Search found 55 matches

by solobuildingblogs
Sun Nov 11, 2018 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Doing taxes by hand
Replies: 83
Views: 4803

Re: Doing taxes by hand

Did taxes by hand until two years ago when I started using freeusatax and credit karma to check the numbers. Yes, I can explain to you exactly how the AMT works, PEP and PEASE, and multiple nuances in the tax code. Started my own medical practice few years ago and almost gave up, but learned how to ...
by solobuildingblogs
Fri Oct 05, 2018 1:49 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 3000
Views: 589087

Re: What's Your Credit Card Rewards Strategy?

Especially if you already have the Amex business platinum or Amex Schwab platinum, get the revamped Amex gold personal card. It’s now 4 points per dollar for restaurants and supermarkets. Converting to cash with the Amex Schwann at a 1.25 multiplier that’s 5% back. Redeeming for airfare in the airli...
by solobuildingblogs
Fri Aug 10, 2018 1:37 am
Forum: Personal Finance (Not Investing)
Topic: Should I apply for United Explorer MileagePlus Card? Is it worth it in my situation?
Replies: 45
Views: 2242

Re: Should I apply for United Explorer MileagePlus Card? Is it worth it in my situation?

1. Getting the card simply for the signup bonus is a no brainer as the 60,000 miles are worth $720, outweighing the annual fee of $95. You could also consider other chase cards particularly business cards first to stay under the 5/24 rule, to get as many chase cards approved as possible. 2. One thin...
by solobuildingblogs
Fri Aug 03, 2018 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a Boglehead way of running a business?
Replies: 19
Views: 2196

Re: Is there a Boglehead way of running a business?

Second to last paragraph explains (as everyone else says above) why C Corp is usually not a good idea: https://solobuildingblogs.com/2017/12/31/how-the-new-tax-law-affects-solo-practice-doctors/ Yes you can run a medical practice the “boglehead” way. I do my own bookkeeping, retirement plan (SEP IRA...
by solobuildingblogs
Sun Jul 15, 2018 12:50 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 3000
Views: 589087

Re: What's Your Credit Card Rewards Strategy?

I got the targeted Amex gold premier without the once in a lifetime language. I cancelled the card a few years ago. The bonus just posted last week. The same thing happened to me last December with the Amex delta gold. I got the signup bonus for the third time on this targeted offer without once in ...
by solobuildingblogs
Sun Jul 15, 2018 12:46 am
Forum: Personal Finance (Not Investing)
Topic: Taxes and sole proprietorship
Replies: 9
Views: 826

Re: Taxes and sole proprietorship

If your income is gonna be that low, consider a mega Roth conversion of your SEP IRA, or if you’re sitting on capital gains and want to reset your basis and can stay in the zero bracket consider these tax moves.
by solobuildingblogs
Sat Jun 23, 2018 12:44 am
Forum: Personal Finance (Not Investing)
Topic: SEP v SIMPLE - Higher Employee Cost but Offset by Tax Savings?
Replies: 31
Views: 1825

Re: SEP v SIMPLE - Higher Employee Cost but Offset by Tax Savings?

If you hav a old 401K (from a job, or I believe a schwab but not vanguard solo 401K allows as such) that allows incoming transfers from SEP IRA, you can still do a backdoor roth by doing such transfer to reduce you basis in IRAs to zero. For simple IRA you have to wait for two years before moving fu...
by solobuildingblogs
Thu Jun 07, 2018 1:06 am
Forum: Personal Finance (Not Investing)
Topic: Leave Job (Philly) and move To Arizon (Phoenix)?
Replies: 67
Views: 5523

Re: Leave Job (Philly) and move To Arizon (Phoenix)?

Respectfully, the AZ central article linked above... only four Fortune 500 companies are headquartered in AZ and the highest number rank is 108. You’d expect the average state to have 10 of the 500 headquartered In any given state, and one in the top 50. But i hear what you’re saying, yes there are ...
by solobuildingblogs
Tue Jun 05, 2018 12:32 am
Forum: Personal Finance (Not Investing)
Topic: Leave Job (Philly) and move To Arizon (Phoenix)?
Replies: 67
Views: 5523

Re: Leave Job (Philly) and move To Arizon (Phoenix)?

