Search found 198 matches

by pepperz
Sun Feb 18, 2018 9:12 am
Forum: Investing - Help with Personal Investments
Topic: Feedback on Guideline 401k
Replies: 11
Views: 931

Re: Feedback on Guideline 401k

We are about to pull the trigger with Guideline for our employees. We have 6 employees so looking at $48/month to offer this account.

Guideline integrates seamlessly with our payroll provider so convenience is the primary factor.
by pepperz
Sat Feb 17, 2018 11:36 pm
Forum: Investing - Theory, News & General
Topic: How to invest tax refund?
Replies: 4
Views: 454

Re: How to invest tax refund?

I guess that is the problem. I’m not sure if I “need” it or not. I mean, we do have savings goals for next house / cars / vacations... but those are more “wants” than straight up needs so I’m not sure how strict to be with this. Also not sure whether the $11K we have allocated for ROTH would be bett...
by pepperz
Sat Feb 17, 2018 11:26 pm
Forum: Investing - Theory, News & General
Topic: How to invest tax refund?
Replies: 4
Views: 454

Re: How to invest tax refund?

We both have businesses and purposely over estimate our estimated tax payments. I’ve been on the other end too many times and would rather this way :) If you're getting back a $8,000 or $10,000 tax return back that is to much money. You should talk to your tax professional and adjust your claiming s...
by pepperz
Sat Feb 17, 2018 9:58 am
Forum: Investing - Help with Personal Investments
Topic: When do IRA's stop making sense?
Replies: 37
Views: 2547

Re: When do IRA's stop making sense?

I think contributing to two ROTH’s makes sense. One for you and one for your wife. Note: “Backdoor” does not apply to you here. You don’t need it. It’s only needed for those who make too much money to contribute directly to a ROTH. I can still contribute to an IRA, but, it's not tax deductible. Whic...
by pepperz
Sat Feb 17, 2018 9:45 am
Forum: Investing - Theory, News & General
Topic: How to invest tax refund?
Replies: 4
Views: 454

How to invest tax refund?

It looks like we are looking at an $8K refund for 2017. Main question: Is it wise to max out all available retirement space first, before funding your non-essential taxable savings goals? I’m just wondering whether it makes more sense to keep the refund and put it towards our “non essential” savings...
by pepperz
Sat Feb 17, 2018 9:07 am
Forum: Investing - Help with Personal Investments
Topic: When do IRA's stop making sense?
Replies: 37
Views: 2547

Re: When do IRA's stop making sense?

OP, Do you make too much money to contribute to an IRA altogether? Or too much money for your contribution to be tax deductible? If it’s the former, that’s the only time you’d need to consider a Backdoor Roth. Remember a Roth is still advantageous because the *earnings* grow tax free. You should max...
by pepperz
Wed Feb 14, 2018 9:48 pm
Forum: Personal Consumer Issues
Topic: Used car - warranty or no?
Replies: 24
Views: 824

Used car - warranty or no?

A friend told me this smart approach to buying a new car and avoiding the depreciation hit. 1 - Find the two to three year old version of the car you want. 2 - Get it checked by a good mechanic. 3 - Buy a warranty on the car so you’re covered for at least five years. Steps one and two I’ve heard bef...
by pepperz
Sun Feb 11, 2018 7:49 pm
Forum: Investing - Theory, News & General
Topic: Borrow vs Pay Cash
Replies: 24
Views: 1839

Re: Borrow vs Pay Cash

I pay cash for everything because it is the strongest bargaining position. And the simplest purchase. j :D Does cash get you better deals on new cars at the dealer these days? Our last new car we purchased actually gave us a better deal by taking out a loan. We kept the loan for two months and paid...
by pepperz
Sun Feb 11, 2018 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Seeking career advice - Software Engineer
Replies: 34
Views: 2681

Re: Seeking career advice - Software Engineer

If you’re unhappy and the place is toxic, I’d make plans on leaving.

