All Forum Posts by: Dave G.

Not sure why you're asking since you've already been in multiple transactions with no realtor. What is different this time??

Zip code?? You keep referencing area code...

Admittedly, I have never used hard money for anything since it is stupid expensive (like a loan shark). But if you have to use hard money for an entire purchase....investor beware...

How about you just save up for the down payment??

@Thomas Campbell I see how your questions should really be answered/confirmed by a professional. But my thought is that if you retire from Company B then whatever your 401k balance is at Company B is what you can access penalty-free. So if you had time this year to do a rollover from Company A to Company B prior to separation of service from Company B, you will have the benefit of accessing penalty-free all of the savings from both Companies. 

I think you and I have much the same philosophy on personal finance and investing. I do all of my own investing and money management and will not pay an AUM fee or be hustled by "financial advisor" that is really just a salesman. Such a sleezy industry. So my solution is to purchase services either flat fee or pay by the hour, similar to hiring a lawyer. 

For example, I found a financial planner in MI that I hired to assemble and analyze a full plan for my wife and I, using data which I provided. He has no access to any of my accounts and has no direct involvement in my finances. It is all advisement from him, the actions are for me to execute. The fee was $2900 for the plan and multiple advisement sessions. So it is a finite agreement with a flat fee. I can hire him for subsequent advisement as needed for additional fees, which I may do. My CPA of 12 years is also a great resource.

@Jose Chavez The way you ask this question is scary. As a landlord, you should know what to do or where to get help on this type of situation before it happens.

Learn the applicable IL laws and processes. Read the lease agreement. Or hire a professional. Whatever you do, you need to do it fast as every day you wait you might be losing 1/30th of your monthly rental revenue that you'll never see with an eviction.

@Blake Schreckhise I have not had experience doing this, nor will I. I've seen the concept explained and it looks pretty frickin' dumb to me. A lot of financial gymnastics to maybe save a trivial amount of interest. Also exposes the homeowner to risk as the HELOC can be called anytime, and terms can change any time. Also, the interest on a HELOC these days is almost always higher than a fixed rate mortgage.

So IMO it's basically a snake oil pitch to the inexperienced, ignorant and impatient. Recommend you steer clear of it.

Assuming your answer to my question is yes. The IRS exceptions to the early 10% penalty are detailed on their website, link below. I just retired in 2021, which is the year in which I turned 55. I triple-checked this provision before doing so. I specifically checked with my CPA and he confirmed it is a viable penalty-free retirement funding option. I retired from Boeing, and my 401k with Boeing is the account that I am able to do the penalty-free withdrawals from. As a contrast, my wife retired (was laid off) during early covid 2020 in the year she turned 54. She is unable to do penalty-free withdrawals from her 401k since it did not meet the IRS age requirements.

Regarding your specific question of what professional to consult with, I think either a fiduciary or a tax advisor, both of good quality, should be able to help you.

https://www.irs.gov/taxtopics/...

@Thomas Campbell are you talking about IRS rule allowing the ability to access 401k funds penalty-free prior to 59 1/2 years old?

And as mentioned by several folks in this thread, it goes beyond the trades. It's work and work-ethic in general. 

When I was a kid I shoveled driveways in the winter for $$. In the summer I cut grass and washed neighbors cars. I competed with other neighborhood kids for these jobs, I wasn't the only one. This was a fairly nice middle class neighborhood. My neighbors were happy to hire me, and paid me pretty good. This was all up until I turned 16, got my drivers license and a job at a gas station. I learned at an early age the value of work and how to save money. This was normal back then.

In the last 20 years, my wife and I have lived in 3 good family neighborhoods. Not once during this time has a neighbor kid come to my door soliciting services of any kind. I've only seen a flyer posted on the community mailbox 1 time for a girl offering pet sitting/walking (good for her). Nor have I even seen the neighbor kids doing work around their parents home or washing their parents cars. What do all these kids do for money? Do their parents just give them money? I suppose some get PT work after school when they turn 16, but I had been working for years before I got to that point. 

I guess everybody just hires landscape crews and does the drive-thru car wash now. Or there's app for all this manual labor stuff.