Search found 265 matches

by fyre4ce
Wed Nov 13, 2019 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Math/excel help -present value, future value, inflation
Replies: 2
Views: 238

Re: Math/excel help -present value, future value, inflation

In general, the best way to account for inflation is to just subtract the predicted inflation rate from the nominal investment return, to get a real return. Doing that will adjust investment performance, tax bracket creep, and contribution size all for inflation; your analysis will be entirely in re...
by fyre4ce
Thu Nov 07, 2019 8:26 pm
Forum: Personal Investments
Topic: May need to move 401k money by end of year, but not eligible for new 401k until February
Replies: 27
Views: 1376

Re: May need to move 401k money by end of year, but not eligible for new 401k until February

Have you made any conversions in 2019 yet? If not, this is not a problem. Just do your next Roth conversion in 2020. You can make your 2019 non deductible contribution in either 2019 or before the April tax filing deadline in 2020. Not yet. But if I have an IRA balance on December 31st, 2019 from m...
by fyre4ce
Thu Nov 07, 2019 7:57 pm
Forum: Personal Investments
Topic: May need to move 401k money by end of year, but not eligible for new 401k until February
Replies: 27
Views: 1376

Re: May need to move 401k money by end of year, but not eligible for new 401k until February

I think your options are: 1) Rollover to a tIRA this year, and then either not do a Backdoor Roth IRA, or just eat the tax bill on the conversion if you already have. 2) If you can generate any 1099 income, open a Solo 401k and use that as a temporary holding account. It's a bit of extra work, but t...
by fyre4ce
Tue Nov 05, 2019 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Pay down 7% 403b loan or 3.74% car loan first?
Replies: 38
Views: 2032

Re: Pay down 7% 403b loan or 3.74% car loan first?

403b loan is 12.5k at 7% over 30 years. I currently max contributions and I'm told that they wont call the loan if i leave my job. No additional fees. Car loan is 39k at 3.74% over 5 years. The bigger principal on the car means im paying way more interest per month right now. Also the interest for ...
by fyre4ce
Mon Nov 04, 2019 3:46 pm
Forum: Personal Consumer Issues
Topic: Wife's car hit in a parking lot - how to deal with various issues?
Replies: 51
Views: 3663

Re: Wife's car hit in a parking lot - how to deal with various issues?

New information in the last five minutes - Whole new/different story - my wife just got another body shop estimate - over $5,000 because that place saw or found lot more damage beyond just the door. $5k is over the value of the car. Unless something else comes to light - I guess I start looking for...
by fyre4ce
Fri Nov 01, 2019 7:54 pm
Forum: Personal Investments
Topic: Self Employment Contributions to 401K
Replies: 3
Views: 243

Re: Self Employment Contributions to 401K

Do you have a C or S corporation? Some of the things you're saying seem to imply a non pass-through business.
by fyre4ce
Thu Oct 31, 2019 4:34 pm
Forum: Personal Consumer Issues
Topic: Halloween Candy - Favorites; Throw it in the Bag
Replies: 61
Views: 3237

Re: Halloween Candy - Favorites; Throw it in the Bag

livesoft wrote:
Thu Oct 31, 2019 4:28 pm
Trader Joe's Pound-Plus chocolate bars.
:mrgreen:
by fyre4ce
Wed Oct 30, 2019 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Solo401k Contributions
Replies: 11
Views: 602

Re: Solo401k Contributions

OK, got it, thanks!
by fyre4ce
Wed Oct 30, 2019 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Solo401k Contributions
Replies: 11
Views: 602

Re: Solo401k Contributions

My understanding isn't quite matching the Mike Piper calculator. Example: Assume $30,000 net business earnings (revenue minus deductible expenses). SE tax is $4,238.87, and half SE tax is $2,119.43. So, net business earnings minus 1/2 SE tax is $27,880.57. I thought you are allowed to contribute $19...
by fyre4ce
Tue Oct 29, 2019 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: California Fires: Landlord/Tenant Question
Replies: 71
Views: 4119

Re: California Fires: Landlord/Tenant Question

Not a lawyer, but... The OP does have a point. The fact that the power outage isn’t the landlord’s fault is relevant, but does not completely settle the issue. What if the fire, clearly not caused by the landlord, burned the whole apartment to the ground? Would the tenants still be responsible for p...
by fyre4ce
Tue Oct 29, 2019 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: Solo401k Contributions
Replies: 11
Views: 602

Re: Solo401k Contributions

Do you have a 401k at your W2 job, and if so, have you already or will you contribute $19k to it? If so, your solo 401k contributions will be limited. You only get one $19k elective deferral per year, regardless of how many jobs and 401ks you have. If so, you’ll only be able to contribute 20% of net...
by fyre4ce
Tue Oct 29, 2019 6:31 pm
Forum: Personal Investments
Topic: Solo Roth 401k contributions after 70.5 and RMDs. How does this work?
Replies: 16
Views: 676

Re: Solo Roth 401k contributions after 70.5 and RMDs. How does this work?

