Search found 949 matches

by teen persuasion
Wed Nov 20, 2019 2:20 pm
Forum: Personal Investments
Topic: My third draft (portfolio planning)
Replies: 13
Views: 877

Re: My third draft (portfolio planning)

Consider adjusting your plan to use a Roth rather than Traditional (pretax) for spouse’s IRA. IMO it makes more sense to save as Roth in the IRA before saving $25k in Taxable as per your plan (unless the tIRA contribution allows you to claim a tax credit, avoid NIIT, etc.) Another vote for Roth IRA...
by teen persuasion
Tue Nov 19, 2019 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Just learned something about HSAs and independent children that I did not know
Replies: 42
Views: 4159

Re: Just learned something about HSAs and independent children that I did not know

Terminology is important. Money put into an HSA are not deductions. They are simply not counted as income, which is much better than a deduction. Ralph HSA contributions don't have to be payroll deductions. In this case (direct personal contributions) they are deductible on 1040 line 25. Or maybe I...
by teen persuasion
Wed Nov 13, 2019 10:03 am
Forum: Personal Investments
Topic: SIL retirement puzzle
Replies: 49
Views: 3472

Re: SIL retirement puzzle

It appears she has no separate emergency fund, so I'd want to segregate some of her savings as a dedicated EF, say 12 months of expenses. If they are $4k/month, that leaves $365k to invest. Less if you subtract the extra $1100/month until the pension kicks in. Is the pension inflation adjusted? If n...
by teen persuasion
Wed Nov 13, 2019 8:26 am
Forum: Personal Investments
Topic: SIL retirement puzzle
Replies: 49
Views: 3472

Re: SIL retirement puzzle

Thanks everyone for their help: - the $4k expenses represents her projected budget not her current expenses. It is conservative and as such, may be subject to reduction. It does accurately reflect hoa, taxes and utilities for a condo she’d like to purchase. - her nephew’s aunt passed away and she h...
by teen persuasion
Tue Nov 12, 2019 1:02 pm
Forum: Personal Investments
Topic: FIRE Roth Ladder Tax Question
Replies: 13
Views: 1168

Re: FIRE Roth Ladder Tax Question

I plan on having at least 5 years worth of expenses in Roth IRA contributions (which can be withdrawn at any time tax and penalty free). So we are planning to convert one year's expenses from tIRA to rIRA, and withdraw one year's expenses from rIRA contributions, essentially withdrawing from tIRA wi...
by teen persuasion
Fri Nov 08, 2019 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Just learned something about HSAs and independent children that I did not know
Replies: 42
Views: 4159

Re: Just learned something about HSAs and independent children that I did not know

Just make sure she opens the HSA before she incurs any medical expenses. She can't reimburse herself for expenses incurred before the HSA was opened.

I had to convince DS2 of the need to open his own HSA, given his history of quidditch injuries.
by teen persuasion
Thu Nov 07, 2019 6:53 pm
Forum: Personal Investments
Topic: how to decide if I should do Roth 403b vs traditional 403b?
Replies: 5
Views: 257

Re: how to decide if I should do Roth 403b vs traditional 403b?

If you switch to Roth contributions, will your MAGI STILL be below the limits?
by teen persuasion
Thu Nov 07, 2019 2:24 pm
Forum: Personal Investments
Topic: EOY Investments - Roth or HSA? (New Guy!)
Replies: 5
Views: 251

Re: EOY Investments - Roth or HSA? (New Guy!)

Some of each might make sense. Contributions to HSA would net you a tax break, especially if you can contribute thru payroll (then no FICA on HSA contributions, too). If you are eligible for EITC, the reduced AGI and w2 income will get you a larger refundable credit (and possibly state credit). If y...
by teen persuasion
Thu Nov 07, 2019 2:12 pm
Forum: Personal Investments
Topic: Retirement
Replies: 21
Views: 2721

Re: Retirement

Thank you all for the great responses. To answer your questions. No the $4 million calculation is not accurate. It doesn’t include social security because I’m not sure if it will be around when I retire. I’m also currently using 30% of my income to pay off my student loans aggressively. I will def ...
by teen persuasion
Thu Nov 07, 2019 8:57 am
Forum: Personal Investments
Topic: Two 529 funds or add a Roth IRA instead
Replies: 17
Views: 857

Re: Two 529 funds or add a Roth IRA instead

Is mom eligible to contribute directly to a Roth IRA? You mentioned she has a work 401k.

