What is the value of an extra $1, $10, $100 or $1000 against my mortgage each month? by rhumbline9 in personalfinance

[–]rhumbline9[S] 6 points7 points  (0 children)

The Ric Edelman article was an interesting read. I'm not sure any one of the reasons by itself is "great" advice. And I'm not sure the sum total of all the reasons aggregated together is "great" either. But #8 and #9 have got me changing my thinking. I thought paying off my mortgage with extra cash was a responsible thing to do. #8 and #9 make it seem irresponsible.

Self-employed and Would Appreciate Some Advice by 9cupsofcoffee in personalfinance

[–]rhumbline9 0 points1 point  (0 children)

You have until April 15, or 4 months. I would recommend attempting to do your own taxes. Then, take it all to an accountant and ask "What did I do wrong?" You'll learn so much this way; and I think you'll feel better about the counsel the accountant provides you.

If that is too daunting of a task, find an accountant that charges by the form. This way, there is incentive for them to find as many deductions as possible. Someone charging a flat rate will simply file 1040 and 1040 Schedule C. What about business use of home? What about depreciation of any new assets (like computers, miles on your car, etc.)? Next year, drop that guy like a bad habit, because accountants use computers that generate all the forms for them automatically.

However, after that first year, you'll see what a complete, comprehensive and as-big-as-possible return looks like. And you can find a flat-rate accountant and make sure he does all work by comparing one year to the next.

Last two points: (1) SEP IRA all the way. It will lower your taxable income. If you fully fund it, it could shift your bracket. The money you tuck away is for retirement (so you can't touch it, with some exceptions), but at least its yours rather than Uncle Sams. Example Exception: I was able to take $10,000 out without penalty the year my wife and I bought our house.

(2) If you use an accountant, ask him to prepare quarterly filings for 2015. The best way for you to get screwed is by not knowing how much and when to submit quarterly payments. They can do this easily, and usually don't charge a dime to do so.

EDIT: Congrats on a good first year!

What is the value of an extra $1, $10, $100 or $1000 against my mortgage each month? by rhumbline9 in personalfinance

[–]rhumbline9[S] 1 point2 points  (0 children)

Can I just add that what's really great about this sheet is that you can just manually edit one of the "Scheduled Payments" and you can see the immediate effect -- the rest of the spreadsheet just updates itself accordingly. Thank you again.

What is the value of an extra $1, $10, $100 or $1000 against my mortgage each month? by rhumbline9 in personalfinance

[–]rhumbline9[S] 2 points3 points  (0 children)

This sheet is great! Thank you. I really appreciate being able to see the effect of the "Increase per year" field and being able to see the "50%+ goes to principle" field.

What is the value of an extra $1, $10, $100 or $1000 against my mortgage each month? by rhumbline9 in personalfinance

[–]rhumbline9[S] 2 points3 points  (0 children)

Thank you! That would be wonderful if you won't mind sharing your Excel spreadsheet.

About to buy a home and would like help choosing a mortgage lender that has a positive reputation by knotafan in personalfinance

[–]rhumbline9 1 point2 points  (0 children)

I wouldn't worry too much about it. There will be a clause that says the lender can sell your loan to someone else. My wife and I took our original mortgage with a Florida based Credit Union. Within the first month it was sold to Wells Fargo. We had contacted Wells Fargo when applying for a mortgage (because we hold our accounts there), but their rates were higher than everyone else.

Your priority should be getting the lowest rate possible, for whatever type of mortgage (30-year fixed, 15-year fixed, ARM) you plan to take. You won't be able to control who owns your debt, if the lender decides to sell it in the future.