Search found 263 matches

by MrBeaver
Thu Apr 18, 2019 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: What I don’t understand about Donor Advised Funds...
Replies: 54
Views: 3947

Re: What I don’t understand about Donor Advised Funds...

I only have one issue with using a DAF - -my (now former) employer does not match those gifts. I'm sure it varies by employer. My employer will match gifts from a DAF, but not into the DAF. The rationale is reasonable, as there are some types of organizations they do not match donations to (mostly ...
by MrBeaver
Thu Apr 18, 2019 12:55 pm
Forum: Personal Investments
Topic: next dollar of savings
Replies: 33
Views: 2585

Re: next dollar of savings

BeerTooth, This is fantastic. This lets you route up to $30k of your after tax money into Roth 401k and let it grow tax free. My only concern is that you are constrained by your salary amount which appears to be around 100k. If you defer $19k to pretax 401k, and another 30k to Roth 401k via after-t...
by MrBeaver
Sun Apr 07, 2019 9:38 am
Forum: Personal Finance (Not Investing)
Topic: How Much Term Life Insurance?
Replies: 56
Views: 3226

Re: How Much Term Life Insurance?

What's the point of life insurance with a net worth of almost $2 million and no debt? That's more than enough for the surviving spouse and kids to live off very comfortably and securely already. Self-insure. It depends how much they spend. We spend around $40K a year. Biggest expense right now is d...
by MrBeaver
Mon Apr 01, 2019 1:26 pm
Forum: Personal Consumer Issues
Topic: Installing Hitch on my Subaru Outback
Replies: 51
Views: 2254

Re: Installing Hitch on my Subaru Outback

He told me that i can get a hitch from etrailer.com and he would charge me $40 /hr, i am guessing hour and half to installed. etrailer is a superb online retailer. Their video how-to's and reviews are second to none on the entire internet. I give them my business whenever cost is close with other o...
by MrBeaver
Thu Mar 28, 2019 2:00 pm
Forum: Investing - Theory, News & General
Topic: Deferring HSA by paying medical Out-of-Pocket: Overblown?
Replies: 42
Views: 3573

Re: Deferring HSA by paying medical Out-of-Pocket: Overblown?

Other people with low expected retirement tax brackets could invest in a taxable S&P 500 fund paying only qualified dividends, assuming no Roth space available. The end result is still tax-free growth, without having to preserve receipts forever. Yes, taxable investments in US stock index funds are...
by MrBeaver
Fri Mar 22, 2019 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: When to increase house size with a growing family?
Replies: 43
Views: 2570

Re: When to increase house size with a growing family?

Thanks again for all the responses. They really have been great and have helped me think through priorities, pros, and cons. Do you have a line of credit on your house? If not I'd consider it as way to access your equity before selling your house so you don't have to buy on contingency and you can t...
by MrBeaver
Fri Mar 22, 2019 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: When to increase house size with a growing family?
Replies: 43
Views: 2570

Re: When to increase house size with a growing family?

I'd start to consider moving to a bigger house. Get an agent, start looking around, get a feel for what you're looking for. You're not in a hurry, which is a great perk. You can and should be picky. Bunking is fine when they're little, but imagine as they grow, and become preteens and teens. 1250 s...
by MrBeaver
Fri Mar 22, 2019 8:33 am
Forum: Personal Finance (Not Investing)
Topic: When to increase house size with a growing family?
Replies: 43
Views: 2570

Re: When to increase house size with a growing family?

That is what I would figure out. Can you still max pre-tax 401k and 2 Roth IRAs? Any college funding? Where does the savings for taxes come from? Saving for the new car? Vacations? We earmark 4k/year for college funding, plus a 16k lump sum from an inheritance and some continuing grandparent gifts....
by MrBeaver
Fri Mar 22, 2019 12:14 am
Forum: Personal Finance (Not Investing)
Topic: When to increase house size with a growing family?
Replies: 43
Views: 2570

Re: When to increase house size with a growing family?

Thanks everyone for the excellent responses. This really has helped remind me that moving slowly is ok. I wholeheartedly agree that bunking kids in the same room is fine (but don't tell that to your state foster board if you want to be a foster parent). I'm not sure what age I'd think that's a probl...
by MrBeaver
Thu Mar 21, 2019 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: When to increase house size with a growing family?
Replies: 43
Views: 2570

When to increase house size with a growing family?

