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Re: Miguel and Michele Suarez
Old 11-30-2006, 07:52 AM   #41
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Re: Miguel and Michele Suarez

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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.
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?
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Re: Miguel and Michele Suarez
Old 11-30-2006, 10:14 AM   #42
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Re: Miguel and Michele Suarez

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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.
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
Old 11-30-2006, 10:15 AM   #43
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Re: Miguel and Michele Suarez

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How long ago did you go to grad school ? Are you sure the >1000 GRE gets you in grad school still exists today ?
Sure it still exists. But only if you want to go to East Butt Plug Community University.
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Re: Miguel and Michele Suarez
Old 11-30-2006, 10:20 AM   #44
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Re: Miguel and Michele Suarez

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Sure it still exists. But only if you want to go to East Butt Plug Community University.
@#$% Brewer !!!, I just spit coffee all over my computer !!!
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Re: Miguel and Michele Suarez
Old 11-30-2006, 10:51 AM   #45
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Re: Miguel and Michele Suarez

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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.
What was your degree in? Baylor is a fine university...........
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Re: Miguel and Michele Suarez
Old 11-30-2006, 11:27 AM   #46
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Re: Miguel and Michele Suarez

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@#$% Brewer !!!, I just spit coffee all over my computer !!!
Send the bills to Az.
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Re: Miguel and Michele Suarez
Old 11-30-2006, 01:05 PM   #47
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Re: Miguel and Michele Suarez

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Originally Posted by brewer12345
Sure it still exists. But only if you want to go to East Butt Plug Community University.
I can hear our school song now... Theme from Deliverance!!

Sorta brings a tear to my eye... :P
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Re: Miguel and Michele Suarez
Old 11-30-2006, 03:25 PM   #48
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Re: Miguel and Michele Suarez

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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.
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.
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
Old 12-09-2006, 11:33 AM   #49
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Re: Miguel and Michele Suarez

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Originally Posted by FinanceDude
So, you think I should advise people to dramatically decrease their retirement portfolio, when $30 billion plus a year in financial aid is not applied for?? Interesting...........
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
Old 12-09-2006, 12:23 PM   #50
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Re: Miguel and Michele Suarez

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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.
At some point we need to ask, "how should be available ?"
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Re: Miguel and Michele Suarez
Old 12-09-2006, 01:23 PM   #51
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Re: Miguel and Michele Suarez

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Originally Posted by HelpMeRhonda
At some point we need to ask, "how should be available ?"
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
Old 12-09-2006, 02:14 PM   #52
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Re: Miguel and Michele Suarez

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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.
Also agreed
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Re: Miguel and Michele Suarez
Old 12-11-2006, 09:19 AM   #53
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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.
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??
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Re: Miguel and Michele Suarez
Old 12-11-2006, 03:52 PM   #54
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Re: Miguel and Michele Suarez

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Originally Posted by brewer12345
Sure it still exists. But only if you want to go to East Butt Plug Community University.
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
Old 12-11-2006, 03:53 PM   #55
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Re: Miguel and Michele Suarez

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Originally Posted by HelpMeRhonda
@#$% Brewer !!!, I just spit coffee all over my computer !!!
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
Old 12-11-2006, 03:53 PM   #56
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Re: Miguel and Michele Suarez

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What was your degree in? Baylor is a fine university...........
My degrees are in Biology. And yeah, i think so too.......
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Re: Miguel and Michele Suarez
Old 12-11-2006, 03:54 PM   #57
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Re: Miguel and Michele Suarez

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Send the bills to Az.
You truly are an idiot sometime.
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Re: Miguel and Michele Suarez
Old 12-11-2006, 04:02 PM   #58
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Re: Miguel and Michele Suarez

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Originally Posted by Azanon
You truly are an idiot sometime.
Hey, Ding Dong Daddy: let me know when you are ready to get down to "yo momma" jokes...
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Re: Miguel and Michele Suarez
Old 12-11-2006, 05:38 PM   #59
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Re: Miguel and Michele Suarez

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Originally Posted by Azanon
Your reading comprehension lacks something to be desired, I guess.
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."
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Re: Miguel and Michele Suarez
Old 12-11-2006, 05:46 PM   #60
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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.
Not worth the hassle. Simply isn't enough value coming from your posts to warrant the BS.
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