Search found 806 matches

by gclancer
Mon Feb 05, 2024 7:54 am
Forum: Personal Finance (Not Investing)
Topic: Working Cushy job now, offered promotion to another dept. Stay put or make the jump over?
Replies: 32
Views: 2816

Re: Working Cushy job now, offered promotion to another dept. Stay put or make the jump over?

For the record, you’d start as a GS-13, Step 3 which is closer to $126k (when moving Grades you move up two Steps to GS-12, Step 8 and then down to the next highest step on the GS-13 scale).
by gclancer
Wed Jan 31, 2024 3:54 am
Forum: Personal Finance (Not Investing)
Topic: Stuck in One More Year Syndrome
Replies: 20
Views: 3575

Re: Stuck in One More Year Syndrome

Have you kicked the tires on whether you could transition to an in-house or government attorney position? Hard to gauge not knowing your practice area, but assuming you could find such an opportunity your income between you and your spouse would still be sufficient to cover your expenses and your work life balance would likely greatly improved.
by gclancer
Wed Jan 03, 2024 6:20 pm
Forum: Personal Investments
Topic: Should I Pay down my 5.59% Commercial Building Loan
Replies: 15
Views: 2476

Re: Should I Pay down my 5.59% Commercial Building Loan

1: Pay off the loan asap with any extra cash after maxing out 401k and Roth IRA and putting extra cash in Money market fund at 5% until prepayment penalty is over. 2. Invest in Vanguard Tax Exempt Intermediate Bonds and/or VTWAX Global Equity Fund and pay off the loan in 9 years. I’d mash up 1 and 2 and create a side fund earmarked towards paying off the loan once the prepayment penalty is over. Given the short time frame, perhaps all of the side fund should be invested in Tax Exempt Intermediate (which is a better option in your situation than taxable money market IMO). If interest rates spike you can reassess paying off the loan in light of the losses in your Tax Exempt Intermediate mutual fund and your now more attractive fixed rate com...
by gclancer
Wed Jan 03, 2024 5:42 pm
Forum: Personal Investments
Topic: Rolling I bonds into a 529
Replies: 8
Views: 1758

Re: Rolling I bonds into a 529

toddthebod wrote: Mon Jan 01, 2024 5:53 pm
gclancer wrote: Mon Jan 01, 2024 4:58 pm
toddthebod wrote: Mon Jan 01, 2024 11:44 am]

You do not need to worry about sixty days.
You DO need to worry about the 60 days if you’re wanting to roll the proceeds in to a 529 in order to avoid federal income tax on the I Bond interest.
No. There's no such thing. It has to be the same calendar year.
I stand corrected. After reading the IRS form I agree with you. There’s some misinformation on the internet on this topic so we all appreciate you setting the record straight. Cheers!
by gclancer
Mon Jan 01, 2024 4:58 pm
Forum: Personal Investments
Topic: Rolling I bonds into a 529
Replies: 8
Views: 1758

Re: Rolling I bonds into a 529

toddthebod wrote: Mon Jan 01, 2024 11:44 am]

You do not need to worry about sixty days.
You DO need to worry about the 60 days if you’re wanting to roll the proceeds in to a 529 in order to avoid federal income tax on the I Bond interest.
by gclancer
Wed Dec 27, 2023 10:54 am
Forum: Personal Consumer Issues
Topic: Best Office/Business Casual Shoes?
Replies: 19
Views: 2246

Re: Best Office/Business Casual Shoes?

I need an answer to this question too. Thanks for asking!
by gclancer
Sat Dec 16, 2023 7:31 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversions in the 12% fed + 6% state bracket
Replies: 11
Views: 1739

Re: Roth conversions in the 12% fed + 6% state bracket

I would accelerate withdrawals from the Inherited IRA to fill the 12% bracket since you’re on the clock with that. It doesn’t sound like you have access to a workplace Roth option but if you do you could do a “synthetic” conversion where you withdrawal from the Inherited IRA and use the proceeds to contribute larger amounts to Roth than you would otherwise be able to afford.
by gclancer
Fri Oct 06, 2023 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Exceeding FDIC limits
Replies: 13
Views: 1536

Re: Exceeding FDIC limits

Why not just send it to a brokerage directly and dump it in a treasury money market fund?
by gclancer
Fri Sep 22, 2023 12:18 am
Forum: Personal Finance (Not Investing)
Topic: Federal pension for older folks
Replies: 9
Views: 1766

Re: Federal pension for older folks

tj wrote: Thu Sep 21, 2023 10:25 pm 1%, not 1.1%. 1.1% is for people over the age of 62 who have 30 years.

