Search found 487 matches

by mesaverde
Sun Aug 11, 2019 9:42 am
Forum: Personal Investments
Topic: deferred state pension benefits- increase in value?
Replies: 3
Views: 515

deferred state pension benefits- increase in value?

Hello, I am a public school teacher in Virginia and a member of the state pension known as the Virginia Retirement System, VRS. I am vested and may quit/retire next year (age 47) but do not want to begin taking pension payments until age 65. According to the VRS website, they estimate my monthly pay...
by mesaverde
Thu Aug 08, 2019 7:44 am
Forum: Personal Investments
Topic: Teacher pensions make for unique retirement planning
Replies: 18
Views: 2251

Re: Teacher pensions make for unique retirement planning

Hi- I'm 46 and have been teaching in public schools for 21 years. My plan is to be able to retire at age 50. For that to happen I've been maxing out a 457b for many years (this will be my main stream of penalty-free withdrawal income starting at age 50). I've also been contributing quite a bit to a ...
by mesaverde
Wed Jun 19, 2019 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Refinancing to 30 year fixed- which option to take?
Replies: 13
Views: 1158

Re: Refinancing to 30 year fixed- which option to take?

Just as a side note, I just ran your exact numbers through another lender assuming max credit (I think 770) and got an 80/20 conventional 30 yr at 4% with roughly the same "closing costs". However, I always hate using that term because it is so ambiguous. If the extra 5% extra down really...
by mesaverde
Wed Jun 19, 2019 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Refinancing to 30 year fixed- which option to take?
Replies: 13
Views: 1158

Re: Refinancing to 30 year fixed- which option to take?

Just as a side note, I just ran your exact numbers through another lender assuming max credit (I think 770) and got an 80/20 conventional 30 yr at 4% with roughly the same "closing costs". However, I always hate using that term because it is so ambiguous. If the extra 5% extra down really...
by mesaverde
Wed Jun 19, 2019 9:06 am
Forum: Personal Consumer Issues
Topic: Turkish Airlines ?
Replies: 49
Views: 4520

Re: Turkish Airlines ?

I've flown with Turkish Airlines several times and the service has been better than any U.S. airline.
Not only that, but their fares tend to be lower than U.S. airlines.
It's a no brainer.
by mesaverde
Wed Jun 19, 2019 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Refinancing to 30 year fixed- which option to take?
Replies: 13
Views: 1158

Re: Refinancing to 30 year fixed- which option to take?

Thank you for the feedback. Aimloan has already determined the value as $355k. That amount is what I stated was the minimum value when I applied for the refinance. The value has been steadily increasing because my home is three miles from Amazon HQ2. They said they did a "computer analysis"...
by mesaverde
Wed Jun 19, 2019 6:39 am
Forum: Personal Finance (Not Investing)
Topic: Refinancing to 30 year fixed- which option to take?
Replies: 13
Views: 1158

Refinancing to 30 year fixed- which option to take?

Current mortgage: Home value: $355,000 Loan balance: $299,095 with 348 months remaining Mortage rate: 4.5% fixed conforming PMI: $86/month with 5+ years remaining (home value was $320k when purchased one year ago) I'm refinancing through Aimloan to lower the rate and get rid of the PMI. I plan to st...
by mesaverde
Sun Jun 16, 2019 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 1134
Views: 120911

Re: Why are you NOT buying rental properties?

Those with more experience, any thoughts on what you would do? Condo in a HCOL with plenty of jobs nearby, near public transit, etc. mkt value to annual gross rent is about 25x Long term tenant (no hassles in many years) so rent is kept about 10% below market. Ltv about 35% with a low 3% rate. Cash...
by mesaverde
Sun Jun 16, 2019 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 1134
Views: 120911

Re: Why are you NOT buying rental properties?

