Search found 508 matches

by teen persuasion
Tue May 22, 2018 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Buy an old farmhouse?
Replies: 47
Views: 3711

Re: Buy an old farmhouse?

Our house is probably c.1840, roughly 3k sf, we have 2 acres. I love our old house, but it is a little quirky. I consider our replacement windows on the con side of the equation, I'd prefer the original windows with storms as better than our current vinyl Windows, but that's just me. Three thousand ...
by teen persuasion
Mon May 21, 2018 9:34 pm
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 262
Views: 47265

Re: "Why 97% of People Don't Use 529 College Savings Plans."

Could someone channel college expenses through a 529 to avoid state income taxes? In most states, contributions can reduce income taxes. The strategy would be to have money in it for short time so it does not effect federal student aid. But maybe that would not work? I have considered running colle...
by teen persuasion
Mon May 21, 2018 6:48 am
Forum: Personal Finance (Not Investing)
Topic: child turning 18 - stop filing as dependent?
Replies: 23
Views: 1951

Re: child turning 18 - stop filing as dependent?

Even dependents get their standard deduction, they just aren't eligible for their personal exemption, and personal exemptions are worth $0 with the tax reform. Depending on the amount earned at the summer job, and assuming the daughter can be claimed as a dependent, the standard deduction may not b...
by teen persuasion
Sun May 20, 2018 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: New perspective on cash-flowing ever increasing College tuition costs, without 529 plan that is!
Replies: 22
Views: 1852

Re: New perspective on cash-flowing ever increasing College tuition costs, without 529 plan that is!

On a side note: Has TCJA made kids less tax-efficient for parents: if kids older than 18 no exemptions allowed; if parents are not eligble to claim child-tax-credit, kids younger than 18-years may also have been rendered less tax-friendly; is this correct ?) The CTC has been expanded from $1k to $2...
by teen persuasion
Sun May 20, 2018 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: New perspective on cash-flowing ever increasing College tuition costs, without 529 plan that is!
Replies: 22
Views: 1852

Re: New perspective on cash-flowing ever increasing College tuition costs, without 529 plan that is!

Biggest issue is the FAFSA does not actually care what your tax situation is. If your kid isn't married or in the military your income counts till 26 Not only that, but 50% of child's income over ($6750 +FICA+ fed tax paid) is added to parents' contribution, plus 20% of child's assets to calculate ...
by teen persuasion
Sun May 20, 2018 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: child turning 18 - stop filing as dependent?
Replies: 23
Views: 1951

Re: child turning 18 - stop filing as dependent?

Even dependents get their standard deduction, they just aren't eligible for their personal exemption, and personal exemptions are worth $0 with the tax reform.

Whether your child is your dependent will affect who is eligible to claim the AOTC for your college student, parents or child.
by teen persuasion
Fri May 18, 2018 6:59 am
Forum: Personal Finance (Not Investing)
Topic: Can I Roth convert 401k? (and other retirement acct questions)
Replies: 10
Views: 815

Re: Can I Roth convert 401k? (and other retirement acct questions)

If you could be eligible for EITC, t401k is preferable to tIRA. EITC tests on both line 7 wages (which t401k reduces, but tIRA does not) and AGI (both reduce this). You get as a credit whichever result is smaller (usually higher income = smaller EITC). The EITC phaseout rate for us is 21%. Our state...
by teen persuasion
Wed May 16, 2018 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: somebody is using our address
Replies: 45
Views: 4558

Re: somebody is using our address

I cannot help, but thought this was 'interesting': https://www.npr.org/sections/thetwo-way/2018/05/10/610102872/man-allegedly-used-change-of-address-form-to-move-ups-headquarters-to-his-apartm Anyone can submit a change-of-address form to the USPS and they seem to not check out if it is legit or no...
by teen persuasion
Wed May 16, 2018 7:10 am
Forum: Personal Finance (Not Investing)
Topic: Do you know your marginal tax rate?
Replies: 27
Views: 2911

Re: Do you know your marginal tax rate?

There's also the 7.65% FICA avoided for HSA contributions, which you could view as bumping the top rate to 48.95% if you mentally stack the HSA contributions on top of the retirement contributions. In your low tax bracket, the FICA avoided is likely to be a net loss; $1 of saved FICA costs you more...
by teen persuasion
Tue May 15, 2018 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7558

Re: Can a <median household save 1 year of expenses every year?

