Search found 31 matches

by eric321
Fri Apr 09, 2021 5:24 pm
Forum: Personal Consumer Issues
Topic: How do I learn to buy a car?
Replies: 15
Views: 1414

Re: How do I learn to buy a car?

Leasing also can work well. Sometimes there are EV incentives (likely going to increase further). Leasehacker is a good resource and Edmunds to calculate residuals. For an outright used purchase, look at cars the have depreciated or are not loved for some value. There are some good deals on a Chevy ...
by eric321
Tue Mar 30, 2021 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Pay cash for a house or not?
Replies: 20
Views: 2933

Re: Pay cash for a house or not?

This is a super hot housing market. Cash is a huge advantage. Quick close, skip the appraisal risk. The price to win all cash and the price to win with a mortgage is definitely different.
by eric321
Thu Mar 18, 2021 7:27 pm
Forum: Non-US Investing
Topic: Advice for US Citizen living outside USA
Replies: 17
Views: 2584

Re: Advice for US Citizen living outside USA

Your host country has higher taxes than the US, so you don't really need to worry about US taxes. Does your host country tax you on foreign (US gains)? If so, you don't get benefits to rearrange much. If not, and US gains aren't taxed with your host country consider a 529 account for the cash for co...
by eric321
Thu Mar 18, 2021 4:40 am
Forum: Personal Investments
Topic: We sold our business. Help us invest the windfall
Replies: 63
Views: 8468

Re: We sold our business. Help us invest the windfall

Congrats! Love your plan. For the 500k in cash a few suggestions. One, that's over the fdic limit at one bank. Maybe divide it up into two. Second, with cash coming in, maybe its worth thinking slightly longer horizon for some of the cash. Some type of income fund, ideally with a floating rate that ...
by eric321
Wed Mar 17, 2021 6:14 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford this house?
Replies: 78
Views: 4242

Re: Can we afford this house?

Echoing other posters to wait. You don't need the suburbs or schools now and it's cheaper to rent than buy. Plus you can be closer into the city and enjoy things that you'd like. Market is crazy competitive and if you are already stretching to buy at list prices, you're not going to win. Sign up for...
by eric321
Wed Mar 17, 2021 5:54 am
Forum: Personal Finance (Not Investing)
Topic: How much income would justify paying $2500 for a finance planner?
Replies: 58
Views: 5735

Re: How much income would justify paying $2500 for a finance planner?

Most financial plans are just fluff. A lot of robo advisors can do the same thing. If you have A saved and can save B a month and grow a C percent per year, you will have D dollars a year when you retire at 65. And here is how you look if you can save more b. It's not rocket science that saving more...
by eric321
Tue Mar 16, 2021 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Work from Home - Most Tax Friendly States (Not Cost of Living)
Replies: 76
Views: 5949

Re: Work from Home - Most Tax Friendly States (Not Cost of Living)

For most people, you need to look at the overall package. Income, Taxes, Cost of Living and Quality of Life. For High Income work from anywhere tech workers, i'd highly recommend New Hampshire. There is zero state income tax. There is state taxes on dividends, so doesn't rank as lowest tax overall. ...
by eric321
Tue Mar 16, 2021 5:59 am
Forum: Personal Finance (Not Investing)
Topic: High earners, about how much tax do you pay?
Replies: 79
Views: 9355

Re: High earners, about how much tax do you pay?

Way too much.. And then realizing that I made too much money (short term gains trading the market) and hitting phase outs for certain deductions. Solo 401k helped. Taking action to tax optimize my strategy. Moved to a low cost state with no state income tax. Bought real estate investments which are ...
by eric321
Tue Mar 16, 2021 5:50 am
Forum: Personal Finance (Not Investing)
Topic: W-2 to 1099 work preparations
Replies: 6
Views: 465

Re: W-2 to 1099 work preparations

The big 1099 benefit is the 20% pass thru deduction on income. That small business deduction is apparently being reported by Bloomberg as a potential tax raise currently considered. That said, I think the current rules prohibit the deduction. The solo 401k is a great way to defer income and grow ret...
by eric321
Sun Mar 14, 2021 8:41 pm
Forum: Personal Consumer Issues
Topic: Baby, Wife & Car
Replies: 44
Views: 3240

Re: Baby, Wife & Car

Do you plan on having a second kid soon ish? That might ruin your 10 year in a car plan. Rear facing car seats take up a ton of space and depending on how tall you are, you may want a bigger car. With a new baby you likely aren't going far. Grocery store, Costco. I'd go for a cheap used car. Most us...
by eric321
Sun Mar 14, 2021 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford a $1.35M house?
Replies: 54
Views: 5133

Re: Can I afford a $1.35M house?

