Philip, keep the primary mortgage for now and focus on reducing the rental mortgages. Have you tried working with a mortgage broker to see what your options are? Also, are you sure the rental mortgage qualifies for HARP since it's not a primary?
I would be leery of relying on a HELOC for the entire amount since interest rates are likely to rise later this year. Mortgage rates are low now, so refinancing those at 4.75 might be a better option and paying them off as quickly as possible
Phillip, certainly the primary would be the LAST one I would pay off. As for using a HELOC, rates are only likely to go up so HELOCS can leave you in a situation where you are paying much higher rates than you expected.
Phillip, in general I think the rates you have look pretty good for rental property.
Philip, my first impression is that the top three rates seem high in this environment, so look to refinance where you can. Also, consolidation is a good thing, unless each of these properties are in their own LLC and you need to keep them separate.
Not Married, yes, it happens more often than one would think! Best of luck!
Lolita, your 401(k) and IRA are tax-deferred accounts. Unless you have made withdrawals in 2014, you probably don't need to claim anything. You pay the taxes on these accounts when you take money out.
@ Lolitta Gevorkova - Unless you took a withdrawal or made a contribution, you don't need to report anything for the traditional IRA because it is a tax deferred account.
Lolitta, no. both the IRA and 401k are tax-deferred investments. No taxes are due until money is withdrawn. Separately, consider rolling the bank IRA into your current 401k (if they allow) since is sounds as though the investment options are better than what the bank is offering
Lolitta, as earnings in tax deferred accounts do not have to be reported (until you start taking distributions) you will not have a form on the IRA and nothing to report via your tax return EXCEPT contributions you make for the current tax year (might not show up on the return but it is part of the process as the software will let you know if you CAN make such a contribution). Now, you might consider changing from a bank to a brokerage. Banks are usually a last moment choice for people who are tying to get their money in by the deadline. Vanguard offers target date funds that only require $1000 initial investment.
Lolitta - you only pay taxes on an IRA when you make withdrawals. If this IRA was funded from pre-tax dollars (i.e. you were able to deduct contributions from your income) then you won't receive a document from your bank. If this IRA was funded from after-tax dollars, however, you do need to keep track of "cost basis" - since only the growth on after tax IRAs is taxable, not your original contribution.
Oh MIchael, rolling it over into the current 401K is a good alternative.
Almost Done Working: Both a 401K and a 403b can be rolled into an IRA when you retire. Are there different/better investment options with the 401K?
Almost, a 403b and a 401k are almost the same. Often a 403b is thru a not-for-profit or similar entity that neither matches or has a profit sharing, this is the main difference. 457s CAN be different because some are non-qualified (i.e., just a deferred comp not eligible for up-front tax breaks).
@wreckon95: yes, and it's excellent! keep the fees low
"...not in their own LLCs yet." LLCs are great for asset protection and I recommend them for all my clients with rental property.
You're welcome Philip! agree with Bobbie and Pat
Phillip, it doesn't cost very much to do this. I (and clients) use 4inc.com online. If it is a one person LLC it will be reported on your regular 1040.
@Larry, your question should be directed to an Estate Attorney. Also, the rules for stretch IRAs are being reconsidered by the current administration
Larry, be wary of any "product" that tries to circumvent rules. It may be best to confer with an Estate Planning attorney who is up to speed on the latest laws.
Larry, it seems that most of us are unfamiliar with this. Do know that you can leave a trust as a contingent beneficiary and IF you use the proper language in the trust, the required minimum distributions do not have to be distributed to the beneficiary but can be held for distributions as directed by the trust (at a certain age for instance). PROPER LANGUAGE is a must.
Advise about annuities: Many annuities end up being a very expensive way to invest because they pay a large commission to the broker. How secure is your pension? Some have turned out to be underfunded these days. You can go to the PBGC.gov website to see the status of yours. Assuming you're still working, are you contributing to a 401(k) and/or IRA?
Advise...: Annuities, in concept, may be good in that they potentially can provide a stream of income; however, many annuities have very high expenses and surrender (back-end) charges that make them very unappealing. Your hunch is correct, you can make it by simply investing in a well-diversified investment account.
Advise about annuities...you already have an annuity and it is your pension. This means that you have certain income to pay core expenses. I would suggest that you avoid any kind of annuity that invests in securities or bonds with additional money you have on hand. Usually the expenses (and "guarantees" are not worth it). When you get older, you MIGHT consider buying a single premium annuity where you trade a sum of cash for a fixed payment...no underlying investments. If you wait until you are older (at least 75) then the payout could be quite good, especially if you come from a long lived family. Ask your advisor how much commission they will receive on the annuity if you buy it:-)
I have a pension: Step 1 is to max out any 401(k) or IRA contributions you can. At age 50, you can contribute up to $18,000 to a 401(k) or $6500 to an IRA. Depending on your income, you may be able to max out the 401(k) AND contribute to a Roth IRA as well.
I have a pension....I would 1. save 15% of your income 2. try to pay off your home (not tax wise necessarily but it does feel great not to have this burden in retirement). 3. Try to get all major repairs and systems updated at your home before you retire which will cut down on those "unexpected" expenses in retirement. Let's see what others say.