Search found 48 matches
- Tue Jun 22, 2021 1:14 pm
- Forum: Personal Finance (Not Investing)
- Topic: Opt out for Advance Child Tax Credit payments available at IRS.gov
- Replies: 80
- Views: 7414
Re: Opt out for Advance Child Tax Credit payments available at IRS.gov
I appreciate the response, but my question is different. Assume your 2020 AGI was over the threshold - do you still need to opt out?
- Tue Jun 22, 2021 1:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: Opt out for Advance Child Tax Credit payments available at IRS.gov
- Replies: 80
- Views: 7414
Re: Opt out for Advance Child Tax Credit payments available at IRS.gov
Sorry if this has already been asked, but if you are above the income limit, will you simply not get the advanced payments? Or will you get the advanced payments (if you don't opt out) then have to pay them all back when you file your 2021 income taxes?
- Thu Dec 31, 2020 9:32 am
- Forum: Personal Investments
- Topic: Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
- Replies: 13
- Views: 1330
Re: Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
I think you are just describing the 4% rule (?). If so then yes, there is a lot of evidence that this works if you keep the right asset allocation (I want to say 70/30 but I could be wrong on that) You may be right. I am admittedly not very savvy, so I previously thought of the 4% rule as selling 4% of the investments and did not think at all about the dividends and interest generated each year, such that the total principal would be drawn down year after year. But perhaps my thinking was wrong and in reality if, rather than reinvesting the dividends and interest, you peel off the annual dividends and interest, you may only need to sell 2% of the investments. It may be a distinction without a difference. I guess I would have to check and s...
- Thu Dec 31, 2020 9:31 am
- Forum: Personal Investments
- Topic: Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
- Replies: 13
- Views: 1330
Re: Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
This is an interesting possibility that was not on my radar. Thanks. If partial distributions are not presently allowed, it looks like I have about 18 years or so to get that policy changed!Aelron wrote: ↑Tue Dec 29, 2020 5:05 pm If you haven't already, you should verify that your company's 401k allows partial distributions after termination. If not, you would only be eligible to do a single rule of 55 distribution. A lot of companies will not support partial distributions, because they don't want the extra administration effort that would be required. I ran into this issue myself.
- Tue Dec 29, 2020 1:26 pm
- Forum: Personal Investments
- Topic: Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
- Replies: 13
- Views: 1330
Re: Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
Excellent, congratulations! Great foresight splitting 50/50. My tax allocation among accounts seems to be the largest "deficiency" in my total portfolio.printer86 wrote: ↑Tue Dec 29, 2020 12:59 pm You're describing me. I just retired at 56 with a paid off house and a little more than $3 large in investable assets. However, half of this money resides in our taxable accounts. This 50/50 split will allow us to "manage" our MAGI until we reach Medicare age. Our 2021 ACA premium is expected to be $0.
Also, at 56, I still have the necessary 35 years of Social Security earning. My SS and DW's spousal SS will get us another $52k per year if we claim on my 67th birthday or $60k per year if we claim on my 70th birthday.
It's doable. Good luck
- Tue Dec 29, 2020 12:42 pm
- Forum: Personal Investments
- Topic: Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
- Replies: 13
- Views: 1330
Re: Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
What will your health care premiums be? I ask because quoted premiums for us are in excess of $25,000 per year for two of us at age 61; however, we manage modified adjusted gross income and qualify for premium tax credit so the cost for us is $0. Just wondering what the dollar amount is of the trade off you were making with this plan. Musing around with alternatives, like taking out two or more years of expenses so you lose qualification for premium tax credits in one year, but qualify for them for subsequent years. That’s assuming they remain available of course. Or locking in HELOC rates now, which in our community are 5% fixed for five years, and having that available to support cash flow as needed. I don’t know your other sources of po...