Very interesting discussion. I grew up and went to school in Philly and now live in Phoenix. 1. What do you do? For professionals there are probably more opportunities in Philly. The only SP500 company here is Freeport McMoran. In my situation I am a physician in private practice and Phoenix is less...
by solobuildingblogs
Sat Jun 02, 2018 12:28 am
Forum: Personal Finance (Not Investing)
Topic: AADvantage Aviator RedWorld Elite MC
Replies: 8
Views: 674

Re: AADvantage Aviator RedWorld Elite MC

Barclays has become stingier lately. Although I’ve gotten the card three times over five years. If you don’t live in an AA hub city, good luck finding saver award space. It’s very difficult. The best use for Aa Miles is to fly Cathay pacific or JAL business class if you can find award space. Only 70...
by solobuildingblogs
Sun May 20, 2018 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Any use in keeping Alaska Airlines card ?
Replies: 8
Views: 1496

Re: Any use in keeping Alaska Airlines card ?

I think most banks give 30 to 60 days from when fee hits to cancel it. At any rate you can get another companion certificate simply by re applying for the card again.
by solobuildingblogs
Sun May 20, 2018 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Financial times: Wealthfront's experiment in risk parity has a rocky start
Replies: 14
Views: 2025

Re: Financial times: Wealthfront's experiment in risk parity has a rocky start

I read Jason Zweig’s article linked above in yesterday’s WSJ. The last sentence said something like, even if you have a roboadvisor you still need to keep a watch on what they’re doing. The 2% “fee” expense is not included when wealthfront advertises their costs. The article states up to 20% of what...
by solobuildingblogs
Tue May 08, 2018 11:44 pm
Forum: Personal Finance (Not Investing)
Topic: Best cash-back credit card right now?
Replies: 42
Views: 5626

Re: Best cash-back credit card right now?

Like other posters have said, if you have $100K parked in merrill edge/ B of A the premium rewards from B of A gets 2.625% back, 3.5% on restaurants. One card that hasn't been mentioned yet is the US Bank altitude reserve. One of most underrated cards. 4.5% back on travel (even Uber works) and Apple...
by solobuildingblogs
Tue Apr 24, 2018 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: Any use in keeping Alaska Airlines card ?
Replies: 8
Views: 1496

Re: Any use in keeping Alaska Airlines card ?

Don't keep it- but wait until your annual companion certificate hits your account before cancelling. Then churn the card- three months after cancelling apply for a new one, spend and get initial bonus and another certificate. Only exception is if you fly Alaska a lot and check a bag- free checked ba...
by solobuildingblogs
Tue Apr 24, 2018 11:52 pm
Forum: Personal Finance (Not Investing)
Topic: Smart or Stupid? Paying taxes with credit card to satisfy minimum spending requirements.
Replies: 28
Views: 3101

Re: Smart or Stupid? Paying taxes with credit card to satisfy minimum spending requirements.

Definitely smart to spend to get the initial bonus. This way you don't have to keep track of how much you spend, possiblity of missing initial spend to get bonus. Almost ALL initial sign up bonuses easily justify the card. If you are getting 50,000 airline miles, that's worth about $600-700. For a $...
by solobuildingblogs
Wed Apr 04, 2018 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: How did you file your income taxes?
Replies: 77
Views: 6177

Re: How did you file your income taxes?

