Search found 373 matches

by teen persuasion
Tue Dec 12, 2017 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Conflicting goals, and limited income
Replies: 17
Views: 1588

Re: Conflicting goals, and limited income

Right now your income is relatively low (E4), but will grow with time as you progress up the ranks. You can't fund everything you'd like to, at the levels you'd like, right now, so you need to prioritize. Balance short term vs long term, but also keep limits and costs in mind. Put your first savings...
by teen persuasion
Mon Dec 11, 2017 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Quit jobs to gain lower EFC [Expected Family Contribution]
Replies: 86
Views: 5128

Re: Quit jobs to gain lower EFC

Actually this thread is about how much/little to work to position oneself for maximum benefit in the EFC calculation. No matter what my wife and I decide to do, all options involve working. What degree of work is the question posed to the group. Chipperd Easy answer: AGI <= $25k, eligible to file 1...
by teen persuasion
Thu Dec 07, 2017 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: Quit jobs to gain lower EFC [Expected Family Contribution]
Replies: 86
Views: 5128

Re: Quit jobs to gain lower EFC

If you have a senior and a junior now, you are 2 years too late to do this for all eight years. The senior should have filed the FAFSA on 2016 tax info, and 2 kids will file next year on 2017 income figures that are all but set in stone now. Get the FAFSA formulas and crunch the numbers to see what ...
by teen persuasion
Wed Dec 06, 2017 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Voya 401k or Not! Not enough in 401ks?
Replies: 13
Views: 877

Re: Voya 401k or Not! Not enough in 401ks?

If I understand correctly, she can contribute to her 401k, and you both can contribute to IRAs. You would effectively be shifting $$ from taxable accounts to tax deferred, or tax free. You will have to explore some scenarios to see if you are eligible to contribute to Roth accounts, if you want to s...
by teen persuasion
Tue Dec 05, 2017 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Paying taxes with credit card?
Replies: 28
Views: 2607

Re: Paying taxes with credit card?

But it's only worthwhile up to the amount that you would have spent at Amazon anyway (or would have bought somewhere and Amazon is still good value). Yes, indeed. For instance, we know we will buy all the dog's food from Amazon. That's a lot of dog food from Amazon! I pass on this gift card deal - ...
by teen persuasion
Tue Dec 05, 2017 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage is About To Be Paid - I'm Scared!
Replies: 43
Views: 5631

Re: Mortgage is About To Be Paid - I'm Scared!

OP, you sound like you are viewing your debts as holes to be filled. Student loan hole, filled. Check. Mortgage hole, nearly filled. Now what? You could look at retirement savings as another hole that needs to be filled, a "debt" to yourself, your future self. If you need multiple goals, view it as ...
by teen persuasion
Tue Dec 05, 2017 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Why was my 2016 tax so low?
Replies: 19
Views: 2122

Re: Why was my 2016 tax so low?

Traditional contributions, either IRA or 401k, would lower your wages reported on line 7, which would lower your taxes by your marginal rate. The Retirement Saver's credit is tiered, with higher credit rates for lower AGI. So if you could push your AGI below another level, it would increase the amou...
by teen persuasion
Mon Dec 04, 2017 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Why was my 2016 tax so low?
Replies: 19
Views: 2122

Re: Why was my 2016 tax so low?

Did you contribute to a retirement savings plan? Because if so, your paid tax seems too high. As a married couple with that MAGI, you should be able to use the retirement savers' credit to claim 50% of what you contribute up to actual savings of $1,000. Most people don't get to claim the entire $1,...
by teen persuasion
Fri Dec 01, 2017 8:45 am
Forum: Personal Finance (Not Investing)
Topic: FIRE [financial independence/retire early]
Replies: 132
Views: 11653

Re: FIRE [financial independence/retire early]

I think many are to worried about retiring early. Why not enjoy the work you do and enjoy life along the way. Web sites like Mr. MM talk about how they retired early and live on 25-30k a year. Who would want to live so frugal at a retiremnt age in your 30-40s. Why not work longer and live the same ...
by teen persuasion
Fri Nov 24, 2017 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: Light on Taxable- Cut Retirement Contributions Or Take 10% Penalty?
Replies: 21
Views: 1798

Re: Light on Taxable- Cut Retirement Contributions Or Take 10% Penalty?

