Search found 118 matches

by Yeti
Fri Jul 14, 2023 9:02 am
Forum: Personal Investments
Topic: Is selling I-bonds in the current environment a wise move?
Replies: 86
Views: 8537

Re: Is selling I-bonds in the current environment a wise move?

I'm redeeming most, if not all, of my I bonds once the 3 month penalty is comprised of the 3.38% rate. My bonds right now are still paying 6.48%. Once they update to 3.38%, I wait 3 more months so the penalty is 3 months of 3.38% and I still get the 6.48%. MrJedi, Just a side FYI - as soon as the website updates your rate to the 3.38%, you can sell at that time and not worry about losing any of the 6.48% rate. This is already taken into account from the beginning (remember when you weren't receiving any interest for the first three months on the balance?). Regards! Yeti Not true. The website will show your newest rate, but then withhold the last 3 months of interest if you are within 5 years. If your rate just changed to 3.38%, then that m...
by Yeti
Fri Jul 14, 2023 8:18 am
Forum: Personal Investments
Topic: Is selling I-bonds in the current environment a wise move?
Replies: 86
Views: 8537

Re: Is selling I-bonds in the current environment a wise move?

MrJedi wrote: Fri Jul 14, 2023 6:16 am I'm redeeming most, if not all, of my I bonds once the 3 month penalty is comprised of the 3.38% rate. My bonds right now are still paying 6.48%. Once they update to 3.38%, I wait 3 more months so the penalty is 3 months of 3.38% and I still get the 6.48%.
MrJedi,
Just a side FYI - as soon as the website updates your rate to the 3.38%, you can sell at that time and not worry about losing any of the 6.48% rate Wait for the 3.38% and then add three months to get full 6.48% - corrected. This is already taken into account from the beginning (remember when you weren't receiving any interest for the first three months on the balance?).

Regards!
Yeti

edit for correction
by Yeti
Mon Jan 27, 2020 10:42 am
Forum: Investing - Theory, News & General
Topic: Oil and Gas - Book recommendations
Replies: 35
Views: 3091

Re: Oil and Gas - Book recommendations

Just a few observations: 1.) Global demand for oil is not falling and won't be falling in the near future. Demand is expected to be at 101.6 million BOPD here in 2020. This is an increase of 1.5 to 2% from one year ago and 16.3 million BOPD since 2006. https://www.statista.com/statistics/271823/daily-global-crude-oil-demand-since-2006/ 2.) The Permian Basin wells decline at astronomical rates, upwards of 85% in their first year. The field's base decline rate has grown in the range of 40-50%. If the Permian Basin is making somewhere around 4.7 million BOPD today and no more wells were drilled, that production would fall to 2.35 to 2.8 million BOPD by this time next year - that's huge. https://www.businesswire.com/news/home/20191212005134/en/...
by Yeti
Fri Apr 06, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Going from W2 to 1099 Contract Labor
Replies: 5
Views: 743

Re: Going from W2 to 1099 Contract Labor

DSInvestor,

I appreciate you taking the time to respond.

If I understand correctly, as a sole proprietor with a solo 401k, you can funnel $18.5k for the employee contribution and then 20% of your net income for profit sharing? The entire net income is subject to the 15.3% self employment tax; the solo 401k does not lower your income for tax purposes.

I do prepare our own taxes and it sounds like unless you have substantial revenue, where paying yourself a reasonable salary would save you large amounts of money in lower payroll taxes, the sole proprietor would be the way to go?

-Yeti
by Yeti
Fri Apr 06, 2018 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Going from W2 to 1099 Contract Labor
Replies: 5
Views: 743

Going from W2 to 1099 Contract Labor

Hello,

My wife is considering going from a w2, full-time employee to contract labor for the same company. She'd be working from home on an as-needed, project basis. What would be the best way to go about this? I'd like to become more familiar with the benefits/drawbacks of sole proprietor, S-corps, C-corps, incorporated, etc; any recommendations on resources?

Gross income of $40-100k
Would like to funnel as much of the income as possible into a solo 401k or SEP IRA
Keep taxes as low as possible

I appreciate any guidance you have to offer.
-Yeti
by Yeti
Fri Feb 09, 2018 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Form 8606 (Nondeductible IRAs)
Replies: 69
Views: 12670

Re: IRS Form 8606 (Nondeductible IRAs)

Epsilon Delta wrote: Fri Feb 09, 2018 12:23 pm
Yeti wrote: Fri Feb 09, 2018 10:55 am I made a non-deductible contribution to an IRA in 2015 and filled out form 8606 to reflect that contribution on my 2015 taxes. Do you have to keep filing form 8606 each year if there isn't a contribution made or a distribution taken?

