Search found 2074 matches

by Spirit Rider
Fri Jul 03, 2015 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Self Directed IRA question
Replies: 4
Views: 292

Re: Self Directed IRA question

You are implying that a Self Directed IRA has to be a traditional IRA, that is not true. Self Direction is entirely possible for a Roth IRA. With that said, Self-Direction is totally irrelevant with regards to a back door IRA. The only thing that matter is do you have traditional IRA non-basis asset...
by Spirit Rider
Thu Jul 02, 2015 9:16 am
Forum: Investing - Help with Personal Investments
Topic: Creating SEP IRA to reduce taxes this year
Replies: 10
Views: 515

Re: Creating SEP IRA to reduce taxes this year

I do work for company as well and will hopefully max out their 401K Pre-Tax (18K limit) and maybe some after-tax after that. Thanks There are two business retirement plan contribution limits. The employee elective salary deferral limit (2015 = $18K) and the (employee + employer) annual addition lim...
by Spirit Rider
Wed Jul 01, 2015 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: HSA and insurance premium payments
Replies: 2
Views: 324

Re: HSA and insurance premium payments

No, you can not use HSA funds to pay for general health insurance premiums. However, they can continue to be used for any unreimbursed expenses for the HSA account owner, spouse, and dependents . NOTE: The key word above is dependents. This is not the same as the rule that allows children under the ...
by Spirit Rider
Tue Jun 30, 2015 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: Obsessing towards zero balance on credit card.
Replies: 125
Views: 6019

Re: Obsessing towards zero balance on credit card.

I have a few observations. First, there is no guarantee that your credit card issuers always report your statement balance. Second, unless your monthly usage is a high portion of your available credit, making interim payments is unlikely to significantly affect your credit score. Finally, Bogleheads...
by Spirit Rider
Tue Jun 30, 2015 7:34 pm
Forum: Investing - Help with Personal Investments
Topic: Switching jobs - what to do with 401k and HSA
Replies: 6
Views: 495

Re: Switching jobs - what to do with 401k and HSA

Terminated employees may submit claims only for expenses incurred up to the date of termination. A grace period for submitting those claims may be permitted as specified in the Summary Plan Document.

Any FSA funds remaining after the above periods are forfeited.
by Spirit Rider
Tue Jun 30, 2015 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Calculator for late starters
Replies: 19
Views: 1725

Re: Social Security Calculator for late starters

A couple of things to keep in mind. While your SS benefit is based on your 35 highest wage indexed earnings and zero years will decrease the average, but the actual benefit not by that much with 20-30 years of significant earnings. This is because SS benefits are weighted to benefit lower wage earne...
by Spirit Rider
Tue Jun 30, 2015 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: Intentional 401k overcontribution to get new employer match
Replies: 31
Views: 1541

Re: Intentional 401k overcontribution to get new employer match

She should contact her previous employer and ask if they would remove a certain amount of excess contributions. However, depending on how her previous employer allocated the company match and will recover any match on returned excess contributions, it may not benefit her much at all.
by Spirit Rider
Tue Jun 30, 2015 1:23 pm
Forum: Personal Consumer Issues
Topic: What do you do to reduce your "need" expenses?
Replies: 27
Views: 1513

Re: What do you do to reduce your "need" expenses?

I do not believe most of the OPs suggestions will actually reduce need based expenses. Paying off the mortgage early, is more a time shifting from future to present. While it may reduce the total cost of the mortgage, it does not factor in lost opportunity costs. Contesting property taxes every year...
by Spirit Rider
Tue Jun 30, 2015 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Switching jobs - what to do with 401k and HSA
Replies: 6
Views: 495

Re: Switching jobs - what to do with 401k and HSA

401k: You will have access to the TSP. It has some of the lowest expense ratios of any 401k plan. You should strongly consider rolling over your 410k into the TSP for this reason and one other. Retirement accounts in employer sponsored 401k plans have full ERISA protection against creditors. HSA: Th...
by Spirit Rider
Tue Jun 30, 2015 9:43 am
Forum: Personal Consumer Issues
Topic: Used, Reliable, Safe, Financially Sound cars
Replies: 56
Views: 4250

