Getting Ready To Not Count The House Anymore
In the last year I have watched our retirement and non retirement accounts crater. They are crawling back but nowhere near what they were last year, especially when we remove the cash contributions of that same period.
In addition, we've seen the fair market value on our house plummet by about $200,000. I estimate that based on the fact that the houses listed around here no longer sell, and by what Zillow tells me.
So why do I keep our house on the Balance Sheet, especially since it's more and more becoming a personal use asset as opposed to a working asset?
Since I only put working assets on the Balance Sheet, it's making less and less sense to keep the house on there.
So I think starting next month I will have 2 parallel numbers: 1 with the house's cost basis and 1 without.
I really love our house so I don't regret us buying it, but I really have to change my thinking about it's purpose.
I have to really start to realize that it's a personal use asset that we will see a 'refund' from, someday, in the form of us selling it, but that it won't likely every be a wealth creator for us.
The assets that we need to focus on are:
1) Retirement accounts
2) Non-retirement accounts
3) Rental house
4)HSA
Those are going to start to get more of my attention when I think of our overall net worth.
Once we get the kitchen remodeled in a couple of years we are done with this house, as far as big projects are concerned, and so hopefully that will make things a little more equal with respect to money we have put in vs. money we will ever get back.
Oh Crap Our HSA Is With Chase!!!
I hate Chase. It's the crappiest customer service I have ever experience in my life. Just thinking about Chase gives me shudders and a massive headache.
Exaggerating?
Only slightly.
So imagine my dismay when I was just now doing the Balance Sheet and realized, for the first time, oh crap,
our HSA is with Chase.
I'm not quite sure how I overlooked this for the last 6 months.
When we set up the HSA, it was at the same time as converting to a HDHP, both through Bear's work.
We didn't have an option on the associated HSA, and so maybe that was why.
When I log in to look at the HSA, it has the insurance provider's insignia and information, not Chase.
So maybe that is also why.
But when I looked online to find out how to designate a beneficiary, I couldn't find any information on how to do so.
Of course not.
So I called them (Cigna, the number on the debit card).
They said I'd have to talk with Chase.
Crap.
So I called them. They didn't have my name on the account, just Bear, meaning Bear would have to call them.
He did.
Bless his heart, but he didn't quite understand.
'What am I asking for?''
'We need to designate beneficiaries'.
To which he got The Run Around Of His Life. I was there, trying to help, but only frustrated him, because he was being nice and patient and I had my Bitch fully on (No, I Don't Mind Saying It. I Hate Chase Because Chase Sucks).
They had him go to a totally different website, the main Chase HSA website.
They didn't know where to go from there, kept putting him on hold.
"Go to forms, here, might be there", I said.
Bear did, and lo and behold, a Beneficiary Designation form.
Guess what?
It only asked for Beneficiaries.
There was no mailing address, no account information...so how the hell are they going to know who these beneficiaries are for?
When I finally got the phone from Bear, I asked, 1) What's your process for this, because it looks like you don't have one and 2) What confirmation will we receive that you have designated these beneficiaries for this HSA?
The answers were beyond precious.
"Well, just put a note on there to tell us what acccount this is for, and we will file it with your other account information."
OMG did you get that?
What the Eff, am I living in 1984 and somebody forgot to tell me?
Chase, you do Kafka proud.
AGAIN.
July Balance Sheet: Up $4587
Not as exciting as the 5 digit increases of the last several months, but still, going in the right direction.
Actually it would be up by $8587 but we pulled $4000 from non retirement accounts for the LR2.
Bear will get a bonus next month which will help get the non retirement accounts increase, but it will be negated by the new windows (last batch of windows? $7200).
But, he did get some stock vested, so that takes it back up.
All in all things will balance out to where the non retirement accounts will be in fine shape, and hopefully we will have good savings in the Fall and Winter.
We likely will use the big January bonuses to pay off the LR2, but we will see what things look like when we get there.
Everything is pretty much on autopilot til then.
We continue putting money aside for IRAs, taxes, and home projects.
We don't have any significant home projects after the windows get installed...until next summer.
Next summer the exterior will be painted and black shutters will be added.
But until then, no hits to the non retirement accounts for home improvement.
Which is nice.