Yeti
No, you only need to file the 8606 for certain IRA transactions. You don't need one if it's just sitting there earning money.

However when you do get around to making a contribution or distribution in a later year you need the last 8606 you filed. I keep a copy of the last 8606 I filed with my most recent years tax return so everything I need next year is in the same file.
Thank you, Epsilon Delta.
by Yeti
Fri Feb 09, 2018 10:55 am
Forum: Personal Finance (Not Investing)
Topic: IRS Form 8606 (Nondeductible IRAs)
Replies: 69
Views: 12670

Re: IRS Form 8606 (Nondeductible IRAs)

I made a non-deductible contribution to an IRA in 2015 and filled out form 8606 to reflect that contribution on my 2015 taxes. Do you have to keep filing form 8606 each year if there isn't a contribution made or a distribution taken?

Yeti
by Yeti
Mon Jan 29, 2018 10:11 am
Forum: Personal Consumer Issues
Topic: H&R Block 1099G state tax refund issue
Replies: 15
Views: 3792

Re: H&R Block 1099G state tax refund issue

Separate to your issue but sort of related; last year H&R Block listed my local tax refund as 'PRIZED & AWARDS' on my 1040. I could not find a way to change this description in the few minutes I allotted for research on the topic. I had forgotten about it and it eventually stopped bothering me... until today. Kidding :happy (sort of).

Yeti
by Yeti
Mon Jan 29, 2018 9:04 am
Forum: Personal Investments
Topic: Oil and Gas Limited Partnerships
Replies: 16
Views: 1828

Re: Oil and Gas Limited Partnerships

Hi dmk395,

There are some royalty trusts out there on the market where you basically receive the net profits on future barrels. These trusts have a limited life before the interest reverts back to the trust. Three items come into play: commodity prices, decline of the assets and operating expenses.

The royalty trusts' taxes are pretty simple (especially if you hold in an IRA) and you don't receive a K-1 like an MLP.

Stay away from the royalty trusts that deal with a lot of drilling.

Yeti
by Yeti
Mon Dec 11, 2017 4:05 pm
Forum: Investing - Theory, News & General
Topic: Contribution to family member's IRA
Replies: 4
Views: 789

Re: Contribution to family member's IRA

Thank you for the quick response, delamer.

Yeti
by Yeti
Mon Dec 11, 2017 10:35 am
Forum: Investing - Theory, News & General
Topic: Contribution to family member's IRA
Replies: 4
Views: 789

Contribution to family member's IRA

Hello,

Can a person, say a family member, make a contribution to their relative's IRA account by sending in a check to vanguard with the appropriate fund deposit slip?

This is assuming the the recipient party has sufficient income for earned income requirements and that they won't be over contributing for the year.

Thank you,
Yeti
by Yeti
Wed Nov 01, 2017 11:36 am
Forum: Personal Consumer Issues
Topic: Robot vacuum for pet hair and hardwood floor
Replies: 21
Views: 2735

Re: Robot vacuum for pet hair and hardwood floor

sophie1 wrote: Tue Oct 31, 2017 7:37 am ...Robot vacuum + pile of cat vomit = disaster.
I apologize for laughing at your expense but that's too funny. I remember some photos years ago of "Roomba fails".

Yeti
by Yeti
Tue Oct 17, 2017 9:38 am
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 566
Views: 86615

Re: TD Ameritrade dropping Vanguard from commission-free ETFs

Smokey21,

I read the same email this morning. I haven't had a chance to look into ER's of the funds replacing the vanguard funds, have you? I don't really care if the fund is the same (ie a Vanguard fund) as long as it tracks the same index at a low, reasonable cost.

Yeti
by Yeti
Thu Sep 28, 2017 1:51 pm
Forum: Investing - Theory, News & General
Topic: Oil - Price & Supply/Demand Conundrum
Replies: 62
Views: 6182

Re: Oil - Price & Supply/Demand Conundrum

I just want to clarify a common misconception. The real game changer to the US oil and gas industry in the past 10-15 years has been the combination of horizontal drilling with hydraulic fracturing. Hydraulic fracturing is not new to the industry as it has been going on (purposely) since the 1940's. The real advancements in technology have come from the directional drilling side. Being able to hit a target 2+ miles below the surface and 2+ miles out in the horizontal is pretty impressive. Hydraulic fracturing's key advancements have come in the form of friction reducers for higher rates and less friction pressure.

