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Please increase the upside down pyramid that is going to collapse eventually, just keep kicking that can down the road yeah
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Dec 26, 2019 05:09
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brugroffil posted:The easiest way to get more people to a stable retirement is to expand social security not more tax advantaged savings that mainly go to the upper middle class and above I agree social security should be uncapped on contributions and something on distribution. I don't know enough to talk about the latter more than saying I think the minimum output should be much higher and uncapping the input solves a lot of the math.
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Dec 26, 2019 06:05
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BraveUlysses posted:My wife left her job and was sent a 1099R tax document and a receipt of deposit to a bank account of the funds from her 401k. No taxes have been taken out and I suspect it needs to be put into a 401k or fees and taxes will be charged and withheld. bump from 7 months ago but yeah my wife didnt ever do anything about this. original 1099R form showed a gross distribution of 2700+ bucks. we just got a new 1099R form with a check for 144 loving dollars. what the gently caress happened.
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Dec 27, 2019 04:00
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Checking up in Personal Capital, and how the heck do dividends happen in mutual funds? VFORX gave me 55 shares and change in dividends, like $2000+, just because. Are they taking some kind of formula where the total amount of dividends given to the stocks in the fund then get redistributed to fund shareholders? Same for VXUS, $300ish just because, but it's an ETF.
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Dec 30, 2019 15:53
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MJP posted:Checking up in Personal Capital, and how the heck do dividends happen in mutual funds? VFORX gave me 55 shares and change in dividends, like $2000+, just because. Are they taking some kind of formula where the total amount of dividends given to the stocks in the fund then get redistributed to fund shareholders? Same for VXUS, $300ish just because, but it's an ETF. As I understand it, yes. Stock A that the mutual fund owns yields a dividend of a dollar. You own 1000 shares of VFORX (whatever), which means you own 5 shares of that Stock A, so you get $1 * 5 = $5.00. You can then choose to either keep that cash, or reinvest it in the same security automatically, buying $5 of VFORX. Sounds like you did the latter. Multiply that out by every stock in the fund which issues a dividend.
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Dec 30, 2019 16:28
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Can someone help me check my mental models? I have maxed 401k, maxed IRA (some ROTH, some Traditional) and working on taxable accounts for additional long term investment/savings. So I’m trying to distribute the overall asset mix between those. What goes in the tax sheltered accounts: Stuff that pays interest and dividends, so that income is protected from taxation and can compound higher. Stuff expected to grow long term in the ROTH so any gains are untaxed. What goes in the taxable accounts: Stuff that grows, since I don’t get taxed until I realize any gains at sale (which I expect to be able to control). Eventually, stuff paying interest or dividends that I can benefit from once I (presumably) have a lower income. More liquid savings for emergencies. e: just re-read the OP and see there is a detailed answer. https://www.bogleheads.org/wiki/Tax-efficient_fund_placement doingitwrong fucked around with this message at 16:19 on Dec 31, 2019 |
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Dec 31, 2019 16:02
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doingitwrong posted:Can someone help me check my mental models?
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Dec 31, 2019 16:24
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My wife asked me about investing in real estate the other day and I started looking into REITs as we had previously looked into possible rental properties. I checked out vanguard's VNQ real estate ETF and I don't completely understand them and their dividends. Rental income is much more straightforward to me, so I was wondering if someone could elaborate on how REIT works in an ETF in comparison to rental income. Assuming a hypothetical 2br/2bath $200,000 property is fully owned (no outstanding debt), I assume rental income to be total amount received in rent per year, minus any management fees or maintenance issues. I'm aware this could be substantial if an appliance/AC unit/water heater/plumbing issue happens. For instance (and ease of math), assuming stable tenants and no outstanding debt: $1500/mo rental income x 12 months = $18,000/year - (management fees + maintenance issues) - property taxes - homeowners insurance - HOA fees = annual rental profit Does that sound correct? Am I missing anything in there? Now for real estate ETFs, for that same hypothetical $200,000 investment, what are the returns? Vanguard says VNQ shares are currently $92.15, which would get 2169 shares and over the past year, the total (added quarterly) dividend per share was $3.14, which would be $6810.66 in dividends + any gain in the share price. Does that also sound correct? It appears that if you have stable tenants and no maintenance issues (  ) that you'd stand to make more renting property with a higher risk associated, where as REIT investing is relatively less risky (despite the recession, VNQ has returned 9.16% overall since 2004) for a more stable profit.Please poke holes in anything as it will help me to understand this all better!