Re: Used, Reliable, Safe, Financially Sound cars

... However, just like securities are priced on all available public information, so are used cars. I would go even further and say that there is a speculative premium for Honda's/Acura's and Toyota's/Lexus' that does not reflect their additional reliability and value. ... Two excellent examples Th...
by Spirit Rider
Mon Jun 29, 2015 7:29 pm
Forum: Investing - Theory, News & General
Topic: Retirement Direct - Viable alternative to Employee Fiduciary for small biz 401(k)?
Replies: 2
Views: 353

Re: Retirement Direct - Viable alternative to Employee Fiduciary for small biz 401(k)?

I have not heard Retirement Direct mentioned on this site (with the exception of your previous post). I also, have not heard it mentioned on other forums that discuss business retirement plans. Also, I didn't see any internet references that were not by them. Maybe ERISA Stone has heard of them. It ...
by Spirit Rider
Mon Jun 29, 2015 6:43 pm
Forum: Personal Consumer Issues
Topic: Used, Reliable, Safe, Financially Sound cars
Replies: 56
Views: 4250

Re: Used, Reliable, Safe, Financially Sound cars

My mechanic advised not touching the Subaru boxer engine with a pole of any length. Said he's seen a slew of them and they have a big oil leakage problem. Said that Subaru should have been able to fix this engine as long as they have been making it. Like most anecdotal information, this lacks persp...
by Spirit Rider
Mon Jun 29, 2015 2:22 pm
Forum: Personal Consumer Issues
Topic: Used, Reliable, Safe, Financially Sound cars
Replies: 56
Views: 4250

Re: Used, Reliable, Safe, Financially Sound cars

You should give an special t hank you to jack FFR1846 . I concur whole heartedly, I don't feel like the only contrarian. While Bogleheads seem to accept the efficient market theory when it comes to financial instruments, they are Honda/Acura and Toyota/Lexus zealots when it comes to car brands. Howe...
by Spirit Rider
Mon Jun 29, 2015 10:50 am
Forum: Investing - Theory, News & General
Topic: SEP vs SIMPLE vs Roth
Replies: 6
Views: 328

Re: SEP vs SIMPLE vs Roth

As ccf has pointed out, a Solo 401k is out as you cannot have eligible employees. A SEP IRA would require the same percentage contribution for all employees. She probably does not want to do that. A SIMPLE IRA would allow each employee (including the owner) to make up to a $12.5K (2015) salary defer...
by Spirit Rider
Mon Jun 29, 2015 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Confusion about Roth IRA income contribution limit
Replies: 18
Views: 973

Re: Confusion about Roth IRA income contribution limit

We can not confirm, because we do not know all the elements of your 1040.

As has been described; Your Roth MAGI is line 37 adjusted by the ROTH MAGI worksheet.

If you complete both of these, you will have your answer.
by Spirit Rider
Sun Jun 28, 2015 11:18 am
Forum: Personal Consumer Issues
Topic: Lifelock: Worth the Money or a Sham?
Replies: 16
Views: 2540

Re: Lifelock: Worth the Money or a Sham?

Consider the facts: - company is run by a guy who is an identity thief. Convicted, - company posts CEO's social security number as part of their advertizing, and his credit gets hijacked multiple times, - they utilize a method which does not work: credit alerts, - they are being sued by the credit ...
by Spirit Rider
Sat Jun 27, 2015 11:12 am
Forum: Personal Consumer Issues
Topic: Unauthurized Credit Inquires
Replies: 5
Views: 711

