Search found 630 matches

by teen persuasion
Sun Nov 18, 2018 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: ACA cliff and MAGI; to ACA or Cobra?
Replies: 7
Views: 511

Re: ACA cliff and MAGI; to ACA or Cobra?

Wait, a PPO plan is HSA eligible?
by teen persuasion
Sun Nov 18, 2018 12:03 pm
Forum: Personal Finance (Not Investing)
Topic: ACA cliff and MAGI; to ACA or Cobra?
Replies: 7
Views: 511

Re: ACA cliff and MAGI; to ACA or Cobra?

If your child is not your tax dependent, and on your insurance up to age 26, your child can fund their own HSA to the family level. It's a weird quirk of the HSA rules - you cannot reimburse for a non-dependent's medical expenses from your HSA,,but they are entitled to their own HSA. As they are par...
by teen persuasion
Thu Nov 15, 2018 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Accuracy of Zillow/Trulia/Redfin Estimates
Replies: 51
Views: 4382

Re: Accuracy of Zillow/Trulia/Redfin Estimates

Zillow has mixed up the sale of the farmland next to our house with our property. So our address has a value of $12k (the sale price of the land next door), is noted as unimproved land, but then also notes our garage size, built ~1880, remodeled 1986, etc. Complete gobbledygook.
by teen persuasion
Tue Nov 13, 2018 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 6507

Re: Roth vs. Traditional 401k

I don't think there is one simple rule of thumb that works for *most* people. You have to figure out where you are in the grid of competing aspects. General concepts: * Diversification is good - strive for some traditional, some Roth, some taxable. Not necessarily at the same time - go for tax advan...
by teen persuasion
Mon Nov 12, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional for low tax bracket
Replies: 10
Views: 987

Re: Roth vs. Traditional for low tax bracket

All, Thank you so much for the replies/insight. After reading your posts and playing around with some calculations, it looks like staying with the Roth contributions while I'm still in the 12% bracket makes the most sense. The explanations about how to apply the marginal vs. effective tax rate logi...
by teen persuasion
Mon Nov 12, 2018 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 6507

Re: Roth vs. Traditional 401k

If you click on the up-arrow following "teen persuasion wrote:" it takes you directly to my post.

Sorry it's not a better formatted link; I'm on my tablet.
by teen persuasion
Mon Nov 12, 2018 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 6507

Re: Roth vs. Traditional 401k

I will add that there is definitely situations where someone is absolutely making the wrong decision by following your rule. If they have low enough income, they can contribute to roth accounts tax free. There is absolutely zero argument you can make against that situation. Jamesla30, << If they ha...
by teen persuasion
Sun Nov 11, 2018 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 6507

Re: Roth vs. Traditional 401k

Here is a simple rule to follow: if you make <50k (individual) or <100k (jointly), direct your contributions to roth 401k (or roth ira). If you make more than that, go traditional. I give you an even simple rule. Do not contribute to Roth 401K. Almost every time someone posted that they contribute ...
by teen persuasion
Sat Nov 10, 2018 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Best type of retirement plan for small nonprofit?
Replies: 10
Views: 567

Re: Best type of retirement plan for small nonprofit?

:idea: Thank you Spirit Rider - you may very well be right about what the treasurer got out of the conversation with the WF guy! That at least is a plausible explanation. The treasurer IS determined to make sure the staff has access to a retirement plan, and she'd like it to take effect for 2019, so...
by teen persuasion
Sat Nov 10, 2018 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Best type of retirement plan for small nonprofit?
Replies: 10
Views: 567

Re: Best type of retirement plan for small nonprofit?

The board are all unpaid volunteers. From what the treasurer said, it's likely to be only 3 staff participating: the director, myself, and another clerk (not the very part-time cleaning lady or maintenance/groundsperson). The decision to offer it is ultimately up to the board, who can't participate ...
by teen persuasion
Sat Nov 10, 2018 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: 401k Help. They are removing index funds.
Replies: 56
Views: 4010

Re: 401k Help. They are removing index funds.

I'm still not so sure about the value of tax deferral. If you buy a regular stock index fund or ETF, the turnover is so small it generates minimal taxes if you don't sell for a very long time, and that's the case for retirement investments. And with bond funds paying (still) low interest, the taxes...
by teen persuasion
Sat Nov 10, 2018 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Best type of retirement plan for small nonprofit?
Replies: 10
Views: 567

Re: Best type of retirement plan for small nonprofit?

