Search found 583 matches

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: 1155

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: 1155

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: 1155

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...
by teen persuasion
Thu Sep 20, 2018 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 83
Views: 7173

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

Something about the numbers felt off to me, so I found a prepayment calculator and began experimenting. Increasing payments by $1600 monthly would take nearly 12 years to pay it off (141 payments). To do it in 84 payments you would need to increase the payment by nearly $3600 per month. I think he ...
by teen persuasion
Thu Sep 20, 2018 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 83
Views: 7173

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

Something about the numbers felt off to me, so I found a prepayment calculator and began experimenting.

Increasing payments by $1600 monthly would take nearly 12 years to pay it off (141 payments). To do it in 84 payments you would need to increase the payment by nearly $3600 per month.
by teen persuasion
Thu Sep 20, 2018 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 83
Views: 7173

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

Our thought is this: If we reduced our contributions to our 401ks down to 5% to get the employer match, we could get about $1600 extra per month (after taxes) in our takehome pay to throw at the mortgage. That coupled with throwing a large portion of our savings at the mortgage each month would mea...
by teen persuasion
Wed Sep 19, 2018 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: What's the best early retirement strategy for us?
Replies: 39
Views: 3080

Re: What's the best early retirement strategy for us?

My wife and I are planning to retire early...in Jan 2031. I will be 55, she will be 52. I'm currently 43, she is 39. The reason we want to retire early is we are both already fed up of working basically, and more importantly, we got the Airstream bug and want to buy a nice rig and travel full time....
by teen persuasion
Wed Sep 19, 2018 9:08 am
Forum: Personal Finance (Not Investing)
Topic: What's the best early retirement strategy for us?
Replies: 39
Views: 3080

Re: What's the best early retirement strategy for us?

My wife and I are planning to retire early...in Jan 2031. I will be 55, she will be 52. I'm currently 43, she is 39. The reason we want to retire early is we are both already fed up of working basically, and more importantly, we got the Airstream bug and want to buy a nice rig and travel full time....
by teen persuasion
Mon Sep 17, 2018 7:12 am
Forum: Investing - Help with Personal Investments
Topic: Have We Missed the Boat on Roth Conversions?
Replies: 48
Views: 5478

Re: Have We Missed the Boat on Roth Conversions?

Roth IRAs have no RMDs, but Roth 401k accounts DO have RMDs.

Traditional IRAs and traditional 401k accounts both have RMDs.

You can avoid Roth 401k RMDs by rolling the account to a Roth IRA after you leave the employer.
by teen persuasion
Wed Sep 12, 2018 8:59 am
Forum: Investing - Help with Personal Investments
Topic: 401K vs Taxable Brokerage Account
Replies: 17
Views: 1300

Re: 401K vs Taxable Brokerage Account

Lets look at it from this hypothetical perspective- If I invested $18500 in the same mutual fund in both a taxable account and a 401K for 30 years would one be higher than the other assuming no 401k match? The 401k would be higher. The taxable would have tax due every year from the dividend. Plus, ...
by teen persuasion
Mon Sep 10, 2018 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Build 401K and Live off Cash or Invest it in Vanguard? Help!
Replies: 32
Views: 2810

Re: Build 401K and Live off Cash or Invest it in Vanguard? Help!

Obviously a combination. I personally would lump sum it all into a taxable account consistent with your asset allocation. I would also max out the tax-advantaged savings at work. If is necessary to take occasionally out some of the taxable to meet monthly expenses then do so. There's no false equiv...
by teen persuasion
Sat Sep 08, 2018 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Build 401K and Live off Cash or Invest it in Vanguard? Help!
Replies: 32
Views: 2810

Re: Build 401K and Live off Cash or Invest it in Vanguard? Help!

I don't make a lot at work, so to max out the 401K and Roth IRA, I would be locking up 100% of my job's income. This means I would have to withdrawal and live off of about 35K of the $300K in the taxable account per year just to survive. Aren't you already contributing 10% of your $60k income? It's...
by teen persuasion
Sat Sep 08, 2018 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Build 401K and Live off Cash or Invest it in Vanguard? Help!
Replies: 32
Views: 2810

Re: Build 401K and Live off Cash or Invest it in Vanguard? Help!

