Search found 61 matches

by JaxFLbh
Mon Dec 24, 2018 7:50 am
Forum: Personal Investments
Topic: Can I open a SEP-IRA? Already did backdoor roth
Replies: 6
Views: 551

Re: Can I open a SEP-IRA? Already did backdoor roth

OK so I think my plan will be this:

1- Open the SEP IRA (because I think I've waited too long for opening the 401k this calendar year) in the next couple months and contribute 25% of my 2018 salary to it.
2- Convert the SEP to a solo-401k in 2019.
3-Perform backdoor roth after the conversion of the SEP.

Sound like a good plan?
by JaxFLbh
Mon Dec 24, 2018 7:42 am
Forum: Personal Investments
Topic: Can I open a SEP-IRA? Already did backdoor roth
Replies: 6
Views: 551

Re: Can I open a SEP-IRA? Already did backdoor roth

Spirit Rider wrote: Sat Dec 22, 2018 6:38 pm
l2yangop wrote: Sat Dec 22, 2018 2:50 pm Thanks for your input. Much appreciated! So it looks like I'm out of luck on the SEP-IRA.
You are not out of luck on the SEP IRA.
As pointed out by @norules, Form 8606 line 6 uses all pre-tax balances in traditional, SEP and SIMPLE IRA accounts as of 12/31. However, you have until the S-Corp's tax filing deadline (03/15/19) including extensions (09/16/19) to make SEP IRA employer contributions for the 2018 tax year. You can still contribute up to 25% of your W-2 compensation for this tax year, just not in this tax year and avoid pro-rata treatment.
by JaxFLbh
Sat Dec 22, 2018 2:50 pm
Forum: Personal Investments
Topic: Can I open a SEP-IRA? Already did backdoor roth
Replies: 6
Views: 551

Re: Can I open a SEP-IRA? Already did backdoor roth

SEP-IRA will interfere with backdoor Roth IRA's Roth conversion step because SEP-IRA balances at year end are considered by form 8606. Since you have already done the Roth conversion in calendar 2018, your 2018 tax return will include 2018 8606 which will look for IRA balances in Traditional IRA, Rollover IRA, SEP-IRA, SIMPLE-IRA as of 12/31/2018. If you open a SEP-IRA now and contribute to it, your SEP-IRA balance on 12/31/2018 will trigger IRA basis proration. Solo 401k has the advantage that it is not considered by form 8606 and thus does not trigger IRA basis proration. Solo 401k also allows for larger contributions than SEP-IRA at most income levels. For example, if your S-Corp paid you 80K salary, SEP-IRA would allow 20K contribution...
by JaxFLbh
Sat Dec 22, 2018 2:09 pm
Forum: Personal Investments
Topic: Can I open a SEP-IRA? Already did backdoor roth
Replies: 6
Views: 551

Can I open a SEP-IRA? Already did backdoor roth

I started an S-Corp in Jan of this year and have been paid roughly 150k. I'm the only employee of my S-corp. I took 60% in compensation and the rest remains in the business with plans for distribution/retirement contributions. My wife makes 120k/yr W-2 if that matters. I was under the impression this whole time that I could work out the retirement options come tax time but now I'm starting to panic after reading up on the pro-rata rule and backdoor Roths. I've already done the backdoor conversion this year so does that mean I will not be able to open an SEP-IRA and that I should contribute to a Solo-401k instead? If that is the case, I assume it's too late in the year to open and fund one, correct? Don't you have to make contributions with ...
by JaxFLbh
Thu Oct 19, 2017 9:57 am
Forum: Investing - Theory, News & General
Topic: Office wants to pay dentist as contractor (sub-s). Any issues?
Replies: 25
Views: 3391

Re: Office wants to pay dentist as contractor (sub-s). Any issues?