Until last year, I did my taxes by hand (even form 6521 for AMT), including business taxes, even calculated depreciation by hand. It made me learn every nuance of the tax laws and how to minimize taxes. Last year I gave in and finally used credit karma to run the calculations (the software is very f...
by solobuildingblogs
Wed Apr 04, 2018 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: medical practice reimbursement issues
Replies: 35
Views: 3098

Re: medical practice reimbursement issues

to answer the original poster's question, there are SO many ways a practice owner can screw over an associate on bonus based on percent of collections; 1. Accidentally by poor collections practice- not collecting patient responsibilites at time of service, inappropriate or missed coding/ accidental ...
by solobuildingblogs
Tue Apr 03, 2018 12:24 am
Forum: Personal Consumer Issues
Topic: Maximizing airlines miles or rewards points
Replies: 6
Views: 1224

Re: Maximizing airlines miles or rewards points

Combine the Chase ink preferred (1.5 cents travel per point) with chase ink cash (5 points on certain categories) to get equivalent of up to 7.5% back on cell phones, utilities, office supply stores. Combine Amex business platinum (35% back when redeemed for travel on chosen airline, or 1.54 cents p...
by solobuildingblogs
Sun Apr 01, 2018 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up a SEP IRA for a Single Member LLC
Replies: 4
Views: 631

Re: Setting up a SEP IRA for a Single Member LLC

It doesn’t matter if single member LLC, technically it is a employer contribution so I suppose it should come from business account. The deduction is taken form 1040 line 28. Just phone fidelity or Vanguard and you fill out a form 5305. They’ll walk you through it. Tip: if you have a 401k that accep...
by solobuildingblogs
Sun Apr 01, 2018 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Would appreciate some advice on opening a medical practice...
Replies: 14
Views: 1620

Re: Would appreciate some advice on opening a medical practice...

Oh and the very LAST thing I would do is to hire a consultant. How do you know what they’re doing? It’s kind of like (most) financial advisors (except for hourly ones that are your fiduciary)- you overpay for what you get. Here’s our opinion on consultants: https://solobuildingblogs.com/2017/08/31/c...
by solobuildingblogs
Sun Apr 01, 2018 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Would appreciate some advice on opening a medical practice...
Replies: 14
Views: 1620

Re: Would appreciate some advice on opening a medical practice...

We’re writing a entire blog about the process of how to open a practice. https://solobuildingblogs.com/2017/09/02/steps-to-start-a-medical-practice/ because I don't want to retype the 80 plus posts we have so far on this thread. As an ophthalmologist I was profitable in month 3. I definitely don’t a...
by solobuildingblogs
Sat Mar 03, 2018 1:56 am
Forum: Personal Consumer Issues
Topic: Duke University TIP Program Questions
Replies: 15
Views: 1525

Re: Duke University TIP Program Questions

This was many years ago but I went to johns hopkins CTY. Felt courses were good supplement to my high school (which was reasonably challenging public school). One summer I did a precalculus book in two weeks and five chapters of calculus in a week. This let me place out and take calculus 3/ differen...
by solobuildingblogs
Sat Mar 03, 2018 1:49 am
Forum: Personal Finance (Not Investing)
Topic: New Amazon Prime card, no annual fee, 5%(!) back on Amazon purchases
Replies: 80
Views: 13039

Re: New Amazon Prime card, no annual fee, 5%(!) back on Amazon purchases

If you have the US Bank Altitude Reserve card you get 4.5% back on apple pay and can use apple pay at whole foods, almost equivalent of the 5% back on whole foods. At whole foods you can buy amazon gift cards to use on amazon effectively getting 4.5% back. Of course this is a slight hassle and doesn...
by solobuildingblogs
Sat Mar 03, 2018 1:42 am
Forum: Personal Finance (Not Investing)
Topic: AmEx Delta Gold is now Honoring Bonus
Replies: 87
Views: 10401

Re: AmEx Delta Gold Not Honoring Bonus

As a data point, I have obtained sign up bonus on Delta AMEX gold twice before the once in a lifetime rule. In December 2017 I received a flyer in the mail offering me 70,000 Delta points for $3000 spend on Delta amex gold. Nowhere was there language stating that if I received the offer before that ...
by solobuildingblogs
Sat Feb 24, 2018 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Home Warranty Paid by the Seller
Replies: 17
Views: 1492

