Search found 118 matches

by gch
Sat Mar 20, 2021 10:32 am
Forum: Personal Investments
Topic: How to think about total net worth when 90% of it is in a private business
Replies: 31
Views: 2979

Re: How to think about total net worth when 90% of it is in a private business

I personally view it like I view non vested RSU’s. They value is there in my net worth, but I do not include it in my asset allocation because I cannot sell them, and they could be worth zero in the future. If your business’s value ends up significantly declining, you don’t want the rest of your por...
by gch
Sun Mar 07, 2021 11:53 am
Forum: Personal Consumer Issues
Topic: Consumer Math Question
Replies: 32
Views: 2109

Re: Consumer Math Question

I would think that she she could have gotten 2 $200 gift cards for $300. 1. First $200 gift card costs $200 (full price) 2. Second $200 gift card is 50% off so a cost of $100 Total cost: $300 Total Value: $400 This is the only math that makes sense if you have a buy one get one half off deal and yo...
by gch
Wed Feb 24, 2021 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella Policy; Anyone actually made a claim?
Replies: 211
Views: 16051

Re: Umbrella Policy; Anyone actually made a claim?

Do you really think a PI charging $500 is going to be able to hack into bank and brokerage accounts to figure out how much liquid net worth a neighbor has? It was a hypothetical to suggest other ways that information might be obtained without the lawyer collecting it, but we have strong reason to b...
by gch
Wed Feb 24, 2021 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella Policy; Anyone actually made a claim?
Replies: 211
Views: 16051

Re: Umbrella Policy; Anyone actually made a claim?

The defendant's finances, insurance or lack thereof is never known unless disclosed by the insurance company (which they typically do to speed along a settlement). So, unless you're Bill Cosby or a Hogan kid, or were driving a McLaren, no one will ever know . Unless your information is otherwise ea...
by gch
Sun Feb 21, 2021 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Power company rate spikes - understanding what my risks are
Replies: 33
Views: 2958

Re: Power company rate spikes - understanding what my risks are

So if I know that a winter vortex storm is coming tomorrow, and want to switch, I can execute that switch in a day? Maybe Texas is different, but if I want to switch power companies in my state, there is atleast a week long wait, credit check, a visit from the electric company. And if thousands are...
by gch
Sun Feb 21, 2021 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: Power company rate spikes - understanding what my risks are
Replies: 33
Views: 2958

Re: Power company rate spikes - understanding what my risks are

I think this is different from variable mortgage rate loans in that there are no caps to the power pricing. Most variable mortgages I’ve ever considered have some sort of cap ERCOT caps at $9k per MW ($9/kW) Thanks for clarifying my erroneous assumption. Wow, that is impressive. So assuming the bas...
by gch
Sun Feb 21, 2021 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Power company rate spikes - understanding what my risks are
Replies: 33
Views: 2958

Re: Power company rate spikes - understanding what my risks are

eagleeyes wrote: Sun Feb 21, 2021 11:13 am I think this is different from variable mortgage rate loans in that there are no caps to the power pricing. Most variable mortgages I’ve ever considered have some sort of cap
ERCOT caps at $9k per MW ($9/kW)
by gch
Sun Feb 21, 2021 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Power company rate spikes - understanding what my risks are
Replies: 33
Views: 2958

Re: Power company rate spikes - understanding what my risks are

Griddy (the most popular variable rate power company in Texas) sent out notices to all of its users a week in advance saying you should switch because power prices are going to be insane. I had two friends switch to 6 month fixed rate plans the Friday before all of this happened and got rates at 25 ...
by gch
Fri Feb 19, 2021 7:31 pm
Forum: Personal Consumer Issues
Topic: Any Boglehead Lessons From the Texas Winter Storm?
Replies: 226
Views: 18530

Re: Any Boglehead Lessons From the Texas Winter Storm?

