Search found 14086 matches

by Watty
Tue Dec 11, 2012 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: First time homebuyer - 20% down vs 3% down
Replies: 43
Views: 3697

Re: First time homebuyer - 20% down vs 3% down

You may pay a premium in the rate, say a.25%-.625% higher rate, You need to make a spreadsheet with the actual numbers. Very roughly you are looking at a $100,000 loan or a $125,000 loan. If you invest the $25,000 and your investments beat the mortgage interest rate by 2% then you would end up with...
by Watty
Mon Dec 10, 2012 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: Another help with Ameriprise topic! HELP
Replies: 10
Views: 1852

Re: Another help with Ameriprise topic! HELP

My father had Vanguard accounts before he passed away so that was my first choice. I guess I started thinking about Fidelity because there is a local branch. We have accounts at both and this is not uncommon. The ones at Fidelity were set up because of some complications with funds coming from a th...
by Watty
Mon Dec 10, 2012 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance for current home I plan to rent in future
Replies: 5
Views: 731

Re: Refinance for current home I plan to rent in future

The 30 year mortgage is what I would do since you will be keeping it for a long time. My thinking is that either interest rates will either; 1) go up higher than that rate 2) stay very low for decades but for this to happen the economy would have to be in dire shape and having the extra cash flow wi...
by Watty
Mon Dec 10, 2012 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: Moving up tax brackets
Replies: 11
Views: 1922

Re: Moving up tax brackets

You can also get an early release version of tax software and do a preliminary return then and add some rollover numbers to it to see how much this will change your taxes for various rollover amounts. This will also show changes in your state taxes, if the tax software is ready for that state, so yo...
by Watty
Mon Dec 10, 2012 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Please help me celebrate [Mortgage to be Paid Off]
Replies: 48
Views: 4286

Re: Please help me celebrate [Mortgage to be Paid Off]

Congratulations. A few months after it is paid off be sure to check back with the local agency that keeps track of the property titles to make sure that the mortgage lien has been removed even if you get a letter saying it has been removed. You might even be able to see that on their web site. Once ...
by Watty
Mon Dec 10, 2012 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: Penfed 5/5
Replies: 8
Views: 1419

Re: Penfed 5/5

My main question is that since we are not maxing our retirement accounts should the money saved be invested in retirement accounts or used to paydown the mortgage? Unless you have a goal of paying off the mortage soon or are in a very low tax bracket then maxing out a DEDUCTABE retirment account is...
by Watty
Mon Dec 10, 2012 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Saving to Payoff Mortgage Early-Need Suggestions
Replies: 27
Views: 2428

Re: Saving to Payoff Mortgage Early-Need Suggestions

....but a friend said with an interest rate of 2.625% why not put it in a mutual fund that would certainly pay more than 2.625..... I would not encourage doing but with the same logic you should have gotten a 30 year mortgage for 80% of your houses value and invested all of it. Even better once you...
by Watty
Sun Dec 09, 2012 9:25 pm
Forum: Investing - Help with Personal Investments
Topic: What would be a reasonable AA for a 19 year old?
Replies: 12
Views: 1469

Re: What would be a reasonable AA for a 19 year old?

Maxing out the Roth likely makes sense because it sounds like she will be in a much higher tax bracket if things go well and she can withdraw the contributions if needed. If she can do that that would be a great start for her retirement savings but I would be cautious about investing too much as if ...
by Watty
Sun Dec 09, 2012 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Refinance home equity loan?
Replies: 9
Views: 994

Re: Refinance home equity loan?

I opted for the 10 year 3.74% loan, taking the extra 10k from the proceeds and rolling it back into the loan, will save a lot of dollars over the course of the loan and knocked four years off. Wouldn't it be even more than four years? By going from 168 months on your current loan to a new ten year(...
by Watty
Sun Dec 09, 2012 4:06 pm
Forum: Personal Consumer Issues
Topic: Engineering School Choices; AR-Fayetteville vs. Missouri S&T
Replies: 30
Views: 3273

