Search found 275 matches

by teen persuasion
Thu Aug 17, 2017 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth or am I stuck
Replies: 13
Views: 432

Re: Backdoor Roth or am I stuck

I think you have confused some similar sounding moves. A backdoor Roth is when you are above the Roth income threshold (to do a front door Roth IRA contribution); you contribute to a nondeductible trad IRA and convert it to Roth. Best done when you have no traditional IRA balances due to the pro-rat...
by teen persuasion
Wed Aug 16, 2017 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: Plan for making child pay for part of college
Replies: 111
Views: 5041

Re: Plan for making child pay for part of college

I believe the governments formula for calculating Expected Family Contribution is basically fair (12% of family income + 5.6% of assets). We have our first starting college in a week and she chose, and was accepted to a private that met 100% of need. We signed up to meet the EFC - her maximum Staff...
by teen persuasion
Wed Aug 16, 2017 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Plan for making child pay for part of college
Replies: 111
Views: 5041

Re: Plan for making child pay for part of college

(Even if all the children chose the same career, financial aid would likely be able to cover more for the younger children since the parents are older and have shorter remaining working years for the later children.) We are finding the opposite is true - we easily qualified for auto EFC = 0 for the...
by teen persuasion
Tue Aug 15, 2017 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Plan for making child pay for part of college
Replies: 111
Views: 5041

Re: Plan for making child pay for part of college

ny recommendations or tweaks one would make on something like this. You need to be real clear on just what is included as a college cost and what is not included. There will be LOTS of costs other than the things you see on the statements from the college. I only half joking referred to the college...
by teen persuasion
Sun Aug 13, 2017 6:50 am
Forum: Personal Consumer Issues
Topic: Free Reading
Replies: 66
Views: 5854

Re: Free Reading

Each service has a different collection, so finding your favorite author or title may be an issue. I am still fairly new at this, but it seems like the collections are tied to the libraries, not the services. For example, using Overdrive on Library A may find a book that using Overdrive on Library ...
by teen persuasion
Sat Aug 12, 2017 1:35 pm
Forum: Personal Consumer Issues
Topic: Free Reading
Replies: 66
Views: 5854

Re: Free Reading

Each service has a different collection, so finding your favorite author or title may be an issue. I am still fairly new at this, but it seems like the collections are tied to the libraries, not the services. For example, using Overdrive on Library A may find a book that using Overdrive on Library ...
by teen persuasion
Sat Aug 12, 2017 1:07 pm
Forum: Personal Consumer Issues
Topic: Free Reading
Replies: 66
Views: 5854

Re: Free Reading

I think people misinterpreted my question. Sorry. I grew up using the library constantly in the pre-internet age. I practically memorized the Dewey Decimal system. (Do they still use that?) I read lots of books when I was younger. (Now my attention span is shorter, sorry to say. Too much internet I...
by teen persuasion
Sat Aug 12, 2017 12:06 pm
Forum: Personal Consumer Issues
Topic: Window replacement - any advice? Lessons learned?
Replies: 43
Views: 4650

Re: Window replacement - any advice? Lessons learned?

One thing to consider is with replacement windows, you will have less glass area when compared to new construction windows. The replacement window has it's own frame and it fits in the original window's frame, this results in a double frame and therefore less glass. Depending on window sizes and fr...
by teen persuasion
Tue Aug 08, 2017 7:17 am
Forum: Personal Finance (Not Investing)
Topic: College and Paying for it
Replies: 61
Views: 4051

Re: College and Paying for it

So I've been around the board for a while and I've often wondered about the college thing. We have 529 plans for the kids, not fully funded but a good amount. So my youngest has been looking at colleges recently and one dream school on the list is private. Even with a "Presidents Scholarship" of $1...
by teen persuasion
Fri Aug 04, 2017 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Can my wife afford to stay home?
Replies: 36
Views: 2093

Re: Can my wife afford to stay home?

I was a SAHM for nearly 20 years, until DS5 entered school. I wanted my kids to spend more time with me/us than in daycare, and with multiple kids it just didn't make sense economically. Our tax system is set up to assist relatively lower income families with multiple children, and I've learned that...
by teen persuasion
Wed Aug 02, 2017 7:13 am
Forum: Personal Finance (Not Investing)
Topic: How far off are Zillow's estimates?
Replies: 79
Views: 6785

Re: How far off are Zillow's estimates?