The previous year-end balance determines the following year's RMD, not the current year. This is why your need to rollover the entire balance in the year before the year you turn 70.5 and then every year. Remember, what matters is the 12/31 balance, not when a given tax year's contributions are mad...
by fyre4ce
Tue Oct 29, 2019 3:39 pm
Forum: Personal Investments
Topic: Solo Roth 401k contributions after 70.5 and RMDs. How does this work?
Replies: 16
Views: 676

Re: Solo Roth 401k contributions after 70.5 and RMDs. How does this work?

Every mainstream low-cost prototype one participant 401k plan; E-Trade, Fidelity, Schwab, TD Ameritrade and Vanguard allow in-service withdrawals/rollovers at age 59.5. There is no need for a custom plan. You will want to rollover the main balance at least one year prior to the year you turn age 70...
by fyre4ce
Tue Oct 29, 2019 1:34 pm
Forum: Personal Investments
Topic: Solo Roth 401k contributions after 70.5 and RMDs. How does this work?
Replies: 16
Views: 676

Re: Solo Roth 401k contributions after 70.5 and RMDs. How does this work?

I looked into this recently and concluded that RMDs are required for a Solo 401k, both pre-tax and Roth, after age 70.5, even while working. It looks like the rules are different for Solo 401k vs. 401k at a larger employer. I concluded it might still be worth it because the RMD would effectively re...
by fyre4ce
Tue Oct 29, 2019 1:27 pm
Forum: Personal Investments
Topic: Solo Roth 401k contributions after 70.5 and RMDs. How does this work?
Replies: 16
Views: 676

Re: Solo Roth 401k contributions after 70.5 and RMDs. How does this work?

I don’t believe any prototype Solo 401k plan allows in-service rollovers to a Roth IRA. A custom plan (for a fee) can have that feature. Do you know of any custom 401k plans that allow in-service rollovers into a Roth IRA? I think the Mega Backdoor can be done with either in-plan Roth conversions (...
by fyre4ce
Tue Oct 29, 2019 10:08 am
Forum: Personal Investments
Topic: Solo Roth 401k contributions after 70.5 and RMDs. How does this work?
Replies: 16
Views: 676

Re: Solo Roth 401k contributions after 70.5 and RMDs. How does this work?

I looked into this recently and concluded that RMDs are required for a Solo 401k, both pre-tax and Roth, after age 70.5, even while working. It looks like the rules are different for Solo 401k vs. 401k at a larger employer. I concluded it might still be worth it because the RMD would effectively red...
by fyre4ce
Sat Oct 26, 2019 10:16 pm
Forum: Personal Investments
Topic: SEP IRA vs Backdoor Roth
Replies: 9
Views: 436

Re: SEP IRA vs Backdoor Roth

E*Trade's Solo 401k is indeed very good. They also recently added in a bunch of low cost Schwab mutual funds. If you would like more opportunities to save, you could consider getting a Solo 401k that supports the Mega Backdoor Roth (MBR). If you make $100k in your locums job (after subtracting 1/2 S...
by fyre4ce
Sat Oct 26, 2019 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Is principal portion of mortgage counted for savings rate purposes?
Replies: 126
Views: 6664

Re: Is principal portion of mortgage counted for savings rate purposes?

I find it helpful to think in terms of "wealth-building." Anything that increases the value of assets or decreases the value of liabilities (eg. pays off a debt) is building wealth. Under this definition, paying down a mortgage, either as an extra payment, or just the principal part of PITI payments...
by fyre4ce
Sat Oct 26, 2019 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Is principal portion of mortgage counted for savings rate purposes?
Replies: 126
Views: 6664

Re: Is principal portion of mortgage counted for savings rate purposes?

The same goes for buying a car. The buying the car event isn't a spending event. It has no net impact on net worth. You are trading one asset (cash) for another asset (a car) and debt if you took a loan. The spending comes from the operating cost of the car which includes the depreciation of the as...
by fyre4ce
Fri Oct 25, 2019 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Part time job (20h/wk) - how to shield income from taxes?
Replies: 36
Views: 2294

Re: Part time job (20h/wk) - how to shield income from taxes?