Re: Engineering School Choices; Ark vs. Miss S&T

I went to University of Missouri-Rolla (now Missouri S&T). Me to , I graduated in the late 70's with a Comp Sci. degree so my info is a bit dated but back then it had a good regional reputation. I've lived on the west coast and the southeast I've never had a problem with people not thinking that it...
by Watty
Sun Dec 09, 2012 1:23 am
Forum: Personal Consumer Issues
Topic: MD with MBAs question
Replies: 32
Views: 3951

Re: MD with MBAs question

I have seen a number of articles like this about how bad the job market is for lawyers right now so that could be a risky way to go even though your situation would be different than someone looking for their first job.

http://online.wsj.com/article/SB1000142 ... 58142.html
by Watty
Sun Dec 09, 2012 12:39 am
Forum: Personal Consumer Issues
Topic: Selling Home - Neighbor has barking dog
Replies: 27
Views: 4718

Re: Selling Home - Neighbor has barking dog

One problem you might have if you get her to temporally keep the dog quiet is that once the new owners move in they might be very upset that covered up the problem and didn't disclose it. I'm not a lawyer or anything but you might look into what your local laws say about this. It could be that seein...
by Watty
Sun Dec 09, 2012 12:27 am
Forum: Personal Finance (Not Investing)
Topic: Refinance home equity loan?
Replies: 9
Views: 994

Re: Refinance home equity loan?

As I recall when I refinanced with their 5/5 ARM it had a minimum amount of maybe $75,000 or so to get the no cost feature so you might not be able to use that. Be sure to check out your local credit unions to see what sort of rates they have. If you have paid off cars/RV's/boats etc that are worth ...
by Watty
Fri Dec 07, 2012 12:17 pm
Forum: Investing - Help with Personal Investments
Topic: Business Sale, now what?
Replies: 8
Views: 1108

Re: Business Sale, now what?

..It is interesting that the replies range from "enjoy your retirement" to "you will be doing good to get 2%." ... The 2% number was referring to interest and dividends. You would also likely have a very significant amount of unrealized capital gains over the long term if you also invest in stocks ...
by Watty
Thu Dec 06, 2012 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Putting house in adult kids names
Replies: 16
Views: 2782

Re: Putting house in adult kids names

disadvantage: gift tax loss of control places property at risk to childrens' creditors/liabilities/judgments against possible loss of property tax incentive if elderly, or homestead exemptions look back period for Medicaid eligibility Add; The kid gets divorced and new new ex-spouse gets half the h...
by Watty
Thu Dec 06, 2012 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Business Sale, now what?
Replies: 8
Views: 1108

Re: Business Sale, now what?

.My first question concerns the fact that I do not currently have any tax-deferred accounts. Does this affect anything regarding using a simple three-funded approach? There is good news and bad news. The bad news is that interest rates and dividends are pretty low and you will be doing good to get ...
by Watty
Thu Dec 06, 2012 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: bridge loan or mortgage?
Replies: 10
Views: 1403

Re: bridge loan or mortgage?

Be sure to check the details of any no cost loan options. Some of them charge some fees if the loan is paid off quickly.

If possible some other options would be a margin loan on a taxable brokerage account or a 401K loan.
by Watty
Thu Dec 06, 2012 11:11 am
Forum: Investing - Help with Personal Investments
Topic: When is the best time to take a RMD?
Replies: 6
Views: 1610

Re: When is the best time to take a RMD?

When taking a RMD in December are you better off taking it on the record date of the year end distributions or the day after? I can't decide . Bob Within the IRA that the money comes out of it does not matter since if a mutual fund is at $100 and they have a $1 distribution then the price will drop...
by Watty
Wed Dec 05, 2012 9:35 pm
Forum: Investing - Help with Personal Investments
Topic: Need advice-Lump sum or annuity?
Replies: 3
Views: 1057

Re: Need advice-Lump sum or annuity?

