Chemical X
Footballguy
i call an FA a wealth mgr (bank term). saving enough? projected income and assets? stuff like that.
I assume that only works if you're using their brokerage, not just buying their ETFs?Vanguard has low cost, no pressure management advice. Free (depending on amount you have), one time fee or you can have them manage it ...though the last option seems to defeat the purpose of Vanguard.
I can do it for you pretty easily. We can do it in such a way that the info is all relatively anonymous. I just did it for my father in law and am very confident in my ability to do it fairly well. Shoot me a PM if interestedi call an FA a wealth mgr (bank term). saving enough? projected income and assets? stuff like that.
What interest rate are your student loans?I want to buy a home in ~18 months. Does anyone put down 20% nowadays? We live in Atlanta area, and any decent home in a good area will cost 400k minimum. We could probably save enough for 10%, but 20% ($80k) would not be feasible because we want to concentrate a lot of our disposable income on paying down graduate loans.
Sounds like you're not ready to buy a home...I want to buy a home in ~18 months. Does anyone put down 20% nowadays? We live in Atlanta area, and any decent home in a good area will cost 400k minimum. We could probably save enough for 10%, but 20% ($80k) would not be feasible because we want to concentrate a lot of our disposable income on paying down graduate loans.
We went with zero down (actually like 2% but that's a different story) but that's because we got the VA loan. If not for that, we'd have worked to get 20% down. We're looking to either build a cabin in Tennessee or buy a beach house and we absolutely will pay 20% or more down for those.I think 20% is pretty common and a good strategy. I wouldn't get a mortgage that's over 25% of my take home income.
Interesting, but I'm surprised the second bank would be willing to do that. Their not the primary and you only have 10% equity. Someone else can weigh in but I'd be surprised if something like this is still available today.I don't know if this can be done anymore, but when I got my home in like 2008/9 timeframe my broker suggested I did an 80/10/10 to minimize my down payment and avoid PMI. Basically I took an 80% 30yr with the main mortgage company, put 10% down, and took out a secondary 10% 15yr loan with a different bank for the rest. Plan was to pay double on the 15 every month to get rid of it in 5 years as the rate was higher.
Not sure if that is an option anymore, but it seemed to work well for me.
the second one was with a credit union and was definitely at a higher rate, so I guess that's where they got theirs, hence the desire to pay off quickly. As you said though, that option may not be available (or legal) today.Interesting, but I'm surprised the second bank would be willing to do that. Their not the primary and you only have 10% equity. Someone else can weigh in but I'd be surprised if something like this is still available today.
How steady are your jobs? How long do you want to be in Atlanta for?Rick James said:I want to buy a home in ~18 months. Does anyone put down 20% nowadays? We live in Atlanta area, and any decent home in a good area will cost 400k minimum. We could probably save enough for 10%, but 20% ($80k) would not be feasible because we want to concentrate a lot of our disposable income on paying down graduate loans.
Finish paying down your loans, then save like hell for another year to get as close to 20% as possible. You don't want to have loan debt and also be on the verge of being underwater on your mortgage should there be a decent drop in values.Rick James said:I want to buy a home in ~18 months. Does anyone put down 20% nowadays? We live in Atlanta area, and any decent home in a good area will cost 400k minimum. We could probably save enough for 10%, but 20% ($80k) would not be feasible because we want to concentrate a lot of our disposable income on paying down graduate loans.
Steady jobs. Wife is a PA at a busy hospital in northern Atlanta, and I've had the same job for going on 5 years at a successful family business. Combined we make good money (over 160k).How steady are your jobs? How long do you want to be in Atlanta for?
Not sure, but I would think no matter what you are buying, as long as you have the minimum required amount that this support is included.FUBAR said:I assume that only works if you're using their brokerage, not just buying their ETFs?
We did this. The house/land was valued prior to the loan being approved. The only thing I remember really different is the staged release of dollars to the contractor based on construction milestones. I don't remember if they sent out someone to check but we had to approve them. They did a final inspection - I do remember that.Along the same lines, has anyone here built a home using a mortgage to pay for it? How does the process differ from the usual appraisals and what-not?
