Search found 195 matches

by teen persuasion
Mon Mar 27, 2017 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating cost of retirement
Replies: 15
Views: 1660

Re: Calculating cost of retirement

Assume for the sake of this question that I would try to live off RMDs from an inherited ira and non-retirement savings for the next 25 years. (This last assumption is not yet possible, but I want to first save enough for retirement -- but not too much -- and then save enough to get me to retiremen...
by teen persuasion
Mon Mar 27, 2017 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: How much to invest in 401k vs taxable account.
Replies: 33
Views: 1473

Re: How much to invest in 401k vs taxable account.

Tax guesstimate: HOH, 1 child $55k income $4981 tax - $1k CTC = $3981 tax owed HOH, 1 child $37k AGI (after contributing $18k to t401k) $2281 tax - $1k CTC - $363 EITC - $200 RSC = $718 tax owed Note, you have to get your line 7 wages AND AGI below $39250 as HOH with 1 child to be eligible for any ...
by teen persuasion
Mon Mar 27, 2017 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: How much to invest in 401k vs taxable account.
Replies: 33
Views: 1473

Re: How much to invest in 401k vs taxable account.

Tax guesstimate: HOH, 1 child $55k income $4981 tax - $1k CTC = $3981 tax owed HOH, 1 child $37k AGI (after contributing $18k to t401k) $2281 tax - $1k CTC - $363 EITC - $200 RSC = $718 tax owed Note, you have to get your line 7 wages AND AGI below $39250 as HOH with 1 child to be eligible for any E...
by teen persuasion
Tue Mar 21, 2017 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Recommended emergency fund for middle class households: $13,800
Replies: 64
Views: 6410

Re: Recommended emergency fund for middle class households: $13,800

Reading the linked article, they are talking about the buffer you need to weather a perfect storm of trouble. A co-worker is dealing with this now - a windstorm dropped a tree on her kitchen. She was injured, though not severely (staples to a cut on her head, concussion). Structural damage to their ...
by teen persuasion
Mon Mar 20, 2017 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: New Boglehead, Kids's College, & Emergency Fund Transfer
Replies: 25
Views: 1079

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

Of course, if they instead increase the 403b contributions by $2001 (to get just below the $40k AGI threshold for 20% Retirement Saver's credit), their refund jumps to $3435 federal. That is, no Roth IRA for spouse but $13k 403b contribution. State EITC increases to $642.
by teen persuasion
Mon Mar 20, 2017 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: New Boglehead, Kids's College, & Emergency Fund Transfer
Replies: 25
Views: 1079

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

It seems the big argument here is whether to contribute to a traditional IRA or Roth IRA. This is where doing a trial tax return will help make the decision. So I did a couple of scenarios. I assume $55K in income, but $2,000 for health insurance and no other income. MFJ, 2 kids under 16. AGI is $5...
by teen persuasion
Mon Mar 20, 2017 7:30 am
Forum: Investing - Help with Personal Investments
Topic: New Boglehead, Kids's College, & Emergency Fund Transfer
Replies: 25
Views: 1079

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

OP is on the edge of eligibility for EITC (not sure if "kids" plural is 2 or 3+), and NY matches fed EITC at 30%. Contributions to the 403b could increase their refundable credits and reduce their tax, while tIRA contributions only reduce taxes owed. The EITC phaseout rate is ~21%. If they...
by teen persuasion
Sat Mar 18, 2017 7:49 am
Forum: Investing - Help with Personal Investments
Topic: HSA vs 401k vs other - low tax bracket
Replies: 12
Views: 798

Re: HSA vs 401k vs other - low tax bracket

Need more details. Will he be eligible for the Retirement Saver's credit? 401k or IRA before HSA, at least to $2k, or $2k each if MFJ. Eligible for EITC, or could be if lowered AGI? HSA thru payroll deductions and/or t401k, not tIRA or Roth. Filing FAFSA for dependents? HSA thru payroll deductions,...
by teen persuasion
Thu Mar 16, 2017 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: HSA vs 401k vs other - low tax bracket
Replies: 12
Views: 798

Re: HSA vs 401k vs other - low tax bracket

Need more details. Will he be eligible for the Retirement Saver's credit? 401k or IRA before HSA, at least to $2k, or $2k each if MFJ. Eligible for EITC, or could be if lowered AGI? HSA thru payroll deductions and/or t401k, not tIRA or Roth. Filing FAFSA for dependents? HSA thru payroll deductions, ...
by teen persuasion
Wed Mar 15, 2017 10:50 am
Forum: Investing - Help with Personal Investments
Topic: IRA and college savings advice needed
Replies: 38
Views: 1521

