Search found 91 matches

by pepperz
Sun Feb 26, 2017 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: "Tithing" money to your parents?
Replies: 10
Views: 719

Re: "Tithing" money to your parents?

Ignoring the implied tax fraud option, the best option is to just send them 500/month. That's it. It's not taxable income to them and it sure isn't deductible to you. There are literally no other choices. I was not implying tax fraud. I could easily come up with responsibilities for my mother to ta...
by pepperz
Sun Feb 26, 2017 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: "Tithing" money to your parents?
Replies: 10
Views: 719

"Tithing" money to your parents?

I'm planning to start gifting $500/month to my parents. Wondering the best way to do this from a tax perspective... Is it possible to somehow deduct this as a Contribution in my taxes? I run a business (LLC) and was thinking I could add my mother as a 1099 contractor but then she would have to pay t...
by pepperz
Sat Feb 18, 2017 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance policy on kids - prudent?
Replies: 35
Views: 1963

Re: Life insurance policy on kids - prudent?

with the insurance you would be basically taking a gamble on the long shot that they would die young, which is sort of morbid in my mind. Agreed but that's exactly what I'm thinking. I've added the following to my original post for clarification: UPDATE: Wanted to add... my motivation behind this i...
by pepperz
Sat Feb 18, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance policy on kids - prudent?
Replies: 35
Views: 1963

Re: Life insurance policy on kids - prudent?

Just to be a counter balance i have heard one reasonable argument. Loss of a child can be so emotionally destructive as to make continue work/employment difficult and loss is also often financially difficult because people spend a lot trying to either safe or honor their children. So a policy could...
by pepperz
Fri Feb 17, 2017 10:19 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance policy on kids - prudent?
Replies: 35
Views: 1963

Life insurance policy on kids - prudent?

Would Bogleheads philosophy say part of responsible planning is to take out life insurance policies for each of your children? A financial planner mentioned this to me in passing 10+ years ago and now that our first child is 3 months old I have been remembering that "advice" and haunted by...
by pepperz
Fri Feb 17, 2017 5:57 am
Forum: Investing - Help with Personal Investments
Topic: 529 Asset Allocation - is this valid thinking?
Replies: 54
Views: 2205

Re: 529 Asset Allocation - is this valid thinking?

We are actually more conservative on asset allocation for the 529s we have set up for our kids, because the time horizon is shorter so we don't believe we can take as much risk. That makes sense however in my situation (since we are not maxing out retirement yet) I feel we really won't be contribut...
by pepperz
Thu Feb 16, 2017 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: 529 Asset Allocation - is this valid thinking?
Replies: 54
Views: 2205

529 Asset Allocation - is this valid thinking?

I understand one should not prioritize funding a 529 account before first maxing out their retirement accounts. My wife and I are *not yet* maxing both our IRA's but relatives gifted us a total of $650 for our (currently) 3 month old baby's future over the holidays. Today I opened a 529 account and ...
by pepperz
Fri Jan 27, 2017 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Help, please, on new salary negotiations
Replies: 66
Views: 4627

Re: Help, please, on new salary negotiations

Lots of great advice.

My 2 cents: After your boss tells you what the best he can do, respond with: "that's not the number I had in mind, but..." ;)
by pepperz
Sun Jan 22, 2017 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off mortgage in 7 years using HELOC?
Replies: 19
Views: 2463

Pay off mortgage in 7 years using HELOC?

Hey Guys, I have a friend who was explaining the savings of this approach and wanted to run by you. He says it only works if you're not living paycheck to paycheck and have extra money at the end of each month. The idea is you use a HELOC to pay off your mortgage and then pay that down by putting al...
by pepperz
Fri Dec 30, 2016 12:09 pm
Forum: Investing - Theory, News & General
Topic: How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017
Replies: 42
Views: 5738

Re: How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017

So this is another new minted financial guru who claims to have saved enough to retire young but really transitioned to a career as a blogger. Color me skeptical of these folks. I hear you but at the same time what do we expect her to do... live out the rest of her days on cruises on a deck chair? ...
by pepperz
Fri Dec 30, 2016 6:30 am
Forum: Investing - Theory, News & General
Topic: How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017
Replies: 42
Views: 5738