-Yeti
by Yeti
Tue Sep 05, 2017 11:29 am
Forum: Personal Consumer Issues
Topic: Saving money on energy bills (California)?
Replies: 15
Views: 3343

Re: Saving money on energy bills (California)?

I chose a different green solution. So Cal Edison allows people to sign up for either 50% or 100% of your total electrical use from renewables. It costs about 10% more, and I'm more than willing to put my money where my values are. To save money, I compulsively turn off lights and appliances, have switched every single fixture to either fluorescent or newer LED, and buy top end Energy Star appliances - saving money every day pays off. My electric bill averages $35 ..... except in the dog days of summer where I run the air conditioner for about two or three weeks each year. Getting a notice on the 'peak' days to minimize your personal use will help lessen use of dirtier fossil fuels... Tragically that is when I need it most! I respectfully ...
by Yeti
Fri Sep 01, 2017 3:52 pm
Forum: Personal Consumer Issues
Topic: Dropped envelope of money at bank... Any lawyers here?
Replies: 72
Views: 6264

Re: Dropped envelope of money at bank... Any lawyers here?

Main question is, how can you get a subpoena from the court if you don't know who you are suing to create the case in the first place? Do you just sue the bank? Sue a random person who works at the bank? Google "Bill of Discovery." Hi mptfan, I googled "Bill of Discovery". Here it is for others: Bill of discovery is a bill wherein the only relief sought is a discovery. It is a pleading that seeks the disclosure of facts known by the adverse party. In a bill of discovery, no demand will be made for the recovery of damages or the accomplishment of anything other than a disclosure by the defendant. So you go to the court and reference you'd like to make a case and reference 'Bill of Discovery'? I'm honestly surprised the d...
by Yeti
Fri Sep 01, 2017 3:46 pm
Forum: Personal Consumer Issues
Topic: Dropped envelope of money at bank... Any lawyers here?
Replies: 72
Views: 6264

Re: Dropped envelope of money at bank... Any lawyers here?

If I didn't get results, and depending on the $ amount (which I am assuming was material enough to worry about) I'd probably be in there every day demanding to know the status. Go during the peak times. Make sure you are loud enough to make everybody, including other customers around you uncomfortable. Emphasize that you are concerned that money is being stolen and the bank is hiding it, and you are concerned with the safety of your money and everybody else's money. If any other customers give you crap, explain to them what happened. Explain to them the bank employee dropped and lost the money. That will make the bank employees very uncomfortable. What have the police said? Does an actual warrant have to be issued for release of the video?...
by Yeti
Fri Sep 01, 2017 3:32 pm
Forum: Personal Consumer Issues
Topic: Dropped envelope of money at bank... Any lawyers here?
Replies: 72
Views: 6264

Re: Dropped envelope of money at bank... Any lawyers here?

Thank you for all of the replies so far.

Main question is, how can you get a subpoena from the court if you don't know who you are suing to create the case in the first place? Do you just sue the bank? Sue a random person who works at the bank?

Yeti
by Yeti
Fri Sep 01, 2017 3:28 pm
Forum: Personal Consumer Issues
Topic: Dropped envelope of money at bank... Any lawyers here?
Replies: 72
Views: 6264

Re: Dropped envelope of money at bank... Any lawyers here?

The bank is not free to ignore a court subpoena, assuming the police/prosecutors want to go in that direction. Your friend could also sue the unnamed defendant and the bank, and then issue a discovery request for the identity of the individual, which the bank would also not be free to ignore. This should get resolved shortly. As another poster suggested, it is bizarre that the bank has not already cooperated with the police on this. They may be taking the time to inform the individual as a courtesy before handing over his identity. Hi TSR, This is along the lines of what I was thinking. But how can you get a court subpoena to sue an unknown (unknown to us that is) defendant, in this case the person on the video? Or, like you said, sue the ...
by Yeti
Fri Sep 01, 2017 3:23 pm
Forum: Personal Consumer Issues
Topic: Dropped envelope of money at bank... Any lawyers here?
Replies: 72
Views: 6264

Re: Dropped envelope of money at bank... Any lawyers here?

sergeant wrote: Fri Sep 01, 2017 3:16 pm More than likely the person feeding you the information is incorrect. I bet the bank is cooperating with LE. This will take LE a few days to handle. It's a property crime, not high on the list of things that need immediate attention. In my jurisdiction we would contact the person that "found" the cash, retrieve it, release to the victim, and maybe submit a case to the DA for misappropriation of found property.
Hi Sergeant,

The person feeding me the information is a close relative and it would be improbable that the information is not accurate. The detective and/or LE cannot contact the person that found the cash due the bank not cooperating by releasing the video tape or the person's identity.

