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Private elementary school tuition - any tax breaks?

My daughter was just accepted at a private elementary school with tuition around $8,000/year. Are there any investment or savings vehicles that would provide tax breaks for her tuition payment? I know about the Coverdell, but since she's staring in September, putting $2k into an account now is hardl...
by Scott927
Wed Apr 02, 2014 6:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Private elementary school tuition - any tax breaks?
Replies: 11
Views: 889

Retirement vehicle for 2014 AGI over $160,000

Prior to 2014, my AGI was always under $150,000 so my retirement savings plan looked like this: - Fund employer 401k up to the max employer match - Max out my Roth IRA - Max out my wife's Roth IRA For the most part, after building my emergency fund and paying off debt, that's where it stopped. In 20...
by Scott927
Sun Mar 16, 2014 11:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Retirement vehicle for 2014 AGI over $160,000
Replies: 9
Views: 874

Re: S-Corp worth it given my financial situation?

Unfortunately (?), I have an employer-sponsored health insurance plan through my full-time W-2 job so I more than likely can't deduct the premiums I pay. Also, I just got a $5k raise plus a $1k annual bonus bump yesterday so my total income from my primary job is now $102,500 meaning the S-Corp is e...
by Scott927
Sun Mar 09, 2014 10:16 am
 
Forum: Personal Finance (Not Investing)
Topic: S-Corp worth it given my financial situation?
Replies: 16
Views: 1132

Re: S-Corp worth it given my financial situation?

Thanks for the advice everyone. I'll be consulting with a tax professional, but for now I'm leaning towards continuing as a 1099 contractor. Doesn't seem worth the extra overhead at this point.
by Scott927
Thu Mar 06, 2014 1:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: S-Corp worth it given my financial situation?
Replies: 16
Views: 1132

Re: S-Corp worth it given my financial situation?

from Bankrate.com S Corporations "S Corporations tend to want to undercompensate and have employees take more in the way of distribution." Thank you for your reply. I'm not really asking about the validity of the amount of salary I'm taking though. My question is more centered around: giv...
by Scott927
Wed Mar 05, 2014 11:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: S-Corp worth it given my financial situation?
Replies: 16
Views: 1132

Re: S-Corp worth it given my financial situation?

I am a sub s - you can not have gross profits of $250,000 and take a salary of $30k with the balance as dividends. I don't know the exact ratios, but my accountant was quite firm on this. The IRS does have various criteria before they audit. This one does setup flags. That's not quite accurate. The...
by Scott927
Wed Mar 05, 2014 11:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: S-Corp worth it given my financial situation?
Replies: 16
Views: 1132

S-Corp worth it given my financial situation?

I earn approximately $95,000/year in W-2 wages with an annual bonus around $3,500. In addition to that, I earn another $108,000 in 1099 income. I considered setting up an S-Corporation to run the 1099 income through so that I can pay myself a $30,000 salary, deduct expenses and then take the remaind...
by Scott927
Wed Mar 05, 2014 10:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: S-Corp worth it given my financial situation?
Replies: 16
Views: 1132

Roth or Traditional IRA?

So for the past couple of years I've been maxing out my 401k up to the maximum employer match, then maxing out both mine and my wife's Roth IRAs. However, my income has been steadily increasing to the point where this year I plan to gross in the neighborhood of $210,000. I have a couple of questions...
by Scott927
Mon Mar 03, 2014 9:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth or Traditional IRA?
Replies: 1
Views: 130

Re: Investing small amounts at a time in S&P index fund

Just to be clear. I think Vanguard is pretty obviously the best place for --a retirement saver, as opposed to a trader --who wants to set up automatic investments --who prefers mutual funds to ETFs --who like Vanguard's mutual funds and intends to make them their core or only holdings. If you meet ...
by Scott927
Thu Jan 31, 2013 1:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing small amounts at a time in S&P index fund
Replies: 8
Views: 670

Re: Investing small amounts at a time in S&P index fund

Sounds like everyone recommends moving to Vanguard. :) Right now my Roth IRA account is at E-Trade.
by Scott927
Thu Jan 31, 2013 1:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing small amounts at a time in S&P index fund
Replies: 8
Views: 670

Investing small amounts at a time in S&P index fund

Hello, This is probably a pretty basic question, but I'm 35 and just started a Roth IRA last year which I maxed out. I earn some monthly income from advertising that runs on a website I own, and I'd like to funnel this money into my Roth IRA. That'll cover about $3,600 a year of my max investment fo...
by Scott927
Thu Jan 31, 2013 1:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing small amounts at a time in S&P index fund
Replies: 8
Views: 670

Re: How to invest small sums of cash

To reiterate what NYBoglehead mentioned, is there a reason why you are avoiding investing in the 401k? The fact that your employer doesn't match is a good reason to invest in the Roth IRA first, but not a reason (by itself) to invest in taxable accounts before the 401k. Is there some other reason y...
by Scott927
Fri Aug 10, 2012 2:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to invest small sums of cash
Replies: 17
Views: 1665

Re: How to invest small sums of cash

Scott, You can buy S&P 500 and Total Market Index ETFs (along with all the others, but the ERs are a little higher and we don't like to market time/pick winners) with Vanguard commission free if you'd rather not wait to accumulate the $3,000. That said, if you've got plenty large enough of an e...
by Scott927
Fri Aug 10, 2012 2:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to invest small sums of cash
Replies: 17
Views: 1665

Re: How to invest small sums of cash

Several Vanguard funds have a minimum of $3000 for the first investment but after that the subsequent investments are far lower, but that you have to look up on the Vanguard site for details. So, put the money into high yield FDIC insured (or similar) online bank accounts until you have $3000 and t...
by Scott927
Fri Aug 10, 2012 2:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to invest small sums of cash
Replies: 17
Views: 1665

How to invest small sums of cash

Hello, I'm 35, a total novice investor and just getting to a point where I have extra cash to invest for retirement/future needs. I have no debt and plenty of money in an emergency fund. My employer doesn't match 401k funds, so I maxed out my Roth IRA this year (first year doing so). For now, I've p...
by Scott927
Fri Aug 10, 2012 1:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to invest small sums of cash
Replies: 17
Views: 1665

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