Any thoughts on South Carlsbad

[an]

I guess you’re considering living w/out a saving would be comfortable but when I have about $10k/month in expense, I won’t be comfortable until I have at least $60k in savings for the rainy day fund. $120k would be preferred. By your calculation, at max, you can only save $1800/month. That hasn’t count in car maintenance, insurance, presents, vacations, etc. yet. I guess everyone have a different definition of comfortable.

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arrife22-

That assumes you can pay off your house – I can’t.

Besides, not making prudent use of leverage just leaves opportunities on the table.

If I have to choose between $2000 in interest or $2000 in rent – all else being equal I will pay interest because of the tax deduction.

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arrife22-

That assumes you can pay off your house – I can’t.

Besides, not making prudent use of leverage just leaves opportunities on the table.

If I have to choose between $2000 in interest or $2000 in rent – all else being equal I will pay interest because of the tax deduction.

[waiting for bottom]

arrife22-

That assumes you can pay off your house – I can’t.

Besides, not making prudent use of leverage just leaves opportunities on the table.

If I have to choose between $2000 in interest or $2000 in rent – all else being equal I will pay interest because of the tax deduction.

[waiting for bottom]

arrife22-

That assumes you can pay off your house – I can’t.

Besides, not making prudent use of leverage just leaves opportunities on the table.

If I have to choose between $2000 in interest or $2000 in rent – all else being equal I will pay interest because of the tax deduction.

[waiting for bottom]

arrife22-

That assumes you can pay off your house – I can’t.

Besides, not making prudent use of leverage just leaves opportunities on the table.

If I have to choose between $2000 in interest or $2000 in rent – all else being equal I will pay interest because of the tax deduction.

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I did consider the AMT in my scenario above. AMT does not affect the interest deduction, only property taxes.

My biggest fear with the AMT is the ‘patch’. The baseline AMT deduction is around $45K. Congress has patched it 3 years running to $69K. No patch for 2009 and my tax liability would go up over $6K.

While I agree you should not spend money (interest) just to get the tax deduction, it is mis-guided to call it a ‘farce’. It’s worth $800 a month in my $900K house scenario – that’s money I would be spending anyway.

[waiting for bottom]

I did consider the AMT in my scenario above. AMT does not affect the interest deduction, only property taxes.

My biggest fear with the AMT is the ‘patch’. The baseline AMT deduction is around $45K. Congress has patched it 3 years running to $69K. No patch for 2009 and my tax liability would go up over $6K.

While I agree you should not spend money (interest) just to get the tax deduction, it is mis-guided to call it a ‘farce’. It’s worth $800 a month in my $900K house scenario – that’s money I would be spending anyway.

[waiting for bottom]

I did consider the AMT in my scenario above. AMT does not affect the interest deduction, only property taxes.

My biggest fear with the AMT is the ‘patch’. The baseline AMT deduction is around $45K. Congress has patched it 3 years running to $69K. No patch for 2009 and my tax liability would go up over $6K.

While I agree you should not spend money (interest) just to get the tax deduction, it is mis-guided to call it a ‘farce’. It’s worth $800 a month in my $900K house scenario – that’s money I would be spending anyway.

[waiting for bottom]

I did consider the AMT in my scenario above. AMT does not affect the interest deduction, only property taxes.

My biggest fear with the AMT is the ‘patch’. The baseline AMT deduction is around $45K. Congress has patched it 3 years running to $69K. No patch for 2009 and my tax liability would go up over $6K.

While I agree you should not spend money (interest) just to get the tax deduction, it is mis-guided to call it a ‘farce’. It’s worth $800 a month in my $900K house scenario – that’s money I would be spending anyway.

[waiting for bottom]

I did consider the AMT in my scenario above. AMT does not affect the interest deduction, only property taxes.

My biggest fear with the AMT is the ‘patch’. The baseline AMT deduction is around $45K. Congress has patched it 3 years running to $69K. No patch for 2009 and my tax liability would go up over $6K.

While I agree you should not spend money (interest) just to get the tax deduction, it is mis-guided to call it a ‘farce’. It’s worth $800 a month in my $900K house scenario – that’s money I would be spending anyway.

[waiting for bottom]

AN –

I would save $500 of the $1800. In addition to the 401k & IRA and including the 401k match, that is over $40K per year of savings. Geez, a brothers gotta live a little too.

BTW, I do include car insurance in my monthly budget. Vacations and gifts are paid out of my 20% annual bonus. For example, Xmas 2009 is already paid for and the cash will be in my account in February. No bonus= no vacation or gifts (unless funded through the monthly budget).

Also, my down payment does not deplete my savings. I still have 6 months salary plus my employment contract provides for 6 months severance.

It’s funny – my wife thinks I am the most financially conservative person in the world. We drive old Nissans, our underwater neighbors all drive BMW’s or the like. I’ll let her know you think we should save more…

[waiting for bottom]

AN –

I would save $500 of the $1800. In addition to the 401k & IRA and including the 401k match, that is over $40K per year of savings. Geez, a brothers gotta live a little too.

BTW, I do include car insurance in my monthly budget. Vacations and gifts are paid out of my 20% annual bonus. For example, Xmas 2009 is already paid for and the cash will be in my account in February. No bonus= no vacation or gifts (unless funded through the monthly budget).

Also, my down payment does not deplete my savings. I still have 6 months salary plus my employment contract provides for 6 months severance.

It’s funny – my wife thinks I am the most financially conservative person in the world. We drive old Nissans, our underwater neighbors all drive BMW’s or the like. I’ll let her know you think we should save more…

[waiting for bottom]

AN –

I would save $500 of the $1800. In addition to the 401k & IRA and including the 401k match, that is over $40K per year of savings. Geez, a brothers gotta live a little too.

BTW, I do include car insurance in my monthly budget. Vacations and gifts are paid out of my 20% annual bonus. For example, Xmas 2009 is already paid for and the cash will be in my account in February. No bonus= no vacation or gifts (unless funded through the monthly budget).

Also, my down payment does not deplete my savings. I still have 6 months salary plus my employment contract provides for 6 months severance.

It’s funny – my wife thinks I am the most financially conservative person in the world. We drive old Nissans, our underwater neighbors all drive BMW’s or the like. I’ll let her know you think we should save more…

[waiting for bottom]

AN –

I would save $500 of the $1800. In addition to the 401k & IRA and including the 401k match, that is over $40K per year of savings. Geez, a brothers gotta live a little too.

BTW, I do include car insurance in my monthly budget. Vacations and gifts are paid out of my 20% annual bonus. For example, Xmas 2009 is already paid for and the cash will be in my account in February. No bonus= no vacation or gifts (unless funded through the monthly budget).

Also, my down payment does not deplete my savings. I still have 6 months salary plus my employment contract provides for 6 months severance.

It’s funny – my wife thinks I am the most financially conservative person in the world. We drive old Nissans, our underwater neighbors all drive BMW’s or the like. I’ll let her know you think we should save more…

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