BMW
X1 / X2
BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BIMMERPOST Universal Forums Off-Topic Discussions Board Going cash today

Post Reply
 
Thread Tools Search this Thread
      01-23-2020, 11:39 AM   #67
zx10guy
Colonel
3033
Rep
2,711
Posts

Drives: 2013 135i
Join Date: Feb 2014
Location: DC

iTrader: (0)

Quote:
Originally Posted by bimmerfrk View Post
Its not a home equity line. Thats how much my house is valued vs waht i own on the note. So if i sell i stand to make around 200k profit based on median comps. note is 750k house value is 1mil.
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.
__________________
Quote:
Originally Posted by Lups View Post
We might not be in an agreement on Trump, but I'll be the first penis chaser here to say I'll rather take it up in the ass than to argue with you on this.
Appreciate 0
      01-23-2020, 11:49 AM   #68
bimmerfrk
Lieutenant
bimmerfrk's Avatar
United_States
451
Rep
511
Posts

Drives: Ferrari Red F83
Join Date: May 2012
Location: Tristate Area

iTrader: (0)

Quote:
Originally Posted by zx10guy View Post
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.
Then you should look at your 401k is the same light. Its worthless until its cash in your hand. I had a place 2 blocks from the ocean in long island that i bought right after sandy for 277k. Everyone including my parents said I'm stupid and will never make any money. Fast forward 4.5 years to last February i sold the place in one weekend for 425.

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.
__________________
Appreciate 0
      01-23-2020, 12:13 PM   #69
zx10guy
Colonel
3033
Rep
2,711
Posts

Drives: 2013 135i
Join Date: Feb 2014
Location: DC

iTrader: (0)

Quote:
Originally Posted by bimmerfrk View Post
Then you should look at your 401k is the same light. Its worthless until its cash in your hand. I had a place 2 blocks from the ocean in long island that i bought right after sandy for 277k. Everyone including my parents said I'm stupid and will never make any money. Fast forward 4.5 years to last February i sold the place in one weekend for 425.

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.
The difference is I can issue a sell order and the value of the funds/stocks are locked in on the day I sell. Not so when you put your house on the market. You may price it where you think it is valued and you may be right on. But then you have situations where a prospective buyer will haggle with you on price or you might have overpriced where no one is biting. Even when you come to an agreement on the price, you won't be able to get that cash out until settlement.
__________________
Quote:
Originally Posted by Lups View Post
We might not be in an agreement on Trump, but I'll be the first penis chaser here to say I'll rather take it up in the ass than to argue with you on this.
Appreciate 0
      01-23-2020, 12:24 PM   #70
bimmerfrk
Lieutenant
bimmerfrk's Avatar
United_States
451
Rep
511
Posts

Drives: Ferrari Red F83
Join Date: May 2012
Location: Tristate Area

iTrader: (0)

Quote:
Originally Posted by zx10guy View Post
Quote:
Originally Posted by bimmerfrk View Post
Then you should look at your 401k is the same light. Its worthless until its cash in your hand. I had a place 2 blocks from the ocean in long island that i bought right after sandy for 277k. Everyone including my parents said I'm stupid and will never make any money. Fast forward 4.5 years to last February i sold the place in one weekend for 425.

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.
The difference is I can issue a sell order and the value of the funds/stocks are locked in on the day I sell. Not so when you put your house on the market. You may price it where you think it is valued and you may be right on. But then you have situations where a prospective buyer will haggle with you on price or you might have overpriced where no one is biting. Even when you come to an agreement on the price, you won't be able to get that cash out until settlement.
True not arguing here.
__________________
Appreciate 0
      01-23-2020, 12:35 PM   #71
zx10guy
Colonel
3033
Rep
2,711
Posts

Drives: 2013 135i
Join Date: Feb 2014
Location: DC

iTrader: (0)

Quote:
Originally Posted by bimmerfrk View Post
True not arguing here.
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.
__________________
Quote:
Originally Posted by Lups View Post
We might not be in an agreement on Trump, but I'll be the first penis chaser here to say I'll rather take it up in the ass than to argue with you on this.
Appreciate 1
bimmerfrk450.50

