Bogleheads.org

foo.c

Yes, if you get any tax credits and you can get below the phase out it saves quite a bit. We're taking advantage of my wife's ability to contribute to 403b and 457b plans.

foo.c

Yes. As of today mine has gone up 20% in 30 days. Getting close to twice what I paid for it 6 years ago.

foo.c

The Zestimate graph for my home has gone hyperbolic. I'm inclined to think Zillow is way off, but stories like these add some anecdotal support for it.

foo.c

I'm getting a whole house generator and one of those huge propane tanks.

foo.c

Yeah, it's killing me. I grew up around here, and moved back years ago. I'm probably selling in a few years and leaving. Unhappy with the direction and changes, hopefully prices are still high when I pull the parachute My kids go off to college in a few years, so if prices maintain their current tr...

foo.c

Go drive in and around the outskirts of Austin. It’s not like LA County where there’s not a lot of space to build. In Texas, all you see is endless land. It’s all privately owned. As oil prices crater, where are these people going to get income? By selling it all for development. I've never even se...

foo.c

How long do you think you will stay? If it's a long term stay, just do it.

foo.c

At my company using Paychex the max we can contribute is 92%.

I did some catch up one time doing that and it screwed up their calculation for insurance and caused a minor snafu, but not for taxes.

foo.c

In 2019 I got a substantial raise that was supposed to be spread over 2 years with half immediately and the remaining half in 2020. Then Covid hit and I got a 20% pay cut. In the fall I got my pay restored but the second half of my raise never came.

I'm really happy to have a job more than anything.

foo.c

At my employer they only match up to a certain contribution percentage per pay period so you can't front or back load.

Check your plan documents, but even if it works how you think you could miss out on 6 months of really good returns (or bad ones).

foo.c

The easiest argument to make, but difficult to prove: taxes could go up.

foo.c

You could end up with different returns in the two buckets. If you go simultaneously then you get the same. Possibly a difference that doesn't matter.

foo.c

Pay off the loan first.

foo.c

Closed on 8/20/2020

I got notice today from Wells Fargo that they bought my loan.

foo.c

Had closing yesterday on my front porch, LOL. It was kind of weird closing during Covid-19 era. It was 8-20-2020 and I had never written so many 20's in my life.

foo.c

Saving, no. Holding, yes (IMO).

foo.c

I'd take the 600k and move. Spend half on a nice house in LCOLA and bank the rest. If you ever have to go back to not working from home find something else or just retire.

foo.c

I applied on 7/16 Locked on 7/22 expires tomorrow 8/15 Supposedly I will be closing next week, but no appointment yet. I hope they don't jerk me around with a higher rate after my lock expires as I will walk and start over. We'll be signing closing docs on Thursday. The rate isn't changing despite ...

foo.c

I applied on 7/16
Locked on 7/22 expires tomorrow 8/15

Supposedly I will be closing next week, but no appointment yet. I hope they don't jerk me around with a higher rate after my lock expires as I will walk and start over.

foo.c

Your credit rating will tank.

foo.c

KlangFool wrote: ↑Sat Jul 18, 2020 4:51 pm

You have to survive in order to succeed.

KlangFool

What is your definition of survival?

Taken literally, 100% of people ultimately don't survive regardless of AA and billions of people subsist without any stocks. There's no magic portfolio that guarantees survival.

foo.c

Per their website, Lenderfi is still not accepting new applications. That's been up there for almost 10 days. They must really not care about getting new business. Others have posted it took only 19 days to fund. They should have cleared enough applications by now to be able to start processing new...

foo.c

I had millions of dollars worth of stock options from my employer so I didn't even bother investing. Those went poof, but at least I didn't really lose anything.

foo.c

I chose option C.

Locking in 2.375% 30 year. Approximately 2.52% APR.

I'll be paying less interest from the first payment and will probably keep paying at my current level. So I would actually pay it off 7 months quicker. Still running the scenarios on that.

foo.c

I say again: Why do you refuse to post your portfolio and expenses? So you can get some HELPFUL advice? Nobody knows who you are here. Why are you so reluctant to post details so we can actually make educated responses. If you have $5m in cash, I don't think many would tell you that keeping the mor...

foo.c

In summary, you don't believe having both OP and his wife unemployed at the same time in a recession is possible. I disagreed. OP portfolio size is not at 10 years of expenses after paying off the mortgage. KlangFool It's possible, not likely. You don't know that. In addition 10 years of expenses w...

foo.c

It's fair to prioritize liquidity, but that's going to be a personal choice for everyone to make. If I'm not worried about my liquidity, I don't know why anyone else should. foo.c, Whether you are emotionally worried about your liquidity, it does not change the actual reality of your liquidity. The...

foo.c

I did a poor job of starting this thread off. I didn't expect things to go that direction. Responses were generally good, but you'd think paid off houses were a leading cause of death if you read this thread. I think you've had answers from both sides of this argument. KlangFool makes his point in ...

foo.c

I guess I don't understand why OP will not post a full financial picture. W/o that we're throwing darts. Sometimes a payoff makes sense, other times not so much. OP: this thread is three pages long. If you want actionable advice I'd encourage you to share details of your situation beyond "I ca...

foo.c

OP, You should be at least consistent and coherent in your assumption. A) The world is not going to hell. B) The world is going to hell. Pick (A) or (B). If the stock market is returning less than 2.875% per year over next 11 years. It means that the economy is in such bad shape that the return is ...

foo.c

foo.c, In a recession, it is king. We have 50+ million unemployed. Do you think that we are not in a recession? KlangFool If you are using now as an example both stocks and houses are doing well (at least in my area), so it doesn't seem like a great example. For now. How long can it last with 50+ m...

foo.c

KlangFool wrote: ↑Mon Jul 13, 2020 5:33 pm foo.c,

In a recession, it is king. We have 50+ million unemployed. Do you think that we are not in a recession?