Yeti
by Yeti
Fri Sep 01, 2017 2:46 pm
Forum: Personal Consumer Issues
Topic: Dropped envelope of money at bank... Any lawyers here?
Replies: 72
Views: 6264

Dropped envelope of money at bank... Any lawyers here?

Hello fellow Bogleheads, An acquaintance of mine was recently at a bank to exchange some $USD for foreign currency. This person walked up to the counter with the envelope of money and the teller told them that they'd have to meet with the person across the lobby, in an office, for the exchange. The person kindly obliged, attempted to stick the envelope in their back pocket only to have it unknowingly drop on the floor. A few minutes had passed in conversation about needing to exchange the currency before realizing the envelope was not in the back pocket. They went out to the lobby, no customers were around and the envelope was not anywhere to be found. An even longer story short, the bank reviewed the surveillance video, saw this person dro...
by Yeti
Fri Sep 01, 2017 2:20 pm
Forum: Personal Consumer Issues
Topic: Saving money on energy bills (California)?
Replies: 15
Views: 3343

Re: Saving money on energy bills (California)?

Anyone here tried Ohmconnect in California? It looks like it's a 3rd party service that competes with PG&E's SmartRate. The gist of it is that they will measure your baseline energy usage and then send a warning once a week or so to reduce usage during the very peak hours. You get energy savings and they take a 20% cut. They claim you save more money than PG&E's internal program . Anyone have positive/negative experiences with it? I just signed up to see how this works. If anything, their referral program gives you (and me) an easy $20 that you can cash out immediately and swap back to SmartRate if their program isn't working well for you. Their site is here [OT comment removed by admin LadyGeek] Hi pduan87, I don't think I'd recom...
by Yeti
Tue Jun 27, 2017 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Bank Account - Payable on Death or Account Co-Owner
Replies: 14
Views: 2095

Re: Bank Account - Payable on Death or Account Co-Owner

In addition to your wife, are there other siblings and/or heirs? If so, then (depending on the nature of the relationships) I would keep them informed so that there is less likely to be confusion and misunderstanndings. Although it all worked out 100% fine, this situation of my wife is an example of a potential "problem". My wife's parents were of very modest/low means, income and assets. When her father died, all went to her mother. Eventually, her mother sold their house. About half of her assets were bank deposits. My wife had one surviving subling (sister) who lived nearby. My mother-in-law, for convenience, added my wife's sister to all bank accounts. Then she died. Her will and her desire was that her assets be split equall...
by Yeti
Mon Jun 26, 2017 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Bank Account - Payable on Death or Account Co-Owner
Replies: 14
Views: 2095

Re: Bank Account - Payable on Death or Account Co-Owner

dm200 wrote:
Big Dog wrote:
My in-laws wish to make my wife a co-owner on a bank checking account so she would be able to take care of expenses if there was an accident where they (her parents) both pass or are incapacitated unexpectedly.
Why not just add her as a signer on their bank account?
I think (not 100% sure so check with bank or credit union) that such signer authorizations may cease at death of owner.
Big Dog,

Thanks for the suggestion. After researching the details (was unfamiliar), dm200 is correct in that authorization ceases at death.
by Yeti
Mon Jun 26, 2017 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Bank Account - Payable on Death or Account Co-Owner
Replies: 14
Views: 2095

Re: Bank Account - Payable on Death or Account Co-Owner

Thank you for the additional comments and clarity on when PoA and PoD's become active/inactive.

At the moment, checking accounts pay little / no interest. In the future this might change and I wonder where the 1099 will be sent to; I suppose they would receive it since they'd be listed first on the account. It would be easier, in my eyes, if we'd utilize the PoA and PoD combination for this account.
by Yeti
Mon Jun 26, 2017 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Bank Account - Payable on Death or Account Co-Owner
Replies: 14
Views: 2095

Re: Bank Account - Payable on Death or Account Co-Owner

Thank you for the responses. If any of your wife’s money were in the joint checking account that money may be subject to a judgement lien. Otherwise I can’t think up a scenario where your wife would have liability exposure to the torts of here parents merely because of joint ownership of a checking account. On a related matter, take care to see how the checking account is titled: joint tenants with right of survivorship (JTWROS) or tenants in common. Should her parents pass away in many jurisdictions a JTWROS titled account by-passes probate. With tenants in common her parents’ portion of the account might have to be probated. It would be fully funded by her parents specifically for expenses in an event where they are incapacitated or decea...
by Yeti
Mon Jun 26, 2017 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Bank Account - Payable on Death or Account Co-Owner
Replies: 14
Views: 2095

