How much do YOU think YOU need to retire? ...and at what age will you (and spouse) retire? (Part 1)

No, credit card cashbacks are not reportable income. Thankfully, neither are frequent flyer miles. (They used to be. What a royal pain!) OTOH, it sounds like Kavanaugh’s credit card balances were being carried, not paid off every month. The detailed instructions indicate that credit card debt over $10k must be reported.

DH has to fill out those disclosure forms annually. These are the basic instructions, though different levels of appointees/career civil service, etc. have varying levels of disclosure. https://www.oge.gov/web/278eguide.nsf/Chapters/OGE%20Form%20278e?opendocument

For DH and me, most of what actually gets reported is actually my assets/income (over $1.000); honoraria over $200, assets related to employment or business that have more than $1,000 in value (my two sewing machines) or produced more than $200 in income (so yeah, I report my $300/year in fabric art sales); my IRA and 401k accounts, our savings (both jointly held as well as separately) and when our kids lived at home, their UGMA/529 accounts. The assets get reported in bands of amounts (i.e., $1-10,000, $10,001-$25,000, etc.) so that what comes out in a public report sounds like a wide range (and makes you think something’s off). So, if I had $10,002 in each of my four mutual funds, the range reported would be $40,008 to $100,000. Amplify that across an IRA, a 401(k) and a couple of savings accounts and the disparity becomes significant.

DH’s fed gov’t retirement accounts aren’t included because those who are reviewing those reports can get that info directly from the source. Ditto his salary.

The report is mainly looking at whether DH has outside income, what funds/stocks we are invested in, what trades we may have engaged in (any transaction >$1,000), and if any of those represent a potential conflict of interest. There are industries we personally choose to stay away from as a matter of course, and we only own one stock, purchased in 1985, many years before he was a fed EE. Everything else is in money market and mutual funds. They also ask if DH received any gifts or travel reimbursements from outside sources. The gift limit is tiny – <$25, IIRC, and means that in most cases, if he attends a professional conference, he can’t accept free meals. Sometimes DH is asked to speak at international conferences and the sponsor pays his transportation (but not food or hotel). Those trips are cleared by his agency’s ethics office before he agrees to accept the engagement.

The form also asks for liabilities, excluding personal vehicles where the vehicle is the security & primary residence. A primary residence must be reported if it generates rental income. We do not have to report cash, MM accounts, or Treasury instruments. Home equity loans/HELOCs must reported if there is a balance. Student loans and co-signed loans (with some exceptions) are reportable. DH’s report is pretty straightforward. We’re plain vanilla. If one has lots of real estate, LLCs, outside positions, commodities trading, options, etc., it can get much more interesting.

Hmmm, talking about Cavanaugh’s gaming debt is not political, of course it’s not.

His assets do seem a little light for someone of his age/payscale.

https://www.washingtonpost.com/investigations/supreme-court-nominee-brett-kavanaugh-piled-up-credit-card-debt-by-purchasing-nationals-tickets-white-house-says/2018/07/11/8e3ad7d6-8460-11e8-9e80-403a221946a7_story.html

I would be more concerned if his assets appeared excessive relative to his salary. This makes him look pretty modest and definitely not corrupt, imo

In general, credit card interest is never good, unless its an emergency…

But it make sense for the great seats, as long as you were certain that you could sell the extras for the games that you won’t be able to attend. Perhaps he could mentally justify the interest as the price of the better seats. (Not that I would, but then I’m not that much of a sports fan.)

^^^^^^re credit card debt:

If you are paying off the entire balance of the card at the end of the billing cycle, it could be quite beneficial in terms of points. We charge almost everything, pay it all off each month, and get many thousands of points per month. We use them mostly for air travel and hotels, upgrades, etc.

ETA: after reading follow up comments, it’s not clear that he was paying off the entire balance each month.

Rarely do we get public information about how individuals spend money. I’m interested in it, and this thread makes clear that lots of other folks are, too. Kavanaugh is close to my age and we’re both lawyers, so it’s particularly interesting to see how we compare in our financial status. There are obviously many big differences between us, including that I’d like to retire in a few years and I assume he doesn’t!

