Chadstroma
Footballguy
Zillow sucks. It should never even be looked at as it does more harm than good in having any understanding of a real appraised value of a property.
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Personal Finance Advice and Education! (7 Viewers)
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Footballguy
Sand
Footballguy
As Oz noted, his district is way up there nationally. Mine is #133 in the country, right behind his. Basically top 1%. Some good districts in Madison, around Birmingham, and Auburn. Heck, my high school just built the biggest band center of any HS outside of Texas. Just for reference for that privilege I paid $85/sq.ft. for my place a few years back.
And, most importantly, the #1 district for athletes in AL.
Louisiana takes pride in being at the top - I doubt we ever get higher than they are.
Chadstroma
Footballguy
Realtor.com snd homesnap.com are directly tied into MLS (what realtors have for listings).Random said:
For valuations, short of paying for an actual appraisal your best bet is with a realtor to give you a comparative market analysis which you can get for free from realtors seeking to be your listing agent if you are selling. If you a buying, they don't really do a formal comparative market analysis but would guide you on what they think home value is worth based on comps. For knowing your value for any other reason, checking realtor.com or homesnap.com for most recent, nearby homes sold that are most like yours and adjusting for things (is that house larger or upgraded over yours etc) to give a ballpatk. Zillow will do more harm than good most times in letting you know your homes fair market value.
-OZ-
Footballguy
Need to sign up for homesnap, no thanks. Although the details are accurate for my house.
Realtor.com is off my 2 bathrooms and 900', value listed is pretty close what we paid a few years ago. I'm not sure why it would be significantly off if linked to MLS
Long Ball Larry
Footballguy
Long Ball Larry
Footballguy
good hipple
culdeus
Footballguy
Ehhh I don't really count that as an expense but yeah, that is more. I just don't pass thru that line item to my budget.
-OZ-
Footballguy
Nope. It just lowers the income.
I don't budget for anything before take home income. Which makes for a nice gift in tax return time.
Estimated again today, we'll get around $900 back (federal, probably $100-200 for state). I'll take it, even if it is a loan to the gov't.
Oh, and we both got $2 back from last year recently.
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Sand
Footballguy
I have my exemptions at zero and still owe somehow. I guessed this year on a distribution that will hopefully keep me out of penalty range. I barely missed on state last year and had to pay a $2.75 penalty. So close.
-OZ-
Footballguy
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Chadstroma
Footballguy
Bob Sacamano
Footballguy
Sale of shares from an ESPP does NOT incur any kind of tax penalty, correct? It just amounts to cap gain or ordinary income, depending on holding period?
Have some ADRs from one of my wife's early employers, and I'm not going to say I forgot about them but... we were much dumber in our 20s and I think we went paperless at some point. I guess paperless only applies until they don't want your administrative costs anymore.
Apparently they become unsponsored ADRs shortly if I do nothing, and I don't think that's something I care to deal with. I'm leaning towards just selling them, but I can't say I've spent any time ever dealing with or giving thought to ADRs. Or ESPPs, for that matter.
Have some ADRs from one of my wife's early employers, and I'm not going to say I forgot about them but... we were much dumber in our 20s and I think we went paperless at some point. I guess paperless only applies until they don't want your administrative costs anymore.
Apparently they become unsponsored ADRs shortly if I do nothing, and I don't think that's something I care to deal with. I'm leaning towards just selling them, but I can't say I've spent any time ever dealing with or giving thought to ADRs. Or ESPPs, for that matter.
-OZ-
Footballguy
No, if it were I'd probably have a realtor just tell me how much it's worth.
I'd have assumed accuracy of a description if it's linked to MLS. We didn't add a room after we bought it.
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culdeus
Footballguy
ESPP usually just means you buy stock at a lower price, and your basis simply reflects that. It's not a big deal.
Sell the ADR and if you can't establish a basis you probably need to just say the basis is 0.
Sand
Footballguy
I have kids. Difference between you and me is you have a whole softball team of 'em.
My tax rate effectively went up last year due to the restructuring of personal exemptions, etc. I ended up right on the line for the standard deduction (24k), which is the worst place to be. This year I'm putting in next year's charity monies to boost deductions this year way into itemized territory and be way below next year.
Chadstroma
Footballguy
How long ago did you buy it? I am not sure how long it has been since they were connected and I don't think MLS keeps data ongoing on homes. I am wondering if you bought before it was connected to MLS and thus never had the real listing info or when you bought the house the MLS sheet was wrong (unusual but not unheard of)
Brony
Footballguy
I wound up selling a bunch of company owned stock earlier this year and now that I see what tax bracket I'm in, I'll likely owe a lot for 2019 taxes. 'It is what it is' on quarterly timing penalty, but should I send the govt a bunch of money now to minimize tax penalties, or just roll with it?
culdeus
Footballguy
This happened to me once. Just send the estimate in now even inside this quarter. Try to get yourself to a situation where you are 99% sure you'll be owed about 1k no matter what before penalties. It's based on a fixed % that you are underpaid, and often that won't trip if you make estimated 4Q tax payments.