- Tue Dec 29, 2020 12:24 pm
- Forum: Personal Investments
- Topic: Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
- Replies: 13
- Views: 1330
Re: Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
I think you are just describing the 4% rule (?). If so then yes, there is a lot of evidence that this works if you keep the right asset allocation (I want to say 70/30 but I could be wrong on that) You may be right. I am admittedly not very savvy, so I previously thought of the 4% rule as selling 4% of the investments and did not think at all about the dividends and interest generated each year, such that the total principal would be drawn down year after year. But perhaps my thinking was wrong and in reality if, rather than reinvesting the dividends and interest, you peel off the annual dividends and interest, you may only need to sell 2% of the investments. It may be a distinction without a difference. I guess I would have to check and s...
- Tue Dec 29, 2020 11:03 am
- Forum: Personal Investments
- Topic: Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
- Replies: 13
- Views: 1330
Critique This Potential 401k Drawdown Strategy - Can It Really Be This Simple?
Hi everyone, can you please critique this potential 401k retirement withdrawal strategy? It seems too simple to be right. Assume that when I am 56, my 401k balance will be $3M. I quit my job, and begin withdrawals from the 401k. Because of the Rule of 55, there are no penalties on those withdrawals even though I would not be 59.5 yet. I withdraw $60k of dividends and interest each year. That's initially 2% of the total balance, and historically a (I think) reasonable assumption for annual dividends+interest percentage. I also withdraw $60k of additional balance from the 401k each year. That's also 2% of the total balance. Of course the entire $120k in withdrawals is fully taxable, but even after taxes I assume that amount to cover my annual...
- Fri Dec 04, 2020 12:44 pm
- Forum: Investing - Theory, News & General
- Topic: How do Bogleheads cope with FOMO? [Fear Of Missing Out]
- Replies: 258
- Views: 20647
Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]
I like to think I avoid FOMO in the market the same way I avoid FOMO in the rest of my life: by identifying what matters most and what is "enough." If I keep my life consistent with those values and trust that I am implementing my long term plan to stay on track to achieve my realistic goals, I don't give an "F."
- Mon Feb 24, 2020 8:34 am
- Forum: Personal Investments
- Topic: Dow Futures down 426 for Monday 2/24/20. Buying anything today?
- Replies: 155
- Views: 17346
Re: Dow Futures down 426 for Monday 2/24/20. Buying anything today?
I have a month's worth of uninvested cash sitting in the investment portion my HSA account at TD Ameritrade, so I put in a low limit order to buy more SPTM. If it doesn't hit that low limit today, good. If it does, good.
- Mon Feb 10, 2020 2:34 pm
- Forum: Investing - Theory, News & General
- Topic: I have a wild [asset allocation] theory. Poke some holes in it.
- Replies: 39
- Views: 7221
Re: I have a wild theory. Poke some holes in it.
"How to make a million dollars: first, get a million dollars..."
- Thu Jan 30, 2020 9:30 am
- Forum: Personal Finance (Not Investing)
- Topic: Goal of Early Retirement?
- Replies: 29
- Views: 3946
Re: Goal of Early Retirement?
It seems to me that the main consideration in when you can retire is what you estimate your expenses to be in retirement. If you don't know that, you can't possibly know what's enough for adequate periodic withdrawals, and if you don't know what you need for withdrawals, you can't possibly know how much you need to invest to get to a total sum that's enough, or how that amount is invested or allocated.
Unknown number of years in retirement, costs for health insurance, and number of kids further complicate the analysis.
Unknown number of years in retirement, costs for health insurance, and number of kids further complicate the analysis.
- Mon Jan 27, 2020 8:42 am
- Forum: Personal Finance (Not Investing)
- Topic: Torn Between Aggressive Home Payoff or Investing
- Replies: 67
- Views: 8453
Re: Torn Between Aggressive Home Payoff or Investing
My wife (SAHM) and I were having a similar debate a while back (albeit about a smaller remaining amount on our fixed 3.75% 30 yr mortgage). I was maxing out my 401k and HSA, and contributing to our two kids' 529s, and trying to figure out how to direct the rest of our money. We knew the financial analysis said investing should return more money than paying down the mortgage, but we knew we personally wanted to get rid of our mortgage sooner rather than later. We ended up deciding to split the baby by investing some and directing $700/mo toward paying down the mortgage. How did we arrive at $700/mo? I called my mortgage company and asked them what prepay amount per month would result in paying off our mortgage the summer before our older chi...
