Search found 343 matches

by Tal-
Mon Mar 13, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: How to tackle fiancee's student loan debt
Replies: 33
Views: 3819

Re: How to tackle fiancee's student loan debt

I think that my thoughts would vary drastically based on your relationship and specific plans with your fiance. Assuming that you are planning to be married for life, and plan to have joint finances, the time around marriage is when you start to merge finances. If you end up doing this a month or tw...
by Tal-
Fri Mar 10, 2017 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Payoff Student Loans Early? Requesting help.
Replies: 14
Views: 1275

Re: Payoff Student Loans Early? Requesting help.

It's not uncommon for me to be the dissenting opinion, but it's odd for me to be the one arguing for a bigger emergency fund... I'm a big fan of door #1. At your age, with one income and a mortgage, it would take an *emergency* for me to dip into your emergency funds. This clearly doesn't qualify in...
by Tal-
Fri Mar 10, 2017 9:20 am
Forum: Personal Consumer Issues
Topic: How Do You Share Expenses?
Replies: 52
Views: 5159

Re: How Do You Share Expenses?

Tough situation. I have thoughts, but zero experience in arrangements like this... 1: Don't give her an ownership stake. I'm not sure if this is on the table, but it shouldn't' be. 2: You can't do 20% of PITI or more, as you've done that in the past, and that was associated with ownership. Any arran...
by Tal-
Thu Mar 09, 2017 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: House: Pay Cash then Mortgage (Delayed Financing) - worth it?
Replies: 25
Views: 3573

Re: House: Pay Cash then Mortgage (Delayed Financing) - worth it?

Interesting concept. Sounds like the only benefit of doing delayed financing instead of traditional financing up front is to be able to offer cash and close faster. But if you're going to finance it, I guess delayed is probably better than refinancing after 6 months. Great question. Bingo, I don't ...
by Tal-
Thu Mar 09, 2017 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Portfolio Help- 31 y/o 1st time poster
Replies: 12
Views: 1104

Re: Investment Portfolio Help- 31 y/o 1st time poster

You're in good shape, and have got good advice above. Like you, I lean towards a custom (low-cost) allocation rather than a target date fund, but know that there is no harm nor shame in either. With that said, I wouldn't mix-and-match between these two strategies. I think you know the issues holding...
by Tal-
Tue Mar 07, 2017 9:54 pm
Forum: Personal Finance (Not Investing)
Topic: Fincancial checklist for becoming a landlord in the future
Replies: 35
Views: 3454

Re: Fincancial checklist for becoming a landlord in the future

But I'm curious, why is it [financing rentals] "nearly always" the right call? Is it for the obvious reason that the interest is tax deductible from the rental income? More to protect yourself? Are there other underlying reasons? There are oodles of reasons. Taxes, security, liquidty and debt paydo...
by Tal-
Mon Mar 06, 2017 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Is Early Retirement A Realistic Goal???
Replies: 13
Views: 1954

Re: Is Early Retirement A Realistic Goal???

Hey there. Here are my thoughts: How are you doing? Great! 326K saved is great. You're off to a great start! Props! What about your plan to invest 100K/year over the next 5 years? Absolutely yes!!! Your net worth and security will skyrocket if you do this. And regardless of your long-term goals, you...
by Tal-
Sat Mar 04, 2017 12:54 am
Forum: Personal Finance (Not Investing)
Topic: Fincancial checklist for becoming a landlord in the future
Replies: 35
Views: 3454

Re: Fincancial checklist for becoming a landlord in the future

As far as moving to a 30-yr mortgage, I don't like it. Worked hard to move to a 15-year and the thought of moving "backward" is hard to swallow. Plus the idea that we make this house a rental is still exactly that at this point - just an idea, so don't want to throw all our eggs into this basket qu...
by Tal-
Fri Mar 03, 2017 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Fincancial checklist for becoming a landlord in the future
Replies: 35
Views: 3454

Re: Fincancial checklist for becoming a landlord in the future

Lots going on here... Here are my thoughts: First, the good news. You have a ton working for you! You're obviously financially secure, and your property doesn't sound like a bad long-term rental (decent rent ratio, decent price-point, well rehabbed, you're familiar with it, etc.). Your income and ex...
by Tal-
Mon Feb 13, 2017 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Permanent Life Insurance
Replies: 20
Views: 3272

Re: Permanent Life Insurance

The short answer is: Run. The longer answer is that policies like this are often intuitively appealing, but are virtually never the right move. The talking points of the policies make them sound great – protecting family if you pass, doing life insurance and investments all at once, diversification ...
by Tal-
Mon Feb 06, 2017 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: "Fidelity Go" - any experience?
Replies: 9
Views: 1831

Re: "Fidelity Go" - any experience?