Re: IRA and college savings advice needed

The best way to see how your taxes are computed, and how deductions and exemptions and credits affect things, is to go thru past year's tax returns, line by line with an IRS instruction booklet at hand. Using a filled in return lets you see what belongs where, and how it got there. How have you file...
by teen persuasion
Wed Mar 15, 2017 10:33 am
Forum: Investing - Help with Personal Investments
Topic: IRA and college savings advice needed
Replies: 38
Views: 1521

Re: IRA and college savings advice needed

I would guess that the whole exemption withholding system was set up when our tax system was relatively simpler, without so many new credits and additional taxes and phaseouts. It was probably also designed in an era when families typically had one breadwinner. Claiming MFJ on your W4 is just for yo...
by teen persuasion
Tue Mar 14, 2017 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: IRA and college savings advice needed
Replies: 38
Views: 1521

Re: IRA and college savings advice needed

Adding an exemption to your withholding is in effect saying that you plan to claim an extra exemption when you file your taxes next year (for your new child). That will lower your taxable income, so you need LESS withheld. Having extra withheld is the opposite of what you want now. If you are just a...
by teen persuasion
Tue Mar 14, 2017 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: IRA and college savings advice needed
Replies: 38
Views: 1521

Re: IRA and college savings advice needed

Now, about how it will get you more cash. Change your spouse's contributions to pre-tax. His paychecks should automatically have less tax withheld, giving him a larger take home check on the same contribution. Next, you are adding a dependent this year. You can change your or your spouse's withholdi...
by teen persuasion
Tue Mar 14, 2017 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: IRA and college savings advice needed
Replies: 38
Views: 1521

Re: IRA and college savings advice needed

Marginal tax rate means essentially how much tax you'd owe on your next dollar earned. If you earn one extra dollar this year, how much federal tax on it? Does it push you out of range on some tax credit, and by how much (the child tax credit here)? State tax? The corollary here is that putting a do...
by teen persuasion
Tue Mar 14, 2017 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Book suggestions for reducing taxable income
Replies: 16
Views: 1453

Re: Book suggestions for reducing taxable income

1040 instruction booklet Honestly, I learned the most by doing my taxes by hand, stepping thru the 1040 line by line. Looking up our tax credit amounts based on income, and tax amounts based on income, and comparing an amount +/- $1k to see the changes. Then walking back to how income is figured, wh...
by teen persuasion
Tue Mar 14, 2017 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: IRA and college savings advice needed
Replies: 38
Views: 1521

Re: IRA and college savings advice needed

OP, I think you need to look at things from a different perspective. Am I correct that you are starting with your take home $ figure, and then divvying it up between your debts/bills/savings buckets? Start instead with your gross income figures, and look at annual expenses, including your various ta...
by teen persuasion
Wed Mar 01, 2017 7:49 am
Forum: Personal Finance (Not Investing)
Topic: Max Exemptions for Payroll Deductions (W-4, VA-4)
Replies: 4
Views: 466

Re: Max Exemptions for Payroll Deductions (W-4, VA-4)

We claim 14 each, and have for years with no problems. I calculated years ago that DH would need to claim ~25 for state to get state withholdings to zero (5 kids at the time, lots of refundable credits), but NY objects to 15+, so 14 it was. Look into VA tax rules for any caps, very state dependent.
by teen persuasion
Thu Feb 23, 2017 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Tax filing for a recent college grad
Replies: 15
Views: 909

Re: Tax filing for a recent college grad

What's been going on upto this point? Did she file in previous years for her pizzeria income? As soon as my kids had jobs, I walked them thru filing their taxes - DS2 was 15. As far as the college credits - did she or her mom claim them in past years? You are limited to 4 years on the AOTC, despite ...
by teen persuasion
Sat Feb 18, 2017 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: 1098-T & 529 question
Replies: 17
Views: 1372

Re: 1098-T & 529 question

1098-T forms are almost invariably incorrect. Keep your own records of amounts paid and sources. The instructions I have seen from the IRS seem to encourage treating college $$ as fungible. My kids' colleges generally assign scholarship money to tuition and fees first, since scholarships used for th...
by teen persuasion
Thu Feb 16, 2017 7:23 pm
Forum: Investing - Help with Personal Investments
Topic: Very basic question about fees
Replies: 10
Views: 907

