Search found 55 matches

by NS_Bane
Mon Mar 01, 2021 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax exclusion to switch 529 beneficiary to child?
Replies: 7
Views: 492

Re: Gift tax exclusion to switch 529 beneficiary to child?

My wife has a 529 with about $103k in it. We want to switch the beneficiary from her to our daughter. Since they're directly related (parent/child), would this be at risk of hitting any IRS gift tax limits? If so, would we be able to file IRS Form 709 for a 5-year election? My impression is that th...
by NS_Bane
Mon Mar 01, 2021 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone kept their Amex Platinum or Sapphire Reserve during COVID?
Replies: 39
Views: 2233

Re: Anyone kept their Amex Platinum or Sapphire Reserve during COVID?

Curious if anyone kept them. I get that they’re trying to add value with various perks, but Amex’s piecemeal credits drive me crazy, and I don’t like what Uber Eats or Doordash are doing to small restaurants, plus the travel rewards are pretty useless for now. Is it worth keeping for now or downgra...
by NS_Bane
Fri Feb 26, 2021 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Superfund 529 then change beneficiary?
Replies: 13
Views: 1116

Re: Superfund 529 then change beneficiary?

That's good, for sure. Some of the state credits seem pretty generous. Broken Man 1999 I still don't understand why states don't have mandatory holding periods with clawbacks. In certain states you can funnel unlimited money into a 529 and then pull it out a day later to pay a full year of tuition ...
by NS_Bane
Tue Feb 23, 2021 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Private School - financially irresponsible?
Replies: 189
Views: 12851

Re: Private School - financially irresponsible?

We are paying 21K a year for our daughter. She just started preschool. We live in NYC. By the time she reaches elementary, will move to suburbs with excellent schools. Holy moly. I live in East Harlem, and I will not be sending our kid to the public preschool nearby. Ideally we will be in the Upper...
by NS_Bane
Tue Feb 23, 2021 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Private School - financially irresponsible?
Replies: 189
Views: 12851

Re: Private School - financially irresponsible?

But you can now spend 529 withdrawals to pay for the education part. New York State does not allow 529 withdrawals for K-12 education. This is not correct. You can use 529 withdrawals to pay for K-12 education in NY. However, NY will not give you a tax break if you do so. https://www.nytimes.com/20...
by NS_Bane
Mon Feb 22, 2021 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Private School - financially irresponsible?
Replies: 189
Views: 12851

Re: Private School - financially irresponsible?

But you can now spend 529 withdrawals to pay for the education part. New York State does not allow 529 withdrawals for K-12 education. This is not correct. You can use 529 withdrawals to pay for K-12 education in NY. However, NY will not give you a tax break if you do so. https://www.nytimes.com/20...
by NS_Bane
Mon Feb 22, 2021 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Private School - financially irresponsible?
Replies: 189
Views: 12851

Re: Private School - financially irresponsible?

What public elementary school would they go to? https://schoolzones.us/nyc/ What's the public school's ratings on GreatSchools.org? Have you considered front loading the 529 with your cash to pay for private school grade school tuition? See https://www.nytimes.com/2017/12/21/your-money/529-plans-tax...
by NS_Bane
Fri Feb 19, 2021 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: When to roll over 529 to my kids?
Replies: 16
Views: 859

Re: When to roll over 529 to my kids?

Any other comments? It sounds like I need to open up two new 529s, one in each kids name, and then slowly gift contributions ($15k per year) from each of our current 529s to the new 529s, or front load $75k per account. A little complicated, but I suppose that is doable. Just to be clear you and yo...
by NS_Bane
Fri Feb 19, 2021 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: When to roll over 529 to my kids?
Replies: 16
Views: 859

Re: When to roll over 529 to my kids?

There are no tax consequences or penalties when a 529 plan beneficiary is changed to a member of the beneficiary’s family. Qualified family members include the beneficiary’s: Spouse Son, daughter, stepchild, foster child, adopted child or a descendent Son-in-law, daughter-in-law Siblings or step-si...
by NS_Bane
Thu Feb 18, 2021 12:55 pm
Forum: Personal Investments
Topic: vanguard 529 annual contribution limit
Replies: 2
Views: 301

Re: vanguard 529 annual contribution limit

I read vanguard 529 (Nevada). It just says you can't contribute if the account exceeds 500k. But it doesn't specify annual limit. If my wife and I contribute to my kids, will it be 15000x2 (gift limit) per year? There is no annual limit. There is the annual $15k gift tax exemption, but if you contr...
by NS_Bane
Thu Feb 18, 2021 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: When to roll over 529 to my kids?
Replies: 16
Views: 859

Re: When to roll over 529 to my kids?

