Search found 520 matches

by Rainmaker41
Fri May 22, 2020 11:58 am
Forum: Personal Investments
Topic: A very simple situation but help is needed [How should I invest my 150k?]
Replies: 19
Views: 1628

Re: A very simple situation but help is needed [How should I invest my 150k?]

On the question of pre-tax or Roth 401(k), I will point out that you probably will want to have some taxable income in retirement. Assume for simplicity of illustration that tax laws do not change. You defer taxes at a federal marginal rate of, say, 12-22%. In retirement, your taxable distributions ...
by Rainmaker41
Thu May 14, 2020 6:02 pm
Forum: Personal Investments
Topic: Advice for 22 year old on investing for home downpayment?
Replies: 29
Views: 1791

Re: Advice for 22 year old on investing for home downpayment?

Welcome. If I were in your shoes planning to buy a home in 15 years, I would not save up the down payment yet, but would contribute as much as possible (after emergency cash reserves are funded) to retirement accounts. This lets you invest as much as possible as early as possible, and structures you...
by Rainmaker41
Wed May 06, 2020 4:00 pm
Forum: Personal Consumer Issues
Topic: 2020 travel plans
Replies: 95
Views: 4417

Re: 2020 travel plans

We cancelled our April trip.

We were originally planning to travel in Q4 this year, but are holding off on booking anything.

1. Neither feasibility nor advisability of travel in 2020 is clear.
2. If we booked something, the ability to be refunded later on is not clear.
by Rainmaker41
Sat Apr 11, 2020 11:48 am
Forum: Personal Finance (Not Investing)
Topic: [Government stimulus payments]
Replies: 351
Views: 27182

Re: just got my $1200 stimulus payment

Ours will go straight to a food bank.
by Rainmaker41
Fri Apr 03, 2020 7:37 am
Forum: Personal Finance (Not Investing)
Topic: Are your personal expenses down during stay home and shelter?
Replies: 167
Views: 9240

Re: Are your personal expenses down during stay home and shelter?

We do not have much in the way of nonessential spending apart from traveling. Our upcoming trip is lost with the prospect of an airline refund unclear, but hopefully we will make that up later in the year. Our commuting expenses have crashed, which we have more than offset with food bank donations. ...
by Rainmaker41
Fri Apr 03, 2020 6:42 am
Forum: Personal Finance (Not Investing)
Topic: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?
Replies: 30
Views: 2880

Re: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?

It's not a penalty to not get a tax credit intended for people with lower income than you. Yes it is, under certain circumstances. If two families have the same incomes as each other in 2018, 2019, and 2020, and the only difference is that one files their 2019 tax return in February 2020 while the ...
by Rainmaker41
Thu Apr 02, 2020 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: COVID-19 Stimulus Payment Issue
Replies: 86
Views: 7811

Re: COVID-19 Stimulus Payment Issue

I would have voted for this. It's a humanitarian issue, not a stimulus issue, in my mind. We are donating our economic impact payment to a food bank anyway. The only way to have resolved this fairly would have been to not have done a stimulus check at all and instead, simply provide a bigger boost t...
by Rainmaker41
Sun Mar 22, 2020 9:45 am
Forum: Personal Investments
Topic: F.I.R.E. is over
Replies: 14
Views: 1366

Re: F.I.R.E. is over

We are nearly 30, and were never going to retire at 35-40, because our income does not support “enough” savings even with frugality. We were aiming for 50 before and still are now. Whether or not we can retire early and regardless of what that looks like, there is still resiliency value in having a ...
by Rainmaker41
Sun Mar 22, 2020 6:05 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank CD rate & timing of funding
Replies: 8
Views: 783

Re: Ally Bank CD rate & timing of funding

I encountered the same problem with CDs opened on Sunday, which was the opposite of my expectation. The CD I funded with a check deposit through Ally’s app on opening day got the published rate. The CD I funded on Wednesday after funds arrived from another institution by push received the “wrong” ra...
by Rainmaker41
Sat Mar 21, 2020 5:18 am
Forum: Personal Consumer Issues
Topic: Generosity in the time of Coronavirus
Replies: 9
Views: 824

Re: Generosity in the time of Coronavirus

We are not commuting, and are giving that cost savings to a food bank.
by Rainmaker41
Thu Mar 19, 2020 8:03 am
Forum: Personal Investments
Topic: Thank you Bogleheads
Replies: 2
Views: 223