Because looking at how much our house has cost us so far (I use cost basis on the balance sheet, not fair market value), we are at a wash if we sold today.
But we are here for awhile, so there it is.
I question the value of keeping the primary residence on the balance sheet. It's sort of silly, really, because it's more a personal use asset than a working asset, especially since now we likely are not going to be moving to Denver, thus triggering the sale of this house and buying a house there for cash.
I think at this point I keep it on there because it represents just less than 50% of the balance sheet; significant.
And, perhaps, I feel that if I took it off of there well it just looks paltry and depressing.
So for now I'll keep it on there, because it does represent that we are paying down the mortgage and getting this house back in shape....thus giving us the option of selling, if we want to, someday.
Another Payday Closer To Goals
I know I write about this alot, but
I really love paydays. I love seeing goals getting closer, or met.
This payday was the usual suspects, no unusual expenses.
Oh wait, forgot about the ceiling that needs to be repaired at the rental house (sigh).
But here's what we spent this one on, and this is after 401k, various insurance plans, HSA, United Way, etc.:
$950 Set-aside for mortgage (split between the 2 paydays for cash flow)
$70 Electric bill (2 months worth)
$199 Water/Sewer/Garbage bill (grrr....2 months worth)
$54 Cell phone (I need to get data plan so I stop paying per text message)
$130 Bear Fund
$100 Missionary Friend in Africa (1 of 2 we support)
$500 IRAs (yay!!!)
$500 Set-aside for property tax (btw, where's that refund check? grrrr.....)
$178 Homeowner's Insurance (incl. Earthquake Insurance)
$194 Auto and Rental House Fire Insurance
$550 Rental House Ceiling Repair (grrrr......)
$10 Gas bill (service account charge, don't use any gas in summer)
$60 French tutor
The rest is set aside for everday living and for windows. I put a good amount aside for windows so we don't have to pull full amount from non-retirement accounts.
I feel pretty good about all this stuff, and definitely hope to not have any more things happen at the rental house for awhile.
For some reason this year we have had 4 events happen there....we can go months with nothing, sometimes years, so I shouldn't complain.
Alaska Airlines: Awesome Cancellation Policy!!
I've been planning a trip to see some relatives in a couple of weeks.
I emailed a relative with the dates and logistics, getting everything nailed down, making sure I had the right dates for the get together and such.
So yesterday morning I got online and bought my airline tickets via Expedia.
Then called Avis to make my car reservation.
Done!
Emailed the relatives and that was that.
Or so I thought.
Before I went to bed last night I checked my cell phone for any messages.
There was one from the relative I had been coordinating the trip with.
He had called to let me know he messed up on the dates.
It was too late to call him back, as he is in a time zone 2 hours ahead of me.
Crap, now what?
"Why don't you call to cancel? There's usually a 24 hour policy for cancellations", said Bear. I was quite frustrated and told him that it was non-refundable with a $75 change fee, and no cancellation.
'Why don't you just call and explain? You never know', continued the unusually-optimistic Bear.
So Eff it, I called Expedia, totally expecting a Kafka moment.
And that's originally how the conversation went. 'This ticket has a noncancellation policy with a $75 change fee."
"But wait...."
Well guess what?
Alaska Airlines, whom the ticket was with, has a 24-hour cancellation policy (thank you Jesus!).
So...the rep was able to cancel it, no penalties, no fees.
I love it when something turns out like this, when you are delighted by a company.
I have always liked Alaska Airlines but definitely like them even more now due to this experience.
A Conversation With My Postal Carrier
While giving Grover his first bath (that's him above, and now you can see why we needed him Hint: angle), our postal carrier was walking by.
'Nice car!!' says he.
'Thanks" says I.
'How you like it?' and on it went. Told him that I ended up selling the Acura.
'How much you ask get for it?' to which I told him '$1148' and he just about fell down.
'Wha? You could have gotten much much more for that.'
Yeah...the fact that it was gone within 12 hours of posting pretty much tells me that.
It was fun washing Grover for the first time, but I can't figure out how to wash the roof of him, he is much taller than the Integra...hmmm....