Is there anyone here, in this forum, that lives in a household making less than $59,000 gross income per year that saves as much money as they spend, every year? We both make and spend more than this, but by basing this on our actual situation and eliminating some of our extravagances I'll take a c...
by teen persuasion
Tue May 15, 2018 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7558

Re: Can a <median household save 1 year of expenses every year?

Our combined gross income just exceeded $60k for the first time last year. DH was contributing 50% of his $40.4k to his 401k, plus nearly maxed his HSA (~$6400). I have no access to a 401k, but we contributed the max to Roth IRAs as well, $6500 DH + $5500 for me. So a total of $38.6k out of $60.5k ...
by teen persuasion
Tue May 15, 2018 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7558

Re: Can a <median household save 1 year of expenses every year?

The "every year" part of the question is the harder part. When we were younger, in even lower paying jobs, I was a SAHM, and we had student loans + an ugly 9.75% mortgage, and 5 kids at home - no we were not saving 50% of income. I've been gradually getting to our current situation. It took a while ...
by teen persuasion
Tue May 15, 2018 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7558

Re: Can a <median household save 1 year of expenses every year?

Our combined gross income just exceeded $60k for the first time last year. DH was contributing 50% of his $40.4k to his 401k, plus nearly maxed his HSA (~$6400). I have no access to a 401k, but we contributed the max to Roth IRAs as well, $6500 DH + $5500 for me. So a total of $38.6k out of $60.5k g...
by teen persuasion
Tue May 15, 2018 7:20 am
Forum: Personal Finance (Not Investing)
Topic: Do you know your marginal tax rate?
Replies: 27
Views: 2911

Re: Do you know your marginal tax rate?

Our marginal rate is more dependent on whether we hit retirement contribution maximums and on refundable credit phaseouts, along with nonrefundable credits causing discontinuities. Without any retirement or HSA contributions, we'd be in the 12% federal bracket + 4% state. Contributions get us down t...
by teen persuasion
Fri May 11, 2018 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: How close do you cut your monthly surplus?
Replies: 22
Views: 3035

Re: How close do you cut your monthly surplus?

I don't budget on a monthly basis - our spending is very lumpy. So the checking account floats up, and when we hit one of the high expense months, it goes back down. What I do do is reevaluate every year just how much we can push to tax advantaged accounts, aiming high at the beginning of the year. ...
by teen persuasion
Wed May 09, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: 25 Years Old. Need help. In the Guard. Currently having TSP trying to pay off debt then make plan for Roth IRA??
Replies: 27
Views: 1649

Re: 25 Years Old. Need help. In the Guard. Currently having TSP trying to pay off debt then make plan for Roth IRA??

Questions: 1. Any suggestions? I know I need to pay off high interest debts. I'm really embarrassed by it, but have literally had a storm of emergencies this year. It's now dying down. 2. I know there's two theories one is that you pay off all debt first then invest. (I want to get the free 5% from...
by teen persuasion
Wed May 09, 2018 7:00 am
Forum: Investing - Theory, News & General
Topic: Family of Four, two HDHPs, two HSAs, $13,800 in contributions?
Replies: 14
Views: 1539

Re: Family of Four, two HDHPs, two HSAs, $13,800 in contributions?

When I learned that we couldn't use our HSA contributions to pay DS2's medical expenses, I encouraged him to open his own HSA, even if he didn't fully fund it immediately. He needed to start the clock by opening the account before he incurred bills, if he wanted to take advantage of the tax free pe...
by teen persuasion
Tue May 08, 2018 9:09 pm
Forum: Investing - Theory, News & General
Topic: Family of Four, two HDHPs, two HSAs, $13,800 in contributions?
Replies: 14
Views: 1539

Re: Family of Four, two HDHPs, two HSAs, $13,800 in contributions?

Are those "plus one"s dependents? There's a quirk where older children (who are no longer dependents, but under 26) can still be on parent's insurance, but as they are not dependents they are eligible for their own HSA. As they are part of a family plan, they each get to contribute to the family li...
by teen persuasion
Tue May 08, 2018 7:53 am
Forum: Investing - Theory, News & General
Topic: Family of Four, two HDHPs, two HSAs, $13,800 in contributions?
Replies: 14
Views: 1539

Re: Family of Four, two HDHPs, two HSAs, $13,800 in contributions?