Re: How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017

Anyone else suspect that this might just be fake news? The 28 year old states her mother retired out of college in the early 1950s- this would mean her mother was about 57-58 years old when she was born- I guess possible, but deem unlikely. Where are you and others who have commented seeing anythin...
by pepperz
Thu Dec 29, 2016 10:41 pm
Forum: Investing - Theory, News & General
Topic: How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017
Replies: 42
Views: 5738

Re: How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017

Me too. It jumped out at me immediately and I wondered whether if the person had been a man, the statement would have been "That boy advocates low cost index funds....." full disclosure - I entered adulthood when it was still legal when people slammed doors in my face due to my gender.......
by pepperz
Thu Dec 29, 2016 7:54 pm
Forum: Investing - Theory, News & General
Topic: How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017
Replies: 42
Views: 5738

Re: How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017

SueG5123 wrote:"The girl"??? She's 28 years old.


lol out of everything in my post that's what you picked out and commented on? :)

Forgive me if I've offended you. If it's any consolation I would have said "guy" if the person was a male.
by pepperz
Thu Dec 29, 2016 5:15 pm
Forum: Investing - Theory, News & General
Topic: business savings in personal account
Replies: 5
Views: 388

Re: business savings in personal account

What rates are you seeing on business accounts? Vanguard Prime Money market's SEC yield is 0.73% and you can open a business account there. That is great, DSI. Didn't even know that was an option. Just called Vanguard and got an application to open a Business account. Any reason I might *not* want ...
by pepperz
Thu Dec 29, 2016 4:19 pm
Forum: Investing - Theory, News & General
Topic: How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017
Replies: 42
Views: 5738

Re: How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017

[quote="live-soft]And furthermore "My husband still works …." My mom retired right out of college, too, back in the early 1950's. :)[/quote]

This cracked me up :). Thank you.
by pepperz
Thu Dec 29, 2016 3:43 pm
Forum: Investing - Theory, News & General
Topic: How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017
Replies: 42
Views: 5738

How A 28-Year-Old Who Retired With A $2 Million Net Worth Is Investing In 2017

The subject of this thread caught my attention on Facebook. I clicked thru expecting to read some backwards investment advice and was pleasantly surprised. http://www.forbes.com/sites/mayakachroolevine/2016/12/27/how-a-28-year-old-who-retired-with-a-2-million-net-worth-is-investing-in-2017 The young...
by pepperz
Thu Dec 29, 2016 2:01 pm
Forum: Investing - Theory, News & General
Topic: business savings in personal account
Replies: 5
Views: 388

business savings in personal account

Our business maintains an emergency fund that we deposit into. I have not been able to locate business savings accounts that offer even HALF the interest rate of some of the personal savings accounts. Any reason I shouldn't open an Allied Bank personal savings and just park the business cash there? ...
by pepperz
Thu Dec 29, 2016 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Monetary gifts made to our child - account type?
Replies: 4
Views: 303

Re: Monetary gifts made to our child - account type?

Did FIL expect you to save the money for the future or to spend it? He would be fine with whatever we want to do with it but my wife and I would like to save / invest for the future. State tax breaks may be important, so what states are involved? We live in Tennessee. 529 with your or FIL as owner....
by pepperz
Thu Dec 29, 2016 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Monetary gifts made to our child - account type?
Replies: 4
Views: 303

Monetary gifts made to our child - account type?

Our first baby is 1.5 months old. I looked into opening a 529 when our baby was born but decided against it because my wife and I are not maxing out our own retirement accounts yet. For Christmas last weekend, my father-in-law gave us a $250 check made our to our child's name. Now it seems like a 52...
by pepperz
Wed Dec 28, 2016 12:03 am
Forum: Investing - Theory, News & General
Topic: Business Online Savings Account?
Replies: 2
Views: 283

Business Online Savings Account?

Our business maintains a "Business Profit" account. It's currently a checking account with BOA (they gave us the account free.) Plan is for this account to serve as our "business emergency fund" as well as take distributions / make new biz moves as the account grows. I'm familiar...
by pepperz
Mon Dec 26, 2016 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: How do you plan for retirement?
Replies: 32
Views: 2959

How do you plan for retirement?

