Search found 32 matches

by zrail
Thu Jan 17, 2019 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Using Cash Reserves to Provide Consistent Cash Flow into Checking Acct
Replies: 8
Views: 659

Re: Using Cash Reserves to Provide Consistent Cash Flow into Checking Acct

I solved this basic problem by having all of my income deposited into a brokerage account and then paying substantially all monthly expenses, absent things that require a live check, from that account. We float everything we can on a 2% cash back card that auto pays from the brokerage account, and t...
by zrail
Fri Jan 11, 2019 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity Cash Management Account - Investments
Replies: 15
Views: 1101

Re: Fidelity Cash Management Account - Investments

Fidelity counts all of the money market funds in a brokerage or CMA account (which is literally just a brokerage account with a few extra features) as settled cash available to trade or withdraw, depending on deposit timing rules. Therefore they’ll sell money market funds to satisfy withdraws or oth...
by zrail
Sun Jan 06, 2019 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: Do I still owe self-employment social security taxes?
Replies: 2
Views: 331

Re: Do I still owe self-employment social security taxes?

Schedule SE will take care of it. You won’t owe Social Security on the 1099 income.
by zrail
Fri Jan 04, 2019 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Wrap investing assets in an LLC
Replies: 19
Views: 1204

Re: Wrap investing assets in an LLC

I don't get how an LLC can provide you protection - wouldn't you be the owner of the equity in the LLC? If you were sued, the equity could be a source of repayment. Plaintiff gets a judgment against you and obtains a judgment lien against the equity in the LLC. Depending on state law, LLC’s can hav...
by zrail
Thu Jan 03, 2019 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: [Tax Help] Post-employment payment: W2 or 1099?
Replies: 14
Views: 541

Re: Post-employment payment: W2 or 1099?

I would wait. There is no rush and they will have the forms to you in a few weeks so you’ll find out then. I wouldn’t be surprised if it just got wrapped into your W2.
by zrail
Wed Jan 02, 2019 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Wrap investing assets in an LLC
Replies: 19
Views: 1204

Re: Wrap investing assets in an LLC

Banks are going to ask if you’re self-employed and since you will say yes you’ll have to show two years of 1040s including all schedules. I don’t know of any circumstance where the government will care about paystubs outside of assistance programs, which you are unlikely to be applying for if you ha...
by zrail
Wed Jan 02, 2019 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Wrap investing assets in an LLC
Replies: 19
Views: 1204

Re: Wrap investing assets in an LLC

What is the actual problem you’re trying to solve with that? All mortgage underwriting is going to make you substantiate income for at least two years, which means either 1040s or W2s. The point of putting yourself on formal payroll would be to generate a W2 every year.
by zrail
Wed Jan 02, 2019 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Wrap investing assets in an LLC
Replies: 19
Views: 1204

Re: Wrap investing assets in an LLC

I’ve thought about this quite a lot over the last few years and basically came to “nope” as my conclusion. The benefits of asset protection via an LLC are significantly oversold, in my opinion. It takes a lot of work (i.e. lawyer fees) to even potentially have a positive effect and without that up f...
by zrail
Mon Dec 31, 2018 6:09 pm
Forum: Personal Finance (Not Investing)
Topic: Can my employEE Solo 401K contribution be funded from 2 separate businesses (S-Corp and LLC)
Replies: 5
Views: 280

Re: Can my employEE Solo 401K contribution be funded from 2 separate businesses (S-Corp and LLC)

You likely have a controlled group of businesses if you own both businesses. A controlled group is treated as one company for 401k purposes so all of your W2 (S-Corp) and self-employment income (sole prop) is counted for employer contributions and you only need one plan. That means you only get one ...
by zrail
Mon Dec 31, 2018 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Why companies don't allow post-tax 401k contribution?
Replies: 11
Views: 1332

Re: Why companies don't allow post-tax 401k contribution?

