Search found 56 matches

by Bully3000
Fri Jan 24, 2020 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Another Prenup Question............
Replies: 20
Views: 1911

Re: Another Prenup Question............

I'm a big proponent of prenups if they are written fairly. I'm sure you will agree that "fairness" is in the eye of the beholder. I agree which is why it needs to be discussed and not sprung on a person. OP after being going through a difficult divorce has good reason to be cautious and want a prenup. Any loving partner should understand that and should have a fair discussion about the subject. agreed, i am not looking to screw her but also not looking to put myself in a position of weakness where i can lose more than i should. I live in a community property state and totally agree with 50/50 split but the way the law works makes it easy to manipulate, my X should not have received Alimony but it worked out cheaper for me to pay ...
by Bully3000
Fri Jan 24, 2020 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Another Prenup Question............
Replies: 20
Views: 1911

Re: Another Prenup Question............

EnjoyIt wrote: Fri Jan 24, 2020 2:53 pm I'm a big proponent of prenups if they are written fairly.

It is always much easier to be fair with each other now, when you love each other as compared to a time later when you are getting divorced and you can cut the hatred and resentment with a butter knife.

Unfortunately according to statistics one is more likely to get divorced if they have been divorced before. This may not be your reality, but it is a statistical fact.
Yes my X was like this, she tried to destroy me and love the position of power she had
by Bully3000
Fri Jan 24, 2020 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Another Prenup Question............
Replies: 20
Views: 1911

Re: Another Prenup Question............

OP You didn't mention your age or the age of your future wife. Do you plan on having children? How old are your children? Are the kids college funded or will that come out of earnings after you are married? How will your wife feel about "her earnings" going toward your children's college? These on going expenses have to be considered when writing a prenup. Along with a prenup you need estate planning as well. If you were to die your children could lose out on their portion of your estate. Have you had a discussion about a prenup and addressed any concerns? A fair prenup protects both parties. My two cents. I am 38 and she is 34. Children 11 and 9. I have been saving for them and will will continue to do so, it is $200 per month p...
by Bully3000
Fri Jan 24, 2020 7:44 am
Forum: Personal Finance (Not Investing)
Topic: Another Prenup Question............
Replies: 20
Views: 1911

Re: Another Prenup Question............

8foot7 wrote: Thu Jan 23, 2020 6:36 pm You’re at 425k including home equity and she is at just about 100k. Not sure I’d worry too much at those asset levels though I can certainly understand if you’ve already lost 50% once that the idea of doing so again is nauseating. That reasoning could give you air cover to bring it up.

I agree that maintaining the house separately and waiving alimony gets you most of the way there. Be sure to document values.
Yes I think you are right, also I did forget to mention kids 529's but that is basically all that needs to be done I agree,
by Bully3000
Fri Jan 24, 2020 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Another Prenup Question............
Replies: 20
Views: 1911

Re: Another Prenup Question............

All things considered, things are pretty equal across the board, and what is not equal is IMHO not a substantive "deal breaker". Consider starting out equally without a prenup and building a strong financial base together going forward. So far. . . who had brought up the topic of a prenup? (no need to answer). Congratulations on this wonderful event. For some, a second chance. How fortunate. j :happy :D Thanks, I wish I had been better protected the first time around but after writing it down it doesn't appear too bad. I brought up the prenup since i was stung so bad last time, it is an awful feeling when your X moves in with a guy who has a lot more money and can wait it out and use the legal system to tear apart your financial ...
by Bully3000
Thu Jan 23, 2020 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Another Prenup Question............
Replies: 20
Views: 1911

Another Prenup Question............