I respectfully disagree with the dentist that says it's illegal 100% of the time, and I'm comfortable with how my practice is set up but that's off topic. In your wife's circumstance she sounds more like an employee. I'm assuming the following: she's signing a contract with them, they can fire her, they are dictating her salary, they are providing supplies, they provide the patients and she cannot leave with those patients, they run the billing, they supply the auxiliary staff, they run the appointment book, etc. Additionally, if her compensation and everything else is equal whether she is a W-2 or 1099, I would imagine you would want the employer to pay their half of the payroll taxes. My girlfriend is also a dentist for a different offic...
by JaxFLbh
Thu Oct 19, 2017 8:50 am
Forum: Investing - Theory, News & General
Topic: Office wants to pay dentist as contractor (sub-s). Any issues?
Replies: 25
Views: 3391

Re: Office wants to pay dentist as contractor (sub-s). Any issues?

SCSurf wrote: Thu Oct 19, 2017 8:22 am I really wish you would listen to a dentist. An employer/employee relationship exists. The employer is a dental corporation and they are hiring an employee (the dentist) and directing what work and how it will be carried out. She must absolutely work as a W-2 employee.
For what it's worth (and that may not be much)I've spoken with a couple CPA's informally after I posted this to just run this by them and they generally agree it could work either way (1099 or w-2) but that you must be careful not to pay yourself primarily in distributions that are taxed much lower than a salary, or you risk being audited.
by JaxFLbh
Wed Oct 18, 2017 9:56 pm
Forum: Investing - Theory, News & General
Topic: Office wants to pay dentist as contractor (sub-s). Any issues?
Replies: 25
Views: 3391

Re: Office wants to pay dentist as contractor (sub-s). Any issues?

123 wrote: Wed Oct 18, 2017 9:42 pm So how does dental malpractice insurance work in this situation? If a dentist is a contractor/self-employed do they have to provide for it themselves or if they are an employee does the employer provide it? Or is the individual dentist always personally liable with regard to malpractice whether he/she is an employee or contractor/self-employed?
shes always paid her own even as w-2. I think thats industry standard but IDK for sure
by JaxFLbh
Wed Oct 18, 2017 9:28 pm
Forum: Investing - Theory, News & General
Topic: Office wants to pay dentist as contractor (sub-s). Any issues?
Replies: 25
Views: 3391

Re: Office wants to pay dentist as contractor (sub-s). Any issues?

The compensation rate will be the same regardless of which way she goes. This is never a good sign. This indicates that the employer is trying to save money with this move. I realize she will be responsible for more payroll taxes, but with the tax advantaged nature of being a corporation outweigh that extra 6-7% she'll have to pay in payroll taxes? 7.65%, unemployment insurance, workman's compensation insurance, etc... Also a big motivator for going sub-s is that she can shelter 50k per year in taxes with a sep-ira This is a myth. There is no difference in the amount of retirement contributions between an S-Corp and self-employment on the same net business profit. In fact since employer contributions for W-2 employees are based in W-2 comp...
by JaxFLbh
Wed Oct 18, 2017 7:46 pm
Forum: Investing - Theory, News & General
Topic: Office wants to pay dentist as contractor (sub-s). Any issues?
Replies: 25
Views: 3391

Re: Office wants to pay dentist as contractor (sub-s). Any issues?

All of the above employee vs. Independent Contractor (IC) statements might generally be true for most ICs who should be classified as at will employees. However, it is relatively easy to structure a contract for a professional to qualify as an IC under IRS guidance. You just frame Behavioral Control, Financial Control and Type of Relationship as that between a client and an IC. Medical and dental professionals are routinely properly paid as contractors. As previously said the equipment issue is a Red Herring in this case. An emergency Doctor is not going to be bringing an emergency room with him. All they need are their knowledge, skills and experience. All gained on their own and their own dime. It is not the contractor who has to worry a...
by JaxFLbh
Wed Oct 18, 2017 10:24 am
Forum: Investing - Theory, News & General
Topic: Office wants to pay dentist as contractor (sub-s). Any issues?
Replies: 25
Views: 3391

Office wants to pay dentist as contractor (sub-s). Any issues?