Re: Thank you Bogleheads

Call_Me_Op wrote:
Thu Mar 19, 2020 7:57 am
How can you rebalance the Lifestrategy fund? All investments are in a single fund.
We approximate the Lifestrategy growth fund in our employer retirement plans using component asset classes. We hold the actual Lifestrategy growth funds in our Roth IRAs.
by Rainmaker41
Thu Mar 19, 2020 7:53 am
Forum: Personal Investments
Topic: Thank you Bogleheads
Replies: 2
Views: 223

Thank you Bogleheads

In more “normal” times, we wrote down a brief investment policy statement. It says that we keep making retirement contributions with all surplus income, have an asset allocation approximating the Vanguard LifeStrategy Growth fund (80/20) and: “Account balances will be reviewed quarterly. Investments...
by Rainmaker41
Wed Mar 18, 2020 8:43 pm
Forum: Personal Investments
Topic: VUSXX vs FDIC Bank Accounts
Replies: 29
Views: 2117

Re: VUSXX vs FDIC Bank Accounts

What kind of safety do you mean? Presumably both will provide return of principle, but swift access to the cash may favor a bank account. As others have observed, markets could get shut down, the financial networks might have challenges, etc. In my view a money market fund is useful if you have more...
by Rainmaker41
Wed Mar 18, 2020 8:32 pm
Forum: Personal Investments
Topic: VUSXX vs FDIC Bank Accounts
Replies: 29
Views: 2117

Re: VUSXX vs FDIC Bank Accounts

I am moving cash out of Vanguard's money market funds and into an online savings account. I'm leaving some cash at Vanguard just to have it available at multiple institutions, but this is primarily motivated by APY.
by Rainmaker41
Wed Mar 18, 2020 6:35 pm
Forum: Personal Investments
Topic: VUSXX vs FDIC insurance
Replies: 22
Views: 3011

Re: VUSXX vs FDIC insurance

I may move cash from the money market fund to an online savings account at some point, but that is motivated by APY.
by Rainmaker41
Wed Mar 18, 2020 5:35 pm
Forum: Personal Consumer Issues
Topic: How much cash to have during coronavirus panic?
Replies: 144
Views: 10779

Re: How much cash to have during coronavirus panic?

We keep a couple hundred on hand normally. I got some more out of the ATM this week. If we need more than that I figure money is no longer the problem.
by Rainmaker41
Sun Mar 15, 2020 8:28 pm
Forum: Personal Investments
Topic: If under FDIC limit, move all intermediate bonds to No-Penalty CD?
Replies: 24
Views: 1300

Re: If under FDIC limit, move all intermediate bonds to No-Penalty CD?

Open the CD tonight at today’s interest rate and fund it during the week. I’ve never set up a CD and chosen to fund later with Ally (I’ve always just funded directly from my Ally checking account). I just tried it, and after setting up the CD I don’t see an option to fund it. Are you familiar with ...
by Rainmaker41
Sun Mar 15, 2020 7:20 pm
Forum: Personal Investments
Topic: If under FDIC limit, move all intermediate bonds to No-Penalty CD?
Replies: 24
Views: 1300

Re: If under FDIC limit, move all intermediate bonds to No-Penalty CD?

Open the CD tonight at today’s interest rate and fund it during the week.
by Rainmaker41
Fri Mar 13, 2020 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Ally 1% bonus, up to $250, sign up by 3/23
Replies: 179
Views: 13656

Re: Ally 1% bonus, up to $250

My reading of the wording is that you cannot transfer money to an Ally Checking account, then move money from the checking account to the Savings or CD account. So, I guess either transfer money directly to the Savings or CD account or deposit a check directly to it.
by Rainmaker41
Thu Mar 12, 2020 11:17 am
Forum: Personal Investments
Topic: Who is staying course and how are you dealing with net worth going down?
Replies: 359
Views: 25885

Re: Who is staying course and how are you dealing with net worth going down?

I am less than entirely amused by the downturn. I checked the portfolio last night and from my rough glance we seem to have lost all gains from the last 3 years. The main psychological advantage I feel we have is that "only" our retirement accounts are invested, and the losses there, however heavy, ...
by Rainmaker41
Tue Jan 07, 2020 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block online - How to enter USG part of Vanguard Federal Money Market Fund dividends (not state taxable)?
Replies: 1
Views: 163

H&R Block online - How to enter USG part of Vanguard Federal Money Market Fund dividends (not state taxable)?