Don’t hold a natural gas financial short position against a long physical position in the winter.
by gch
Fri Jan 22, 2021 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Tax 2020; TurboTax; Stimulus money
Replies: 7
Views: 594

Re: Tax 2020; TurboTax; Stimulus money

FreeTaxUSA had a question at the end about how much you received in both rounds and calculated any differences then. I’d expect TurboTax does something similar, but you may have to go through the whole interview question list to get there.
by gch
Fri Jan 15, 2021 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Property taxes - Did I cause more harm than good?
Replies: 18
Views: 1692

Re: Property taxes - Did I cause more harm than good?

What did you pay for the house? What is the county appraising it at? Seems like since it was just purchased these two numbers would be identical without much argument for either side?
by gch
Wed Jan 06, 2021 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Escalation Clause in a Home Purchase
Replies: 31
Views: 2539

Re: Escalation Clause in a Home Purchase

I wish i had confidence that the sellers, and sellers agents, arent also playing games Assuming the seller has an agent, do you really think that agent is going to risk their livelihood (losing their license) to commit fraud to make 3% more of whatever your max escalation is? It’d probably net the ...
by gch
Wed Jan 06, 2021 4:30 am
Forum: Personal Finance (Not Investing)
Topic: Probate: CA vs ID? [Minor child inherits grandparent's estate]
Replies: 71
Views: 3727

Re: Minor child inherits grandparent's estate

+1 on getting a lawyer. My family had quite a bit of “fun” distributing a pretty sizable sum in a similar situation because the grandparent had specifically stated the money not go to someone under 25.
by gch
Sat Jan 02, 2021 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: How do you feel about your extra paycheck in 2020?
Replies: 103
Views: 7449

Re: How do you feel about your extra paycheck in 2020?

It's "extra" in the sense that your income for this year is higher than normal. However, it's not "free" money. You worked two weeks for it. Would it be fair if the company said we already paid you 26 times this year so we're skipping this paycheck? If you’re salaried and you al...
by gch
Sat Jan 02, 2021 9:14 am
Forum: Investing - Theory, News & General
Topic: Life Insurance
Replies: 26
Views: 1589

Re: Life Insurance

Calculate how much you’ve paid in and what the value will be when you die, then let us know how that rate of return stacked against your investment portfolio.
by gch
Fri Jan 01, 2021 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Powerball- Mega Million Near 400M
Replies: 28
Views: 2491

Re: Powerball- Mega Million Near 400M

When it gets to a large amount a lady in my group at work collects $5 from everyone and buys the team tickets. I don’t really want to play, but the thought of me having to train all new coworkers because all my current ones retired with millions is enough for me to put in the $5.
by gch
Wed Dec 30, 2020 11:53 pm
Forum: Personal Finance (Not Investing)
Topic: Can you only contribute to 401k after-tax
Replies: 7
Views: 799

Re: Can you only contribute to 401k after-tax

My company has Vanguard and I can contribute pre tax, Roth, or After tax.
by gch
Sun Dec 27, 2020 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house with flood risk?
Replies: 54
Views: 3283

Re: Buying a house with flood risk?

Just checked my house in Houston and I’m a 5/10. We didn’t flood in Harvey and weren’t even close so I’m not sure if that site is super reliable.
by gch
Mon Dec 21, 2020 10:55 pm
Forum: Personal Investments
Topic: Go from 12% to 22% federal income tax rate to pay off mortgage?
Replies: 23
Views: 1822

Re: Go from 12% to 22% federal income tax rate to pay off mortgage?

Hello! I'm 47, have an emergency fund, and no debt other than my mortgage (3% fixed rate, 50% LTV, 358 payments remaining). I don't make any extra principal payments on the mortgage. Instead, I save 60% of my gross income by contributing towards a pension and maxing out a 403b, 457b, and Traditiona...
by gch
Sat Dec 19, 2020 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: Do my wife and I even need a traditional estate plan?
Replies: 78
Views: 4062

Re: Do my wife and I even need a traditional estate plan?