I was being a bit cryptic. My main point was, you have five years (in my example; or as many years as you are deferring) to think about how to get out of that predicament, or mitigate its effects. Once it is gone, it is gone forever. But if you have it deferred, if you happen to get laid off, or fo...
by fyre4ce
Fri Oct 25, 2019 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Part time job (20h/wk) - how to shield income from taxes?
Replies: 36
Views: 2294

Re: Part time job (20h/wk) - how to shield income from taxes?

You are not really shielding them from anything, but only postponing it to a later date. Gov will get their taxes one way or another. If a robber comes to your home and tells you "I can take your stuff today, or I can come back in 5 years and take them away", what would you say? Putting aside the t...
by fyre4ce
Thu Oct 24, 2019 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Part time job (20h/wk) - how to shield income from taxes?
Replies: 36
Views: 2294

Re: Part time job (20h/wk) - how to shield income from taxes?

I've never held a part-time job and had no idea what a 1099 is. Brief explanation - the IRS requires one of the parties in a work-for-pay situation to act as the "business". The "business" party gets a lot of freedom in deducting work-related expenses, and also gets the choice of retirement account...
by fyre4ce
Thu Oct 24, 2019 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Part time job (20h/wk) - how to shield income from taxes?
Replies: 36
Views: 2294

Re: Part time job (20h/wk) - how to shield income from taxes?

Now she'll be getting it all as cash and I expect that income will be taxed heavily when we file our joint return. Is it not her obligation to pay the correct amount of taxes on the income she earned? The rest of us pay our taxes. I don't think he was proposing tax evasion, just deferring taxes to ...
by fyre4ce
Thu Oct 24, 2019 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Part time job (20h/wk) - how to shield income from taxes?
Replies: 36
Views: 2294

Re: Part time job (20h/wk) - how to shield income from taxes?

Will continue to search for a job with a 401k. Want to make sure a key point doesn't get missed here - if she gets paid on a 1099, she can open a Solo 401k and put away $19,000 (assume under age 50) plus 20% of net business income. This should be a question that could be easily answered by talking ...
by fyre4ce
Thu Oct 24, 2019 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Part time job (20h/wk) - how to shield income from taxes?
Replies: 36
Views: 2294

Re: Part time job (20h/wk) - how to shield income from taxes?

I make 200k/year. I max my own 401k and HSA. Your $200k and her $21k = $221k Subtracting your $19k 401k contribution does not get you under the $193k MAGI for her contribution to tIRA to be deductible. That eliminates that approach. Also subtract $7,000 for HSA, and possibly other above-the-line de...
by fyre4ce
Thu Oct 24, 2019 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Part time job (20h/wk) - how to shield income from taxes?
Replies: 36
Views: 2294

Re: Part time job (20h/wk) - how to shield income from taxes?

Is your combined income low enough to qualify for tax advantaged traditional IRA contributions? It wouldn't matter in this case, because she doesn't have access to a retirement account at work. It does matter if her spouse is covered by a plan at work and the joint MAGI is greater than $193k. I gue...
by fyre4ce
Thu Oct 24, 2019 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Part time job (20h/wk) - how to shield income from taxes?
Replies: 36
Views: 2294

Re: Part time job (20h/wk) - how to shield income from taxes?

Is your combined income low enough to qualify for tax advantaged traditional IRA contributions? It wouldn't matter in this case, because she doesn't have access to a retirement account at work. She will gross 20*52*$20=$20,800, and a tIRA will allow her to shelter $6000 (29%) or $7000 (34%) of the ...
by fyre4ce
Tue Oct 22, 2019 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone used MySolo401k.com, DiscountSolo401k.com, or Solo401k.com?
Replies: 110
Views: 5830

Re: Has anyone used MySolo401k.com, DiscountSolo401k.com, or Solo401k.com?

I am one of the "warn-ers". My warning is only for the mega back door Solo 401k (so far). This is because I think most ordinary solo 401k users are using mainstream plan providers that also do plan administration. This could be complete ignorance on my part, but that is how I currently understand i...
by fyre4ce
Tue Oct 22, 2019 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone used MySolo401k.com, DiscountSolo401k.com, or Solo401k.com?
Replies: 110
Views: 5830

Re: Has anyone used MySolo401k.com, DiscountSolo401k.com, or Solo401k.com?