KlangFool

If you are using now as an example both stocks and houses are doing well (at least in my area), so it doesn't seem like a great example.

foo.c

2) How can having a paid off house not be safe? Because cash is king, and if you pay off a $495k mortgage, you by definition have $495k less cash. A half a million dollars in reasonably ready cash provides a LOT of flexibility that a paid off house does not. Unless houses cost 1 million. You'll hav...

foo.c

KlangFool wrote: ↑Mon Jul 13, 2020 5:11 pm Because OP does not think the 1 million houses can drop as much as the stock.

KlangFool

Not at all. I suspect they're pretty well correlated these days. I don't have a 1 million dollar house, BTW.

foo.c

OP, My portfolio excluding the house is about 1.4 million. My AA is 60/40. My mortgage is 300K at a fixed 3.49% over 30 years. I do not feel safe paying off my mortgage. 1) Why do you think that the market will return less than 2.875% per year over the next 11 years? 2) If (1) is true, why do you t...

foo.c

lazydavid wrote: ↑Mon Jul 13, 2020 4:48 pm
foo.c wrote: ↑Mon Jul 13, 2020 4:07 pm 2) How can having a paid off house not be safe?
Because cash is king, and if you pay off a $495k mortgage, you by definition have $495k less cash. A half a million dollars in reasonably ready cash provides a LOT of flexibility that a paid off house does not.

Unless houses cost 1 million.

foo.c

I'm actually very surprised by the lack of counterarguments towards OP's plan. The OP has given very few details about the rest of their situation so it is hard to make a good argument one way or the other. When that happens many posters just say what they would do based in their situation which ma...

foo.c

For everyone that recommends leveraging the house for investing in the stock market, wouldn't selling the house and renting be even better? I could put 500k into the market if I did that. Stocks will probably even outpace rents (I made that up, but not impossible).

foo.c

OP, My portfolio excluding the house is about 1.4 million. My AA is 60/40. My mortgage is 300K at a fixed 3.49% over 30 years. I do not feel safe paying off my mortgage. 1) Why do you think that the market will return less than 2.875% per year over the next 11 years? 2) If (1) is true, why do you t...

foo.c

Want to echo this: I'm actually very surprised by the lack of counterarguments towards OP's plan. There are a few instances where it makes sense, but history has proven that it's better to be involved in the markets than not. And it's especially true at OP's rate of financing. In general, the big w...

foo.c

Just to be clear: there is broad confirmation bias from people who pay off mortgages early. IIRC there has been only one poster who has posted regrets. Forget user name. Nobody enjoys debt. The issue is arbitraging it and leveraging a very low interest rate. Your rate is very low. Without your full...

foo.c

Admiral wrote: ↑Mon Jul 13, 2020 7:20 am The subject says "paying off" not "paying down." You have $300k burning a hole in your taxable account that can be used for a pay off?

Paying off and paying down are completely different.

Yes, I have the funds to pay it off.

foo.c

I have a little over 11 years left on a 15 year note @ 2.875%. ~300K left. I'm a software engineer with 15 years at the same company. I wasn't furloughed and I think I'd be one of the last employees to be let go if things got worse. We've also started bringing people back. My wife is an underpaid te...

foo.c

You can get split the difference (almost) and get a 20 year mortgage. The best 30 year rates now (around 2.75-2.875%) are the same or even slightly lower than 20 year mortgage rates, so there's really no point. 20 year mortgages rarely offer much of an advantage in rates since it is not a very comm...

foo.c

The 15 year would be tight for our monthly budget but we could make it work if it was a better situation for our family. What would most BH’s suggest between 15 or 30 year fixed new home mortgage? Current rates are just around or over 3% for the 30 year and just over 2.5% for the 15 year. With rate...

foo.c

I think you have 3 years to either pay it back, pay the taxes, or roll over to another account.

I just took one myself, but haven't received funds yet.

foo.c

No one knows which has more risk. It's a fallacy. No one even knows all the risks.

foo.c

Ours was suspended, but it's kind of funny because after years of chintzy matching they had finally raised it in January. My guess is that when it does come back it will be for the previous level.

foo.c

:moneybag I don't really care what the rate is, I want to pay as little total interest as possible. Maybe the 15 year will fall into the low 2% or lower and I'll have to think about it. Mathematically speaking, this is not the correct approach because it ignores the time value of money. $1 paid 15 ...

foo.c

I'm 28 months into a 15 year note @ 2.875% and have already paid approximately 25% of the total interest on the loan. Assuming a basically 0 cost refinance of my outstanding principal, the 30 year rate needs to be around 1.25% in order to keep my total interest paid the same. Doesn't look like I'll ...

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