Re: Home Warranty Paid by the Seller

My suspicion (correct me if wrong) is that realtors get a financial incentive for selling a home warranty. Agree that you should negotiate it in and then change it to a cash credit. I got "lucky" with my first house, my hot water heater actually broke, they tried to do everything they could to not r...
by solobuildingblogs
Sat Feb 24, 2018 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA for 2017 question
Replies: 16
Views: 1220

Re: SEP IRA for 2017 question

Spirit Rider is correct. Form 8606 IRA basis depends on the year the contribution was actually made, not what the tax year the contribution was for. As others have stated there are two options to get your IRA basis back down to zero: 1. Move the money into a 401K (a solo 401K or phone your employer ...
by solobuildingblogs
Tue Feb 13, 2018 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: Small Business Owner questions - assets & shareholder basis
Replies: 2
Views: 363

Re: Small Business Owner questions - assets & shareholder basis

This is important because if you ever need to sell your business, you won't be giving away your depreciated assets with basis of zero for free. Surely they are worth something. Having a list will expedite this. And when you sell the assets, you might be taxed on depreciation recapture on form 479. B...
by solobuildingblogs
Sun Jan 28, 2018 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: what to do with hsa
Replies: 4
Views: 672

Re: what to do with hsa

Yes if you leave your job move your HSA to the bank with lowest fees. lively and HSA bank come up in this thread. I moved my account from chase which was charging me exorbitant feees. If you have a choice to choose a HDHP with HSA or a “premium” plan crunch the numbers to see what your tax savings a...
by solobuildingblogs
Sun Jan 28, 2018 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: What is a good flat rate cash back credit card?
Replies: 80
Views: 11569

Re: What is a good flat rate cash back credit card?

Not quite cash but no one has mentioned the US Bank altitude reserve. If you travel it’s easy to redeem points at 1.5 cent per point. Their portal use orbitz so easy to boook airfares (keep in mind that hotel bookings are usually non refundable so I avoid using Us bank points). You get three points ...
by solobuildingblogs
Sat Jan 27, 2018 1:38 am
Forum: Investing - Help with Personal Investments
Topic: S Corp to C Corp for medical/personal service professionals?
Replies: 6
Views: 1223

Re: S Corp to C Corp for medical/personal service professionals?

The math for a small medical practice almost always fails for a C corp. The retained earnings is to invest in capital for the company, not a stealth roth. As a C corp you take wages and dividends. You can’t take S corp distributions to avoid Medicare taxes so this is a big drawback. If your Income i...
by solobuildingblogs
Tue Jan 02, 2018 2:00 am
Forum: Personal Finance (Not Investing)
Topic: First Time Consulting - how to pay self employment taxes
Replies: 4
Views: 694

Re: First Time Consulting - how to pay self employment taxes

Assuming you are taxed on schedule C as a sole proprietor it’s a pass through just like S Corp. you can use schedule SE to estimate your self employment taxes. Everything else is taxed at your marginal bracket. It’s comingled and separated on 1040 at end of year. You can pay estimated taxes online j...
by solobuildingblogs
Tue Jan 02, 2018 1:56 am
Forum: Personal Finance (Not Investing)
Topic: Deferring s-corp distribution
Replies: 6
Views: 638

Re: Deferring s-corp distribution

It’s a pass through so doesn’t matter. It actually makes more sense to take money out of corporate bank accounts because personal accounts have more consumer protection.
by solobuildingblogs
Tue Jan 02, 2018 1:53 am
Forum: Personal Finance (Not Investing)
Topic: Any Recent Experience with Vietnam ATMs?
Replies: 14
Views: 1137

Re: Any Recent Experience with Vietnam ATMs?