Zillow is conflating different property info, confusing data. The empty land next to our house went up for sale, and that data is mixed in with our home's history now, according to Zillow. It looks like our address sold for $12k last December, but it mentions our garage, our house built in 1880 (act...
by teen persuasion
Tue Aug 01, 2017 10:16 am
Forum: Personal Consumer Issues
Topic: does solar increase the value of a house
Replies: 61
Views: 5184

Re: does solar increase the value of a house

Are there issues for firefighters? I recall hearing firefighting at an industrial building was hampered by rooftop solar panels. Another reported issue... Fire official: Solar panels impede firefighters in putting out Middletown house fire .... But Bampfield said the solar panels prevented the roof...
by teen persuasion
Mon Jul 31, 2017 7:13 am
Forum: Personal Finance (Not Investing)
Topic: Savings Rate Formula - Explicitly Spelled Out
Replies: 50
Views: 3953

Re: Savings Rate Formula - Explicitly Spelled Out

I have also argued back & forth with myself how to treat tax refunds. Even though the IRS considers them income in the year received, they really correspond to something in the previous year. I used to track them as a separate "income" tax refund category in Quicken. I no longer do - ...
by teen persuasion
Tue Jul 25, 2017 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Late start for college savings
Replies: 16
Views: 1330

Re: Late start for college savings

Google "EFC formulas 2017-18" for the pdf containing how to calculate a student's EFC. There is a question regarding whether a student was in foster care at age 13, and it may affect whether she is considered an independent vs dependent student (and thus whether parental info is reported).
by teen persuasion
Mon Jul 24, 2017 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 11318

Re: What's your personal savings rate?

Rate is roughly 60% of gross income, where gross income = DH's gross wages + my gross wages + refundable tax credits. Maxing Roth IRAs for both, maxing HSA, working up to maxing 401k for DH. We just both turned 50, so more room to fill. We paid off the mortgage before pushing DH's 401k contributions...
by teen persuasion
Tue Jul 18, 2017 10:15 pm
Forum: Investing - Help with Personal Investments
Topic: Paying for college expenses
Replies: 9
Views: 1056

Re: Paying for college expenses

I don't know why colleges can't get the payments accurately matched to the calendar year, but I have the impression that incorrect reporting is the norm. It was for us, for 2 universities. Money I paid after Jan 1 for spring semester got credited to the previous year. Scholarship payments got misre...
by teen persuasion
Mon Jul 17, 2017 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: To 529 or not for better Financial Aid
Replies: 17
Views: 1280

Re: To 529 or not for better Financial Aid

OP, you are a computer professional. Use your google-fu to find the FAFSA calculations. Google "EFC formulas 2017-18" for the pdf. Also Google "paper FAFSA" for the inputs for , say, line 94f (for example). Run thru the calcs using different types of theoretical income: w2 income...
by teen persuasion
Mon Jul 17, 2017 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: To 529 or not for better Financial Aid
Replies: 17
Views: 1280

Re: To 529 or not for better Financial Aid

I thought 529 money was excluded from financial aid determination? . Wow! I had no idea it worked that way. I'll dig in further. It does not. 529 accounts are treated like taxable accounts on the FAFSA: after a small "asset protection" amount, 12% of assets are considered available. That ...
by teen persuasion
Fri Jul 14, 2017 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: Is a 529 of any benefit in this instance?
Replies: 16
Views: 1133

Re: Is a 529 of any benefit in this instance?

One distinct disadvantage of 529s vs retirement accounts is in FAFSA calculations of EFC. Balances in retirement accounts are not included in the calculations, while 529 account balances are included with taxable and savings accounts, driving up EFC. Of course, if retirement accounts are already ma...
by teen persuasion
Fri Jul 14, 2017 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4959

Re: When to max out 401k (Aspiring Early Retiree)

So if I max out my 401k, it would be more like 38k/year because of my lower taxable income (I would be contributing $15k more, and 70% of that is about 10k)? I'm not quite sure what "it" refers to, and I think we are looking at the calculation from different viewpoints. Run a trial of you...
by teen persuasion
Fri Jul 14, 2017 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: Is a 529 of any benefit in this instance?
Replies: 16
Views: 1133

Re: Is a 529 of any benefit in this instance?