Quick background Him - Divorced with 2 kids 50% custody, Earnings Fluctuate but 180k average. Not too many assets since I was previously divorced no prenup and got rinsed, Alimony just recently ended also. House worth 425k with 172k mortgage left. 401k - 100k estimate IRA - 12k TA - 28k Online Savings account $30k Her - No kids and earns 85k per year and could go as high as 120k Assets Online Savings 1 - 30k Online savings 2 - about 50k (saving for rental property deposit) 401k - 16k estimate IRA - 8k She is responsible with money and we are mostly on the same page with finances, we both plan to max 401k's and an IRA each year, i feel like i should get a Prenup to protect the children in event of divorce regarding the house but it doesn't s...
by Bully3000
Mon Jan 13, 2020 9:47 am
Forum: Personal Investments
Topic: IRA worth it given salary / income dynamics?
Replies: 18
Views: 1921

Re: IRA worth it given salary / income dynamics?

yes, you can add $6000 at the end of each year and then convert immediately to a ROTH IRA and all gains are Tax free
by Bully3000
Thu Jan 02, 2020 10:56 am
Forum: Personal Finance (Not Investing)
Topic: How much were you able to save this year?
Replies: 142
Views: 13692

Re: How much were you able to save this year?

only 24% of gross which includes, 401k, HSA, IRA, taxable account and i do not include any 529 or kids savings accounts as this is not my money, I also paid a decent amount of alimony and child support. With Alimony gone and a being in a better place mentally I would like to aim for 30% of gross this year.
by Bully3000
Tue Nov 26, 2019 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Transfering Money from International property sale
Replies: 4
Views: 462

Re: Transfering Money from International property sale

niceguy7376 wrote: Tue Nov 26, 2019 3:55 pm What is the visa status in US?
Green card
by Bully3000
Tue Nov 26, 2019 8:11 pm
Forum: Personal Finance (Not Investing)
Topic: Transfering Money from International property sale
Replies: 4
Views: 462

Re: Transfering Money from International property sale

stockrex wrote: Tue Nov 26, 2019 3:53 pm Has she ever filed US taxes?
Yes she has.
by Bully3000
Tue Nov 26, 2019 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Transfering Money from International property sale
Replies: 4
Views: 462

Transfering Money from International property sale

Hi all, my Fiance is Russian and has been in the US for about 3 years, she is planning to sell her apartment in Moscow and then transfer the money to the US to either put down on an investment property to rent out or to invest, she has prior used the apartment rent to supplement her parents income and with the exchange rate was about $275 per month

She should net about $45k from the sale.

I want to make sure she does not make any mistakes in terms of being caught out tax wise or paying too much in fees, so how best to approach this and get the money to the US?

Also would there be a better investment than putting down on a rental which could get similar returns?
by Bully3000
Wed Oct 16, 2019 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Prenuptial agreement for moderately successful 30 year olds
Replies: 68
Views: 7784

Re: Prenuptial agreement for moderately successful 30 year olds

As someone who was married for 12 years and is currently in the third year of paying Alimony and lost a significant amount of my net worth and peak earnings in what was then a fast growing company/industry which has set me back YEARS I would strongly recommend a prenup, as someone else said earlier on your post you can agree to the unknown government one which varies depending on the year and the place you live or you can make your own agreement. Even if what is your before the marriage remains it is still your burden to prove it and fight for it which gets expensive, same with Alimony and splitting other assets, lawyers are not cheap. I am engaged and closer to 40 but already discussed with my Fiances, No Alimony House and contributions to...
by Bully3000
Thu Sep 26, 2019 8:34 am
Forum: Personal Consumer Issues
Topic: Physical activity suggestions for a non athletic youth
Replies: 189
Views: 13258

Re: Physical activity suggestions for a non athletic youth

I have a similar son, although not overweight(opposite) very inactive, I just keep having him sign up for a new team sport each season and we try and go ride bikes or swim at weekend
by Bully3000
Fri Sep 13, 2019 5:29 pm
Forum: Non-US Investing
Topic: UK Guy who fell in love and moved later in life to the USA
Replies: 10
Views: 2103

Re: UK Guy who fell in love and moved later in life to the USA

Thanks ! Despite phoning HL they didn't give me these Irish Domiciled $ options. RE a Pre-nup we haven't got one for a variety of reasons - one being we are living in an Equitable Distribution State and I hope to never get to test how equitable that may be! I made this mistake and it cost me big!! We lived back in England before moving to a community property state, if you move at any point you are forced into the rules of the new state or any rule changes within your state will affect you. I know you didn't ask this initially and not the reason you came on the forum but for me a prenup is a must, Alimony is a killer trust me and the state I lived in prior to my current location did not have it, we moved and she filed here so Alimony becam...
by Bully3000
Fri Aug 30, 2019 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: When was the most stressful financial time in your life?
Replies: 142
Views: 24939

Re: When was the most stressful financial time in your life?

