Search found 51 matches

by bwn
Mon Oct 05, 2020 7:25 am
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Re: Updated: Personal Finance Advice for New PhD

I cant figure out how to accurately fill out the W-4, so that I get the correct amount of taxes taken out each month so that I don't have to pay or get a refund at the end of the year. Any advice here would be appreciated, so I'm not giving Uncle Sam an interest free loan. This calculator will tell...
by bwn
Tue Sep 29, 2020 1:42 pm
Forum: Personal Investments
Topic: Roth 403(b) vs 457 vs Roth 457
Replies: 7
Views: 480

Roth 403(b) vs 457 vs Roth 457

Is there a recommendation between the Roth 403(b), Traditional 457, and Roth 457? I've read that a Roth 457 loses all the advantages of a Traditional 457 as money can't be pulled out prior to retirement for emergency expenses.
by bwn
Sun Sep 27, 2020 3:12 pm
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Re: Pre-Tax Contribution Vs Post-Tax Contribution

This is a huge guessing game when you are decades away from retirement. When you suggest after tax dollars to a 403b/457b, this can have a couple meanings. If you are suggesting using a Roth 403b/Roth 457b, that sounds like a reasonable choice. Yes, thank you for catching that. Yes, it would be det...
by bwn
Sun Sep 27, 2020 3:00 pm
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Pre-Tax Contribution Vs Post-Tax Contribution

[Thread merged into here, see below. --admin LadyGeek] My wife and I got new jobs and we are making around $112,000 combined each year with no pretax deductions, which looks like it will put us in the 22% federal bracket. We are young and expecting to be in a higher tax bracket when we retire and s...
by bwn
Sun Sep 27, 2020 2:40 pm
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Re: Updated: Personal Finance Advice for New PhD

Definitely confirm your marginal tax brackets. With $112k combined household income, assuming no pretax deductions like retirement plans or healthcare premiums, it looks like you're in the 22% federal bracket. $112k - ~$24k standard deduction for MFJ = $88k taxable income. If you defer ~$8-9k betwe...
by bwn
Wed Sep 23, 2020 10:58 am
Forum: Personal Investments
Topic: 403(b) vs 457
Replies: 10
Views: 611

Re: 403(b) vs 457

student wrote: Wed Sep 23, 2020 10:51 am As another poster has commented, be careful with 457 as there are big differences between governmental and non-government versions. You can contribute to both up to the maximum of each.
This is a government one.
by bwn
Wed Sep 23, 2020 10:47 am
Forum: Personal Investments
Topic: 403(b) vs 457
Replies: 10
Views: 611

Re: 403(b) vs 457

My teacher wife just started a new job and of course none of the providers are the same as those available at any of her past jobs, so we have to open yet another. I am still working on consolidating all her past accounts. As others said 457b is preferable because of no early withdrawal fee. They h...
by bwn
Wed Sep 23, 2020 10:03 am
Forum: Personal Investments
Topic: 403(b) vs 457
Replies: 10
Views: 611

Re: 403(b) vs 457

KlangFool wrote: Wed Sep 23, 2020 9:57 am
bwn wrote: Wed Sep 23, 2020 9:55 am If I have an option to take a 457 or a 403(b), is one preferred?

457.


457 has no early withdrawal penalty.


KlangFool
Thank you and what about a 457(b) vs a 457(b) TIAA?
by bwn
Wed Sep 23, 2020 9:55 am
Forum: Personal Investments
Topic: 403(b) vs 457
Replies: 10
Views: 611

403(b) vs 457

If I have an option to take a 457 or a 403(b), is one preferred?
by bwn
Wed Sep 23, 2020 9:39 am
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Re: Updated: Personal Finance Advice for New PhD

Undergraduate Loans $16,000 Guilt Free Spending (26.08%): $954.30 Salary: $56,000 25% allocated to "guilt-free spending" seems way too high given your position. I would put most of that toward your student loan. If you put it all toward the loan, it'd be paid off in 1.5 years. Maybe put $...
by bwn
Wed Sep 23, 2020 9:12 am
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Re: Updated: Personal Finance Advice for New PhD

