All Forum Posts by: Michael Masters

I am accelerating my itemized deductions as I may lose the state income tax deduction next year based on current proposed tax reform. Likely most people will no longer itemize unless they give tons of money to charity. In particular, I’m prepaying property taxes on my personal residence. My town allows you to pay 4 equal installments from July 2017 to June 2018, I’m opting to pay all now. Also, while tax publications say you can’t prepay expenses like home mortgage interest, it appears property tax is simply based on date paid. Based on this, I’m going to town hall to try to prepay my 2018-19 property tax as well. Also, I’m paying my Jan 1 mortgage payment in December as the interest on this is accrued from December and therefore it’s not prepaid interest. This all adds up to additional itemized deductions of $30k which at 40% rate is $12k savings. Check with CPA on this though, I’m cheap and do my own taxes so I could very well be wrong.

I’d say the answer depends on your financial position. If I could absorb the loss without too much pain I would. Or maybe a 50/50 split. I too believe in Karma in these situations. I’m sure you’ll get plenty of answers on both sides of this fence!

Originally posted by @Terry Lao:

@Matt R.

I like your chart for SF home prices, on timeline. And the data was supplied by CASE SHILLER. The importance of this index cannot be stressed enough. The name CASE SHILLER is an Noble Prize winning economist, and referenced many times in articles and published news organizations.

Matt, do you want to guess at trend below is good or bad? and which is better top or bottom?

Since @Dan H. did not have answer after lengthy chart talk.

 Is that meant to be a trick question with the same data cut off at different dates?  Tricky!

Originally posted by @Elbert D.:

I have a question for you, is real estate the only or best way towards financial independence?

Part of a balanced retirement plan for me.  Steady inflation-adjusted income comes from real estate rentals (annuities are crap!), safety net of cash comes from stock market investments.

Along the lines of experiences, a playoff game with my son as close to the action as you can get.  He got fist pumps from the youngest stars (Raphael Devers) to the wily old veterans (Dustin Pedroia).  The only playoff game the Sox won, a comeback from behind victory!

Better than a day I will never forget, a day my son will never forget!

Bridgeport? Just a curious neighbor being nosey! Good luck, it looks like a serious project!

3.99% sounds like a good deal.  I just got the following this summer:

*10 year draw period

*25 or 30 year amortization, can't remember

*Variable rate currently at 3.5% (moves with prime rate)

Given yours is a fixed deal the 3.99% sounds pretty good.  My rate will probably average out to your 3.99% as prime moves over the next 3 years.

I have four rules:

1)  Drop top - love having the sun in my face or seeing stars at night

2)  Stick-shift - I like to feel like I’m driving the car not the car is driving me

3)  Buy new - I like to spec the car exactly like I want it.  I will own the car for long enough and I prefer not finding out I have someone else’s headache.  

4)  Fast!

On the hunt now, my car is at 6 years of age, any suggestions that meet all my requirements?

I think he said he had $80k in cash from dividends but a lot more invested in dividend stocks. My 401k is all set to dividend reinvestments so never any cash building up.

I’ve worked in insurance for 30 years and I can tell you if you get sued the attorney will just try to squeeze insurance company to limit and be happy with that. Cheaper/easier for you to buy an umbrella policy for that extra “sleep at night” cover. I’m going to run a report at work maybe and come back with real stats on likelihood of a large loss. For me, I am considering LLC for tax purposes depending on what happens with these new proposed changes.