Search found 4600 matches

by john94549
Thu Mar 24, 2016 8:12 pm
Forum: Investing - Theory, News & General
Topic: "Mitigating the Risks of Cognitive Decline"
Replies: 45
Views: 8778

Re: "Mitigating the Risks of Cognitive Decline"

One simple tool I have used is the IRA CD. If all else fails (including you, personally), the IRA CD just clicks along, perhaps renewing at horrid rates, but it still clicks along. By definition, as a CD, it is FDIC- or NCUA-insured, and can never lose value. My heirs are clearly noted in the beneficiary statement.
by john94549
Mon Mar 21, 2016 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Is California income tax-friendly for early retirees?
Replies: 71
Views: 10259

Re: Is California income tax-friendly for early retirees?

MikeWillRetire wrote:
I'm curious. What is it about the water in Lafayette that it costs $500 per month?
It's as I noted above. Given the severe drought, EBMUD (our water district) encouraged everyone to cut waaaay back on outdoor irrigation, which we did. Then, they socked us with higher rates, because we weren't using enough water to cover their fixed costs (or so they claimed). Add to that our drier climate, landscaping planted when water was not so much an issue, and large lots, you get the picture.

FWIW, it's the same story with PG+E. Our friendly gas and electricity provider has (over many years) encouraged various energy-saving measures, dutifully followed. As a "thank you", it seeks rate increases because, duh, we aren't using enough.
by john94549
Mon Mar 21, 2016 10:49 am
Forum: Personal Investments
Topic: Investing in bonds [want to buy home in 5 years]
Replies: 20
Views: 2180

Re: Investing in bonds [want to buy home in 5 years]

Dan1979 wrote:Thanks for the great advice everyone - point well-taken that long term investing is different than saving for a short-term goal. Minimizing risk is essential in our situation and I didn't realize CD rates were so high - definitely sounds like the right option for us right now.
For current savings, I'd seriously consider the 5-yr CD. It will mature just about the time you need the money. For future savings, consider a CD with a maturity close to your anticipated down-payment (i.e., next year buy a 4-yr CD, the year after, a 3-yr, and so on). Alliant CU (easy to join) has tiered CDs which might fit the bill.
by john94549
Mon Mar 21, 2016 8:54 am
Forum: Personal Investments
Topic: Retired and Risk Averse - Suggestions Please
Replies: 27
Views: 3915

Re: Retired and Risk Averse - Suggestions Please

Another vote here for a ladder of 5-year CDs as part of your fixed-income allocation. From your VMMXX, plop 90% in Total Bond and 10% in the best five-year CD you can find (check http://www.depositaccounts.com). Next year, buy another 5-year CD (with your bond fund money) of like amount. Repeat for five years. At the end of five years, you should have roughly 50% of your fixed-income in a five-year ladder and 50% in the bond fund.
by john94549
Mon Mar 21, 2016 8:41 am
Forum: Personal Finance (Not Investing)
Topic: How to Prepare for Medical Costs in Retirement?
Replies: 35
Views: 4755

Re: How to Prepare for Medical Costs in Retirement?

Before I turned 65 (close to four years ago), I had two major concerns: (a) availability of PCPs who were willing to take new Medicare patients, and (b) cost. If available in your area, consider Kaiser Senior Advantage. Our local Kaiser facility (Walnut Creek, CA) is but a five-minute drive. Costs (such as co-pays) are detailed and annual maximums clearly explained. Stated another way, no surprises. I knew how my Mom struggled with Medicare/Medigap before she died, and I was looking for a simpler alternative. Feel free to PM me if you have any questions.
by john94549
Wed Mar 16, 2016 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Loan to Family Member - Any Tax Issues?
Replies: 13
Views: 1769

Re: Loan to Family Member - Any Tax Issues?

This recently came up in another thread. The bank may well ask (in the loan application) whether any part of the down is a loan. If so, the loan might not be approved. A straight-up "gift", on the other hand, might well pass muster. Gifts within the lifetime exclusion generate no tax (although you will have to file the form).
by john94549
Mon Mar 14, 2016 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Is California income tax-friendly for early retirees?
Replies: 71
Views: 10259

Re: Is California income tax-friendly for early retirees?

Jane1, the total elimination of state income tax on Social Security benefits is a quandary. For example, many states tax a portion (Kansas comes to mind), but I could never wrap my arms around a blanket exemption. I'm hardly advocating higher taxes, but it is a bit of a head-scratcher,
by john94549
Mon Mar 14, 2016 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Is California income tax-friendly for early retirees?
Replies: 71
Views: 10259

Re: Is California income tax-friendly for early retirees?