Another thing is that access to an after tax subaccount is incompatible with the safe harbor rules.
by zrail
Sat Dec 15, 2018 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 186
Views: 19664

Re: Fidelity as a one stop shop

We use Fidelity for everything: taxable, cash management, IRAs, solo 401k, UTMAs and 529s. We use a normal brokerage account for taxable investing and day to day cash management and all of our "trusted" direct deposits and automatic withdrawals (credit card payments, insurance automatic payments, et...
by zrail
Thu Dec 13, 2018 11:56 am
Forum: Investing - Theory, News & General
Topic: Ok to invest in an LLC?
Replies: 33
Views: 1704

Re: Ok to invest in an LLC?

In my limited experience, operating agreements state membership in an exhibit and say “as amended from time to time” and have a whole section with rules for admitting new nembers. Single-member llc operating agreements are the only ones I’ve seen that omit all of that.
by zrail
Sun Dec 09, 2018 7:30 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 4054
Views: 1102538

Re: What Movie Have You Recently Watched?

Frozen.

Twenty six times and counting.

Why yes I do have a toddler why do you ask?
by zrail
Sat Dec 01, 2018 7:12 am
Forum: Investing - Theory, News & General
Topic: Stock Buybacks Don't Increase Share Prices
Replies: 33
Views: 2824

Re: Stock Buybacks Don't Increase Share Prices

My understanding of market capitalization is Number of outstanding shared * current market price A share buyback works by reducing the left side of that formula in the hopes that the market will see increased earnings per share (same earnings, fewer shares) and increase the right side. Market cap do...
by zrail
Sat Nov 24, 2018 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Lump Sum into a taxable account, with monthly withdrawals to pay down mortgage?
Replies: 12
Views: 1194

Re: Lump Sum into a taxable account, with monthly withdrawals to pay down mortgage?

If you’re planning on moving in 10 years why are you accelerating payments at all? I would just lump sum invest and leave it. If you need it for the new house, you’ve got it without having to work out as much bridge financing.
by zrail
Mon Nov 12, 2018 6:30 pm
Forum: Investing - Theory, News & General
Topic: Feedback on "auto pilot" strategy
Replies: 6
Views: 828

Re: Feedback on "auto pilot" strategy

When I read the thread title I imagined we'd be discussing auto-investing in a LifeStrategy fund. I have so many questions! Are you building a portfolio of individual stocks? Does the Robinhood API let you buy fractional shares? If not, how are you dealing with the need to rebalance partial shares? ...
by zrail
Sun Nov 04, 2018 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity Visa Rewards - Do you move the cash out of Fido?
Replies: 47
Views: 3568

Re: Fidelity Visa Rewards - Do you move the cash out of Fido?

We use the Fidelity card as our primary card and a Fidelity brokerage as our primary cash account (direct deposit, automatic payments, automatic taxable investing). Rewards just go into the cash position in that account.
by zrail
Sun Oct 28, 2018 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: All-in-one funds vs tax efficient allocation
Replies: 5
Views: 763

Re: All-in-one funds vs tax efficient allocation

This plan seems foolish to me. Presumably you had a reason why you went with all in one funds in the first place, be it simplifying what you need to do when the market changes or what your heirs will need to do when withdrawing. All in one funds have a very important function: they minimize the numb...
by zrail
Sun Oct 28, 2018 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard as a trustee
Replies: 33
Views: 3206

Re: Vanguard as a trustee

My understanding is that Vanguard won’t be a trustee If the trust includes any non-financial assets. They will accept non-Vanguard assets but over time will take every opportunity to convert to their own.
by zrail
Sun Oct 28, 2018 3:54 pm
Forum: Investing - Theory, News & General
Topic: Are you too wealthy for a LIQUID emergency fund?
Replies: 29
Views: 5032

Re: Are you too wealthy for a LIQUID emergency fund?

This is one of those perennial personal finance topics that everyone loves to discuss but at the end of the day there cannot be a general resolution. Everyone’s liquidity needs are different. At the beginning of the journey people have an “emergency fund”. As they proceed they decide two things: fir...
by zrail
Sun Oct 21, 2018 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Investing via LLC or S Corp - is there a self employment tax?
Replies: 6
Views: 469

Re: Investing via LLC or S Corp - is there a self employment tax?