Definitely confirm your marginal tax brackets. With $112k combined household income, assuming no pretax deductions like retirement plans or healthcare premiums, it looks like you're in the 22% federal bracket. $112k - ~$24k standard deduction for MFJ = $88k taxable income. If you defer ~$8-9k betwe...
by bwn
Wed Sep 23, 2020 8:51 am
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Re: Updated: Personal Finance Advice for New PhD

Frankly, when first completing a terminal degree and without any savings, the focus was simply on figuring out investment choices and funding them to the maximum amount possible. After many years in school, there are numerous things that appear that are part of both a more balanced life as well as ...
by bwn
Wed Sep 23, 2020 6:23 am
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Re: Updated: Personal Finance Advice for New PhD

* Should I use my Roth IRA as an emergency savings account or use a high yield savings account like Ally? In my portfolio, I consider Roth IRA contributions as part of my "emergency fund". There have been threads on this in the past. My Roth is 100% equity. Considering this money as part ...
by bwn
Wed Sep 23, 2020 6:20 am
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Re: Updated: Personal Finance Advice for New PhD

Federal tax brackets are 0%, 10%, 12%, 22%, 24%,... Using your paycheck will tell you your total tax. It won’t tell you your marginal tax rate. That is, you want to know the tax rate you’re paying on one additional dollar of income. If your PhD is in a mathematical field, it’s the derivative of you...
by bwn
Tue Sep 22, 2020 9:04 pm
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Re: Updated: Personal Finance Advice for New PhD

Dr bwn, congratulations on finishing PhD and starting postdoc! Given your stipend, it's commendable that you've been saving 17% of your income. I have some observations and some questions: * Your emergency funds seem to cover ~5 months of fixed expenses. Perhaps you want to make it 6 months of tota...
by bwn
Tue Sep 22, 2020 8:08 pm
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Re: Updated: Personal Finance Advice for New PhD

Keep it simple starting out. Both do 10% and max Roth IRA every year. EF in high yield. Take what you need for bills and save rest for house down payment. The more you make the bigger the 10% is. Thanks! By 10% do you mean 10% to 403(b) and then max out the Roth IRA? Can you also give an example of...
by bwn
Tue Sep 22, 2020 6:44 pm
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Re: Updated: Personal Finance Advice for New PhD

Dr bwn, congratulations on finishing PhD and starting postdoc! Given your stipend, it's commendable that you've been saving 17% of your income. I have some observations and some questions: * Your emergency funds seem to cover ~5 months of fixed expenses. Perhaps you want to make it 6 months of tota...
by bwn
Tue Sep 22, 2020 6:08 pm
Forum: Personal Investments
Topic: Updated: Personal Finance Advice for New PhD
Replies: 31
Views: 2112

Updated: Personal Finance Advice for New PhD

Hi All, Background I'm a 31 year old married male who just finished his PhD after 7 years. My wife just got her PhD as well in the same field. During graduate school, all tuition was waved, but the stipend was only $20,000 each year. Despite this low income, I've managed to save about 17% of my inco...
by bwn
Mon Sep 21, 2020 12:46 pm
Forum: Personal Investments
Topic: 403(b) Fidelity to Vanguard
Replies: 26
Views: 1129

Re: 403(b) Fidelity to Vanguard

Are you married? We had to get a spousal release form notarized for TIAA before moving funds from a 403B to an IRA at another institution. The easiest is likely rolling it to an IRA rollover at Fidelity and then electronically transferring it to Vanguard. Yes, I'm married. I'm thinking of seeing if...
by bwn
Mon Sep 21, 2020 7:22 am
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2211

Re: Best Vehicle for Home Savings

When it comes to this particular question, I had read "what I would do is make sure you have your emergency fund in place of three to six months of expenses, and of course you are debt-free to boot. The rest of the money we just pile up over in a money market account. It’s not going to earn you...
by bwn
Mon Sep 21, 2020 7:18 am
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2211

Re: Best Vehicle for Home Savings

If you were 5-10 years out from putting 20% down on a house, what is the best place to save money to fight inflation while protecting the savings from market swings? @bwn You mentioned inflation a couple of times, and protecting the money from market swings. Is this correct? If I said you have low ...
by bwn
Mon Sep 21, 2020 7:16 am
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2211

