money Financial Planning

[MRROUGHSEX]

Guys, how do you mitigate Sequence of Returns Risk?

What is that? LOL

[MRROUGHSEX]

Revising the goals based on new information:

 

* Reduce total debt to $58K by year end (currently at $74K)

* Grow retirement savings to $160K $170K by year end (currently at $140K $150K)

* Anticipate house value to appreciate to $272K $280K by year end (currently at $252K $260K)

* Increase college savings of children to $20K by year end (currently at $12K)

* Buttress business fund to $58K $65K by year end (currently at $49K $55K)

* Expect condo value to appreciate to $50K by year end (currently at $47K)

[MRROUGHSEX]

This is screenshot of the last Phase 1 unit prices in my subdivision. The prices are for the 2nd to the last building being built.

 

By year-end, I can see that the last building would be priced in the $275K. Now that does not include upgrades. Throw in the usual $10K upgrades and the price would be $285K.

 

My unit has the unique advantage of being a forest lot which adds another $10K value. The area is also near a lake though I do not have a view of the lake. BUT, I have the creek from the lake on my back lot. I do not know yet how to assess the premium for the waterfront units as there are only 4 units in the entire subdivsion that has it, including mine.

 

For now I will be conservative and just add the $10K upgrades and the $10K forest lot premium to the year-end valuation of $275K which would bring my unit's market value to $295K by year-end..

 

 

[Kaka_shi]

👍

👌

[MRROUGHSEX]

When buying a house, add closing costs to the price of the house you are buying. E.g., $231,000 (their price, what you will pay) + $4,000 closing cost (additional pay for the loan, taxes ) = $235,000. You do not pay any agents' (buyer and seller) commission as the seller pays for those.

 

When selling a house, name your price and let the sale agents mark up their commission from your price. E.g., $440,000 (your price or what you will get) + $26,000 (commission of both agents) = $466,000 total sale price.

 

So even if my buy price of my tonwhouse show ~$231K, it was really $235K that I paid. And since, it is brand new construction I have to add the window treatments cost to the total which makes it $237K.

 

[mashete]

Anyone in Ireland? Would like to start being financially independent. Just joined the credit union, as a first step. Would like to know more how to invest here i.e what are the options.

[overk1ll]

guys have you tried copy trading of etoro?

[JohannBeckham]

Anyone in Ireland? Would like to start being financially independent. Just joined the credit union, as a first step. Would like to know more how to invest here i.e what are the options.

Not from Ireland but from Australia (totally different continent), but on the same Financial Independent journey like you.Here are my tips:

1. Make a budget -i know this sounds boring as hell, but this for me is the best tool of all. Know where your money is going or rather tell your money where it ahould go before you receive your regular income e.g. salary

2. Have an initial emergency fund - because i'm 100% sure one day, life will F*ck you up with all sort of bullshit (car breakdown, sickness, etc.). $500 or better $1,000 should cover you.

3. Pay your credit card balance off

4. Save 50% of your take home pay - if you do this your a badass on the freeway to Financial Independence in no time

5. Invest that 50% savings either in index funds or real estate. I personally invest 100% in Vanguard ETFs

6. Try to increase your savings rate higher year by year by creatively decreasing expenses and increasing income. Be creative.

7. Using the trinity studies 4% rule, if your total investment is 25 times your yearly expenses, then you my friend is considered FINANCIALLY INDEPENDENT

[mashete]

Not from Ireland but from Australia (totally different continent), but on the same Financial Independent journey like you.Here are my tips:

1. Make a budget -i know this sounds boring as hell, but this for me is the best tool of all. Know where your money is going or rather tell your money where it ahould go before you receive your regular income e.g. salary

2. Have an initial emergency fund - because i'm 100% sure one day, life will F*ck you up with all sort of bullshit (car breakdown, sickness, etc.). $500 or better $1,000 should cover you.

3. Pay your credit card balance off

4. Save 50% of your take home pay - if you do this your a badass on the freeway to Financial Independence in no time

5. Invest that 50% savings either in index funds or real estate. I personally invest 100% in Vanguard ETFs

6. Try to increase your savings rate higher year by year by creatively decreasing expenses and increasing income. Be creative.

