Search found 312 matches

by Tal-
Mon Dec 19, 2016 12:46 am
Forum: Personal Finance (Not Investing)
Topic: Buying Rental Property w/Cash
Replies: 4
Views: 988

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: 2583

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: 982

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: 982

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: 2871

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: 1964

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: 917

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: 6260

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: 3673

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: 3655

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: 6818

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: 1659

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: 936

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: 4513

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: 3125

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: 8593

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: 4860

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: 2537

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: 3855

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 ...
by Tal-
Sun Sep 25, 2016 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Buy a new house with cash? Please advise
Replies: 26
Views: 3855

Re: Buy a new house with cash? Please advise

Would house #1 make a viable rental? No. Unless it rents for something like $6000 month (literally), you should NOT keep this as a rental. And... it won't rent for $6000/month... How did you come to $6000? I'm playing with rough numbers here, so bare with me. The most intuitive way to think about a...
by Tal-
Sun Sep 25, 2016 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Buy a new house with cash? Please advise
Replies: 26
Views: 3855

Re: Buy a new house with cash? Please advise

My thoughts, to the questions that you didn't actually ask: Would house #1 make a viable rental? No. Unless it rents for something like $6000 month (literally), you should NOT keep this as a rental. And... it won't rent for $6000/month... Should you buy your new house in cash? Probably not. You're i...
by Tal-
Sun Sep 25, 2016 4:12 pm
Forum: Investing - Theory, News & General
Topic: Financial planner: % of AUM plus commissions?
Replies: 21
Views: 1914

Re: Financial planner: % of AUM plus commissions?

As some context, I tend to be much more favorable towards the use of financial planners than most people on this board :) 1% AUM is on the low side of standard, though % of AUM is never how you should look at fees. That's a bit like using monthly payments to determine if you can buy a car. Instead, ...
by Tal-
Sun Sep 25, 2016 3:54 pm
Forum: Personal Consumer Issues
Topic: Protein Powders
Replies: 45
Views: 4423

Re: Protein Powders

Optimum Nutrition's (ON) whey proteins are great. They blend easily, taste great, are inexpensive, and score exceptionally well on the 'how healthy it is' tests.

I've tried others, but have become brand loyal to ON.
by Tal-
Sat Sep 24, 2016 1:24 am
Forum: Personal Consumer Issues
Topic: Would you buy this house in a flood zone? HELP!
Replies: 63
Views: 5661

Re: Would you buy this house in a flood zone? HELP!

Few decisions are as clean as yes/no. There have been a lot of "no" responses above, but the topic is not really that simple. Flood plane stuff is a big negative. It will significantly negatively impact future house values, and the added insurance cost is nothing to sneeze at! But, if you were getti...
by Tal-
Tue Sep 20, 2016 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: Help me invest for my child's "surprise" future.
Replies: 7
Views: 1653

Re: Help me invest for my child's "surprise" future.

I may be missing the mark on something, but I think you're in good shape. I am not sure that I would consider a trust. In theory, you could probably set up a trust in his name, and continue to fund it - but I'm pretty sure that doing so would basically make it HIS money today (though he couldn't acc...
by Tal-
Tue Sep 20, 2016 2:50 pm
Forum: Personal Consumer Issues
Topic: Ideas for adult brothers vacation
Replies: 24
Views: 2862

Re: Ideas for adult brothers vacation

If you want something a bit more expensive, luxurious, but still with a hint of adventure, check out an Alaskan cruise. Not something that all groups of brothers would enjoy, but it would also be a perfect fit for others. Lots of wildlife and scenery. Some hiking opportunities. Good guided activitie...
by Tal-
Thu Sep 15, 2016 3:05 pm
Forum: Personal Consumer Issues
Topic: How much is your cell phone bill?
Replies: 263
Views: 31002

Re: How much is your cell phone bill?

Verizon
2 lines
4 GB data (?)
unlimited talk/text
Included price-reduced new phones with 2 year contract.

$149/month

Time to go shopping!
by Tal-
Wed Sep 14, 2016 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning Advice - New to Forum
Replies: 8
Views: 1327

Re: Retirement Planning Advice - New to Forum

bogle-feet, and -tal, thank you for the thoughtful replies. I think we're in a unique position. Our combined annual income is around 66K, and my wife technically wouldn't even qualify for a Roth IRA if we weren't married, at least that's what I'm told, due to her grant funding. I'm not extremely we...
by Tal-
Wed Sep 14, 2016 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: 24 year old new dividend portfolio
Replies: 151
Views: 11231

Re: 24 year old new dividend portfolio

Welcome to the forum. And congrats on a great start! Here are my thoughts, as a Q&A: Should you invest all at once, or over time? Research shows that on average, investing all at once is the right option. It's true that this puts your money at risk, and that it may go down, but learning to stay the ...
by Tal-
Wed Sep 14, 2016 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Planning Advice - New to Forum
Replies: 8
Views: 1327

Re: Retirement Planning Advice - New to Forum

Props to ya! Dave Ramsey does great work, and has helped a lot of people. But, his great work is typically done around debt, and not around long-term financial standing. This is to say that I agree; I think you have graduated from the Dave Ramsey stage of your finances! :) I'll let others speak to s...
by Tal-
Tue Sep 13, 2016 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Should I pay off my mortgage?
Replies: 45
Views: 5365

Re: Should I pay off my mortgage?