If not, can she do a backdoor Roth IRA contribution cleanly (no other IRA balances)? Would this throw a kink in withdrawals due to 5 year seasoning of conversions?
by teen persuasion
Wed Nov 06, 2019 8:26 am
Forum: Personal Investments
Topic: 403b to a Rollover IRA or Roth IRA
Replies: 10
Views: 541

Re: 403b to a Rollover IRA or Roth IRA

Alan, I'm not sure I understand. Seemed obvious to me that at age 33, 18k now could be worth 200k much later, and paying some taxes on 18k now would be a better investment than paying taxes on 200k in withdraws later in life. (Can someone tell me does 3,900$ seem right on taxes we would owe on 18K?...
by teen persuasion
Sun Nov 03, 2019 2:59 pm
Forum: Personal Investments
Topic: Roth/Traditional Allocation Question
Replies: 37
Views: 1456

Re: Roth/Traditional Allocation Question

Let's test this by thinking about going to the extremes. If you go all Roth, forever (I know, you will have some traditional because of matching - just pretend for hypothetical purposes), you will definitely pay 30%+ tax each year. In retirement, with 100% Roth, you have zero taxable income other th...
by teen persuasion
Sun Nov 03, 2019 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Fell below ACA eligibility in Medicaid non-expansion state
Replies: 6
Views: 576

Re: Fell below ACA eligibility in Medicaid non-expansion state

One more thought. He should also look at making a $2,000 contribution to a Roth so that he could get up to a $1,000 Retirement Savings Contribution Credit. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit Even if he would need to work ext...
by teen persuasion
Sun Nov 03, 2019 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: 529 - account owner and FAFSA
Replies: 6
Views: 515

Re: 529 - account owner and FAFSA

A 529 owned by the student is treated as if it is owned by the parent by FAFSA. So they are treated the same, as Available Assets.
by teen persuasion
Sat Nov 02, 2019 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: CSS Profile rookie here
Replies: 6
Views: 688

Re: CSS Profile rookie here

CSS said not to use appraisal values for taxes, but sources like Redfin and Zillow. I used Redfin because it was much less than Zillow, but still substantially more than the tax appraisal. I created a word doc with screen shots with all my source data in case CSS ever came knocking. This was a poin...
by teen persuasion
Sat Nov 02, 2019 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: How does part-year dependent affect ACA premium subsidy?
Replies: 5
Views: 346

Re: How does part-year dependent affect ACA premium subsidy?

Is your son under 26? If so, he can still be on "your" health insurance. One quirk to keep in mind is if you use an HDHP and HSA, he would be eligible for his own family level HSA contribution if he is not your dependent. It's tricky, especially thru the ACA. While DS2 was under age 26, we carried h...
by teen persuasion
Sat Nov 02, 2019 9:55 am
Forum: Personal Finance (Not Investing)
Topic: [Just got married] Looking for ways to cut down on my budget
Replies: 80
Views: 6442

Re: [Just got married] Looking for ways to cut down on my budget

This would be a huge change, but worth considering since the student loan is really weighing you both down and getting in the way of a baby: Sell the house and use the proceeds to pay off the student loan and rent a cheaper house or apartment. With the loan gone, maybe husband switches to part time...
by teen persuasion
Fri Nov 01, 2019 8:20 pm
Forum: Personal Finance (Not Investing)
Topic: ACA - end of year move to another state, kids in college elsewhere
Replies: 11
Views: 959

Re: ACA - end of year move to another state, kids in college elsewhere

Work with a health navigator, they know the ins and outs of this stuff. Are all of the states using the federal website? My state has its own, so I cannot use the federal website, making comparisons difficult. Students living at college are considered as living at home, even if they are only physica...
by teen persuasion
Fri Nov 01, 2019 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: [Just got married] Looking for ways to cut down on my budget
Replies: 80
Views: 6442

Re: [Just got married] Looking for ways to cut down on my budget

OP, you've made remarks about having a high savings rate before marriage, and having a comfortable EF. So you may have a good base to rely on if you decide to run on a tighter budget than you are accustomed to. Don't fret about your savings rate while you have (temp) high expenses like daycare and s...
by teen persuasion
Fri Nov 01, 2019 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: CSS Profile rookie here
Replies: 6
Views: 688