Re: Unauthurized Credit Inquires

I would question the alert from ProtectMyID, before AMEX. I have had AMEX cards for 40+ years. I probably wasn't paying that close attention in the beginning. However, I have paid close attention to my credit reports for at least 20 years. Amex and many other issuers periodically (monthly or quarter...
by Spirit Rider
Sat Jun 27, 2015 11:03 am
Forum: Personal Consumer Issues
Topic: Unauthurized Credit Inquires
Replies: 5
Views: 711

Re: Unauthurized Credit Inquires

It is a common practice because they manage risk and to do that, they have to assess it. Some credit card agreements even allow them to raise the interest rate on an account in good standing if there is a problem with a different account. That practice is called "universal default" if you...
by Spirit Rider
Sat Jun 27, 2015 8:16 am
Forum: Personal Consumer Issues
Topic: Smart phone data usage
Replies: 54
Views: 4194

Re: Smart phone data usage

If you optimize data usage on your Android/iOS phone/tablet, you can greatly minimize data usage without adverse affect to the functions you wish to use. The problem is that many people do no take the time to do this. I have three smartphones in my plan. We each used to have 2GB each and used a tota...
by Spirit Rider
Sat Jun 27, 2015 7:54 am
Forum: Investing - Theory, News & General
Topic: "Target Date Funds Are Riskier Than You Think"
Replies: 45
Views: 5783

Re: "Target Date Funds Are Riskier Than You Think"

This is an overly simplistic article and does not to take into account the most risk present in Target Date Funds. The glide paths have far greater equity/bond allocation ratios than most owners of these funds realize. Also, this article fails the most basic journalistic standards. It does not put i...
by Spirit Rider
Fri Jun 26, 2015 10:41 pm
Forum: Personal Consumer Issues
Topic: Fish in the refrigerator
Replies: 21
Views: 2544

Re: Fish in the refrigerator

Well the good thing is with the other person having a hypersensitive level of smell it is probably less likely that they are a psychopath. Or rather the opposite. Some studies had demonstrated a correlation with at least some psychopaths have a reduced sense of smell.
by Spirit Rider
Fri Jun 26, 2015 10:11 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRAs filled up, What's Next? (S-Corp Owners)
Replies: 8
Views: 663

Re: Roth IRAs filled up, What's Next? (S-Corp Owners)

As has been said, with a Solo 401k, you can each have an employee deferral of $18K. Individual profit sharing contributions are limited to 25% of the individual's compensation. The IRS requires you to pay yourselves reasonable compensation. Unreasonably low compensation of S-Corp's has been on their...
by Spirit Rider
Fri Jun 26, 2015 9:55 am
Forum: Personal Finance (Not Investing)
Topic: HSA via Obamacare if new employer doesn't offer it. Good or bad idea?
Replies: 6
Views: 822

Re: HSA via Obamacare if new employer doesn't offer it. Good or bad idea?

Does your employer not pay a portion of your coverage. Typically, many employers pay 75% - 80% of coverage. In that scenario, your ACA premiums are likely to be far more than 20% - 25% of your employers coverage. Unless, you are relatively young and your income is low enough to get subsidies.
by Spirit Rider
Fri Jun 26, 2015 9:51 am
Forum: Personal Consumer Issues
Topic: Squirrel nemesis
Replies: 60
Views: 5295

Re: Squirrel nemesis

Luke Duke wrote:I think that this is what pellet guns are made for.

Or a .22 with a suppressor. Then shoot, shovel, shut up.
by Spirit Rider
Fri Jun 26, 2015 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Emergency Funds - Money Market vs Savings Acct?
Replies: 7
Views: 676

Re: Emergency Funds - Money Market vs Savings Acct?

For most of the last thirty (30) years Money Market Funds/Accounts have had higher APRs than savings accounts. Money Market Funds/Accounts are tied to short term (<= 90 days) Treasuries, Commercial Paper, etc... Bank savings accounts can be more tied to the interest earned on loans. So financial ins...
by Spirit Rider
Thu Jun 25, 2015 11:13 pm
Forum: Investing - Help with Personal Investments
Topic: 401k, backdoor roths, rollovers, oh my?
Replies: 10
Views: 890

Re: 401k, backdoor roths, rollovers, oh my?