If they work 5 years starting at 53, they can take 5% of their high 3 at age 62, and there is no special case applicable for this person to restart FEHB.
It’s actually 20 years of service (not 30), but the point stands that the multiplier will be 1%. Agreed with the above that financially it primarily makes sense only if he’s in it for 9 years (until age 62) which gets him the immediate annuity + FEHB (which would be the main incentive). Just doing 5 years and getting a small annuity at age 62 makes the 5 year target largely de minimis financially speaking.
by gclancer
Sun Aug 20, 2023 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Job Advice For Mid-Career Govt Employee
Replies: 9
Views: 1627

Re: Job Advice For Mid-Career Govt Employee

BeaverBeliever wrote: Sun Aug 20, 2023 2:53 pm
-have another 13 years before I'm done paying for college, yikes, so financial independence a ways away. That being said, I am fortunate and grateful to be in a decent place financially (this is reason the difference in salary was listed last in that column, i.e it's not a financial decision)
You mean student loans? Or for your kids? Could accepting a job at the university offer tuition discounts/educational benefits for your kids?
by gclancer
Sun Aug 20, 2023 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Employee Pay Compression and Budgeting
Replies: 6
Views: 1074

Re: Federal Employee Pay Compression and Budgeting

You could cut your TSP contribution to 5%. The trade off with federal employment is that you’ll get a pension making a lower savings rate less problematic relative to private industry employees.
by gclancer
Sun Aug 20, 2023 8:00 pm
Forum: Personal Investments
Topic: Roth vs Traditional for high income + pensions
Replies: 20
Views: 2453

Re: Roth vs Traditional for high income + pensions

I don’t have a helpful answer for you other to point out that if you read the tea leaves Congress is increasingly pushing folks towards Roth. That would have me leaning towards contributing to traditional in your situation. However, just to get diversity between your traditional and Roth balances, contributing to your Roth 403(b) would be rational as well. Since you’re government employees you’ll likely qualify for an earlier retirement than most and have ample time to make Roth conversions (10-15 year) upon retirement. Bottom line is I think this is a pretty solid coin flip scenario.
by gclancer
Fri Aug 11, 2023 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Education-Related Tax Credits, Deductions, Breaks
Replies: 7
Views: 774

Re: Education-Related Tax Credits, Deductions, Breaks

Straight from the source: https://www.irs.gov/newsroom/tax-benefi ... ion-center

Maybe Mark is including the $5,250 exclusion for employer paid tuition in his count?
by gclancer
Fri Jul 07, 2023 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Make sense to do Roth SEP-IRA?
Replies: 15
Views: 1226

Re: Make sense to do Roth SEP-IRA?

ThankYouJack wrote: Fri Jul 07, 2023 8:51 am
gclancer wrote: Fri Jul 07, 2023 7:50 am Solo 401(k) have latent compliance issues that SEPs don’t.
What sort of compliance issues?
When closing the solo 401(k) you have to file a final 5500 which a lot of folks fail to do. I agree that if OP is without a doubt going to open a solo 401(k) in 2024 they might as well open one now for 2023. But if that remains a possibility vice a certainty I would go with a SEP and only open a solo 401(k) once there’s a need for employEE contributions.
by gclancer
Fri Jul 07, 2023 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Make sense to do Roth SEP-IRA?
Replies: 15
Views: 1226

Re: Make sense to do Roth SEP-IRA?