One distinct disadvantage of 529s vs retirement accounts is in FAFSA calculations of EFC. Balances in retirement accounts are not included in the calculations, while 529 account balances are included with taxable and savings accounts, driving up EFC. Of course, if retirement accounts are already max...
by teen persuasion
Fri Jul 14, 2017 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4959

Re: When to max out 401k (Aspiring Early Retiree)

So if I max out my 401k, it would be more like 38k/year because of my lower taxable income (I would be contributing $15k more, and 70% of that is about 10k)? I'm not quite sure what "it" refers to, and I think we are looking at the calculation from different viewpoints. Run a trial of you...
by teen persuasion
Fri Jul 14, 2017 10:18 am
Forum: Personal Finance (Not Investing)
Topic: When to max out 401k (Aspiring Early Retiree)
Replies: 89
Views: 4959

Re: When to max out 401k (Aspiring Early Retiree)

My goal is to retire at 50. According to MMM's shockingly simple math for early retirement, you should save 40% for retirement. I am almost 27 years old and work a 9-5 steady job paying 76k/yr. I have 60k saved up, but I don't know if that's enough. Enough for what? Emergency fund, taxable account,...
by teen persuasion
Thu Jul 13, 2017 7:10 am
Forum: Personal Finance (Not Investing)
Topic: How to use Retirement Funds for College Savings
Replies: 53
Views: 2648

Re: How to use Retirement Funds for College Savings

I've looked through a lot of threads and I understand that it is always better to max out 401k and IRA accounts before putting anything in a college savings account such as a 529. Therefore, this is what my wife and I plan to do. I am a long way off (oldest is 3) before I will have to pay for any c...
by teen persuasion
Tue Jul 11, 2017 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: Starting college savings
Replies: 29
Views: 2220

Re: Starting college savings

To see the EFC formulas: https://www.google.com/url?sa=t&source=web&rct=j&url=https://studentaid.ed.gov/sa/sites/default/files/2017-18-efc-formula.pdf&ved=0ahUKEwi5xMmq2ILVAhVCyT4KHfjyDRMQFggcMAA&usg=AFQjCNFOh1Tidi6edwihCrFFQeSh34r9fw Work thru the EFC calculation to see whether ...
by teen persuasion
Sat Jul 01, 2017 6:59 am
Forum: Personal Finance (Not Investing)
Topic: Rules of Thumb - Retirement Savings Multiples Question
Replies: 16
Views: 1999

Re: Rules of Thumb - Retirement Savings Multiples Question

I like tracking savings rate to FIRE: http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ I don't find much use in comparing income to savings, since income fluctuates. If DH goes to part time and takes a pay cut, did we really see a jump in savings? Or if I...
by teen persuasion
Mon Jun 26, 2017 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Just found out my wife is pregnant.
Replies: 15
Views: 2302

Re: Just found out my wife is pregnant.

It sounds like you are nearly done paying down debt. How much of a difference does that make in your budget? Will that plus some costs of working (FICA, fed and state tax, gas, etc) allow your wife to stop earning? Don't forget to calculate the tax advantages of a new child - an extra exemption, the...
by teen persuasion
Sat Jun 17, 2017 6:49 am
Forum: Investing - Help with Personal Investments
Topic: Can we discuss Investment Order
Replies: 22
Views: 2560

Re: Can we discuss Investment Order

Here is what I told my son who joined the workforce recently. ... 4. He is on parent's health insurance, so no question of HSA. If the parent's insurance is an HDHP, and the son is no longer a dependent, the son may have his own HSA - and contribute the family maximum. This is independent of what t...
by teen persuasion
Sun Jun 11, 2017 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Feasible path to early retirement?
Replies: 18
Views: 2000

Re: Feasible path to early retirement?

http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ Use this to calculate roughly how soon you could get to retirement based on current savings rate, or conversely, how much you need to save to reach retirement in x years. https://forum.mrmoneymustache.com/...
by teen persuasion
Sun Jun 11, 2017 11:08 am
Forum: Investing - Help with Personal Investments
Topic: Move taxable to 529 for FAFSA benefits?
Replies: 14
Views: 726

Re: Move taxable to 529 for FAFSA benefits?

Also Google "paper FAFSA" to reference the formula inputs (e.g., "line 96f"). You will be applying online, but that format is Q&A, not line by line, and not labeled that I've seen. Some of the amounts asked for are a bit ambiguous, like "your income". Is that gross ...
by teen persuasion
Sat Jun 10, 2017 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: Move taxable to 529 for FAFSA benefits?
Replies: 14
Views: 726

Re: Move taxable to 529 for FAFSA benefits?