- Fri Jan 17, 2020 10:31 am
- Forum: Personal Finance (Not Investing)
- Topic: Paid off $15,000 on a car loan and it feels so good.
- Replies: 9
- Views: 765
Re: Paid off $15,000 on a car loan and it feels so good.
Congratulations! We have about $6,000 left on a 2016 car loan (only other debt is our mortgage) that will be paid off with normal monthly payments in May 2021, and we've been going back and forth about just paying it off. Our normal $400 monthly payment includes only $30 of interest per month, so for now we lean in favor of keeping that $6,000 saved in our virtual envelope/emergency savings in case our older (paid off) car dies in the interim. I'm thinking once the loan gets below $2,500, I won't be able to resist the temptation to pay it off though.
- Mon Jan 06, 2020 1:21 pm
- Forum: Investing - Theory, News & General
- Topic: OFFICIAL REGISTRATION FOR THE 2020 BOGLEHEAD CONTEST
- Replies: 688
- Views: 36373
- Fri Dec 20, 2019 10:58 am
- Forum: US Chapters
- Topic: Post your Financial Milestone Announcements Here
- Replies: 3606
- Views: 562466
Re: Post your Financial Milestone Announcements Here
Checking in about two years later (now 37/36/5/2): We ended our PMI payments last month, and our net worth* -- at least momentarily -- has hit $1M!GetMeToRetirement wrote: ↑Thu Jan 18, 2018 5:38 pm New to the forum and really enjoying it so far! Our family (35/34/3/0) just hit over $1M in assets last month! We hope to improve that to $1M in net worth after a few more years of paying down the mortgage (depending on market performance of course - largely the 401k).
*Calculation includes a reasonable estimate of our home's FMV*
Next up: Reaching $1M net worth *without* including the FMV of our home.
- Tue Dec 17, 2019 8:30 am
- Forum: Investing - Theory, News & General
- Topic: When/how to spend HSA funds in retirement?
- Replies: 49
- Views: 4633
Re: When/how to spend HSA funds in retirement?
HSA funds can be used to pay Medicare Part B (the part that is deducted from SS), Part C (Medicare Advantage) and Part D (Prescription Drug coverage), thus I'm not worried about using up the funds in the account. In 2020, Part B will be over $1,735 per person ($144/m). If in addition a person budgets $1k out of pocket medical/C & D costs, and $500 dental costs (due to no dental insurance in retirement), the total yearly is $3235 This is helpful - thanks! I always thought (without investigating :oops: ) that HSA funds cannot be used for Medicare premiums. (I still have almost 30 years before then.) I was not sure either - I googled it before I posted the above, and several websites had the same info. Now that you posted this I wanted to...
- Mon Dec 16, 2019 10:56 am
- Forum: Investing - Theory, News & General
- Topic: When/how to spend HSA funds in retirement?
- Replies: 49
- Views: 4633
Re: When/how to spend HSA funds in retirement?
This is helpful - thanks! I always thought (without investigating ) that HSA funds cannot be used for Medicare premiums. (I still have almost 30 years before then.)Saving$ wrote: ↑Sat Dec 14, 2019 3:59 pm HSA funds can be used to pay Medicare Part B (the part that is deducted from SS), Part C (Medicare Advantage) and Part D (Prescription Drug coverage), thus I'm not worried about using up the funds in the account.
In 2020, Part B will be over $1,735 per person ($144/m).