The board treasurer dropped in to discuss the retirement plan situation. She has already talked with the Wells Fargo guy. He told her WF could create some kind of retirement account for us, but she didn't have a name for it, and had a very fuzzy handle on details. Something about we could only put 2...
by teen persuasion
Sat Nov 10, 2018 10:15 am
Forum: Personal Finance (Not Investing)
Topic: 401k Help. They are removing index funds.
Replies: 56
Views: 4010

Re: 401k Help. They are removing index funds.

What if the company had no 401K? Would the job be that much less valuable? The main value of a 401K is the match. The tax deferral is a slight advantage. Just contribute into the lowest cost fund enough to get the match and be done with it. I disagree - for us, the tax deferral far outweighs any ma...
by teen persuasion
Sat Nov 10, 2018 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Doing taxes by hand
Replies: 83
Views: 4824

Re: Doing taxes by hand

For folks doing paper. Do you print all forms and instructions at home? Or order them somehow? Last year I was gonna try by hand as well. our library didn’t have the forms. My experience matches what others have already posted. The library and post office no longer have the IRS forms in my neighbor...
by teen persuasion
Sat Nov 10, 2018 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Best type of retirement plan for small nonprofit?
Replies: 10
Views: 567

Re: Best type of retirement plan for small nonprofit?

Thank you, everyone, for the thorough information, and for confirming my instincts. I'm looking at information about SIMPLE IRAS at Fidelity, Schwab and Vanguard. Fidelity says no setup and account fees, but a restricted list of fund families and funds available on those lists. I didn't see Vanguard...
by teen persuasion
Fri Nov 09, 2018 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Best type of retirement plan for small nonprofit?
Replies: 10
Views: 567

Best type of retirement plan for small nonprofit?

My employer is FINALLY thinking about offering a retirement plan for employees. I'd like to help the board of trustees (all community volunteer), by doing the legwork on researching their options. If I can boil it down to an understandable set of options and pros/cons of each, they are much more lik...
by teen persuasion
Fri Nov 09, 2018 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Kitces article - coordinating multiple defined contribution plans
Replies: 8
Views: 913

Re: Kitces article - coordinating multiple defined contribution plans

I found Kitces's description of how the catchup contributions worked to be interesting, and counter to how it worked at DH's previous employer. I'd assumed that after reaching age 50 DH simply had a larger maximum contribution limit. His employer, however, split the contribution option into 2 parts:...
by teen persuasion
Fri Nov 09, 2018 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Convinced wife to invest but wants her own accounts
Replies: 22
Views: 3376

Re: Convinced wife to invest but wants her own accounts

I max 401k, Roth, and our joint HSA and we have about 8 months of savings in our EF, she is contributing to this as she would like 12mo; the rest goes into taxable . My portfolio is 80/20 (50% US, 30% Int, 20% Bonds) all in VG index funds. We are still about 20 years to retirement. Anyway, one day ...
by teen persuasion
Mon Nov 05, 2018 9:55 pm
Forum: Investing - Theory, News & General
Topic: Do people calculate savings rate on gross income?
Replies: 118
Views: 7366

Re: Do people calculate savings rate on gross income?

Since I will need to spend dollars in retirement, not percents, I calculate my savings in dollars, not percents. Percentages can help planning, because a savings rate implies a spending rate. The chart here may be overly simplistic, but it is a good start: http://www.mrmoneymustache.com/2012/01/13/...
by teen persuasion
Wed Oct 31, 2018 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Falling off the ACA subsidy cliff
Replies: 62
Views: 4943

Re: Falling off the ACA subsidy cliff

They can be a member of the household without being a dependent. If they are not dependents, though, you cannot use your HSA funds for their medical expenses. The kids can each open their own HSA, and fund it to the family max, if they are in your family HDHP plan. This is assuming everyone is in an...
by teen persuasion
Wed Oct 31, 2018 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Falling off the ACA subsidy cliff
Replies: 62
Views: 4943

Re: Falling off the ACA subsidy cliff

Them contributing to their own IRA is an option. The downside (other than them feeling it is money taken out of their hand) is that it will be taxed at ordinary income rates when withdrawn, whereas it is at near zero rate now. You need to weigh the benefits. It is to the kids' benefit to contribute...
by teen persuasion
Mon Oct 29, 2018 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Am I doing well financially?
Replies: 162
Views: 12646

Re: Am I doing well financially?