Due to interactions between 403b and solo 401k account contribution limits, a solo 401k would not work for me for tax year 2023 - it would be of extremely limited utility. I do plan on starting a solo 401k for tax year 2024 though. I believe you can open the solo 401k for 2023 and contribute to the employ er side, the same amount as you would the SEP-IRA - https://www.solo401k.com/calculator/ So I don't see a good reason to open the SEP and do the Roth conversion by the end of the year. Since OP already maxed out their employEE contributions for 2023 (in their 403(b)) I would specifically advocate for a SEP rather than a solo 401(k) for 2023 since the contribution limits are the same. Solo 401(k) have latent compliance issues that SEPs don...
by gclancer
Mon May 29, 2023 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Zakat (2.5% alms giving) and the 4% SWR
Replies: 53
Views: 4046

Re: Zakat (2.5% alms giving) and the 4% SWR

I’ll be interested in the replies rang you receive. Although it’s not the question you asked, I would recommend that you look in to establishing a Donor Advised Fund (if you haven’t already) so that you can donate appreciated shares from your brokerage account each year in satisfaction of the 2.5%.
by gclancer
Tue May 23, 2023 8:41 am
Forum: Personal Investments
Topic: Are we in good shape ?
Replies: 24
Views: 3655

Re: Are we in good shape ?

Wiggums wrote: Sat May 20, 2023 12:41 pm Definitely keep saving. I would defer more than just the company match before using taxable.
+1 I would contribute to tax deferred accounts (i.e. 401(k), 403(b)) to get your income down to the 12% bracket and then consider Roth IRAs up to the annual limit ($6,500 for you and your spouse in 2023). If that creates an income shortfall I would considering liquidating losses in your taxable account to make up the short fall.
by gclancer
Sun May 21, 2023 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Chicago Townhome Purchase - 5/5 ARM w/ Navy Federal?
Replies: 10
Views: 1471

Re: Chicago Townhome Purchase - 5/5 ARM w/ Navy Federal?

I too can vouch that Navy Federal is good to work with and I’d take that offer. They use the 5-year treasury as their index (rather than LIBOR or SOFR or Prime or any other rate I don’t always fully trust). If you track the 5-year treasury you can get a pretty good feel for what your new rate will be when you’re approaching your rate reset. I have found that 30 year fixed rate refinance mortgage offers are somewhat delayed in responding to interest rate changes in real time, so if you think the rate reset (which should be capped at 2% i.e. the next 5 years will be between 2.875%-6.875%) will be unfavorable do a no cost refinance into a fixed rate mortgage. I would actually recommend you investigate the 3/5 ARM in light of where interest rat...
by gclancer
Sun May 21, 2023 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: Personal Business
Replies: 9
Views: 1503

Re: Personal Business

GuyInFL wrote: Sun May 21, 2023 6:32 am A sole proprietorship would file a Schedule C and pay Social Security tax. That would be the simplest. Other forms might shield liability if you thought you/she needed that.
+1 a single member LLC can elect to be taxed as a sole proprietorship if you wanted to gain a bit of liability protection, but electing to be taxed as a sole proprietorship is a no-brainer in this situation.
by gclancer
Sat May 20, 2023 9:26 am
Forum: Personal Investments
Topic: Are we in good shape ?
Replies: 24
Views: 3655

Re: Are we in good shape ?

You’re doing great. If you want more specific feedback consider editing your post and reformatting: https://www.bogleheads.org/wiki/Asking_ ... _questions
by gclancer
Fri May 19, 2023 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Reduce my taxes so I can claim a credit!
Replies: 10
Views: 1397

Re: Reduce my taxes so I can claim a credit!

toddthebod wrote: Fri May 19, 2023 5:42 pm Defer into the 457b in order to qualify for the full LLC
+1

This is a very obvious instance in which you should be contributing to tax deferred over Roth. Add the lost 1,200 credit to the federal income tax you’ll pay on the $13,000 and that’s an effective federal tax rate of over 31%. Contributing to a Roth at 31% doesn’t make sense for someone with your income profile. I can’t think of a good reason why you wouldn’t do the 457(b).
by gclancer
Sat Mar 18, 2023 9:00 am
Forum: Personal Consumer Issues
Topic: College selection-NEU or OSU
Replies: 104
Views: 8597

Re: College selection-NEU or OSU

Normchad wrote: Fri Mar 17, 2023 7:36 pm
bulbul wrote: Fri Mar 17, 2023 7:30 pm My son received admission from Northeastern University and the Ohio State University for Computer Science major. As a Ohio resident, which one is a better choice? Both my wife and me are first generation immigrants, and we did not have any experience in selecting a university in US. Any suggestion or comments will be really appreciated!
Full disclosure, I’ve got a computer engineering degree from UMich.