If in addition a person budgets $1k out of pocket medical/C & D costs, and $500 dental costs (due to no dental insurance in retirement), the total yearly is $3235
- Tue Dec 03, 2019 1:49 pm
- Forum: Personal Investments
- Topic: Choosing between 529 Plans
- Replies: 22
- Views: 1361
Re: Choosing between 529 Plans
Agreed. We have two 529s from Utah (callled "My529s"), and the website generates a hyperlink that you can email/text/whatever to anyone who wants to make a special/one-time contribution. It's so simple that the grandparents were able to donate with no follow-up questions!MrCastaway wrote: ↑Tue Dec 03, 2019 12:55 pm Have you considered the Utah plan? We ended up with that one after considering the other ones on the list. It has low fees as a wide variety of investment options, vanguard and dfa. The gift process for others to contribute is set up very well.
- Mon Nov 25, 2019 8:36 am
- Forum: Personal Finance (Not Investing)
- Topic: Retirement age for planning purposes
- Replies: 41
- Views: 3914
Re: Retirement age for planning purposes
I'm 37, so I have a long way to go, and there are a lot of different variables that could affect the age at which I'm able to retire, but I plan to retire two years after I reach financial independence. Obviously I don't know what my returns or sequence of returns will be over the next two decades, so all I can do to predict the timing of financial independence is use FV calculations that I think are reasonable and factor in to the extent possible financial milestones like paying off my mortgage, kids' college plans, etc. Right now I'm using 56, 58, and 60 as potential retirement ages. Is that realistic or too optimistic? I'll let you know in about twenty years.
- Thu Nov 21, 2019 8:46 am
- Forum: Investing - Theory, News & General
- Topic: Schwab acquiring TD Ameritrade
- Replies: 174
- Views: 25868
Re: Schwab acquiring TD Ameritrade
I had a Roth IRA through Scottrade, and the transition to TD Ameritrade, while somewhat delayed, was painless. All I had to do was click a link that was emailed to me, then create a TD Ameritrade username and password.
The investment portion of my hsabank HSA account is also with TD Ameritrade. I would think that hsabank will stay with Schwab as an investment option. I also hope and expect that Schwab will charge no new or different fees from TD, and that there will be plenty of commission-free investment options once it is moved to Schwab.
The investment portion of my hsabank HSA account is also with TD Ameritrade. I would think that hsabank will stay with Schwab as an investment option. I also hope and expect that Schwab will charge no new or different fees from TD, and that there will be plenty of commission-free investment options once it is moved to Schwab.
- Fri Aug 23, 2019 11:12 am
- Forum: Personal Finance (Not Investing)
- Topic: Do you categorize additional contribution to debt repay as saving?
- Replies: 101
- Views: 5249
Re: Do you categorize additional contribution to debt repay as saving?
For the purpose of looking at my ratio of "necessary expenses"/"discretionary expenses"/"savings," I consider the normal monthly payment to my mortgage lender to be a "necessary expense," but I consider my additional $700/mo voluntary prepayments on mortgage principal to be "savings." I just consider it to be a label though, not a strict finance term. While the immediate effect on net worth is a zero sum game, it will save me a lot in future interest payments and significantly reduces the length of the mortgage; barring any emergencies, I will be completely debt-free at 50. Not coincidentally, at my current rate of prepayments, my mortgage will be paid off the summer before my son will start...
- Thu Jun 20, 2019 8:51 am
- Forum: Personal Finance (Not Investing)
- Topic: Paying off my mortgage - what to expect?
- Replies: 46
- Views: 5257
Re: Paying off my mortgage - what to expect?
This is a great idea!Newenglandcowboy wrote: ↑Thu Jun 20, 2019 7:11 am In the first or second month after you pay it off use the money you would have paid for the mortgage and take your friends out for a great night on the town. Fancy dinner, maybe a show, whatever. Our friends did this with their school loan payment and everyone still talks about what a great night it was. It’s already in your budget and this is a fun reward for the payoff.
- Fri Jun 14, 2019 12:42 pm
- Forum: Personal Consumer Issues
- Topic: Petroleum pipeline on property
- Replies: 26
- Views: 11647
Re: Petroleum pipeline on property
Is the house served by public water or well water? Public water service could significantly reduce any consequences of a potential future leak or incident, however likely/unlikely.