We are interested in potentially moving to a 401k for the following reasons: ⋅  Higher contribution limits. ⋅  Potentially, more flexible match options. We will obviously probably need to go with a safe harbor structure. In an ideal world, I'd love to be able to do a [i]50% matc...
by Spirit Rider
Thu Jun 25, 2015 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Rent a studio to save money or 1-bedroom that is twice the cost but in my "dream" area?
Replies: 36
Views: 3496

Re: Rent a studio to save money or 1-bedroom that is twice the cost but in my "dream" area?

I'm as frugal if not more than most Bogleheads, but I say go for option #2. With option #2 your monthly housing expense is still < 20% ($1950 / $11,000). That is by no means excessive, in fact it is probably below the vast majority of Americans. A mantra here is Live Below Your Means (LBYM). For som...
by Spirit Rider
Wed Jun 24, 2015 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security and Early Retirement?
Replies: 26
Views: 3909

Re: Social Security and Early Retirement?

I learned a lot from this post. Thank you. I have one question. In your example, you use 21 years at SS max wage base and calculate AIME, and from there we find the PIA. I'll use the same example for my question. Would the PIA be different if someone reached to the example AIME in 35 years? I am tr...
by Spirit Rider
Wed Jun 24, 2015 5:42 pm
Forum: Investing - Help with Personal Investments
Topic: Only contribute to the match?
Replies: 12
Views: 1348

Re: Only contribute to the match?

The general order of investing goes like this: 1. 401k to the match 2. Max roth 3. Max 401k 4. Taxable investing Chapter 10 of the the Bogleheads' Guide to Retirement Planning has a different order of investing... 1. 401k up to the max 2. Roth There is no one answer for everyone. I think most would...
by Spirit Rider
Tue Jun 23, 2015 10:39 am
Forum: Investing - Theory, News & General
Topic: Improving cost basis
Replies: 17
Views: 1746

Re: Improving cost basis

Tax gain harvesting can be a useful portfolio strategy in certain circumstances. As has already be mentioned, if you are in a tax bracket that does not tax gains (while staying in that bracket) if may make sense. You have to consider how it might affect other tax considerations (SS taxation, etc...)...
by Spirit Rider
Tue Jun 23, 2015 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Social Security and Early Retirement?
Replies: 26
Views: 3909

Re: Social Security and Early Retirement?

One thing to keep in mind is that the Primary Insurance Amount (PIA) calculation benefits lower wage earner more than high wage earners. Your Average Indexed Earnings (AIME) are applied to a formula with three levels and two bend points. For 2015 these are: 90% $ 000 -> $ 826 32% $ 826 -> $4980 15% ...
by Spirit Rider
Tue Jun 23, 2015 8:40 am
Forum: Investing - Help with Personal Investments
Topic: Random Questions about Solo 401(k)
Replies: 11
Views: 1088

Re: Random Questions about Solo 401(k)

Thanks, Spirit Rider. Your help is always much appreciated. I had two specific references I was hoping for in mind. (Again, this all applies to a sole proprietorship) 1. "Employee salary deferrals can be made after the revenue is received or when the services have been completed." I was c...
by Spirit Rider
Mon Jun 22, 2015 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Random Questions about Solo 401(k)
Replies: 11
Views: 1088

Re: Random Questions about Solo 401(k)

Again, thanks for the helpful replies. Is there a reference/citation for some of these answers? I skimmed through some of the IRS publications on 401(k)s and it did not go into the level of detail some of the posters here went into. Can someone please direct me to the right source material/publicat...
by Spirit Rider
Sun Jun 21, 2015 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Tech jobs - is job-hopping the best way to get ahead?
Replies: 89
Views: 11504

Re: Tech jobs - is job-hopping the best way to get ahead?

