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February 24, 2014 at 5:50 PM in reply to: Moving money to another country for better interest rates #771216
joec
Participant[quote=flu]
Unless you plan to be moving around again… I still think in your particular situation, looking into buying a 1/1 for you to live in is probably the best return on your money.1. You were complaining about paying an arm and a leg for rent a few weeks ago.
2. Even if 1/1’s are inflated, have you bothered to run the numbers to see what sort of payments you would be making with a standard 20% down, and current rate of around 4.3% for a 30 year…
If you’re able to find a 1/1 for $250k….
20% down on a 30 year fixed @ 4.3% is $990/month
HOA say is $200/month
Property tax @ 1.25% = $260/month.Your monthly cost is $1420/month, before your Schedule A deductions on mortgage interest… Didn’t you say you were paying about $1300/month+ month on rent.., plus bending over by paying an additional $300-400/month to store your motorcycle and other personal items???
But instead, you’re thinking of moving your money to india so your can earn maybe 6-7% interest overseas after the exchange rates fees, etc…. And then when/if you do earn that questionable 6-7%, you’re going to probably pay 20-25% in federal+state income taxes on that, given that I believe you’re an engineer probably making around $100k-$150k, before any additional comps like bonuses, stock vesting etc (more if you do make that)…assuming you are on W2 and have very little in terms of itemized deductions otherwise….(If you’re a contractor with a 1099, perhaps you have more variables to play with)….[/quote]
This has been my point as well with a few of my posts. For some folks, the home tax deductions you can get are huge. Right off the bat, assuming your rent is what flu listed, you’d be below your rental cost assuming you had any avg income…
Seems so much easier to just do some simply things to get better returns that are a lot safer.
ParticipantSad to say, but this is a perfect example of what I meant in another thread that as people get older, it seems like the financial issue is going to keep certain people from getting married. It’s a good concern since no once wants to be played with a gold digger, but having seen various older men (40+) who has never been married, you sorta see the same pattern that the “fear” of losing out financially is almost preventing them from meeting someone.
That said, maybe it’s just no one you see/know is “worth” taking the leap/risk to even see/date (not like you need to get married right away or at all), but once you’re over a certain age (35+ I’d guess), the pool of people starts to shrink so for people who are serious to meet someone to share experiences/life with, you need to do some soul searching and see what you really want out of life.
The population of available non-married men and women are much lower I’d guess at 40+ and a lot of people may have “baggage” from a previous marriage. People who have divorced once are also about 75% or a really high number to get divorced again so the stats are pretty lousy.
Try the online thing, but my guess nowadays is that marriage just isn’t as needed anymore (people live together already vs. 50 years ago) and more people will just stay single vs. before and I believe it’s the largest/or fastest growing demographic group.
ParticipantThanks for all the explanations. I was familiar with the depreciation recapture and all that, but from these scenarios, I don’t think it’ll be that bad since a lot of the tax situations could be controlled. If you are ultra wealthy, you can pass it on tax free, for less so, can’t you also just move into said property for 2 years and sell for the 500k tax free benefit as well?
I know a lot of other friends’ parents doing that over the past few years.
With tax code constantly changing, I think it’s just wise to keep deferring till you are in a situation where you can take the tax hit, and not be hurt too bad.
Sorta like now, if you are off work or between jobs, start converting your regular IRA to the Roth if it won’t cause much tax.
Get a mortgage just before you retire so you have a large tax deduction for any large IRA withdrawals required…
I suppose easier said than done for some folks since they never stop working. 🙂
Participant[quote=flyer]I agree that debt can kill dreams. Had we not been in a financial position to afford our dreams, we would not have pursued them. Managed debt can bring great rewards (within one’s individual realm of reality) but unmanaged debt can destroy a person and/or a family.
It seems that many live in denial about what they can actually AFFORD for whatever reasons, and, as CAR mentioned, they are way over their heads (living beyond their means) in debt with housing, cars, education, etc., etc. and have few, if any, backup resources. IMO, that’s a real recipe for disaster, if something unexpected should happen.
It’s no wonder the stats reveal that most people in this country–in all age groups–will never be able to afford to retire–even if their health or other issues force them to.[/quote]
I’m not sure the age of some of the posters here, but for some/many people, they didn’t have many options in terms of some of the debt. Especially Education. I honestly think the boomers had a much easier time with the cost of living back then than the folks trying to get ahead now (and I mean the folks in the 21-28 bracket).