Brony
Footballguy
Thanks. Just looking into this now, seems like if I've paid more in 2019 than I owed for 2018 total, then that should help avoid penalties too. I should have stayed more on top of this as it stings now, but when I cashed out I was unemployed, so I wasn't sure where 2019 would land.
-OZ-
Footballguy
we bought it in 2016. Never saw the MLS listing but it's right on Zillow. The narrative is right on realtor.com but the specs are wrong - same as homesnap, so maybe it is the MLS being incorrect.
culdeus
Footballguy
Yeah, I mean for 1040 employees that have regular withholding you have to really #### something up to end up owing a penalty. (note: not a tax expert)
Chadstroma
Footballguy
Odd. First time EVER hearing an error on realtor.com and Zillow being right.
Yea, maybe the specs were wrong on the listing when you bought back in 2016.
Very curious.
-OZ-
Footballguy
There wasn't a listing.Odd. First time EVER hearing an error on realtor.com and Zillow being right.
Yea, maybe the specs were wrong on the listing when you bought back in 2016.
Very curious.
I was active duty Army, PCS'd here. The former owner was also active duty, got moved early. We have a mutual friend. They decided to rent it out, we were interested. Rented for about 9 months, told them we wanted to buy. Hired an inspector, got a VA loan, bought without a realtor on either end. Had a lawyer I know finish the deal.
Former owner had bought just a year or two before we rented. I guess it could have been wrong then.
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Chadstroma
Footballguy
Got ya. Yea, makes sense.
Out of curiosity... who did you get your VAloan through?
And have you looked to refi? Should have better rate options now.
-OZ-
Footballguy
Synovus, since sold to citizen one.
I haven't seen better than 3.25 on a 30, accounting for costs (I do have a VA rating but there are still some costs).
Chadstroma
Footballguy
skycriesmary
Climbing up the Walls
Yeah, property taxes are crazy high in Portland. I paid about 6,700 this year, and the home is valued at about 525k. No sales tax helps overall, but it still stings every time I'm writing the check. Oh, and the roads still suck.
The rate goes up every year, more and more bonds that seem to get rubber stamped.
The rate goes up every year, more and more bonds that seem to get rubber stamped.
ghostguy123
Footballguy
A 525k house in my area would be well over 10 grand property taxes. Maybe closer to 15. Northeast Ohio.
150k house here has taxes over 3 grand.
Probably pays for the non stop road construction.
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Warrior
Footballguy
Insurance question:
My wife's parents had a Whole Life insurance policy. In the case of her death, it would pay them (I believe $50k). It's got a surrender value of ~$7k and a large portion is taxable. They offered to give it to us since we're now married and she will be calling soon to change the beneficiaries from her parents to me.
Since a good chunk of that $7k is taxable, I was looking into a 1035 exchange. I don't have any desire to keep paying into a Whole Life policy, as I want to keep our insurance and our investments completely separated and switch to Term insurance.
Either way, I'm getting away from the Whole Life policy. Would a 1035 exchange into a Term policy be possible? Or am I stuck with cashing out of the policy, paying a large chunk of taxes, and then just purchasing a new Term policy?
My wife's parents had a Whole Life insurance policy. In the case of her death, it would pay them (I believe $50k). It's got a surrender value of ~$7k and a large portion is taxable. They offered to give it to us since we're now married and she will be calling soon to change the beneficiaries from her parents to me.
Since a good chunk of that $7k is taxable, I was looking into a 1035 exchange. I don't have any desire to keep paying into a Whole Life policy, as I want to keep our insurance and our investments completely separated and switch to Term insurance.
Either way, I'm getting away from the Whole Life policy. Would a 1035 exchange into a Term policy be possible? Or am I stuck with cashing out of the policy, paying a large chunk of taxes, and then just purchasing a new Term policy?
Why would you change it to your wife? Sorry to be morbid but your wife’s parents are closer to passing than your wife. I’d keep the insurance on them and inherit the $50k. I mean that’s got to be an insurance company’s wet dream to have older people pay into a policy and before they pass, move it to a 25-30 year younger person without ever paying out the death benefit.
Warrior
Footballguy
Sorry if I didn't clarify. The parents had the policy on my wife from the beginning. They had a previous child pass when they were very young and the policy helped to pay for the expenses including funeral, etc. So they took out a small insurance policy on my wife when she was born just in case.
Basically, they were talked into it by an insurance salesman who wanted to pad his own bank account with Whole Life premiums. At this point, I just want to get out, but if there's a way to swap the current Whole policy for something more useful like Term insurance without taking a big tax hit, I thought it might be worthwhile.
I don't have the policy in front of me, but I think the basis was something like $2k leaving $5k taxable at income tax rates. Wondering if I'm eventually going to purchase Term insurance for us anyways, if it's possible to bridge the gap between this Whole policy and a new Term policy via 1035 exchange to avoid the tax hit.
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Ah, that makes sense now. I’m confused about the taxable amount. Is that growth that wasn’t from premiums paid? I don’t know much about whole life policies.
