Search found 205 matches

by redmaw
Wed Mar 03, 2021 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Mechanics of teen's 1st tax return
Replies: 30
Views: 1487

Re: Mechanics of teen's 1st tax return

I would check the return carefully. I have a hard time believing that a teen owes anything in federal taxes. I am assuming total earnings are <12400, if not ignore me. My guess is the tax software is basing the standard deduction off the w-2 wages, but isn't including the unreported tip income. Flip...
by redmaw
Wed Mar 03, 2021 1:21 pm
Forum: Investing - Theory, News & General
Topic: What am I missing about HSA Triple Tax Advantage?
Replies: 11
Views: 937

Re: What am I missing about HSA Triple Tax Advantage?

I have some concerns about the math presented in the op. It appears you assume all hsa funds are taxes at 20% at the end...why?are you expecting no further medical expenses? And where did 20% come from, that's not a federal tax bracket. the taxable account gets a 10% cap gains tax? Again how, curren...
by redmaw
Mon Mar 01, 2021 9:26 am
Forum: Personal Investments
Topic: 401k to Roth IRA rollover - tax implications?
Replies: 5
Views: 393

Re: 401k to Roth IRA rollover - tax implications?

If I understand what you did, you should have a 1099r from the 401k which lists the total distribution, taxable amount, and coded as a rollover (don't remember the code). The 1099 should cover both transactions. You may need to log into your 401k and download this form. On the 1040 you put both numb...
by redmaw
Wed Feb 24, 2021 7:25 am
Forum: Personal Finance (Not Investing)
Topic: How to account for tax refund & bunching charitable giving
Replies: 6
Views: 349

Re: How to account for tax refund & bunching charitable giving

Bunching will be better as long as you are moving charitable giving dollars from below the standard deduction threshold to above it. At least from a total taxable income stand point. If you ever get to a point where your itemized deduction is bigger than standard without charitable giving it will be...
by redmaw
Wed Feb 24, 2021 7:14 am
Forum: Investing - Theory, News & General
Topic: Should I realise Capital Gains while in a lower tax bracket
Replies: 36
Views: 3660

Re: Should I realise Capital Gains while in a lower tax bracket

Read the wiki entry on tax gain harvesting https://www.bogleheads.org/wiki/Tax_gain_harvesting . There are a couple potential drawbacks outlined. I was considering doing this a couple of years ago, but decided it was not worth paying the state income tax. I also do significant charitable giving thro...
by redmaw
Sat Feb 20, 2021 10:23 am
Forum: Personal Investments
Topic: 31yo contemplating early retirement
Replies: 142
Views: 12382

Re: 31yo contemplating early retirement

So I gather we are talking about cciv. Someone help me out here. Right now it's got 2B, and will dilute shares with another 1,5B likely sold at $10 a share (according to 1 article I read). How can this e worth 50/share? I get it they are in talks with lucid...but have terms of the deal been announce...
by redmaw
Sat Feb 20, 2021 10:01 am
Forum: Personal Investments
Topic: 31yo contemplating early retirement
Replies: 142
Views: 12382

Re: 31yo contemplating early retirement

Well sure and cashing out is what's been recommended in this thread over and over. I think it's incorrect though to say loss is capped at 45% of the original value if the intention is to hold it...as the op has stated.
by redmaw
Sat Feb 20, 2021 8:47 am
Forum: Personal Investments
Topic: 31yo contemplating early retirement
Replies: 142
Views: 12382

Re: 31yo contemplating early retirement

False. Putting your entire portfolio on one bet isn't just luck. Did a lot of due diligence and took a calculated risk it wasnt 50/50 in my eyes , it was a 80/20 bet and I was right and I risked everything for it. I would say 99% of the population wouldn't have been able to make this kind of bet. I...
by redmaw
Fri Feb 19, 2021 2:48 pm
Forum: Personal Investments
Topic: 31yo contemplating early retirement
Replies: 142
Views: 12382