Two occasions 2008 after I had only been living in the US for about 6-8 months and my wife at the time became pregnant, her company merged and she was laid off in the merger losing our health insurance coverage and my company laid everyone off so i had to use up savings for Cobra and basics and ended up moving states for a Job and having to share a room in an old college friends house while I saved some money back to get own place. 2017 - Wife Filed for Divorce and ended up wiping out my 401k, savings, having to remortgage the house to a worse rate, borrow cash to pay off XW while increasing my outgoings with Legal bills, Child support and Alimony. I know this post is old I just enjoyed reading it, was looking for stories of people who came...
by Bully3000
Tue Jul 02, 2019 1:37 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3617
Views: 568622

Re: Post your Financial Milestone Announcements Here

back to my pre Divorce Net Worth again, did not really invest or do anything prior to Divorce and pretty much lived pay check to paycheck and contributed minimum to 401k to get match.

Now I Max 401k, opened and Max IRA and use also contribute to a taxable account and have a nice emergency fund.
by Bully3000
Mon Jul 01, 2019 10:48 am
Forum: Personal Finance (Not Investing)
Topic: Feels like never enough in savings?
Replies: 27
Views: 3575

Re: Feels like never enough in savings?

I am the same. I first wanted 3 months, then 6 months, I am currently at 7 months and want 9-12 months and this is inflated a decent amount and room to spare. I was also paying an extra $900 to mortgage a month but cut this back to invest more in a Taxable account since I keep panicking about the 'upcoming recession' and don't want more cash trapped in house. I currently keep my 7 months in a high interest savings account but occasionally transfer more to a taxable since I get conflicted on 'losing' gains by only getting 2.2% in savings account. I think Ideally I would like 6 months in HISA and another 9-12 months in taxable to feel 'enough and even then would probably increase and want 2-3 years LOL. Would be nice to get to the position a ...
by Bully3000
Wed May 22, 2019 8:03 am
Forum: Personal Investments
Topic: $400,000 gift to stepdaughter
Replies: 76
Views: 10253

Re: $400,000 gift to stepdaughter

Why not discus her financial situation with her and see what the best option would be,

She may be trying to buy a house which she could do outright with that money or put down a descent deposit, sh could have the option to go o college and progress in a career.

if she is responsible but uneducated in finance maybe show her how to manage money and this could be a huge life changing event which sets her life on a entire new path
by Bully3000
Wed May 01, 2019 11:46 pm
Forum: Personal Finance (Not Investing)
Topic: My solar investment experience
Replies: 106
Views: 13119

Re: My solar investment experience

sedonashine wrote: Wed May 01, 2019 5:04 pm I have lived in Arizona for 17 years....our "sunshine" could really help the nation's grid...a shame the old mentality still prevails here. We get punished as individuals by Salt River Project and Arizona Public Service (APS) for trying to harness a natural resource. Old greedy farts without much wisdom still seem to govern these utilities~I want better for my country~
I am getting a consultation tomorrow and live on Arizona, I have been trying to research but obviously just find sales fluff, do you not believe it is worth utilizing?
by Bully3000
Tue Apr 30, 2019 11:21 am
Forum: Personal Investments
Topic: Biggest Investment Mistake
Replies: 276
Views: 35154

Re: Biggest Investment Mistake

Not Maxing 401k sooner, I was able for many years but we wasted money on unrequired home upgrades constant new clutter for house, only contributed enough for employee match for many years and assumed it would be adequate.

Not contributing to IRA sooner

Took 401k loan to buy car

Not reviewing what funds my 401k was even invested in.

Left cash in savings accounts earning 0.01% interest

Spending cash to make someone else happy(x-wife) and not prioritizing my own goals and dreams.
by Bully3000
Tue Apr 30, 2019 11:00 am
Forum: Personal Investments
Topic: Biggest Investment Mistake
Replies: 276
Views: 35154

Re: Biggest Investment Mistake

InvestInLife wrote: Fri Jan 11, 2019 8:36 am By far, Marriage.
A permanent windfall loss equaling a decade of my working life.
Got me interested in investing, actually.
Same LOL, the only reason I started researching investing was because I was Broke from Divorce and had to start over.
by Bully3000
Fri Apr 26, 2019 9:20 am
Forum: Personal Consumer Issues
Topic: Why would Ortho push for Invisalign? (non-medical question)
Replies: 41
Views: 8865

Re: Why would Ortho push for Invisalign? (non-medical question)

I am currently on tray number 9 and love it, find it super easy to use, progressing nicely sand minimal discomfort. Zero Speech issues at all, my GF also uses and she had speech issues for about a day, just depends on where your attachments are.