Are those "plus one"s dependents? There's a quirk where older children (who are no longer dependents, but under 26) can still be on parent's insurance, but as they are not dependents they are eligible for their own HSA. As they are part of a family plan, they each get to contribute to the family lim...
by teen persuasion
Sun May 06, 2018 6:35 am
Forum: Personal Finance (Not Investing)
Topic: Salary, take-home, adjusted gross income, and wages
Replies: 12
Views: 2593

Re: Salary, take-home, adjusted gross income, and wages

What do you pay in for health insurance? That's the missing figure. DD is the total contributions for health insurance, both what you contribute and what your employer pays in, so it is confusing you.
by teen persuasion
Thu May 03, 2018 8:26 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 30981

Re: KF's simple rules to achieve FI [Financial Independence]

Yeah, yyou've got to be rich in order to max out retirement accounts. I mean, I'd love for someone to show me how my wife and I can max my 401k and one Roth IRA, let alone two, on my income of $63,500. And that hypothetical person isn't saving $9k per year - they're saving $18.5 in their 401k, $5.5...
by teen persuasion
Thu May 03, 2018 12:45 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 30981

Re: KF's simple rules to achieve FI [Financial Independence]

Yeah, yyou've got to be rich in order to max out retirement accounts. I mean, I'd love for someone to show me how my wife and I can max my 401k and one Roth IRA, let alone two, on my income of $63,500. And that hypothetical person isn't saving $9k per year - they're saving $18.5 in their 401k, $5.5...
by teen persuasion
Mon Apr 30, 2018 7:39 am
Forum: Investing - Help with Personal Investments
Topic: Early Retirement using Mega Back Door Roth - Need advice
Replies: 8
Views: 1304

Re: Early Retirement using Mega Back Door Roth - Need advice

One detail I noticed is that you have a 401k match. Matching funds always go into a non-Roth 401k, so you will have at least some balance subject to RMDs.
by teen persuasion
Mon Apr 30, 2018 7:15 am
Forum: Personal Finance (Not Investing)
Topic: Salary, take-home, adjusted gross income, and wages
Replies: 12
Views: 2593

Re: Salary, take-home, adjusted gross income, and wages

Looks like you had roughly $2500 deducted for health insurance or HSA payroll contributions, $3316 contributed to some pre-tax retirement account like pension or 401k, and on your tax return you had $960 extra income like interest or dividends. You should see my DH's numbers - his salary at the job ...
by teen persuasion
Sat Apr 28, 2018 7:13 am
Forum: Personal Finance (Not Investing)
Topic: Do state taxes change for the 2018 tax year and beyond?
Replies: 15
Views: 849

Re: Do state taxes change for the 2018 tax year and beyond?

I'm waiting and watching how my state will handle the increased CTC. Currently the state matches 33% of the $1k credit. Somehow I doubt the state will simply match the new higher credit, and there's the question of which level counts: total credit or refundable portion.
by teen persuasion
Fri Apr 27, 2018 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Making the decision to do a Roth Conversion
Replies: 46
Views: 3145

Re: Making the decision to do a Roth Conversion

Isn't the main benefit of Roth conversions for early retirees (FIRE)? The Roth conversion ladder. Retire early, have low income, do Roth conversions for 0% (or low) tax. When you withdraw it 5+ years later, you will have paid $0 in taxes on that money. Roth conversions are completely taxable. I won...
by teen persuasion
Thu Apr 26, 2018 7:47 am
Forum: Investing - Help with Personal Investments
Topic: 401k only up to the match and the rest in IRA's...
Replies: 7
Views: 795

Re: 401k only up to the match and the rest in IRA's...

If eligible for EITC, contributions to the 401k increase your credit while the same contribution amount to tIRA will not. At a phaseout rate of 21% for EITC + 30% state EITC match (additional 6.3%) that's a big incentive for us to prefer the 401k, even with high fees. Of course, we then take the enh...
by teen persuasion
Thu Apr 26, 2018 7:24 am
Forum: Personal Finance (Not Investing)
Topic: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths
Replies: 35
Views: 2935

Re: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths

Have you looked at the EITC chart in the 1040 instruction booklet? EITC phases out, it's not a hard cliff (except for the investment income rule). So if you get yourself $100 under the top income level, your credit is only ~$22. Just getting below the max income may not be a goal worth chasing, if y...
by teen persuasion
Mon Apr 23, 2018 7:18 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 30981

