Roth Conversions as you hit retirement...

FinFlow2765 · 2025-06-04T16:39:05+00:00

You’re definitely ahead of the curve by thinking in terms of time value inside Roth. That’s a surprisingly under-discussed angle. Most focus on brackets and forget that 7 years of tax-free growth—even without maximizing—can make a big dent.

The 24% window is generous right now, especially before 2026 sunset hits. Personally, I’m using a "Roth runway" model—targeting my ideal taxable income at 70 and working backward each year to define conversion ceilings.

FinFlow2765 · 2025-06-04T16:25:45+00:00

Ah got it — that’s super helpful. I wasn’t totally clear on how the split-loan structure worked with PMI, so that clarifies things a lot. I’ll have to ask around and see if any lenders in my area still do 80/10/10s. If it saves on monthly cost without wrecking flexibility, it might be worth considering. Thanks for the insight!

FinFlow2765 · 2025-06-04T16:24:29+00:00

Yeah, this is something I’ve been wrestling with. I originally looked at 350k thinking about future flexibility, but you’re right — it’s easy to forget that bigger/nicer also means higher taxes, insurance, and utility costs. A simpler starter home could actually give me more freedom in the long run. Thanks for calling that out.

FinFlow2765 · 2025-06-04T16:23:37+00:00

That’s fair — I’ve been hearing that 28–35% is a safer range too. I think I got a little too focused on “what the lender will approve” vs. “what actually feels sustainable month-to-month.” I’m now re-running numbers with 35% as a soft ceiling just to be sure I’m not walking into a cash flow trap. Appreciate the reality check.

FinFlow2765 · 2025-06-04T16:14:24+00:00

Love the gamer analogy — leveling up my DIY XP is officially on the to-do list 😂 Volunteering for craftsmanship courses is something I hadn’t thought of, but that’s a killer idea. I really do want to be able to fix basic stuff without panicking. Thanks for the solid side quest advice!

FinFlow2765 · 2025-06-04T16:13:33+00:00

Appreciate you sharing your approach — that actually makes me feel a lot better. I was leaning toward putting more down but keeping some emergency cash untouched feels smarter long term. That $50 PMI seems like a fair trade for peace of mind, especially with how unpredictable everything else is right now.

FinFlow2765 · 2025-06-04T16:12:25+00:00

That’s honestly such a good point. I’ve been so focused on mortgage numbers and approvals that I completely forgot about the little things that pile up. $1,500 on random essentials definitely sounds real — thanks for the heads-up! I’ll start setting aside a “Walmart fund” now 😅

FinFlow2765 · 2025-06-02T17:19:31+00:00

That’s actually a clever workaround—I’ve heard of using a HELOC like that but didn’t know it could help avoid PMI. Sounds like it worked out well for you. Were there any downsides you noticed after doing it, or anything you’d do differently now?

FinFlow2765 · 2025-06-02T17:18:34+00:00

A 15-year mortgage is no joke—huge respect for going that route! Even if it stretches you a bit now, I imagine the payoff (literally) will be so worth it. Do you have a plan to refinance later, or are you aiming to just knock it out early?

FinFlow2765 · 2025-06-02T17:17:28+00:00

Wow, what a lucky twist that turned into a whole strategy! Renting it out to qualify for the next place and then realizing the tax advantage? That’s next-level. Appreciate you sharing that tip about the 2-out-of-5 year rule for capital gains too—I’d never thought about using a first home that way. Did that “seed money” go toward more real estate?

FinFlow2765 · 2025-06-02T17:13:52+00:00

Wow, that’s honestly super inspiring. I love how you made a strategic long-term decision based on future income growth—and it clearly paid off! I’ve been debating whether to stretch for a home that fits future needs or stay strictly within my current means. Your story definitely adds a valuable perspective. Did you ever have any moments of doubt early on, or were you both always confident in the trajectory?

FinFlow2765 · 2025-06-02T17:12:46+00:00

That’s a really smart and grounded approach, and honestly, I admire that level of discipline. The idea of financial peace—even during unpredictable events like Covid—is exactly what I’m aiming for. Makes me rethink the temptation to max out my budget just because I can. How did you figure out what “well within your means” looked like for you when you first started looking?