Re: CSS Profile rookie here

You are filling this out for possible financial aid, right? So you are not trying to impress them, you are trying to look poor. Don't inflate any numbers, just report the accurate amount as you know it today. Parents income: I would report current pay (ignore increases you expect, they might not mat...
by teen persuasion
Thu Oct 31, 2019 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: [Just got married] Looking for ways to cut down on my budget
Replies: 80
Views: 6442

Re: [Just got married] Looking for ways to cut down on my budget

So your actual combined gross income is $150k + $30k bonus + $60k spouse = $240k. And your actual combined taxes are $45k + $18k spouse + (what?) $9k on bonus = $72k. If I've collected all the numbers up correctly, you are jointly paying more in taxes than those average $60k income families. Then th...
by teen persuasion
Tue Oct 29, 2019 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Property tax went up how does it affect my mortgage
Replies: 12
Views: 922

Re: Property tax went up how does it affect my mortgage

Timing of the escrow review can wreak havoc on the adjustments. Our escrow see-sawed up and down every year, because the escrow review was in August, but our school tax bill was released Sept 1. They had a formula where they looked at last year's total (property tax and homeowners insurance in Janua...
by teen persuasion
Tue Oct 29, 2019 9:54 am
Forum: Personal Finance (Not Investing)
Topic: High School Kid - in soccer
Replies: 14
Views: 1425

Re: High School Kid - in soccer

Which seasons are each sport in your area? Here, soccer and XC are in direct competition for athletes, they are the same season - fall. DS4 just finished up his XC season with All-League last Saturday. One of the other districts dominates the league, because that district has no soccer, so all the g...
by teen persuasion
Mon Oct 28, 2019 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: AGI, MAGI, ACA, Subsidies, MFA, and Student Aid Oh My!
Replies: 4
Views: 691

Re: AGI, MAGI, ACA, Subsidies, MFA, and Student Aid Oh My!

It's been a long time, but in my experience, HSA contributions as a self-employed person do reduce FAFSA AGI, unless something has changed in the past few years. Same with 401k/SEP/traditional IRA, but not any ROTHs. Those things do decrease AGI. But then the FAFSA adds back "total untaxed income" ...
by teen persuasion
Mon Oct 28, 2019 7:30 am
Forum: Personal Finance (Not Investing)
Topic: AGI, MAGI, ACA, Subsidies, MFA, and Student Aid Oh My!
Replies: 4
Views: 691

Re: AGI, MAGI, ACA, Subsidies, MFA, and Student Aid Oh My!

Self contributions to an HSA (that is, contributions that are NOT made thru employer payroll deductions) which are deducted on your federal tax return, will be added back to your available income on the FAFSA. So payroll HSA contributions may reduce your EFC (on the income side of the equation), but...
by teen persuasion
Sat Oct 26, 2019 7:43 am
Forum: Personal Investments
Topic: Paying for college
Replies: 12
Views: 1297

Re: Paying for college

If you'd like to see behind the FAFSA EFC calculations, to see how much assets affect the EFC, and how much income affects EFC, start on page 9: https://ifap.ed.gov/efcformulaguide/attachments/2021EFCFormulaGuide.pdf That $100k 529 drives up your EFC by $5.64k, so its worthwhile to drain it first. A...
by teen persuasion
Sat Oct 26, 2019 6:49 am
Forum: Personal Finance (Not Investing)
Topic: Who does your tax returns?
Replies: 103
Views: 5215

Re: Who does your tax returns?

Do it myself by hand. Then I know what affects my taxes to what degree, and no software program is screwing it up. Also, zero cost. Exactly! Then I run it thru TurboTax to efile. I would love to use the free fillable forms, but my state insists that if you efile federal, you must efile state, too, ...
by teen persuasion
Fri Oct 25, 2019 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Can I open and contribute to a IRA while receiving financial aid and government assistance.
Replies: 31
Views: 2000

Re: Can I open and contribute to a IRA while receiving financial aid and government assistance.

Thinking more about the financial aid part of the equation. FAFSA formulas and rules and charts: https://ifap.ed.gov/efcformulaguide/attachments/2021EFCFormulaGuide.pdf You are over 24, so you are an independent student. You have a child, so an independent student with a dependent other than a spous...
by teen persuasion
Fri Oct 25, 2019 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Who does your tax returns?
Replies: 103
Views: 5215

Re: Who does your tax returns?