Wife and I created 529s for each of our kids when they were in the womb, using my name (for one) and spouses name for the other. Eventually, we will need to transfer these to our kids. We have 231k in the two accounts, about evenly split. I am thinking that we should do this pretty soon to avoid an...
by NS_Bane
Sun Feb 14, 2021 7:11 am
Forum: Investing - Theory, News & General
Topic: Why the disdain for managed funds like ARKK that destroy total market funds?
Replies: 502
Views: 39280

Re: Why the disdain for managed funds like ARKK that destroy total market funds?

Sure, if you could predict the future you would just buy the highest performing fund. +1. However, I think you should slightly adjust your strategy. Sure, ARKK performed better than a benchmark from 2015-2020, but has it performed the best of all managed funds? You should consider finding the manag...
by NS_Bane
Wed Feb 03, 2021 4:28 am
Forum: Personal Investments
Topic: 34(Him) and 33(Her) Portfolio Update - sizable inheritance
Replies: 52
Views: 4660

Re: 34(Him) and 33(Her) Portfolio Update - sizable inheritance

Why aren’t you putting the money in a brokerage account according to your asset allocation?
by NS_Bane
Tue Jan 12, 2021 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone have any good personal finance software they actually recommend?
Replies: 12
Views: 1349

Re: Does anyone have any good personal finance software they actually recommend?

I use YNAB for daily spend and Quicken for investments. For budgeting, you really can’t beat YNAB. My only issue is they make credit cards way too confusing. When I add them, I classify them as “bank accounts” or something like that. I like Quicken a lot for I’m not sure what you mean about budgetin...
by NS_Bane
Fri Jan 08, 2021 5:54 pm
Forum: Personal Investments
Topic: Mega Backdoor Question
Replies: 10
Views: 801

Re: Mega Backdoor Question

Hi all, it seems my employer may not allow for all of the necessary steps to perform a Mega Backdoor Roth but I want to confirm. My 401k is managed by Vanguard. My company allows for the standard pre-tax and after-tax contributions. We can also make Roth contributions. Right now I am maxing the pre...
by NS_Bane
Mon Jan 04, 2021 9:28 am
Forum: Personal Investments
Topic: Taxable to 529
Replies: 6
Views: 431

Re: Taxable to 529

Does your state 529 plan even offer VTSAX? In New York you only get a deduction if you use the state plan, and they don’t offer VTSAX.
by NS_Bane
Sun Jan 03, 2021 7:28 pm
Forum: Personal Investments
Topic: How good is a 529?
Replies: 27
Views: 2095

Re: How good is a 529?

I ran the math recently in another recent 529 thread for my personal scenario (note: different state from IL) comparing 529 with state tax deduction vs taxable for qualified/nonqualified withdrawals. I found that the "breakeven point" was about 33% qualified vs non-qualified withdrawals. ...
by NS_Bane
Fri Jan 01, 2021 6:43 pm
Forum: Investing - Theory, News & General
Topic: The Case Against 529's
Replies: 219
Views: 12453

Re: The Case Against 529's

The penalty for not using the funds on education is federal income tax, state income tax, and 10%...This can easily add up to over 50% penalty. The maximum you will pay for investing in a taxable account is 20% on the growth...and in fact some will be paying 0% and only minimal income tax on the di...
by NS_Bane
Wed Dec 09, 2020 10:06 am
Forum: Investing - Theory, News & General
Topic: Is it really worthwhile to save HSA funds instead of using them now?
Replies: 104
Views: 8511

Re: Is it really worthwhile to save HSA funds instead of using them now?

I believe that even with separate insurance plans, you cannot have both an FSA and HSA. Even though your wife has a separate plan with an FSA, your spouse can get reimbursement for medical expenses you incur-thus making you a covered person under an FSA. Definitely confirm, but my understanding is ...
by NS_Bane
Thu Nov 26, 2020 9:44 am
Forum: Personal Investments
Topic: Mortgage Payoff goes against every fiber of my being
Replies: 72
Views: 7773

Re: Mortgage Payoff goes against every fiber of my being

You have strong beliefs that market risk has increased below your tolerance. If that’s the case, do whatever you need to do to feel more comfortable. Just know that people time the market for a variety of reasons, but primarily because of greed or fear. And market timers rarely admit that - it’s jus...
by NS_Bane
Sun Nov 01, 2020 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Father died intestate - sibling executor is estate attorney on power trip
Replies: 57
Views: 5527

Re: Father died intestate - sibling executor is estate attorney on power trip

OP, you get what you pay for. That includes legal advice. If this is truly important to you, I hope you end up talking to someone who does this for a living, and not stop at an online forum dedicated to index investing.
by NS_Bane
Wed Oct 28, 2020 3:17 pm
Forum: Personal Investments
Topic: What’s “your number” for each kid’s 529?
Replies: 439
Views: 27745

Re: What’s “your number” for each kid’s 529?