How about this, if you don't care what happens with your money after you and your wife die then I will pay for a lawyer to draw up the documents if I get to choose what those documents say happens once you and your wife die.
by gch
Tue Dec 15, 2020 10:09 pm
Forum: Investing - Theory, News & General
Topic: Question on mortgage additional payments strategy
Replies: 22
Views: 1512

Re: Question on mortgage additional payments strategy

Math is pretty simple, if the stable fund’s after tax return is greater than the mortgage interest (after tax if you itemize your taxes) then it’s best to put them in the stable fund, if not then it’s best to put the money towards the mortgage. I doubt any CD’s are currently returning more than a mo...
by gch
Tue Dec 15, 2020 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: The pros and cons of gifting money to children early?
Replies: 162
Views: 11100

Re: The pros and cons of gifting money to children early?

I think I would have a hard time regularly giving my children cash early in their careers. I would however consider helping out with non cash high priced items like home down payment, car, grandkids schooling, perhaps even IRA contributions.
by gch
Thu Dec 10, 2020 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: If your net worth were the following amounts, how much real estate would you own?
Replies: 142
Views: 9981

Re: If your net worth were the following amounts, how much real estate would you own?

The 10mm range is so hard to say because someone that’s 55 and retired with 10MM is way different than someone that’s 35, making 500k/year, and has 10MM. The first case I’m maybe 2MM, the latter I’ve probably got a nice house on the slopes along with a nice personal home. If I’ve got 50-100MM I’m pr...
by gch
Thu Dec 10, 2020 12:56 pm
Forum: Personal Investments
Topic: Airbnb IPO offering for hosts - should I do it?
Replies: 77
Views: 7857

Re: Airbnb IPO offering for hosts - should I do it?

It's potentially intriguing and even flattering to be invited to join a kind of exclusive group, especially when there seems to be some potential for profit. So, the initial interest is understandable. Take a step or two back, though, and perhaps you'll see things another way. This is a small poten...
by gch
Wed Dec 09, 2020 7:27 pm
Forum: Personal Consumer Issues
Topic: Relocation to Houston, Texas from SF Bay - Advice
Replies: 102
Views: 9028

Re: Relocation to Houston, Texas from SF Bay - Advice

a) financially - will be much much cheaper in virtually every aspect culturally - Houston is very diverse, but also very spread out so depending on where you live/work you may not feel the diversity. Weather - it’s very hot and very humid. Weather will be a very net negative. education - suburbs all...
by gch
Sat Dec 05, 2020 10:18 pm
Forum: Personal Consumer Issues
Topic: Typical penalty for breaking house rental lease early?
Replies: 14
Views: 877

Re: Typical penalty for breaking house rental lease early?

I feel pretty confident that you can find a landlord that will work with you ending a lease in late spring or summer. It’s the easiest time to find a tenant in my experience.
by gch
Thu Dec 03, 2020 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: Parents Mortgaging Their Home to Help Son Complete Dream Home Build
Replies: 103
Views: 7698

Re: Parents Mortgaging Their Home to Help Son Complete Dream Home Build

The first 200k - no cost to the parents as it was sitting in cash anyways (assuming he eventually pays back) The 700k refinance - if he’s making the payments on this then there would be no cost to the parents (assuming he eventually pays it all back) If he can’t make the payments on the refinance, ...
by gch
Thu Dec 03, 2020 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Parents Mortgaging Their Home to Help Son Complete Dream Home Build
Replies: 103
Views: 7698

Re: Parents Mortgaging Their Home to Help Son Complete Dream Home Build

The first 200k - no cost to the parents as it was sitting in cash anyways (assuming he eventually pays back) The 700k refinance - if he’s making the payments on this then there would be no cost to the parents (assuming he eventually pays it all back) If he can’t make the payments on the refinance, t...
by gch
Sat Nov 28, 2020 12:54 pm
Forum: Personal Investments
Topic: Rental Property vs S&P index
Replies: 17
Views: 2047

Re: Rental Property vs S&P index

You can’t really compare leveraging stocks vs leveraging a property. Why is that? S&p gives out dividends too. No property tax and appreciates. Because the way you build leverage with the two are completely different. The risks and potential outcomes are also drastically different. I’m not sayi...
by gch
Sat Nov 28, 2020 12:33 pm
Forum: Personal Investments
Topic: Rental Property vs S&P index
Replies: 17
Views: 2047

Re: Rental Property vs S&P index

You can’t really compare leveraging stocks vs leveraging a property.
by gch
Sat Nov 21, 2020 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford this $725,000 house?
Replies: 162
Views: 12027

Re: Can we afford this $725,000 house?