Chase SUCKS, Hates The 4th of July, And Wouldn't Know A Pine Tree If It Walked Up And Bitch Slapped Them
Buying up a 1oo year establishment in distress, then putting up patronizing billboards (a guy carrying his mountain bike? a silhouette of the Pike Place Market sign?) that clearly show
you got here 5 minutes ago?That's one thing.
But altogether
pulling out of sponsoring 4th of July fireworks, that the company you bought (WaMu), sponsored?
Definitely not the way to win over the hearts and minds (and $$$) of the Pacific Northwest.
You EFFED up 2 prior mortgages I had in the past (when you had the integrity to still call yourselves Chase Manhattan) by totally screwing up the balances owed when I paid them off early (Kafka would be proud of you boys), so
I learned my lesson 6 years ago.
"We're Here For You"
"Washington's New Bank"
It's a shame we can't drop kick your collective arses back to Manhattan.
CFP Live Review: Kaplan vs. College for Financial Planning
I've taken a 3 week break (since my Estate Planning final), now it's time to start studying for the Real Deal: The 2 day CFP board exam, November 20-21.
I have pretty much lost all faith with the College for Financial Planning; their instructors are not well qualified, the material is sorely inadequate, and the core instructors (in CO) are not receptive to student questions (whenever I called one of them, I wasn't well received).
So after the Estate Planning class, I decided to look at Kaplan instead.
Kaplan isn't offered in this area, only College for Financial Planning, so I went with what was available to me, but even then I don't feel that I was adequately prepared for the board exam, nor that the instructors were really in synch with what would matter for the exam.
Although Kaplan doesn't offer the courses here, they do offer the live review.
I am so thrilled about that. Now I don't have to figure out what city to fly to for a week to take the live review, I can do it right here!
And be able to reference all my coursework from the prior courses I took leading up to the point.
Kaplan is more expensive, but they are light years ahead of College for Financial Planning (Qualified instructors! Live Chat! Over 4,000 Test Questions! Instructor Blogs/Articles! A web site not stuck in the 90s!).
It's $1348 for the live review and it's another $595 for the 2 Day Board Exam.
So I will be paying another $1943 before I get on the other side of all this.
It's all worth it, but I will be glad to find out it fully prepared me.
I really want to pass this thing on the first try and want to do everything I can to prepare myself for that.
Christopher Steiner's Fantasy
Some random person who observed, just like all the rest of us, gas prices creeping up last summer, decided he was all of a sudden an expert on urban planning, sociology, psychology, and anthopology.
He (of course) wrote a book with an admittedly catchy title, "
$20 Per Gallon: How the Inevitable Rise in the Price of Gasoline Will Change Our Lives for the Better".
The theme? That we will all be driving (if at all) the equivalent of SmartCars and living in apartments near light rail lines, seeking out our own little versions of urban bliss.
While this is every EcoLeftie's wet dream, I highly suspect this will not happen.
Of course, if you think about it, we may have $20 per gallon gas. But likely not for 40 more years, and it will likely be more a function of inflation, not so much of demand (though yes, of course, demand will be a factor, as it is, in any price).
Most people live in an unattached single dwelling (read: house)
because they like having their own space. They like having their own patch of earth (read: backyard) to put their toes into and to nurture. They like the serenity, quiet, and peace a less dense area provides.
So while Christopher may wax on and on about how people will move into walkable neighborhoods and places close to rail lines as a matter of course, the reality of what will happen doesn't come anything close to that,
because people still desire their own space, and will continue to seek it out as a high priority.People who prioritize 'walkable' neighborhoods, 'denser' areas, and light rail
are already living in those places because they are already available in most cities.Don't get me wrong, I love density and urban environments: I have lived in the Seattle city limits for 20 years, with one 9 month gap to live in Redmond, which was my own little anthropological experiment on myself to see how I like it (I didn't, but I suspect today's Redmond, which is becoming more and more a 'place', would have been more appealing).
But people who want quiet, space, nature, and don't prioritize urban experiences
aren't all of a sudden going to seek them out.He 100% gets it wrong when he says that people who live in less dense areas won't seek a more fuel efficient car over moving to a denser, urban area.
Are you kidding? Of course they will buy a more fuel efficient car for their most common long mile trip (likely commute) over moving next to a light rail line.
It's a matter of lifestyle and values, and those things aren't going to be abandoned nilly willy simply because of the price of fuel: they will instead buy another, secondary vehicle for their long trips.
