Search found 35 matches

by shanghaista
Sun May 14, 2017 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to pay off student loans
Replies: 26
Views: 3349

Re: Trying to pay off student loans

Hi there, My girlfriend has about $25,000 in student loan debt, administered by Navient. They are in the form of two different loans of similar amounts, and she is on a payment plan to pay them off over 30 years, making monthly $314 payments. She wants to pay them off faster than that, and has buil...
by shanghaista
Tue Apr 18, 2017 11:23 pm
Forum: Personal Consumer Issues
Topic: Tips on Uber
Replies: 77
Views: 7253

Re: Tips on Uber

You want the ultimate tip regarding Uber?

Uninstall.
by shanghaista
Sun Apr 16, 2017 11:15 am
Forum: Investing - Theory, News & General
Topic: value of stock options
Replies: 30
Views: 2445

Re: value of stock options

https://www.mystockoptions.com/black-scholes.cfm

You should be able to find the market price of the options rather easily from any brokerage or financial site (yahoo/Google Finance).

If not, there are some calculators that should quickly do the Black-Scholes formula for you.
by shanghaista
Sun Apr 16, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: New car...finance or not?
Replies: 17
Views: 1773

Re: New car...finance or not?

Congrats on being able to consider withdrawing $22k "barely making a dent" in your nest egg! 1) Definitely don't take money out of your Roth, If anything, you can invest Roth monies into "conservative" 3-4% yields and realize the full difference versus TIRA in which you have tax....
by shanghaista
Tue Apr 11, 2017 9:04 pm
Forum: Investing - Help with Personal Investments
Topic: Distribution Plan for Inherited IRA
Replies: 6
Views: 501

Re: Distribution Plan for Inherited IRA

I understand that the downside is not having the funds in the inherited IRA continue to grow tax-deferred, but from what I've read it seems that the tax-deferred advantages will be offset by higher tax-rates on the larger distributions in the future due to our higher expected incomes. Are there any...
by shanghaista
Tue Apr 11, 2017 9:02 pm
Forum: Investing - Help with Personal Investments
Topic: Distribution Plan for Inherited IRA
Replies: 6
Views: 501

Re: Distribution Plan for Inherited IRA

I understand that the downside is not having the funds in the inherited IRA continue to grow tax-deferred, but from what I've read it seems that the tax-deferred advantages will be offset by higher tax-rates on the larger distributions in the future due to our higher expected incomes. Are there any...
by shanghaista
Sun Apr 02, 2017 7:25 pm
Forum: Personal Consumer Issues
Topic: What use are Chase UR Points (to me)
Replies: 21
Views: 2293

Re: What use are Chase UR Points (to me)

Are there any other options, given that our occasional travel is by family car and budget hotels, so we are absolutely not people for whom CSP/R makes sense long term, and it would be ridiculous for us to transfer points to "travel partners" (airlines/hotel chains). Do I understand the op...
by shanghaista
Tue Mar 28, 2017 8:27 pm
Forum: Investing - Help with Personal Investments
Topic: Roll over 401k to new employer or existing Vanguard Roth IRA
Replies: 13
Views: 1172

Re: Roll over 401k to new employer or existing Vanguard Roth IRA

Roll it over to a TIRA, that way you can be flexible in conversions to Roth IRA. You don't have to do all $5,000 at once, you can do $1k, $3k, $1k to fill various tax buckets as necessary. Merrill Lynch is telling me to roll over before May or it will cut a check so it feels as though time is of th...
by shanghaista
Mon Mar 27, 2017 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: Roll over 401k to new employer or existing Vanguard Roth IRA
Replies: 13
Views: 1172

Re: Roll over 401k to new employer or existing Vanguard Roth IRA

Roll it over to a TIRA, that way you can be flexible in conversions to Roth IRA.

