No Limit IRA accounts – Here’s How

No Limit IRA accounts – Here’s How

Each year the federal government sets limits determining the amount of money that can be contributed to an IRA account, this past year the limit was $5,500.  If you are married, you and your spouse could each have an account raising your family limit to $11,000. This number is still smaller then I would prefer, so I developed a method for contributing more. What? That’s impossible you say, and technically you would be correct. I didn’t open a 3rd account, but I did find a way to raise my contribution…

Financing Rental Property – Find a partner

Financing Rental Property – Find a partner

Our house on Madison St. was turning into a cozy little home, and our first rental property was reliably sending a rent check each month. I had attempted to convince my Dad to partner with me, but something held him back.  He just didn’t want to be a landlord, and honestly I think tenants would drive him nuts, so this was probably wise.  Thus, I thought our partnership was off.  Little did I know, but my mom was working on my behalf.  My parents having paid off their mortgage, were…

Marriage and Money

Marriage and Money

Whenever I needed cash, I just wrote myself a check, took it to the bank and cashed it.  I was in my mid 20’s and had never owned a debit card.  I addressed envelops, licked stamps, and wrote checks to pay my bills.  The year was not 1955, but rather 2009. My then girlfriend, now wife thought I was dimwitted. I didn’t own a computer, which is a prerequisite for online banking, thus my hands were tied (I hadn’t considered buying a computer).  I had a system that worked for…

Real Estate Report Dec. 2016

Real Estate Report Dec. 2016

            My real estate portfolio currently consists of 6 rental units.  The monthly reports will highlight the income and expenses associated with each property as well as the total monthly profits or losses. December 2016 House 1: $950 House 2: $825 House 3: $850 House 4: $850 House 5: $850 House 6: $650 Total Income: $4,975 – Ahh, if only that was all profit.  Now for the expenses. Mortgages / Loans: $2,878 Repairs: $1,015 Monthly Cash-flow: $1,082 (this is a pre-tax number) But wait, there…

Savings Rate vs. Rate of Return

Savings Rate vs. Rate of Return

Two trees grow in a forest, one is large and mighty, its trunk rising from the earth like a Greek column, its branches heavy, strain outward, holding up the sky.  The other tree, small and wispy, its trunk pushed this way and that on every waft of breeze while its branches sag under the weight of the clouds. The large tree shows no outward appearance of change from year to year, but its massive branches, covered in thousands of leaves soak up energy and add copious amounts of mass to…

Where was the money going?

Where was the money going?

Our family goal was to eliminate over $80,000 in student debt by December of 2016. In my last post Debt Demolition: Refinance causes change of course.  I explained why we changed the focus of our project, but I also showed that if we would have stayed the course, our loan would likely have been eliminated this month, only one month after the original goal target.  Honestly, I’m amazed that we were actually this close to achieving our goal.  In my original calculations, I was to be working during the summers…

$80,000 Student loan – Why I could’ve paid it off, but didn’t

$80,000 Student loan – Why I could’ve paid it off, but didn’t

Before starting this blog, I had been writing in my notebook, with the main purpose of creating accountability and motivation to eliminate the student debt that my wife and I had accrued.  As mentioned in my other Debt Demolition posts, our student loans at one time totaled over $80,000. The lions share of this debt, at over $70,000 was acquiring interest to the tune of 7% per year. This was a financial drain that was not only washing away our finances, but was also a source of discouragement, as the…

My Money-do list for early 2017, 9 Things

My Money-do list for early 2017, 9 Things

Your list my look totally different from mine, the important thing is to analyse your particular situation.  I’m not big on New Year’s resolutions, nor do I put much stock in turning the page on the calendar.  However as one year turns to another, it is a convenient time to take a look at your finances and take action for the future.  These 9 items are of importance to my family and our current situation, I hope to address each one over the following weeks, and as they are completed…

Two Incomes = Lifestyle Freedom?

Two Incomes = Lifestyle Freedom?

As I sit here writing, my wife is baking some bread in the kitchen, and my son is napping in his crib.  It has been a wonderful Christmas week in which all of us have been able to be home together.  As a teacher, I’m fortunate to have this entire week as a paid holiday.  My wife however, receives no such benefits, she has taken the week, unpaid, just so that we can all spend time together. This luxury is only possible, thanks to taking a page out of our…

How to Evaluate a Potential Investment Property

How to Evaluate a Potential Investment Property

My sister recently went to look at a potential investment property.  This visit was followed by a note in my inbox asking for my thoughts on the property.  In my opinion, evaluating a property for potential investment can be decided mostly by numbers, but the final key piece of the puzzle requires the property to be evaluated based on curb appeal.  Some properties fail the numbers test, and are immediately discarded, while some pass the numbers test but fail the curb appeal, and finally some properties pass both examinations, and…