- Fri May 31, 2019 9:07 am
- Forum: Personal Consumer Issues
- Topic: SiriusXM Free Trial [on my new car] Ends Today
- Replies: 27
- Views: 2504
Re: SiriusXM Free Trial Ends Today
If you hold off until late December, they'll send a $5/mo for 12 mos offer via email (or at least they have for the last two years). I think that's for the Select package. So far I have resisted temptation and instead listen to FM or downloaded podcasts via bluetooth.
- Fri Mar 29, 2019 4:11 pm
- Forum: Personal Consumer Issues
- Topic: What to see in Philly?
- Replies: 87
- Views: 8457
Re: What to see in Philly?
I'm going to be in Philly in a couple weeks and have five days to kill. I just wanted to bump this thread to see if there are more suggestions. Reading Terminal is definitely on my list as well as the historic district because I'm a history buff. I'm going to be staying near the Convention center on Market street so good places to eat in that area would be appreciated. If you want better and more interesting food than Maggiano's and Capital Grille, PM me. Outsiders think of Philly for cheesesteaks and soft pretzels but the city has an incredible and underrated restaurant scene. Being a cheese steak fan, I definitely want to try a couple while there. From looking at Google maps, there appears to be dozens if not hundreds of very good eating...
- Wed Feb 27, 2019 3:45 pm
- Forum: Personal Consumer Issues
- Topic: Things to do in and around San Diego
- Replies: 33
- Views: 2619
Re: Things to do in and around San Diego
Point Loma: Views of both Pacific Ocean and Bay; best place to see sunset; good hiking; Sunset Cliffs Natural Park
La Jolla: Upscale area right on Pacific with elevated views, wild seals, caves, and hiking paths; good place to rent kayak; The Taco Stand (great tacos); Children's Pool
Petco Park
Old San Diego: Great authentic Mexican restaurants/cantinas
San Diego Zoo
La Jolla: Upscale area right on Pacific with elevated views, wild seals, caves, and hiking paths; good place to rent kayak; The Taco Stand (great tacos); Children's Pool
Petco Park
Old San Diego: Great authentic Mexican restaurants/cantinas
San Diego Zoo
- Fri Feb 01, 2019 1:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: Cost of college and 529
- Replies: 642
- Views: 35103
Re: Cost of college and 529
I can't claim that our method is the optimal strategy, but here goes: With so many unknowns between now and when our two children might go to college in the 2030's (yikes), not the least of which are the future cost of college and what type/location of college they might attend, we decided it was not optimal to try to predict how much college might cost then reverse engineer our contributions from that number. Instead, we first maxed out our annual HSA contribution and my 401k contribution (spouse is stay at home... for now). Then, we figured out what amount of prepayment on our mortgage principal was needed per month to pay off our house the summer before our older kid goes to college, and set up that automatic monthly prepayment. That lef...
- Tue Jan 15, 2019 2:45 pm
- Forum: Personal Consumer Issues
- Topic: Any good reason to get a smartwatch?
- Replies: 93
- Views: 6677
Re: Any good reason to get a smartwatch?
I use my smartwatch constantly. I have no data plan, so after purchase price, there is no monthly cost. I charge it every other night while I sleep (I thankfully have no sleep issues other than my toddler's occasional interruption, so I don't use any of the available sleep tracking apps for the watch). It is a really convenient extension of my phone, so when an email, text, or call notification comes in, I don't have to dig into my pocket for my phone to see if it is important, particularly when driving, and it is a little less inconspicuous to check at meetings/gatherings. It has some other features some folks might not realize as listed below. It's really just a matter of whether these are worth the cost for you. - It constantly monitors ...
- Thu Jan 03, 2019 2:52 pm
- Forum: Personal Finance (Not Investing)
- Topic: What to do with $4k / month
- Replies: 8
- Views: 1429
Re: What to do with $4k / month
Good question - it looks like others have raised the question, and at least some commenters indicated that if you're not getting a good state deduction for the 529, the roth might be the better option.
viewtopic.php?t=200877
viewtopic.php?t=200877
- Thu Jan 03, 2019 1:05 pm
- Forum: Personal Finance (Not Investing)
- Topic: What to do with $4k / month
- Replies: 8
- Views: 1429
Re: What to do with $4k / month
New Jersey's 529 is terrible but I'd recommend opening a top-ranked 529 (e.g. Nevada or My529 Utah) for your child and contributing at least some of that $4,000/mo to take advantage of 15 years of compounding.
