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Small White Dragon posted:Is there a cash equivalent offered by the 401(k)? If that's what you think, I'd put money into the 401(k) to take advantage of the tax-advantage space, but not actually invest into a fund or whatever until later.
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Oct 14, 2019 03:26
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You might need to reevaluate your risk tolerance as well and decide to have more cash/bonds. Do that and then stick to it. Anything is better than panicking and selling when it drops 15%.
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Oct 14, 2019 03:29
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The Big Jesus posted:Alternatively, if I'm still maxing out tax advantage space, am I better off paying off mortgage @4.6% or throwing money in a brokerage fund? I'm starting to think about doing the former instead. Either jam it in your tax advantaged space or pay down your mortgage. Don't bother with taxable unless you're definitely going to need the money before retirement. Also try to figure out what's keeping you from refinancing down to 3.5%. We can help.
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Oct 14, 2019 04:14
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I may sell within 2 years so that's why I'm not looking to refi
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Oct 14, 2019 04:24
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The Big Jesus posted:I may sell within 2 years so that's why I'm not looking to refi I know it's a lot of work, but if you have a 350k balance and 26 years left on the mortgage it would take $7k in closing costs to not make it payoff in 2 years. 4.6->3.5% is simply a huge jump. https://www.nerdwallet.com/mortgages/refinance-calculator/calculate-refinance-savings just in case you haven't run the numbers.
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Oct 14, 2019 04:34
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Motronic posted:Then you are seriously in good shape. I mean....this is said a lot but it's true: you keep investing in a downturn and you are buying everything on sale. 30 years from retirement, assuming that humanity is still a thing by then...
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Oct 14, 2019 12:30
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What can one do with a passive income in Euros besides exchange it for dollars?
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Oct 14, 2019 12:48
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ganglysumbia posted:What can one do with a passive income in Euros besides exchange it for dollars? Other than the obvious "live in europe" and/or "buy things in euros"? I think you need to be a bit more specific about where you are and the kind of "passive income" we're talking about. Please don't say inherited real estate, please don't say inherited real estate.
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Oct 14, 2019 15:21
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Motronic posted:Other than the obvious "live in europe" and/or "buy things in euros"? So uh, out of curiosity, if the answer is "inherited real estate" (in twenty years or so, hopefully many more!), why is that a bad thing/how painful will that be?
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Oct 14, 2019 15:24
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Residency Evil posted:So uh, out of curiosity, if the answer is "inherited real estate" (in twenty years or so, hopefully many more!), why is that a bad thing/how painful will that be? Accidental landlord, very remote landlord, plus all the fun of holding foreign bank accounts. Yay! Your CPA will love it.
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Oct 14, 2019 15:40
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Motronic posted:Accidental landlord, very remote landlord, plus all the fun of holding foreign bank accounts. Yay! Your CPA will love it. Who?
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Oct 14, 2019 15:48
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You'll be fine. Just jam some money into an envelope and mail it to, "Government, Washington DC."
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Oct 14, 2019 15:58
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Motronic posted:Other than the obvious "live in europe" and/or "buy things in euros"? Inherited real estate in Germany. However, it is already being managed by a firm as the previous owner was mostly absent.
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Oct 14, 2019 16:13
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ganglysumbia posted:Inherited real estate in Germany. How much net income per month are you looking at here as a % of your current? Net is absolute bottom line after taxes (eu+us), maintenance(management company) , long term maintenance fund (roof), advertising, vacancy, exchange rates, local accounting, etc. How much would the lump sum of selling it change your life? If it's a high % compared to your current income but the lump sum of selling it wouldn't somehow change your life then keep it. Otherwise sell it and pay off your house / buy a house / invest it domestically. If you can't sell it because your family would disown you consider new family. Are your inlaws nice?
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Oct 14, 2019 16:29
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Motronic posted:Accidental landlord, very remote landlord, plus all the fun of holding foreign bank accounts. Yay! Your CPA will love it. Hoodwinker posted:You'll be fine. Just jam some money into an envelope and mail it to, "Government, Washington DC." Let me tell you guys how thrilled I will be to figure out (pay for) international property law some day.
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Oct 14, 2019 17:56
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The point is that if you have international property you can replace that with US property for approximately the same return with less headaches (assuming this is just an investment).
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Oct 14, 2019 19:13
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I knew someone who inherited an apartment in Italy and tried to manage it remotely, I think they kept it a year or two before giving up. Just things like getting a plumber to show up turned out to be incredibly hard
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Oct 14, 2019 19:24
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When we talked about taking a DOD job in Italy our friends, who have lived in Italy for 15+ years, told us the story about getting cable installed. The cable installer said he would be there Thursday and by Thursday he meant eventually on a Thursday. I think it took 6 weeks. On the other hand I would kill for a place in Rome.
