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Re: Online bill pay: shot myself in the foot.

Note to self... watch where I put the decimal.
by monocle
Mon Sep 16, 2013 8:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Online bill pay: shot myself in the foot.
Replies: 18
Views: 2889

Re: Moving to Japan Self Employed.

Do you know anything about the sale of real estate (capital gains)? We have three properties we are planning to sell before moving but wonder what would happen if we sold after we move. From the US-Japan tax treaty : ARTICLE 13 1. Gains derived by a resident of a Contracting State from the alienati...
by monocle
Tue Sep 10, 2013 8:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Moving to Japan Self Employed.
Replies: 20
Views: 2030

Re: Moving to Japan Self Employed.

bpp, thanks for your responses. This source country/vs residence country stuff for taxes really starts getting confusing. Do you know anything about the sale of real estate (capital gains)? We have three properties we are planning to sell before moving but wonder what would happen if we sold after w...
by monocle
Tue Sep 10, 2013 4:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Moving to Japan Self Employed.
Replies: 20
Views: 2030

Re: Moving to Japan Self Employed.

You might want to hold off on your wife using any Japan-based mutual funds or ETFs until she is no longer a US taxpayer, to avoid having to deal with the PFIC rules. Individual stocks and bonds should be ok. I wouldn't recommend bothering with individual stocks if she will be escaping the IRS's jur...
by monocle
Sun Sep 08, 2013 11:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Moving to Japan Self Employed.
Replies: 20
Views: 2030

Re: Moving to Japan Self Employed.

I was searching around for that GIF of the smiley shooting himself but couldn't find it. :confused Thanks for all your replies and tips. I'll have to keep researching. Looking like it won't be as bad as I initially feared. Just need to structure everything right before the move. Found a Tokyo based ...
by monocle
Sat Sep 07, 2013 2:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Moving to Japan Self Employed.
Replies: 20
Views: 2030

Moving to Japan Self Employed.

I'm a software developer that gets paid in US funds to a US account. I work from home and can work from any location in the world. I run our business currently with an LLC and use a SEP-IRA to defer taxes. We are planning to move to Japan in 3 years and most likely settle there for retirement. The b...
by monocle
Thu Sep 05, 2013 11:00 am
 
Forum: Personal Finance (Not Investing)
Topic: Moving to Japan Self Employed.
Replies: 20
Views: 2030

Re: Do Roth accounts always lose?

Here is an example of one my calculations... Person in the current 25% tax bracket is putting into: ROTH: 10,000 or putting into TRADITIONAL: 12,500 (investing the tax savings) I believe bsteiner pointed out in another thread that this probably should be: Roth: 10,000 TIRA: 13,333 (roth is 75% of T...
by monocle
Sun Sep 01, 2013 6:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do Roth accounts always lose?
Replies: 69
Views: 5547

Re: Do Roth accounts always lose?

BTW, if you do your math right and the marginal rate both during your working years and during your retirement years is identical, you have a "six of one half a dozen of the other" situation. [...] When Roths first appeared, most financial advisors, accountants, mutual fund companies didn...
by monocle
Sun Sep 01, 2013 3:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do Roth accounts always lose?
Replies: 69
Views: 5547

Re: Do Roth accounts always lose?

This is very interesting. I've always heard Roth is the no brainer too - but never converted. I am single and in the 28% tax bracket. I just couldn't swallow paying all those taxes now. Even though you show that a single guy (who remains so) in the 28% bracket wins - you're making me think there ar...
by monocle
Sun Sep 01, 2013 6:57 am
 
Forum: Personal Finance (Not Investing)
Topic: Do Roth accounts always lose?
Replies: 69
Views: 5547

Re: Planning impact on court reversal of doma

I know this is very recent, but if anyone has read a good summary of the financial planning impacts of the court ruling Id find that very helpful. On the surface it sounds like same sex marriages (in states which have it) would result in identical treatment as currently marriedcouples wrt federal i...
by monocle
Sun Sep 01, 2013 6:03 am
 
Forum: Personal Finance (Not Investing)
Topic: Planning impact on court reversal of doma
Replies: 102
Views: 7774

Re: Do Roth accounts always lose?

frugaltype wrote:
monocle wrote:Investment period 20 years
With 12% return


??