Those with more experience, any thoughts on what you would do? Condo in a HCOL with plenty of jobs nearby, near public transit, etc. mkt value to annual gross rent is about 25x Long term tenant (no hassles in many years) so rent is kept about 10% below market. Ltv about 35% with a low 3% rate. Cash...
by mesaverde
Fri Jun 14, 2019 5:52 am
Forum: Personal Investments
Topic: Purchasing home with less than 20% downpayment experiences?
Replies: 59
Views: 5033

Re: Purchasing home with less than 20% downpayment experiences?

The extra interest you pay (and PMI or prepaid PMI in the form of a higher interest rate) is simply the price you pay for using someone else's money. That's it, it's simple. Who knows, even if you can put a full 20% down maybe that isn't the best decision- maybe you'd be better off leaving that mone...
by mesaverde
Fri Jun 07, 2019 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Best place to get a mortgage these days?
Replies: 7
Views: 1615

Re: Best place to get a mortgage these days?

I am currently refinancing my home with Aimloan, as recommended by many on Bogleheads over the years. Their rates are perhaps the best that can be found AND the process has been very smooth. It's easy to get a quote on their website and you don't have to enter any personal contact info. just to get ...
by mesaverde
Sat Jun 01, 2019 9:00 pm
Forum: Personal Investments
Topic: Contribute additional $12k to 403b to convert $12k to Roth?
Replies: 7
Views: 857

Re: Contribute additional $12k to 403b to convert $12k to Roth?

I like your strategy. You are in a low tax bracket, and will retire in at least as high a bracket since you have a pension. Therefore, you should prefer Roth to traditional investments. Investing more in your 403(b), and converting an equal amount in your traditional IRA to a Roth IRA, is equivalen...
by mesaverde
Wed May 29, 2019 8:34 am
Forum: Personal Investments
Topic: Contribute additional $12k to 403b to convert $12k to Roth?
Replies: 7
Views: 857

Re: Contribute additional $12k to 403b to convert $12k to Roth?

Thank you for the feedback. The $ in the taxable account was invested ~7 months ago and has a capital gain of $8k already. Since I have the means to remain in the 12% federal income tax bracket now, in the years to come, and after retirement, it's not such a cut and dry decision given that the divid...
by mesaverde
Mon May 27, 2019 8:36 pm
Forum: Personal Investments
Topic: Contribute additional $12k to 403b to convert $12k to Roth?
Replies: 7
Views: 857

Contribute additional $12k to 403b to convert $12k to Roth?

Emergency Funds : 6 months Debt : $298k on the condo I live in. 4.5% fixed with 348 months remaining. I'm not inclined to make extra payments on this as I will have no heirs & think I can earn a higher rate of return (with more risk) by investing. Tax Filing Status : single Tax rate : 12% feder...
by mesaverde
Fri Jan 18, 2019 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Why are you NOT buying rental properties?
Replies: 1134
Views: 120911

Re: Why are you NOT buying rental properties?

one important thing to consider is cost of buying, cost of turnover, cost to own and cost of selling. on the buy side - inspection costs, closing costs, etc on the turnover side, cost to re-paint, re-carpet, re-market, and pay the mortgage until the next tenant moves in. I am not even mentioning $ ...
by mesaverde
Sat Jan 05, 2019 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: At 95% loan to value with PMI. Refinance or pay down to 80%, or keep $ invested?
Replies: 8
Views: 533

Re: At 95% loan to value with PMI. Refinance or pay down to 80%, or keep $ invested?

Watty beat me to it. Paying down to 20% and recasting is exactly what you are looking for. I've done it once. I had to pay a $50 fee and sign one sheet of paper, much better than refinancing. I just send a message asking if the mortgage can be recast with 80% LTV... hopefully the answer is yes! The...
by mesaverde
Sat Jan 05, 2019 7:02 am
Forum: Personal Finance (Not Investing)
Topic: At 95% loan to value with PMI. Refinance or pay down to 80%, or keep $ invested?
Replies: 8
Views: 533

At 95% loan to value with PMI. Refinance or pay down to 80%, or keep $ invested?