You don't have to do all $5,000 at once, you can do $1k, $3k, $1k to fill various tax buckets as necessary.
by shanghaista
Sun Mar 26, 2017 9:18 pm
Forum: Personal Consumer Issues
Topic: Gift Card Security
Replies: 6
Views: 624

Re: Gift Card Security

The physical risk is the most obvious to me. My GF and I buy gift cards at BJs for precisely this reason; spend $40 for $50 for an Uno's or Boston Market gift card. And with DiscoverIt/Chase Freedom 5% calendar rotations for warehouse stores, it's effectively $38 for $50 worth of retailer currency (...
by shanghaista
Fri Mar 24, 2017 7:55 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover Hypothetical
Replies: 7
Views: 548

Re: Rollover Hypothetical

As duckie stated, rollovers are counted as ordinary income and therefore will behave the same as if you earned it through a paycheck. No, Duckie stated that conversions are taxed as ordinary income. Conversions and rollovers are not the same thing. Correct, my apologies. Mixed up my terms. Conversi...
by shanghaista
Fri Mar 24, 2017 6:41 am
Forum: Investing - Help with Personal Investments
Topic: Investment advice please
Replies: 7
Views: 629

Re: Investment advice please

From there you can do pure-dividend stocks/"safe" dividend stocks. Could you give me some examples of such stocks? Usually a lot of mature companies that are cash cows. Not a lot of growth comparatively, but consistent dividends. These are companies that pay out an overwhelming amount of ...
by shanghaista
Thu Mar 23, 2017 11:23 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover Hypothetical
Replies: 7
Views: 548

Re: Rollover Hypothetical

As duckie stated, rollovers are counted as ordinary income and therefore will behave the same as if you earned it through a paycheck. No, Duckie stated that conversions are taxed as ordinary income. Conversions and rollovers are not the same thing. Correct, my apologies. Mixed up my terms. Conversi...
by shanghaista
Thu Mar 23, 2017 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: Investment advice please
Replies: 7
Views: 629

Re: Investment advice please

1 auto loan - is it .9% financing? Because if it's not, you're paying more for your auto loan than you're saving in the 1% savings. You may want to consider paying that off as there's no tax advantage to paying interest on it (unlike the mortgage). The safest thing you can do is the 1% savings accou...
by shanghaista
Thu Mar 23, 2017 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: 29, new investors, help with long term plan
Replies: 14
Views: 1552

Re: 29, new investors, help with long term plan

I had asked about this earlier in the thread but no one really commented on whether it was a good idea. I like the flexibility that the IRA offers in that I am free to use a variety of low cost funds, but at the same time it will cause issues down the road if I am wanting to do a backdoor Roth. Is ...
by shanghaista
Thu Mar 23, 2017 10:47 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover Hypothetical
Replies: 7
Views: 548

Re: Rollover Hypothetical

For example, let's assume I'm 67, I've just retired, and have a traditional IRA I'd like to rollover to a Roth simply to avoid RMDs one day. Let's also assume I can live a year without taking much or any income because I have lots of cash already in the bank. So, I low ball my income and as a resul...
by shanghaista
Thu Mar 23, 2017 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: Double Check my Buckets!
Replies: 10
Views: 1130

Re: Double Check my Buckets!

I guess they way I stated pension $ is confusing so to restate clearly the total pension for both of us is his 60k + hers 40k for a total of 100k So although it is still a good pension I think there is a chance of us staying close to 15% Yes, I assumed the $100k was for the both of you combined. Yo...
by shanghaista
Thu Mar 23, 2017 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: Double Check my Buckets!
Replies: 10
Views: 1130

Re: Double Check my Buckets!