Bank Account - Payable on Death or Account Co-Owner

Hello,

My in-laws wish to make my wife a co-owner on a bank checking account so she would be able to take care of expenses if there was an accident where they (her parents) both pass or are incapacitated unexpectedly. Is being a co-owner the best way to go about this? Can this make our assets liable in any way, shape or form if there was an accident in which they were at fault and they come back on accounts and account owners? I wouldn't think so but I also wouldn't be surprised if that has happened in the past.

Thank you in advance for your response!
Yeti
by Yeti
Mon May 08, 2017 10:06 am
Forum: Investing - Theory, News & General
Topic: Anyone use Python to analyze their finances?
Replies: 65
Views: 22238

Re: Anyone use Python to analyze their finances?

Interesting. I have been going through Codecademy and 'Learn Python the Hard Way' just to get familiar with the language over the past few weeks. I don't really have any strong background in writing code, mainly VBA to facilitate spreadsheets.

Are there any books that you would recommend on Python that you have found to be invaluable? Any other resources that you'd recommend?

Thanks!
Yeti
by Yeti
Fri Apr 28, 2017 3:52 pm
Forum: Personal Investments
Topic: Need to pull money out of my brokerage account. Anything to watch out for?
Replies: 17
Views: 2136

Re: Need to pull money out of my brokerage account. Anything to watch out for?

Hi InvestingInAR,

Is there any way you can do something like a Bridge Loan instead of selling equities? This would use your current home as collateral and it would bypass a possible tax liability with the sale of your fund.

We had a slightly different circumstance when we utilized this type of loan but I would think it'd apply in your situation.

Yeti
by Yeti
Fri Apr 21, 2017 1:29 pm
Forum: Personal Investments
Topic: Investment Advice new member 30 years old
Replies: 11
Views: 2591

Re: Investment Advice new member 30 years old

swolesavage wrote:I will be eligible for a 401k this October but there is no match. I would like to contribute 15% of our income in the future, maybe when the car is paid off yes. My wife recently quite her job to say home with our baby so no 401k their. She made enough early this year to contribute to her Roth IRA maxed out.
Duckie has given you some good advice. I just wanted to point out that your wife doesn't need earned income to contribute to a Roth IRA (see spousal IRA contribution).

Good luck!
Yeti
by Yeti
Thu Apr 20, 2017 1:40 pm
Forum: Investing - Theory, News & General
Topic: Anybody purposely loading up on mortgage debt?
Replies: 107
Views: 14365

Re: Anybody purposely loading up on mortgage debt?

In late 2012 we sold our home and purchased a new home. In the process, we only put down enough to avoid PMI on the new home leaving us a good chunk of equity in which we invested in our existing asset allocation (80% equities / 20% bonds). Our investments have averaged ~12% gain annually since then.

Did we get lucky? Yes. Would we do it all over? Absolutely. We were in our mid to late 20's in 2012 and we were comfortable using the leverage to increase our exposure in the market. We itemize our deductions which takes our effective interest rate down to ~2.35% (30 year term). With very minimal to no risk you can accomplish this rate of return over 30 years.

Yeti
by Yeti
Tue Mar 24, 2015 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Best Bank for Checking Account
Replies: 29
Views: 7223

Re: Best Bank for Checking Account

Drew777 wrote:
Toons wrote:Capital One 360 Checking :happy

https://home.capitalone360.com/online-checking-account
I recently switched to Capital One 360, and I love it. Got a $200 signup bonus. No fees, not even for overdrafts. I really like the mobile check deposit, online checks, and the website overall as well. There are plenty of ATMs near me also.
I received a $400 bonus for opening a Capital One 360 account and making two direct deposits (a targeted offer?). Seems like it'll be a no-hassle, easy to use checking account.

Yeti
by Yeti
Tue Mar 17, 2015 1:38 pm
Forum: Personal Investments
Topic: Who's buying Oil stocks?
Replies: 168
Views: 29811

Re: Who's buying Oil stocks?