Re: 31yo contemplating early retirement

What happens if I get married and have kids. You'll need more money, which may involve going back to work. Regards, Oh yeah, I can't imaging a woman letting her man sit around the house doing nothing all day, especially if he's 31. Look into that Jay Cutler divorce, he was worth over 20 million and...
by redmaw
Fri Feb 19, 2021 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Would a 401(k) or Reg. IRA be equal in real money to about 1/3 less than a similar balance in a Roth IRA?
Replies: 8
Views: 460

Re: Would a 401(k) or Reg. IRA be equal in real money to about 1/3 less than a similar balance in a Roth IRA?

Of course a dollar in roth is worth more than a dollar in traditional, but how much more? I think your 1/3 is probably the upper end of the range. Its an interesting question, and like all interesting questions there is no simple answer. It depends on a number of things, including oddly enough, how...
by redmaw
Fri Feb 19, 2021 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone had a TurboTax return that included a form 1116 accepted?
Replies: 181
Views: 8965

Re: How long is the IRS taking to accept returns

The refund delays shouldn't effect the IRS accepting the return I wouldn't think. I used free fillable forms, and submitted Saturday afternoon (13th) and received notification that the return was accepted in 20 minutes (I claimed a rebate credit). My refund hasn't been approved yet though. Yes I ag...
by redmaw
Fri Feb 19, 2021 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Would a 401(k) or Reg. IRA be equal in real money to about 1/3 less than a similar balance in a Roth IRA?
Replies: 8
Views: 460

Re: Would a 401(k) or Reg. IRA be equal in real money to about 1/3 less than a similar balance in a Roth IRA?

Of course a dollar in roth is worth more than a dollar in traditional, but how much more? I think your 1/3 is probably the upper end of the range. Its an interesting question, and like all interesting questions there is no simple answer. It depends on a number of things, including oddly enough, how ...
by redmaw
Fri Feb 19, 2021 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone had a TurboTax return that included a form 1116 accepted?
Replies: 181
Views: 8965

Re: How long is the IRS taking to accept returns

The refund delays shouldn't effect the IRS accepting the return I wouldn't think. I used free fillable forms, and submitted Saturday afternoon (13th) and received notification that the return was accepted in 20 minutes (I claimed a rebate credit). My refund hasn't been approved yet though.
by redmaw
Fri Feb 19, 2021 11:03 am
Forum: Personal Investments
Topic: 31yo contemplating early retirement
Replies: 142
Views: 12382

Re: 31yo contemplating early retirement

I'm not going to try to convince you to change your investing style, but be aware that all of the research I have see on early retirement and safe withdraw rates uses index returns to determine what can be supported. This research is completely irrelevant to a portfolio of a relatively small number ...
by redmaw
Fri Feb 19, 2021 10:31 am
Forum: Personal Investments
Topic: 31yo contemplating early retirement
Replies: 142
Views: 12382

Re: 31yo contemplating early retirement

What non-executive jobs pay 350-450K a year? That's what I'd like to know! im a highly paid technical specialist in my niche field. Contractor. Hourly. Get paid 1.5x on OT , work 50-60 hours a week. Base pay is 130/hr and OT pay is 180/hr , there are other perks that i rather not mention, but yes I...
by redmaw
Fri Feb 19, 2021 9:50 am
Forum: Personal Finance (Not Investing)
Topic: Taxes [When are capital gains taxes paid?]
Replies: 15
Views: 1266

Re: Taxes [When are capital gains taxes paid?]

RudyS Thanks for the reply. I purchased the farm from my grandfather in 96. He charged me well under market value so the resulting timber growth in the last 25 years has very little basis. In fact, as far as I know, not worth the hassle of figuring it out. While I am no expert I think you want to t...
by redmaw
Fri Feb 19, 2021 9:31 am
Forum: Personal Investments
Topic: Financially Ready for Early Retirement? Numbers Check.
Replies: 16
Views: 3688

Re: Financially Ready for Early Retirement? Numbers Check.