Way too stretched. Adjust your mortgage rate up a bit. Adjust your down payment up a bit in case you appraise below the sale price. Adjust your tax rate up a bit. [Political comment removed by moderator oldcomputerguy] Run some what if scenarios if stock prices fall. Tech stocks are in a bubble and ...
by eric321
Tue Mar 09, 2021 6:47 am
Forum: Personal Consumer Issues
Topic: What are your alternatives to big name brands, like Amazon?
Replies: 72
Views: 4976

Re: What are your alternatives to big name brands, like Amazon?

Costco prices do beat Amazon. And the membership requirement exempts and blurts the price match. Amazon is horrible for the environment. Think of how many boxes are wasted. Think of how environmentally unfriendly those vans are crossing state lines to optimize for minimum wages. I don't want my life...
by eric321
Mon Mar 08, 2021 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: Sell or keep rental property? What to do with proceeds?
Replies: 13
Views: 805

Re: Sell or keep rental property? What to do with proceeds?

Could you actually refinance the investment property at decent rates? Banks charge more for investment properties.

What is your outlook on real estate appreciation? If you are levered long, this is a good inflation hedge.
by eric321
Mon Mar 08, 2021 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a home in a sellers market-Finance Question
Replies: 3
Views: 665

Re: Buying a home in a sellers market-Finance Question

How much of your investment portfolio is a traditional taxable brokerage vs. non-taxable? You could do a margin loan to cover the gap period. Most lenders will lend up to 50% of your value that's not in an IRA. You could also look into borrowing against your current home. See what you can get from a...
by eric321
Sun Mar 07, 2021 10:28 pm
Forum: Personal Consumer Issues
Topic: Leather vs Cloth Car Seats
Replies: 71
Views: 5354

Re: Leather vs Cloth Car Seats

Katskinz does aftermarket leather adds if you change your mind. Side airbags are the toughest part. You've got the right Boglehead mind. The base model is a loss leader to get you in the dealership. Most customers want leather and will pay up a huge amount. Gm makes a ton off the Yukon. I've own car...
by eric321
Sat Mar 06, 2021 8:49 pm
Forum: Investing - Theory, News & General
Topic: Investing in Real Estate - Rental Income?
Replies: 23
Views: 2430

Re: Investing in Real Estate - Rental Income?

Picking the right location is important. In general, the best income generating opportunities are further away from people with high incomes. Just a supply/demand of capital imbalance and people like investing next door. There are stocks that just invest in single family homes for rent. There are co...
by eric321
Sat Mar 06, 2021 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: suggestions for interested high school students (finance, etc.)
Replies: 5
Views: 433

Re: suggestions for interested high school students (finance, etc.)

It's great to be interested in finance at an early age. I'd suggest the courses below as a insider overview of stocks and bonds in an online course designed by a Wall Street Trader. For an independent study project, you need to show your teacher/advisor that you learned something. The built in exams...
by eric321
Mon Mar 01, 2021 5:34 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford a $2.5M first home?
Replies: 185
Views: 14694

Re: Can we afford a $2.5M first home?

No you cannot. You are running your house numbers assuming perfection and you'll easily get tripped up. Your combined income in a vhcol is below where others purchasing in your area are. You are a partner in your business. If you can move to a cheaper area, you will be better off. Your mortgage rate...
by eric321
Sat Feb 20, 2021 7:50 pm
Forum: Personal Consumer Issues
Topic: Retiring to Vermont/New Hampshire area
Replies: 91
Views: 7052

Re: Retiring to Vermont/New Hampshire area

New Hampshire for the reasons why you are on bogleheads. Lower taxes. No state income tax on wage income (think of any 401k assets). Higher property tax on a percentagr basis but reasonable once you consider the value of properties. NH is careful with tax dollars it spends and has a pretty good busi...
by eric321
Thu Feb 18, 2021 8:43 pm
Forum: Personal Investments
Topic: Rental property cashouts to invest
Replies: 8
Views: 612

Re: Rental property cashouts to invest

I would also consider selling.. If you want to invest in real estate there are better markets.. I agree with the lack of benefits for the 529 unless there is a state kicker. The two properties are the real problem. You should be getting 10%+ levered (with mortgage returns) it sounds like you are in ...
by eric321
Thu Feb 18, 2021 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: Reasonability Check on Mortgage Points
Replies: 12
Views: 805

Re: Reasonability Check on Mortgage Points

Be careful, the mortgage point vs. rate calculation is different on a 15 year vs. 30 year. They probably couldn''t pay you any cash out, so they just pocketed the difference. Citi has a good website that allows you to adjust the points and they requote the rate. Changing the rate, changes the option...
by eric321
Mon Feb 15, 2021 11:00 pm
Forum: Investing - Theory, News & General
Topic: What About Vanguard Mortgage-Backed Securities ETF (VMBS)?
Replies: 16
Views: 979

Re: What About Vanguard Mortgage-Backed Securities ETF (VMBS)?