The buildup of inventories is impressive. The world is literally going to run out of storage tanks and anchored tankers to put this stuff into. The evidence from fracked natural gas suggests drilling doesn't drop off that quickly (a counterpoint: gas drilling kept going on to get the high value oil). We are building up for a nice glut, here. Wait for the mullahs to get their oil to market in Iran. Front page of the paper in the WSJ this morning. I think second quarter earnings will be the trough in oil prices - say July to late August. The marginal players are going to be pushed to the brink or over the edge. Look for the railroad companies to start getting pinched - all those rail shipments? No need to pay $10 a barrel shipping costs, whe...
by Yeti
Tue Mar 17, 2015 1:25 pm
Forum: Personal Investments
Topic: Who's buying Oil stocks?
Replies: 168
Views: 29811

Re: Who's buying Oil stocks?

Most of my investments in oil and gas come from index funds. However, my life revolves around oil and gas and I am grateful for what that industry has given us. Until that changes, which it will not in my lifetime nor likely my kiddos' lifetime, I will be supportive of the industry. Yeti I don't know how old you are, but the beginnings of the change have already begun. The first electric power (almost) was hydro, and wind and solar are simply its logical descendants. These changes tend to start small--almost imperceptibly. Lots of false starts. Lots of failures (I still expect Tesla to go bust with a bang-- but Musk is proving himself to be sharper than I am ;-)). Giant changes in the use of technology in society take decades (there's some...
by Yeti
Tue Mar 17, 2015 10:35 am
Forum: Personal Investments
Topic: Who's buying Oil stocks?
Replies: 168
Views: 29811

Re: Who's buying Oil stocks?

Can't wait to hear the environmentalists screaming about the oil companies giving away the product for free. :twisted: As an environmentalist myself, I don't fear low oil prices at all. I'm getting my popcorn. I think in 10 years, investing in oil will be about as popular/sensible as investing in coal is today. :twisted: Does that mean I can shut the flow of natural gas you use to heat your home today? Give me your address. Same when you enter the gas station to fuel up your car - since you don't believe in the product, no need to sell it to you. :) Plan on going on vacation to the Caribbean islands after that extremely cold winter you experienced? The sailboat will be waiting for you by the Ben Franklin bridge, Bon Voyage - you might reac...
by Yeti
Mon Mar 09, 2015 8:59 am
Forum: Personal Investments
Topic: Recharacterized from Roth to tIRA now want to Roll it over
Replies: 5
Views: 669

Re: Recharacterized from Roth to tIRA now want to Roll it ov

To clarify, it shows it as a rollover contribution in tax year 2015 but it didn't have an effect on my allowed contributions of $5,500 for 2015.
by Yeti
Fri Mar 06, 2015 2:50 pm
Forum: Personal Investments
Topic: Recharacterized from Roth to tIRA now want to Roll it over
Replies: 5
Views: 669

Re: Recharacterized from Roth to tIRA now want to Roll it ov

I was hoping you'd reply, Alan S. Thank you!
(You might check right away from your SEP statement that the recharacterized TIRA contribution does NOT show up as a SEP contribution)
The recharacterization went into my SEP as a 2014 employee contribution - isn't that okay?

Yeti
by Yeti
Fri Mar 06, 2015 10:34 am
Forum: Personal Finance (Not Investing)
Topic: How much did you have saved up for retirement at age 30?
Replies: 173
Views: 27842

Re: How much did you have saved up for retirement at age 30?

NeutrinoPerson wrote:(removed)
Slightly off topic but just an observation - why have you been editing all of your posts to "removed"?

Yeti
by Yeti
Fri Mar 06, 2015 10:26 am
Forum: Personal Investments
Topic: Recharacterized from Roth to tIRA now want to Roll it over
Replies: 5
Views: 669

Recharacterized from Roth to tIRA now want to Roll it over

Hello, I would like to run through the details of a recharacterization and then a rollover back to Roth IRA. Does everything look to be in order? The wife and I made a contribution to our 2014 Roth IRA's in January of 2014. Well after a decent pay raise and a slightly higher bonus than expected it placed us in the MAGI phaseout range after running everything through our tax software. The tax software calculated how much we over contributed and I confirmed the calculation by hand. I called Vanguard and told them the specific amount to recharacterized from the Roth IRA's to our tIRA's (I sent mine to my SEP IRA and created a tIRA account for the wife). Vanguard took the amount I told them to recharacterize, they calculated the gains for that ...
by Yeti
Thu Feb 26, 2015 9:32 am
Forum: Personal Finance (Not Investing)
Topic: How much did you have saved up for retirement at age 30?
Replies: 173
Views: 27842

Re: How much did you have saved up for retirement at age 30?