With that income, I would just ease up on the student loan payments temporarily and go nuts saving the down payment. You'll have your 20% in no time.Steady jobs. Wife is a PA at a busy hospital in northern Atlanta, and I've had the same job for going on 5 years at a successful family business. Combined we make good money (over 160k).
I've received literature from my wife's credit union offering 97% financing with no PMI. I'm sure they just include PMI into the mortgage, but I don't know. Haven't gotten involved with them.
We have no idea how what their loan balance or interest. Too early to recommend anything.With that income, I would just ease up on the student loan payments temporarily and go nuts saving the down payment. You'll have your 20% in no time.
I'm two months from being done with my house and building it with a construction loan. We did the plans first, took to a builder who gave us an itemized bid, I took that to the bank and they loaned me 80% of the appraised value. My goal was to build it with that 80% and save 20% by being the general contractor, thus basically putting 20% down without really using any cash. It's worked out well if you're up to the task and have experience. My construction loan is 6% and you pay that monthly based on how much has been taken out, so near the end it's pretty pricey, thus you don't drag out the process. 45 days out you work on the final mortgage and that's where I'm currently at.Along the same lines, has anyone here built a home using a mortgage to pay for it? How does the process differ from the usual appraisals and what-not?
Thanks!I'm two months from being done with my house and building it with a construction loan. We did the plans first, took to a builder who gave us an itemized bid, I took that to the bank and they loaned me 80% of the appraised value. My goal was to build it with that 80% and save 20% by being the general contractor, thus basically putting 20% down without really using any cash. It's worked out well if you're up to the task and have experience. My construction loan is 6% and you pay that monthly based on how much has been taken out, so near the end it's pretty pricey, thus you don't drag out the process. 45 days out you work on the final mortgage and that's where I'm currently at.
almost all not taxable - Roth and Coverdell. I'm buying and selling ETFs, not transferring between mutual funds. (except with the TSP, no charge for that and over half our retirement funds are there - but it's the Coverdell accounts I'm talking about not wanting to make a lot of moves)These are in a taxable account FUBAR?
All of my retirement is in tax-sheltered accts and I don't get charged for transfers. If the dollars are big (XX,XXX or better) $7 is 'in the noise' realistically if you are rebalancing a couple times per year.
Why not transfer them into the equivalent mutual funds so you can rebalance going forward at lower cost?almost all not taxable - Roth and Coverdell. I'm buying and selling ETFs, not transferring between mutual funds. (except with the TSP, no charge for that and over half our retirement funds are there - but it's the Coverdell accounts I'm talking about not wanting to make a lot of moves)
The moves are mostly in the thousands but not 5 digits. The fees end up being about 1% for each move, but if multiple moves that adds up. Maybe I'm being "penny wise, pound foolish" by thinking too much about those fees.
expense ratios.Why not transfer them into the equivalent mutual funds so you can rebalance going forward at lower cost?
Is your brokerage account at Vanguard? I don't remember the ETF and mutual fund expense ratios differing much, if at all there. Since you apparently like the Vanguard ETFs, switching might make sense (if not already there).expense ratios.
tell me where my logic, understanding or math fail - the ETFs I'm in range from 0.05% for a total index to 0.19% for an international small cap ETF. Similar mutual funds at my brokerage and bank are 0.17% to around 1.1% Just to use round numbers here, if I have $10,000 in VTI vs. $10,000 in the cheapest mutual fund, there's a difference of $12 per year in expenses, in the cheapest fund. The more pricey accounts - usually international, become closer to $100 difference each year. Granted, that's only for the holdings which are over $10k, which about half of my holdings are currently. It would seem to make sense to buy mutual funds for lesser holdings.
pretty much my entire financial life is through USAA. I might consider changing to Vanguard but the simplicity of having everything in one place is nice.Is your brokerage account at Vanguard? I don't remember the ETF and mutual fund expense ratios differing much, if at all there. Since you apparently like the Vanguard ETFs, switching might make sense (if not already there).