Go to Ohio State. They have an excellent program with a good reputation. And staying in state should save some money as well.
This is a ringing endorsement coming from a Michigan Man!
by gclancer
Thu Mar 16, 2023 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Taxation on Bonus
Replies: 6
Views: 1272

Re: Taxation on Bonus

Your life will be way easier if you leave AND REPAY before the end of this calendar year. If you do, everything should sort itself out on your tax reporting. Don’t conflate withholding with taxes actually owed. If you end up repaying some of your bonus yet this calendar year, your withholding will have been higher than the taxes that you’ll end up owing.
by gclancer
Sat Feb 18, 2023 3:02 pm
Forum: Personal Investments
Topic: New fund entry strategy for Roth IRA with mutual funds with min investment
Replies: 8
Views: 813

Re: New fund entry strategy for Roth IRA with mutual funds with min investment

OuterBanks wrote: Sat Feb 18, 2023 2:17 pm Sell $3,000 of VTSAX to buy your new REIT mutual fund. You can then immediately sell part of your REIT fund because the $3,000 minimum only applies to the initial purchase. If you want to fund the REIT in the next 30 days you can use automatic investment scheduling.
+1
by gclancer
Fri Feb 17, 2023 7:13 pm
Forum: Personal Investments
Topic: Max 401k vs just getting down to the 12% bracket
Replies: 44
Views: 4587

Re: Max 401k vs just getting down to the 12% bracket

Personally, I try to get savings in the 22% bracket to be traditional and savings in the 12% to be roth. Last year, I did this down to the exact dollar. I get close with my 457b contributions (finagling between Roth and traditional), then I get it exact with Roth/traditional IRA contribution when the year is over and I'm working on my taxes. For 2023, the top of the 12% bracket is $44,725 and the standard deduction is $13,850 which means the "line" for you is $58,575. Let's say you make 80k this year and have 3k of expenses pre-tax for insurance and ect. Personally, in that situation I would put 16k your traditional 401k and max the rest with Roth 401k contributions. At tax time, you can calculate your taxable income is $2425 abo...
by gclancer
Fri Feb 03, 2023 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: What kind of business entity?
Replies: 4
Views: 409

Re: What kind of business entity?

MP123 wrote: Fri Feb 03, 2023 4:46 pm An LLC would be the easiest by far, assuming it meets the requirements of the labs. An S-Corp might or might not save you a bit of taxes if the business has a relatively high income, but at the expense of complexity and paperwork.

It's a little hard to tell, but it sounds like you would be expecting a loss most years (every year?) unless you discover something? There could be questions about whether you're actually in business or not if you take a loss year after year.

Welcome to Bogleheads!
LLC taxed as a sole proprietorship. OP is already exceeding the social wage base to S-Corp only stands to save Medicare tax which I doubt would be worth it in light of the additional administrative costs associated with LLCs taxed as S-Corps.
by gclancer
Wed Dec 14, 2022 6:57 am
Forum: Personal Finance (Not Investing)
Topic: Does it make sense to save (back door Roth, etc) when we have a 5% ARM loan?
Replies: 28
Views: 2326

Re: Does it make sense to save (back door Roth, etc) when we have a 5% ARM loan?

Mestk5593 wrote: Tue Dec 13, 2022 5:56 pm
dred pirate wrote: Tue Dec 13, 2022 5:51 pm I would still make sure you do a minimum of getting company match on your retirement (assuming you have one)
Oh yes. We are doing all that. This was for after tax/Roth savings such as backdoor Roth, i-bond, and taxable savings.
I would do backdoor Roths and I-Bonds because once the calendar year closes each year your opportunity to do those is lost. If you want to pay down the mortgage, reduce additions to taxable account to $0, tax loss harvest and apply proceeds to mortgage, etc.
by gclancer
Sun Sep 25, 2022 10:38 am
Forum: Personal Finance (Not Investing)
Topic: I Bonds - Keep or sell given the market buying opportunity
Replies: 11
Views: 2025

