Search found 1281 matches

by simas
Tue Mar 05, 2024 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Can we afford a $2M home?
Replies: 70
Views: 11088

Re: Can we afford a $2M home?

tech salaries are overinflated. Our labor does not deserve these salaries Good to know I’m not the only one who feels this way. But not all techies make that salary. In the midwest (Chicago area) Experienced developers in my team make $135k including bonus. Juniors make $90k. I make $200k for a director level role. These West coast companies which pay such salaries will fast find out midwest can be as talented as west coast and move their development teams. I saw this happen in 2002-2003 where there was large scale outsourcing. While some it driven by location, a lot has to do with industry. My son lives in Chicago and works in FinTech as a SW developer. He is 3 yrs out of college, and makes well over $200k. Some of his colleagues with a f...
by simas
Tue Mar 05, 2024 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Feels impossible to take the foot off the pedal of saving, but saving at the boglehead pace is stressful.
Replies: 88
Views: 13594

Re: Feels impossible to take the foot off the pedal of saving, but saving at the boglehead pace is stressful.

I'm terrified of my family being denied the pleasures of "the good life" that we have potentially/maybe earned through blood/sweat - no way to go through life 'terrified'. change something - you will have to define what 'good life' means to you/your family. for some 'good life' is being able to eat at restaurant chain (go out), for others it is first class ticket to <insert vacation destination at peak time and 1k room per day> 'just for fun'. what is 'good life' to you? - act accordingly what posters were mostly highlighted is that you have fairly basic calculations to think about - what is gross - what are my fixed expenses (income taxes, state taxes, property taxes, etc). also real utilities - what are my savings - what happen...
by simas
Tue Mar 05, 2024 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Crypto appraisal needed for 2023 donations
Replies: 19
Views: 1906

Re: Crypto appraisal needed for 2023 donations

Although I don't really get it. I'm trying to think of how this was being abused or if it was possible to abuse when exchanges list the value on the day of and keep a history of it. Seems like the IRS is just preventing rich crypto people from wanting to donate to charity. Although maybe there are so few that they don't care. Before this rule was put in place it was common for rich folks to donate artwork and arab horses. I know of dome great stories about price manipulation here. Hence the need for appraisals. Regulated securities are exempt because they trade on a regulated market where prices are determined by arms-length transactions. One could argue that cryptocurrencies are a step behind the regulatory curve. Or you could point to ma...
by simas
Sat Mar 02, 2024 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: Let go from Megacorp at 42....can I retire?
Replies: 90
Views: 22215

Re: Let go from Megacorp at 42....can I retire?

After 20 years, I was let go last week from megacorp. This caught me completely off guard. Losing $300k plus benefits scares me with 3 young (all under 5) kids at home. I’m 42 and wife doesn’t work. I’ve been reaching out to contacts who tell me now is not a good time to be job hunting as tech companies are pulling back. I don’t want to move and uproot our family but at same time I'm burned out. Would love to somehow "fire" from here. Our yearly expenses are roughly $250K in HCOL California. Combined these spit out roughly 100K in income mainly due to the 1.2 in Money Market Account which will most likely be going lower. The Berkshire and Large Cap Tech have very low cost basis so would cost a lot to sell. With this level of weal...
by simas
Sat Mar 02, 2024 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: Let go from Megacorp at 42....can I retire?
Replies: 90
Views: 22215

Re: Let go from Megacorp at 42....can I retire?

what are some good medical plans in this situation comparable with typical megacorp medical plans? This is one of the worst parts...I'm still covered on company medical through July but looking at plans has amazed me. I'm looking at $20K per year for a basic health plan. How in the World do people afford this? what are you entering into ACA that you get these numbers? What is your true income (you dont work, wife does not work, only investments bring their dividends + interests in taxable accounts)? out of curiosity I priced mine - family of four, mid forties, two small kids. investments kick off 30K into taxable so I entered 50k of income to see what pricing is. Silver plans go from $22 month to $500 per month (highest price PPO), 20+ sil...
by simas
Tue Feb 27, 2024 7:42 am
Forum: Personal Finance (Not Investing)
Topic: Zelle Questions: safety, speed, uses?
Replies: 57
Views: 5492

Re: Zelle Questions: safety, speed, uses?

Zelle keeps coming up and I have questions. My current bank does not offer it, but recently I've had a number of handymen, etc. say that they will take a check but prefer Zelle. It seems like it's a very popular way to pay people instantly, and seems like it would be very convenient. 1. I see that if a bank does not offer Zelle natively, you can still sign up through the Zelle app. Does that offer instant transfers from A to B like it would it you banked with Chase or WF, or is there a 2-3 day delay like regular ACH? 2. There were recent news stories about Zelle fraud that made it sound like it was incredibly unsafe. But when you actually read the stories, they were all people who sent money to a fraudster rather than someone hacking their...
by simas
Tue Feb 27, 2024 7:39 am
Forum: Personal Finance (Not Investing)
Topic: What got you out of poverty?
Replies: 111
Views: 12862

Re: What got you out of poverty?