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Oct 14, 2019 19:30
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Stupid HELOC question. We want to redo our kitchen. It'll probably run around $20k. likely more. I was thinking of opening up a HELOC to fund it and then pay it back within 6ish years. Most HELOCs have draw periods of around 10 years. If I complete repayment on the 6 year schedule, should I close the HELOC? We don't have any other plans for the house over the remainder of the draw period, nor do we plan on using it to buy a car (HELOC rates are higher than auto finance rates for basically anything). Is a HELOC something that a homeowner with equity should just have open once it's paid off, just in case? Or is it kinda like an extra credit card where if you're done with it, you should just be done with it?
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Oct 15, 2019 14:00
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MJP posted:Stupid HELOC question. We want to redo our kitchen. It'll probably run around $20k. likely more. I was thinking of opening up a HELOC to fund it and then pay it back within 6ish years. Most HELOCs have draw periods of around 10 years. If I complete repayment on the 6 year schedule, should I close the HELOC? We don't have any other plans for the house over the remainder of the draw period, nor do we plan on using it to buy a car (HELOC rates are higher than auto finance rates for basically anything). If you have discipline to not draw it leave it open. You can always close it if you need available credit elsewhere. If you or your spouse will be tempted by scented candles then close it asap.
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Oct 15, 2019 16:36
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Residency Evil posted:Let me tell you guys how thrilled I will be to figure out (pay for) international property law some day. Same. My wife's parents have multiple pieces of property in their home country, including some loving timeshare condo/hotel thing. And due to "cultural reasons" they don't talk to my wife or her sister about their estate plan beyond "you'll be taken care of". I don't want to butt in because it's her family, but I know I'm going to have to the one to navigate this poo poo. I, for one, cannot WAIT to learn the intricacies of international probate. 
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Oct 15, 2019 17:10
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That actually reminds me of a question I had in the back of my head about HELOCs. When you set up a HELOC with a say 10 year draw period, is the interest rate floating until you actually take out a loan from the HELOC? In other words, is there any benefit to opening up a HELOC now while rates are low even though I have no intention of needing/using it? Seems like not really if the rate floats. We bought a house this year with 20% down in a high cost area so we have a sizable chunk of equity tied up in it. We're not strapped for cash and have no plans to borrow against that equity, but is it something worth setting up when you don't need it?
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Oct 15, 2019 18:27
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Guinness posted:That actually reminds me of a question I had in the back of my head about HELOCs. When you set up a HELOC with a say 10 year draw period, is the interest rate floating until you actually take out a loan from the HELOC? In other words, is there any benefit to opening up a HELOC now while rates are low even though I have no intention of needing/using it? Seems like not really if the rate floats. I believe they are all variable.
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Oct 15, 2019 18:32
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Guinness posted:That actually reminds me of a question I had in the back of my head about HELOCs. When you set up a HELOC with a say 10 year draw period, is the interest rate floating until you actually take out a loan from the HELOC? In other words, is there any benefit to opening up a HELOC now while rates are low even though I have no intention of needing/using it? Seems like not really if the rate floats. The rate would not be fixed during your initial draw period. If you had drawn/paid on your balance multiple times over the draw period, you would likely be paying different rates each time.
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Oct 15, 2019 18:53
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So sounds like there's really no reason to set up a HELOC now if I've got no plans to use it (i.e., a renovation) and have ample savings otherwise. Thanks goons.
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Oct 15, 2019 19:00
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Jows posted:I, for one, cannot WAIT to learn the intricacies of international probate. Just imagine international probate combined with tree law
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Oct 15, 2019 19:32
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Residency Evil posted:Let me tell you guys how thrilled I will be to figure out (pay for) international property law some day. Depends, are there ambitious family members overseas who would just claim all the assets and dare you to do something? That might save you the trouble of unloading the assets!
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Oct 15, 2019 20:33
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Guinness posted:That actually reminds me of a question I had in the back of my head about HELOCs. When you set up a HELOC with a say 10 year draw period, is the interest rate floating until you actually take out a loan from the HELOC? In other words, is there any benefit to opening up a HELOC now while rates are low even though I have no intention of needing/using it? Seems like not really if the rate floats. Just noting, you probably already know but just in case: a cash-out refinance is another option, and one that could get you a locked low interest rate. Of course it's not a line of credit, you take the cash and then stick it in the bank till you need it. There are also "remodeling" or "home improvement" loans with various terms offered, which could work for you. E.g., https://loans.usnews.com/home-improvement-loans (scroll to near the bottom) Leperflesh fucked around with this message at 21:41 on Oct 15, 2019 |
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Oct 15, 2019 21:36
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There’s also the wait for the remodel until we can pay for it with cash method.
