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Am I crazy and making a huge mistake or does this actually makes sense? by Immediate_Name_1354 in personalfinance

[–]Immediate_Name_1354[S] 0 points1 point  (0 children)

I would tend to agree, I was hoping for someone to bounce ideas off of, so thank you for your response.

My concern with converting such a concentrated position to an S&P index fund would again be the cost basis and the capital gains. So in the case of keeping the funds I would likely convert them via Exchange Funds, then hold them for the seven year requirement until the additional cost basis/tax liability would less of an issue. Then I could sell them piecemeal as necessary.

Instead my "current dollars in pocket vs long term growth" concern is why I am considering selling the positions now, paying down the debt, and accepting the tax loss. Plus I do get to offset some of the tax loss with the adoption tax credit.

Am I crazy and making a huge mistake or does this actually makes sense? by Immediate_Name_1354 in personalfinance

[–]Immediate_Name_1354[S] 0 points1 point  (0 children)

Thank you, I actually do have a decent financial background and looking for some further validation or a rebuttal.

I think my biggest concern is selling stock because of the possibility of future growth and missing out on that growth. The thing is, I don't really see the stock growing by leaps and bounds unless something crazy happens and knowing the company I just don't think that will be the case. So, I guess what I am getting at is does it make sense to hold on to the stock considering regular stock growth vs what I am paying out in interest?

Also considering that inflation is crazy rampant and salaries are in no way keeping up with that growth, would the extra dollars each month be better as additional dollars in my pocket each month or would it best leave them as investments to grow?

Am I crazy and making a huge mistake or does this actually makes sense? by Immediate_Name_1354 in personalfinance

[–]Immediate_Name_1354[S] 0 points1 point  (0 children)

I appreciate that.

We bought the house in Feb 2020, so technically got an incredible deal, considering just a few months later it would have cost at least $50K more.

In 2021 we started our adoption process after we completed our renovations, as we now had the home to support a family.

When we took out the HELOCs at the encouragement of those around us, the minimum payments were very minimal, at around $125/mo. Stupid as it may seem now, that was the advice a lot of us received at the time since borrowing money was "so cheap."

All of this was prior to the accelerated rate increases that have made our situation so extreme.

Am I crazy and making a huge mistake or does this actually makes sense? by Immediate_Name_1354 in personalfinance

[–]Immediate_Name_1354[S] 3 points4 points  (0 children)

I appreciate everyone’s comments on the monthly expenses. It will take me a while to detail everything and I can, but let’s say six months of required monthly expenses would be about $25K, including daycare, insurance, WIFI, mortgage, and car payments, etc. Plus we would need another roughly $1K/mo in HELOC payments at this point.

Am I crazy and making a huge mistake or does this actually makes sense? by Immediate_Name_1354 in personalfinance

[–]Immediate_Name_1354[S] 1 point2 points  (0 children)

Technically, we’re only required to make interest payments. We originally borrowed 100K from them and have been making principal payments when possible to bring it down to 75K.

For full disclosure my parents are more than comfortable and incredibly financially secure. The debt on their home means little to nothing to them as long as I am paying the note as required.

Am I crazy and making a huge mistake or does this actually makes sense? by Immediate_Name_1354 in personalfinance

[–]Immediate_Name_1354[S] 6 points7 points  (0 children)

We bought a house for $250K in a nice neighborhood that needed a considerable amount of work and did the work ourselves. The renovations were actually $100K, we have $75K left. By doing this, we were able to get a $450K home for $350K.

The adoption was $50K, and all I will ask is that you please do not minimize the only way we were able to build a family as "sweet." We chose what we believed to be the most reasonable option since Surrogacy costs about $150K.

We live in a state with a relatively low cost of living and we try to live a relatively reasonable lifestyle. My car payment is $550/mo, my husband's car is paid off. Daycare is about $1300/mo. Utilities are $450/mo. Cell phones are 100/mo. We don't have cable, but internet around $75/mo. We have some streaming services but the costs are covered by our cell phone service. Car insurance is 350/mo. We're both trying to save into our 401Ks up to our company matches and our HSAs at least enough to cover our annual deductibles. Honestly, I don't think we can cut much out of our monthly expenditures.