Age : 45 Goal retirement age : 50-55 Current assets : 43% Fidelity government 457b, 33% Fidelity 403b, 17% VG taxable account, 5% VG Roth IRA, 2% home equity I'll also have a pension starting at age 65, which will provide an income stream of $40-50k/year. SS starting at age 70. No debt other than m...
by mesaverde
Tue Nov 20, 2018 10:47 am
Forum: Personal Finance (Not Investing)
Topic: sell rental condo 6 miles from Crystal City, VA Amazon location?
Replies: 36
Views: 4144

Re: sell rental condo 6 miles from Crystal City, VA Amazon location?

Thank you everyone for the replies. It's a tough decision, especially now... last night the renter I had lined up balked and no longer wants to rent it, but today a buyer has made an offer for asking price.
by mesaverde
Mon Nov 19, 2018 6:10 am
Forum: Personal Finance (Not Investing)
Topic: sell rental condo 6 miles from Crystal City, VA Amazon location?
Replies: 36
Views: 4144

Re: sell rental condo 6 miles from Crystal City, VA Amazon location?

Did you live in the condo? If so, for how long? Do you have a renter in it now? We lived in the Crystal City area as well as what I called "Barely McLean" really the Tysons Corner area during our DC stint back in 1987-1990. It's a nice area and I was a little shocked to hear how developme...
by mesaverde
Sun Nov 18, 2018 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: sell rental condo 6 miles from Crystal City, VA Amazon location?
Replies: 36
Views: 4144

sell rental condo 6 miles from Crystal City, VA Amazon location?

I have a condo that I used to live in that I've been renting out. Two months ago I put it on the market to sell. The condo is in northern Virginia, 6 miles from where the new Amazon headquarters will be in Crystal City. It's close to a yellow line metro station that goes to Crystal City. Over the pa...
by mesaverde
Tue Sep 25, 2018 11:32 am
Forum: Personal Investments
Topic: best use of $115k
Replies: 5
Views: 1397

Re: best use of $115k

I would go with option 2. You should calculate how much an extra $86/month adds to your effective interest rate. Also, you are assuming that the PMI is tax deductible. Is that still the case for you with the doubling of the standard deduction? My effective interest rate is approx. 4.8% with the mor...
by mesaverde
Mon Sep 24, 2018 8:25 pm
Forum: Personal Investments
Topic: best use of $115k
Replies: 5
Views: 1397

best use of $115k

Soon I’ll be selling a former home that I’ve been renting out… I don’t want to be a landlord. The net proceeds will be approx. $115,000. I have some ideas about how to best use the $115k, but have not reached a final decision. -Current age: 45 -Desired retirement age: 50 (if I have enough saved for ...
by mesaverde
Mon Sep 24, 2018 12:28 pm
Forum: Personal Consumer Issues
Topic: What is your single most expensive mistake?
Replies: 293
Views: 28743

Re: What is your single most expensive mistake?

In 1999 as I began my teaching career I was approached by an AIG Valic salesperson & signed up for a high cost annuity/403b. I didn't realize my mistake until discovering Vanguard & low cost mutual fund investing in 2006. I convinced the school board to add Fidelity (w low cost index funds) ...
by mesaverde
Sat Sep 01, 2018 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: keep rental condo?
Replies: 18
Views: 1503

Re: keep rental condo?

Sell. The monthly rental rate is pitiful. Is the current monthly rental income the current "market rate" OR could you receive a higher amount? The current monthly rent is maybe ~$50 below market rate compared to condos in the same condo community. I've kept it that way to initially attrac...
by mesaverde
Sat Sep 01, 2018 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: keep rental condo?
Replies: 18
Views: 1503

Re: keep rental condo?

delamer wrote: Sat Sep 01, 2018 11:36 am Any chance that your current renter would buy it?

If the person is really reliable, you could finance it for her/him.
The idea of first offering the condo for sale to the tenant makes complete sense... I will do that. As much of a hassle moving is, the tenant will at least appreciate the offer.
by mesaverde
Sat Sep 01, 2018 6:16 am
Forum: Personal Finance (Not Investing)
Topic: keep rental condo?
Replies: 18
Views: 1503

Re: keep rental condo?