Both myself and my wife will be receiving NYS pension at around 100k total NYS tax free. First off, impressive pension plan! Secondly, this also means your income will not drop off in retirement (tax-bracket wise). I stand corrected - as lazylarry comments, you probably won't sniff 15%. So Roth IRA...
by shanghaista
Thu Mar 23, 2017 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: Help with my father's windfall
Replies: 25
Views: 2993

Re: Help with my father's windfall

Sorry for your loss. As many have suggested, perhaps the best is to put the money on hold; the best idea I heard was splitting the money into multiple banks/credit union CDs. 1) Definitely pay off Credit Card and home equity loans. These are typically higher interest and have no tax-benefits. 2) Stu...
by shanghaista
Thu Mar 23, 2017 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: Double Check my Buckets!
Replies: 10
Views: 1130

Re: Double Check my Buckets!

Just trying to flesh out your thoughts a bit (you're not "missing anything" but you could deepen the analysis). Are either of you in line to get a pension? If so, is it possible you'll be in the same tax bracket in retirement that you're in now? Would it make sense to contribute: 1) Enoug...
by shanghaista
Thu Mar 23, 2017 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: Maxing tax-advantaged accounts -- am I getting this right?
Replies: 19
Views: 1631

Re: Maxing tax-advantaged accounts -- am I getting this right?

SS and Medicare get taken out as the very first step, before ANY deductions or contributions. Doesn't matter if you do 401k, IRA, HSA, or other benefits. Medicare tax applies to [Gross minus (medical stuff e.g. medical/dental insurance HSA/FSA etc)] SS tax applies to [Gross minus (some stuff that d...
by shanghaista
Thu Mar 23, 2017 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Roth v. Traditional allocation
Replies: 19
Views: 1595

Re: Roth v. Traditional allocation

Would you split it between the accounts to minimize volatility or put it all in traditional to Maximze equity exposure in the Roth? I assume neither will have as much an impact as ditching the 1% fee Merrill is charging. Over the long run? Sure equities will likely outperform so it may be better se...
by shanghaista
Thu Mar 23, 2017 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion question
Replies: 7
Views: 523

Re: Roth Conversion question

If you have room to convert to Roth in the 15% bucket, DO IT ASAP. Most obvious factor is obviously comparing your current tax rate vs. your future tax rate (15% is hard to beat, even if you don't believe tax rates will eventually go up). However, on top of RMDs for IRAs, don't forget that Social Se...
by shanghaista
Thu Mar 23, 2017 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Maxing tax-advantaged accounts -- am I getting this right?
Replies: 19
Views: 1631

Re: Maxing tax-advantaged accounts -- am I getting this right?

@everyone else - So even if the HSA contribution helps out here, I'm still looking at a couple thousand toward medicare and SS and there's really nothing I can do about it right? Thanks! SS and Medicare get taken out as the very first step, before ANY deductions or contributions. Doesn't matter if ...
by shanghaista
Thu Mar 23, 2017 6:23 am
Forum: Investing - Help with Personal Investments
Topic: Maxing tax-advantaged accounts -- am I getting this right?
Replies: 19
Views: 1631

Re: Maxing tax-advantaged accounts -- am I getting this right?

Don't forget you also get 7.65% deducted for FICA (Social Security and Medicare).

SO .0765 * $60,000 = $4,590 that's just taken out from paycheck, not deductible towards your taxes.
by shanghaista
Wed Mar 22, 2017 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Another student loans question
Replies: 13
Views: 1123

Re: Another student loans question

Even though you may get a lower interest rate with 15-year, it's a hard 15-years that you'll be required to make higher monthly payments on. If you're accounting for the raise when you reach attending, you can use the inflow to accelerate and pay down your mortgage; you shouldn't have to be stuck wi...
by shanghaista
Wed Mar 22, 2017 6:08 am
Forum: Personal Finance (Not Investing)
Topic: Another student loans question
Replies: 13
Views: 1123

Re: Another student loans question

It depends on your PMI situation (what the difference would be). A few things to keep in mind: 1) Student loan interest is deductible above-the-line on your tax return (meaning it counts whether you do standard or itemized deduction) 2) You can only deduct $2,500 in student loan interest though beca...
by shanghaista
Tue Mar 21, 2017 6:01 am
Forum: Investing - Help with Personal Investments
Topic: 29, new investors, help with long term plan
Replies: 14
Views: 1552