NeutrinoPerson wrote:See title.

1. By the time you were age 30, how much did you have saved up in your retirement accounts (in today's terms http://www.usinflationcalculator.com )? 401k, Roth IRA, etc?

2. Was it not enough? Just right? More than enough? Why?
The Mrs. and I (ages 30 and 29) w/ two kids ages 2 and 4 just passed $450k ($200k in taxable and $250k in tax advantaged). Net worth just north of ~$750k. Found bogleheads back in 2007 (?) and didn't make too many expensive investing mistakes before then.

I believe we are on the track to success but we do spend a significant amount of money each month (so it seems in my eyes).

Yeti
by Yeti
Fri Feb 20, 2015 11:42 am
Forum: Personal Investments
Topic: Just started thinking about finances - Planning ahead advice
Replies: 23
Views: 1991

Re: Just started thinking about finances - Planning ahead ad

Hello Dear Bogleheads, I am not used to thinking about future finances and planning for future as we come from a lower middle class background and as of now its just paycheck to paycheck. Got married recently and want to take charge of our finances as I know its very important. I request your patience as there are multiple things coming together in 2015. I will try to make it as clear as possible. Me - 31 yrs, Him - 32 yrs Just inherited $20,000 through my husbands relative. And I owe IRS $3500 in tax return... Hi newstart, I vote for paying off all credit card debt and stash the rest into an emergency fund. Develop a budget that gives you a net gain at the end of the month and stick to it. Assuming you were married in 2014 and you are now...
by Yeti
Fri Feb 20, 2015 8:37 am
Forum: Personal Investments
Topic: where to put excess cash
Replies: 18
Views: 4674

Re: where to put excess cash

I am 30, wife is 31. My wife and I currently max out both of our 401(k), Roth IRA, and also max for 529 state tax deduction. I also contribute a set amount to my taxable retirement accounts. All retirement accounts are calculated as a single asset allocation. I also have 6 month emergency fund. I still have money left over I want to put into savings. I don't have any set goals for this money, nor do I have a specific goal I am saving for or timeline to use it. The biggest thing down the road would possibly be a down-payment for a house, but I have no specific plans nor a timeline for that. So the question is, with extra taxable money left over with no set goal or timeline, where should I put that money? I don't want to mix it in with retir...
by Yeti
Mon Feb 16, 2015 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: MAGI now too high - Roth IRA question
Replies: 10
Views: 1927

Re: MAGI now too high - Roth IRA question

Thank you everyone for your help! Going to recharacterize today. And from what I am reading, I do NOT have convert MY SEP IRA from years ago quite yet? I still plan on doing so, in order to do the backdoor, but not quite yet. slurpieman, If you recharacterize from a Roth contribution to a Traditional IRA contribution and then perform a backdoor Roth, you will have to take into account your SEP IRA's proportionate share. If I understand it correctly - say your recharacterization (plus gains) is worth $6000 now (originally $5500 contributed and $500 gains) and you have $60,000 in your SEP IRA, you would have to pay tax on approximately 91% of the $6000 you are looking to contribute through the backdoor. I believe this is how it works when de...
by Yeti
Mon Feb 16, 2015 8:55 am
Forum: Personal Consumer Issues
Topic: Car issues. [2009 Cadillac CTS - fix or sell]
Replies: 56
Views: 11224

Re: Car issues. [2009 Cadillac CTS - fix or sell]

Unless someone has examined OP's engine...all we can offer are opinions and generalizations. I have friends who would never go near a domestic...and I have people who wouldn't touch an import. Both are extremes. I have done repairs for super cheap due to my research on my particular car model, and there was a reent reddit thread where someone did a DIY fix on their hybrid that the dealership quoted $4400...and the guy found out it was some dirty contacts on the batt terminals that required some soaking in baking soda/vinegar which took 2 hours and like $10 in supplies. So it can be something simple and cheap or something very expensive. There have been numerous comments on this engine burning (and other commenters saying how THEIR 3.6L has...
by Yeti
Fri Feb 13, 2015 2:38 pm
Forum: Personal Consumer Issues
Topic: Car issues. [2009 Cadillac CTS - fix or sell]
Replies: 56
Views: 11224

Re: Car issues. [2009 Cadillac CTS - fix or sell]

I recently owned a 2009 CTS - purchased new and it burned approximately 0.5 to 0.75qts between 6,000 mile oil changes. We ended up trading it in for an SUV a couple of years ago due to having kids (I mean seriously, have you seen how big car seats are?!?).

