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avidsaver
ParticipantAs Surveyor mentioned, look to your employer(s) to take advantage of possible tax-savings vehicles. The 401(k) is the best idea as you can reduce your taxable income quite significantly (today) without having to change your withholdings to zero. Also, if they offer a flexible spending account for health care, you can contribute to that. Just make sure that you don’t contribute more than you’ll actually spend on health care, because it’s “use it or lose it.”
Also, as someone mentioned (I don’t remember who it was), make sure that when you do the comparison between what you would owe without the other spouse’s salary, you’re switching the filing status from married filing joint to married filing separately (which in my opinion is the worst filing status) so that you’re comparing apples to apples.
If your company doesn’t have a 401(k), you can consider contributing to a Traditional IRA to decrease your tax liability. The limit that you can contribute is lower than what you can in a 401(k) [401k is $15,500, IRA may be $4k or $5k??], but it can help too.
I hope that helps…
ParticipantI don’t understand this part of the article…
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“For example, an article in the New York Times last week noted that “1 in 5 sub-prime loans will end in foreclosure”…“About 2.2 million borrowers who took out sub-prime loans from 1998 to 2006 are likely to lose their homes”.
In real terms, that translates into roughly 10 million people!”
************************************I would calculate that as 440,000 people (20% of 2.2 million). Even if it were 2.2 million per year for the 1998 to 2006 period, that would translate to approximately 4 million people (20% of 19.8 million [2.2M X 9 years]).
Please help!
ParticipantI was thinking Costa Rica. It was in the 80s in L.A. too this week, but when it was cold a few weeks ago, I couldn’t help but think that I wanted year-round, constant, warm-weather. Are we Californians spoiled or what?
ParticipantWhatever. Even in an inflated market, she should have been able to afford the 50% of the inflated value (which in the worst case could have been 100% of the then-current value) and if she couldn’t afford it, she should have walked and paid rent somewhere. I understand the idea of wanting to hold onto the house, but gimme a break. Talk about trying to keep up with the Joneses…
yeah, I know I sound bitter. My story? Divorced and couldn’t keep the house (in 2005). Had to sell. Made a modest gain. Can’t afford anything else. But in retrospect, divorce is the best thing that ever happened me. I am far more conscious of my spending and just waiting for the home-buying “entry point” to become obvious. It was obvious the first time I bought (in 1996 – not the “marital residence”) and I think it will be the next time…
ParticipantWhatever. Even in an inflated market, she should have been able to afford the 50% of the inflated value (which in the worst case could have been 100% of the then-current value) and if she couldn’t afford it, she should have walked and paid rent somewhere. I understand the idea of wanting to hold onto the house, but gimme a break. Talk about trying to keep up with the Joneses…
yeah, I know I sound bitter. My story? Divorced and couldn’t keep the house (in 2005). Had to sell. Made a modest gain. Can’t afford anything else. But in retrospect, divorce is the best thing that ever happened me. I am far more conscious of my spending and just waiting for the “entry point” to become obvious. It was obvious the first time I bought (in 1996 – not the “marital residence”) and I think it will be the next time…
ParticipantHow did she go from owning the home “free and clear” to losing it? She must have made NO lifestyle changes after the divorce. Pity.
November 24, 2006 at 3:00 PM in reply to: Any housing downturn will be limited to San Diego & Sacramento? #40600ParticipantFormerSanDiegan – I didn’t know you were here in the L.A. area. I have to admit that it feels like a long wait — even though I wouldn’t be able to afford these prices anyway.
If we’re about a year or so behind SD, then maybe we’ll see the effects of the ARM resets in more like 2009???
ParticipantWell, my deal isn’t as good as many of yours, but I rent a 2bed/2bath condo in L.A. County for $1,550/month. 1.5 years ago, one sold in the complex for $500k, and now similar ones are listed in the area around $520K (I don’t know what they’re getting though). So, rent vs. buy is way in my favor.
