Search found 9938 matches

by DSInvestor
Sun Jan 15, 2017 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Pay down mortgage or leave in ROTH IRA
Replies: 6
Views: 490

Re: Pay down mortgage or leave in ROTH IRA

I would suggest not making Roth Solo 401k contributions and making Traditional Solo 401k contributions for 18K instead. This will free up more cash flow with which to attack the mortgage.
by DSInvestor
Sun Jan 15, 2017 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: I401k Employer Portion limit 20% or 25% of income
Replies: 23
Views: 1118

Re: I401k Employer Portion limit 20% or 25% of income

What tax software are you using to prepare you 2016 tax return? I believe Turbotax will calculate your max employer contributions to solo 401k if you're a sole proprietor. I don't think TaxAct does this calculation. Not sure about other packages. The tax software will also help you with what kind of...
by DSInvestor
Sun Jan 15, 2017 3:33 pm
Forum: Personal Consumer Issues
Topic: What are Costco's best deals?
Replies: 327
Views: 50080

Re: What are Costco's best deals?

someone may have already mentioned this but... car batteries at Costco are a terrific deal. They're quite easy to replace - I just changed out the battery on my wife's 2012 Lexus ES350. Yes, you do have to take the old battery back to get your "core charge" deposit refunded - there's no w...
by DSInvestor
Sun Jan 15, 2017 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Why nobody understands importance of high-deductible insurance?
Replies: 41
Views: 3765

Re: Why nobody understands importance of high-deductible insurance?

IMO, high deductible insurance is great if one has cash reserves with which to meet the higher deductible. Many do not. Agreed. I would imagine the average Boglehead would have no problem writing a check on the spot for $1000 or more while for the average person this would be a major problem. I bou...
by DSInvestor
Sun Jan 15, 2017 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Why nobody understands importance of high-deductible insurance?
Replies: 41
Views: 3765

Re: Why nobody understands importance of high-deductible insurance?

IMO, high deductible insurance is great if one has cash reserves with which to meet the higher deductible. Many do not.
by DSInvestor
Sun Jan 15, 2017 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: auto retirement withdrawals
Replies: 2
Views: 368

Re: auto retirement withdrawals

My mom has something like this using Vanguard mutual funds at Vanguard. Dividends from all funds feed to the Money Market fund. We have an automatic exchange transaction to exchange $X of a fund to the MMF. We have an automatic redemption to sell $Y of the money market fund every month and proceeds ...
by DSInvestor
Sun Jan 15, 2017 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 43
Views: 2265

Re: is a 401k loan always terrible?

You have 50K loan 2.5% loan outstanding that you're planning to pay off in 6 months, that's at least 8K/month. What if you just made minimum payments on that loan for now and direct that money to the renovation? Between that cash flow and dipping a little into E-Fund, you've got it. If you have 12-1...
by DSInvestor
Sun Jan 15, 2017 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: is a 401k loan always terrible?
Replies: 43
Views: 2265

Re: is a 401k loan always terrible?

With 700K gross income, I'm surprised you're not able to pay for the renovation with cash flow. You can decide whether you want the reno more than the accelerated payoff of student loans. I would not borrow from 401k.
by DSInvestor
Sun Jan 15, 2017 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k Withdrawl / Match Question - Home Down Payment
Replies: 10
Views: 420

Re: Roth 401k Withdrawl / Match Question - Home Down Payment

If you need cash flow now, why not make Traditional 401k contributions instead of Roth 401k to get the max match. Traditional 401k will give you more take home pay which you can use to apply to downpayment.
by DSInvestor
Sun Jan 15, 2017 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion 1099-R modeling?
Replies: 8
Views: 289

Re: Roth conversion 1099-R modeling?

My 1099-R for Roth conversion shows code 2 in Box 7. code 2 is early distribution, exception applies (under age 59.5). I am younger than 59.5.

Box 1 and 2 show the conversion amount. Box 2b is checked (taxable amount not determined). IRA/SEP/SIMPLE box is checked. I did not withhold taxes.
by DSInvestor
Sun Jan 15, 2017 11:45 am
Forum: Personal Consumer Issues
Topic: What are Costco's best deals?
Replies: 327
Views: 50080

Re: What are Costco's best deals?