Re: Best Vehicle for Home Savings

Meet the match in your 403b first, then second max out your Roth IRA. I may have missed it, but if you’re not at least contributing 403b employer match percentage, I would consider that before anything else because it’s free money you would otherwise miss out on. Unfortunately, there is no employer...
by bwn
Mon Sep 21, 2020 7:16 am
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2211

Re: Best Vehicle for Home Savings

If you're in a market where it makes more sense to buy than rent, I would look for ways to buy sooner than 10 years in the future. Either buy a home with less than 20% down or look at less expensive homes. I've read that with less than 20% down you have to pay much higher fees (e.g., mortgage insur...
by bwn
Sun Sep 20, 2020 3:21 pm
Forum: Personal Investments
Topic: 403(b) Fidelity to Vanguard
Replies: 26
Views: 1129

Re: 403(b) Fidelity to Vanguard

I have some money in 403(b) fund at Fidelity that I'd like to move to Vanguard, where I have a Roth IRA so that accounts are consolidated and so that I can rebalance. Below are a few questions. In another thread you mention that you've just started a postdoc job. Is the Fidelity 403b with your new ...
by bwn
Sun Sep 20, 2020 3:19 pm
Forum: Personal Investments
Topic: 403(b) Fidelity to Vanguard
Replies: 26
Views: 1129

Re: 403(b) Fidelity to Vanguard

I have some money in 403(b) fund at Fidelity that I'd like to move to Vanguard, where I have a Roth IRA so that accounts are consolidated and so that I can rebalance. Below are a few questions. In another thread you mention that you've just started a postdoc job. Is the Fidelity 403b with your new ...
by bwn
Sun Sep 20, 2020 2:56 pm
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2211

Re: Best Vehicle for Home Savings

Hahaha. Gotta love Klangfool responses. When I was younger, I saved in a high yield savings account, 401k loan, Roth IRA. In that order. We bought a low enough cost home that the HYSA was enough for 20% down without having to touch retirement accounts. Now, that I am older, I don't save for anythin...
by bwn
Sun Sep 20, 2020 1:23 pm
Forum: Personal Investments
Topic: 403(b) Fidelity to Vanguard
Replies: 26
Views: 1129

Re: 403(b) Fidelity to Vanguard

Yes, the 403(b) is from an old employer. I'm currently contributing to max out a Roth IRA each year and putting the rest of the savings towards a 3 month emergency savings account before I start to contribute to my current employers 403(b). Unfortunately, the current employer does not offer any mat...
by bwn
Sun Sep 20, 2020 1:21 pm
Forum: Personal Investments
Topic: 403(b) Fidelity to Vanguard
Replies: 26
Views: 1129

Re: 403(b) Fidelity to Vanguard

My bonds are all in a 403(b) at Fidelity and my stocks are all in a Roth IRA at Vanguard. I was assuming that I had to transfer the 403(b) to Vanguard before I could rebalance? You realize that you can make changes within your 2 accounts without any tax consequences. I think you will have to includ...
by bwn
Sun Sep 20, 2020 1:18 pm
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2211

Re: Best Vehicle for Home Savings

Hahaha. Gotta love Klangfool responses. When I was younger, I saved in a high yield savings account, 401k loan, Roth IRA. In that order. We bought a low enough cost home that the HYSA was enough for 20% down without having to touch retirement accounts. Now, that I am older, I don't save for anythin...
by bwn
Sun Sep 20, 2020 1:08 pm
Forum: Personal Investments
Topic: 403(b) Fidelity to Vanguard
Replies: 26
Views: 1129

Re: 403(b) Fidelity to Vanguard

Can you rebalance funds if they are split between a Traditional 403(b) and a Roth IRA? Rebalancing involves making changes within your accounts so that the overall asset allocation is brought back to what you want. You might find it convenient to use target retirement funds that do the rebalancing ...
by bwn
Sun Sep 20, 2020 1:06 pm
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2211