VictoriaF wrote:
Oops! OK, I will stay in DC.
Wise decision.
by john94549
Mon Mar 14, 2016 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Is California income tax-friendly for early retirees?
Replies: 71
Views: 10259

Re: Is California income tax-friendly for early retirees?

VictoriaF wrote:
Carefreeap wrote:But I was so happy to return to CA even if the housing costs were 2x what we would have paid for a house.
A reminder: buying a house is not mandatory. If it were me, I'd rent in San Francisco.

Victoria
Victoria, the "going rate" for a one bedroom in the City: $3500/mo. No parking. Seriously.
by john94549
Mon Mar 14, 2016 5:56 pm
Forum: Personal Finance (Not Investing)
Topic: Is California income tax-friendly for early retirees?
Replies: 71
Views: 10259

Re: Is California income tax-friendly for early retirees?

Petaluma was always known as the home for police officers. It was an open secret that a cop could never, ever, afford a home in the City. So, Petaluma became the "go-to" spot. Petaluma, eggs and cops.
by john94549
Mon Mar 14, 2016 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Is California income tax-friendly for early retirees?
Replies: 71
Views: 10259

Re: Is California income tax-friendly for early retirees?

Duckcalldan, last I checked, Petaluma had neither coastal breezes nor an airport. Santa Rosa used to have an airport.

Funny story: Many, many, years ago I flew on a prop from Santa Rosa to Redding. Half-way into the flight, the pilot said "oops, we need gas". He was kidding. I was not amused.
by john94549
Mon Mar 14, 2016 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Is California income tax-friendly for early retirees?
Replies: 71
Views: 10259

Re: Is California income tax-friendly for early retirees?

GenXer, I guarantee you, there is no such thing as a monolithic Bay Area. We are as varied as Kansas is from Oregon. Set foot in Berkeley, then drive through the Coldecott Tunnel to Orinda, ten minutes east. Or, moving in a different direction, contrast Daly City with Hillsborough.

My goodness, we even have a phenomenon known locally as "micro-climates", where rain might be coming down in one area while other areas are dry.
by john94549
Mon Mar 14, 2016 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Is California income tax-friendly for early retirees?
Replies: 71
Views: 10259

Re: Is California income tax-friendly for early retirees?

Bottom line: Due to Prop 13 and the blanket exemption from CA state income tax for Social Security payments*, California is a wonderful state to "age-in-place" as it were. Mind you, I could never quite figure out why California decided to exempt S/S.

*This is more than a rounding error. For example, folks in the highest bracket here in CA pay roughly a dime from every dollar to the State, on the margin.
by john94549
Mon Mar 14, 2016 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: Is California income tax-friendly for early retirees?
Replies: 71
Views: 10259

Re: Is California income tax-friendly for early retirees?

Carefreeap wrote: Are you in 94549, Lafayette?
Yup, you betcha.
by john94549
Mon Mar 14, 2016 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Is California income tax-friendly for early retirees?
Replies: 71
Views: 10259

Re: Is California income tax-friendly for early retirees?

Carefreeap wrote:
Our utility bills are cheap because of our mild climate. Gas and electric are about $120 year round for 2500 sq.ft house. Don't need A/C. Water is $25/mth
We must live on different planets, or, at least, different parts of the Bay Area. I think the last time PG+E charged us $120/mo (yes, we have a house of similar size to 2500 square foot) was eons ago. Multiply by four.

Water, don't get me started. EBMUD wants us to kill all our foliage, while charging higher rates because we aren't using enough water. Add a zero and multiply times two. $500/mo for your average suburban water bill.
by john94549
Mon Mar 14, 2016 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Is California income tax-friendly for early retirees?
Replies: 71
Views: 10259

Re: Is California income tax-friendly for early retirees?

As others have noted, Prop 13 hits new arrivals. For example, long-time residents/homeowners (as are we) pay a fraction of the property tax levied on new buyers. That said, a YUUUGE (as Bernie or Larry David might say) tax break in California for retirees is no state income tax for Social Security. Zero, nada, nothing, zilch.

Mind you, this is a State which taxes capital gains at ordinary income rates.