I cannot wait to see end result, I was offered both but selected invisalign as I didnt want to be an adult with braces.
by Bully3000
Fri Apr 26, 2019 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate
Replies: 104
Views: 11801

Re: Savings rate

dbapaddy wrote: Wed Apr 24, 2019 3:55 pm Are we supposed to calculate it? To what end?
I just read 15% is a good figure to work off for retirement or 20-25% for early retirement or a late saver(me due to starting again after divorce)

I calculated I am a little shy of 20% Gross if I don't include include HSA or Mortgage pay down and about 30% if I include those plus other savings, so just wanted to know other peoples calculations to see how far off I am and what/if any adjustments I should make, I do not want to work forever and I do not want to be poor in retirement either.

I do prefer the Calculate expenses and x 25 to get a good idea of how I am doing, this gives me a number to work towards.
by Bully3000
Tue Apr 23, 2019 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Savings rate
Replies: 104
Views: 11801

Re: Savings rate

Thanks all.

Take away is I guess i was asking two questions at once and looks like I got answers to both.
by Bully3000
Tue Apr 23, 2019 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: Savings rate
Replies: 104
Views: 11801

Savings rate

How do people calculate savings rate and what is it comprised of for FI purposes, People say 10-15% for standard retirement or 20-25% for early retirement and some people seem to save above this rate also, what is the savings rate comprised of?

Is it Gross/Net income which is used to calculate the %?

Would an Employee 401k match be included as part of the 'savings' rate or a HSA contribution or extra towards paying down mortgage? or is it strictly money ear marked for retirement such as 401k, IRA and any other investment accounts which are solely for the point of retirement?

Just trying to work out if I save enough.
by Bully3000
Thu Apr 04, 2019 2:47 pm
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 3617
Views: 568622

Re: Post your Financial Milestone Announcements Here

2 years after my Divorce I have recouped 50% of my 401k, first time maxed 401k, IRA and HSA, first time with a financial plan and budget, first time with a fully funded emergency fund and first time on track to not working until i die :happy
by Bully3000
Wed Apr 03, 2019 8:08 am
Forum: Personal Consumer Issues
Topic: How will you spend your retirement money?
Replies: 86
Views: 11982

Re: How will you spend your retirement money?

Hopefully travel a lot more and spend more time on hobbies and with friends.
by Bully3000
Tue Mar 26, 2019 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Paid off mortgage!
Replies: 88
Views: 10049

Re: Paid off mortgage!

Congratulations, I cannot wait to be in this position. I am hoping another 5-8 years depending on how focused I am, had a divorce a couple years ago so trying to live a little also :D
by Bully3000
Fri Feb 22, 2019 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Home Lab for start in IT Career
Replies: 27
Views: 2908

Re: Home Lab for start in IT Career

Thank you everyone for the responses, I will have to start making a shortlist and see where to start.
by Bully3000
Thu Feb 21, 2019 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Home Lab for start in IT Career
Replies: 27
Views: 2908

Re: Home Lab for start in IT Career

TravelGeek wrote: Thu Feb 21, 2019 3:36 pm Given the trend towards cloud, I would not spend my money on hardware (cap ex) and instead focus on cloud services (op ex).
Thanks for the tip, so no point to learn basic networking etc?
by Bully3000
Thu Feb 21, 2019 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Home Lab for start in IT Career
Replies: 27
Views: 2908

Re: Home Lab for start in IT Career

Yes it was very useless.
by Bully3000
Thu Feb 21, 2019 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Home Lab for start in IT Career
Replies: 27
Views: 2908