To be clear, I'm not withdrawing from retirement funds now. At 54 or so, I may not have taxable/liquid assets left for living expenses other than my Roth contributions. If you continue to work, why may you not have liquid assets left for living expenses? Somethings been nagging me about the details...
by teen persuasion
Fri Nov 24, 2017 10:00 am
Forum: Investing - Help with Personal Investments
Topic: Light on Taxable- Cut Retirement Contributions Or Take 10% Penalty?
Replies: 21
Views: 1798

Re: Light on Taxable- Cut Retirement Contributions Or Take 10% Penalty?

OP, if you cut back on retirement contributions, where would you cut: traditional or Roth? IOW, are you shifting taxable to traditional, or to Roth today? Without an EF, I'd be reluctant to drain taxable down completely. What is your plan? Are you getting close to ER, and just trying to eek out as m...
by teen persuasion
Thu Nov 23, 2017 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about how pre-tax health insurance and IRA contributions effect taxes
Replies: 4
Views: 464

Re: Questions about how pre-tax health insurance and IRA contributions effect taxes

I think what you are asking is: how much is the blow softened by medical being pre-tax? Medical will have no FICA withheld (so save 7.65% of additional $480), no federal income tax withheld (whatever your bracket is, 15%?), and possibly affect your state income tax if any. At $50k gross income HOH, ...
by teen persuasion
Tue Nov 21, 2017 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Why not take Social Security at 62
Replies: 334
Views: 25855

Re: Why not take Social Security at 62

Family longevity also matters a lot. If you are getting your longevity off a table, that median is concealing a lot of variation that matters to you. If you look at your parents and grandparents and their siblings, what ages did they live to? How was their health at 50? How's your own health? If yo...
by teen persuasion
Sun Nov 19, 2017 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: 529 or not 529?
Replies: 21
Views: 1954

Re: 529 or not 529?

I would just pay cash for her school. Some schools allow you to pay monthly for a small nominal fee if that works better for your finances. What does it mean? If I don't use a 529 to pay for her tuition, I will have to pay some additional fees?? I believe mrsytf is referring to cash flow. Colleges ...
by teen persuasion
Sun Nov 19, 2017 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Taking a 72(t) to avoid self-employment taxes?
Replies: 10
Views: 701

Re: Taking a 72(t) to avoid self-employment taxes?

I keep trying to quantify the lost SS. It really depends on your details: how much you've each earned, which bend points you've passed, when you plan to claim SS, if one was a substantially larger earner than the other so that spousal benefits play into the calculations, etc. The only way I got a br...
by teen persuasion
Sat Nov 18, 2017 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: My fafsa has made me an "independent" because I was born before Jan. 1 1995. But im not independent...
Replies: 19
Views: 1530

Re: My fafsa has made me an "independent" because I was born before Jan. 1 1995. But im not independent...

And what tax form did you file: 1040EZ, 1040A, or full 1040? I believe it was just the IRS form whatever that was called This is important to determine whether you need to report your assets, or not. If it was the 1040EZ, or the 1040A, that would mean you do not need to report assets. From the bits...
by teen persuasion
Sat Nov 18, 2017 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: My fafsa has made me an "independent" because I was born before Jan. 1 1995. But im not independent...
Replies: 19
Views: 1530

Re: My fafsa has made me an "independent" because I was born before Jan. 1 1995. But im not independent...

That would be the percentage of your assets that are included in your EFC.

Twenty % of $5k would only be $1k.

You haven't said what your 2016 income was, just that you haven't been employed this year. That will also be part of the EFC.
by teen persuasion
Sat Nov 18, 2017 11:50 am
Forum: Personal Finance (Not Investing)
Topic: My fafsa has made me an "independent" because I was born before Jan. 1 1995. But im not independent...
Replies: 19
Views: 1530

Re: My fafsa has made me an "independent" because I was born before Jan. 1 1995. But im not independent...

Why are you troubled that you can't put down your mother's income? By not listing that income, your expected family contribution will be much lower, increasing your aid. Is there substantial money on your joint accounts? Why not just list the balance and move along? Well I just have a decent amount...
by teen persuasion
Sat Nov 18, 2017 10:56 am
Forum: Personal Finance (Not Investing)
Topic: My fafsa has made me an "independent" because I was born before Jan. 1 1995. But im not independent...
Replies: 19
Views: 1530

Re: My fafsa has made me an "independent" because I was born before Jan. 1 1995. But im not independent...

Why are you troubled that you can't put down your mother's income? By not listing that income, your expected family contribution will be much lower, increasing your aid. Is there substantial money on your joint accounts? Why not just list the balance and move along? Well I just have a decent amount...
by teen persuasion
Sat Nov 18, 2017 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Paid off my house. Now how to handle insurance and tax payments?
Replies: 21
Views: 2106

Re: Paid off my house. Now how to handle insurance and tax payments?