Thank you for the feedback, and especially the detailed spreadsheet that breaks it down. So I'm leaning towards selling the rental condo... It's just a question of when. If I give the tenant a 30 day notice to vacate now, I (might) be able to sell it for a decent price before the Thanksgiving/Christ...
by mesaverde
Fri Aug 31, 2018 9:52 am
Forum: Personal Finance (Not Investing)
Topic: keep rental condo?
Replies: 18
Views: 1503

keep rental condo?

I have a rental condo a few miles away from my home that I manage myself. The current tenant is fine, takes care of it, and has no plans to move out. But I'm wondering if I should sell the condo, mainly because I only have 5% equity in my own home (30 year 4.5% fixed rate mortgage, $80/month mortgag...
by mesaverde
Sat Apr 28, 2018 6:33 am
Forum: Personal Consumer Issues
Topic: How stressful is buying a home?
Replies: 56
Views: 5070

Re: How stressful is buying a home?

This Thursday I will close on my 2nd home purchase (all contingencies have been met and I was given final approval on the loan). I knew what to expect from the lender & had my finances & paperwork in order, so dealing with the lender was not stressful. I had watched the local market for year...
by mesaverde
Fri Apr 27, 2018 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: pay extra principal to remove mortgage insurance or contribute to 403b?
Replies: 5
Views: 728

Re: pay extra principal to remove mortgage insurance or contribute to 403b?

I look at PMI as similar to extra interest, because it's money that is gone. Based on the mortgage numbers above, your annual interest plus PMI makes it "feel" like you are paying 4.87% interest, which is not that much more than your 4.5. How much would you spend to refi from a 4.87 to a ...
by mesaverde
Thu Apr 26, 2018 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: pay extra principal to remove mortgage insurance or contribute to 403b?
Replies: 5
Views: 728

pay extra principal to remove mortgage insurance or contribute to 403b?

Current age: 45 Goal retirement age: between age 50 and 55 Current effective federal + state income tax rate: 27% Annual taxable income: ~50k from stable employment Assets: $220k in Fidelity government 457b. Currently maxing this out each year. It will likely be my main source of income when I retir...
by mesaverde
Sat Apr 07, 2018 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: monthly PMI OR lender paid PMI (higher mortgage rate)
Replies: 3
Views: 495

Re: monthly PMI OR lender paid PMI (higher mortgage rate)

Thank you for the feedback... I think I will go with the monthly PMI.
by mesaverde
Sat Apr 07, 2018 5:51 am
Forum: Personal Finance (Not Investing)
Topic: monthly PMI OR lender paid PMI (higher mortgage rate)
Replies: 3
Views: 495

monthly PMI OR lender paid PMI (higher mortgage rate)

On Monday I will be locking in a mortgage rate on a condo I'm purchasing. I plan to live in this condo for 10 years minimum, probably much longer. I've been saving approx. $1,000/month in the Vanguard Prime Money Market Fund (taxable account) for a down payment. Currently I'm only able to put 5% dow...
by mesaverde
Sat Jan 13, 2018 6:18 pm
Forum: Investing - Theory, News & General
Topic: video- How Dave Ramsey's Mutual Funds Have Performed Since 1973
Replies: 5
Views: 1702

video- How Dave Ramsey's Mutual Funds Have Performed Since 1973

This was a recent broadcast on the most popular personal finance radio talk show: https://www.youtube.com/watch?v=swKB0dFlxa8 Ramsey refers to an analysis that his network of mutual fund salespeople conducted on the number of mutual funds that outperformed the S&P 500. In this analysis he fails ...
by mesaverde
Mon Oct 09, 2017 11:35 am
Forum: Personal Finance (Not Investing)
Topic: buy home with 10% or 20% down in this situation?
Replies: 17
Views: 1825

Re: buy home with 10% or 20% down in this situation?