I thought I had seen all these 'how much house to buy' threads and knew all the answers. Then I woke up one day and we're expecting another kid, and I can't seem to wrap my head around how to answer my own situation. How have others weathered the 'living in a small house with 3-4 children before buy...
by MrBeaver
Tue Mar 19, 2019 1:11 pm
Forum: Personal Investments
Topic: KF's rebalancing rule for the recession
Replies: 77
Views: 3746

Re: KF's rebalancing rule for the recession

From a financial point of view, I am building a bridge (6 to 8 years) until I can withdraw my social security. I have 1 year of the emergency fund and 5 years of fixed income to get me there. Please comment. KlangFool Your SS is inflation indexed. Your bond bridge may not be. With an investment hor...
by MrBeaver
Tue Mar 19, 2019 12:37 pm
Forum: Personal Investments
Topic: KF's rebalancing rule for the recession
Replies: 77
Views: 3746

Re: KF's rebalancing rule for the recession

From a financial point of view, I am building a bridge (6 to 8 years) until I can withdraw my social security. I have 1 year of the emergency fund and 5 years of fixed income to get me there. Please comment. KlangFool Your SS is inflation indexed. Your bond bridge may not be. With an investment hor...
by MrBeaver
Thu Feb 28, 2019 10:43 am
Forum: Investing - Theory, News & General
Topic: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces
Replies: 91
Views: 7261

Re: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces

Three observations, and one big question: Many who realize 'upside' use this to ratchet down risk later in life. In other words, spending less than possible at the beginning of retirement buys them peace of mind in the later years of retirement. A few who are less affected by risk may simply increas...
by MrBeaver
Fri Feb 22, 2019 1:47 pm
Forum: Personal Investments
Topic: First time bonus question
Replies: 14
Views: 694

Re: First time bonus question

This past year i started a new job at a new company. this new job comes with a 10% annual bonus as part of my pay structure. this is my first time receiving a bonus Now, i knew bonuses are taxed heavily...but mine was taxed at just over 50%, which is even higher than i expected. I thought i underst...
by MrBeaver
Fri Feb 15, 2019 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Any way to retain minimum bonus/RSU withholding?
Replies: 1
Views: 152

Any way to retain minimum bonus/RSU withholding?

Because my yearly profit sharing + RSU vest amount is roughly 25% of my total income and I'm in the 12% bracket because of fairly large deductions, the minimum mandatory withholding that my employer takes for the once-a-year-distributed profit sharing + RSU vesting within the first 6 weeks of the ye...
by MrBeaver
Mon Feb 04, 2019 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Cost of college and 529
Replies: 642
Views: 25432

Re: Cost of college and 529

One point I often see missed in these 'funding college costs by withdrawing money from 529 vs qualified plans (IRA, Roth IRA, etc.)' discussions is that an HSA with sizable balance and a sizable stack of receipts from previous year's qualified medical expenses can serve as an excellent vehicle for t...
by MrBeaver
Wed Jan 30, 2019 11:58 am
Forum: Investing - Theory, News & General
Topic: Opportunity Cost of [Holding] an Emergency Fund [in Cash/Bonds]
Replies: 60
Views: 3888

Re: Opportunity Cost of [Holding] an Emergency Fund [in Cash/Bonds]

I'm not going to attempt the computation because I'd likely forget something and do it wrong, but here is how I think of it: Once someone has long-term taxable investments which are not in their E-fund, they have two options: Keep E-fund in a safe asset class and invest the taxable money as per thei...
by MrBeaver
Tue Jan 29, 2019 11:52 pm
Forum: Personal Investments
Topic: Roth or Traditional for Spouse IRA
Replies: 9
Views: 599

Re: Roth or Traditional for Spouse IRA

AGI: $79,000 Deductions: (This year and probably the next few) $20,000-25,000 above-the-line deduction on rental properties. Standard Deduction: $24,000 Taxable income: $30,000 (Marginal Tax bracket would be 12% ), making our taxes around $3,200 I'm a little confused about the math here. If it's tr...
by MrBeaver
Fri Jan 25, 2019 7:55 am
Forum: Investing - Theory, News & General
Topic: Tell me your HSA strategy/advice
Replies: 52
Views: 5082

Re: Tell me your HSA strategy/advice

Do you plan to start tapping your HSA to pay Medicare premiums and other medical at 65? Or are you planning to continue to pay from other funds and let it grow for some time longer? I know about the inheritance aspects but that does not factor into my situation and I’m thinking that I should contin...
by MrBeaver
Thu Jan 24, 2019 3:59 pm
Forum: Investing - Theory, News & General
Topic: Tell me your HSA strategy/advice
Replies: 52
Views: 5082

Re: Tell me your HSA strategy/advice

jeffyscott: Very interesting (re, HSA/ROTH). I’m going to have to think about that. lstone19: You describe my thinking exactly. Due to ACA income optimization, I can’t do ROTH conversions until 65, but I will try my best to maximize after that. As far as I see it, if the following are true: You hav...
by MrBeaver
Tue Jan 08, 2019 2:11 pm
Forum: Personal Investments
Topic: ESPP - Should I or shouldn't I?
Replies: 40
Views: 2259

Re: ESPP - Should I or shouldn't I?