I forgot to include that your expenses go down significantly in 6 years when the mortgage is paid off, so your numbers are likely better than described in my post.
by redmaw
Fri Feb 19, 2021 9:27 am
Forum: Personal Investments
Topic: Financially Ready for Early Retirement? Numbers Check.
Replies: 16
Views: 3688

Re: Financially Ready for Early Retirement? Numbers Check.

If you want to be thorough, and you are accounting for new expenses, you also need to account for reduced expenses. For example, my wife is now a stay at home mom, but when working had a long commute (120 miles 2 or 3 times a week). Between gas, tolls, and projected longevity of the cars that commut...
by redmaw
Fri Feb 19, 2021 8:03 am
Forum: Personal Investments
Topic: A few clarification questions about 401k and Roth
Replies: 9
Views: 656

Re: A few clarification questions about 401k and Roth

401k questions: - Should I be putting some $$ into post-tax for annual conversion to a Roth to max $7k or should I just up my pre-tax? Post tax 401k, to roth IRA conversion, is not subject to the roth ira contribution limit. Whether you would prefer roth or traditional is a tax bracket question, in ...
by redmaw
Wed Feb 17, 2021 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Bad advice from Bogleheads- please think about this
Replies: 19
Views: 2306

Re: Bad advice from Bogleheads- please think about this

I think in general this forum does a pretty good job tailoring advise to the information provided in the OP. If they say they make 30k, noone is telling them to max out their 401k. There is certainly a bias to the more affluent, and I think I earn less than most here. I take it into account and move...
by redmaw
Wed Feb 17, 2021 12:38 pm
Forum: Investing - Theory, News & General
Topic: The premise of the "emergency fund" is flawed
Replies: 559
Views: 29243

Re: The premise of the "emergency fund" is flawed

But this whole argument is a moot point because lots of people don't look at a portfolio that way, that is, "Hold $X in savings" is outside of their portfolio. This is why the concept of "investable cash" needs to be well understood. Cash in savings isn't investable until the mo...
by redmaw
Wed Feb 17, 2021 12:21 pm
Forum: Investing - Theory, News & General
Topic: The premise of the "emergency fund" is flawed
Replies: 559
Views: 29243

Re: The premise of the "emergency fund" is flawed

But this whole argument is a moot point because lots of people don't look at a portfolio that way, that is, "Hold $X in savings" is outside of their portfolio. This is why the concept of "investable cash" needs to be well understood. Cash in savings isn't investable until the mo...
by redmaw
Wed Feb 17, 2021 8:10 am
Forum: Investing - Theory, News & General
Topic: The premise of the "emergency fund" is flawed
Replies: 559
Views: 29243

Re: The premise of the "emergency fund" is flawed

I can't believe I read all of that. Now let me add my 2 cents to the mess. I think the largest value of an emergency fund is the act of building one. Imagine someone who nets $1000 a month, and spends somewhere between 999 and 1001 every month without accounting for anything "unexpected". ...
by redmaw
Sun Feb 14, 2021 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 Taxes - Owing MORE compared to last year
Replies: 20
Views: 1421

Re: 2020 Taxes - Owing MORE compared to last year

If I recall correctly the irs released new withholding tables form 2020 to him with the new w4. I believe everyone was urged to fill out the new w4 but it was not required. This could be contributing to the increased inaccuracy of your withholding amount. I seem to remember a bunch of articles early...
by redmaw
Fri Feb 12, 2021 6:23 pm
Forum: Personal Investments
Topic: 18 to 100 percent annual return fund
Replies: 140
Views: 11118

Re: 18 to 100 percent annual return fund

Look into optionsellers.com saga and how this guy who wrote books on selling options and appeared as a guest commenter on cnbc blew up selling options ... should give you a hint at anyone who claims to be an expert lol. Oh if you want a laugh here is his apology video after losing the money and lea...
by redmaw
Wed Feb 10, 2021 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Does paying off mortgage really reduce Sequence of Returns Risk?
Replies: 267
Views: 14547

Re: Does paying off mortgage really reduce Sequence of Returns Risk?

