Search found 33 matches

by drdavidge
Sat Nov 21, 2015 1:13 am
Forum: Investing - Help with Personal Investments
Topic: Prioritizing investments - Live in NJ, work in NY, married, 1 kid
Replies: 5
Views: 619

Re: Prioritizing investments - Live in NJ, work in NY, married, 1 kid

Any other general thoughts on my plan here or things that you would do differently?
by drdavidge
Sat Nov 21, 2015 1:12 am
Forum: Investing - Help with Personal Investments
Topic: Prioritizing investments - Live in NJ, work in NY, married, 1 kid
Replies: 5
Views: 619

Re: Prioritizing investments - Live in NJ, work in NY, married, 1 kid

NJ doesn't recognize HSAs, but you still get a 28% or 35% federal tax benefit, depending on your marginal AMT rate, or 33% if you don't get hit with the AMT. That's still a great deal. (And you can avoid NJ tax on HSA investments if you invest the HSA in Treasury bonds, such as TIPS; NJ taxes neith...
by drdavidge
Sat Nov 21, 2015 1:11 am
Forum: Investing - Help with Personal Investments
Topic: Prioritizing investments - Live in NJ, work in NY, married, 1 kid
Replies: 5
Views: 619

Re: Prioritizing investments - Live in NJ, work in NY, married, 1 kid

You don't think it will make a difference? These things are calculable. I know we are proponents of the lazy portfolio around here, but laziness in tax planning could cost you thousands. Frankly, your excuse is a cop-out. Sorry for the tough love. I should have re-worded that - it is not going to m...
by drdavidge
Wed Nov 18, 2015 1:03 am
Forum: Investing - Help with Personal Investments
Topic: Wife's options: 401k or Roth 401k (no company match) or a Roth IRA?
Replies: 10
Views: 813

Re: Wife's options: 401k or Roth 401k (no company match) or a Roth IRA?

Thanks all.

About the HSA - I still have time to do that and I was considering it. Just haven't had time to run the numbers yet for my plan differences and expected medical costs.. though the triple tax savings of the HSA seems like a no brainer.
by drdavidge
Wed Nov 18, 2015 1:01 am
Forum: Investing - Help with Personal Investments
Topic: Prioritizing investments - Live in NJ, work in NY, married, 1 kid
Replies: 5
Views: 619

Prioritizing investments - Live in NJ, work in NY, married, 1 kid

Hi, I checked out the Prioritizing Investment wiki page and had some questions for me. Here's my situation: Me: I max out my 401k with employer match and max out a backdoor Roth IRA Wife: Maxes out backdoor Roth IRA. Has a 401k option at work with no match, only contributes a little bit. Earns less....
by drdavidge
Tue Nov 17, 2015 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Wife's options: 401k or Roth 401k (no company match) or a Roth IRA?
Replies: 10
Views: 813

Re: Wife's options: 401k or Roth 401k (no company match) or a Roth IRA?

Thanks. Is there anything we can do besides having it taken out of the paycheck to get it in there? Cutting it close with the end of the year and adjusting contribution percentages.
by drdavidge
Mon Nov 16, 2015 11:10 pm
Forum: Investing - Help with Personal Investments
Topic: Wife's options: 401k or Roth 401k (no company match) or a Roth IRA?
Replies: 10
Views: 813

Re: Wife's options: 401k or Roth 401k (no company match) or a Roth IRA?

Interesting. Mine are to a traditional 401k with a 4% company match and a 4% fixed contribution at the end of the year.
by drdavidge
Mon Nov 16, 2015 10:14 pm
Forum: Investing - Help with Personal Investments
Topic: Wife's options: 401k or Roth 401k (no company match) or a Roth IRA?
Replies: 10
Views: 813

Wife's options: 401k or Roth 401k (no company match) or a Roth IRA?

My wife was signed up for her 401k at work this year but they don't match anything. They also have a Roth 401k as an option. She has contributed only about $2000 to this so far this year, but I am thinking I should just move this to an IRA (and pay the tax) and do a backdoor Roth IRA. Does that soun...
by drdavidge
Sat Nov 14, 2015 10:38 am
Forum: Investing - Help with Personal Investments
Topic: Best 529 plan for a NJ resident who works in NY?
Replies: 4
Views: 431

Re: Best 529 plan for a NJ resident who works in NY?