This thread has contained some strong warnings from some very respected community members (Spirit Rider, tfb) about the Solo 401k, and the recommendation to hire a "real" Third Party Administrator (like Ascensus, but evidently not any of the businesses listed in the original post). To be crystal-cle...
by fyre4ce
Wed Oct 16, 2019 3:06 pm
Forum: Investing - Theory, News & General
Topic: Asset location for commodities
Replies: 16
Views: 1126

Re: Asset location for commodities

I appreciate the advice that commodities are not a good investment in general, but I'm trying to set that aside for the purposes of this thread, and asking more, in theory, what is the best location (not al location) for commodity assets - I don't understand this line of thinking. If you agree that...
by fyre4ce
Tue Oct 15, 2019 11:55 am
Forum: Investing - Theory, News & General
Topic: Asset location for commodities
Replies: 16
Views: 1126

Re: Asset location for commodities

I appreciate the advice that commodities are not a good investment in general, but I'm trying to set that aside for the purposes of this thread, and asking more, in theory, what is the best location (not al location) for commodity assets - basically asking whether taxable or tax-advantaged accounts ...
by fyre4ce
Mon Oct 14, 2019 5:04 pm
Forum: Investing - Theory, News & General
Topic: Asset location for commodities
Replies: 16
Views: 1126

Asset location for commodities

I haven't seen this question answered in the forum or wiki, so I'll ask it here. What is the preferred asset location for commodities? It seems to me that a low-yield low-return high-volatility asset is perfect for a taxable account, where gains are taxable at a reduced rate and losses can be readil...
by fyre4ce
Thu Oct 03, 2019 12:34 pm
Forum: Personal Investments
Topic: Employer Matching for 401K - Dilemma - switching to a different Employer
Replies: 13
Views: 728

Re: Employer Matching for 401K - Dilemma - switching to a different Employer

Another option to consider: explain the situation to your hiring manager and ask for a raise in your new salary, equal to the amount of matching you'll miss out on. It won't be tax-protected, but you will get that amount annually as opposed to the one year of matching. Even if they'd agree to a frac...
by fyre4ce
Wed Sep 18, 2019 12:28 am
Forum: Personal Finance (Not Investing)
Topic: Opening retirement accounts after age 70
Replies: 7
Views: 995

Re: Opening retirement accounts after age 70

I agree that IRAs will have an advantage for estate planning, but this depends on living and working long enough to get a significant amount of money in there. I would suggest moving funds into a Roth IRA only so as to not pass on a tax obligation to the heirs. For one thing, I don't believe you ca...
by fyre4ce
Tue Sep 17, 2019 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Opening retirement accounts after age 70
Replies: 7
Views: 995

Re: Opening retirement accounts after age 70

Your friend doesn’t sound like tax-deferred accounts would be of any benefit to him as he/she is already in a low tax bracket. But Roth IRAs would be good since the same taxes would be paid whether he put the money into taxable or into Roth. Then the Roth account can grow tax-free. Of course, he al...
by fyre4ce
Tue Sep 17, 2019 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Opening retirement accounts after age 70
Replies: 7
Views: 995

Re: Opening retirement accounts after age 70

One area where health comes into play would be realizing the capital gains in the taxable account. If he had a short life expectancy I would recommend holding onto those unrealized gains, although the capital loss doesn't pass to heirs so it would be good to at least cancel out $50k of gains by usin...
by fyre4ce
Mon Sep 16, 2019 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Opening retirement accounts after age 70
Replies: 7
Views: 995

Opening retirement accounts after age 70

A friend of mine is in his early 70's, living in a moderate income tax state, has worked consulting for a long time as a sole proprietor, and continues to work with an expected retirement around age 80. He's never used tax-advantaged accounts, which I think was a mistake. Annual net business income ...
by fyre4ce
Wed Sep 11, 2019 11:48 am
Forum: Personal Consumer Issues
Topic: Need ideas for NY Upstate Getaway
Replies: 48
Views: 3168

Re: Need ideas for NY Upstate Getaway

Depends on what you're looking for, but there are some good options. I like outdoorsy stuff, like hiking and backpacking. I was going to recommend the Adirondacks and Lake Placid area, but fair point on excessive driving. The Catskills would be a closer alternative. Never hiked there but I have a fr...
by fyre4ce
Thu Sep 05, 2019 10:39 am
Forum: Personal Consumer Issues
Topic: How to help niece improve her driving
Replies: 94
Views: 6041

Re: How to help niece improve her driving

Have her look into local autocrosses. Great advice which I take to mean: Have her go out and kill herself driving. Problem solved. You have reported that at least one of your children totaled a car. Was that a problem? How was it solved? This comment seems ridiculous to me. I was going to suggest s...
by fyre4ce
Fri Aug 23, 2019 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Getting equity out of home
Replies: 18
Views: 1792