Stepwise refinement - make some smart improvements, see the positive results, make some more smart improvements, rinse and repeat. OP, first increase your and your spouse's 401k contributions to the annual max and max out IRAs for each of you (traditional or Roth or backdoor Roth if necessary) using...
by teen persuasion
Mon Oct 29, 2018 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Claiming the Itemized Deduction on NY Income Tax Return for the 2018 Tax Year
Replies: 7
Views: 770

Re: Claiming the Itemized Deduction on NY Income Tax Return for the 2018 Tax Year

So the credit will remain at 33% of the federal CTC, despite the increase from $1k to $2k, for a new max of $660 per child? No, the NYS child tax credit will remain at 33% of the federal CTC level PRIOR to TCJA. The max will remain at $330 per child. https://www.gettrymarcus.com/2018-2019-budget-bi...
by teen persuasion
Mon Oct 29, 2018 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Claiming the Itemized Deduction on NY Income Tax Return for the 2018 Tax Year
Replies: 7
Views: 770

Re: Claiming the Itemized Deduction on NY Income Tax Return for the 2018 Tax Year

So the credit will remain at 33% of the federal CTC, despite the increase from $1k to $2k, for a new max of $660 per child?
by teen persuasion
Mon Oct 29, 2018 7:36 am
Forum: Personal Finance (Not Investing)
Topic: Claiming the Itemized Deduction on NY Income Tax Return for the 2018 Tax Year
Replies: 7
Views: 770

Re: Claiming the Itemized Deduction on NY Income Tax Return for the 2018 Tax Year

Yes, NYS enacted legislation as part of the budget deal last spring that allows taxpayers to itemize on state even if they took the standard on the federal return. Also, NYS itemized deductions were decoupled from the federal TCJA changes. (E.g., if your local property taxes exceed $10K, you can de...
by teen persuasion
Thu Oct 25, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Net worth compared to Medicare earnings
Replies: 16
Views: 1567

Re: Net worth compared to Medicare earnings

Gross wages does not equal Medicare wages. HSA contributions thru payroll, and contributions for health insurance are not included in Medicare wages. I think DH's Medicare wages were roughly 75% of his gross wages last year.
by teen persuasion
Tue Oct 23, 2018 11:08 am
Forum: Personal Finance (Not Investing)
Topic: 2019 Expenses > 2019 Income – Help us close the gap
Replies: 101
Views: 5189

Re: 2019 Expenses > 2019 Income – Help us close the gap

OP here again. Any thoughts on accessing savings or Roth IRA contributions or getting a loan? Some more information: While our MAGI for next year has to be below $64k for health insurance purposes, I'll be contributing over $30k to retirement accounts in 2019 (to 457b, 403b, and IRAs) plus $11k in ...
by teen persuasion
Fri Oct 19, 2018 8:16 am
Forum: Investing - Help with Personal Investments
Topic: Timing mortgage pay down
Replies: 49
Views: 3969

Re: Timing mortgage pay down

The one topic that seems to be discussed to no end on this forum is whether to pay down your mortgage or invest. This got me thinking whether the optimal answer depends on timing. Traditional amortization schedules heavily weigh interest in the early life of the mortgage. Your monthly payment doesn...
by teen persuasion
Mon Oct 15, 2018 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Is it worth filing FAFSA even if you know you'll get nothing?
Replies: 70
Views: 5091

Re: Is it worth filing FAFSA even if you know you'll get nothing?

I stated that based on anecdotal evidence.I was told by someone that the school their child was applying to required filling out FAFSA. They didn't want to do it because they didn't expect any financial aid, but they had to. And why look at financial information for merit based aid? That seems like...
by teen persuasion
Sun Oct 14, 2018 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 federal income tax
Replies: 9
Views: 1022

Re: 2018 federal income tax (low income)

What I find crazy is that you can save that much on that income! Looks like you are also in eitc area potentially and the savers credit. You will almost for sure be getting money from the government We are blessed with being able to live on less than 50k and be able to afford healthcare. I can't fi...
by teen persuasion
Sat Oct 13, 2018 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Any Work Experience w/AmeriCorps Vista?
Replies: 2
Views: 328

Re: Any Work Experience w/AmeriCorps Vista?