One thing you have not mentioned is taxes. It would be good to look at how the annuity would affect your tax rate and how much of your social security is taxed. If you will be in the range where every dollar of from the annuity makes a significant additional amount of your social security taxable th...
by Watty
Wed Dec 05, 2012 12:08 am
Forum: Investing - Help with Personal Investments
Topic: Large portfolio -- Grateful for your advice
Replies: 33
Views: 3485

Re: Large portfolio -- Grateful for your advice

As far as living off of your bonds, either munies or taxable, an alternative would be to just sell a little bit of stock holdings each year. Since a very low percentage of that would be capital gains that wouldn't generate a lot of taxes. If bonds otherwise fit into your portfolios for your desired ...
by Watty
Tue Dec 04, 2012 11:50 pm
Forum: Investing - Help with Personal Investments
Topic: Help Me Help My Parents - Age 50, low current balances
Replies: 24
Views: 3126

Re: Help Me Help My Parents - Age 50, low current balances

I might have missed it but are they renting now or do they own a home? New York has a wide range of house prices and property taxes. If they live in an expensive area with high taxes then they might consider relocating to a lower cost area when they retire. There are a lot of nice areas in the count...
by Watty
Tue Dec 04, 2012 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: 62nd Birthday - Anything to do re finances?
Replies: 17
Views: 1726

Re: 62nd Birthday - Anything to do re finances?

Here is a checklist of dates;

http://www.bogleheads.org/wiki/Checklis ... ment_dates


You may be able to get a number if senior discounts now.
by Watty
Tue Dec 04, 2012 9:55 pm
Forum: Personal Consumer Issues
Topic: Virgin Mobile pay as you go-- new rules
Replies: 19
Views: 8826

Re: Virgin Mobile pay as you go-- new rules

FYI, if you have a large Virgin Mobile balance then you can use it to buy a high end or regular phone on their web site. You do not have to use the phone yourself so you can give it away or sell it. To do this you add the phone to your cart and when you go to checkout then the dropdown where you sel...
by Watty
Tue Dec 04, 2012 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Triplex purchase.
Replies: 12
Views: 922

Re: Triplex purchase.

Personally, I would not want to live with or under my tenants. Plan "B" could be to rent the first floor in a few years and move someplace out so that would not be a deal breaker for me. Be sure to look at the parking. You probably have two cars, so with the tennants cars you may need 5 or 6 parkin...
by Watty
Mon Dec 03, 2012 11:21 pm
Forum: Investing - Help with Personal Investments
Topic: I've decided to fire advisor - seeking some initial advice
Replies: 12
Views: 1820

Re: I've decided to fire advisor - seeking some initial advi

One thing to do is to make sure that you have all of your cost basis information before moving the account. Even if the advisor is very cooperative that information can be hard to get years from now when you might need it. Depending on how involved the advisor is on preparing your taxes you might wa...
by Watty
Mon Dec 03, 2012 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Refi. from a 30 to 15 year mortgage - pay down principal?
Replies: 12
Views: 1387

Re: Refi. from a 30 to 15 year mortgage - pay down principal

It isn't right for everyone but another option is the PenFed 5/5 ARM that is at 2.75%. A nice thing about it is that they pay almost all the closing costs including the appraisal. I refinanced with this loan about a year ago and as I recall there was only one local fee of abut $200 that I had to pay...
by Watty
Mon Dec 03, 2012 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Buy House with Cash or Get a Mortgage?
Replies: 46
Views: 5607

Re: Buy House with Cash or Get a Mortgage?

I am 61 years old and have a Defined Benefit Pension plan plus retirement savings. You have a few problems with making this work because of your age; 1) The generic asset allocation is "your age in bonds" so if you follow this then out of the $188K you borrow you will be investing 61% of it, or $11...
by Watty
Sun Dec 02, 2012 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Nest Egg number question
Replies: 21
Views: 2655

Re: Nest Egg number question

I would NOT recommend doing it when you are relatively young but another cross check to see if your retirement savings target goal is in the right ballpark is to see what a single premium immediate annuity would cost. You can check here to see what a single premium immediate annuity would cost today...
by Watty
Sun Dec 02, 2012 12:20 pm
Forum: Personal Consumer Issues
Topic: moving across country - need advice
Replies: 22
Views: 2790

Re: moving across country - need advice

Instead of trying to get her to "throw stuff out" or give it to a semi-generic "Good Will" you might have better luck in taking the approach of giving it to a charity so support a cause that she feels strongly about. If you are using a moving company then one thing to watch out for is that they are ...
by Watty
Sun Dec 02, 2012 10:49 am
Forum: Investing - Help with Personal Investments
Topic: How should I invest $500k I don't need right now?
Replies: 11
Views: 2115

Re: How should I invest $500k I don't need right now?