Good idea - I ran a $10k contribution through TurboTax for last year and the net impact between NY and NJ was +$157. At least its something. Thanks.
by drdavidge
Fri Nov 13, 2015 11:39 pm
Forum: Investing - Help with Personal Investments
Topic: Best 529 plan for a NJ resident who works in NY?
Replies: 4
Views: 431

Re: Best 529 plan for a NJ resident who works in NY?

Thanks. I don't know the full details (someone please correct me if I am wrong), but from what I've managed to find on this topic, it looks like I do get a NY state tax deduction but that reduction in state tax paid reduces my credit to NJ, so it doesn't amount to much savings. But its still worth i...
by drdavidge
Fri Nov 13, 2015 10:49 pm
Forum: Investing - Help with Personal Investments
Topic: Best 529 plan for a NJ resident who works in NY?
Replies: 4
Views: 431

Best 529 plan for a NJ resident who works in NY?

Is the go-to option for someone who lives in NJ and works in NY to get a NY 529 plan since there are no tax savings with the NJ one? Or should I consider any other states? Thanks.
by drdavidge
Thu Jun 04, 2015 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with future house down payment
Replies: 5
Views: 566

Re: What to do with future house down payment

Does the same advice apply if you are in a high tax bracket and lose a lot of the 1% savings account gain to taxes? Or how about if you only needed half of your cash savings for a down payment in a few years, and wanted to invest the rest somewhere else safe but getting a bit better return than the ...
by drdavidge
Sat May 16, 2015 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Where to roll Dad's retirement plan over to? Should we?
Replies: 4
Views: 847

Where to roll Dad's retirement plan over to? Should we?

Hey, my father has an retirement plan from his former employer. He is almost 70 now. The account compounds annually, meaning they only post gains/interest once a year, on May 31st. This employee fund may be invested a bit too aggressive for his age - its about 90% stocks. My parents have alternative...
by drdavidge
Wed Apr 22, 2015 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: Tax optimizing ideas for a large retirement acct withdrawl?
Replies: 6
Views: 839

Re: Tax optimizing ideas for a large retirement acct withdra

It should only take 3-4 months but true, that is another option.
by drdavidge
Wed Apr 22, 2015 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Tax optimizing ideas for a large retirement acct withdrawl?
Replies: 6
Views: 839

Re: Tax optimizing ideas for a large retirement acct withdra

Just ran a sample tax return with different withdraws... I come up with this as incremental tax due: Withdrawal Fed Taxes State Taxes Total Effective Tax Rate Paid $20,000.00 $5,012.00 $190.00 $5,202.00 26.010% $40,000.00 $8,673.00 $512.00 $9,185.00 22.963% $60,000.00 $13,232.00 $885.00 $14,117.00 2...
by drdavidge
Sat Apr 18, 2015 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: Tax optimizing ideas for a large retirement acct withdrawl?
Replies: 6
Views: 839

Re: Tax optimizing ideas for a large retirement acct withdra

Good question but I've run all of their numbers. They can, between social security and pension payments, they clear all of their expenses and have money left over every month which goes to savings. Own their house, no debt. Plus some additional income from a rental property, plus they have some cash...
by drdavidge
Sat Apr 18, 2015 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Tax optimizing ideas for a large retirement acct withdrawl?
Replies: 6
Views: 839

Tax optimizing ideas for a large retirement acct withdrawl?

Hey, my retired father has a retirement account through his old employer. These were all pre-tax contributions so they will be taxed when withdrawn. They want to do some home improvement which will require them to withdraw about $100k from it. With their current income, they are in a pretty low tax ...
by drdavidge
Tue Apr 14, 2015 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Where to move an employee retirement fund for retired dad?
Replies: 5
Views: 753

Re: Where to move an employee annunity fund to for retired d

So I finally got some more information about the current plan - its not an annuity, they just call it the Annuity Plan.. go figure. It's just a normal employee retirement account from pre-tax contributions from my father for his years of employment there. It can be rolled over into an IRA if he want...
by drdavidge
Sat Apr 04, 2015 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: Where to move an employee retirement fund for retired dad?
Replies: 5
Views: 753

Where to move an employee retirement fund for retired dad?

Hey, my retired, 69 year old father has an annuity fund (edit: its just a regular employee retirement fund, not an annuity) through his former employer, and they said he has to move it away from them soon (or start taking monthly payments). What are my options on where he should put that cash? Defin...
by drdavidge
Sun Feb 09, 2014 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Choosing joint & survivor pension options?
Replies: 5
Views: 548

Choosing joint & survivor pension options?