      01-23-2020, 12:44 PM   #72
corn18
Captain
corn18's Avatar
1356
Rep
611
Posts

Drives: 2020 X3 M40i
Join Date: Jul 2019
Location: SW OH

iTrader: (0)

Garage List
2014 Jeep Wrangler 2D  [0.00]
2015 Chevy 2500HD  [0.00]
2015 Z4  [0.00]
2020 X3 M40i  [0.00]
Quote:
Originally Posted by bimmerfrk View Post
Whats the back door? Not aware of this. I'm not eligible for Roth IRA we make way to much money according to uncle Sam.
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.
Appreciate 1
Rmtt8036.50

      01-23-2020, 12:51 PM   #73
Rmtt
Colonel
Rmtt's Avatar
United_States
8037
Rep
2,198
Posts

Drives: 2011 BMW 128i, 2008 LS3 C6
Join Date: Jan 2019
Location: South Carolina

iTrader: (3)

Quote:
Originally Posted by bimmerfrk View Post
Whats the back door? Not aware of this. I'm not eligible for Roth IRA we make way to much money according to uncle Sam.
Copy and pasted below, but the general gist of it. There is a little bit of work involved and some tax forms (8606) that have to be done later. If you "Google" it, you will see plenty of examples. Most of my stuff is through Vanguard outside of my work 401K.


A backdoor Roth IRA is a way for people with high incomes to sidestep the Rothís 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 youíre done. Even though you didnít qualify to contribute to a Roth, you get to go in the back door anyway, no matter what your income.
__________________
Everybody has a gameplan....until they get punched in the mouth.
Appreciate 0
      01-23-2020, 01:04 PM   #74
zx10guy
Colonel
3033
Rep
2,711
Posts

Drives: 2013 135i
Join Date: Feb 2014
Location: DC

iTrader: (0)

Quote:
Originally Posted by Rmtt View Post
Copy and pasted below, but the general gist of it. There is a little bit of work involved and some tax forms (8606) that have to be done later. If you "Google" it, you will see plenty of examples. Most of my stuff is through Vanguard outside of my work 401K.


A backdoor Roth IRA is a way for people with high incomes to sidestep the Rothís 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 youíre done. Even though you didnít qualify to contribute to a Roth, you get to go in the back door anyway, no matter what your income.
I looked at doing this but decided it wasn't worth it for me based on my limited expertise in this field. Right now, I have the privilege of being in a pretty high tax bracket. I'm leveraging the tax deferred options to the max that are available to me to lower my taxable income now. Based on my living habits, I'm banking on being able to live on the draw where my taxable income during retirement would be below the threshold where I get nailed with high taxes then. But it's all speculation on my part. I may be right and I may be dead wrong in my assumptions.
__________________
Quote:
Originally Posted by Lups View Post
We might not be in an agreement on Trump, but I'll be the first penis chaser here to say I'll rather take it up in the ass than to argue with you on this.
Appreciate 0
      01-23-2020, 01:24 PM   #75
Patrick303
Lieutenant
Patrick303's Avatar
United_States
310
Rep
458
Posts

Drives: F36 440i GC
Join Date: Jan 2011
Location: Denver, CO

iTrader: (2)

Garage List
Send a message via MSN to Patrick303
Quote:
Originally Posted by zx10guy View Post
I looked at doing this but decided it wasn't worth it for me based on my limited expertise in this field. Right now, I have the privilege of being in a pretty high tax bracket. I'm leveraging the tax deferred options to the max that are available to me to lower my taxable income now. Based on my living habits, I'm banking on being able to live on the draw where my taxable income during retirement would be below the threshold where I get nailed with high taxes then. But it's all speculation on my part. I may be right and I may be dead wrong in my assumptions.
There are other benefits of having a ROTH IRA other than just tax free withdrawals in retirement. You can access your invested funds without penalty in an emergency, no required minimum distributions, if your kids inherit the balance of your ROTH it is tax free, and it can reduce your Medicare Part B premiums.
__________________
2017 440i xDrive Gran Coupe M Sport
2017 Ducati Monster 821
Appreciate 1
      01-23-2020, 01:24 PM   #76
Rmtt
Colonel
Rmtt's Avatar
United_States
8037
Rep
2,198
Posts