My question is how come companies are so SLOW to adjust salary for their existing employees based on market conditions. It is a matter of cost plain and simple. Do you pay market rates to 10% (new hires) or 100% (everybody). Companies are only going to raise salaries to the minimum necessary to ret...
by Spirit Rider
Sun Jun 21, 2015 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement account for 21 y/o small business owner
Replies: 4
Views: 481

Re: Retirement account for 21 y/o small business owner

Retirement contributions for a sole proprietor are based on your self-employment income. Self-employment income = net business profit - 1/2 SE tax. On $120K net business profit, the self-employment income would be $111,522. The maximum employer contribution is 20% of $111,522 = $22,304. Maximum SEP ...
by Spirit Rider
Sat Jun 20, 2015 9:44 am
Forum: Investing - Theory, News & General
Topic: An out-of-sample look at the four best-performing funds 1972-2012
Replies: 24
Views: 4268

Re: An out-of-sample look at the four best-performing funds 1972-2012

Are those pretax returns? I know that in a retirement account it's not relevant, but for many who invest in taxable accounts it would be. Exactly. Most of that time interest and dividends would have been taxed at ordinary income taxes rates and capital gains tax rates were quite high. If you couple...
by Spirit Rider
Fri Jun 19, 2015 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Physician Independent contractor - LLC vs S corp vs other
Replies: 99
Views: 8663

Re: Income tax liability safe harbors

Great! I am assuming this applies to federal taxes only? Also, when you say tax liability, you are referring to "Total tax" line as noted on form 8879? Or is it the "Federal Income Tax Withheld" line on Form 8879? Yes, this is for federal taxes only. You will have to research yo...
by Spirit Rider
Fri Jun 19, 2015 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: IRS "Safe Harbor" & withholding vs. 1099 income
Replies: 19
Views: 1583

Re: IRS "Safe Harbor" & withholding vs. 1099 income

Do not even think about manipulating your withholding to have less withheld early in the year and then catch up at the end. The IRS is wise to this and you can be subject to a "lock in letter". This will direct your employer to withhold at Single with 0 exemptions. It can take several yea...
by Spirit Rider
Fri Jun 19, 2015 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: Investing 11 Million Dollar Gift
Replies: 80
Views: 11970

Re: Investing 11 Million Dollar Gift

In this day in age, I would reconsider putting the actual dollars amounts as the title and in the post You could just as easily use "Investing a substantial windfall". You don't even need to refer to it as a gift. It is information unnecessary for proper responses. Then you can change this...
by Spirit Rider
Fri Jun 19, 2015 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a spousal inherited IRA started - trouble with the bank
Replies: 41
Views: 3836

Re: Getting a spousal inherited IRA started - trouble with the bank

Does the CD mature in December 2015 or December 2016? My suggestion below will be less risky if it is 2015. A decedents untaken RMD balance is required to be taken in the year of death. So if the decedent passed away in 2015, that RMD should be taken by 12/31/2015. There is a 50% penalty (of the RMD...
by Spirit Rider
Fri Jun 19, 2015 10:53 am
Forum: Personal Finance (Not Investing)
Topic: IRS "Safe Harbor" & withholding vs. 1099 income
Replies: 19
Views: 1583

Re: IRS "Safe Harbor" & withholding vs. 1099 income

So is this the answer: "...once you select the annualized method and make an insufficient estimated tax payment for a given period, you are subject to penalties for that underpayment." That is, if one pays only by withholding and makes NO estimated quarterly payments at all, then by defin...
by Spirit Rider
Fri Jun 19, 2015 10:16 am
Forum: Personal Finance (Not Investing)
Topic: IRS "Safe Harbor" & withholding vs. 1099 income
Replies: 19
Views: 1583