I've begun a dry run for 2019 tax filing using H&R Block's online tax software with the data I know. I can enter all sources of income, but I have a small problem with entering the portion of a 1099-DIV which should be excluded from state taxable income. My income from Vanguard's Federal Money Marke...
by Rainmaker41
Fri Jan 03, 2020 7:57 am
Forum: Personal Finance (Not Investing)
Topic: How much were you able to save this year?
Replies: 142
Views: 10908

Re: How much were you able to save this year?

Do people include matched contributions into their gross salary? Makes sense to me to include it but it makes my savings percentage drop 4% lower. Not exactly a problem but just curious to see how people account for it. I include employer contributions in both income (part of compensation) and savi...
by Rainmaker41
Fri Jan 03, 2020 7:39 am
Forum: Personal Finance (Not Investing)
Topic: How much were you able to save this year?
Replies: 142
Views: 10908

Re: How much were you able to save this year?

Married, late 20s. No kids or house.

Net income including retirement matches less taxes: $95k

Spending: $33k

Savings: $62k / 65.1% net savings rate
by Rainmaker41
Wed Jan 01, 2020 9:53 pm
Forum: Personal Finance (Not Investing)
Topic: Low-earners- What is your profession?
Replies: 371
Views: 56602

Re: Low-earners- What is your profession?

Gross income: $11k in 2014, $22k in 2015, and $34k in 2016... in a high cost of living city. Things picked up partway through 2016 when I started making about $40k annualized as a Finance Associate for a 501(c)(3) nonprofit. Before that I worked through a temp agency. Whenever I feel like I wish I ...
by Rainmaker41
Sat Dec 21, 2019 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Changes to 401(k) and IRAs, SECURE Act - It's signed
Replies: 292
Views: 23306

Re: Changes to 401(k) and IRAs, SECURE Act - It's signed

The RMD age is raised to 72. How does this impact someone who had their first RMD already, but will not turn 72 until a later year? Is the rule “if age 72 or greater on Dec 31 of tax year, then an RMD is required in that tax year”? If you're already 70-1/2, this does not impact you. It only affects...
by Rainmaker41
Sat Dec 21, 2019 5:38 am
Forum: Personal Finance (Not Investing)
Topic: Changes to 401(k) and IRAs, SECURE Act - It's signed
Replies: 292
Views: 23306

Re: Changes to 401(k) and IRAs, SECURE Act - It's signed

The RMD age is raised to 72.

How does this impact someone who had their first RMD already, but will not turn 72 until a later year? Is the rule “if age 72 or greater on Dec 31 of tax year, then an RMD is required in that tax year”?
by Rainmaker41
Thu Nov 07, 2019 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone want to share their monthly budget? Here's ours
Replies: 153
Views: 34724

Re: Anyone want to share their monthly budget? Here's ours

We are 2 married adults in a high cost of living area with no kids. All figures are derived from 2020 calendar year annual projections divided by 12 and then rounded to nearest whole number. This means that our rent and Internet service is actually lower now than the amount shown, but we project it ...
by Rainmaker41
Wed Nov 06, 2019 1:02 pm
Forum: Personal Investments
Topic: IRA contribution limit is per person?
Replies: 13
Views: 615

Re: IRA contribution limit is per person?

Yes, the limit is per person, but you can contribute for both of the two spouses even if only one spouse has income.
by Rainmaker41
Wed Nov 06, 2019 12:14 pm
Forum: Investing - Theory, News & General
Topic: 2020 IRS Limits Announced for 401(k)'s etc.
Replies: 28
Views: 5022

IRS announces 2020 retirement plan contribution limit increases

[Topic merged here -- mod oldcomputerguy] The IRS has announced retirement plan contribution limit increases for 2020. 401(k)/403(b)/TSP/457 plans: Employee contribution limit is increasing from $19,000 to $19,500. Catch-up contribution limit for persons 50 and older is increasing from $6,000 to $6...
by Rainmaker41
Tue Sep 24, 2019 8:03 pm
Forum: Personal Finance (Not Investing)
Topic: transfer between capital one 360 and fidelity
Replies: 10
Views: 1159