Re: Very basic question about fees

By state law, a PA 529 IP account does not affect eligibility for financial aid provided by Pennsylvania, such as state grants. Savings held in other states’ 529 plans do not receive this protection. Interesting, I haven't heard of this before. If I'm reading it right, that is only for the state gr...
by teen persuasion
Thu Feb 16, 2017 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Very basic question about fees
Replies: 10
Views: 907

Re: Very basic question about fees

I'm a beginner at investing, and I had a question about fees associated with funds. I'm comparing the fees between different state 529 plans, some with an expense ratio of around .33%, others around .17%. How do I calculate the different in what I'd actually be paying? Is it as simple as [yearly co...
by teen persuasion
Wed Feb 15, 2017 7:41 am
Forum: Investing - Help with Personal Investments
Topic: Adjusting 401k contributions for bonuses and raises
Replies: 17
Views: 704

Re: Adjusting 401k contributions for bonuses and raises

I would divide 18k / 26, figure out the percentage based on salary, and be done with it. Why make it more complicated? Did you really mind getting those bigger paychecks at the end of the year? Nope! Not at all. I just wasn't sure if there was something flawed in my "strategy" that's all....
by teen persuasion
Wed Feb 15, 2017 7:27 am
Forum: Investing - Help with Personal Investments
Topic: Converting a new Roth to a Traditional IRA
Replies: 20
Views: 929

Re: Converting a new Roth to a Traditional IRA

The Saver's credit is only on the first $2k of contributions, so max $200 at the 10% level.
by teen persuasion
Tue Feb 14, 2017 12:58 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA vs 401k
Replies: 27
Views: 1358

Re: Roth IRA vs 401k

I understand a lot of factors contribute to this debate. The general consensus is that if you are in a higher tax bracket and get a company match, go with 401k.If your in a low tax bracket with no match, do the Roth first. This makes sense to me, however I feel that there is one very important fact...
by teen persuasion
Sun Feb 12, 2017 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: Child on the Way - What to do for College Financing?
Replies: 116
Views: 6432

Re: Child on the Way - What to do for College Financing?

Our older 4 kids have all had academic scholarships offered to them before we'd filed the FAFSA for each of them - it may work out differently now with the early FAFSA date, but there are non-need based scholarships out there at least at the 4 different schools they've attended (2 private, 2 public)...
by teen persuasion
Sun Feb 12, 2017 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Child on the Way - What to do for College Financing?
Replies: 116
Views: 6432

Re: Child on the Way - What to do for College Financing?

We're parents of a two-year-old and are not saving for college. I've been thinking of strategies to lower college costs for when the time comes. I've just been "brainstorming" ideas so there may be things I haven't considered. In any case, this is the general idea I had: 1) Lower our inco...
by teen persuasion
Sun Feb 12, 2017 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: To those who avoid FICA with HSA payroll contributions
Replies: 32
Views: 2943

Re: To those who avoid FICA with HSA payroll contributions

I have considered it. DH is already past the first bend point, so it's a much smaller gain in SS than if he were below the first bend point. Other considerations help shrink the importance of any additional SS: lowered AGI increases our EITC (21% phaseout rate) and state EITC (30% of fed EITC, or eq...
by teen persuasion
Wed Feb 08, 2017 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: What kind of college aid does UTMA affect?
Replies: 10
Views: 802

Re: What kind of college aid does UTMA affect?

I'm debating setting up a UTMA for my 8 year old, with idea he'll get it age 30 or later. One worry that when he goes to college in 10 years for every $1000 of his assets, $200 will count against his financial aid (compared to $35 if kept in our account for him). But exactly what does this mean &qu...
by teen persuasion
Wed Feb 08, 2017 8:33 am
Forum: Investing - Help with Personal Investments
Topic: What kind of college aid does UTMA affect?
Replies: 10
Views: 802

Re: What kind of college aid does UTMA affect?

I'm debating setting up a UTMA for my 8 year old, with idea he'll get it age 30 or later. One worry that when he goes to college in 10 years for every $1000 of his assets, $200 will count against his financial aid (compared to $35 if kept in our account for him). But exactly what does this mean &qu...
by teen persuasion
Tue Feb 07, 2017 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Any downside to Grandparent 529
Replies: 20
Views: 2104

Re: Any downside to Grandparent 529

We all live in NY. I Andrew has you covered! https://www.nytimes.com/2017/01/03/nyregion/free-tuition-new-york-colleges-plan.html?_r=0 As GG parents in NY we have opened 529 plans for our GG children also in NY. I don't see the parents or either set of grandparents doing anything for these children...
by teen persuasion
Sun Feb 05, 2017 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Social Security: Wife's benefit is 50% of husband's FRA?
Replies: 14
Views: 1756

Re: Social Security: Wife's benefit is 50% of husband's FRA?