Re: Getting equity out of home

I’m pretty sure I know the answer to this question but maybe I’m missing something. We bought our condo for cash in 2010 at the depths of the housing crisis - a rare bit of good timing. Since then the value has grown to where the equity in the condo represents about 1/3 of our net worth. We’d love ...
by fyre4ce
Wed Aug 14, 2019 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: I really do not like using credit cards. Do any of you have a good credit score with no credit cards?
Replies: 247
Views: 6950

Re: Does anyone here have no credit cards? How is that working out for you? Do you have any trouble without them?

fortfun wrote:
Sun Aug 11, 2019 6:23 pm
We'd give up a free 5k worth of bonuses per year if we gave up CCs. So, I'll keep using them for that reason alone. Not to mention all the protections that are built in.
Geez. Just curious, but how much do you charge per year? At 2%, that would be $250k of annual charges.
by fyre4ce
Wed Aug 14, 2019 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: Rent vs. Buy - Running the numbers, what am I missing?
Replies: 55
Views: 4184

Re: Rent vs. Buy - Running the numbers, what am I missing?

You should include transaction costs in your list of house costs. They are one-time, but there are costs for buying and selling. I like to calculate two separate numbers for a house cost - a total cash flow, which includes everything you listed (except opportunity cost) and especially the total mort...
by fyre4ce
Tue Aug 13, 2019 3:55 pm
Forum: Personal Investments
Topic: Paying current taxes vs continued high expenses
Replies: 32
Views: 2018

Re: Paying current taxes vs continued high expenses

I did some math, and the break-even period is 15 years, if you are going to leave the funds as part of your estate or donate them to charity, or 5 years if you are going to use the money yourself. In other words, you'll be better off holding the current active funds if you expect you'll bequeath or ...
by fyre4ce
Mon Aug 12, 2019 5:59 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 419
Views: 19754

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

A bias to conservatism is common (Ramsey-esque 12% returns notwithstanding). A recent example, 401K - Did I make the wrong choice? Looking to retire in 10 years. discusses this from “the game theory aspect and the utility value aspect.” Only have time to hit on one point today. Agreed that a bias t...
by fyre4ce
Mon Aug 12, 2019 1:49 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 419
Views: 19754

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

For here, I think the better approach is to click on the "edit" button for the July 4, 2019 version. Then, copy the content into the Bogleheads:Sandbox . Make changes, undo, change again until you're done. You'll keep a complete history of the changes and can revert anything that goes awry. When yo...
by fyre4ce
Mon Aug 12, 2019 1:26 am
Forum: Personal Finance (Not Investing)
Topic: How should my Spouse and I handle a $300,000 Settlement?
Replies: 119
Views: 7308

Re: How should my Spouse and I handle a $300,000 Settlement?

I disagree with everyone who says the money is her money, they should manage finances separately. The two of you should be partners in every way, including financially. You guys need a written financial plan, and need to stick to it. That plan needs to include you guys saving 20% of your gross incom...
by fyre4ce
Sat Aug 10, 2019 1:57 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 419
Views: 19754

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

Comments regarding the t vs. R article. Article scope: narrow vs. broad Shades of gray here between “any content that doesn’t fall under the article’s title should be excluded” vs. “all content peripherally related to the article’s title should be included.” At minimum, it seems content that might ...
by fyre4ce
Sat Aug 10, 2019 12:55 am
Forum: Personal Finance (Not Investing)
Topic: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles
Replies: 419
Views: 19754

Re: Seeking comment on proposed revisions to Marginal Tax Rate and Traditional v. Roth wiki articles

You are correct, we don't know for sure why people describe describe marginal rate a certain way. A reasonable guess would be "because many others do, so people parrot it without thinking." <emphasis added> Regardless, emphasizing "change" remains helpful in this context. Possibly, although to some...
by fyre4ce
Tue Aug 06, 2019 2:29 pm
Forum: Investing - Theory, News & General
Topic: Does solo 401k contribution count as a wage?
Replies: 8
Views: 644

Re: Does solo 401k contribution count as a wage?

I'm interpreting your question as: Is it better to contribute $19k elective deferral from your wages and $37k ($56k minus $19k) from the employer, or all $56k from the employer? Here are the differences I'm aware of: -You can only contribute 25% of your wages as employer matching, so you'd need at l...
by fyre4ce
Tue Aug 06, 2019 12:35 am
Forum: Personal Finance (Not Investing)
Topic: Paying spouse from an S-corp
Replies: 6
Views: 609

Re: Paying spouse from an S-corp

Thanks, again, for your expertise!