Is this a typo on the gas price? The Costcos in my area that sell gas are maybe 6 - 7 cents/gal cheaper. If it were 60 cents/gallon, they'd have to hire police to direct the traffic. Costco gas is around 40-60 cents/gal cheaper than gas stations in my area. Gas stations typically show a cash price ...
by DSInvestor
Sat Jan 14, 2017 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: Out of pocket health care costs - how to pay when traveling overseas?
Replies: 12
Views: 789

Re: Out of pocket health care costs - how to pay when traveling overseas?

How were you planning on paying for other expenses when travelling overseas - why would the answer be different? Normal expenses I will pay with credit card or cash drawn by ATM. But ATM withdrawals are limited by my bank to $500 per day. You can call your bank to see if they can increase ATM withd...
by DSInvestor
Sat Jan 14, 2017 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: Spare change cash drag in Roth after ETF purchase
Replies: 5
Views: 321

Re: Spare change cash drag in Roth after ETF purchase

This is why I like to have at least one mutual fund in each account to reinvest all small amounts. Excellent idea! I used to do that. It looks like your IRA is at Vanguard. If the Vanguard account is big enough to hold admiral shares of index mutual funds, punt the ETFs and use mutual fund shares i...
by DSInvestor
Sat Jan 14, 2017 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: Limit to contributing to both 401k and trad IRA
Replies: 5
Views: 541

Re: Limit to contributing to both 401k and trad IRA

If she maxes out 18K Traditional 401k, she reduces your AGI by 18K. The lower AGI with the Traditional 401k actually helps her stay under the MAGI limits for the Traditional IRA deduction. If her Traditional 401k contributions results in AGI lower than 98K for 2016, then she'd be eligible to deduct ...
by DSInvestor
Fri Jan 13, 2017 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: Limit to contributing to both 401k and trad IRA
Replies: 5
Views: 541

Re: Limit to contributing to both 401k and trad IRA

If she is covered by an employer plan like 401k, she can make Traditional IRA contributions no matter how high your income. However, the employer plan triggers a MAGI limit that may disallow the Traditional IRA deduction . See IRS page on IRA deduction limits: https://www.irs.gov/retirement-plans/ir...
by DSInvestor
Fri Jan 13, 2017 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: SEP-IRA for employees
Replies: 3
Views: 254

Re: SEP-IRA for employees

I'm a partner in a S-Corp with 4 other individuals and 8 employees. A few years ago the company enrolled the 5 partners in a SEP IRA with annual contributions based on our percentage of ownership. I don't think SEP-IRA contribution percentage can vary based on ownership percentage. When I last used...
by DSInvestor
Thu Jan 12, 2017 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Car accident . Fix car or not ?
Replies: 25
Views: 1474

Re: Car accident . Fix car or not ?

Getting a used Tesla has the advantage of free lifetime Supercharging, but it sounds like that's less of a benefit for you. I don't know the prices on CPO Teslas, but I have heard that they're competitive. I think Tesla is changing the free for life supercharging and CPO teslas may not get this fea...
by DSInvestor
Thu Jan 12, 2017 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: 403b contributions - Roth vs. Traditional
Replies: 22
Views: 758

Re: 403b contributions - Roth vs. Traditional

One thing to keep in mind is that Roth 403b contributions are irrevocable once made. There is no changing your mind and switching that money back to Traditional. IRAs have a recharacterization feature but not 401k/403b. Traditional 403b contributions gives you more options. The contribution is pre-t...
by DSInvestor
Thu Jan 12, 2017 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: W2 for single employee S-Corp
Replies: 5
Views: 343

Re: W2 for single employee S-Corp

I imagine the Quickbooks payroll service will handle the W-2s (i.e. print out copies for you and for filing to IRS etc). I suggest getting your S-Corp tax return (1120S) prepared by a CPA for at least the first year. Since you already the software, you can give it a shot in parallel. I am very famil...
by DSInvestor
Thu Jan 12, 2017 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Tax implications of marriage for Self employed (1099) marrying an employee (W2)
Replies: 9
Views: 518

Re: Tax implications of marriage for Self employed (1099) marrying an employee (W2)

You can contribute to your Solo 401k after you're married just like before. If your spouse helps you with your business, that opens up the possibility for your spouse to contribute to Solo 401k as well. If spouse has maxed out 401k at main job, that leaves no room for employee salary deferral but it...
by DSInvestor
Thu Jan 12, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Tax implications of marriage for Self employed (1099) marrying an employee (W2)
Replies: 9
Views: 518

Re: Tax implications of marriage for Self employed (1099) marrying an employee (W2)

My understanding of the Backdoor Roth in my situation is the following: - We cannot contribute to a regular ROTH IRA once married so we contribute to a traditional IRA after taxes ($5,500x2 = $11,000 after tax money) - We convert that traditional IRA money to a ROTH IRA by doing a BACKDOOR ROTH IRA...
by DSInvestor
Thu Jan 12, 2017 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Rolled into Roth IRA?
Replies: 4
Views: 216

Re: 401k Rolled into Roth IRA?