Having read most of this thread, I found the conclusions and math involved somewhat surprising ...initially, but after careful consideration it should not have been. You are essentially levering a large portfolio at a very low cost, and spreading the payback over the entire span of retirement. This...
by redmaw
Wed Feb 10, 2021 7:18 am
Forum: Personal Finance (Not Investing)
Topic: Does paying off mortgage really reduce Sequence of Returns Risk?
Replies: 267
Views: 14547

Re: Does paying off mortgage really reduce Sequence of Returns Risk?

Having read most of this thread, I found the conclusions and math involved somewhat surprising ...initially, but after careful consideration it should not have been. You are essentially levering a large portfolio at a very low cost, and spreading the payback over the entire span of retirement. This...
by redmaw
Fri Feb 05, 2021 7:11 am
Forum: Personal Finance (Not Investing)
Topic: Does paying off mortgage really reduce Sequence of Returns Risk?
Replies: 267
Views: 14547

Re: Does paying off mortgage really reduce Sequence of Returns Risk?

Having read most of this thread, I found the conclusions and math involved somewhat surprising ...initially, but after careful consideration it should not have been. You are essentially levering a large portfolio at a very low cost, and spreading the payback over the entire span of retirement. This ...
by redmaw
Wed Feb 03, 2021 3:45 pm
Forum: Investing - Theory, News & General
Topic: The Power of Working Longer
Replies: 450
Views: 29024

Re: The Power of Working Longer

IMO most posters are missing the point of the paper. The paper isn't saying don't save much per year and more than make up for that low saving rate by planning on working a long time. Instead, the paper is answering the following question. As you get very near to your retirement date, is it worthwh...
by redmaw
Wed Feb 03, 2021 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Does paying off mortgage really reduce Sequence of Returns Risk?
Replies: 267
Views: 14547

Re: Does paying off mortgage really reduce Sequence of Returns Risk?

I ran my own numbers and was surprised by how bad the returns have to be for there to be a break even point, and then both a sunk. I used in a constant negative 10% return it took 12 years to reach a break even point, but then both scenarios run out of money in year 13. Even throwing in -50% the fi...
by redmaw
Wed Feb 03, 2021 3:38 pm
Forum: Investing - Theory, News & General
Topic: Does the 4% rule take tax, fees etc into account?
Replies: 362
Views: 12800

Re: Does the 4% rule take tax, fees etc into account?

To be fair ERN recommended 3-3.5 "if you are young and have a long horizon". If you take his site in its entirety, he is talking about the 60 year horizon.
by redmaw
Wed Feb 03, 2021 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Does paying off mortgage really reduce Sequence of Returns Risk?
Replies: 267
Views: 14547

Re: Does paying off mortgage really reduce Sequence of Returns Risk?

I ran my own numbers and was surprised by how bad the returns have to be for there to be a break even point, and then both a sunk. I used in a constant negative 10% return it took 12 years to reach a break even point, but then both scenarios run out of money in year 13. Even throwing in -50% the fir...
by redmaw
Wed Feb 03, 2021 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Does paying off mortgage really reduce Sequence of Returns Risk?
Replies: 267
Views: 14547

Re: Does paying off mortgage really reduce Sequence of Returns Risk?

Lets put it this way. At $2.6M and 80k expenses you have a 3% withdraw rate. Based on the numbers presented early, paying off the loan drops you to 45k 55K expenses and 2.1M invested, thats a 2.1% 2.6% withdraw rate. Neither is going to run out of money. If you tweek your numbers and say its 85k+25...
by redmaw
Wed Feb 03, 2021 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: Does paying off mortgage really reduce Sequence of Returns Risk?
Replies: 267
Views: 14547

Re: Does paying off mortgage really reduce Sequence of Returns Risk?