Are the interest rates on the 10% and 20% downpayment loans the same? Have you tried getting a HELOC on the first condo? +1 One other option is that if you have a paid off car(or boat, RV, etc) then you could get a lower interest car loan on that to raise part of the down payment. You may also be a...
by mesaverde
Mon Oct 09, 2017 11:08 am
Forum: Personal Finance (Not Investing)
Topic: buy home with 10% or 20% down in this situation?
Replies: 17
Views: 1825

Re: buy home with 10% or 20% down in this situation?

The best rates I've found are through Aimloan: 1. 10% down payment on a 30 year fixed "HomeReady" loan @ 3.75% involves mortgage insurance payments of $62/month for 79 months (unless extra principal payments are made). Closing costs total $3,700. 2. 20% down payment on a 30 year fixed conv...
by mesaverde
Mon Oct 09, 2017 10:46 am
Forum: Personal Finance (Not Investing)
Topic: buy home with 10% or 20% down in this situation?
Replies: 17
Views: 1825

Re: buy home with 10% or 20% down in this situation?

OP here. I called Fidelity again today and asked if I could get a loan on either the 457b or 403b. The answer (again) was no. So I've contacted the lender I'd go with to buy the condo (Aimloan) to ask whether getting a HELOC would negatively affect getting a loan to buy the condo. I haven't heard ba...
by mesaverde
Sat Oct 07, 2017 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: buy home with 10% or 20% down in this situation?
Replies: 17
Views: 1825

Re: buy home with 10% or 20% down in this situation?

OP here. Thank you for the feedback. I'm unable to get a loan from the 403b and am not able to withdraw funds from the 457b unless I separate from service (resign/retire). OK, since you weren't asked this previously: can you get a loan from the 457(b) plan? If so, what are the terms? Are you eligib...
by mesaverde
Sat Oct 07, 2017 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: buy home with 10% or 20% down in this situation?
Replies: 17
Views: 1825

Re: buy home with 10% or 20% down in this situation?

OP here. Thank you for the feedback. I'm unable to get a loan from the 403b and am not able to withdraw funds from the 457b unless I separate from service (resign/retire). I guess I could get a loan from the Traditional IRA, but would not be able to repay it within the 60 day window. The only way I...
by mesaverde
Sat Oct 07, 2017 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: buy home with 10% or 20% down in this situation?
Replies: 17
Views: 1825

Re: buy home with 10% or 20% down in this situation?

OP here. Thank you for the feedback. I'm unable to get a loan from the 403b and am not able to withdraw funds from the 457b unless I separate from service (resign/retire). I guess I could get a loan from the Traditional IRA, but would not be able to repay it within the 60 day window. The only way I ...
by mesaverde
Sat Oct 07, 2017 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: buy home with 10% or 20% down in this situation?
Replies: 17
Views: 1825

buy home with 10% or 20% down in this situation?

Some background: age 44, single, no children Stable employment as a public school teacher, net pay $3,800/month after maxing out a government 457b, pension contributions, etc. $18k in Vanguard Prime money market (taxable account) $75k in Vanguard Traditional IRA $23k in Vanguard Roth IRA $200k in Fi...
by mesaverde
Wed Oct 04, 2017 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: Is this housing budget reasonable?
Replies: 28
Views: 2080

Re: Is this housing budget reasonable?

To the OP: Do you realize that when you buy a property with a mortgage, you either buy it financed as a primary residence or investment property? You will pay a (often significantly) higher interest rate on an investment property, even if you make a substantial down payment. If you are thinking of g...
by mesaverde
Thu May 11, 2017 2:55 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey's ELP's pay him to not understand investment fees
Replies: 24
Views: 3923

Dave Ramsey's ELP's pay him to not understand investment fees

Apparently Dave Ramsey is making money from his ELP ("Endorsed Local Provider") network of high expense ratio loaded mutual fund salespeople. So much that Dave "doesn't understand" why fees are such a big deal. He goes on and on about it in this recent airtime: https://www.youtub...
by mesaverde
Thu Apr 20, 2017 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: When does it make sense to start paying down (or off) a low rate mortgage?
Replies: 53
Views: 10617

Re: When does it make sense to start paying down (or off) a low rate mortgage?