Re: transfer between capital one 360 and fidelity

Speaking of Capital One 360 ACH transfers initiated as a pull from a brokerage at a 3rd party, what transfer amounts have people here been able to use? Capital One says there is a daily limit of $10k and a monthly limit of $25k, but does that apply to ACH transfers initiated from the other instituti...
by Rainmaker41
Sat Sep 21, 2019 1:25 pm
Forum: Personal Investments
Topic: Savings vs investment ratio
Replies: 4
Views: 523

Re: Savings vs investment ratio

A rule of thumb is to have an emergency fund of 3-6 months of expenses before you invest (more if your situation is less secure, less if your situation is more secure). That can be kept in a high yield online savings account or CDs, a money market fund, etc. While building that up, you should make s...
by Rainmaker41
Sat Sep 21, 2019 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: State Taxation of Federal Money Market Funds?
Replies: 7
Views: 679

State Taxation of Federal Money Market Funds?

Hello interested Bogleheads, It is my understanding that: 1. Treasury interest is exempt from state income tax. 2. The Vanguard Federal Money Market Fund derives about 77% of its income from Treasury interest. 3. So, 77% (or whatever the proportion is that year for the particular fund) of Federal Mo...
by Rainmaker41
Wed Aug 28, 2019 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Cash - Throw it all on the table!!!
Replies: 226
Views: 43285

Re: Cash - Throw it all on the table!!!

We keep 6 months of budgeted spending in cash: 1 month is kept in a combination of our joint online checking account, linked online savings account, and a bit of paper cash in our wallets. We pretty much cash-flow expenses through credit cards and this without issue. We don't have any significant lu...
by Rainmaker41
Sun Aug 25, 2019 6:39 am
Forum: Personal Finance (Not Investing)
Topic: Do you sacrifice to save?
Replies: 97
Views: 9204

Re: Do you sacrifice to save?

For example, I'm 28, and up until about 9 months ago, I almost always prioritized sacrificing in order to exceed savings goals. The way I see it, my wife and I are young and healthy, and currently renting in a VHCOL area where I doubt we'll ever buy a house, so we should take advantage of our earni...
by Rainmaker41
Tue May 07, 2019 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: What’s in your pocket?
Replies: 22
Views: 2395

Re: What’s in your pocket?

Keys Phone Wallet with: 2 credit cards 1 debit card for ATMs $40 cash ID health insurance card public transportation stored value card grocery store membership discount card library card I used to not carry a debit card in case I was robbed, but I decided that I'd rather have it in case our apartmen...
by Rainmaker41
Sat Mar 02, 2019 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Can severance pay count as earned income for IRA eligability?
Replies: 3
Views: 468

Re: Can severance pay count as earned income for IRA eligability?

From what I see from SSA, severance counts as earned income. If it's on the W-2, it's wage income, right? Was there an error in the reporting? https://www.ssa.gov/OP_Home/handbook/handbook.26/handbook-2605.html "Wages - Wages are what an individual receives (before any deductions) for working as som...
by Rainmaker41
Wed Feb 20, 2019 9:29 pm
Forum: Personal Finance (Not Investing)
Topic: How much traditional IRA can my elder parents take out before taxed?
Replies: 12
Views: 1192

Re: How much traditional IRA can my elder parents take out before taxed?

Are you referring to a Traditional IRA or a Roth IRA? Traditional IRA distributions count toward taxable income to the extent that the original contributions were not made with after-tax money. Roth IRA distributions are not taxed.
by Rainmaker41
Wed Feb 20, 2019 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Why am I paying more taxes than expected?
Replies: 15
Views: 1429

Re: Why am I paying more taxes than expected?

Social Security & Medicare taxes are distinct from income taxes. For employees, the employer share of the payroll tax is paid by the employer. For contractor income, the employer share is paid by the contractor.

So, the same dollar is taxed twice as you put it.
by Rainmaker41
Sat Feb 16, 2019 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax 2018 Forms Now Online
Replies: 65
Views: 5609

Re: Vanguard Tax 2018 Forms Now Online

My taxable brokerage account assets consisted of the federal money market fund and some treasury bills. That seems to count as 'non-Vanguard' assets, since it is February 16 and no 1099-INT and 1099-DIV forms are available yet. I interpreted 'mid-February' as meaning next week.
by Rainmaker41
Sat Feb 16, 2019 8:00 am
Forum: Personal Investments
Topic: Partially recharacterize Roth IRA contribution for 2018
Replies: 14
Views: 737