I am currently funding $100 a month to our daughters 529 plan. Not much but there is a state deduction as well as the tax benefits when withdrawing. I am trying to understand why some people are saying there is no benefit to putting money in a 529 if your state doesn't offer any tax benefits. Sure ...
by NS_Bane
Wed Oct 28, 2020 2:26 pm
Forum: Personal Investments
Topic: What’s “your number” for each kid’s 529?
Replies: 439
Views: 27745

Re: What’s “your number” for each kid’s 529?

My goal is $400k per child (currently 6 and 3), with about half that front loaded into 529’s and the other half in earmarked taxable accounts. The idea is to hedge my bets in case college is not in the cards. I’m sorry can you explain that? You put $200k up front in the 529s? Why would you ever nee...
by NS_Bane
Mon Oct 19, 2020 7:12 am
Forum: Personal Consumer Issues
Topic: What lifestyle creep made you happier?
Replies: 626
Views: 85473

Re: What lifestyle creep made you happier?

Ordering appetizers on the menu.
by NS_Bane
Sat Oct 17, 2020 8:26 am
Forum: Investing - Theory, News & General
Topic: Student Loans vs. Retirement Accounts.
Replies: 27
Views: 1659

Re: Student Loans vs. Retirement Accounts.

What am I missing that makes paying off debt such a clear choice to most people? Risk tolerance. The personal finance industry is geared toward an audience that has lower risk tolerance, which is why it emphasizes paying off debt. Debt represents a fixed monthly cost and there is always a risk you ...
by NS_Bane
Sat Oct 17, 2020 8:18 am
Forum: Personal Investments
Topic: Best paid software for tracking investments?
Replies: 10
Views: 1311

Best paid software for tracking investments?

I'd like to use software to track my investments. I know Personal Capital is really popular right now, but I really don't like the idea of "free" services in general. Right now I'm using Quicken, but I find it underwhelming. Does anyone have any recommendations? I do like how Personal Capi...
by NS_Bane
Mon Oct 12, 2020 8:05 am
Forum: Personal Investments
Topic: Mid-40s, basically nothing in taxable, please advise
Replies: 40
Views: 6657

Re: Mid-40s, basically nothing in taxable, please advise

I realize that the student loans are a pretty low interest rate, but I'd add them to the list of things to put money toward. Think about it like this, what if you were offered a risk-free return of 1.625% on a savings account right now. Many would jump at this chance. Think about it like this. If y...
by NS_Bane
Mon Oct 12, 2020 7:57 am
Forum: Personal Investments
Topic: 529 vs Taxable Account
Replies: 49
Views: 3864

Re: 529 vs Taxable Account

<<529 plans are not for every situation, but for many they provide a pretty substantial tax benefit. (We have saved 10's of thousands of dollars using them).>> To be very precise, it provides substantial tax benefits for those with an annual gross household income above 200K. It is a great tax brea...
by NS_Bane
Sat Oct 10, 2020 9:34 pm
Forum: Personal Investments
Topic: Mid-40s, basically nothing in taxable, please advise
Replies: 40
Views: 6657

Re: Mid-40s, basically nothing in taxable, please advise

I realize that the student loans are a pretty low interest rate, but I'd add them to the list of things to put money toward. Think about it like this, what if you were offered a risk-free return of 1.625% on a savings account right now. Many would jump at this chance. Think about it like this. If y...
by NS_Bane
Thu Sep 17, 2020 6:37 am
Forum: Personal Investments
Topic: 529 Advice for California Resident
Replies: 18
Views: 1895

Re: 529 Advice for California Resident

Bfwolf wrote: Thu Sep 17, 2020 1:27 am IMO, all the state's discussed so far have very good 529s (well, I don't know anything about Virginia's). It's splitting hairs deciding between them and is not worth the mental energy.
+1.
by NS_Bane
Mon Sep 14, 2020 4:23 pm
Forum: Personal Investments
Topic: How much are your 529 Contributions
Replies: 133
Views: 7932

Re: How much are your 529 Contributions

Wife and I live in New York state and get a state tax deduction for up to $10,000 of 529 contributions per year. We don’t even have a kid and for the past 2 years we’ve maxed out the contribution. When I last did the math, each annual $10,000 contribution meant we saved approximately $1k in NY taxes...
by NS_Bane
Tue Jun 23, 2020 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Any in-house counsel on here? What’s your experience like?
Replies: 19
Views: 4596

Re: Any in-house counsel on here? What’s your experience like?