Agree had trouble with debit cards. Same in Hong Kong believe it or not. Just changed cash at Hilton or western hotel. Lots of people will happily take USD. Any restaurant that caters to tourists will take cards, hole in the wall places won’t. Vietnam is great, Hoi An, Halong Bay and Hue are must se...
by solobuildingblogs
Tue Jan 02, 2018 1:49 am
Forum: Personal Finance (Not Investing)
Topic: Retirement accounts and physician SCorps and Tax Reform
Replies: 82
Views: 7413

Re: Retirement accounts and physician SCorps and Tax Reform

Here is my take on it. Take home messages: 1. During the phaseout of the 20% deduction you are in a extremely high marginal rate, like 47% or higher- because you’re “paying back” the 20% discount on your tax rate. If you’re right under the phaseout, accelerate income and defer income to get to the p...
by solobuildingblogs
Thu Dec 28, 2017 11:52 pm
Forum: Personal Finance (Not Investing)
Topic: AMT: is it black and white like being pregnant or not?
Replies: 15
Views: 1612

Re: AMT: is it black and white like being pregnant or not?

It’s not totally black and white. If you are $3000 “away”from being hit with AMT and prepay property taxes for $4000, you still get federal tax benefit for 75% or payment and depending on your state perhaps 100% of state marginal deduction.
by solobuildingblogs
Wed Dec 27, 2017 11:24 pm
Forum: Personal Finance (Not Investing)
Topic: Malpractice tail
Replies: 9
Views: 2262

Re: Malpractice tail

The cost for tail is about 2 to 2.5 times a year’s premiums. Consider buying nose coverage from your new insurer. We just published a post on this, scroll down halfway to see the rates for different sub specialties in Arizona, multiply by 2 to 2.5: https://solobuildingblogs.com/2017/12/17/incorporat...
by solobuildingblogs
Wed Dec 27, 2017 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: 12k for PLLC tax setup? Advice appreciated
Replies: 3
Views: 411

Re: 12k for PLLC tax setup? Advice appreciated

Here’s a post from our blog on how to incorporate on the cheap: https://solobuildingblogs.com/2017/12/17/incorporation-and-s-corporation-election-for-solo-medical-practices/ I don’t know whether you’re allowed to set up a PLLC to take income from the group that you’re partner in. Especially with the...
by solobuildingblogs
Wed Dec 27, 2017 11:07 pm
Forum: Personal Finance (Not Investing)
Topic: Single member LLC retirement plan?
Replies: 10
Views: 1048

Re: Single member LLC retirement plan?

Agree with stay the course 100%. One thought is if your wife can find you a job in her LLC and pay you fair market compensation, you can also max out a solo 401k! You would have to pay self employment taxes on it so unless from wage salary you’re making over $128k per year probably want to take abou...
by solobuildingblogs
Mon Dec 18, 2017 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: Can/should LLC owner take zero salary?
Replies: 5
Views: 967

Re: Can/should LLC owner take zero salary?

You're taxed as a pass through so I assume this means you're taking more deductions/ accelerating expenses, or asking debtors to pay their bills next year, to zero out your company profit. You're "forced" to take profit (either as salary or distribution) if you are profitable. No getting around it. ...
by solobuildingblogs
Sun Dec 10, 2017 11:05 am
Forum: Personal Finance (Not Investing)
Topic: How can someone who earns 500k/yr in w2 be in 25% tax bracket?
Replies: 17
Views: 3082

Re: How can someone who earns 500k/yr in w2 be in 25% tax bracket?

If you invest in property for your practice or multiple satellite offices, there's something called cost segregation analysis which allows you to accelerate depreciation, putting you in a low tax bracket. Commercial real estate is depreciated over 39 years, but what cost segregation analysis does is...
by solobuildingblogs
Fri Dec 08, 2017 1:17 am
Forum: Personal Finance (Not Investing)
Topic: Paying taxes with credit card?
Replies: 45
Views: 5009

Re: Paying taxes with credit card?

