Search found 107 matches

by LITeacher
Thu Feb 04, 2021 10:45 am
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

So what is your opinion on this: Take 390,000 from the 614,000 and pay the mortgage off (2.875% interest) That leaves me with $216,000. Increase my 403b contributions from 4000 to the 19500 for the year (cash flow with my 216,000 if my paycheck runs too low, although I will no longer have the mortg...
by LITeacher
Wed Feb 03, 2021 5:18 pm
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

So what is your opinion on this: Take 390,000 from the 614,000 and pay the mortgage off (2.875% interest) That leaves me with $216,000. Increase my 403b contributions from 4000 to the 19500 for the year (cash flow with my 216,000 if my paycheck runs too low, although I will no longer have the mortg...
by LITeacher
Wed Feb 03, 2021 5:04 pm
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

A Roth 403b employee deferral (max $19.5k for 2021) is not the same thing as a 403b mega backdoor (MBD). The MBD, if allowed by your 403b plan, involves making after-tax (non Roth) 403b contributions (over and above your Traditional or Roth $19.5k employee deferral) that are either rolled over in-p...
by LITeacher
Wed Feb 03, 2021 4:59 pm
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

and slowly spend it on lifestyle inflation. I don't think that is the case here. True. I never really thought about it that way. By paying off the mortgage, how would you calculate my asset allocation at that point: 800K property 225K cash 450k retirement (with an 80/20 allocation) Or would you mak...
by LITeacher
Wed Feb 03, 2021 1:15 pm
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

By paying off the mortgage, how would you calculate my asset allocation at that point: 800K property 225K cash 450k retirement (with an 80/20 allocation) Or would you make the retirement accounts 100K stock because of the amount in equity? I don't count my home equity as part of my AA. Its part of ...
by LITeacher
Wed Feb 03, 2021 1:08 pm
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

No offense, it is a very nice gift but I wouldn't see it as life changing. Not in the sense that you should quit your job or increase your standard of living. The best option depends on your risk tolerance. Personally I would pay off the mortgage but you could also throw it in VTSAX. If you have th...
by LITeacher
Wed Feb 03, 2021 12:39 pm
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

No offense, it is a very nice gift but I wouldn't see it as life changing. Not in the sense that you should quit your job or increase your standard of living. The best option depends on your risk tolerance. Personally I would pay off the mortgage but you could also throw it in VTSAX. If you have th...
by LITeacher
Wed Feb 03, 2021 12:36 pm
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

No offense, it is a very nice gift but I wouldn't see it as life changing. Not in the sense that you should quit your job or increase your standard of living. The best option depends on your risk tolerance. Personally I would pay off the mortgage but you could also throw it in VTSAX. If you have th...
by LITeacher
Wed Feb 03, 2021 12:26 pm
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

Another vote for paying off the mortgage. In addition to being a 100% guaranteed 2.875% return on investment, which you can't get anywhere else, it is a nice legacy for whoever left it to you. Take a nice vacation after covid, and invest the rest. Direct future payments you would have made toward t...
by LITeacher
Wed Feb 03, 2021 12:21 pm
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

A Roth 403b employee deferral (max $19.5k for 2021) is not the same thing as a 403b mega backdoor (MBD). The MBD, if allowed by your 403b plan, involves making after-tax (non Roth) 403b contributions (over and above your Traditional or Roth $19.5k employee deferral) that are either rolled over in-p...
by LITeacher
Wed Feb 03, 2021 11:59 am
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

So in my case, you would do 19,500 to my 457, and then do 19,500 to my Roth 403b and then any remaining money (after contributing to Roth IRA etc) to taxable account? YES INDEED! :thumbsup Can I make a one-time contribution to a Roth 403b from a bank account? Or I have to do it with my paychecks?
by LITeacher
Wed Feb 03, 2021 11:57 am
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

My plan does allow for a Roth 403b. I've only contributed to a 403b through my paycheck and I'm only up to 4k a year (because I do 19,500 to my 457). Does it make more sense to increase the 4K to the 403b to 19500 also? Or should I look into the "mega backdoor?" I admit I am not familiar ...
by LITeacher
Wed Feb 03, 2021 11:32 am
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

My plan does allow for a Roth 403b. I've only contributed to a 403b through my paycheck and I'm only up to 4k a year (because I do 19,500 to my 457). Does it make more sense to increase the 4K to the 403b to 19500 also? Or should I look into the "mega backdoor?" I admit I am not familiar ...
by LITeacher
Wed Feb 03, 2021 9:18 am
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

Your first decision is whether or not to keep your inheritance in a separate account titled only in your name. Some options for allocating the funds are: - Increase your emergency fund temporarily while your wife is unemployed - Pay off your mortgage if you prefer to be mortgage free - Superfund yo...
by LITeacher
Tue Feb 02, 2021 9:04 pm
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4662

