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family

House Made of Money
real estate

I May Be Moving Again!

by Evan

I get reminded about it every 6 to 9 months, but one of my favorite things of running a blog for the past 10+ years is the ability to rummage through my archives and put myself back in that situation.  Prior to writing this post it was kind of cool to take a look at some of my older posts about moving from my first home to our current home and all the things that went into it – selling my first home and the emotions thereof, and then subsequently buying our current home (along 5 or so updates during that time when I was blogging a lot more).

Our Current Home and Why We Are Selling

The Wife and I, love our current home, the area we found and the relationships built there.  Tonight, I got home about 6pm since I am only about 40mins from the office in Long Island rush hour traffic.   Sat with everyone for dinner, then had a 25 minute indoor lacrosse catch with my son as it was raining (future Evan may laugh but this weekend we made up a game called DaChrist with very specific rules which only seem to be getting more complicated and it has only been 4 days).  Then got back to our kitchen table for a game of Uno with both kids.  After a quick episode of “Billions” I am writing this post with a glass of scotch.

The home provides us ample space to host a large BBQ  in the backyard or NYE parties inside with probably close to 50 or so people in either situation without being tight.  All while being very affordable with regard to my income and ridiculous Long Island housing costs.  Even if I lost my job tomorrow, I am pretty sure keeping the house wouldn’t even really be an issue.  So why are we even thinking about leaving?  Back in February of 2018 The Wife couldn’t ignore what was happening in the local real estate market, and it started to make us really think about what we don’t love.  There are three reasons as to why we even have given any thought to leaving the home:

  1. Our street is busy – we moved from about 15 miles away which for Long Island might as well be 50 in some parts of the country.  As such, we did not know our street was a cut through street connecting two semi-busy roads.  This leads to some annoyance in having to worry about the kids in the front.  I get there are a portion of people reading this shaking their head.  No, I don’t live in the middle of Manhattan, my kids aren’t playing next to 2nd avenue, and yes, there are kids that survive that – The Wife and I just don’t want to worry about it as they get older.
  2. Property – Currently our home sits on a quarter-acre, and I get that the property may seem HUGE or TINY depending on your experiences.  For us, it seemed massive when we moved here, but when we started to look into adding a pool things got tight.
  3. Upgrading our home didn’t seem worth it – Given one and two on this list, The Wife and I chose to upgrade some things while leaving others alone.  We kept justifying, it wasn’t “worth” doing X because this wasn’t our forever home given number 1 and 2.

So weighing out our love for the home and the above negatives about it and given that early last year The Wife and I noticed a ridiculous upswing in the real estate market where we live it inspired us to take a hard look.  I put my home up on “make me move” but nothing really came of it, however, The Wife and I kept looking.  The problem where we live is there are just not a lot of home within the school district (which was a non-negotiable for either of us much to my father’s chagrin). Since February of 2018 I can’t even venture a guess as to how many homes we saw, but it had to be at least 60 to 70 seen in person (not just shared links with one another).

We put in offers, got counter offers, walked from some and were rejected on others.  One story in particular I have to tell on here, if for no other reason to memorialize it so I can remember it at a future time (like the red ball game):

  • The Wife and I see a house on Gina Drive (I will need this later when I google to see what happened to it lol).
  • The asking is $700,000.  There are a TON of trees on this particular property so I have a tree guy stop by and tell me it is going to be upwards of $40k to get the trees removed.  So I offer $650,000. I then have this interaction with the broker:

  • So we assume that this was dead – I wrote a post about being insulted about a real estate offer and kind of moved on.
  • About 2 or 3 weeks later, we get an automatic notice that they dropped the asking from $700k to $630k! LESS THAN WE ORIGINALLY OFFERED.
  • We contacted them again and offered them asking, $630k.  They turned it down and then took an offer a month or two later at $575k! As I wrote this post, I have no clue whether the broker was just terrible at her job, or if the homeowners were bat shit crazy.