May as well get a paycheck from a place you feel appreciated and let your current work hire someone else who actually wants to be there.
by pepperz
Sat Feb 10, 2018 6:52 pm
Forum: Investing - Theory, News & General
Topic: Borrow vs Pay Cash
Replies: 24
Views: 1839

Borrow vs Pay Cash

Let’s say you decide to buy a new car and have the ability to pay cash. The dealership offers you a loan for 1.5%. The popular opinion here seems to be: take the loan if you have a reasonable chance of getting better return investing the cash. I get it. Make 3.5% or more investing your cash (assumin...
by pepperz
Sat Feb 03, 2018 10:20 pm
Forum: Investing - Theory, News & General
Topic: Request perspective on career, life, and finance
Replies: 16
Views: 3379

Re: Request perspective on career, life, and finance

4. In the long run, my goal is to apply advanced technologies like the ones I am learning here in the field of global health. Does it not make sense to develop serious technical chops over the next 3-4 years and then dive into the business side of things? If your goal is success on the ‘business si...
by pepperz
Sat Feb 03, 2018 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: [Flawed?] Paying off mortgage in 5 years
Replies: 17
Views: 2121

[Flawed?] Paying off mortgage in 5 years

A friend referred me to this article. He himself is executing this strategy and swears by it. http://www.claytonmorris.com/blog/2015/7/20/how-to-pay-off-your-house-within-5-years-using-these-awesome-ninja-tricks Curious on the Boglehead POV about this strategy for someone who wants to make paying of...
by pepperz
Tue Jan 30, 2018 8:52 am
Forum: Personal Consumer Issues
Topic: Is this new car the smarter option?
Replies: 24
Views: 1631

Is this new car the smarter option?

My friend purchased a Toyota Yaris *new* in 2008 for $12K and still drives it. 10 years and still going. When it needs to be replaced, he will do the same thing... the Yaris base model now costs $16K but Hundai has a $12K base model he would go for. If your goal with driving is primarily to have a r...
by pepperz
Thu Jan 18, 2018 9:34 am
Forum: Investing - Theory, News & General
Topic: $399 - New Course - Fire your Financial Advisor - By WhiteCoat Investor - Anyone?
Replies: 121
Views: 7556

Re: $399 - New Course - Fire your Financial Advisor - By WhiteCoat Investor - Anyone?

I am not a doctor but I appreciate WCI's content / teaching so much that I purchased his book from Amazon. One time I paid $50 for a single file PDF "e-book" that teaches you how to transform your body. (Increase muscle, decrease fat.) A lifetime friend of mine was so impressed by my results and (al...
by pepperz
Thu Jan 18, 2018 7:43 am
Forum: Personal Finance (Not Investing)
Topic: To the doctors on the forum
Replies: 88
Views: 5297

Re: To the doctors on the forum

I had an MRI a few months ago and asked this question as I was checking out: Me: “By the way, I’m just curious— how much does this cost?” Lady: “About $8,000.” Me: “What?! $8,000 for The 10 mins I spent in there?” Lady: “Well it doesn’t mean the insurance company is going to pay that much...” Me: “H...
by pepperz
Sat Dec 30, 2017 9:42 am
Forum: Personal Finance (Not Investing)
Topic: How to determine ‘reasonable compensation’
Replies: 9
Views: 1005

Re: How to determine ‘reasonable compensation’

I did come across this service “RCreports.com” in my research... anyone use them?
by pepperz
Sat Dec 30, 2017 9:24 am
Forum: Personal Finance (Not Investing)
Topic: How to determine ‘reasonable compensation’
Replies: 9
Views: 1005

Re: How to determine ‘reasonable compensation’

I am sure net profit and how much you take in distributions plays a part, right?

ie - a plumber nets $400K and pays himself a salary of $75K vs a plumber netting $90K and paying himself $75K?
by pepperz
Sat Dec 30, 2017 12:19 am
Forum: Personal Finance (Not Investing)
Topic: How to determine ‘reasonable compensation’
Replies: 9
Views: 1005

How to determine ‘reasonable compensation’

We are switching to S-Corp starting Jan 1 2018. My biz partner and I will be W2 employees and have to specify our base salary. I’ve talked with two CPA’s and cannot get a straight answer. Surely there must be a way to calculate ‘reasonable compensation’ based on relevant factors of your industry / p...
by pepperz
Fri Dec 29, 2017 5:03 pm
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 7825

Re: Paying off mortgage before investing at all?

Klang- if I'm hearing you right then one should really max tax deferred, then Roth, then invest / pay off mortgage with what is left? This also begs a question for me— Let’s say one is at 25% marginal tax bracket and invests $10K into tax deferred 401K.... can that investment be considered to delive...
by pepperz
Fri Dec 29, 2017 3:05 pm
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 7825

Re: Paying off mortgage before investing at all?

