Search found 25 matches

by sky jumper
Tue Apr 28, 2020 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: how to set up self employed business?
Replies: 25
Views: 1036

Re: how to set up self employed business?

thank you all for sharing your insights. you are all VERY much more knowledgeable than I am. To add some clarity - my wife will be providing professional consulting services (marketing) out of our home. The clients are large corporations that need marketing help. I honestly can't imagine any scenari...
by sky jumper
Tue Apr 28, 2020 10:00 am
Forum: Personal Finance (Not Investing)
Topic: how to set up self employed business?
Replies: 25
Views: 1036

how to set up self employed business?

my wife was laid off but is fortunate enough to be able to do some contract consulting. neither of us know how to set up a self employed business for her. I've heard of S-corps and LLC but know nothing else about them. I am still fully employed (for now, if that matters). I already bought her a new ...
by sky jumper
Mon Mar 02, 2020 10:08 am
Forum: Personal Investments
Topic: Cash out of Whole Life???
Replies: 7
Views: 486

Re: Cash out of Whole Life???

my total insurance bill with this company is about $1100/mo and includes one of the term policies and a couple other policies related to my business (self employed). if i'm reading the statements correctly, the premium for the 500k is 700/mo. I don't think there's any additional cash premium. i have...
by sky jumper
Mon Mar 02, 2020 9:23 am
Forum: Personal Investments
Topic: Cash out of Whole Life???
Replies: 7
Views: 486

Re: Cash out of Whole Life???

I'm 50 and have 4 kids ages 20, 16, 12, 9. I also have a total of $2M in term life insurance from 2 other term policies, one of which will expire soon.
by sky jumper
Mon Mar 02, 2020 8:55 am
Forum: Personal Investments
Topic: Cash out of Whole Life???
Replies: 7
Views: 486

Cash out of Whole Life???

I have a $500k whole life policy that has about $30k of cash value. the premiums are $700/mo. I've been told I should close the policy, take the $30k cash value and invest it in 50% S&P index fund and 50% total market bond fund. and then use the $700/mo to buy a $500k term policy ($60/mo) and invest...
by sky jumper
Wed Aug 28, 2019 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Paying for elderly parent's care
Replies: 29
Views: 1674

Re: Paying for elderly parent's care

she is suffering from severe mental illness. she cannot live alone or with a child/family. she cries & wails all day/night you can't have that around young kids. my father died several years ago. I am not able to comment on their finances. he ran his own business and money was always tight. supposed...
by sky jumper
Wed Aug 28, 2019 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Paying for elderly parent's care
Replies: 29
Views: 1674

Paying for elderly parent's care

My mother is in assisted living. She gets $2k/mo social security. she has no assets. her costs are $4k/mo + random doctor visits, prescriptions, an occasional ambulance ride to the ER if she falls and can't get up, etc. my siblings and I are picking up the extra $2k+/mo. Aside from medicaid (which s...
by sky jumper
Thu Feb 28, 2019 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: [2018 tax return - How does it compare to previous years?]
Replies: 441
Views: 37193

Re: [2018 tax return - How does it compare to previous years?]

Year____________2018_________2017
AGI____________307,749______297,196
Total Tax________51,882_______59,247
Effective Rate____16.8%_______19.9%
AMT______________0__________4,438

MFJ 2kids
$11k property tax
$13k state tax
by sky jumper
Tue Feb 26, 2019 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: IRA RMD taxation
Replies: 14
Views: 927

Re: IRA RMD taxation

ok well I got home and checked, and my wife had gone into TaxAct and made a bunch of changes to the deductions (donations, etc) and now the difference is only $49. so (35+49)/350 = 24% which is the expected marginal tax rate. I have no idea what happened or why, but this seems correct.
by sky jumper
Tue Feb 26, 2019 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: IRA RMD taxation
Replies: 14
Views: 927

Re: IRA RMD taxation

well, our AGI is 307k. married filing joint. $30k in itemized deductions. 2 kids. I don't think $350 is pushing us past any threshholds, but i'm no tax expert.
by sky jumper
Tue Feb 26, 2019 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: IRA RMD taxation
Replies: 14
Views: 927

Re: IRA RMD taxation

I entered the box 7 "distribution code" = 4, which means "death". that's what is on the 1099. it could be assessing an extra 10% penalty, but even if you take that out it's still 41.7%. that's not my marginal tax rate.
by sky jumper
Tue Feb 26, 2019 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: IRA RMD taxation
Replies: 14
Views: 927

Re: IRA RMD taxation

yes i did enter the $35.

and to be clear -- the $145 is how much I owe went up (net of withholding), not the total tax number.

something seems wrong here.
by sky jumper
Tue Feb 26, 2019 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: IRA RMD taxation
Replies: 14
Views: 927

IRA RMD taxation

I inherited my dad's IRA when he died. he was receiving annual distributions, so now I am too even though I'm in my 40s. for 2018 it was $350, with 10% withheld for taxes. when I enter this into TaxAct my tax bill goes up $145. take it out tax goes down $145. by my calculations that's (145+35)/350 =...
by sky jumper
Thu Feb 21, 2019 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: AGI or taxable income for comparing to 2017?
Replies: 4
Views: 308

AGI or taxable income for comparing to 2017?