Go figure.
by john94549
Mon Mar 14, 2016 2:42 pm
Forum: Personal Investments
Topic: House Down Payment Cash - Where to Put? (CA Resident)
Replies: 8
Views: 1579

Re: House Down Payment Cash - Where to Put? (CA Resident)

In a (potentially) rising-rate environment, bond funds might disappoint. As you might know, NAVs can fall when interest rates rise. Accordingly, funds targeted for a finite reason within 1 - 5 years are best plopped in a savings account. Your 1% yield is competitive.

A larger issue is our Bay Area real estate market. The house you have your eyes on will have multiple "all cash" offers, all above the listing price. It's weird. Mind you, how anyone can walk up with a briefcase full of Benjamins and plunk down $1.5 million for a house is beyond me. As Matier and Ross would say, "welcome to San Francisco".
by john94549
Mon Mar 14, 2016 9:02 am
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

betterfinances wrote: I don't think it's possible for most families to max out retirement accounts and save for a down payment and save for college education.
I agree.
by john94549
Mon Mar 14, 2016 8:25 am
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

john94549 wrote:
SQRT wrote: Got legal advice which said the money will not be shared until they use it to purchase a matrimonial home.
I'm unsure whether I'm sneezing or laughing.
What, might I ask, is a "matrimonial home". The phrase "Got legal advice" is scary, but you knew that. As a retired attorney, I am a bit of a cynic.
by john94549
Mon Mar 14, 2016 8:22 am
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

SQRT wrote: Got legal advice which said the money will not be shared until they use it to purchase a matrimonial home.
I'm unsure whether I'm sneezing or laughing.
by john94549
Mon Mar 14, 2016 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Taxes on the sale on inherited home
Replies: 8
Views: 1189

Re: Taxes on the sale on inherited home

I went through the process in 2014. I suspect the Title Company will have you fill out a simple form (which will be submitted to the IRS and state taxing folks). As others have noted, there is a step-up in basis on death.
by john94549
Mon Mar 14, 2016 3:27 am
Forum: Personal Finance (Not Investing)
Topic: How much do you spend on groceries?
Replies: 134
Views: 18360

Re: How much do you spend on groceries?

blackjack4808 wrote:We spend 800 a month

For two folks, empty nesters, buying fresh food and quality groceries, I would not regard this as unusual. Mind you, my wife sets priorities. Food comes first.
by john94549
Mon Mar 14, 2016 3:12 am
Forum: Personal Finance (Not Investing)
Topic: wear and tear (damage deposit return)
Replies: 7
Views: 1198

Re: wear and tear (damage deposit return)

Too funny. The last time we were renters, back in 1973, we spent the better part of two days (count 'em, two) scrubbing our apartment. The apartment manager said he'd never seen it so clean. Yes, we got our deposit back. I think it was $50.
by john94549
Mon Mar 14, 2016 2:41 am
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

gloomydog wrote:Why would anyone expect parents to fund a daughter's wedding in full?


Most assuredly, I agree. However, none of the attendees has plopped a check in the mail*. Bottom line: her wedding, your checks.

*It has been eight years (and two grandsons) later.
by john94549
Mon Mar 14, 2016 1:55 am
Forum: Personal Investments
Topic: Are CDs Becoming A Worse Investment?
Replies: 40
Views: 6828

Re: Are CDs Becoming A Worse Investment?

Agree that CDs are useful at or near retirement, or the need for withdrawals. If you had a 5-yr CD annual ladder which was half of all your FI, wouldn't you like that diversification compared to just this? : http://i64.tinypic.com/30bz61u.jpg . Fixed-income these days is a dart board. Bond funds are useful for re-balancing, but little else. CD ladders are optimal, in my opinion. When in or near retirement, it is noteworthy to look at EWPs. For example, some financial institutions will waive EWPs on partial withdrawals from IRA CDs if over 59 1/2. Most do not. Virtually all will waive EWPs on RMDs, if over 70 1/2, but some do not allow partial withdrawals, even for RMDs*. The devil is in the details, as it were. For retirees, the bottom lin...
by john94549
Mon Mar 14, 2016 12:56 am
Forum: Personal Investments
Topic: Are CDs Becoming A Worse Investment?
Replies: 40
Views: 6828

Re: Are CDs Becoming A Worse Investment?

