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Jan 20 '21 at 17:12 answer RedSonja timeline score: 1
Jan 15 '21 at 19:13 comment added Robbie Goodwin Why not become a landlord? Here in the UK, that's one of the safest routes to profit from both short-term rent and long-term appreciation of property value and there's very little need to roll up your own sleeves… just hire an agent
Jan 14 '21 at 17:57 comment added MonkeyZeus @BenBarden Second paragraph: Both kids have healthy 529s (more than maxed out each year thanks to grandparents)
Jan 14 '21 at 16:33 comment added Ben Barden How are you doing on investing in the kid's college funds?
Jan 14 '21 at 14:30 comment added MonkeyZeus Well you mentioned donations, albeit charitable, but in terms of inflation you are exacerbating it to -100% inflation. The tax deductible interest argument only has merit if you're itemizing things and even if you are then it will only reduce your tax burden by like 20% of interest paid; is that really a better ROI over paying against your principal; you still get to claim that tax-deductible interest fyi. Paying for tax deductible interest is equivalent to overspending your CC to earn points and carrying the balance from month to month.
Jan 14 '21 at 14:15 comment added Dean MacGregor @Fattie The problem with hiring someone to manage your property is that they still call you when things come up, and you're still paying for those expenses out of your share. You're just paying ~10% of your rent income for a glorified answering service. Sure they'll call the plumber to go replace the dishwasher but they don't wear risk with you for their share of the income.
Jan 14 '21 at 11:55 comment added Fattie @acpilot 's point is absolutely critical. with lifetime-scale planning, jurisdiction becomes very important
Jan 14 '21 at 3:47 comment added jamesqf @Fattie: Yes, a non-rich real estate investor can hire a manager, but as you say, that sucks out a lot of the profit. Thought that was obvious...
Jan 14 '21 at 1:20 comment added reirab @MonkeyZeus With a 2.875% mortgage, the return from paying off the mortgage earlier is almost guaranteed to be negative due to inflation. They're basically paying you to keep the money at that point, especially since the interest is tax deductible (assuming it's a primary residence within the deductible limits.)
Jan 13 '21 at 19:54 history protected GS - Apologise to Monica
Jan 13 '21 at 18:55 comment added acpilot Will your state be solvent in 10-15 years? Something to think about. You say "mid-atlantic" so you are likely OK. Had you said Illinois, for example, it might be wise to calculate your retirement amount without the pension "guarantee."
Jan 13 '21 at 18:07 answer math man timeline score: 2
Jan 13 '21 at 17:07 answer mczarnek timeline score: 0
Jan 13 '21 at 15:17 answer Phil Frost timeline score: 0
Jan 13 '21 at 14:57 comment added Daniël van den Berg Have you considered A) working less B) spending more money (idk, buy a boat?)? Enjoy your money while you can! What are you going to do with it when you're 80?
Jan 13 '21 at 14:42 answer Fattie timeline score: -1
Jan 13 '21 at 14:08 comment added Fattie @jamesqf the idea that you need many many properties (hence "rich") to avoid the occasional phone call to replace a dishwasher, is simply completely plain wrong. I think of a friend who owns ~5 properties. He is the 100% "never lift a finger" type. if you have one rental property, you can have a property manager do everything (or course, that costs part of the profit). (But, self-evidently, so does hiring your own fulltime manager, if you have many properties.) I'm sorry but it just makes no sense. "Replacing dishwashers yourself" is a lifestyle choice (for "handy" type owners)
Jan 13 '21 at 13:52 comment added Randall @Fattie done (if it's helpful).
Jan 13 '21 at 13:44 history edited Randall CC BY-SA 4.0
added 75 characters in body
Jan 13 '21 at 12:22 comment added Fattie @Randall - outstanding, AAA. Can you say what metropolis you are in (or just the "category" of city, "Chicago -size city", "Boise -size city")
Jan 13 '21 at 12:17 comment added Randall @Fattie yes, we have no PMI.
Jan 13 '21 at 11:36 comment added Fattie @Randall have you eliminated PMI from your mortgage ?