Hi all. I am hoping someone can point me in the right direction (or even maybe flat out answer it) on a question about working as a medical professional and being paid corp to crop. A local dental office wants to hire my dentist wife and pay her as a contractor. Apparently the owners have many offices and pay all their dentists that way. They would offer W-2 and make her an employee if she wishes, but they stressed the tax benefits of taking deductions and distributions at a lower rate. I’m no CEO but I remember from business classes that there are certain criteria that must be met to allow one to be paid as a contractor under a sub-s. Is there any concern on her end legally about entering into this agreement? She doesn’t currently have a s...
by JaxFLbh
Wed Apr 05, 2017 9:15 am
Forum: US Chapters
Topic: Boglehead Conference 2017?
Replies: 34
Views: 8172

Re: Boglehead Conference 2017?

What happened to April 5th? Its already sold out?
by JaxFLbh
Wed Apr 05, 2017 9:06 am
Forum: Investing - Theory, News & General
Topic: 2017 BOGLEHEADS CONFERENCE ANNOUNCEMENT
Replies: 192
Views: 41193

Re: 2017 BOGLEHEADS CONFERENCE ANNOUNCEMENT

The announcement was supposed to be today was it not? I logged in just now to see its already sold out? What the heck! Please add two to the waiting list.
by JaxFLbh
Sun Feb 12, 2017 9:20 am
Forum: Personal Finance (Not Investing)
Topic: millennials considering purchase of a dentist practice
Replies: 27
Views: 5465

Re: millennials considering purchase of a dentist practice

I could probably write you a book on my experience over the past 18 months of negotiations to buy into a large private practice. I'll try to summarize what I've learned into a couple of bullet points: 1) absolutely hire your own lawyer, CPA, or transitions team. It will save you time and money in the long haul. Here are a few suggestions I've personally worked with - The Sletten Group (ask for Paul) or McGill-Hill (ask for Roger). Be prepared to spend 8-10k. 2) the current dentist needs to hire his own transitions team to create a prospectus of the practice so that a value can be determined. In a very broad stroke statement, you can expect to see values ranging from 60-80% of total collections. There are many variables that will determine ...
by JaxFLbh
Sat Feb 11, 2017 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: millennials considering purchase of a dentist practice
Replies: 27
Views: 5465

Re: millennials considering purchase of a dentist practice

A valuation has to be done. This should be performed by someone who does this only in the dental field. There are so many "gotchas" that are missed by those outside the dental field. For example, if the selling dentist is in-network with Delta Premier, many don't know that Delta (in most states) no longer allows new dentists to sign up for only Premier rates and they also have to accept their lower non-Premier rates. This means that the revenue generated by a selling dentist in-network with Premier only cannot be replicated by the buying dentist. You also have to look at what procedure the selling dentist does vs those that are referred out. Are there procedures referred out that your wife can do and keep in house? Along the same...
by JaxFLbh
Sat Feb 11, 2017 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: millennials considering purchase of a dentist practice
Replies: 27
Views: 5465

Re: millennials considering purchase of a dentist practice

I don't know if AFTCO is available in your area. For 10 percent of the sales price they will look at the practice, appraise it, and come up with agreements as to what happens before and after the sale. If the practice sells for 500k, that is 50 thousand but AFTCO has some experience with this and can help. I just Googled AFTCO dental and if you do that you can get contact information. I bought a general dental practice many years ago at about 45 percent of the collections, and that is one way to evaluate the practice value, some sort of percentage of the collections. The owner dentist agreed to let me work for a year and then decide if I wanted to buy. The year working for him was invaluable. Given the tendency of folks to have a lot of st...
by JaxFLbh
Sat Feb 11, 2017 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: millennials considering purchase of a dentist practice
Replies: 27
Views: 5465

Re: millennials considering purchase of a dentist practice

Not a dentist ... but a few thoughts/questions: 1. As a consumer, the trend (correct me if I am wrong) seems to be dentists in practices with multiple dentists - not just one dentist any more. Is that correct .. or not? 2. Is starting her own practice, from scratch (or perhaps from scratch with another dentist) a possibility? 3. This would concern me: She is not business savvy in the least . Maybe a partner who has some business savvy would be possible? 1. Yes, and the trend is corporate dentistry as well. There is a major riff between philosophies and my wife is on the private side. 2. Yes, perhaps 3. I would potentially assist in this by cutting my corporate job to part time. The office she is looking at probably can't sustain two doctor...
by JaxFLbh
Fri Feb 10, 2017 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: millennials considering purchase of a dentist practice
Replies: 27
Views: 5465