Second the backdoor Roth idea.
Second the backdoor Roth idea.
- Tue Dec 11, 2018 9:38 am
- Forum: Personal Consumer Issues
- Topic: To each his own ( I guess ) [Opinions of traveling in retirement]
- Replies: 109
- Views: 9582
Re: To each his own ( I guess ) [Opinions of traveling in retirement]
Call us uncultured but neither of us seem to have much interest in Europe. With absolutely no disrespect intended, I'm interested as to why you do not have much interest in Europe, and perhaps making a list of the pros, cons, and opportunities might lead you to a different conclusion. Of course, you might have already done so and made your decision, and if so, that is admirable. But, if not, some points for consideration: - If it is a belief that the flights are longer, you might compare the total time of travel and find a direct flight to Europe is in actuality not too much longer than a domestic flight across the USA or especially to Alaska. - If it is a belief that travel to Europe is significantly more expensive, maybe you can keep you...
- Fri Oct 19, 2018 8:25 am
- Forum: Investing - Theory, News & General
- Topic: 2019 Retirement Contribution Limits Announced
- Replies: 54
- Views: 8678
2019 Retirement Contribution Limits Announced
[Thread merged into here, see below. --admin LadyGeek]
One year ago, the IRS announced the 2018 increase in 401(k) contribution limit to $18,500. Any idea if we can expect the IRS to announce the 2019 limits today?
One year ago, the IRS announced the 2018 increase in 401(k) contribution limit to $18,500. Any idea if we can expect the IRS to announce the 2019 limits today?
- Tue Oct 16, 2018 8:18 am
- Forum: Personal Finance (Not Investing)
- Topic: The Next Millionaire Next Door: Enduring Strategies for Building Wealth Hardcover will be released October 1, 2018
- Replies: 69
- Views: 16556
Re: The Next Millionaire Next Door: Enduring Strategies for Building Wealth Hardcover will be released October 1, 2018
Out of curiosity, did you find any particular chapter or concept to be very different than the original?timmy wrote: ↑Tue Oct 16, 2018 7:48 am Read it.
My POV ...
It is not a replacement for the original.
Is it a satisfactory refresh of the original? No
Would I recommend it? For big fans of the original, it's probably worth reading. As for everyone else, I suggest the original.
I wish ...
I think a better book would have been to reprint the original with a postscript or afterword, something like ... Today's millionaire ... refreshing key data and stats ... plus some storytelling.
- Mon Oct 08, 2018 9:45 am
- Forum: Personal Finance (Not Investing)
- Topic: The Next Millionaire Next Door: Enduring Strategies for Building Wealth Hardcover will be released October 1, 2018
- Replies: 69
- Views: 16556
Re: Updated Millionaire Next Door
Thank you!Bhairston2018 wrote: ↑Thu Oct 04, 2018 1:31 pm Thread started here...enjoy
viewtopic.php?f=2&t=260087
- Thu Oct 04, 2018 11:58 am
- Forum: Personal Finance (Not Investing)
- Topic: The Next Millionaire Next Door: Enduring Strategies for Building Wealth Hardcover will be released October 1, 2018
- Replies: 69
- Views: 16556
Updated Millionaire Next Door
[Thread merged into here, see below (next page). --admin LadyGeek]
The new "The Next Millionaire Next Door: Enduring Strategies for Building Wealth" was released October 1. Has anybody breezed through it yet, and if so, was there enough "new" and/or "different" content to justify a purchase? (I know I can eventually check it out from my local library, but I'm thinking my spouse will be more likely to read it over time if we own it.) Thanks in advance!