Do it myself by hand. Then I know what affects my taxes to what degree, and no software program is screwing it up. Also, zero cost. Exactly! Then I run it thru TurboTax to efile. I would love to use the free fillable forms, but my state insists that if you efile federal, you must efile state, too, ...
by teen persuasion
Fri Oct 25, 2019 8:46 am
Forum: Personal Finance (Not Investing)
Topic: passing assets before retiring?
Replies: 23
Views: 2246

Re: passing assets before retiring?

My co-worker heard from someone that before one retires they should pass their assets to others. The reason being, if they are in medical jeopardy the creditors won't come after assets such as their brokerage and retirement accounts. Is this really a thing? :? Who told this to your friend? I'd be s...
by teen persuasion
Fri Oct 25, 2019 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Who does your tax returns?
Replies: 103
Views: 5215

Re: Who does your tax returns?

Do it myself by hand. Then I know what affects my taxes to what degree, and no software program is screwing it up. Also, zero cost. Exactly! Then I run it thru TurboTax to efile. I would love to use the free fillable forms, but my state insists that if you efile federal, you must efile state, too, ...
by teen persuasion
Thu Oct 24, 2019 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Can I open and contribute to a IRA while receiving financial aid and government assistance.
Replies: 31
Views: 2000

Re: Can I open and contribute to a IRA while receiving financial aid and government assistance.

Are you eligible for EITC? Where does your income land (on the EITC income chart)? Are you on the phase-in ramp up of the credit, the phase-out ramp down, or the plateau in between? Your income level influences your credit level, but you can tweak it with 401k contributions (but usually not by IRA ...
by teen persuasion
Thu Oct 24, 2019 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Can I open and contribute to a IRA while receiving financial aid and government assistance.
Replies: 31
Views: 2000

Re: Can I open and contribute to a IRA while receiving financial aid and government assistance.

Are you eligible for EITC? Where does your income land (on the EITC income chart)? Are you on the phase-in ramp up of the credit, the phase-out ramp down, or the plateau in between? Your income level influences your credit level, but you can tweak it with 401k contributions (but usually not by IRA c...
by teen persuasion
Wed Oct 23, 2019 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Reduce roth 401(k) to just match to prepay mortgage?
Replies: 51
Views: 2641

Re: Reduce roth 401(k) to just match to prepay mortgage?

Details are important. How much is "to the match"? For that matter, how good is the match (1 to 1, or .25)? How high is your income, relative to the 401k max? How long until you expect to retire the mortgage? How much do you already have in retirement accounts, growing even if you drop contributions...
by teen persuasion
Tue Oct 22, 2019 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA for Independent Undergrad
Replies: 12
Views: 940

Re: FAFSA for Independent Undergrad

I called FAFSA. I may call again to see if I get the same answer twice, as the answer sounded confusing to me. If I gave my son $100 as a birthday gift, it counts as un-taxed income. If I bought him a pair of shoes for $100, it does not count. If I took withdrawals from his 529 fund to pay tuition ...
by teen persuasion
Tue Oct 22, 2019 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: ACA Open Enrollment With COBRA Ending
Replies: 17
Views: 1129

Re: ACA Open Enrollment With COBRA Ending

Open enrollment for 2020 runs Nov 1 to Dec 15, I believe. Start early - we learned the hard way (when DH was between jobs) that you need to sign up BEFORE your coverage drops. If you sign up before the 15th of the current month, your coverage can start the first of the following month. If you wait u...
by teen persuasion
Tue Oct 22, 2019 8:42 am
Forum: Personal Finance (Not Investing)
Topic: FAFSA - tips for filling out
Replies: 25
Views: 2490

Re: FAFSA - tips for filling out

Somehow I can't believe that 30% of FAFSA applications are audited; I suspect that the correct rate is far, far lower (think of how few IRS income tax audits are done). What rate the FAFSA advertises certainly can't be trusted. Head over to CollegeConfidential and ask that question. Some people hav...
by teen persuasion
Tue Oct 22, 2019 8:08 am
Forum: Personal Finance (Not Investing)
Topic: FAFSA for Independent Undergrad
Replies: 12
Views: 940

Re: FAFSA for Independent Undergrad

FAFSA EFC formulas: https://ifap.ed.gov/efcformulaguide/att ... ide.pdf

For an independent student without dependents, start on page 21 (after confirming that the student meets the definition of independent).
by teen persuasion
Mon Oct 21, 2019 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA - tips for filling out
Replies: 25
Views: 2490