I have a related question, and since this thread is attracting a lot of the attorneys here, I’d like to hijack if possible. I’m in biglaw and I’d like to move in-house, and I’m having a hard time figuring out what salary I can expect. It’s a bit frustrating given that biglaw compensation at the asso...
by NS_Bane
Fri Jun 19, 2020 9:45 am
Forum: Personal Investments
Topic: Down Payment Savings Method
Replies: 31
Views: 2176

Re: Down Payment Savings Method

KlangFool, OP is asking what is the best way to invest a large amount of money which may be used to make a large purchase in the short term. You’re arguing over the mentality of what to label that money, which I suppose some people might find helpful but really I don’t think it answer’s OP’s questi...
by NS_Bane
Fri Jun 19, 2020 8:55 am
Forum: Personal Investments
Topic: Down Payment Savings Method
Replies: 31
Views: 2176

Re: Down Payment Savings Method

Ed402, << I am surprised, because I have never heard anyone say anything other than it is only ever appropriate to save for a down payment as dedicated cash or cash equivalent. >> What is the gross saving rate of people that you hang around with? The average gross saving rate of my community is 30+...
by NS_Bane
Sat Jun 06, 2020 8:19 am
Forum: Investing - Theory, News & General
Topic: Market Timing - Reallocate bonds to stocks during a crash?
Replies: 7
Views: 472

Re: Market Timing - Reallocate bonds to stocks during a crash?

Certainly, there are scenarios where you could lose money by pursuing your "strategy" if your intuition is wrong. You’re right to point out that my strategy is more of an impulse which makes it hard to evaluate or test. So let me rephrase my question: Will a portfolio of 80/20 stocks/bond...
by NS_Bane
Sat Jun 06, 2020 7:58 am
Forum: Investing - Theory, News & General
Topic: Market Timing - Reallocate bonds to stocks during a crash?
Replies: 7
Views: 472

Re: Market Timing - Reallocate bonds to stocks during a crash?

Unless my math is wrong, the S&P is only 6% off its all time high. Sorry, you’re right. I phrased it incorrectly. I should have said the S&P has recovered 80% of its recent losses, and even then I think I’m underestimating the recent recovery. I’ve simply been eyeballing the S&P 500 cha...
by NS_Bane
Sat Jun 06, 2020 7:39 am
Forum: Investing - Theory, News & General
Topic: Market Timing - Reallocate bonds to stocks during a crash?
Replies: 7
Views: 472

Market Timing - Reallocate bonds to stocks during a crash?

Hi all, When the market went haywire in mid-March, I changed my asset allocation from 80/20 stocks/bonds to 100% stocks . I did it on the theory that, at that time, the market had fallen below a level it would be at in 3-5 years, and by increasing my allocation in stocks I would have additional gain...
by NS_Bane
Sat Jun 06, 2020 7:11 am
Forum: Personal Investments
Topic: Is there a retirement savings "crunch time"- and are we in it??
Replies: 30
Views: 3840

Re: Is there a retirement savings "crunch time"- and are we in it??

There is no crunch time. Honored to have a Livesoft response! :sharebeer But...can you dumb it down a little more for me? You’re overthinking it. There is only one rule, which is that present investments are worth more than future ones. If you want to retire in 30 years, and you’re wondering at wha...
by NS_Bane
Thu Jan 30, 2020 6:03 am
Forum: Personal Finance (Not Investing)
Topic: Paying FICA and Medicare after retirement.
Replies: 4
Views: 499

Re: Paying FICA and Medicare after retirement.