Any ideas for an alternative to a savings account? It depends on your situation, and what exactly you're trying to achieve. For most people, a savings account is the right place to keep all of their emergency savings. Even though it returns next-to nothing, this money should be highly liquid and hi...
by Tal-
Wed Jan 25, 2017 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: Roth is finished... now advice to open Brokerage Acct?
Replies: 4
Views: 659

Re: Roth is finished... now advice to open Brokerage Acct?

We ended up with Fidelity because they manage a 401k, but they have been great over the years. Easy system to use. Responsive when questions come up. Good, low cost options. etc.
by Tal-
Tue Jan 24, 2017 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: Edward Jones [Looking for alternatives]
Replies: 85
Views: 7246

Re: Edward Jones [Looking for alternatives]

You've got good advice above. Here are my thoughts: Who should you go with? Vanguard is the gold standard. They will offer you custom advising fees for a very small fee. We personally have our investments through Fidelity, but if you only want one name, Vanguard is that name. How do I move money ove...
by Tal-
Tue Jan 24, 2017 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for Investing $4M to get 4% Return with Least Risk
Replies: 83
Views: 11210

Re: Advice for Investing $4M to get 4% Return with Least Risk

Just some kind feedback: DO NOT PURCHASE REAL ESTATE!!!! The notion that real estate is a low risk investment feels absurd. A small multi-family may indeed be a good investment, and it may make you a lot of money. And it may work out long term. But, it is far from any "least risk" option. Be careful...
by Tal-
Tue Jan 24, 2017 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Do your own taxes?
Replies: 27
Views: 2537

Re: Do you own taxes?

We've had our taxes done for the last 10 years, since we found a mistake that we had done by hand. However, the cost of doing so has really grown (1500) and I'm now worried that I don't fully grasp what our taxes/tax benefits are. So, this year, we are doing our taxes in parallel. We'll still have t...
by Tal-
Sat Jan 21, 2017 1:40 am
Forum: Personal Finance (Not Investing)
Topic: ok to pull plug and retire?
Replies: 52
Views: 9062

Re: ok to pull plug and retire?

Hey OP, I think your only risk of failure is a big bad happening. This could be anything from you making a bad timing decision, the markets crumbling with WWI, a major medical issue, really bad divorce, or so on. The biggest risk though is your spending - if your spending ramps up, all of the confid...
by Tal-
Thu Jan 19, 2017 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Mother handing over investments to me, not sure which route to go
Replies: 12
Views: 1941

Re: Mother handing over investments to me, not sure which route to go

I think I disagree with most others. Here are my thoughts: Sell the farmland!!! $60K in total liquid assets is a lot of money, but given that this is 100% of her liquidity, it's simply not enough. It sounds like finances are fine for now, and that she is in good health. And, the RE market is strong ...
by Tal-
Sat Jan 14, 2017 11:40 am
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 132
Views: 9882

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

It can also be about more than taxes. We use a Roth over a traditional account for two main reasons: 1 - We can save more in a Roth than in a traditional account (a dollar of post tax is worth more than a dollar of pre tax). 2 - We want the flexibility of early withdrawals or avoiding RMDs. In doing...
by Tal-
Wed Jan 11, 2017 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: $600,000. Now what?
Replies: 55
Views: 11973

Re: $600,000. Now what?

First, congrats. I'm sure that much of how you got here is luck, but much of it is also hard work, frugal living, and research. It's not a path that I would advocate, but it has worked out for you thus far. So, an honest congratulations for being off to a good start on a long journey. Now, to your q...
by Tal-
Thu Jan 05, 2017 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: selling property without real estate agent
Replies: 19
Views: 1896

Re: selling property without real estate agent

Yes, you can. And in this case, it probably makes sense to do the deal without an agent. The two parties will need to develop and sign a contract. A standard real estate contract is available via Google, but you could also draft something in Word and be just fine. You should specify: Price Closing D...
by Tal-
Wed Jan 04, 2017 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: Sell or Refinance/Rent Condo?
Replies: 6
Views: 781

Re: Sell or Refinance/Rent Condo?