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Dec 31, 2019 17:15
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Cacafuego posted:Assuming a hypothetical 2br/2bath $200,000 Does there exist places where a 2br is that cheap, and yet rent is that high?
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Dec 31, 2019 17:25
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Cacafuego posted:My wife asked me about investing in real estate the other day and I started looking into REITs as we had previously looked into possible rental properties. I checked out vanguard's VNQ real estate ETF and I don't completely understand them and their dividends. Rental income is much more straightforward to me, so I was wondering if someone could elaborate on how REIT works in an ETF in comparison to rental income. Less income taxes, vacancy, advertising. 2 months of vacancy brings you to $15k gross revenue. You're sitting at 7.5-9% gross revenue, property taxes I assume are at least 1% so 6.5-8%. Management fees are what, 10% of receipts? So subtract out 0.75-0.9%, let's lump in HOA fees here to round it up to 1% because I like whole numbers: 5.5-7%. Homeowners insurance is probably another grand a year: 4.5-6%. Let's assume 1% of purchase price in maintenance, so $2,000 a year. Some years it's $0, some years it's a roof: 3.5-5%. You can wash some of that in your income taxes, but I don't know how much of it. (scheduled depreciation of a capital asset for your business.) Best case in your example is 5% income, assuming flat value of the asset of course. The asset could appreciate to get rid of the annual maintenance for example, bringing you back to 6%. Or you could just invest it in the market and have 0 headache and a long term statistical 6% as well.
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Dec 31, 2019 17:32
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H110Hawk posted:Less income taxes, vacancy, advertising. 2 months of vacancy brings you to $15k gross revenue. You're sitting at 7.5-9% gross revenue, property taxes I assume are at least 1% so 6.5-8%. Management fees are what, 10% of receipts? So subtract out 0.75-0.9%, let's lump in HOA fees here to round it up to 1% because I like whole numbers: 5.5-7%. Homeowners insurance is probably another grand a year: 4.5-6%. Let's assume 1% of purchase price in maintenance, so $2,000 a year. Some years it's $0, some years it's a roof: 3.5-5%. You can wash some of that in your income taxes, but I don't know how much of it. (scheduled depreciation of a capital asset for your business.) You're the best. Thank you.
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Dec 31, 2019 17:44
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Pardot posted:Does there exist places where a 2br is that cheap, and yet rent is that high? My brother had a construction company that does remodels in Spokane. They also buy and flip and buy and hold as rentals. He can get 2-3br places for 80-120k, put 30-60k into it and rent for about $500/bedroom. Usually a 3br is not much more than a 2br.
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Dec 31, 2019 17:46
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I would include the "cost" of months where rent isn't paid, be it due to vacancy or to nonpaying tenants. E: beaten
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Dec 31, 2019 17:56
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Plus then you don't have to deal with the internet leftist brigade wheeling around their shitpost-powered guillotine after you, LANDLORD BOUGIE SCUM.
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Dec 31, 2019 18:00
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Pardot posted:Does there exist places where a 2br is that cheap, and yet rent is that high? Good question - it was with the thought of keeping and renting out our current place, which we will own outright in about 2 years if we decide to move. It was hypothetical, so my numbers may have been a bit off  H110Hawk posted:Less income taxes, vacancy, advertising. 2 months of vacancy brings you to $15k gross revenue. You're sitting at 7.5-9% gross revenue, property taxes I assume are at least 1% so 6.5-8%. Management fees are what, 10% of receipts? So subtract out 0.75-0.9%, let's lump in HOA fees here to round it up to 1% because I like whole numbers: 5.5-7%. Homeowners insurance is probably another grand a year: 4.5-6%. Let's assume 1% of purchase price in maintenance, so $2,000 a year. Some years it's $0, some years it's a roof: 3.5-5%. You can wash some of that in your income taxes, but I don't know how much of it. (scheduled depreciation of a capital asset for your business.) This is a good breakdown, thank you for explaining. It was mostly for my knowledge and to explain to my wife when she asked about REITs. We already have diversified index funds in 401k/IRA and max these every year, so I was curious about REITs and dividend stocks since I don't understand those either, or which ones to look at for a taxable brokerage account. As newbies to this stuff, we were looking at ways to dump a large lump sum in and be able to use the gains as additional passive income (not re-invested) as this wouldn't be for retirement since we already have that covered. EAT FASTER!!!!!! posted:Plus then you don't have to deal with the internet leftist brigade wheeling around their shitpost-powered guillotine after you, LANDLORD BOUGIE SCUM. Yeah, not gonna lie, didn't want to have to deal with this either. Cacafuego fucked around with this message at 18:41 on Dec 31, 2019 |
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Dec 31, 2019 18:38
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I'm 41 and way behind on retirement savings. Is this a good plan to "set it and forget it" for a while? Is it diversified enough? 401k - saving 21.7% of gross income to max out annual 19.5k contribution 100% into iShares S&P 500 Index Fund - Class K ER 0.03% Roth IRA - saving 6.7% of gross income to max out annual 6k contribution 100% into VTIVX - Vanguard Target Retirement 2045 ER 0.15% Mutual Fund - saving 1.3% of gross income 100% into VTSAX - Vanguard Total Stock Market Index Admiral Shares ER 0.04% Savings - saving 1.3% of gross income Ally 1.60%
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Dec 31, 2019 18:40
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EAT FASTER!!!!!! posted:Plus then you don't have to deal with the internet leftist brigade wheeling around their shitpost-powered guillotine after you, LANDLORD BOUGIE SCUM. I don’t mean to derail, but what do they argue is the right thing to do, for the landlords to give away their apartments to the tenants?