Transferring accounts is a pain. I did it from buyandhold.com about 15 years ago and from sharebuilder maybe 10. But it does seem the smart move. I have been considering making that move before anyway, so maybe now is the time.USAA is about the undergo pretty substantial changes from what I've heard due to the changing DOT laws, have they informed you of anything?
I don't mind the $7 trades if it's less than 1%, just part of it. I would also highly consider Fidelity or Vanguard. You can still use ETFs and mix in some nice mutual funds to because in some sectors they'll outperform ETFs.
I have everything with USAA too (although I have IRAs that I contribute to every month at Vanguard). What changes are you talking about?USAA is about the undergo pretty substantial changes from what I've heard due to the changing DOT laws, have they informed you of anything?
I don't mind the $7 trades if it's less than 1%, just part of it. I would also highly consider Fidelity or Vanguard. You can still use ETFs and mix in some nice mutual funds to because in some sectors they'll outperform ETFs.
How far are you off target. I personally don't bother until I'm 5% off (e.g., 60% target so 65% or 55%). If that's too much for you, just change where the deposits are going to "rebalance" once you get a percent or so off. If you have to trade, if the commission is <1%, I'd be comfortable.another question.
As I stated before, I've balanced our portfolio in the past considering everything in one basket - college, retirement and short term needs. I've reconsidered that and am in the process of making changes - just sold a bunch of emerging international ETF (VWO) and bought into a corporate bond fund (VSLT). But that move costs $7 to sell and $7 to buy. While that isn't huge money, it's enough to make me not want to rebalance everything quickly. I'm not all that interested in changing brokerages, although I might be convinced... but what do you all do when you rebalance? Just cough up the transaction fees and knock it out, wait and just put more money into the areas you're below target?
I'm tempted to not worry so much about international stock vs. US stock in each basket and focus on stocks vs. bonds in each - more heavily in bonds in the college funds of course, I'm still at ~3% in bonds in our retirement account, moving towards 33% in the college accounts.
Mint.comWhat you guys got for mobile budget and financial tracking that merges a bunch of accounts to one place?
i use mvelopes.com for budget/trackingWhat you guys got for mobile budget and financial tracking that merges a bunch of accounts to one place?
Personalcapital.comculdeus said:What you guys got for mobile budget and financial tracking that merges a bunch of accounts to one place?
No.Wife is leaving her current job to be a substitute teachers aide. No benefits/retirement until hired full time. So we need to move her ~$8k 401k.
Does the Roth IRA contribution limit apply to transfers?
You can't just roll a 401k to a Roth. There are tax consequences there. You'd want to roll it over to a traditional IRA to keep it in the tax deferred space. But to answer that question a rollover to a tIRA doesn't count toward the yearly contribution limits.Wife is leaving her current job to be a substitute teachers aide. No benefits/retirement until hired full time. So we need to move her ~$8k 401k.
Does the Roth IRA contribution limit apply to transfers?
You can't just roll a 401k to a Roth. There are tax consequences there. You'd want to roll it over to a traditional IRA to keep it in the tax deferred space. But to answer that question a rollover to a tIRA doesn't count toward the yearly contribution limits.
Check the fees.I have an old 401k with 58k. I haven't worked in the job for 10 year and can't contribute. Should I move this to an IRA or does it not really matter?
That depends. I have a sizeable chunk in an old 401k with a great fund lineup - lots of options, institutional share class expense ratios and a wide variety of index funds. Plus the company pays all the expenses. There is no impetus for me to move it. If you don't have that, especially cheap share classes and/or you have to pay the plan expenses, I'd roll it out to somewhere like Vanguard.I have an old 401k with 58k. I haven't worked in the job for 10 year and can't contribute. Should I move this to an IRA or does it not really matter?
Yeah good idea. It's with TIAA and I think the fees might be higher with them then other companies.Check the fees.