I like VMBS as a cash alternative but I would be very careful in this environment. MBS outperforms treasuries when rates are stable, but underperforms when rates move. Yields are already increasing and we could see a bit of volatility. These videos give a good overview of MBS and the underlying asse...
by eric321
Sun Feb 14, 2021 7:05 pm
Forum: Personal Consumer Issues
Topic: all realtor competent in escalation clause to offer?
Replies: 22
Views: 4695

Re: all realtor competent in escalation clause to offer?

All realtors should know how to do it, but in a hot market it doesn't make sense to use one. Have your realtor walk you through the comps and know what the house is worth. If you realtor knows the market they can help you figure out what you should flex on. In a hot market, you'll go to best and fin...
by eric321
Sun Feb 14, 2021 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: To buy or not to buy points on purchase mortgage (2.5% vs. 1.875% fixed rate on 30 year)
Replies: 23
Views: 2673

Re: To buy or not to buy points on purchase mortgage (2.5% vs. 1.875% fixed rate on 30 year)

I was in a similar situation and decided to buy points. 2.5 points for a 1.75% 30 year fixed rate (along side some relationship discounts). The loan processor never saw rates that low. And US Treasuries are starting to increase. We've moved around a lot in the past, but plan to make this our forever...
by eric321
Sun Feb 14, 2021 3:48 pm
Forum: Personal Consumer Issues
Topic: Buying a car spring 2021
Replies: 73
Views: 5004

Re: Buying a car spring 2021

Another vote for a mid-sized SUV. One value suggestion - look at the Jeep Grand Cherokee. The platform is a Mercedes platform. The underlying engine / platform is plenty reliable. The infortainment is top notch, especially coming from a 10 year old car. A new model is coming for 2022, there are a to...
by eric321
Sun Feb 14, 2021 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Needing input - Thinking to move back to TX after my move to CA
Replies: 19
Views: 2343

Re: Needing input - Thinking to move back to TX after my move to CA

Vote for Texas.

Do you make more in San Diego vs. Houston? You'll save a ton in taxes and the cost the buy a home in Houston.

Plus with the energy industry being weaker, you have less than usual competition for homes in Houston.
by eric321
Tue Feb 09, 2021 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Best Mortgage rates? Chase private client, BofA, etc
Replies: 3
Views: 593

Re: Best Mortgage rates? Chase private client, BofA, etc

Wells and Citi have relationship rates worth considering as well. Citi is quite transparent with posted discounts.
by eric321
Sat Feb 06, 2021 9:22 pm
Forum: Personal Consumer Issues
Topic: 2021 Jeep Grand Cherokee
Replies: 35
Views: 2497

Re: 2021 Jeep Grand Cherokee

Great suv. This was designed by mercedes back during the Daimler Chrysler years. Older platform but very reliable. Fiat, the new parent has made investments in the infotainment tech to keep it fresb. New model is around the corner, which is why the current one is cheap. Design and parts are paid off...
by eric321
Sat Feb 06, 2021 9:15 pm
Forum: Personal Consumer Issues
Topic: What's your Yearly Costco Spend?
Replies: 96
Views: 5470

Re: What's your Yearly Costco Spend?

I love Costco. My spend per year typically ranges around the 10,000 per year mark. There are some things that are a real deal at Costco and some that are okay. Car tires. The tires themselves are reasonable but the cheap service to switch winter tires to summer tires etc that keep me buying tires th...
by eric321
Sun Jan 17, 2021 2:12 pm
Forum: Personal Consumer Issues
Topic: Where do you buy coffee beans?
Replies: 179
Views: 15688

Re: Where do you buy coffee beans?

Costco as well. They have different types of toasts and varies by region. Starbucks French roast is my go to. Dark and smokey, my reference, but not others. $4-5 a pound. I grind my coffee before I brew which makes a big difference compared to roasting. At the $8-10/lb range there are a variety of s...
by eric321
Thu Jan 14, 2021 10:57 pm
Forum: Personal Consumer Issues
Topic: What is the correct premium to pay for a Toyota vs a Chrysler?
Replies: 53
Views: 3374

Re: What is the correct premium to pay for a Toyota vs a Chrysler?

Way too much love on this board for boring Japanese cars. In the minivan space - the Chrysler Pacifica is much nicer than the Sienna. Way back when the Chrysler Town & Country and the Dodge Grand Caravan shared a platform. More recently, the Pacifica is the premium model the Grand Caravan the va...