ParticipantSpeedingpullet – you did an excellent job of covering L.A. What about the areas near Pasadena though? I have friends who live in a nice area in Altadena, and the commute wouldn’t be too ridiculous to Burbank. I’m not too familiar with Pasadena though, but the people that grew up there tend to return there. There are also things for kids.
CARDIFF – you probably wouldn’t consider the South Bay as the commute to NBC would be heinous. As far as Pasadena goes if you want to expand your zip realty search, other names would include San Marino, Altadena…”
The ex-recruiter in me will say definitely apply for the job and explore your housing options simultaneously. Remember, you might not even *get* the job, but you may learn more about the area and make some contacts… You brought up an extremely interesting point. I have never thought about where there are any upper middle class Latino areas, and none readily come to mind. I can think of affluent Black areas (I’m Black), and areas that are specifically considered an area that caters to certain races (like Chinatown, Glendale – which is also near Burbank). You could also look up Los Feliz maybe???
Anyway, I’m all over the map, but I hope I added some other food for thought…
ParticipantInterestingly, I’ve never had any desire to live in Marina Del Rey either. It seems that there used to be much more to do there in the ’80s (at least in my limited POV of those days), but not really now. But I don’t really know anyone who has lived or currently lives there.
I’ve actually been more of an “urban” type than a South Bay dweller with most of my adult life having been spent in L.A. proper (9 years) and West Hollywood (6 years). But parenthood changes perspective, and I’m all about a good school district now (if I can afford it).
ParticipantOn another note… I do remember that the first time I read “The Millionaire Next Door,” my coworker and I said, “that doesn’t sound like fun!” If I had that much $$ I would want to buy more stuff (read: flaunt it more than they do)… Ok, please don’t torture me for that confession — it was a LONG time ago. But I’m still not the millionaire next door.
ParticipantI did hear one of the Johnson & Johnson heirs (he made a documentary — I think — about the heirs to mega-wealth in the U.S.) mention that it was taboo in their family to ever mention money. My impression was that those who had THAT much money — old money — were less inclined to flaunt it. Tiger Woods wouldn’t be a good example in this category.
Having said that, it seems like the conversation may have offended someone (La Jolla Renter), and I’m not sure why…
I really don’t know what the truly rich do though because we don’t really hang out LOL!
ParticipantPerryChase – both Marina Del Rey and Playa Del Rey can be a little pricey, but both are nice. In Playa Del Rey near Loyola Marymount University and near the bluffs that speedingpullet referred to, there are very nice homes. Westchester borders Playa Del Rey (to the East), and has some nice pockets and less nice pockets. The noise from the planes (now this is from someone who grew up here) is bad when you’re directly in the flight path, but not so bad when you’re removed.
As an example, I live in El Segundo, about five blocks south of LAX, and the noise is not NEARLY as bad as when I lived in Inglewood (about 6 miles east of LAX but directly in the flight path). My sister lives about three blocks south of me, and I rarely notice the noise there. But you weren’t asking about El Segundo (which by the way is where the plant is). My brother lives in Westchester, and they are pretty close to LAX, but I don’t think that they have any ridiculous plane noise either.
You wouldn’t have to deal with airplane noise at all in Marina Del Rey, but as far as I’ve seen, the SFRs aren’t that great. I would probably consider Santa Monica (where I work) any day before Marina Del Rey, but I’d consider Playa Del Rey before both MDR and SM.
I’d agree that the traffic is nothing to be happy about. I am one of the people driving through the wetlands a couple of times a week to get to work. The thing about Playa Del Rey is that there isn’t the most convenient way to get in and out.
Hope that made sense with all the ramblings.
Oh yeah — the traffic of the airport does vary depending on the day and time. The rule about taking off and landing over the ocean at night is not always followed though.
ParticipantDoesn’t Warren Buffett just drive an ordinary Ford (model unknown)?
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