Re: Best Vehicle for Home Savings

Hahaha. Gotta love Klangfool responses. When I was younger, I saved in a high yield savings account, 401k loan, Roth IRA. In that order. We bought a low enough cost home that the HYSA was enough for 20% down without having to touch retirement accounts. Now, that I am older, I don't save for anythin...
by bwn
Sun Sep 20, 2020 1:03 pm
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2211

Re: Best Vehicle for Home Savings

Five to ten years is a long time. Roth IRA and a taxable brokerage account. I’d put it into equities in the beginning and shift to bonds/cash as the purchase date gets closer. If we want to separate our retirement savings from home savings, would it make sense to save to a taxable brokerage account...
by bwn
Sun Sep 20, 2020 12:59 pm
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2211

Re: Best Vehicle for Home Savings

Hahaha. Gotta love Klangfool responses. When I was younger, I saved in a high yield savings account, 401k loan, Roth IRA. In that order. We bought a low enough cost home that the HYSA was enough for 20% down without having to touch retirement accounts. Now, that I am older, I don't save for anythin...
by bwn
Sun Sep 20, 2020 12:56 pm
Forum: Personal Investments
Topic: 403(b) Fidelity to Vanguard
Replies: 26
Views: 1129

Re: 403(b) Fidelity to Vanguard

Can you rebalance funds if they are split between a Traditional 403(b) and a Roth IRA? Rebalancing involves making changes within your accounts so that the overall asset allocation is brought back to what you want. You might find it convenient to use target retirement funds that do the rebalancing ...
by bwn
Sun Sep 20, 2020 12:55 pm
Forum: Personal Investments
Topic: 403(b) Fidelity to Vanguard
Replies: 26
Views: 1129

Re: 403(b) Fidelity to Vanguard

I have some money in 403(b) fund at Fidelity that I'd like to move to Vanguard, where I have a Roth IRA so that accounts are consolidated and so that I can rebalance. Below are a few questions. In another thread you mention that you've just started a postdoc job. Is the Fidelity 403b with your new ...
by bwn
Sun Sep 20, 2020 11:33 am
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2211

Re: Best Vehicle for Home Savings

If you were 5-10 years out from putting 20% down on a house, what is the best place to save money to fight inflation while protecting the savings from market swings? None. You do not need to save for the house down payment. You only need the emergency fund and your portfolio in order to buy a house...
by bwn
Sun Sep 20, 2020 11:07 am
Forum: Personal Investments
Topic: Best Vehicle for Home Savings
Replies: 30
Views: 2211

Best Vehicle for Home Savings

If you were 5-10 years out from putting 20% down on a house, what is the best place to save money to fight inflation while protecting the savings from market swings?
by bwn
Sun Sep 20, 2020 8:33 am
Forum: Personal Investments
Topic: 403(b) Fidelity to Vanguard
Replies: 26
Views: 1129

403(b) Fidelity to Vanguard

I have some money in 403(b) fund at Fidelity that I'd like to move to Vanguard, where I have a Roth IRA so that accounts are consolidated and so that I can rebalance. Below are a few questions. What is the best way to go about transferring from Fidelity to Vanguard? Right now Fidelity is saying that...
by bwn
Wed Sep 09, 2020 9:57 am
Forum: Personal Investments
Topic: Personal Finance Advice for New PhD
Replies: 27
Views: 2654

Re: Personal Finance Advice for New PhD

Congratulations on finishing the PhD and also saving so much while on a graduate student stipend. I'm a recent PhD recipient as well (one month ago!) and now a postdoc myself - it's great to earn a real salary, huh? Be proud of your efforts and accomplishments. The only things I might add to the li...
by bwn
Wed Sep 09, 2020 7:59 am
Forum: Personal Investments
Topic: Personal Finance Advice for New PhD
Replies: 27
Views: 2654

Re: Personal Finance Advice for New PhD

I finished my PhD in 2011 and have made serious progress since, buying a house and investing a ton towards my retirement. You may not earn a lot in academia, but having a long term mindset is probably the most important personality characteristic to financial wellbeing, not income. Lots of rich bro...
by bwn
Sat Aug 29, 2020 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Selecting Correct Paycheck Deductions
Replies: 22
Views: 1083