I would probably put the money in a 6 month treasury bond while educating myself. +1 Before you can decide how to invest it you will need to decide what the money will likely eventually be used for since investing for retirment is much different than if you will use it to buy a house in a few years...
by Watty
Sun Dec 02, 2012 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Thoughts on Edward Jones?
Replies: 44
Views: 6378

Re: Thoughts on Edward Jones?

They trust the advisor and I'm sure he's a good guy, If they have been with them for years then it is likely that their salesman is about their age or older. In addition to all the other issues a huge problem that people run into is that eventually the salesman they are happy with(right or wrong) l...
by Watty
Sat Dec 01, 2012 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: strangely afraid to roll over my 401k
Replies: 24
Views: 2702

Re: strangely afraid to roll over my 401k

will they assume I am preparing to leave?
This would actually be more a sign that you were planning to stay. If you were planning to leave then you would likely just wait and do a normal rollover after you left.
by Watty
Sat Dec 01, 2012 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: How many funds in your retirement accounts?
Replies: 56
Views: 5507

Re: How many funds in your retirement accounts?

Large cap US stocks index
Mid cap US stocks index
Small cap US value stocks index
(My 401k does not have a total stock market index fund)

Total international stocks
Total US stock index fund
TIPS mutual fund

And about 10% in each of;
Berkshire Hathaway
3% i-Bonds
by Watty
Sat Dec 01, 2012 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance - boglehead way
Replies: 26
Views: 3184

Re: Umbrella insurance - boglehead way

To me it seems like having a million like I do will cover most possible things and increasing it to two million will not help me a lot if there is a three million dollar, or more, lawsuit that I lose.
by Watty
Fri Nov 30, 2012 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Young Investor Help with 401K
Replies: 3
Views: 507

Re: Young Investor Help with 401K

You're going to make a lot more money with the lower expense ratios. It's just the math of compounding returns and costs. When I changed my portfolio, I calculated the difference in costs over my investment horizon-- several decades, i.e., the rest of my life. The difference came to about $250,000....
by Watty
Fri Nov 30, 2012 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: Extra Principal vs. Investing
Replies: 25
Views: 2570

Re: Extra Principal vs. Investing

Tax Rate: 25% in NV (no state tax)
Since you are in the 25% tax bracket I would max out any deductable retirment accounts first.

With the tax saving you can put an extra $266 a month into a deductable retirment account instead of paying $200 towards the mortage and paying $66 in taxes.
by Watty
Fri Nov 30, 2012 12:31 pm
Forum: Personal Consumer Issues
Topic: To go or not to go - family trip to Europe
Replies: 81
Views: 6402

Re: To go or not to go - family trip to Europe

Caduceus, would you please offer more your experience about 'travel like a student'? One of my experiences was that I stayed in Hostels in Ireland five years ago when I was traveling with my wife and teenage son. This was in early to mid-June before the local schools and colleges had let out so the...
by Watty
Fri Nov 30, 2012 12:06 am
Forum: Personal Finance (Not Investing)
Topic: How much do we really need?
Replies: 51
Views: 7260

Re: How much do we really need?

need?
Need or want?

You need to remember that the US median household income is only about $50K and plenty of people get by on that.
by Watty
Thu Nov 29, 2012 10:51 pm
Forum: Personal Consumer Issues
Topic: To go or not to go - family trip to Europe
Replies: 81
Views: 6402

Re: To go or not to go - family trip to Europe

I'm not a travel snob and I've done several semi-budget trips to Europe because with my budget I can go for three weeks and stay in modest accommodations compared to staying in more typical hotels and spending my entire budget in ten days. This usually involves staying at small hotels a bit outside ...
by Watty
Wed Nov 28, 2012 5:35 pm
Forum: Investing - Help with Personal Investments
Topic: Help me grow a huge windfall for charity
Replies: 58
Views: 5325

Re: Help me grow a huge windfall for charity

Does it make sense to pay off the mortgage? On the one hand, the interest rate is very low -- the mortgage tax deduction puts it in the mid 1% percent -- and I could likely beat that in the market. Yes, go ahead and pay it off. This is especially true since you have an ARM. A better argument could ...
by Watty
Wed Nov 28, 2012 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Am I crazy?
Replies: 38
Views: 3492

Re: Am I crazy?