Re: I Bonds - Keep or sell given the market buying opportunity

If the I Bonds are liquid anyway, why not take $20k from your cash and invest that in the market? View the I Bonds as extension of your emergency fund that has really good yields. If you like having extra cash on hand rebuild your $30k emergency fund after you make your lump sum investment (personally I would buy another $10k in I Bonds now or on January rather than holding $10k in cash assuming you’re able to give up the liquidity for a year).
by gclancer
Thu Sep 15, 2022 6:39 am
Forum: Personal Investments
Topic: G Fund in the current environment
Replies: 59
Views: 7195

Re: G Fund in the current environment

MandyLuna wrote: Thu Sep 15, 2022 6:17 am All that said, in an environment of raising interest rates, we can expect the G Fund to have increasing returns in the near and farther term as long as interest rates are rising? I hold some short term bond funds, so I see some increases there.
Yes, G Fund is an ideal fixed income holding in a rising rate environment. Reason being, the interest rate is set using the weighted average of intermediate and longer term treasuries, but it has a 1 day maturity (like a money market fund). Therefore as rates rise, the interest rate paid by the G Fund will rise, but there will be no drop in value like there would be with a bond fund.
by gclancer
Tue Sep 13, 2022 6:38 pm
Forum: Personal Investments
Topic: Parking $500k for a year...where and how?
Replies: 61
Views: 8140

Re: Parking $500k for a year...where and how?

patrick wrote: Tue Sep 13, 2022 2:54 pm 1-year Treasuries currently yield 3.87% and are exempt from state taxes too.
+1
by gclancer
Mon Sep 12, 2022 7:53 pm
Forum: Personal Consumer Issues
Topic: Hit by drunk driver
Replies: 32
Views: 4965

Re: Hit by drunk driver

D Newton wrote: Mon Sep 12, 2022 7:31 pm thank you all for the good replies; the other driver has insurance (AMICA); good advice not to hastily sign any settlements; I will talk with a few attorneys and select one i am comfortable with.
Thank you again; much appreciated.
DJN
Good idea. Please follow this plan. Sorry you have to go through this ordeal, best of luck.
by gclancer
Mon Sep 12, 2022 7:37 pm
Forum: Personal Investments
Topic: HSA provider declining to open spousal account!
Replies: 32
Views: 2217

Re: HSA provider declining to open spousal account!

I along with lots Bogleheads tend to maximize every possible financial decision, so I understand the annoyance. That said, the maximum possible benefit to funding through payroll in this case is $76.50 per year to put it in perspective.

Do either you or your spouse exceed the social security wage base? If so, make sure the premiums/family HSA contributions are coming out of the salary that is under the social security wage base in order to maximize the tax deduction (since both of you are at the same employer).
by gclancer
Sat Aug 27, 2022 7:13 pm
Forum: Investing - Theory, News & General
Topic: Why are CD rates lower than US Treasury rates?
Replies: 21
Views: 3087

Re: Why are CD rates lower than US Treasury rates?

What exactly is the question? CDs have usually lagged Treasuries both in falling rate environments and rising rate environments. Is there something new here? The exact question is who is [choose the word here] enough to buy a lower yielding higher taxed instrument when the higher yielding lower taxed one is readily available. Efficient market, right? You’re underestimating inertia. The vast majority of the population that saves money (which as you know is not the vast majority of the population) doesn’t optimize every last financial transaction. Banks lure customers in with good rates and rely on a portion of their customers to simply renew their CDs since they’re satisfied customers. So no, the retail banking market is not efficient and r...
by gclancer
Wed Aug 24, 2022 5:41 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1202915

Re: When is it best to buy ibonds? Now or next month?

Doesn’t matter. If you’ve bought them before I’d buy them in August to get the 12 month clock started. If you haven’t bought them before and would feel rushed buying in August then get everything set up at Treasury Direct and buy in September.
by gclancer
Wed May 11, 2022 6:14 am
Forum: Personal Investments
Topic: 457b or I-bonds?
Replies: 8
Views: 876

Re: 457b or I-bonds?

bhough wrote: Tue May 10, 2022 9:11 pm I'm guessing that your 457b is a government 457b, right?
b
If so, I concur with everyone else - 457(b) over I-Bonds.