If you itemize your deductions, determine how much above the standard deduction you will be without mortgage interest. If your only a few thousand or less above the standard deduction, consider alternating years. I paid my 2016 property taxes in January 2017 (no interest or penalty due if I pay by ...
by teen persuasion
Sat Nov 18, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: My fafsa has made me an "independent" because I was born before Jan. 1 1995. But im not independent...
Replies: 19
Views: 1530

Re: My fafsfa has made me an "independent" because I was born before Jan. 1 1995. But im not independent...

What 2016 tax return did you file? If you could file 1040A or EZ, or were not required to file at all, you could be eligible for the Simplified EFC formulas, which means you do not report assets at all. Google "EFC formulas 2018-19" to find the pdf containing the EFC calculations. Read the instructi...
by teen persuasion
Fri Nov 17, 2017 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: How to navigate through college expenses and possible early retirement
Replies: 7
Views: 608

Re: How to navigate through college expenses and possible early retirement

And this brings us to the Rule of 55 - if you retire or otherwise leave employment in the year you turn 55, you can withdraw from that employer's 401k without penalty. Only if the employer 401(k) plan allows it. Neither my 401(k)s nor my spouse's 401(k)s have ever allowed it even though the IRS all...
by teen persuasion
Fri Nov 17, 2017 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: How to navigate through college expenses and possible early retirement
Replies: 7
Views: 608

Re: How to navigate through college expenses and possible early retirement

Let's look at the numbers. You're in the late 40s and will work another 6 years and that means by the time you retire, you would be mid 50s , only 5 years before you can withdraw retirement money without penalty, not 18-20 years. TravelforFun And this brings us to the Rule of 55 - if you retire or ...
by teen persuasion
Wed Nov 15, 2017 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Value of 401k Employer Match vs. Salary Equivalent
Replies: 34
Views: 3329

Re: Value of 401k Employer Match vs. Salary Equivalent

Wow, interesting question! It really does depend on YOUR circumstances. Out of curiosity, I ran thru how an additional $20k taxable income would affect our situation. Due to lost tax credits, increased income tax (both federal and state), increased FICA, and increased EFC for our kids in college (lo...
by teen persuasion
Sun Nov 12, 2017 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA EFC number shock! [Expected Family Contribution]
Replies: 39
Views: 4224

Re: FAFSA EFC number shock!

Thanks for the feedback. Just trying to get my head around the idea of paying 1/3 of AGI annually for 12-15 years. Hopefully, merit aid/private scholarships will help out. State school at 29k/year all in at the state starting to look really good. Alternatively, you could send your children to colle...
by teen persuasion
Sun Nov 12, 2017 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Questions about free tax filing
Replies: 9
Views: 861

Re: Questions about free tax filing

I helped my child file taxes the last 2 yrs using the free version from TurboTax. https://turbotax.intuit.com/taxfreedom/ I think the fed gov requires the online tax filing services to have a free version for low income people, but some are disguised and looks free but are actually no free. My chil...
by teen persuasion
Sun Nov 12, 2017 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA EFC number shock! [Expected Family Contribution]
Replies: 39
Views: 4224

Re: FAFSA EFC number shock!

Hello again, Again, thanks so much to all for taking the time to offer feedback and advise. Some proposed some reasons for the 39k/year EFC number that included some assumptions, so allow me to share some more financial details to eliminate some educated guesswork. Dad is 50 years old with w-2 gros...
by teen persuasion
Sat Nov 11, 2017 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: A penny saved is NOT a penny earned ..
Replies: 16
Views: 2324

Re: A penny saved is NOT a penny earned ..

Different ways to look at it. If I save a buck at the store by buying a less expensive item, I have a buck more. If I earn a buck more, I have 70 cents more than before. That is to say, pretax dollars are not the same as after tax dollars. Does it not also matter where I save that buck? If we save ...
by teen persuasion
Sat Nov 11, 2017 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA EFC number shock! [Expected Family Contribution]
Replies: 39
Views: 4224

Re: FAFSA EFC number shock!

EFC Formulas: https://ifap.ed.gov/efcformulaguide/attachments/071017EFCFormulaGuide1819.pdf Using a little reverse engineering, you probably have ~$325k in taxable savings, or put $36k in traditional 401k accounts in addition to the $122k AGI mentioned, or some combination of both, to get to that $3...
by teen persuasion
Tue Nov 07, 2017 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Disposable income... how?
Replies: 106
Views: 9844

Re: Disposable income... how?