LLC is an entity type. S-Corp is a Federal tax designation. LLCs, by default, have Federal pass through income status, the same as a sole proprietorship or partnership. That means all income that the entity earns retains it’s character as it passses to the owner’s Federal tax return. Captital gains ...
by zrail
Tue Sep 18, 2018 8:21 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance...Social Security also pays?
Replies: 25
Views: 1558

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

Don't think you can sock away the benefits in a savings account in the child's name with an eye for future college funds, a car for h.s. graduation, trip to Europe, etc. At the end of the term SSA will send you a form requesting a breakdown by category for how the money was spent, and, if any is le...
by zrail
Sun Aug 12, 2018 10:38 am
Forum: Personal Finance (Not Investing)
Topic: REITs - 20% Qualified Income Deduction
Replies: 40
Views: 4558

Re: REITs - 20% Qualified Income Deduction

Mutual funds are pretty explicitly pass through entities. I don’t understand how someone could look at these regulations and say REIT funds aren’t included, but I’m not an expert.
by zrail
Sun Aug 12, 2018 8:16 am
Forum: Personal Consumer Issues
Topic: Joint checking accounts.
Replies: 26
Views: 2197

Re: Joint checking accounts.

All direct deposits go to our joint account and then we have small automatic transfers to individual accounts. Seems to work well.
by zrail
Thu Aug 09, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: 529 vs. placing appreciated securities into a UTMA account
Replies: 7
Views: 387

Re: 529 vs. placing appreciated securities into a UTMA account

I don't know how CA laws are going to change (I don't think many states have publicly contemplated how TCJA affects their own tax forms yet), but I will say that this is exactly how I'm handling my daughters' college savings. My plan is to dump appreciated shares into their UTMAs every year and tax ...
by zrail
Sun Aug 05, 2018 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Earn 1.5% on your checking account without the usual hoops (at Fidelity)
Replies: 66
Views: 9596

Re: Earn 1.5% on your checking account without the usual hoops (at Fidelity)

I set this up last week. The key thing in my mind is that they’ll only liquidate money market funds in the linked brokerage account, so if there is money in there you don’t want available for immediate spending just buy into a bond fund.
by zrail
Wed Aug 01, 2018 11:50 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 798
Views: 81678

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

How will this self-indexed index be created and managed and how will that differ from existing indexes?
The indexing methodology is linked from Fidelity's info page. It seems pretty straightforward.
by zrail
Sun Jul 15, 2018 8:21 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone not have a Budget?
Replies: 115
Views: 7975

Re: Anyone not have a Budget?

My wife and I have a budget, but it's descriptive, not proscriptive. Meaning, we look back and see what we actually spent to determine what the budget should be. We then use the budget to estimate future spending, determine our emergency fund level, etc. We don't ever try to control spending based o...
by zrail
Thu Jul 05, 2018 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Solo 401(k) Limits and Controlled Group Rules
Replies: 3
Views: 310

Re: Solo 401(k) Limits and Controlled Group Rules

I've been in the same situation, except with two LLC S-Corps and a sole prop. The advice that I've gotten from Mark at MySolo401K is that, because I completely own all three businesses (one jointly with my wife) that they are a controlled group. My profit sharing max is thus 25% of the payroll for t...
by zrail
Sat Feb 03, 2018 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: Opening an LLC for investing: tax advantages?
Replies: 12
Views: 1835

Re: Opening an LLC for investing: tax advantages?

I've thought long and hard about doing this (bouncing the idea off of multiple accountants and attorneys) and came around to the idea that it just makes things harder. Capital gains are explicitly disallowed from the 199A deduction, so there's no new tax reason to do this. S-corps in particular make...
by zrail
Sun Jan 28, 2018 9:23 am
Forum: Investing - Help with Personal Investments
Topic: Investment thought loops have been destroying me
Replies: 31
Views: 1643

Re: Investment thought loops have been destroying me

I strongly suggest seeking out psychotherapy. When I had some similar issues therapy was very helpful for providing me with tactics for addressing anxieties like that. It’s typically not a “forever” thing. Most of the time you only need a few sessions to get you over the hump and learn the technique...