Re: IRS "Safe Harbor" & withholding vs. 1099 income

Thanks - this gets at a bit more of my question... IF the 1099 income is "lumpy" - especially if front-loaded even a bit - then would relatively even withholding or ("worse"?) bumping up the withholding at perhaps mid-year to a new, higher steady amount cause penalties even if s...
by Spirit Rider
Fri Jun 19, 2015 9:55 am
Forum: Personal Finance (Not Investing)
Topic: IRS "Safe Harbor" & withholding vs. 1099 income
Replies: 19
Views: 1583

Re: IRS "Safe Harbor" & withholding vs. 1099 income

There is an exception that seems to have been glossed over in this thread. If you do make estimated tax payments, then calculating whether you're in one of the safe harbors is more complicated. In particular, simply having made payments totalling 100%/110% of last year's tax liability is not suffic...
by Spirit Rider
Fri Jun 19, 2015 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Getting a spousal inherited IRA started - trouble with the bank
Replies: 41
Views: 3836

Re: Getting a spousal inherited IRA started - trouble with the bank

(2) How old was deceased spouse -- if over 70.5 and taking RMDs, must take out last RMD before 12/31/15. IIRC, if it's an inherited IRA, the beneficiary can take the RMD and satisfy this requirement. But, if the surviving spouse intends to retitle the IRA, then the estate should take the RMD (you'l...
by Spirit Rider
Thu Jun 18, 2015 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: IRS "Safe Harbor" & withholding vs. 1099 income
Replies: 19
Views: 1583

Re: IRS "Safe Harbor" & withholding vs. 1099 income

An individual only has one federal income tax liability. It doesn't matter whether it is from W-2 income, self-employment income, and/or passive income. Tax payments can come from payroll withholding, estimated tax payments, and/or retirement plan distribution withholding. All the payment requiremen...
by Spirit Rider
Thu Jun 18, 2015 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: HELP! Need advice on SEP IRA. I'm a NEWBIE
Replies: 5
Views: 591

Re: HELP! Need advice on SEP IRA. I'm a NEWBIE

No, I am not a professional. So the standard disclaimers apply. However, I believe I could find cites for all the information I have provided. This knowledge has been acquired over the years by having to deal with many of the issues myself, researching information for others, and by the many contrib...
by Spirit Rider
Thu Jun 18, 2015 1:35 pm
Forum: Personal Consumer Issues
Topic: New Garage Doors
Replies: 8
Views: 1464

Re: New Garage Doors

Rollups with Masonite panels are pretty common and there are a limited number of sizes. I think a local garage door company could likely match and replace just the bottom section. I did this with my sister's condo with no problem, they even painted to match. After a year you couldn't even tell there...
by Spirit Rider
Thu Jun 18, 2015 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: HELP! Need advice on SEP IRA. I'm a NEWBIE
Replies: 5
Views: 591

Re: HELP! Need advice on SEP IRA. I'm a NEWBIE

The max SEP IRA contribution is 25% of wages for a W2 employee or 20% of self-employment income for a sole proprietor. From your description it sounds like you elected to be treated as a corporation under subchapter S. If you take a $100K salary, the max SEP IRA contribution would be $25K. You also ...
by Spirit Rider
Thu Jun 18, 2015 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Payroll tax v.s IRA/401(k)
Replies: 10
Views: 1141

Re: Payroll tax v.s IRA/401(k)

A solo 401K has an employee and employer component. The employer can fund upto an addition 25% of salary in the solo401K. This is in addition to the $18K maximum the employee can fund. The employer portion does not need to pay social security and Medicare on that contribution. Total employer and em...
by Spirit Rider
Thu Jun 18, 2015 9:48 am
Forum: Personal Finance (Not Investing)
Topic: Longtime Insurance Customers Get Ripped [overcharged]
Replies: 54
Views: 8493

Re: Longtime Insurance Customers Get Ripped [overcharged]

The states that prohibited consideration of credit scores harmed most rate payers. Those with higher credit scores are harmed by paying higher premiums than the actuarial basis would require. Which is not "most rate payers". Most rate payers who don't have higher credit scores might actua...

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