For those who grew up in poverty and now have that far behind you, what do you see as some of the biggest decisions/opportunities/whatever, that got you out? And if the answer is basic Boglehead principles, what was different about you or your decisions that allowed you to get out, but not those around you? some things others already said - education. this opened doors and created opportunities - work ethic. this allowed to walk through was doors. (luck is preparedness meeting opportunity). follow up and follow through - saving rate. understanding that I am responsible for self/family, nobody else. professionally started working in USA from 22 and was immediately saving 25% (max allowed) for the future/retirement. what others may not have ...
by simas
Sat Feb 24, 2024 8:13 am
Forum: Personal Finance (Not Investing)
Topic: another CP214 reminder notice for 5500-EZ
Replies: 8
Views: 867

Re: another CP214 reminder notice for 5500-EZ

# of participant’s at the end of final plan year should be zero, not 1. Did you file the Form 5500-EZ on paper? The EFAST2 system normally gives an error message if it’s not zero on the final Form 5500-EZ. The instructions for Form 5500-EZ includes a section about amended returns. The “amended return” box needs to be checked. is, it was paper form. everything was done in first half of 2022 so the final form 5500-EZ was from 2021. Do you happen to know if EFAST2 system would allow us to file single amended return for 2021 electronically or we need to paper again? Thank you IIRC the Form 8606 instructions state that the amended Form must be filed the same way as the original Form so in your case in paper form. Thank you. need to figure out i...
by simas
Sat Feb 24, 2024 7:39 am
Forum: Personal Finance (Not Investing)
Topic: another CP214 reminder notice for 5500-EZ
Replies: 8
Views: 867

Re: another CP214 reminder notice for 5500-EZ

HomeStretch wrote: Fri Feb 23, 2024 10:57 pm # of participant’s at the end of final plan year should be zero, not 1. Did you file the Form 5500-EZ on paper? The EFAST2 system normally gives an error message if it’s not zero on the final Form 5500-EZ.

The instructions for Form 5500-EZ includes a section about amended returns. The “amended return” box needs to be checked.
is, it was paper form. everything was done in first half of 2022 so the final form 5500-EZ was from 2021.
Do you happen to know if EFAST2 system would allow us to file single amended return for 2021 electronically or we need to paper again?

Thank you
by simas
Fri Feb 23, 2024 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: another CP214 reminder notice for 5500-EZ
Replies: 8
Views: 867

Re: another CP214 reminder notice for 5500-EZ

toddthebod wrote: Fri Feb 23, 2024 9:11 pm Was total assets $0 and total participants 0 on your final return?
total assets 0
total participants 1 (I see as item 5)
do we need to file another final 5500-EZ form showing zero for everything?
by simas
Fri Feb 23, 2024 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: another CP214 reminder notice for 5500-EZ
Replies: 8
Views: 867

another CP214 reminder notice for 5500-EZ

helping DW out
- an individual plan with Vanguard opened 2012
- no real activity since 2014 so in early 2022 all assets were transferred out
- participant (self) notified in writing that close is terminated by Trustee
- form 5500-EZ 2021 filled on 6/1/2022 with indicator A.3 'final return filed for this plan'
- a reminder notice CP214 received 'Review to determine if you must file form 5500-EZ'

We believe plan is closed and final form was already filed , nothing to file for. Should we still call the IRS on this and ask them what is going on i.e. sending them a statement to the above so they do not send us the notices for something we should not file (plan is already closed and final return was filed)?

thank you
by simas
Tue Feb 20, 2024 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: Windshield Chip - Insurance claim or Self Fund
Replies: 61
Views: 5560

Re: Windshield Chip - Insurance claim or Self Fund

Some posters have said that just asking questions about potentially making a claim can count against you. So it might be too late already, if that's actually true. It is quite sad if true. Might you please post some links to the "posters" that stated that and whether they are reliable sources of information etc? it is called FNOL - first notice of loss, please look it up. When you notify your insurance that something happen that is what starts the claim process. whether you proceed to the claim or not, you already notified them that something happened. not sure why this is 'sad', it is just how every claim process works . Every inquiry to an agent about a potential claim triggers an actual claim on their record? I am not sure wha...
by simas
Tue Feb 20, 2024 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Windshield Chip - Insurance claim or Self Fund
Replies: 61
Views: 5560