To me, it doesn't make sense to PAY DOWN a low-rate mortgage. It may make sense to PAY OFF the mortgage. Paying off the mortgage will reduce your expenses. If you're about to early retire, this is useful. Paying down the mortgage buys you nothing. Your mortgage payments (monthly expenses) remain th...
by mesaverde
Tue Apr 04, 2017 12:08 pm
Forum: Personal Consumer Issues
Topic: Tour du Mont Blanc Sept. 2017
Replies: 16
Views: 3386

Re: Tour du Mont Blanc Sept. 2017

1. What type of cold weather gear do you recommend bringing? (850 down parka, expedition gloves/mitts, etc.) Or can I leave those at home and just bring a fleece/hat/and lightweight gloves?) 2. Do the huts and refuges accept Credit Cards? I'm getting conflicting information on this. If they do not,...
by mesaverde
Tue Mar 14, 2017 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Use ROTH IRA to pay down Rental Property Mortgage?
Replies: 21
Views: 2277

Re: Use ROTH IRA to pay down Rental Property Mortgage?

Not that it would be a bad thing, but I'm curious, why have you decided that you want to pay the mortgage off? Is it because you want to retire soon and have more cash flow to live off of? I ask because I didn't sense that you have a clear goal in mind? 3.75% is a decent rate and with that balance, ...
by mesaverde
Thu Mar 09, 2017 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Are we ready to buy a house? What should our price range be?
Replies: 56
Views: 5917

Re: Are we ready to buy a house? What should our price range be?

5) How does buying this house fit in with your overall life goals as a couple? I think this is the biggest question. It seems like your wife is prioritizing a house and perhaps kids, while you're prioritizing saving as much as possible and perhaps early retirement. I really, really hate the phrase ...
by mesaverde
Sat Mar 04, 2017 7:22 am
Forum: Personal Investments
Topic: Contribute additional $10k to 403b to convert $10k to Roth?
Replies: 6
Views: 833

Re: Contribute additional $10k to 403b to convert $10k to Roth?

I went ahead and increased contributions to the 403b in order to offset conversions from the Trad. IRA to the Roth (while remaining in the 15% federal tax bracket). I also increased federal + state tax withholding from the paycheck in order to cover the tax that will be associated with the conversio...
by mesaverde
Wed Mar 01, 2017 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Seems Dave Ramsey is right about debt
Replies: 55
Views: 13448

Re: Seems Dave Ramsey is right about debt

The way that Dave Ramsey puts debt into perspective is often spot on. I show his debt related youtube videos to my high school personal finance classes. This video is particularly good in that he puts a spotlight on the stupidity of going into debt for a car (depreciating asset). Your Car Loan Is Ki...
by mesaverde
Thu Feb 23, 2017 6:24 pm
Forum: Personal Investments
Topic: Contribute additional $10k to 403b to convert $10k to Roth?
Replies: 6
Views: 833

Re: Contribute additional $10k to 403b to convert $10k to Roth?

Thank you for the feedback. I'm leaning towards contributing an additional $10k to the 403b and starting the annual $10k conversions from Trad. IRA to Roth. Unless there's a clear reason not to do so, it will be good to have more $ in the Roth.
by mesaverde
Wed Feb 22, 2017 8:31 pm
Forum: Personal Investments
Topic: Contribute additional $10k to 403b to convert $10k to Roth?
Replies: 6
Views: 833

Contribute additional $10k to 403b to convert $10k to Roth?

Emergency Funds : 6 months Debt : $117k on a rental property with some cash flow (2.5% fixed mortgage) Not really interested in paying this off anytime soon... maybe at/during retirement. Tax Filing Status : single Tax rate : 15% federal; 4.9% effective state Age : 43 Retirement age goal : 50 Antic...