More thoughts: if you will be attending this fall, the FAFSA applications were done beginning last October, using tax info from 2015. If next year, you will complete the FAFSA in October 2017 with 2016 tax info. So those are already fixed and cannot be changed thru retirement contributions. The asse...
by teen persuasion
Sat Jun 10, 2017 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: Move taxable to 529 for FAFSA benefits?
Replies: 14
Views: 726

Re: Move taxable to 529 for FAFSA benefits?

OP, can you file 1040EZ or A? Is your AGI under $50k? You could be eligible for the Simplified Needs Test on the FAFSA, which would ignore assets. Google "EFC formulas 2017-18" to get the pdf of the relevant formulas. As you are military, you are an independent student. Being married and h...
by teen persuasion
Sat Jun 10, 2017 7:44 am
Forum: Personal Finance (Not Investing)
Topic: (Very) Early Retirement vs Parenthood
Replies: 74
Views: 4792

Re: (Very) Early Retirement vs Parenthood

$2 million isn't nearly enough, especially with truncated social security from early retirement. And with kids to feed, it's even worse. And if you have cats/dogs/etc., that's another big deal/obligation. And if you have kids, you have to have pets you know... (or they won't grow up right). This is...
by teen persuasion
Fri Jun 09, 2017 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: 401K v. Roth IRA investing
Replies: 18
Views: 1075

Re: 401K v. Roth IRA investing

e.g. tax implications later on that would be better for me? Is one of your wife's other investment programs a pension? Having pension income in retirement can shift the Roth vs traditional choice a bit more to Roth. The idea is that pension income takes up some of your lowest tax bracket space (alo...
by teen persuasion
Fri Jun 09, 2017 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: 401K v. Roth IRA investing
Replies: 18
Views: 1075

Re: 401K v. Roth IRA investing

Thank you to all for some great input. To add some info i saw, I live in New York. Please tell us your exact contribution amount to the 401K and Roth IRA. We could tell you the optimum combination. So right now I contribute 14% into my Traditional 401K ($643.50/month) + the 3% my employer contribut...
by teen persuasion
Fri Jun 09, 2017 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Any tips on creating a budget for a SAHM ?
Replies: 24
Views: 1949

Re: Any tips on creating a budget for a SAHM ?

I was a SAHM for nearly 20 years (5 kids) and am still the CFO for our family. I already was doing the majority of purchases and all of the bill paying, DH has little interest in finances, so it just works for us. So I'd suggest getting your spouse involved in the family budget process, both short a...
by teen persuasion
Fri Jun 09, 2017 8:49 am
Forum: Personal Finance (Not Investing)
Topic: How to deal with a personal finance cynic
Replies: 109
Views: 6499

Re: How to deal with a personal finance cynic

I introduced a friend to this site and asked him if he liked what he saw and any feedback that he had. His immediate reaction was that this site does not represent the ground reality of the vast majority. Here people talk about 400-500K of income and 300K 529 accounts and 80K pensions, but for most...
by teen persuasion
Mon Jun 05, 2017 6:35 pm
Forum: Personal Finance (Not Investing)
Topic: Can anyone help re: calculating income for ACA eligibility?
Replies: 23
Views: 1228

Re: Can anyone help re: calculating income for ACA eligibility?

Yes, you are eligible to apply. However, coverage doesn't begin immediately. That was the mistake we made, waiting until his employer coverage ended before applying. It is frustratingly, needlessly complex to navigate. If I have to go thru the marketplace again in the future, I will seek out and use...
by teen persuasion
Mon Jun 05, 2017 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Can anyone help re: calculating income for ACA eligibility?
Replies: 23
Views: 1228

Re: Can anyone help re: calculating income for ACA eligibility?

If you are married the 400% upper limit is about $62,000. Contribute to an IRA so you will be below the 400% threshold - below which your health premiums will be subsidized so your premium is about 9.5% of income, or about $500 per month, the rest is subsidized. Our premiums at the 139% level are a...
by teen persuasion
Tue May 30, 2017 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Thoughts on Roth IRA vs Roth 457/403
Replies: 14
Views: 442

Re: Thoughts on Roth IRA vs Roth 457/403

The obvious advantage to me is contributing the max to all available accounts, for the greater total tax sheltered. However, if I'm reading you right, OP, you are limiting yourself to a total of $24k each, not the possible $30.5k max between employer plan with catchup and IRA with catchup. Then, the...
by teen persuasion
Fri May 26, 2017 11:04 am
Forum: Investing - Help with Personal Investments
Topic: How to calculate the top of the 15% bracket?
Replies: 23
Views: 2457

Re: How to calculate the top of the 15% bracket?