As mentioned, in order for a spouse to collect any spousal benefits at all, the husband/wife must have started to collect benefits. Also, a spouse can be collecting just his/her own earned benefits, and then start receiving spousal benefits when the husband/wife starts to collect. Thank you. Most h...
by teen persuasion
Sat Feb 04, 2017 8:39 am
Forum: Investing - Help with Personal Investments
Topic: Please Help with 25 Year Old Daughter-In-Law.
Replies: 36
Views: 5745

Re: Please Help with 25 Year Old Daughter-In-Law.

Contributions to a traditional 401k can increase EITC, by reducing AGI, but contributions to an IRA will not, so for her a 401k is better to use. Can you explain how 401K Contributions will increase EITC by reducing AGI and Traditional IRA contributions will not? As *3!4!/5! stated, your EITC calcu...
by teen persuasion
Fri Feb 03, 2017 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Employer denying HSA to eligible employee
Replies: 35
Views: 3397

Re: Employer denying HSA to eligible employee

To answer the questions: jeremyi, partner is not highly compensated, he actually makes less than I do. They gave no justification, just that it wouldn't be allowed anymore. Nate79, it's only one family health insurance plan, which (I believe) is the problem. My employer allows health insurance bene...
by teen persuasion
Thu Feb 02, 2017 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: No Income - Convert some Traditional IRA money to Roth IRA?
Replies: 21
Views: 2107

Re: No Income - Convert some Traditional IRA money to Roth IRA?

Great thread! My wife and I pulled the trigger on extreme early retirement last winter in our early 40s. Similar scenario to Polar_Ice as we are just living off taxable money market/short-term bonds. Since we will have no W-2/1099 income and unable to make a 2017 Roth contribution this would seem t...
by teen persuasion
Thu Feb 02, 2017 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Lower my AGI to qualify for EITC?
Replies: 14
Views: 1341

Re: Lower my AGI to qualify for EITC?

Do you have taxable investment income >$3400? That will disqualify you from the EITC. Interest, dividends, capital gains are included. What about your state taxes? My state, NY, matches EITC at 30% (and the CTC at 33%, for children over 4 I believe). So we definitely save as much as we can to DH's 4...
by teen persuasion
Thu Feb 02, 2017 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401K versus Standard 401K
Replies: 10
Views: 1040

Re: Roth 401K versus Standard 401K

What would you do? DH has a Roth 401k option, and we've chosen to stay with the traditional 401k option. We're in a low tax bracket and have kids, which means a lower AGI makes us eligible for larger EITC (a refundable credit with a 21% phaseout rate). It is compounded since our state matches EITC ...
by teen persuasion
Wed Feb 01, 2017 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: Remove roth contributions to max 401k (EITC question)
Replies: 11
Views: 828

Re: Remove roth contributions to max 401k (EITC question)

Question: are you eligible for the Retirement savers credit to reduce fed tax? I seem to remember that retirement account withdrawals disqualify you from the savers credit for a few years. I am not sure exactly what is being suggested, so this may not be relevant. But some withdrawals from a 401(k)...
by teen persuasion
Tue Jan 31, 2017 11:56 pm
Forum: Investing - Help with Personal Investments
Topic: Remove roth contributions to max 401k (EITC question)
Replies: 11
Views: 828

Re: Remove roth contributions to max 401k (EITC question)

But withdrawing Roth money contributed in previous years to facilitate this...? Gut feel says that the loss of Roth benefits would be more than the benefit of making traditional contributions. Gut feel, however, would happily recuse itself in favor of a spreadsheet comparison - have you tried doing...
by teen persuasion
Tue Jan 31, 2017 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Remove roth contributions to max 401k (EITC question)
Replies: 11
Views: 828

Re: Remove roth contributions to max 401k (EITC question)

We definitely give preference to funding DH's 401k over traditional IRAs, since IRAs won't increase EITC. But I don't know about withdrawing Roth IRA contributions to allow greater 401k contributions. Have you figured out how much larger your refunds will be? Since you mention 15 or 16%, that sounds...
by teen persuasion
Mon Jan 30, 2017 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: Please Help with 25 Year Old Daughter-In-Law.
Replies: 36
Views: 5745

Re: Please Help with 25 Year Old Daughter-In-Law.