Wow, so much good stuff here, I can't comment on everything but I'll answer a few common questions. Q: Why do I feel 33% is not enough. A1: I am 32 and only have 1x my income stocked away and it is not all for retirement. My retirement portfolio is only about 75k, so I am behind. A2: As long as my ...
by teen persuasion
Mon Oct 30, 2017 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: college savings: 529 or Roth IRA owned by child?
Replies: 6
Views: 745

Re: college savings: 529 or Roth IRA owned by child?

Have you looked at how each source of college $ would affect the FAFSA EFC calculation? Roth withdrawals from the child's IRA would be included in the child's nontaxable income. After subtracting an income protection amount ($6k-ish), 50% of the child's income is added to the parents' EFC calculatio...
by teen persuasion
Mon Oct 30, 2017 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Is inherited IRA an asset on the FAFSA?
Replies: 4
Views: 623

Re: Is inherited IRA an asset on the FAFSA?

The FAFSA asks 2 different questions about income. It asks the parents' AGI, and it asks how much each parent earned. The earned income question is used to calculate FICA paid (as that is subtracted from available income), and as a proxy for AGI if parents don't file a tax return. The AGI question i...
by teen persuasion
Fri Oct 27, 2017 10:26 am
Forum: Investing - Help with Personal Investments
Topic: Question regarding 401(k) catch-up contributions and employer match
Replies: 29
Views: 1540

Re: Question regarding 401(k) catch-up contributions and employer match

I participate in my employer’s 401(k) plan, as well as traditional and Roth IRAs. Let’s assume I wish to maximize contributions to all three , and all are at Fidelity. Now that your 401k issue is resolved. I just wanted to revisit this statement. To make sure you know that there is only one IRA con...
by teen persuasion
Thu Oct 26, 2017 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on what to do, vanguard or America Funds, roth or traditional
Replies: 9
Views: 680

Re: Advice on what to do, vanguard or America Funds, roth or traditional

You can have a traditional IRA AND a Roth IRA. Your spouse can have a traditional IRA and a Roth IRA, too. You can even have multiples of each type, if you like. My DH moved his 401k from a former employer to a traditional IRA at Vanguard. I also opened Roth IRAs at Vanguard for each of us. The 401k...
by teen persuasion
Tue Oct 24, 2017 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Deferred Accounts with Lower Income
Replies: 8
Views: 790

Re: Tax Deferred Accounts with Lower Income

If your investment income is not too high (doesn't make you ineligible for EITC), look at how much increased contributions to your 457b influence your tax refunds. Not only would you be reducing your tax owed, but you could increase the refundable credit. It looks like the phaseout rate on EITC for ...
by teen persuasion
Tue Oct 24, 2017 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Very social, impactful, fun job ideas?
Replies: 8
Views: 1246

Re: Very social, impactful, fun job ideas?

Can't get much more social than my low paid, part time job in the village library! Few employees mean we wear lots of different hats. I've done Preschool Storytime, Teen Drama Club, Summer Reading Program. I manage the library's social media and website. I answer reference questions and help patrons...
by teen persuasion
Tue Oct 24, 2017 3:56 pm
Forum: Investing - Theory, News & General
Topic: Regular Taxable Accounts vs Tax-Advantaged
Replies: 35
Views: 4267

Re: Regular Taxable Accounts vs Tax-Advantaged

Having $ in tax advantaged accounts shields them from visibility in several situations that are useful. We are eligible for EITC, and contributions to 401k accounts preserve and even increase the credits. If we have investment income over a relatively low threshold ($3400?) we would be completely in...
by teen persuasion
Tue Oct 24, 2017 6:40 am
Forum: Personal Finance (Not Investing)
Topic: Can a 529 be used for myself? Advantages?
Replies: 4
Views: 565

Re: Can a 529 be used for myself? Advantages?

Hi! I am a teacher considering going back to school for my administrator's license. It is another Master's degree and will cost me about $15K-$20K out of pocket. I am able to afford the degree, though of course it will affect other parts of my financial plan, but my question is: would there be an a...
by teen persuasion
Mon Oct 23, 2017 6:51 am
Forum: Personal Finance (Not Investing)
Topic: new 401(k) limits announced
Replies: 88
Views: 13085

Re: new 401(k) limits announced

Following a large inheritance in late 2012, my friend paid off his mortgage and was able to defer 50% of his pay into a 457 plan in 2013, up to the limit which was ~$17,000. However, he turned 50 midyear and became eligible for the extra catch-up deferral. His payroll department stopped deferring h...
by teen persuasion
Sun Oct 22, 2017 10:48 am
Forum: Personal Finance (Not Investing)
Topic: new 401(k) limits announced
Replies: 88
Views: 13085