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Oct 15, 2019 22:07
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Jows posted:Same. My wife's parents have multiple pieces of property in their home country, including some loving timeshare condo/hotel thing. And due to "cultural reasons" they don't talk to my wife or her sister about their estate plan beyond "you'll be taken care of". crazypeltast52 posted:Depends, are there ambitious family members overseas who would just claim all the assets and dare you to do something? That might save you the trouble of unloading the assets! It’s just a single condo, likely worth about 150k. Not life changing and it’s going to be a pain to figure out. Apparently there’s a high tax on real estate gains that leave the country, but I’m unclear on the details. Residency Evil fucked around with this message at 22:20 on Oct 15, 2019 |
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Oct 15, 2019 22:14
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nelson posted:There’s also the wait for the remodel until we can pay for it with cash method. Ain't nobody got time for that.
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Oct 15, 2019 22:42
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MomJeans420 posted:I knew someone who inherited an apartment in Italy and tried to manage it remotely, I think they kept it a year or two before giving up. Just things like getting a plumber to show up turned out to be incredibly hard Not if you’re Princess Peach.
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Oct 16, 2019 01:35
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nelson posted:There’s also the wait for the remodel until we can pay for it with cash method. You will never star in the BWM thread with that attitude. withak fucked around with this message at 03:24 on Oct 16, 2019 |
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Oct 16, 2019 01:40
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H110Hawk posted:Tax loss harvesting question, mainly to make sure I'm doing it correctly. I don't think I saw an answer to this. Bueller?
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Oct 16, 2019 02:03
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Adhemar posted:Not if you’re Princess Peach. Yeah but the plumber still comes from like 8 worlds away.
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Oct 16, 2019 03:47
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H110Hawk posted:I know it's a lot of work, but if you have a 350k balance and 26 years left on the mortgage it would take $7k in closing costs to not make it payoff in 2 years. 4.6->3.5% is simply a huge jump. Thanks for this. I haven't been paying attention to rates since I bought my house last year. I should be able to drop a full percentage point and get rid of PMI thanks to the fast appreciation in my area. Fhqwhgads posted:Yeah but the plumber still comes from like 8 worlds away. 8 bits at a time Loan Dusty Road fucked around with this message at 04:46 on Oct 16, 2019 |
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Oct 16, 2019 04:30
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My company's 401(k) provider is currently Vanguard, about which I consistently read positive things, not to mention they are a client-owned company (or so I have read). For 2020 we are switching to Fidelity. Might I hold my current investments with Vanguard, or should just go ahead and let the Company move everything over? I have no other investments with Vanguard, as USAA is currently managing my Roth IRA (my only other investment other than some odd stocks and an ESOP from a previous job). Beach Bum fucked around with this message at 13:59 on Oct 16, 2019 |
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Oct 16, 2019 13:56
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nelson posted:There’s also the wait for the remodel until we can pay for it with cash method. Mortgage interest rates are still so low, you'll want to consider financing even if you can afford to pay cash. There are also straight up home equity loans that have fixed rates and terms. These are much cheaper to close than a cash out refi. The interest is deductible for those who still itemize.
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Oct 16, 2019 14:27
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Beach Bum posted:My company's 401(k) provider is currently Vanguard, about which I consistently read positive things, not to mention they are a client-owned company (or so I have read). For 2020 we are switching to Fidelity. Might I hold my current investments with Vanguard, or should just go ahead and let the Company move everything over? If they move, you're moving. You can't elect to stay. However, you might have vanguard funds available through fidelity so you could remain in the same investments. Fidelity offers funds that are competitive with vanguard or cheaper, so you might even come out slightly ahead. If you can, request a list from your administrator, you can see what's going to be on offer.
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Oct 16, 2019 14:35
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Beach Bum posted:My company's 401(k) provider is currently Vanguard, about which I consistently read positive things, not to mention they are a client-owned company (or so I have read). For 2020 we are switching to Fidelity. Might I hold my current investments with Vanguard, or should just go ahead and let the Company move everything over? This isn't something you have a choice in, but if it's Amazon you are likely going to get a better deal at Fidelity by a few hundredths of a percent. Also someone at Fidelity just got a shockingly high bonus.
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Oct 16, 2019 16:07
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