Taxable vs tax advantaged retirement accounts are just different buckets you can put your investments into. Each has pluses and minuses (ease of access, tax avoidance, etc.). You should view your investments across all types of accounts. You are essentially moving money from one type (taxable) to an...
by teen persuasion
Fri Sep 07, 2018 9:47 am
Forum: Investing - Help with Personal Investments
Topic: Psychology of saving for college vs retirement
Replies: 66
Views: 3944

Re: Psychology of saving for college vs retirement

... Favoring retirement savings instead of college is simply because the tax treatment is far more advantageous than a 529. It is lower risk as well to our retirement and lower risk of a 10% penalty should our children not need the 529. These two risks are lower and non existent if one prioritizes ...
by teen persuasion
Fri Sep 07, 2018 8:43 am
Forum: Investing - Help with Personal Investments
Topic: Scaring the Old Folks
Replies: 71
Views: 8136

Re: Scaring the Old Folks

Playing with the retirement savings calculator at the end of the article I found some ridiculous results. First, it capped our actual savings numbers - apparently it's impossible to save more than 40% of your income. Next, there's some weird discontinuity between retiring at 55 vs 56. At 55 it insis...
by teen persuasion
Wed Sep 05, 2018 7:14 am
Forum: Investing - Help with Personal Investments
Topic: Max 401k and live off savings?
Replies: 9
Views: 1175

Re: Max 401k and live off savings?

What tax bracket would you be in? If you have $13,000 in take home pay in the last four months of the year that would imply that you have had around $26,000 in take home pay so far this year. I would not make 401k contributions if I was in the 10% or below tax bracket unless it was to get an employ...
by teen persuasion
Sun Sep 02, 2018 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: How to Retire in Your 30's with $1 Million in the Bank
Replies: 148
Views: 18168

Re: How to Retire in Your 30's with $1 Million in the Bank

I don’t think many bogle heads fall into this category. This is more of the Mr. Money Mustache crew. What exactly are they investing in that makes them "not Bogleheads"? Which of the 10 Bogleheads principles are they violating? 1 Develop a workable plan 2 Invest early and often 3 Never bear too muc...
by teen persuasion
Sun Aug 19, 2018 9:54 pm
Forum: Personal Finance (Not Investing)
Topic: Your major and investing/finance?
Replies: 99
Views: 5078

Re: Your major and investing/finance?

Computer Science major. Some of the broad lessons that my professors often repeated keep coming to mind: KISS Don't reinvent the wheel Start with the minimum, improve by stepwise refinement AFTER you get that running Plan for 10% downtime (if you have 30 days to complete a project, the network/etc w...
by teen persuasion
Wed Aug 15, 2018 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: College grant ( not loans ) eligibilty
Replies: 21
Views: 964

Re: College grant ( not loans ) eligibilty

I had a full ride (tuition) merit scholarship. The college required my family to file a FAFSA, because they would reduce the grant by any state or federal need based aid I was eligible for. It was a PITA, because TAP and PELL were estimated at billing time, and always estimated high. My scholarship ...
by teen persuasion
Wed Aug 15, 2018 7:27 am
Forum: Investing - Help with Personal Investments
Topic: Max'ing contribution to retirement accts
Replies: 8
Views: 1319

Re: Max'ing contribution to retirement accts

I think I see where you are confused. That $55k limit isn't for ALL retirement accounts, it is specifically for your 401k. IRAs have their own, separate, limit of $5500. Whether you are eligible for a tax deduction (on traditional) or eligible to contribute at all (Roth) will depend on your MAGI and...
by teen persuasion
Wed Aug 08, 2018 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: Check image won't print
Replies: 5
Views: 420

Re: Check image won't print

Agreed - I had just checked my work website earlier today, and 75% of visits were from Chrome.
by teen persuasion
Wed Aug 08, 2018 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Check image won't print
Replies: 5
Views: 420

Re: Check image won't print

Similar to a screenshot, I like Windows Snipping tool - you have better control of what you snip, just drag a box around the image. Copy and paste into Word or whatever to print.
by teen persuasion
Wed Aug 08, 2018 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage question
Replies: 20
Views: 1852

Re: Mortgage question

I wrote out an amortization schedule for our high rate mortgage, to see how much effect we'd have putting infrequent large or frequent small extra principal payments. This made it clear that early payments were more powerful than waiting. DH had received a small ($10k) inheritance, which we stuck i...
by teen persuasion
Wed Aug 08, 2018 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage question
Replies: 20
Views: 1852

Re: Mortgage question

I wrote out an amortization schedule for our high rate mortgage, to see how much effect we'd have putting infrequent large or frequent small extra principal payments. This made it clear that early payments were more powerful than waiting. DH had received a small ($10k) inheritance, which we stuck in...
by teen persuasion
Wed Aug 08, 2018 7:15 am
Forum: Investing - Help with Personal Investments
Topic: Should I pay for a 401k?
Replies: 32
Views: 2288

Re: Should I pay for a 401k?