Not sure how helpful the feedback in the aggregate has been to OP. Seems split between “of course you can afford” versus “no way.” OP could have a 1MM income and 10MM net worth and there would be some people that would say they couldn’t afford it, or their net worth is too low compared to income so...
by gch
Tue Nov 17, 2020 3:56 pm
Forum: Personal Investments
Topic: Roth Ira tax withholding choice
Replies: 27
Views: 1462

Re: Roth Ira tax withholding choice

Agree with others. Main thing to double check is that it is only taken from contributions that have been in the account for 5yrs. Any growth withdrawn would be subject to a penalty. More details in the wiki . One other thing to be aware of is that money can't be added back into the Roth after withd...
by gch
Mon Nov 16, 2020 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?
Replies: 124
Views: 7022

Re: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?

1. ~30% of my net worth is in RE
2. Total real estate value is ~300% of my net worth

Number 2 looks odd because I have rental real estate that is levered.
by gch
Sun Nov 15, 2020 9:38 pm
Forum: Personal Investments
Topic: Do I have too much HSA money?
Replies: 87
Views: 11001

Re: Do I have too much HSA money?

Also, to reimburse past medical expenses, we need proof of the expense, proof we paid it, and proof we were not reimbursed by our insurance company, to keep the IRS happy. Seems like a lot to keep track of when we're older. I share your concerns about added complexity, but still just renewed our HS...
by gch
Sun Nov 15, 2020 9:30 pm
Forum: Personal Investments
Topic: Do I have too much HSA money?
Replies: 87
Views: 11001

Re: Do I have too much HSA money?

Also, to reimburse past medical expenses, we need proof of the expense, proof we paid it, and proof we were not reimbursed by our insurance company, to keep the IRS happy. Seems like a lot to keep track of when we're older. I share your concerns about added complexity, but still just renewed our HS...
by gch
Sat Nov 14, 2020 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Does this investment property purchase make sense?
Replies: 27
Views: 1627

Re: Does this investment property purchase make sense?

This is interesting. My current home is appraised at $1.2M. However, if I were to rent it out, or rent a similar home across the street, it wouldn’t be more that $3500. Does that mean I should sell and start renting? And if folks are saying I shouldn’t rent but should stay put, what makes the Ops d...
by gch
Sat Nov 14, 2020 2:45 pm
Forum: Investing - Theory, News & General
Topic: RSU Present Value Calculator?
Replies: 31
Views: 2382

Re: RSU Present Value Calculator?

Thanks for all the replies. I found what I was looking for. In case future readers are interested, here is the link: http://support.content.office.net/en-us/coach/excelcoach_PV_PartII.html That's just a PV calculator. What values are you entering for rate and other fields? What's the PV for 100 sha...
by gch
Tue Nov 03, 2020 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: Rent vs Buy - specific example could be a toss up
Replies: 19
Views: 1689

Re: Rent vs Buy - specific example could be a toss up

I would be surprised if insurance on a 650k home is only 1k unless it’s just completely based on land value. Probably closer to 3-4k.
by gch
Sat Oct 31, 2020 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: accepted rental real estate mistake ...but still lost about selling...
Replies: 9
Views: 1257

Re: accepted rental real estate mistake ...but still lost about selling...