If you do the Roth conversion and add 3-4K of taxable income, be aware of the safe harbors to avoid under payment penalty. You should be good if the sum of your tax withholdings and estimated payments equals 100% of last years tax or 90% of current year's tax. If high income 110% of last years tax i...
by DSInvestor
Thu Jan 12, 2017 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Tax implications of marriage for Self employed (1099) marrying an employee (W2)
Replies: 9
Views: 518

Re: Tax implications of marriage for Self employed (1099) marrying an employee (W2)

I know little about about backdoor Roth IRAs but my understanding is that it is mostly interesting when one is in a lower tax bracket, which is not our case. This is not correct. The backdoor into Roth IRA is used by folks with higher income (higher tax brackets) whose income is too high to allow f...
by DSInvestor
Thu Jan 12, 2017 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Rolled into Roth IRA?
Replies: 4
Views: 216

Re: 401k Rolled into Roth IRA?

Rolling from Traditional 401k to Roth IRA is taxable. It is essentially a Roth conversion and does not use up your Roth IRA contribution space. Rolling from Traditional 401k to Traditional IRA (Rollover IRA) is not taxable. If your 401k assets are Roth 401k, you can rollover to Roth IRA without tax ...
by DSInvestor
Thu Jan 12, 2017 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: taxable and tax sheltered accounts - most tax efficient etf between VTI and VOO
Replies: 3
Views: 278

Re: taxable and tax sheltered accounts - most tax efficient etf

Both are extremely tax efficient but VTI may be a little more tax efficient. If the choices are limited to 500 Index and Total Stock Market, I'd select Total Stock Market. When selecting funds/ETFs for your taxable account, you should pick out replacement holdings that are similar but not substantia...
by DSInvestor
Wed Jan 11, 2017 10:56 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth Earnings Question
Replies: 4
Views: 201

Re: Backdoor Roth Earnings Question

The contribution has already been made to the Traditional IRA. There is no limit to the amount that you can convert to Roth IRA. If you want you can convert the $0.49 as well. If you have $5500 IRA basis and convert $5500.49, the amount in excess of your basis is taxable. In this case, the 0.49 roun...
by DSInvestor
Wed Jan 11, 2017 10:50 pm
Forum: Investing - Help with Personal Investments
Topic: Max Roth contribution
Replies: 17
Views: 1420

Re: Max Roth contribution

badbreath wrote:ok now you have confused me, can I
24k to a 401k
and I can contribute
6500 to a roth
I am still under the salary limit


Yes. If you're age 50+ you can contribute 24K to 401k and 6500 to Roth IRA.
by DSInvestor
Wed Jan 11, 2017 9:53 pm
Forum: Investing - Help with Personal Investments
Topic: Looking to retire at 55 (4 years) - Questions on current direction
Replies: 10
Views: 1621

Re: Looking to retire at 55 (4 years) - Questions on current direction

If you leave your job at age 55, you can withdraw from your 401k without early withdrawal penalty. Just make sure you don't rollover to IRA. IMO, you should continue to max out your 401k and you should use the backdoor into Roth IRA. Max out your retirement plans before college savings.
by DSInvestor
Wed Jan 11, 2017 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: Max Roth contribution
Replies: 17
Views: 1420

Re: Max Roth contribution

If you're under age 50, you can contribute 18K to 401k and $5.5K to IRA. If over age 50, 24K to 401k and 6.5K to IRA. IRA and 401k have separate contribution limits.