Re: Partially recharacterize Roth IRA contribution for 2018

It is as though you had originally contributed to the Traditional IRA, so the earnings are retroactively kept there (not taxed). The conversion in the next step is different. In both cases you will get 2019, not 2018, forms. The recharacterization still counts as redoing the 2018 contribution though...
by Rainmaker41
Sat Feb 16, 2019 7:08 am
Forum: Personal Investments
Topic: Partially recharacterize Roth IRA contribution for 2018
Replies: 14
Views: 737

Re: Partially recharacterize Roth IRA contribution for 2018

Esssentially, yes. Call Vanguard during trading hours and ask them to recharacterize that dollar amount of your 2018 Roth contribution to Traditional. They will calculate the earnings or losses on your Roth IRA between the contribution date and now, and move today’s value of the recharacterized part...
by Rainmaker41
Sun Feb 10, 2019 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Newlyweds and joint accounts for household expenses
Replies: 120
Views: 6758

Re: Newlyweds and joint accounts for household expenses

I think it is important to ask what you are trying to achieve with whatever setup you use. This or that formal financial system is ultimately less important than the underlying household dynamics and communication. I think you should focus on long term plans and shared goals. The detailed mechanics ...
by Rainmaker41
Fri Feb 01, 2019 7:43 am
Forum: Personal Finance (Not Investing)
Topic: How much do you keep in checking?
Replies: 135
Views: 12266

Re: How much do you keep in checking?

We have checking and savings at Ally Bank (online). We keep 1 month of expenses in checking at the start of every month after credit cards are paid off from the prior month’s spending and before rent is paid. If needed we can instantly transfer money from savings to checking. We have another month o...
by Rainmaker41
Thu Jan 31, 2019 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Marriage "Benefits"
Replies: 108
Views: 10177

Re: Marriage "Benefits"

In our case, being married saved us over $1.2k in Federal income taxes in 2018 due to the Saver's Credit.

https://www.irs.gov/retirement-plans/pl ... ers-credit
by Rainmaker41
Sun Jan 06, 2019 6:20 pm
Forum: Investing - Theory, News & General
Topic: 2019 Hedge Fund Contest
Replies: 250
Views: 26429

Re: 2019 Hedge Fund Contest

Kitchen Table Economics Recession Fund

Long:

Walmart Inc - WMT
Dollar General Corp - DG

Short:

Apple - AAPL
STARBUCKS CORP - SBUX
by Rainmaker41
Sun Jan 06, 2019 10:22 am
Forum: Personal Finance (Not Investing)
Topic: What Do You Spend The Most On Annually?
Replies: 153
Views: 9570

Re: What Do You Spend The Most On Annually?

I calculate and report our family finances in reference to gross income. Gross income includes everything on W2s, adding back in deductions. Our categories are similar but they are not exactly the same. Here are the 2018 percentages: Retirement Savings (net of cash draw-down from budget "deficit") -...
by Rainmaker41
Sat Jan 05, 2019 5:51 pm
Forum: Personal Consumer Issues
Topic: Paying (paper) cash for daily transactions
Replies: 83
Views: 4265

Re: Paying (paper) cash for daily transactions

We try to do all spending through cashback/bonus credit cards (not debit cards for security reasons), although we have to use cash to load money onto a stored value laundry card for our apartment building. We keep $40 each in our wallets, plus another $20-$40 for the laundry card and $100 for emerge...
by Rainmaker41
Fri Jan 04, 2019 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: 2016 Tax Correction - Worth It? (Likely Investigation)
Replies: 12
Views: 1184

Re: 2016 Tax Correction - Worth It? (Likely Investigation)

Whether it is worth it depends on your family's financial situation. I don't know how the tax rules work, but in general I would strongly encourage you to investigate and be certain of what actions to do before you file any tax documents, report suspected tax fraud by others, etc. Can you go to your...
by Rainmaker41
Fri Jan 04, 2019 6:27 pm
Forum: Personal Investments
Topic: Interesting error: Vanguard taxable brokerage account settlement fund accrued dividend stalled IRA contribution
Replies: 7
Views: 680

Re: Interesting error: Vanguard taxable brokerage account settlement fund accrued dividend stalled IRA contribution

I guess Vanguard needs better systems. That is true, but I will also say as a 35 year IT and systems developer, that as a user, assume that system is not as smart as you and find ways to give it simple, discrete inputs to reduce error. That goes for any system. That makes sense to me. Learning from...