I'd probably sell. As a rental, it's not a great investment. A positive cashflow of $300-$400/month in an ideal month on a 280K house is only slightly better than breaking even when you factor in long-term costs. When you factor in that you would need to refi, do not have a PM, do not have an intere...
by Tal-
Wed Jan 04, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: How much term life insurance?
Replies: 12
Views: 1321

Re: How much term life insurance?

And on your point about my net worth - I graduated from business school 3 and a half years ago, which has two implications: 1) I've only had this income for a few years (and, in fact, was closer to $175k three years ago out of business school, so I haven't been at my current income level for even t...
by Tal-
Tue Jan 03, 2017 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: How much term life insurance?
Replies: 12
Views: 1321

Re: How much term life insurance?

You're probably in the right range. I could be talked into anything from $1M to 3M. This means that $2M is a viable number, but going up another $1M doesn't seem unreasonable. If you do increase your life insurance, I would go with a shorter term than 30 years. I think a 10 or 20 year plan for 1M on...
by Tal-
Sun Jan 01, 2017 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Buy or keep renting in Manhattan?
Replies: 25
Views: 4074

Re: Buy or keep renting in Manhattan?

Rent. Normally, this is a nuanced decision in my eyes - but this one feels pretty clear... Buying introduces huge risk to your long-term financial security, and it is risk that would be highly correlated with both your liquid assets and income. Congrats on your wonderful financial situation. But, I ...
by Tal-
Sat Dec 31, 2016 1:51 am
Forum: Personal Finance (Not Investing)
Topic: Landlord Insurance - What To Look For?
Replies: 4
Views: 561

Re: Landlord Insurance - What To Look For?

1. What should I look for when shopping for landlord insurance? property damage, liability insurance are in my list of things to cover. The coverage is basically the same as for your primary - though you will want to expand your liability coverage. 2. How much damage should the insurance cover? The ...
by Tal-
Fri Dec 30, 2016 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: Intro & Critique of portfolio
Replies: 9
Views: 1285

Re: Intro & Critique of portfolio

You're in great shape, but here are my thoughts: 1 - Congrats on the kiddo! 2 - You can't go wrong either way, but I'd would probably prioritize taxable accounts (stocks/bonds) over your student debt. This is largely due to the upcoming kiddo, and partly due to the need for flexibility. Either way, ...
by Tal-
Fri Dec 30, 2016 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for staying the course
Replies: 20
Views: 2442

Re: Advice for staying the course

I write it down. In addition to writing down my short term goals, long term goals, and plans for the coming year, I write down my own views. For me, I believe in dollar cost averaging. I believe that a balanced portfolio will increase in value over the long term. I believe that the price of an asset...
by Tal-
Fri Dec 30, 2016 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Monthly Expenses in line or too much
Replies: 81
Views: 8883

Re: Monthly Expenses in line or too much

I try to keep track of my expenses and see that my expenses are around 4700 per month, not including mortgage. It does include pretty much everything else . Kids are in good public schools ( thankfully ) so no private school expenses . We drive older cars so do have a few hundred dollars yearly in ...
by Tal-
Fri Dec 30, 2016 12:38 am
Forum: Personal Consumer Issues
Topic: When is it "OK" to get a car loan?
Replies: 42
Views: 4556

Re: When is it "OK" to get a car loan?

- But third, you you shouldn't dip into an emergency fund for a hobby. You shouldn't dip into it $50k to buy the Porche outright, and you shouldn't dip into it $15K to pay the difference between the two. This is not what an emergency fund is for! I believe the Boglehead rule of thumb is to have a m...
by Tal-
Thu Dec 29, 2016 3:52 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin Purchase
Replies: 99
Views: 14564

Re: Bitcoin Investment

I've made similar "investments" in gold, but not Bitcoin. The two are similar in several ways: both fun to have, high speculative, highly volatile, and variations on "money." And while I do not feel that gold is a good investment, I think Bitcoin is a silly investment. Twenty years from now, Bitcoin...
by Tal-
Thu Dec 29, 2016 3:32 pm
Forum: Personal Consumer Issues
Topic: When is it "OK" to get a car loan?
Replies: 42
Views: 4556

Re: When is it "OK" to get a car loan?