If you’re from a lower economic class now, the only way out is higher education. The problem is that you probably live in an area with very poor schools, no college in the family, etc…taking on college debt is probably the only way to break out, but even then, the odds aren’t good you’ll get anywhere close to making it. If you see a lot of the non-partisan documentaries on education, it’s pretty bleak IMO for people graduating now even…or trying to get ahead with what’s available. One reason schools are the main driver in a lot of housing areas.
At the end of day, I think we have a global oversupply of labor now and basic college isn’t going to help most people find decent work…but you’re screwed if you go to college and screwed if you don’t since it’s so much more expensive now than 30-40 years ago.
30-40 years ago, it was FAR EASIER than now to reach success since basic necessities were a lot more affordable…This includes a house, education, health care, gas, you name it…
Boomers should be doing well if they saved and didn’t ATM their house, but we know most don’t think that long term and will be tax payer supported…
We’re going to end up like Europe IMO, do nothing and you’ll have violence from the hopeless that I’m sure no one really wants neither.
No easy solutions to the overall lack of decent work and oversupply of labor.
Anyone think WW3 is coming or need some zombies/plague to wipe out 40% of the labor? (wasn’t WW2 the only reason we even got out of the great depression to begin with?)…and with Europe manufacturing bombed to hell, it was easy for America to succeed.
Note that I’m not the 21 year old bitter guy pushing past 40+ now and had a full parent paid college education in engineering so just voicing that when you study and see the “other” folks, it’s not just about wasting money sometimes.
Another point is that the majority of folks aren’t the typical piggy here to begin with and will be a problem I think.
(note the piggy salary/income poll from before)
ParticipantCorrect me if I am wrong, so if say my earned income (w-2) in my job is say 155k, however I have a paid and clear rental home I inherited from my parents that is paid off that generates say 30k in income a year (passive).
I also have another rental I own that I do depreciate against and currently, to simplify, say I’m running even to cash flowing. Assuming I depreciate 30k a year for that one, would I be able to pretty much eliminate my passive rental income from the other property?
I haven’t looked at this aspect of the tax code at all since I don’t have any rentals, but my guess is you could since they are the same class (both passive).
It just seems to me that no matter the tax laws, wealthy people will find ways around it to make it more beneficial for them which is now leading me to sorta favor having no corporate tax at all in America to allow re-patrioting of profits from foreign countries to at least put the money back in the US. US companies won’t pay taxes anyways and this actually helps the small business (me) that can’t afford to do these kinds of things.
Just pass the income straight through…
For the guy with the 155k income, maybe it makes sense to do a multi purchase (assuming you have the savings) to generate income in 1 property and another to write off depreciation from both. Not too certain, but maybe some of the slum lords here 🙂 can share what they do.
Participant[quote=EconProf]Here is a shameless plug for owning real estate as a means of planning for retirement. Whether a SFR or two, condos, or, for ease of management, commercial properties, the multitude of advantages are just about unbeatable.
We all know about the tax advantages: depreciation allowances permit you to lower your tax bracket from your regular income. Inflation allows you to use the lower capital gains tax rate when you decide to sell, which you can conveniently time to happen in your retirement years.
Your equity buildup over the years of ownership can be profound–both from paying down the loan and the (presumed) appreciation in property values. Together they may enable you to sell a free and clear property upon retiring or during retirement.
Yes, there are hassles to being a landlord. In the early years there is little cash flow and it is sometimes negative. There is a learning curve to both maintenance headaches and minimizing tenant hassles. But as you learn more the cash flow gets better. Most of all, beneath the surface, forced saving is occurring on your personal balance sheet. You learn to be frugal because your job income and property income demand it. Meanwhile you are quietly getting rich.[/quote]+1 agreed…
I think the income equation for a rental isn’t that good, but if you factor in the depreciation, that tends to make it better since any higher wage taxable income is at your marginal (highest) rate and anything to lower that helps a ton.
Not for everyone, but I think the tax benefits could be pretty huge…All expenses are also business expenses. I know a lot of family friends moving into all their rentals for 2 years and selling them for the tax free profit.
In our tax code, there’s very little “tax free” options.
ParticipantYeah, W2 earned income for very high income people is taxed massively so high income jobs get killed with taxes upwards of 60+% (near 40% federal, 13%+ state (CA special), 6.2% social security/medicaid)…
When you start making more money, you’ll see very little of it when you get raises/etc that it’s almost discouraging.