Lots of thoughts on this one. But first, congrats. You're in great shape. You are clearly focusing on long-term returns, and don't have an issue with debt. You think you can do decently in the market, and would invest in the market with excess cash (stop having a bunch of cash just laying around!). ...
by Tal-
Mon Sep 12, 2016 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Physician employment and fair salary and raises
Replies: 58
Views: 7695

Re: Physician employment and fair salary and raises

Lots going on here. I'll try and provide some insight as best I can. As a provider, the general assumptions about pay, pay rate increases, etc. are not always relevant. If a new IS Analyst joined a company, I would be shocked and horrified if they got 0 pay raises in 5 years. But, as a provider, the...
by Tal-
Mon Sep 12, 2016 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: New to here. Need help with retirement planning.
Replies: 28
Views: 3044

Re: New to here. Need help with retirement planning.

I'm leery of 529s because 1) what if college is free 14 years from now when my kids start re: presidential candidates college reform (I'll be hit with a 10% penalty and tax bracket rate if we withdraw $ 2) what if they get full rides or scholarships? 3) They most likely will be staying at home to s...
by Tal-
Thu Sep 08, 2016 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie, Hopeful for some Great Advice!!
Replies: 10
Views: 1202

Re: Newbie, Hopeful for some Great Advice!!

Props to ya! While everyone's path to financial freedom is somewhat unique, it feels like there are several phases that everyone goes through. You've done a great job with several of the challenging steps - budgeting, securing a place to live, and living off less than you're making. That's a credit ...
by Tal-
Thu Sep 08, 2016 11:50 am
Forum: Investing - Help with Personal Investments
Topic: New to here. Need help with retirement planning.
Replies: 28
Views: 3044

Re: New to here. Need help with retirement planning.

At the highest levels, clearly doing great. I think my biggest suggestions is something that you already know - and that's to start shifting your savings into investments (i.e. stocks/bonds/401k/ira/etc.). Do that, and you're in great shape. With that said, it feels like you're looking for more spec...
by Tal-
Wed Sep 07, 2016 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Convert to a Roth, or stay Traditional IRA?
Replies: 7
Views: 822

Re: Convert to a Roth, or stay Traditional IRA?

Props! I don't know you from Adam, but you've obviously done well for yourself. A credit to you. Your spending or family planning may change my mind on this, but assuming a fairly normal outlook, I would not convert this. At this point, with more than $6M in assets, you're in great shape to have a w...
by Tal-
Wed Sep 07, 2016 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Career Advancement
Replies: 10
Views: 1986

Re: Career Advancement

Here are Tal's thoughts, framed as answers to questions that you didn't really ask... :) Is your career stagnant? No. There is nothing wrong with staying at a job for a year, or two, or three. Don't rush thing. Do you need an MS or Ph.D.? If you're getting interviews today, the problem is not with y...
by Tal-
Tue Sep 06, 2016 5:48 pm
Forum: Personal Consumer Issues
Topic: Personal Shopper/Service for Complicated Purchases
Replies: 14
Views: 1583

Re: Personal Shopper/Service for Complicated Purchases

2: An old CD from a garage band that lasted just a few months. The band was 20 20 Faith, before becoming Eleventh Hour (not the Eleventh Hours that's still around) and were centered out of Arizona around 2002. My wife had a 20 20 Faith CD that brings back memories of summer internships, but misplac...
by Tal-
Tue Sep 06, 2016 4:25 pm
Forum: Personal Consumer Issues
Topic: Personal Shopper/Service for Complicated Purchases
Replies: 14
Views: 1583

Re: Personal Shopper/Service for Complicated Purchases

Do you happen to have an Amex Platinum card? Their Concierge service can be great for things just like this. Years ago, they helped me find some classical "disks" for an antique Swiss music box. (The disk had little bumps, and the player had prongs. Previously, I'd only seen that on a music box wit...
by Tal-
Tue Sep 06, 2016 4:23 pm
Forum: Personal Consumer Issues
Topic: Personal Shopper/Service for Complicated Purchases
Replies: 14
Views: 1583