They will continue to live and seek out places that align to their core values and to their family's lifestlye, and will adapt their transportation to accomodate that, just like they always have.
I've a cousin who has a 2 acre property in the country, but has to drive one hour each way to work in downtown Tacoma.
Did she sell her property and move to downtown Tacoma? Did she all of a sudden decide the country wasn't for her, that actually she was an urban girl at heart and wanted that lifestyle for herself?
Of course not, don't be silly. So what'd she do? She bought a little 2 door hatchback that gets over 40 mgp highway.
It's silly to assume people are not going to do the same, when the solution is so easy (just buy a little car to get to and from work), in contrast to radically abandoning every facet of one's life just to be near light rail and walk down the block to the local coffee shop.
It's not the other way around: logic is totally remiss in assuming otherwise.And this is how Christopher Steiner's 'book' is one big fat fallacy and fantasy.
I Hate Waiting For Money To Come In The Mail
A couple of weeks ago we got a letter from the county's tax department.
They had computed that our property assessment was over and, thus, we had overpaid on property taxes as a result.
And so a refund was due to us.
Great!
Always up for unexpected money!
And...that was a month ago....and....still waiting.....?
It's for ~ $450, and I will likely put it in the non-retirement accounts, as we pulled $4k from there for the LR2.
Email From Buyer aka Integra's New Owner
It was nice to wake up to this email:
(Finance Girl),
thanks, got the bill of sale. car is in excellent shape. you took real good care of her and i shall do the same. if my daughter doesn't like the car, it will become my daily driver, but i know she will love it. A fun car to drive. drove it to work this morning and "tested" her out on the back road curves and the freeway. very nice....today after work, she gets a wash and wax.....thank you again...
(New Integra Owner)
I Just Sold My 92 Acura Integra
I only listed it this morning; it sold by 10pm. Had 8 people email me after I listed it, and I must have (obviously) listed it for a good price ($1148), as I had so many interested parties.
I really hope it's going to a good home.
I think it is. The buyer was very very enthusiastic about it and had many compliments about it regarding how I have taken care of it.
I let him know that I am selling it because of the hill and the driveway, and that was that.
I have never sold, nor bought, a used vehicle before, so it was a bit esoteric.
But they (buyer and his wife) really like it.
Good-bye my little Integra. I cried as you were driving away, and I really hope you go to a nice home.
I think you are.
Increasing IRA Contributions
We currently max out Bear's 401(k) (combination of pre-tax and post-tax) and contribute $500 a month to our IRAs.
That's $16,000 in the 401(k) and $3,000 each, or $6,000, in the IRAs.
$22,000.
Since the max allowed is $6,000 each for IRA contributions, we are only at 50% of what we could be contributing.
I really like the idea of maxing every avenue we have for tax-advantaged retirement accounts, so in a way I feel like we are not taking advantage of everything we could.
For Tax Year 2009 we also started our HSA, which is another leg in our retirement strategy, in addition to the IRAs, 401(K)s, and the (income producing) rental house.
We have used the HSA for medical needs (that's what it's for) but so far we still are coming out ahead than the traditional co-pay plan in which we pay for health insurance (with a HDHP, which you need if you want an HSA, employer picks it up, at least Bear's does).
So I think the retirement savings goal I will set for us is to increase the contributions by 25%, or $250 a month, to $750 a month.
Used Car Quandry: Sell vs. Donate
The Kelly Blue Book value of my old car is $1455. I suspect I could get at least $1k for it since it's in such great condition and is low miles for it's age (170K for a 17 year old).
Since it's Japanese model they are somewhat more valued than same age for an American car.
But, I could get at least $500 for donating it, and could use that for a tax deduction.
Overall I would make more money by selling it, but by donating it the charity makes money off the sale, not me, which I like.
Separately I am nervous about selling such an old vehicle. It is fine and has no issues, but what if something happens in a month, a year, a week?
Am I liable? I really don't want someone coming after me if I sell this vehicle and something goes wrong with it and they come back to blame me.
I don't have a problem so much with listing it and showing it; that part I am fine with and don't see it as too much hassle.
But I don't quite understand my responsibility as a seller for something as complex as a car.