Home Lab for start in IT Career

I currently work in IT sales(hardware) and wanted to invest in myself and become more well rounded and technical, just to try and future proof myself and maybe eventually go down a new career in the future, not sure what yet but I do like working in IT. I took A+ in evening classes but do not feel like i really learned too much as not enough hands on, thought about doing Server, Networking+/CCNA and security for getting the broad basics. Any techs here with a home lab who can provide some recommendations for things to purchase to get some hands on learning. I checked ebay and you can purchase CCNA labs for example but what else should I look at to get started? I guess while hear what other certs/hands on learning would be valid for starting...
by Bully3000
Fri Feb 08, 2019 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: How much would you contribute to retirement if you max your 2019 contributions?
Replies: 43
Views: 3768

Re: How much would you contribute to retirement if you max your 2019 contributions?

Currently

401k $19000 Plus Match
Tira $6k
HSA $7k (Family Plan for kids)

Do not know yet if my 401k allows after tax contributions but I am not in a position to save any more currently.
by Bully3000
Thu Feb 07, 2019 8:46 am
Forum: Personal Finance (Not Investing)
Topic: How Much in Your Emergency Fund And Is It Used?
Replies: 263
Views: 45838

Re: How Much in Your Emergency Fund And Is It Used?

I have about 6 months sitting in an online savings account, this is purely for Job loss for me, income can cover other emergencies such as replacing broken/damaged items and i would prefer to finance something than remove cash from my EF.

If i had a large taxable account then i would reduce this to maybe a month or 2 but currently this is my only buffer without raiding retirement accounts.
by Bully3000
Wed Feb 06, 2019 12:27 pm
Forum: Personal Consumer Issues
Topic: 2019 Subaru Forester Vs. 2019 Rav 4
Replies: 58
Views: 11152

Re: 2019 Subaru Forester Vs. 2019 Rav 4

I had a Forester and the reason I purchased Subaru was because they were known for reliability and I wanted a car to last along time and not pay a lot for repairs, it barely lasted 5 years, had transmission issues and steering column issues, even fixed under warranty it never worked well again and I was forced to make an emergency trade in and take on a new car payment I didn't want. I used a local mechanic to help me fight with Subaru on honoring the warranty and recall issues and he told me Subaru used to be good but quality is lacking these days and if you want reliable you can never go wrong with Toyota. I had a Toyota Carina back when I lived In Europe and it was a tank and refused to die, I never changed oil and never had to do a sin...
by Bully3000
Wed Feb 06, 2019 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Home Warranty
Replies: 27
Views: 2356

Re: Home Warranty

My home purchase came with one from the realtor and I renewed, The best plan was $500 for the year and $60 call out fee.

Broke even first two years although same as others here did have some issues with some contractors but resolved overall, it is nice for peace of mind and ease of use, something breaks you just open a ticket online and they take care of it.

Also my AC units are 15 years old and had some repairs to keep them running but a HVAC guy I know told me they are looking at dying soon, the home warranty I have covers all parts, labor, replacement and disposal so once they are both gone and replaced I will probbaly drop the warranty.
by Bully3000
Wed Feb 06, 2019 8:22 am
Forum: Personal Finance (Not Investing)
Topic: What does financial peace look like to YOU?
Replies: 64
Views: 7222

Re: What does financial peace look like to YOU?

Still not sure, a divorce a few years back really destabilized my financial peace. I have an emergency fund in case of job loss so that is one aspect which feels good. 1 more year of Alimony payments will sure help me feel more peaceful once it is gone :happy Maxing out my 401k and IRA but still need a few more years to build back up what I lost in the Divorce for long term financial peace. Aggressively paying of my mortgage, hoping to be done in 5 years and this will be huge for me, I know not everyone agrees but for me to lock in cheap rent(Taxes and Insurance only) for life is something I have dreamed about for a long time. I think If i could get mortgage paid off in the next 5 years while still maxing 401k and IRA and then taking money ...
by Bully3000
Fri Feb 01, 2019 9:04 am
Forum: US Chapters
Topic: Arizona Chapter
Replies: 139
Views: 51219

Re: Arizona Chapter

Be interested in future events, still learning so would love to meet some knowledgeable people
by Bully3000
Fri Feb 01, 2019 8:58 am
Forum: Personal Consumer Issues
Topic: 2019 Subaru Forester Vs. 2019 Rav 4
Replies: 58
Views: 11152