Now, add in another 10% for sales tax and pretty much 70% of your earned income is gone when you buy anything.
If you study the tax code, it’s totally against the average income worker.
My suggestion is to start a business. Not only can profits (unlike income) be taxed AFTER all your business expenses (valid of course), but you can also do things like setup defined benefit plans like those fancy pensions, put a ton more in retirement accounts, etc…
Of course, starting and running a company is very hard generally and not for everyone. If you look at the ultra wealthy, nearly everyone was a business entrepreneur though so it’s one of the few ways to get extreme wealth.
Biz people make magnitudes more than entertainers, sports athletes, etc…
Participant[quote=flyer][quote=edna_mode]Comic on Gen X and real estate. Not sure I agree!
http://2.bp.blogspot.com/-AT9fFMD5bms/TuhTshwhG8I/AAAAAAAACh0/aV_Xppuqo48/s400/genxx.jpg%5B/quote%5DPer the above post, it’s interesting how younger generations might think BB’s have had to choose between having a house or having a life, when we, and most people we know–other airline pilots, real estate investors, film executives–all of whom happen to be BB’s–have found it is definitely possible to have it all. Apparently misperceptions abound.[/quote]
This is probably because the cost of required spending like transportation, healthcare, education, food, are all up a ton from before…
When we were young, college and housing in “decent”, non exclusive areas was pretty affordable relative to most incomes I think and college and healthcare was DEFINITELY more affordable compared to now. Even state tuition is very expensive now and we used to pay well over 1k / month for healthcare when 20-30 years ago, it was free for the worker and the family at many jobs.
I don’t think there will be a huge crash though since the whole world is more global now so even if many long time people can’t buy homes here, you have pretty much everyone capable from buying from Asia, Europe, India, Mexico, you name it wanting to diversify their assets out of their own countries and put it in US real estate. In a lot of these other countries, housing is even worst for what you get so there is very limited shortage of buyers compared to supply IMO. It’s a global world/economy now and the US is still one of the safest places to “park” assets from probably China, Brazil, Russia, etc…
Families who own a lot of properties are also probably wealthy so there is limited/no need, rush to sell anything. I know my parents and in-laws all have a fair amount of real estate so there isn’t a cash crunch…
For the “general/typical” American, yeah, it looks bad. But they never had the assets or homes to begin with as mentioned in many retirement/assets owned surveys.
Since these people who own the assets aren’t financially strapped, they will just sell when it comes back. Sorta like if you look at high end collectibles/art, etc…the prices seems to never drop or go down. Those buyers can just wait it out (not counting the crazed 2005 housing bubble of course since that was more of the general no-cash down flipper).
Participant[quote=svelte]
Personally, I would avoid the off-brand things because from what I’ve read many times reliability is an issue.Two companies that have first-rate products are:
http://www2.acti.com/corpweb/home/index.aspx
[/quote]Thanks for the in depth information. I have an Axis analog to IP converter currently, but my analog camera has been offline unfortunately. Are you using H.264 to save all the video?
My only gripe in building a very robust solution as you posted is pretty expensive. I may use it for a business warehouse, but am hesitant with the home due to cost (upwards of probably 4k or much more)…
Do you also have a home security system? I was thinking of building my own with the parts you can buy off the shelf now and setup my own wireless notification system (to prevent cut phone lines) instead of having some monthly monitoring fee. Watching too many movies makes me think the monitoring company can do an “inside” job if they wanted and I didn’t want to have them call the cops for false alarms (nor pay the monthly fee of course). Do you have any recommendations if you looked into that as well?
When funds permit, I may do like a hybrid system where some camera’s are higher rez (maybe outside where they can get car license plates) and lower cheaper ones inside…
ParticipantJust as a FYI for the Poway Unified School District, if you rent or live in a place NOT in a MR district, you will not be able to attend any of the “newer” MR schools. This is certainly something to consider as I’m sure people who rent “hoping” to get in are going to get a surprise that they may have to drive 20 minutes away to the non-MR place.
Also, they are building a new K-8 school opening this year that is only funded by certain MR CFD areas so you’d need to check the area/ask the homebuilder what CFD this is in if you wanted to attend that school.