7. Using the trinity studies 4% rule, if your total investment is 25 times your yearly expenses, then you my friend is considered FINANCIALLY INDEPENDENT

Thank you so much for the tips.

[Z]

Insurance is an expense just like food, utilities, rent etc. VUL is an expensive way to invest. Its a lot cheaper to buy term (expense) and invest the rest in mutual fund or ETF. You'll never go wrong. VUL is widely marketed kasi 45% of your paid premium is paid sa ahente na nag benta syo. So its good for the insurance agent and bad for the consumer ksi napamahal ka. Unless mahal mo ang ahente mo kesa sa bulsa mo

I agree and I’m an insurance agent, rather ‘financial advisor’. Not exactly close to the financial advising services I was exposed to when I was in Australia. Also, there are better structures available for estate planning in the PH - insurance only addresses the immediate financial need and not the possible conflicts therein (e.g Ilusorio family).

[KuyaBord]

Good evening, I hope it's ok to post it here since financial related. I'm planning on buying a condo unit. Any tips? Thanks

[JohannBeckham]

Good evening, I hope it's ok to post it here since financial related. I'm planning on buying a condo unit. Any tips? Thanks

Before we can give you tips, first we need to know more about you and this condo. Things like:

1. What's the condo unit for (a place for you to live or as a rental income generating asset)?

2. Is it brand new, off the plan condo or is it old unit (how old)?

3. Where is it located e.g Makati, Ortigas, Laguna, Bulacan, Davao?

4. Have your sorted financing yet? How much down and whats the mortgage interest rate?

5. How much is the condo? Have you done the math on total cost of owning this condo? CAN YOU AFFORD IT?

 

I got dozens more questions, but at the top of my head, these needs some answers first before we can answer you in a manner that makes sense. Without these info, we can't add that much of a value.

[Hari ng Spakol]

Good evening, I hope it's ok to post it here since financial related. I'm planning on buying a condo unit. Any tips? Thanks

 

it's always good to buy a condo when it is still in a pre-selling period. just pay for the reservation and initial DP of maybe 5% or 10% in 2 to 4 years time. After that before you start the remaining balance, the value of your condo is already appreciated.

 

just make sure that location is very important when looking for a condo (ex: located in prime location, flood free, nearby commercial establishments, hospitals, grocery, schools, church, and accessible thru public transportation such as jeepney, MRT, LRT), this is to ensure the value will appreciate by 15% to 20% yearly, and your ROI will be 5 to 7 years.

 

just my two cents.

[KuyaBord]

Before we can give you tips, first we need to know more about you and this condo. Things like:

1. What's the condo unit for (a place for you to live or as a rental income generating asset)?

2. Is it brand new, off the plan condo or is it old unit (how old)?

3. Where is it located e.g Makati, Ortigas, Laguna, Bulacan, Davao?

4. Have your sorted financing yet? How much down and whats the mortgage interest rate?

5. How much is the condo? Have you done the math on total cost of owning this condo? CAN YOU AFFORD IT?

I got dozens more questions, but at the top of my head, these needs some answers first before we can answer you in a manner that makes sense. Without these info, we can't add that much of a value.

Good evening sir Johann,

 

1. Yes, planning on living once it's finished.

 

2. Brand new, pre selling.

 

3. At Mandaluyong, pioneer st.

 

4. Financing im going to talk with the agent if there's bank financing. Their longest is 10 year plan term.

 

5. Price is almost 2Mphp. The computation given to me for the 10yr term costs around 24k per month. In my current salary it goes within my budget.

 

it's always good to buy a condo when it is still in a pre-selling period. just pay for the reservation and initial DP of maybe 5% or 10% in 2 to 4 years time. After that before you start the remaining balance, the value of your condo is already appreciated.

 

just make sure that location is very important when looking for a condo (ex: located in prime location, flood free, nearby commercial establishments, hospitals, grocery, schools, church, and accessible thru public transportation such as jeepney, MRT, LRT), this is to ensure the value will appreciate by 15% to 20% yearly, and your ROI will be 5 to 7 years.

 

just my two cents.

Yes sir Hari ng Spakol, pre selling with 3% downpayment

[K0RN - RETIR3D]

Do you think its worth to take The RFP here in the Philippines?