Thanks for the replies. My significant other will be doing this first, retiring at the end of this year. I will continue working and support the household and she will not work at all so she will have $0 income for 2018...at least that's the plan. Since her income will be zero, she can convert the ...
by teen persuasion
Tue May 23, 2017 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: % Roth vs. % traditional
Replies: 91
Views: 4061

Re: % Roth vs. % traditional

My employer has a roth 401k option and for the longest time I was 100% roth. After some reading and education by way of the Boglehead site, I realized that being in the 28% bracket now, I would be better off with going the traditional route. A plus is that if you are not already maxing out your ROT...
by teen persuasion
Tue May 23, 2017 7:47 am
Forum: Personal Finance (Not Investing)
Topic: IRS tax letter triggered by Turbotax's 8606
Replies: 38
Views: 4608

Re: IRS tax letter triggered by Turbotax's 8606

I find it takes me much longer to go thru the interview vs directly filling the forms, and I am blind on whether TurboTax has done things correctly until I can see the finalized forms late in the "approve and e-file" stage. You might take a look at HR Block software. Th forms can be viewe...
by teen persuasion
Tue May 23, 2017 6:51 am
Forum: Personal Finance (Not Investing)
Topic: IRS tax letter triggered by Turbotax's 8606
Replies: 38
Views: 4608

Re: IRS tax letter triggered by Turbotax's 8606

I've always found that doing forms myself is far easier than guess-what-I'm-thinking, poorly-worded interviews. A cut-down version of Turbotax with the automated data importing and filling in data from the previous year, but letting you do all the rest by hand, would be most welcome. In fact, it wo...
by teen persuasion
Sun May 21, 2017 8:50 pm
Forum: Personal Consumer Issues
Topic: Risks of electronic access
Replies: 57
Views: 5228

Re: Risks of electronic access

I no longer trust mail delivery. Years ago we paid our credit card with a check sent snail mail. More than once the check was lost, whether in the mail or internally at the CC company I don't know. Since switching to paying online we've never had an issue with a "lost" payment. More recent...
by teen persuasion
Sun May 21, 2017 10:15 am
Forum: Investing - Theory, News & General
Topic: Advice for Endowment Investing Allocation - 3 fund?
Replies: 10
Views: 787

Re: Advice for Endowment Investing Allocation - 3 fund?

Following - I'd like to do similar for my library's endowment fund. I was aghast when I saw the advisor's fees and churning, but the Trustees at the time would rather trust him than themselves. A change in the Board membership may work in my favor this time. I'd like to have a good plan to propose t...
by teen persuasion
Thu May 18, 2017 10:09 pm
Forum: Investing - Help with Personal Investments
Topic: Is it better to stay at 19 or 24 paychecks per year?
Replies: 18
Views: 1841

Re: Is it better to stay at 19 or 24 paychecks per year?

you're giving them a 0% loan if you do 24 paychecks. I'm making a couple assumptions here, but with 19 paychecks, by August 15 you will have received about 52% of your yearly pay. If you were paid 24 times a year, by August 15 you will have received 62.5% of your yearly pay. Taking 19 paychecks is ...
by teen persuasion
Fri May 05, 2017 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: When you didn't have 401(k)/403(b), did you have IRA?
Replies: 46
Views: 2421

Re: When you didn't have 401(k)/403(b), did you have IRA?

I am trying to figure out why IRAs are not popular for workers without employer-sponsored retirement plans. Is it because: 1. No money to save for retirement? 2. No knowledge of IRAs? 3. Fear of locking up money for years and years? 4. Fear of financial institutions? 5. Something else? Thanks for a...
by teen persuasion
Wed May 03, 2017 9:21 pm
Forum: Investing - Theory, News & General
Topic: Who Contributes to IRA's?
Replies: 8
Views: 1252

Re: Who Contributes to IRA's?

Interesting article. For the people who have access to both, I'd suggest preferring an IRA to a 401-k (after getting the employer match). An IRA gives you the ability to choose your investments and better control your costs. After you fill that bucket, then resume contributing to a 401-k. For relat...