I don't mean to get caught up in word-choice, but I don't think you can afford the Porche. Hear me out... First, you should sell the Viper before buying another car. That's the obvious part. The second, and almost as obvious part is that you shouldn't take out a loan for a hobby. Easy peesy. But thi...
by Tal-
Mon Dec 19, 2016 12:46 am
Forum: Personal Finance (Not Investing)
Topic: Buying Rental Property w/Cash
Replies: 4
Views: 1031

Re: Buying Rental Property w/Cash

Yes - I've purchased using cash and then financed using the delayed financing rules. It's a sound strategy, but has a lot of pitfalls! First, very few banks play with delayed financing. Virtually all of them instead stick with the standard refinancing rules, which have different guidelines. Second, ...
by Tal-
Fri Dec 16, 2016 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning Advice PLEASE
Replies: 16
Views: 2663

Re: Retirement Planning Advice PLEASE

Welcome to the forum. A lot going on here. Here are my thoughts: 1- You need to: 1 - drastically decrease your exposure to real estate, 2 - Keep working for several more years, or 3 - get lucky with them. 2 - Ignore the prices you paid for the properties... that's mostly irrelevant to today's decisi...
by Tal-
Tue Dec 13, 2016 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Trust fund for under 100k [finding a trustee]
Replies: 9
Views: 1002

Re: Trust fund for under 100k [finding a trustee]

The funds are to be used for the children's educational, medical and extracurricular expenses. They are currently 1 and 2 years of age. This is helpful. Here's what I'd propose: At 100K, finding a paid third-party to act as the trustee is not a good idea. This is in part due to expenses, and in par...
by Tal-
Tue Dec 13, 2016 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Trust fund for under 100k [finding a trustee]
Replies: 9
Views: 1002

Re: Trust fund for under 100k [finding a trustee]

I'm talking out of my pay grade on this, but I think my read of a trust is a bit different than yours. My take is that the trustee does more than just distribute funds. Specifically, they must manage the funds in a specific way (generally following an approximation of some standard portfolio/allocat...
by Tal-
Wed Dec 07, 2016 9:08 am
Forum: Personal Finance (Not Investing)
Topic: HELP: salary negotiation
Replies: 17
Views: 2961

Re: HELP: salary negotiation

Hey there, Congrats on the new job offer! Regardless of outcome, that should feel good. I do think that you can, and probably should negotiate a higher salary. Here's how I would suggest doing so: 1: Always lead, and close with affirmations that you want the job, and are excited about the job. The s...
by Tal-
Tue Nov 29, 2016 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Turning Primary Residence Into a Rental
Replies: 16
Views: 2071

Re: Turning Primary Residence Into a Rental

- 2BR/2BA Townhouse (in a HCOL city center) - purchase price: ~$650k (2012) - mortgage: ~$440k (remaining), 30 yr, 3.5% fixed - PITI (plus HOA fee): $3000/mo. - estimated rent: $3500 - $3750 /mo. I wouldn't. The ROI is marginal for a concentrated risk and your equity is based on a generally hot "se...
by Tal-
Tue Nov 29, 2016 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Rate Question
Replies: 7
Views: 960

Re: Tax Rate Question

Your heart is clearly in the right place, but your analysis is missing, in my opinion, two big things. The first is the difference between marginal tax rate (the % you pay on the last dollar earned) vs effective tax rate (the average % paid on all dollars earned). Lots of people misunderstand the di...
by Tal-
Mon Nov 28, 2016 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Should We Buy or Rent?
Replies: 49
Views: 6340

Re: Should We Buy or Rent?

I have a pretty clear "rent" view on this. Here's why: 1: Your income is insufficient to justify the price tag. 2: Your income is not stable enough to justify the ongoing obligation (one income, in a profession with a lot of turnover). 3: Rent is cheaper, by far, per month than a mortgage. 4: Your a...
by Tal-
Tue Oct 25, 2016 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Help with 66yr old mother
Replies: 28
Views: 3815

Re: Help with 66yr old mother

Fun topic. Here are my thoughts, as a FAQ. What is the correct stock/bond allocation? Given that the chances of her needing income from her investments is small, I would be fairly stock-heavy with this. Something like 70/30 feels right to me. However, I would never go high enough that she couldn't s...
by Tal-
Tue Oct 25, 2016 7:54 am
Forum: Investing - Help with Personal Investments
Topic: Real estate investing....thoughts
Replies: 19
Views: 3781