You say you have a 6 month emergency fund and 2.5% of your taxable account in I-Bonds. Any reason you can’t move some of your emergency fund in to I-Bonds and use your existing I-Bonds (which presumably are past the one year lock up and eligible to be cashed) to back up your e fund just in case during the lock up period? Doing so allows you to do the 457(b) and I-Bonds.
by gclancer
Mon Apr 11, 2022 8:47 pm
Forum: Personal Investments
Topic: Almost 40 and trying to catch up - Am I doing this right?
Replies: 13
Views: 2318

Re: Almost 40 and trying to catch up - Am I doing this right?

Giving you a bump so that you’ll hopefully get some good responses. Do some research on deferred compensation before getting too aggressive there, it appears you may be deferring tax at 22% federal (state unknown) on the deferred comp which may end up being a wash from a tax perspective anyway, so boosting your taxable account contributions may beat deferred comp at your relatively young age. Something to think about.
by gclancer
Sat Apr 02, 2022 5:37 pm
Forum: Personal Consumer Issues
Topic: College Selection - Which one
Replies: 79
Views: 7479

Re: College Selection - Which one

TotalFool wrote: Sat Apr 02, 2022 12:55 pm We were prepared to spend 40k per year and made that clear to the child. Any amount left will be a graduation present to the child.
I think this is really smart. If your child gets a paid internship maybe consider funding a Roth IRA for your child with some of the money each year to see if you can get them to catch the savings bug.
by gclancer
Sun Mar 06, 2022 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA or Solo 401k Questions
Replies: 4
Views: 620

Re: SEP IRA or Solo 401k Questions

Also just so you’re aware, depending on your income level contributing to a SEP or Solo 401(k) would result in your spouse being considered to be covered by an employer provided retirement plan and may reduce the amount she can deduct for contributing to a Traditional IRA (fact-specific research required on your part).
by gclancer
Sun Mar 06, 2022 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: SEP IRA or Solo 401k Questions
Replies: 4
Views: 620

Re: SEP IRA or Solo 401k Questions

I’m not aware of any benefits of utilizing a SEP over a Solo 401(k) in your circumstance. If you use a SEP you’ll lose the Qualified Business Income deduction for the money you contribute to the SEP. If you make an employEE contribution to a Solo 401(k) you not only are able to contribute more, you also keep the QBI deduction. Thus, the Solo 401(k) appears to be the clear winner.
by gclancer
Thu Mar 03, 2022 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Should I stop contributing to ESPP & 401k for cash flow
Replies: 37
Views: 2948

Re: Should I stop contributing to ESPP & 401k for cash flow

dumb_lucky_20 wrote: Wed Mar 02, 2022 3:41 pm
MrJedi wrote: Wed Mar 02, 2022 1:10 pm Why not continue maxing the 401k but then draw down the taxable in its place?
I haven't really thought of this. I guess I like the simplicity of leaving that money untouched for 15-20years.
I would do this. Easier to “set it and forget it” by maxing out your 401(k) and ESPP. If your checking gets low you can replenish by tax efficiently selling particular lots within your taxable brokerage account or you could borrow against it using a margin loan for short term cash needs. Repay margin loans with bonus and RSUs when sold. Eventually you’ll be maxing 401(k) and ESPP and won’t have to bother with your taxable account (you’ll probably be adding to it) because your cash flow will improve over time.
by gclancer
Tue Jan 25, 2022 8:41 am
Forum: Personal Investments
Topic: Investment help, couple in early 40s
Replies: 9
Views: 1944

Re: Investment help, couple in early 40s

guisan wrote: Sun Jan 23, 2022 10:44 pm
Income:
Mine - $100,000
Hers - $106,000
Also you say you contribute $6,000 per year for both you and your spouse to a Roth IRA. Google “Roth IRA Contribution Phase Out” and be mindful of income limitations since you’re relatively close to them.
by gclancer
Tue Jan 25, 2022 8:38 am
Forum: Personal Investments
Topic: Investment help, couple in early 40s
Replies: 9
Views: 1944

Re: Investment help, couple in early 40s

guisan wrote: Sun Jan 23, 2022 10:44 pm Hers:
  • Rollover IRA: $37,000 (FFFGX - Fidelity Freedom 2045, 0.75%)
  • Roth IRA (Typically contribute $6,000/year)
    $17,000 (SPAXX - Fidelity Government Money Market, 0.42%)
    $800 (BIGRX - American Century Discplnd Cor, 0.66%)
    $500 (GLRIX - James Balanced: Golden Rainbow, 0.93%
Consider investing the entirety of these two accounts in Fidelity Freedom INDEX 2045 Fund (FIOFX) instead.
by gclancer
Fri Jan 14, 2022 3:28 pm
Forum: Personal Investments
Topic: Roth or Traditional 401k in the 24% tax bracket?
Replies: 19
Views: 3032

Re: Roth or Traditional 401k in the 24% tax bracket?