Jan 13 '21 at 0:00 history tweeted twitter.com/StackFinance/status/1349144219806531587
Jan 12 '21 at 20:58 comment added MonkeyZeus Yes, it is possible to do better with an investment but paying the principal on your own house is a guaranteed return.
Jan 12 '21 at 20:42 comment added stannius @Randall my spouse works for a school district has access to both a 457 and a 403(b). (And furthermore a defined contribution pension). I didn't believe it when I first learned about it, but the limits are essentially separate (there is an overall limit that includes both and also includes employer contributions, but IIRC it's 3x the individual limits).
Jan 12 '21 at 19:58 answer computercarguy timeline score: 16
Jan 12 '21 at 19:43 comment added MonkeyZeus You can see if pre-tax donations are an option to stretch your dollar further crfb.org/blogs/tax-break-down-charitable-deduction
Jan 12 '21 at 19:37 comment added Randall @TheGilbertArenasDagger We do regularly contribute to two charities, but we could do more.
Jan 12 '21 at 19:37 comment added Randall @MonkeyZeus good point: I had been thinking about increasing my life insurance coverage.
Jan 12 '21 at 19:36 comment added Randall @MonkeyZeus I did calculate the interest savings but with only putting half ($350) toward the mortgage. Seems like it would do better invested instead. I don't mind paying < 3% on the house loan.
Jan 12 '21 at 19:35 comment added JonH Excellent question - one thing that comes to mind - pay off the house earlier allows you to sleep better and have peace of mind.
Jan 12 '21 at 19:34 comment added Randall @stannius we have the option of a 403(b) or a 457 and I already went 403(b). So, for me, a 457 isn't an option.
Jan 12 '21 at 19:06 comment added The Gilbert Arenas Dagger I know it's not what you're asking, so hence just a comment, but those that are in a financial position to be charitable should really consider it.
Jan 12 '21 at 17:36 comment added jamesqf @RonJohn: It is why non-rich people (which is what the OP is) shouldn't put their money in real estate, unless they actually like doing the work of managing it. And the OP says he doesn't want to do that.
Jan 12 '21 at 17:33 comment added RonJohn @jamesqf what does that have to do with my comment?
Jan 12 '21 at 17:31 comment added jamesqf @RonJohn: But rich people can generally afford to buy enough real estate that it's cost-effective to hire a flunky (or multiple flunkies) to do the grunt work of managing it. And for the OP, consider that in the current situation, it might be reasonable to hold cash (or cash equivalents) while waiting for buying opportunities.
Jan 12 '21 at 16:58 comment added MonkeyZeus How do you feel about life insurance plans?
Jan 12 '21 at 16:55 comment added MonkeyZeus Have you calculated your interest savings if you apply $700 against your mortgage principal every month? I apply $200 monthly to my 30-year, 100k, 3.75% mortgage and will save $30k in interest and shorten my term by 13 years. So I'll save $30k by paying $40k over 17 years. Not quite sure how to calculate that ROI. Aside from that, put your money in a bunch of mutual funds or stocks that pay dividends.
Jan 12 '21 at 16:31 answer Arluin timeline score: 0
Jan 12 '21 at 16:18 history edited AakashM
infer location from content
Jan 12 '21 at 16:04 history became hot network question
Jan 12 '21 at 15:39 answer Fattie timeline score: -7
Jan 12 '21 at 12:45 answer Pete B. timeline score: 14
Jan 12 '21 at 0:28 answer JTP - Apologise to Monica timeline score: 7
Jan 11 '21 at 23:34 answer D Stanley timeline score: 29
Jan 11 '21 at 23:27 history edited mhoran_psprep CC BY-SA 4.0
edited title
Jan 11 '21 at 22:58 comment added gaefan You are doing the right thing. Nothing better than a brokerage account for your situation.
Jan 11 '21 at 22:27 comment added RonJohn Real estate is typically where rich people put their excess money.
Jan 11 '21 at 22:11 comment added stannius Does your employer offer a 457?
Jan 11 '21 at 21:41 answer TomTom timeline score: 46
Jan 11 '21 at 21:28 review First posts
Jan 11 '21 at 23:03
Jan 11 '21 at 21:22 history asked Randall CC BY-SA 4.0