Re: KF's simple rules to achieve FI

[RE 529] ..... Our situation explains it. If you save diligently for years, and lose your job, your kids are now more likely to receive financial aid if your savings are all in retirement accounts and not 529 accounts. Low earned income + little "available assets" = low EFC. Save in 529 accounts an...
by teen persuasion
Sat Apr 21, 2018 3:34 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 30981

Re: KF's simple rules to achieve FI

This rule might be OK if your current savings is not sufficient to fill up all tax-advantaged vehicles (401k, Roth, IRA, HSA, etc.). But if you are filling all of those, and still have money to save AND you anticipate you will likely have to pay for at least some of your kids educational expenses, ...
by teen persuasion
Sat Apr 21, 2018 10:01 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 30981

Re: KF's simple rules to achieve FI

This rule might be OK if your current savings is not sufficient to fill up all tax-advantaged vehicles (401k, Roth, IRA, HSA, etc.). But if you are filling all of those, and still have money to save AND you anticipate you will likely have to pay for at least some of your kids educational expenses, ...
by teen persuasion
Thu Apr 19, 2018 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Applying for ACA ? [Colorado]
Replies: 17
Views: 1544

Re: Applying for ACA ?

Start the process before you need coverage. We learned the hard way that there us a lag time before coverage begins. If you are approved before the 15th of the month, your coverage may begin on the first of the next month. If after the 15th, it begins on the first of the month after the next month. ...
by teen persuasion
Thu Apr 19, 2018 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Estimating Future College Costs
Replies: 18
Views: 1405

Re: Estimating Future College Costs

Depending where your children go to college, you may find that housing costs can exceed the cost of tuition. I'm in California, where all the UC's are in HCOL areas. Paying $800 or more per month to share a small room with 2 or 3 other students is typical. Yes, R&B is more than tuition and fees for...
by teen persuasion
Wed Apr 18, 2018 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for non-retirement funds in light of looming college bills
Replies: 8
Views: 626

Re: Strategy for non-retirement funds in light of looming college bills

Thank you teen. That's good information. It sounds like paying all or some of the mortgage might be a good idea since it will reduce assets that go into the FAFSA formula (even though CSS would be neutral on the matter). We'll continue to research and consider, but these are great pointers. Thanks ...
by teen persuasion
Tue Apr 17, 2018 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: Did I just mess up?
Replies: 9
Views: 1584

Re: Did I just mess up?

The $6500 is deductible, correct? I contributed $18,000 to my current employer 401K in 2017, and today the catch-up contribution also for 2017 I think you are confusing your IRA with your 401k. Contributions to your 401k are done thru payroll deductions, but you make contributions to your IRA from ...
by teen persuasion
Tue Apr 17, 2018 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Strategy for non-retirement funds in light of looming college bills
Replies: 8
Views: 626

Re: Strategy for non-retirement funds in light of looming college bills

https://www.google.com/url?sa=t&source=web&rct=j&url=https://ifap.ed.gov/efcformulaguide/attachments/071017EFCFormulaGuide1819.pdf&ved=2ahUKEwi9pbfa1sHaAhVDm-AKHSCbDiYQFjAAegQICRAB&usg=AOvVaw2QtrAr5C5-h1QJ3UkpjWXa The above should be the FAFSA formulas for calculating EFC (Expected family contribut...
by teen persuasion
Tue Apr 17, 2018 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Child in college w/$500 income on W-2 - File taxes?
Replies: 27
Views: 2446

Re: Child in college w/$500 income on W-2 - File taxes?

Is your daughter under age 24 and is her earned income less than half of her support? Then she is not eligible for the refundable portion of the credit. If she owed any tax, she could benefit from the nonrefundable portion of the credit. Look at page 6 of the instructions for form 8863 for the AOTC....
by teen persuasion
Mon Apr 16, 2018 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths
Replies: 35
Views: 2935

Re: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths

First question: do you have investment income > $3500? If so, you are ineligible for EITC. If you might be eligible, look up the amounts on line 7 (wages) and your AGI in the EITC chart. I believe EITC is completely phased out at $54,884 wages/AGI for 3 kids in 2018. If both are under the phaseout c...
by teen persuasion
Mon Apr 16, 2018 7:58 am
Forum: Personal Finance (Not Investing)
Topic: HELP - IRS says I owe close to $12,000 for 2016 taxes
Replies: 26
Views: 4439