Roth IRA is not he same as Roth 401k. Roth 401k and Traditional 401k share one 18K contribution limit. Add 6K if over age 50.
by DSInvestor
Wed Jan 11, 2017 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Question
Replies: 3
Views: 266

Re: Backdoor Roth Question

I just recently learned about the backdoor Roth from this forum. In order to avoid the pro-rata rule, I had to roll my pre-tax IRA into my workplace 401k. I completed this in 2017. Since I am still in the window to make a 2016 contribution ... my question is whether I can make that contribution now...
by DSInvestor
Wed Jan 11, 2017 11:21 am
Forum: Personal Consumer Issues
Topic: Thinking of getting tires from Costco
Replies: 47
Views: 2910

Re: Thinking of getting tires from Costco

Wait until black friday and get a set installed from walmart. By far the cheapest price wise you will ever come across. One of my tires had a flat the other week...side wall was punctured so couldnt patch. 1 tire from a local place where I live cost almost as much as 2.5 tires (same brand/type) of ...
by DSInvestor
Wed Jan 11, 2017 11:10 am
Forum: Personal Consumer Issues
Topic: Thinking of getting tires from Costco
Replies: 47
Views: 2910

Re: Thinking of getting tires from Costco

The costco in my area takes appointments for installation, rotations, wire tire swap etc and I can typically get an early appointment. I have never had to wait long for a free rotation/rebalance. Not sure how they would be for a tire repair if you needed it done ASAP.
by DSInvestor
Wed Jan 11, 2017 11:08 am
Forum: Personal Consumer Issues
Topic: Shutterbugs - How do you organize your digital photos?
Replies: 44
Views: 2664

Re: Shutterbugs - How do you organize your digital photos?

My wife takes 95% of our pictures and she uses Adobe Lightroom for the shots taken with her DSLR. Shots taken with iPhone just show up in Photos app on our macs.
by DSInvestor
Wed Jan 11, 2017 10:30 am
Forum: Investing - Help with Personal Investments
Topic: Quick question on capital gains at low income levels
Replies: 6
Views: 395

Re: Quick question on capital gains at low income levels

You should run some numbers with tax software. The tax bracket and tax rates for the capital gains is only part of the picture. Even though your LTCG is taxed at 0% by Fed, that LTCG is included in your AGI which may have consequences for ACA premium subsidy and other tax credits. If realizing LTCG ...
by DSInvestor
Tue Jan 10, 2017 11:32 pm
Forum: Personal Consumer Issues
Topic: Thinking of getting tires from Costco
Replies: 47
Views: 2910

Re: Thinking of getting tires from Costco

If you're mounting new tires on your existing rims then that's probably the price. If you're mounting new tires on a second set of rims (say winter tires on steel rims), you may have to pay for a second set of 4 TPMS sensors for the new rims. I got a quote from Costco for a set of winter tires for m...
by DSInvestor
Tue Jan 10, 2017 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Funding 401k to Roth IRA conversion taxes for a non-resident alien
Replies: 4
Views: 311

Re: Funding 401k to Roth IRA conversion taxes for a non-resident alien

Another alternative is pay taxes using a credit card. Not sure if these services will accept foreign credit cards. There is a service charge. Something to consider if you have a card with no foreign transaction fees and cash back to offset the service charge. This still leaves the problem of how to...
by DSInvestor
Tue Jan 10, 2017 9:44 pm
Forum: Personal Consumer Issues
Topic: Getting Subaru Legacy(4Cyl 2.5L or V6 3.6R?)
Replies: 51
Views: 3578

Re: Getting Subaru Legacy(4Cyl 2.5L or V6 3.6R?)

The only problem with the 3.6 is you have to buy the upper trim with it, which makes it a ~$35k car. Then you paid $35k for a Legacy. Huh?? The MSRP for the Legacy Limited (top trim level) is $29,660 for the 2.5 and $32,460 for the 3.6. So, the larger engine costs nearly $3k more, but it doesn't ta...
by DSInvestor
Tue Jan 10, 2017 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Funding 401k to Roth IRA conversion taxes for a non-resident alien
Replies: 4
Views: 311

Re: Funding 401k to Roth IRA conversion taxes for a non-resident alien

Conversely, if I do not withhold on the conversion, I am unclear on whether withdrawing from the Roth to pay the tax at year end would land me a penalty or not. The suggestion with Roths is that the principle (but not earnings) could be withdrawn at any time, but this just seems like far too simpli...
by DSInvestor
Tue Jan 10, 2017 10:17 am
Forum: Personal Consumer Issues
Topic: Ways to charge money on Credit Card
Replies: 21
Views: 1978

Re: Ways to charge money on Credit Card

Bill paying via credit card is nice, but I prefer how they do bill payments where I am now. You take your bill that you receive in the mail and take it to the nearest 7-12 or equivalent (of which there are many, many) and pay cash for your bill there. For me, much easier. How is this easier than on...
by DSInvestor
Tue Jan 10, 2017 2:19 am
Forum: Personal Consumer Issues
Topic: Optimum cable and 2nd modem?
Replies: 27
Views: 1239

Re: Optimum cable and 2nd modem?