The new "The Next Millionaire Next Door: Enduring Strategies for Building Wealth" was released October 1. Has anybody breezed through it yet, and if so, was there enough "new" and/or "different" content to justify a purchase? (I know I can eventually check it out from my local library, but I'm thinking my spouse will be more likely to read it over time if we own it.) Thanks in advance!
- Wed Jun 06, 2018 2:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: How much money do you want to retire?
- Replies: 1367
- Views: 207825
Re: How much money do you want to retire?
I'm hoping to retire, after paying off our mortgage, when we can withdraw about $6,000 per month (in today's dollars) after taxes at hopefully a 3.5% withdrawal rate.
Beyond maxing out the 401k, I'm aggressively saving in my HSA and kids' 529s, and making early principal payments on my mortgage, in an effort to speed up the arrival date!
Disclaimer: Currently 35 y/o, Spouse 34, Kids 4 and 1, so it's admittedly way to early to reliably predict what impacts inflation, health insurance changes, and tax law changes might have on expenses in the future.
Beyond maxing out the 401k, I'm aggressively saving in my HSA and kids' 529s, and making early principal payments on my mortgage, in an effort to speed up the arrival date!
Disclaimer: Currently 35 y/o, Spouse 34, Kids 4 and 1, so it's admittedly way to early to reliably predict what impacts inflation, health insurance changes, and tax law changes might have on expenses in the future.
- Mon Jun 04, 2018 12:46 pm
- Forum: Personal Finance (Not Investing)
- Topic: What is your Take Home Pay / Gross Pay ratio?
- Replies: 89
- Views: 10411
Re: What is your Take Home Pay / Gross Pay ratio?
~55%
Includes automatic deductions before take home pay that include taxes, max 401k, max HSA, 529 contributions, benefits, and a charitable donation.
Includes automatic deductions before take home pay that include taxes, max 401k, max HSA, 529 contributions, benefits, and a charitable donation.
- Thu May 17, 2018 10:43 am
- Forum: Personal Finance (Not Investing)
- Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
- Replies: 756
- Views: 75007
Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
For reference, the married filing jointly (MFJ) tax brackets in 2018: 10% $0 12% $19,050 22% $77,400 24% $165,000 32% $315,000 35% $400,000 37% $600,000 Plus, you have the $24k standard deduction, so the first $24k is tax free. Now, lets assume at 4% withdrawal rate. This means you can withdraw $24k per year, tax free, and if that's 4% of your portfolio then $24k*25 = $600k. So you need more than $600k in pre tax before it fills your standard deduction. Then, your next $19,050 is taxed at 10%. That's another $476,250 in the portfolio, or $1,076,250, to get to the point where your 4% is filling the 10% bracket. Your next $58,350 is 12% tax. That requires another $1,458,750 in the portfolio, total of $2,535,000, to fill the deduction, 10%, a...
- Tue May 01, 2018 3:18 pm
- Forum: Investing - Theory, News & General
- Topic: Everything You Need to Know on an Index Card
- Replies: 33
- Views: 5827
Re: Everything You Need to Know on an Index Card
- Pay yourself first
- Strict budget from Day 1
- Automate retirement savings Day 1
- Invest in lowest cost, broadest funds
- No bad debt!
- Stay healthy
- Save a ton for your first house
- Make sure you and your future spouse are financially aligned
- Strict budget from Day 1
- Automate retirement savings Day 1
- Invest in lowest cost, broadest funds
- No bad debt!