Re: 2019 Subaru Forester Vs. 2019 Rav 4

I had a Forester and the reason I purchased Subaru was because they were known for reliability and I wanted a car to last along time and not pay a lot for repairs, it barely lasted 5 years, had transmission issues and steering column issues, even fixed under warranty it never worked well again and I was forced to make an emergency trade in and take on a new car payment I didn't want. I used a local mechanic to help me fight with Subaru on honoring the warranty and recall issues and he told me Subaru used to be good but quality is lacking these days and if you want reliable you can never go wrong with Toyota. I had a Toyota Carina back when I lived In Europe and it was a tank and refused to die, I never changed oil and never had to do a sing...
by Bully3000
Fri Jan 11, 2019 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Non deductable IRA Contributions
Replies: 16
Views: 1069

Re: Non deductable IRA Contributions

Non-deductible contributions work as explained in IRS Publicatoin 590A. You will need to file a Form 8606 with your tax return. Instructions and form are online. Tax prep software is pretty good at dealing with all this. You need to understand what a Backdoor Roth IRA is ... even if you decide not to perform the transactions for one. See the wiki: https://www.bogleheads.org/wiki/Backdoor_Roth All this is really easy unless you start reading posts about it on bogleheads.org. Somehow posters make it more complicated than it is and confuse people. The more I read the stupider i get. You are not stupid, but just refuse to read this really great wiki page. :beer It now has examples and how to report the contribution and conversion on your tax r...
by Bully3000
Fri Jan 11, 2019 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Non deductable IRA Contributions
Replies: 16
Views: 1069

Re: Non deductable IRA Contributions

NotWhoYouThink wrote: Fri Jan 11, 2019 2:10 pm You haven't quite answered the question about whether you already have an IRA which you previously made deductible contributions to, or maybe rolled over from a 401k plan.

If you have no IRA now, then back door Roth is a good plan. If you do have an IRA than things get more complicated.
I have an IRA but all contributions have been non deductible at this point .
by Bully3000
Fri Jan 11, 2019 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Non deductable IRA Contributions
Replies: 16
Views: 1069

Re: Non deductable IRA Contributions

The more I read about the backdoor Roth the less I am inclined to want to pursue it currently, Looks like will just up my taxable income if i am reading correctly? and non deductible contribution versus taxable and TLH look to be about a wash over 30 years. Maybe just contribute to a taxable and designate for retirement but can also serve as a last layer of protection should i need to withdraw the money earlier than my planned retirement. See the second table on this page for a specific comparison of taxable, Traditional IRA, Roth IRA and non-deductible IRA: https://www.bogleheads.org/wiki/Non-deductible_traditional_IRA Roth IRA is always better than taxable and non-deductible IRA. Taxable is most often better than non-deductible IRA, incl...
by Bully3000
Fri Jan 11, 2019 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Non deductable IRA Contributions
Replies: 16
Views: 1069

Re: Non deductable IRA Contributions

If you aren't doing a backdoor Roth, the non-deductible IRA is almost certainly not worth the trouble. It might even cost you MORE in taxes than just investing in taxable in a tax efficient manner. If you invest in taxable, most of your gains will be qualified dividends and/or capital gains, which are taxed at a lower rate, and for capital gains (assuming ETFs) you can decide when to realize those capital gains. You can also use losses to offset gains. There is tax drag (mostly due to dividends), but it's pretty manageable. If you invest in a non-deductible IRA, your gains will be taxed as ordinary income. For most of us, assuming current tax rates, the capital gains rate in retirement will be 0% or 15% (with at least some years with subst...
by Bully3000
Fri Jan 11, 2019 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Non deductable IRA Contributions
Replies: 16
Views: 1069

Re: Non deductable IRA Contributions

livesoft wrote: Fri Jan 11, 2019 8:52 am Non-deductible contributions work as explained in IRS Publicatoin 590A.

You will need to file a Form 8606 with your tax return. Instructions and form are online. Tax prep software is pretty good at dealing with all this.