Re: Selecting Correct Paycheck Deductions

livesoft wrote: Sat Aug 29, 2020 3:16 pm OK, with your extra money you should save for your retirement, your emergency fund, and your home down payment.
If I've maxed out my Roth IRA contribution, what are the next best vehicles for retirement and home down payment?
by bwn
Sat Aug 29, 2020 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Selecting Correct Paycheck Deductions
Replies: 22
Views: 1083

Re: Selecting Correct Paycheck Deductions

I'm planning on saving 30% of my income, so I will max out my Roth IRA and build an emergency savings account, but once the savings account is complete, what should I do with the extra money if I can't invest it in the Roth IRA? What are the goals for your money? Please be specific. Goal 1: Save fo...
by bwn
Sat Aug 29, 2020 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Selecting Correct Paycheck Deductions
Replies: 22
Views: 1083

Re: Selecting Correct Paycheck Deductions

I think I could opt into a 403(b), but it's not advertised. Any recommendations on that front? I do have health insurance, but have to pay a deductible. Find out about your 403(b). My son is in the onboarding process at his new job. He will be eligible for a 403(b) they say, but they haven't told h...
by bwn
Sat Aug 29, 2020 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Selecting Correct Paycheck Deductions
Replies: 22
Views: 1083

Re: Selecting Correct Paycheck Deductions

You would pay less tax if you had deductible health/medical insurance premiums, HSA contributions, 403(b) or 401(k) contributions. So what happened to all those things? And here I considered myself lucky getting health insurance with my post doc. I didn't interview for a single one that offered a r...
by bwn
Sat Aug 29, 2020 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Selecting Correct Paycheck Deductions
Replies: 22
Views: 1083

Re: Selecting Correct Paycheck Deductions

sailaway wrote: Sat Aug 29, 2020 1:30 pm The first Fed is your income tax, the next two are your payroll taxes. It all looks quite reasonable for your income.
So an overall tax rate of 21.59% when making $56,000 is normal?
by bwn
Sat Aug 29, 2020 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Selecting Correct Paycheck Deductions
Replies: 22
Views: 1083

Re: Selecting Correct Paycheck Deductions

Well, part of that is FICA, so not much you can do about that. Then you can expect to be in the 12% federal tax bracket with that income. Perhaps not in 2020, depending on what you have been doing up until now, but the payroll department looks at each check as if every check were going to be the sa...
by bwn
Sat Aug 29, 2020 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Selecting Correct Paycheck Deductions
Replies: 22
Views: 1083

Selecting Correct Paycheck Deductions

Hello, I just started a postdoc position in NC with a gross salary of $56,000 per year after getting my PhD. Right now my gross pay each month is $4,666.67, but after taxes I am only getting $3,659.16, which is a tax rate of 21.59%. Does this seem correct? I'm married with no dependents, so I had se...
by bwn
Tue Aug 25, 2020 8:12 pm
Forum: Personal Investments
Topic: Personal Finance Advice for New PhD
Replies: 27
Views: 2654

Re: Personal Finance Advice for New PhD

You finished your education with a positive net worth. That puts you ahead of the most of your peers with a PhD. I see that you are married but I do not see that your wife is working. If she has income, you should let us know. Are your loans public or private? What is the interest rate? The answers...
by bwn
Tue Aug 25, 2020 7:57 pm
Forum: Personal Investments
Topic: Personal Finance Advice for New PhD
Replies: 27
Views: 2654

Re: Personal Finance Advice for New PhD

I would live off my spouse's salary and save everything. Your income is rather high and will get higher, so you can afford to: 1. Contribute max to your 403(b) or 401(k). Yes, you should do the 403(b) probably before you do Roth IRAs. 2. Contribute max to your spouse's 403(b) or 401(k), 3. Contribu...
by bwn
Tue Aug 25, 2020 7:43 pm
Forum: Personal Investments
Topic: Personal Finance Advice for New PhD
Replies: 27
Views: 2654

Re: Personal Finance Advice for New PhD

Save 2 x 6,000 for Roth IRA for now. If there is more money to save, put them in a taxable account for house, emergency fund, etc. We will both be able to max out our Roth IRAs and have an additional $6,000 each to save each year. The University doesn't offer a 401k or match, so where should these ...