This has been discussed extensively on flyertalk.com forums, if you want to google it. One great deal is Bank of America travel rewards for platinum honors 2.625% back vs 1.87% fee is a 0.755% hedge/ profit, so if you decrease withholdings or are self employed that’s $76 for every $10,000 charged. I...
by solobuildingblogs
Sun Dec 03, 2017 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Financing a private medical practice
Replies: 9
Views: 1796

Re: Financing a private medical practice

Mostly agree with Quentin with the following points: -you need to balance cash liquidity with growth; most medical practices have positive cash flow within six months to a year. If you keep your overhead low, it's very unlikely you'll be bleeding money for months on end. One example, if you can get ...
by solobuildingblogs
Thu Nov 30, 2017 10:23 pm
Forum: Personal Finance (Not Investing)
Topic: Does Schwab ever offer transfer bonus into existing accounts
Replies: 20
Views: 2786

Re: Does Schwab ever offer transfer bonus into existing accounts

Not really a transfer bonus so apologies for kinda being off topic, but if you get the AMEX Schwab platinum card they offer annual $100 credit for $250K balances and $200 credit for $1 million balances. That's 0.02% which almost offsets their lowest index fund expense ratio :) Seriously though, alth...
by solobuildingblogs
Thu Nov 30, 2017 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Financing a private medical practice
Replies: 9
Views: 1796

Re: Financing a private medical practice

I think you would be crazy to touch any money that has income tax consequences attached to it. Getting back to the original topic, this might be true in the OP's situation- household MAGI of over $450K for a couple means 39.5% plus state tax marginal rate, and 23.8% plus state rate for capital gain...
by solobuildingblogs
Tue Nov 28, 2017 10:46 pm
Forum: Personal Finance (Not Investing)
Topic: Collection agency calls intended for another person:
Replies: 36
Views: 3691

Re: Collection agency calls intended for another person:

Agree completely with totallystudly: https://s.ai/presentations/tcpa.pdf You can google “Tcpa class actions” and find sample pleadings and interrogatories (in case if the case goes to discovery, which is when you depose/ ask the other party questions before trial). Cut and paste and file in small cl...
by solobuildingblogs
Tue Nov 28, 2017 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Financing a private medical practice
Replies: 9
Views: 1796

Re: Financing a private medical practice

Good move on opening up your own clinic. My undesrstanding is that the 457 works like a 401k so it’s a no brainer to NOT touch that money while you’re in a high tax bracket- regardless if you’re taking out the money to buy a new house or start a business; since your husband works I’m assuming you’ll...
by solobuildingblogs
Thu Oct 19, 2017 1:46 am
Forum: Personal Finance (Not Investing)
Topic: How soon to cancel a credit card after signup bonus.
Replies: 28
Views: 4823

Re: How soon to cancel a credit card after signup bonus.

If you repeatedly cancel after a few months when your signup bonus hits you can get blackballed by the bank and they might deny future applications. A better strategy is to wait until the annual fee hits. Some banks will give you a bonus number of points, sometimes requiring a minimum spend, to keep...
by solobuildingblogs
Sat Oct 14, 2017 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Advantage vs. Supplemental
Replies: 77
Views: 8460

Re: Medicare Advantage vs. Supplemental

From the standpoint of someone who is years away from medicare eligibility but runs a solo doctor's office: Medicare with supplement gives you more choice. While I realize every area is different, the medicare advantage plans here have narrow networks and I often have patients phoning my office comp...
by solobuildingblogs
Sat Oct 14, 2017 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 3000
Views: 589087

Re: What's Your Credit Card Rewards Strategy?

Funny about being far from a chase branch, there was a recent article in WSJ about how some millennials drove six hours to get to the nearest Chase for the in brach only sign up bonus of 100K points on the Chase Sapphire reserve... (on internet it was 50 or 75K) Yes, I was approved for a Chase sapph...
by solobuildingblogs
Thu Sep 21, 2017 10:18 pm
Forum: Personal Finance (Not Investing)
Topic: Where to park $200K cash?
Replies: 27
Views: 4549

Re: Where to park $200K cash?

If you like to travel and it's easy to fly American or OneWorld airline partners, Bank Direct has a mileage interest checking account. If you deposit 50K you get 60,000 American miles per year but there's a $12/month or $144 annual fee. 60K miles valued at 1.5 cents per mile is $900 subtract the $14...