Re: Personal Shopper/Service for Complicated Purchases

Perhaps you're using the wrong search term(s). I'm not sure what you really want is a personal shopper, because, as you've found, that term is associated with a different service. What you want is something more like an internet concierge - someone savvy enough to search and interact with parties t...
by Tal-
Tue Sep 06, 2016 3:11 pm
Forum: Personal Consumer Issues
Topic: Personal Shopper/Service for Complicated Purchases
Replies: 14
Views: 1583

Personal Shopper/Service for Complicated Purchases

I'm looking to find a personal shopper to help me buy two gifts for the wife. There seem to be hundreds of personal shopping services, but all of them seem to focus on fashion, or on errand-type services (e.g. groceries). I'm looking for help to purchase a couple custom gifts that are not easy to co...
by Tal-
Thu Sep 01, 2016 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: 1 month into new job, should I leave for better job
Replies: 20
Views: 3640

Re: 1 month into new job, should I leave for better job

The grass sure looks nice, but it isn't always greener. I think you need to do some soul searching on a couple questions: 1- Will the other job really be better??? This is a very complicated questions, and while commute and base pay factor in - they are far from being the only (or even, best) indica...
by Tal-
Wed Aug 31, 2016 9:57 am
Forum: Personal Finance (Not Investing)
Topic: Selling Two Rentals - FSBO? What to Do with Proceeds?
Replies: 8
Views: 911

Re: Selling Two Rentals - FSBO? What to Do with Proceeds?

Props to ya for a job well done! Fun topics! You're ahead of me in race, but we are very much on similar paths. And, here are my thoughts: 1. WHAT TO DO WITH EXCESS CASH FLOW? Taxable accounts. With 150K in newer equity deals and a large RE portfolio behind ya, 75K in reserves and with concerns abou...
by Tal-
Wed Aug 31, 2016 9:32 am
Forum: Personal Consumer Issues
Topic: How Much Cash for Wedding Gift?
Replies: 45
Views: 5422

Re: How Much Cash for Wedding Gift?

Question - do they live in a HCOL area or a modest COL area? For HCOL and a best friend - $200 - $250 per attendee. For MCOL and a best friend - $50 - $100 per attendee. Have a wonderful time at the wedding. As general guidelines, I agree with this. If you stay in these ranges, you should be in goo...
by Tal-
Tue Aug 30, 2016 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: how fast to max out your 401(k) 18K in a given year?
Replies: 36
Views: 3831

Re: how fast to max out your 401(k) 18K in a given year?

I've never formalized my thoughts on this, but I think this algorithm is accurate: 1: If you need to contribute the over full year to get the full match, do that. Otherwise, 2: If you expect to lose the ability to contribute mid-year (e.g. layoff), contribute as early as you can (ignoring liquidity ...
by Tal-
Mon Aug 29, 2016 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: What to do with my underwater house, sink or swim?
Replies: 29
Views: 4352

Re: What to do with my underwater house, sink or swim?

My questions is, does it make better financial sense to: #1Refinance with a chunk down into a real 10-15 yr fixed rate 3-4% interest mortgage and focus firing on paying it off? #2Carry on with my interest only and pay the principal payments when it ticks over? #3Get out and do a deed in lieu, short...
by Tal-
Mon Aug 29, 2016 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: 30 and 29 y.o. married couple portfolio and plans
Replies: 19
Views: 3812

Re: 30 and 29 y.o. married couple portfolio and plans

You're in good shape, but a few suggestions: I'm not worried about your debt, including your student loan debt. I would rather see you invest that extra money. I'm not worried about your retirement contributions. Maxing IRAs and 1.5 403b/401ks sounds good. Though I'd draw a line in the sand and comm...
by Tal-
Mon Aug 29, 2016 10:07 am
Forum: Investing - Help with Personal Investments
Topic: $50M+ - Need a sounding board/advice
Replies: 205
Views: 28158

Re: $50M+ - Need a sounding board/advice

I'll sidestep the above conversations, and try to share my thoughts on the OP's questions: Is the 90/10 allocation that you suggested appropriate? No. At your net worth, I would encourage you to increase your bond allocation. I would encourage you to invest outside of the traditional markets (maybe ...
by Tal-
Mon Aug 29, 2016 9:37 am
Forum: Investing - Theory, News & General
Topic: Rich Dad/Poor Dad Assets
Replies: 57
Views: 8616

Re: Rich Dad/Poor Dad Assets

Can anyone advise on the kinds of income accumulating assetts he is describing, I am guessing these are not regular mortgaged real estate deals or straight stocks and mutual funds, more like buying small business, using creative financing for real estate? Small Business I think a small business wou...
by Tal-
Fri Aug 26, 2016 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner to investment planning
Replies: 7
Views: 825

Re: Beginner to investment planning

Tal gives Kevin the gold star of the day. Props my good man! Just a couple thoughts: First, I'd suggest doing a Roth through an automatic payment rather than a lump sum. Giving someone $5K hurts. Giving someone a few hundred a month tends to hurt a lot less, and helps you adjust to a more normalized...