David Jay wrote: Thu Jan 13, 2022 4:41 pm It's a close call.
Agreed that it’s close. If I were in this scenario I would probably do 100% Roth and switch back to Traditional in two years rather than analyzing it to death. Sometimes good enough is good enough and all else equal I’d error toward Roth. Starting in two years they’re going to be saving $70k or so per year in Traditional accounts which will cause the Roth to get dwarfed over time.
by gclancer
Sat Jan 08, 2022 6:49 am
Forum: Investing - Theory, News & General
Topic: 2022 Annual Limits & Tax Facts
Replies: 14
Views: 2237

Re: 2022 Annual Limits & Tax Facts

Nice resources, thanks.
by gclancer
Mon Jan 03, 2022 4:42 am
Forum: Personal Investments
Topic: RE Investors: Low-hassle 1031 exchange options?
Replies: 5
Views: 867

Re: RE Investors: Low-hassle 1031 exchange options?

moneyflowin wrote: Sun Jan 02, 2022 6:43 pm Sell as installment sale (seller-backed financing). Charge the buyer the prevailing commercial rate over 15 yrs. You'll get an income stream, and you'll be taxed in a lower bracket. $500k taxable capital gains spread over 15 yrs is $33k per year. Plus the interest is taxable as well.
Good idea in light of the specific facts provided by OP. You could even have a balloon date if you wanted the payout to conclude prior to SS and RMDs starting.
by gclancer
Sat Dec 25, 2021 6:11 am
Forum: Personal Finance (Not Investing)
Topic: What to do if Mortgage services does not fix error on there side?
Replies: 8
Views: 1202

Re: What to do if Mortgage services does not fix error on there side?

stan1 wrote: Fri Dec 24, 2021 6:34 pm I had to do this a few years ago with a different lender and different circumstances but it worked.

The CFPB is your friend at least for another few years.
https://www.consumerfinance.gov/mortgage/

Click on Already have a mortgage? "Have them correct errors" link.
You'll get a link to a Word document to fill out
Yours is an escrow error so describe exactly what happened and what needs to be done
+1
by gclancer
Sun Dec 19, 2021 4:53 pm
Forum: Personal Investments
Topic: Pay down a 1.875% mortgage early to get fixed income exposure in a large portfolio?
Replies: 18
Views: 1920

Re: Pay down a 1.875% mortgage early to get fixed income exposure in a large portfolio?

random_walker_77 wrote: Sun Dec 19, 2021 4:28 pm
JBTX wrote: Sun Dec 19, 2021 3:23 pm Keep the mortgage and buy ibonds. This year and next year.
This. You're paying 1.88% to borrow money that's depreciating at 6+% right now. Keep the mortgage and load up on ibonds
+2 assuming you’re married $20,000 this year (December 2021) and $20,000 next year (January 2022).
by gclancer
Fri Oct 22, 2021 4:55 am
Forum: Personal Finance (Not Investing)
Topic: Solo PLLC looking to hire
Replies: 5
Views: 917

Re: Solo PLLC looking to hire

I would hire a local professional (attorney/CPA) to assist you with this. The answer to several of your questions is “it depends” and the answer to question #1 is state law specific (so general responses will not be sufficient you would need an Arizona specific response).
by gclancer
Mon Sep 20, 2021 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: 3rd Child Tax Credit Not Received
Replies: 14
Views: 1411

Re: 3rd Child Tax Credit Not Received

PapaSmushFace wrote: Mon Sep 20, 2021 7:46 pm Same here. Looks like there is a pattern. I received first July check in the mail and August as a direct deposit. I’ve checked the IRS portal and there isn’t even a sign of a September payment (processing, paid, or otherwise).
Fascinating. Same here, no refund last year so check M1 and direct deposit M2 no money M3 so that seems to be the issue.