Re: Windshield Chip - Insurance claim or Self Fund

hameshatumkochaha wrote: Tue Feb 20, 2024 12:46 pm
jeffyscott wrote: Tue Feb 20, 2024 12:34 pm Some posters have said that just asking questions about potentially making a claim can count against you. So it might be too late already, if that's actually true.
It is quite sad if true. Might you please post some links to the "posters" that stated that and whether they are reliable sources of information etc?
it is called FNOL - first notice of loss, please look it up. When you notify your insurance that something happen that is what starts the claim process. whether you proceed to the claim or not, you already notified them that something happened. not sure why this is 'sad', it is just how every claim process works.
by simas
Sun Feb 18, 2024 8:33 am
Forum: Personal Finance (Not Investing)
Topic: make sense to have kid #3?
Replies: 77
Views: 19254

Re: make sense to have kid #3?

nptit wrote: Sat Feb 17, 2024 11:32 pm Thanks everyone, we are expecting #3😍
congratulations!!
by simas
Sun Feb 18, 2024 8:33 am
Forum: Personal Finance (Not Investing)
Topic: make sense to have kid #3?
Replies: 77
Views: 19254

Re: make sense to have kid #3?

While I can understand people who don’t have kids due to the inability to raise them due to poverty. I don’t understand not having another one just to grow your finances. Have one (or don’t) based on how you feel about growing your family. We want to be financially responsible to our kids. Want to be able to afford reasonable things(extra curriculum, sports, hobbies) that they want. Also, we are not entirely sure if bringing kid number 3 will break the peaceful life we are having now. Both my older kids are very well behaved, bright and joyful. having a sibling is a lifelong 'enrichment activity' (and much, much. much more). I do not know anyone real who would say that I rather had my <pick extra curriculum here> vs having a brother or a s...
by simas
Thu Feb 08, 2024 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Suspicious Verifcation Code (scam)?
Replies: 12
Views: 1528

Re: Suspicious Verifcation Code (scam)?

boogiehead wrote: Wed Feb 07, 2024 7:57 pm I've been receiving random text of a verification code from a small regional bank Credit One Bank in which I did not request, nor do I have an account with. Should I just ignore this or should I reach out to the bank asking them what is going? I am sort of reluctant to reach out because I am assuming they will probably ask for some personal information for them to look into this and I do not wish to give out personal information to a company in which I do not have a relationship with. Any thoughts?
always delete and never use any information or link in that message to act on (clicking on it ,etc) - that is exactly what the scammer is trying to make you do.
by simas
Wed Feb 07, 2024 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Bad Debt - Sell Investments?
Replies: 48
Views: 3944

Re: Bad Debt - Sell Investments?

I am looking for advice on *developing a workable plan*. This is one of the principles in the Bogleheads Investment Philosophy. I think you already had plenty of good advice - start getting income in (every month without a job is putting you deeper in due to negative cash flow and very high interest rates). 75K or 80K now (vs 75k now and 80K later) does not hurt as much as waiting it out. you worked very hard for professional employment opportunity, actually take it. - get rid of taxable investments. Leave bare minimum (5K?) pay down high-rate debt ASAP. - once you are out of debt, rebuild your emergency fund. - once you have that you can think about 401k match ,etc. I do not know what State you are in (and what if any are state income tax...
by simas
Mon Feb 05, 2024 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Accumulators, what's your response to inflation?
Replies: 146
Views: 12839

Re: Accumulators, what's your response to inflation?

We are in the accumulation phase. As grocery, insurance and other prices rise, our annual dollar amount of savings has held steady (it's automated), but we've gotten recent raises, so our savings rate is going down. Of course we're in a priviliged position to be employed, getting raises, and accumulating, and do appreciate that. I'm curious to learn what others are doing. Are you cutting the "wants" budget so that your savings rate remains the same as the cost of "needs" increases? Pursuing a side gig? Planning to work longer before FIRE? we spend less which is what is expected with high inflation (robbing of purchasing power). in restaurants we use(d) it was most visible, felt like 80-100% over last few years. what use...
by simas
Sun Feb 04, 2024 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: 5500EZ reporting question
Replies: 10
Views: 552

Re: 5500EZ reporting question

newkidontheblock wrote: Sun Feb 04, 2024 9:59 am Should I wait until I have contributed before filing 5500 EZ?
form is due in July. Any reason you are worrying about it now?
by simas
Thu Feb 01, 2024 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Love my job, told re-lo for RTO or no advancement [Return To Office]
Replies: 128
Views: 9761