Drives: 2011 BMW 128i, 2008 LS3 C6
Join Date: Jan 2019
Location: South Carolina

iTrader: (3)

Quote:
Originally Posted by zx10guy View Post
I looked at doing this but decided it wasn't worth it for me based on my limited expertise in this field. Right now, I have the privilege of being in a pretty high tax bracket. I'm leveraging the tax deferred options to the max that are available to me to lower my taxable income now. Based on my living habits, I'm banking on being able to live on the draw where my taxable income during retirement would be below the threshold where I get nailed with high taxes then. But it's all speculation on my part. I may be right and I may be dead wrong in my assumptions.
Nothing wrong with that. Your tax rate in retirement will likely be lower than while working, but who knows what will happen when that time finally comes.

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.
__________________
Everybody has a gameplan....until they get punched in the mouth.

Last edited by Rmtt; 01-23-2020 at 01:57 PM..
Appreciate 1
bimmerfrk450.50

      01-23-2020, 01:55 PM   #77
mikeyymonster
Captain
mikeyymonster's Avatar
United_States
264
Rep
824
Posts

Drives: 2021 M2C
Join Date: Apr 2014
Location: California

iTrader: (4)

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.
__________________
2021 M2C DCT
2014 M235i 6MT
Instagram: @mikeyymonster
Appreciate 0
      01-23-2020, 02:01 PM   #78
iqraceworks
Colonel
iqraceworks's Avatar
619
Rep
2,008
Posts

Drives: 2007 335i
Join Date: Aug 2019
Location: Missouri

iTrader: (0)

Quote:
Originally Posted by bimmerfrk View Post
Ok so after today i put all my wife's and my 401k proceeds into a money market fund. This trajectory cant continue and a lot of economists feel that the economy is reaching if not already at full employment. I don't care if i miss another 2 - 5 percent in gains. I'm up 39 percent over the last 2 years and im sure there is a pull back coming. I'm protecting my profits. I will continue to contribute to my 401k but there is just no value at the moment. Its crazy how many times companies are trading their earnings


Thoughts?
I did the exact same thing......I wasn't going to just stay in the game until the bubble pops. I put all my 401k in a money market fund.
__________________
2007 335i, BMS DCI, BMS Chargepipe w/Tial BOV, ARM Catless Downpipes, Bilstein B12 Prokit Suspension, Whiteline subframe bushings, Front/Rear M3 control arms, G-Plus FMIC, Stage 2 LPFP, MHD Stage 2+ tune, xHP stage 3 transmission flash.
Appreciate 0
      01-23-2020, 05:10 PM   #79
grocerylist
Second Lieutenant
156
Rep
202
Posts

Drives: BMW M235i
Join Date: Jun 2019
Location: Seattle, WA

iTrader: (0)

Garage List
2016 BMW M235i  [0.00]
https://www.bogleheads.org/wiki/Tayl..._timing_quotes
Appreciate 0
      01-23-2020, 09:08 PM   #80
Terry989
Second Lieutenant
352
Rep
240
Posts

Drives: 2019 X1 xDrive M Sport
Join Date: Feb 2012
Location: San Jose, Ca

iTrader: (0)

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 10:15 PM..
Appreciate 0
      01-23-2020, 09:46 PM   #81
qba335i
First Lieutenant
345
Rep
320
Posts

Drives: 335i
Join Date: Feb 2011
Location: Chicago

iTrader: (0)

Quote:
Originally Posted by Terry989 View Post
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 month 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%?
With 250/500k (per sub-class/manager) you will gain some access to separately managed accounts (sma). 500k-2M will open some more options (tax managed equities, active bond portfolios, more SMA managers). With 5M portfolio you will start dipping into Private Equity and Hedge Funds...