Dottie: just making sure I’m reading your suggestion right... you’re saying to contribute 15% of your net (as a baseline) to retirement and then whatever is in excess to paying off your mortgage? Having cash for a house is phenomenal. I will tell you that you can do very well by paying extra on mort...
by pepperz
Fri Dec 29, 2017 2:58 pm
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 7825

Re: Paying off mortgage before investing at all?

This also begs a question for me— Let’s say one is at 25% marginal tax bracket and invests $10K into tax deferred 401K.... can that investment be considered to deliver an immediate return of 25% right away? Since that investment technically gives you an “extra” $2.5K that same year, could you not pa...
by pepperz
Fri Dec 29, 2017 2:54 pm
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 7825

Re: Paying off mortgage before investing at all?

That is certainly a valid point. But couldn’t you justify that once mortgage is paid off, you could focus all that now available cash flow into retirement? I suppose length of time plays a big factor in that... ie if you can pay off mortgage in 3-4 years losing those potential returns may be easier ...
by pepperz
Fri Dec 29, 2017 2:02 pm
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 7825

Paying off mortgage before investing at all?

Can someone make a valid argument for focusing all efforts on paying off all forms of debt FIRST (including a mortgage) before investing in any other way? (This means putting off retirement investing until mortgage is paid...) Cool story: I have a friend who was way over invested in real estate duri...
by pepperz
Fri Dec 29, 2017 1:54 pm
Forum: Investing - Theory, News & General
Topic: Which is most like S&P 500?
Replies: 14
Views: 1366

Re: Which is most like S&P 500?

Done and done! Thank you for the insight
livesoft wrote:
Fri Dec 29, 2017 10:47 am
OK, then Package #1 is simple enough for you. I suggest you use it.
by pepperz
Fri Dec 29, 2017 10:40 am
Forum: Investing - Theory, News & General
Topic: Which is most like S&P 500?
Replies: 14
Views: 1366

Re: Which is most like S&P 500?

Haha good point. The phrase literally obviously means much more than what I think... my knowledge of this stuff is overly simple and I don’t want to complicate details. S&P is just “good enough for me” I want this account to be "100% Stocks"... in my mind this literally means an index that tracks th...
by pepperz
Fri Dec 29, 2017 10:37 am
Forum: Investing - Theory, News & General
Topic: Which is most like S&P 500?
Replies: 14
Views: 1366

Re: Which is most like S&P 500?

Of course I could be wrong! Lots of US companies in the S&P have global presences anyways so the indirect international exposure within the S&P is good enough for me. Thanks so much to all who have replied. Very much appreciated. The packages are mutually exclusive so you cannot mix them. I'm going ...
by pepperz
Thu Dec 28, 2017 12:37 pm
Forum: Investing - Theory, News & General
Topic: Which is most like S&P 500?
Replies: 14
Views: 1366

Re: Which is most like S&P 500?

Thanks so much to all who have replied. Very much appreciated. The packages are mutually exclusive so you cannot mix them. I'm going to just choose package #1 even though it has International. It's not *that* big a deal but I believe a 100% US based index will out-perform international for the most ...
by pepperz
Thu Dec 28, 2017 11:42 am
Forum: Investing - Theory, News & General
Topic: Which is most like S&P 500?
Replies: 14
Views: 1366

Which is most like S&P 500?

I've opened a 529 plan for our child via New York's 529 plan. (Our state doesn't offer any tax credits and NY had the cheapest fees.) I want this account to be "100% Stocks"... in my mind this literally means an index that tracks the S&P 500. The account offers 6 different Vanguard investment plans ...
by pepperz
Sat Dec 23, 2017 10:53 pm
Forum: Investing - Theory, News & General
Topic: Balancing Short & Long term goals?
Replies: 5
Views: 483

Re: Balancing Short & Long term goals?

Appreciate the perspective, Lou. There can only be one priority at a time.

Makes sense I haven’t fully made the decision to accept one over the other... otherwise this wouldn’t be an issue. Will think about it more. Thanks.
by pepperz
Sat Dec 23, 2017 9:31 pm
Forum: Investing - Theory, News & General
Topic: Balancing Short & Long term goals?
Replies: 5
Views: 483

Balancing Short & Long term goals?