Re: Love my job, told re-lo for RTO or no advancement

Age: 39 Sector: Technology Total Comp: ~$191 Super flexible work. Role: High level IC I work remote, my manager works remote, my VP works remote. I work on a global team where few people even live in the same country. I love my job. I am good at it, my manager and team are great. My manager informed me today that leadership has a new policy that for individuals at my job level or above, I will no longer longer be eligible for promotions or further advancement unless I relocate to support return-to-office and physically visit a company office three days a week. As a practical matter this involves relocation to a HCOL or finding some backwater company office I can badge in at three days a week--long story short Unless they offer to pay me fo...
by simas
Wed Jan 31, 2024 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: kiddy tax 2024 question - is this per kid or per household (MFJ)
Replies: 20
Views: 1370

Re: kiddy tax 2024 question - is this per kid or per household (MFJ)

two kids, each has a custodial account (UTMA). received 1099-DIV and INT today for each of them 1099-DIV is 1179 and 1099-INT is 200 so total is 1379 which is under 2500 limit. my understanding is that I do not have to enter anything as this is below the limit - is that your reading as well in terms of 2500 limit being per individual vs per return/household. thank you You still need to file tax returns for both kids, otherwise the amounts above $1,250 per kid will be subject to your tax bracket and need to be listed on your return. That is partially incorrect. Since each child's unearned income exceeds $1,250, each child has a filing requirement. But since each child's unearned income is less than $2,500, there is no Kiddie Tax to be paid ...
by simas
Wed Jan 31, 2024 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: kiddy tax 2024 question - is this per kid or per household (MFJ)
Replies: 20
Views: 1370

Re: kiddy tax 2024 question - is this per kid or per household (MFJ)

two kids, each has a custodial account (UTMA). received 1099-DIV and INT today for each of them 1099-DIV is 1179 and 1099-INT is 200 so total is 1379 which is under 2500 limit. my understanding is that I do not have to enter anything as this is below the limit - is that your reading as well in terms of 2500 limit being per individual vs per return/household. thank you You still need to file tax returns for both kids, otherwise the amounts above $1,250 per kid will be subject to your tax bracket and need to be listed on your return. That is partially incorrect. Since each child's unearned income exceeds $1,250, each child has a filing requirement. But since each child's unearned income is less than $2,500, there is no Kiddie Tax to be paid ...
by simas
Wed Jan 31, 2024 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: kiddy tax 2024 question - is this per kid or per household (MFJ)
Replies: 20
Views: 1370

Re: kiddy tax 2024 question - is this per kid or per household (MFJ)

two kids, each has a custodial account (UTMA). received 1099-DIV and INT today for each of them 1099-DIV is 1179 and 1099-INT is 200 so total is 1379 which is under 2500 limit. my understanding is that I do not have to enter anything as this is below the limit - is that your reading as well in terms of 2500 limit being per individual vs per return/household. thank you You still need to file tax returns for both kids, otherwise the amounts above $1,250 per kid will be subject to your tax bracket and need to be listed on your return. ok. so I either a) claim them as dependents , find the way to complete form 8814 (right now H&R program does not let me enter 1099-DIV for either one of them, only self, spouse or both), and pay gives on 137...
by simas
Wed Jan 31, 2024 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: kiddy tax 2024 question - is this per kid or per household (MFJ)
Replies: 20
Views: 1370

Re: kiddy tax 2024 question - is this per kid or per household (MFJ)

two kids, each has a custodial account (UTMA). received 1099-DIV and INT today for each of them 1099-DIV is 1179 and 1099-INT is 200 so total is 1379 which is under 2500 limit. my understanding is that I do not have to enter anything as this is below the limit - is that your reading as well in terms of 2500 limit being per individual vs per return/household. thank you You still need to file tax returns for both kids, otherwise the amounts above $1,250 per kid will be subject to your tax bracket and need to be listed on your return. ok. so I either a) claim them as dependents , find the way to complete form 8814 (right now H&R program does not let me enter 1099-DIV for either one of them, only self, spouse or both), and pay gives on 137...
by simas
Wed Jan 31, 2024 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: kiddy tax 2024 question - is this per kid or per household (MFJ)
Replies: 20
Views: 1370

kiddy tax 2024 question - is this per kid or per household (MFJ)

two kids, each has a custodial account (UTMA).
received 1099-DIV and INT today for each of them
1099-DIV is 1179 and 1099-INT is 200 so total is 1379 which is under 2500 limit.

my understanding is that I do not have to enter anything as this is below the limit - is that your reading as well in terms of 2500 limit being per individual vs per return/household.

thank you
by simas
Sat Jan 27, 2024 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Net Worth Averages in different professions
Replies: 91
Views: 11549

Re: Net Worth Averages in different professions

Out of curiosity I looked up how is the population doing in rural Missouri where I went to school. Median household income in Adair County ( Missouri) is 46K annually. That includes plenty of doctors, engineers, police and fire folks, really everybody. Babies get delivered, people get care, universities are running, a house costs 75K, etc - the world continues and moves on without 'we can't imagine living on that salary ' noise from Bay Area. And Adair is actually that is a richer county in Missouri, compare to say Ozark country that has median household income (not individual) of 31K annually. Shocked to read the amounts you cite above. I live in rural Western Massachusetts, which is 2 hours and 90 miles from Boston and far, far removed f...
by simas
Sat Jan 27, 2024 9:04 am
Forum: Personal Finance (Not Investing)
Topic: 20-30X income, is that the "retirement rut"?
Replies: 90
Views: 13512

Re: 20-30X income, is that the "retirement rut"?