The rate doesn't matter too much... chose 12% as it is close to the non inflation adjusted SP500 historic.
by monocle
Sun Sep 01, 2013 5:32 am
 
Forum: Personal Finance (Not Investing)
Topic: Do Roth accounts always lose?
Replies: 69
Views: 5547

Re: Do Roth accounts always lose?

well, you must be on the West coast or maybe HI so you're going to have the last say for tonite anyway....... you might want to use a tax calculator to do the calculations esp. w/ SS since it's a bit tricky if you haven't done it before (I'm thinking you're a young whippersnapper :happy ). I used t...
by monocle
Sun Sep 01, 2013 5:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Do Roth accounts always lose?
Replies: 69
Views: 5547

Re: Do Roth accounts always lose?

Here is an example of one my calculations... Person in the current 25% tax bracket is putting into: ROTH: 10,000 or putting into TRADITIONAL: 12,500 (investing the tax savings) Investment period 20 years With 12% return BASED on pulling both accounts into cash at the end of the investment period: RO...
by monocle
Sun Sep 01, 2013 3:25 am
 
Forum: Personal Finance (Not Investing)
Topic: Do Roth accounts always lose?
Replies: 69
Views: 5547

Re: Do Roth accounts always lose?

[url]Not sure where your effective rates are coming from........to me it looks like for single, 36K or so is the top of the 15% bracket . If you had SS of 24K and 15K of investment income and 20K of 401K distributions , seems like you'd fill the lower brackets w/ this base and have an effective tax...
by monocle
Sun Sep 01, 2013 2:56 am
 
Forum: Personal Finance (Not Investing)
Topic: Do Roth accounts always lose?
Replies: 69
Views: 5547

Re: Do Roth accounts always lose?

I suppose it depends on what you are assuming for retirement. Some folks may have a retirement income consisting of a significant base of pension, social security, and perhaps investment distributions. If this base is large enough, retirement fund withdrawals may be a small fraction of the total an...
by monocle
Sun Sep 01, 2013 2:00 am
 
Forum: Personal Finance (Not Investing)
Topic: Do Roth accounts always lose?
Replies: 69
Views: 5547

Do Roth accounts always lose?

I've been trying to see the point of a Roth recently and did a bunch of calculations based on contributions and distributions and everything I'm calculating comes up with the Roth as a loser. Person A. Roth account investor. Person B. Traditional account investor. Assumptions: Same growth rate on ac...
by monocle
Sun Sep 01, 2013 1:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Do Roth accounts always lose?
Replies: 69
Views: 5547

Re: Age 24: How should I allocate my excess cash flow?

Sell the car. Buy a one for under 10,000.
Then put your excess 660 and 290 car payment on the student loans.
Pay off your loans in about 2 years.
by monocle
Mon Jul 29, 2013 8:48 am
 
Forum: Personal Finance (Not Investing)
Topic: Age 24: How should I allocate my excess cash flow?
Replies: 19
Views: 1601

Re: Mortgage payoff account

This is my favorite take on the mortgage or invest debate Sorry, but that was blithering nonsense. Typical scare-mongering of the "no debt" types. He even includes the silly negative bond thing. Every bit of silliness. Yeah, using a mortgage to invest is leveraging, but it's the best kind...
by monocle
Sat Jul 27, 2013 12:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Mortgage payoff account
Replies: 26
Views: 2610

Re: How to start with small amount?