Re: millennials considering purchase of a dentist practice

Paying a local CPA to take a look at this and generate follow up questions would be worth every penny in my opinion. Hard to say what that might cost depending on where you live and how complicated it is, but you're probably looking at $1500-2500, and they might require a retainer. Even better if you find one who deals with professional services on a regular basis - doctors, dentists, etc. A full on business valuation would be wasteful - you aren't there yet. Did the current owner have a valuation done? If not, how did they determine what the practice is worth? That would probably be the first piece a qualified CPA would want to dig into, before looking at the prior year tax returns. If you decide it makes sense, they can also advise you o...
by JaxFLbh
Fri Feb 10, 2017 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: millennials considering purchase of a dentist practice
Replies: 27
Views: 5465

Re: millennials considering purchase of a dentist practice

Paying a local CPA to take a look at this and generate follow up questions would be worth every penny in my opinion. Hard to say what that might cost depending on where you live and how complicated it is, but you're probably looking at $1500-2500, and they might require a retainer. Even better if you find one who deals with professional services on a regular basis - doctors, dentists, etc. A full on business valuation would be wasteful - you aren't there yet. Did the current owner have a valuation done? If not, how did they determine what the practice is worth? That would probably be the first piece a qualified CPA would want to dig into, before looking at the prior year tax returns. If you decide it makes sense, they can also advise you o...
by JaxFLbh
Fri Feb 10, 2017 8:21 am
Forum: Personal Finance (Not Investing)
Topic: millennials considering purchase of a dentist practice
Replies: 27
Views: 5465

millennials considering purchase of a dentist practice

Hello fellow Bogleheads, I am not looking for full on consulting help here, rather just hoping someone can point me in the direction I need to go. My wife is considering leaving her current non-ownership position as a dentist in a local office to potentially enter into an eventual buyout arrangement with another office. She has a lot of ideas for making a practice profitable that she would like to implement but currently has no say where she works. She is not business savvy in the least but I do have some formal education (MPA) on some business matters but my job in the tech sector has left those skills untapped for a few years. Anyway, the agreement she would potentially enter into would be some type of succession arrangement where she wou...
by JaxFLbh
Fri Jul 15, 2016 9:41 am
Forum: Personal Finance (Not Investing)
Topic: AMA Life & Disability Insurance
Replies: 12
Views: 3845

Re: AMA Life & Disability Insurance

Sorry to dig up this old thread, but do you still have that comparison image? Im doing that comparison right this moment! Below is a summary I created showing the side-by-side differences between a Guardian individual DI policy and the AMA policy. I use Guardian for these comparisons since they have the best individual DI contract. Just about any individual DI policy will be better than the AMA policy. Note that the statements made are general in nature and you should always reference specific contract language for full details. amacomparison.jpg Ask and you shall receive....I haven't looked at the AMA policy in a bit so it's possible some of this could be slightly different, but should be accurate. Guardian also increased their max benefi...
by JaxFLbh
Fri Jan 15, 2016 7:53 pm
Forum: US Chapters
Topic: Jacksonville Local Chapter Formed
Replies: 23
Views: 6351

Re: Jacksonville Local Chapter?

ebeard wrote:Boglehead meeting first Thursday of every month.

When: March 1, 2012 @ 7pm
Duration: <1hour
Where: Starbucks, 1650 Margaret Street, Jacksonville, FL 32204
Who: My name is Chad, I will have my MacBook Air displaying Bogleheads.org site.

Look forward to seeing you!