Say you are in your 40s with a $100,000 salary with a NW of $2,000,000 or 20x Income to NW ratio You are not quite motivated to work harder in your career (e.g. staying in the office until 8pm) because your investments daily fluctuations is more than your salary. You are comfortable enough to give your boss/upper management the middle finger if he pulls a fast one on you. However, you are not quite ready to retire early yet as in today's economy, $2million doesn't carry your that far, especially in HCOL cities like NY or SF. Is that a career to retirement "rut"? you are leaving (retiring) employment running away _from_ something or you are leaving to go _to_ something (new activities you have planned, new things you want to do no...
by simas
Thu Jan 25, 2024 9:04 am
Forum: Personal Finance (Not Investing)
Topic: QBI for rental properties?
Replies: 3
Views: 602

Re: QBI for rental properties?

Hi, I'm doing my parents' tax return this year. Their previous accountant retired. For tax year 2023, my parents have 2 residential properties (single family homes). I noticed that their previous accountant took the QBI deduction. I've spent a lot of time reading online about the "Safe Harbor Rule," which says that there has been 250 hours logged per year total on the rental properties. https://www.irs.gov/newsroom/irs-finalizes-safe-harbor-to-allow-rental-real-estate-to-qualify-as-a-business-for-qualified-business-income-deduction . I'm not sure that they could log 250 hours per year every year.. 1) If they don't qualify for the Safe Harbor Rule to qualify 2 rental houses to take QBI deduction, what is the other basis on which i...
by simas
Mon Jan 22, 2024 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Tax Management
Replies: 11
Views: 926

Re: Tax Management

Really helpful comment; thanks for your insights. I have no taxable accounts, so some of this is not yet actionable. Regarding the predictions of the future on taxes, I have a "know nothing" philosophy. I could easily imagine that my retirement income will be much lower and thus I'd be better served contributing to Traditional rather than Roth. However, I can also easily imagine higher tax rates in my retirement years due to government policy changes and fiscal needs. I have a poor ability to predict the future, so I thought a 50-50 mix of pre-tax and post-tax would diversify my tax bet... although above comment on asymmetric risk is interesting.... We are looking at probabilities here - 'more likely' vs 'less likely'. You are al...
by simas
Sun Jan 21, 2024 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Net Worth Averages in different professions
Replies: 91
Views: 11549

Re: Net Worth Averages in different professions

I think it's important to have perspective and you make valid points. I recently came across something that said roughly 1% of the world's population has about half the world's wealth and a little over half the world's population have 1% of the world's wealth. Forget the Bay Area or even California. The United States of America really skews things and perhaps it would be good to keep in mind how the rest of the world lives. The median income in the world is a four-digit number. In America you can earn multiples of that number by working a job that pays minimum wage. as a first-generation immigrant I am very familiar with this. back in my 'country of origin' the median salary is under $80 per month, the retiree pay ('pension') from $20-$40,...
by simas
Sun Jan 21, 2024 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Anyway to reduce tax withholding on RSU to $0 (or close to it)?
Replies: 6
Views: 744

Re: Anyway to reduce tax withholding on RSU to $0 (or close to it)?

gwu11 wrote: Sun Jan 21, 2024 12:44 am Even though I'm W-2, I prefer to pay estimated quarterly taxes as I can generate large spend on my credit cards (it's worth it even with 2% fees).

I've been able to reduce federal tax withholding to almost $0 on my regular salary, although FICA taxes get withheld and I don't think that can be changed.

However, on my RSUs there is about 20% withholding. Has anyone found a way to reduce that to zero?
what does your payroll/benefits/HR say? that is where I would start
by simas
Sun Jan 21, 2024 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Net Worth Averages in different professions
Replies: 91
Views: 11549

Re: Net Worth Averages in different professions

If my postings appear as arrogant and ignorant bragging, I apologize. Postings of earnings of $300 K and up are many and appear not infrequently . If those posters work hard and long with good work ethics, and save diligently, the numbers I threw are well within their range. There are also many posts by government employees including public school teachers with a few millions in saving and over $100 K pension with full COLA and full medical coverage. Don't we have to include them all in the arrogant and bragging $5 MM club? I am just number crunching. How about those asking "can I retire in my 30s or 40s with a few millions?" They are all future 5 millionaires, but about to choose not to. Thank you, sir. I think you are just seei...
by simas
Sun Jan 21, 2024 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Net Worth Averages in different professions
Replies: 91
Views: 11549

