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Re: Miguel and Michele Suarez
11-30-2006, 06:52 AM
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#41
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by Azanon
Fair enough, but my only point is that its one thing to have nothing and need a couple hundred thousand to pay for retirement, and quite another to actually own something worth a couple hundred thousand and simply convert/liquidate that asset to cash.
No one will just loan you 200K for nothing, but they will pay you 200K for a house; including a bank. I see a difference there.
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If you were selling the house, the buyer would be getting all of the upside on the deal as well as the downside. If you are borrowing aganst the deal, the lender gets none of the upside and much of the downside. See the difference?
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Miguel and Michele Suarez
11-30-2006, 09:14 AM
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#42
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Recycles dryer sheets
Join Date: Oct 2006
Posts: 80
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by Azanon
I have no quarrel with solving the problem for the kid's education. I just think they're going about it the wrong way. There's more than one way to skin a cat, and surely a decent FA can find an alternative to cutting an already modest retirement contribution rate.
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And I would bet this FA did suggest a number of alternatives. The million dollar issue is finding an alternative that is acceptable to a couple who need a serious attitude adjustment about spending, etc. And that will fit in a page and a half of text for a mag article.
I'm certain we can assume the advice given in one of these articles has been reviewed a number of times. An FA's living is his advice, thus putting it out for all to review and critic is major. Especially, this type of advice.
I'm a half full person. Thus, I choose to assume this FA has done his homework and is trying to resolve a serious budgeting issue here.
How long ago did you go to grad school ? Are you sure the >1000 GRE gets you in grad school still exists today ?
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Re: Miguel and Michele Suarez
11-30-2006, 09:15 AM
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#43
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by HelpMeRhonda
How long ago did you go to grad school ? Are you sure the >1000 GRE gets you in grad school still exists today ?
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Sure it still exists. But only if you want to go to East Butt Plug Community University.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Miguel and Michele Suarez
11-30-2006, 09:20 AM
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#44
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Recycles dryer sheets
Join Date: Oct 2006
Posts: 80
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by brewer12345
Sure it still exists. But only if you want to go to East Butt Plug Community University.
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@#$% Brewer !!!, I just spit coffee all over my computer !!!
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Re: Miguel and Michele Suarez
11-30-2006, 09:51 AM
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#45
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by Azanon
I didn't say any grad school, but you can get into grad school with that and get it paid for. I know breaking 1000* got me full tuition remission at Baylor University, and Baylor U is no slouch school. I got well over that too, but they made it clear that was the magic number.
* that score excludes the analytical score. I'm not sure if its customary to do that all across the US but it is where I live.
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What was your degree in? Baylor is a fine university...........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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Re: Miguel and Michele Suarez
11-30-2006, 10:27 AM
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#46
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by HelpMeRhonda
@#$% Brewer !!!, I just spit coffee all over my computer !!!
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Send the bills to Az.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Miguel and Michele Suarez
11-30-2006, 12:05 PM
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#47
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by brewer12345
Sure it still exists. But only if you want to go to East Butt Plug Community University.
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I can hear our school song now... Theme from Deliverance!!
Sorta brings a tear to my eye... :P
__________________
Have Funds, Will Retire
...not doing anything of true substance...
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Re: Miguel and Michele Suarez
11-30-2006, 02:25 PM
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#48
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Dryer sheet wannabe
Join Date: Nov 2006
Posts: 17
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by MooreBonds
The net worth of the couple was lopsided by the home equity....IIRC, about 3/4 of their entire net worth was tied up in the house equity.
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This is exactly why they should consider converting some of this home equity into another asset class. Well, that and the fact that doing so will also improve their net worth by a lot.
Quote:
Originally Posted by MooreBonds
If you take out a secondary loan against your house for $500k and take out 90% of your equity, you'd be left with $1MM in home with $900k in loans.
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I agree with you -- that doesn't sound like a good idea. Did the advisor say to take out $500k of equity? (You didn't mention a dollar amount when you first told the story.) I would take out a lot less, say $200k.
Ok, so here's the situation...
Couple has a $1MM home with a mortgage of about $400k. This leaves equity of $600k, which is 3/4 of their total net worth of $800k.
If mortgage rates are favorable, say, in the 6% range or less, why not refinance and take out an extra $200k? Invest it in a stock index fund. Now they've got $400k home equity and $400k in other investments. Seems less risky than $600k/200k to me.
Plus, investing that money in a lump sum should give them an extra $1.6 million after 30 years.
Would you agree, MooreBonds?