Lets put it this way. At $2.6M and 80k expenses you have a 3% withdraw rate. Based on the numbers presented early, paying off the loan drops you to 45k expenses and 2.1M invested, thats a 2.1% withdraw rate. Neither is going to run out of money. If you tweek your numbers and say its 85k+25k mortgage...
by redmaw
Wed Feb 03, 2021 7:31 am
Forum: Investing - Theory, News & General
Topic: Does the 4% rule take tax, fees etc into account?
Replies: 362
Views: 12800

Re: Does the 4% rule take tax, fees etc into account?

TO answer the OP, taxes are removed from your withdraw. So $x portfolio 4% gives a $.04x withdraw - taxes = other potential spending. For those fully confident that the trinity study says 4% has survived the worst time period in history, I strongly recommend you look up criticisms of the study metho...
by redmaw
Wed Jan 27, 2021 11:09 am
Forum: Personal Investments
Topic: 3-4% withdrawal strategy
Replies: 18
Views: 1874

Re: 3-4% withdrawal strategy

Technically the 3-4% doesn't consider the dividends, but all of the detailed analysis I have seen uses total return data, which implicitly assumes the dividends are being reinvested. If you withdraw the dividends instead, its will reduce the expected balance in the same way the 3-4% withdraw would, ...
by redmaw
Wed Jan 27, 2021 10:44 am
Forum: Investing - Theory, News & General
Topic: When will earnings be considered for stock pricing?
Replies: 6
Views: 256

Re: When will earnings be considered for stock pricing?

While I make no claims to the accuracy of current pricing, why should I value a company based solely on what it earned this year. Is this year typical of what I can expect going forward? When I buy a company I want to know what it will make me, not what it made the last owner. I don't think 1 bad ye...
by redmaw
Wed Jan 27, 2021 10:40 am
Forum: Personal Investments
Topic: Net Worth and Leaving Corporate World
Replies: 43
Views: 3978

Re: Net Worth and Leaving Corporate World

It may not be immediately obvious, but he is saving more than 39k, thats going into the 401k, but he plans to pay off 50k in debt this year. I think the calls about saving way to little and spending way to much are a little short sited. redmaw, A) The 50K debt is for something that he had spent ahe...
by redmaw
Wed Jan 27, 2021 10:15 am
Forum: Personal Investments
Topic: Net Worth and Leaving Corporate World
Replies: 43
Views: 3978

Re: Net Worth and Leaving Corporate World

By the way, I would open and fund the roths this year even if it means spilling the home equity loan into next. You haven limited availability of roth space, and there is a 5 year timer that starts when the account is opened. Missing either to pay off the loan a few months early doesn't make sense t...
by redmaw
Wed Jan 27, 2021 10:05 am
Forum: Personal Investments
Topic: Net Worth and Leaving Corporate World
Replies: 43
Views: 3978

Re: Net Worth and Leaving Corporate World

It may not be immediately obvious, but he is saving more than 39k, thats going into the 401k, but he plans to pay off 50k in debt this year. I think the calls about saving way to little and spending way to much are a little short sited.
by redmaw
Wed Jan 27, 2021 9:44 am
Forum: Personal Investments
Topic: Net Worth and Leaving Corporate World
Replies: 43
Views: 3978

Re: Net Worth and Leaving Corporate World

So 800/wk*52wk = 42k/yr + 6k taxes = 48k. This doesn't include the employer portion of your healthcare, call it 60k-70k retirement budget. At early retirement I would want no more than 3.5% withdraw rate which would require 1.75-2M in invested assets (not the house). So let's use that as your walk a...
by redmaw
Wed Jan 27, 2021 8:46 am
Forum: Personal Investments
Topic: Net Worth and Leaving Corporate World
Replies: 43
Views: 3978