IMHO CD's among the very best fixed income investments out there. I agree. FDIC and NCUA insurance is about the closest thing to a free lunch out there. If hedge funds could buy insured retail CDs, trust me, they'd do it in a heartbeat. Your principal is guaranteed by the "full faith and credit" clause. Your principal never fluctuates. Your rate is fixed. In a rising-rate environment, a CD ladder is basically a no-brainer. I suspect that CDs have the stigma of being "boring", or "losing to inflation". The concept of "boring" is entirely true. As to "losing to inflation", I respectfully submit "untrue". Even today, a garden-variety 5-yr CD at Alliant CU yields 2.2%. Managing a CD l...
by john94549
Sun Mar 13, 2016 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

itstoomuch wrote:BTW, Our Only, 25% marginal, wasn't funding his 401k and IRA, inorder to achieve the elusive 20%. He also had a headstart in this in that we purposely left a remainder in his UGMA.
My point exactly. I am still puzzled by folks who think Joe and Jane can max out their retirement accounts (which is prudent) AND sock away $20-30K/year after-tax for ten years for a down payment, while also putting money aside for their kids' college fund(s). The math seems daunting.

For your chuckle of the day: our son has three daughters. He also has to save for three weddings (trust me, they can be expensive). Our daughter has two sons. Rehearsal dinners are much cheaper than weddings. Only parents will appreciate.
by john94549
Sun Mar 13, 2016 10:17 pm
Forum: Personal Investments
Topic: VTSAX v.s. SWPPX [Vanguard Total Stock vs. Schwab S&P 500]
Replies: 36
Views: 9036

Re: VTSAX v.s. SWPPX [Vanguard Total Stock vs. Schwab S&P 500]

These two funds are slightly different (by definition), but not so different that I'd get all nervous and jerky. Indeed, until a few months ago, my wife's 401K offered SWPPX, then they swapped to a similar Vanguard fund (VFIAX).
by john94549
Sun Mar 13, 2016 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

Six grand in after tax money for two high income earners is roughly 100-120k gross annually. No bank in their right mind will handover 800k unless the borrowers earn more than that. I might disagree. Lending here in the Bay Area (at least on housing) defies the rules. Two cardinal principles: (a) you must not borrow your down payment; and (2) you must (at least on paper) be able to cover PITI. Other than that, it would appear everything is fair game. For example, when we went to re-finance our mortgage some years back, the bank totally disregarded our assets, and focused entirely on income streams. Stated another way, it was preferable to actually withdraw from a tax-deferred account than not to. As to tax-deferred accounts (IRAs, 401Ks) a...
by john94549
Sun Mar 13, 2016 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

JGoneRiding wrote:
Just curious--so the IRS limits "gifts" to and from individuals-not couples-
The IRS does not limit gifts. The IRS merely requires you to file a form. Unless you are quite wealthy, and "gift" well in excess of the lifetime limit (currently north of $5.4 million per individual), there is no gift tax.

Many folks confuse "reporting", and assume if they gift above the reporting level, they might owe tax. Not so. The IRS merely keeps track of gifts within your lifetime to a specified person. Should those gifts exceed the limit noted, either a gift tax or an estate tax will be levied. It's one of those academic problems I will never face.
by john94549
Sun Mar 13, 2016 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

Betterfinances, it's a cash-flow issue. As I noted, and as most Bogleheads would agree, prudence dictates saving in tax-deferred vehicles (401K, IRA, and the like). In addition, many "techies" are compensated with a modest salary, combined with generous stock options. After-tax savings are often an after-thought. Regrettably, down payments must involve after-tax savings (or, the Bank of Mom and Dad, FDIC-insured). Let's assume your above-average two-income techie family plunks the max in his or her 401K. They have one child, maybe two, and have child-care expenses. Even earning (combined) $300K+, before taxes, it's unrealistic to assume after-tax savings at more than $20K/annum. At that rate, assuming zero appreciation in house pr...
by john94549
Sun Mar 13, 2016 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

Beth, I would agree with what you said but for the co-signing. As noted above, my wife's parents co-signed on our first house*. It was a matter of trust. I suppose it is possible to "get burned", but life comes with choices. They chose to help us, we chose to help our kids. Last I checked, all is fine. *It's 1973. I'm just off active duty (Navy). About to start Law School. Wife is employed, but employer is in New Jersey (while we're in California). Her job security is tenuous at best. One child. Would any banker in his or her right mind underwrite our mortgage without a co-signer? The good news is, with the co-signature, we got the house. The monthly payment (principal + interest) was $232/month. Gosh golly, our PG+E bill is twice...
by john94549
Sun Mar 13, 2016 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

Jack FFR1846 wrote:Is my understanding correct? They can afford an $800k mortgage but don't have a dime to put down? If that's the case, couldn't they just save for a few years and start out with their own money as a down payment?
Were it that simple. As I noted above, many (prudent) two-income families direct savings to tax-deferred accounts. Others might be "worth" in the low seven figures, if one were to value stock options. That said, coming up with $200K in after-tax money, "in the bank" as it were, is a stretch. PITI is not the issue. The down is the issue.
by john94549
Sun Mar 13, 2016 6:33 pm
Forum: Personal Investments
Topic: Are CDs Becoming A Worse Investment?
Replies: 40
Views: 6828

Re: Are CDs Becoming A Worse Investment?