How do you know you're contributing "enough" to retirement? Do you have a "goal amount" that you're aiming for? i.e. "We need $3M in 30 years" And then work towards that number? Or do you just put a percentage of your take home into retirement hoping it will all work ou...
by pepperz
Fri Dec 16, 2016 6:43 pm
Forum: Investing - Help with Personal Investments
Topic: [Retirement] How to know if you're on track?
Replies: 11
Views: 1875

[Retirement] How to know if you're on track?

How do you guys know if your plan is on track with respect to your Retirement goals? e.g. If my goal is to have $3M in retirement 30 years from now... I can of course just contribute as much as possible each year "hoping I get there" and always feel like I'm behind. But surely there's a be...
by pepperz
Wed Dec 14, 2016 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: Manufacturing a 15% tax bracket
Replies: 18
Views: 1937

Re: Manufacturing a 15% tax bracket

Wow this clears up a lot guys... thank you. So I guess the question is, what's so important about achieving the 15% bracket? I suppose that's the new question I have! ... is there a benefit to doing this? I mean obviously if you can step yourself down to a lower tax bracket you get to sock away all ...
by pepperz
Wed Dec 14, 2016 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Income for mortgage and 401k contribution
Replies: 5
Views: 615

Re: Income for mortgage and 401k contribution

Hi, I'm a banker and do a lot of residential mortgages. Don't worry about your 401k contributions! Lenders look at gross income. That's one of the reasons we request your W2s and pay stubs, not just your tax returns. That's excellent news! As to why I was getting conflicting information on this... ...
by pepperz
Tue Dec 13, 2016 1:00 am
Forum: Investing - Help with Personal Investments
Topic: Manufacturing a 15% tax bracket
Replies: 18
Views: 1937

Re: Manufacturing a 15% tax bracket

It's not clear from your OP what is your goal in all this. Why do you want to get your taxable income down? 15% is a tax bracket that you are paying on that income regardless of the income above it. My goal I suppose is to keep our tax burden as low as possible while retaining as much of our income...
by pepperz
Tue Dec 13, 2016 12:19 am
Forum: Investing - Help with Personal Investments
Topic: Income for mortgage and 401k contribution
Replies: 5
Views: 615

Income for mortgage and 401k contribution

Can anyone tell me definitively whether a mortgage company considers any 401K contributions you may have made when evaluating your income? We're looking to mortgage a larger house in 2-3 years and I'd like to best prepare to get approved. I'm afraid we'd shoot ourselves in the foot by contributing t...
by pepperz
Tue Dec 13, 2016 12:14 am
Forum: Investing - Help with Personal Investments
Topic: Manufacturing a 15% tax bracket
Replies: 18
Views: 1937

Re: Manufacturing a 15% tax bracket

DSInvestor wrote:Remember that Taxable Income = AGI - deductions - exemptions.


Thank you for setting me straight, DSI. I'm going to revise my original post to use "AGI" instead of "Taxable Income".
by pepperz
Tue Dec 13, 2016 12:05 am
Forum: Investing - Help with Personal Investments
Topic: Manufacturing a 15% tax bracket
Replies: 18
Views: 1937

Re: Manufacturing a 15% tax bracket

I'm not following your numbers. If your MFJ were $120,000 and you both contributed $50K that would only leave $20K. At the bottom of your comment you talk about deferring $70,000. I meant $50K between the two of us. So that would be if each of us contributed $25K each. I believe the Solo 401k has a...
by pepperz
Mon Dec 12, 2016 11:33 pm
Forum: Investing - Help with Personal Investments
Topic: Manufacturing a 15% tax bracket
Replies: 18
Views: 1937

Manufacturing a 15% tax bracket

My wife and and are self employed (each with our own business) and have the ability to each open a Solo 401K. Being that our joint contribution limits would be $100K, is there any reason we wouldn't want to contribute as much as we can to drop us down to the 15% tax bracket? e.g. Let's hypotheticall...
by pepperz
Mon Dec 12, 2016 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Our first baby. Prioritizing investments - Home Downpayment, Retirement, 529?
Replies: 19
Views: 1119

Re: Our first baby. Prioritizing investments - Home Downpayment, Retirement, 529?

1) Put enough in deductible retirement accounts to get down to the 15% tax bracket. I feel stupid asking this but what is the taxable income amount that would put us in the 15% tax bracket? I suppose if we each have a Solo 401K we'd be able to put $40K each tax deferred which would bring our taxabl...
by pepperz
Mon Dec 12, 2016 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Our first baby. Prioritizing investments - Home Downpayment, Retirement, 529?
Replies: 19
Views: 1119

Re: Our first baby. Prioritizing investments - Home Downpayment, Retirement, 529?

travelnut11 wrote:Any mortgage I have ever applied for was interested in my gross income not my after tax income so I don't think you need to worry about that.