My NJ internet service is about $60 for the Optimum 60 (with a built-in $5 discount for basic TV already). I suspect the problem is at the media provider's end and time of day traffic, not Optimum. What is the media provider? There have been recent posts about buffering with DirecTVNow. Do you have...
by DSInvestor
Mon Jan 09, 2017 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: What form to combine to Vanguard IRAs?
Replies: 2
Views: 143

Re: What form to combine to Vanguard IRAs?

I don't think you need a form. You can exchange from fund(s) in your TIRA to any fund(s) in your SEP-IRA.
by DSInvestor
Mon Jan 09, 2017 2:18 pm
Forum: Personal Consumer Issues
Topic: Getting Subaru Legacy(4Cyl 2.5L or V6 3.6R?)
Replies: 51
Views: 3578

Re: Getting Subaru Legacy(4Cyl 2.5L or V6 3.6R?)

I've noticed what seems to be a Boglehead forum trend of Subaru enthusiasts. I've never owned a Subaru. I'm sure like most car buying, much of it is personal preference. I'm curious, from the Subaru owners on here what makes you a Subaru fan as opposed to other brands like Toyota, Honda, etc.? Than...
by DSInvestor
Mon Jan 09, 2017 10:46 am
Forum: Personal Consumer Issues
Topic: Ways to charge money on Credit Card
Replies: 21
Views: 1978

Re: Ways to charge money on Credit Card

I use credit card to pay for:
- Cell phone
- cable bill
- propane bill
- health insurance
- auto insurance
- home insurance
- umbrella insurance
- storage locker
- college tuition (have not done this in a while).

I am not charged extra fees for paying these with credit card.
by DSInvestor
Sun Jan 08, 2017 2:13 pm
Forum: Personal Consumer Issues
Topic: Best Ways to Buy Time
Replies: 62
Views: 6395

Re: Best Ways to Buy Time

Can you reduce time at work without reducing income? When I was an IT consultant, I saw many salaried employees stay well past quitting time.
by DSInvestor
Sun Jan 08, 2017 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Changing Credit Cards within same Bank/Issuer
Replies: 8
Views: 472

Re: Changing Credit Cards within same Bank/Issuer

I just saw this thread pop up about Chase Sapphire Reserve stopping the 100K bonus points on JAN 11, 2017.
viewtopic.php?f=2&t=207309&newpost=3184416
by DSInvestor
Sun Jan 08, 2017 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Need Advice. Tradition 401(k) vs Roth 401(k)
Replies: 19
Views: 869

Re: Need Advice. Tradition 401(k) vs Roth 401(k)

Max out Traditional 401k and Roth IRA (via backdoor if necessary). The Traditional 401k contributions will reduce your AGI by 18K which will save you a substantial amount of Fed and CA income tax. The lower AGI with Traditional 401k will help you stay eligible for direct Roth IRA contributions. CA s...
by DSInvestor
Sun Jan 08, 2017 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Changing Credit Cards within same Bank/Issuer
Replies: 8
Views: 472

Re: Changing Credit Cards within same Bank/Issuer

I did this at citi bank. I asked them to change my Citi Thank You Rewards to Citi Double Cash. This should be possible at Chase.
by DSInvestor
Sun Jan 08, 2017 11:45 am
Forum: Investing - Help with Personal Investments
Topic: Does a spousal Backdoor Roth make sense in this situation?
Replies: 11
Views: 904

Re: Does a spousal Backdoor Roth make sense in this situation?

Traditional IRA deduction is subject to phase out if you or your spouse is covered by an employer plan. If neither of you were covered by an employer plan, then Traditional IRA deduction is allowed no matter how high your income as long as you have sufficient compensation to support the contribution...
by DSInvestor
Sun Jan 08, 2017 12:22 am
Forum: Investing - Help with Personal Investments
Topic: Divesting Higher Expense Ratio Funds
Replies: 12
Views: 940

Re: Divesting Higher Expense Ratio Funds

If you haven't done so already, make sure you're not reinvesting dividend and capital gains distributions in those high cost funds.

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