Inflation risk? As I noted above, merely rolling your rungs into a 5-yr CD at or above the CPI-U then stated is easy. For the past decade, I have had no problem meeting or beating inflation in my ladder. For example, if one believes the Social Security folks, last year we had "zero" inflation. As in, my Social Security direct deposit went sideways. Meanwhile, I was generating at anywhere from 1.7% (the low) to 5.6% (the high) in my CD ladder*. Mind you, the 5.6% is a 10-yr CD, and an outlier, but you get the drift. Folks who paint CDs with a broad brush always seem to invoke "inflation risk". The key is to ladder. *Even today, a 5-yr CD is available from Alliant CU at 2.2%. While unremarkable, it is somewhat typical. Fiv...
by john94549
Sun Mar 13, 2016 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

KlangFool, at least here in the Bay Area, the down payment can be a stretch, even for two-income techies. On the other hand, the Bank of Mom and Dad (FDIC-insured) is more than willing to help out. Ironically enough, even two-income households who can easily meet the monthly "nut" of home-ownership struggle to find enough for the down. As prudent persons, their savings are often in tax-deferred accounts or illiquid stock options.

Most assuredly, some intra-family "gifts" go off the rails. That said, are we happy we helped? Absolutely.
by john94549
Sun Mar 13, 2016 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

dbr wrote: I wonder of the bank will ask them the source of the down payment and raise any issues?
Absolutely, positively. We had to sign a form (notarized, no less) that our gift was indeed a gift, with no promise or anticipation of re-payment. Banks are fussy.
by john94549
Sun Mar 13, 2016 5:04 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

Carefree, that "starter house" was sold quite some time ago. But you are absolutely correct insofar as commingling is concerned. To the extent that community assets (such as a salary) are used to pay the mortgage, pay the property taxes, pay the (fill in the blank), then any appreciation is a community asset, due to commingling.

Daughter and son-in-law remain happily married, with two wonderful sons.
by john94549
Sun Mar 13, 2016 4:45 pm
Forum: Personal Investments
Topic: Are CDs Becoming A Worse Investment?
Replies: 40
Views: 6828

Re: Are CDs Becoming A Worse Investment?

Gaff74 wrote:
I was thrown off by your comment "A CD ladder is where you park it, after you retire."
I should have said "before you retire". Indeed, I started building my ladder in August of 2006.
by john94549
Sun Mar 13, 2016 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

Duckie, many folks worry about gift tax. Aside from the extremely wealthy, it's highly unlikely that the lifetime limit (in excess of $5 million) will be of concern. For gifts in excess of the "reporting" exclusion, the single largest pain is filling out the form.
by john94549
Sun Mar 13, 2016 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

betterfinances wrote: In other words, there is no way (that I know) to acquire assets that are not part of the marriage while a person is married.

Inheritance is an exception, in some/most/all states, inheritance acquired during the course of a marriage stays outside the marriage. But there is no legal way to call something inheritance when it is actually a gift.
In our case, we "gifted" our children, not the couple. Our daughter actually bought her "starter house" in her name, as separate property, using our "gift" as the down payment. At least in California, unless you commingle gifted or inherited assets, they remain separate property.
by john94549
Sun Mar 13, 2016 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: For Parents Who Have Given a Child Money For Home Down Payment
Replies: 158
Views: 23997

Re: For Parents Who Have Given a Child Money For Home Down Payment

I would do it. In actuality, I should note "have done it". The Bank of Mom and Dad, FDIC-insured. My parents loaned us the money for the down on our first house (back in 1973) and my wife's parents co-signed on the mortgage. We did the same for our kids.

Technically, pursuant to standard mortgage documents, it's a "gift", not a "loan".
by john94549
Sun Mar 13, 2016 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Any experience with VRBO? [Vacation Rentals By Owner]
Replies: 19
Views: 5204

Re: Any experience with VRBO?