It’s hard to save money, even if you make $220,600 as a judge and another $25,000 as a part-time professor and your wife makes $60,000 as a town manager… IF, you have an $865,000 mortgage, 2 kids in private school - relatively cheap Catholic school, but still private, and live in a very expensive area. As for the credit card debt, so much more information is needed all we can do is speculate wildly. I use credit cards for everything I can. I pay my bills with credit cards. I buy everything with credit cards. I used to pay son’s tuition with credit cards. I get 2% cash back on everything. Just about the only thing I don’t pay with a credit card is the credit card bill. But I always pay the credit card bill in full. I don’t want to pay any interest. BUT, some cards offer 0% interest, so I have no idea what Kavanaugh is financing. I did discover however, that the Nationals offer a 0% interest payment plan on season tickets (See their website) so there is no need to buy season tickets with a credit card at all! hmmmmmmm…

Agree with @NJres’s points. Plus, his net worth of a million in home equity and retirement accounts is very reasonable for his age. One has no idea about credit card debt, we shuffled cards around very years to pay for our rental real estate, sometimes with zero percent interest. Looking in from the outside it would have looked weird, and even now our non-real estate, non-retirement accounts look low, though our overall net worth is fine.

I can completely see buying season tickets, if that team was your passion, selling the tickets you didn’t use. Nothing unusual about that.

Time for my dumb question of the day: how is home equity determined? Is the home’s property tax assessment used and then the mortgage is subtracted?

Equity would be calculated as market value - mortgages and other debts on the house.

Tax assessments rarely if ever reflect market value. If they are close, and you are getting a HELOC, the bank might use the assessment to save the cost of an appraisal.

Does anyone else invest their extra HSA funds? We had been able to accumulate some through the years and opened an investment account with them. Hoping to make better returns than the .75 my credit union pays

Do tax assessments tend to be over or under market value? My house has a relatively high assessment because of a community-wide reassessment this year but I think my own house would not sell for the assessment amount because it has many flaws (mainly reflecting that not redecorating has been done in at least 30 years).

By the way, to answer the thread’s original question, I don’t think I have enough money to retire, I’m 56, I’d like to retire from my current job because I don’t like it and I’d like to devote my passion to something else, I’m divorced, my two older siblings retired from their long-term jobs, and my younger sibling is set to leave his this year. I’m itching!

When property values are on the rise, tax assements usually lag behind, which is what is happening here in Seattle.

If property tax assessments are based on values above FMV owners can appeal them. If you win, they are lowered, if you lose, they remain and you pay them plus the $25 fee for the appeal.

The property tax valuations here in HNL used to be quite a bit below FMV but have been creeping up so they’re much closer and sometimes above FMV. We appealed and won twice. Property prices have been steadily rising.

Property assessments in California can rise by no more than 2% per year because of Prop 13 (unless you remodel and then it only increases by the cost of the remodel). Our house is assessed for property tax at less than half the Zillow estimate because we bought it in 1993.

If values go down, you can ask for property to be reassessed. Oil companies do that, for example.

I think the new tax assessments in my community (up 15% on average this year) are generally reasonable; the real estate market is hot around here. I considered making an appointment with the city assessor but decided not to. I don’t mind paying more in property taxes, if they do indeed increase. I know that despite my occasional whining (see above!), I’m better off than the vast majority of people around the world and the majority even in my state.

Our assessments are supposed to be fair market value, but the date used to establish FMV tends to be 1-1.5 years in the past. So they can lag by quite a bit.

The way the appeals work for us, you need pretty solid evidence that you are over-assessed. For example, when I contested the assessment of my Cape house, I was able to show that the square footage they were basing the assessment on was too high. It’s difficult to do based on comparable sales, because things like condition are so subjective.

We have something similar in MA called Prop 2 1/2, but this limits increases in taxes on a town-wide basis (plus increases voted on by the town). So an individual property can vary by more than than, but the town as a whole is constrained.

@threebeans I finally have accumulated enough in my HSA to be able to invest it, too. At least you get .75 percent interest. Mine earns nothing, plus has a $1/month account fee. My concern is if I have a large health expense at the same time as a market downturn that I might lose some of the money invested.