Re: Net Worth Averages in different professions

That site is pw protected. In any case, it's possible the data sources are different. I'm not arguing that physicians don't make a lot of money; but even someone with a $300k salary is not likely to end up with $10m, on average. The WCI survey is probably pretty representative. Also even someone who does make that today did not make it their entire career. And they likely had loans etc. Check the 2023 WaPo articles which show higher averages and the distribution. Also keep in mind, many doctors do not work full time generating money clinically because they do research, charity care, and or decide to work part time to raise their kids or to cut back later in career. Physicians that are working full time clinically make much more than the pu...
by simas
Sat Jan 20, 2024 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Career advice and retirement
Replies: 35
Views: 4340

Re: Career advice and retirement

Nobody cares what school you went to. It’s irrelevant now. This is not my experience. I've interviewed many people over the years and the first thing I want to know about a person is where they went to school and what degree(s) they have. I don't care if they are 60 -- I want to know if 40 years ago they went to MIT or the local university down the street. It makes a big difference. In this day and age, everybody should seriously interview at least every 3 years. You’re hurting yourself if you don’t. No harm in that, but I would say be careful. Speaking as an interviewer, it is a waste of my time to interview someone who is just testing the waters and doesn't actually want to leave their current job. If your interviewer catches on that you...
by simas
Sat Jan 20, 2024 7:00 am
Forum: Personal Finance (Not Investing)
Topic: Career advice and retirement
Replies: 35
Views: 4340

Re: Career advice and retirement

Stay, but on your own terms. Speak your mind, demand what you want and work as you want. ... without knowing details of OP situation this could be horrible advice. ... first you will get 'feedback forms' showing issues with performance, then you get team mates complaining (anything you do not do they have to pick up), then an improvement plan and then you are just going to be in the 'we need to make a change conversation' with plenty of established evidence of firing for cause. good luck with this. And no, no decent management will leave festering situation like this 'alone' and let this impact others moral and performance. if you want to be in, be in. if you want to be out - get out. the whole I will stop working and taunt them, well you ...
by simas
Sat Jan 20, 2024 6:53 am
Forum: Personal Finance (Not Investing)
Topic: Need to terminate solo 401(k)?
Replies: 22
Views: 4990

Re: Need to terminate solo 401(k)?

[*] Am I terminating my sole proprietorship? Seems like I am, since I will have no income next year related to the business. No. That is a very strange reasoning above. your sole proprietorship does not appear or terminate, it automatically exists when you take on income. [*] Do I need to terminate my Solo 401(k)? Seems like I do, since there will no longer be a business to sponsor it? no. zero reason to do so (unless you hate the fees you are paying for 401k and want to move it to a different plan and/or IRA(s)). What about if it was opened under an LLC instead? I do not know, you would need someone more familiar with this specific area. My (limited) understanding is that LLC is a state registered entity that gives you 'doing business as'...
by simas
Fri Jan 19, 2024 7:28 pm
Forum: Personal Finance (Not Investing)
Topic: Career advice and retirement
Replies: 35
Views: 4340

Re: Career advice and retirement

hi All I could use some advice. My objective is not to work longer than I need to. My fluctuation on my portfolio every day is more than I make in a month, causing me to lose more motivation, but I worry financially about not working. What are you actual questions? Can you cut expenses ? 170K annually is 2.5 of what median household in USA is making (and that is before taxes). if you cut your expenses then with 4.7 million you are already done. I responded to another poster that I do not suggest is acting based on bruised ego - that will only hurt you. if you want to work, then work like you mean it. if you do not, find something else. personally, I would look for ways to manage my expenses , confirm I am financially independent and then g...
by simas
Fri Jan 19, 2024 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Career advice and retirement
Replies: 35
Views: 4340

Re: Career advice and retirement

Stay, but on your own terms. Speak your mind, demand what you want and work as you want. You are financially in a position to be bold enough to do so. Work on your terms and if they dont like it, let them fire you with a nice severance pkg. You'd be surprised how much you can impose your will when you are bold and in a position where you can afford to lose the job and still.be fine. I have seen it happen. The one guy you know who doesnt care and does as he wants, management leaves alone. They are not sure why he is so confident and bold. without knowing details of OP situation this could be horrible advice. I have seen it many items , the whole 'if you dont like it, let them fire you with nice severance pkg' - that is not how it works. fir...
by simas
Fri Jan 19, 2024 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Career advice and retirement
Replies: 35
Views: 4340