Bumping a really old thread. Please forgive. Jacksonville group still meeting?
by JaxFLbh
Mon Jan 04, 2016 11:48 am
Forum: Personal Finance (Not Investing)
Topic: AMA Life & Disability Insurance
Replies: 12
Views: 3845

Re: AMA Life & Disability Insurance

Sorry to dig up this old thread, but do you still have that comparison image? Im doing that comparison right this moment!
BruDude wrote:Below is a summary I created showing the side-by-side differences between a Guardian individual DI policy and the AMA policy. I use Guardian for these comparisons since they have the best individual DI contract. Just about any individual DI policy will be better than the AMA policy. Note that the statements made are general in nature and you should always reference specific contract language for full details.

amacomparison.jpg
by JaxFLbh
Mon Dec 21, 2015 2:23 pm
Forum: Personal Consumer Issues
Topic: Thoughts on switching to a small local homeowners insurer
Replies: 1
Views: 364

Thoughts on switching to a small local homeowners insurer

I am thinking of switching from a mega nationwide insurer for my homeowners insurance to a group local to my state (FL) and SC. I wondered if anyone has and reservations or advice on doing so. The primary motivation is a low rate. They are not on AM Best but I looked up their Demotech rating and it is an A. They've only existed since 2003 which means they have never even seen a hurricane in FL.

http://www.demotech.com/search_results_ ... =11844&t=2

I guess being in FL, I'm concerned they may not be able to pay a claim should half the state end up filing. Thoughts?
by JaxFLbh
Wed Oct 15, 2014 12:40 pm
Forum: Personal Investments
Topic: Treat all accts as 1 BIG account for AA or target 70/30 each
Replies: 7
Views: 1243

Re: Treat all accts as 1 BIG account for AA or target 70/30

harikaried wrote:Sounds like you're looking for how to implement an AA across accounts based on tax and growth properties of equities vs bonds:

Principles of tax-efficient fund placement
Tax-adjusted asset allocation
Yes, thats exactly what Im trying. Thanks for the resources.
by JaxFLbh
Wed Oct 15, 2014 11:42 am
Forum: Personal Investments
Topic: Treat all accts as 1 BIG account for AA or target 70/30 each
Replies: 7
Views: 1243

Treat all accts as 1 BIG account for AA or target 70/30 each

I have a question about asset allocation. Should I treat all of my portfolios as one BIG portfolio or should I target my 70/30 ideal AA in EACH individual account?

It seems to me that it would make more sense to put the bond portion of my 70/30 AA in the HSA or 403B and use the ROTHS for the 70% stocks. But I’ve always wondered the BH take on this and never gotten around to asking until now.

I have the following accounts:

Roth
Wife- Roth
HSA
403B
Coverdell
by JaxFLbh
Fri Sep 19, 2014 7:25 am
Forum: Investing - Theory, News & General
Topic: Florida prepaid college plan. Dumb or undumb?
Replies: 51
Views: 20334

Re: Florida prepaid college plan. Dumb or undumb?

Very helpful and exactly the insight I was looking for. Thanks all!
by JaxFLbh
Wed Sep 17, 2014 11:07 am
Forum: Investing - Theory, News & General
Topic: Florida prepaid college plan. Dumb or undumb?
Replies: 51
Views: 20334

Florida prepaid college plan. Dumb or undumb?

Basically you select a payment plan that ranges from 27k lump sum to 37k if you elect monthly payments based on child’s age (currently infant). Then you are guaranteed a 4 year 120credit education at a state university. I’m thinking it may be smarter to invest the money and let it grow over time to pay for college 18 years from now, but at the rate of tuition increases, it could cost into the 200k’s by the time she is 18. Another thing, I'm thinking that 18 years from now, "college" as we know it might look a lot different. The confluence of the skyrocketing student loan bubble, ridiculous pricing at Universities, and technological innovation that could teach a student everything a college could at home, I think, are going to chan...
by JaxFLbh
Mon Aug 04, 2014 4:03 pm
Forum: Personal Investments
Topic: HSA Strategy for high income earners
Replies: 82
Views: 13815

Re: HSA Strategy for high income earners

I use this strategy too but always wondered something. Asset allocation.

