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01-23-2020, 10:39 AM | #67 |
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Until the house sells, the equity/value is just speculated. While I do understand why one would account projected equity in their house into their overall net worth, I tend to not look at this. The only thing I look at with equity is that I'm not in the negative or there's not enough projected equity where the note on the house wouldn't be covered by the sale.
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01-23-2020, 10:49 AM | #68 | |
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The key is know your market.... Even in 2008 houses never really went below what i have in positive equity. And every one in NYC and NYC boroughs are running to jersey to get away from long island taxes. Even people in Staten island which is part of NYC and has much lower taxes are running to my parts. I think my house at minimum will hold its value and in 15 years be closer to 1.2 - 1.5 mil. But then again wwIII. Who knows.
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01-23-2020, 11:13 AM | #69 | |
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01-23-2020, 11:24 AM | #70 | ||
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01-23-2020, 11:35 AM | #71 |
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Don't get me wrong, I think real estate should be a part of an individuals portfolio/investment strategy. Heck I own two homes. But real estate is really a different type of investment with its own set of rewards and risks.....and headaches.
I primarily view my homes as places I live in. I don't look at them as an extra piggy bank to pull money out of. But I do have a HELOC on my primary home which I have used to put money back into the home with regards to home improvements and to have something as an extra emergency reserve. I also take on the mindset that I will not pay off either home early. I'm taking both notes to term. With my primary at 3.75% fixed for 30 years and my vacation home at 3.25% fixed for 30 years, there's really no incentive for me to want to do so. The money I would have sunk into putting equity/principle into the home I have dropped into retirement and non qualified investments. The general guidelines for net worth XutvJet put up...I comfortably fall into the range for my age group without factoring in any of the equity in both my homes. |
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01-23-2020, 11:44 AM | #72 |
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You contribute the max to a non-deductible IRA and then roll that over to a Roth IRA. It's a way to get money into a Roth through the "back door". Well worth the effort.
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01-23-2020, 11:51 AM | #73 | |
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A backdoor Roth IRA is a way for people with high incomes to sidestep the Roth’s income limits. Basically, a backdoor Roth IRA boils down to some fancy administrative work: You put money in a traditional IRA, convert the account to a Roth IRA, pay some taxes and you’re done. Even though you didn’t qualify to contribute to a Roth, you get to go in the back door anyway, no matter what your income.
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01-23-2020, 12:04 PM | #74 | |
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01-23-2020, 12:24 PM | #75 | |
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01-23-2020, 12:24 PM | #76 | |
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I will be the first to admit I'm not an expert in the field, but I think if you are in a tax bracket that is 24% or less..... it could be a good way to get caught up with your goals if you were late getting started. But once you get into the higher brackets, you have to weigh what you pay up front and decide if it benefits you later. We have so many people here at work that don't even participate in the retirement program. All they see is that they take home less money in their pay. My wife and I budget and live on what our salary was 15 years ago even though we make much more now. Plus I grew up poor and kind of became OCD about having a big emergency fund, no debt, etc. I have been contributing for as long as I started working and it was offered, fall within the general numbers posted earlier, but still worry sometimes am I doing enough? But that is more of a personal issue that stems from how I grew up.
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Last edited by Rmtt; 01-23-2020 at 12:57 PM.. |
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01-23-2020, 12:55 PM | #77 |
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I did the backdoor Roth IRA this year for the first time. My IRA is through Vanguard, and they pretty much did everything for me. Pretty painless, but I did spend a ton of time researching about it before actually doing it.
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01-23-2020, 01:01 PM | #78 | |
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01-23-2020, 04:10 PM | #79 |
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01-23-2020, 08:08 PM | #80 |
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Since I plan on retiring in 2 years, I'm glad this thread was started! I also believe the market is top heavy and due for a correction over the next 12 to 18-months.
I haven't pulled any money out yet, but other than 401K's, I haven't invested additional money over the past year. Looking over the comments, normal investment instruments with low risk will return ~2-3%. Are there options for low risk returns that might be available with larger initial investments or longer holding times? If you can invest $250K, $500K, $1M, $2M etc., as a lump sum, does this open up better opportunities for capital preservation with a reasonable return, say at least ~6 to 7%? Last edited by Terry989; 01-23-2020 at 09:15 PM.. |
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01-23-2020, 08:46 PM | #81 | |
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6-7% return will be skewed towards equites - closer to max growth allocation. Capital preservation is typically 2-3% return. |
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01-26-2020, 11:55 PM | #82 | |
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https://www.fool.com/the-ascent/bank...ings-accounts/
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01-27-2020, 12:24 AM | #83 | |
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02-12-2020, 08:56 PM | #84 |
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You're almost 30 days in. How are you feeling about your plan?
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02-14-2020, 09:00 AM | #85 |
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I've been wanting to take a chunk from my savings & put it in the market, but probably not an individual stock, unless I can get a nice hit like Amazon or Tesla again, but unsure where to put it that's not a ton of risk. Would prefer to put it in something where my IRA $ is not...you know, diversify
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02-17-2020, 06:49 AM | #86 |
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I don't think I have missed any opportunities sitting on the side lines at this moment. Still cash for now.
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02-21-2020, 11:51 PM | #88 | |
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