Why would FICA taxes be refunded?
by NS_Bane
Thu Jan 02, 2020 9:06 am
Forum: Personal Finance (Not Investing)
Topic: 900,000 student loan refinancing recomendations
Replies: 71
Views: 8524

Re: 900,000 student loan refinancing recomendations

loans are now paid off, but we also used DRB (now Laurel road) as they offered us the best rate as well as some loan protection - loans forgiven in event of death or disability (heavily consider NOT cosigning loans for this reason). I would apply at several companies and compare terms. also ask abo...
by NS_Bane
Wed Nov 13, 2019 10:12 pm
Forum: Personal Investments
Topic: Schwab IRA -> 401K rollover: always money left
Replies: 3
Views: 326

Schwab IRA -> 401K rollover: always money left

Hi, Schwab is the administrator of my 401K program. I also have my ROTH IRA and tIRA accounts at Schwab. Both last year and this year, I did the mega Backdoor Roth. And both last year and this year, when I rollover the balance of my tIRA to my 401K to avoid the pro rata rule, there is always a small...
by NS_Bane
Thu Nov 07, 2019 4:29 am
Forum: Personal Investments
Topic: Mega Backdoor - Conflicting Feedback
Replies: 11
Views: 820

Re: Mega Backdoor - Conflicting Feedback

My 401K plan only permits two rollovers per calendar year. Sounds like you’re limited to one rollover per year.
by NS_Bane
Tue Sep 24, 2019 1:20 am
Forum: Investing - Theory, News & General
Topic: [Deleted]
Replies: 23
Views: 2221

Re: Private Equity is ready for Vanguard type disruption

It is regulation that prevents grandpa and grandma from investing in PE, not a lack of financial engineering. PE firms would love to have PE index investing available to ordinary investors, as it would increase liquidity and magnify returns.
by NS_Bane
Sun Jul 14, 2019 6:24 am
Forum: Investing - Theory, News & General
Topic: Five Nobel Laureates Recommend The Market Portfolio
Replies: 58
Views: 7578

Re: Five Nobel Laureates Recommend The Market Portfolio

I'd much rather listen to billionaires than academics, Nobel winners or otherwise. Fortunately the message is similar, Bogle and Buffett, etc. Unfortunately the academic institutions that the academics seem to be employed by do not seem to listen. Why do Harvard, etc. dabble in forestry and hedge f...
by NS_Bane
Tue Apr 02, 2019 11:40 pm
Forum: Investing - Theory, News & General
Topic: IRS Roth IRA rule
Replies: 2
Views: 569

IRS Roth IRA rule

Where is the IRS rule which states that contributions to a Roth IRA may be withdrawn penalty free after five years? I don’t see this in the IRS Ariel’s, altho i see this fact written up all over the web on a bunch of sites. Thanks in advance!
by NS_Bane
Wed Feb 06, 2019 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Strategies/timing for financing law school
Replies: 14
Views: 949

Re: Strategies/timing for financing law school

I graduated from a top law school in 2015 with $330,000 in debt and no savings. ($280,000 law school loans, $25,000 personal loan from my firm and the rest in credit card debt). I got a job at a private firm and currently have $165,000 in debt, while I have maxed out my 401K, Backdoor Roth and Megab...
by NS_Bane
Thu Dec 27, 2018 9:05 am
Forum: Investing - Theory, News & General
Topic: Why stay the course? Why not sell all?
Replies: 68
Views: 7668

Re: Why stay the course? Why not sell all?

OP, if you were smart enough to predict the recent crash, and sold everything in September 2018 when the S&P peaked, then I would say you have a good idea. If, however, you were like the rest of us, and back in September 2018 had no idea the market was peaking, do you really think you will be ab...
by NS_Bane
Sun Nov 18, 2018 11:07 pm
Forum: Personal Investments
Topic: anyone buying individual stocks or sector ETF's?
Replies: 12
Views: 1428

Re: anyone buying individual stocks or sector ETF's?

37 yo. Married. income 500k/year. In my taxable (since 2018) [241k] vtsax: 95k (@ 66.56) vti: 83k (@ 137.12) apple: 46k (@ 201.50) nvda: 16k ($63.72) amazon: 16k ($1618.69) roth IRA (since 2017) [10.9k] qqq: 10.9k 401k (since 2016 + rollover) [106k] schwab s&p: $83.3k (future each payroll is 70...
by NS_Bane
Wed Oct 31, 2018 12:01 pm
Forum: Personal Investments
Topic: Backdoor Roth for $ deposited in January
Replies: 5
Views: 371

Re: Backdoor Roth for $ deposited in January

Thanks for your responses everyone. 1) she is rolling over her tIRA to her 401k account so the pro rate rule will not apply. 2) her AGI is over the limit so she cannot contribute directly to a Roth IRA. 3) The idea is to maximize the amount she can rollover to her Roth without paying even $1 in addi...