We own a condo in Maui. It is in the rental pool, managed by an on-site team. Some owners opt out of the rental pool and go with VRBO, Air, or others. The feedback we get from other owners is that renters booking through VRBO (etc.) were sorely disappointed. As an owner, I certainly would not want a call at 2 am advising the refrigerator in the condo just conked out. As a prospective renter, I would appreciate the amenities which presumably come with a vacation. Amenities which, regrettably, come only to owners or those in the rental pool. For example, my wife is on the Board of Directors of the rental owners' committee. Horror stories she has heard of VRBO abound: renters whose door key pads don't work when they arrive, sub-standard housek...
by john94549
Sun Mar 13, 2016 1:10 pm
Forum: Personal Investments
Topic: Are CDs Becoming A Worse Investment?
Replies: 40
Views: 6828

Re: Are CDs Becoming A Worse Investment?

Parking all your money in them at any point could leave you in the poor house. Two points: (1) I don't think I suggested CDs to the exclusion of other investment vehicles, and (2) a ladder of 5-yr CDs has bested inflation for as long as I can recall. When a rung in my ladder matures, I strive to obtain a yield at or better than the current rate of inflation. Even with ZIRP, it hasn't been too difficult. This blog might be of interest: http://www.depositaccounts.com/blog Ken Tumin regularly updates the best CD rates. Note the best deals on 5-yr CDs. It takes a bit of patience to build a ladder of 5-yr CDs from scratch. Alliant CU, for example, currently offers a 5-yr at 2.2%. Not mind-boggling, but certainly competitive with your garden-var...
by john94549
Sun Mar 13, 2016 10:46 am
Forum: Personal Investments
Topic: Are CDs Becoming A Worse Investment?
Replies: 40
Views: 6828

Re: Are CDs Becoming A Worse Investment?

CDs were never a bad investment. With a CD ladder, you won't get rich, but you won't get poor.

A CD ladder is where you park it, after you retire.
by john94549
Sun Mar 13, 2016 9:58 am
Forum: Personal Consumer Issues
Topic: Concierge medicine Worth It????
Replies: 317
Views: 46605

Re: Concierge medicine Worth It????

I suspect the popularity of MDVIP (posters have noted waiting lists) suggests why it thrives. While medicine is a "profession", it is also a business. My wife's physician finally decided to retire. But, before that, he stopped taking insurance, and never Medicare/Medicaid. As another poster noted, he would always provide a breakdown of the charge and procedure, but dealing with insurance was "up to you".

That said, I am about as happy with Kaiser Senior Advantage as my wife is with MDVIP.
by john94549
Sun Mar 13, 2016 12:42 am
Forum: Personal Investments
Topic: Don't Peek
Replies: 33
Views: 5847

Re: Don't Peek

When I'm really, truly, bored, I look up the value of my IRA CDs and divide by 15. It's amazing.
by john94549
Sun Mar 13, 2016 12:26 am
Forum: Personal Investments
Topic: How to convince high NW father to dump his financial advisor?
Replies: 69
Views: 10355

Re: How to convince high NW father to dump his financial advisor?

Most likely, the old adage "if it ain't broke, don't fix it" comes to mind.
by john94549
Sat Mar 12, 2016 9:04 pm
Forum: Personal Investments
Topic: Assett allocation, pension as bond
Replies: 24
Views: 2184

Re: Assett allocation, pension as bond

Personally, I would not treat a pension as a bond, for asset allocation purposes. Pensions are illiquid, for starters. Pensions are also dependent on the solvency of the issuing agency. My wife has a pension. Were her former employer to go belly-up, her pension (modest as it is) would be guaranteed by the PBGC. Would yours?

I am a cheerleader for IRA CDs, and cash in general. In my humble opinion, there is no substitute for cash.
by john94549
Sat Mar 12, 2016 8:35 pm
Forum: Investing - Theory, News & General
Topic: Your stock funds closed at highest [so far] of 2016 today
Replies: 35
Views: 6000

Re: Your stock funds closed at highest [so far] of 2016 today

livesoft wrote: don't peek
Didn't I start a thread of the same name? It's counter-intuitive, If you say "don't peek", folks peek. My gracious, now we'll be examining whether to "sell in May, and go away". In the same vein, "harch, harch, buy in March" and "April flowers, market glowers". Then, you get the "June swoon". I'm open to other rhymes. Multi-syllabic months are the trickiest.

It's easier to rhyme IRA CDs. "I got two, did you too?" Or, "three point oh, give it a go".