Hello, My father just got his packet in the mail to start collecting his pension. His options are: Full Annuity with 60 Month Guarantee: 100% 50% Joint Annuity: 88.7% of the full, plus 50% (of the 88.7%) to the surviving spouse 775% Joint Annuity: 83.4% of the full, plus 75% (of the 83.4%) to the su...
by drdavidge
Wed May 29, 2013 7:44 am
Forum: Personal Finance (Not Investing)
Topic: Any good way to hedge against rising mortgage rates?
Replies: 7
Views: 1250

Re: Any good way to hedge against rising mortgage rates?

What about shorting Eurodollar futures? Not very familiar with this but have been reading about it.
by drdavidge
Wed May 29, 2013 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Any good way to hedge against rising mortgage rates?
Replies: 7
Views: 1250

Any good way to hedge against rising mortgage rates?

I plan on purchasing a home in 2-3 years but would love to take advantage of the current interest rates. Is there any good way to hedge out the risk of rates rising in the future when buying a home?
by drdavidge
Sat Feb 09, 2013 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA and IRS Publication 590. They messed up.
Replies: 5
Views: 3165

Re: Backdoor Roth IRA and IRS Publication 590. They messed u

I dunno. Maybe I'm wrong (definitely not a CPA..) but I would think that I should only be subject to $53 as taxable. Any thoughts from any tax pros?
by drdavidge
Sat Feb 09, 2013 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA and IRS Publication 590. They messed up.
Replies: 5
Views: 3165

Re: Backdoor Roth IRA and IRS Publication 590. They messed u

Its $5000.

Pub.590, page 44: http://www.irs.gov/pub/irs-pdf/p590.pdf

Check it out:

Image

I'm fairly confident this should only be $53 as taxable.
by drdavidge
Sat Feb 09, 2013 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA and IRS Publication 590. They messed up.
Replies: 5
Views: 3165

Backdoor Roth IRA and IRS Publication 590. They messed up.

I think there is an error in the IRS Pub 590, page 44 – the Worksheet 1-5. The note on the bottom aims to adjust for Roth conversions, but it does not work as intended. I found this out by running through TurboTax – I contributed $5000 to a Traditional in 2011, converted that ($5053) in 2012, made a...
by drdavidge
Sun Jan 06, 2013 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Conversions
Replies: 4
Views: 343

Re: Roth IRA Conversions

Thanks, this is helping clear it up. Some more info.. I have no pre-tax assets except for my work 401k and I am 28 years old. So for the $500 of gains, I wont have to pay any penalties if I convert, right? And will Vanguard send me a statement for the $500 of "income" so I have it when fil...
by drdavidge
Sun Jan 06, 2013 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Conversions
Replies: 4
Views: 343

Roth IRA Conversions

I get confused every year when I do this... I contributed $5,000 of post-tax dollars to a Traditional IRA this year and it appreciated to about $5,500. I want to convert this to a Roth now, so I went in to Vanguard buy/sell/exchange to sell the full value ($5,500) of the Traditional and buy the same...
by drdavidge
Fri Nov 26, 2010 8:44 am
Forum: Investing - Help with Personal Investments
Topic: Income jumped, overcontributed to my Roth IRA - what to do?
Replies: 9
Views: 2118

Thanks guys. So whats the strategy for 2011? If I contribute 5k to a TIRA for 2011, and convert that immediately to a Roth, how does that work? Do I have to pay taxes immediately on that 5k I just contributed and offset it with the deduction I would take for contributing to a TIRA, or do you just fo...
by drdavidge
Tue Oct 12, 2010 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Income jumped, overcontributed to my Roth IRA - what to do?
Replies: 9
Views: 2118

Are you already doing everything else you can to control AGI (like maxing out 401k, HSAs, etc)? Do my 401k contributions get deducted from my income for purposes of the MAGI calculation? How about pre-tax medical/dental/vision? Or how about pre-tax commuter costs that are automatically deducted for...
by drdavidge
Tue Oct 12, 2010 12:07 am
Forum: Investing - Help with Personal Investments
Topic: Income jumped, overcontributed to my Roth IRA - what to do?
Replies: 9
Views: 2118

Income jumped, overcontributed to my Roth IRA - what to do?

Hey guys, Single filer, my income unexpectedly jumped up this year to somewhere that may land in partial contributions or no contributions land for a Roth IRA. I've already contributed around $3750 to my Roth IRA this year and do not want to get hit with penalties. What should I do? Any important de...

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