Thanks all--much appreciated. I'll stop contributing and direct future funds toward my Roth. What should I do with the current balance? Sell all shares today and send proceeds to my checking account (to go towards Roth IRA once I open it)? Edit: forgot to add this--I do currently contribute 21% of ...
by MrBeaver
Tue Jan 01, 2019 2:23 am
Forum: Personal Finance (Not Investing)
Topic: Contributing too much to a 529?
Replies: 43
Views: 3374

Re: Contributing too much to a 529?

Looking ahead, will we overfund the 529 if we stay the course with the $200 monthly contribution over the next 17.5 years? The future you ask about is inherently very uncertain. When uncertainty is high, flexibility gains in value. This is why many suggest that maximizing other tax-advantaged space...
by MrBeaver
Mon Dec 17, 2018 1:17 pm
Forum: Personal Consumer Issues
Topic: How much do you pay for internet only?
Replies: 79
Views: 5268

Re: How much do you pay for internet only?

I agree that download speeds are seldom required to be more than 6-8Mb/s per HD feed, 25Mb/s per 4k feed. However, my usage requirements are actually set by my desired upload speed. Periodically I will fill a 64GB flash card with my big camera after a weekend event. In order to get that backed up of...
by MrBeaver
Thu Dec 06, 2018 9:48 am
Forum: Investing - Theory, News & General
Topic: Debt repayment vs Investing – thoughts on psychology
Replies: 10
Views: 981

Debt repayment vs Investing – thoughts on psychology

This podcast episode was fascinating to me, especially in the context of how many debt vs investing topics we have. An interesting take on: Mathematical calculation Which goal is more motivational to increase income and reduce expenses to achieve the goal faster? How will each achievement change how...
by MrBeaver
Fri Nov 16, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: 38 & 43 with pension and $1M in assets considering increasing spending
Replies: 18
Views: 2206

Re: 38 & 43 with pension and $1M in assets considering increasing spending

I want to make sure we don't put ourselves in a position where he feels pressure to take a job he doesn't love and I feel pressure to move my freelance career back to part time and get some bill paying day job. I agree that kids are expensive. We are not in your exact situation (lower income and yo...
by MrBeaver
Wed Oct 31, 2018 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: USAA Multi Product Discount
Replies: 35
Views: 3755

Re: USAA Multi Product Discount

https://www.usaa.com/inet/pcsavingscalculator/pcsavings If you have an auto or home policy, you might want to play with the multi product savings calculator to see if you can obtain some low effort discounts. I'm assuming the savings are percentage based rather than dollar based, but for me, In Ari...
by MrBeaver
Fri Oct 26, 2018 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Should I reduce AGI to qualify for car rebate next year?
Replies: 1
Views: 463

Should I reduce AGI to qualify for car rebate next year?

In Texas, there is a program which remains similar to the now defunct federal cash for clunkers program. It has a lower benefit (3k for gas, 3.5k for electric or hybrid), and an AGI income limitation (based on most recent income tax return). It can be used for cars up to three years old. Applicable ...
by MrBeaver
Tue Oct 23, 2018 11:38 pm
Forum: Personal Investments
Topic: Is TLH in 12% bracket less worthwhile?
Replies: 22
Views: 1895

Re: Is TLH in 12% bracket less worthwhile?

Can you also harvest some gains, and use the TLH to offset those gains, saving yourself capital gains tax later? You should not use TLH to offset gains. The gains will already be taxed at 0% in the 12% tax bracket. In the 12% bracket you should try not to have capital gains and losses in the same y...
by MrBeaver
Tue Oct 23, 2018 11:26 pm
Forum: Personal Investments
Topic: Moves to make after welcoming 1st child
Replies: 16
Views: 1929

Re: Moves to make after welcoming 1st child

The biggest financial advice I have: buy a camera. Take pictures. Save them, but don’t beat yourself up if you fall behind in the sorting/categorization. Just capture them at the early sleep-deprived point. But here is the thing that has made the biggest difference for our family: Make a short list ...
by MrBeaver
Mon Oct 22, 2018 12:39 am
Forum: Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2220

Re: Avoiding excess HSA contributions.