Nonetheless to say this has been a process would be an understatement.

The New Possible Purchase

First and foremost, I say possible because of the date of this post we just have a verbal commitment.  I have my attorney talking with their attorney, and only have a voicemail into my engineer/home inspector.  I haven’t even started the pain in the ass that is applying for a mortgage.  There are probably 10 or 15 things that could go terribly wrong between now and me writing a post about “my new home.”

First the bad.  The home is not an upgrade in terms of actual size and structure. Actually, I would say it is almost the exact same home, maybe even a little smaller! The good, I am fixing all three of my “cons” above without changing much in my life.

  1. The home is on a quieter street.  It is not a dead end cul de sac, but nor is it something I have today.  For you to want to use the road you have to live close by, as it isn’t convenient for anyone else.
  2. I am getting a much larger property.  The lot is one-half acre, which means I am getting about 75% more backyard (assuming the structure and front yard takes up 25% of the total property).  Most of the neighbors have a pool without losing all of their grass.
  3. With the other two things fixed, The Wife and I are more likely to fix things up (and have already started talking about doing things to the home).

My Boss, who is like a friend and mentor to me, said it best – I am getting all the steak but very little sizzle and that should be okay! I am fixing major problems but the home wont’ have that “wow” factor.

The Finances of the New Home

As we started and lived through the process the most important thing to The Wife and I was that our financial life didn’t change too drastically.  We like our life.  Last year we went out multiple ski trips, traveled with the kids to Mexico and even took a trip to Ireland ourselves for our 10 year anniversary.  We just don’t want to feel like I had to take a different job or be house poor.

This house meets that main objective.

While I have never shared my net worth on this site, I have been very open as to my housing costs.  Our current situation is as follows:

  • $485,000 home with an original $385,000 mortgage at 3.375% for 30 years (fixed);
  • Taxes of about $12,500
  • HELOC has about $100 of interest owed monthly

All in I am looking at about $3,100 a month for housing.  The way I figured it is if I found a home for about $700,000 and I sold my house for $600,000 (net of broker’s fees) my life wouldn’t change all that much!

  • Current house, verbal accepted offer is at $685,000
  • I currently have $240,000 of equity in my home ($600,000 minus $330,000 left on the mortgage and $30,000 for my HELOC).
  • If I put $200,000 as a down payment and I get a 4% 30 yr fixed I am looking at a payment of $2,400/mo (assuming $40,000 went to waste, taxes, attorney’s fees, and some upgrades).
  • My Taxes are about $15,000 (up from $12,500)
  • So my monthly nut changes from $3,100 (P&I and Taxes + HELOC interest) a month to $3,650

$550 is completely doable and this doesn’t even take into account that my daughter enters kindergarten next year which clears up $475 a month!

Change is Scary

Any kind of big move like this is such a high risk, high reward type of decision.  I do not like those types of decisions, but we are going to give this one a go! I’ll update accordingly.

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my children with santa
Estate Planning

The Hardest Decision For Most Couples is Choosing a Guardian

by Evan

I have been practicing in the estate planning world for the past decade or so, and I have found that the hardest decision that most people have to make is choosing their guardian for the children. In fact, it is so difficult that prior to meeting new clients with children, it is the only decision I make them come to the meeting prepared to answer.

I am confident I can walk a family through every other issue regardless of family dynamics, net worth or complicated tax matters, however, watching a couple determine/fight over who can care for their young children is often too much of a speed bump in the process.

What Happens When You Don’t Choose a Guardian?

Choosing a guardian is one of the most, if not the most, important decision you’ll make during your estate planning meeting.  If you fail to have an enforceable plan (i.e.  a duly executed Last Will and Testament pursuant to the laws of your particular State) then it is going to be up to the court to listen to your family fight over your children! After all the heartache and money spent to get to the other side then you can only hope that the relationship is strong enough so the losing side will still be able to be involved in the child’s life.