Your situation seems to be extreme - how many miles do you go between oil changes (sorry if I missed this information)? If you do get tires put on the car and you trade it in, it will likely be a close wash in $$ to you with the dealer - i.e. if you don't get tires they will give you less, if you do get tires they will give you more.
by Yeti
Fri Feb 13, 2015 2:11 pm
Forum: Personal Consumer Issues
Topic: I need a recommendation for a pressure washer.
Replies: 26
Views: 9900

Re: I need a recommendation for a pressure washer.

Electric, 1600-2000 PSI, <$200.00 I will use it primarily to clean the concrete driveway, patio, etc. The reviews I have been reading say the AR383 from Amazon is a good device however there were 2 readings that I noted that would bother me. http://www.amazon.com/AR-AR383-Electric-Pressure-Washer/dp/B002Z8E52Y The hose seems to be stiff and troublesome, leading to the washer tipping over. The length of gun and wand is reported to be short in that a 5'8" male would have to bend to get the tip close to the patio. That would cause my back grief. Does anyone have a recommendation or can put to rest, my concerns about the AR383 ? thanks Hi Hexdump, I too am in the market for a new pressure washer to pretty much do the same tasks as you des...
by Yeti
Wed Feb 04, 2015 10:53 am
Forum: Personal Investments
Topic: Approaching Roth IRA income limits
Replies: 15
Views: 2690

Re: Approaching Roth IRA income limits

Hi DJB,

If you'd like to be proactive - you could re-characterize your roth IRA contribution to a traditional non-deductible IRA contribution and then perform a backdoor roth IRA contribution. Keep in mind that if you have any other rollover IRA's from previous 401ks or SEP ira's, this may not be the best option (re: tax consequences).

If you don't have any IRA's from rollover 401k's or SEP Ira's, I would recommend contributing to a non-deductible IRA and performing a rollover to your Roth IRA immediately after for your future contributions - this way you won't have to worry about income phaseout limits.

Yeti
by Yeti
Mon Feb 02, 2015 10:42 am
Forum: Personal Investments
Topic: Accidentally contributed to Roth IRA
Replies: 39
Views: 12659

Re: Accidentally contributed to Roth IRA

I have a related question. I was "householding" My husbands accounts so we are all at one broker and found that in 2005 he put his Roth contribution into a traditional IRA. We never deducted it on our taxes. How do I get these funds moved to a Roth without paying taxes we shouldn't have to pay? Is there a form for "I made a stupid mistake"? Welcome to the forum. It is too late to recharacterize, but the traditional IRA can be converted to Roth IRA and taxes will be due on only the earnings that have occurred since the contribution. A couple of cautions.... He will need to file (late, obviously) a Form 8606 for the non-deductible contribution to tIRA for the year for which he made the contribution. Old forms are availabl...
by Yeti
Mon Feb 02, 2015 10:36 am
Forum: Personal Investments
Topic: Who's buying Oil stocks?
Replies: 168
Views: 29811

Re: Who's buying Oil stocks?

I'm familiar with three types of RTs. Conventional ones like BPT,PBT, SJT, etc which receive Royalties and pass them on to unitholders who can take depletion. Then there are others like PER, SDT, SDR which report on a K1 and pass through, Interest and Royalties and unitholders can take depletion. The last one is unique in that your investment is in effect treated as a mortgage loan. Parts of each distribution are considered interest and return of Principal. MVO, WHX, and VOC are examples. I've read their tax booklets multiples times and still get confused. Is there a fourth variant ? You've covered each structure of RT that I am familiar with. I am most familiar with the RT structured like a mortgage loan w/ the return of principal. Yeti
by Yeti
Mon Feb 02, 2015 10:14 am
Forum: Personal Investments
Topic: Accidentally contributed to Roth IRA
Replies: 39
Views: 12659

Re: Accidentally contributed to Roth IRA

I have a related question. I was "householding" My husbands accounts so we are all at one broker and found that in 2005 he put his Roth contribution into a traditional IRA. We never deducted it on our taxes. How do I get these funds moved to a Roth without paying taxes we shouldn't have to pay? Is there a form for "I made a stupid mistake"? Welcome to the forum. It is too late to recharacterize, but the traditional IRA can be converted to Roth IRA and taxes will be due on only the earnings that have occurred since the contribution. A couple of cautions.... He will need to file (late, obviously) a Form 8606 for the non-deductible contribution to tIRA for the year for which he made the contribution. Old forms are availabl...