Re: 29, new investors, help with long term plan

1) Obviously get the full match from 401k/403b. Guaranteed returns. 2) At your tax rate, most likely best to max out your tax-advantaged accounts (401k/403b). Strongly doubt you'll have 28% bracket in retirement and $80k is not an overwhelming amount for your age/family size. 3) Your Merrill Lynch a...
by shanghaista
Mon Mar 20, 2017 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on renting versus selling, in light of student loans
Replies: 5
Views: 475

Re: Advice on renting versus selling, in light of student loans

One more thing regarding your property, think of it in current terms and not your sunk costs (similar to stocks). Would you actively look to buy a house, take on the mortgage you have now and "earn" $150/month? Remember, this is Minnesota vs NY so like others have stated, you'd likely need...
by shanghaista
Mon Mar 20, 2017 6:47 pm
Forum: Investing - Help with Personal Investments
Topic: How do deal with high expense fees in 401k
Replies: 7
Views: 739

Re: How do deal with high expense fees in 401k

I did get her to open a Vanguard Roth IRA though and got her started in the Target Retirement 2050 fund as a "set it and forget it" fund and it had a low initial investment amount. Unfortunately I do not have any dollar amounts to add to this for her because I do not know them other than ...
by shanghaista
Sun Mar 19, 2017 11:05 pm
Forum: Investing - Help with Personal Investments
Topic: New Boglehead, Kids's College, & Emergency Fund Transfer
Replies: 25
Views: 1507

Re: New Boglehead, Kids's College, & Emergency Fund Transfer

I agree with Aristotelian, max out your/your wife's Roth IRAs first. You're currently most likely comfortably in the 15% bracket (married, $18,651 - $75,900) which is definitely on the lower end of taxes when considering IRAs and often where people most recommend utilizing the Roth. The old adage is...
by shanghaista
Sun Mar 19, 2017 10:41 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on renting versus selling, in light of student loans
Replies: 5
Views: 475

Re: Advice on renting versus selling, in light of student loans

Few notes I takeaway: 1) You may have income that'd be more $250k (if spouse finds a job) 2) Your cushion for renting out your condo is only $150/month. Very slim. Means you have to find a renter ASAP and hope there's no turnover. 3) Your student loans concern me - Unlike mortgage interest, they're ...
by shanghaista
Sun Mar 19, 2017 2:16 pm
Forum: Investing - Theory, News & General
Topic: ETF vs Mutual Funds - a dramatic shifting
Replies: 4
Views: 743

Re: ETF vs Mutual Funds - a dramatic shifting

But how can you have an ETF exist, without requiring it's underlying mutual fund core ? Not every ETF is like Vanguard's S&P 500 tracker - ETF VOO vs. Mutual Fund VFINX. They're the same thing (same bucket of money) but have different expense ratios/administrative details. I don't believe every...
by shanghaista
Sun Mar 19, 2017 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Personal finance planning
Replies: 13
Views: 1478

Re: Personal finance planning

"Planned annual retirement savings: $54K (18%)" Where's this total from? Is it a combo of 403, 457 and non-deductible IRAs? As for your house, do your damnedest to get at least 20% down. PMI, especially on a house pushing $1M, will be an unnecessary drag. Interest is deductible (and at 33%...
by shanghaista
Sun Mar 19, 2017 10:20 am
Forum: Investing - Theory, News & General
Topic: Roth Conversion and Strategy
Replies: 25
Views: 2899

Re: Roth Conversion and Strategy

"Is there an ideal percentage that one should have when holding a Roth and a tax deferred IRA? We are looking at converting some or all of our tax deferred IRA's to Roth's. What are there tactical advantages to having one or both?" There is no "ideal percentage" that fits everyon...