A few things that I have not seen mentioned; State income taxes. Some people that are going to do a large rollover will move to a state that does not have income taxes or exempts retirement income and then do the rollover to avoid paying the state taxes. Change in marriage status. If you are single ...
by Watty
Wed Nov 28, 2012 12:57 pm
Forum: Personal Consumer Issues
Topic: Vacation to Washington DC
Replies: 44
Views: 3840

Re: Vacation to Washington DC

A tip on where to eat when you are in the mall area. There are not a lot of places to eat around most of the museums other than the packed restaurants within the museums. The Ronald Reagan building is a block or two off the mall and it has a huge food court in the basement with wide range of food ch...
by Watty
Tue Nov 27, 2012 11:54 pm
Forum: Investing - Help with Personal Investments
Topic: About to Pull The Trigger on Retirement
Replies: 34
Views: 3445

Re: About to Pull The Trigger on Retirement

I would not recommend it for everyone but given that you are so risk adverse one option to consider would be to invest all the retirement funds in a ladder of individual TIPS with about a ten year duration. The rates are pretty puny right now but that will give you inflation protection and as the ra...
by Watty
Mon Nov 26, 2012 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Age 18, should I get a credit card?
Replies: 39
Views: 2403

Re: Age 18, should I get a credit card?

I agree with the others that said to get one with a low limit if you will use it sparingly and pay it off each month. If you are not 100% sure that you can handle one responsibly then wait a few years. If you mess up your credit then not only does that cause credit problems but many employers check ...
by Watty
Sun Nov 25, 2012 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: A Separate House Downpayment Savings Account
Replies: 10
Views: 2097

Re: A Separate House Downpayment Savings Account

Can we hold separate savings account within the same bank for the downpayment (US Bank), should we utilize a Vanguard Money Market account, or try another avenue? What I did years ago was that I saved up my first down payment by having part of my paycheck automatically deposited in a saving account...
by Watty
Sun Nov 25, 2012 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement
Replies: 50
Views: 4636

Re: Retirement

To all of those who wonder about the $15,000/month figure - I have a 13 year old daughter who goes to private school. Have already saved $200,000 for her college tuition separate and apart from the $4,000,000. Does this change the picture? You need to come up with four separate budget figures; 1) T...
by Watty
Sun Nov 25, 2012 9:35 pm
Forum: Investing - Help with Personal Investments
Topic: Cash versus Pay-off Part of Mortgage
Replies: 42
Views: 3093

Re: Cash versus Pay-off Part of Mortgage

One thing that might help in deciding is if you look at what your home equity will be as a percentage of your net worth. If paying down the mortgage would leave you with a high percentage of your net worth in home equity then that would be a red flag to me that paying down the mortgage might not be ...
by Watty
Sun Nov 25, 2012 1:41 am
Forum: Personal Finance (Not Investing)
Topic: personal finance/life decisions vis a vis fear and defense
Replies: 18
Views: 2273

Re: personal finance/life decisions vis a vis fear and defen

.....I used my network to land a federal job at close to the same salary... This job has been secure and not terribly stressful, but with each passing day, I question how much longer I can endure the mental discomfort of feeling hogtied by bureaucracy......I have hesitated to leave the job however,...
by Watty
Sat Nov 24, 2012 10:20 pm
Forum: Investing - Help with Personal Investments
Topic: Making of the best of my crappy 401k
Replies: 6
Views: 1489

Re: Making of the best of my crappy Principal 401k

As others have said you are doing a good job and asking the right questions. You would want to contribute enough to get the full employer match and then invest in your other retirement accounts where you can have a lower expense ratio. You might look at these links on how to set up a simple(but good...
by Watty
Fri Nov 23, 2012 4:43 pm
Forum: Personal Consumer Issues
Topic: About buying a house....
Replies: 16
Views: 1977

Re: About buying a house....

I can remember when mortgage rates were real high and many people were locked in their houses since there was no way that they would give up a 5% mortgage and buy a new house with a 10% mortgage. If interest rates go up you may be in your first house longer than you plan to be. As a 30-something, i...