DS2 just began a position with Americorps (but not VISTA). Sounds very similar - stipend, full time for a year, health insurance, educational benefits after serving for a year. He's working in city schools, mentoring students, tutoring, helping school staff wherever needed, etc. He will be receiving...
by teen persuasion
Fri Oct 12, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: What did you buy today
Replies: 111
Views: 8394

Re: What did you buy today

VTSAX for my Roth IRA contribution. Just got the bill for the annual prebuy of our winter heating oil. DH bought a car to replace mine that died over the summer (I've been driving the truck - that won't be great for winter driving). Mostly just random timing, but with an eye to reducing our asset ba...
by teen persuasion
Fri Oct 12, 2018 6:59 am
Forum: Personal Finance (Not Investing)
Topic: College loan advice?
Replies: 39
Views: 2861

Re: College loan advice?

Yep. I will say every school has different policies, some better than others. One school required every freshman to live on campus, even if their parents lived nearby. Some have the same price for all dorms, regardless of era/conditions/size/amenities (no cheaper options). Others have a flexible var...
by teen persuasion
Thu Oct 11, 2018 7:06 am
Forum: Personal Finance (Not Investing)
Topic: College loan advice?
Replies: 39
Views: 2861

Re: College loan advice?

If there is a concern about cashflow, I see no problem having the student take out their own 5500/6500/7500 loans. If the parents then find out that they can pull it together adequately, nothing keeps them from paying the loan off. Do you lose a little in the 1% origination and possibly some intere...
by teen persuasion
Wed Oct 10, 2018 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Between Jobs: Obamacare vs COBRA?
Replies: 30
Views: 1585

Re: Between Jobs: Obamacare vs COBRA?

We learned the hard way :oops: when DH was between jobs that you must be approved before the 15th of the prior month for ACA coverage to be effective on the first of the month. That is, apply and be approved before Nov 15th to begin coverage on Dec 1. Also learned that ACA subsidies and state Medica...
by teen persuasion
Mon Oct 08, 2018 11:13 am
Forum: Investing - Help with Personal Investments
Topic: Are social security (and Medicare) taxes affected by the standard deduction
Replies: 26
Views: 2844

Re: Are social security (and Medicare) taxes affected by the standard deduction

I guess my main questions here are: are social security (and Medicare) taxes affected by the standard deduction and, if they are, do the figures in the above quote refer only to amount of earned income above and beyond the standard deduction amount. No, SS and Medicare taxes are not affected by the...
by teen persuasion
Mon Oct 08, 2018 9:01 am
Forum: Investing - Help with Personal Investments
Topic: 4% rule question
Replies: 22
Views: 3163

Re: 4% rule question

You should go back to wherever you read that and ask them what their reasoning is. +1 Just a wild guess, the 4% amount includes taxes that you pay so they may have been planning for paying 25% in taxes which brings the 4% down to 3% so that could be the 3% they were talking about. But that doesn't ...
by teen persuasion
Fri Oct 05, 2018 7:41 am
Forum: Investing - Help with Personal Investments
Topic: My company does not offer 401k match, should I forego contributing to it?
Replies: 13
Views: 1220

Re: My company does not offer 401k match, should I forego contributing to it?

An exception would be if you could get your income low enough by using tIRA (deductible from taxable income) instead of Roth IRA in order to get the "saver's credit" or maybe the "earned income credit". The saver's credit is a good thing if you can get your taxable income low enough to get it. I do...
by teen persuasion
Tue Oct 02, 2018 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Root of Good's cost of raising a child: $3,300 per year
Replies: 163
Views: 5691

Re: Root of Good's cost of raising a child: $3,300 per year

He shows $0 for healthcare. So is he not paying health insurance? How wonderful. :| I suspect that you and I are paying those healthcare costs. :annoyed (What is annoying here, for me, is that he apparently is doing this by choice, not because of limited resources/medical problems/lack of education...
by teen persuasion
Tue Oct 02, 2018 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Root of Good's cost of raising a child: $3,300 per year
Replies: 163
Views: 5691