The answer to your question is yes, I would pay $700 a year to have to access to a 401k I would max out, assuming I was under 50. Avoidance of dividend and capital gains taxes alone would certainly make it worth it. You don't mention your tax bracket, but assuming you project you'll be in a lower b...
by teen persuasion
Fri Aug 03, 2018 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Nervous about not using a personal wealth manager. How do I do this myself?
Replies: 135
Views: 6754

Re: Financial Planner is going to buy funds for me. What should I find out first before letting him?

My new wife and I just spent about $2k on a financial planner to get an investment plan in place. We really liked the advisor we worked with and found the process very helpful. After getting tons of helpful feedback in a previous post of mine on weather to use his firm for wealth management, I am p...
by teen persuasion
Thu Aug 02, 2018 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Roth vs Traditional at Cusp of 32% Bracket
Replies: 15
Views: 1169

Re: Roth vs Traditional at Cusp of 32% Bracket

We are a couple, both professionals, on different health plans, one of us on high deductible the other on a more normal plan. Neither employer offered a “couple” version of health plan so it didn’t make sense to join up. I do not believe it is possible to offer health insurance that cannot not cove...
by teen persuasion
Thu Aug 02, 2018 6:58 am
Forum: Investing - Help with Personal Investments
Topic: Nervous about not using a personal wealth manager. How do I do this myself?
Replies: 135
Views: 6754

Re: Nervous about not using a personal wealth manager. How do I do this myself?

Our priority is to have the advisable emergency funds first, then max out tax-advantaged accounts second, then save for a down payment, then invest the rest in taxable retirement accounts. While it's clear that I need to look into backdoor roth's more, it seems to me that this prioritization is app...
by teen persuasion
Wed Aug 01, 2018 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Create taxable events to claim AOTC (Amer Opp Tax Crdt)
Replies: 16
Views: 806

Re: Create taxable events to claim AOTC (Amer Opp Tax Crdt)

OP, you are confusing "tax" on line 44 with "owed" at the very bottom of the 1040 (after your withholdings and credits are applied). As long as "tax" on line 44 is larger than any nonrefundable credits the credits are subtracted, possibly getting you down to zero. After that, "payments" are applied,...
by teen persuasion
Wed Aug 01, 2018 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Nervous about not using a personal wealth manager. How do I do this myself?
Replies: 135
Views: 6754

Re: Nervous about not using a personal wealth manager. How do I do this myself?

It is interesting looking at the advisor's conscious (or unconscious?) ordering of priorities. I agree that emergency funds should be at the top of the list, but see how he creates a sub EF with investments? Then comes the short term savings goal (with investments to manage). Then taxable retiremen...
by teen persuasion
Wed Aug 01, 2018 9:14 am
Forum: Investing - Help with Personal Investments
Topic: Nervous about not using a personal wealth manager. How do I do this myself?
Replies: 135
Views: 6754

Re: Nervous about not using a personal wealth manager. How do I do this myself?

The plan we established with the financial planner (not including insurance, which we did cover) is as follows: Ages: 35 and 33 Combined annual income: $310k Debt: $325k (med school loans... going to get them refinanced) Checking: $25k Currently maxed out (goal is to maintain 2.5x monthly expenses ...
by teen persuasion
Mon Jul 30, 2018 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Financial upside / downside of marriage vs cohabiting
Replies: 74
Views: 6013

Re: Financial upside / downside of marriage vs cohabiting

Social security benefits are an obvious upside to marriage - a spouse can be eligible for 50% of your FRA benefit, even if they never work. There's no way for cohabiting couples to earn this benefit, although divorced spouses that were married 10 years are eligible for spousal benefits.
by teen persuasion
Mon Jul 30, 2018 9:11 am
Forum: Personal Finance (Not Investing)
Topic: taxes: claiming child for parent 1 while on HDHP for parent 2?
Replies: 11
Views: 1047

Re: taxes: claiming child for parent 1 while on HDHP for parent 2?