I wish that were the case however I just called a mortgage broker who confirmed they only look at your taxable income.
by pepperz
Mon Dec 12, 2016 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: Our first baby. Prioritizing investments - Home Downpayment, Retirement, 529?
Replies: 19
Views: 1119

Re: Our first baby. Prioritizing investments - Home Downpayment, Retirement, 529?

I'm also curious why you would max your account and not your wife's? I have a Solo 401K which allows for an $18K ROTH contribution. I see this as a benefit that's too good for us to pass up so we should max it out. My wife only has a SEP IRA so 100% of her contributions would be tax deductible whic...
by pepperz
Mon Dec 12, 2016 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Our first baby. Prioritizing investments - Home Downpayment, Retirement, 529?
Replies: 19
Views: 1119

Our first baby. Prioritizing investments - Home Downpayment, Retirement, 529?

Hey Guys, My wife and I just had our first baby one month ago and I'm evaluating how our investment priorities need to change. We are 36 and 34. Both self employed, two separate businesses, with no W2 employees. My confusion is coming from the fact that we'd like to purchase a new (larger) home over...
by pepperz
Tue Mar 29, 2016 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Problem with Target Date bonds/stocks - Market Timing?
Replies: 8
Views: 502

Problem with Target Date bonds/stocks - Market Timing?

I was speaking with a friend who is in the professional investing world and he brought up something Interesting. He agreed with the Bogle heads philosophy of holding stock and bond index funds however he vehemently disagreed with the TDF concept. AGG is the ticker for American bond index fund. and S...
by pepperz
Sat Feb 20, 2016 6:53 pm
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Fund vs. Manual
Replies: 11
Views: 1097

Re: Target Retirement Fund vs. Manual

livesoft wrote:I don't understand. You might as well pick one that has great TRFs for no commission. I don't understand what ETFs have to do with it.


Haha sorry my bad. I'm still learning here... I thought TRF's were traded as ETF's.
by pepperz
Sat Feb 20, 2016 6:32 pm
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Fund vs. Manual
Replies: 11
Views: 1097

Re: Target Retirement Fund vs. Manual

Lafder wrote:It really comes down to if you prefer to rebalance yourself, and what your employer offerings are.

lafder


I am Self Employed. Just have ROTH IRA right now but going to open a Solo 401K soon. Guess I would need to pick one that allows for ETF's if I'm going to be in a TRF?
by pepperz
Sat Feb 20, 2016 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Fund vs. Manual
Replies: 11
Views: 1097

Target Retirement Fund vs. Manual

I've recently decided on an 80 (stocks)/20 (bonds) asset allocation. I am 36 years old now and was planning to -1%/+1% each birthday until I reach 60/40 (in 21 years) and probably stay there or go 50/50. My Roth IRA currently is comprised of SPY for stocks and AGG for bonds. Just have those two fund...
by pepperz
Fri Feb 19, 2016 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K for self employed - (limitations worth it?)
Replies: 46
Views: 2788

Re: Solo 401K for self employed - (limitations worth it?)

I was going to reply that I can't imagine why any one would do a ROTH. Why pay high taxes now instead of low taxes when you retire?:) I guess that depends on when one plans to retire, right? For the near future taxes may not change significantly but if you're retiring 30+ years from now isn't it a ...
by pepperz
Thu Feb 18, 2016 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH in laymen's terms?
Replies: 22
Views: 1622

Re: Backdoor ROTH in laymen's terms?

Ah, that's the mega backdoor Roth you're talking about now. That requires a 401k that allows after-tax non-Roth contributions (iirc, up to $53k per year). It is also useful, but not necessary, if the 401k allows in-service withdrawals. Not meaning to open a whole new can of worms here... But you ar...
by pepperz
Thu Feb 18, 2016 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH in laymen's terms?
Replies: 22
Views: 1622

Re: Backdoor ROTH in laymen's terms?