34(Him) and 33(Her) Portfolio Update - sizable inheritance

Current Liquid Cash: $614,000 (will explain more of this below) Debt : $388,000 mortgage @ 2.875% interest ($800,000 value) Tax Filing Status: Married Filing Jointly Income : His : ~$140,000 Hers : normally $95,000 but currently on unemployment (she is furloughed technically -- works in the Broadwa...
by LITeacher
Mon Jan 18, 2021 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Federal Estate Tax: Beneficiary passes mid-execution
Replies: 6
Views: 516

Re: Federal Estate Tax: Beneficiary passes mid-execution

If B died within 10 years of A's death (which is almost certain to be the case if B died before completing the administration of A's estate), there's an estate tax credit under Section 2013 for the tax on prior transfers. That will eliminate some or all of the estate tax in B's estate on B's inheri...
by LITeacher
Mon Jan 18, 2021 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Federal Estate Tax: Beneficiary passes mid-execution
Replies: 6
Views: 516

Re: Federal Estate Tax: Beneficiary passes mid-execution

retiringwhen wrote: Mon Jan 18, 2021 10:36 am Were person A and B spouses?
No - Person A was the brother-in-law to Person B.

Beneficiaries of Person B's estate (and secondary beneficiaries of Person A's estate) are two nieces and a nephew.
by LITeacher
Mon Jan 18, 2021 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Federal Estate Tax: Beneficiary passes mid-execution
Replies: 6
Views: 516

Federal Estate Tax: Beneficiary passes mid-execution

Hi! This is that situation going on in my family. Person A is worth $9million Person B is worth $5 million Person A passed in 2019 and left all his money to Person B. Person B has only transferred half of Person A's assets due to the number of accounts Person A had, making the new total: Person A Es...
by LITeacher
Tue Nov 17, 2020 8:10 am
Forum: Personal Finance (Not Investing)
Topic: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?
Replies: 124
Views: 7007

Re: What % of your Net Worth is Home Equity? What % is total value of RE relative to net worth?

We dont factor our home in our net worth. Never have, never will. Just curious as to why you don't calculate it in your net worth? I know that you're not the only one to do that, but even though a house may be more illiquid than a retirement account or a taxable account, if you and a renter had the...
by LITeacher
Mon Apr 20, 2020 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Cares Act Payroll Protection Program question ("un-furloughed")
Replies: 1
Views: 256

Cares Act Payroll Protection Program question ("un-furloughed")

Hi all, I had a question regarding the payroll protection program under the CARES act. My wife was furloughed on March 29th (she does marketing for Broadway shows - God knows when that is coming back :P ). Anyway, she's been on unemployment for the past few weeks, but her company just notified her t...
by LITeacher
Thu Apr 16, 2020 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: FFCRA Family and Medical Leave
Replies: 6
Views: 297

Re: FFCRA Family and Medical Leave

Wouldn’t I be entitled to at least unpaid FMLA since my son was born 7 months ago?
by LITeacher
Thu Apr 16, 2020 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: FFCRA Family and Medical Leave
Replies: 6
Views: 297

FFCRA Family and Medical Leave

Hi, I'm not sure if we have any labor attorneys on the forum who can help me decipher the new FFCRA Family and Medical Leave which says that an employee would be entitled to 2/3 pay (up to $200 a day) if their child's daycare was closed due to COVID-19. I am a teacher, and as far as I understand, pu...
by LITeacher
Sat Apr 11, 2020 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Dependent Care FSA
Replies: 8
Views: 316

Re: Dependent Care FSA

I am a teacher so we have the option to do the 5K by June, which I was doing because at 1600 monthly it was going to be easy to hit the 5k. I am in NYC so I have no idea what is going to happen with the daycares and schools (second wave, etc.). I am trying to think worst-case scenario so I don't los...
by LITeacher
Sat Apr 11, 2020 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Dependent Care FSA
Replies: 8
Views: 316

Re: Dependent Care FSA

My service provider says on their FAQs: Are application fees, agency fees and deposits paid for the care of a qualified individual eligible for reimbursement under a Dependent Care FSA? These expenses may be deemed eligible for reimbursement if and only if they are required to obtain the care and if...
by LITeacher
Sat Apr 11, 2020 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Dependent Care FSA
Replies: 8
Views: 316

Re: Dependent Care FSA

Does the money rollover to the next calendar year?
by LITeacher
Sat Apr 11, 2020 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Dependent Care FSA
Replies: 8
Views: 316