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Re: Miguel and Michele Suarez
12-09-2006, 10:33 AM
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#49
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Recycles dryer sheets
Join Date: Apr 2006
Posts: 147
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by FinanceDude
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How much of that $30B in financial aid is available to a college student who's parents make $100K per year and have a net worth of $1M? Not talking academic scholarships or student loans.
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Re: Miguel and Michele Suarez
12-09-2006, 11:23 AM
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#50
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Recycles dryer sheets
Join Date: Oct 2006
Posts: 80
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by Hydroman
How much of that $30B in financial aid is available to a college student who's parents make $100K per year and have a net worth of $1M? Not talking academic scholarships or student loans.
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At some point we need to ask, "how should be available ?"
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Re: Miguel and Michele Suarez
12-09-2006, 12:23 PM
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#51
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Recycles dryer sheets
Join Date: Apr 2006
Posts: 147
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by HelpMeRhonda
At some point we need to ask, "how should be available ?"
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Agree. That question also needs to extended to those who make a conscious decision to ER with a significantly reduced income from their working years and then have their kids apply for college financial aid based on the lower income? Kind of a form of quitting ones job and then applying for welfare.
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Re: Miguel and Michele Suarez
12-09-2006, 01:14 PM
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#52
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Recycles dryer sheets
Join Date: Oct 2006
Posts: 80
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by Hydroman
Agree. That question also needs to extended to those who make a conscious decision to ER with a significantly reduced income from their working years and then have their kids apply for college financial aid based on the lower income? Kind of a form of quitting ones job and then applying for welfare.
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Also agreed
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Re: Miguel and Michele Suarez
12-11-2006, 08:19 AM
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#53
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by Hydroman
How much of that $30B in financial aid is available to a college student who's parents make $100K per year and have a net worth of $1M? Not talking academic scholarships or student loans.
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If the parents make over $100K a year, have a net worth of $1 M plus, are committed to LBYM, and believe an education is important, would they not support the child's education??
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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Re: Miguel and Michele Suarez
12-11-2006, 02:52 PM
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#54
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,505
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by brewer12345
Sure it still exists. But only if you want to go to East Butt Plug Community University.
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Your reading comprehension lacks something to be desired, I guess. I said it was specifically at Baylor U, which definitely does not fit that description. Try to focus brewer. Also try to separate personal thoughts you have evidenced by your jokes from others.
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Re: Miguel and Michele Suarez
12-11-2006, 02:53 PM
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#55
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,505
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by HelpMeRhonda
@#$% Brewer !!!, I just spit coffee all over my computer !!!
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You find humor in your ignorance? This is not an insult, i'm seriously asking you because what i said was true; 1000+ (math and verbal) got you full tuitition remission in the Baylor Biology Dept when i went in.
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Re: Miguel and Michele Suarez
12-11-2006, 02:53 PM
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#56
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,505
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by FinanceDude
What was your degree in? Baylor is a fine university...........
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My degrees are in Biology. And yeah, i think so too.......
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Re: Miguel and Michele Suarez
12-11-2006, 02:54 PM
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#57
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,505
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by brewer12345
Send the bills to Az.
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You truly are an idiot sometime.
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Re: Miguel and Michele Suarez
12-11-2006, 03:02 PM
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#58
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by Azanon
You truly are an idiot sometime.
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Hey, Ding Dong Daddy: let me know when you are ready to get down to "yo momma" jokes...
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Miguel and Michele Suarez
12-11-2006, 04:38 PM
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#59
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Full time employment: Posting here.
Join Date: Mar 2005
Location: Northern, Florida
Posts: 925
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by Azanon
Your reading comprehension lacks something to be desired, I guess.
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I hate to tell you this, but the above sentence is a double negative. Since it "lacks something to be desired" there is nothing to be desired, therefore his comprehension is great. The phrase should be "leaves something to be desired."
__________________
Retired in 2006 at age 49.
"Who among us is smart enough to learn from the mistakes of others?" - Voltaire
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Re: Miguel and Michele Suarez
12-11-2006, 04:46 PM
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#60
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Recycles dryer sheets
Join Date: Oct 2006
Posts: 80
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Re: Miguel and Michele Suarez
Quote:
Originally Posted by Azanon
You find humor in your ignorance? This is not an insult, i'm seriously asking you because what i said was true; 1000+ (math and verbal) got you full tuitition remission in the Baylor Biology Dept when i went in.
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Not worth the hassle. Simply isn't enough value coming from your posts to warrant the BS.
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