Sell the car? Take a hit if needed, and buy a car that is reliable but cheaper. Free up a lot of money to attack the student loan debt. You will be debt free much faster and can save a lot more. It feels good to buy a car with a bag of cash rather than filling out a loan application and feeling like...
by monocle
Tue May 07, 2013 10:19 am
 
Forum: Investing - Help with Personal Investments
Topic: How to start with small amount?
Replies: 24
Views: 1777

Re: Business doing too well...how can I avoid some taxes

zzcooper123 wrote:Read: Jeff Schnepper, Sandy Botkin, June Walker


Thanks for the tips... just ordered the botkin book... the others seemed a bit unhelpful.. .are there specific books that you are recommending?
by monocle
Sun Jul 22, 2012 9:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Business doing too well...how can I avoid some taxes
Replies: 31
Views: 4096

Re: Business doing too well...how can I avoid some taxes

Right, as long as the OP understands that the solo 401(k) contributions are strictly employer. The TSP counts as a qualified plan, so the 17k contributed to it wipes out the employee elective deferral amount. Brian Are you saying the 17,000 limit is imposed on the combined employee contributions to...
by monocle
Sun Jul 22, 2012 2:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Business doing too well...how can I avoid some taxes
Replies: 31
Views: 4096

Re: Business doing too well...how can I avoid some taxes

Yes, the $50K, $17K, and $5K are allowable, see Example 1 here . (The amounts are for 2011.) Is your wife a resident alien or a non-resident alien? When reading IRS Publication 590 it looks like resident aliens can have an IRA. I'm not sure about non-resident aliens. Ya, she is a resident, but when...
by monocle
Sat Jul 21, 2012 8:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Business doing too well...how can I avoid some taxes
Replies: 31
Views: 4096

Re: Business doing too well...how can I avoid some taxes

Similar situation here. I've done them all over the years....DB....SEP....solo 401(k). IMO a solo 401(k) w/profit sharing (PS) is best in your (our) situation. No cost (at least at Vanguard where mine is). No required contributions (if business slows). You can contribute more than a SEP. Depending ...
by monocle
Sat Jul 21, 2012 11:31 am
 
Forum: Investing - Help with Personal Investments
Topic: Business doing too well...how can I avoid some taxes
Replies: 31
Views: 4096

Re: Business doing too well...how can I avoid some taxes

You weren't asking this, but I don't see the merits in buying a home if you are selling in 4 years. I am sure the nytimes rent/buy calculator will say you should rent for the next 4 years. We outgrew the house we are in now and the new one should provide for a more productive environment for my bus...
by monocle
Sat Jul 21, 2012 11:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Business doing too well...how can I avoid some taxes
Replies: 31
Views: 4096

Re: Business doing too well...how can I avoid some taxes

Duckie wrote:The TSP is not an IRA so it doesn't affect the pro-rata rule. In fact, if you had some non-Roth IRA assets that would mess up the backdoor Roth, moving them to the TSP would be an option.

Thanks for the info. I'm beginning to see the rough blueprints of an actual plan now. Thanks.
by monocle
Sat Jul 21, 2012 11:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Business doing too well...how can I avoid some taxes
Replies: 31
Views: 4096

Re: Business doing too well...how can I avoid some taxes

I'd go Solo 401k, not Roth Solo 401k, so the contributions would be deducted now. I'd also max the TSP, and two Roth IRAs. (This assumes you have no other non-Roth IRAs and will be able to use the Backdoor Roth IRA method without running into the pro-rata rule.) Thanks for the tips. I had never res...
by monocle
Fri Jul 20, 2012 10:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Business doing too well...how can I avoid some taxes
Replies: 31
Views: 4096

Re: Business doing too well...how can I avoid some taxes

Maybe my post was too detailed. Guess what I am looking for is... Should I go with a Solo 401k, a Roth Solo 401k, or a defined benefits plan? I'm expecting a high but maybe volatile self employment income for the next 5-10 years and then basically retiring with a modest retirement income and side jo...
by monocle
Fri Jul 20, 2012 9:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Business doing too well...how can I avoid some taxes
Replies: 31
Views: 4096

Business doing too well...how can I avoid some taxes

Hi, First post. Looking for some advice. I currently have a full time gov job making about 64,000 per year. My wife is a stay at home mom, hardest job in the world. I've got about 70,000 cash in the bank. I have a thrift savings plan (similar to IRA) which I can put 17,000 in per year. I've been put...
by monocle
Fri Jul 20, 2012 3:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Business doing too well...how can I avoid some taxes
Replies: 31
Views: 4096

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