I have a FSA, ROTH and 403B and am trying to follow the 3 fund bogleheads approach. Should I treat all 3 portfolios as 1 big portfolio?

Or should I try to hold the bonds in the HSA since that is safest in case I DO need to use it for health expenses and then use the Roth for index and international?

Or target (my current) a 40/30/20 mix in each of the three portfolios?
by JaxFLbh
Sat Jul 19, 2014 9:18 pm
Forum: Forum Issues and Administration
Topic: Tapatalk Integration
Replies: 50
Views: 24198

Re: Tapatalk Integration

+1 here too!
by JaxFLbh
Fri Jul 18, 2014 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Wife has no retirement options- is breadwinner
Replies: 36
Views: 4776

Re: Wife has no retirement options- is breadwinner

Well, if you don't have a HSA or a work-based retirement plan for her, let's think creatively about other tax advantaged options... What other benefits do you have through your work? Do you have a health care flex spending account or a dependent care flex spending account? Would a Coverdell make sense to reimburse yourselves before the kiddo goes to college for internet, computer supplies, school supplies, school fees (like bus transportation) that you accrue for their K-12 years? What about I-bonds? There are lots of threads about using your tax refund to buy additional I-bonds, beyond what you can buy directly through treasury direct. Can you do after-tax contributions to your 401K? Paying down any debt (such as mortgage principal) is an...
by JaxFLbh
Fri Jul 18, 2014 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Wife has no retirement options- is breadwinner
Replies: 36
Views: 4776

Re: Wife has no retirement options- is breadwinner

Disclaimer: this comes from a man with a professional daughter who works full time. OP, I am confused. It sounds like she makes as much or more than you working half time than your full time. It seems like the wrong person might be staying at home for whatever reason that is being done for. But the lady went to dental school -- good lord, did she really do that to be a part-time worker? I'd love to see her live up to her potential. Her employer does not offer any benefits to any employees. They are an office of about 10-12 if I recall correctly. I cannot stay home with the kid because I work at a hospital offering what amounts to these days as a “gold plated” health insurance policy that we don’t want to lose, it alone is probably valued i...
by JaxFLbh
Thu Jul 17, 2014 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Wife has no retirement options- is breadwinner
Replies: 36
Views: 4776

Re: Wife has no retirement options- is breadwinner

1 - Max your 401k 2 - Max both Roth IRAs 3 - Max any HSA you might have access to 4 - Start piling up funds in tax efficient taxable Vanguard mutual funds (such as the Total Stock Market Index, the Total International Index, and/or the S&P 500 Index). Keep bonds and any REITs in the retirement accounts since they throw off more income. It seems you are considering your finances separate, which could be the issue. You say "her" retirement and "your" retirement as though you don't plan to be together by then. Even if you aren't, in a divorce your larger retirement assets will be split between the two of you just like every other asset, so she shouldn't feel like maxing your 401k when she doens't have one favors you ov...
by JaxFLbh
Thu Jul 17, 2014 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Wife has no retirement options- is breadwinner
Replies: 36
Views: 4776

Re: Wife has no retirement options- is breadwinner

I USED to qualify for an HSA and I have over 10k in it but having just had a child, we no longer have a high deductible health insurance plan and dont qualify.
by JaxFLbh
Thu Jul 17, 2014 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Wife has no retirement options- is breadwinner
Replies: 36
Views: 4776

Re: Wife has no retirement options- is breadwinner

Is your wife on a W2 with a company that does not offer 401K? Do you contribute to the max of your 401K? You can open a taxable investment account at Fido or VG and do total stock index or total intl stock index. As for making more than roth, do you have a Trad IRA for both or either of you? Look into back door Roth option in wiki. She is not self employed. She is part a time dentist, a w-2 employee but does not get any benefits like health insurance, retirement, time off etc. We don't have a traditional IRA at this time because we both contribute to the ROTH and I also put 20% of MY pay in my company's 401k (which I may increase after hearing from you guys). Should I open us one now or wait until we actually eclipse income limits? You guy...
by JaxFLbh
Thu Jul 17, 2014 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Wife has no retirement options- is breadwinner
Replies: 36
Views: 4776

Re: Wife has no retirement options- is breadwinner

Sidney wrote:Don't underestimate the value of tax-efficient after-tax investments.