Now you've got it! The "Backdoor" is simply a way for people who cannot directly contribute to a Roth (because their income exceeds the limit) get money into a Roth. Ha thank you everybody! Traveller - your concise one sentence here is more clear to me than all the articles I initially re...
by pepperz
Thu Feb 18, 2016 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH in laymen's terms?
Replies: 22
Views: 1622

Re: Backdoor ROTH in laymen's terms?

You have $5500 a year of new money that can go into all IRAs combined, $6500 if you're older... Ahhh okay think I finally understand.... so $5500 is the ROTH limit for each person whether you have a "regular" ROTH account or have to do a Backdoor because you make too much money. But eithe...
by pepperz
Thu Feb 18, 2016 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K for self employed - (limitations worth it?)
Replies: 46
Views: 2788

Re: Solo 401K for self employed - (limitations worth it?)

If the Roth option is important to you, Vanguard is also an option although you'll pay a tiny bit more in fees than fidelity (not a huge amount tho, so I would recommend Vanguard OR Fidelity over pretty much anyone else). Thanks. Only other downside to Vanguard as I see it is limited funds you can ...
by pepperz
Thu Feb 18, 2016 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401K for self employed - (limitations worth it?)
Replies: 46
Views: 2788

Re: Solo 401K for self employed - (limitations worth it?)

Not sure how a SEP-IRA could be cheaper than "free". You're right, I missed the part in the thread about Fidelity offering Solo 401K plans for free. What a deal, that definitely wasn't an option when I had one years ago. Seems there's no reason not go that route unless you expect to hire ...
by pepperz
Thu Feb 18, 2016 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH in laymen's terms?
Replies: 22
Views: 1622

Re: Backdoor ROTH in laymen's terms?

Are you eligible for a "regular" Roth? If yes, forget about backdoor. So this works for people whose income makes them ineligible for a "regular" Roth. But what about the person who makes less and maxes out their Roth for the year first? Do you then move onto the Backdoor strate...
by pepperz
Wed Feb 17, 2016 10:32 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH in laymen's terms?
Replies: 22
Views: 1622

Re: Backdoor ROTH in laymen's terms?

Thank you Taylor. Think I'm a bit dense because I'm still getting lost even while reading that Wiki. Going to try and express my confusion here... So the idea is that you contribute to any normal (Non-ROTH) IRA. And then you can somehow take that contribution you *just made* (seems like there is urg...
by pepperz
Wed Feb 17, 2016 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH in laymen's terms?
Replies: 22
Views: 1622

Backdoor ROTH in laymen's terms?

I've seen lots of excitement in various threads about the idea of a "Backdoor ROTH".

I'm ashamed to say the articles I've tried to study leave me clueless as to what it actually is.

Can you guys help me understand what it is and who it is beneficial for?
by pepperz
Tue Feb 16, 2016 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K for self employed - (limitations worth it?)
Replies: 46
Views: 2788

Re: Solo 401K for self employed - (limitations worth it?)

I have TD ameritrade. Can invest in vanguard ETFs (same ER as Admiral funds), no other fees, Roth, accepts incoming rollovers. Search for the several threads on Bogleheads about pros and cons of different brokers for solo 401k. The Roth option is really exciting to me. Can't imagine why someone wou...
by pepperz
Tue Feb 16, 2016 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K for self employed - (limitations worth it?)
Replies: 46
Views: 2788

Re: Solo 401K for self employed - (limitations worth it?)

CFM300 wrote:Does Fidelity allow ROTH solo 401(k)s?


As I understand it all Solo 401K's allow for ROTH contributions.

Update: I stand corrected. Just found out that is not necessarily the case. Not sure about Fidelity now.
by pepperz
Tue Feb 16, 2016 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Self Employed - when to make contributions?
Replies: 6
Views: 533

Self Employed - when to make contributions?

Do most of you entrepreneurs make your contributions for the previous year when you're filing your taxes? Example: Are you funding your 2015 IRA's in February/March of 2016? All the IRA's for Self Employed have contribution requirements that correspond to your taxable profit. If you're like me you w...
by pepperz
Tue Feb 16, 2016 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Solo 401K for self employed - (limitations worth it?)
Replies: 46
Views: 2788

Re: Solo 401K for self employed - (limitations worth it?)

Good to know guys, thank you. I'm really not familiar with other providers so Etrade was interesting.

I just balked at Merril Edge's crazy fees and lumped those in with Vanguard.

Go to advanced search