Dependent Care FSA

Hi everyone, My son is 7 months old and started daycare a little before 6 months. So far we have paid: $800 for 2 weeks in February $1600 for full March $600 deposit Questions: 1.) Does the deposit count when I do a dependent care FSA claim? 2.) I currently have $2900 in my dependent care FSA. If th...
by LITeacher
Sat Mar 28, 2020 9:04 am
Forum: Personal Investments
Topic: Corporate bond ladder for parents (can someone explain)
Replies: 1
Views: 165

Corporate bond ladder for parents (can someone explain)

My parents just sold their home- they are in their upper 60s. About 750k of their 1.1million portfolio is being managed by a wealth manager at Merrill Lynch. They have basically no money in stocks right now and the wealth manager felt that a corporate bond ladder would be better for them given the v...
by LITeacher
Sat Feb 01, 2020 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax form 709
Replies: 3
Views: 313

Gift tax form 709

Hi everyone, Two questions: 1- is the donor the only one who fills out form 709 if they gift over 15k to a person? Or does the recipient have to fill it out too? 2- is the 11.4 million limit for gift taxes separate from the estate tax limit? For instance if someone is worth 20 million, can they gift...
by LITeacher
Wed Jan 29, 2020 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Conservatorship? Not sure what to do...
Replies: 15
Views: 1273

Re: Conservatorship? Not sure what to do...

Well I guess the first question is does the friend want help? If so it's a much easier conversation that if you are trying to take control of his finances without his consent. My mom believes that her uncle thinks he has everything under control, but the attorney and wealth manager is saying it’s q...
by LITeacher
Tue Jan 28, 2020 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Conservatorship? Not sure what to do...
Replies: 15
Views: 1273

Conservatorship? Not sure what to do...

My mother (66) actually asked me to post on here. I'll try to write the details as succinctly as possible. My grandparents became best friends with a couple 70 years ago on their honeymoon. The couple had no kids and became part of our family. My mom, aunt, and uncle, are the sole beneficiaries of t...
by LITeacher
Sat Jan 11, 2020 11:48 am
Forum: Personal Investments
Topic: 529 Investment for Newborn (NY)
Replies: 5
Views: 612

529 Investment for Newborn (NY)

Hi everyone, My wife and I just had a baby four months ago. We saved $50/month in a 529 prior to our son's birth, so we had ~$2,500 in a 529 when he was born. We contributed an additional $10,000 in September when he was born for the 2019 tax year (we are in NYS), and we just contributed another $10...
by LITeacher
Fri Jan 03, 2020 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: NJ Inheritance Tax
Replies: 1
Views: 260

NJ Inheritance Tax

I was hoping someone could clarify something for me (I posted earlier about a large inheritance my mom, aunt, and uncle would be receiving). First, if someone dies in the state of Florida and leaves $10-12 million to three beneficiaries -- if one of three beneficiaries is a resident of New Jersey, d...
by LITeacher
Thu Jan 02, 2020 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Should my dad collect SS? (He's 69)
Replies: 10
Views: 1599

Re: Should my dad collect SS? (He's 69)

You don't think the 8% extra income is worth it? Especially if it means my mother would get the spousal benefit if my father passed?
by LITeacher
Thu Jan 02, 2020 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: Should my dad collect SS? (He's 69)
Replies: 10
Views: 1599

Should my dad collect SS? (He's 69)

Currently my mom collects 1100 and my dad collects 600ish on a restricted spousal application from my mom's benefit. They can afford bills for another year but it's certainly getting tight as this is their only income. My dad just turned 69 and can collect his SS benefit (which he's been postponing)...
by LITeacher
Wed Dec 25, 2019 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Investing - NY (Newborn)
Replies: 3
Views: 411

Re: 529 Investing - NY (Newborn)

So basically I should aim to CONTRIBUTE up to the State School Tuition, Room and Board, not try to aim for the total account balance to be State School Tuition, Room and Board?
by LITeacher
Wed Dec 25, 2019 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: 529 Investing - NY (Newborn)
Replies: 3
Views: 411

529 Investing - NY (Newborn)

Hi! My wife and I just recently had a baby (he's 3.5 months), and we are trying to start to save for college. I've read a lot of threads on Bogleheads and think the most popular opinion, and one I feel comfortable trying to do, is save up to a state school tuition, room and board in the 529. I am cu...
by LITeacher
Sat Dec 14, 2019 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Estate tax? Questions..
Replies: 13
Views: 1576

Re: Estate tax? Questions..

Thank you very much everyone. I've relayed the information. Unfortunately relative #1 seems to have days rather than weeks left so the estate is certainly not the top of the priority over the next couple of days. But I do appreciate the information from everyone to make sure that relative #2 and my ...
by LITeacher
Thu Dec 12, 2019 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Estate tax? Questions..
Replies: 13
Views: 1576

Re: Estate tax? Questions..