Re: HELP - IRS says I owe close to $12,000 for 2016 taxes

You mentioned this was a DRIP, did you include all the reinvested dividends in you basis estimates?
by teen persuasion
Mon Apr 16, 2018 7:39 am
Forum: Personal Finance (Not Investing)
Topic: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths
Replies: 35
Views: 2935

Re: better? Lowering taxable income to 12%, go below 63k to collect Savers credit, or max all Roths

...help put the $400 credit in perspective. +1 to that post. Picture version below. As already noted, using the 22% marginal saving rate for traditional is a reasonable bet, but the 12% (plus a little bump from the saver's credit) might better be paid now and post-tax amount put into Roth. If your ...
by teen persuasion
Fri Apr 13, 2018 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Could you support family on 1 income?
Replies: 88
Views: 6069

Re: Could you support family on 1 income?

Yes, DH was the only earner for nearly 20 years while I was SAHM for our 5 kids. When youngest was beginning school, oldest was starting college, we were just making the last payments on our mortgage (it was an ugly 9.75%, so I developed a plan to pay it off in under 15 years by ramping up our retir...
by teen persuasion
Thu Apr 12, 2018 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative website for those in lower tax brackets?
Replies: 59
Views: 5523

Re: Alternative website for those in lower tax brackets?

I also see posts that reflect assumptions that another group might not reflect as much. For instance, I am not sure the average Boglehead realizes how many working Americans do not have access to a 401k (or other tax-deferred vehicle other than individual IRAs). A married couple could contribute $5...
by teen persuasion
Thu Apr 12, 2018 6:45 am
Forum: Personal Finance (Not Investing)
Topic: How much does each dollar you contribute into a Solo 401k save you in taxes?
Replies: 6
Views: 626

Re: How much does each dollar you contribute into a Solo 401k save you in taxes?

Lowering your AGI and wages can also affect credits like EITC, and state taxes. We're not using a solo 401k, just DH's employer 401k, but results are comparable. For us, $100 in the traditional 401k reduces our federal taxes $10, state tax $4, increases our EITC $21 (reverses phaseout rate of 21%), ...
by teen persuasion
Wed Apr 11, 2018 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Am I being unreasonable? [Send daughter to private kindergarten]
Replies: 70
Views: 4125

Re: Am I being unreasonable?

DH and I each attended private elementary schools, and single sex private high schools (in different cities, we met in college). We deliberately chose to send our kids to public schools, because of the limitations we each perceived in our private school educations. Our local district has a strong mu...
by teen persuasion
Wed Apr 11, 2018 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Child in college w/$500 income on W-2 - File taxes?
Replies: 27
Views: 2446

Re: Child in college w/$500 income on W-2 - File taxes?

Thanks for the details, Celia. What I was referring to was that I have not seen a requirement that students file tax returns with the schools. I have had to provide mine/DH's return, and IFF the kids had filed due to income, theirs was requested for FA verification, but never for an on campus job (e...
by teen persuasion
Wed Apr 11, 2018 7:15 am
Forum: Personal Finance (Not Investing)
Topic: Child in college w/$500 income on W-2 - File taxes?
Replies: 27
Views: 2446

Re: Child in college w/$500 income on W-2 - File taxes?

If she will be applying for financial aid in 2 years (2019-2020 school year), she will need a 2017 tax return to submit. Even if she doesn't need any grants or loans, campus jobs often require a previous tax return be filed with the college. Can you explain this further? This has not been my experi...
by teen persuasion
Tue Apr 10, 2018 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: 0% credit card to pay off student loan?
Replies: 25
Views: 1615

Re: 0% credit card to pay off student loan?

Wow! All points well taken and I am very appreciative for all the suggestions. My job is super stable. I am not concerned about it. I have been a ESL teacher for 14 years. Salary is about to go up in June. I am definitely setting up a HELOC before any balance transfer. I am aware there is risk invo...
by teen persuasion
Tue Apr 10, 2018 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Child in college w/$500 income on W-2 - File taxes?
Replies: 27
Views: 2446

Re: Child in college w/$500 income on W-2 - File taxes?

Yes, have her file a tax return, if only to get a return of her federal withholdings, and for the experience. If $500 is her only income (investments, taxable scholarships, etc?) then she won't owe any federal income tax, since her single standard deduction will more than cover her income. She won't...