2 thoughts: 1. If your 2-3% return is not including appreciation then it’s fair to say you’re getting 2-3% above inflation because the homes, on average, appreciate with inflationZ 2. What would you invest in if you sold the homes? If the answer is bonds then you are likely earning more than bonds m...
by gch
Mon Aug 31, 2020 8:17 pm
Forum: Personal Consumer Issues
Topic: Laura Insurance Adjustor-"Don't Do Anything"
Replies: 7
Views: 1828

Re: Laura Insurance Adjustor-"Don't Do Anything"

It’s probably two fold: 1. Liability if they say you’re good to go up in the roof and tarp it and there is more damage than you can see and you fall through. Much easier to just say don’t do it and if you do then it’s on you. 2. Trying to identify with each individual what they can vs cannot do as f...
by gch
Fri Aug 28, 2020 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: Can a landlord charge for stain removal on 14 year-old carpet?
Replies: 36
Views: 3682

Re: Can a landlord charge for stain removal on 14 year-old carpet?

Just curious, how do you know the carpets are 14 years old?
by gch
Fri Jul 31, 2020 1:37 pm
Forum: Investing - Theory, News & General
Topic: Withdrawal Rate Using Endowment Rules?
Replies: 15
Views: 1201

Re: Withdrawal Rate Using Endowment Rules?

If you never took more than 4.5% or 5.3% or shoot even 99.9% of the value of your “endowment” in a year then you’d never run out.
by gch
Fri Jul 10, 2020 10:06 pm
Forum: Personal Consumer Issues
Topic: Questions re Facebook Privacy
Replies: 11
Views: 779

Re: Questions re Facebook Privacy

If you search your name and city/state on the internet you can find addresses, phone numbers, family members, etc very easily. Seriously, just google your first and last name and the city and state you’re most associated with and most likely it will bring up all of the above information. I would ima...
by gch
Tue Jul 07, 2020 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Rental property sale taxation
Replies: 10
Views: 584

Re: Rental property sale taxation

How did you determine the house was worth 100k less in 2013 than 2005?
by gch
Wed Jul 01, 2020 4:54 pm
Forum: Investing - Theory, News & General
Topic: 4% rule - confidence poll
Replies: 457
Views: 27604

Re: 4% rule - confidence poll

30 years for sure. As long as your portfolio keeps up with inflation then you’d be good for 25 years.
by gch
Mon Jun 29, 2020 6:20 pm
Forum: Personal Consumer Issues
Topic: Vacation Rental Refund Disagreement
Replies: 30
Views: 2546

Re: Vacation Rental Refund Disagreement

Unless you’re in an at risk group then just go and quarantine from people when you get back.
by gch
Sun Jun 21, 2020 6:05 pm
Forum: Personal Investments
Topic: How to hold US Dollars without any credit risk?
Replies: 30
Views: 1661

Re: How to hold US Dollars without any credit risk?

I fail to see a scenario such that the US Treasury defaults on its debts AND the FDIC is unable to insure deposits yet your USD is still worth much sitting around in some type of maintenance account.
by gch
Sat Jun 13, 2020 10:42 am
Forum: Personal Finance (Not Investing)
Topic: $120,000 in credit card debt
Replies: 72
Views: 9822

Re: $120,000 in credit card debt

Is this coming from cashing out a retirement account? Reason I ask is it seems hard to see how one would have 200k+ in a taxable/savings account while also having 100k+ in CC debt. Perhaps the sale of your house? If it is cashing out retirement accounts then one would have to consider penalties and ...
by gch
Mon Jun 01, 2020 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Is this the right way to calculate the rate of return from a refi?
Replies: 7
Views: 585

Re: Is this the right way to calculate the rate of return from a refi?

You cannot possibly know your rate of return unless you are very certain on how long you will keep the mortgage for. For example let’s say you kept it for one year (estimates): 1.125% lower interest on 470k =5k in savings. Cost to refinance = 4k Rate of return = 25% If kept for 2 years 1.125 lower i...
by gch
Sun May 31, 2020 12:16 pm
Forum: Investing - Theory, News & General
Topic: Trying to Understand Equities - Years to pay back all shares.
Replies: 14
Views: 1359

Re: Trying to Understand Equities - Years to pay back all shares.

Thank you everyone! I'm glad my math and understanding isn't wrong. Obviously my math is very simplistic, I don't even account for current assets, but the basic premise is indeed the same, our stock investing is gambling future profits out decades in the future. What's even more interesting is we a...