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Dec 31, 2019 18:48
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zaurg posted:I'm 41 and way behind on retirement savings. Is this a good plan to "set it and forget it" for a while? Is it diversified enough?
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Dec 31, 2019 18:51
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Animal posted:I don’t mean to derail, but what do they argue is the right thing to do, for the landlords to give away their apartments to the tenants? Basically in places where values have outpaced inflation by stupid amounts (think NY and SF) people are getting charged $lol, 000/month on housing stock which people happened to buy 10+ years ago for half (or less) its face value. This happens in various places to varying degrees but it's most pronounced there. This is how you get the cycle of rent control coming and going.
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Dec 31, 2019 18:56
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H110Hawk posted:Basically in places where values have outpaced inflation by stupid amounts (think NY and SF) people are getting charged $lol, 000/month on housing stock which people happened to buy 10+ years ago for half (or less) its face value. This happens in various places to varying degrees but it's most pronounced there. This is how you get the cycle of rent control coming and going. Oh. Yeah, I live in NYC. I am lucky and “only” pay $2,200 in a nice area of Brooklyn, electricity included. The landlord inherited his properties from previous generations. I haven’t asked but I suspect he doesn’t really do anything for a living but collect rents and pay a super to take care of issues. It never occurred to me to resent him personally for it. We are spending the day with them tomorrow at their friends place
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Dec 31, 2019 19:15
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Animal posted:I don’t mean to derail, but what do they argue is the right thing to do, for the landlords to give away their apartments to the tenants? Full communism now something something all landlords are cops guillotine I am very smart
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Dec 31, 2019 19:22
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Animal posted:I don’t mean to derail, but what do they argue is the right thing to do, for the landlords to give away their apartments to the tenants? Noooo, veer away!
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Dec 31, 2019 19:37
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Retail, office, industrial, and self storage buildings have such better cash flows than residential rentals that it's fair to judge people who are specifically interested in them. Like, just admit you want to be Lord of someone, ya weirdo
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Dec 31, 2019 19:40
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GoGoGadgetChris posted:Retail, office, industrial, and self storage buildings have such better cash flows than residential rentals My wife works for a commercial real estate company that used to own/manage office buildings. Post-2008 real estate collapse they rebuilt themselves as a investment property firm going only after single tenant, triple-net type buildings (warehouse, industrial) and outside the NY tristate area. Less hassle and overhead than tenants, better income stream for their investors. Maybe one day we’ll build up enough cash to buy into one of their funds.
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Dec 31, 2019 19:56
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Internet leftists aren't the first or only people to criticize landlordism/rentierism you dopes E: from a practical advice perspective, what H110 said above brugroffil fucked around with this message at 20:14 on Dec 31, 2019 |
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Dec 31, 2019 20:11
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GoGoGadgetChris posted:Retail, office, industrial, and self storage buildings have such better cash flows than residential rentals that it's fair to judge people who are specifically interested in them. I’d love to read more about commercial properties. Someone was going to make a thread about commercial investment. What happened to that?
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Dec 31, 2019 20:24
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Hoodwinker posted:Shut the gently caress up zaurg who removed his years of probation
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Dec 31, 2019 21:57
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GoGoGadgetChris posted:Retail, office, industrial, and self storage buildings have such better cash flows than residential rentals that it's fair to judge people who are specifically interested in them. loving self storage, those things absolutely print money its amazing. I'll have to look up the ones we've financed when I'm back at work but I'd much rather own those than SFRs.