Re: Real estate investing....thoughts

To invest in property directly (i.e. rentals), you need several things, including time. In my experience, you can farm out 90% of the work once things are up-and-running, but getting in the game is a lot of work if you want to buy right. I work reasonable hours, and real estate has been a wonderful ...
by Tal-
Fri Oct 21, 2016 9:36 am
Forum: Personal Finance (Not Investing)
Topic: When have you given enough?
Replies: 65
Views: 7070

Re: When have you given enough?

I'm a 30-something, so I'm answering this from the perspective of the adult (and financially secure) child, and not the parent. My parents money (and that of my inlaws) is their money. If I believed that they were not living the lives that they wanted to live, so that they could give us an inheritan...
by Tal-
Thu Oct 06, 2016 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Parents are in a Variable Annuity - need help
Replies: 14
Views: 1708

Re: Parents are in a Variable Annuity - need help

Lots going on here. Quite frankly, probably lots more than I'm seeing - but I'll share my thoughts none-the-less. I'll also highlight that these get incredibly complicated! I'm needing to read the tea leaves on a few of these points... As of today, I don't think that there is a guarantee. The way th...
by Tal-
Thu Sep 29, 2016 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: ESPP strategy question
Replies: 8
Views: 965

Re: ESPP strategy question

We have an ESPP, and do the standard 'sell as fast as we can' approach as well. This results in the whole thing as income for taxes. But, I heard on a podcast (Stacking Benjamins) that in some circumstances, it may be possible to treat a part of the gains as cap gains. A 2-second search showed a tur...
by Tal-
Thu Sep 29, 2016 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Pension buy outs ???
Replies: 34
Views: 4661

Re: Pension buy outs ???

got offer 52k lump now (gross amount) $243. now for life $996 @ 65yr The math is close. Assuming that an investment will grow ~7%, and double every 10 years, you would end with ~ 200K at age 65. At that time, you could, in theory purchase an annuity, that would pay you $970 (based on today's rates)...
by Tal-
Wed Sep 28, 2016 1:41 pm
Forum: Personal Consumer Issues
Topic: Is a garbage disposal unit a good idea for a rental property?
Replies: 34
Views: 3669

Re: Is a garbage disposal unit a good idea for a rental property?

Generally speaking, no. I would NOT include a garbage disposal. We have several single-family rentals, and garbage disposals are probably the thing most likely to break. So, I've been taking them out of some properties, and even pushing back a bit on tenants who ask for them. To date, I have had 1-2...
by Tal-
Tue Sep 27, 2016 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: 1 million to add to vanguard
Replies: 69
Views: 8753

Re: 1 million to add to vanguard

Tal votes to just put it in. If this was your only money, and you were worried about your personal security, I would be open to a DCA conversation. But, with this being 20% of your assets, that's not a concern. It feels like the real question you're wondering if you should pull investable money out ...
by Tal-
Mon Sep 26, 2016 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: When (or whether) to have a second child
Replies: 37
Views: 5021

Re: When (or whether) to have a second child

Not to make light of a serious question, but this is the easiest question I've read on this board in a long time. Yes, you can financially afford to have another child. Period. Now, the questions of if and when are much more difficult and personal. My personal view is that 2 kids, about 2 years apar...
by Tal-
Mon Sep 26, 2016 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: 72t Withdrawals for Young-Retiree
Replies: 24
Views: 2744

Re: 72t Withdrawals for Young-Retiree

Tal has a few thoughts... I've heard that a 72(t) withdrawal can be difficult to manage, and if the incorrect amount is taken, or paperwork doesn't line up exactly, all hell breaks loose. Still, philosophically, it can be a viable resource. While you need to take a 72t on the full account amount, th...
by Tal-
Mon Sep 26, 2016 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Buy a new house with cash? Please advise
Replies: 26
Views: 3950

Re: Buy a new house with cash? Please advise

I am far from a real estate expert but found similar info on line and used it to guide my rent/buy decisions the last few years. Based on this type of calculation, we decided to rent out a home we could probably sell for around $250k, getting $1500 per month or 0.60%. Although a little thin on the ...