Re: Career advice and retirement

Stay, but on your own terms. Speak your mind, demand what you want and work as you want. You are financially in a position to be bold enough to do so. Work on your terms and if they dont like it, let them fire you with a nice severance pkg. You'd be surprised how much you can impose your will when you are bold and in a position where you can afford to lose the job and still.be fine. I have seen it happen. The one guy you know who doesnt care and does as he wants, management leaves alone. They are not sure why he is so confident and bold. without knowing details of OP situation this could be horrible advice. I have seen it many items , the whole 'if you dont like it, let them fire you with nice severance pkg' - that is not how it works. fir...
by simas
Wed Jan 03, 2024 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k in 3 member SCorp
Replies: 3
Views: 418

Re: Solo 401k in 3 member SCorp

consultantstratguy wrote: Wed Jan 03, 2024 6:44 pm Working with our TPA. Just got rid of our employee, starting the new fiscal year with Solo 401k. 3 members, one with a spouse who also earns w2 salary. 60-20-20 profit/loss breakdown between 3 members. All earn a w2 salary (180k for the 60, 113 for each of the 20).

Confused on whether we pay the employer contribution out of the company or whether it can be paid once profit distributions are made? Will that throw our 60-20-20 split off? Mechanically speaking, what is best way for TPA to move forward?

Thanks
- who are the '3' and what does it have to do with _solo_ 401k
- what does your TPA say?

I have never heard of solo plans for 3 members, so curious
by simas
Mon Jan 01, 2024 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: UPDATE: Offered a Larger Rental - Please Help Me Decide
Replies: 67
Views: 10336

Re: Offered a Larger Rental - Please Help Me Decide

My gut is saying that this is an opportunity I should jump at; that the quite well off owners care more about having a known quantity live there and less about getting the highest possible rent. That it’s a perfect mix of more spacious living, already furnished, but with service and a nice nearby pool that I don’t have to maintain. I think the rent will not be significantly more than I’m paying for the month to month small rental (averaging the summer and winter rents, which vary a lot - summer is about double). My gut wants to have guests be able to stay comfortably and have social dinners. My spirit wants to expand into more space after living cramped for my entire life. I don’t see a real downside in renting it if we can agree on price ...
by simas
Mon Jan 01, 2024 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Solo401k Spousal Contribution Clarification
Replies: 50
Views: 3403

Re: Solo401k Spousal Contribution Clarification

Thanks for the reply. This is a custom plan - mysolo401k Ok let's say the business raised 400k this year for gross business income. Hypotethetically, the schedule Cs could be split 329k for him - allowing maximum pre-tax (employer and employee contributions) and her 71k, allowing $13,200 employer contribution and the remainder after-tax non-deductible mega backdoor roth contributions (she has separate 401K maxed from other job) up to the 66k limit. You mentioned using SSN, but if it's a sole prop LLC would the forms just contain the same business name/ein with the income split? Thanks again for the wisdom. what you need a current calculator similar to help you run scenarios for the three values below - employER contribution (your business ...
by simas
Mon Jan 01, 2024 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: UPDATE: Offered a Larger Rental - Please Help Me Decide
Replies: 67
Views: 10336

Re: Offered a Larger Rental - Please Help Me Decide

TLDR: have a chance to rent a great place but have to decide quickly (tomorrow or the next day) and may not get this chance again. My pro and con list is about equal. What factors should I consider and how would you decide? Cost is not the principal issue but I will update this post once I learn their price. Background: I’ve been renting month to month a small but very modern home in a beautiful resort area with a water view and a deck. It isn’t waterfront but up a bit on a hill around 2000 feet from the water. I’ve come to know and love the area and have been shopping around for rentals and getting to know what I want and don’t want. I can’t afford to buy in this area and as a single person with no heirs, I really do not want to buy anywa...
by simas
Mon Jan 01, 2024 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Solo401k Spousal Contribution Clarification
Replies: 50
Views: 3403

Re: Solo401k Spousal Contribution Clarification

Hey all, Quick question for the Solo401k experts out there. If my wife materially participates in the business (no employees) and wants to contribute to our solo 401k plan (she's already on out plan documents). Do we have to issue a 1099-NEC for her income or is there another mechanism for this process? For instance, does our collective 1099 business income already count? Thanks so much for clarity on this issue, Lock - you do not need to issue her anything, as @123 mentioned , you will have to divide 1099 income your business received into your and her income (whichever way you desire) and it would be on Schedule C for each one of you, each on your own SSN. - the amount she can contribute to 401k depends on multiple things -- what plan al...
by simas
Sun Dec 31, 2023 10:47 am
Forum: Personal Finance (Not Investing)
Topic: Legal and tax focused advice forums or places
Replies: 4
Views: 623

Re: Legal and tax focused advice forums or places

I did not see anything else either . Reddit is ok for quick responses (due to wide audience).