- Stay healthy
- Save a ton for your first house
- Make sure you and your future spouse are financially aligned
- Tue Apr 24, 2018 2:35 pm
- Forum: Personal Investments
- Topic: Opinions on SPTM ETF in taxable for US stock index fund
- Replies: 33
- Views: 5753
- Fri Apr 20, 2018 12:59 pm
- Forum: Personal Finance (Not Investing)
- Topic: How old are you and how much do you save for retirement a year
- Replies: 244
- Views: 42794
- Wed Apr 18, 2018 1:02 pm
- Forum: Personal Finance (Not Investing)
- Topic: How old are you and how much do you save for retirement a year
- Replies: 244
- Views: 42794
Re: How old are you and how much do you save for retirement a year
As of 2018
Me: 35
Wife (stay at home): 34
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401k contribution: 18,500 per year
401k "matching" from employer: ~8,500 per year, depending on fluctuating deferred compensation percentage
HSA: 6,850 per year
After tax: 2,400 per year
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Also, extra mortgage principal payments per month and usually an extra payment in December, which I consider to be like saving for retirement: 2,400-3,000 per year
Me: 35
Wife (stay at home): 34
/////
401k contribution: 18,500 per year
401k "matching" from employer: ~8,500 per year, depending on fluctuating deferred compensation percentage
HSA: 6,850 per year
After tax: 2,400 per year
/////
Also, extra mortgage principal payments per month and usually an extra payment in December, which I consider to be like saving for retirement: 2,400-3,000 per year
- Tue Mar 20, 2018 8:17 am
- Forum: Personal Consumer Issues
- Topic: Is a Model Release normal for wedding videography?
- Replies: 28
- Views: 3654
Re: Is a Model Release normal for wedding videography?
Agreed. Strike out that provision, and put your initials in the margin next to the stricken paragraph before signing. If the videographer comes back and protests, then you can ask why he/she is fighting so hard for that provision; chances are, he/she will just accept the provision as stricken.
- Fri Feb 02, 2018 2:09 pm
- Forum: Investing - Theory, News & General
- Topic: Leaning Toward Paying Extra Principal to 30 Year Mortgage
- Replies: 15
- Views: 2095
Re: Leaning Toward Paying Extra Principal to 30 Year Mortgage
Personally, I would split the money and do both, but in my opinion, your age and retirement horizon are important factors to consider. If you have a goal of paying off the mortgage before retiring, and also have a goal of retiring early, then it probably makes sense to allocate more of the "extra" money at your disposal to paying down the mortgage than investing, given that you're already maxing out your retirement accounts. Either way, it sounds like you're in a great situation, congratulations!
- Fri Jan 26, 2018 9:10 am
- Forum: Investing - Theory, News & General
- Topic: 401k millionaires
- Replies: 158
- Views: 32118
Re: 401k millionaires
I am 35, and my 401(k) balance hit $460k this week. I have been contributing 10% (not including my employer's 1.5% match and 2-4% "profit sharing") per year to my 401(k) since I was first eligible in 2008. This year will be the first year that my 10% contribution gets me to the contribution limit of $18.5K, and I am super excited in the nerdiest of ways. Perhaps most importantly, whenever a market correction does happen, I'll keep contributing to the max and should have plenty of years to ride the wave back up, and someday will become a fellow 401k millionaire! I also just started contributing to an HSA ($500/mo) based upon a few posts I've seen here and elsewhere, will max it out next year, and hopefully won't have to touch that ...
- Thu Jan 25, 2018 10:16 am
- Forum: Personal Consumer Issues
- Topic: Board game for 3 year old
- Replies: 36
- Views: 3201
Re: Board game for 3 year old
Although not a board game, my 3 y/o and I highly recommend Castle Logix. "SmartGames Castle Logix challenges kids to construct castles, block by block and tower by tower, flexing logic muscles with this beautifully crafted 3-D wooden puzzle. Assemble the wooden blocks and towers to match the challenge you have selected in the included booklet. With simple challenges for inexperienced builders to complex puzzles that will challenge skilled architects, Castle Logix is a fun way to develop logical thinking skills and spatial reasoning abilities." https://www.amazon.com/SmartGames-SG-01 ... B0012CQFXG
- Thu Jan 18, 2018 5:38 pm
- Forum: US Chapters
- Topic: Post your Financial Milestone Announcements Here
- Replies: 3606
- Views: 562466
Re: Post your Financial Milestone Announcements Here
New to the forum and really enjoying it so far! Our family (35/34/3/0) just hit over $1M in assets last month! We hope to improve that to $1M in net worth after a few more years of paying down the mortgage (depending on market performance of course - largely the 401k).