The federal gift and estate tax exemption is 11.4 million dollars this year and will be 11.58 million dollars in 2020. Neither New Jersey nor Florida has a state estate or inheritance tax. Now, the exemption is for a combination of life gifts and the estate. (Gifts, in this context, does not includ...
by LITeacher
Thu Dec 12, 2019 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Estate tax? Questions..
Replies: 13
Views: 1576

Estate tax? Questions..

Hi, My family has a couple of things going on and I was hoping you could help us understand a little about the current set up of two different estates (technically three). These questions come from the benefactors as they want to make sure the money is going to their heirs and not the government alt...
by LITeacher
Fri Nov 29, 2019 10:44 am
Forum: Investing - Theory, News & General
Topic: A time to EVALUATE your jitters
Replies: 443
Views: 430589

Re: A time to EVALUATE your jitters

I am 33 and wife 32. We just had a newborn. We have about 330k invested at 82/18 equities/bonds, and I am getting very jittery about our asset allocation. I haven’t really experienced a recession before with my portfolio because i had barely any investments during th last one. I’m considering going ...
by LITeacher
Tue Oct 22, 2019 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Anyone work in Compensation/Benefits? (Math teacher looking for a career switch)
Replies: 26
Views: 2310

Re: Anyone work in Compensation/Benefits? (Math teacher looking for a career switch)

The irony of a teacher wanting to leave the profession without taking a massive pay cut. Has this ever happened before? ; ) The other way around? Millions of times. Sorry OP, not poking fun at you or your situation. Signed, A teacher's spouse No offense taken, I’ve done quite a bit of research and ...
by LITeacher
Tue Oct 22, 2019 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Anyone work in Compensation/Benefits? (Math teacher looking for a career switch)
Replies: 26
Views: 2310

Re: Anyone work in Compensation/Benefits? (Math teacher looking for a career switch)

I guess the transition I mentioned isn’t a practical one then. NYSUT jobs are not very common to come by. I don’t think that will be practical for me. I haven’t looked at the national teacher organizations. It’s hard to feel stuck in a career because of the financial benefits. I’m currently doing my...
by LITeacher
Mon Oct 21, 2019 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone work in Compensation/Benefits? (Math teacher looking for a career switch)
Replies: 26
Views: 2310

Anyone work in Compensation/Benefits? (Math teacher looking for a career switch)

Hi everyone, I am hoping for career advice and am wondering if there is anyone that works in compensation and benefits? I have my Bachelor's Degree in Business and Mathematics, and I also have my Master's in Mathematics. I am currently a math teacher (for the past 10 years) and am becoming burnt out...
by LITeacher
Tue Feb 12, 2019 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: House Sale Question: Financing Contingency
Replies: 12
Views: 980

Re: House Sale Question: Financing Contingency

The appraisal becomes an issue when the lender is concerned about percentage financed. That isn't likely to be an issue here because of the small percentage being financed. There is never an obligation for a seller to lower their price due to a low appraisal. Obviously there is the desire to sell t...
by LITeacher
Tue Feb 12, 2019 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: House Sale Question: Financing Contingency
Replies: 12
Views: 980

House Sale Question: Financing Contingency

Hi, Can someone explain the following regarding a purchase of a home: Seller and Purchaser have an agreed upon price of a home for $460,000. Purchaser is planning on putting $310,000 down and financing the remaining $150,000 (so financing only about 33% of the value). The contract has a financing co...
by LITeacher
Wed Jan 23, 2019 4:37 pm
Forum: Personal Finance (Not Investing)
Topic: Disability Insurance
Replies: 6
Views: 594

Re: Disability Insurance

Bumping this back to the top- I would love some input!
by LITeacher
Tue Jan 22, 2019 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: Disability Insurance
Replies: 6
Views: 594

Disability Insurance

Do my wife and I need to purchase additional disability insurance than what our employers offer? We are both 32. I make around 108k a year and my wife around 95k a year. No kids yet, but will hopefully have in the near future. My wife's policy is as follows: https://i.imgur.com/9STroBr.png My policy...
by LITeacher
Thu Jan 03, 2019 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Loan to son for college with no interest
Replies: 39
Views: 4071

Re: Loan to son for college with no interest

You can loan up to $100K to a family member without interest. Is this correct? So father and mother could each loan 75k. Problem solved? Yes, but I should have included the caveats. The imputed interest is the lesser of the AFR or the borrowers net investment income and if the borrowers net invest ...
by LITeacher
Fri Oct 19, 2018 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Depositing Cash if it was gifted?
Replies: 113
Views: 7795

Re: Depositing Cash if it was gifted?

Thanks for so many replies. I had gone to bed last night and the went right to work today so I haven’t seen all the replies until logging in now! Some interesting discussions here for sure. After reading them all, I think I am going to have my grandmother deposit all of her money and simply write a ...