There is nothing elective about the last month rule. Any contribution exceeding your prorated contribution limit is automatically deemed to be using the last month rule where available. There is no ability to decline this. As indicated by the quoted IRS guidance, there is no ability to return non-e...
by MrBeaver
Sun Oct 21, 2018 4:08 pm
Forum: Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2220

Re: Avoiding excess HSA contributions.

Excellent help as usual, Spirit Rider. Perhaps it would be wise to file an extension for a tax year you are claiming the last month rule for? Then if you lost your HDHP before October, you request a return of contributions and use the pro-rata rule. If you still have your HDHP mid-October, there is...
by MrBeaver
Sun Oct 21, 2018 9:11 am
Forum: Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2220

Re: Avoiding excess HSA contributions.

Excellent help as usual, Spirit Rider. Perhaps it would be wise to file an extension for a tax year you are claiming the last month rule for? Then if you lost your HDHP before October, you request a return of contributions and use the pro-rata rule. If you still have your HDHP mid-October, there is ...
by MrBeaver
Sun Oct 21, 2018 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Co-pay accumulators in new health plans
Replies: 35
Views: 2654

Re: Co-pay accumulators in new health plans

The drug company wants to incentivize you to purchase the medication because they are getting a larger payout from the insurance company, and the patient is the one choosing whether the insurance company must pay (until the insurance company changes their rules or formulary). The insurance company w...
by MrBeaver
Sun Oct 21, 2018 8:29 am
Forum: Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2220

Re: Avoiding excess HSA contributions.

Perhaps they didn’t want to penalize or complicate life for people like me who become HSA eligible at the end of the year and have an employer who contributes a big chunk right away? My guess would be to simplify things for the majority of filers who will stay on a new (HDHP) Insurance plan for at ...
by MrBeaver
Sun Oct 21, 2018 12:36 am
Forum: Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2220

Re: Avoiding excess HSA contributions.

Questions 1) Am I mistaken in my understanding? Not that I see, but there are ways of handling this. 2) How might you address this uncertainty/complexity? Most of the time it doesn’t matter. Upon leaving a job, either take COBRA or another HDHP coverage, or shut off contributions immediately. Also,...
by MrBeaver
Fri Oct 19, 2018 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 630
Views: 68252

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

I just opened an Ally account and transferred other savings acct. money into it. I was contemplating selling my short term bond holdings from Vanguard and moving that over also (guaranteed 1.475% 3-month return vs 0.875% 3-month return plus bond fund price change), as it seems unlikely and foolish t...
by MrBeaver
Thu Oct 18, 2018 5:18 pm
Forum: Personal Investments
Topic: Taxes: Selling/gifting appreciated shares while income is low
Replies: 8
Views: 992

Re: Taxes: Selling/gifting appreciated shares while income is low

3. I also have ~$4k in recent unrealized losses in VTCLX (which I should also convert to VTSAX at some point). But it doesn't make sense to realize those losses (tax loss harvest) this year when I should have room to tax gain harvest (if things rebound) in 2019/2020, right? Given the above, I guess...
by MrBeaver
Thu Oct 18, 2018 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Kids inherited $8,000 each - 529 or regular brokerage?
Replies: 34
Views: 2413

Re: Kids inherited $8,000 each - 529 or regular brokerage?

OP, I will keep that money in my own taxable account. Then, when they are old enough and work some summer jobs, move the money into their Roth IRAs. Only if I am absolutely sure that they do not need financial aid, I would put the money into their taxable account and/or 529. KlangFool P.S.: My kids...
by MrBeaver
Thu Oct 18, 2018 8:41 am
Forum: Personal Consumer Issues
Topic: Best first time computer / path for children
Replies: 15
Views: 1146

Re: Best first time computer / path for children

I'm a big fan of two things in this domain: Following and capitalizing on the interests of the student. Let them follow their interests while setting up / showing / modeling interesting ways within that context they can learn useful skills. Simplify the platform to the simplest necessary for the tas...
by MrBeaver
Wed Oct 17, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Isn't Paying off the mortgage early putting less money in your house (not more)?
Replies: 96
Views: 9492

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

Most people don't have enough cash to buy a home outright. Hence, a mortgage. Once you DO have enough to buy it outright (pay off your loan), then it's simply a question of where you want your money to go, and whether you feel you will be better off investing it or paying off the loan. But make no ...
by MrBeaver
Tue Oct 16, 2018 10:01 pm
Forum: Personal Investments
Topic: Tax loss harvesting: Long term vs. short term losses.
Replies: 17
Views: 2046

Re: Tax loss harvesting: Long term vs. short term losses.

It matters. Always harvest short-term losses before they become long-term. It is good to have short-term losses in case you need to offset short-term gains during rebalancing, selling for expenses, etc. Always harvest long-term losses which you should only have because prices are got lower than 12 ...
by MrBeaver
Sun Oct 14, 2018 2:37 am
Forum: Investing - Theory, News & General
Topic: Using 529 as a retirement account instead of taxable?
Replies: 4
Views: 754

Re: Using 529 as a retirement account instead of taxable?

It's probably a toss up to be honest, but 529 come with creditor/bankruptcy-protection. So why aren't people using 529 in lieu of taxable? Looks like 529 will be useful for tax-inefficient and high returns instruments like REITs. This is NOT a toss-up, taxable is better in 99.999% of situations. In...
by MrBeaver
Thu Oct 11, 2018 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: HSA/FSA related question
Replies: 5
Views: 491

Re: HSA/FSA related question

2. When open enrollment comes around again in October 2019 I am thinking I would have to give up the HDP/HSA and enroll my wife or myself in a FSA account to help with the balance of the cost for delivery/hospital bills during that year and get some tax advantage at the same time. The amount contri...
by MrBeaver
Mon Oct 08, 2018 10:28 pm
Forum: Investing - Theory, News & General
Topic: Help me understand pro/con of market weighting
Replies: 11
Views: 942

Help me understand pro/con of market weighting

Full disclosure, I tend toward the slice and dice camp with some sector overweighting as a relatively young person. But I’d like to make sure I fully understand the arguments involved. Here is what I think I understand: EMH says that all asset classes are fairly valued for their implied risk and rew...
by MrBeaver
Mon Oct 08, 2018 8:10 pm
Forum: Personal Consumer Issues
Topic: Talk me out of buying a Tesla Model 3
Replies: 388
Views: 28638

Re: Talk me out of buying a Tesla Model 3

If I were ever to want to drop 75k on a car, I would demand more physical controls than a few steering wheel buttons. I can’t fathom flying down the freeway and having to take my eyes off the road to adjust the climate controls and audio settings. If you’re interested in electric and like Audi, it m...
by MrBeaver
Mon Oct 08, 2018 12:06 am
Forum: Personal Investments
Topic: Accredited investor resources
Replies: 25
Views: 2093

Re: Accredited investor resources

Never having seen behind the curtain, I really don’t know. But I imagine the ‘good deals’ are quickly scooped up by full time professional investors (real estate, etc.), and anyone else shopping these opportunities gets below average returns after fees. With that said though, I might eventually look...
by MrBeaver
Sun Oct 07, 2018 11:39 pm
Forum: Personal Consumer Issues
Topic: What purchase saved you the most money?
Replies: 136
Views: 13321

Re: What purchase saved you the most money?

I'm going to be contrarian here. Things that saved you money but cost your labor seem to come up a lot - i.e. washing your own car, mowing your own lawn, etc. Why do people tend not to value their labor? Ok, I’ll bite. Mine: a trimmer that I use on my beard. By growing a beard and trimming once a w...
by MrBeaver
Thu Oct 04, 2018 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Real estate vs stock market returns: some unbiased numbers
Replies: 53
Views: 9245

Re: Real estate vs stock market returns: some unbiased numbers

1. Residential REITs have returned a CAGR 1-2 percentage points higher than the SP500 over the past 20 years. The sector has outperformed. 2. I would expect the average return for individuals running real estate businesses to be higher than the CAGR of the REIT industry precisely because they are in...
by MrBeaver
Wed Oct 03, 2018 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Has anyone else noticed that HDHP are actually better for those needing expensive Rx?
Replies: 18
Views: 2395

Re: Has anyone else noticed that HDHP are actually better for those needing expensive Rx?

I never thought of this before, but these assistance programs are another item that in theory, one must prove that they did not receive when providing documentation for HSA qualified withdrawals if one is audited. I take it many of them work with the pharmacy benefit managers to pay them directly s...
by MrBeaver
Wed Oct 03, 2018 11:28 am
Forum: Personal Investments
Topic: Roth or No Roth before SS claim at 70
Replies: 5
Views: 475

Re: Roth or No Roth before SS claim at 70

...if it will be worth the extra effort and complexity to do the Roth conversions. It should take less than an hour per year, including - establishing the Roth account - moving funds from the traditional to the Roth account - making an estimated tax payment (if necessary) to cover the conversion ta...