However, the _quality_ of any 'advice' you are getting is HIGHLY suspect. no sane professional would be giving you actual legal advice over random , anonymous internet forum for many of reasons including liability. In 100% of the cases the real advice is to seek counsel of qualified professional licensed to practice in your area and very familiar with laws of your state. anything else is a disservice.

at most , internet forum can point to to where to look (how to find lawyers practicing XYZ, how to look up some specialty directory). Same applies to tax 'advice' , you would be pointed to the appropriate IRS publication and recommended to read it.
by simas
Sun Dec 24, 2023 1:35 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth Setup + Backdoor Roth
Replies: 7
Views: 1319

Re: Mega Backdoor Roth Setup + Backdoor Roth

My wife has a newly implemented option for a Mega backdoor Roth within her employer plan. She just signed up for it tonight. I am just double confirming a few things. I verified with Fidelity this is how her mega backdoor Roth employer account works: 1. We will continue to max out the 403B with pre-tax dollars ($23K in 2024) THEN 2. Her 403B allows after tax contributions. We will make some after tax contributions from her paycheck. 3. The after-tax contributions are immediately converted to Roth within the 403B 4. I was told by Fidelity the 401A employer contributions may count against the yearly limit on the Mega backdoor ROTH. I will find out. Additionally: 4. We still are going to max out two "normal" backdoor Roths as I unde...
by simas
Sat Dec 23, 2023 11:30 am
Forum: Personal Investments
Topic: Mega Backdoor Roth Setup + Backdoor Roth
Replies: 7
Views: 1319

Re: Mega Backdoor Roth Setup + Backdoor Roth

My wife has a newly implemented option for a Mega backdoor Roth within her employer plan. She just signed up for it tonight. I am just double confirming a few things. I verified with Fidelity this is how her mega backdoor Roth employer account works: 1. We will continue to max out the 403B with pre-tax dollars ($23K in 2024) THEN 2. Her 403B allows after tax contributions. We will make some after tax contributions from her paycheck. 3. The after-tax contributions are immediately converted to Roth within the 403B 4. I was told by Fidelity the 401A employer contributions may count against the yearly limit on the Mega backdoor ROTH. I will find out. Additionally: 4. We still are going to max out two "normal" backdoor Roths as I unde...
by simas
Fri Dec 22, 2023 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Help asap pls. Solo 401k termination ? Now have employees
Replies: 67
Views: 3946

Re: Help asap pls. Solo 401k termination ? Now have employees

so OP submits rollover request to his provider by EoY, what is the concern? or misses it by few days/weeks showing intent to do it anyway. I am more concerned about late form 5500-EZ filling The concern is that he won't do this because he called in professional help and they can't meet with him until the new year and they tell him because he did not distribute the funds within one year, he can no longer retroactively terminate the plan as of 2022 and now he was out of compliance and that is a lot harder and potentially more expensive to clean up than a late 5500 EZ filing. I'm not sure we should be recommending that the OP [removed --admin LadyGeek] backdate/"discover" a document to deprive their employees of a benefit that they ...
by simas
Fri Dec 22, 2023 7:38 am
Forum: Personal Finance (Not Investing)
Topic: Help asap pls. Solo 401k termination ? Now have employees
Replies: 67
Views: 3946

Re: Help asap pls. Solo 401k termination ? Now have employees

Hello, I wasn't missing the point. I am thankful for your advise minus your misinformed thoughts about me reacting emotionally over a "trivial matter". I was just answering your question by letting you know how I came up with the tens of thousands of dollars penalty number. I was told exactly what I had to pay and how they came up with the number (the percentages I provided) They informed me that I could not backdate canceling the plan, and that if I cancelled it now I would still have to pay the very large penalty. That being said, I do appreciate the advise of you and others, and will ask other professionals about trying to backdate the cancellation and inquiring about the penalty for late filing of the 5500-EZ. Thank you it is...
by simas
Fri Dec 22, 2023 7:34 am
Forum: Personal Finance (Not Investing)
Topic: Help asap pls. Solo 401k termination ? Now have employees
Replies: 67
Views: 3946

Re: Help asap pls. Solo 401k termination ? Now have employees

Anyway, I still think after all this discussion your best course of action, given that you have not made any contributions this year, and assuming you did not file a 5500 EZ this year, is to say the plan was terminated as of 12/31/22, rollover all the assets to an IRA (or a workplace plan if you have another job), and finally file a late 5500 EZ using the penalty relief program: https://www.irs.gov/retirement-plans/pe ... ate-filers The final 5500-EZ is due 7 months after the plan distributes all of the assets. And that's supposed to happen as soon as administratively possible after termination, but it hasn't happened yet, a year later. It might be worth exploring this option with a professional, but be careful not to make the situation wo...