This is for all you “all or nothing” type folks... If I am convinced something is a best practice, I will do whatever needs to be done at whatever expense to my time or energy. ie- lifting weights is best for my health (even though I despise it) I will wake up at 4:30am if it’s the only way I can fi...
by pepperz
Fri Dec 22, 2017 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: S-CORP: How do taxes work?
Replies: 33
Views: 2382

Re: S-CORP: How do taxes work?

Thank you to everyone who helped me get to the bottom of this!

FYI if my followup question on 401K interests you please feel free to participate in this thread I just started.
by pepperz
Fri Dec 22, 2017 7:50 pm
Forum: Investing - Theory, News & General
Topic: 401K - best for biz w/ employees?
Replies: 3
Views: 493

401K - best for biz w/ employees?

We have W2 employees so unfortunately biz partner and I cannot go Solo 401K. What’s the next best thing we should look at? I’m thinking 401K that allows after tax contributions and yearly IRA conversions. Is that the “next best thing” (to a solo 401k) that a biz owner with employees should consider?...
by pepperz
Fri Dec 22, 2017 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: S-CORP: How do taxes work?
Replies: 33
Views: 2382

Re: S-CORP: How do taxes work?

I wish we could use Solo 401K but we do have other W2 employees besides just us. Hoping we can find a plan that allows after tax contributions and yearly conversions. But that’s for another thread. :) If you plan on using Solo 401k for your S-Corp, please be aware that the solo 401k for the S-Corp m...
by pepperz
Fri Dec 22, 2017 10:56 am
Forum: Personal Finance (Not Investing)
Topic: S-CORP: How do taxes work?
Replies: 33
Views: 2382

Re: S-CORP: How do taxes work?

Thank you! As owners of the business why would we ever want to “bonus” ourselves through payroll when it’s cheaper to take distributions? I take it “bonus” is for non-owner employees and “distributions” are for owners. That's right, you would use the bonus feature through payroll if you wanted to gi...
by pepperz
Fri Dec 22, 2017 8:56 am
Forum: Personal Finance (Not Investing)
Topic: S-CORP: How do taxes work?
Replies: 33
Views: 2382

Re: S-CORP: How do taxes work?

Interesting! So technically I do NOT need to go through our payroll system in order to bonus anything above our salary? That’s how we did it with LLC (just transfer bonus amounts straight from biz to personal bank accounts). Our payroll system has a function for “bonus” and it automatically takes ta...
by pepperz
Thu Dec 21, 2017 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: S-CORP: How do taxes work?
Replies: 33
Views: 2382

Re: S-CORP: How do taxes work?

Thanks everyone! So here’s my understanding: - tax liability for business profit passes through to the owners... Example: if business makes $100K profit and there are two 50% shareholders, each owner is responsible for $50K on their personal tax return... even if they leave this $100K in the busines...
by pepperz
Thu Dec 21, 2017 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: S-CORP: How do taxes work?
Replies: 33
Views: 2382

S-CORP: How do taxes work?

My company recently switched to S-Corp (from LLC)... my partner and I became W2 employees of this new entity. Our compensation now gets taxes automatically taken out via payroll, which is convenient... but my question is: What happens to business profits that we don’t take? S-Corp tax liability pass...
by pepperz
Tue Dec 19, 2017 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: 401K allowing after-tax contributions?
Replies: 0
Views: 176

401K allowing after-tax contributions?

My business is considering providing 401K’s to our employees... I’ll be looking at “safe harbor” plans for sure but how do I go about looking for the type of plan we can max out after the $18K deduction? Any reason why I shouldn’t specifically look for the kind of 401K where we can all contribute af...
by pepperz
Sun Dec 17, 2017 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4420

Re: Taxable vs. Tax Deferred - not much difference?

Great idea. I have edited my first post with it. :)
CenTexan wrote:
Sat Dec 16, 2017 5:06 pm
Thanks for the summary, pepperz. Wish all the posts here would have one (ideally at the top of the chain!) :happy
by pepperz
Sun Dec 17, 2017 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4420

Re: Taxable vs. Tax Deferred - not much difference?