This is the crux of the question: does the child need to be the TAX dependent of the parent with the HDHP family plan? No, in another loophole. Under the ACA, only the family relationship determines dependent status, specifically excluding tax status as a requirement. As in the exceptional college ...
by teen persuasion
Mon Jul 30, 2018 8:19 am
Forum: Personal Finance (Not Investing)
Topic: taxes: claiming child for parent 1 while on HDHP for parent 2?
Replies: 11
Views: 1047

Re: taxes: claiming child for parent 1 while on HDHP for parent 2?

In fact, for a family with 2 small children, I wonder if EACH parent can have 1 child on their HDHP, thus both having family plans with $6900 max contribution limit for each parent? Yes, because the parents are not married and the "rules for married people" do not apply. Therefore, there is no comb...
by teen persuasion
Sat Jul 28, 2018 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: Why is rollover to Roth with Pre-Tax $$ So Bad?
Replies: 28
Views: 2533

Re: Why is rollover to Roth with Pre-Tax $$ So Bad?

Whether it is bad or good depends on your circumstances at the time. For us, right now would be a bad time to Roth convert. DS4 is in college, and Roth conversions would increase our AGI, which would increase our EFC, decreasing financial aid for DS4. Also, with 2 children still counting as our depe...
by teen persuasion
Sat Jul 28, 2018 7:25 am
Forum: Personal Finance (Not Investing)
Topic: 529 plan-is mandatory orientation fee qualified?
Replies: 16
Views: 2118

Re: 529 plan-is mandatory orientation fee qualified?

Call me ignorant, but what exactly would a "mandatory orientation" include and why would they charge $350 per student? Does it include housing for the orientation, transportation etc? Actual materials used by student (electronic, hard copy)? This assumes the student hasn't already secured housing t...
by teen persuasion
Mon Jul 23, 2018 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: Pay for college with cash flow
Replies: 78
Views: 5248

Re: Pay for college with cash flow

I looked into 529s when I first heard of them and the kids were young. I realized they would be counterproductive for our situation: big family, low income, low taxes. If we had any extra available income to save, it should first be directed towards retirement accounts, then our 9.75% mortgage, the...
by teen persuasion
Mon Jul 23, 2018 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Pay for college with cash flow
Replies: 78
Views: 5248

Re: Pay for college with cash flow

OP's plan makes sense to me, given his details. I looked into 529s when I first heard of them and the kids were young. I realized they would be counterproductive for our situation: big family, low income, low taxes. If we had any extra available income to save, it should first be directed towards re...
by teen persuasion
Sat Jul 21, 2018 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: College Saving Plans - Options
Replies: 10
Views: 907

Re: College Saving Plans - Options

Google "effect of 529 on EFC." I think ~ 5.6% of the 529 counts against expected family contribution. This is much lower than for some other assets. We funded our kids' 529s like crazy for many years but have been trying to cash-flow the first couple of years of expenses. As far as the FAFSA is con...
by teen persuasion
Thu Jul 19, 2018 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: Two Questions - College Tuition Payments
Replies: 11
Views: 1119

Re: Two Questions - College Tuition Payments

Any chance of a tuition roll back in the near future?

The college that my DH and I attended announced they were resetting tuition rates back to levels from a decade ago. They were also rejiggering financial aid levels to compensate, but if you are paying full freight....
by teen persuasion
Thu Jul 19, 2018 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Semi-Retire by 40-45, possible/realistic?
Replies: 21
Views: 3685

Re: Semi-Retire by 40-45, possible/realistic?