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Dec 31, 2019 22:12
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Cacafuego posted:I’d love to read more about commercial properties. Someone was going to make a thread about commercial investment. What happened to that? I’m still meaning to do it, putting a draft together still because I’m swamped.
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Jan 1, 2020 07:58
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Happy Roth IRA Day!
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Jan 1, 2020 12:54
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crazypeltast52 posted:I’m still meaning to do it, putting a draft together still because I’m swamped. No worries. Looking forward to it!
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Jan 1, 2020 14:54
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dexter6 posted:Happy Roth IRA Day! That's bonus check day for me.
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Jan 1, 2020 15:21
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crazypeltast52 posted:I’m still meaning to do it, putting a draft together still because I’m swamped. Let me know if you want any help, I'm on the finance side of a fair bit of CRE.
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Jan 1, 2020 17:02
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After paying my Q4 taxes, 529 contribution, and Roth IRA contribution, I officially have enough money in savings that I could pay off my home if I wanted to right now... just debating how much of an emergency fund I want and if I should pull the trigger.
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Jan 1, 2020 17:36
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Astro7x posted:After paying my Q4 taxes, 529 contribution, and Roth IRA contribution, I officially have enough money in savings that I could pay off my home if I wanted to right now... just debating how much of an emergency fund I want and if I should pull the trigger. This is just being pedantic as you're obviously in a really good spot: If the balance in your savings account is greater than the balance on your mortgage but if it includes your e-fund then you don't have enough to pay off your mortgage. That being said, I would go for 6 months unadjusted cash flow. (As in, you don't pause your netflix/candles/etc subscriptions if you lost your job and it would last 6 months.) What are the terms on your mortgage?
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Jan 1, 2020 18:54
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dexter6 posted:Happy Roth IRA Day! You're a day early, bro!!
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Jan 1, 2020 19:05
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H110Hawk posted:This is just being pedantic as you're obviously in a really good spot: If the balance in your savings account is greater than the balance on your mortgage but if it includes your e-fund then you don't have enough to pay off your mortgage. 3.375% w/ 23 years left. $160K balance. 180K in savings. Yeah, I could pay it off completely and have a $20K emergency fund (6 months is 30K, factoring in a mortgage payment still). My wife wants a bigger emergency fund though closer to 50K, but would leave a 30K balance on the mortgage. Either way, at the rate we save it would be paid off by 2021 I suspect. I think I may need to break out the amortization schedule and show her much interest is spent by waiting a year. 20K is small, but we also won't have to pay that mortgage anymore at 11K a year, which would help build up savings faster again. After quite a few discussions we don't feel comfortable dumping that much money into the market. I have a Roth an a SEP IRA my employer contributes to, my wife has a Roth and a teacher pension. We are also maxing out a 529 at 20K a year for the tax benefits. I feel like I would not feel comfortable putting money into a taxable trading account until we've paid off the house.
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Jan 1, 2020 19:31
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Astro7x posted:3.375% w/ 23 years left. $160K balance. 180K in savings. At 3.375 you're never going to have access to capital that cheaply again. If it makes you feel better pay it off but it is concentrating your asset allocation on your primary residence. We go back and forth on it, I sort of pretend that it's my bond allocation. Given your savings rate I would invest to be blunt. You can afford the payment on the house and you're statistically likely to make 6% actual returns over the same 23 year period, paying for the interest on the mortgage and still turning a profit. Maybe make a 5 year repayment plan and invest the spread?
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Jan 1, 2020 19:41
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^^^ I will respectfully disagree with the above. While H110Hawk is absolutely correct in saying that you'll likely end up with more money in the long term by investing it rather than paying off the house early, I would say the psychological benefit of being debt-free can certainly be worth it compared to those percentage points of gains, and if your happiness and sense of security is sufficiently increased by paying off the house, then that's the correct option. It is very personality dependent, of course.
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Jan 1, 2020 19:51
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I will agree with Kylaer about the psychological benefits. There is also the fact that it was hard enough to get my wife to agree to putting $32K away in retirement accounts and college saving accounts, and if I suggest putting it all into the market it will never happen. I also think that when people have the "invest vs. pay off the house" debate, people never factor in that freed up income from not having a mortgage payment. Not paying 11K per year towards the mortgage is another 11K I could invest each year. That's 253K over 23 years.
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Jan 1, 2020 20:07
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