Re: Root of Good's cost of raising a child: $3,300 per year

The community you choose can contribute to your expenses, or to your frugality. Some on here have mentioned the cost of pre-k; my school district has universal pre-k at no cost. Some mentioned swimming lessons - also offered for free for kids each summer. Our school district has a strong music progr...
by teen persuasion
Tue Oct 02, 2018 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Root of Good's cost of raising a child: $3,300 per year
Replies: 163
Views: 5691

Re: Root of Good's cost of raising a child: $3,300 per year

His numbers look very reasonable to me. Everyone's categories will be different, and the breakdowns shift at different ages. Young kids are very inexpensive, if you don't use childcare (the childcare expenses themselves, plus the side expenses like formula and disposable diapers and extra transporta...
by teen persuasion
Tue Oct 02, 2018 7:11 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Income Sheltering for FAFSA
Replies: 11
Views: 1303

Re: Roth IRA Income Sheltering for FAFSA

You do realize that FAFSA uses the prior prior year now. The best time for FAFSA planning was a few years ago. That's what I thought. Didn't the new changes mean they're using the income data from when student is in their Junior year in High School. Given the way the school year straddles two tax y...
by teen persuasion
Mon Oct 01, 2018 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Cut back on 401k contribution to build HSA?
Replies: 11
Views: 840

Re: Cut back on 401k contribution to build HSA?

I haven't heard of an HSA match before, just employer contributions. So DH's employer contributed $x whether you contributed or not. The employer contributions do count against the max limit, so you cannot contribute the full amount if the employer also contributes. We shifted to maxing HSA by limit...
by teen persuasion
Fri Sep 28, 2018 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Income Sheltering for FAFSA
Replies: 11
Views: 1303

Re: Roth IRA Income Sheltering for FAFSA

Income sheltering or asset sheltering? Sounds more like you are trying to lower her available assets. If she's eligible to fund a Roth IRA, yes that will move available assets to the "invisible" column. You should have been doing this all along, not just at the last minute, if her "good amount" is m...
by teen persuasion
Fri Sep 28, 2018 6:31 am
Forum: Personal Finance (Not Investing)
Topic: FAFSA - Private mortgage on investment property
Replies: 8
Views: 608

Re: FAFSA - Private mortgage on investment property

https://ifap.ed.gov/efcformulaguide/at ... uide.pdf The above is the FAFSA calculations document. AFAIK, FAFSA doesn't ask about mortgages at all. It asks about investments, that is, net worth of investments. You are told specifically to exclude the value of your primary residence. The value of inv...
by teen persuasion
Tue Sep 25, 2018 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy for Maximizing College Financial Aid and Minimizing Taxes
Replies: 11
Views: 1357

Re: Strategy for Maximizing College Financial Aid and Minimizing Taxes

Keep good records of fully broken down tuition/fees/room/board/book/supplies billed and paid for, and scholarships/grants/other aid. Schools are required to send a 1098T, but they are notoriously questionable, because schools are allowed currently to report amounts billed, not paid. Amounts paid ar...
by teen persuasion
Tue Sep 25, 2018 6:49 am
Forum: Personal Finance (Not Investing)
Topic: Strategy for Maximizing College Financial Aid and Minimizing Taxes
Replies: 11
Views: 1357

Re: Strategy for Maximizing College Financial Aid and Minimizing Taxes

Good question. We don't have any graduate school experience with our kids, yet. I do know that being a graduate student automatically makes the student an independent student, so parent info is no longer required. Look at page 21 for the formulas for independent students to walk thru the calculation...
by teen persuasion
Mon Sep 24, 2018 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Strategy for Maximizing College Financial Aid and Minimizing Taxes
Replies: 11
Views: 1357

Re: Strategy for Maximizing College Financial Aid and Minimizing Taxes

https://ifap.ed.gov/efcformulaguide/attachments/1920EFCFormulaGuide.pdf Above is the FAFSA EFC formula and charts - you can walk thru it and compute your EFC. Start on page 9. You are getting a late start, at least for maximizing FA - the FAFSA you file in October will use your tax return info from...