Re: FAFSA - tips for filling out

I recommend avoiding the DRT--Data Retrieval Tool, which enters data from your tax return directly into your FAFSA. Reason: I took a 401(K) distribution and rolled it over directly into an IRA; I reported it on my 1040 and noted "Rollover" and zero taxable income. However, the entire amount was inc...
by teen persuasion
Sat Oct 19, 2019 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Can you claim financial independence with kids still in school
Replies: 80
Views: 6091

Re: Can you claim financial independence with kids still in school

my DW reminds me that our kids are a long way from being settled in life and she feels it is our responsibility till the end to make sure they are settled in life and we cannot relax till then (another 10-12 years at least ). Super weird statement. There are a lot of stories about ppl who were doin...
by teen persuasion
Fri Oct 18, 2019 6:39 am
Forum: Personal Investments
Topic: Saver's Tax Credit
Replies: 12
Views: 2441

Re: Saver's Tax Credit

I suspect that automatic line 4 reduction due to reporting various pension income varies with the many tax programs out there. If a program enters a reduction for certain DB plan distributions that are not justified, the override procedures may also vary. But it will be difficult to know what you f...
by teen persuasion
Wed Oct 16, 2019 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: FAFSA - tips for filling out
Replies: 25
Views: 2490

Re: FAFSA - tips for filling out

I recommend avoiding the DRT--Data Retrieval Tool, which enters data from your tax return directly into your FAFSA. Reason: I took a 401(K) distribution and rolled it over directly into an IRA; I reported it on my 1040 and noted "Rollover" and zero taxable income. However, the entire amount was inc...
by teen persuasion
Tue Oct 15, 2019 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Suggestions for college savings
Replies: 20
Views: 1771

Re: Suggestions for college savings

Here is the link to FAFSA EFC formulas: https://ifap.ed.gov/efcformulaguide/attachments/2021EFCFormulaGuide.pdf Start on page 9. You can see how income and assets like 529 accounts influence your child's EFC by working thru the entries. See if you can get your family eligible for either the auto EFC...
by teen persuasion
Mon Oct 14, 2019 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: 529 account as a gift
Replies: 8
Views: 512

Re: 529 account as a gift

Is the amount big enough to fully pay for a college education? If not, besides not helping much, you might be hurting the kid's chances of getting financial aid. A bit of an exaggeration in your continued anti-529 bias. 529 accounts owned by the parent or student are treated as parental assets with...
by teen persuasion
Mon Oct 14, 2019 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: poor Boglehead sending my kids to college
Replies: 69
Views: 5863

Re: poor Boglehead sending my kids to college

Tuition free at your employer sounds fantastic. Living at home vs on campus? Lots of flexibility there, depending on your school's campus life policies. Some of the schools my kids have attended had a one-price fits all approach - every dorm slot cost the same, regardless of amenities/inconveniences...
by teen persuasion
Mon Oct 14, 2019 11:08 am
Forum: Personal Finance (Not Investing)
Topic: What % and for how long do you have to save to replace income net ofsaving?
Replies: 17
Views: 2254

Re: What % and for how long do you have to save to replace income net ofsaving?

MMM uses a 4% SWR, but the concept is the same: https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ That is a very good approximation to what I was looking for. Thanks you so much!!! Note that MMM does not include taxes in the input income number. He is no...
by teen persuasion
Sat Oct 12, 2019 11:18 am
Forum: Personal Investments
Topic: Taxable investment account for college?
Replies: 114
Views: 6428

Re: Taxable investment account for college?

Very good, miamivice, you have excellent reasons to fund 529s - you can see that your EFC will always exceed cost of attendance. Using 529s is the best option for you. My example is more in the gray area of income, to show how income alone affects EFC, and how added assets change the EFC (and using ...
by teen persuasion
Sat Oct 12, 2019 10:32 am
Forum: Personal Investments
Topic: Taxable investment account for college?
Replies: 114
Views: 6428

Re: Taxable investment account for college?

If you only expect to have one kid in college at a time, and you can fully fund a 401k and two Roth IRAs annually, you are pretty close to being able to fund your kids college education by just redirecting new retirement savings. Yes, one (might) be able to cash flow college if income is sufficient...