Lastly, just because you paid MR doesn’t mean you will end up going to go to your neighborhood school…They have all pretty much been all full so figure out your plans prior if you don’t get lucky. There was some news articles of some people (50+ families) that bought 1+ mil homes in PUSD that had to drive to Adobe Bluffs (25 years old now) like 20-30 minutes away even though they lived directly across the street from the Elementary school…
Again, all the schools are decent, but I think some people prefer the newer schools for probably more selective families (higher income since home prices have gone up from 30 years ago), newer building, etc…, possibly better teachers since when a new school opens, they can pick and choose which teachers to hire I believe.
Hope that helps…Also, PUSD school enrollment happens in May I think.
Participant[quote=flu]
I’m probably more paranoid than most people….My personal take about tech software in areas like mobile…. that if you haven’t gotten out of pure technical work and moved into senior management, you’re pushing it by the time you hit 40ish… Your shelf life goes quickly down afterwards….Why? You’re more expensive than your peers, you’re probably less efficient than your peers, and even though you might have experience, people care more about how quickly things get done these days….And since things move rather quickly, you really have to stay on top of your game if you want to stay in business. This rule probably doesn’t apply as much if your work for the government or for the defense business, or if you run your own show and have established your connections…..but for tech companies in cut throat businesses, consider yourself warned….
I work in a cut-throat business… We compete in foreign markets with other foreign players. And frankly, some of the competition are on 7 day work weeks. We’ve been getting by… by employing people in 3-4 locations around the world so we can do roughly 24 hr development… The difference between winners and losers is drastic…. Winning means you probably have job security more/less at the same company most of your life… Losing at a company really means losing the farm….When you’re younger you had the energy and time to hop around…
It’s really funny because it’s really different from other professions like doctors or lawyers. You hear doctors/lawyers practicing in their 60ies…Much less in engineering…
I predict in about 1-3 years, I will probably be set off to greener pastures, whether it’s voluntary or not…But it’s expected…. I chose to remain technical all my career, since it was where my personal comfort and passion was….But it’s a double edge sword when you’re older.[/quote]
Pretty much in agreement with this. Older workers also come with more baggage typically and may not be “willing” to put up with all the longer non-stop hours needed to “win” like you say.
We have some friends at QCOM that are complaining with the amount of work, but as we all know, if you don’t do it, someone else will and everyone competes globally like you mentioned with the various articles.
Unfortunately, as we get older, I don’t think our bodies can take as much anymore. Working in startups way back, I used to go pretty non-stop too with night classes, etc…hungry for more tech knowledge…
Just got sick of it eventually and didn’t care. Nice that you’re still interested for whatever reason (paranoia, family, mortgage, “responsibilities” 🙂 )
Oh well, I think outside of computer/mobile/tech, I don’t think a lot of the other hard core engineering like materials, aerospace, mechanical, chemical are really the same.
Tech just moves too quickly and there is too much money chasing after things that everything is too accelerated.
Companies that are 1 year old can be worth over a billion…Pretty insane if you look at any other industry out there.
Participanthttp://finance.yahoo.com/blogs/daily-ticker/more-obamacare-delays-142408115.html
Yahoo video with Blodget on ACA…
My point all along was mentioned that: Do we really want a system where going without healthcare could result in parents of kids, etc…possibly being bankrupt because of an accident, etc…
I know for a fact that my irresponsible brother when he was younger could care less about healthcare and went without when it would be cheaper to just pay for healthcare than to deal with any possible catastrophic accidents. Since my parents already help him now, it would’ve been sad to see them spend hundreds of thousands on medical bills to save his life.
February 10, 2014 at 6:19 PM in reply to: agent suggestions needed for the southern part of La Jolla #770768ParticipantThe comment about selling now is also probably because people looking to go to that school district probably needs to establish residency BEFORE May…for the next school year so I’d agree that if you list it now, you’ll get everyone that wants to be in that area while some would have made the move already…
and we know what parents are willing to do for their kids…
ParticipantOh well, maybe I am way off then. I guess I can see a young guy with no family moving and renting a cheap place to possibly hit the next big thing in a major tech hub…with roommates or free housing in the facebook or google dorm, sure, makes a lot of sense.
Do you get a lot of people who are middle aged (35-45, married with kids) moving with a large pay and relocation package upwards of 150k-300k?
I suppose I should’ve said I don’t think as many people with families are coming here to raise a family and buy a house.
If you’re young and can strike it rich, yeah, I guess it makes a lot of sense to roll the start-up dice since your cost/housing is cheap.
Correct me if I’m way off again and more of the recent offers are more for young/no family folks or people not buying houses.
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