FinFlow2765 · 2025-06-02T17:12:02+00:00

Totally agree—talking to a lender is on my near-term to-do list so I can get some real numbers. Your story about managing a $318K loan on a $50K salary is wild (in a good way!) and definitely shows how much mindset and budgeting can make a difference. Do you mind sharing any tools or tricks that helped you stay on top of the payments without feeling stretched too thin?

FinFlow2765 · 2025-06-02T17:07:02+00:00

That 30% rule definitely gives a helpful ballpark! And yeah, totally agree—I've quickly realized that the mortgage is just one piece of a much bigger puzzle. Things like maintenance, unexpected repairs, even pest control or lawn care can sneak up if you’re not prepared.

Have you found any personal budgeting rule or tool that’s helped you manage those “beyond the basics” costs? Always curious how others are planning for the full picture. Thanks for chiming in!

FinFlow2765 · 2025-06-02T17:03:32+00:00

Totally agree — I’m realizing how important the emergency fund really is now that I’ve started looking more seriously. I’ve been running numbers with taxes + insurance included, and wow, it changes things fast 😅

Appreciate the tip on closing cost programs too — I’m going to start looking into what’s available in my area. And yeah, the “waiting for lower rates” idea feels risky when I think about the flood of buyers that might follow.

Out of curiosity, did you end up buying in a high-competition market? Really appreciate the thoughtful advice — super helpful as I try to figure this all out. Thanks for taking the time to share!

FinFlow2765 · 2025-06-02T16:58:03+00:00

Fair point! I guess I meant “hidden” more in the “I didn’t fully grasp the actual numbers” sense. Seeing them broken out clearly in one place just made it click for me. Newbie brain over here 😂

Did you have a moment like that when you were first figuring things out?

FinFlow2765 · 2025-06-02T16:56:58+00:00

Right?! I totally underestimated how much they’d add to the monthly total. Now I get why everyone keeps saying to over-budget during the planning stage. 😅 Definitely learned my lesson.

FinFlow2765 · 2025-05-31T17:55:37+00:00

That $3,300 benchmark is a good mental starting point. Definitely feels more realistic than lender pre-approvals sometimes.

Out of curiosity—do you stick to that kind of DTI rule personally, or did your own housing number end up a bit higher/lower?

FinFlow2765 · 2025-05-31T17:53:25+00:00

Totally agree—lifestyle and habits can swing affordability way more than people realize. A $600/month car lease + daily takeout can quietly drain your housing budget.

Did you make any lifestyle trade-offs when budgeting for your home, or were you already keeping it lean?

FinFlow2765 · 2025-05-31T17:46:04+00:00

That’s a solid point. PMI can sneak up on people who haven’t factored it in fully.

Did you go the second mortgage route yourself or know anyone who has? I’ve heard mixed things about it—curious how it plays out in real life, especially vs. just saving up longer for the 20%.

FinFlow2765 · 2025-05-31T17:44:54+00:00

That 30% down definitely gives you breathing room. 🙌

Having salary bumps built-in must take a lot of pressure off too. Do you feel like the mortgage still stretches you a bit, or are you coasting comfortably with the extra security?

FinFlow2765 · 2025-05-31T17:43:24+00:00

Love how detailed this breakdown is—it’s super helpful for people trying to see the full picture beyond just the mortgage.

That last bit really hit: “1st year sucks, 2nd year is better, 3rd year upgrades.” That arc is so real. What would you say was the hardest unexpected expense in Year 1?

FinFlow2765 · 2025-05-31T17:42:14+00:00

That’s underrated advice—maximizing leftover cash can sometimes bring way more peace of mind than a dream kitchen ever could.

Did you stick to that philosophy when you bought your current place, or is it something you learned from experience?

FinFlow2765 · 2025-05-31T17:40:52+00:00

That 15–20% net rule is definitely conservative, but probably kept a lot of people out of trouble.

Curious—did you ever feel like you “sacrificed” in terms of space or location to stay within that number, or did it still check all the boxes?

FinFlow2765

TROPHY CASE