You need to understand what a Backdoor Roth IRA is ... even if you decide not to perform the transactions for one. See the wiki:
https://www.bogleheads.org/wiki/Backdoor_Roth

All this is really easy unless you start reading posts about it on bogleheads.org. Somehow posters make it more complicated than it is and confuse people.
The more I read the stupider i get.
by Bully3000
Fri Jan 11, 2019 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Non deductable IRA Contributions
Replies: 16
Views: 1069

Non deductable IRA Contributions

Hi, new to these forums and had some/ questions since I cannot figure out what I am doing exactly. :D Gross $160k-$200k per year and file HOH I started to do my taxes and noticed I do not qualify for a deduction on IRA contributions, I use an IRA at Betterment and used traditional since I exceed income to be able to contribute to a Roth. How does making a non deductible contribution work since from what I read it tells me these contributions come out of the IRA tax free since i already paid tax so basically only pay tax on the earning portion which would make it some sort of a hybrid Roth/Traditional IRA am I understanding this correctly? I need to read more on backdoor Roth conversions I guess also once I figure out any tax implications wi...
by Bully3000
Thu Jan 10, 2019 11:33 am
Forum: Personal Finance (Not Investing)
Topic: Do you take inheritance into account when calculating net worth?
Replies: 68
Views: 7953

Re: Do you take inheritance into account when calculating net worth?

Nope I do not account for any future inheritance or see it as part of my net worth same way I do not account for it or SS as part of my Retirement, anything I get extra is just a bonus.
by Bully3000
Thu Jan 10, 2019 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund questions
Replies: 17
Views: 1215

Re: Emergency Fund questions

Once my Car is paid off I plan to throw that money at my mortgage, i regret buying a new car this year since it is a lot of money to throw away every month so hopefully it will last a long time. I like the idea of a car fund should you need to buy a new car and do not wish to add additional debts/outgoing expenses. I'd suggest that rather than throwing money at paying DOWN the mortgage, that you throw that money into a "sinking fund" instead. This is an investment account earmarked to paying OFF the mortgage. The problem with paying extra principal is that you lose the liquidity of having the money, and you don't get the benefit of lower payments which only come when you completely pay it OFF. The sinking fund should have a great...
by Bully3000
Thu Jan 10, 2019 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund questions
Replies: 17
Views: 1215

Re: Emergency Fund questions

ID put it in savings if that makes you more comfortable, but also at age 37 being 60% bonds, is WAAAAAY too conservative, you should be 80% stocks 20% bonds. My IRA is 90% stock 10% Bonds, I created another taxable account 60% bonds 40% stock since I figured EF should be relatively safe but I have not needed one ever and hope I never do so wanted the potential to earn more than the 2% savings account. I think I am going to bump my $17k in EF with the other $17k I have coming in for a total of just over 6 months current living expenses and then leave it in online savings and then build a smaller fund(2-3 months living expenses) in my taxable account as a secondary layer of protection, so if all goes to hell i still have 6+ months living exp...
by Bully3000
Thu Jan 10, 2019 10:15 am
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund questions
Replies: 17
Views: 1215

Re: Emergency Fund questions

How do you all handle emergency funds, where do you keep them and how much do you keep on hand? We keep our system pretty simple. Our checking account has enough in it to handle a couple months worth of expenses. When the balance gets too large I transfer it into our savings account. I look at these two funds as our emergency fund/car purchase fund/house down payment fund, etc. At minimum, we keep six months of expenses there though we generally have a year's worth of expenses between them. If we need another car, it comes out of there and we build it back up. When there is a year's worth of expenses in them and we have no future plans a large expenditure that might take us below the sixth month expense minimum, the money goes into our tax...
by Bully3000
Thu Jan 10, 2019 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund questions
Replies: 17
Views: 1215

Re: Emergency Fund questions

Thanks, I use Barclays online savings it started at 2.05% and has increased to 2.20% and has no minimum deposit or rules regarding transfers etc. That is what I have also been toying with, maybe leave just two months in my online account and then load my taxable and hope i never need it The whole point of an EF is that the money you need will be there when you need it. Be careful with investing it in volatile assets. Whatever you invest it according to your retirement portfolio asset allocation, then you have essentially reduced your EF by that amount. In a real financial emergency, would you feel comfortable with only two months' of expenses in cash? I chose to put two-thirds of our EF in Wellesley because it has not been a volatile fund;...