Re: new 401(k) limits announced

Why couldn't they just make it $18,600 instead? ... Hitting the exact limit just got messier and more of a hassle? I assume it will require making one contribution different from the others to get the numbers to line up? Or is there a better way? IRS and easy?!! :oops: I realize this comment is ess...
by teen persuasion
Fri Oct 20, 2017 6:54 am
Forum: Investing - Help with Personal Investments
Topic: Gifting taxable account with large capital gains to college children
Replies: 11
Views: 789

Re: Gifting taxable account with large capital gains to college children

Look into kiddie tax implications for your kids, and financial aid implications. My son told me about his girlfriend having an unexpectedly large tax bill. Trying to figure out why, it looks like it was the kiddie tax. Her parents are divorced, and each is remarried. Her dad gifted her appreciated s...
by teen persuasion
Thu Oct 19, 2017 7:23 am
Forum: Investing - Help with Personal Investments
Topic: Shift from Roth to 401k?
Replies: 5
Views: 635

Re: Shift from Roth to 401k?

Where are you in the 15% bracket? IOW, would shifting to traditional 401k contributions lower your AGI enough to get you in range for the Retirement Saver's credit, or EITC? What about state tax avoided, and possibly state tax credits (my state matches EITC at 30%, for another boost)? I've learned t...
by teen persuasion
Mon Oct 16, 2017 9:49 pm
Forum: Investing - Theory, News & General
Topic: Roth as good as you think?
Replies: 29
Views: 3686

Re: Roth as good as you think?

I don't think it's an OR question, I think it's an AND question. For us, traditional 401k AND Roth IRAs. For each, we choose the option that gets us the largest savings. Using traditional 401k contributions doesn't simply save on fed and state taxes, it also nets more refundable fed and partially ma...
by teen persuasion
Mon Oct 16, 2017 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Questions - Please Help
Replies: 24
Views: 1570

Re: Medicare Questions - Please Help

You are very welcome - I just wanted to make sure you didn't accidentally lock yourself into a lower payout.
by teen persuasion
Mon Oct 16, 2017 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Questions - Please Help
Replies: 24
Views: 1570

Re: Medicare Questions - Please Help

From SSA: https://www.ssa.gov/planners/retire/claiming.html Timing of Multiple Benefits (also called “Deemed Filing”) What was the loophole? The law provides incentives to delay claiming retirement benefits: monthly benefits grow larger for each month you delay receiving retirement benefits between...
by teen persuasion
Mon Oct 16, 2017 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Questions - Please Help
Replies: 24
Views: 1570

Re: Medicare Questions - Please Help

From SSA: https://www.ssa.gov/planners/retire/claiming.html Timing of Multiple Benefits (also called “Deemed Filing”) What was the loophole? The law provides incentives to delay claiming retirement benefits: monthly benefits grow larger for each month you delay receiving retirement benefits between ...
by teen persuasion
Mon Oct 16, 2017 6:32 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Questions - Please Help
Replies: 24
Views: 1570

Re: Medicare Questions - Please Help

Thanks for the replies. First priority is seeing if we can use the hold harmless feature, and second priority is picking a plan (it is a little early for that). So here is the situation on hold harmless: I am planning to take my SS at age 70 . We would like to use DW's SS to enable Medicaid Part B ...
by teen persuasion
Tue Oct 10, 2017 7:03 am
Forum: Personal Finance (Not Investing)
Topic: [Boglehead vs Mr Money Mustache philosophies]
Replies: 203
Views: 15757

Re: [Boglehead vs Mr Money Mustache philosophies]

Mustachians have as a basic tenet that you can reach the point of "enough". Quit playing the game, you've won - you are free to do whatever you like now. Being flexible with plans and contingencies can lower the bar to reaching "enough". Bogleheads feel that "enough" is a minimum, but more is better...
by teen persuasion
Tue Oct 03, 2017 7:11 am
Forum: Investing - Help with Personal Investments
Topic: FAFSA question; Fidelity 0.5% pension mgmt fee
Replies: 6
Views: 667

Re: FAFSA question; Fidelity 0.5% pension mgmt fee

If the student is entering college in fall 2019, they will file the FAFSA in October 2018 using 2017 tax return and asset values as of the date of filing (Oct 2018). Assets already inside retirement accounts are NOT included in available asset calculations. However, contributions to retirement accou...