In my particular case, it would be my parents and my wife’s parents spending a ridiculous amount of money arguing over who has the pleasure of raising my minor children.

Things to Consider When Choosing a Guardian

While you are the only person that will know who you want to take care of your children there are some items you should consider prior to naming him, her or them.

Where do they Live?

Is your chosen guardian in a different country? There is no guarantee that a court is going to allow you to relocate an American Citizen 3,000 miles away in a different country out of the jurisdiction of an American Court system. Maybe you want your child to live in a particular location because of roots, lifestyle, etc.  Is the chosen Guardian willing to move to where you are?

Is Religion Important to You?

Are they as religious as you are? Are they more religious? Is that important to you?

Do They Have Children of their Own?

It may not be a great idea to give someone who has never had a child 3 kids under the age of 4.  Similarly, if they have 4 children of their own, can they really take on 3 more? Are there age differences between the children? Do all of the kids get along?

Do they have the Means to Take Care of your Children?

If you have children and no life insurance, then you are being irresponsible!  Recognizing that there are a ton of irresponsible people in this world you have to ask yourself i the person you are naming can raise your children in the lifestyle you want them be raised in.  I am not saying money is the end all be all, but when you deciding whether to raise another person’s children it is going to at least going to run through their mind prior to accepting the appointment.

 

 

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marriage rings
Random

How to Have a Happy Marriage When You’re in Business Together

by Evan
marriage rings

linked gold wedding rings on white background

Marriage is wonderfully challenging at the best of times, but running a business together can present many more challenges you might not have anticipated at first. The added pressures and responsibilities that come with running a business together can start to take a toll on your marriage. This is completely normal and many married couples go through this when working or starting a business together. Does this sound like you and your partner? Don’t worry, there are a few things you can do to keep your marriage and business running smoothly.

Recognise your partner’s achievements

According to the Journal of Personality and Social Psychology, people in relationships are more satisfied when they celebrate their partners accomplishments as if they were their own. Making the effort to recognise your loved one’s achievements, whether they are work-related or home-related, could help to keep your marriage healthy.

Opposites attract – work it!

You might notice personality traits in your partner that you had no idea existed until you started working together. They might do things differently to you, or might even have a difference of an opinion on something at work. Although you might not necessarily agree with their opinions or ways of doing things, it’s best to put your differences aside and think about the potential benefits. Different opinions, and a fresh take on things, can be great for your business and your marriage. After all, they do say opposites attract.

Separate tasks and projects

Creating boundaries at work, such as assigning yourself different tasks and projects, is a great way to keep your marriage happy when in business together. If you’re spending too much time together at work, you might not appreciate the time you spend together outside of work. Working on your own projects will give you a great sense of achievement, and your own space at work.

Make personal time

No more late nights at the office, it’s time to dedicate some time solely for each other. Start with switching off your emails for the evening, putting your phone on ‘do not disturb’ and disconnecting for a while. This way, you can really listen to what your partner is saying.

For entrepreneurs, switching off from work can be hard, especially when there is work to be done. Delegating tasks internally will allow you to get away from work that little bit earlier and spend some more quality time together.

It could also be beneficial to invest in external support from other companies, to help out with the likes of logistics, HR and finance. Hiring accountants such as Alexander & Co, to handle all of your accounting and tax needs, could free up some quality time for you and your partner.

Talk about it at work

When you are not at work, try not to talk about work if possible. Leaving your work-related frustrations until you get home is not healthy for your business or your marriage. If something is bothering you at work, talk about it there and then with your partner.

Is it possible to have a happy marriage when you work together?