Re: Net Worth and Leaving Corporate World

Without more information about all I can say is that you should be able to scale back, but probably not quit entirely. If you are 50 now, and work part time to cover living expenses until you are 62-65, I would expect investments to roughly double without further contributions to around 1.5M, and be...
by redmaw
Wed Jan 27, 2021 8:31 am
Forum: Personal Finance (Not Investing)
Topic: New Pennsylvania Income Tax Filing Web Site
Replies: 22
Views: 1808

Re: New Pennsylvania Income Tax Filing Web Site

So I signed into my myPath account this morning to look around more. I'm thinking that the myPath account MAY not be required to file your taxes using the new myPath. I cannot find anywhere inside the myPath account screens to initiate the submission of a new PA tax return. What it does provide is ...
by redmaw
Wed Jan 27, 2021 7:52 am
Forum: Personal Finance (Not Investing)
Topic: New Pennsylvania Income Tax Filing Web Site
Replies: 22
Views: 1808

Re: New Pennsylvania Income Tax Filing Web Site

Thanks for the heads up, I've always used the pa direct file, and thought it was about the easiest tax related thing I have used, so I can't say I see this as good news. I did request my access letter today. I have to say I am pretty disappointed that the state changed the filing process without any...
by redmaw
Wed Jan 27, 2021 7:13 am
Forum: Personal Finance (Not Investing)
Topic: HSA questions
Replies: 3
Views: 510

Re: HSA questions

if you're not employed you have no high deductible insurance plan do you? . Its far enough out I haven't considered the details, but I assume I would use an ACA compliant health plan up until medicare (which I understand is not HSA compatible) I'm not sure if converting to 100% Roth will be a good ...
by redmaw
Tue Jan 26, 2021 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: HSA questions
Replies: 3
Views: 510

HSA questions

In have 2 unrelated questions about my HSA. First a provider refunded part of a payment that was made with HSA dollars. They just mailed a check. I am already maxing the account, so I assume I can't put the money back in the HSA. Does that mean that portion isn't qualifying and I need to let some ot...
by redmaw
Fri Jan 22, 2021 11:27 am
Forum: Personal Investments
Topic: Planning for Early Retirement: Confused where to keep investments
Replies: 4
Views: 587

Re: Planning for Early Retirement: Confused where to keep investments

If you don't already have roth contributions, the cap on a roth ira is 6000, 15x6000 = 90k, that's not a lot available for withdraw to last from "early 50s" to 59.5. The good news is in year 1 you can convert traditional dollars (from 401k) to roth dollars, then after 5 years they are also...
by redmaw
Fri Jan 22, 2021 7:04 am
Forum: Personal Finance (Not Investing)
Topic: Now that I'm a homeowner, how do I track my net-worth in an Excel document?
Replies: 54
Views: 4637

Re: Now that I'm a homeowner, how do I track my net-worth in an Excel document?

I use zillow to grab an estimated value, I do it manually, but I'm pretty sure it could be automated. I'm not sure its accurate, but it seems more objective than coming up with a value on my own. I think as long as you use a consistent method its fine. I would be very cautious with removing principl...
by redmaw
Wed Jan 20, 2021 4:31 pm
Forum: Personal Consumer Issues
Topic: Any car experts? [Suspension control arm bushing cracked]
Replies: 34
Views: 1493

Re: Any car experts?

The reason you havent heard of this before is the bushing doesn't do much. A cracked bushing will allow more play, and pass along more vibrations. Does that sound terrible. I would guess there are a couple million cracked bushings driving around right now with noone being the wiser. As a final note...
by redmaw
Wed Jan 20, 2021 4:04 pm
Forum: Personal Consumer Issues
Topic: Any car experts? [Suspension control arm bushing cracked]
Replies: 34
Views: 1493

Re: Any car experts?

The reason you havent heard of this before is the bushing doesn't do much. A cracked bushing will allow more play, and pass along more vibrations. Does that sound terrible. I would guess there are a couple million cracked bushings driving around right now with noone being the wiser.