Such as? Other than MUNIs?
by JaxFLbh
Thu Jul 17, 2014 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Wife has no retirement options- is breadwinner
Replies: 36
Views: 4776

Re: Wife has no retirement options- is breadwinner

swimirvine wrote:Would she qualify for an Individual 401(k) at Vanguard?

I'm not familiar with that. I'll look into it. Is that subject to the same income limits as a TIRA?
by JaxFLbh
Thu Jul 17, 2014 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Wife has no retirement options- is breadwinner
Replies: 36
Views: 4776

Wife has no retirement options- is breadwinner

Truthfully, after calculating my total compensation we make about the same (me 70k + benes, her 100k). She gets no benefits whatsoever..but she’s doing a great job. We are both 30 years old.

My question is this: What retirement options does she have aside from a 5500/yr in an IRA? I opened a Roth for her last year but is that her only option? I have a fidelity 401k at work that I contribute 20% (target retirement fund) to and also max my own roth. In the near future, we will likely exceed the income limits on the roth. Would you recommend trying the backdoor method at that point or just increasing the percentage of income that goes to my 401k?

Thanks in advance for your replies!
by JaxFLbh
Tue Jul 16, 2013 10:07 pm
Forum: Investing - Theory, News & General
Topic: Timing the 10 year for mortgage lock
Replies: 7
Views: 1144

Re: Timing the 10 year for mortgage lock

I've asked that of the 4 lenders i've inquired with. None of them offer float down. Just float. I didn't lock in today, so I will probably just let it float for as long as I can.
by JaxFLbh
Tue Jul 16, 2013 4:39 pm
Forum: Investing - Theory, News & General
Topic: Timing the 10 year for mortgage lock
Replies: 7
Views: 1144

Re: Timing the 10 year for mortgage lock

Well said G-Money. I'm willing to gamble I think :)

Im expecting the Bernake we got a couple weeks ago when he had to make unscheduled commentary to calm the bond selloff.
by JaxFLbh
Tue Jul 16, 2013 3:43 pm
Forum: Investing - Theory, News & General
Topic: Timing the 10 year for mortgage lock
Replies: 7
Views: 1144

Timing the 10 year for mortgage lock

Bernake speaks tomorrow. Rates are at a 2 year high. Could he possibly say anything that might send the 10 year higher? It seems to me he'd like to be more of a dove. I ask because I need to lock in a mortgage rate within 30 days :)
by JaxFLbh
Fri Jul 12, 2013 7:27 am
Forum: Personal Investments
Topic: Is now really a good time to buy my age in bonds?
Replies: 35
Views: 3991

Re: Is now really a good time to buy my age in bonds?

Guys, I really enjoyed reading all the comments here. Thanks for contributing. I'm going to look into shorter duration bond funds to make up my 20-30% AA.
by JaxFLbh
Thu Jul 11, 2013 12:17 pm
Forum: Personal Investments
Topic: Is now really a good time to buy my age in bonds?
Replies: 35
Views: 3991

Re: Is now really a good time to buy my age in bonds?

Also, would I make the most sense to use my HSA for bonds and the Roth for equities indexes since capital preservation could potentially be more important in the HSA in case I ever do in fact need to use it for medical expenses? Maybe short term bond index in the HSA and intermediate term bond index in the Roth, for even more stable capital preservation in the HSA and a combo deal for your fixed income portion? Just throwing out some ideas for you to think about. Do you have any kind of 401k or employer plan? Do you have a taxable account open where all the prior stock picking was being done? Or, are the HSA and Roth your only investment accounts? Do you have any suggestions on intermediate bond funds to look into as I begin my studies or ...
by JaxFLbh
Thu Jul 11, 2013 10:20 am
Forum: Personal Investments
Topic: Is now really a good time to buy my age in bonds?
Replies: 35
Views: 3991

Re: Is now really a good time to buy my age in bonds?