Simply put, yes. With minimal but tactical effort, you can run a business with your partner and still have a happy marriage. Don’t let yourself get caught up in the madness of running a business. Take a step back sometimes to appreciate your partner outside of work, and make sure you’re both on the same page. If you set down some guidelines to follow, you’ll both know exactly where you stand, which will pave the way for a future of happiness, both at home and at work

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Random

Are you Ready to Own a Dog?

by Evan

People are either dog people or not. You love them or you hate them. For those of us who do love dogs, you want nothing more than to have one in your life. Family dogs are true companions that can add so much to your home. The only problem with them, is that they are a lot of work. A decision for your family to own a dog is a very big one. There are many factors to consider when making this decision. Unfortunately just wanting one isn’t enough. It is best to think through the following items before pulling the trigger on purchasing a dog.

Financial

One thing people do not realize when it comes to owning a dog is that they are quite costly. It is important to assess your current financial situation to see if it is even feasible. What costs do dogs require. Well the first obvious cos is for their food and daily living. You need to purchase their food. You will also need to purchase equipment like leashes, owls, shampoo, toothbrush/toothpaste, treats, toys and cages. Besides that you will need to fork up a lot of dough for medical expenses. Puppies and dogs require many vet visits that are routine and also costly. Things like shots and medications are standard for dogs, but if you are faced with a dog that requires additional medical attention than the medical costs could be substantial. Some dog owners elect to invest in pet insurance to help with these costs. That is another monthly expense that can add up to a hefty sum. Some may need to hit it big on the best online casinos in order to afford their pet. Either way, your financial situation needs to be assessed to see if you can handle these sort of expenses.

Lifestyle

You also need to review your lifestyle in your home. Are you working all day? Do you have kids? Do you travel? All of these factors need to be considered. Dogs require time, attention, exercise. Different breeds require different degrees of these things. It is important decide if a.) you can adjust your lifestyle for a dog and b.) the breed your selecting fits within your lifestyle. For example, if the breed you are contemplating requires a lot of exercise and you have a busy schedule, than it may not work out. If you have kids than it is imperative that the dog you are bringing into your home is good with children. If you travel a lot than you may need to cut back on your travel or come up with a plan for who can watch your dog when you are away. These are big factors in deciding on whether you are ready to own a dog or even a specific breed.

As previously mentioned, dogs are great and can add so much to a family. However, they are a lot of responsibility so it is something that should be thought through for many reasons as discussed above.

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Random

Saving for a Family Vacation

by Evan

I am writing this post right now from my balcony in Mexico drinking a cerveza…fine by the time I hit schedule I should be a few beers deep.  My boy needs a few minutes out of the sun since he was rocking the butt-whiteness of a New York winter before coming down, and my daughter and The Wife are napping by the pool so I have a few minutes to kill to write a post I have been thinking about this I booked this trip.

The Wife and I try to go away on a bigger type trip once a year and we only use money that has previously been put aside for the trip.

Breaking Down a Large Purchase into Weekly Savings Amounts

The Wife and I have two accounts that we save small weekly amounts to without even noticing the balances until they are needed (family vacation and home emergencies/upgrades).  The below chart is not rocket science, it is just taking a total and dividing it into possibility palatable weekly amounts.

Total Amount Weekly Savings
$1,000.00 $19.23
$1,500.00 $28.85
$2,000.00 $38.46
$2,500.00 $48.08
$3,000.00 $57.69
$3,500.00 $67.31
$4,000.00 $76.92

I am not blind to the fact that a family vacation may not be a luxury that some can afford, but when you look at those weekly numbers it should question some people’s priorities.  If you are eating out for lunch 3 times a week at an average of $12/lunch you are right in line of a $2,000 vacation without really making that much of a change in your lifestyle.  This same chart could probably be applied to debt, but I am in too nice of a place to worry about that right now!

The Main Benefit of Saving Weekly for a Family Vacation

Beyond the vacation itself the main benefit for me is by doing it this way I remove all the pressure of actually having to pay for the trip.  When The Wife books our trip I just take it out of that account and there is no four digit bill to come home to, no large amount that has to come out of savings to pay off the amex, and I feel zero annoyance with regard to the large purchase.

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