I have a 25 Year Old Daughter-In-Law with 2 Great Kids, 3 & 4 & a Bum for a Son currently doing a 10 Year Stint in the Federal Pen. She is very nice & a good Mom. We have a very good relationship & the kids just love/ crave me. I want to help her become financially more independent....
by teen persuasion
Mon Jan 30, 2017 8:43 am
Forum: Personal Finance (Not Investing)
Topic: How reliable are college financial aid estimators?
Replies: 3
Views: 393

Re: How reliable are college financial aid estimators?

Interesting, I have not used those before. I used your link to Cornell, and entered data for my son, who is in his first year at another NY school. They ask questions which do not appear on the FAFSA at all (home value, mortgage balance, year bought, other siblings and ages, tax credits like EITC an...
by teen persuasion
Fri Jan 27, 2017 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: How Do You Pay Your Monthly Bills?
Replies: 42
Views: 3709

Re: How Do You Pay Your Monthly Bills?

For over forty years I have paid all my bills by personal checks and mailing them out through the USPS. In all that time, the Post Office has lost only three checks: one was a mortgage payment and the other two were credit card payments. Since I audit my checking account statement carefully each mo...
by teen persuasion
Wed Jan 25, 2017 8:40 am
Forum: Personal Consumer Issues
Topic: Anyone have experience with plumbing issues or any Plumbers here?
Replies: 30
Views: 2358

Re: Anyone have experience with plumbing issues or any Plumbers here?

http://www.familyhandyman.com/plumbing/how-to-use-cpvc-plastic-plumbing-pipe/view-all Copper is common in my area, and my DH learned how to solder copper pipes. Cpvc sounds much easier to DIY, similar to the pvc waste pipes he's done. I'd attempt doing it myself. Is the quote just plumbing, or is i...
by teen persuasion
Tue Jan 17, 2017 1:44 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 132
Views: 7913

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

I think something like 45% of American households have no federal income tax obligation. A Roth makes sense for a lot of people. No. I already debunked that earlier. What did you debunk? Both of the statements I made are accurate. Here's an example of a household with zero federal income tax obliga...
by teen persuasion
Tue Jan 17, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: FAFSA for High Net Worth Parents?
Replies: 71
Views: 6648

Re: FAFSA for High Net Worth Parents?

I don't know. It was a while ago. We are not high net worth, but it was plainly obvious that we could afford to put two kids through school and it seemed pointless to apply. But we were bullied and bullied and bullied , by guidance counselors, by our kids themselves, by propaganda from all sides (&...
by teen persuasion
Sun Jan 15, 2017 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Help with taxes
Replies: 27
Views: 2023

Re: Help with taxes

Looks like the limit was increased to $131k MFJ, phased out between $111k and $131.

What are you estimating your MAGI to be, after adding a traditional IRA? Given your numbers above, you could be in the partial range.
by teen persuasion
Sat Jan 14, 2017 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Please help build my case to increase 401k contribution limits
Replies: 15
Views: 1521

Re: Please help build my case to increase 401k contribution limits

An HCE earning the minimum $120K will already hit the $18K deferral limit at 15% and any higher earning HCEs will have an even lower contribution percentage. So, the HCE 18% limit has no effect what so ever. Following this line of thought, how many employees are under the $72k income required to ma...
by teen persuasion
Sat Jan 14, 2017 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Help with taxes
Replies: 27
Views: 2023

Re: Help with taxes

It looks like you chose "Married" on your W4s, when you each actually wanted "Married, but withhold at higher Single rate". "Married" is for a single earner household.
by teen persuasion
Fri Jan 13, 2017 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA for High Net Worth Parents?
Replies: 71
Views: 6648

Re: FAFSA for High Net Worth Parents?

If you are low enough income you can fill out the FAFSA form doesn't look at assets. That's our personal situation so I plan on completing the form. The FAFSA doesn't ask about assets? The fact that DD has enough in her 529 plan to cover four years of college tuition doesn't matter? The way we are ...
by teen persuasion
Fri Jan 13, 2017 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA for High Net Worth Parents?
Replies: 71
Views: 6648

Re: FAFSA for High Net Worth Parents?

I was surprised when one school offered DS4 an extra $500 in aid for filing the FAFSA before a given date. We intended to file anyway, so it was a nice incentive to get it done. That's the first school I've heard that has offered it (of all the different schools our older 4 kids have applied to). FA...

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