6-7% return will be skewed towards equites - closer to max growth allocation. Capital preservation is typically 2-3% return.
Appreciate 0
      01-27-2020, 12:55 AM   #82
MisterF80M3
Captain
MisterF80M3's Avatar
581
Rep
825
Posts

Drives: 2018 M3
Join Date: Jul 2018
Location: CA

iTrader: (4)

Quote:
Originally Posted by Terry989 View Post
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%?
High yield savings is around 2%.

https://www.fool.com/the-ascent/bank...ings-accounts/
__________________
2018 BMW F80 ///M3
Appreciate 0
      01-27-2020, 01:24 AM   #83
AlpineWhite_SJ
Banned
United_States
1566
Rep
1,013
Posts

Drives: 2018 F80 M3 ZCP, 2020 F97 X3MC
Join Date: Sep 2017
Location: Bay Area, CA

iTrader: (0)

Quote:
Originally Posted by MisterF80M3 View Post
Which is taxable income, so youíre making less than that. Significantly less depending on tax bracket. Tax exempt money market is lower return but when you factor in tax savings, could end up better.
Appreciate 0
      02-12-2020, 09:56 PM   #84
MaC-N54-E82
N54 Lover
MaC-N54-E82's Avatar
United_States
49
Rep
212
Posts

Drives: 2008 135i
Join Date: Apr 2011
Location: OR

iTrader: (0)

OP

You're almost 30 days in. How are you feeling about your plan?
__________________
MAC
2008 N54 E82|AW over CR
Sport|Premium|Cold Weather|Comfort Access
BMW PE|COBB Tuned|M3 FSB|Michelin PS4S|
B12 Pro-Kit|M3 Rear Subframe Bushings|Black Line Taillights
Appreciate 0
      02-14-2020, 10:00 AM   #85
FuriouslyFast
Banned
United_States
821
Rep
378
Posts

Drives: Miss Daisy
Join Date: Jul 2019
Location: PA

iTrader: (0)

Garage List
Quote:
Originally Posted by AlpineWhite_SJ View Post
Which is taxable income, so youíre making less than that. Significantly less depending on tax bracket. Tax exempt money market is lower return but when you factor in tax savings, could end up better.
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
Appreciate 0
      02-17-2020, 07:49 AM   #86
bimmerfrk
Lieutenant
bimmerfrk's Avatar
United_States
451
Rep
511
Posts

Drives: Ferrari Red F83
Join Date: May 2012
Location: Tristate Area

iTrader: (0)

Quote:
Originally Posted by MaC-N54-E82 View Post
OP

You're almost 30 days in. How are you feeling about your plan?
I don't think I have missed any opportunities sitting on the side lines at this moment. Still cash for now.
__________________
Appreciate 0
      02-21-2020, 11:19 PM   #87
Grip Addict
///M Connoisseur
Grip Addict's Avatar
866
Rep
1,336
Posts

Drives: ///M3
Join Date: Jun 2018
Location: PA

iTrader: (7)

I have stocks, company stock plans, I have a 401k but I hate them all.

I learned in finance class and just from life that $1 today is better than MAYBE $2 tomorrow.
__________________
Check out my >>> M3 <<<
Check out my >>> Track Videos <<<
Appreciate 0
      02-22-2020, 12:51 AM   #88
roastbeef
Lieutenant General
roastbeef's Avatar
United_States
7591
Rep
10,901
Posts

Drives: E92 M3
Join Date: Nov 2010
Location: Orange County, CA

iTrader: (2)

Quote:
Originally Posted by Rmtt View Post
Copy and pasted below, but the general gist of it. There is a little bit of work involved and some tax forms (8606) that have to be done later. If you "Google" it, you will see plenty of examples. Most of my stuff is through Vanguard outside of my work 401K.


A backdoor Roth IRA is a way for people with high incomes to sidestep the Rothís 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 youíre done. Even though you didnít qualify to contribute to a Roth, you get to go in the back door anyway, no matter what your income.
there is zero taxes to be paid in a backdoor roth. my wife and i each max out a roth each year. i write a check to my guy and he just does it. not complicated at all on our end.
__________________
Instagram; @roastbeefmike
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 09:29 PM.




xbimmers
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2020, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST