Search found 239 matches

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: 1922

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: 30
Views: 2997

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: 445

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: Investing - Help with Personal Investments
Topic: Is TLH in 12% bracket less worthwhile?
Replies: 22
Views: 1830

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: Investing - Help with Personal Investments
Topic: Moves to make after welcoming 1st child
Replies: 16
Views: 1843

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: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2128

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: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2128

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: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2128

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: 2545

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: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2128

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: Investing - Help with Personal Investments
Topic: Avoiding excess HSA contributions.
Replies: 21
Views: 2128

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: 477
Views: 45158

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: Investing - Help with Personal Investments
Topic: Taxes: Selling/gifting appreciated shares while income is low
Replies: 7
Views: 861

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: 2351

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: 1081

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: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 96
Views: 8985

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: Investing - Help with Personal Investments
Topic: Tax loss harvesting: Long term vs. short term losses.
Replies: 17
Views: 1820

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: 724

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: 464

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: 874

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: 295
Views: 19152

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: Investing - Help with Personal Investments
Topic: Accredited investor resources
Replies: 25
Views: 1938

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: 12924

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: 8823

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: 2320

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: Investing - Help with Personal Investments
Topic: Roth or No Roth before SS claim at 70
Replies: 5
Views: 452

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...
by MrBeaver
Mon Oct 01, 2018 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone else noticed that HDHP are actually better for those needing expensive Rx?
Replies: 18
Views: 2320

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 su...
by MrBeaver
Mon Oct 01, 2018 7:37 am
Forum: Investing - Help with Personal Investments
Topic: What's the best method for immediately selling off my ESPP shares?
Replies: 25
Views: 2061

Re: What's the best method for immediately selling off my ESPP shares?

What you say is correct. However, there is some theoretical tax advantage to holding not just until it is a long term gain, but until the distribution is qualifying (2 years from the offering start date). In this case, the ordinary income portion is the smaller of the percentage discount of the pri...
by MrBeaver
Mon Oct 01, 2018 12:45 am
Forum: Investing - Help with Personal Investments
Topic: What's the best method for immediately selling off my ESPP shares?
Replies: 25
Views: 2061

Re: What's the best method for immediately selling off my ESPP shares?

In any case, the initial discount is always taxed at income rates, so as far as I understand it, holding onto ESPP shares for a year before selling is functionally identical (from a tax perspective) to selling them immediately at the vesting price and then using the proceeds to buy those same share...
by MrBeaver
Sat Sep 29, 2018 5:30 pm
Forum: Personal Finance (Not Investing)
Topic: How much term life insurance? $$ and duration
Replies: 18
Views: 1639

Re: How much term life insurance? $$ and duration

Life insurance projection is somewhat complicated because the benefit amount does not get adjusted for inflation, so there is already an inherent reduction in benefit value throughout the term. If kids are involved, college costs are hard to predict but you also get SS survivor benefits for the chil...
by MrBeaver
Tue Sep 25, 2018 12:29 pm
Forum: Investing - Theory, News & General
Topic: Digging deeper on advisability of Roth Conversions
Replies: 37
Views: 3309

Re: Digging deeper on advisability of Roth Conversions

As a first pass, I'd run the numbers assuming conversions + taxable withdrawals to pay for taxes to the top of the 0% LTCG bracket ($200 shy of the top of the 12% income tax bracket). Then see what your projected marginal rate would be at the start of RMDs. You should have some room to tweak the per...
by MrBeaver
Mon Sep 24, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Fed up with health insurance situation
Replies: 117
Views: 7505

Re: Fed up with health insurance situation

but it isn't like the old days when grandparents got old they moved into a back bedroom with their kids and passed away in their sleep You could choose to do just that. There's nothing at all stopping you. Of course, there is also very little incentive other than personal preference in how you die ...
by MrBeaver
Sun Sep 23, 2018 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Reducing longterm capital gains taxes
Replies: 15
Views: 1615

Re: Reducing longterm capital gains taxes

If you don’t need the money or dividend income for 10 years, Opportunity Zone funds might be an option? Thanks for the heads up! Interesting idea, wonder what the actual investments will be and what kind of returns to expect. Likely some type of bond? My guess is that the majority will be as privat...
by MrBeaver
Sun Sep 23, 2018 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Reducing longterm capital gains taxes
Replies: 15
Views: 1615

Re: Reducing longterm capital gains taxes

If you don’t need the money or dividend income for 10 years, Opportunity Zone funds might be an option? https://home.treasury.gov/news/press-releases/sm0341 Not sure if these are available yet though. I think it’s a 60-day ‘rollover’ clock from realizing the capital gain to getting it invested in an...
by MrBeaver
Sun Sep 23, 2018 3:43 pm
Forum: Investing - Theory, News & General
Topic: Allocating 1/3 of Investable Assets to Roth Accounts
Replies: 35
Views: 2129

Re: Allocating 1/3 of Investable Assets to Roth Accounts

MrBeaver et al: FWIW, the new 2018 tax brackets are scheduled to phase out in 2025 and apparently revert back to 2017 levels. Couldn't quickly locate a great reference, but the reversion is mentioned here: https://obliviousinvestor.com/2018-tax-brackets/ Accordingly, DW will be loading up her ROTH ...
by MrBeaver
Sat Sep 22, 2018 10:06 pm
Forum: Investing - Theory, News & General
Topic: Allocating 1/3 of Investable Assets to Roth Accounts
Replies: 35
Views: 2129

Re: Allocating 1/3 of Investable Assets to Roth Accounts

For those who can save in retirement accounts, it is often best to start saving in Roth when your tax bracket is low (early in your career). Max out all the Roth IRAs and Roth 401Ks you can. Then as your salary tends to increase as time goes on, you may bump up to higher tax brackets. That is when ...
by MrBeaver
Fri Sep 21, 2018 11:50 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Traditional?
Replies: 21
Views: 1403

Re: Roth 401k or Traditional?

The 2018 forms are not finalized yet. Here is the draft: https://www.irs.gov/pub/irs-dft/f1040s8--dft.pdf https://www.irs.gov/pub/irs-dft/i1040s8--dft.pdf Thanks! Hadn't seen those for the "additional child tax credit" yet. Can you reach further into your bag of tricks and produce the draft forms f...
by MrBeaver
Fri Sep 21, 2018 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Traditional?
Replies: 21
Views: 1403

Re: Roth 401k or Traditional?

...can you verify (IRS wise) that the Saver's Credit is calculated on a maximum of $2,000 (single) or $4,000 (married filing jointly) contribution figure? Yes, that is correct. See line 6 of Form 8880. Yep. For this reason, the middle zone of the saver's credit is basically worthless. At 38k AGI (M...
by MrBeaver
Fri Sep 21, 2018 2:57 pm
Forum: Personal Consumer Issues
Topic: Converting Tablespoons to (non-liquid) ounces
Replies: 3
Views: 288

Re: Converting Tablespoons to (non-liquid) ounces

This will be highly dependent on the handling of the Borax, since settling will have a large impact. For a rough estimate, here is some bulk density data: http://hapman.com/education-support/bulk-material-density-guide/ Therefore, roughly: 60oz * 28.3495 g/oz = 1701g; / 1.3 g/cm3 = 1308 cm3; * 0.067...
by MrBeaver
Thu Sep 20, 2018 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: how do/did you teach your kids finances/investing?
Replies: 28
Views: 2310

Re: how do/did you teach your kids finances/investing?

I think that teaching kids that money comes from work is also valuable, and it's also a way to get some extra funds in their hands that they can be autonomous with (within reason of course - just because they earned it doesn't mean they can spend it on things outside your values since they are stil...
by MrBeaver
Thu Sep 20, 2018 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Traditional?
Replies: 21
Views: 1403

Re: Roth 401k or Traditional?

One more thing to check: while the child tax credit has been increased, not all of it is refundable. As a result, maximizing the saver's credit with children could result in no actual benefit, since your total credits might exceed your tax liability.
by MrBeaver
Thu Sep 20, 2018 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k or Traditional?
Replies: 21
Views: 1403

Re: Roth 401k or Traditional?

channtheman, You are missing one key item: tax credit: https://www.bogleheads.org/wiki/Saver%27s_credit If you contribute enough to Trad. 401K, you may qualify for saver's credit. In those cases, you may get a tax refund even though you pay zero taxes. KlangFool I had completely forgotten about the...
by MrBeaver
Wed Sep 19, 2018 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Are dues for musical 5013(c) deductible (charitable)?
Replies: 1
Views: 194

Are dues for musical 5013(c) deductible (charitable)?

I'm familiar with Pub. 526 which states: Membership fees or dues. You may be able to deduct membership fees or dues you pay to a qualified organization. However, you can deduct only the amount that is more than the value of the benefits you receive. You can't deduct dues, fees, or assessments paid t...
by MrBeaver
Tue Sep 18, 2018 10:00 pm
Forum: Investing - Theory, News & General
Topic: Stock market scenarios
Replies: 12
Views: 968

Re: Stock market scenarios

For 2. and 3., if for a moment we assume we could know the future, I'm wondering how you would invest your money. (If the amount matters, let's say $100K.) In fairness to the OP, I think the gist of this is whether investment strategies other than TSM / indexing would theoretically be better in pro...
by MrBeaver
Tue Sep 18, 2018 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: how do/did you teach your kids finances/investing?
Replies: 28
Views: 2310

Re: how do/did you teach your kids finances/investing?

Great ideas here. Mine aren’t old enough to have gone through this, but I remember a formative experience during my growing up was my mother taking me to a bank to get a CD with my unspent allowance and birthday money when I was in elementary school. At the time (80s), rates were high enough (7-9%) ...
by MrBeaver
Tue Sep 18, 2018 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance...Social Security also pays?
Replies: 25
Views: 1545

Re: Life Insurance...Social Security also pays?

In picking your life insurance amount, consider it is not adjusted with inflation. Like most insurance you hope to never need it, but you want it there just in case. ^^^ This. I originally thought I wanted a decreasing term policy, since I knew I’d be saving throughout the term. However, when I mod...
by MrBeaver
Mon Sep 17, 2018 9:43 am
Forum: Personal Consumer Issues
Topic: $180 IPhone SE or $90 Iphone 5S
Replies: 33
Views: 2303

Re: $180 IPhone SE or $90 Iphone 5S

Ditto on recommending the SE. While the 5s will support iOS 12, the SE will be much faster, and I’d wager that the 5s, and 6 will drop off the supported devices list for iOS 13 next year. https://support.apple.com/en-us/HT209051 But selfishly, I just wish they would update the SE so I could get a fa...
by MrBeaver
Sun Sep 16, 2018 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Considering an HSA with a baby on the way - good idea or bad?
Replies: 9
Views: 818

Re: Considering an HSA with a baby on the way - good idea or bad?

It’s not stated, but make sure you look at the OOP maximum, as well as consider your tax rate. Why? Many PPO plans have lower deductibles and some copays, but higher OOP maximums. For us, with twins plus a post-delivery gall bladder issue (total of >50k insurance price adjusted charges), we were way...
by MrBeaver
Sat Sep 15, 2018 8:16 am
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3711

Re: DAF > Roth IRA? 12% tax bracket, no taxable

Yet another idea I've had is "using a DAF" to pay for college expenses: 1) DAF assets will not show up on a FAFSA, potentially allowing you to qualify for some kind of aid. 2) Additionally, tax clumping during FAFSA years may also increase eligibility for aid. 3) A person committed to charitable gi...
by MrBeaver
Sat Sep 15, 2018 1:22 am
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3711

Re: DAF > Roth IRA? 12% tax bracket, no taxable

I think of this DAF strategy as something like an HSA or a 529, a special investment dedicated to a stream of future expenses, with special tax perks. I'm trying to evaluate where in the "order of investment" it fits, and if it makes sense to put money (a large chunk is required up front) to get it...