No, my friend is not a salesman. :) Just two life-long friends sharing their take. My friend is cynical about the financial industry and that 'regular people' are not who it's designed to primarily benefit... he just did the arithmetic after our conversation and exclaimed the difference in savings i...
by pepperz
Sun Dec 17, 2017 11:32 am
Forum: Investing - Theory, News & General
Topic: IRA for SAHM whose husband exceeds income limits?
Replies: 6
Views: 840

Re: IRA for SAHM whose husband exceeds income limits?

Thank you! What’s the best way to. Ecome “familiar with the paperwork”?
retiredjg wrote:
Sat Dec 16, 2017 9:21 am
It should not be attempted by anyone who has not already figured out the paperwork (Form 8606). Do not depend on a tax preparer to help - they frequently are unfamiliar.
by pepperz
Sat Dec 16, 2017 6:07 am
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4420

Re: Taxable vs. Tax Deferred - not much difference?

Thanks for all the thoughtful comments here. Sounds like the consensus is tax-deferred when you take the following into consideration: - investing $18K into tax-deferred effectively gives you a return (of whatever your tax margin is) RIGHT AWAY... which allows that additional amount you would have o...
by pepperz
Sat Dec 16, 2017 5:32 am
Forum: Investing - Theory, News & General
Topic: IRA for SAHM whose husband exceeds income limits?
Replies: 6
Views: 840

Re: IRA for SAHM whose husband exceeds income limits?

Husband does have a 401K from work that’s fully funded. Would Backdoor ROTH still work?

Would that technically be a “Back Door SPOUSAL ROTH IRA”?
bta15 wrote:
Fri Dec 15, 2017 9:37 pm
Back Door Roth IRA is your best bet.

Depends if you have any other pretax ira holdings though.
by pepperz
Fri Dec 15, 2017 9:17 pm
Forum: Investing - Theory, News & General
Topic: IRA for SAHM whose husband exceeds income limits?
Replies: 6
Views: 840

IRA for SAHM whose husband exceeds income limits?

What tax-advantaged retirement account options does a stay at home mom whose husband makes over $200K/year have? Husband is an attorney and they max the husband’s 401K. Is there a spousal IRA option for the Mom? Any way she could have a ROTH or benefits of one? If not can she open a non-Roth tax-def...
by pepperz
Wed Dec 13, 2017 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4420

Re: Taxable vs. Tax Deferred - not much difference?

That calculator doesn't take into account re-invested dividends or the annual dividend tax drag on the taxable account. Both would affect the output. I didn't know that, John. Might you be able to point me to a more accurate calculator for this exercise? I've tried all sorts of googling and am just...
by pepperz
Wed Dec 13, 2017 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4420

Re: Taxable vs. Tax Deferred - not much difference?

You should know that you could withdraw from your tax-deferred accounts before retirement age without paying penalty. If you know this, then, all his arguments are basically pointless. KlangFool Can you please enlighten me here? How can you withdraw from tax-deferred accounts before retirement with...
by pepperz
Wed Dec 13, 2017 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4420

Re: Taxable vs. Tax Deferred - not much difference?

Also, a big part of this is if your employer has a match. It's almost impossible to argue against investing enough to get the match in such a plan, unless you don't like free money. As a last point, if you have a workplace 401k, its hard to beat how easy it is to invest. Set your contribution rate ...
by pepperz
Wed Dec 13, 2017 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4420

Re: Taxable vs. Tax Deferred - not much difference?

I edited my original post to include a scenario I calculated and what the result would be. Curious to what others think after seeing those numbers as well. I certainly don't believe everything my friends tell me. And I don't believe everything bogleheads tell me. How about you? Did you do the math c...
by pepperz
Wed Dec 13, 2017 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4420

Re: Taxable vs. Tax Deferred - not much difference?

I ran the following hypothetical scenario using this calculator . Current investment balance: 0 Annual Contributions: $18,000 Number of Years to invest: 30 After 30 years this scenario yielded: Taxable account: $1,423,047 Tax-deferred (adjusted for taxes): $1,664,323 The difference appears to be exa...
by pepperz
Wed Dec 13, 2017 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable vs. Tax Deferred - not much difference?
Replies: 56
Views: 4420

Taxable vs. Tax Deferred - not much difference?

I've always considered it 'best practice' to max out your tax-deferred accounts before taxable. Exactly how much better is it though? A friend recently made a case for not investing in tax deferred retirement accounts at all... His point was that the benefit of tax-deferred accounts is not significa...