Also, would I make the most sense to use my HSA for bonds and the Roth for equities indexes since capital preservation could potentially be more important in the HSA in case I ever do in fact need to use it for medical expenses?
by JaxFLbh
Thu Jul 11, 2013 10:15 am
Forum: Personal Investments
Topic: Is now really a good time to buy my age in bonds?
Replies: 35
Views: 3991

Re: Is now really a good time to buy my age in bonds?

I'm assuming you're a "recovering stock picker/newsletter junkie" because you either didn't outperform an appropriate benchmark or you did and you know you were just lucky. If your efforts at timing the stock market were either unsuccessful or unreliable, why do you think you'd have a different result timing the bond market? "Good" times to buy can only be known in retrospect. If you've found an AA you can stick with, then pull the trigger and don't look back. Well, I've done fine with my picks. But I haven't beaten the market and I really am fine with index returns over the long haul since I won't have to invest time in researching companies and paying for newsletter advice. Does BND make sense as my choice for that pa...
by JaxFLbh
Thu Jul 11, 2013 8:57 am
Forum: Personal Investments
Topic: Is now really a good time to buy my age in bonds?
Replies: 35
Views: 3991

Is now really a good time to buy my age in bonds?

I’m 30 years old and have 50k in retirement assets (roth + hsa: I pay medical bills in cash). No debt. I am a recovering stock picker/newsletter junkie and want to average into a 3 fund portfolio.

I am thinking VTI (40%)/VXUS(30%)/BND(30%)

However, I feel like it’s almost certain that after a 30 year uptrend in bonds, how can I put 30% in an investment that seems is almost sure to be a loser as interest rates begin to rise?
by JaxFLbh
Thu Apr 18, 2013 8:30 am
Forum: Personal Finance (Not Investing)
Topic: Whole life and Long term tax planning
Replies: 30
Views: 2542

Re: Whole life and Long term tax planning

1. We are planning for kids in the next couple years, God willing. I do have group life through my employer but it is for only 3x my annual income which is not sufficient once we have kids (not to mention should I ever lose/leave this job).

2. Only one Roth because we haven't bothered opening one for my wife since we will likely be phased out by next year or the following. She does not have a 403b offering or employer sponsored retirement.

So in the future, our only option (tax advantaged) will be $~17k in my 403b, and 7k to HSA.
by JaxFLbh
Thu Apr 18, 2013 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Whole life and Long term tax planning
Replies: 30
Views: 2542

Re: Whole life and Long term tax planning

Before I answer that I first want to thank everyone for their contributions. I really appreciate all the time some of you invested into answering my question. I was indeed approached (not pressured) by a friend who is in the industry and asked about what our retirement plans look like. He has been nothing but honest in the years I have known him so I do trust him not to sell me something I don’t need. He quoted me for 20 year level term, and also for a product that converts from term to WL. That was when I started researching and posted here.
by JaxFLbh
Wed Apr 17, 2013 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Whole life and Long term tax planning
Replies: 30
Views: 2542

Re: Whole life and Long term tax planning

I appreciate everyone's thoughts. We do have plans for kids so I think Insurance is definitely going to be a need. I was only considering WL as another means of diversifying our broader investment strategy.
by JaxFLbh
Wed Apr 17, 2013 11:41 am
Forum: Personal Finance (Not Investing)
Topic: Whole life and Long term tax planning
Replies: 30
Views: 2542

Whole life and Long term tax planning

I am 30, my wife is 27. Combined we make somewhere between 175-200k per year. We have no debt, and currently rent. In the next few years we plan to buy a home in the 300k range and have cash for 20% down. Our net worth between bank accounts and retirement (roth, 1 employer sponsored 403b, hsa) is around 110k. We are thinking long term and are interested in determining what makes more sense tax wise. Having taxable brokerage accounts of index/bond mix or using some of our extra money to fund a whole life policy. I know everyone rails against them but what about the tax implications we are looking at in the future? I’m not convinced that deferring taxes with a 403b is going to put me in a lower bracket at age 65 given the debt our country has...