when computing your effective tax rate for comparison to 2017 do you use AGI or taxable income? I would say AGI since this is before any deductions or exemptions are applied (which are part of the tax structure you are trying to compare). but there are many who say ETR = (total tax)/(taxable income)...
by sky jumper
Mon Feb 04, 2019 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Deduct elderly care expenses
Replies: 7
Views: 622

Deduct elderly care expenses

I help pay my elderly mother's assisted living expenses to the tune of about $1k/mo. I transfer the money from my account to hers, and then write the check for the nursing home from her account. the rest comes from her social security. Can I claim some kind of tax deduction for this? She does not me...
by sky jumper
Mon Apr 16, 2018 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: $4,400 in AMT? sanity check, please?
Replies: 11
Views: 1932

Re: $4,400 in AMT? sanity check, please?

I suspect that either W4s were not filled out following the instructions on the two-earner worksheet, or that they were filled out when incomes were different. Changes in both total joint income, as well as the ratio between incomes will change tax due and also the accuracy of the W4 (that is, W4s ...
by sky jumper
Mon Apr 16, 2018 10:17 am
Forum: Personal Finance (Not Investing)
Topic: $4,400 in AMT? sanity check, please?
Replies: 11
Views: 1932

Re: $4,400 in AMT? sanity check, please?

ok. but what makes me question this is that my $11k in property tax does absolutely nothing for me. if I take it out my tax bill is exactly the same?? does the AMT calculation essentially negate any deduction for real estate taxes?? I don't recall that being the case in previous years. Also, not thi...
by sky jumper
Mon Apr 16, 2018 9:48 am
Forum: Personal Finance (Not Investing)
Topic: $4,400 in AMT? sanity check, please?
Replies: 11
Views: 1932

$4,400 in AMT? sanity check, please?

can someone tell me what/if I'm missing something here? Married filing jointly. 2 kids. $11k mortgage interest. $11k property tax. $8k donations, charitable contributions. AGI: $297k Deductions: $42k Exemptions:$16.2k Regular Tax: $53.8k AMT: $4.4k Total Tax: $58.3k Effective tax rate: 19.6% Every y...
by sky jumper
Fri Dec 08, 2017 7:55 pm
Forum: Personal Investments
Topic: Bond vs Bond Fund? why funds?
Replies: 26
Views: 3746

Re: Bond vs Bond Fund? why funds?

some good replies & questions here. some more detail & a few points: I guess I'm worried about losing 15% in a bond fund when rates skyrocket. hence the interest in individual bonds. but perhaps that's not a good option for me. the money is the payout from my father's estate when he passed. it went ...
by sky jumper
Fri Dec 08, 2017 5:04 pm
Forum: Personal Investments
Topic: Retire in my early 40s? Crazy or actually doable?
Replies: 77
Views: 13823

Re: Retire in my early 40s? Crazy or actually doable?

... My job is tough and stressful so to not do it would be very nice indeed. you have worked hard and done an awesome job building your nestegg. if you have constructive things you'd like to do with your time, like restore a '66 GTO, or run marathons, or build an addition to your house... things th...
by sky jumper
Fri Dec 08, 2017 3:55 pm
Forum: Personal Investments
Topic: Bond vs Bond Fund? why funds?
Replies: 26
Views: 3746

Re: Bond vs Bond Fund? why funds?

yes taxable. my marginal rate is 33%. we live in Illinois so state tax is not insignificant either.
by sky jumper
Fri Dec 08, 2017 2:26 pm
Forum: Personal Investments
Topic: Bond vs Bond Fund? why funds?
Replies: 26
Views: 3746

Re: Bond vs Bond Fund? why funds?

nisiprius that was a very insightful reply. managing a complex bond portfolio would be a task for sure. if you were in my shoes what bond funds (or ETFs) would you buy? I was thinking 125k in FSICX, 125k in FTABX, and 125k in FAGIX or PBDDX. the rest would go to FUSVX. the money is at fidelity so I'...
by sky jumper
Fri Dec 08, 2017 1:23 pm
Forum: Personal Investments
Topic: Bond vs Bond Fund? why funds?
Replies: 26
Views: 3746

Bond vs Bond Fund? why funds?

I'm new to fixed income investing. all my stuff is long term equity buy hold forget. but now I've got to manage my mother's money. she's in a nursing home that costs $5k/month. She has $550k (well tehcnically my brother, sister, and I share the $550k... but we hold it on her behalf and it needs to l...
by sky jumper
Fri Sep 22, 2017 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Tax on joint brokerage accounts?
Replies: 13
Views: 3062

Re: Tax on joint brokerage accounts?

thanks for the replies. some good insights here. to add a bit more context - my mother has no capability to manage her own finances. I am her finance power of attorney, which helps to a certain extent (but as I've learned it's not as easy as saying "I'm her POA" and then having the banks, brokerage ...
by sky jumper
Thu Sep 21, 2017 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Tax on joint brokerage accounts?
Replies: 13
Views: 3062

Tax on joint brokerage accounts?

looking for advice on a joint account help with my 2 siblings. Here's the scenario --- we are splitting a $500k life insurance payout on my father who passed recently. each child gets 1/3. The money is to be used to pay for my mother's ongoing care in a nursing home. Our intent is to pool the money ...