they are preteens, in just a couple of years they will be in college and you won't need the extra space of a $500,000. you have just started to make some progress paying down the principal of your mortgage. I would highly suggest you just stay with it, maybe make some improvements, and continue p...

Liberty1100

I would suggest putting it down on the highest interest rate, the business loan. I would also be prepared to pay some taxes on that "income" of selling the house and not investing it all into the house.

Liberty1100

Sounds like just about everyone is talking about cash management. That's all good and well. Follow what they say. The next step is increase your income. First, get an education and apply that education. It sounds like you went to school, I'm not sure if you are going currently. If not, be the ideal ...

Liberty1100

I think the unfortunate part of this is that he has a 15 year mortgage. If he could refinance for 30 years, he probably could be cash flowing more money since the required monthly payment would be less. Is that important to him? (I would guesstimate that if the 15 year is $1900, that the 30 year wou...

Liberty1100

Wouldn't changing jobs and increasing your skill set (especially after 15 years) make you a better future employee? Double the salary seems too good to deny.

Liberty1100

I agree with the advice of not doing anything for a couple of months. Maybe you have debts to pay off. Maybe now is the time to move across the country. With that windfall, you have increased your assets (cash) and you did not increase your income, so don't strain your budget and take on a mortgage....

Liberty1100

I am helping my older sister do her taxes. One of her clients, a sole proprietor, has not issued her a 1099 yet. We have emailed him several times over the last month to have him issue it but all he responds with is he's behind (isn't everyone!). The amount of the 1099 should be about 5% of her inco...

Liberty1100

What got me was the pet question. I have never owned a pet, so I would have never came across it.

Liberty1100

I came across this short quiz on Yahoo! Finance. Please take a look and see how well you guys do!

http://finance.yahoo.com/news/most-amer ... 58522.html

I got 7/10... which I would like to think isn't bad. What did you get?

Liberty1100

Hopefully someone here knows more about this than me, but I would imagine that the other 3 would like to buy out the 4th that couldn't bare the debt.

Liberty1100

Would her income increase over the next 8 years anyways? My guess it would.

I would reevaluate this every year as you prepare your taxes. There are plenty of variables that might will change.

Liberty1100

My suggestion is think about real estate management and investment. Find a place where you can gross $1100 a month after paying taxes, property management fees, mortgage, insurance, and the like. In this example, yes, you would be entertaining risk, but you can use leverage to your advantage by putt...

Liberty1100

ETFs are becoming more and more creative.

How are you using these Momentum ETFs into your asset allocation?

Liberty1100

Maybe you should follow what Whitecoatinvestor.com has as the hierarchy (http://whitecoatinvestor.com/student-loans-vs-investing/) for this. 1) High Interest debt (8%+) - You have none 2) Max 401k - What you are doing. 3) Pay off non-deductible loans (5-8%) - None 4) Roth IRA or like accounts - What...

Liberty1100

As a recent college graduate, it isn't the degree that matters, but the experience. I studied Mechanical Engineering and got great grades. Just about every job posting prefers more experience than just a degree. So things you could think about: 1) Go from government to the public sector. Usually you...

Liberty1100

My annual payment for insurance is about $1100. Does that go down after I fully pay for the car? I do not know of any direct impact on insurance rates caused by vehicle financing or the lack thereof. Having a loan on the car usually requires you to carry comprehensive and collision coverages, which...

Liberty1100

The smart move is to take your dividend check and purchase more equity in the business, otherwise you are less of a true "partner" and more of just a quasi-partner in name only but in reality you are just an employee. If you are as you say you are - the moving force in making this partner...

Liberty1100

I would follow the posters before me advice and work for a compromise. Maybe a split 75% SEP IRA and 25% dividends for some ideas. Let's say they don't move. I wouldn't think this would be such a terrible terrible idea for you. Maybe this could mean less 401k or IRA contributions for next year. You ...

Liberty1100

I did purchase Gap insurance. My car is a hybrid, so with Gas below $60/barrel, it doesn't look awfully good holding its value it has. And that income number is just basic. I do make some overtime as well but I do not like to consider that for this purpose. Yeaaahhh, it was a splurge after I got my ...

Liberty1100

I have a car loan that had a principal balance of $35,367, an interest rate of 2.09% and is for 5 years (60 months). The payments are $621.84 and so far I have paid 5 payments of $1000. Now my question is, do I keep paying it off and doing what I am doing, so I can get it paid in say 3 years instead...

Liberty1100

Wouldn't a safe strategy be splitting the $5500 to both the Roth and the traditional IRAs? Since there's forced distributions with one of them, you could use the other to time the market (when retired).

am I on the same page?

Liberty1100

Now, are you guys factoring in contributions? Say you had 10k on Jan 1st, and at the end of the year you had 15k, but throughout the year you put in 2,500 throughout the year. Would your return be based on 15-12.5 or are you considering just the start and the end? I have thought a lot recently about...

Liberty1100

I am thinking of subscribing to some more investment magazines. What investment or money magazines do you subscribe to and find the most interesting/useful?

Liberty1100

While complaining, it may be worth it to purchase the domain name from them. That way, if someone types in bogleheads.com, they just get directed to bogleheads.org.

Liberty1100

I like sixty40's idea as well. Is the now single owner going to retire soon? I was thinking you do more of a long term deal than the original 5 year deal, 235k, with 9% interest. Something along the lines of 10 year, 235K, with 4% interest. You would pay about $2,379.26/month which is much more liva...

Liberty1100

First off, let me say thank you to everyone for the responses. There is a world of knowledge on this forum! Now, how does the division of the LLC from personal finances function? In interest of this being a financial investment, how does the positive cash flow from the property eventually pay out? ...

Liberty1100

My guess is that at 80.04 can be considered 80.040 in some cases. 80.041 would not trip your limit, but 80.039 would. One might round or carry differently than the other.

Liberty1100

Thanks for the OP for this topic. I am very curious about this as well. With an LLC, you would still have to buy insurance, so wouldn't you just save the hassle and just buy more insurance?

If I form an LLC for the rental property, I wouldn't be able to do any repairs myself?

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