Read Mr Money Mustache forums. Check out RootofGood's blog. He retired at 33 with 3 kids, and is very transparent about their finances every month. Kids are as expensive as you make them. We've got 5, yet we managed on one low income for nearly 20 years (I'm working part-time now), paid off student ...
by teen persuasion
Sun Jul 15, 2018 11:10 am
Forum: Personal Finance (Not Investing)
Topic: For those of you who handle all the finances, how do you keep your spouse "in the know"
Replies: 107
Views: 13520

Re: For those of you who handle all the finances, how do you keep your spouse "in the know"

Someone on here (can't recall who) suggested creating a joint/family email for all financial logins. Then both spouses can see/access all account emails while each maintaining their personal emails. As much as I hate adding another email to check, I'm strongly considering this approach. At my small ...
by teen persuasion
Sat Jul 14, 2018 11:45 am
Forum: Investing - Help with Personal Investments
Topic: Withdraw Roth contributions to max TSP/get more G Fund?
Replies: 24
Views: 1292

Re: Withdraw Roth contributions to max TSP/get more G Fund?

[ Tax Filing Status: MFJ Tax Rate: 22% Federal (since we'll do Roth conversions of wife's tIRA to max out $2000/child tax credit, which takes us into the 22% bracket), I don't understand what this means. If you have more income, you get a larger child tax credit? Where will the money for the tax on...
by teen persuasion
Sat Jul 14, 2018 11:19 am
Forum: Investing - Help with Personal Investments
Topic: Withdraw Roth contributions to max TSP/get more G Fund?
Replies: 24
Views: 1292

Re: Withdraw Roth contributions to max TSP/get more G Fund?

I wonder if OP might be misunderstanding the refundable/nonrefundable aspect of a tax credit. Whether a tax credit is refundable or not has nothing to do with your tax refund or how much tax was withheld by your employer. It only has to do with whether that tax credit can make your tax negative. So...
by teen persuasion
Thu Jul 12, 2018 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: Preparing non-technocrat spouse $ Mgmt
Replies: 25
Views: 2380

Re: Preparing non-technocrat spouse $ Mgmt

Interesting discussion - it looks like there are at least 2, probably more, different types of interest/skill/savvy-ness involved here. My DH is fine technology-wise, but has little interest in finances, and is a bit math illiterate. He can do general math, but gets uncomfortable with formulas and v...
by teen persuasion
Wed Jul 11, 2018 8:34 am
Forum: Investing - Help with Personal Investments
Topic: What's up with Wells Fargo
Replies: 27
Views: 3077

Re: What's up with Wells Fargo

I suspect their definition of activity includes depositing or withdrawing money. Might not even include automated deposits or withdrawals. Check with the bank to see what qualifies. Note that the bank itself might not determine the rules; they might be due to regulation, instead. Exactly! We got a ...
by teen persuasion
Fri Jul 06, 2018 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Need full coverage health insurrance for just THIS month only (between jobs) -- can't find it
Replies: 20
Views: 2083

Re: Need full coverage health insurrance for just THIS month only (between jobs) -- can't find it

Yeah, we learned about the 15th of the previous month as deadline for ACA coverage the hard way, too. If you are unemployed right now, you might be eligible for Medicaid. ACA uses annual income, but Medicaid looks at current monthly income. Will depend on your state's rules, if it's an expansion sta...
by teen persuasion
Tue Jul 03, 2018 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: What are your property taxes?
Replies: 212
Views: 13920

Re: What are your property taxes?

Tn. home 1500 sq ft 3/4 acre land. 675.00 a year. :mrgreen: Mass. (Boston suburb) Home: ~3,000 sq. ft., 1 acre land Zillow estimate: ~$800,000 Prop. taxes: ~$10,000 a year Thinking of moving to TN 8-) I can relate. Lived in Western Ny for years,job related. 1600 sq foot home. half acre of land. Sch...
by teen persuasion
Mon Jul 02, 2018 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: What are your property taxes?
Replies: 212
Views: 13920

Re: What are your property taxes?

Tn. home 1500 sq ft 3/4 acre land. 675.00 a year. :mrgreen: Mass. (Boston suburb) Home: ~3,000 sq. ft., 1 acre land Zillow estimate: ~$800,000 Prop. taxes: ~$10,000 a year Thinking of moving to TN 8-) I can relate. Lived in Western Ny for years,job related. 1600 sq foot home. half acre of land. Sch...
by teen persuasion
Sun Jul 01, 2018 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Local Bank Branch Consolidation - Huh?
Replies: 12
Views: 1051

Re: Local Bank Branch Consolidation - Huh?

It makes a difference when your bank consolidates with another bank (or is taken over), or if branch locations are sold to a different bank because mergers create monopoly situations in a region. We've been getting hit with this for a few years. We had our accounts with FNFG, a local bank that was g...