Warrior
Footballguy
Yeah, essentially it's marketed as insurance that is also an investment account, albeit a horrible one
matttyl
Footballguy
One where $2k in premiums have grown to $7k in cash value - and provided a $50k insurance benefit this entire time? Yeah, sounds horrible to me
. Sorry, couldn't help myself, and yes I'm an insurance agent.No, you can't 1035 into a term policy. You may be able to make the policy a "reduced paid up", or turn it into an "extended term" policy - talk that carrier (you'll likely need one of your inlaws to ask). Or, they can give it to her (no real transfer for value if they gift it to the insured, your wife), then she can make that call. Reduced paid up might just turn it into a $40k policy that never needs another premium (depending on her age, $7k might do just that). Extended term pretty much just means the policy would pay for itself out of it's own cash value for as long as it can.
Is the policy from a "mutual" company (one that pays dividends)?
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Warrior
Footballguy
Bah. As you probably suspected, I had the #'s flipped. Just over $5k paid for premiums over 30 years and it's now worth just over $7k. So total gain of about $2k versus approx. $10k gain if it had been invested in an S&P index (without the coverage). Giant fail on my part.One where $2k in premiums have grown to $7k in cash value - and provided a $50k insurance benefit this entire time? Yeah, sounds horrible to me
No, you can't 1035 into a term policy. You may be able to make the policy a "reduced paid up", or turn it into an "extended term" policy - talk that carrier (you'll likely need one of your inlaws to ask). Or, they can give it to her (no real transfer for value if they gift it to the insured, your wife), then she can make that call. Reduced paid up might just turn it into a $40k policy that never needs another premium (depending on her age, $7k might do just that). Extended term pretty much just means the policy would pay for itself out of it's own cash value for as long as it can.
Is the policy from a "mutual" company (one that pays dividends)?
Thank you for the info - I suspected that a 1035 wasn't possible in this situation and it sounds like that's the case.
matttyl
Footballguy
Yes, while life policies for children aren’t the best vehicle, at least if viewing them as a pure “investment”. Mainly because the child is given “standard” or guaranteed rates. Generally the only child policies I do are where the parents purchase future insurability options where the “child” can buy additional coverage in their 20s and 30s without going through any medical underwriting. If the child had some serious medical condition later in life, those options would be their only chance to get reasonable life coverage.
matttyl
Footballguy
Your part? I thought this was your in laws doing? Also, wouldn't have been a fail at all if something had happened to her insurability, or God forbid if something happened to her.
Just from the numbers you provided (30 years of premiums, $5k total in premiums, $7k in cash), the ROR on just the premiums is just over 2%. Obviously not great. If you were to remove the premium amounts that a term policy would have cost (and only look at the "investment" portion as the difference, it would be a bit better). Generally, what I find is about 3-5% (net after tax, as there isn't any), depending on the policy, for the ROR of the premium difference between term and WL. No, that generally won't beat any equity market over a period of a few decades, but I'm not sure that's the fair comparison. As it's safe and liquid, compare it against CDs or regular bank accounts and it looks pretty good. Personally, I view mine as my emergency fund - and I'll never have to worry about outliving my term policy.
ConstruxBoy
Kate's Daddy
Since we're talking life insurance, I have a term policy that ends in 7 years. I probably want it for about 15-20 more years. Are there general advantages to trying to extend it now, or should I just wait the 7 years and get a new 10-12 year term policy?
matttyl
Footballguy
As is anything dealing with finance, timing is key. You could buy a new 20 year policy now and be done with it (replacing your current term policy, unless it's so cheap it just makes sense to keep both). Or you could wait till the end of it and get a new 15 year (terms usually come in 5 year increments, and with some carriers only 10 year). Really what you want to do it buy the longest possible term policy just before your insurability gets worse (you get standard or below rather than preferred or above rating).
If you wait a few years, your health could change and make whatever you buy more expensive when you do get something new.
Or you could have purchased a whole life policy years ago and not have to worry about any of this. I had to say it.
ConstruxBoy
Kate's Daddy
LOL on the Whole life. Thanks for the thoughts.
matttyl
Footballguy
Hey, I'm a big advocate - and not just because I'm an agent. If I weren't, I still likely would never own any term coverage on myself. Only about 2% of term policies ever end in a claim - 98% of the time it's money thrown down the drain.
ConstruxBoy
Kate's Daddy
Yeah, but I just want insurance if I die while I'm working. If I die after I retire, she doesn't need it. IMO of course.
matttyl
Footballguy
So cash it in (or more likely start generating an income stream from that cash).
Also, ask her about that one. Also, do you have any pension from your work? If so, they'll ask if you want a "survivorship option" (your spouse can continue to get a portion of your pension if you pre-desease). All that is really, is a life insurance policy. There are other examples of why you might want to keep some coverage as long as possible.
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wilked
Footballguy
matttyl
Footballguy
It may have been a 20 year term purchased 13 years ago. Many carriers didn't have a 30 year term then (my primary carrier didn't have a 30 year then). When you start "stacking" term policies like this, it really does make a permanent policy look that much better.
ConstruxBoy
Kate's Daddy
